AUSTRALIA BUSINESS WEEK INDIA (ABWI) -...
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AUSTRALIA BUSINESS WEEK INDIA (ABWI)
Ranjan Sharma
10-16 January 2015
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Scope
• Australia Business Week India, ABWI
• Background on Indian dairy industry
• Austrade Dairy Visits
• Lessons and opportunities in India
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Australia Business Week India - ABWI
• ABWI - January 10-16, 2015– A delegation of 450 govt & industry people led by the
Trade Minister, Mr Andrew Robb
• 12 Streams visiting various parts of India– resources and energy, infrastructure, transport,
agribusiness and food, financial services, health and medical, sport, cultural services, tourism, education and training
• Dairy Stream visits – Delhi, Punjab, Haryana, Chandigarh and Gujarat
+ a visit to ITC India, Bangalore
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Indian Dairy Industry
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Dairy industry comparisonTable: Comparison of Indian and Australian dairy industries, 2014
India AustraliaMilk production, billion litres 132.4 9.2
Cattle population, million 120
(buffaloes –
55%, cows –
45%)
1.6
Average herd size 2-3 258
Average milk production per cattle/year,
litres
1284 5525
Domestic milk consumption, % 98 65
Share of world trade 0.3 8%
Farm gate value, US$ billion 50 4
Direct dairy employment 27 million 43,000
Per capita milk consumption, kg 45 110
Butter, Kg 3.8 3.8
Cheese, Kg <0.1 10
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State wise milk production 2012-13
Andhra Pradesh12%
Bihar6%
Gujarat10%
Haryana7%
Madhya Pradesh8%
Maharashtra8%
Punjab9%
Rajasthan13%
Uttar Pradesh22%
West Bengal5%
State wise milk production 2013
Andhra Pradesh Bihar Gujarat Haryana
Madhya Pradesh Maharashtra Punjab Rajasthan
Uttar Pradesh West Bengal
http://www.nddb.org/English/Statistics/Pages/Milk-Production-States.aspx
Total – 132.4 billion litres
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Milk share - India
https://www.crisilresearch.com/
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Dairy products in India
NDDB
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Curd (dahi/yogurt) – mostly unbranded, branded growing
Ghee and Butter market
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Cheese market – very small volume -high growth – mostly branded
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Paneer – 95% unbranded Ice cream
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National Dairy Plan – Phase 1 priorities
US$ 416 million
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Indian Dairy Industry
• Large, growing population – to overtake China by 2020
• Healthy economic growth – 7-8%
• Rapid Urbanization: At present about 28.40% of India’s population live in urban area
and is expected to touch 40.76% by 2030
• Average income of Indians is growing rapidly
• The fast changing food habits =Increased use of fast foods, modified and instant
foods and branded foods
• Health food is a growing trend in India – dairy products considered healthy
• Value added milk products through entry of global players with local tie ups
• Improvement in supply chain infrastructure
• Live bull imports banned – need changes in regulation – minimum requirement:
animals producing over 7000 Lt/year
• Semen imported from Canada only
• Most interactions with European dairy - Little interactions with Australian dairy
industry and little emphasis in Australia on Indian market
• Barriers for Australian exports – tariff 15-30%
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AusTrade Dairy Visits
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Himachal Pradesh
Chandigarh
New Delhi
Anand, Gujarat
Bangalore
Trip Itinerary
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13 Jan – O’Leche Dairy farm
• 30 Acres; Herd of 115 – 80 milking; 25 staff
• Grow own fodder and employ a veterinarian
• Cross-breed – Holstein-Friesian and Sahiwal
• Milk yield – 5-25L per animal per day
• 3 hand-held milking machines
• Small pasteurisation plant, no homogenisation and 1L pouch packing machine – 1000L day
• Direct home delivery in Delhi areas
• Received 50% premium price - Demand high and waiting list
• Cow dung used for methane gas and power generation
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14 Jan – Satluj Dairy farm
• Large progressive dairy farm• 92 acres of own land and 250 acres of contracted
land• Cross breed from Danish bulls imported between
1997-2007 by NDDB – gradually purified by HF semen from US&Canada – nearly 100% pure HF
• 169 milking cows and 31 pregnant cows (plus another farm)
• Milk yield 25-35L per cow/day• Get 4 lactation per animal – animals sold not
slaughtered• Milking plant is from GEA and De Laval. 3 times
milking with 4000 L average per day – chilled in a chiller tank
• Owner is President of Farmers Union – No technical training, 6000 farmers meeting once a month
• Product made at different plant - pasteurisedmilk, flavoured milk, curd, ghee and paneer
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15 Jan – Meeting with Punjab and Haryana Govt officials
• Haryana State• Murrah buffalo - 84% of milk; cows - 14.2% and goats -
1%• Murrah considered most suitable for hot weather – 9%
fat milk• 2nd Highest per capita availability of dairy• 29 private dairies – 3.2 million/day milk• 5 co-op – 0.73 mill L milk• Challenge – how to increase milk yield
• Punjab State• 8% of State GDP; extreme hot and cold weather• 2.4 mill cattle – 5.2 mill buffaloes; poor quality milk -
raw milk bacterial count in millions• 8.2 mill L organised sector; 1.7 milL co-op and 6.5 mill L
private• Seeking direct investment in dairy and knowledge of
dairy farming• Seeking expertise in other dairy products such as
Mozzarella cheese
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16 Jan – National Dairy Development Board
• Apex co-operative body controlling mega brand AMUL
• Well funded for dairy R&D
• Controls World Bank loan National Dairy Plan of $350 million for expansion for dairy between 2011-17
• Expertise sought• Dairy technology and Product development
expertise
• Innovation expertise for food products in developing and mature markets
• Expertise in raw milk and finished product quality and food safety
• Useful for DIAL to have links established with NDDB
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16 Jan – Dudhsagar Dairy, Gujarat
• Co-operative dairy manufactures a number of products - Pasteurised pouches, uHT pouches, ghee, milk powders, dairy whitener, infant milk food, dahi, masti dahi, ice cream
• Also runs a dairy science and technology degree.
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Dairy products in a supermarket
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Buttermilk – ginger, curry leaves and cumin
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Ghee
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Cheese and butter
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Flavoured milk and lassi
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Shrikhand and paneer
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Khova, cheese, butter
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Lessons from the visit
• Large dairy industry wanting to grow
• Largely poorly organised with poor infrastructure, breed and quality of milk.
• Strong desire to improve animal breeds and on-farm practices
• Limited range of dairy products
• Potential opportunities with NDDB, Punjab Dairy Board and ITC