SlideShare ist ein Scribd-Unternehmen logo
1 von 45
Downloaden Sie, um offline zu lesen
1
CONTENTS TO BE DISCUSSED
• Introduction
• World Scenario
• Indian Scenario
• Production of Indian dairy industry
• Structure of Indian dairy Sector
• Export of dairy industry
• Demand for milk and milk products
• Quality issues and standards
• Recent developments and future prospects of industry
• Major challenges to the dairy industry
• Suggestion
• Conclusion
• References
2
 Introduction
• Dairy Industry in India had a long historical tradition..
• World 2nd largest milk producer.
• White revolution in 1975.
• Asia produces 57% of the World’s total dairy production.
• India produces 17% of the World’s total dairy production.
3
Conti…..
• The milk products are ghee, butter, cheese, ice cream, milk powder.
• 75% of rural households own an average, two to four animals.
• Dairy is a part of the farming system.
• Dairy provides a source of regular income.
• About one third of rural incomes are dependent upon dairy.
4
World Scenario
 The annual world trade in milk products (excluding intra-EU)
amounts to 33 million tonnes, valued at US$ 10 billion.
 6 to 7% of the world milk production is traded internationally.
 The bulk of the world dairy trade is in cheese, butter and
powders. A growing shift towards cheese is expected in the
near future.
 Two dynamic products with a substantial projected growth in
the coming years are yoghurt and dessert.
5source: dairyfarmguide.com/scenario-of-dairy-production
Conti…
 The international dairy trade is dominated by four players - EU, New
Zealand, Australia and USA - which together account for 85% of all
exports.
 New Zealand and Australia export as much as 80 and 50% of their
milk production respectively. The Asia-Pacific region has been and
will remain a net milk importer in the foreseeable future.
 It accounts for the bulk of milk powder imports and half of the
imports of condensed and evaporated milk. In contrast, most cheese
imports go from developing countries to developed countries such as
Japan and the United States. 6
Indian Scenario
• Annual Milk Production(2012-13)132.4 Million Tones.
• Annual Export Volume (2012‐13) 28,937 Lakh Rs.
• Share of world dairy production (2012-13) is 17%.
• Number of milk producers cooperative unions are 170.
• Number of local dairy cooperatives are 96,000.
• Number of state cooperatives are 15.
7
Conti…….
• Per capita consumption (Drinking milk): 276g/day.
• Estimated dairy farmers in organized sector are 35%.
• 65% of dairy produce is consumed by un-organized sector.
• Dairy industry workforce 75 million women and 15 million men.
• Growth rate- 5.0%.
Source: GoI, PwC analysis 2012-13.
8
Production of Indian dairy industry
97
102
107
112
116
122
128
132.4
0
20
40
60
80
100
120
140
160
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Million Tones
9Source: NDDB 2013
10
State 2012 2013 % Growth
Uttar Pradesh 21031 22556 4%
Rajasthan 13234 13512 7%
Andhra Pradesh 11203 12088 7%
Gujarat 9321 9817 5%
Punjab 9423 9551 0%
Maharashtra
8044 8469 5%
Madhya Pradesh
7514 8149 5%
Source: NDDB 2013
Milk Production(major states) (000tones)
11
Structure of Indian dairy Sector
Indian Dairy Industry
Organized
(20%) - Formal
Private Dairies
(532) – Nestle,
Smith Kline etc.
Cooperatives
Societies(254) Government (46)
Unorganized
(80%) – Informal i.e. village
vendors, local Halwais, small-
scale Pvt. Dairiesetc.
12Source: Global Agribusiness & Food Processing Summit’12
Export of dairy industry
13Source:- FAO Agricultural Outlook 2010-2020
44%
23%
12%
8%
3%
3%
2% 5%
Skim milk powders
Milk Fats and oils
Butter
Whole Milk Powders
Cheese and Fermednted
Products
Processed Cheese
Conc. & Not Conc. Sweetened
Other Dairy Products
International market for Indian dairy
export
14
Source: FAO Agricultural Outlook 2010-2020
18%
14%
8%
6%
6%5%
4%
4%
3%
3%
29%
UAE
Bangladesh
Nepal
Philippines
Egypt
Yemen
Saudi Arabia
Singapore
Morocco
Oman
Others
Export Of Dairy Products (in Qty)
MT
0
20000
40000
60000
80000
100000
2008-09 2009-10 2010-11 2011-12 2012-13
70149 34376 37432 25638 87824
MT
15
Source: APEDA 2012-13
Export Of Dairy Products(in value)
0
50000
100000
150000
2008-09
2009-10
2010-11
2011-12
2012-13
98089
40264 54800
28937
141209
Rs.In Lakhs
16
Source-APEDA,2012-2013
Demand for milk and milk products
 Household sector
 Drinking milk
 Conversion into milk products (Curd, butter, lassi, ghee for family use)
 Unorganized sector – for urban milk marketing and production of mithai
and traditional products
 Organized sector – processes milk into pasteurized liquid milk and largely
western products
 Demand for milk and dairy products is its income – elastic nature that is
demand increases with a growth in the per capita income of the people
17
Milk Production, processing, scenario
 India has unique pattern of production, processing &
consumption of milk
 35 % of milk produced in India is processed
13 million tonnes – organized sector (Large scale dairy
plants)
22 million tonnes – unorganized sector (halwaiis,
vendors etc.)
18
Conti….
 70 million rural household engaged in milk production (11
million farmers – 0.1 million village co-operative with 110
farmers / society)
 20 million employed in livestock sector (11 million – principal
& 9 million – subsidiary)
 50 – 50 milk consumed between urban and non-urban areas.
19
 Conti…….
 Organized dairy industry (Co-op milk processors) – 60 %
market share (Co-op dairy process 90 % collected milk as
liquid v/s only 20 % by private dairies rest processed into
other dairy products with a focus on value – added products.
20
 Conti…..
 Product wise Consumption Pattern
– 50 % liquid milk
– 35 % traditional products
– 15 % - butter, milk powder and other western type food
– Now a days, increasing demand for ethnic food – flavored
milk, Dahi, Lassi, paneer, kheer (value – added traditional
dairy products)
21
Disposition of Indian milk production, 2012-13
Point of production to consumption as fresh milk or
processed milk products
22
Household
Entered National Exchange Economy
25 % 75 %
Middleman
Pvt. Milk trader
Direct sale
Quality issues and standards
• Overtime the demand for milk and its processed products is set to
increase both domestically and internationally.
• With the consumers becoming very discerning about the quality of
products and the importers setting very tough standards to be met,
the extent to which this market can be captured by the Indian
industry depends upon the extent to which quality value products
can be delivered both in India and abroad.
23
Conti......
• The Food and Agricultural Department under the BIS (Bureau of
Industrial Standards) has set a total of 1,851 standards.
• Adoptions of BIS standards are Voluntary, however, milk powder
(evaporated & condensed milk, infant milk substitutes,
complementary foods – mandatory)
• The Bureau of Industrial Standards has formulated and revised
standards and guidelines for
 Dairy Products
 Dairy Equipments
 Testing Methods
 Production Processes 24
Conti......
• The BIS has set testing standards for determination of:
 Moisture
 Fat
 Total Solids
 Protein
 Ash
 Lactic Acid
 Sucrose Content
 Titrable Acidity
 Phosphorus and Citric Acid Content in Cheese Products
25
Conti......
• These standards are based on international standards and are revised from time
to time in keeping with technological advances in instrumentation.
• This standard guides the production processes of milk and milk products
including processing, storage and distribution to ensure the supply of clean and
safe milk to consumers.
• This includes standards for:
 Buildings where the milk is received, processed, bottled, stored and where
equipment is cleaned and sterilized.
 Surroundings and Waste Disposal.
 Personnel Health and Cleanliness.
26
Recent developments and future
prospects of industry
• Due to perishable nature of milk only 7 % of world production is traded
(excluding intra-EU trade).
• The European Union played a dominant role in world trade but its share has
been declining in the recent years on the back of reduction of subsidies.
