An Assignment On

Present scenario of Dairy Industry through Environmental Analysis

Submitted To : !rs" #inni $oshi

Date

: %& August' ())*

I+T,OD-.TIO+ O/ DAI,0 I+D-ST,0:

A dairy is a facility for the extraction and processing of animal milkmostly from goats or cows, but also from buffalo, sheep, horses or camels for human consumption. Typically it is a farm (dairy farm) or section of a farm that is concerned with the production of milk, butter and cheese. Terminology differs slightly between countries. In particular, in the .!. a dairy can also

be a facility that processes, distributes and sells dairy products, or a room, building or establishment where milk is kept and butter or cheese is made. In "ew #ealand $nglish a dairy means a corner con%enience store, or !uperetteand dairy factory is the term for what is elsewhere called a dairy. As an attributi%e, the word dairy refers to milk&based products, deri%ati%es and processes, and the animals and workers in%ol%ed in their production' for example dairy cattle, dairy goat. A dairy farm produces milk and a dairy factory processes it into a %ariety of dairy products. These establishments constitute the dairy industry, a component of the food industry. The dairy sector in the India has shown remarkable de%elopment in the past decade and India has now become one of the largest producers of milk and %alue&added milk products in the world. The dairy sector has de%eloped through co&operati%es in many parts of the !tate. (uring )**+&*,, the !tate had -. milk processing plants with an aggregate processing capacity of /., million liters per day. In addition to these processing plants, )01 2o%ernment and 11 co& operati%es milk chilling centers operate in the !tate.

3ith the increase in milk production. 4aharashtra now regularly exports milk to neighboring states. It has also initiated a free school feeding scheme, benefiting more than three million school children from o%er )*,... schools all o%er the !tate.

1istory of Dairy Industry

4ilk producing animals ha%e been domesticated for thousands of years. Initially, they were part of the subsistence farming that nomads engaged in. As the community mo%ed about the country, their animals accompanied them. 5rotecting and feeding the animals were a big part of the symbiotic relationship between the animals and the herders.

In the more recent past, people in agricultural societies owned dairy animals that they milked for domestic and local (%illage) consumption, a typical example of a cottage industry. The animals might ser%e multiple purposes (for example, as a draught animal for pulling a plough as a youngster, and at the end of its useful life as meat). In this case the animals were normally milked by hand and the herd si6e was 7uite small, so that all of the animals could be milked in less than an hourabout ). per milker. These tasks were performed by a dairymaid (dairywoman) or dairyman. The word dairy harkens back to 4iddle $nglish dayerie, deyerie, from deye (female ser%ant or dairymaid) and further back to 8ld $nglish dge (kneader of bread).

3ith industriali6ation and urbani6ation, the supply of milk became a commercial industry, with speciali6ed breeds of cattle being de%eloped for dairy, as distinct from beef or draught animals. Initially, more people were employed as milkers, but it soon turned to mechani6ation with machines designed to do the milking.

Structure of the industry

3hile most countries produce their own milk products, the structure of the dairy industry %aries in different parts of the world. In less de%eloped countries the producer generally sells directly to the public, whereas in ma9or milk&producing countries most milk is distributed through wholesale markets. In Ireland and Australia, for example, farmers: co&operati%es own many of the large&scale processors, while in the nited !tates farmers and processors do business through indi%idual contracts.

As in many other branches of the food industry, dairy processing in the ma9or dairy producing countries has become increasingly concentrated, with fewer but larger plants operated by fewer workers. This is notably the case in the nited !tates, $urope, Australia and "ew #ealand.

5lants producing li7uid milk and products with short shelf life, such as yogurts, creams and soft cheeses, tend to be located on the outskirts of urban centres close to consumer markets. 5lants manufacturing items with longer shelf life, such as butter, milk powders, cheese and whey powders, tend to be situated in rural areas closer to the milk supply.

4ost large processing plants tend to specialise in a limited range of products. $xceptionally, howe%er, large plants producing a wide range of products are still common in $astern $urope, a holdo%er from the former centrali6ed, supply&dri%en concept of the market.

