Date post: | 07-Apr-2018 |
Category: |
Documents |
Upload: | mohammad-ashraf-paul |
View: | 217 times |
Download: | 0 times |
of 38
8/4/2019 1. Milk Industry in India
1/38
Milk industry InIndia
Mohammad Ashraf PalProf/chief scientistDivision of LPT,FVSc & AH
8/4/2019 1. Milk Industry in India
2/38
India ranks first in milk production with total
volume of 115 million tons.Driven by steady population growth and
rising income, milk consumption continues torise in India.
World milk production declined by 2 percent in the last three years, according to FAOestimates, Indian production has increasedby 4 per cent. The milk production in Indiaaccounts for more than 13% of the totalworld output and 57% of total Asia'sproduction. The top five milk producingnations in the world are India ,USA, Russia,Germany and France
8/4/2019 1. Milk Industry in India
3/38
Rural households consume almost 50percent of total milk production.
The remaining 50 percent is sold in thedomestic market.Of the share of milk sold in the domestic
market, almost 50 percent is consumed in
fluid form, 35 percent is consumed astraditional products (cheese, yoghurt andmilk based sweets), and 15 percent isconsumed for the production of butter, ghee,
milk powder and other processed dairyproducts (including baby foods, ice cream,whey powder, casein, and milk albumin).
8/4/2019 1. Milk Industry in India
4/38
Most dairy products are consumed in thefresh form and only a small quantity isprocessed for value addition.In recent years, however, the market for
branded processed food products hasexpanded. Although only around 2 per cent food isprocessed in India, still the highest
processing happens in the dairy sector,where 50 per cent of the total produce isprocessed, of which only 13 per cent isprocessed by the organised sector.
8/4/2019 1. Milk Industry in India
5/38
Historical DevelopmentsPre-Independence Period
Ancient India - Era of plentyGolden sparrow was plucked feather byfeather & era of plenty waned graduallyForeign rule-Britishers- deterioration.1891-population dependent on agriculture-61%1950----------------------------------75%
Agricultural production 24% [1901-1941]It took four decades to usher into era of
green revolution to mitigate deterioration
8/4/2019 1. Milk Industry in India
6/38
Organized dairying started in a small waywith the establishment of military dairy
farms & creameries-oldest at Allahbad(1918)
Some private dairies [M/S Keventers,
Polson's]encouraged to process milk primarily for
British Army
Imperial Institute of AH&D-1923 atBangalore to impart training to acquirecompetence in the operation of modern dairyplant.
8/4/2019 1. Milk Industry in India
7/38
Post-independence period
At partition [1947 ] India was said to be leftwith a small number of milch animals
Best milch animals rested with westernPunjab (Pakistan)
5- year developmental programmes(schemes)
1-4th KVS-covered 729 villages
3-6th ICDP-covered 122 districts .
8/4/2019 1. Milk Industry in India
8/38
Task was uphill-as millions of C&B had to be reached
Adequate qualified manpower and valid statistics was
not available . Upon evaluation of KVS & ICDP-results were suggestive
of failure.Reasons:KVS implementation in small & scattered areas Covered an inadequate population Inefficient technical inputs Lack of marketing facilities
ICDP Half of the projects were non-starters In others progress of activity was variable because of
non implementation of detailed model planned at thebeginning.
Projects undertaken without proper survey.
