Required Report - Public distribution

**Date:** 10/15/2007

**GAIN Report Number:** IN7100

IN7100

**India**

**Dairy and Products**

**Annual**

**2007**

**Approved by:**

![](media/image1.wmf)Oliver Flake

U.S. Embassy

**Prepared by:**

Deepa Dhankhar

**Report Highlights:**

Post forecasts MY 2008/09 milk production three percent higher than MY
2007/08 at 102 million tons, due to growing demand for milk and milk
products. The export ban on certain milk and milk products was lifted by
the government on October 1, 2007, after continued pressure from milk
powder exporters. Sanitary restrictions imposed on the importation of
dairy products effectively prohibit dairy imports from the United
States.

Includes PSD Changes: Yes

Includes Trade Matrix: No

Annual Report

New Delhi \[IN1\]

\[IN\]

**Table of Contents**

[SECTION I: SITUATION AND OUTLOOK 3](#section-i-situation-and-outlook)

[Executive Summary 3](#executive-summary)

[Production 3](#production)

[Production Developments and Policy
4](#production-developments-and-policy)

[Consumption 4](#consumption)

[Trade 5](#trade)

[Trade Policy 5](#trade-policy)

[Tariff Structure for various dairy products
7](#tariff-structure-for-various-dairy-products)

[SECTION II: STATISTICAL TABLES 8](#section-ii-statistical-tables)

[Table 1: Commodity, Dairy, Milk, Fluid, PSD
8](#table-1-commodity-dairy-milk-fluid-psd)

[Table 2: Commodity, Dairy, Milk, Nonfat Dry, PSD
9](#table-2-commodity-dairy-milk-nonfat-dry-psd)

[Table 3: Commodity, Dairy, Butter, PSD
10](#table-3-commodity-dairy-butter-psd)

# SECTION I: SITUATION AND OUTLOOK

# 

## Executive Summary

In India, small or marginal farmers and landless laborers, 17 percent of
which are grouped into cooperatives at the village level, account for
most milk production in India. Milk production in MY 2008/09 is forecast
to increase by three percent to 102 million tons on continuous strong
demand for dairy products from the domestic market. Lucrative
international prices for processed milk products have driven export
potential for various dairy products. India remained a net exporter of
dairy products during 2005/06, with more than 80 percent of exports
comprising various milk powders. However, the growing exports impacted
domestic prices adversely, forcing the government to impose an export
ban on certain milk and milk products from February 9, 2007 until
September 30, 2007 to assure domestic supply in the lean season.

## 

### Production

Indian milk production has been increasing at a growth rate of more than
three percent for the past several years, with the MY 2008/09 milk
production forecast at 102 million tons. Milk production estimates for
MY 2007/08 and 2006/07 are revised to 99 million tons and 96 million
tons to reflect Basic Animal Husbandry Statistics, compiled by the
Department of Animal Husbandry, Dairying and Fisheries (DADF). The
production of non-fat dry milk and butter in 2008 is forecast at 345,000
tons and 3.6 million tons respectively. Growing demand for milk and milk
products and high farm gate prices are the main drivers for increased
production. The National Sample Survey Data for the past several years
clearly indicates that with the rise in income levels, the demand for
livestock products has been rising. India has thus emerged as the
world's largest producer of bovine milk. Buffaloes contribute more than
57 percent to total milk production and are increasingly preferred as
dairy animals due to their many uses compared to cows. Buffaloes can be
used for milk production, quality meat, and also as a work animal for
small and marginal farmers. Additionally, fat content largely determines
milk prices and buffalo milk is high in fat content. For these reasons,
the growth rate for buffalo population has seen a growing trend compared
to the cow population in the past several years.

Dairy is an important direct and supplementary source of income for
around 70 million small and marginal farmers and landless laborers in
India. The Indian milk production system is thus unique and mainly
utilizes low cost agricultural byproducts (as sources of nutrition) and
traditional technologies. The government of India (GOI) has therefore
always placed emphasis on dairy development activities in the country.
The Operation Flood program was launched in the 1970s by the GOI and
targeted to strengthen the dairy cooperative structure for continued
growth of the Indian dairy industry. The program has so far covered more
than 100,000 village level milk cooperative societies with more than 12
million farmers. Dairy cooperatives (registered under dairy cooperative
laws) cover around 15 percent of milk animal owing households and
procure around nine percent of milk production. According to the
National Dairy Development Board (NDDB), more than 90 percent of India's
milk production is sourced from 14 states (with the top states being
Uttar Pradesh, Punjab, Rajasthan, Andhra Pradesh and Maharashtra) which
account for 80 percent of the country's villages.