As processing plants grow fewer and larger, they tend to ac7uire bigger, more automated and more efficient e7uipment. 3hile this technological tendency keeps manufacturing costs lower, the need for long&distance transportation often increases the en%ironmental impact

Indian dairy Industry a 2rofile

Today, India is :The 8yster: of the global dairy industry. It offers opportunities galore to entrepreneurs worldwide, who wish to capitali6e on one of the world:s largest and fastest growing markets for milk and milk products. A bagful of :pearls: awaits the international dairy processor in India. The Indian dairy industry is rapidly growing, trying to keep pace with the galloping progress around the world. As he expands his o%erseas operations to India many profitable options await him. ;e may transfer technology, sign 9oint %entures or use India as a sourcing center for regional exports. The liberali6ation of the Indian economy beckons to 4"<:s and foreign in%estors alike. India=s dairy sector is expected to triple its production in the next ). years in %iew of expanding potential for export to $urope and the 3est. 4oreo%er with 3T8 regulations expected to come into force in coming years all the de%eloped countries which are among big exporters today would ha%e to withdraw the support and subsidy to their domestic milk products sector. Also India today is the lowest cost producer of per litre of milk in the world, at 0+ cents, compared with the .!: -1 cents, and >apan=s ?0., dollars. Also to take ad%antage of this lowest cost of milk production and increasing production in the country multinational companies are planning to expand their acti%ities here. !ome of these milk producers ha%e already obtained 7uality standard certificates from the authorities. This will help them in marketing their products in foreign countries in processed form.

The urban market for milk products is expected to grow at an accelerated pace of around 11@ per annum to around As.B1, /.. crores by year 0../. This growth is going to come from the greater emphasis on the processed foods sector and also by increase in the con%ersion of milk into milk products. Cy 0../, the %alue of Indian dairy produce is expected to be As ).,..,... million. 5resently the market is %alued at around As+, ..,...mn.

#ac3ground
India with )1Bmn cows and )0/mn buffaloes, has the largest population of cattle in the world. Total cattle population in the country as on 8ctober:.. stood at 1)1mn. 4ore than fifty percent of the buffaloes and twenty percent of the cattle in the world are found in India and most of these are milch cows and milch buffaloes. Indian dairy sector contributes the large share in agricultural gross domestic products. 5resently there are around +.,... %illage dairy cooperati%es across the country. The co&operati%e societies are federated into )+. district milk producers unions, which is turn has 00&state cooperati%e dairy federation. 4ilk production gi%es employment to more than +0mn dairy farmers. In terms of total production, India is the leading producer of milk in the world followed by !A. The milk production in )***&.. is estimated at +,mn 4T as compared to +B./mn 4T in the pre%ious year. This production is expected to increase to ,)mn 4T by 0...&.). 8f this total produce of +,mn cows: milk constitute 1-mn 4T while rest is from other cattle. 3hile world milk production declined by 0 per cent in the last three years, according to DA8 estimates, Indian production has increased by B per cent. The milk production in India accounts for more than )1@ of the total world output and /+@ of total Asia:s production. The top fi%e milk producing nations in the world are India , !A, Aussia, 2ermany and Drance.

Although milk production has grown at a fast pace during the last three decades (courtesy' 8peration Dlood), milk yield per animal is %ery low. The main reasons for the low yield are

Eack of use of scientific practices in milching. Inade7uate a%ailability of fodder in all seasons. na%ailability of %eterinary health ser%ices. !il3 0ield com2arison: .ountry !A F <anada "ew #ealand 5akistan India 3orld (A%erage) !il3 0ield 45gs 2er year6 +..0 /B)+ /1B, 0*+)./0 7*8 0.0)

Source: Export prospects for agro-based industries, World Trade Centre, Mumbai.

Production of mil3 in India 0ear Production in million !T

)*,,&,* )*,*&*. )**.&*) )**)&*0 )**0&*1 )**1&*B )**B&*/ )**/&*)**-&*+ )**+&*, )**,&** )***&..($) 0...&.)(T)

B,.B /).B /1.+ /-.1 /,.-).0 -1./ -/ -,./ +.., +B.+ +,.) ,)..

