indian dairy products- a profile

8/12/2019 Indian Dairy Products- A Profile

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Project on-

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Index

Sr.No. Topic Page No.

1 Indian Dairy Industry- In the news 5

2 Indian Dairy Industry- A Profile

! Indian Dairy Industry- "ac#ground $

% Production of &il# in India '

5 (orld)s &a*or &il# producers '

+ ,port Potential for Indian Dairy Products 1

India)s eports of &il# products 11$ (hat does the Indian Dairy Industry has to /ffer

to 0oreign Inestors

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' Strategies and 3eco&&endations for Increasing

,ports

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1 "i4liography 1

Indian Dairy Industry- In the news

India eyes larger eports for &il# products. India the world)s largest &il# producer is

gearing up to capitali6e on the rising glo4al prices of &il# products while oerco&ing non-

tariff trade 4arriers in deeloped nations with 7uality certification.

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The reial of the su&&er &onsoon which accounts for $ percent of the rainfall in

the country has further i&proed prospects for the Indian dairy sector.

8India)s dairy sector has 4een recording four to fie percent annual growth as against

the glo4al aerage of around one percent. The &onsoon this year should help India record

another good year in dairy sector8 said 3. S. Sodhi general &anager 9&ar#eting: of ;u*arat

21 a tonne which is 3s.25 a #g

etra. ?ast year the do&estic de&and was &ore so we turned down so&e eport orders. "ut

this year the production has grown8 said Sodhi.

0ro& around 3s.+ &illion of eports last year ;


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8In 2!-% India)s &il# products eports further rose to around ! tonnes. (ith

the reduction in su4sidies and international prices going up Indian products are 4eco&ing

ery co&petitie8 said "aner*ee.

8In ter&s of olu&e of &il# produced in India the eports constitute an insignificant

proportion of less than half a percent of national production8 said state-owned National

Dairy Deelop&ent "oard 9NDD": which oerseas the operations of the cooperatie sector.

This is essentially 4ecause of the increasing do&estic de&and for &il# and &il# products

caused 4y rising inco&e ur4anisation and high-inco&e elasticity.

(ith India)s &il# production reaching $$ &illion tonnes the per capita aaila4ility of

&il# in the country has increased fro& 1 gra&s in 1' to 22+ gra&s in 2%.

This year India)s &il# production is epected to reach '1 &illion tonnes with the

spectre of drought dissipating.

8The co&petitie adantage of &il# production in India is fairly good. This is despite

the fact that &il# production is dispersed and pursued alongside crop production. There is

enough fund flow in &il# processing sector these days as cooperaties are gearing up to face

glo4al co&petition of 7uality dairy products8 the NDD" said.

Indian Dairy Industry- A Profile

Today India is )The /yster) of the glo4al dairy industry. It offers opportunities galore

to entrepreneurs worldwide who wish to capitali6e on one of the world)s largest and fastest

growing &ar#ets for &il# and &il# products. A 4agful of )pearls) awaits the international

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dairy processor in India. The Indian dairy industry is rapidly growing trying to #eep pace

with the galloping progress around the world. As he epands his oerseas operations to India

any profita4le options await hi&. e &ay transfer technology sign *oint entures or use India

as a sourcing center for regional eports. The li4erali6ation of the Indian econo&y 4ec#ons to

=N2.$ dollars.

Also to ta#e adantage of this lowest cost of &il# production and increasing

production in the country &ultinational co&panies are planning to epand their actiities

here. So&e of these &il# producers hae already o4tained 7uality standard certificates fro&

the authorities. This will help the& in &ar#eting their products in foreign countries in

processed for&.

The ur4an &ar#et for &il# products is epected to grow at an accelerated pace of

around !! per annu& to around 3s.%!5 crores 4y year 25. This growth is going to

co&e fro& the greater e&phasis on the processed foods sector and also 4y increase in the

conersion of &il# into &il# products. "y 25 the alue of Indian dairy produce is epected

to 4e 3s 1 &illion. Presently the &ar#et is alued at around 3s&n.

Indian Dairy Industry- Background

India with 1!%&n cows and 125&n 4uffaloes has the largest population of cattle in

the world. Total cattle population in the country as on /cto4er) stood at !1!&n. =ore than

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fifty percent of the 4uffaloes and twenty percent of the cattle in the world are found in India

and &ost of these are &ilch cows and &ilch 4uffaloes.

Indian dairy sector contri4utes the large share in agricultural gross do&estic products.

Presently there are around illage dairy cooperaties across the country. The

cooperatie societies are federated into 1 district &il# producers unions which is turn has

22-state cooperatie dairy federation. =il# production gies e&ploy&ent to &ore than 2&n

dairy far&ers. In ter&s of total production India is the leading producer of &il# in the world

followed 4y @SA. The &il# production in 1'''- is esti&ated at $&n =T as co&pared to

%.5&n =T in the preious year. This production is epected to increase to $1&n =T 4y

2-1. /f this total produce of $&n cows) &il# constitute !+&n =T while rest is fro&

other cattle.

(hile world &il# production declined 4y 2 per cent in the last three years according

to 0A/ esti&ates Indian production has increased 4y % per cent. The &il# production in

India accounts for &ore than 1! of the total world output and 5 of total Asia)s

production. The top fie &il# producing nations in the world are India @SA 3ussia

;er&any and 0rance. Although &il# production has grown at a fast pace during the last three

decades 9courtesyE /peration 0lood: &il# yield per ani&al is ery low. The &ain reasons for

the low yield are

?ac# of use of scientific practices in &ugged

Inade7uate aaila4ility of fodder in all seasons.

@naaila4ility of eterinary health serices.

