The document discusses perspectives on the commercial dairy farming industry in India. It notes that India's milk production is growing at 5% annually and is expected to reach 220 million MT by 2020. Commercial dairy farming can help meet this demand through organized, hygienic farms that produce higher quality milk. However, it faces challenges like lack of interest from young farmers and obstacles to large-scale investment. The document advocates for policies supporting commercial dairy farming through tax benefits, incentives, and investment opportunities to promote the sustainable growth and quality standards needed to meet India's rising demand for milk.

1. COMMERCIAL OUTLOOK OF DAIRY FARMING
PERSPECTIVES AND KEY DRIVERS
Milk for every moment of every day, from morning to night
and from birth to old age.
“Sustainable Livestock Development and Dairy
Management” on 9th November, 2016 at Federation
House, FTAPCCI, Hyderabad
VIVEKANAND NALLA
IDD,BA, PGDRD , LLB, MBA, M , sc, M, Phil, PHD
DODLA DAIRY LTD

2. Philosophy of Indian Dairying farming
Mass production is production by masses -- Mahatma Gandhi
Present scenario need to enhance the system
Sustainable production is production by progressive communities.
Need for this study
•India is almost reached 156 Million MT , and following ahead with reaching towards
220 Millions MT by 2020, By sharing of world 17 % milk production .
• Annual Production growth increasing at the rate 5 % , Market annual growth
increasing at the rate of 7 – 9 % in packaged food .
•Telangana and Hyderabad is major shortage of milk production compared with
demand and supply , which supplied by the neighbor states .
•Commercial dairy farm with cross breed and farm atomization will attractive and
more hygiene quality farm milk price is high and suitable for value added products
and exports.
Major challenges
Procurement /processing/marketing Factors influencing the quality
The quality milk and milk products is influenced from cow udder to
consumer mouth the manner which the raw material handling quality effects in
different ways from collecting agents , transporter , CC/BMC, tanker , processing ,
post production handling storage , consumer reaching .

3. Raw milk quality challenges in system
Organoleptic quality assessment:
•Off- flavor, odors, taste, texture, and color
Nutritional or compositional quality:
•Fat , Solids not fat (SNF)- proteins, lactose, minerals and vitamins
Various Milk contaminant sources:
•Farm level:
•Microorganisms , somatic cells , pathogens, antibiotics, aflatoxins , pesticides,
Dioxins, breed, feed, medicine , health and other farm handling practices.
Environmental contaminants:
•Physical- extraneous matter
•Chemical-contaminants, residues, toxins, chemicals, preservatives,
Detergents, radionuclide's Heavy metals
Micro biological contaminates : Pathogens, flies , insects , Bacterial , and SPC
count etc
Other Adulterations:
•Water, sugar, salt, detergents, urea, vegetables and mineral oils,, foreign fat,
skim milk powder, preservatives, formalin , H2O2 and all
Good practices makes effective quality production but opportunity for
many adulterations chances make deterioration in quality , high bacteria count ,
and increasing toxins and acids effects on human health and life.

4. Emerging need to improve the clean milk quality system for future Dairy
trend:
• Any value added milk product manufacture need wholesomeness and taste
that can come from quality milk.
• Other wise : acids, metabolites causing off-flavors, taste ,etc
• Peptides, amino acids formed due to higher microbial affects products quality.
• Unless dairy industry under FSSAI clutches are making strong regulatory
implementation system impact on industry and consumers .
• Present on going procurement system may put industry in great risk in future
for consumers and exporting of dairy products .
So there is an urgent need for the Indian dairy industry to improve the
quality of milk and milk products by adopting better handling practices from
procurement to promotion of product . By putting advance technologies and
testing facilities at different stages to until consumer reach. By ensuring pure safe
healthy hygiene milk for consumers and export of products.
Future integrated farms
•Fresh Farm milk is a new category in the making in a country consuming 50 % of
its milk production as milk only.
•Fresh farm milk is not market milk. It is a value added product and subscription
by invitation only.