9orld:s ma;or mil3 2roducers

44illion 4Ts) .ountry India !A Aussia 2ermany Drance 5akistan Cra6il F kraine 5oland "ew #ealand "etherlands Italy Australia &**7 *< 7& +) 1B 0+ 0B 0) 0) )B )/ )0 )) )) ). * &**< ** 4 A22ro="6 7>"8 +) 11 0+ 0B 00 0+ )B )B )0 )0 )) ). ).

O2eration /lood The transition of the Indian milk industry from a situation of net import to that of surplus has been led by the efforts of "ational (airy (e%elopment Coard:s 8peration Dlood. programme under the aegis of the former <hairman of the board (r. Furien. Eaunched in )*+., 8peration Dlood has led to the moderni6ation of India:s dairy sector and created a strong network for procurement processing and distribution of milk by the co&operati%e sector. 5er capita a%ailability of milk has increased from )10 gm per day in )*/. to o%er 00. gm per day in )**,. The main thrust of 8peration Dlood was to organi6e dairy cooperati%es in the milkshed areas of the %illage, and to link them to the four 4etro cities, which are the main markets for milk. The efforts undertaken by "((C ha%e not only led to enhanced production, impro%ement in methods of processing and de%elopment of a strong marketing network, but ha%e also led to the emergence of dairying as an important source of employment and income generation in the rural areas. It has also led to an impro%ement in yields, longer lactation periods, shorter cal%ing inter%als, etc through the use of modern breeding techni7ues. $stablishment of milk collection centers, and chilling centers has enhanced life of raw milk and enabled minimi6ation of wastage due to spoilage of milk. 8peration Dlood has been one of the world:s largest dairy de%elopment programme and looking at the success achie%ed in India by adopting the co&operati%e route, a few other countries ha%e also replicated the model of India:s 3hite Ae%olution.

Per .a2ita availability of mil3

0ear )*/. )*-. )*-, )*+1 )*,.G )**. gm?day )10 )0+ ))1 ))) )0, )+,

)**0 )**)**+ )**, )*** 0... 0..)$ 0..05

E= Estimated P= Pro isional ! "peration flood #as launc$ed in %&'(

)*0 )*, 0.. 0.0 0.1 0)0 00/ 0/.

O2eration of the dairy farm

3hen it became necessary to milk larger numbers of cows, the cows would be brought to a shed or barn that was set up with bails (stalls) where the cows could be confined while they were milked. 8ne person could milk more cows this way, as many as 0. for a skilled worker. Cut ha%ing cows standing about in the yard and shed waiting to be milked is not good for the cow, as she needs as much time in the paddock gra6ing as is possible. It is usual to restrict the twice& daily milking to a maximum of an hour and a half each time. It makes no difference whether one milks ). or )... cows, the milking time should not exceed a total of about three hours each day for any cow. As herd si6es increased there was more need to ha%e efficient milking machines, sheds, milk&storage facilities (%ats), bulk&milk transport and shed cleaning capabilities and the means of getting cows from paddock to shed and back. Darmers found that cows would abandon their gra6ing area and walk towards the milking area when the time came for milking. This is not surprising as, in the flush of the milking season, cows presumably get %ery uncomfortable with udders engorged with milk, and the place of relief for them is the milking shed.

