Emerging opportunities in Indian Dairy Industry : outlook for future

ICAR- NATIONAL DAIRY RESEARCH INSTITUTE
DIVISION OF DAIRY EXTENSION EDUCATION, KARNAL
Presented by : Vipin Kumar
Reg. no. 19-M-DX-02
M.Sc. 1st Year(2nd semester)1
CREDIT SEMINAR

EMERGING OPPORTUNITIES IN INDIAN
DAIRY INDUSTRY
OUTLOOK FOR FUTURE
OUTLOOK FOR FUTURE : EMERGING OPPORTUNITIES IN INDIAN DAIRY
INDUSTRY
2

INTRODUCTION
• India is the largest producer of milk in the world.
• but only 18-20 percent of the total milk produced is being channelized in an
organized manner.
• Milk - largest crop in India in terms of value at Rs. 6.5 lakh crore.
• it is more than the total value of paddy and wheat put together.
OUTLOOK FOR FUTURE : EMERGING OPPORTUNITIES IN INDIAN DAIRY INDUSTRY 3Source : INDIAN MIRROR(2018-19)

• India’s milk production is 187 MMT for 2019. It is contributing around 26%
to total agriculture GDP.
• Milk production is increasing at a steady CAGR of 4.4 % between1994-95
and 2017-18.
• India produced 22% of the total world milk output last year(2018) which is
186 MT.
• 22% of that year’s global total milk production of 843 million tonnes,
according to the UN’s Food and Agriculture Organization (FAO).
OUTLOOK FOR FUTURE : EMERGING OPPORTUNITIES IN INDIAN DAIRY INDUSTRY 4
Source : INDIAN MIRROR(2018-19)

SOURCE : DAHD(GOI,2018-19)

INDIAN DAIRY INDUSTRY
• World’s largest milk producing nation.
• Contributes about 22% to the global milk production.
• Indian dairy industry stands at a mammoth size of Rs. 10,527 billion.
• 193.5 million of cattle population and 109.9 million of buffaloes
(2019).
• the milk production per animal is significantly low as compared to the
other major dairy producers.
• per animal productivity is 1,806 kg a year, whereas the world average
is 2,310 kg.
Source : NDDB(2018-19)

SOURCE : IMARC(2018-19)

• The growth of Indian dairy industry during last three decades has been impressive, at more
than 5% per annum and
• it has emerged as the largest producer of milk.
• specializes in the procurement, production, processing, storage and distribution of dairy
products.
• India as a nation stands first in its share of dairy production in the international scenario.
Source : NDDB(2018-19)

• Dairy activities form an essential part of the rural Indian economy.
• serving as an important source of employment and income.
• Industry holds tremendous potential for value-addition and overall
development.
SOURCE : NDDB(2018-19)

ROLES OF INDIAN DAIRY INDUSTRY
• Industry provides profitable business opportunities.
• also serves as a tool of socio-economic development.
• For instance, the “National Dairy Programme (Phase-I)” aims :
a) enhance milk production through increased productivity
b) Human resource development
c) substantially expanding the infrastructure for procurement, processing,
marketing and quality assurance
• Provides employment in rural as well as in urban population.

PROGRESSIVE STEPS
• besides meeting domestic demands, the export of germplasm to tropical developing
countries.
• In this context National Dairy Research Institute (NDRI) Karnal has also set the target of
enhancing its semen production from the present level.
• Also about 400-500 males from elite herds of Sahiwal, Crossbreds and Murrah, are
proposed to be supplied every year for genetic improvement in the country.
• For improvement of various breeds of cattle and buffaloes there is a need to form
Breed Societies.
• linking them with bio-informatics centres at state, national and international levels.
• to develop National animal production and health information system.
• disease free zones in the country.
SOURCE : EDELWEISS

REASONS & ROLE BEHIND EMERGENCE OF
INDIAN DAIRY INDUSTRY
12

• intensive crossbreeding programmes implemented throughout the country over
the last few decades.
• continuance of well-proven technologies such as crossbreeding
• using multiple ovulation and embryo transfer technology for production
• using emerging reproductive and molecular technologies.
ROLE OF INSTITUTIONAL RESEARCH
SOURCE : EDELWEISS(2017-18)

ROLE OF PRIVATE SECTOR
• the private participation in the Indian dairy sector has also increased over the past
few years.
• National and international players are entering the dairy industry, attracted by the
size and potential of the Indian market.
• The focus is being given to value-added products such as cheese, yogurt, probiotic
drinks, etc.
• Also introducing innovative products keeping in mind the specific requirements of
the Indian consumers.
• These players are also improving their milk procurement network which is further
facilitating the development of the dairy industry in India.
• The market is expected to reach a value of INR 25,491 Billion by 2025, exhibiting a
CAGR of around 16% during 2020-2025. (Edelweiss)

ROLE OFTECHNOLOGY
• Large-scale technological integration as new-age start-ups began to flourish
• Called as 'Milk-tech' start-ups, these companies are not only stoking
consumer interest but also attracting global investors.
• Indian dairy industry is likely to see INR 13,000-14,000 crore investments by
2021.
• procured daily average of milk about 475.6 Lakh Kg per day during 2017-18
as compared to 428.7 lakh kg procured during 2016-17.

ROLE OF CO-OPERATIVES
• The cooperative milk unions together covered 1,90,516 village dairy cooperative societies, with a
cumulative membership of 16.93 million milk producers.(2018-19)
• The cooperative milk unions collectively procured an average of 507.69 lakh kg of milk per day as
compared to 475.29 lakh kg per day from last year (growth of about 7 per cent).
• About 16.6 million dairy farmers belong to 1,85,903 local dairy cooperatives.
• They are supported by 15 state cooperative milk marketing federations.
• the total number of women members in dairy cooperatives across the country was 5.06 million
representing almost 30 per cent of the total membership.

