PRESENTATION ON DAIRY

Presented by:

Sudarshan Kr. Patel

Suhas Zod

PGDMA (2013-15)

FLOW OF PRESENTATION

INTRODUCTION

PRODUCTION

CONSUMPTION

PRODUCT MIX

EXPORT- IMPORT

SUPPLY CHANNEL

MAJOR PLAYERS

POLICIES

INSTITUTIONS

SWOT ANALYSIS

REFERENCES

INTRODUCTION

India accounts about 2.4% of the worlds geographical area.

India has 15% of the livestock of total livestock population in the

world, with 50% buffaloes and 20%of world’s cattle.

Agriculture contributes 14% of the nation’s GDP, about 11% of its

exports.

India is the largest producer of milk in the world (>15% share) with

127.9 mt production in 2012.

Nearly 70% of Indian population depends on dairy directly or

indirectly.

Total GDP share : 3.6% (2011-12)

Growth rate of milk production : 4%

Consumer demand rate : 8%.

TREND OF MILK PRODUCTION WORLD-INDIA

20.8 31.56 53.68 68.36

79.66

95.62 117

391.82

465.66

542.47

547.02

578.88

648

720.98

0

100

200

300

400

500

600

700

800

1960 1970 1980 1990 2000 2010 2020

India

world

Indian milk production growth rate is better than world production rate

Val

ue

in m

t

Years

Milk Production Across Countries

117

87.46

41.14

35.49

32.1431.8229.67

346.26

Year 2010

India

U.S.

China

Pakistan

Russian federation

Brazil

Germany

others

Production in mt

Source-NDDB

16% 15.80%15.30%

15.60%15.20% 15.20% 15.30%

4.00% 3.80% 3.60% 3.70% 3.80% 3.80% 3.60%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

GDP(Agriculture)

GDP(Livestock sector)

Source-NDDB

Share of Agriculture & Livestock sector in GDP

•Livestock sector contributes nearly 25% of the share of agriculture in GDP.

0

20

40

60

80

100

120

140

0

50

100

150

200

250

300

350

Per capita milkavailability(g/day)

Production (mt)

g/day

mt

Trend in milk production & per capita availability -India

Major milk producing states(India)

Source- NDDB

(2011-12)

UP, 22.5, 18%

Rajasthan, 13.51, 11%

Gujrat, 9.81, 8%

Panjab, 9.55, 7%

Maharashtra, 8.46, 7%

M P, 8.14, 6%

Tamilnadu, 6.96, 5%

Haryana, 6.66, 5%

Other, 42.31, 33%

milk production (mt)

364

435

679

446

378

937

538

384

0

100

200

300

400

500

600

700

800

900

1000

Per capita milk availability(g/day) of major states-India (2011-12)

Source-NDDB

g/day

Top major exporting countries in dairy products 2011-12

Source- APEDA

7213

5166

3918 3868 38603560

26202372

20211805

0

1000

2000

3000

4000

5000

6000

7000

8000

Germany Italy Belgium Netherland france UK China Spain Russian

Fed.

Saudi

Arabia

US

$ M

illi

on

Top importers of Indian dairy products 2012-13

Source- APEDA/PTI

41.78

66.44

67.89

69.3

82.84

95.14

99.12

142.82

179.06

259.11

0 50 100 150 200 250 300

Phillipinnes

Pakistan

Iran

Singapur

Yeman

Algeria

Saudi Arabia

UAE

Egypt

Bangladesh

Rs crore

(In Rs crore)

46%

28%

6.00%

7%

6.50%

4%

2% 1%

Fluid milk

Ghee

Butter

Yogurt

Khoa

Milk powder

Paneer

Other

India’s milk product mix 2009.

Source USDA

15%

42%

2%

14%

6%

17%

3% 1%Milk and cream non

concentrated

Milk and cream

concentrated

Whey

Butter and other fats

Chees and curd

casin protein

Lactose and lactose

syrup

India – Dairy product Export

2009

Source - USDA

1%

8%

6%

49%2%

33%

1%

Milk and cream non

concentrated

Milk and cream

concentrated

Whey

Butter and other fats

Chees and curd

Lactose and lactose

syrup

India- Dairy products Import

2009

Source- USDA

Indian Dairy Industry:

Organized (15%)

Unorganized (85%)

Private Dairies

Cooperatives Societies

Government

Structure of dairy industry in India

KEY INDIAN PLAYERS OF DAIRY

Local dairy co-operatives State

Amul Gujrat

Warana Maharashtra

Verka Punjab

Vijaya Andhra Pradesh

Aavin Tamil Nada

MILMA Kerala

Saras Rajasthan

Parag Uttar Pradesh

LOCAL DAIRY COOPERATIVES

The packaged milk segment is dominated by the dairy cooperatives

SUPPLY CHAIN OF DAIRY IN INDIA

SUPPLY CHAIN OF DAIRY INDUSTRIES IN INDIA

DAIRY – VALUE CHAIN

SOURCE- USDA

OPERATION FLOOD

Operation flood started by National dairy development board in

1970 made India largest producer of milk in the world.

OBJECTIVES-

•Increase milk production.

•Augment rural incomes.

•Reasonable prices for consumers.

ACHIEVEMENTS-

•Phenomenal growth of milk production in India, from 20 million mt to

100 million mt in span of 40 years.

•The dairy co-operative movement encouraged Indian dairy farmer to keep

more animals which has result in 500 million cattle and buffalo population

in country.

•Covering more than 12500 villages of 22 states.

.

OPERATION FLOOD

The Amul Model

The Amul Model of dairy development is a

three-tiered structure with the dairy

cooperative societies at the village level

federated under a milk union at the district

level and a federation of member unions at

the state level.

The Amul model has helped India to emerge as the largest milk producer in the

world. More than 15 million milk producers pour their milk in 1,44,246 dairy

cooperative societies across the country. Their milk is processed in 177 District Co-

operative Unions and marketed by 22 State Marketing Federations, ensuring a better

life for millions.

POLICIES

•IDDP- Intensive Dairy Development Programme

Development of milk cattle.

Increase milk production by providing technical input services.

Procurement, processing and marketing in cost effective manner.

generate additional employment opportunities.

To increase the social nutritional and economic status of residents of comparatively

more disadvantaged area.

•Assistance to co-operative scheme (ACPS)Revive the sick dairy co-operatives.

•National Programme for cattle and buffalo breeding (NPCBB)Genetic up gradation by organized breeding through Artificial Insemination or

natural service of a high quality bull.

•Dairy venture capital fund scheme: (DVCFS)Aim to promote ventures in the dairy sector.

•National dairy plan: (NDP)To increase the milk production to about 6 mt annually by 2021-22.

INSTITUTION RELATED TO DAIRY

NDDB- National Dairy Development Board

NDRI- National Dairy Research Institute

IVRI- Indian Veterinary Research Institute

Strength Weakness

Largest milk producer in the world.

A huge base of around 11 million farmers

Traditional emphasis on consumption

Poor feeding practices.

Poor access to institutionalcredit

Lack of cold storage facilities

Opportunity Threat

Elastic demand; economic growth will spurdemand

Increasing preference for branded dairyproducts

Growing focus on health and nutrients inurban market

Nearly 85 per cent of the Indiandairy industry is unorganized

Removal of import duty has ledto the threat of dumping

Swot Analysis

SWOT ANALYSIS