• India has two distinct competitive advantages, which can be leveraged to
enhance exports:
 Low/farm gate prices (only NZ, Australia and Argentina – 10 % of
global milk production has slightly lower farm gate prices than India
 Proximity to milk deficit markets – SE Asia and south Asia
27
Conti…….
• However, India has not able to capitalize these advantages and also not able
to compete in global markets mainly due to:
 Low quality and hygiene standards
 Lack of experience and information
 Significant growth in domestic consumption leading to limited surplus for
exports.
• As the market opens up, consumption trends associated with the large
importing markets will increasingly influence the world trade.
28
Conti…
• Whole milk powder and cheese along with butter and skimmed milk
powder are likely to become largely traded products.
• This will present a vast potential for the export of dairy products by
India because the cost of milk production in India is very low as
compared to other countries.
• Most of the dairy plants in the Government, Cooperatives and
Private Sector produce almost similar dairy products like varieties of
milk, butter, ghee, skimmed milk powder and whole milk powder.
Source: www.fnbnews.com 29
Major challenges to the dairy industry
• Challenges related with production – small and marginal
farmers – prime stakeholders of entire value chain deprived of
minimum resources of land, labour, capital etc.
Inadequate feeding of animals – increasing pressure for food
crop than fodder; lack of financial support for concentrate.
Low genetic potential of animals – crossbreeding (less
exotic gene); no record keeping – chances of IB(intra
breeding)
30
Conti……
Exploitation of farmers – non co-op member exploited; delayed
dues
More disease incidence – non co-op member – no animal health
coverage – rely on quacks and traditional conventional treatment
31
Conti……..
• Challenges at the Co-operative Level
Less number of member farmers – informal channel of milk sale
Lower participation in the decision making process – govt.
interference
Losses – poor management at village co-op leads to heavy lost –
faith lost
Low prices of milk – benchmark price by co-op forces others too
Inefficient services – quality feed, germplasm and vet services
32
Conti……..
• Issues and challenges for Marketing
 Milk base mainly consisting of small holders – collecting milk from
each twice daily; waiting for deposit
 Involvement of too many intermediaries – loose quality; volume
 Absence of a screening system – zoonotic, adulteration,
contaminants – spoilage of entire batch if one can goes
undetected.
33
Conti…..
 Gaps in information – Era of IT, dairy sector unorganised ; no record
keeping; zoonotic disease – no back tracking
 Lack of Infrastructure – chilling plants and bulk coolers to prevent
spoilage
 Manipulation of the quality of milk by the farmers – get fair price –
add fat, vegetable fat, starch to alter fat and solid content of milk
34
 Conti….
• Issues and challenges at the Processing Level
 Seasonality of production and fluctuating supply – India tropical
country – summer dry; cooler – flush season; fluctuation
 Absence quality standards – bars export into foreign market
 Adulteration and Food safety – cheap substitution of SMP(standard
manufacturing practices) with below standard substances which is
hazardous to health. Purity and wholesomeness.
35
Conti……..
• Issues & challenges with supply Chain
• 50 % rural & 50 % Urban (domestic market) – 50 % fluid milk; 35
% traditional product (paneer cheese, yoghurt, milk based sweets)
and 15 % consumed for production of butter, ghee, milk powder and
other processed dairy products (baby foods, ice cream, whey
powder, casein, milk albumin).
36
Conti……..
• Organized dairy sector consumes 15 % of total milk production
(liquid milk, butter, cheese and milk powder)
• Unorganized sector (80 % dairy market through milkman from
producer) dominated for traditional products eg. Cheese – 22000
MT by organized sector; Sweets.
37
Conti………
• Policy issues
 Majority of the Market is still unorganized – competes with
organised market in relation to price
 Acceptability of the Consumer base – not purchasing from organised
sector due to high price (due to processing); mindset to purchase
fresh whole milk from milkman
 Less penetration to the rural Market – organised sector sale in urban
 Lack of transparent milk pricing System
38
 Conti…..
• Infrastructural issues
 Lack of chilling capacities – less yielding and less no. – distant
place for deposit milk otherwise wastage due to perishable nature
 Storage and Logistics Level – requires immediate cooling to prevent
spoilage and contamination
 Gap in the cold chain and transport facilities
• Human resource issues – lack of trained and skilled workers to
handle safe & hygenic milk production
39
 Suggestion
 Strengthen economic viability of dairy farms by interventions on the
input side as well as ensuring more fair farmer prices.
 Increase the link between rural production areas and urban
markets.
 Focus on strengthening the indigenous breed to help significantly
enhance productivity.
 Ensure availability of quality medicines by strengthening regulatory
framework for quality.
 Focus on quality issues even in the informal channel by training
traders and by enforcing food quality regulations
40
Conti…..
 Develop infrastructure and training for clean milk production.
 Support a fair playing field for the private sector.
 Bring about changes in cooperatives to make them true representatives of
farmers instead of functioning as parastatals.
 Support to dairying as an enterprise to encourage commercial dairy
farming and encourage production and productivity by extension and
breed development.
 Enhance packaged milk distribution in more areas.
 Strengthen dairy farmer cooperatives to enable farmers to get a higher
price for milk.
41
Conclusion
• Milk and milk products are not only a valued source of
nutrition and provide income and employment to a large
section of Indian population.
• Several years of strategic planning and effective programme
implementation by Government and public sector agencies
have ensured that India emerges as a leading producer of milk
in the world.
• Dairy scientists and entrepreneurs should adopt a holistic
approach to product development encompassing new
dimensions of value addition, newer processing know-how, to
meet the international quality and safety standards
42
References
• Chawla Anil (September 2009). “Milk and Dairy Products in India- Production,
Consumption and Exports”. Retrieved from
http://www.hindustanstudies.com/files/dairysept09tocintro.pdf
• Gyan Research and Analytics Pvt. Ltd., 2013
• http://www.nddb.org/English/Statistics/Pages/Milk-Production-States.aspx
• http://agriexchange.apeda.gov.in/product_profile/exp_f_india.aspx?categorycod
=0404
• Ingavale Deepa (September 2013). “A Study Of International Trade Of Indian
Dairy Industry” Indian Journal Of Applied Research Vol No. 1 Issue No. 12.
Retrieved from www.theglobaljournals.com/ijar/file.php?val=NzA1.
• Joshi R.M (2011).“Promoting Dairy Exports From India: Emerging Challenges
And Strategic Reference”. Retrieved from
http://www.npcindia.gov.in/web%20page/7%20Paper.pdf
• www.fnbnews.com
• Global Agribusiness & Food Processing Summit’12
43
 Conti…..
• Karmakar K.G. and Banerjee G.D. (2006) “For Private circulation
Opportunities And Challenges in The Indian Dairy Industry”.Retrievedfrom
http://www.nabard.org/fileupload/DataBank/TechnicalDigest/ContentEngli
sh/issue9td-6.pdf
• Punjabi M.(2012). “ Dairy consultant New Delhi India: Increasing demand
challenges the dairy sector”. Retrieved from
http://www.fao.org/docrep/011/i0588e/I0588E05.htm
• Sunjay V. S.(6 November 2012). “FICCI – Food 360 • An overview of the
Dairy Sector in India - PwC”. Retrieved from
http://www.ficcifood360.in/pdfs/day2-2013/dairy/Pre-
lunch/2.Mr.Sunjay,PWC.pdf
• www.ifcndairy.org. IFCN Dairy Report 2013
• http://www.dairyfarmguide.com/scenario-of-dairy-production-0100.html
44
Dairy industry in india

