India is the world's largest milk producer, producing 187.7 million tonnes of milk in 2018-2019. Dairy farming is integrated with crop production for many small landholding farmers. Milk production is largely based on low-input systems. Two-thirds of farm households are involved in livestock production including dairy. Per capita milk consumption in India is lower than recommended levels. There is potential to increase milk productivity through improved cattle breeds and feeding practices.

1. STATUS OF DAIRY INDUSTRY IN
INDIA
Dr. Ulhas Shivaji Gaikwad
Assistant Professor
College of Agriculture, Pune
22-06-2023 Dr Ulhas Gaikwad 1

2. Introduction
 India is the world’s largest milk producing
country. The milk production of India has
grown from 17 million tonnes in 1951 to 187.7
million tonnes in the year 2018-2019.
22-06-2023 Dr Ulhas Gaikwad 2

3. Introduction
 Nearly two-thirds of farm
households in India are associated
with livestock production, and 80
per cent of them are small
landholders (< 2ha).
22-06-2023 Dr Ulhas Gaikwad 3

4. Introduction
 The livestock, specifically dairying
is a supplementary enterprise to
crop farming and is highly
integrated with crop production.
More than 75 per cent of the
farmers keep 2-3 milch animals for
survival of their livelihoods.
22-06-2023 Dr Ulhas Gaikwad 4

5. Introduction
 The structure of milk production
is largely based on low input and
low-to-moderate output which fits
into the Indian situation. The
farmers’ perception about input
use and its outcome is usually
traditional.
22-06-2023 Dr Ulhas Gaikwad 5

6. Introduction
 Certain regions of the country of
rural population, have taken up
dairying progressively as a means
of full employment.
22-06-2023 Dr Ulhas Gaikwad 6

7. • World milk production during 2018-19 was 843.75 million tonnes
• India ranks first in total milk production in world followed by the
USA, China, Pakistan and Brazil since 1998.
• The milk production of India is 187.7 million tonns (2018-2019).
• India accounting for more than 22.0 per cent of the world and 57
per cent of Asia’s total milk production
• The milk production in India differs region wise. Over 80 % of the
national milk production comes from nine states namely, UP,
PB,RJ, MH, MP, GJ, BH, AP & HR.
Milk production
22-06-2023 Dr Ulhas Gaikwad 7

8. 22-06-2023 Dr Ulhas Gaikwad 8

9. Source:
Basic
Animal
Husbandry
Statistics,
DAHD&F,
GoI
826.75
176.27
97.76
44.29 34.87 33.74
0
100
200
300
400
500
600
700
800
900
1
Milk Production Across Countries 2017-18
World India USA Pakistan China Brazil
22-06-2023 Dr Ulhas Gaikwad 9

10. 22-06-2023 Dr Ulhas Gaikwad 10

11. Source:
Basic
Animal
Husbandry
Statistics,
DAHD&F,
GoI
137.7 146.3 155.5 165.4 176.3
307
322
337
355
375
0
50
100
150
200
250
300
350
400
2013-14 2014-15 2015-16 2016-17 2017-18
Milk production and per capita availability of milk in India
Production (Million Tonnes) Per Capita Availibilty (gms/day)
22-06-2023 Dr Ulhas Gaikwad 11

12. 22-06-2023 Dr Ulhas Gaikwad 12

13. 176347
29052 22427 14713 13569 11855 11102
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
State-wise estimates of Milk Production ('000 tonnes)
Source:
Basic
Animal
Husbandry
Statistics,
DAHD&F,
GoI
22-06-2023 Dr Ulhas Gaikwad 13

14. Cattle
Adult
Female
Cattle
Buffalo
Adult
Female
Buffalo
Total
Bovines
Total
Livestock
1951 155.3 54.4 43.4 21 198.7 292.9
2007 199.1 73 105.3 54.5 304.4 529.7
2012 190.9 76.7 108.7 56.6 299.6 512.1
0
100
200
300
400
500
600
LIVESTOCK POPULATION IN INDIA BY SPECIES (MILLION NUMBERS)
Source:
Basic
Animal
Husbandry
Statistics,
DAHD&F,
GoI
22-06-2023 Dr Ulhas Gaikwad 14

