A snapshot describing current scenario of dairy industry with SWOT analysis

1. Current Status of
Milk Industry In
India With SWOT
Analysis
Submitted By
Radhakrishna Sahu
M-5643Image Source: Annual Report NDDB (2014-15)

2. Part-1: Current status of Milk Industry

3. Milk Production India
• Milk production (2014-15): 143.6 million tonnes (Source: NDDB)
• 2015 recording an output of 160 million tonnes
• India ranks first
• World’s 18.5% milk production (The Economic Survey 2015-16 )
• 6.26% growth (India) vs 3.1% growth (World) (Source: Press
Information Bureau, Government of India, Ministry of Finance)
• World milk production 805 million tonnes(2015) (Source:NDDB)
• Per-capita availability- 322 gms/day (Varies from 980gms/day in
Punjab to 10gms/day in Daman & Diu) (Source: NDDB)
• Recommended: 250gms/day (ICMR)
• Government is striving to expand it 180-200 million tonnes by FY22
(source: Economic times)
http://economictimes.indiatimes.com/articleshow/52397522.cms?utm_source=contentofinterest
&utm_medium=text&utm_campaign=cppst
0
20
40
60
80
100
120
140
160
180
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-2000
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2010-11
2011-12
2012-13
2013-14
2014-15
2015
Milk Production (1991-2015)
Milkproductioninmilliontonnes
Source: NDDB
0
50
100
150
200
250
300
350 1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-2000
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
(Year)
Percapitaconsumption(gms/day)

4. 46
7775
67
11691
7901
1172
1951
6121
10779
9542
82
83
20
76
1903
10351
16934
7132
141
25198
4961
16(A&Nisland
44 (Chandigarh)
9 (Dadra
nagar haveli)
1 (Daman &
Diu)
280 (Delhi)
4 (Lakshadweep)
48 (Pondicherry)
Milk production by each
state during 2014-15)
In 000 tonnes Source: NDDB
4207
1679

5. Livestock Population India
• Cattle: 199.9 million (Adult
female cow: 76.7 million)
• Buffalo: 108.7 million (Adult
female buffalo: 56.6)
• Buffaloes contribute more
than half of the total milk (72
MT out of 137.7MT) (2013 The Hindu)
• Sheep: 65.1 million
• Goat: 135.2 million
Source: NDDB in the year 2012
Import and Export and
fluctations in the
industry
•Imports of milk & milk
products increased
•Exports declined by 56 per
cent. (2013-14 1.38 lakh
tonnes to 0.36 lakh tonnes
•Average price SMP 213 per
kg in march 2015 (297
Per kg in april 2014) `
•Since april-may 2014 milk
price decreased by Rs. 10/l
•Northern india for buffalo
milk- 29-30/l (from 39-40/l)
http://indianexpress.com/
http://indianexpress.com/
Source: NDDB

6. Dairy Companies in India
• Government organizations
:under different state
governments (generally
cooperatives)
• And private companies
• Working together with the
national dairy development
board (NDDB)
List of Top Dairy Milk
Companies in India
1 Aravind Milkfoods Pvt Ltd,
Tamilnadu
2 Choco~a`la Carte, Mumbai,
Maharashtra
3 Dynamix Dairy Industries
Ltd,Pune, Maharastra
4 Param Dairy Limited, Gr. Noida
(U.P.)
5 Heritage Foods (India) Ltd,
Visakhapatnam,AP
6 Kream Kountry, Delhi
7 Mahaan Foods, New Delhi
8 Dhruv Makhan (India) Limited,
Gujarat
13 Gits Food Products Pvt. Ltd.,
Pune, Maharastra
14 Pastonji Ice Cream, Mumbai
15 Haryana Dairy Dev. Ltd.
17 Amul and Gujarat Coop.
18 A.P Dairy Dev. Coop. Fed. Ltd.
19 Orissa State Coop. Milk Ltd.
http://www.aravindmilkfoods.com/
http://www.chocoalacarte.com/
http://www.schreiberdynamixdairy.com/
http://www.paramdairy.com/
http://www.heritagefoods.in/
http://www.kdil.in/
http://www.mahaanfoods.com/
9 VRS Foods, New Delhi
10 Mother Dairy, U.P.
11 Lactose (India) Ltd., Gujarat
12 Modern Dairies Limited, Karnal,
Haryana
http://www.parasdairy.com/
http://www.motherdairy.com/
http://www.lactoseindialimited.com/
http://www.milkplus.com/
http://www.gitsfood.com/
http://www.pastonjiicecream.com/
http://www.vitaindia.org.in/
http://www.amul.com/
http://www.apddcf.gov.in/
http://omfed.com/
Organised sector 25-28 million tonnes(18-
20 per cent) (THE HINDU: October 27 2015)