Weitere ähnliche Inhalte

Was ist angesagt?

Processing of Milk and Milk Products
Processing of Milk and Milk ProductsProcessing of Milk and Milk Products
Processing of Milk and Milk ProductsAjjay Kumar Gupta
 
Dairy farm presentation
Dairy farm presentationDairy farm presentation
Dairy farm presentationksleeth
 
Milk and milk products
Milk and milk productsMilk and milk products
Milk and milk productsEkta Belwal
 
In plant training at Amul Dudhmotisagar Dairy, Dharuhera
In plant training at Amul Dudhmotisagar Dairy, DharuheraIn plant training at Amul Dudhmotisagar Dairy, Dharuhera
In plant training at Amul Dudhmotisagar Dairy, DharuheraAbdul Rehman
 
Current status of milk industry in india with SWOT analysis
Current status of milk industry in india with SWOT analysisCurrent status of milk industry in india with SWOT analysis
Current status of milk industry in india with SWOT analysisDrRadhakrishna Sahu
 
Dairy industry in india
Dairy industry in indiaDairy industry in india
Dairy industry in indiaAayush Wadhwa
 
Milk quality test
Milk quality testMilk quality test
Milk quality testrehammasoud
 
Clean Milk Production Practices and its Management in India by Sunil Meena
Clean Milk Production Practices and its Management in India by Sunil MeenaClean Milk Production Practices and its Management in India by Sunil Meena
Clean Milk Production Practices and its Management in India by Sunil Meenasunil meena
 
Milk distribution system- as an Infrastructure in India
Milk distribution system- as an Infrastructure in IndiaMilk distribution system- as an Infrastructure in India
Milk distribution system- as an Infrastructure in IndiaYajush Sonar
 
Value-Added Dairy Products. Milk and Milk Products
Value-Added Dairy Products. Milk and Milk ProductsValue-Added Dairy Products. Milk and Milk Products
Value-Added Dairy Products. Milk and Milk ProductsAjjay Kumar Gupta
 

Was ist angesagt? (20)

Milk processing plant
Milk processing  plantMilk processing  plant
Milk processing plant
 
