It deals with Global and Indian Dairy Scenario. It also covers Growth drivers and challenges in Indian Dairy Industry . Current Issues in Indian Dairy Sector.

1. Market Intelligence of
milk and milk
products

2. GLOBAL SCENARIO OF DAIRY
INDUSTRY
Global Dairy Market is segmented on the basis of Product Type (Milk, Cheese, Butter, Dairy
Desserts, Yogurt, and Other Product Types), Distribution Channel (
Supermarkets/Hypermarkets, Convenience Stores, Specialist Retailers,
and Other Distribution Channels), and Geography.
In 2018, the global milk output was
valued at 843 million ton.
In 2018, the global milk output
was valued at 843 million ton.
Globally, in 2018, the export of
butter increased by 7.5%, mainly
contributed by countries, like New
Zealand, the United States, and
India.
In the European Union, there
was a decline in the demand for
butter.
The sale of dairy products is
contributing more than 50% to
the global sales.
Source:Dairy Market,Mordor Intelligence
2019-24

3. GLOBAL SCENARIO OF DAIRY INDUSTRY
● Fastest growing market- South America
● Largest Market- Asia Pacific
Lactose-free Dairy Products are Expected to Drive the Market Growth
● In the United States, Europe, and China, more than 5%, 10%, and 90% of the
population is intolerant to lactose, respectively.
● The United States accounts for 29% of all the lactose-free food consumed
across the world. The lactose-free dairy category is projected to register a
CAGR of 7%.
Source:Dairy Market,Mordor Intelligence
2019-24

4. Source:Dairy Market,Mordor Intelligence 2019-24

5. The South American region is the
fastest growing region ,followed by
the Middle East & Africa
Increase in demand for Dairy
Products leading to modernization
of dairy production in developing
countries.
CONTRIBUTION OF DEVELOPING COUNTRIES
IN MARKET GROWTH
The sale of dairy products is
contributing more than 50% to the
global sales.
The western market is witnessing
slow growth rate,primarily driven
by product innovation
Factors like efficient and sustainable
dairy production in developing
countries are impacting the growth
Modernization resulted in low
emission of greenhouse
gases,better milk quality and
commercial opportunities
Dairy
Industry
Source:Dairy Market,Mordor Intelligence 2019-24

6. Indian Dairy Industry
First in milk production
in the world
Total milk Production
176.3 MT in 2017-18
Total CAGR at 16% in
2019-2024
Market Size value
INR 9168 billion in2018
Highest milk producing
state- UP
Per capita availability
375gm/day in 2018
Source: IMARC Group,2019
NDDB Industry Report,2017-18

7. Driving factors in the growth of the Indian
Dairy Industry
INCREASING
URBANISATION
INCREASE IN PURCHASING POWER OF
CONSUMERS: Increasing working
women,Increased disposable
income,rise in
HORECA(Hotels,Restaurants & Cafe)B
Source: Care Ratings,2017

8. Emerging Value Added Categories: Shift towards value
added products-cheese, whey,UHT products,flavoured milk
has increased.It provides high growth potential and profit
margin
c
Driving factors in the growth of the Indian
Dairy Industry
Average EBITA for
margin for value added
products across
categories.
Source: Care Ratings,2017

9. Driving factors in the growth of the Indian
Dairy Industry
D
Competitive Landscape:
● The VAP (Value Added Products) contribute to
dairy market in India ~35% of the total dairy
commodity products together contribute to almost
~65% of market share.
Source: Care Ratings,2017

10. Potential for Future Growth in Dairy Industry
➢ Modi govt. decision to have separate ministry for Animal Husbandry, Dairying and
Fisheries.
➢ Dairying and animal husbandry contribute about Rs 7.7 lakh crore per year(4.2% of
National GDP).
➢ Current milk production of India stands at about 176 million metric tonne per year (20% of
World Milk Production).
➢ As per the NSSO survey, Currently Animal Husbandry and Dairying contribute 12% of
Farmer income, so this sector carry potential to contribute in “Doubling Farmer Income”.
➢ In next 40 years, India’s population will increase to 170 crore( current 135 crore) and
urban population.
➢ Demand of milk in next 40 years will be 64 crore liter/day (current 48 crore liter/day).
Source:The Business Standard

