What Sri Lankans' could get from Indian Dairy Industry?

1. Indian Dairy
Industry

2. India is the highest milk producer in
the entire globe????

3. But hundred thousand of people, specially
children always suffering with hunger…

4. Objectives of the Study
• Carry out a brief study on Indian
Dairy Industry.
• Identify the Indians’ strategies
which were used to become
successful in dairy Industry.
• Find whether those strategies are
applicable to Sri Lanka or not.

5. Indian Dairy Industry
• World largest milk producing nation.
• contributes about 15 % to the total milk production of
the world
• Indian dairy industry stands at a mammoth size of US$ 70
billion.
• Gross output of 103 million tons of milk in 2009.
(Growing 5 % per annum)
• 57 millions of cattle population and 39 millions of
buffaloes. (1997)
• More than 10 million dairy farmers belong to 96,000
local dairy cooperatives, who sell their products to one of
170 milk producers’ cooperative unions who in turn are
supported by 15 state cooperative milk marketing
federations.

6. • Indian Dairy Industry has achieved this strength of a
producer-owned and professionally-managed
cooperative system, despite the facts that a majority of
dairy farmers are illiterate and run small, marginal
operations and for many farmers, selling milk is their
sole source of income.
• In India dairy industry has been practiced as a rural
cottage industry over the years. Semi commercial dairy
industry stated with establishment of military dairy
farmers and co-operative milk unions in 19th century.
• The growth of Indian dairy Industry during last three
decades has been impressive, at more than 5% per
annum; and in late 1990-2001 the country has
emerged as the largest producer of milk.

8. • The existence of restrictive trade policy milk in the
Diary Industry and the emergence of Amul type
cooperatives have changed the dairy farming practices
in the country.
• Farmers have gained the favorable price for their milk
and for their production which was essentially a self-
reliant one is which is now being transformed into a
commercial proposition.
• India as nation stands first in its share of dairy
production in the international scenario. The industry
contributes about Rs 1,15,970 to the national
economy.
• The Indian Dairy Industry specializes in the
procurement, production, processing, storage and
distribution of dairy products.

9. Indian dairy association
• Indian Dairy Association (IDA) is the apex body
of the dairy industry in India. The members are
from the cooperatives, MNCs, corporate
bodies, private institutions, educational
institutions, government and public sector
units.
• IDA functions very closely with the dairy producers, professionals &
planners, scientists & educationists, institutions and organizations
associated with the development of dairying in India.
• The objective of the Association shall be the advancement of dairy
science and industry, farming, animal husbandry, animal sciences
and its branches including dairy farming & research on breeding,
and management of dairy livestock
• The IDA organizes seminars, symposia and exhibitions on a wide
range of topics catering to various segments of professionals,
scientists, institutions and organizations associated with the

10. How India became the “No. 01 Milk
producer” of the global dairy industry?
• India is the highest milk producer in the entire globe.
• India is well known as the “oyster” of the global dairy
industry, with opportunities galore for the
entrepreneurs globally.
• The main objective of the Indian Dairy industry is to
manage the national resources in a manner to
enhance milk production and upgrade milk processing
using innovative technologies.
• Lets study the Indian dairy industry on 5
dimensions to find out how they
become no. 1 milk producer of the
world.

11. National
policies
Animal/
Management Breeds
Successfulness
Processing &
of Indian Dairy Marketing
value adding
industry

12. (01).National Policies regard with
dairy industry
• India’s national policies with regards to economy,
Agriculture, rural development and dairy and milk
industry are the major secrets for their
successfulness in dairy industry.
• In India people who are involving with policy
making are well educated people and they have
both theoretical and practical knowledge about
the dairy industry.
• When making the policies regard with dairy
industry they have taken most suitable decisions
before 2, 3 decades.
• These policies are clearly defined and they were
prepared as suitable for forecasted future needs.

13. • Therefore these policies do not change with
time to time when governments change.
• Basic thing is politicians could not change them
according to their political agendas.
• They have linkages among different policies
such as economy, Agriculture, rural development
and dairy and milk industry policies. Also they
make policies as cooperatively each other.
• Their policies are well focused on long term
goals.
• They define most suitable strategies for
achievement of them.