5. Enhancement of present procurement with modern system:
India is having mass production by mass people , so we can not avoid
present mass production system , procurement system may be alter in to
improvement the system .
1. community dairy farming system :
All the closed village cattle is to brought in to BMC /CC collection point ,
where AMCU milking by automatic milking machines by immediate cooling ,
then immediate tanker transport to process and packing.
2. Extending commercial dairy farming system :
Because of rural youth are not interest to continue the dairy profession , need
full professionals .
3. Future Perspectives on farm structure
Short term :
•Dairy extension through National Dairy Plan at small and marginal farmer levels
•Promoting mini sized farm from 25-100.
Medium Term :
Promoting mid size farm from 100-250 .
Long term :
promoting large sized dairy farms from 250-1000+
In this junction there is urgent need for organized & modernized dairy farming.
Commercial dairy farming is much different from villagers who rear few cows. Later
does not employ labor, cultivates most of the green fodder needs on his own land with
own labor, does not have to pay bank interest and above all invest too low in
infrastructure facilities.

6. Cow
Milk
Cow
Curd
Cow
Ghee
Cow
Urine
Cow
Dung
Bullocks
Health &
Nutrition
Panchgavya Medicines
Fertility
for soil
Bio Gas
Bio
Power
Bio
Pesticides
Draught
Power
Poverty
Alleviation
Self
Employment
Rural
Development
Environment
Protection
Sustainable
Agriculture
Contribution of cow wealth and health to
the cosmos

7. All basic necessities of life were woven around pivotal Cow
Cow
Housing
Transport
Fuel
Health
Food
Defense
Fodder
Farming

8. Benefits of commercial dairy farming
1. Organized & well planned project for long life based.
2. Well planed management and operations of project.
3. Environment and climate control.
4. Cost effective to avoid all procurement establishment cost .
5. Healthy and happy animals .
6. More production, better hygiene.
7. Better return to investment and profits.
8. Opportunity for export of milk and milk products.
9. Free antibiotics milk which is suitable for infants to elderly people.
10. Health and hygiene of milk will increase the shelf life of milk.
Advantages of the system
A. Hygiene and safe milk for consumers.
B. Reducing extension and establishment work at rural level to plant.
(Transport and other infrastructure work )
C. Establishment of agent wise AMCU system.
D. Accurate in quality and pricing justice for producer.
E. Avoid middle man play in quality and safety .
F. Control of quality contaminants .
G. Hazard control cost reduction .
H. Frauds control in present procurement system.
I. Low production cost compare with other countries

9. Major obstacles for commercial dairy farming
•Limitations of small and marginal farmers to improve milk production in both quantity and quality
• Limited land availability around consumption areas
• Lack of interest of upcoming generation in dairying at village levels
• Skill set for farm management
• Lack of pedigree animals
• Under capacity cattle feed production
• Poor supply/cold chain infrastructure Major hurdles for commercial dairy in India
• Inability of middle man to invest back in value chain
• Demand for quality milk
• Government policy support biased to mass production and employment
• Lack of community based farming
•Low quality and hygiene standards
•Lack of experience information
•Limited surplus for exports which is facing quality issues
Future integrated dairy farms
•Fresh Farm milk is a new category in the making in a country consuming 50 % of its milk production
as milk only
•Fresh farm milk is not market milk. It is a value added product and subscription by invitation only.
EX : In Dubai petrol selling to milk selling farm is with 180000 animals.
Focus and challenge areas:
• Dairy policy framework
• Dairy Value chain
• Major hurdles
• Critical Success factors
• Protocol for bovine and bovine products imports

10. Good dairy farming practices for quality milk
Main Objective of
dairy farming
Safe, quality milk is produced from healthy animals using management
practices that are sustainable from an animal welfare, social, economic and
environmental perspective
Good practices of
dairy farming
Animal
Health
Milking
Hygiene
Nutrition
(Feed & Water)
Animal
Welfare
Environ
ment
Socioeconomic
management
Uniqueness management system:
1. Animals that produce milk need to be healthy and an effective health care programme should be
in place
2. Milk will be harvested and stored under hygienic conditions Equipment used to harvest and store
milk will be well maintained
3. Animals need to be provided with feed and water of suitable quantity and quality
4. Animals will be kept according to the following principles:
1. Freedom from hunger and thirst
2. Freedom from discomfort
3. Freedom from pain, injury and disease
4. Freedom from fear
1. Freedom to engage in relatively normal patterns of animal behaviour
2. Milk production should be environmentally sustainable and cause minimal damage to the
surrounding environment
3. Human resource and financial management ensures the sustainability of the enterprise
4. Animal waste management system development (Urine , dung , water and etc,
5. Animal history management record ,
6. Technical application is required in applicable areas Ex: Milking , chilling and etc

11. Hi tech Shed
Feed stall with integrated sitting platform

12. Systematic feed stall
with auto water level
for safe and clean
management
Large centre path and tall
structure with air
circulation fans for better
climate management
Dairy Farming practices
• Capabilities & extension
• Productivity improvement
• Gaps (feeding, calf rearing, breeding,
milking hygiene, health, management)
• Inputs (on-farm, quality, cost)
• Quality & competitiveness

13. Ideal design & matting for
cow sitting & idling area...
Slope and grid pattern for
ideal drainage and cleaning
of cow urine and cow dung...

