Brief description of the Dairy industry in India.

1. BY – AAYUSH WADHWA
M.ScFood Technology
I.K.G.PunjabTechnical University

2. 0.3%
is a white liquid produced by the mammary glands of mammals.
primary source of nutrition for infant mammals
3.7%
3.2% 4.9%
0.4%
87.5%
Milk production began 6000 years ago or even earlier.

3. Business enterprise established for the
harvesting or processing (or both) animal milk

4. REF: 2

5. India enjoys dual
distinction – it is
both the world’s
largest milk
producer and the
world’s largest milk
consumer.
REF : 1

6. Comparison of milk production and consumption in INDIA
(FY16 REPORT)
Output of 147 million tonnes during the year FY16
which is approximately 1.5 times of the US and
3 times of China

7. “India is 'The Oyster' of the global dairy industry”
 India today is the lowest cost producer of per litre of milk in the world.
 The advantage of this lowest cost of milk production and increasing production in the country
multinational companies are planning to expand their activities here.

8.  Started by India’s National Dairy
Development Board in 1970
 Introduced under guidance of Dr .
Verghese Kurien (father of operation flood)
To create a nation-wide Milk grid
or network

9.  The National Dairy Development Board is an institution of national
importance set up by an Act of Parliament of India. The main office is in Anand
Gujarat with regional offices throughout the country.
 NDDB supports the development of dairy cooperatives by providing them
financial assistance and technical expertise.
The Dairy Cooperative Network
i) includes 170 milk unions
ii) operates in over 338 districts
iii) covers nearly 1,08574 village level societies
iv) is owned by nearly 12 million farmer members.
 By placing technology and professional management in the hands of the
village societies it has helped to raise the standard of living of millions of poor
people.

11. It results in making India the largest producer of milk and milk products.
 Modernization of India's dairy sector
 Created a strong network for procurement processing and distribution of milk by
the co-operative sector.
Impact of white
revolution on
dairy sector
Ref:4

12. Some ten million farmers were enrolled as members
in about 73000 milk cooperative societies.
By 1996, milk cooperatives attained a dominating
share of the Indian dairy market - butter 96%,
pasteurized liquid milk over 90%, milk powder 59%
and processed cheese 85%.
 The dairy cooperative movement has continued to
grow in the post Operation Flood-era.
Ref: 4

14. UN-ORGANISED
SECTOR
ORGANISED SECTOR
Milkmen/local
vendors
34%
Self
consumption
48%
Private
10%
Ref:5 20

15. DEMAND PROCUREMENT PRICE EMPLOY-
MENT
Increasing
population
and vegetarian
dominance
the demand is
continuously
increasing &
keep on
increasing in
future
Produced by
cattle owned
by farmers so
companies
are
associated
with farmers
for
procurement
Increase in
prices
increases
rural income
& provides
more
opportunitie
s for dairy
farming
70-76
million
households
are still
dependent
on dairy in
rural areas
Ref: 3

17.  Quality of animals
1) low productivity &quality per animal hinders development of the dairy sector. Despite being the world’s
largest milk producer
 Low productivity
1) India’s productivity per animal is very low, at 987 kg per lactation, compared with the global average of
2038kg
Animal health and breeding services provision
1) Veterinary infrastructure development and vaccinations are the responsibility of the state government.
These services have traditionally been provided for free or at a very subsidized rate.
Availability of services
1) State Department of Animal Husbandry, Dairying and Fisheries, the milk cooperatives and NGOs (BAIF, JK
Trust) provide services in many states. Provide trained private sector AI technicians.
2REF:10

18. Feed material
1) They include coarse straws, fine straws, leguminous straws, pulses straws and sugarcane tops.
2) Fodder from common property resources is another major source of feed for animals. But lack of
efficient management of common property resources is a major constraint in availability of these
resources for fodder
Scarcity of fodder resources
Formal/informal credit
1) Lack of access to credit to expand the herd is a critical problem for farmers.
2) There is little access to formal credit through the cooperatives.
3) Informal credit is available from private traders and agents of private companies, but the interest rate is
very high. And these loans may or may not be linked to dairy activity.
4) When taking a loan from a trader, the farmer is then tied to selling the milk to that trader, often at a low
rate.
Vaccines/medicine
1) Government and the private sector are involved in producing medicines and vaccines. However, quality
control is a critical issue
REF:10

19. As proposed by
FAO
REF:8,10

20. AvailabilityDemand Margins Flexibility Manpower
Absolutely
optimistic
Reasonable
Tremendous Abundant pool
REF:8,10

21. Ref: 6,7
50 years demand scale
Consumption analysis of
dairy products (2011)
Figure
showing
production
and per capita
availability in
India

22. Milk yield per cow per year
20 litres x 30 days x 10 months = 6000 liters.
Further loss due to unforeseen
circumstances = 600 litres (10% of yield)
Total saleable milk yield per cow per annum
= 5400 litres
The annual yield of milk per 10 cows =
54,000 litres.
The KMF buys 1 litre milk @ Rs.15 per litre
The incentive given by Govn.of Karnataka Rs
2 per litre
54,000 litres x Rs. 17 = Rs. 9,18,000.00
Cost of 1 L of milk =Rs. 32 x 54000
=17,28,000
Total expenditure comes to 4,50,000.00
The profit per annum is 4,00,000.00
One cow yields 20 liters of milk every day. Yield
is calculated for ten months .

