“India is the largest milk producer and consumer of milk and dairy products in the world” – this is something we have been hearing or listening to for long. But now there is something new to know about! Indian dairy industry is in the process of developing itself to such an extent that by 2030, India will be contributing to one-third of global milk production. This is an initiative at the government level and is going to infuse a great deal of benefits at multiple levels of the industry – starting from the milk farmers to the milk processing plants in India as well. Read through this Indian Dairy Industry news.
Latest Indian Dairy Industry News
The National Dairy Development Board (NDDB) aims to boost India’s milk production, contributing to one-third of the global milk production by 2030, as stated by its chairman, Meenesh Shah on March 02, 2024.
To achieve this ambitious target, breeding, nutrition, and animal health are the key focus areas. India accounts for about a quarter (24%) of the world’s milk production, contributing around 4-5% to India’s GDP. The plan is to increase India’s share to 30% of global milk production by 2030.
Also, before this, the same points were emphasized by Hon’ble Finance Minister Ms. N Sitharamana during her budget announcement. Union Budget 2024-25 aims to boost the Indian dairy industry by primarily targeting the enhancement of milch animal productivity. Therefore, it is clear that the Indian dairy industry is receiving a great deal of appreciation as well as attention from the government hierarchy.
How is the News related to Dairy Processing and Manufacturing in India?
In the announcements, be it by the Finance Minister or the NDDB Chairman, the major aim is to boost the productivity of the milch animals.
If you are wondering about its effect on dairy productivity and processing index, take it from us. It will affect the distribution chain as well as consumer behavior as well! Keep on reading to learn our analysis!
Effect on Milk and Dairy Product Manufacturing Indices
When it is about contributing to 30% of global milk production, it directly refers to increasing the export volume. Do you think that the milk can be exported directly from the cow sheds to distant nations? It’s not possible. Therefore, it needs to be processed and craft products that can have greater shelf life and be exported conveniently.
To execute these, milk processing plants are going to play a crucial role. Therefore, milk and dairy product manufacturing plants in India need to expand their raw milk acquisition, processing, packaging, and storing facilities to meet the requirements. This calls for a significant amount of investment from dairy entrepreneurs to grow their production volume.
This expansion indeed seeks additional investments from industrialists. But, it also promises a higher volume of ROI in addition to exploring new avenues of growth.
Effect on Milk and Dairy Supply and Distribution Chain
Whenever milk and dairy product manufacturing volume increases, the capacity to transport the finished products also seeks expansion. Let us do a simple mathematics. Currently, India contributes to 24% of global milk production. The target is to achieve a 30% contribution level. This is a 6% rise flatly. Avoiding any complex mathematical intervention, let us take that there will be 6 liters of increase in every 100 liters of milk production. Doesn’t this call for an increase of 6 milk tankers for every 100 present currently in the supply chain?
Now a dairy supply chain vertical never simply limits itself to the milk tankers. Various other movable and immovable facilities are going to seek expansion.
Effect on Market and Consumer Behavior
In the above two sections, we explained how the milk production rise will affect milk and dairy products at the manufacturing and distribution levels. In both cases, it is seeking investment and expansion of existing facilities. What if the existing dairy entrepreneurs fail to meet the investment requirements?
This will call for the involvement of new players in the Indian dairy industry. Keeping the basics of the dairy industry regulations constant, every new player can come up with new product development. Therefore, consumers are likely to get a greater variety of dairy products to choose from the market. This will surely disrupt consumer loyalty at a certain point in time.
The involvement of new dairy players will bring with it new pricing policies, quality parameters, taste indices, and product varieties altogether, So many parameters are more than enough to allure consumers to break from their loyalty to the brand they are using for long.
The Bottomline
As these initiatives call for a significant expansion in the Indian dairy industry, it also brings in opportunities with it. Starting from the milk farmers to the dairy industry aspirants all through the supply and distribution chain – there will be opportunities for everyone. Milk farmers are going to get additional veterinary coverage for their cattle with a higher level of credit support to grow their flock. Advanced milk and dairy processing plants in India like Dollon’s are going to have the liberty to acquire more volume of raw milk and boost their ROI. Dairy aspirants, be it at the industrial or professional level, will experience new investment and job opportunities.
Keep visiting our blog for such interesting Indian dairy industry news and insights!
