PGDM(Agriculture) 2011-2013

Presented By : Ms. Chapa Anusha Mr. Dipesh Narayan Kokate Mr. Lokesh Kumar Agrawal

Contents

 Overview  Global milk production  Milk production in India  Milk Per capita Availability in India  Annual growth rate of Milk industry  State wise milk production  Demand projections of livestock production in India  Supply Chain & Marketing Channels  Milk processing in India  Major players in India  Policies  Industry SWOT Analysis  Constraints & Suggestions

Overview

Overview

 India Worlds largest milk producer : more than 15 % of worlds milk production.  World largest consumer of dairy product  1st in milk production.  17th in poultry production  2nd in inland fish production.  6th in sea fish production.  70% of Indian population depend directly or indirectly on dairy industry.  Total GDP share : 8%  Growth rate of milk production : 4%  Consumer demand rate : 8%  Market size of milk and milk products is Rs. 2000 bn.( EUR 30.8 bn.)

Global Milk Production

World Dairy market at a glance
800 Production of milk (Million 700 600 Tonnes) 500 400 300 200 100 0
2008 2009 est imat ed 2010 Forcast ed
Source:

691.7

700.9

713.6

Total Milk Production Total trade

4 0 .5 3 8 .6 4 0 .6

Year

Global Competition In Milk Industry

Milk Production In India

Milk Production in India
140

M ilk Production (M T)

120 100 80 60 40 20 0
2001-02 2002-03 2003-04 2004-05 2005-06

84.4

86.2

88.1

92.5

97.1

100.9

104.8

108.6

112.5

116.2

M ilk Product ion (M illion Tonne)

2006-07 2007-08

2008-09

2009-10

2010-11*

Year
Source : Ministry of Agriculture, Govt. of India. (12682)

Milk per capita availability in India

Milk per capita availability 300 Milk Availability gm /capita/day 250 200 150 100 50 0 1990- 2000- 2005- 2006- 2007- 2008- 2009'91 '01 '06 '07 '08 '09 '10 Years Source: India Stat.
176 220 241 246 252 258 263

White revolution brought tremendous change in dairy industry of India. Total milk production of India increased from 22 mt in 1970-71 to 112.5 mt in 2009-2010 Production increased by 5 times from 1970 to 2010.
Dipesh dairy data\milk production and per capita availability in india.xls

Annual Growth Rate milk industry Annual growth rate of Indian (%) Milk 6 5 %Growth Rate 4 3 2 1 0
Annual Growth Rate (%) Milk
1.64 1.15 4.51 4.11 3.77 5.48

Years
Source : Basic Animal Husbandry Statistics 2004, Dept. of Animal Husbandry & Dairying, Ministry of Agriculture, Govt. of India. (12682)

State wise Milk Production

State wise production in India (Million tonnes) Jammu Punjab Haryana

High
Uttar Pradesh 20.105 Andhra Pradesh 10.43 Rajasthan 9.55 Punjab 9.49

Rajasthan

U.P. Bihar

Gujarat 8.843

Medium
Bihar- 6.044 Haryana 6.006 Tamil Nadu 5.778

Gujarat A.P.

Jharkhand

Karnataka 4.882

Low
Jharkhand-1.475 Jammu-1.514

Karnataka T.N.

Categories: (Million Tonnes)

High : Above 8.0 Medium : 4 8

[ Data sources] FAO

Low : 0 4

Demand projections of livestock products in India

Demand Projections of Livestock Products in India (1993, 2000, 2010 & 2020)
Per cent Annual Growth Rate (19992000) 4.77

Demand projection of Livestock production

200
147.21

P ro d u c t io n

Product

1993

2000

2010

2020

150 100
60.77 94.3

Milk

Milk Mutton and goat meat Beef and buffalo meat Chicken Eggs

46.18

60.77

94.30

147.21

0.83

1.36

3.81

12.72

13.25

50 0

46.18

44.06 24.9

Mutton and goat meat Eggs

9.62

13.88

0.49

0.61

0.84

1.15

3.39

1993

2000

2010

2020

0.25 9.62

0.33 13.88

0.52 24.90

0.81 44.06

4.67 6.02

Year

Source-Ministry of Agriculture, Govt. of India

Dairy Industry in India

Indian Dairy Industry:

Organized (20%)

Unorganized (80%)

Private Dairies (532)

Cooperatives Societies (254)

Government (46)

Supply chain of Indian dairy cooperatives

Milk
Input for Dairy Milk Production Milk Collection Chilling & Bulk Cooling Transportation Of Chilled Milk Processing & Packaging Transportation Marketing Of packaged & Consumers Milk Distribution Product

Large Scale, Medium scale, Small & marginal Farmers

Chilling of milk at Chilling centre At village level Bulk cooling District level

Co.-operative dairy Plant Pvt. Dairy Plant Gov. dairy plant

Own retail outlets Super market Any retail outlet

Fodder Farmers Animal feed plant owners Veterinary aid Labour

Organized sector Co-op. Societies Contractors of Pvt. Dairies

Refrigerated van Insulated milk tankers of Private,Govt., Cooperative

Refrigerated van Insulated milk tankers of Private,Govt., Cooperative

Unorganized Sector Local Milk man Doodhiya

Mithaiwala Restaurant Money

Value added products Like sweets

Marketing channels in India

Milk Processing in India (2009-10)

