Dairy Scenario In India

Indian Dairy Is Emerging As Sunrise Industry. India Represent One Of The World Largest And Fast Growing Markets For Milk And Other Products Due To increasing Disposable Income Among 275 Million Middle Class. The Country Is Been Changed After The End Of 2000A.D . As The World’s Number One In Milk Production. The Reason Being That It Is Rural Based, Land Saving And Gender Natural Composed To The Drop Production To Offers More Favorable Opportunities Of Employment. Dairy Farming Provides Substantial Source Of The Landless Labour As Well As Marginal Formers. During The Last 25 Years, We Have Moved From A Situation Of Sacristy And Rational Of Milk To Scenario In Which Milk Has Been Increasing At A Rate Faster Than The Rate Of Increasing Of Population. There Is Large And Rising Domestics Demand Both For Milk And Milk Products With An Expending Middle Income Group, There Exist A Market For Value Added Products, Especially In Cities And Towns. There Is Also The Possibility And Covering Surplus Into Conventional Milk Products Like Casein Is Not Only Import To Develop Contries. Modern Scientific Processing Technology And Managerial Incursion Are Opening Up Best Opportunities In Processing And Marketing Of Various Kind Of Value Assess Milk Flavored Milk, And Other Delicacies.The Emerging Consumption Patters Present New Challenges For The Dairy Industry. The Strategy Is Now Shifting From Distribution To Sales And Marketing Extreme Permissibility’s Of Milk And Possibilities Of Its Contamination Necessitate Rapid Movement Of Milk Difficult. Indian Dairy Market Is Multi Layered Shaped Like Pyramid With The Base Made Up Of Vast Market For Low Cost Milk. The Narrow Tip Is A Small But Affluent Market For Western Type Milk Products Presently, Rarely 782 Out Of 3700 Cities And Towns Are Severed By Its Milk Distribution Network Dispending Hygienically Packed Whole Some Quality Pasteurized Milk.Of The Three A’s Of Marketing ACCEPTIBILITY,

This category is better organized amongst other categories of processed food industry in India. How Affordable For The Majority With Limited Purchasing Power.1 million dairy cooperative societies generating about 18 million tonnes of the fluid milk daily. People In India Love To Drink Milk. namely.AVAILABILITY And AFFORDABILITY. This means that 15 % of the world’s milk is produced in India and that too growing at a rate four times of global growth rate giving India the status of the largest milk producing nation in the world. processing and marketing channel as it exists is unique in nature. There are two differences. About 70 million rural households are involved in cattle rearing and milk production. This Is Essence Of The Challenge INDUSTRY PROFILE The dairy industry in India is considered to be a category. . Hence No Effort Are Needed To Make It Acceptable. It Leaves The Third Vital Marketing Factor Affordability. out of which only 11 million farmers are linked with the 0. Our milk production. Its Availability Is Not A Limitation Either Because Of Ample Production. Indian Dairy Is Already With First Two A’s. When the world production of fluid milk stands at around 613 million tonnes and is growing at a rate of only 1. which has been growing and profitable. about 58 percent of this milk is from buffalo and despite being the highest milk producing nation in the world the per capita milk consumption in India is still lower (229 gm per day) than the world average (285 gm per day). This milk from dairy cooperatives forms the major source of fluid milk supply to cities and towns across the country.1 percent India’s milk production stood at 91 million tonnes growing at around 4 per cent per annum.

In the cooperative sector Amul has overshadowed other state cooperatives. Both Dabon International and Britannia are therefore. Butter is a Rs 6500 croes category of which organized sector represents only about Rs 500 crores and ghee is Rs 24500 crores of which organized sector is only Rs 3500 crores and the balance is with the unorganized sector.DAIRY PRODUCTS The other dairy products include butter. ghee and milk powder. Some of the private players and their brands also disappeared during this time as they could not play the new rules of the game. Small local brands have been able to create a niche and competing on price equation. There are more players in the segment both Indian and overseas than before. marketing the brands of cheese sourcing from Indian local players. They have their success stories but not been able to grow beyond the regional level. The large part of the processed dairy products are still with the unorganized local and small players including halwais and dudhias who operate in small pockets using traditional methods of processing where large players cannot easily reach. But in butter and ghee unorganized sector is the larger player. Of which. Local new players are not able to play the high pitch marketing game and therefore gradually reduced to become the subcontract manufacturers for the large players. The task in hand is thus how . Value Addition in Dairy Products In last one decade the processing scenario has changed. milk powder which is a Rs 25500 crores category is entirely with the organized sector.