MILK PROCESSING
MILK PROCESSINGMILK PROCESSING
MILK PROCESSING
 
Processing of Milk and Milk Products
Processing of Milk and Milk ProductsProcessing of Milk and Milk Products
Processing of Milk and Milk Products
 
Process Of Milk Collection
Process Of Milk CollectionProcess Of Milk Collection
Process Of Milk Collection
 
Indian dairy industry
Indian dairy industryIndian dairy industry
Indian dairy industry
 
Dairy farm presentation
Dairy farm presentationDairy farm presentation
Dairy farm presentation
 
Milk processing
Milk processingMilk processing
Milk processing
 
Milk and milk products
Milk and milk productsMilk and milk products
Milk and milk products
 
In plant training at Amul Dudhmotisagar Dairy, Dharuhera
In plant training at Amul Dudhmotisagar Dairy, DharuheraIn plant training at Amul Dudhmotisagar Dairy, Dharuhera
In plant training at Amul Dudhmotisagar Dairy, Dharuhera
 
Current status of milk industry in india with SWOT analysis
Current status of milk industry in india with SWOT analysisCurrent status of milk industry in india with SWOT analysis
Current status of milk industry in india with SWOT analysis
 
Milk processing
Milk processingMilk processing
Milk processing
 
Dairy industry in india
Dairy industry in indiaDairy industry in india
Dairy industry in india
 
Milk quality test
Milk quality testMilk quality test
Milk quality test
 
Clean Milk Production Practices and its Management in India by Sunil Meena
Clean Milk Production Practices and its Management in India by Sunil MeenaClean Milk Production Practices and its Management in India by Sunil Meena
Clean Milk Production Practices and its Management in India by Sunil Meena
 
Apeda
ApedaApeda
Apeda
 
Milk distribution system- as an Infrastructure in India
Milk distribution system- as an Infrastructure in IndiaMilk distribution system- as an Infrastructure in India
Milk distribution system- as an Infrastructure in India
 
Dairy
DairyDairy
Dairy
 
Dairy presentation
Dairy presentation Dairy presentation
Dairy presentation
 
Dairy farming
Dairy farmingDairy farming
Dairy farming
 
Value-Added Dairy Products. Milk and Milk Products
Value-Added Dairy Products. Milk and Milk ProductsValue-Added Dairy Products. Milk and Milk Products
Value-Added Dairy Products. Milk and Milk Products
 

Ähnlich wie Dairy industry in india

Dairy industry in India
Dairy industry in IndiaDairy industry in India
Dairy industry in IndiaNaresh Sharma
 
Dairy value chain addis (1)
Dairy value chain  addis (1)Dairy value chain  addis (1)
Dairy value chain addis (1)EDRIseminars
 
Amul dairy ppt
Amul dairy pptAmul dairy ppt
Amul dairy pptDeepak Jha
 
Livestock marketing and supply chain management of livestock products
Livestock marketing and supply chain management of livestock products Livestock marketing and supply chain management of livestock products
Livestock marketing and supply chain management of livestock products ILRI
 
Emerging opportunities in Indian Dairy Industry : outlook for future
Emerging opportunities in Indian Dairy Industry : outlook for futureEmerging opportunities in Indian Dairy Industry : outlook for future
Emerging opportunities in Indian Dairy Industry : outlook for futureVipin Kumar
 
Indian dairy industry & mastitis tks
Indian dairy industry & mastitis  tksIndian dairy industry & mastitis  tks
Indian dairy industry & mastitis tksTarun Sharma
 
Overview of indian dairy industry
Overview of indian dairy industryOverview of indian dairy industry
Overview of indian dairy industryChandni Sahgal
 
Market intelligence in milk and milk products
Market intelligence in milk and milk productsMarket intelligence in milk and milk products
Market intelligence in milk and milk productsHardikaMehta3
 
Future of dairing in zimbabwe
Future of dairing in zimbabweFuture of dairing in zimbabwe
Future of dairing in zimbabweEddington Gororo
 
Indian Dairying
Indian DairyingIndian Dairying
Indian DairyingILRI
 
Dairy presentation
Dairy presentationDairy presentation
Dairy presentationNiazkawsar
 
Project Report on Vijaykant Dairy and Food Products Pvt Ltd
Project Report on Vijaykant Dairy and Food Products Pvt LtdProject Report on Vijaykant Dairy and Food Products Pvt Ltd
Project Report on Vijaykant Dairy and Food Products Pvt LtdRakesh Rachayya
 
Dairypresentationpgdma 130815081659-phpapp01
Dairypresentationpgdma 130815081659-phpapp01Dairypresentationpgdma 130815081659-phpapp01
Dairypresentationpgdma 130815081659-phpapp01omprakash meena
 
Synopsis and toc global dairy industry - the milky way
Synopsis and toc global dairy industry - the milky waySynopsis and toc global dairy industry - the milky way
Synopsis and toc global dairy industry - the milky wayGyan Research And Analytics
 

Ähnlich wie Dairy industry in india (20)

Dairy industry in India
Dairy industry in IndiaDairy industry in India
Dairy industry in India
 
Dairy value chain addis (1)
Dairy value chain  addis (1)Dairy value chain  addis (1)
Dairy value chain addis (1)
 
Mother dairy
Mother dairyMother dairy
Mother dairy
 
Amul dairy ppt
Amul dairy pptAmul dairy ppt
Amul dairy ppt
 
Livestock marketing and supply chain management of livestock products
Livestock marketing and supply chain management of livestock products Livestock marketing and supply chain management of livestock products
Livestock marketing and supply chain management of livestock products
 
Indian dairy industry
Indian dairy industryIndian dairy industry
Indian dairy industry
 
Hmm dairy
Hmm dairyHmm dairy
Hmm dairy
 
Emerging opportunities in Indian Dairy Industry : outlook for future
Emerging opportunities in Indian Dairy Industry : outlook for futureEmerging opportunities in Indian Dairy Industry : outlook for future
Emerging opportunities in Indian Dairy Industry : outlook for future
 
