The Indian Dairy Industry

Presented By:

GROUP NO:- 7

Ananta Shah

Hiral Desai

Dimple Upadhyay

Jigna Nimbark

&Deepak Jha

Milk and Dairy Products in India

Introduction:

Size of the Industry :

More than 10 million dairy farmers belong to 96,000 local dairy cooperatives, who sell their product to one of 170 milk producers’ cooperative unions who in turn are supported by 15 state cooperative

Overall 140,860 billion dollar market in 2011 , 92627 in 2008 and 67575 in 2005

Output per annum

Market Capitalization

Growing 5 % per annum

The industry contributes about Rs 1,15,970 to the national economy

Geographical distribution

Delhi, Punjab, Mumbai, Gujarat, Surat, Lucknow, Bihar, Hyderabad

History

India is the highest milk producer in the entire globe. India is well known as the ‘Oyster’ of the global dairy industry, with opportunities galore for the entrepreneurs globally. It might be dream for any nation in the world to capitalize on the largest and fastest growing milk and mil products' market. The dairy industry in India has been witnessing rapid growth with liberalization. As the economy provides good opportunities for MNCs and foreign investors to release the full potential of this industry. The main objective of the Indian Dairy Industry is to manage the national resources in a manner to enhance milk production and upgrade milk processing using innovative technologies.

In India dairying from very much earlier is regarded as an instrument for social and economic development. The country’s milk supply comes from millions of small producers, who are dispersed throughout the rural areas. All these farmers maintain an average herd of one or two milch animals, comprising cows and/or buffaloes. Mostly ample labour and a small land base encourage farmers to practice dairying as an occupation subsidiary to agriculture. As income from crop production is seasonal instead dairying provides a stable which is a year-round income and also an important economic incentive for the small farmer .

India's Milk Product Mix

• Fluid Milk46.0%• Ghee27.5%• Butter6.5%• Curd 7.0%• Khoa (Partially Dehydrated Condensed Milk)

6.5%• Milk Powders, including IMF3.5%• Paneer & Chhana (Cottage Cheese) 2.0%• Others, including Cream, Ice Cream1.0%

Total contribution to the economy/ sales

The Indian Dairy Industry engages in the production and processing of milk & cream. This industry is involved in the manufacture of various dairy products like cheese, curd, yoghurt etc. The Indian Dairy Industry specializes in the procurement, production, processing, storage and distribution of dairy products. India as nation stands first in its share of dairy production in the international scenario. The industry contributes about Rs 1,15,970 to the national economy.

The Indian Diary industry which is in the developing stage provides gainful employment to a vast majority of the rural households. It employs about 8.47 million people on yearly basis out of which 71% are women.

Jobs in Indian dairy industry are mainly in the fields of production and processing of dairy products. An individual with minimum of 60% marks who has bachelor’s degree course in the dairy technology can easily be availing an opportunity to work in this industry. For the graduation course in Dairy technology one has to qualify the All India Entrance Test that is affiliated to the Indian Council of Agricultural Research. After that the person can continue with his masters in dairy technology. Jobs would be for the following positions.

Employment opportunities

• Dairy Scientists: The main job of the dairy scientists is to deal with collection of milk and taking care of the high yielding variety of animals.

• Dairy Technologists: the work of Dairy technology requires procurement officers who take the responsibility of collecting milk from farmers, milk booths ad cattle-rearers. This particular procurement officer should well understand the latest technology that is applicable in maintaining the quality of milk of the process of transporting it to the desired location.

• Dairy Engineers: dairy engineers are usually appointed is to set up and maintain dairy plants.

• Marketing Personnel: These individuals deal with the sale and marketing of milk together with milk products.

Latest developments

• Indian Dairy Industry is the largest milk producer all over the world, around 100 million MTIndian Dairy Industries value of output amounted to Rs. 1179 billion in 2004-05 which approximately equals combined output of paddy and wheat. With 1/5th of the world’s bovine population

• In India the Milch animals constitutes 45% indigenous cattle, 55 % buffaloes, and 10% cross bred cows

• Intensive Dairy Development Programmed (IDDP): The Schemes, modified under this programmes are on the basis of the recommendation of the evaluation studies which were launched during Eighth Plan period and is being continued through out the Eleventh Plan with an outlay of Rs. 32.49 core for 2009-10.

