DAIRY INDUSTRY.pptx

The Indian Dairy Food market is comprised of various national and multinational players that specialize in developing various value-added dairy products. The market for dairy products in the India is changing at a brisk rate.
In the post-white revolution, Indian dairy industry has shown constant growth in milk production as well as in per capita milk availability.

World milk production - Increased by 50 % during the last 3 decades.
482 million tones in 1982 to 852 million tones in 2020.

We live in a country which is not only the largest consumer of milk in the world but which also produces about 200 million tonnes of milk every year! Thus, the dairy farming business is gaining prominence in today’s world.

The issues for future approach to Dairy Development should be:

Market oriented activities with a fair pricing policy.

Strengthening of farmers' organisations and gearing support programmes towards small
holder production systems.

A supportive environment for the introduction of small scale milk processing where applicable to give the producer access to a wider share of the market.

To create new and strengthen existing networks for the exchange of information, experience and training facilities.

India ranks first among the world’s milk producing nations since 1998 and has the largest bovine population in the world.

Milk production in India during the period 1950-51 to 2017-18, has increased from 17 million tonnes (MT) to 176.4 MT as compared to 165.4 MT during 2016-17 recording a growth of 6.65%. FAO reported 1.46% increase in world milk production from 800.2 MT in 2016 to 811.9 MT in 2017.

This represents sustained growth in the availability of milk and milk products for our growing population.

Trends of milk production and value added product by the cooperative and organized private sector in India.
Dairying has become an important secondary source of income for millions of rural families.
Of total milk production in India about 4.8 percent milk is either consumed at the producer level or non producer in rural area. The balance 52 percent of milk is marketable surplus available for sale to consumers in urban areas.
Out of marketable surplus it estimated that 40 percent of the milk sold is handled by a organised sector.

The Indian dairy market reached value of nearly INR 6,911 Billion in 2016, growing at a CAGR of 13% during 2010-2016. Some of the major factors driving the growth of the Indian dairy market are rising working-population, increasing disposable incomes and health consciousness among the consumers. Additionally, the government is also taking active participation in advancing and promoting dairy farming practices to promote the production and quality of milk.

1. DAIRY INDUSTRY MANAK KUMAR PRESENTER

2. INTRODUCTION MARKET DYNAMICS MARKET SEGMENTATION SWOT ANALYSIS CONTACT DAIRY INDUSTRY CONTENT

3. INTRODUCTION

4. The Indian Dairy Food market is comprised of various national and multinational players that specialize in developing various value added dairy products. The market for dairy products in the India is changing at a brisk rate. In post white revolution Indian dairy industry has shown a constant growth in milk production as well as in per capita milk availability. World milk production - Increased > 50 % during last 3 decades. 482 million tones in 1982 to 852 million tones in 2020. INTRODUCTION CONTACT

5. HISTORY CONTACT In the 1920s, modern milk processing and marketing technologies were introduced in India. The National Dairy Development Board (NDDB) was founded in 1965. It launched Operation Flood in 1969–70, a programme aimed at modernising and developing the dairy sector using co-operatives. During this period, dairy co-operatives emerged as a dominant force, as a result of the exploitative nature of private milk plants and vendors. India has been the world's largest milk producer since 1997, when it surpassed the United States. During 2019–20, India exported 51,421.85 metric tonnes of dairy products, at a total value of ₹1,341.03 crore (US$186.71 million). Major destinations for its exports were United Arab Emirates, Bhutan, Turkey, Egypt, and the United States. A rail car carrying milk, labelled Operation Flood

6. EXECUTIVE SUMMARY CONTACT We live in a country which is not only the largest consumer of milk in the world but which also produces about 200 million tonnes of milk every year! Thus, the dairy farming business is gaining prominence in today’s world. The issues for future approach to Dairy Development should be: Market oriented activities with a fair pricing policy. Strengthening of farmers' organisations and gearing support programmes towards small holder production systems. A supportive environment for the introduction of small scale milk processing where applicable to give the producer access to a wider share of the market. To create new and strengthen existing networks for the exchange of information, experience and training facilities.

7. MARKET DYNAMICS

8. INDUSTRY OVERVIEW CONTACT India ranks first among the world’s milk producing nations since 1998 and has the largest bovine population in the world. Milk production in India during the period 1950-51 to 2017-18, has increased from 17 million tonnes (MT) to 176.4 MT as compared to 165.4 MT during 2016-17 recording a growth of 6.65%. FAO reported 1.46% increase in world milk production from 800.2 MT in 2016 to 811.9 MT in 2017. This represents sustained growth in the availability of milk and milk products for our growing population.