Indian dairy industry & mastitis tks
Indian dairy industry & mastitis  tksIndian dairy industry & mastitis  tks
Indian dairy industry & mastitis tks
 
Overview of indian dairy industry
Overview of indian dairy industryOverview of indian dairy industry
Overview of indian dairy industry
 
Market intelligence in milk and milk products
Market intelligence in milk and milk productsMarket intelligence in milk and milk products
Market intelligence in milk and milk products
 
Go cheese
Go cheeseGo cheese
Go cheese
 
Future of dairing in zimbabwe
Future of dairing in zimbabweFuture of dairing in zimbabwe
Future of dairing in zimbabwe
 
Indian Dairying
Indian DairyingIndian Dairying
Indian Dairying
 
Dairy Indus 2.ppt
Dairy Indus 2.pptDairy Indus 2.ppt
Dairy Indus 2.ppt
 
Dairy presentation
Dairy presentationDairy presentation
Dairy presentation
 
Food Processing Industry & Make In India
Food Processing Industry & Make In IndiaFood Processing Industry & Make In India
Food Processing Industry & Make In India
 
Project Report on Vijaykant Dairy and Food Products Pvt Ltd
Project Report on Vijaykant Dairy and Food Products Pvt LtdProject Report on Vijaykant Dairy and Food Products Pvt Ltd
Project Report on Vijaykant Dairy and Food Products Pvt Ltd
 
Dairypresentationpgdma 130815081659-phpapp01
Dairypresentationpgdma 130815081659-phpapp01Dairypresentationpgdma 130815081659-phpapp01
Dairypresentationpgdma 130815081659-phpapp01
 
Synopsis and toc global dairy industry - the milky way
Synopsis and toc global dairy industry - the milky waySynopsis and toc global dairy industry - the milky way
Synopsis and toc global dairy industry - the milky way
 

Mehr von SAMEER LAKHANI

Monster cv-template-marketing
Monster cv-template-marketingMonster cv-template-marketing
Monster cv-template-marketingSAMEER LAKHANI
 
Prospects & challenges of contract farming for potato in india
Prospects  & challenges of contract farming for potato in indiaProspects  & challenges of contract farming for potato in india
Prospects & challenges of contract farming for potato in indiaSAMEER LAKHANI
 
Potential of agro industry in south gujarat
Potential of agro industry in south gujaratPotential of agro industry in south gujarat
Potential of agro industry in south gujaratSAMEER LAKHANI
 
Problems and prospects of agri entrepreneurship in india
Problems and prospects of agri entrepreneurship in indiaProblems and prospects of agri entrepreneurship in india
Problems and prospects of agri entrepreneurship in indiaSAMEER LAKHANI
 
Distribution channels of major flowers in india
Distribution channels of major flowers in indiaDistribution channels of major flowers in india
Distribution channels of major flowers in indiaSAMEER LAKHANI
 
Opportunities and challenges in indian rural market
Opportunities and challenges in indian rural marketOpportunities and challenges in indian rural market
Opportunities and challenges in indian rural marketSAMEER LAKHANI
 
Opportunities and challenges for marketing of organic products in india
Opportunities and challenges for marketing of organic  products in indiaOpportunities and challenges for marketing of organic  products in india
Opportunities and challenges for marketing of organic products in indiaSAMEER LAKHANI
 
Cold chain transportion in india
Cold chain  transportion in indiaCold chain  transportion in india
Cold chain transportion in indiaSAMEER LAKHANI
 
Vimsons firm in gamdi chikory
Vimsons firm in gamdi chikoryVimsons firm in gamdi chikory
Vimsons firm in gamdi chikorySAMEER LAKHANI
 
Microfinance sector in india by sameer lakhani
Microfinance sector in india by sameer lakhaniMicrofinance sector in india by sameer lakhani
Microfinance sector in india by sameer lakhaniSAMEER LAKHANI
 
Law of restrictive trade practice and unfair trade practices by sameer lakhani
Law of restrictive trade practice  and unfair trade practices by sameer lakhaniLaw of restrictive trade practice  and unfair trade practices by sameer lakhani
Law of restrictive trade practice and unfair trade practices by sameer lakhaniSAMEER LAKHANI
 
AGRI-CLINICS AND AGRI-BUSINESS SERVICES SCHEME IN INDIA by sameer lakhani
AGRI-CLINICS AND AGRI-BUSINESS SERVICES SCHEME IN INDIA by sameer lakhaniAGRI-CLINICS AND AGRI-BUSINESS SERVICES SCHEME IN INDIA by sameer lakhani
AGRI-CLINICS AND AGRI-BUSINESS SERVICES SCHEME IN INDIA by sameer lakhaniSAMEER LAKHANI
 
New products from market research A Kellogg's case study sameer lakhani
New products from market research A Kellogg's case study sameer lakhaniNew products from market research A Kellogg's case study sameer lakhani
New products from market research A Kellogg's case study sameer lakhaniSAMEER LAKHANI
 

Mehr von SAMEER LAKHANI (13)

Monster cv-template-marketing
Monster cv-template-marketingMonster cv-template-marketing
Monster cv-template-marketing
 
Prospects & challenges of contract farming for potato in india
Prospects  & challenges of contract farming for potato in indiaProspects  & challenges of contract farming for potato in india
Prospects & challenges of contract farming for potato in india
 
Potential of agro industry in south gujarat
Potential of agro industry in south gujaratPotential of agro industry in south gujarat
Potential of agro industry in south gujarat
 
Problems and prospects of agri entrepreneurship in india
Problems and prospects of agri entrepreneurship in indiaProblems and prospects of agri entrepreneurship in india
Problems and prospects of agri entrepreneurship in india
 
Distribution channels of major flowers in india
Distribution channels of major flowers in indiaDistribution channels of major flowers in india
Distribution channels of major flowers in india
 
Opportunities and challenges in indian rural market
Opportunities and challenges in indian rural marketOpportunities and challenges in indian rural market
Opportunities and challenges in indian rural market
 
