PRESENTATION ON DAIRY

Presented by:
Sudarshan Kr. Patel
Suhas Zod
PGDMA (2013-15)
FLOW OF PRESENTATION

INTRODUCTION
PRODUCTION
CONSUMPTION
PRODUCT MIX
EXPORT- IMPORT
SUPPLY CHANNEL
MAJOR PLAYERS
POLICIES
INSTITUTIONS
SWOT ANALYSIS
REFERENCES
 INTRODUCTION
India accounts about 2.4% of the worlds geographical area.
India has 15% of the livestock of total livestock population in the
world, with 50% buffaloes and 20%of worlds cattle.
Agriculture contributes 14% of the nations GDP, about 11% of its
exports.
India is the largest producer of milk in the world (>15% share) with
127.9 mt production in 2012.
Nearly 70% of Indian population depends on dairy directly or
indirectly.
Total GDP share : 3.6% (2011-12)
Growth rate of milk production : 4%
Consumer demand rate : 8%.
 TREND OF MILK PRODUCTION WORLD-INDIA

800

700 720.98
648
600 542.47 578.88
500 547.02
465.66
Value in mt

400 India
391.82
300 world

200
95.62 117
100 31.56 53.68 68.36
20.8
79.66
0
1960 1970 1980 1990 2000 2010 Years
2020

Indian milk production growth rate is better than world production rate
Milk Production Across Countries

Year 2010

India
117
U.S.
China
346.26 87.46 Pakistan
Russian federation
41.14 Brazil
35.49 Germany
32.14 others
29.67 31.82

Production in mt

Source-NDDB
 Share of Agriculture & Livestock sector in GDP
18%

16% 15.80% 15.60%

16% 15.30% 15.20% 15.20% 15.30%

14%

12%

10%
GDP(Agriculture)
8% GDP(Livestock sector)

6%

4.00% 3.80% 3.80% 3.80%

3.60% 3.70% 3.60%
4%

2%

0% Source-NDDB
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Livestock sector contributes nearly 25% of the share of agriculture in GDP.

Trend in milk production & per capita availability -India

350 140

300 120
g/day
250 100
mt 200 80
Per capita milk
150 60 availability(g/day)
Production (mt)
100 40

50 20

0 0
Major milk producing states(India)(2011-12)

milk production (mt)

UP
Other 22.5
42.31 18%
33%
Rajasthan
13.51
11%

Gujrat
Haryana 9.81
6.66 8%
5%
Tamilnadu Panjab
6.96 9.55
5% MP Maharashtra
7%
8.14 8.46
6% 7%

Source- NDDB
Per capita milk availability(g/day) of major states-India (2011-12)

1000
937
900

800
g/day 679
700

600
538
500 446
435
364 378 384
400

300

200

100

Source-NDDB
 Top major exporting countries in dairy products 2011-12

8000
7213
7000

6000
5166
5000
US $ Million

3918 3868 3860

4000 3560

3000 2620
2372
2021
2000 1805

1000

0
Germany Italy Belgium Netherland france UK China Spain Russian Saudi
Fed. Arabia

Source- APEDA
Top importers of Indian dairy products 2012-13

(In Rs crore)

Bangladesh 259.11

Egypt 179.06

UAE 142.82

Saudi Arabia 99.12

Algeria 95.14

Yeman 82.84

Singapur 69.3

Iran 67.89

Pakistan 66.44

Phillipinnes 41.78

0 50 100 150 200 250 300 Rs crore

Source- APEDA/PTI
Indias milk product mix 2009.

2% 1%

4%
6.50%
Fluid milk
7%
Ghee
Butter
46%
6.00% Yogurt
Khoa
Milk powder
Paneer
Other
28%

Source USDA
 India Dairy product Export
2009
3% 1% Milk and cream non
concentrated
15% Milk and cream
17% concentrated
Whey

6% Butter and other fats

Chees and curd

14%
42%
casin protein

2% Lactose and lactose

syrup

Source - USDA
 India- Dairy products Import
2009
1% 1%
Milk and cream non
8%
concentrated
6% Milk and cream
33% concentrated
Whey

Butter and other fats

Chees and curd

49%
2%
Lactose and lactose
syrup

Source- USDA
 Structure of dairy industry in India

Private
Dairies

Organized
(15%) Cooperatives
Societies
Indian Dairy
Industry:

Government
Unorganized
(85%)
KEY INDIAN PLAYERS OF DAIRY
 LOCAL DAIRY COOPERATIVES
Local dairy co-operatives State
Amul Gujrat
Warana Maharashtra

Verka Punjab
Vijaya Andhra Pradesh
Aavin Tamil Nada
MILMA Kerala

Saras Rajasthan
Parag Uttar Pradesh

The packaged milk segment is dominated by the dairy cooperatives

SUPPLY CHAIN OF DAIRY IN INDIA
SUPPLY CHAIN OF DAIRY INDUSTRIES IN INDIA
 DAIRY VALUE CHAIN

SOURCE- USDA
 OPERATION FLOOD
OPERATION FLOOD
Operation flood started by National dairy development board in
1970 made India largest producer of milk in the world.

OBJECTIVES-
Increase milk production.
Augment rural incomes.
Reasonable prices for consumers.

ACHIEVEMENTS-
Phenomenal growth of milk production in India, from 20 million mt to
100 million mt in span of 40 years.
The dairy co-operative movement encouraged Indian dairy farmer to keep
more animals which has result in 500 million cattle and buffalo population
in country.
Covering more than 12500 villages of 22 states.
.
 The Amul Model
The Amul model has helped India to emerge as the largest milk producer in the
world. More than 15 million milk producers pour their milk in 1,44,246 dairy
cooperative societies across the country. Their milk is processed in 177 District Co-
operative Unions and marketed by 22 State Marketing Federations, ensuring a better
life for millions.
The Amul Model of dairy development is a
three-tiered structure with the dairy
cooperative societies at the village level
federated under a milk union at the district
level and a federation of member unions at
the state level.
 POLICIES
IDDP- Intensive Dairy Development Programme
Development of milk cattle.
Increase milk production by providing technical input services.
Procurement, processing and marketing in cost effective manner.
generate additional employment opportunities.
To increase the social nutritional and economic status of residents of comparatively
more disadvantaged area.

Assistance to co-operative scheme (ACPS)

Revive the sick dairy co-operatives.
National Programme for cattle and buffalo breeding (NPCBB)
Genetic up gradation by organized breeding through Artificial Insemination or
natural service of a high quality bull.
Dairy venture capital fund scheme: (DVCFS)
Aim to promote ventures in the dairy sector.
National dairy plan: (NDP)
To increase the milk production to about 6 mt annually by 2021-22.
 INSTITUTION RELATED TO DAIRY
NDDB- National Dairy Development Board

NDRI- National Dairy Research Institute

IVRI- Indian Veterinary Research Institute

Swot Analysis

SWOT ANALYSIS

Strength Weakness

Largest milk producer in the world. Poor feeding practices.

A huge base of around 11 million farmers Poor access to institutional
credit
Traditional emphasis on consumption
Lack of cold storage facilities

Opportunity Threat
Elastic demand; economic growth will spur Nearly 85 per cent of the Indian
demand dairy industry is unorganized
Increasing preference for branded dairy Removal of import duty has led
products to the threat of dumping
Growing focus on health and nutrients in
urban market