Production of milk in India


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Productionin

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World's major milk producers


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Singapore Thailand =alaysia Philippines Capan @A, /&an and other gulf countries all

located close to India.

?ow 2. &illion in 22 and accounted for a

share of .15 in AsiaBs total i&ports 9of @S > 1. 4illion:. Si&ilarly India eported whey

alued at a4out @S > 1.2 &illion in 22 as against the total Asian i&port &ar#et of @S > 2'1

&illion 9.%1:. Thus there are pro&ising opportunities for eporting dairy products in

Asian &ar#ets. As regards eport potential of fresh &il# and crea& 9containing fat upto +:

to Sri ?an#a the study o4sered that the i&port 4y Sri ?an#a was low at @S > .21 &illion in

22. The total eports of the sa&e product 4y India to the whole world were also low alued

at @S > .$ &illion in the sa&e year. (hile IndiaBs eports of fresh &il# and crea& to Sri

?an#a was negligi4le the i&ports 4y Sri ?an#a hae 4een &ainly fro& Australia and New

Jealand. oweer efforts could 4e &ade to eport Indian fresh &il# to Sri ?an#a ta#ing cost

adantages in transportation.

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India's exports of milk products

What does the Indian Dairy Industry has to !ffer

to "oreign In#estors$

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India is a land of opportunity for inestors loo#ing for new and epanding &ar#ets.

Dairy food processing holds i&&ense potential for high returns. ;rowth prospects in the

dairy food sector are ter&ed healthy according to arious studies on the su4*ect.

The 4asic infrastructural ele&ents for a successful enterprise are in place.

Fey ele&ents of free &ar#et syste&

3aw &aterial 9&il#: aaila4ility

An esta4lished infrastructure of technology

Supporting &anpower

An entrepreneur)s participation is li#ely to proide attractie returns on the

inest&ent in a fast growing &ar#et such as India along with an eport potential in the

=iddle ,ast Singapore =alaysia Indonesia Forea Thailand ong Fong and other

countries in the region.

A&ong seeral areas of potential participation 4y N3Is and foreign inestors the

following list outlines a few pro&ising opportunitiesE

"iotechnologyE

Dairy cattle 4reeding of the finest 4uffaloes and hy4rid cows.

=il# yield increase with reco&4inant so&atotropin.

3eco&4inant chy&osin accepta4le to egetarian consu&ers.

Dairy cultures pro4iotics dairy 4iologics en6y&es and coloring &aterials for

food processing.

0er&entation deried foods and industrial products alcohol citric acid lysine

flaor preparations etc.

"iopreseratie ingredients 4ased on dairy fer&entation i6. Nisin pediococcin

acidophilin 4ulgarican contained in dairy powders.

Dairyfood processing e7uip&entE

Potential eists for &anufacturing and &ar#eting of cost co&petitie food processing

&achinery of world-class 7uality.

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0ood pac#aging e7uip&entE

/pportunities lie in the &anufacturing of 4oth &achinery and pac#aging &aterials

that help deelop 4rand loyalty and a clear edge in the &ar#eting of dairy foods.

Distri4ution channelsE

0or refrigerated and fro6en food distri4ution a world class cold chain would help in

proiding 7uality assurance to the consu&ers around the region.

3etailingE

There is scope for standardi6ing and upgrading food retailing in &a*or &etropolitan

cities to &eet the shopping needs of a ast &iddle class. This area includes grocery stores of

,uropean and North A&erican 7uality warehousing and distri4ution. Product deelop&entE

Dairy foods can 4e &anufactured and pac#aged for eport to countries where

Indian food en*oys 4asic acceptance. The &anufacturing &ay 4e carried out in

contract plants in India. An ption to &ar#et the products in colla4oration with

local esta4lish&ents or entrepreneurs can also 4e eplored. Products ehi4iting

potential include typical indigenous dairy foods either not aaila4le in foreign

countries or products whose authenticity &ay 4e 7uestiona4le. ;ula4*a&uns

"urfi Peda 3asagollas and a host of other Indian sweets hae good 4usiness

prospects.

Products typically foreign to India 4ut indigenous to other countries could also 4e

deeloped for eport. Such products can 4e &anufactured in retail pac#age si6es

and could 4e produced fro& &il# of sheep goats and ca&el.


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,port &ar#ets for co&&odities li#e dry &il# condensed &il# ghee and certain

cheese arieties are well esta4lished. These ite&s are utili6ed as ingredients in foreign

countries. These &ar#ets can 4e epanded to include alue-added ingredients li#e aseptically

pac#aged cheese sauce and dehydrated cheese powders.


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depth study of chosen areas so that chances of rewards are &ai&i6ed under the current

li4erali6ation cli&ate.

So&e of the &a*or dairy products &anufacturers in the country

%trategies and &ecommendations for Increasing xports

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9"y ,KI= "an#:

igher professionalis& could 4e i&parted in rearing &il#ing as also handling during

distri4ution of &il#. ?essons could 4e learnt 4y indiiduals and s&all dairy far&s fro& the

cooperatie sector which has &anaged to i&part so&e a&ount of professionalis& in its

operations.

Seeral areas in the dairy industry could 4e strengthened 4y induction of state-of- he-

art technologies transferred fro& other dairy &a*ors of the world. /perational efficiencies

are re7uired not only to i&proe yields 4ut also to reduce waste and &ini&i6ation of losses

in fat protein during &il# processing.

Biliography

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1: ,port =ar#eting

4y- Acharya L Cain

2: India ;uide 2!

!: 3"I "ulletin

Wesites

1: www.indiadairy.co&

2: www.ei&4an#.co&

!: www.indianepress.co&

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indian dairy products- a profile

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