As herd numbers increased so did the problems of animal health. In "ew #ealand two approaches to this problem ha%e been used. The first was impro%ed %eterinary medicines (and the go%ernment regulation of the medicines) that the farmer could use. The other was the creation of veterinary clubs where groups of farmers would employ a %eterinarian (%et) full&time and share those ser%ices throughout the year. It was in the %et:s interest to keep the animals healthy and reduce the number of calls from farmers, rather than to ensure that the farmer needed to call for ser%ice and pay regularly. 4ost dairy farmers milk their cows with absolute regularity at a minimum of twice a day, with some high&producing herds milking up to four times a day to lessen the weight of large %olumes of milk in the udder of the cow. This daily milking routine goes on for about 1.. to 10. days per year that the cow stays in milk. !ome small herds are milked once a day for about the last 0. days of the production cycle but this is not usual for large herds. If a cow is left unmilked 9ust once she is likely to reduce milk&production almost immediately and the rest of the season may see her dried off (gi%ing no milk) and still consuming feed for no production. ;owe%er, once&a& day milking is now being practised more widely in "ew #ealand for profit and lifestyle reasons. This is effecti%e because the fall in milk yield is at least partially offset by labour and cost sa%ings from milking once per day. This compares to some intensi%e farm systems in the marginal labor costs. Darmers who are contracted to supply li7uid milk for human consumption (as opposed to milk for processing into butter, cheese, and so onsee milk) often ha%e to manage their herd so that the contracted number of cows are in milk the year round, or the re7uired minimum milk output is maintained. This is done by mating cows outside their natural mating time so that the period when each cow in the herd is gi%ing maximum production is in rotation throughout the year. "orthern hemisphere farmers who keep cows in barns almost all the year usually manage their herds to gi%e continuous production of milk so that they get paid all year round. In the southern hemisphere the cooperati%e dairying systems allow for two months on no producti%ity because their systems are designed to take ad%antage of maximum grass and milk production in the spring and because the milk processing plants pay bonuses in the dry (winter) season to carry the nited !tates that milk three or more times per day due to higher milk yields per cow and lower

farmers through the mid&winter break from milking. It also means that cows ha%e a rest from milk production when they are most hea%ily pregnant. !ome year&round milk farms are penalised financially for o%er&production at any time in the year by being unable to sell their o%erproduction at current prices. Artificial insemination (AI) is common in all high&production herds.

Flow diagram of milk processing

RAW MATERIAL

Dump Tank

Clarification

Cooling and storing

Preheating

Standardi ation

Li!uid milk Cream

"#ptional$ %utter

&omogeni ation

'hee

Pasteuri ation Packing Cold storage

Total mil3 2roduction

In India, the market milk industry may be said to ha%e started in )*/.&) when the <entral (airy of Aarey 4ilk <olony was commissioned and went into stream. The industry is still in its infancy and barely ). per cent of our total milk production undergoes organi6ed handling. India=s position in relation to milk producing countries of the world (!ource' D.A.8, )*+.) .ountry Animals !il3 yield?mil3ing in mil3 .!.!.A .!.A Drance India 3. 2ermany 5oland 4millions6 B).0 )B.) ,.+ /1.. /.* -.0 co@?annum 43g6 00.. B)/B 1)1. C H B/. < H )/+ 1++* 01-) Total mil3 2roduction 4&))) = tonnes6 ,0,*.. /0,,.. 1.,B)1 0),1-. 00,/B/ )B,,-.

.F

/.1

1*/.

)1,...

!il3 2roduction in India

The total milk production in the country for the year )**-&*+ was estimated at -,.-million 4T. At this production, the per capita a%ailability was to be 0.g per day against the minimum re7uirement of 0/.g per day as recommended by I<4I. Thus there is a tremendous scope for increasing the production. The population of breeding cows and buffaloes in milk o%er three years of age was -0.-million and B0.B million respecti%ely.

0ear )*/)&0 )*/-&+ )*-)&0 )*-,&* )*+1&B )*+,&*

Production 4!illion tonnes6 )+./ )*.+ 0..B 0).0 01.0 0,.- (estimate)

S2ecies contribution to total mil3 2roduction in India

Ty2e of mil3

Total 2roduction Per cent Amt" 4&))) = tonnes6 ,,B..