23. Many product range is added
in dairy industries due to
sufficient economical profits
per products
REF:8

24. Presently, more than 80 per cent of milk produced is
flowing into the unorganized sector, which requires
proper channelization.
As mentioned in heiarchy of milk industry in India
Professionally-trained, technical human resource
pool, built over last 30 years.
REF:8

26. Value
addition
Marketing
Milk
processing
Product
development
Packaging Dairy
machine
Dietary
products
& infant
food
Export Retail
Biotechnology,
Sciences
& Research
REF:8,10

27. Processing involves handling of milk for
distribution or its conversion into dairy products.
After the milk has reached the plant, processing
work begins and it is converted into a variety of
dairy products.

28. one of the most immerging industry in
country .
Region States No.of milk
processing plants
NORTHERN Chandigarh, Punjab,H.P,
Uttrakhand, J&K, Delhi,
Rajasthan, Haryana,
110
SOUTHERN A.P ,Karnataka, Kerala,
Pondicherry, Tamil nadu
56
EASTERN Andaman&
Nicobar,Sikkim,Assam,
Manipur,Mizoram,Orissa,
Nagaland,M.P,Bihar,West
Bengal,Tripura
51
WESTERN Goa ,Gujrat,Maharashtra 108
Ref:8

29. Milk packaging has changed from the traditional methods to new innovative methods.
Keeping the consumers’ convenience in view, the packaging is done in different types of
impressive package containers.
In 80s and 90s the milk used to be packed in glass bottles, but now we get it in impressive
packaging materials and at present time, only a small proportion of glass bottles are being used
in milk packaging.
The reason behind the change in packaging
Changing Life Style
Demand of the consumers
Ecological factors
Cost of Production & Recycling

30. The field of dietary products is very much
diversified and innovative sector
 Yoghurt
 UHT
 Flavored milk
 Milk powder
 Condensed milk
 Cheese
 Milk protein (Casein supplement)
 Whey protein
 Caseinates
 Infant food
Commonly seen dietary products in Indian markets

31. Emerging value-added categories

33. Dairy science focuses on the production and manufacturing of all dairy
products, including milk.
Entering this field requires knowledge of animal nutrition, reproduction,
lactation and business.
DAIRY SCIENTIST DAIRY
TECHNOLOGIST
DAIRY
ENGINEERS
DAIRY
MARKETING
Deals with
Collection
of milk and
taking care
of high
yielding
varieties
Deals with
latest
technology
for
maintaining
quality of
milk
Set up
and
maintain
dairy
plants
Deals with
marketing
of dairy and
dairy
products

34. The industry has huge potential for attracting new foreign investment

35. •Large portion of the population does not care about quality issues in
milk
•Because of high price sensitivity for dairy products, people are not
willing to pay for quality
•Significant increase in maize prices can increase feed prices
•Large informal markets that extend credit are constraining farmers
•Low productivity and scattered production leading to high cost of
transportation
•Emphasis on milk fat and not on SNF content maintaining relatively
lower prices of milk

36. Highly fragmented
Unorganized and is dominated by local milkmen
regional brands and milk cooperative
None of the major Indian dairy companies feature on the list of top 20 major dairy giants
Per capita milk consumption
Ref:3

37. Regional Play
Being a highly perishable product, milk is required to be procured from nearby areas in
order to take it for processing.
Furthermore, for the liquid milk, procurement and distribution distance should be
minimal for the economies of profitability to play out.
Milk prices in India vary with state to state and region to region within a particular
state.
Weather Conditions and environmental
factors
A temperate weather is more conducive to higher milk production – The raw milk
availability declines during summers.

38. Dairy has a lot of potential to improve rural
incomes, nutrition and women empowerment, and
hence is a very critical area for investment.
A well-developed industry will enable millions of
farmers to capitalize on the emerging opportunities
and make a significant impact on rural incomes.
On the flip side, weak efforts towards dairy
development also can have a significant but
negative impact on the dairy industry

40. 1.http://agriexchange.apeda.gov.in/news/Newssearch.aspx?newsid=7481
2. https://www.statista.com/statistics/740935/distribution-of-the-global-dairy-market-
volume-by-region/
3.http://www.careratings.com/upload/NewsFiles/SplAnalysis/Indian%20Dairy%20Industry%2
0-%20driven%20by%20value-added%20products.pdf
4. http://www.fao.org/WAIRDOCS/LEAD/x6170e/x6170e2z.htm
5. Dept. of Animal Husbandry, dairying & fisheries, Ministry of Agriculture & Farmers Welfare,
GOI
6. http://content.icicidirect.com/mailimages/Dairy.htm
7. https://www.thequint.com/news/india/india-may-have-to-import-milk-by-2021
8. http://www.indiadairy.com/tech_list_dairyplants_western.html
9. http://www.indianmirror.com/indian-industries/dairy.html
10. http://www.fao.org/docrep/011/i0588e/I0588E05.htm