• Strengthening Infrastructure for Quality and Clean Milk Production (CMP): this is a centrally sponsored scheme which was launched in October 2003, which had the main objective of improving the quality of raw milk produced at the every village level in the India.

• Dairy Venture Capital Fund- this is introduced in the Tenth Fiver Year Plan to bring about structural changes in unorganized sector, which would measure like milk processing at village level, marketing of pasteurized milk in a cost effective manner, quality or the up gradation of traditional technology to handle commercial scale using modern equipments and management skills.

Market Size

• Rs 900 cr

• Amul approx market share 45%

• Nestle 23%

• Britannia has a significant share

• Other brands – Sapan , Vijaya , Mohan , Parag

• Configuration – Pouches & Tetrapacks

Leading Players• Nestle ,

• Amul ,

• Britannia ,

• Dynamix Dairy ,

• Sterling Agro ,

• Haryana Milk Foods ,

• Mohan Food ,

• Modern Dairy ,

• K Dairy

Potential Markets (exports)

• Middle East , Gulf & Africa

Top International Dairy Companies• Fonterra , New Zealand - 9.1 mln euro • Friesland Campina , Nederland -8.8 mln euro• Dairy Farmers of America ,US -7.4 mln euro • Aria Foods , Denmark – 6.9 mln euro • Land O Lakes ,US – 7.8 mln euro • Humana Milchunion ,Germany – 4.8 mln euro • Tine , Norway – 2.4 mln euro • Glanbia Society , Ireland – 2.1 mln euro • Irish Dairy Board , Ireland – 1.9 mln euro

AMUL

• AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit "Amoolya," was suggested by a quality control expert in Anand.

• Amul products have been in use in millions of homes since 1946.

• Amul a leading food brand in India with a Turnover: Rs. 52.55 billion in 2007-08.

Founder Of The Amul Company

• Dr Verghese Kurien, the Chairman of the GCMMF (Gujarat Co-operative Milk Marketing Federation Ltd), an apex cooperative organization, based in the in Anand town of Gujarat, India.

White Revolution. (1966)

• Verghese Kurien’s Amul experiment in Gujarat soon blossomed into the much larger Operation Flood, spread over 23 states, 170 districts and 90,000 village cooperatives. It changed India from an importer to the world's largest milk producer and exporter.

Members: 13 district cooperative milk producer’s unionNo. of Producer Members: 2.7 millionNo. of Village Societies: 13,141Total Milk handling capacity: 10.21 million litres per day Milk collection (Total - 2007-08): 2.69 billion litresMilk collection (Daily Average 07-08) 7.4 million litresMilk Drying Capacity: 626 Mts. per dayCattlefeed manufacturing Capacity: 3090 Mts per day

GCMMF TURNOVER

Sales Turnover Rs (million) US $ (in million)

1994-95 11140 355

1995-96 13790 400

1996-97 15540 450

1997-98 18840 455

1998-99 22192 493

1999-00 22185 493

2000-01 22588 500

2001-02 23365 500

2002-03 27457 575

2003-04 28941 616

2004-05 29225 672

2005-06 37736 850

2006-07 42778 1050

2007-08 52554 1325

Sales Turnover Rs (million) US $ (in million)

1994-95 11140 355

1995-96 13790 400

1996-97 15540 450

1997-98 18840 455

1998-99 22192 493

1999-00 22185 493

2000-01 22588 500

2001-02 23365 500

2002-03 27457 575

2003-04 28941 616

2004-05 29225 672

2005-06 37736 850

2006-07 42778 1050

2007-08 52554 1325

• GCMMF bags APEDA AWARD for 11th year in

• a row.• Amul Pro-Biotic Ice-cream

gets No.1 Award at world dairy summit.

• Ramkrishna Bajaj National Quality Award 2003.

• Recivede International Cio 100 Award for Resourcefulness.

• Rajiv Gandhi National Quality Award 1999.

Certification

• ISO 9000-HACCP certified plants : All Amul Ice Cream plants are ISO 9000-HACCP certified.

•  Amul is in the process of getting ISO 22000 (Improved version) certification for all its plants.

•  No. 1 in Quality : Amul is ranked No.1 ice cream in quality by “INSIGHT” (May-June, 2002), a bimonthly consumer magazine published by Consumer Research and Education Society (CERS) based at Ahmedabad.