<ow

11.-

Cuffalo 2oat

-1.0.,

)/,*.. -,)

Density of mil3 2roduction in India

.ategory Per village State Per sA" 3m 4in. )) kg Assam 0.) kg A%e. ,,kg Indian nion )/.- kg 4ax. B+0 kg (elhi *,.. kg

Summary of utiliBation of mil3 in India

Items Percentage in relation to Total mil3 2roduction Total Auantity converted into Dluid milk 4anufactured milk 2hee (ahi Cutter Fhoa Ice cream <ream 8ther products (4ainly chhana) Daily 2er ca2ita mil3 consum2tion in some develo2ed countries of the @orld 4&*7)6 .ountry Estimated daily 2er ca2ita .ountry Estimated daily 2er ca2ita BB./ //./ 10.+ +., -.1 B.* ..+ ).* ).0 mil3 2roducts & ()..) /,.* )B.. )).B ,., ).1 1.B 0.0

consum2tion in terms of liAuid mil3 4g6 .F Australia "ew #ealand <anada .!.A (enmark Dinland )1)/ ))BB 0.10 ))/, )..1 )),, 0)-/ Drance 3. 2ermany "etherlands "orway !weden !wit6erland

consum2tion in terms of liAuid mil3 4g6 )11/ )1.) ))0) 0.B),)0 )/,,

Daily 2er ca2ita mil3 consum2tion in some develo2ing countries of the @orld 4&*786 .ountry Estimated daily 2er ca2ita consum2tion in terms of liAuid mil3 4g6 Cangladesh /) India ))B Iran )+0 Ira7 )+. .ountry Estimated daily 2er ca2ita consum2tion in terms of liAuid mil3 4g6 Israel /++ >apan )00 5akistan 00/ 5hilippines 0

Standards of different mil3 in India

.lass of mil3 Designation Cocality !inimum D D !/ !S+/ Cuffalo milk Aaw, pasteuri6ed, boiled, fla%oured and sterili6ed & do & Andaman and "icobarI Andhra 5radeshI (adra and "agar&;a%eliI 2oa, (aman and /.. *.. AssamI CiharI <handigarhI (elhiI 2u9aratI -.. 4aharashtraI ;aryanaI 5un9abI ttar 5radeshI 3est Cengal E *..

(iuI Ferala, ;imachal 5radeshI EakshadweepI TamilnaduI 4adhya 5radeshI 4anipurI FarnatakaI "agalandI "$DAI <ow milk & do & & do & 8rissaI 5ondicherryI Aa9asthanI Tripura <handigarhI ;aryanaI 5un9ab Andaman and "icobarI Andhra 5radeshI AssamI CiharI (adra and "agar&;a%aliI (elhiI 2u9aratI 2oa, (aman and (iuI ;imachal 5radeshI FeralaI 4adhya 5radeshI 4aharashtraI TamilnaduI FarnatakaI 4anipurI "agalandI "$DAI 5ondicherryI Aa9asthanI TripuraI ttar 5radeshI 3est 2oat or sheep Aaw, milk pasteuri6ed, boiled, fla%oured and sterili6ed & do & Andaman and "icobarI Andhra 5radeshI AssamI CiharI (adra and "agar&;a%eliI (elhiI 2oa, (aman and (iuI 2u9aratI ;imachal 5radeshI EakshadweepI TamilnaduI FarnatakaI 4anipurI "agalandI "$DAI 5ondicherryI 8rissaI Aa9asthanI TripuraI 3est Cengal !tandardi6ed milk Aecombined milk Toned milk All India 1.. ,./ All India 1.. ,./ All India B./ ,./ 1.. *.. CengalI EakshadweepI 8rissa <handigarhI ;arayanaI FeralaI 4adhya 5radeshI 4aharashtraI 5un9abI ttar 5radesh 1./ *.. B.. 1.. ,./ *..

(ouble toned milk !kim milk & do &

All India All India

)./ "ot more than ../

*.. ,.+

(4D&4ilk fat, 4!"D&4ilk solids not fat)

Indian Dairy Products

Dairy 2roduct: (airy products are generally defined as foodstuffs produced from milk. They

are usually high&energy&yielding food products. A production plant for such processing is called a dairy or a dairy factory. Aaw milk for processing generally comes from cows, but occasionally from other mammals such as goats, sheep, water buffalo, yaks, or horses. (airy products are commonly found in $uropean, 4iddle $astern and Indian cuisine, whereas they are almost unknown in $ast Asian cuisine.
The term Indian Dair( Products refers to those milk products) *hich originated in undi+ided India,

