Market Milk Industry In India
Munna Iype Joy
BTF-11-222
IICPT

India...
● India is 'The Oyster' of the global dairy industry
● Production cost lowest in India- 27 cents
● US 63 cents& Japan $2.8
● Largest population of cattle in the world(134mn
cows and 125mn buffaloes),
● Has the Total cattle population in the country
as on October'00 stood at 313mn
● Ranks 1st in world milk production (117 million
metric tones)

India...
● The top five milk producing nations in the world are
India ,USA,China, Pakistan& Russia.
● Dairy industry contributes close to one-fourth of
India’s National income
● The milk production in India accounts for more than
17% of the total world output and 57% of total Asia's
production.
● India in the early 1950s was importing around 55000
tons of milk powder annually to meet the urban milk
demand.
● Milk production in India will grow at a CAGR of
around 4% during 2011-15

History
● The first co-operative dairy society in India was
established at Allahabad (UP) in 1913
● The Calcutta Milk supply societies union established
in 1919 was the earliest co-operative organization
● The first large-scale and systematic breakthrough in
dairy co-operatives in India was made in 1948 by
the Kaira District Co-operatives Milk producers
Union Limited at Anand.
● These milk cooperatives of Gujarat today own the
GCMMF, the largest food products business in
India.

History contd..
● GCMMF* owns Amul
● The National Dairy Development Board (NDDB)
was set up at Anand in 1965.
● The NDDB framed a program known as
“Operation flood” assistance provided by the world
Food Program, European Economic Community
(EEC), the World Bank and other international
agencies.
● *GCMMF = Gujarat Co-operative Milk Marketing
Federation

Operation Flood
● One of the world's largest rural development
programmes
● Launched in 1970
OBJECTIVES
● Increase milk production(“ a flood of milk”)
● Reasonable prices for consumers
● To raise rural income.

Three phases
Phase I(1970-80)
● Financed by EEC through World Food Programme.
● Linked 18 major milk producing centres in four major
metropoliten cities( Chennai, Delhi, Mumbai,
Kolkata)
Phase II(1981-85)
● The number increased from 18 to 136.
● By the end of 1985, a self sustaining system of 43K
village co-operatives covering 4.25 million producers
had become a reality.

Operation flood contd..
● Domestic milk powder production increased from
22K to 140K tons.
Phase III(1985-1996)
● Enabled dairy cooperatives to expand and
strengthen the infrastructure required to procure
and market milk
● “Operation flood can be viewed as a twenty year
experiment confirming the Rural Development
Vision”(World Bank Report 1997)

AFTER THE FLOOD
Source:NDDB

AT PRESENT

Source: CSO- 2008 census, CII Dairy Industry Report, PwC analysis

Source: CSO- 2008 census, CII Dairy Industry Report, PwC analysis

TYPES OF MILK IN INDIAN
MARKET
● Whole Milk
● Semiskimmed milk
● Skimmed milk
● 1% fat milk
● Organic milk
● Flavoured milk
● Condensed milk
● Toned milk
● Double toned milk
● Powdered milk

Challenges
Small Holder Level
● Increasing pressure on the land resource
● Lack of good quality animal feed
● Lack of animal health care facilities
● Lack of chilling capacities
● High production cost

Collection level
● Milk base mainly consisting of small holders
● Involvement of too many intermediates
● Lack of infrastructure
● Manipulation of the quality of the milk by the
farmers
Challenges contd..

Procesing level
● Fluctuating supply
● Absence of quality standards
● Adulterations and food safety
● Lack of trained and skilled workers
Storage and Logistics
● Lack of cold storage facilities
● Gap in cold chain and transport facilities
Challenges contd..

Challenges contd..
Co-operative level
● Less number of member farmers
● Lower participation in the decision making
process
● Low prices of milk
● Inefficient services
● Insufficient infrastructure

Future
● In 2010, the government and the National Dairy
Development Board have drawn up a National
Dairy Plan (NDP) that proposes to nearly
double India’s milk production by 2020.

Dairy technology
● Technology is the science and application of
scientific, economic, as well as sociological,
knowledge and legal rules for the production of
raw materials and their further processing into
semifinished goods
● Dairy technology is a combination of theoretical
and practical knowledge based on a scientific
background and the control of processes for the
treatment and conversion of milk into milk products

Dairy Engineering
● Engineering is the application of scientific and
technical knowledge to solve human problems.
Engineers use imagination, judgment and
reasoning to apply science, technology,
mathematics, and practical experience. The
result is the design, production, and operation
of useful objects or processes
● Dairy engineering is the application of
engineering in the field of dairy.

REFERENCES
● National Dairy Development Board
● Govt Of India,PWC analysis
● Edgar Spreer,2005,Milk and Dairy Product
Technology,p3-4
● Sukumar De,1980,Outlines of dairy Technology,
Oxford university Press, New delhi

Thank
You