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Dairy Processing In India-Overview
This document provides an overview of the dairy processing sector in India. It discusses key topics such as the regulatory framework, major players, growth of the sector, and challenges. The dairy sector is large and growing, valued at $70 billion in 2015. However, there are also issues such as low milk productivity per animal compared to global standards, due to ineffective breeding programs. The sector provides opportunities but also faces challenges around quality, productivity and infrastructure.
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Dairy Processing In India-Overview
- 1. Dairy Processing In India- Overview Presented by 1. Sumit Kulkarni. 2. Achyut Dixit. 3. Vikas More. 4. Ravindra Munde. 5. Sayali Bhangre.
- 2. Content 1. Overview ofthe Sector 2. Regulatory Framework 3. No of Players in the Sector 4. Top 10 Companies 5. Growth of the Sector 6. Issues and Challenges 7. New Trends in Sector 8. Future of the Sector 9. Conclusions
- 3. Overview of theSector Dairy In India Operation Flood Indian Dairy Market Overview Milk & Milk Product Organized vs. Unorganized Sector Operation Flood Dairy Sector Statistic
- 4. Dairy in India Dairy is Agro based industry. Largest producer of milk in the world (23%). Milk Production in FY 2013-14 :137.6 Million Tonnes (NDDB).. Cow milk - 61.3 Million Tonnes (44.55%). Buffalo Milk – 76.2 Million Tonnes (55.45%). NBAGR registered 37 breeds of Cattle & 13 breeds of Buffalo. Sector Size : $70 billion in 2015 (₹4,75,440 cr.) Breed No Cattle 61 Buffalo 19
- 5. Livestock Population inIndia by Species 155.3 175.6 178.3 192.5 204.6 185.2 199 190.9 43.4 51.2 57.4 69.8 84.2 97.9 105 109 0 50 100 150 200 250 1951 1961 1972 1982 1992 2003 2007 2012 Years LIVESTOCK POPULATION IN INDIA (Million) Cattle Buffalo Average Growth Cow – 3.25% Buffalo – 14.23%
- 6. Operation Flood World'slargest agricultural development programme. Implemented in 1970 by NDDB. Milk-deficient country Largest milk producer. In 30 years doubled milk available per person. Phase I : 1970–1980 Phase II : 1981–1985 Phase III : 1985–1996 Verghese Kurien (26 November 1921 – 09 September 2012) Father of White Revolution
- 7. Processed Milk Products MilkProducts Concentration Khoa, Basundi, Rabri, Khurchan, Malai Evaporated Milk, Sweetened Condensed Milk Coagulation Channa, Paneer Cheese, White cheese Fermentation Dahi, Payodhi, Misti Dahi, Chakka, Shrikhand wadi, Lassi, Chaach. Yoghurt Phase inversion of fat Makkan, ,Malai, Ghee, Kulfi, Malai ka baraf Butter, Butter oil, Ice cream
- 8. Organised vs. Unorganised MilkProduced in Villages Milk Consumed in the village (48%) Surplus Milk flowing into urban areas (52%) Handled by unorganised sector (70%) Handled by cooperative sector (16%) Handled by Private organised sector (14%) The organized sector is growing at nearly 10% in value tern per year. 65% of the milk is sold in “loose” form. 70% delivered to the homes by ‘milk agents’. Carton milk or packaged milk has been growing at 24% annually.