EXPORT FIGURES
• India's Export of Dairy products was 1,13,721.70 MT to the world for the
worth of Rs. 2422.85 Crores/ 345.71 USD Millions during the year 2018-19.
• Major Export Destinations (2018-19):Turkey, United Arab Emirates, Egypt ,
Bangladesh and Bhutan
SOURCE : APEDA(2018-19)

KEYTRENDS AND DRIVERS OF DAIRY INDUSTRY
Increasing per capita:
• India’s per capita milk consumption has been increasing at 3% CAGR versus 1% CAGR
globally.
Vast vegetarian population:
• Given rising income levels ,latent growth potential for India’s dairy industry is huge.
Rising share of organised sector:
• investments by organised players in the sector has been on the rise.
set to grow at 20% CAGR over 2016-20.
Value added products to grow at faster pace:
• gaining importance with increasing changes in India’s demographic and dietary patt
erns.
SOURCE : EDELWEISS(2017-18)

EMERGING OPPORTUNITIES

Growth of niche dairy products
• Rising Internet penetration and increasing consumer awareness
• consumers are increasingly inclined towards better, healthier alternatives
• such as camel milk, goat milk or donkey milk.
• Adulteration is not a cause instead demand is changing
• In 2018, the global camel milk market was worth US$5.64 billion
• It will increase to 8.01% by 2024, to a value of more than US$8 billion
OUTLOOK FOR FUTURE : EMERGING OPPORTUNITIES IN INDIAN DAIRY INDUSTRY 20SOURCE : INTERNET

• For instance, Camel milk may be an alternative raw materials for making food for
people suffering from allergies.
• Camel milk does not contain A1 casein and beta-lacto globulin, which makes it fit
to be consumed by those suffering from milk allergies and lactose intolerant.
• Further, goat and donkey milk are also gaining favour among health enthusiasts
as they are light on the stomach and packed with essential nutrients.
• However, it seems the most important that camel milk may:
a) support the health of people with diabetes
b) improve the general immunity
c) be an alternative to cow milk for people with allergy to cow milk protein
d) prevent hepatic steatosis (fatty liver).
SOURCE : INTERNET

Properties of
camel milk
it aids digestion
ease the symptoms
of autism in
children
prevent high blood
pressure
improves gut
health

Changing customer sentiments
• New-age consumers are more quality-sensitive and tech-savvy than ever
before.
• Hyper local delivery companies and tech-backed services are offering like;
a) Pure, premium milk and milk products
b) Ordered online in a matter of seconds.
c) Options of pre-payment
d) Long-term subscription
OUTLOOK FOR FUTURE : EMERGING OPPORTUNITIES IN INDIAN DAIRY INDUSTRY 23SOURCE : INTERNET

tech-backed
services
Pure, premium milk and milk
products Ordered online in a matter of seconds.
Options of pre-payment Long-term subscription

• For instance,The Milk India Company (2012) founded by Ms. Shilpi Sinha.
• delivers pure cow milk, which is raw, unpasteurised, and has zero
processing involved.
• certified by National Dairy Research Institute of India, is delivered in glass
bottles, at Rs 62 per litre.
• It has clocked annual revenue of Rs 27 lakh and Rs 70 lakh in the first two
years of operation.
SOURCE : INTERNET

• Tech-backed milk and milk-product delivery platforms are likely to expand.
• Offering a holistic grocery shopping experience through one consolidated app.
• An increased number of start-ups can be expected to stock and deliver milk, milk
products, vegetables, groceries and other everyday essentials.
• Several challenges still exist in the hyper local milk delivery segment.
• While the market size is considerably vast, consumers are quite fragmented.
Product expansion by dairy platforms
SOURCE : INTERNET

• For instance, Milk Mantra is an Indian agricultural dairy products startup based
in Odisha, India.
• Founded in August 2009 by former director atTetley Srikumar Misra and first
operational in 2012, it is India's first venture capital-backed agricultural startup.
• It was set up to solve the milk scarcity problem in the state.
• Milk Mantra has products like buttermilk, cottage cheese, curd, and yogurt.
brands Milky Moo and Mooshake.
SOURCE : INTERNET

• Milk mantra is known for its packaging that increases the shelf life of milk
products by up to four days.
• Milk Mantra has its main processing plant at Gop in Puri city of Odisha. It has
a processing capacity of 70000 liters of milk per day.
• The market is set to expand on the back of the aforementioned trends.
• Consumers will benefit greatly with easier access to high-quality products—
delivered fresh, daily.
SOURCE : INTERNET

CONCLUSION
• Dairy industry is of crucial importance to India.
• Indian market is vast and the dairy industry needs to take advantage of it. It should go
into the mass-scale distribution of milk procurement , processing and marketing.
• India is the biggest producer as well as the consumer of milk and the solution lies within
the ecosystem.
• The Indian dairy industry has the potential to pave the path of development for whole
Indian economy and for rural population especially.
• Dairying can alleviate the poverty and unemployment especially in the rural areas.
• The need is only to recognise the changing trend and nature of Indian consumer.
• Only by making improvement in the quality and quantity of the milk produced and by
adding value to it , both farmers and consumers can benefit.

“Growth is Never by Mere Chance; it is
the Result of Forces Working Together”

Emerging opportunities in Indian Dairy Industry : outlook for future

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