Opportunities and challenges for marketing of organic products in india
Opportunities and challenges for marketing of organic  products in indiaOpportunities and challenges for marketing of organic  products in india
Opportunities and challenges for marketing of organic products in india
 
Cold chain transportion in india
Cold chain  transportion in indiaCold chain  transportion in india
Cold chain transportion in india
 
Vimsons firm in gamdi chikory
Vimsons firm in gamdi chikoryVimsons firm in gamdi chikory
Vimsons firm in gamdi chikory
 
Microfinance sector in india by sameer lakhani
Microfinance sector in india by sameer lakhaniMicrofinance sector in india by sameer lakhani
Microfinance sector in india by sameer lakhani
 
Law of restrictive trade practice and unfair trade practices by sameer lakhani
Law of restrictive trade practice  and unfair trade practices by sameer lakhaniLaw of restrictive trade practice  and unfair trade practices by sameer lakhani
Law of restrictive trade practice and unfair trade practices by sameer lakhani
 
AGRI-CLINICS AND AGRI-BUSINESS SERVICES SCHEME IN INDIA by sameer lakhani
AGRI-CLINICS AND AGRI-BUSINESS SERVICES SCHEME IN INDIA by sameer lakhaniAGRI-CLINICS AND AGRI-BUSINESS SERVICES SCHEME IN INDIA by sameer lakhani
AGRI-CLINICS AND AGRI-BUSINESS SERVICES SCHEME IN INDIA by sameer lakhani
 
New products from market research A Kellogg's case study sameer lakhani
New products from market research A Kellogg's case study sameer lakhaniNew products from market research A Kellogg's case study sameer lakhani
New products from market research A Kellogg's case study sameer lakhani
 

Kürzlich hochgeladen

Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfCharles Cotter, PhD
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfHajeJanKamps
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..dlewis191
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsyasinnathani
 
NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023Steve Rader
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyHanna Klim
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxWorkforce Group
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfJohnCarloValencia4
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfAnhNguyen97152
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHelene Heckrotte
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessAPCO
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursKaiNexus
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...Brian Solis
 
Tata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerakTata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerakEditores1
 
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)tazeenaila12
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfHajeJanKamps
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarNathanielSchmuck
 

Kürzlich hochgeladen (20)

Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story points
 
NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agency
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
 
Investment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV IndustriesInvestment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV Industries
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, Ours
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
 
Tata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerakTata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerak
 
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdf
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry Webinar
 

