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Indian Dairy Vision 2030

Reimagining Indian Dairy


Domestic milk Production
3500 Lakh Kg/day
Surplus milk sold from
production area
1800 Lakh kg/d ~52%
Unorganised Sector
1100 Lakh Kg/d ~ *70%
Organised
(300_400) Lakh Kg/d ~ *30%
Coop ~16%
~16%
Pvt.
~14%
Milk consumer in Production
area
1700 Lakh kg/d ~ 48%
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1841.5 Bill $
17%
32%
1217 M
61564 INR
127.9 MT
391 gm/d
GDP
Agri to GDP
Per capita income
Population
Milk Production
Milk availability
Dairy to Agri GDP
475 Bill $
23%
28%
1019 M
17381 INR
80.6 MT
220 gm/d
2013 2000
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Growth
rate
Production ~
4.5-4.7%
Consumption
~ 6.8-6.9%
2.67
-6.6
5.14
4.71
5.96
9.72
0.65
12.05
10.91
7 6.858957707
18.64185851 18.73671248
-10
-5
0
5
10
15
20
25
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
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Year
GDP-Indicators
GDP Agriculture growth (%) Industry growth (%) Services growth (%) Dairy gowth rate
0
1
2
3
4
5
6
0
50
100
150
Production Historic Growth Rate
Linear (Production) Linear (Historic Growth Rate)
45
46
0
20
40
60
80
100
120
Prediction Actual
A

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Source: Planning Commission
Economy
Biggest consuming class
Increasing per capita consumption of
Milk in both urban and rural areas
Nutrition is a national priority
Milk is an ideal ingredient

Consumption
Surrounded by milk deficit and progressive countries.
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Rural Population 800 900
(million)
350
400
500
150
> 5
1-5
< 1
Per capita Income
per day (USD)
250
50
2010
2020
0.00
500.00
1000.00
1500.00
2000.00
2500.00
1
9
9
0
-
9
1
1
9
9
1
-
9
2
1
9
9
2
-
9
3
1
9
9
3
-
9
4
1
9
9
4
-
9
5
1
9
9
5
-
9
6
1
9
9
6
-
9
7
1
9
9
7
-
9
8
1
9
9
8
-
9
9
1
9
9
9
-
0
0
2
0
0
0
-
0
1
2
0
0
1
-
0
2
2
0
0
2
-
0
3
2
0
0
3
-
0
4
2
0
0
4
-
0
5
2
0
0
5
-
0
6
2
0
0
6
-
0
7
2
0
0
7
-
0
8
2
0
0
8
-
0
9
2
0
0
9
-
1
0
2
0
1
0
-
1
1
2
0
1
1
-
1
2
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Axis Title
total Total U Dairy Food Food U Dairy U
Source: NSSO
Source: MART Rural
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326
100
150
200
250
300
350
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P
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Existing growth rate (4.7%) 5% growth rate 5.5% growth rate Demand
0
-3
-24
1
-9
1
7
18
-30
-25
-20
-15
-10
-5
0
5
10
15
20
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/

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Existing growth rate (4.7%) 5% growth rate 5.5% growth rate Linear (5% growth rate)
Strengths

Mamoth cattle population
Largest pool of A2 producres
Animal rearing is a house hold practices.
Increasing percapita milk Availability
Opportunities
Huge interntional demand
Opportunites in Backward integration
Innovation an technology development
Carbon creditsand nonconvential sourse of enrgy
(Biogas)
Growing and affluent population
Global growth in dairy consumption
New and innovative products
New routes to market
Industry consolidation


Threats
High rate of urbanisation.
No distribution and pricing policy.
No fodder policy, not clear under which mistory
fodder falls.
No breeding policy.
No control over unproductive animal growth.
Milk incentive on fat not on quality.
Poor animal insurance policy
Import and Export policy of animals, semen,
embroyo and dairy products are not conductive of
small and marginal farmers.
Weaknesses

Large population of low productivity cattle.
Fragmented production.
Poor costing by farmers due to imputed costs.
Poor farm and nutrition management.
Poor hygiene.
Not considered full time employment.
Poor infrastructure for collection,nchilling and
transportation.

