Overview of Indian Dairy Industry

1. India is the world’s largest producer as well as consumer of milk and milk products. India nevertheless faces a shortage of milk and milk products due to increasing demand from the fast-growing middle class in the country NextWave Research Solutions (www.nextwavers.com) is a leading market research companies in Pune, India and has prepared a report on the Dairy Industry in India. The following are the key excerpts from the report. ● There are currently about 15 million milk producers in India, who are members of about 150,000 village dairy cooperatives. ● Milk demand in India is expected to rise to 200 MT by FY22, which requires incremental 5 MT milk production every year. ● In the organized dairy industry, the cooperative milk processors have a 60% market share. The cooperative dairies process 90% of the collected milk as liquid milk whereas the private dairies process and sell only 20% of the milk collected as liquid milk and 80% for other dairy products with a focus on value-added products.

2. Dairy Industry in Maharashtra In Maharashtra, the private sector controls around 60% of the market, the cooperative dairies have a 40-odd% share, with the government is a marginal player. ● While the private sector procures around 50 lakh litres of milk daily from producers, the cooperative sector purchases around 36 lakh litres, with the government has a minuscule share of the market with just around 2 lakh litres. ● In terms of milk production, Maharashtra is ranked fifth with about 7% share across India in total milk production, of over 146 million tonnes. ● Dairy Industry in Gujarat ● Gujarat contributes 8% to total milk production in India and is ranked third in this regard. ● The Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is the apex organisation of the dairy cooperatives of Gujarat. It is the exclusive marketing organisation for products under the brand name of Amul and Sagar. ● GCMMF members include 17 District milk cooperatives. The milk handling capacity is 24 million litres per day and the average daily milk collection is 16.94 million litres. ● The Gujarat dairy market is a stronghold of GCMMF but there are also smaller private players like Vimal Group, Jain Dairy, Maahi and Flourish Purefoods. Abbas Naqvi, Director – Research, NextWave Research Solutions, www.nextwavers.com