Abhyuday

Team Muggles
Priyansh Yadav
Princi Verma
 Problem Statement India’s Growth

The Dairy sector in India faces an acute challenge that lies in the insufficient
awareness and poor acceptance of nutritional supplements that boost the
productivity of the animals.The marginalised farmers are less aware of the
supplements available in the market as well as they are hesistant in accepting
these advanced solutions.

Goals 250
Milk Production in MMT

200
Per animal

The goal is to increase awareness and acceptance of the

productivity 150
is 1777kg
nutritional supplements , thereby bringing a socio-economic
change. India aims to produce to 330 MMT (million metric 100
ton) in the next 10 years which will contribute to 33% of the
world production. Aim
50
Per animal
productivity 0
will be more

FY 16
FY 15

Y 17
FY 14
09

FY 13

22
Y 0

Y 19
FY 12
Y 08

Y 8

20
07

FY 21
FY 11

1
than 2699kg

20
20
20
20
20

20
20
20

20
20
20
20

20

20
20
20

Y
Y

Y
Y
 Brief History

Founded on 14th February,1946 Founded on 16 July,1965 Started on 13th January,1970

Started by Dr.Verghese Kurien Started by Dr.Verghese Kurien Also called ‘Operation Flood’
Anand,Gujarat

PHASE 1 PHASE 2 PHASE 3

Started in 1970
This pahse led to the dairy development in This phase aimed at consolidating the aim of the
Objective:Settiing up of milk co-
the states of Karnataka,Rajasthan and first two phases by improving the productivity and
operatives in 18 milk sheds in 10 states
Madhya Pradesh efficiency of the dairy sector.
 Market Size Estimation Market Structure
Global Market Size: 2022: Estimated at USD 893 billion by Statista, with
projections to reach USD 1,243 billion by 2028. % of
Share of Total
Regional Breakdown: prod
Europe: Holds the largest share, controlling roughly 39% of global dairy product Market Production Use
uctio
exports. Surplus ( in MMT )
n
North America: A significant market, with the US being a major consumer and
producer.
Asia Pacific: Rising disposable incomes and urbanization are driving strong
growth in this region. 100% 100
Latin America: Emerging market with increasing demand for dairy products.

Others 45% 45 Home Consumption

10%

Flavoured Milk 55% 55 Marketable surplus sold in urban markets

4%

34.5% 19% 19 Sold in urban markets as loose unpackaged milk

Infant food
10%
Sold as processed products through informal
40% 22% 22 markets

Sold as packaged milk through formal

Ghee 14.5% 8% 8 markets
8% Liquid Milk
65%
 Dairy Industry Analysis
Strength
Numerous and small-scale dairy farmers in our country
Meeting the needs of urban consumers is facilitated by an efficient
marketing channel.
A vast array of creatures and enormous potential for productivity
improvement.
Manufacturing of cattle medicines that is self-sufficient and does not
depend on exports.
Research has started in this area, yielding in better breeds of cattle.
Opportunity
Large firms entering the retail space could result in more investment.
Higher farmer income through taking advantage of the strong demand.
Potential for exports due to low cost of the production
Large potential to improve dairy farmer organisations' governance, allowing
dairy farmers to demand better pricing.
Overall favourable economic climate, which is prompting the government to
improve infrastructure.
Weakness
An enormous portion of the marketable surplus milk (70–85%) is
distributed through unofficial channels, where quality is a major concern.
The inability of farmers to take on more risk and obtain loans prevents
them from growing their herd size.
Cooperatives have very little competition because the private sector was
previously prohibited from participating.
Milk distribution is limited to urban and peri-urban areas
Threat
Large portion of the population does not care about quality issues in
milk.
People are not willing to pay for premium dairy products because of their
high price sensitivity.
Farmers' access to large informal finance markets is limited.
Poor productivity and dispersed production drive up transportation costs.
Feed prices may rise if fodder prices rise significantly.
 Challenges
Health Disparity in Cattle Shortage of Fodder
Competition for Feed-The presence of unproductive animals alongside
Challenge-Scattered veterinary facilities and inadequate preventive care lead to productive dairy stock creates fierce competition for available feed and fodder,
high livestock mortality rates, impacting both animal health and community impacting the nutritional intake and performance of productive animals.
livelihoods.
Shrinking Grazing Areas-Industrial expansion has led to a continual reduction in
Strategies- Enhance infrastructure, educate livestock owners, and implement grazing areas, resulting in a persistent shortage of feed and fodder. This scarcity
government-supported programs to improve preventive care, technology hampers the dairy animal's performance and overall production capacity.
integration, and collaboration among stakeholders.
Quality and Affordability- Inadequate access to quality feed affects the
Hygiene Conditions
Impact:- Implementing these strategies aims to boost animal health, ensure
economic stability for farmers, and fortify national food security through a
efficiency of dairy animal production. Small-scale farmers and laborers engaged
in dairy farming struggle to afford quality feed and fodder, leading to mineral
Many cattle owners do not provide adequate protection for their animals, leaving
strengthened veterinary healthcare system. deficiencies and reduced profitability due to the high cost of feeding.
them vulnerable to adverse weather conditions. Mastitis is caused by unsanitary
conditions in cattle sheds and milking yards. Unsanitary milk production reduces
Pricing
storage quality and increases deterioration of milk and other products.

Unfair Milk Pricing:- Dairy producers receive inadequate payment due to the
emphasis on fat content in milk evaluation, impacting crossbred cow owners whose
milk's fat content decreases due to crossbreeding with Holstein Friesian breed.

