1 OVERVIEW
Indian dairy industry has been at the forefront with impressive growth rates and immense potential for an effervescent future. The industry has evolved completely with the focus drifting from basic fluid milk and clarified butter & ghee to more advanced value added products like cheese, ice cream and, the more modern, yogurt.
This report aims at simplifying your research to a single step by providing the requisite information handy. It uncovers the industry from various parts like value driver’s, growth inhibitors, demand-supply scenario, porters 5 force analysis and other vital statistics.
Firstly let’s have a succinct view of the global scenario of the dairy industry.
1.1 The Global Dairy Industry
The global dairy industry is composed of a multitude of countries with unique production practices and inimitable consumer markets. The global dairy industry revenues are estimated at ~ USD 300 million in 2011 and are anticipated to cross USD 375 million by 2016.
Figure 1 World's Cow Milk Production (2010-12, In Million Tonnes)
World total cow milk production stood at 620 million tonnes in 2012, of which US was a major contributor with nearly 15% of the total share.
1.2 Indian Dairy Industry
Indian dairy industry holds an inimitable space in the country for its high employment potential and for ensuring the availability of nutritious yet affordable food for India’s vast population. India is the largest producer as well as largest consumer of milk in the world. It contributes ~17% to the world milk production and consumes almost whole of its milk production by itself.
The tag of largest milk producer was not always in India’s kitty. From being milk impoverished nation to the top producer has been an arduous and almost miraculous climb. Such unprecedented rise is docketed to Operation Flood and the historic dairy cooperative movement. During the pre-independence period dairy cooperative movement was limited to a few pockets of Kolkata, Chennai, Bengaluru and Gujarat. But post the independence Government took great initiative in setting up new Dairy Co-operatives in many parts of the country and The National Dairy Development Board (NDDB) was set up to take the lead.
The Operation Flood Programme was undertaken after the National Dairy Development Board had been formed in 1965. The programme was aimed at bringing the shortage of milk supply in the four Metropolitan cities of Kolkata, Mumbai, Chennai and Delhi into agreement with the abundance of milk production in adjoining villages of the cities.
The industry has been retorting positively to the changes in the consumer preferences towards value added products and has been growing at a steady rate.
1.2.1 Structure
In India, only 20% of the milk production takes place in the organized sector while the rest is contributed by the unorganized segment of the industry.
The chart below discusses the structure of Indian dairy industry.
Figure 2 Indian Dairy Industry- Structure
1.2.2 Classification
Figure 3 Indian Dairy Industry- Classification
Scope of the report