In the first three years of the 10th plan period (2002-2007) agricultural sector growth plummeted to near about 1% but the economy has the resilience to absorb that pressure and we still service sector. cheese. condensed milk. By year 2020 our domestic demand for milk and milk products likely to reach a level of about 170 million tonnes and we can achieve this target provided we continue to maintain the current level of growth.8 % in GDP terms year on year as projected. Our surplus can marketed . a pessimist will argue that in post liberalization. whey casein etc. leading economic super power by the year 2050 but we would like to achieve that status by 2020. Given a good rainfall this should be possible. We need now another successful green revolution focusing on horticulture. agricultural growth rate has reduced. Although.we can integrate those unorganized players to upgrade them in the value chain? Can we help them to produce using better technology maintaining quality standard so that large organized players can market those at higher value through a franchised chain of outlets spread all over which can be owned by the same unorganized players so that they get higher value and at the same time play a larger role in the national interest? This is both technology as well logistic management task and we need to create a model for the success. This is possible if we grow at 7. When paneer industry is organized and the volume picks up whey protein isolate. According to the prediction of Goldman Sachs. In the next five years we will be delivering the same economic growth which we could achieve in last fifty years. In the global trade we have the products like butter & milk fat. Our products are based on buffalo milk whereas in global trade cow milk products are traded.4 % before 1990s. floriculture and dairy sectors. And if that is to happen agricultural sector has to deliver about 4 % growth year on year. milk lactose will be produced and exported. along with China and America. Future Vision 2020 India would like to emerge as the leading economic power by year 2020. it was 3. India will become one of the three.

One of the largest of those privately owned dairies is situated in Kaira District of Western State of Gujarat. procurement. OPERATION FLOOD Operation flood is an integrated programme for dairy development. The main objective of Operation Flood is to build a viable and self-sustaining national dairy industry on co-operative lines. pasteurized it and sent it by rail to Bombay. delivered the growth rate supported by the processing. For this purpose we need to forge global level collaboration.globally in the processed form provided we can develop the market for those. But the way market is developing for health related products including milk we will not have any difficulty in finding market for the increased milk output as projected in the domestic market itself. But it was private traders middlemen. The origin of Operation Flood can be traced back to the last century. marketing and production enhancement are to be b organizations owed and managed by farmers themselves. when organized dairies were set up to supply milk to British families and later to Indians. rought out through . who bought the milk from villagers. Operation flood is designed to raise milk producer’s income by organizing them into co-operatives and eliminating middleman to increase milk production in rural areas and creating a flood of milk. It produced milk from surrounding areas. many of whom had only a small amount to sell and were easily exploited. some 400 km to the south. The entire process of development in the increase of milk production.