15. 7.5 7.6
16.4
13
9.2
-4.1
3.2
-9.1
-3.8 -3.3
-15
-10
-5
0
5
10
15
20
Cattle BUFFALOES Sheep GoatS Total Livestock
Change in Livestock Population by Species during 2007 to 2012
(%)
2003-07 2007-12
Source:
Basic
Animal
Husbandry
Statistics,
DAHD&F,
GoI
22-06-2023 Dr Ulhas Gaikwad 15

16. 27.4
32.9
16.4
12.9
8.1
2.2
31.94
47.1
11.2
6.2
2.9
0.5
0 5 10 15 20 25 30 35 40 45 50
Landless (Lessthan or equal to 0.002 ha)
Marginal (0.002 - 1 ha)
Small (1.01 to 2 ha)
Semi-medium (2.01 to 4 ha)
Medium (4.01 to 10 ha)
Large (> 10 ha)
Percentage distribution of household operational holdings
2002-03 (59th Round) 1971-72 (26th Round)
Source:
Basic
Animal
Husbandry
Statistics,
DAHD&F,
GoI
22-06-2023 Dr Ulhas Gaikwad 16

17. 18.2 18.6 18.2 17.7 17.9
4 4.1 4.4 4.6 4.6
0
2
4
6
8
10
12
14
16
18
20
2012-13 2013-14 2014-15 2015-16 2016-17
Share of Agriculture & Livestock Sector in GDP
% Agri. & allied Sector % Livestock sector
Source:
Basic
Animal
Husbandry
Statistics,
DAHD&F,
GoI
22-06-2023 Dr Ulhas Gaikwad 17

18. 73070
12659
7437 7026 6672 4386 4231 3986 3937 3857 2690 2306
0
10000
20000
30000
40000
50000
60000
70000
80000
State-wise Artificial Inseminations* Performed ('000 Nos.)
* AI done by only Govt agencies
Source:
Basic
Animal
Husbandry
Statistics,
DAHD&F,
GoI
22-06-2023 Dr Ulhas Gaikwad 18

19. Milk productivity
• Productivity of wet (lactating) animals in our country is
very low
• Indigenous cow breed yields : 3.41 L milk/ day.
• Crossbred cow yields : 7.33 L milk/ day.
• Indigenous Buffalo breed yields : 5.76 L milk/ day.
22-06-2023 Dr Ulhas Gaikwad 19

20. Milk productivity
• Average Milk productivity of animals in various states of
India.
• Punjab and Kerala : 9.5 L /animal /day.
• Haryana : 6.1 L/animal /day.
• Maharashtra : 2.2 L/ animal /day.
• National : 3.6 L/ animal/day.
22-06-2023 Dr Ulhas Gaikwad 20

21. Milk productivity
• Milk productivity of cattle in developed countries.
1. USA : 9650 kg/year.
2. Canada : 8600 kg/year
3. Sweden : 8100 kg/year
4. Finland : 8000 kg/year
5. Netherland : 7600 kg/year
22-06-2023 Dr Ulhas Gaikwad 21

22. Liquid Milk consumption pattern:
 World average: 229 g/day and per capita availability of milk in
India is 355 g /day (2016-2017) as against ICMR
recommendation 280 gm/ day
 The per capita milk consumption in the north regions is higher
followed by in west, south and east region of country.
 The per capita milk consumption in USA: 748 gm/ day.
 India ranks 73rd position in the world regarding the per capita
availability of milk.
22-06-2023 Dr Ulhas Gaikwad 22

23. Milk and milk product utilization pattern
Liquid Milk 46 %
Ghee /Butter 33 %
Curd/ Dahi (Shrikhand, Lassietc) 7 %
Khoa (Pedha, Burfi, Gulabjamun) 7 %
Chhana/ Paneer (Rasogolla) 3 %
Western Product (Powder, Cheese etc) 4 %
• Cheese production is growing at 15% per annum
• Ice-cream production is growing at 15 % per annum
22-06-2023 Dr Ulhas Gaikwad 23