- 9. Milk Production AcrossCountries 20.8 31.56 53.68 68.36 79.66 95.62 117 53.07 58.24 67.01 69.86 76.02 80.25 87.46 1.96 2.93 7.04 10.19 12.37 32.02 41.14 7.42 12.06 15.08 19.2 20.53 25.53 31.82 0 20 40 60 80 100 120 140 1970 1980 1990 1996 2000 2005 2010 MillionTons Years MILK PRODUCTION ACROSS COUNTRIES India USA China Brazil Linear (India) Source : NDDB
- 10. Milk Production InIndia 17 20 23.2 31.6 44 55.7 69.1 84.4 102.6 121.8 127.9 132.4 137.6 130 126 110 128 160 178 202 225 251 281 290 298 302 0 50 100 150 200 250 300 350 0 20 40 60 80 100 120 140 160 1951 1961 1971 1981 1986 1991 1996 2001 2006 2011 2012 2013 2014 MillionTonnes gms/day Years MILK PRODUCTION IN INDIA Production (Million Tonnes) Per Capita Availibilty (gms/day) Source : NDDB
- 11. Milk Production byState (MT) 13857 17356 19537 21031 22556 23330 7455 8713 11931 13234 13512 13946 5521 7624 9570 11203 12088 12762 5312 6960 8386 9321 9817 10315 7777 8909 9387 9423 9551 9714 4761 6283 6855 7514 8149 8838 5849 6769 7455 8044 8469 8734 4850 5299 5745 6267 6661 7040 4910 5474 6651 6831 6968 7005 2489 5060 5934 6517 6643 6845 0 5000 10000 15000 20000 25000 2000-01 2005-06 2008-09 2010-11 2011-12 2012-13 Uttar Pradesh Rajasthan Andhra Pradesh Gujarat Punjab Madhya Pradesh Maharashtra Haryana Tamil Nadu Bihar Linear (Maharashtra) Source : NDDB
- 12. Per Capita Availabilityof Milk by State 722 823 892 957 937 945 586 617 645 624 679 720 275 322 376 449 538 539 313 316 341 393 446 447 236 289 317 372 435 445 136 161 172 181 197 206 0 200 400 600 800 1000 1200 1991-92 1996-97 2001-02 2006-07 2010-11 2011-12 PER CAPITA AVAILABILITY OF MILK BY STATES (GMS/DAY) Punjab Haryana Rajasthan Himachal Pradesh Gujarat Maharashtra Linear (Maharashtra) Source : NDDB
- 13. Indian Diary ConsumptionBy Product Type butter 3% ghee 8% milk powder 8% ice cream 4% liquid milk 73% paneer 1% cheese 1% flavoured milk 1% curd 1% Indian Dairy Consumption By Product Type butter ghee milk powder ice cream liquid milk paneer cheese flavoured milk curd
- 14.
- 15. Regulatory Framework Agriculturewhich include Dairy is State policy in India. No Government regulatory body for Dairy Sector. Centre cannot enforce policies on of State Govt. Department of Livestock is with Ministry of Agriculture. Dairy sector was de-licensed in 1991. Milk and Milk Product Order 1992. Collection areas/ milk sheds specified. Processing Capacity Fixed.
- 16. Laws Governing TheSector Up to 1991 Prevention of Food Adulteration Act, 1954. ( legislation for food safety) The PFA had been in place for over five decades. 2006 to 2011 Food Safety and Standards Act, 2006 (FSSA). It repealed eight laws which were in operation before.
- 17. Laws Governing TheSector 1. The Prevention of Food Adulteration Act, 1954. 2. The Fruit Products Order, 1955. 3. The Meat Food Products Order, 1973. 4. The Vegetable Oil Products (Control) Order, 1947. 5. The Edible Oils Packaging (Regulation) Order, 1998. 6. The Solvent Extracted Oil, De oiled Meal, and Edible Flour (Control) Order, 1967. 7. The Milk and Milk Products Order, 1992. 8. Essential Commodities Act, 1955 (in relation to food).
- 18. Laws Governing TheSector 2011 onwards New national regulatory body, the Food Safety and Standards Authority of India (FSSAI). Applicable from 5 August, 2011. Key Regulations of FSSAI. A. Packaging and Labelling. B. Signage and Customer Notices. C. Licensing Registration and Health And Sanitary Permits.
- 19. Government Initiatives NATIONAL DAIRYPLAN Include 14 major states (witch cover 90%). Aims to increase milk production to 180 million by 2021-22. Enhancing, strengthening and expanding infrastructure for production process. This plans to bring 65% of the surplus milk produced under the organised sector.
