Current Status of Milk Industry In India With

SWOT Analysis

Submitted ByRadhakrishna SahuM-5643

Image Source: Annual Report NDDB (2014-15)

Part-1: Current status of Milk Industry

Milk Production India • Milk production (2014-15): 143.6 million tonnes (Source: NDDB)• 2015 recording an output of 160 million tonnes

• India ranks first• World’s 18.5% milk production (The Economic Survey 2015-16 )• 6.26% growth (India) vs 3.1% growth (World) (Source: Press Information

Bureau, Government of India, Ministry of Finance)• World milk production 805 million tonnes(2015) (Source:NDDB)• Per-capita availability- 322 gms/day (Varies from 980gms/day in Punjab to

10gms/day in Daman & Diu) (Source: NDDB)• Recommended: 250gms/day (ICMR)• Government is striving to expand it 180-200 million tonnes by FY22 (source:

Economic times)

http://economictimes.indiatimes.com/articleshow/52397522.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

1991-92

1993-94

1995-96

1997-98

1999-2000

2001-02

2003-04

2005-06

2007-08

2010-11

2012-13

2014-150

20406080

100120140160180

Milk Production (1991-2015)

Milk

pro

ducti

on in

mill

ion

tonn

es

Source: NDDB

1991-92

1993-94

1995-96

1997-98

1999-2000

2001-02

2003-04

2005-06

2007-08

2009-10

2011-12

2013-140

50

100

150

200

250

300

350

(Year)

Per c

apita

cons

umpti

on (g

ms/

day)

9656

46

8297775

67

11691

7901

1172

1951

6121

2711

10779

9542

8283

20

76

1903

10351

16934

50

7132

141

25198

4961

16 (A&N

island44 (Chandigarh)

9 (Dadra nagar haveli)

1 (Daman & Diu)

280 (Delhi)

4 (Lakshadweep) 48 (Pondicherry)

Milk production by each state during 2014-15)In 000 tonnes Source: NDDB

4207

1164

1679

Livestock Population India

• Cattle: 199.9 million (Adult female cow: 76.7 million)

• Buffalo: 108.7 million (Adult female buffalo: 56.6)

• Buffaloes contribute more than half of the total milk (72 MT out of 137.7MT) (2013 The Hindu)

• Sheep: 65.1 million• Goat: 135.2 million

Source: NDDB in the year 2012

Import and Export and fluctations in the industry•Imports of milk & milk products increased•Exports declined by 56 per cent. (2013-14 1.38 lakh tonnes to 0.36 lakh tonnes•Average price SMP 213 per kg in march 2015 (297Per kg in april 2014) `•Since april-may 2014 milk price decreased by Rs. 10/l•Northern india for buffalo milk- 29-30/l (from 39-40/l)

http://indianexpress.com/

http://indianexpress.com/

Source: NDDB

Dairy Companies in India

• Government organizations :under different state governments (generally cooperatives)

• And private companies• Working together with the

national dairy development board (NDDB)

List of Top Dairy Milk Companies in India

1 Aravind Milkfoods Pvt Ltd, Tamilnadu

2 Choco~a`la Carte, Mumbai, Maharashtra

3 Dynamix Dairy Industries Ltd,Pune, Maharastra

4 Param Dairy Limited, Gr. Noida (U.P.)

5 Heritage Foods (India) Ltd, Visakhapatnam,AP

6 Kream Kountry, Delhi

7 Mahaan Foods, New Delhi

8 Dhruv Makhan (India) Limited, Gujarat

13 Gits Food Products Pvt. Ltd., Pune, Maharastra

14 Pastonji Ice Cream, Mumbai

15 Haryana Dairy Dev. Ltd.

17 Amul and Gujarat Coop.

18 A.P Dairy Dev. Coop. Fed. Ltd.

19 Orissa State Coop. Milk Ltd.

http://www.aravindmilkfoods.com/

http://www.chocoalacarte.com/

http://www.schreiberdynamixdairy.com/

http://www.paramdairy.com/

http://www.heritagefoods.in/

http://www.kdil.in/

http://www.mahaanfoods.com/

9 VRS Foods, New Delhi

10 Mother Dairy, U.P.

11 Lactose (India) Ltd., Gujarat

12 Modern Dairies Limited, Karnal, Haryana

http://www.parasdairy.com/

http://www.motherdairy.com/

http://www.lactoseindialimited.com/

http://www.milkplus.com/

http://www.gitsfood.com/

http://www.pastonjiicecream.com/

http://www.vitaindia.org.in/

http://www.amul.com/

http://www.apddcf.gov.in/

http://omfed.com/

Organised sector 25-28 million tonnes(18-20 per cent) (THE HINDU: October 27 2015)