Launched in 1970. The programme has laid emphasis on setting up of “Anand Pattern” rural milk producer’s co-operative organizations to procure process and market milk and to provide some of the essential technical input services for increasing milk production.” In the small town of Anand abbreviated as “AMUL” which means “Priceless” in Sanskrit. By 1990-91 it reached a level of 54 million tones by 2000 A. placing control of the resources they create in their own hands. Operation Flood's objectives included: • Increase milk production ("a flood of milk") Augment rural incomes Reasonable prices for consumers • • Operation Flood was implemented in three phases. making modern management and technology available to members.D. Operation Flood has helped dairy farmers direct their own development. The bedrock of Operation Flood has been village milk producers’ cooperatives. This project came to be known as “Operation Flood”.” in the small town of Anand abbreviation of “Anand Milk Union Ltd. In 1950-51 milk production of India was as low as 17 million tones. . The success of this can be attributed to the successful implementation of world’s largest development project Operation Flood Programme. which procure milk and provide inputs and services. The New Delhi Government set up the National Dairy Development Board (NDDB) in Anand in 1965 to guide state governments in how to develop dairy projects along the line of Amul dairy. which passed through three phases from 1970-1995. This was the inception of “Anand Milk Union Ltd. Operation Flood was result of an organized attempt directed towards the development of dairy industry in India. National Milk Grid links milk producers throughout India with consumers in over 700 towns and cities.In the late 1940’s political leaders persuaded the producers of Kaira district to organize themselves into co-operatives. reducing seasonal and regional price variations while ensuring that the producer gets fair market prices in a transparent manner on a regular basis.

About US $ 150 million was provided by the World Bank and balance by EEC. The overall objective of Operation Flood-1 was to lay the foundation of modern dairy industry in India. Kolkata. all of the increase coming from dairies set up under Operation Flood. NDDB planned the programme and negotiated the details of EEC assistance. Phase I (1970-1980) was financed by the sale of skimmed milk powder and butter oil gifted by the European Union then EEC through the World Food Programme. Phase II The background of the institutional frame work of Operation Flood-II (1981-85) essentially comprised the successful replication of the “Anand Pattern’. Domestic milk powder production increased from 22. marketing and production enhancement services at the union level and establishment of city dairies. Mumbai. The programme was approved by the government of India implementation during VIth plan period with an outlay of Rs. Chennai. following an agreement with the World Food Programme (WFP). processing.273 crore. A total of 116. which would adequately meet the country’s need for milk and milk products. Cooperatives covering 4.300 dairy Co-operative societies (DSC) in 39 milk sheds were organized. In this way .54 crore was invested in the implementation of the programme. Operation Flood linked 18 of India's premier milksheds with consumers in India’s four major metropolitan cities: Delhi. By its end in 1981. providing the physical and institutional infrastructure for milk procurement.Phase I Operation flood was launched in July 1970. A 3-tier cooperative structure of society. This programme involved organizing dairy co-operatives at the village level. It achieved a peak milk procurement of 34-lakh kg per day and marketing 28-lakh kg per day.000 tons by 1989.25 million milk producers had become a reality. During its first phase. about 13.000 tons in the pre-project year to 140. enrolling about 18 lakh farmer members. unions and federations.

bypass protein feed and ureamolasses mineral blocks. all contributed to the enhanced productivity of milch animals. "Operation Flood can be viewed as a twenty year experiment confirming the Rural Development Vision" (World Bank Report 1997c. The phase was funded by the World Bank to the extent of US $ 256 million. By its end 69600 dairy co-operatives in 170 milk sheds procured 116-lakh kg of milk per day and marketed about 94-lakh kg/day of liquid milk. Rather. dairying was seen as an instrument of development.6 crore and National Dairy Development Board’s own resources worth Rs. Innovations like vaccine for Theileriosis . Operation Flood major achievement is the National Milk Grid which has worked a lot by diminishing regional and seasonal imbalances which arises in the collection and distribution of milk. 226. Phase III Phase III (1985-1996) enabled dairy cooperatives to expand and strengthen the infrastructure required to procure and market increasing volumes of milk. Direct marketing of milk by producers' cooperatives increased by several million liters a day. generating employment and regular incomes for millions of rural people. Veterinary first-aid health care services. along with intensified member education. Operation Flood was conceived and implemented as much more than a dairy programme. feed and artificial insemination services for cooperative members were extended. EEC food aid to the tune of Rs.) .7 crore. 207. In Operation Flood-III. the investments were focused on strengthens the institutional management aspect of dairy co-operative at various levels to establish financially strong farmer owned and managed organizations.EEC gifts and World Bank loan helped to promote self-reliance. From the outset. Phase III gave increased emphasis to research and development in animal health and animal nutrition.

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