This presentation covers different topics of INDIAN DAIRY INDUSTRY like,Introduction, History, Current status, Opportunities, Constraints, Solution of constraints, SWOT analysis and Conclusion. Main source of the data and information of this presentation are 'Indian Journal of Applied research, Indian Dairyman, National Dairy Development Board Annual Report 2012-2013, 19th livestock census-2012 all India report, International Journal of Logistic and Supply Chain Management Perspectives'.

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P.G. INSTITUTE OF AGRI BUSINESS MANAGEMENT
JUNAGADH AGRICULTURAL UNIVERSITY
 ADVISOR:
PROF. H. Y. MAHETA
ASSISTANT PROFESSOR
PGIABM, JAU, JUNAGADH
 SPEAKER:
RATHOD KRISHNA
J4-01320-2014 (SEM-2)
ROLL NO. -28

3. content
Introduction
History
Current status of Indian dairy industry
Opportunities of Indian dairy industry
Constraints of Indian dairy industry
Solution of constraints
SWOT analysis
Conclusion
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4. 4

5. Introduction
India ranks first in dairy industry in all over the world
While other countries dreaming to be at the top, India is already at the top
Indian dairy industry is one of the allied industry of agriculture.
Directly depends on livestock and indirectly depends on rain
More than 10 million farmers sell their milk to 170 milk producer’s
cooperatives
Growth rate is 7 per cent per annum
India accounts for more than 15 per cent of world’s total milk production
5Source : Anonymous, 2013

6. 6

7. History
Before independence, dairy industry was not more progressive
Practiced as a rural cottage industry
Semi commercialized dairy started with…
 Military dairy
 Farmers
 Co-operative unions
7Source : Anonymous, 2013

8. Operation flood – launched in 1970
Three phases – OFP-1, OFP-2, OFP-3
8
Cont…
OFP -1 (1970-1980)
 support form Europe through world
 connecting milk sheds with consumer
OFP -2 (1981-1985)
 milk sheds increased to 136
 290 urban markets
 43,000 village co-operatives
 4.25 Million milk producer
OFP -3
 Co-operative expanded
 Infrastructure
 Cattle health care
 Education
 30,000 new dairies
 Women participation
Source : Anonymous, 2013

9. Top 10 countries in livestock production
9
0
50
100
150
200
250
Brazil
India
U.S.A.
China
Argentina
Ethiopia
Sudan
Mexico
Pakistan
Australia
nepal
egypt
Philippines
Myanmar
Vietnam
Indonesia
Thailand
Bangladesh
nigiria
Iran
Mongolia
cattle
buffalo
goat
Source : Anonymous, 2009

10. 10
440000
460000
480000
500000
520000
540000
1992 1997 2003 2007 2012
470860
485385 485002
529698
512057
NO. OF
ANIMALS
IN ("000)
Trend of total livestock population
in India
Source : Das, 2014

11. 11
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
2007 2012
CATTLE
BUFFALO
GOAT
Total livestock in India in 2007 and 2012
Source : Das, 2014

12. State-wise livestock population
12
0
5
10
15
20
25
30
M.P.
U.P.
Westbengal
Maharastra
Rajasthan
Bihar
Odisa
Assam
Gujarat
Chattishgrah
Andhra
pradesh
Tamilnadu
jarkhand
karnataka
Haryana
Punjab
otherstate
cattle
buffalo
goat
Source : Das, 2014
(% share)

13. Dairy co-operative societies in India
13
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
1980-81 1990-91 2000-01 2011-2012 2012-2013
13,284
63,415
96,206
148,965 155,634
numbers
source : Anonymous, 2013

14. 14
0
10,000
20,000
30,000
40,000
50,000
60,000
1980-81 1990-91 2000-01 2011-12 2012-13
north
east
west
south
Spread of dairy co-operative societies in India
Source : Anonymous, 2013

15. 15
Indian Dairy Industry
Organized
Private
Cooperative
societies
Government
Unorganized
Structure
Source : Rajeev and et. al., 2013

16. Local dairy cooperatives
16
Local Dairy Co-operatives State
Amul Gujarat
Warana Maharashtra
Verka Punjab
Vijaya Andhra Pradesh
Aavin Tamilnadu
Milma Kerala
Saras Rajasthan
Parag Uttar Pradesh
The packaged milk segment is dominated by the dairy cooperatives
Source : Anonymous, 2013

17. Distribution of milk in India
Milk produced in villages
Milk consumed in
villages (48%)
Surplus milk flowing into urban
areas (52%)
Handled by
unorganized
sector(70%)
Handled by
cooperative
sector(16%)
Handled by
private organized
sector(14%)
17Source : Anil, 2013

18. Supply chain in India
18
Urban Consumer For Milk
Hotels/ Business Consumption For
Milk And Milk Products
Milk Co-operatives Private Dairy Urban Vendors Private Traders
Farmers
Source : Anonymous, 2013