Despite substantial milk production growth, the Indian dairy sector
still needs to overcome challenges like low productivity of dairy
animals, complete coverage of milk quality and hygiene control systems,
and an enhanced network of cold chain infrastructure from the production
area to the consumer.

### Production Developments and Policy

Currently, the microbiological quality of milk in India has much room
for improvement due to lack of awareness among rural producers and lack
of cold chain infrastructure. However, the government realizes the
significance of establishing infrastructure for ensuring quality and
clean milk production. With the basic aim of ensuring quality and clean
milk production systems, the DADF had introduced a new centrally
sponsored scheme "Strengthening infrastructure for quality and clean
milk production" during the tenth five year plan (2002-2007) with an
outlay of around \$7 million. The scheme was implemented on a 100
percent grant in aid basis to state governments and union territories
for training of farmers and strengthening of existing laboratories etc.
Assistance to the cooperatives and Dairy/Poultry venture capital funds
were some of the other schemes launched by the department in 1999-2000
and during the tenth five year plan with the aims of strengthening the
struggling dairy cooperative units and providing assistance for
developing the cold chain infrastructure.

The GOI released the Milk and Milk Products Order (MMPO) 1992 under the
provisions of the Essential Commodity Act, 1955, following de-licensing
of the dairy sector in 1991. The full text details of the MMPO can be
accessed at: <http://www.dahd.nic.in/order/mmpo.doc> . According to the
MMPO, any person or dairy plant handling more than 10,000 liters of milk
or 500 MT of milk solids per year needs to be registered with the
registering authority appointed by the central government. The MMPO is
aimed at ensuring the maintenance and supply of liquid milk of desired
quality in the best interest of the general public. The rules for
production, processing and distribution of milk and milk products are
also contained in the MMPO. Several amendments were made to the MMPO by
the GOI and these are notified in the official gazette of India from
time to time. Some of the major amendments contained in the MMPO are the
following: restrictions on the establishment of new capacity, removal of
the provisions of milk shed area limits, and broadening of the scope of
registrations under MMPO to include sanitary, hygienic conditions,
quality and food safety.

The GOI has designated the National Productivity Council (NPC) and the
Export Inspection council (EIC) as quality auditors for conducting
periodic inspection of units registered under the MMPO to ensure
compliance with sanitary, hygienic and food safety measures.

### Consumption

India is not only the world's largest producer of milk but also one of
the largest consumers with almost negligible exports of milk products.
The per capita consumption of milk during 2006/07 was 245 grams per day,
still below the world's average of 265 grams per day. Hence, there is
more scope for further increasing per capita consumption. Industry
sources confirm that a milk producer retains around 34 percent of his
milk production and the rest, 66 percent, is sold. Out of this 66
percent of the milk sold by the producers, around 16 percent is procured
by cooperatives and the remaining 50 percent is procured by the
unorganized sector. The unorganized sector alone processes around 30
percent of total milk production, compared to only 6 percent by the
organized sector. The main processed dairy products include packaged
liquid milk, cheese, ethnic sweets, yogurt, ice creams, butter, ghee
(clarified butter) and milk powder. The share of the unorganized dairy
sector in milk processing is still substantial since they are able to
operate without huge initial investments, as their daily milk
procurement and sales operations are small in scale. Additionally,
consumers in India prefer to buy fresh milk from milk venders because of
their belief that pasteurized milk kills the nutritional value of milk.
This preference for fresh products also favors increased purchase of
processed dairy products like fresh cheese, yogurt etc. from the
unorganized players, who manage to sell whatever they produce on a daily
basis due to lack of sufficient storage infrastructure. Nevertheless,
with rising incomes and improving lifestyles, the demand for branded
products has started gaining momentum. The entry of various renowned
Indian business players in organized food retail is also expected to
boost demand for branded dairy products. Big Indian dairy brands like
Amul have already started expansion work on their exclusive sales
outlets in order to gain direct sale margins and to offer better and
customized services to their customers.