- 20. Government Initiatives DAIRY VENTURECAPITAL FUND SCHEME Entrepreneur has to contribute 10% seed amount and arrange 40% loan from local bank. Government of India provide 50% interest free loan New semen station – 25% of project expenditure. Procurement system – 50% of cost of capital.
- 21. No. of Playersin the Sector
- 22. Leading Brands OfDairy Products Brand Company / Organisation Active in Region Amul Gujarat Cooperative Milk Marketing Federation Ltd. All India Mother Dairy Mother Dairy Fruit & Vegetable Ltd. Delhi, North India, East India Nestle Nestle India Ltd. All India Britannia Milkman Britannia New Zealand Food Pvt. Ltd. All India Nandini Karnataka Cooperative Milk Producers Federation Ltd Karnataka Aavin Tamil Nadu Cooperative Milk Producers Federation Ltd Tamil Nadu Aarey Dairy Development Department, Maharashtra State Mumbai
- 23. Leading Brands OfDairy Products Brand Company / Organisation Active Mainly in Region Mahanand Maharashtra Rajya Sahakari Dudh Mahasangh Maryadit Maharashtra Vijaya Andhra Pradesh Dairy Development Cooperative Federation Ltd Andhra Pradesh Saras Rajasthan Co-operative Dairy Federation Ltd Rajasthan Milma Kerala Cooperative Milk Marketing Federation Ltd Kerala Arokya Hatsun Agro Products Ltd Tamil Nadu Metro Dairy Metro Dairy Ltd West Bengal
- 24. Leading Brands OfDairy Products Brand Company / Organisation Active Mainly in Region Verka Punjab State Cooperative Milk Producers Federation Ltd Punjab & Chandigarh Heritage Heritage Foods (India) Ltd South India Paras VRS Foods Ltd Delhi DMS Delhi Milk Scheme Delhi Omfed Orissa State Cooperative Milk Producers Federation Ltd Orissa Sanchi Madhya Pradesh Dugdha Mahasangh (Sahakari) Maryadit Madhya Pradesh
- 25. Top 10 Companies Sr. No BrandsFounded In Revenue 1 Amul 1946 US $ 3.42 Billion (2014–15) 2 Mother Dairy 1974 US $ 1.04 Billion (2014–15) 3 (KMF) 1982 US $ 1.46 Billion (2014–15) 4 Kwality Limited 1992 US $ 0.77 Billion (2014–15) 5 AAVIN 1958 US $ 0.66 Billion (2013–14) 6 MILMA 1980 US $ 0.30 Billion (2013–14) 7 OMFED 1985 US $ 0.09 Billion (2013-14) 8 DUDHSAGAR DAIRY 1963 US $ 0.62 Billion (2013-14) 9 AP DAIRY 1960 US $ 0.04 Billion (2013-14) 10 SCHREIBER DYNAMIX DAIRY 1995 NA Source : http://listz.in/top-10-dairy-companies-in-india.html
- 26. Growth Of TheSector
- 27. Growth Of TheSector Size of Indian dairy industry : $70 Billion in 2015. It is expected to grow to double by 2020 to $140 Billion. Indian dairy is growing at CAGR of 11-15% Value added products alone growing at 24%. It contribute 22% of Agricultural GDP. Operating margin in value added product is twice of liquid milk business.