14. (02). Animal/Breeds
• 57 millions of cattle population (1997)
• 39 millions of buffaloes. (1997)
• 27 acknowledged indigenous breeds of cattle.
• Seven breeds of buffaloes.
Indigenous cattle breeds- 40%
Buffaloes - 50%
Cross bred cows - 10%

15. • One of the strategy use in Indian dairy industry is they do
not highly depend on cross breeds.
• They have understood that indigenous cattle and
buffaloes are the best adaptable animals for the country.
• Therefore special efforts are also made to protect and
preserve the indigenous cattle and buffaloes in their
native tract.
• There is a national project for cattle and buffaloes
breeding.
• A Central Herd Registration for identification and location
of superior germ plasm of cattle and buffaloes,
propagation of superior germ stock, regulating the sale
and purchase, help in formation of breeder's society and
to meet requirements of superior bulls in different parts of
the country is also being implemented. The Government
of India has established Central Herd Registration Unit in
four breeding tracts

16. • The seven Central cattle breeding farms at Suratgarh
(Rajasthan), Chiplima and Semiliguda (Orissa), Dhamrod
(Gujarat), Hessarghatta (Karnataka), Alamadi (Tamil Nadu)
and Andeshnagar (Uttar Pradesh) are engaged in scientific
breeding programmes of cattle and buffaloes and
production of high pedigreed bulls for National Project for
Cattle/Buffaio Breeding Programme besides providing
training to farmers and breeders.
• The Central Frozen Semen Production and Training
Institute (CFSP&TI) located at Hessarghatta (Bangaluru) is
producing frozen semen doses of indigenous, exotic and
crossbreed cattle and Murrah buffalo bulls for use in
artificial insemination (A1). The Institute also provides
training in semen technology to technical officers of the
State Governments and acts as a Centre for testing the
indigenously manufactured frozen semen and Al
Equipments.

17. Popular cattle breeds in India
Average milk production- kg per lactation
Breed
Red Sindhi 2500-3000
Sahival 1000-3000
Gir 1590
Tharparkar 1135-1980
Hariyana 1400-2300
Ongole
These Indian cattle are small animals and their average body weight is not
higher than 600 kg. Also their average milk yield is in between 1500-
2500kg. When we compare them with European breeds it shows some
what low milk yield of them. But their body weight is small and therefore
feed requirements are low. Also they are well adaptable to the harsh
climate in India.

18. Buffaloes in India
Breed Average milk production- kg per lactation
Murrah 1400-2100
Surti 1570
Nili-Ravi 1500
Jaffarabadi/ Zaffarabadi 1800-2700
•Buffaloes also have small body sizes
•Easy to manage them with free grazing systems
•High tolerance to pest and diseases
•Well adoptable to harsh climatic conditions

19. (03). Management Strategies
Management of Indian dairy industry is done by 2
different parties.
Private dairy management
Cooperative management –MACS, State

21. Private dairy management
• Company Agent in village for milk procurement
• Companies has not direct involvements with farmers
• Company has negotiated with agent for price, but it is not the
price farmer gets.(slightly above co-op)
• Agent gives loans to farmer to maintain loyalty.
• They select special areas in which district co-ops is less active
and areas with high milk density.
• Ex- Andra pradesh private dairy management initiated in 1992
and it is collecting milk about 7 lakh liters per day among 3500
villagers. It is leading well recognized brand and have own
super markets.

22. Cooperative management
• Dairy cooperative management is the one of successful
strategy applied by Indians towards the success of the dairy
industry.
• This cooperatives help to collect, store and marketing their
perishable products safely.
• Profit maximization and easy accessibility to the bank
finance.
• It gives fixed price for their milk.
• While day today functioning of cooperatives is managed by
full time salaried employees, the committee or board of the
cooperatives, consisting of only elected members, make
the decisions of the cooperatives.

23. • Most dairy cooperatives adopt either two pr
three tier systems.
• A group of primary level cooperatives forms a
union which can be for a district, region or milk
shed area. This is the 2nd tier.
• The third tier is the unions joining up to form a
federation at state level or national.
• The federation has the power to act on such
issues as pricing, policies, extension, training,
control of milk products imports, subsidies and
credit.