DE83 <;AAT 8D <8"J$A!I8" 8D 4IEF I"T8 TAA(ITI8"AE I"(IA" (AIAK 5A8( <T!
Milk

Cultured -,Shrikhand .,'hee 0,Lassi 2,1ad/i

Condensed Acid -,Mishti dol .,Ra/ri 0,1heer 2,1hoa

Precipitation -,Paneer .,Sandesh 0,Chhana 2,Rasgoola 3,Pantoda

%urfi

Pedha 1alakand 'ula/4amun 5,Rasmalai

!ain article: dairy 2roducts (airy plants process the raw milk they recei%e from farmers so as to extend its marketable life. Two main types of processes are employed' heat treatment to ensure the safety of milk for human consumption and to lengthen its shelf&life, and dehydrating dairy products such as butter, hard cheese and milk powders so that they can be stored.

.ream and butter

Today, milk is separated by large machines in bulk into cream and skim milk. The cream is processed to produce %arious consumer products, depending on its thickness, its suitability for culinary uses and consumer demand, which differs from place to place and country to country. !ome cream is dried and powdered, some is condensed (by e%aporation) mixed with %arying amounts of sugar and canned. 4ost cream from "ew #ealand and Australian factories is made into butter. This is done by churning the cream until the fat globules coagulate and form a monolithic mass. This butter mass is washed and, sometimes, salted to impro%e keeping 7ualities. The residual buttermilk goes on to further processing. The butter is packaged (0/ to /. kg boxes) and chilled for storage and sale. At a later stage these packages are broken down into home&consumption si6ed packs. Cutter sells for about !?10.. a tonne on the international market in 0..+ (an unusual high).LBM

S3immed mil3
The product left after the cream is remo%ed is called skim, or skimmed, milk. Aeacting skim milk with rennet or with an acid makes casein curds from the milk solids in skim milk, with whey as a residual. To make a consumable li7uid a portion of cream is returned to the skim milk to make low fat milk (semi&skimmed) for human consumption. Cy %arying the amount of cream returned, producers can make a %ariety of low&fat milks to suit their local market. 8ther products, such as calcium, %itamin (, and fla%ouring, are also added to appeal to consumers.

.asein
<asein is the predominant phosphoprotein found in fresh milk. It has a %ery wide range of uses from being a filler for human foods, such as in ice cream, to the manufacture of products such as fabric, adhesi%es, and plastics.

.heese
<heese is another product made from milk. 3hole milk is reacted to form curds that can be compressed, processed and stored to form cheese. In countries where milk is legally allowed to be processed without pasteurisation a wide range of cheeses can be made using the bacteria

naturally in the milk. In most other countries, the range of cheeses is smaller and the use of artificial cheese curing is greater. 3hey is also the byproduct of this process. <heese has historically been an important way of NstoringN milk o%er the year, and carrying o%er its nutritional %alue between prosperous years and fallow ones. It is a food product that, with bread and beer, dates back to prehistory in 4iddle $astern and $uropean cultures, and like them is sub9ect to innumerable %ariety and local specificity. Although nowhere near as big as the market for cow:s milk cheese, a considerable amount of cheese is made commercially from other milks, especially goat and sheep (see Ao7uefort cheese for a notable example).

9hey
In earlier times whey was considered to be a waste product and it was, mostly, fed to pigs as a con%enient means of disposal. Ceginning about )*/., and mostly since about )*,., lactose and many other products, mainly food additi%es, are made from both casein and cheese whey.

0ogurt
Koghurt (or yogurt) making is a process similar to cheese making, only the process is arrested before the curd becomes %ery hard.

!il3 2o@ders
4ilk is also processed by %arious drying processes into powders. 3hole milk, skim milk, buttermilk, and whey products are dried into a powder form and used for human and animal consumption. The main difference between production of powders for human or for animal consumption is in the protection of the process and the product from contamination. !ome people drink milk reconstituted from powdered milk, because milk is about ,,@ water and it is much cheaper to transport the dried product. (ried skim milk powder is worth about !?/1.. a tonne (mid&0..+ prices) on the international market.L/M

Other mil3 2roducts

Fumis is produced commercially in <entral Asia. Although it is traditionally made from mare:s milk, modern industrial %ariants may use cow:s milk instead.