- 28. Share Of AgricultureAnd Livestock Sector In GDP (Crore) Year GDP (Total) GDP (Agriculture) GDP (Livestock Sector) Rs.Crore % Share Rs.Crore % Share 2004-05 29,71,464 4k76,634 16.04 1,19,333 4.02 2005-06 33,90,503 5,36,822 15.83 1,27,518 3.76 2006-07 39,53,276 6,04,672 15.30 1,42,695 3.61 2007-08 45,82,086 7,16,276 15.63 1,69,296 3.69 2008-09 53,03,567 8,06,646 15.21 2,00,440 3.78 2009-10 61,08,903 9,28,586 15.20 2,37,059 3.88 2010-11 72,66,966 11,32,048 15.58 2,76,105 3.80 2011-12 83,53,495 12,68,081 15.18 3,27,838 3.92 2012-13 93,88,876 14,17,468 15.10 3,86,246 4.1 Source : NDDB
- 29. Growth Drivers ofDairy Industry India’s Population - 1.252 billion Population Growth – 2.1% annual GDP - 1.877 trillion USD (2013) GDP Growth - 5.0% annual Rapid Urbanization (31.16%) Raising Income Level Per Capita Income - ₹ 3,63,425 (2013) Fast changing food habits. Source : Wikipedia
- 30. Export of DairyProducts 213.56 305.48 222.48 62.26 132.42 258.3 109.87 255.85 320.63 243.93 0 50 100 150 200 250 300 350 0.00 5,000.00 10,000.00 15,000.00 20,000.00 25,000.00 Bangladesh UAE Pakistan Nepal Bhutan Philippines Singapore Morocco Oman Yemen Repubic EXPORTS FROM INDIA OF DAIRY PRODUCTS 2014-15 Qty (MT) Valuev (Lakhs) Rate Source : APEDA
- 31. Product wise Sharein Export 50.94 17.47 6.71 4.82 4.28 4.01 3.32 2.26 1.08 5.09 Skimmed Milk In Powder Melted Butter (Ghee) Butter Other Milk Powder Other Cheese Milk And Cream Of 1%<Fat<6% Fresh Cheese Processed Cheese Whole Milk (Fat>1.5%) Other Source : APEDA
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- 33. Issues and Challenges The quality of animals is critical in determining its milk productivity. 987 kg/lactation vs. Global average of 2 038 kg/lactation. Ineffective cattle and buffalo breeding programmes. Quality does not match International Standards. Lack of proper infrastructure facilities. Adulteration in milk. Middleman earn most of the profit. No proper maintenance of records.
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- 35. New Trends Increasingdemand for Organic Milk and Milk Products. UHT Milk. A2 Milk. Hydroponics fodder preparation. Modern Mechanisation of Dairy Farm. Loose Housing System (Mukta Gotha).
- 36.
- 37. Future of theSector Total milk production in India may touch 216 Million Tons by 2030. Per capita availability of around 390 gm/day by 2030. Packaged milk would grow to $32.9 billion by 2030. 73% milk sold by 2030 would be branded, against 31 % at present. 70% of the milk will be procured by Organized Sector by 2020. Upcoming International Player :- Coke, Pepsi, Alra Foods, Fonterra with Britannia and many more.
- 38. Conclusion India's DairyIndustry will remain on its growth path at least till 2020 1. Financial growth of existing domestic player. 2. Diversification of dairy sector by other companies. 3. Surge in private sector equity deal. 4. Entry of foreign firm in the segment.
Editor's Notes
- #5 NBAGR - National Bureau of Animal Genetic Resources
- #7 launched in 1970 project of the National Dairy Development Board (NDDB) the world's biggest dairy development program made India, from a milk-deficient nation to the world's largest milk producer surpassing the USA in 1998, with about 17 percent of global output in 2010–11 in 30 years doubled milk available per person Phase 1 :- During its first phase, Operation Flood linked 18 of India's premier milksheds with consumers in India's major metropolitan cities: Delhi, Mumbai, Kolkata and Chennai at a total cost of Rs.116 crores Phase 2 :- increased the milk-sheds from 18 to 136; 290 urban markets expanded the outlets for milk. By the end of 1985 a self-sustaining system of 43,000 village cooperatives with 4,250,000 milk producers were covered Phase 3 :- enabled dairy cooperatives to expand and strengthen the infrastructure required to procure and market increasing volumes of milk Veterinary first-aid health care services, feed and artificial insemination services for cooperative members were extended
- #8 Coagulation (also known as clotting) is the process by which milk changes from a liquid to a gel, forming a clot
- #33 ice cream industry, estimated at Rs.4500 crore in 2013 is likely to jump at about Rs.7000 crore by 2018