9. MARKET TRENDS CONTACT Trends of milk production and value added product by the cooperative and organized private sector in India. Dairying has become an important secondary source of income for millions of rural families. Of total milk production in India about 4.8 percent milk is either consumed at the producer level or non producer in rural area. The balance 52 percent of milk is marketable surplus available for sale to consumers in urban areas. Out of marketable surplus it estimated that 40 percent of the milk sold is handled by a organised sector.

10. CONTACT KEY PLAYERS

11. MARKET OVERVIEW CONTACT The Indian dairy market reached value of nearly INR 6,911 Billion in 2016, growing at a CAGR of 13% during 2010-2016. Some of the major factors driving the growth of the Indian dairy market are rising working-population, increasing disposable incomes and health consciousness among the consumers. Additionally, the government is also taking active participation in advancing and promoting dairy farming practices to promote the production and quality of milk. The government organisations such as National Bank for Agriculture and Rural Development (NABARD) offer small scale farmers several subsidies and loans at low interest rates which assist them to set up modern processing plants, upgrade technology, breed good-quality milch animals, etc. Further, the market is expected to reach a value of INR 16,368 Billion by 2022.

12. Market drivers and restraints CONTACT In the past few years, veganism is increasing across the globe and is expected to increase over the forecast period, leading to growth of dairy-free products market over the forecast period. In many developed regions such as Europe, Canada, the U.S., dairy-free products market is booming, owing to couple of reasons such as increasing health consciousness among individuals, high lactose intolerance and increasing per capita disposable income. Millennial demographic of the world is increasingly inclined towards vegan diets, which is a factor driving growth of dairy-free products market. Changing lifestyles, influence of social media and Internet, increasing social awareness, is also expected to drive demand for dairy-free products. Because of all these factors, people are preferring to consume dairy-free products, which is driving growth of the dairy-free products market and this is expected to continue over the forecast period. Shifting focus of individuals towards vegan diets and vegan lifestyle is trending, owing to ethical issues related to animal rights and environment protection campaigns. Also, increasing number of individuals in North America and Europe are preferring to buy organic food products irrespective of high prices.

13. Porter's five force Analysis CONTACT Threat of new Entrants : Medium New Entrants are encouraged and assited by various schemes by government. Requires high capital investment and difficult to achieve economics of scale Access to very complex and well established distribution channel Customer loyalty Bargaining power of buyers : High Presence of multiple competitors as well as local doodhwalaas Home delivery and freshness of local dairy products from local doodhwalaas make this more complex.

14. CONTACT Bargaining power of suppliers : Low Mainly the supplier are rural milk producers and thus their bargaining power is low . Threat to substitutes : Low Although many substitute in drinking area when compared with milk are available the dairy industry enjoy high profitability in case of dairy products. Rivalry among competitors : High Large number of competitors Local doodhwalaas

15. Market SEGMENTATION

16. CONTACT MARKET Segmentation Global Dairy Products Market is segmented By Product Type - Milk, Skimmed Milk Powder, Whey Milk Powder, Whey Protein, Butter, Cheese, Yogurt, Others. By Distribution Channel -Supermarkets & Hypermarkets, Convenience Stores, Online, others. By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) By Product type- •The global dairy products market has been segmented by product type covering milk, cheese, butter, whey protein, milk power, and various other dairy products. •Liquid milk is the major dairy food and the demand for liquid milk products is rapidly surging with the rising health consciousness and living standards of the consumers. Infants are the major promoters of milk market in the form of infant formula and baby milk. •In most of the countries including highly populous India and China, milk is considered as a major part of healthy dietary protocol. Liquid milk accounts for over 90% of the demand for dairy products in rural areas and over 85% of that in urban areas in India.

17. CONTACT By Distribution Channel- •Supermarkets and hypermarkets evolved as the largest sales channel for dairy products with a share of nearly 50% in terms of sales value in 2018. •The growing retail sales of dairy products in Asian countries owing to ‘go to retail market’ strategy of manufacturers to reach retail stores is motivating the sales through supermarkets and hypermarkets. •For instance, Parag Milk Foods Company in India is planning to widen its retail distribution network by 3x times in the next six years. Convenience stores, specialty stores, and e-commerce are also holding a significant share in the sales of dairy products. By Region- •The dairy product market is segmented into North America, South America, Europe, Asia Pacific, Middle East, and Africa. •The robust dairy sales in China and rapid growth in demand for fermented milk products in India and Indonesia made the Asia Pacific region as the largest market for dairy products. •The share of Asia Pacific in total dairy products market reached 36% in 2018 and is likely to hold its dominance over the forecast period in countries such as India, Vietnam, Pakistan, and Laos.

