The document discusses the dairy industry in India. It notes that 50% of buffaloes and 20% of cows reside in India. It explains the difference between the unorganized and organized dairy sectors. The organized sector accounts for only 13% of milk production compared to 45% at the farm level and 42% in the unorganized sector. It also discusses major players like Amul and Mother Dairy and how Operation Flood helped develop the dairy cooperative system in India.

1. Doodh Ka Doodh Pani Ka Pani

2. An Interesting Fact
50% of all Buffaloes and 20% of all Cows
reside in our India.

3. Flash Back!
Why we stopped raising cattle at home?
 Cost
 Sanitation
 Space

4. What is Dairy Industry?
Is it Handling of Cows?

5. Dairy Industry
 Handling of Milk
 Handling of Milk Products
 Marketing of Milk and Milk Products
 Dairy Technology

6. Dairy Technology
It’s a Science of :
 Milk processing
 Manufacture

7. Operation Flood
 Launched in 1970
 Flood of Milk
 Augment Rural Income
 Ensuring Fair Prices
 Three Phases

8. First Phase (1970 – 1980)
 Supportfrom Europe through World
Food Programme
 NDDB’s Role
 Connecting Milk sheds with consumers

9. Second Phase (1981 to 1985)
 Milksheds increased to 136
 290 Urban Markets
 43000 Village Co-operatives
 4.25 Million Milk Producers

10. Third Phase
 Co-operatives Expanded
 Infrastructure
 CattleHealth Care
 Education
 30,000 New Dairies
 Women Participation

11. Indian Dairy Industry
 One of the fastest growing sectors in
India, with a total size of about INR1160
billion (INR 1,16,000 crore) OR US$
26.5 billion.
 In Dairying, 75 million women are
engaged as against 15 million men.

12. Indian Dairy Scenario

13. Position Of Milk Production
By 45
 Farm Level 40
35
-45% 30
 Unorganised 25
20
-42%
15
 Organised 10
-13% 5
0
Farm Level Unorganised Organised
Sector

14. Position Of Milk Utilization
50
45
 Consumed 40
35
as Milk 30
- 46% 25
20
 Traditional
15
- 47% 10
5
 Western 0
- 7% Consumed Traditional
Products
Western
Products

15. Milk Supply Chain, in the traditional
and unorganized dairy system
 (i) Milk producers  Producer--Consumer
directly supply milk  Producer—Market---
to the consumer or Consumer
through a marketing  Producer—Middleware—
channel. Market—Consumer
 (ii) Milk producers
supply milk to the
consumers through
the intermediaries
like middlemen

16. Unorganized Dairy System
 Retailingof Milk in India is thoroughly
unorganized.
 There is no supply chain management
perspective.
 An overwhelming proportion of the Rs.
400,000 crore retail market is
UNORGANISED. In fact, only a Rs.
20,000 crore segment of the market is
organised.

17. Unorganized Dairy System
 As much as 96 per cent of the 5 million-
plus outlets are smaller than 500 square
feet in area.
 India per capita retailing space is about
2 square feet thus the lowest in the world
.
 Just over 8 per cent of India's population
is engaged in retailing.

18. Milk Supply Chain, in the traditional
and Organized dairy system
 (i) Producers’ milk reaches private
processors directly and After Processing it
reaches Consumer.
 (ii) Milk producers supply their milk to
primary cooperative society, which inter
alia supplies to secondary cooperative. The
milk, after processing , reaches consumers
via marketing channel, either directly or
through apex cooperative.

19. Milk Supply Chain, in the traditional
and Organized dairy system
 Producer—Private Processor—
Consumer
 Producer—Middlemen—Market—
Consumer
 Producer—Primary/Secondary
Cooperative Society—Apex Society—
Market—Consumer

20. Major Player in organized sector

21. Organized Dairy System
 From a size of
only Rs.80,000
crore, the
ORGANISED
retail industry
will grow to Rs.
2,40,000 crore
by 2007.

22. Challenge for Organized Sector
 Competition from the unorganised
sector.
 Organised sector have big expenses to
meet.
 Organised retailing also has to cope
with the middle class psychology that the
bigger and brighter a sales outlet is, the
more expensive it will be.

