Dairy sector in India: An overview

1
Dairy sector in India An overview

• Presented by
• Sanat Singaran
• Suchismita Sinha

2
Introduction

• Dairy sector is concerned with milk and milk
  products.
• Initially a shy sector
• Pasteurisation technique and refrigeration
  facility helped this sector to grow big.

3
The growth of dairy sector in India

• Initially a rural cottage industry.
• -----Here production area was very near to the
  consumption area.
• Then semi-commercial dairying started when
  military dairy farms and co-operative milk unions
  were established.
• -----This allowed delivering milk over regular
  routes in the cities.

4
The growth of dairy sector in India

• Long distance refrigerated rail-transportation
  were there from Anand to Bombay since 1945.
• Pasteurization and bottling of milk on a large
  scale for organized distribution was started in
  1950s.
• Establishment of Milk Plants come under the
  Five-Year Plans for dairy development.

5
Some facts and figures

• Around 100 million Milch animals are reared by 70
  million farmers.
• Village Cooperatives 100 thousand.
• Cooperative membership 11 million.
• Milk contributes 63 of the available animal
  protein in Indian diet.
• Milk would continue to be a major source of
  animal protein in India.

6
Present status of dairy development

• Primary catalyst NDDB and its cooperative model.
• NDDB had implemented operation food programme
  in 1970.
• The programme was implemented in different
  stages.
• Result of initial implementation of this
  programme is large dairy infrastructure.

7
Flaws of O.F project of NDDB

• The OF project focused mainly on most potential
  milk producing areas.
• Did not address the needs of many other areas of
  dairy sector.

8
Modifications on O.F project

• Focus on areas where O.F project was not focused
  yet.
• Integrated and broad strategy to develop dairy
  sector addressing maximum possible areas in
  concern.
• Strengthening cooperatives on Anand milk
  cooperative model.

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Anand model of milk cooperative

• Primary cooperatives are federated into district
  cooperative milk unions.
• District cooperative milk unions further joined
  to form state cooperative dairy federations.
• These cooperatives form part of the National Milk
  Grid

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Anand model of milk cooperative

• Some facts
• Operation flood covered 170 districts.
• Which is 100 thousand village dairy cooperatives
  with around 11 million producers as members.
• The network collects about 17 million litres per
  day and pays an aggregate amount of about Rs.700
  billion to the milk producers in a year

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Current scenario

• India is the largest producer of milk in the
  world (87 million tons)
• Near self sufficiency in milk and milk products
• Marginal and small households will continue to be
  the major producer of milk in future
• Current growth rates of 4-5 in milk production
  per annum

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Current scenario

• Sustained rise in per capita income and
  urbanization are fuelling rapid growth in
  demand for milk.
• The per capita availability of milk is 226 grams
  per day.
• The world average of 285 grams per day
• The minimum nutritional requirement is 280 grams
  per day as per Indian Council of Medical Research.

13
Projected scenario

• Milk demand is projected to rise to 121 kg/capita
  by 2020
• Total demand projected is at 156 million tons by
  2020
• Intensification of dairy activities and bigger
  role by private sector would be important.
  E.g.-Nestle India Ltd.

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Major forces countervailing dairy development

• The major constraint would be the feed.
• Decline in common grazing lands.
• Shift from present approach of Curative to
  prophylactic controls with respect to livestock
  health services.
• Breeding services to livestock are not up to the
  desired level.

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Dairy sector reforms

• The dairy industry was reserved for cooperatives
  and protected till 1990s.
• The industry was de-licensed in 1991 and opened
  for private participation.
• Milk and Milk Products Order (MMPO) enacted in
  1992 to regulate the production and maintain the
  quality of milk and milk products.

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Conclusion

• The Indian dairy trade volume is increasing
  rapidly in a progressive way due to increasing
  consumer demand in India and abroad.

17
References

• References
• Rado India, 2002
• Chand, R, Dairy Industry in India, NCAEPR, New
  Delhi 2004
• Indian Dairy Study, Opportunities in the Indian
  dairy Industry by Rabobank International
• 'New economic policies, the real threat
  Frontline, Vol. 19 - Issue 07, Mar. 30 - Apr. 12,
  2002
• Indian Dairyman, Vol. 11- Issue 07, August, 2003

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References

• www.indiadairy.com
• www.fao.org/
• www.punjabgov.net/
• www.banknetindia.com
• www.icar.org.in
• www.icar2005.org/
• www.ciionline.org
• www.acdi-cida.gc.ca
• www.foodprocessing-technology
• www.vetwork.org.uk/
• www.oecd.org