11. Potential for Future Growth in Export
Following factors can play a major role to Promote “Make in India” in the export market
of dairy products:
➢ Improving Quality: Significant investment has to be made in milk procurement,
equipments,chilling and refrigeration facilities
➢ Proper Training: Training has to be imparted to improve the quality to bring it up to
international standards.
➢ Better Productivity: It is imperative to improve productivity of Indian cattle to
maintain cost-competitiveness and surplus quantities.
➢ Locational Advantage: India is located amidst major milk-deficit countries in Asia
and Africa like South East Asian nations and Gulf countries.

12. Challenges in Dairy sector :
Low Productivity: India has world’s
largest cattle population but average
output of an Indian cow is significantly
lower than New zealand
counterpart.
Main reasons are as the follows:
➢ Inadequate veterinary health services
➢ Inadequate availability and poor
quality of fodder in all seasons
➢ Lack of implementation of scientific
practices in Dairy sector.
➢ Lack of Logistic facilities.
Title
India New
Zealand
Bovine population(2018) 14.4 crore 50 Lakh
Avg. Milk production in one
lactation by Exotic
Breed(2018)
2100 liter 6600 liter
No. of Registered
Veterinarians(2018)
67000 3000

13. CODEX Alimentarius Commission
● The Codex Alimentarius Commission is an intergovernmental body with over 180 members
established by the Food and Agriculture Organization of the United Nations (FAO) and the
World Health Organization (WHO).
● The C O D E X A L I M E N T A R I U S is the main result of the Commission’s work:
- a set of international food standards
guidelines
-Codes of practice with the goal to protect the health of consumers
-Ensure fair practices in the food trade.
● It thus helps in assuring the quality of food products .

14. Current Issues:
Poor Quality of Feed & Fodder
● According to the findings of the National Milk and Quality Survey, 2018, traces of
contaminants such as Aflatoxin M1 have been found not just in raw milk supplied
by unorganised players but also in processed milk supplied by organised players;
feed and fodder are the culprit.
● The Food Safety and Standards Authority of India (FSSAI) is looking at
bringing in standards for animal feed so as to curb contaminants.
● Till the time these regulations are finalised, the FSSAI has directed that cattlefeed
materials must conform to norms set by the Bureau of Indian Standards (BIS).
Source:The HinduBusinessLine,Dec13,2019

15. Total Quality Management of Feed and Fodder
● Animal Feeds play an important role in maintaining health and production of animals.
● For proper quality check , one has to follow the Standard Operating Procedures (SOPs).
Name of feed stuff Moisture
(% max)
CP(%Min) Fibre
(%max)
Crude Fat
(%Min)
Ash (%
max)
AIA
(%Max)
Decortified Groundnut
cake oil (grade 1)
8.0 48.0 8.0 7.0 - 2.0
Sesame oil Cake 8.0 40.0 7.0 8.0 13 1.5
Decortified cotton seed
oilcake
8.0 24.0 22.0 7.0 - 2.0
BIS Specifications for Indian Feedstuff:

16. Current Issues:
Ice cream and frozen dessert manufacturers facing
crisis in remuneration
Reason- SMP price double.
● The price of SMP which stood Rs 160-180 kg
last year , is currently available at Rs 325-350
per kg.
● According to, Indian Ice Cream Manufacturers’
Association, the prices have already doubled
and they are likely to go up further, if the
commodity is not made available through
imports.
● The small-scale manufacturers were already
affected by GST at 18%
● Biscuits, sweets and all those industries,
which were dependent on milk as an Source:F & B News, Dec5,2019

17. THANK YOU