24. Milk Handling or User Pattern
 Household Sector (45%): Used milk for drinking, for conversion into
milk products such as curd, ghee, makhan/butter
 Non-organized Sector (37%): Meeting the urban demand for liquid
milk, production of mithais (sweets) and other traditional products
 Organized Sector (18%): Processing of milk into pasteurized liquid
milk and manufacture of Indigenous and Western milk products
 The first two user segments account for 80 to 82 per cent of milk
consumed in India.
22-06-2023 Dr Ulhas Gaikwad 24

25. Milk Marketing Scenario (Market share)
 Unorganised : 60-64 %
 Organised: Co-operatives : 27-30 %
 Private : 9-10 %
 Maharashtra
 Co-ops : 35 %
 Pvt. (organised) : 18 %
 Loose : 47 %
22-06-2023 Dr Ulhas Gaikwad 25

26. Milk Processing Facility in India
 In spite of being the world’s largest milk producer, only 12
to 15 % of the milk is delivered to the dairies for
processing as against the world average of 70 %
 Current processing capacity more than is 100 Million
lit/day
 Capacity Utilization - 65-68 %
22-06-2023 Dr Ulhas Gaikwad 26

27. Milk Processing Facility in India
 In spite of being the world’s largest milk producer, only 12
to 15 % of the milk is delivered to the dairies for
processing as against the world average of 70 %
 Current processing capacity more than is 100 Million
lit/day
 Capacity Utilization - 65-68 %
22-06-2023 Dr Ulhas Gaikwad 27

28. Dairy Co-operatives in milk industry
 Primary Village Societies (1.22 lakhs number) eg. Ambewadi
village co-operative society.
 District/Tehsil Processing Unions (198 number) e.g. Kolhapur
Zilla co-operative milk union (Gokul), Jalgaon Zilla co operative
milk union (Vikas).
 State Milk Federations (23 snumber) eg. Maharashtra
cooperative milk marketing federation (CMMF)-(Mahanand).
Karnataka CMMF- (Nandini), Andhra Pradesh CMMF (Vijaya),
22-06-2023 Dr Ulhas Gaikwad 28

29. Share in Indian economy and growth rate
• Share of agriculture in GDP : 16-17%
• Share of livestock sector in Agril. GDP : 27%
• Share of livestock sector in GDP : 5 %
• Share of milk industry in livestock sector in GDP : 70%
• Growth rate of Indian economy : 6 %
• Growth rate of Indian agriculture : 2%
22-06-2023 Dr Ulhas Gaikwad 29

30. Share in Indian economy and growth rate
• Growth rate of milk production in India is 6.28% during
the year 2016.
• Growth rate of crossbreed cow milk production is 7 %,
buffalo 4 % and indigenous cow 1.8 %.
22-06-2023 Dr Ulhas Gaikwad 30

31. Dairy market
 India exhibits an age old tradition of drinking milk. 89% of
households in India consume loose milk whereas only 9%
households use packaged milk.
 The acceptance of packaged milk is high in Maharashtra,
Kerala, West Bengal, Gujarat and Karnataka. ’
 It is always profitable to market the liquid milk in place of
convert in to milk products.
22-06-2023 Dr Ulhas Gaikwad 31

32. Import and Export of Dairy Products
 Country’s export started initially with a meager amount in
Nineties. India exports of dairy products was 39,397.62 MT to
the world for the worth of Rs. 910.44 crores during; the year
2016¬2017.
 At present India exports: Milk powder, Butter, Butter oil,
Cheese.
 We also export traditional dairy products like shrikhand,
gulabjamun, rasogolla, etc.
22-06-2023 Dr Ulhas Gaikwad 32

33. Import and Export of Dairy Products
 We import skim milk powder, butter oil.
 Share in world trade market of dairy is only 0.6 %
 Major importers of India’s milk and milk products arc
Bangladesh, China, Singapore, Thailand, Malaysia,
Philippines, Butan, Nepa , Japan, UAE, Oman and other Gulf
countries
22-06-2023 Dr Ulhas Gaikwad 33

34. Employment Generation
 India faces the challenges of providing 200 million new
employment opportunities over the next two decades.
Undoubtedly, the dairy industry today offers the great
potential for job creation. Some facts in these respects are:
 Nearly 5,65,000 employment is created in about 1.13 lakh
villages
22-06-2023 Dr Ulhas Gaikwad 34

