FAD : The Golden Business HorizonFood Processing, Agribusiness & Dairy

International Summit-2014

Organized by

Knowledge Partner

About Us

Started in 2002

With the aim of providing multiple services to companies wishing to engage in any business expansion.

Team Strength

Dedicated team of over 35 employees and 15 freelancers, with rich industry experience and domain expertise.

Global Presence

Well equipped offices in India and Dubai, also present in 20 countries and 5 cities in India through channel partners.

Sectors Served

Provide actionable insights to companies across a range of industries such as Healthcare, Energy, Retail among others.

One-Stop-Shop

Services

Business Consulting Services

• Strategic and Product Marketing

• Market Entry Strategies

• Pre-testing and post launch evaluation

• Concept and Product Testing

• Identifying potential clients

• Competitive Intelligence Services

Offices

Food Processing Industry (FPI)

2012 2015e 2020f

6.6

11.6

16.5

Indian Food Processing Industry (INR Trillion)

CAGR 12%

Source: ICAR, RNCOSNote: e = ICAR Estimates, f = RNCOS Forecast

After China, India is the world’s second largest food producer

Country’s domestic food market is estimated to reach INR15. 5 Trillion by 2015

With an expansive agricultural sector, abundant livestock, and economies of scale, India is swiftly emerging as a sourcing hub for processed food.

Major driving factors include rise in personal household income, changing lifestyle and modern retail trade.

FPI-Exports

United Arab Emirates; 12%Saudi Arabia;

11%United

States; 8%

Malaysia; 7%

Iran; 6%Others;

57%

Top Exporting Countries for Processed Food Products from India (%), 2010-11

Source: DGCIS

Top Exporting Countries for Processed Food Products from India (%), 2013-14

India’s Export market is expanding as more nations are added into the exports list

The processes food product exports touched swelled three times in FY 2013 over FY 2010 to touch INR 1.36 Trillion

In value terms, Basmati Rice, Meat & Preparations, Non-Basmati Rice, Guargum, and Wheat are the top 5 exported commodities

Vietnam; 9%Iran; 9% United

States; 9%

Saudi Arabia;

8%Bangladesh; 6%

Others; 59%

FPI-Imports

Myanmar; 18% Canada;

15%

United States;

8%

Australia; 7%China P Rp; 6%

Others; 45%

Top Importing Countries for Processes Food Products in India (%), 2010-11

Source: DGCIS

Top Importing Countries for Processes Food Products in India (%), 2013-14

Canada; 21%

Myan-mar; 19%

United States; 13%Australia;

9%

China P Rp; 9%

Others; 28%

In FY2014, import of processed food products reached INR 221.8 Billion growing at a CAGR of nearly 15%

Alcoholic beverages and pulses are the top imported commodities

In future the import of pulses should be subdued on account of proactive government initiatives

FPI-Government Initiatives

Quality Assurance, Codex Standards and R&D, and Promotional Activities(Installation/up gradation of Food Testing Laboratories, R&D in FP)

Initiatives for Human Resource Development(Entrepreneurship Development Programmes , Food Processing Training Centres, Training/Workshop)

Modernization of Abattoirs(Establish modern abattoirs and modernization of existing abattoirs)

Scheme for Cold Chain, Value Addition and Preservation Infrastructure(Value addition and preservation infrastructure facilities without any split for perishable items)

Mega Food Parks Scheme (MFPS)(Establishment of efficient supply chain and cold chain infrastructure)

Scheme for Technology Upgradation/Establishment/ Modernization of Food Processing Industries(Financial assistance for establishing new food processing units and technological expansion)

National Mission on Food Processing (NMFP)

Agriculture

In cereals, Rice and Wheat accounted for a major share with production of over 106 Million Tonnes and 95 Million Tonnes respectively.

Sug-ar-

cane,

53.4%Cere-als;

37.5%

Oilseeds;

5.0%

Pulses; 2.9%

Cotton; 0.9%

Jute & Mesta; 0.3%

Production Volume Share of Major Crops (%), 2013-14

Source: Agricultural Statistics Division

The total production of major crops stood at 655.3 Million Tonnes in 2013-14

Sugarcane has been growing at the fastest pace with a CAGR of over 4% during the past 10 years.

Among the oilseeds, Groundnut, Rapeseed, and Mustard claimed the highest share.