### Trade

During MY 2005/06, India was a net exporter of dairy products. According
to dairy product export statistics of the Agricultural and Processed
Food Products Export Development Authority (APEDA); India exported
around 50,000 tons of various categories of milk powders. Milk powder
exports constituted around 80 percent of total dairy exports in value
terms, followed by Ghee, milk cream, and other processed dairy products.
Milk powder exports in MY 2005/06 nearly doubled as compared to the
previous year. High international prices due to drought in Australia,
removal of the export subsidy on skimmed milk powder in Europe,
increasing milk demand in countries like China, and rising global dairy
feed costs due to high corn and soymeal prices encouraged exports.
However, increased exports led to a surge in Indian domestic milk powder
prices thus leading the government to impose an export ban on certain
milk and milk products including milk powder in February 2007. The ban
was imposed until September 30, 2007, primarily to cover the lean milk
production season (April to August). To read more on the export ban
regulation of the GOI, please see GAIN report IN 7013, dated February
23, 2007. The export ban decision was strongly opposed by the leading
dairy cooperatives and other private exporters, as the ban didn't allow
them to meet their trade commitments and further reap profits when
international prices were lucrative for exports. The milk powder export
prohibition was finally lifted with effect from October 1, 2007.

![](media/image2.wmf)

Source: APEDA, Ministry of Commerce, GOI.

### Trade Policy

Imports of milk and cream, milk food for babies, whole milk, condensed
milk, yogurt, buttermilk, whey, dairy spreads, ghee, cheese
(fresh/grated, powdered, processed, blue veined) are permitted without
any quantitative restrictions. However, in most cases import permits are
required. The detailed procedures for obtaining a sanitary permit are
discussed in GAIN Report IN7094, dated Oct 1, 2007. Skimmed milk, milk
food for babies, whole milk, milk for babies, and condensed milk should
also adhere to standards set by the Bureau of Indian Standards. The
current GOI sanitary conditions effectively block imports of dairy
products from the U.S. and many other countries.

The Ministry of Health and Family Welfare (MOHFW) regulates both
domestic production and importation of milk and milk products, through
the standards laid out in Prevention of Food Adulteration Act and Rules
([http://mohfw.nic.in/pfa%20acts%20and%20rules.pdf](http://mohfw.nic.in/pfa acts and rules.pdf)).
However, with the new food safety and standards Act signed by the
president in 2006 (<http://mofpi.nic.in/fsnstds.pdf>), a consolidated
food law is expected to be implemented by the end of this year or soon
thereafter. In an effort to harmonize the domestic standards for milk
and milk products with codex standards, the Ministry of Heath and family
Welfare has released a number of GOI gazette notifications. For details
see:

1\) GSR 356(E) dated June 7,2005
([www.mohfw.nic.in/GSR356.pdf](http://www.mohfw.nic.in/GSR356.pdf)).

2\) GSR 532(E) dated December 6, 2005
([www.mohfw.nic.in/706.pdf](http://www.mohfw.nic.in/706.pdf) )

3\) GSR 131(E), dated March 3, 2006
([www.mohfw.nic.in/131.pdf](http://www.mohfw.nic.in/131.pdf))

4\) GSR 532 (E), dated September 5, 2006
([www.mohfw.nic.in/Noti%20352.pdf](http://www.mohfw.nic.in/Noti 352.pdf))

Notifications given below are specific to infant foods --

5\) Standards for infant foods, GSR No. 1 (E), dated January 1,2007
([http://www.mohfw.nic.in/Corrigendum%20to%20398.pdf](http://www.mohfw.nic.in/Corrigendum to 398.pdf)
)

6\) Levels of mono and triglycerides in infant foods, GSR No. 458 (E),
dated 2 July, 2007
([http://www.mohfw.nic.in/Noti%20458.pdf](http://www.mohfw.nic.in/Noti 458.pdf)
)