14. Solar power for clean and green power source...

15. Dairy feed and fodder silo and systematic storage and management

16. Open area for cow
resting
Cow maternity
and Special
facility for
maternity and
treatment of
sick cows
clinic

17. Hi pressure disinfected water spraying
machine for cleaning shade, floor, and
cows...

18. Automized Milking & Rotary parlour

19. Automatic
In-line
milking
In-Line
milking

20. Milk
Processing... &
packaging.
Automatic
storage and
chilling

21. Automized Cow Brushing... Ideal for cow health and
happiness...

22. Indian Small farmer Traditional Commercial
dairy farm

24. Expected demand and production vision

25. Demand supply and deficit

27. Telangana and Hyderabad dairy challenges and opportunities :
Dairy requirement of about 4.5 crore population not catered
sufficiently, because of scarcity of production. Organized sector supplying only
10 %. Balance supplied by vendor milk. Telangana is facing more adulteration
milk in rural and urban. Vendor milk which causes more adulteration, which
cause harmful and un healthy milk to consumers. So more entrepreneurship
opportunities in dairy farming industry .

28. Entrepreneurship opportunities in dairy industry
Dairy farming , heifers farming, , Male calf farming , feed industry , BMC,
Milk cooling , Milk collection AMCU, farm equipment, vermin compost units, Biogas
plants, cow urine and other medicinal , Traditional breed conservation , AI and
semen stations
NDDB FOCUSING:
National dairy plan is emphasizing on feeding breeding and health in order
to almost double the milk production in the next decade , in other hand improvement
in milk quality, nutrition , health, hygiene , high yielding animals and better disease
control measures , prospectus for dairy industry having good in future scope.
Target groups
Educated un employed youth, Woman SHG s , professional farmers and
small agri land holding farmers .
Increasing prices for farm fresh milk

29. Farm fresh milk with innovative packing

34. Cow waste economics

35. Cow waste makes wealthy and healthy living
PERSONAL CARE
• Panch-gavya Soap
• Hair Shampoo
• After Shave
• Face Cream
• Liquid Soap
• Tooth Powder
HOME CARE
• Phenyl
• Mosquito Coil
• Utensil Cleaner
• Cloth Whitener
• Glass Cleaner
• Toilet Cleaner
POOJAN
• Dhoop Sticks
• Samidha
• Hawan Samigri
• Pure Ghee
• Cow Urine
•Poojan Lep
NUTRITION & HEALTH
• Cow Ark
• Panchgavya Ghritam
•Gomutra Asava
• Arjun Herbal Tea
•Chavan Parash
MEDICINE-1
• Ghanvati - Piles
• Skin Ointment
•Medhor- Obesity
•Madhumeh Churan
•Nari Priyadarshini
•Rasamrita
MEDICINE-2
• Pain Reliever Oil
• Pachanamrita
• Balm
• Massage Oil
• Netra Jyoti
• Nasal/ Ear Drop
•Health & Nutrition
•Panch-gavya
•Medicine
•Fertility of soil
•Bio Gas
•Bio Power
•Bio Pesticides
•Draught Power

36. 1. Technical support through a team of Field professionals with relevant operational
background: animal husbandry, veterinary sciences, agronomy
2. Assortment of improvement programs aiming at increasing long-term
sustainability performance of dairy Cooperatives & dairy farmers.
MILK PROCUREMENT
Focus: milk collection operational
set-up
Objective: fresh milk quality
• Improving operational standards
• Quality based payment system
• Investment programs (credits)
• Regular supplier operation audits
• Facilitate import of critical
equipment (cooling tanks)
• Suppliers yearly competition
DAIRY DEVELOPMENT
Focus: sustainability lively hood
dairy farming , community dairy
farming , commercial dairy farming
Objective: cow productivity
• Feed & fodder: cultivation of
improved fodder; silage; cattle feed
formulation
• Animal health: mastitis prevention;
de-worming
• Herd management: recording (to
keep track of performance of dairy
cattle population); water availability
• Competitiveness: establish a
network of dairy farmers for
monitoring of cost of production
(supporting pricing decision making
process)
ENVIRONMENT
Focus: water protection &
renewable energy
Objective: biogas , power ,
urine etc ,,
• Promotion of biogas ,power
plants
• Improvement of cattle sheds
• Investment programs
Focus areas for long-term dairy development