The share of cereals, pulses, and oilseed is likely to increase in the years to come due to focus on food security

Agriculture-Government Initiatives

Initiative Year of Origin

Outcome

National Mission on Micro Irrigation (NMMI)

2010 By the end of 2011-12, about 3 Million hectares of land has been covered under drip & sprinkler irrigation.

Integrated Nutrients Management (INM)

2008-09 During the 11th Plan, the scheme worked on setting up 500 new soil testing laboratories, strengthening the existing 315 soil testing laboratories, setting up 250 mobile soil testing laboratories, setting up 20 new fertilizers quality control laboratories and strengthening 63 existing fertilizer quality control laboratories

National Food Security Mission (NFSM

2007 Through NFSM, 25 Million Tonnes of additional food grain was produced in the 11th Plan

Rashtriya Krishi Vikas Yojana (RKVY)

2007 It is designed as a State Plan Scheme with complete flexibility to the States to choose specifically tailored projects for generating growth in agriculture and allied sectors.

Kisan Call Centre (KCC)

2004 The Call Centres can be accessed by farmers all over the country on common Toll Free Number 1551. The calls are received at 13 Call Centres wherein 116 Agriculture Graduates attend the queries of farmers in their local languages

Agri-Clinics and Agri-Business Centres

2002 Since its inception nearly 29,500 candidates have been trained under the scheme

Integrated Pest Management (IPM)

1990s Established 31 Central Integrated Pest Management Centres (CIPMCs) located across 28 States and 1 UT. Use of biopesticides/neem-based pesticides increased to over 8,000 Tonnes in 2011-12, while the consumption of chemical pesticides reduced to 50,000 Tonnes (Technical Grade) in 2011-12

Crop Insurance 1999-00 Under the National Crop Insurance Programme (NCIP), in Rabi 2013-14 season, MNAIS covered 127 disticts under 13 states and WBCIS covered 123 districts in 14 states.

Agricultural Extension by ICAR

1980s Established a network of over 600 Krishi Vigyan Kendras (KVK) and organized roughly 54,000 Frontline Demonstrations (FLD) to demonstrate the production potential of new production technologies. Trained more than 1.0 million farmers and extension personnel in agriculture and allied fields

Dairy Sector

It’s been 16 years since India has displaced the US as the world’s largest milk producer.

Gujarat Cooperative Milk Marketing Federation (GCMMF) daily milk procurement is approx 13.18 million lit. per day from 17,025 village milk cooperative societies, 17 member unions covering 31 districts, and 3.23 million milk producer members

Nearly 15.1 Million farmers have been brought under the ambit of 1,55,634 village level dairy corporative societies up to March 2013

By FY2018, the milk production is likely to surpass 177 Million Tonne mark

The production will be driven by government initiatives including National Programme for Bovine Breeding and Dairy Development

National Dairy Plan-1 initiated by NDDB will also expedite the milk production

According to NDDB, the projected milk demand for FY2022 is likely to reach 200 Million Tonnes driven primarily by the growing population, higher incomes and more awareness

2012-13 2013-14e 2014-15f 2015-16f 2016-17f 2017-18f

132142

150158

165177

Milk Production (Million Tonnes) 2012-13 to 2017-18

CAGR 6%

Source: DAHD (2009-10 to 2012-13); RNCOS estimation & forecast 

Dairy-Government Initiatives

National Programme for Dairy Development (NPDD)

Assistance to Cooperatives

Intensive Dairy Development Programmed (IDDP)

Strengthening Infrastructure for Quality & Clean Milk Production

Dairy Entrepreneurship Development Scheme (DEDS)

National Dairy Plan- Phase 1

National Dairy Plan- Phase 1 by NDDB

Trends & Technology

Corporate Foraying Dairy Segment

Dairy Sector: Witnessing Technology

Revolution

Increasing Mechanization in

Agriculture

Rising Organic Food Industry

Trends & Technology

Frozen Foods: Gaining Prominence

Commodity Trading: Hedging for Farmers

Surging ICT Applications in Agriculture

Challenges

Under Developed Cold Chain

Middleman Distorting the Price Mechanics Soaring Food Inflation

ICT Implementation Quandaries

Shortage of Warehouses

Bridging the Gap: Path Ahead

Efficient Use of Food Grain Stocks

Creation of Food Testing Facilities

Encourage R&D for Improving Yields and Curtailing Wastage

Creation of Robust Cold Chain/Supply Chain

Network

Focus on Dairy/Poultry/Fish Supply and Capitalizing on

Whey Extracts

Leverage PPPs for Farm Extension and Create

Financial Instruments for Farm Machinery Procurement

Abolish APMC and Enhance Transparency in Wholesale

Markets

SHUSHMUL MAHESHWARICEO

RNCOSE mail: shushmul@rncos.com

Website: www.rncos.comPhone: +91 120 4224700 /01 / 02/

03Address: B 129, Sector 6,

Noida, Uttar PradeshIndia - 201301

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