35. Employment Generation
 Estimated employment in animal husbandry sector is 11.44
million in principal status and 11.01 million in subsidiary
status
 Self-employment to rural people, especially to the landless
and widows
 Dairy farming provides regular and remunerative payment
22-06-2023 Dr Ulhas Gaikwad 35

36. Challenges ahead of dairy industry
 Lack of proper packaging and labeling system of milk and
milk products.
 Market Intelligence to understand the mind set of
entrepreneurs.
 Distribution network is not organised.
22-06-2023 Dr Ulhas Gaikwad 36

37. Challenges ahead of dairy industry
 Consumer perception/Brand Building is also a major
challenge.
 Cold chain (transportation) and storage facilities is not
effectively in operation.
 Inadequacy of quality raw material for large scale
production
22-06-2023 Dr Ulhas Gaikwad 37

38. Way forward of dairy industry
 New products should be develop in response to consumer
preference.
 Need to improve shelf life and packaging of product.
 Consolidation of distribution and retail net work.
 Establishment of high tech cold chain parlors.
 Establishment of mechanized vending machines for milk
derivatives at strategic points.
22-06-2023 Dr Ulhas Gaikwad 38

39. Market for Indigenous products
 Projected domestic demand for major traditional products:
250,000 tonnes.
 Some 25 million Indians living abroad are in upper income
group.
 In North America alone, this market is estimated at US
$500 million.
22-06-2023 Dr Ulhas Gaikwad 39

40. Market for Indigenous products
 A large variety of Indian Dairy Products are sold in the
super markets in North America, UK and South Africa
produced by small scale entrepreneurs.
 A Canadian firm, IDP Foods, Inc. is the largest producer of
Indian Dairy Products.
 Australians are also looking into the prospects of making
them
22-06-2023 Dr Ulhas Gaikwad 40

41. New dairy products in market
 Probiotic Ice cream (Amul),
 Set curd,
 Good and long life UHT milk,
 Mastidahi,
 Flavoured Milk (Amul cool)
 Chhas
 shrikhand (pasteurized),
 low lactose milk,
 Drinking yoghurt,
 Ready to reconstitute
basundi, kheer, rasmali,
payyasam etc.
22-06-2023 Dr Ulhas Gaikwad 41

42. Leading Institutes related to dairy education
and industry
 National Dairy Research Institute, Karnal, Sub centre at
Banglore and Kalayani (WB)
 National Dairy Development Board, Anand
 National Cooperative Dairy Federation of India, Anand
 SMC College of Dairy Science, Anand
 Central Food Technological and Research Institute, Mysore,
 Indian Dairy Diploma at Mumbai and Allahabad
22-06-2023 Dr Ulhas Gaikwad 42

43. Leading Dairy plant and brands in country
 The co-operative sector over the years has created many
successful brands
 Gujarat Co-operative Milk Marketing Federation (GCMMF)
 Anand Milk union limited (AMUL) is the brand name of GCMMF
 Mahanand, Gokul, Warana etc., in Maharashtra,
 J K Dairy, Heritage Foods, Amrut Industries, Nestle Food
products, Shyadri agro products Ltd. (Dynamics) Baramati (MS),
Haldiram and KC Das
22-06-2023 Dr Ulhas Gaikwad 43

44. 22-06-2023 Dr Ulhas Gaikwad 44

45. 22-06-2023 Dr Ulhas Gaikwad 45

46. 22-06-2023 Dr Ulhas Gaikwad 46

47. 22-06-2023 Dr Ulhas Gaikwad 47

48. 22-06-2023 Dr Ulhas Gaikwad 48

49. 22-06-2023 Dr Ulhas Gaikwad 49

50. 22-06-2023 Dr Ulhas Gaikwad 50

51. 22-06-2023 Dr Ulhas Gaikwad 51

52. 22-06-2023 Dr Ulhas Gaikwad 52

53. 22-06-2023 Dr Ulhas Gaikwad 53

54. Thank you
22-06-2023 Dr Ulhas Gaikwad 54