2023-11-14 00:00:00
Résumés
West African imports of mixtures of skimmed milk and powdered vegetable fats constitute an emblematic case of the trade in low-cost raw materials. These MGV milk powders (for vegetable fat) cost around 30% less than whole milk powder, and can be used as a substitute for the production of reconstituted milk. In value, these imports of MGV powders increased from 1.5 billion euros in 2000 to 6.1 billion euros in 2020. They now represent 40% of the value of dairy product imports from Africa from West. These imports mainly come from the European Union (EU), an area where these powders are not marketed. The boom in West African imports of MGV milk powders is linked to their price, but also to several other factors. This new trade is generating numerous controversies linked to the quality of these products, their labeling, their environmental impact, and the competition they constitute for the production of domestic milk.
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Plan
The rise of MGV milk powders in international trade
1. Methodological difficulties in identifying this product in customs data
2. The rise of global trade in MGV blends: the EU and Asia the main exporters
3. Imports of dairy products into West Africa: a market dominated by the EU
4. The EU and the boom in trade in MGV milk powders
The reasons for the increase in West Africa
1. International prices favorable to the growth of MGV milk powders
2. Growing West African demand
3. Local milk production in deficit
4. Extroverted trade and food policies
5. An operational industrial and commercial fabric
6. Tolerance from public authorities regarding the use of these products
Differentiated strategies for a controversial product
1. Different choices depending on companies and countries of origin
2. Controversies brought by civil society
What future for this business?
Preview of the beginning of the text
In the dairy sector, large European exporters often favor trade in products with high added value, such as cheeses, fresh products or, on more distant markets, infant milk powder (Guyomard et al., 2021; CNIEL, 2023; EDA, 2022). They also market low-priced products for which there is not necessarily local demand, and which meet a rapidly growing demand in countries in the South, where consumer purchasing power is low. This is the case for mixtures of skimmed milk and powdered vegetable fat (here called “MGV milk powders”). This milk substitute is often unknown to consumers, particularly in the EU where it is not marketed. Geographically, the trade flow of EU exports to West African countries is an emblematic case. Since the 2010s, these exchanges have increased significantly. MGV milk powders now constitute the…
To cite this article
Paper reference
Christian CorniauxGuillaume DuteurtreDjiby Yes and Vincent Chatellier, “The boom in trade in milk powders re-fattened with palm oil: the case of European exports to West Africa”, Rural economy386 | 2023, 111-124.
Electronic reference
Christian CorniauxGuillaume DuteurtreDjiby Yes and Vincent Chatellier, “The boom in trade in milk powders re-fattened with palm oil: the case of European exports to West Africa”, Rural economy [En ligne], 386 | October-December 2023, posted online on January 5, 2025consulted the November 18, 2023. URL : DOI : https://doi.org/10.4000/economierurale.12176
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#case #European #exports #West #Africa