7. Dairy Coopeative
• National cooperative dairy federation of
india (NCDFI, Anand): apex institute
• NCDFI emarket launched on june 10,
2015
• Electronic marketplace (efficient buying
and selling of dairy/agri products)
• Sells dairy product: butter, SMP, ghee
• 13.9 MT of milk collected by dairy
cooperati (increase of 11.1% to 2013-14)
• Total membership-15.4 million milk
producers
• Liquid milk marketing of the cooperatives:
11.7MT (increase of 6.1% to 2013-14)
http://www.indiadairy.coop/
http://www.ncdfiemarket.com/
http://www.ncdfiemarket.com/
Source: NDDB Annual Report
Source: NDDB Annual Report
Registered Dairy Brands in
NCDFI e-Market
•KMF (Karnataka)
•AAVIN (Tamilnadu)
•SARAS (Rajasthan)
•SUDHA (Bihar)
•VERKA (Punjab)
•VITA (Haryana)
•AMUL (Gujarat)
•MAAHI (Gujarat)
•VIJAY (AP)
•WARNA (Maharastra)
•DEVBHOG (Chattishgarh)
•Mother Dairy
•GOKUL (Kolhapur, Maharastra)
•VIKAS (Jalgaon,Maharastra)
ncdfiemarket.com
Total number of dairy
cooperative (Source: NDDB
Annual Report 2014-15

8. Schemes & Projects in Dairy Industry
• Dairy Entrepreneurship Development Scheme 2010-2011 to
2015-2016)
• Rashtriya Gokul Mission (2014-2015 and 2015-2016)
• National Programme for Bovine Breeding and Dairy
Development (NPBBDD) (2014-15)
• Dairy Venture Capital Fund (DVCF) (Dec. 2004)
• Assistance to Cooperatives Scheme (2009-10 to 2014-15)
• National Programme of Dairy Development (NPDD)
• Intensive Dairy Development Programme (IDDP)
• Strengthening Infrastructure for Quality & Clean Milk
Production
• Dairy plus scheme
• Centrally Sponsored Fodder and Feed Development Scheme
• National Dairy Project-1 (NDP-1)
https://www.nabard.org
http://dahd.nic.in/
http://dairyknowledge.in/
http://dahd.nic.in/
data.gov.in
http://dahd.nic.in/
http://dahd.nic.in/
http://dahd.nic.in/
www.sbi.co.in
https://www.nabard.org

9. Part 2: SWOT Analysis of dairy industry
"Failureisnever final,and success neverending”. DrKurien

10. 1. Strength
• Employment to rural population
mainly women
• Crop residues and agricultural
by-product feeding(low input)
• App. To the mixed farming
• Buffalo (india’s milking machine)
• Cooperative dairying (greater
milk production)
• Highly trained and qualified
technical manpower
• Large number of small and
marginal farmers (80% of
production)
• NCDFI emarket
• Large variety of milk products
•Vast livestock population
•Increased surplus of milk
•Purchasing power is increasing
•Milk consumption regular part of
the diet
•Large number of dairy plants (678 as
on march 31, 2004)
• Effective marketing channel
•High demand profile(155 by 2016-17)
•Reasonable margins
•Banning of chinese milk products
•Variety of quality products
•High per capita consumption
•Increase demand for milk products
(e.G. Ice cream- growing @30% (R S sodhi,
managing director of gujarat co-operative milk marketing federation)
Swot Analysis of Dairy Industry in India , International journal of
scintific research
October 27, 2015, The Hindu
NDDB
The Hindu: It will be a Cream Run for dairy industry for next 3 years: Crisil

11. 2. Weakness
• Mostly by low yielding animals
• Poor condition of roads and power
• Cold chain lacking
• Unaware about scientific dairy
farming, clean milk production
• Seasonal fluctuations(drought in
telengana (TOI: 6 apr, 2016)
• Impact assessment studies very less
• Perishability of milk & products
• Mastitis mostly sub-clinical
• Milk borne diseases
• Low milk prices
• Decreasing export
• Global warming: decreasing
production of exotic breed
•Feed availability to cattle
inadequate
•AI service limited coverage
•Industry vs marginal farmers
rising
•Inadequate health care activities
•Limited marketing support (rural
milk producers)
•Delay in the availability of funds
•Poor infrastructure in many areas
•70–85% surplus through informal
channel (quality concern )
•Indigenous breed verge of extinct
(the desi cow – almost extinct: tehelka)
•Fall in price of milk & products
•Adultrated milk (>68% does not
confirm standard) The Economic
Times:27/5/16

12. 3. Oppertunity
• Job and self employment
• Market size to increase 15.6% in FY16
• Milk production forecast 4.6% growth
• Improved export potential
• Utilization of by-products of the dairy industry
• Improving animal health care facilities
• Increased awareness in consumers about quality
• Increased farmer income by exploiting the high demand.
• Scientific approach to clean milk production
• Developed diagnostics to detect adultration
• Innovations in dairy ingredients and products
• NCDFI e-marketing may act as a booster for milk industry
Economic times: India Ratings and Research maintains positive outlook for dairy sector

13. 4. Threat
• Milk vendors: disparity in price and quality
• Large informal markets: a constraint for marginal farmer
• Quality issues: milk, a suitable medium for pathogen to
spread
• Increase in feed price: decrease the margin of benefit
• Excessive grazing: degradation of land
• Entry of multinationals : large portion of milk being diverted
towards value added products
• Natural calamities
• Extinction of indigenous breed due to extensive cross
breeding
• A1 milk: infants and old age people damages the immune
system ( beta casomorphin-7 (BCM7) metabolite, opiod
agonist )
• Methane gas (by-products of dairy industry) a green house
gas, a serious threat with increasing livestock population