18. MAJOR PRODUCTS CONTACT The dairy sector in the India has shown remarkable development in the past decade and India has now become one of the largest producers of milk and value-added milk products in the world. Major products: Butter Fresh Butter MilK Butter Oil Fresh Cheese Milk & Cream in Powder Milk for Babies Other Fat Skimmed milk powder Other milk power Whole Milk Ghee

19. COMPETITIVE LANDSCAPE

20. COMPETITIVE LANDSCAPE CONTACT Based on global competition, time series analysis has been carried out to find the past trend and future direction. The position of India has been examined and compared along with of a few other leading milk producers. The analysis indicates that over the past two decades the global competition for milk production has witnessed a downward trend. Whereas, the market share of milk production of India is increasing. This indicates that over the years the competitiveness of the Indian dairy sector has been improving. In this context, cost of milk production, farm size, infrastructure for milk collection, milk processing capacity, quality of dairy products, etc. have been highlighted to gain global competitive advantage. In addition, there is a need to manage the Indian dairy industry in a manner to enhance the production of dairy products and upgrade milk processing using innovative technologies.

21. ISSUES & CHALLENGES CONTACT Informal sector: More than 70% of marketable surplus goes through informal channel where quality is a big concern. As a result, middlemen usurp large share of rofit meant for rural farmer and milk producers. Quality issues: Quality of milk or value-added products is a barrier to entry to the export market, especially the USA and the EU. Pricing issues: Prices decided by cooperatives are not based on fat measurement, which affects Farmer’s profitability. In addition, lower prices declared by cooperatives, results in low prices of milk paid by all the players in the industry. Lack of adequate breeding and preventive care services: Along with low access to credit and risk-taking ability, this factor makes farmers unable to increase their herd size. Adulteration: Adulteration and dilution is also a problem with adulterants like vegetable oil, detergents, glucose and urea entering the milk, thus degrading the milk quality and jeopardizing health of consumers. Inadequate marketing: Due to lack of marketing facilities and extension services, there is poor perception of the farmers towards commercial dairy enterprise as an alternative to other occupation.

22. CONTACT

23. MARKET OPPORTUNITIES

24. MARKET OPPORTUNITIES CONTACT A study undertaken by a private agency has estimated that of the total surplus, 20% is processed in the cooperative sector, 30% by branded private dairy companies, and the rest by the unorganised sector (milk for sweet shops, loose milk, etc). Uttar Pradesh, Andhra Pradesh, Rajasthan, Gujarat, Maharashtra, Madhya Pradesh, Haryana, and Punjab together account for 65% of the country’s milk production. . Future growth of dairy must come from newer areas, and with modernised technology suited for small dairy farmers.

25. FUTURE TRENDS CONTACT Increasing demand for Organic Milk and Milk Products. UHT Milk. A2 Milk. Hydroponics fodder preparation. Modern Mechanisation of Dairy Farm. Loose Housing System (Mukta Gotha). Total milk production in India may touch 216 Million Tons by 2030. Per capita availability of around 390 gm/day by 2030. Packaged milk would grow to $32.9 billion by 2030. 73% milk sold by 2030 would be branded, against 31 % at present. 70% of the milk will be procured by Organized Sector by 2022.

26. SWOT ANALYSIS CONTACT Strengths: Large number of livestock population is vital asset for Indian dairy industry. Sustainable re-production can assure future supply and will continue to propel industry growth. Indian milk animal has very low milk productivity; there is a huge scope of improvement in terms of milk productivity of animals. Weaknesses: Penetration of cross breeds and high yielding animal are limited and Indian dairy farms have large number of low milk yielding animals. Lack of road connectivity and poor infrastructure are major challenge for dairy farms in terms of supplying their raw milk to processing facility.

27. CONTACT Opportunities: With opening up of Indian economy milk producer has huge opportunity to sell products in global market High economy growth has created opportunity to invest in dairy farms. Threats: Urbanization, Industrialization and excessive grazing have put pressure on grazing lands. Result into complete degradation of grazing land. Crossbreeds have created threat many valuable indigenous cattle breeds.

28. THANK YOU FOR LISTENING MANAK KUMAR PRESENTER

29. REFERENCES MANAK KUMAR PRESENTER www.investinkonya.gov.tr www.fao.org https://www.researchgate.net/publication/325036375_CHALLENGES_OF_INDIAN_DAIRY_INDUSTRY https://www.indianmirror.com/indian-industries/dairy.html https://www.mordorintelligence.com/industry-reports/dairy-products-market https://iasscore.in/current-affairs/mains/dairy-farming-important-avenue-to-boost-farm-income