### Tariff Structure for various dairy products

  ---------------- --------------------------------------- ----------- --------- ------- ---------- ----------
  **HS CODE**      **ITEM DESCRIPTION**                    **BASIC**   **CVD**   **SPL   **TOTAL    **IMPORT
                                                                                 CVD**   DUTY WITH  POLICY**
                                                                                         2+1%ec**   

                                                                                                     

  04011000 -       Milk and cream, not concentrated nor    30          0         0       30.9       Free
  04013000         containing added sugar or other                                                  
                   sweetening matter                                                                

  04021010         Milk and cream, concentrated or         60          0\*       4       68.272     Free
                   containing added sugar or other                                                  
                   sweetening matter                                                                

  04021020 -       Milk and cream, concentrated or         60          0         4       68.272     Free
  04021090         containing added sugar or other                                                  
                   sweetening matter                                                                

  04022100         Milk and cream, not containing added    60          0         4       68.272     Free
                   sugar or other sweetening matter                                                 

  040229           Other: whole milk, milk for babies,     30          0         4       36.136     Free
                   other                                                                            

  04029110         Condensed milk                          30          16.3      4       59.084     Free

  04029190         Other                                   30          0         4       36.136     Free

  040299           Other: whole milk, condensed milk       30          0         4       36.136     Free

  0403             Buttermilk, curdled milk and cream,     30          0         0       30.9       Free
                   yogurt, kephir & other fermented or                                              
                   acidified milk & cream, whether or not                                           
                   concentrated or containing added sugar                                           
                   or other sweetening matter or flavored                                           
                   or containing added fruits, nuts or                                              
                   coco                                                                             

  0404             Whey, whether or not concentrated or    30          0         4       36.136     Free
                   containing added sugar or other                                                  
                   sweetening matter; products consisting                                           
                   of natural milk constituents, whether                                            
                   or not containing added sugar or other                                           
                   sweetening matter, not elsewhere                                                 
                   specified or include                                                             

  0405\*\*         Butter and other fats and oils derived  40          0         4       46.848     Free
                   from milk; dairy spreads                                                         

  04061000\*\*\*   Fresh (unripened or uncured) cheese,    30          0         Ntfn    \--        Free
                   including whey cheese & curd                                  20/06              

  04062000         Grated or powdered cheese of all kinds  30          0         4       36.136     Free

  04063000         Processed cheese not grated or powdered 30          0         4       36.136     Free

  04064000         Blue-veined cheese and other cheese     30          0         4       36.136     Free
                   containing veins produced by Pencillium                                          
                   roqueforti                                                                       

  04069000         Other cheese                            40          0         4       46.848     Free

                   *Ntfn 21 - Cheese/dated 03-01-2002 All  30          0         4       36.136      
                   goods falling under above*                                                       
  ---------------- --------------------------------------- ----------- --------- ------- ---------- ----------

Note: Effective June 2000, a Tariff Rate Quota was established for
Skimmed Milk Powder, under which imports of up to 10,000 tons are
allowed at a 15 percent basic tariff, and quantities above that level at
a basic tariff of 60 percent.

\* - Education Cess of 2% on customs exempted on 0402 10, 0402 2100,
0405 1000 & 0405 90

\*\* - Education Cess of 2% exempted on dairy spread with a milk fat
content at least 75% but less than 80% by weight, falling under tariff
item 0405 20 00

^\*\*\*\ -^ Ntfn 20/06 - Nil standard rate on this product as per the
notification