8/4/2019 1. Milk Industry in India
9/38
Programme content got diluted due to frequentfinancial cuts.Contact with beneficiaries was at para vet.levelLack of integration with fodder development andmilk marketing agencies
The milk sub-committee of standing parliamentary
committee on Agriculture [1950] recommendedmonopolization of milk supply and distributionthrough milk control boards city milk supplyschemes-evolvedDairy Plants Set up in metros-processing ~200,000lpd.supported by large milk colonies around
But failed because :Farmers preferred to sell milk directly toconsumers who paid comparatively more than MSS
8/4/2019 1. Milk Industry in India
10/38
Govt took strict measures against cattle owners
They decided to quit the colony
Started settling in cities
Cost of milk production
Quality animals ended up in slaughter houses
Genetic decimation of good quality milk animals
Small diary plants ( 10,000-20000 lpd) established
8/4/2019 1. Milk Industry in India
11/38
Number rose to ~100;1960
Did not Succeed Because:
Source of milk was variable
Traders sold milk directly to consumers andgave to schemes only in glut
During lean supply would stop or priceswould rise
MSS could not increase the price of milk
Rationing and utilization foreign SMP & BO
8/4/2019 1. Milk Industry in India
12/38
Reconstituted/recombined milk supply Primary producer discouraged as they did
not get the remunerative prices. Low financial returns lack of proper feeding and management Reduced milk yield Anti dairy cycle
8/4/2019 1. Milk Industry in India
13/38
During the first 25 years of independencemilk production Increased insignificantly(17-21 MMT; 1951-1970)
Rate of population growth highercompared to milk productionper capita availability 133g to 107 g/day from1951-1970
Kaira Dist of Gujarat-struggle againstexploitation by traders/middlemeneg.Polson dairies etc.Rationale-remunerative prices were not
paidFarmers organized themselves into co-operativesBeginning of KDCMPU--- Famous AMUL
brand of dairy products.
8/4/2019 1. Milk Industry in India
14/38
Anand pattern cooperative Concept
Village Cooperative Society
(Primary Producer basic member)
Elect 9- member management committee with achairman amongst them
[ Collection, testing, payment ]
Confederate District level milk union (Storage)
Unite to form state level milk federation[ procure, transport, process & market]
Profits earned ploughed back to farmers as bonuspayment
Farmers encouraged to Keep more animals, providebetter management
Increased milk production
8/4/2019 1. Milk Industry in India
15/38
Significant to note that compared to
other places in India ICDP succeeded in
KairaSalient indicators of success:Small holding viableMonthly income
Productivity Age at first calving Intercalving period Per capita milk availability Partial employment to youth & women
8/4/2019 1. Milk Industry in India
16/38
Operation Flood
The transition of the Indian milk industry from a situation of net importto that of surplus has been led by theefforts of NDDBs Operation Floodprogramme under the aegis of theformer Chairman of the board Dr.
Kurien.L B Shastri visited Gujarat (Oct. 1964)Spent a night in one of the villages inKaira to see for himself the silentrevolution being brought about by Milk Coop. Movement & concluded:Cooperatives were the onlymechanism that could cause Socio-economic emancipation & improve the
Land-Animal Productivity
8/4/2019 1. Milk Industry in India
17/38
Creation of NDDB (1965 )-twin objectives:Study the concepts, implementation,
strengths and weakness of the projectsimplemented in the pastEffective utilization of the EEC aid
OF-I (1970-81)SMP- 126,000 MTBO- 42,000 MT
Fund generated- Rs.116.40 croresused for the development of 27 ruralmilk sheds in 10 states.
8/4/2019 1. Milk Industry in India
18/38
OF II- (1981-86)
NMG instituted-linking 136 rural milk sheds in 22 states & UT
World Bank credit-$ 150 mSMP-218000 mt
BO - 76000 mt
8/4/2019 1. Milk Industry in India
19/38
OF III-(1987-1995) Aimed at consolidation of earlier gains
WB credit loan- $ 360mSMP 75000 MTBO 25000 MT
Fund generated- Rs. 227.7 crores206.3 crores by NDDBcovered 170 milk sheds
Organizing 70,000 primary dairy coop.Societies
8/4/2019 1. Milk Industry in India
20/38
Technology Mission
KVS,ICDP,MSS Failed - Lack of integration Co-op integrated vertically- increased
production TM instituted primarily to encourage
integration between variousagencies/Deptt. In the state
Objectives:~Search ,identify, adapt & apply Technology
in various fields for increased production
~ Mission identified the gaps likefunctional,educational,infrastructural,legislative, trainings etc.