24. • There are two types of Cooperative bodies in India.
– Mutually aided co-operative societies.(MACS)
– State Co-operatives
Mutually aided co-operative societies.(MACS)
• MACS has two tire system.
• Village or union level and district level.
• Accountability and ownerships at the village and district
levels.
• It has democracy in village or union level and freedom to
setting prices.
• No government control in administration.
• Members were elected annually.
• They are registered as separate MACS society and has the
freedom to use its own profit.

25. State Co-operatives
• 3 tire system
• Its contain village level, district level and state level.
• Village level managed by village society president.
• District levels managed by professionals.
• State level managed by bureaucrat.
• Normally they gives low prices.
• They are registered under cooperative society act.
• When we compare these management
systems, private dairy management and MACS
show a higher successfulness than state
cooperatives.

26. Anand Milk Union Limited

27. • Amul is based in Anand, Gujarat and has been an example
of a co-operative organization's success in the long term.
• The Amul Pattern has established itself as a uniquely
appropriate model for rural development.
• Amul has spurred the White Revolution of India, which
has made India the largest producer of milk and milk
products in the world
• The Amul Model is a three-tier cooperative structure.
This structure consists of a Dairy Cooperative Society at
the village level affiliated to a Milk Union at the District
level which in turn is further federated into a Milk
Federation at the State level.
• milk collection is done at the Village Dairy Society,
Milk Procurement & Processing at the District Milk
Union and Milk & Milk Products Marketing at the
State Milk Federation.

28. (04).Milk Processing and Value adding
• This is an another strategy used by Indians
towards the successfulness of the dairy
industry.
• They produce several kinds of value added milk
products and that will prevent the perishable
condition of fresh milk.
• Also it will help to find a better market.

29. Fluid Milk 46.0%
Ghee 27.5%
Butter 6.5%
Curd 7.0%
Khoa (Partially Dehydrated Condensed Milk) 6.5%
Milk Powders, including IMF 3.5%
Paneer & Chhana (Cottage Cheese) 2.0%
Others, including Cream, Ice Cream 1.0%

30. (05). Marketing of milk products in
India
• Marketing is basically doing by big companies , well
established cooperatives and state cooperatives.
• Therefore marketing is done well with popular brand
names and images of companies and co-ops.
• Also they can keep quality and maintain standards which
are expected by national and international market.
• Specially village level farmers are not engaging with
marketing of milk in India.
• For an example dairy cooperation's like AMUl maintained a
good quality of products under the brand name of “AMUl”.
Beside the India Amul has entered to the overseas markets
such as Mauritius, UAE, USA, Bangladesh, Australia, China,
Singapore, Hong Kong, and few south African markets.

31. As Sri Lankans what we can learn
from India?
• We can find out several strategies of India which are also applicable to Sri
Lanka.
– The basic strategy is we should have a clear policy for development of dairy
industry in Sri Lanka. As Indians policies it should contain long term goal with
strong methodologies which cannot be change by time to time.
– Formulating of policy should be done with competent persons, not politicians.
– We should develop and save our indigenous cattle breeds. Even though they
give low yield it is easy to mange them with local conditions. In India cross
breeds represent only 10% of cattle population. Still we highly depend on
European context and they are not suitable to dry and intermediate zones of
Sri Lanka.
– Also we should pay more attention to develop buffalos raring in Sri Lanka.
They can adopt easily to our climate. Also their tolerance is high. Indians get
more than 50 % of their milk production with buffaloes.
– As we think cooperative dairy associations are also Suitable to Sri Lanka. We
can start them on village level under the guidance of National Livestock Board.
– There should be proper system to value adding for milk products and
marketing them. We can get the help of private sector on that case.

32. References
• http://www.aavinmilk.com/dairyprofile.html
• http://www.fao.org/docrep/T3080T/t3080T0a
.htm
• http://www.ijtef.org/papers/92-F502.pdf
• http://www.technopak.com/resources/Food/
PPP%20in%20Indian%20Dairy%20Industry_Te
chnopak_CII_Background%20Paper_May08,20
10%20pdf%20ver.pdf

33. • Thank you.