# SECTION II: STATISTICAL TABLES

## Table 1: Commodity, Dairy, Milk, Fluid, PSD

<table>
<colgroup>
<col style="width: 23%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 7%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 7%" />
<col style="width: 8%" />
<col style="width: 8%" />
</colgroup>
<tbody>
<tr class="odd">
<td><strong>PSD Table</strong></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td><strong>Country</strong></td>
<td><strong>India</strong></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td><strong>Commodity</strong></td>
<td colspan="2"><strong>Dairy, Milk, Fluid</strong></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="2"><p>(1000 HEAD)</p>
<p>(1000 MT)</p></td>
<td></td>
</tr>
<tr class="even">
<td></td>
<td>2006</td>
<td>Revised</td>
<td></td>
<td>2007</td>
<td>Estimate</td>
<td></td>
<td>2008</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td>USDA<br />
Official</td>
<td>Post<br />
Estimate</td>
<td>Post<br />
Estimate<br />
New</td>
<td>USDA<br />
Official</td>
<td>Post<br />
Estimate</td>
<td>Post<br />
Estimate<br />
New</td>
<td>USDA<br />
Official</td>
<td>Post<br />
Estimate</td>
<td>Post<br />
Estimate<br />
New</td>
</tr>
<tr class="even">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td>04/2006</td>
<td>04/2006</td>
<td></td>
<td>04/2007</td>
<td>04/2007</td>
<td></td>
<td>04/2008</td>
<td>04/2008</td>
</tr>
<tr class="odd">
<td>Cows In Milk</td>
<td>38000</td>
<td>38000</td>
<td>38000</td>
<td>38500</td>
<td>38500</td>
<td>38000</td>
<td>0</td>
<td>0</td>
<td>38500</td>
</tr>
<tr class="even">
<td>Cows Milk Production</td>
<td>38750</td>
<td>39775</td>
<td>41000</td>
<td>40050</td>
<td>41150</td>
<td>42140</td>
<td>0</td>
<td>0</td>
<td>42890</td>
</tr>
<tr class="odd">
<td>Other Milk Production</td>
<td>54925</td>
<td>54925</td>
<td>55200</td>
<td>56850</td>
<td>56850</td>
<td>56960</td>
<td>0</td>
<td>0</td>
<td>59210</td>
</tr>
<tr class="even">
<td>Total Production</td>
<td>93675</td>
<td>94700</td>
<td>96200</td>
<td>96900</td>
<td>98000</td>
<td>99100</td>
<td>0</td>
<td>0</td>
<td>102100</td>
</tr>
<tr class="odd">
<td>Other Imports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Total Imports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td><strong>Total Supply</strong></td>
<td><strong>93675</strong></td>
<td><strong>94700</strong></td>
<td><strong>96200</strong></td>
<td><strong>96900</strong></td>
<td><strong>98000</strong></td>
<td><strong>99100</strong></td>
<td><strong>0</strong></td>
<td><strong>0</strong></td>
<td><strong>102100</strong></td>
</tr>
<tr class="even">
<td>Other Exports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Total Exports</td>
<td>55</td>
<td>55</td>
<td>4</td>
<td>60</td>
<td>60</td>
<td>5</td>
<td>0</td>
<td>0</td>
<td>5</td>
</tr>
<tr class="even">
<td>Fluid Use Dom. Consum.</td>
<td>38840</td>
<td>39865</td>
<td>39920</td>
<td>41875</td>
<td>42975</td>
<td>41130</td>
<td>0</td>
<td>0</td>
<td>42680</td>
</tr>
<tr class="odd">
<td>Factory Use Consum.</td>
<td>54780</td>
<td>54780</td>
<td>56276</td>
<td>54965</td>
<td>54965</td>
<td>57965</td>
<td>0</td>
<td>0</td>
<td>59415</td>
</tr>
<tr class="even">
<td>Feed Use Dom. Consum.</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Total Dom. Consumption</td>
<td>93620</td>
<td>94645</td>
<td>96196</td>
<td>96840</td>
<td>97940</td>
<td>99095</td>
<td>0</td>
<td>0</td>
<td>102095</td>
</tr>
<tr class="even">
<td><strong>Total Distribution</strong></td>
<td><strong>93675</strong></td>
<td><strong>94700</strong></td>
<td><strong>96200</strong></td>
<td><strong>96900</strong></td>
<td><strong>98000</strong></td>
<td><strong>99100</strong></td>
<td><strong>0</strong></td>
<td><strong>0</strong></td>
<td><strong>102100</strong></td>
</tr>
<tr class="odd">
<td>CY Imp. from U.S.</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>CY. Exp. to U.S.</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
</tbody>
</table>

## Table 2: Commodity, Dairy, Milk, Nonfat Dry, PSD

  ---------------- ----------- ---------- ----------- ---------- ---------- ----------- ---------- ---------- ----------- ---------
  **PSD Table**                                                                                                           

  **Country**      **India**                                                                                              

  **Commodity**    **Dairy,                                                             (1000 MT)                         
                   Milk,                                                                                                  
                   Nonfat                                                                                                 
                   Dry**                                                                                                  