Dairy Coopeative• National cooperative dairy federation of

india (NCDFI, Anand): apex institute• NCDFI emarket launched on june 10,

2015 • Electronic marketplace (efficient buying

and selling of dairy/agri products)• Sells dairy product: butter, SMP, ghee• 13.9 MT of milk collected by dairy

cooperati (increase of 11.1% to 2013-14)• Total membership-15.4 million milk

producers• Liquid milk marketing of the

cooperatives: 11.7MT (increase of 6.1% to 2013-14)

http://www.indiadairy.coop/

http://www.ncdfiemarket.com/

http://www.ncdfiemarket.com/

Source: NDDB Annual Report

Source: NDDB Annual Report

Registered Dairy Brands in NCDFI e-Market•KMF (Karnataka)•AAVIN (Tamilnadu)•SARAS (Rajasthan)•SUDHA (Bihar)•VERKA (Punjab)•VITA (Haryana)•AMUL (Gujarat)•MAAHI (Gujarat)•VIJAY (AP)•WARNA (Maharastra)•DEVBHOG (Chattishgarh)•Mother Dairy•GOKUL (Kolhapur, Maharastra)•VIKAS (Jalgaon,Maharastra)

ncdfiemarket.com

Total number of dairy cooperative (Source: NDDB Annual Report 2014-15

Schemes & Projects in Dairy Industry• Dairy Entrepreneurship Development Scheme 2010-2011 to

2015-2016)• Rashtriya Gokul Mission (2014-2015 and 2015-2016)• National Programme for Bovine Breeding and Dairy Development

(NPBBDD) (2014-15)• Dairy Venture Capital Fund (DVCF) (Dec. 2004)• Assistance to Cooperatives Scheme (2009-10 to 2014-15)• National Programme of Dairy Development (NPDD)• Intensive Dairy Development Programme (IDDP)• Strengthening Infrastructure for Quality & Clean Milk Production• Dairy plus scheme• Centrally Sponsored Fodder and Feed Development Scheme• National Dairy Project-1 (NDP-1)

https://www.nabard.org

http://dahd.nic.in/

http://dairyknowledge.in/http://dahd.nic.in/

data.gov.in

http://dahd.nic.in/

http://dahd.nic.in/

http://dahd.nic.in/www.sbi.co.in

https://www.nabard.org

Part 2: SWOT Analysis of dairy industry

"Failure is never final, and success never ending”. Dr Kurien

1. Strength• Employment to rural population

mainly women• Crop residues and agricultural

by-product feeding(low input)• App. To the mixed farming• Buffalo (india’s milking machine)• Cooperative dairying (greater

milk production)• Highly trained and qualified

technical manpower • Large number of small and

marginal farmers (80% of production)

• NCDFI emarket• Large variety of milk products

•Vast livestock population•Increased surplus of milk•Purchasing power is increasing•Milk consumption regular part of the diet•Large number of dairy plants (678 as on march 31, 2004)

• Effective marketing channel•High demand profile(155 by 2016-17)•Reasonable margins•Banning of chinese milk products•Variety of quality products•High per capita consumption•Increase demand for milk products (e.G. Ice cream- growing @30% (R S sodhi, managing director of gujarat co-operative milk marketing federation)

Swot Analysis of Dairy Industry in India , International journal of

scintific research

October 27, 2015, The Hindu

NDDB

The Hindu: It will be a Cream Run for dairy industry for next 3 years: Crisil

2. Weakness• Mostly by low yielding animals• Poor condition of roads and power• Cold chain lacking• Unaware about scientific dairy

farming, clean milk production• Seasonal fluctuations(drought in

telengana (TOI: 6 apr, 2016)

• Impact assessment studies very less• Perishability of milk & products• Mastitis mostly sub-clinical• Milk borne diseases• Low milk prices • Decreasing export• Global warming: decreasing

production of exotic breed

•Feed availability to cattle inadequate•AI service limited coverage•Industry vs marginal farmers rising•Inadequate health care activities•Limited marketing support (rural milk producers)•Delay in the availability of funds•Poor infrastructure in many areas•70–85% surplus through informal channel (quality concern )•Indigenous breed verge of extinct (the desi cow – almost extinct: tehelka)

•Fall in price of milk & products•Adultrated milk (>68% does not confirm standard) The Economic

Times:27/5/16

3. Oppertunity• Job and self employment• Market size to increase 15.6% in FY16• Milk production forecast 4.6% growth• Improved export potential• Utilization of by-products of the dairy industry• Improving animal health care facilities • Increased awareness in consumers about quality• Increased farmer income by exploiting the high demand. • Scientific approach to clean milk production• Developed diagnostics to detect adultration• Innovations in dairy ingredients and products• NCDFI e-marketing may act as a booster for milk industry

Economic times: India Ratings and Research maintains positive outlook for dairy sector

4. Threat• Milk vendors: disparity in price and quality• Large informal markets: a constraint for marginal farmer• Quality issues: milk, a suitable medium for pathogen to spread• Increase in feed price: decrease the margin of benefit • Excessive grazing: degradation of land• Entry of multinationals : large portion of milk being diverted

towards value added products • Natural calamities• Extinction of indigenous breed due to extensive cross breeding• A1 milk: infants and old age people damages the immune

system ( beta casomorphin-7 (BCM7) metabolite, opiod agonist )• Methane gas (by-products of dairy industry) a green house gas, a

serious threat with increasing livestock population