19. Key players of Indian dairy industry
19
Key players Brand Turnover (2009-10)
(rs. Crore)
GCMMF Amul 8,007
Nestle, India Nestle 1,641
Punjab State Cooperative Verka 1,150
Hatsun agro Anun, Komatha, Hatsun curd 1,141
Kwality Kwality Walls 1,054
Parag milk food Parag 550
Modern dairy Modern dairy 445
Rajasthan state co-operative Saras 300
Vadilal industries Vadilal 189
Himalaya international Himalaya fresh (Paneer) 69
Source : Anonymous, 2013

20. Categorization of the dairy
products
Raw Milk
Liquid Milk
Value Added
Products
Non-traditional
Value Added
Products
Traditional Value
Added Products
20Source : Anonymous, 2014

21. 73%8%
8%
4% 3%
1% 1%
1%
1%
LIQUID MILK
MILK POWDER
GHEE
ICE-CREAM
BUTTER
CURD
CHEESE
FLAVOURED MILK
PANEER
21
Market share of milk and milk products
Source : Anonymous, 2013

22. Demand condition
22
Demand condition
Market size and growth Market growth is due to high per capita consumption,
increasing population and health consciousness
Consumption patterns Consumption of processed and packaged dairy products
is increasing in urban areas
Unpackaged milk is still preferred because of taste and
price
Sophistication of consumers Consumer awareness on product quality is increasing but
in a very small portion of the population
Receptivity to new products Mostly urban consumers have an increasing
interest in new products
Impact of market on demand Consumers now have a variety of quality products
Source : Anonymous, 2013

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24. Top 10 countries in milk production
24
Sr.
no.
Country Milk
Production
(MT)
1 European Union-27 140.62
2 India 121.30
3 United States 88.77
4 China 31.78
5 Russian Federation 31.20
6 Brazil 30.85
7 New Zealand 18.05
8 Mexico 11.23
9 Argentina 11.07
10 Ukraine 10.81
2011
Source: Prabu, 2014

25. Milk production in India
2005-
06
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Production (MT) 97.1 102.6 107.9 112.2 116.4 121.8 127.9 132.4
Per capita availability
(gms/day)
241 251 260 266 273 281 290 301
25
Year
Milk
Source : Anonymous, 2014

26. Top 7 states in
milk production
1. Uttar Pradesh
2. Rajasthan
3. Andhra Pradesh
4. Gujarat
5. Punjab
6. Maharashtra
7. Madhya Pradesh
26Source :Sanjay (2012)

27. state wise Estimates of milk production
State 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
U. P. 17356 18094 18861 19537 20203 21031 22556 23330
Rajasthan 8713 10309 11377 11931 12330 13234 13512 13946
Andhra Pradesh 7624 7938 8925 9570 10429 11203 12088 12762
Gujarat 6960 7533 7911 8386 8844 9321 9817 10315
Punjab 8909 9168 9282 9387 9389 9423 9551 9714
Maharashtra 6769 6978 7210 7455 7679 8044 8469 8734
Madhya Pradesh 6283 6374 6572 6855 7167 7514 8149 8838
All India 97066 102580 107934 112183 116425 121848 127904 132431
27Source : Anonymous, 2014
(In “000 tones)

28. Total dairy export from India
28
0%
20%
40%
60%
80%
100%
2006 2007 2008 2009 2010 2011
Chart Title
CHEESE
BUTTER
SMP
WMP
Source : Anonymous, 2012

29. Indian dairy exports in International market
29
Sr.
no.
Country 2013-2014
Qty Value
1 Bangladesh 31,482.15 63,742.17
2 Egypt 14,002.28 30,795.07
3 U.A.E. 12,713.20 30,566.25
4 Algeria 10,242.75 20,263.97
5 Yemen Republic 8,959.52 20,181.41
6 Pakistan 9,565.56 20,130.79
7 Saudi Arabia 8,458.73 18,685.65
8 Malaysia 7,120.11 15,466.56
9 Syria 5,276.50 11,739.79
10 Singapore 6,151.70 8,973.54
Total 1,13,972.50 2,40,545.20
Source : Anonymous, 2014

30. International market for Indian dairy exports
30
Sr.
no.
Country 2010-2011 2011-2012 2012-2013
Qty(MT) Value(lakh) Qty(MT) Value(lakh) Qty(MT) Value(lakh)
1 Bangladesh 4,979.66 6,492.05 68.21 17,869.63 17,869.63 25,910.72
2 Egypt Arab Republic 3,647.35 6,643.98 807.34 11,260.74 11,260.74 17,906.48
3 United Arab Emirates 5,845.35 9,479.37 4,036.08 7,026.47 7,026.47 14,281.75
4 Singapore 2,560.66 1,969.75 2,597.16 5,682.56 5,682.56 6,930.47
5 Iran 48.16 58.05 0.00 3,965.09 3,965.09 6,789.28
6 Pakistan 1,444.48 2,145.33 0.00 4,247.76 4,247.76 6,644.10
7 Other Countries 16,445.48 24,555.13 14,000.80 20,649.25 20,649.25 35,036.92
Source: Prabu, 2014

