Indian dairy industry

Dairy Industry
Dairy farming is a class of agricultural, or an animal husbandry, enterprise, for longterm production of milk, usually from dairy cows but also from goats, sheep and camels, which may be either processed on-site or transported to a dairy factory for processing and eventual retail sale.

Dairy Industry India

In India, the dairy sector plays an important role in the countrys socio-economic development, and constitutes an important segment of the rural economy. Dairy industry provides livelihood to millions of homes in villages, ensuring supply of quality milk and milk products to people in both urban and rural areas. With a view to keeping pace with the countrys increasing demand for milk and milk products, the industry has been growing rapidly. According to our research report Indian Dairy Industry Analysis, India is the worlds largest milk producer, accounting for around 17% of the global milk production. Besides, it is one of the largest producers as well as consumers of dairy products. Due to their rich nutritional qualities, the consumption of dairy products has been growing exponentially in the country, and considering such facts and figures, our study anticipates that the milk production in India will grow at a CAGR of around 4% during 2011-2015. With the rising use of dairy products, the secondary market for dairy products has also been flourishing, our report observed. For this, we have included the analysis of secondary market for dairy products, including tea, coffee, infant nutrition, malted foods, and bakery products Analyzing the past and current state of the industry, the report tries to find out how trends like the entry of international companies and safe
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packaging are attracting more consumers and leading to further growth in the market. This way, it presents a clear picture of the direction, in which the industry is likely to proceed in the coming years.

India has the highest livestock population in the world with 50% of the buffaloes and 20% of the worlds cattle population, most of which are milch cows and milch buffaloes. Indias dairy industry is considered as one of the most successful development programmes in the post-Independence period. In the year 2006-07 the total milk production in the country was over 94.6 million tonnes with a per capita availability of 229 gms per day. The industry had been recording an annual growth of 4% during the period 1993-2005, which is almost 3 times the average growth rate of the dairy industry in the world. Milk processing in India is around 35%, of which the organized dairy industry account for 13% of the milk produced, while the rest of the milk is either consumed at farm level, or sold as fresh, non-pasteurized milk through unorganized channels. Dairy Cooperatives account for the major share of processed liquid milk marketed in the India. Milk is processed and marketed by 170 Milk Producers Co-operative Unions, which federate into 15 State Cooperative Milk Marketing Federations. Over the years, several brands have been created by cooperatives like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan). Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur).

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Growth of Dairy Industry In India

With rapid increase in domestic demand for milk and milk-based products, the dairy industry in India is likely to reach about Rs 5 lakh crore by 2015, industry bodyAssociated Chambers of Commerce and Industry of India (Assocham) said today. Milk production is likely to reach about 190 million tonne in 2015 from current level of about 123 million tonne, according to a study conducted by Assocham. India is worlds largest milk producer and accounts for nearly 20% of total milk production of the world but almost all of it gets consumed domestically, said DS Rawat, secretary general of Assocham. Growing at about 10% annually, the Indian dairy industry is predominantly controlled by the unorganized sector which accounts for nearly 85%. About 8 crore rural families across India are engaged in dairy production and the rural market consumes over half of the total milk produce, said Rawat secretary general of Assocham. Owing to conventional dietary habits of Indian households, about 60% of milk produced is consumed in the liquid form and the remaining is consumed in the form of butter, clarified butter (desi ghee), cheese, curd, paneer, ice cream, dairy whiteners and traditional sweets.

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Swot Analysis of Dairy Industry

Strengths:

Demand profile: Absolutely optimistic. Margins: Quite reasonable, even on packed liquid milk. Flexibility of product mix: Tremendous. With balancing equipment, you can keep on adding to your product line. Availability of raw material: Abundant. Presently, more than 80 per cent of milk produced is flowing into the unorganized sector, which requires proper channelization. Technical manpower: Professionally-trained, technical human resource pool, built over last 30 years.

Weaknesses:
Perish ability: Pasteurization has overcome this weakness partially. UHT gives milk long life. Surely, many new processes will follow to improve milk quality and extend its shelf life. Lack of control over yield: Theoretically, there is little control over milk yield. However, increased awareness of developments like embryo transplant, artificial insemination and properly managed animal husbandry practices, coupled with higher income to rural milk producers should automatically lead to improvement in milk yields. Logistics of procurement: Woes of bad roads and inadequate transportation facility make milk procurement problematic. But with the overall economic improvement in India, these problems would also get solved.

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Opportunities:
"Failure is never final, and success never ending. Dr Kurien bears out this statement perfectly. He entered the industry when there were only threats. He met failure head-on, and now he clearly is an example of never ending success! If dairy entrepreneurs are looking for opportunities in India, the following areas must be tapped: Value addition: There is a phenomenal scope for innovations in product development, packaging and presentation. Given below are potential areas of value addition: o Steps should be taken to introduce value-added products like shrikhand, ice creams, paneer, khoa, flavored milk, dairy sweets, etc. This will lead to a greater presence and flexibility in the market place along with opportunities in the field of brand building.

Threats:
Milk vendors, the un-organized sector: Today milk vendors are occupying the pride of place in the industry. Organized dissemination of information about the harm that they are doing to producers and consumers should see a steady decline in their importance. The study of this SWOT analysis shows that the strengths and opportunities far outweigh weaknesses and threats. Strengths and opportunities are fundamental and weaknesses and threats are transitory. Any investment idea can do well only when you have three essential ingredients: entrepreneurship (the ability to take risks), innovative approach (in product lines and marketing) and values (of quality/ethics).

