Tuesday, May 24, 2011

CHALLENGES FOR INDIAN DAIRY INDUSTRY

India is the largest milk producing country in the world. It has come a long way from producing merely 17 million tonnes of milk in 1950-51 to producing 104.8 million tonnes in 2007-08. The per capita availability of milk during the same period has increased from 124 grams to 252 grams per day despite its increasing population. While the present availability is more than ICMR recommendation (220 g), it is still less than WHO recommendation (283 g), world average (285 g) and the relative availability in a large number of other countries. The total milk production in the country consists of about 41.5 per cent cow milk, 54.5 per cent buffalo milk and 4 per cent goat milk. Most of the milk producers in the country belong to the categories of small and marginal farmers, and landless households. The milk is produced from a large number of low yielding animals fed largely on crop residues and common grazing lands.
The total value of the milk economy of India is estimated at Rs. 13,000 billion. Much of the Indian Dairy industry is under unorganized sector and is dominated by traditional dairy products. Only about 13 per cent of the total milk produced is processed by the organized sector. Dairy cooperatives (brands like Amul, Vijaya, Verka, Saras, Nandini, Parag, Milma and Gokul) account for a major share of the organized dairy sector. Other important firms in the organized dairy sector include Nestle, Britannia, Dynamix, SmithKline Beecham, Heinz, Indiana, Jagatjit Industries and Dabur. Many foreign players have recently entered the Indian dairy industry on their own or in the form of joint ventures.
India was a consistent net importer of dairy products in value terms during 1961 to
1993. Its position oscillated between being a net importer and a net exporter during
1994 to 2000. It has been a consistent net exporter of dairy products thereafter.
However, its share in total world exports of dairy products has remained less than
one per cent.
Some of the important challenges faced by Indian dairy industry may be identified as follows: (1) organizing milk producers under cooperatives, (2) provision of
veterinary services, feeds and fodders in a cost effective manner, (3) promoting hygienic practices of milk production, (4) increasing milk production and per capita availability, (5) producing and marketing high volumes of dairy products with low
margins, (6) meeting international standards and increasing exports, (7) tackling the menace of production of artfficial milk, (8) promoting sheep, goat and camel milk,
(9) commercial production of traditional products, (10) innovating product varieties, (11) feedback towards appropriate government policies, and (12) reducing adverse environmental impacts of dairying.

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