Negative Perception-Farmers hold a pessimistic view of the commercial dairy

industry as a viable occupation due to the absence of marketing facilities and
extension services, limiting their options and opportunities.

Issues Faced- The drop in milk price evaluation based on fat content, coupled with
a lack of support services and marketing avenues, hampers the attractiveness of
dairy farming as a sustainable and profitable livelihood option for producers.
,
 Supply Chain Challenge
Perilous Perishability Labour Landscape

Workforce Woes: Shortages of skilled workers (farmhands, processors, truck

Spoilage Threat: Short shelf life demands rapid delivery and precise
drivers) disrupt operations and inflate costs.
temperature control. Inefficiencies lead to waste and lost profits.
Automation Ambitions: Integrating smart technologies and robotics requires
Disruptions Bite: Weather events, transportation delays, and power outages
significant investment and upskilling.
can quickly sour even the best-laid plans.
Safety Scrutiny: Stringent regulations and public awareness demand safe, ethical
Visibility Vacuum: Lack of real-time data on location and condition breeds
working conditions across the supply chain.
uncertainty and hinders proactive response.

Market Mayhem

Spoilage Threat: Short shelf life demands rapid delivery and precise
temperature control. Inefficiencies lead to waste and lost profits.
Disruptions Bite: Weather events, transportation delays, and power outages
can quickly sour even the best-laid plans.
Visibility Vacuum: Lack of real-time data on location and condition breeds
uncertainty and hinders proactive response.

Sustainability Practices

Implementing sustainable practices in the supply chain

Data: Impact on consumer perception and market positioning
 Supply Chain of Indian Dairy Industry

MILK

Inputs for Milk Milk Chilling and Transportation Processing & Transportation of Marketing&
packaged milk Consumers
dairying Production Collection Bulk cooling of chilled milk Packaging Distribution
and products

Large scale farmers

Chilling of milk at chilling
medium scale farmers
centres at village level Cooperative Dairy plants Own retail outlets
Small and marginal
Bulk cooling centres at Private Dairy products Supermarkets
farmers
district level Govt.Dairy plants Any retail outlet

Fodder Farmers
Animal feed plant
Veterinary aid
Organised Labour Refrigerated Vans Refrigerated Vans
Labour
--Coperative societies Insulated milk Insulated reefer vans
--Contractor of Private tankers of Private,Govt. of Private,Govt. and
dairies and cooperative Cooperative

Unorganized Sector Mithaiwalas/ Value added products

Local Milkman/Dudhiya Restaurants like sweeets etc
 Solutions in the Dairy Industry
Build trust and address concerns: Collaborate with respected
institutions, farmer cooperatives, and community leaders to
dispel myths and highlight the benefits of these solutions
through demonstration projects and success stories.For
example,

Promote holistic farm management: For long-term

sustainability, integrate nutritional solutions with larger
initiatives such as disease control, breeding programs, and
animal welfare measures.

Establishing a marketplace :Setting up of marketplaces that

can connect small,marginal farmers to formal buyers that
can fetch a better price before the goods perish.

Formation of collaborative bodies: Initiation of collaborative

bodies for dairy farmers in village areas so that they can
collectively bargain with local buyers(milkmen,sweet shops).
 Socio - Economic Impact

Build trust and address concerns

Collaborative bodies, formed with institutions, farmer
cooperatives, and community leaders, enhance market
stability by simplifying bargaining.
Increased collective bargaining ensures stable market prices,
securing fair compensation for farmers and fostering
community building.
Promote Holistic Farm Management
Shared objectives and strengthened cooperation make the
community more resilient. Collaborative bodies streamline
negotiations, contributing to stable market conditions while
reinforcing community unity.
Holistic farm management promotes productivity growth,
reducing healthcare costs.
By prioritizing sustainable practices, it minimizes
environmental impact and enhances the overall well-being of
livestock.
This approach not only leads to healthier animals but also
improves the quality of products like milk. The holistic model
recognizes the interconnectedness of farming practices and
their impact on both animal and environmental health,
resulting in a more efficient and cost-effective system that
benefits both farmers and consumers.
 Feasibility of the Impementation of the Plan
Market Analysis
Demand and supply analysis for dairy products.
Identify potential markets and consumer segments.
Competitor analysis and benchmarking.
Resources Assessment
Availability of land, water, and fodder.
Livestock health and breeding practices.
Technology and equipment assessment for dairy operations.
Technology Adoption
Technology and equipment assessment for dairy operations.
Benefits and challenges of incorporating smart farming practices.
Potential for automation and data-driven decision-making.
Environmental Impact
Assess the environmental sustainability of proposed changes.
Compliance with environmental regulations.
Government Support and Policies
Explore existing and potential government incentives.
Policy recommendations that could support the dairy industry.
Financial Analysis
Cost of production analysis.
Revenue projections based on improved productivity.
Return on Investment (ROI) calculations.
Risk Assessment
Identify potential risks such as market fluctuations, climate, and
disease outbreaks.
Develop risk mitigation strategies.
Operational Plan
Detailed plan for implementing improvements.
Phased approach for adopting new technologies or practices.
Consideration of training programs for farmers.
Social Impact
Evaluate the social implications on local communities.
Job creation and skill development opportunities.
Q&A Session
Invite questions and feedback from the audience.
Address concerns and clarify any uncertainties.
Thank You
Team Muggles
Priyansh Yadav
Princi Verma