~Provide bridge funds to obtain desiredresults
8/4/2019 1. Milk Industry in India
21/38
WTOEconomic Liberalization Era
~ Delicencing(1991)~ MMPO (1992)~ Subsidies/Export incentives to western &
American Farmers~ Difficulties for Indian Exporters in the
international market
8/4/2019 1. Milk Industry in India
22/38
R&D A Spate of Programs during Last 6
decades~Cross breeding~ETT/MOET~Frozen semen Technology~AICRP-To evolve a breed suitable to
local conditions/tracts~Bilateral assistance programs
IS,ID,INZ,IA~Nandini(Kerala) Stabilized local breed
through use of frozen semen and fielddata for improvement
~Karan-Swiss & Karan Fries-NDRI
8/4/2019 1. Milk Industry in India
23/38
Constraints & future policy1.Low productivity: 80% cattle & 60%
buffaloNon-descript low milk yield
2. Very large number ruminantsconstitute a sizable proportion of totalLivestock load
3. Feed/ fodder scarcity: Consume 90% of the already scarce feed and fodderresources
4. Animal health problem:~Many diseases claimed to have been
eradicated/controlled are still rampantin India~Recurrent devastating epidemics
hamper livestock production
8/4/2019 1. Milk Industry in India
24/38
~ Animal losses Increased + denying India'saccess to lucrative global market
5. Free vet-services: over-whelming involvementof Govt. In delivering free services compromised quality and accountability
~improvement needed on the lines of livestock
Dev.Board, kerala- AI paid +field data utilizedfor improvement6. Breeding at random:~use of unselected bulls for AI no genetic
progress~ Poor quality services with
8/4/2019 1. Milk Industry in India
25/38
7. Demand for high yielding animals near bigcities Negative selection pressure on sps.
Perish after current lactation
genetic drain
best genotypes destroyed8.Absence of a well conceived Extension
support system in the livestock sector hasseriously undermined the pace of development in the sector under different 5- year plans. This needs to be viewedSeriously.
9. Socio- cultural compulsion Negativeinfluence
8/4/2019 1. Milk Industry in India
26/38
No culling of unproductive adult cattleLarge numbers lingering in the pop n , 30%
not fit for breedingReforms needed to permit alternate use of males & unproductive females.Relentless growth of cattle population farbeyond land capacity can be a majorcause of environmental degradation.Well focussed policy attention is needed
for optimum exploitation of potential for
enhanced milk production, livelihoodgeneration and poverty alleviation.Projected Demand growth @ 7% p.agrowth rate @ 4.5%
(1990),5.7%(1997)
8/4/2019 1. Milk Industry in India
27/38
Salient features:1 Failure of crossbreeding programmers to evolve
a breed suitable to the local conditions/ tracts
ETT-failed to make an impact-calves tofarmers not available at affordable prices .
Uncontrolled growth in animal number
Progressively depleting common propertyresources.
Grossly inadequate feed and fodder resources.
Farming practices unfriendly to theenvironment
Demand Growth Rate@ 7% Vs milk production rate @ 4.5%
N ti l P j t F C ttl & B ff l B di g
8/4/2019 1. Milk Industry in India
28/38
National Project For Cattle & Buffalo Breeding(NPCBB,2000)
Two phases of five years each with an allocation of 400 crores for the first phase for geneticupgradation of C&B
OBJECTIVES:Improved AI services at farmers doorsteps
Organized breeding of all breedable femaleanimals using high quality semen/bullsImprovement of genetic quality of indigenousC&B
Prevention of breed deterioration & extinction of Important indigenous breeds
8/4/2019 1. Milk Industry in India
29/38
Year Grams per day
2000-01 2202005-06 2412008-09 250
Per capita availability of milk
Source: Department of Animal Husbandry and dairying
8/4/2019 1. Milk Industry in India
30/38
Dairy StatisticsParticulars J&K India (millions)
Cattle Pop n 3,084,000 185.18
Buffalo Pop n 1,039,000 97.92
Total Pop n 4,123,000 283.1
Milk Production(MT)
1.51 115
PCA(g/day)363 250
8/4/2019 1. Milk Industry in India
31/38
Strength WeaknessLargest milk producerin the world
A huge base of around11 million farmersTraditional emphasis onconsumption
Poor feeding practices
Poor access toinstitutional creditLack of cold storagefacilities
Opportunity ThreatElastic demand; economicgrowth will spur demandIncreasing preference for
branded dairy productsGrowing focus on healthand nutrients in urbanmarket
Nearly 80 per cent of theIndian dairy industry isunorganized
Removal of import dutyhas led to the threat of dumping
SWOT Analysis
E gi g D i M k t
8/4/2019 1. Milk Industry in India
32/38
Emerging Dairy MarketsFood service institutional market: It is growingat double the rate of consumer marketDefense market: An important growing marketfor quality products at reasonable pricesIngredients market: A boom is forecast in themarket of dairy products used as raw material inpharmaceutical and allied industries
Parlour market: The increasing away-from-home consumption trend opens new vistas forready-to-serve dairy products which would takecredit on the fast food revolution sweeping theurban India.