                   2006        Revised                2007       Estimate               2008       Forecast               UOM

                   USDA\       Post\      Post\       USDA\      Post\      Post\       USDA\      Post\      Post\       
                   Official    Estimate   Estimate\   Official   Estimate   Estimate\   Official   Estimate   Estimate\   
                                          New                               New                               New         

  **Market Year                04/2006    04/2006                04/2007    04/2007                04/2008    04/2008     MM/YYYY
  Begin**                                                                                                                 

  Beginning Stocks 5           5          5           5          5          5           5          5          15          (1000 MT)

  Production       295         295        295         340        340        320         0          0          345         (1000 MT)

  Other Imports    0           0          0           0          0          0           0          0          0           (1000 MT)

  Total Imports    0           0          0           0          0          0           0          0          0           (1000 MT)

  **Total Supply** **300**     **300**    **300**     **345**    **345**    **325**     **5**      **5**      **360**     (1000 MT)

  Other Exports    55          55         50          60         60         60          0          0          60          (1000 MT)

  Total Exports    55          55         50          60         60         60          5          5          60          (1000 MT)

  Human Dom.       240         240        245         280        280        250         0          0          285         (1000 MT)
  Consumption                                                                                                             

  Other Use,       0           0          0           0          0          0           0          0          0           (1000 MT)
  Losses                                                                                                                  

  Total Dom.       240         240        245         280        280        250         0          0          285         (1000 MT)
  Consumption                                                                                                             

  Total Use        295         295        295         340        340        310         5          5          345         (1000 MT)

  Ending Stocks    5           5          5           5          5          15          0          0          15          (1000 MT)

  **Total          **300**     **300**    **300**     **345**    **345**    **325**     **5**      **5**      **360**     (1000 MT)
  Distribution**                                                                                                          

  CY Imp. from     0           0          0           0          0          0           0          0          0           (1000 MT)
  U.S.                                                                                                                    

  CY. Exp. to U.S. 0           0          0           0          0          0           0          0          0           (1000 MT)
  ---------------- ----------- ---------- ----------- ---------- ---------- ----------- ---------- ---------- ----------- ---------

##  Table 3: Commodity, Dairy, Butter, PSD

  ---------------- ----------- ---------- ----------- ---------- ---------- ----------- ---------- ---------- -----------
  **PSD Table**                                                                                               

  **Country**      **India**                                                                                  

  **Commodity**    **Dairy,                                                             (1000 MT)             
                   Butter**                                                                                   

                   2006        Revised                2007       Estimate               2008       Forecast   

                   USDA\       Post\      Post\       USDA\      Post\      Post\       USDA\      Post\      Post\
                   Official    Estimate   Estimate\   Official   Estimate   Estimate\   Official   Estimate   Estimate\
                                          New                               New                               New

  **Market Year                04/2006    04/2006                04/2007    04/2007                04/2008    04/2008
  Begin**                                                                                                     

  Beginning Stocks 0           0          0           0          0          0           0          0          0

  Production       3050        3050       3050        3425       3425       3360        0          0          3610

  Other Imports    5           5          10          5          5          10          0          0          15

  Total Imports    5           5          10          5          5          10          0          0          15

  **Total Supply** **3055**    **3055**   **3060**    **3430**   **3430**   **3370**    **0**      **0**      **3625**

  Other Exports    10          10         5           10         10         10          0          0          10

  Total Exports    10          10         5           10         10         10          0          0          10

  Domestic         3045        3045       3055        3420       3420       3360        0          0          3615
  Consumption                                                                                                 

  Total Use        3055        3055       3060        3430       3430       3370        0          0          3625

  Ending Stocks    0           0          0           0          0          0           0          0          0

  **Total          **3055**    **3055**   **3060**    **3430**   **3430**   **3370**    **0**      **0**      **3625**
  Distribution**                                                                                              

  CY Imp. from     0           0          0           0          0          0           0          0          0
  U.S.                                                                                                        

  CY. Exp. to U.S. 0           0          0           0          0          0           0          0          0
  ---------------- ----------- ---------- ----------- ---------- ---------- ----------- ---------- ---------- -----------