Milk Processing in India
22% Retention by rural consumers/sale to rural non-producers Sold as loose milk in urban areas

41% 5%

Packed liquid milk

Value added milk products 15% Value added milk products( Mostly traditional Indian milk Products)

Source: Rebobank analysis

17%

milk Processing in India.xls

Source: Rabo bank 2009

Major players in industry

The packaged milk segment is dominated by the dairy cooperatives. Gujarat Co-operative Milk Marketing Federation (GCMMF) is the largest players State Cooperatives:- A.P. Dairy development Cooperative Federation Haryana Dairy development Cooperative Federation ltd, Rajasthan Cooperative Dairy Federation ltd. Other local dairy cooperatives : Gokul, Warana in Maharastra Saras in Rajasthan, Verka in Punjab, Vijaya in Andhra Pradesh, Aavin in T.N, MILMA, Kerala  Other private players : J K Dairy, Heritage Foods, Indiana Dairy,.,,

Contd
Liquid MilkPrivate players- Hastur Agro, Cream line Dairy. Domestic Players-Reliance , DSCL , Cavincare. ButterAmul ( Market leader 80% share) Other strong regional players- Mother Dairy , Vijaya , Veska , Parag Dairy Ice creamGCMMF (market leader 25%), kwality walls (15%),Vadilal (10%) Mother Dairy, Hindustan Dairy,Dinshaw CheeseGCMMF (market leader 70%), Bongrain (France) subsidiary Dabon International pvt. Ltd. GheeAmul, Saras Nandini, madhusudan

THE ANAND PATTERN

State Marketing Federation (All Dairies In A State)

District Milk processing union

(In Every dist.)

Village Co-operative Society (All villages In A Dist.)

THE GCMMF PATTERN

State Marketing Federation (All Dairies In State)

District Milk Processing Union

(In Every district)

Village Co-operative society (All Villages In A dist.)

Milk Producers (All Milk Producers In A Village)

\ supply Chain Nestle Milk h

Policies

Intensive dairy development scheme (IDDP) To enhance milk production ,improve the entire dairy supply chain by providing financial aids. 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 AI 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)

Indian dairy industry role towards foreign investors

India is a land of opportunity for investors looking for new and expanding markets. Dairy processing holds immense potential for high returns. Growth prospects in the dairy food sector are termed healthy. The basic infrastructural elements for a successful enterprise are in place.
Key elements of free market system raw material (milk) availability an established infrastructure of technology supporting manpower Fast growing market such as India, along with an export potential in the Middle East, Singapore, Malaysia, Indonesia, Korea, Thailand, Hong Kong and other countries in the region.

Country wise Export of India

Share Of Dairy Products Exports 09

HS0401-Milk & cream not con. Nor containing added sugar. HS0402- Milk & cream con. Or containing added sugar. HS0403- Butter milk curdled milk cream. HS0404- Whey . HS0405- Butter &other fats. HS0406- Cheese & curd. HS3501- Casein & casein derivatives. HS170211- Lactose & lactose syrup. HS21050000- Ice cream & other edible ice.

Indian Share Of Dairy Product Imports 09

HS0401-Milk & cream not con. Nor containing added sugar. HS0402- Milk & cream con. Or containing added sugar. HS0403- Butter milk curdled milk cream. HS0404- Whey . HS0405- Butter &other fats. HS0406- Cheese & curd. HS3501- Casein & casein derivatives. HS170211- Lactose & lactose syrup. HS21050000- Ice cream & other edible ice.

Industry SWOT Analysis

Strengths
Very large number of animals & huge

Weaknesses
Quality of milk is

a major concern scope for enhancing productivity. Logistic and procurement Large number of small & marginal farmers. Lack of control over yield Diversified weather situation. Huge competition Nutritious diet. Shelf life of milk

Opportunities Threats
Increased health consciousness among the

peoples. Availability of large domestic as well as foreign market. Entry of big corporate in the industry. Food processing industry development

Reducing grazing land Epidemic and

fatal diseases Growing popularity of soy milk

Constraints
          Supply chain of indigenous market Lack of good quality animal feed Lack of animal health care facilities Lack of genitical potential of animals Lack of chilling facilities High production cost Lack of financial support Less penetration to the rural market Lack of transparent milk pricing system Insufficient infrastructure

Suggestions
Enforce price setting of milk based on Fat & SNF content.  Develop infrastructure and training for hygienic milk production.  Support to Dairy as an enterprise to encourage commercial dairy farming, production & productivity by extension & breed development.  Enhance packaged milk penetration. Govt. should secure protected pasture land.  Strictly implement quality regulations.  Strengthen dairy farmers co-operatives to enable farmers to get a higher price.

Thank You