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Milk Production World Wide

India has attained the first rank in milk production in the world. The first five countries in the world producing maximum milk are India, USA, Russia, Germany and France. India continues to be the largest milk producing nation in the world in 2010-11, the National Dairy Development Board (NDDB) said here on Tuesday. NDDB's Annual Report for 2010-11 said the country's estimated milk production for 2010-11 is 121 million tonnes, close to 17 per cent of world milk production.

Amul India 1946

In 1946, the farmers of this area went on a milk strike refusing to be cowed down by the cartel. Under the inspiration of Sardar Patel, and the guidance of leaders like Morarji Desai and Tribhuvandas Patel, they formed their own cooperative in 1946. This co-operative, the Kaira District Co-operative Milk Producers Union Ltd. began with just two village dairy co-operative societies and 247 litres of milk and is today better known as Amul Dairy. Amul grew from strength to strength thanks to the inspired leadership of Tribhuvandas Patel, the founder Chairman and the committed professionalism of Dr Verghese Kurien,who was entrusted the task of running the dairy from 1950. Chairman: - Dr Verghese Kurien, Parthi bhatol in 2012 MD: - R S Sodhi
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Sales Turnover of GCMMF

Sales Turnover 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Rs (million) 11140 13790 15540 18840 22192 22185 22588 23365 27457 28941 29225 37736 42778 52554 67113 80053 97742 116680 US $ (in million) 355 400 450 455 493 493 500 500 575 616 672 850 1050 1325 1504 1700 2172 2500

Source: - amul.com

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Amuls Member Union

1. Kaira District Cooperative Milk Producers' Union Ltd., Anand 2. Mehsana District Cooperative Milk Producers' Union Ltd, Mehsana 3. Sabarkantha District Cooperative Milk Producers' Union Ltd., Himatnagar 4. Banaskantha District Cooperative Milk Producers' Union Ltd., Palanpur 5. Surat District Cooperative Milk Producers' Union Ltd., Surat 6. Baroda District Cooperative Milk Producers' Union Ltd., Vadodara 7. Panchmahal District Cooperative Milk Producers' Union Ltd., Godhra 8. Valsad District Cooperative Milk Producers' Union Ltd., Valsad 9. Bharuch District Cooperative Milk Producers' Union Ltd., Bharuch 10. Ahmedabad District Cooperative Milk Producers' Union Ltd., Ahmedabad 11. Rajkot District Cooperative Milk Producers' Union Ltd., Rajkot 12. Gandhinagar District Cooperative Milk Producers' Union Ltd., Gandhinagar 13. Surendranagar District Cooperative Milk Producers' Union Ltd., Surendranagar 14. Amreli District Cooperative Milk Producers Union Ltd., Amreli 15. Bhavnagar District Cooperative Milk Producers Union Ltd., Bhavnagar 16. Kutch District Cooperative Milk Producers' Union Ltd., Anjar

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Amul Model

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 Cooperative Unions and marketed by 22 State Marketing Federations, ensuring a better life for millions.
Source: - amul.com

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The Anand Pattern

Establishment of a direct linkage between milk producers and

consumers by eliminating middlemen

Milk

Producers

(farmers) processing

control and

procurement, marketing

Professional management

Source: - amul.com

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Amul Products
AMUL MILK: Amul Gold Amul Taaza

BREAD SPREADS: Amul Butter Amul Lite Delicious Table Margarine Amul Cooking Butter

CHEESE: Amul Processed Cheese Amul Emmental Cheese Amul Gouda Cheese Amul Cheese Spreads Pizza Mozzarella Cheese

UHT MILK: Amul Gold Milk Amul Taaza Amul Calci Amul Lite Milk

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BEVERAGE RANGE: Amul Cool Flavoured Milk Amul Cool Caf Amul Kool Koko Amul Kool Milk Shake Amul Stamina Can Nutramul Energy Drink Amul Spiced Buttermilk Amul Kool Lassee Amul Prolife Lassee Amul Prolife Buttermilk

AMUL PRO: Amul Pro

ICE CREAM: Amul Ice-Creams Amul Flaavyo Frozen Yoghurt

PANEER: Amul Malai Paneer Amul Fresh Paneer

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AMUL DAHI: Amul Masti Dahi Amul Probiotic Dahi Amul Flaavyo

GHEE: Amul Ghee Sagar Ghee Amul Yellow (Cow) Ghee

MILK POWDERS: Amul Spray Amulya Sagar Skimmed Milk Powder Sagar Tea Coffee Whitener

NUTRAMUL: Nutramul

MITHAI RANGE: Amul Shrikhand Amul Gulab Jamoon Amul Basundi Amul Avsar Ladoo
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MITHAI MATE: Amul Mithai Mate

CHOCOLATES: Amul Fruit 'n' Nut Chocolate CONGRATS PACK Amul Chocolate Amul Chocozoo Utterly Delicious Chocolate Syrup Amul Wafer Chocolates Amul Rejoice Assorted Chocolate Gift Packs Amul Cooking Chocolate

FRESH CREAM: Amul Fresh Cream

POUCH BUTTER MILK: Amul Pouch Butter milk

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Internal Organisation Structure

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External Organisation Structure

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Webliography
www.amul.com www.indianmirror.com/indian-industries/dairy.html mofpi.nic.in/ContentPage.aspx?CategoryId=145 www.researchandmarkets.com/reports/2052159/indian_dairy_industry_analysis http://www.scribd.com/doc/44373988/Project-on-Amul http://www.indiaagronet.com/indiaagronet/Market_upd/needmilk.htm

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