Dairy industry in india

  • 1. 1
  • 2. CONTENTS TO BE DISCUSSED • Introduction • World Scenario • Indian Scenario • Production of Indian dairy industry • Structure of Indian dairy Sector • Export of dairy industry • Demand for milk and milk products • Quality issues and standards • Recent developments and future prospects of industry • Major challenges to the dairy industry • Suggestion • Conclusion • References 2
  • 3.  Introduction • Dairy Industry in India had a long historical tradition.. • World 2nd largest milk producer. • White revolution in 1975. • Asia produces 57% of the World’s total dairy production. • India produces 17% of the World’s total dairy production. 3
  • 4. Conti….. • The milk products are ghee, butter, cheese, ice cream, milk powder. • 75% of rural households own an average, two to four animals. • Dairy is a part of the farming system. • Dairy provides a source of regular income. • About one third of rural incomes are dependent upon dairy. 4
  • 5. World Scenario  The annual world trade in milk products (excluding intra-EU) amounts to 33 million tonnes, valued at US$ 10 billion.  6 to 7% of the world milk production is traded internationally.  The bulk of the world dairy trade is in cheese, butter and powders. A growing shift towards cheese is expected in the near future.  Two dynamic products with a substantial projected growth in the coming years are yoghurt and dessert. 5source: dairyfarmguide.com/scenario-of-dairy-production
  • 6. Conti…  The international dairy trade is dominated by four players - EU, New Zealand, Australia and USA - which together account for 85% of all exports.  New Zealand and Australia export as much as 80 and 50% of their milk production respectively. The Asia-Pacific region has been and will remain a net milk importer in the foreseeable future.  It accounts for the bulk of milk powder imports and half of the imports of condensed and evaporated milk. In contrast, most cheese imports go from developing countries to developed countries such as Japan and the United States. 6
  • 7. Indian Scenario • Annual Milk Production(2012-13)132.4 Million Tones. • Annual Export Volume (2012‐13) 28,937 Lakh Rs. • Share of world dairy production (2012-13) is 17%. • Number of milk producers cooperative unions are 170. • Number of local dairy cooperatives are 96,000. • Number of state cooperatives are 15. 7
  • 8. Conti……. • Per capita consumption (Drinking milk): 276g/day. • Estimated dairy farmers in organized sector are 35%. • 65% of dairy produce is consumed by un-organized sector. • Dairy industry workforce 75 million women and 15 million men. • Growth rate- 5.0%. Source: GoI, PwC analysis 2012-13. 8
  • 9. Production of Indian dairy industry 97 102 107 112 116 122 128 132.4 0 20 40 60 80 100 120 140 160 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Million Tones 9Source: NDDB 2013
  • 10. 10 State 2012 2013 % Growth Uttar Pradesh 21031 22556 4% Rajasthan 13234 13512 7% Andhra Pradesh 11203 12088 7% Gujarat 9321 9817 5% Punjab 9423 9551 0% Maharashtra 8044 8469 5% Madhya Pradesh 7514 8149 5% Source: NDDB 2013 Milk Production(major states) (000tones)
  • 11. 11
  • 12. Structure of Indian dairy Sector Indian Dairy Industry Organized (20%) - Formal Private Dairies (532) – Nestle, Smith Kline etc. Cooperatives Societies(254) Government (46) Unorganized (80%) – Informal i.e. village vendors, local Halwais, small- scale Pvt. Dairiesetc. 12Source: Global Agribusiness & Food Processing Summit’12
  • 13. Export of dairy industry 13Source:- FAO Agricultural Outlook 2010-2020 44% 23% 12% 8% 3% 3% 2% 5% Skim milk powders Milk Fats and oils Butter Whole Milk Powders Cheese and Fermednted Products Processed Cheese Conc. & Not Conc. Sweetened Other Dairy Products
  • 14. International market for Indian dairy export 14 Source: FAO Agricultural Outlook 2010-2020 18% 14% 8% 6% 6%5% 4% 4% 3% 3% 29% UAE Bangladesh Nepal Philippines Egypt Yemen Saudi Arabia Singapore Morocco Oman Others
  • 15. Export Of Dairy Products (in Qty) MT 0 20000 40000 60000 80000 100000 2008-09 2009-10 2010-11 2011-12 2012-13 70149 34376 37432 25638 87824 MT 15 Source: APEDA 2012-13
  • 16. Export Of Dairy Products(in value) 0 50000 100000 150000 2008-09 2009-10 2010-11 2011-12 2012-13 98089 40264 54800 28937 141209 Rs.In Lakhs 16 Source-APEDA,2012-2013
  • 17. Demand for milk and milk products  Household sector  Drinking milk  Conversion into milk products (Curd, butter, lassi, ghee for family use)  Unorganized sector – for urban milk marketing and production of mithai and traditional products  Organized sector – processes milk into pasteurized liquid milk and largely western products  Demand for milk and dairy products is its income – elastic nature that is demand increases with a growth in the per capita income of the people 17
  • 18. Milk Production, processing, scenario  India has unique pattern of production, processing & consumption of milk  35 % of milk produced in India is processed 13 million tonnes – organized sector (Large scale dairy plants) 22 million tonnes – unorganized sector (halwaiis, vendors etc.) 18
  • 19. Conti….  70 million rural household engaged in milk production (11 million farmers – 0.1 million village co-operative with 110 farmers / society)  20 million employed in livestock sector (11 million – principal & 9 million – subsidiary)  50 – 50 milk consumed between urban and non-urban areas. 19
  • 20.  Conti…….  Organized dairy industry (Co-op milk processors) – 60 % market share (Co-op dairy process 90 % collected milk as liquid v/s only 20 % by private dairies rest processed into other dairy products with a focus on value – added products. 20
  • 21.  Conti…..  Product wise Consumption Pattern – 50 % liquid milk – 35 % traditional products – 15 % - butter, milk powder and other western type food – Now a days, increasing demand for ethnic food – flavored milk, Dahi, Lassi, paneer, kheer (value – added traditional dairy products) 21
  • 22. Disposition of Indian milk production, 2012-13 Point of production to consumption as fresh milk or processed milk products 22 Household Entered National Exchange Economy 25 % 75 % Middleman Pvt. Milk trader Direct sale
  • 23. Quality issues and standards • Overtime the demand for milk and its processed products is set to increase both domestically and internationally. • With the consumers becoming very discerning about the quality of products and the importers setting very tough standards to be met, the extent to which this market can be captured by the Indian industry depends upon the extent to which quality value products can be delivered both in India and abroad. 23
  • 24. Conti...... • The Food and Agricultural Department under the BIS (Bureau of Industrial Standards) has set a total of 1,851 standards. • Adoptions of BIS standards are Voluntary, however, milk powder (evaporated & condensed milk, infant milk substitutes, complementary foods – mandatory) • The Bureau of Industrial Standards has formulated and revised standards and guidelines for  Dairy Products  Dairy Equipments  Testing Methods  Production Processes 24
  • 25. Conti...... • The BIS has set testing standards for determination of:  Moisture  Fat  Total Solids  Protein  Ash  Lactic Acid  Sucrose Content  Titrable Acidity  Phosphorus and Citric Acid Content in Cheese Products 25
  • 26. Conti...... • These standards are based on international standards and are revised from time to time in keeping with technological advances in instrumentation. • This standard guides the production processes of milk and milk products including processing, storage and distribution to ensure the supply of clean and safe milk to consumers. • This includes standards for:  Buildings where the milk is received, processed, bottled, stored and where equipment is cleaned and sterilized.  Surroundings and Waste Disposal.  Personnel Health and Cleanliness. 26
