PRESENTATION ON DAIRY

Presented by:Sudarshan Kr.

PatelSuhas 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

1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 20150

100

200

300

400

500

600

700

800

391.82

465.66

542.47

547.02578.88

648

720.98

20.8 31.56 53.68 68.36

79.66

95.62 117

Indiaworld

Indian milk production growth rate is better than world production rate

Valu

e in

mt

Years

Milk Production Across Countries

117

87.46

41.14

35.4932.14

31.8229.67

346.26

Year 2010

India

U.S.

China

Pakistan

Russian federation

Brazil

Germany

others

Production in mt

Source-NDDB

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-110%

2%

4%

6%

8%

10%

12%

14%

16%

18%

16.00% 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%

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.

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

0

50

100

150

200

250

300

350

0

20

40

60

80

100

120

140

Per capita milk availability(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)

A.P

GUJRAT

HARYANAH.P

J&K

PUNJAB

RAJSTHAN

UTTRAKHAND

0

100

200

300

400

500

600

700

800

900

1000

364

435

679

446

378

937

538

384

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

German

yIta

ly

Belgiu

m

Netherl

and

franc

eUK

China

Spain

Russia

n Fed

.

Saud

i Arab

ia

0

1000

2000

3000

4000

5000

6000

7000

80007213

5166

3918 3868 38603560

26202372

2021 1805US

$ M

illio

n

Top importers of Indian dairy products 2012-13

Source- APEDA/PTI

Phillipinnes

Pakistan

Iran

Singapur

Yeman

Algeria

Saudi Arabia

UAE

Egypt

Bangladesh

0 50 100 150 200 250 300

41.78

66.44

67.89

69.3

82.84

95.14

99.12

142.82

179.06

259.11

Rs crore

(In Rs crore)

46%

28%

6%

7%

7%4%

2% 1%

Fluid milkGheeButterYogurtKhoaMilk powderPaneerOther

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 fatsChees and curd casin proteinLactose and lactose syrup

Icecream

India – Dairy product Export 2009

Source - USDA

1%

8%

6%

49%2%

33%

1%

Milk and cream non concentratedMilk and cream concentratedWheyButter and other fatsChees and curdLactose and lactose syrupButtermilk and yogert

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 institutional

credit Lack of cold storage facilities 

 Opportunity  Threat Elastic demand; economic growth will spur

demand Increasing preference for branded dairy

products Growing focus on health and nutrients in

urban market

Nearly 85 per cent of the Indian dairy industry is unorganized

Removal of import duty has led to the threat of dumping

 

Swot Analysis

SWOT ANALYSIS