37. Attractive Policies for Tax benefits , Investment, Incentives for commercial/Corporate Farming:
Taxation benefits:
•Dairy Farm income should be exempted from Income tax under section 10(1) of the Income Tax Act.
•Excise duty on molasses used in animal feed should be exempted.
•So loans for big farms and its implements may be available. It is important to have a more conducive
financial environment.
•Exemption on custom duty for import of imported genetic material as well as farm Equipment.
•Standardization of HS code and creating an 8 digit tariff line.
•Special lower rate under GST for dairy products and exemption of milk and fresh Category dairy products
Liberal Investment Policy:
•CAF declared as an industry
•100% foreign equity allowed
•No minimum foreign investment
•Remittance of capital, profits, dividends allowed
•CAF will enjoy credit & other facilities
•No ceiling on land holding
•State land can be purchased, or leased for 50 years, and extendable for another 49 years
•All banks and financial institutions will earmark separate credit share.
Attractive Fiscal Incentives:
•0% customs duty on import of agricultural machinery, equipment and implements (not manufactured
locally) New or used.
•Exemption of duty on transfer of land for CAF
•Dividends from corporate agricultural farms (for non industrial activities) not subject to tax
•Farm income given more favourable treatment than non farm
•Corporate incomes because of the risk/uncertainty associated with farming.
•Existing definitions of farming activity, as distinct from processing/industrial activity, continue to be
maintained

38. Investment Opportunities:
•Land development/reclamation of barren, desert and hilly land for agriculture, dairy
farming, Production of quality seeds, A.I stations, breeding stations, veterinary drugs,
feeding plants, and crops farming etc.
•Modernization and development of irrigation facilities and waste water management
plantation, utilization of advance technology.
•Forestry, Horticulture, Dairy Farming, Livestock farming, breeding
•Marketing/Export of Dairy- Agri-produce (separate package)
•Cold Chains (Separate package)
Advantages of the system
•Hygiene and safe milk for consumers
•Frauds in procurement
•Reducing primary transport risk
•Establishment of agent wise AMCU system
•Accurate in quality and pricing justice for producer
•Avoid middle man play in quality and safety
•Hazard Control of quality contaminants
Cow waste makes many economic benefits in present trend:
•Health & Nutrition / Panch-gavya / Medicine / Fertility of soil / Bio Gas plant
•Bio Power plant / Bio Pesticides / Draught Power

39. •Integration of system
•Integrating all the relevant actors for completing the value chains at cluster/state/regional level so as to
develop a critical mass necessary for sustainability at people, profit and planet level for the dairy sector
.
•Institutionalization of system
•It is 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. Except for National dairy plan which has taken an
integrated holistic approach, there is no other such scheme or networked program currently running in the
country.
•We need to have a separate ministry for dairy development in the country .The ministry must control the
dairy development through clear cut policies on milk production, breeding, fodder, vaccination programs, bio
security, germ plasm/progeny protection, milk collection, food safety, certification and capacity building for
dairy extension.
•The current size of the sector will not be possible by handling these issue at state and central level
separately. It is high time and an alarming state of affairs as stated earlier in the report. The ministry should
also look into ethics and governance in this sector.
•Investments opportunities
•The huge investment need to develop industrial structure and necessary infrastructure for clean milk
production, chilling, transportation, processing, fodder, breeding programs, feed and fodder.
•A large number of global MNCs are looking forward for FDI in Indian dairy sector but due to ethics and
governance related issues they are still holding back.
•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 to farmers create an imbalance in the local dairy eco system. This populist
measure could bring in interim relief to the farmers but not sustainability to the industry.

40. Conclusions
Commercial and small scale dairy farming in India is no doubt playing an important role in the
total milk production and economy of our country. And almost all regions of India are suitable for
setting up dairy farming business. Most of the dairy farmers in India are raising animals in small
scale traditional methods. They are not aware about the modern farming methods and improved
techniques for dairy farming. As a result, some farmers are losing their investment instead of
being benefited. Proper business plan, well management and care can ensure maximum
production and profit from dairy farming business.
The best approach is to create and run a sustainable dairy farm that gives maximum profits
to the firm and also takes care of the effects of dairy farms on environments and animals for a
longer period.
Thank you one and all for giving me this opportunity