  • 27. Recent developments and future prospects of industry • Due to perishable nature of milk only 7 % of world production is traded (excluding intra-EU trade). • The European Union played a dominant role in world trade but its share has been declining in the recent years on the back of reduction of subsidies. • India has two distinct competitive advantages, which can be leveraged to enhance exports:  Low/farm gate prices (only NZ, Australia and Argentina – 10 % of global milk production has slightly lower farm gate prices than India  Proximity to milk deficit markets – SE Asia and south Asia 27
  • 28. Conti……. • However, India has not able to capitalize these advantages and also not able to compete in global markets mainly due to:  Low quality and hygiene standards  Lack of experience and information  Significant growth in domestic consumption leading to limited surplus for exports. • As the market opens up, consumption trends associated with the large importing markets will increasingly influence the world trade. 28
  • 29. Conti… • Whole milk powder and cheese along with butter and skimmed milk powder are likely to become largely traded products. • This will present a vast potential for the export of dairy products by India because the cost of milk production in India is very low as compared to other countries. • Most of the dairy plants in the Government, Cooperatives and Private Sector produce almost similar dairy products like varieties of milk, butter, ghee, skimmed milk powder and whole milk powder. Source: www.fnbnews.com 29
  • 30. Major challenges to the dairy industry • Challenges related with production – small and marginal farmers – prime stakeholders of entire value chain deprived of minimum resources of land, labour, capital etc. Inadequate feeding of animals – increasing pressure for food crop than fodder; lack of financial support for concentrate. Low genetic potential of animals – crossbreeding (less exotic gene); no record keeping – chances of IB(intra breeding) 30
  • 31. Conti…… Exploitation of farmers – non co-op member exploited; delayed dues More disease incidence – non co-op member – no animal health coverage – rely on quacks and traditional conventional treatment 31
  • 32. Conti…….. • Challenges at the Co-operative Level Less number of member farmers – informal channel of milk sale Lower participation in the decision making process – govt. interference Losses – poor management at village co-op leads to heavy lost – faith lost Low prices of milk – benchmark price by co-op forces others too Inefficient services – quality feed, germplasm and vet services 32
  • 33. Conti…….. • Issues and challenges for Marketing  Milk base mainly consisting of small holders – collecting milk from each twice daily; waiting for deposit  Involvement of too many intermediaries – loose quality; volume  Absence of a screening system – zoonotic, adulteration, contaminants – spoilage of entire batch if one can goes undetected. 33
  • 34. Conti…..  Gaps in information – Era of IT, dairy sector unorganised ; no record keeping; zoonotic disease – no back tracking  Lack of Infrastructure – chilling plants and bulk coolers to prevent spoilage  Manipulation of the quality of milk by the farmers – get fair price – add fat, vegetable fat, starch to alter fat and solid content of milk 34
  • 35.  Conti…. • Issues and challenges at the Processing Level  Seasonality of production and fluctuating supply – India tropical country – summer dry; cooler – flush season; fluctuation  Absence quality standards – bars export into foreign market  Adulteration and Food safety – cheap substitution of SMP(standard manufacturing practices) with below standard substances which is hazardous to health. Purity and wholesomeness. 35
  • 36. Conti…….. • Issues & challenges with supply Chain • 50 % rural & 50 % Urban (domestic market) – 50 % fluid milk; 35 % traditional product (paneer cheese, yoghurt, milk based sweets) and 15 % consumed for production of butter, ghee, milk powder and other processed dairy products (baby foods, ice cream, whey powder, casein, milk albumin). 36
  • 37. Conti…….. • Organized dairy sector consumes 15 % of total milk production (liquid milk, butter, cheese and milk powder) • Unorganized sector (80 % dairy market through milkman from producer) dominated for traditional products eg. Cheese – 22000 MT by organized sector; Sweets. 37
  • 38. Conti……… • Policy issues  Majority of the Market is still unorganized – competes with organised market in relation to price  Acceptability of the Consumer base – not purchasing from organised sector due to high price (due to processing); mindset to purchase fresh whole milk from milkman  Less penetration to the rural Market – organised sector sale in urban  Lack of transparent milk pricing System 38
  • 39.  Conti….. • Infrastructural issues  Lack of chilling capacities – less yielding and less no. – distant place for deposit milk otherwise wastage due to perishable nature  Storage and Logistics Level – requires immediate cooling to prevent spoilage and contamination  Gap in the cold chain and transport facilities • Human resource issues – lack of trained and skilled workers to handle safe & hygenic milk production 39
  • 40.  Suggestion  Strengthen economic viability of dairy farms by interventions on the input side as well as ensuring more fair farmer prices.  Increase the link between rural production areas and urban markets.  Focus on strengthening the indigenous breed to help significantly enhance productivity.  Ensure availability of quality medicines by strengthening regulatory framework for quality.  Focus on quality issues even in the informal channel by training traders and by enforcing food quality regulations 40
  • 41. Conti…..  Develop infrastructure and training for clean milk production.  Support a fair playing field for the private sector.  Bring about changes in cooperatives to make them true representatives of farmers instead of functioning as parastatals.  Support to dairying as an enterprise to encourage commercial dairy farming and encourage production and productivity by extension and breed development.  Enhance packaged milk distribution in more areas.  Strengthen dairy farmer cooperatives to enable farmers to get a higher price for milk. 41
  • 42. Conclusion • Milk and milk products are not only a valued source of nutrition and provide income and employment to a large section of Indian population. • Several years of strategic planning and effective programme implementation by Government and public sector agencies have ensured that India emerges as a leading producer of milk in the world. • Dairy scientists and entrepreneurs should adopt a holistic approach to product development encompassing new dimensions of value addition, newer processing know-how, to meet the international quality and safety standards 42
  • 43. References • Chawla Anil (September 2009). “Milk and Dairy Products in India- Production, Consumption and Exports”. Retrieved from http://www.hindustanstudies.com/files/dairysept09tocintro.pdf • Gyan Research and Analytics Pvt. Ltd., 2013 • http://www.nddb.org/English/Statistics/Pages/Milk-Production-States.aspx • http://agriexchange.apeda.gov.in/product_profile/exp_f_india.aspx?categorycod =0404 • Ingavale Deepa (September 2013). “A Study Of International Trade Of Indian Dairy Industry” Indian Journal Of Applied Research Vol No. 1 Issue No. 12. Retrieved from www.theglobaljournals.com/ijar/file.php?val=NzA1. • Joshi R.M (2011).“Promoting Dairy Exports From India: Emerging Challenges And Strategic Reference”. Retrieved from http://www.npcindia.gov.in/web%20page/7%20Paper.pdf • www.fnbnews.com • Global Agribusiness & Food Processing Summit’12 43
  • 44.  Conti….. • Karmakar K.G. and Banerjee G.D. (2006) “For Private circulation Opportunities And Challenges in The Indian Dairy Industry”.Retrievedfrom http://www.nabard.org/fileupload/DataBank/TechnicalDigest/ContentEngli sh/issue9td-6.pdf • Punjabi M.(2012). “ Dairy consultant New Delhi India: Increasing demand challenges the dairy sector”. Retrieved from http://www.fao.org/docrep/011/i0588e/I0588E05.htm • Sunjay V. S.(6 November 2012). “FICCI – Food 360 • An overview of the Dairy Sector in India - PwC”. Retrieved from http://www.ficcifood360.in/pdfs/day2-2013/dairy/Pre- lunch/2.Mr.Sunjay,PWC.pdf • www.ifcndairy.org. IFCN Dairy Report 2013 • http://www.dairyfarmguide.com/scenario-of-dairy-production-0100.html 44