Indian Dairy Sector Opportunities & Challenges An overview by Dr. Chandrakiran N. Sant Dairy Advisor ( India )

India Statistics … Number 1 in milk production, targeting production + 220 MMT by 2020. Majority of world-famous brands wanting to enter. Good milk processing facilities Fastest growing Economy, to be 3rd by 2030 ‘Amul’ the taste of India ; globally available Multinational Brands like Schreiber Dynamix , Nestle, GSK, Heinz, Cadbury, Danone, Levers, Abbott are in the fray. Expansion of Lactialis is encouraging the business parameters FDI is also visible in this business segment.

Indian Dairy Industry An oldest business India Largest milk producer Present milk production 155 MMT Year to year growth 3-4% only. Projection 2020 : 200 MMT Consumption increasing more than 6% per year Processing : only about 40% of total milk ; WHY?

Opportunities on the rise in the Indian Dairy sector Large demands of milk and milk products Growing demands for healthy ( A2) , chemical free and organic milk High purchasing power of the customer Large dairies are feeling the need to invest in backward integration Large corporates are looking for developing large herd farms Increasing awareness about benefits of cows milk Large opportunities in carbon credits and development of non conventional environment friendly sources of energy through dairying

Challenges in Indian Dairy sector Farming … Below average breed, feed and farm management. Mechanization and automation is challenging Average herd size is small Average yield is low Enough resources in backward integration are not deployed Application of computer based technology is a luxury. Price Language Maintenance Dairy farming done by Marginal farmers with average herd size of 3-5.

Challenges cont.…. Availability of green fodder / Global warming Maintaining unproductive and low quality animals Extension services for dairying ? Appropriate distribution and pricing policy for milk Lack of common services : milking, AI, silage, hydroponics, bio gas, Clean Milk Production, Preventive health and nutrition No on hand Training on Farm/ Institute

Realistic Challenges Indian Dairy sector No Single Point information. WWW.. Does not help. Job involves a different mindset : 24 X 7 job Production areas highly scattered. Extension education programs by Cooperatives leave lot to be desired. Religious sentiments ; male calves ? Cow slaughter in banned in most states.

Scope in Indian Dairy sector cont. Any input / technology / Service parameter which can :- Improve the Milk Productivity ( most primary target) Deploy resources for improving Feeding : balanced feeding for optimized Productivity Breeding . Management : Scientific ways & means to manage. Improve Calf Rearing Companies focusing on farmers need thro’ their equipment or services.

Scope Indian Dairy sector Big milk processing houses should encourage farmers to opt for organic growth in farms. ( More output from same animals ) Companies focusing on farmers need thro’ their equipment or services. Efforts to improve quality of milk : low SCC / nil residual effect of pesticides & antibiotics Preventive Health Management.

Dairy Management Advisor Thank You Dr. Chandrakiran N. Sant Dairy Management Advisor +91 98 60 60 01 33 cnsant@gmail.com