S9OT A+AC0SIS O/ I+DIA+ DAI,0 I+D-ST,0 :

Strengths:

Demand 2rofile: Absolutely optimistic. !argins: Ouite reasonable, e%en on packed li7uid milk. /le=ibility of 2roduct mi=: Tremendous. 3ith balancing e7uipment, you can keep on adding to your product line.

Availability of ra@ material: Abundant. 5resently, more than ,. per cent of milk produced is flowing into the unorgani6ed sector, which re7uires proper channeli6ation.

Technical man2o@er: 5rofessionally&trained, technical human resource pool, built o%er last 1. years.

9ea3nesses:

Perishability: 5asteuri6ation has o%ercome this weakness partially. ;T gi%es milk long life. !urely, many new processes will follow to impro%e milk 7uality and extend its shelf life.

Cac3 of control over yield: Theoretically, there is little control o%er milk yield. ;owe%er, increased awareness of de%elopments like embryo transplant, artificial insemination and properly managed animal husbandry practices, coupled with higher income to rural milk producers should automatically lead to impro%ement in milk yields.

Cogistics of 2rocurement: 3oes of bad roads and inade7uate transportation facility make milk procurement problematic. Cut with the o%erall economic impro%ement in India, these problems would also get sol%ed.

Problematic distribution: Kes, all is not well with distribution. Cut then if ice creams can be sold %irtually at e%ery nook and corner, why can=t we sell other dairy products tooP 4oreo%er, it is only a matter of time before we see the emergence of a cold chain linking the producer to the refrigerator at the consumer=s homeQ

.om2etition: 3ith so many newcomers entering this industry, competition is becoming tougher day by day. Cut then competition has to be faced as a ground reality. The market is large enough for many to car%e out their niche.

O22ortunities: NDailure is ne%er final, and success ne%er endingR. (r Furien bears out this statement perfectly. ;e entered the industry when there were only threats. ;e met failure head&on, and now he clearly is an example of Sne%er ending success=Q If dairy entrepreneurs are looking for opportunities in India, the following areas must be tapped'

Falue addition: There is a phenomenal scope for inno%ations in product de%elopment, packaging and presentation. 2i%en below are potential areas of %alue addition'
o

!teps should be taken to introduce %alue&added products like shrikhand, ice creams, paneer, khoa, fla%ored 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.

Addition of cultured products like yoghurt and cheese lend further strength & both in terms of utili6ation of resources and presence in the market place.

A lateral %iew opens up opportunities in milk proteins through casein, caseinates and other dietary proteins, further opening up export opportunities.

Ket another aspect can be the addition of infant foods, geriatric foods and nutritionals.

E=2ort 2otential: $fforts to exploit export potential are already on. Amul is exporting to Cangladesh, !ri Eanka, "igeria, and the 4iddle $ast. Dollowing the new 2ATT treaty, opportunities will increase tremendously for the export of agri&products in general and dairy products in particular.

Threats: !il3 vendors' the un organiBed sector: Today milk %endors are occupying the pride of place in the industry. 8rgani6ed 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 S9OT analysis shows that the Sstrengths= and Sopportunities= far outweigh Sweaknesses= and Sthreats=. !trengths and opportunities are fundamental and weaknesses and threats are transitory. Any in%estment idea can do well only when you ha%e three essential ingredients' entrepreneurship (the ability to take risks), inno%ati%e approach (in product lines and marketing) and %alues (of 7ualityTethics). The Indian dairy industry, following its delicensing, has been attracting a large number of entrepreneurs. Their success in dairying depends on factors such as an efficient yet economical procurement network, hygienic and cost&effecti%e processing facilities and inno%ati%eness in the market place. All that needs to be done is' to inno%ate, con%ert products into commercially exploitable ideas. All the time keep reminding yourself' Cen9amin Dranklin disco%ered electricity, but it was the man who in%ented the meter that really made the moneyQ