23. Challenge for Organized Sector
 While India as a
country became the
world’s largest milk
producer in 2001,
not a single Indian
dairy company
featured in the list
of global top 20
dairy companies

24. Opportunity for Organized Sector
 Economic and demographic changes
including rising disposable incomes.
 A growing proportion of working
women becoming a part of the urban
population.
 Greater awareness due to exposure to
global trends

25. Turning Point for Organised Sector
 The dairy industry was de-licensed in
1991.
 No license is required for setting up of
large-scale production facilities for
manufacture of ice cream.
 The exemption limit is increased for
compulsory registration of dairy plants,
from the present 10,000 litres a day to
20,000 litres.

26. Position Of Organized Sector
 There are 678 manufacturing units
registered with the Central and State
Governments.
 The combined capacity of these units is
73 million litres per day while they
process about 29 million litres per day.
 Significant excess capacity.

27. New Activities
 Launching of Venture Capital Fund
for Dairy ----scheme is being implemented
through NABARD to provide loans to
entrepreneurs in dairy and poultry sectors at a
lower rate of interest.
-----The objectives are to encourage clean
milk production, promote use of modern
technology in dairy farms and to bring the milk
produced in the unorganised sector to organised
sector.

28. Doodh Doodh Doodh
Wonderful Doodh!
 Vitamins
 Iodine
 Calcium
 Proteins
 Nutrients
 Short Shelf Life

29. Doodh Ke Parivarwale
55% of Milk produced converted to various
Milk Products

30. Sabse Bada Khiladi
AMUL
 Origin from the Sanskrit word ‘Amoolya’.
 Amul is a brand under which GCMMF
markets its products.
 Birth of GCMMF is closely linked to
India’s freedom struggle.

31. The Birth of Amul
 FirstCo-operative formed on 4th Jan 1946.
 Kaira District Co-operative Milk Producers
Union Ltd. formed 14th Dec 1946.
 Gujarat Co-operative Milk Marketing
Federation (GCMMF) was formed in 1973.
 Dr. Verghese Kurien was the architect of
Amul’s success.

32. Dr.Kurian’s Mantra for Amul
 Quality
 Economy
 Availability
 Service

33. Aaj Ka Amul
 GCMMF is India’s largest food products
marketing organisation.
 12 district co-operative milk producers’
union.
 2.5 million producer members.
 2.28 billion litres milk collected in 2005-
2006.
 Sales turnover stands at Rs.37736
million in 2005-06 (Rs.13790 million in
1995-96)

34. Amul Products
Market Market
Share Position
 Amul Butter 85% 1
 Milk
60% 1
powder
65% 1
 Toned Milk
60% 1
 Dahi

35. Amul Products
Market Market
Share Position
 Flavoured Milk 55% 2
 Ice
75% 1
Creams
90% 1
 Cheese
8% 2
 Ghee

36. Mother Dairy
 No.1 Regional Player in India.
 It was set up in 1974 under the Operation
Flood Program.
 It is now a subsidiary company of a wholly
owned company of the National Dairy
Development Board (NDDB).

37. Products
 Mother Dairy markets & sells dairy
products under the Mother Dairy brand
(like Liquid Milk, Dahi, Ice Creams, Dairy
Whitener and Butter)
 Mother Dairy sources its entire
requirement of liquid milk from dairy
cooperatives

38. Strengths

39. Strengths
 Demand profile: Absolutely optimistic.
 Margins: Quite reasonable, even on packed liquid
milk.
 Flexibility of product mix: Tremendous. With
balancing equipment, you can keep on adding to your
product line.
 Availability of raw material: Abundant. Presently,
more than 80 per cent of milk produced is flowing into
the unorganized sector, which requires proper
channelization.
 Technical manpower: Professionally-trained,
technical human resource pool, built over last 30
years.

40. Weakness
 Perishability
 Lack of control over yield
 Logistics of procurement
 Problematic distribution
 Competition

41. Opportunity
 Valueaddition
Areas of Value addition

Value added products like
Shrikhand,paneer,khoa,flavored milk, dairy
sweets etc

Addition of cultured products like yoghurt and
cheese lend further strength in utilization of
recourses and presence in the market place

Export potential Amul is exporting to
Bangladesh, Sri-Lanka, Nigiria and the Middle
East

42. Threats
 Milk Vendors, the un-organized sector.
 Today milk vendors are occupying the pride of the
place in the industry.
 Organized dissemination of the information about the
harm that they are doing to producers and consumers
should see a steady decline in the importance
 Operation Flood.