Major dairy products manufacturers
8/4/2019 1. Milk Industry in India
33/38
Company Brands Major Products
Nestle IndiaLimited
Milkmaid,Cerelac, Lactogen,Milo, Everyday
Sweetened condensed milk, maltedfoods, milk powder and Dairy whitener
Milkfood Limited Milkfood Ghee, ice cream, and other milk products
SmithKlineBeecham Limited
Horlicks, Maltova, Viva Malted Milkfood, ghee, butter,powdered milk, milk fluid and other
milk based baby foods.Indodan
IndustriesLimited
Indana Condensed milk, skimmed milk powder,whole milk powder, dairy milk
whitener, chilled and processed milk Gujarat Co-
operative milkMarketing
FederationLimited
Amul Butter, cheese and other milk products
H.J. HeinzLimited
Farex, Complan, Glactose,Bonniemix, Vitamilk
Infant Milkfood, malted Milkfood
Britannia Milkman Flavoured milk, cheese, Milk Powder,Ghee
Cadbury Bournvita Malted food
Major dairy products manufacturers
8/4/2019 1. Milk Industry in India
34/38
Main Players
Milk products - Amul, Britannia, Vijaya, Verka and Vadilal
Cheese products- Amul, Britannia, Dabur (Le Bon)are the leading players. Other prominent players
include Verka, Nandini, Vijaya and Vadilal
Dairy Whiteners - Nestle, Amul, Britannia,Dynamix Diary, Sterling Agro, Haryana Milk Foods,Mohan Food, Modern Dairy, K Dairy
8/4/2019 1. Milk Industry in India
35/38
Success
factors
Concerns Demand
drivers
Liquid milk SourcingDistribution
Financialdistress of co-
operatives
Packaging insmaller units
Packagedmilk
Technology Small marketsize
ConvenienceHealthconcerns
Milk products BrandingRefrigeration Inadequateinfrastructure Increase inper capitaincome
Infant milk EducationMarketing
Poorpenetration
Changingfood habits
Critical issues
8/4/2019 1. Milk Industry in India
36/38
Regulatory changes
Dairy sector was de-licensed in 1991
No industrial license is required for dairy industryForeign equity participation permitted to theextent of 51 per cent in dairy processing sectorExcise duty on dairy machinery has been fullywaived off
Key legislations:
Milk and Milk Products Order 1992: Withfollowing controls
Collection areas/milk sheds specified Processing capacity fixedRevised MMPO in 2002: Controls stand
withdrawn
8/4/2019 1. Milk Industry in India
37/38
The production, distribution and supply of milk products are controlled by the Milk and Milk
Products Order, 1992.The order sets sanitary requirements for dairies,machinery, and premises, and includes qualitycontrol, certification, packing, marking andlabeling standards for milk and milk products.
The Infant Milk Substitutes, Feeding Bottles andInfant Foods (Regulation of Production, Supplyand Distribution) Act, 1992 and Rules 1993
8/4/2019 1. Milk Industry in India
38/38
Thank You