S W
T O


Challenge Areas
Low productivity 960 L/lactation.(11 Cr animal for 35 Cr l/day)
Feed shortfall.
90% unproductive animals consume 80% feed.
Developing mass scale extension services. Only 20% penetration of AI.
Skill enhancement in scientific dairying.


Focus Areas
Improve animal productivity
Promote A2 milk.
Enhance capacity utilisation by making value added products.
Developing mass scale extension services. Only 20% penetration of AI.
Devolve critical mass to support sustainable dairy.


.
Policy framing institutions work in silos with low alignment of potential outcome across
integrated value chain.
Policy framing institutes governed by research institutes with negligible say of industry.
Institutional research prioritised towards publication rather than industry.
Small or Marginal farmers centric policies, limiting scope of radical sectorial change or
growth parameters
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Financial outlay of 416 million dollars (more than 20 billion rupees.
Increasing productivity through scientific breeding and nutrition.
Strengthening village-based milk procurement systems.
Rural self employment.
National Dairy Plan
(2007-22)
Strengthening infrastructure for quality & clean milk production.*
Assistance to Cooperatives.*
Dairy Entrepreneurship Development Scheme.*
Intensive Dairy
Development Program
(IDDP) (2013-14)
Improve cattle genetics by servicing 80% of adult females through an organized genetics
management program.
Replace 20 million low producing nondescript cattle and buffaloes with genetically superior.
Establish an authority that can certify the authenticity of semen, semen stations, and AI bulls.
National Dairy Development Board has very recently approved INR 300 million (USD 4.9
million) for rearing of improved sires in the state of Haryana.
National Project for
Cattle and Buffalo
Breeding (NPCBB)
Allocation of more than USD 65 million.
Promote animal based protein production through livestock development, dairy farming.

National Mission for
Protein Supplements
2011-12
*Subsidiary Programs
Small and
community
led
Affordable
technology
Extension at
the door
step
Value chain
financing
Dairy
Can be Indias
largest self-
sustainable &
Inclusive rural
employment
generator

Identification
Inventirization
Integration
Instutionlisation
Investments
Suruchis 5I model: Postal address of Indian Dairys success mantra.
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identifi
cation
Feed
Farm
Animal
Identifying and enrolling complete dairy value chain for milk production, collection, chilling,
processing ,logistics and marketing.

All actors in feed and fodder.

All actors in breeding, AI, semen, bulls, research, imports, animals trading

All actors in farm and process equipments, cold chain, technology, packing and packaging
material.

All actors in quality control, food safety, certification, testing labs, calibration and training.

All research institutions, colleges, Universities, open Institutions in both private and public
domain.
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Developing inventory of Existing norms, standards, local practices, SOP, skill set.

Cluster development on the basis of cluster best practices.

Developing a national inventory of clusters and placing them on national canvas

Developing and implementing capacity building programs after identifying gaps
at the cluster level through communities/relevant groups
< 120 ml/day
120-180 ml/day
180-250 ml/day
> 250 ml/day
identifica
tion
Feed
Dairy
farm
Animal
data
Organisa
tion Research
Universiti
es
Breeding
Semen
Importer
s
Exporters
Equipme
nt
Testing
Calibratio
n
QA/QC
Cold
chain
Nutrition
Markets
Urea/mol
asses
Chilling
Logistics
Integrating the value chain to identify actors, enablers, stakeholders. To develop a critical mass
necessary for sustainability at people, profit and planet level for the dairy sector..

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Feed Farm Chilling

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Customer Plant
Investments
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High time for the industry to be patronised and run through highly fragmented institutions with very low level of alignment with the
National dairy growth goal. The current size of the sector will not be possible by handling these issue at state and central level separately.
Mobilise huge investment to develop industrial structure and necessary infrastructure for
clean milk production, chilling, transportation, processing, feed, fodder, breeding
programs,

Long term National Dairy Bonds: Government might pump in 1000 crores for developing
milk collection and chilling infrastructure at all district levels.

Cess could be introduced on milk processing, cattle feed production, imported semen
suppliers, dairy technology suppliers and all other relevant value added service provider to
the industry.

Direct subsidies at state level bring in interim relief to the farmers but not sustainability to
the industry.

MNCs looking forward for FDI, holding back due to ethics and governance related issues.



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Thank You

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