31. Countries for sourcing India’s dairy imports
31
Sr.
no.
Country 2010-2011 2011-2012 2012-2013
Qty(MT) Value(lakhs) Qty(MT) Value(lakhs) Qty(MT) Value(lakhs)
1 New Zealand 30,570.07 51,722.35 21,059.48 41,297.72 771.15 2,793.70
2 France 1,737.71 1,927.01 13,973.85 23,258.70 1,869.79 2,487.64
3 Denmark 751.92 1,572.91 762.34 1,699.60 832.88 1,990.45
4 U.S.A. 669.07 1,111.21 1,143.45 2,246.60 449.01 1,983.88
5 Italy 165.23 694.51 1,077.91 2,326.26 294.29 1,452.00
6 Netherland 448.51 1,063.43 422.95 1,352.84 320.79 1,401.60
7 U.K. 1,986.49 1,251.52 2,094.69 1,511.28 921.80 1,074.24
8 Nepal 697.81 887.79 590.70 1,000.86 402.96 818.61
9 Spain 78.00 78..28 324.26 618.56 149.08 521.87
10 China 52.10 89.06 2,367.78 4,221.18 256.60 432.00
11 Other Countries 17,147.69 21,842.46 26,882.50 40,859.54 1,151.08 1,700.18
Total 54,334.60 82,240.53 70,699.91 1,20,393.14 7,419.43 16,656.17
Source: Prabu, 2014

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33. Opportunities
Large market and investment opportunities
Increasing quality of available milk for processing
Increasing income level of consumer
Changing lifestyle and preference for dairy products
Increasing number of customers
33

34. Untapped indigenous dairy products
Low cost of manpower and employment generation
Greater awareness to explore to global trends
Availability of raw material
Employment opportunities
34
Cont…

35. Milk from oilseed crops
Three major crops :
 soybean
 peanut
 coconut
35

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37. constraints
 Situational constraints
Technological constraints
Constraints in promoting exports of dairy products from India
Constraints providing dairy extension services
37

38. Cont…
Situational constraints
Sortage of green fodder area
Lack of clean water for management activities of animal
Lack of preservation facility for milk
38

39. Cont…
39
Technological constraints
 Milking issues
 Milk handling issues
 Issues in dairy plant
Source : Shiddharth, 2014

40. Constraints in promoting exports of dairy products from India
Low productivity
Lack of modern technologies
Improper management of dairy animal management practices
Unawareness of GMP and GLP
40
Cont…
Source : Subhash et. al.,2014

41. Constraints of market structure
Competitive structure
Lack of good Governance
Lack of standardization for dairy products
Marketing chain capacity and efficiency
Distribution channels
How market signals are conveyed or distorted
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43. Solutions for constraints
43Source : Subhash et. al.,2014

44. 44
Direct feedback from customer
Identification of recurring problems about vijya milk
Building accountability and enduring transparency in the
organization
Building confidence among the customers
Complaint
Redressal
System
Cont…
Source : Praveen,2012

45.  Establishment of Community Cattle Care Centre
 Increase in n of milking machines
 Recruiting skilled person
 Improving efficiency of can
 Development of dairy processing equipments
 Development of energy efficient devices – save energy
 Exploring possibility of retort pouches for UHT milk
45
Cont…
Source : Shiddharth, 2014

46. Reproductive management of dairy heard
Fodder development program
Strengthening and expanding milk production system at village level
Training and capacity building under NDP-1
46
Cont…
Source : Dilip, 2014

47.  Governments efforts and initiatives for upgrading dairy industry in India
 National Dairy Development Plans
 Intensive dairy development program
 Strengthening of infrastructure
 Assistant to cooperatives
 The national mission for protein supplements
47
Cont…
Source : Anonymous, 2014

48. 48

49. 49
Strength
• Demand profile
• Quite reasonable
• Flexibility on product mix
• Availability of raw material
• Technical manpower
Weakness
• Perishability
• Lack of control over yield
• Problematic distribution
• competition
Opportunities
• Investment opportunities
• Increasing income level
• Changing lifestyle
• Untapped indigenous milk
products
Threats
• Food safety
• Use of drugs and
pharmaceuticals for animals
• Draught and flood

50. 50

51.  Highly competitive Indian dairy industry poses threat/challenges for the survival in
the global dairy market.
 There is no doubt that there is tremendous scope for the growth of the dairy
industry in the new millennium.
 The dairy industry in India has been on a steady path of progression since Indian
independence.
 It has grown from producing 17 million tons of milk in 1951 to producing 127.3
million tons in 2012. Today, India is one of the largest milk producing countries in
the world. Currently, the Indian dairy market is growing at an annual rate of 7 per
cent.
51
CONCLUSION

52. Cont…
 Compound Annual Growth Rate (CAGR) of 16 percent, it is anticipated to reach
USD 118 billion in 2017.
 strong demand for dairy products, the Indian dairy industry is all set to
experience high growth rates in the next five years.
 Further Indian Dairy Sector is now all set ready to invite foreign investments as
well by proving that India is a well set and established market for Dairy business.
So one can surely say, be it an investor, a researcher, or a businessman, Indian
Dairy Sector surely has something for everyone. Thus we can say that, we have
done so far and we can surely do better in coming future.
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