Chapter: 1

Introduction to the
Industry

GLOBAL DAIRY INDUSTRY

(1) Introduction
The dairy industry is one of the most important components of the world food
system, and is undergoing dramatic change at the current time. Currently processes of
change are being driven by a wide range of forces including shifts to the regulatory
environment for dairy production and trade, technological changes to the production of
milk and milk-products, rapidly shifting consumption trends, and the restructuring of
transnational corporate strategies with regard to this sector. It is highly probable that
within ten years, the global dairy industry will be scarcely recognizable from its current
form.
International trade will now be strongly governed by WTO guidelines, which
should hopefully remove the disparity between the prices of the milk products from the
foreign countries enjoying the subsidies from their government and the countries not
having any government subsidies, to ensure a level playing field.

(2) Global Production:

International dairy trade is very small. In August 2002, International dairy trade is
only 8% of milk equivalent of the global milk production of 578 million tones of dairy
products. Most of international trade is in the form of bulk commodities such as:
a) Milk power
b) Cheese
c) Butter / butter oil
d) Condensed milk
e) Casein

The market shares of major dairy exporters are detailed below:

EU

38%

New Zealand 31%

Australia

12%

USA

05%
Approximately 87 million tonnes is accounted for by buffalo, goat and sheep milk

(these products being significant in some nations, notably India and Pakistan). Rest of the
milk production is come from cow milk (85%). The estimate of world total production
however probably understates actual output, because of difficulties in enumerating
production levels outside of the market.
In countries such as India and those in Africa and the former Soviet Union,
considerable quantities of milk and dairy products are manufactured for individual,
household or village consumption, and hence are not recorded within market statistics.
Hence, whereas it was estimated that in 2002 India produced approximately 70
million tonnes of dairy products and in August 2004 this figure reaches to 78 million
tonnes.
According to FAO statistics, of the world milk production of 578 million tonne
(MT), roughly two-thirds is concentrated in the developed countries. The East European
block and West Europe together account for 18 percent and South Asia, including India,
17 per cent. North America, consisting of the US, Canada and Central America, produces
24 per cent, the Oceania countries produce 4 per cent, while the rest is from the
remaining countries. About 85 per cent of the world production comprises cow milk and
only 11.6 per cent is buffalo milk, and 3.4 percent consist by other, mostly confined to the
South Asian countries.

(3) The industrial structure of the dairy industry:

Dilemmas for cooperatives Dairy farmers are highly dependent upon having a
local processing facility to buy their product, because milk rapidly deteriorates prior to
processing. Traditionally this has encouraged the development of cooperatives in the
dairy sector. Cooperatives emerged worldwide in this industry as a means to alleviate the
vulnerability of dairy farmers. By pooling there resources and operating their own
collectively owned dairy-processing factory, dairy farmers are able to minimize their
market risk. This is known as the principle of countervailing power. Cooperative rules
usually require the compulsory purchase of all members product. Hence, by becoming
members of a local cooperative, dairy farmers have been able to ensure an outlet for their
highly perishable product.

INDIAN DAIRY INDUSTRY

(1) Introduction:
The Indian Dairy Industry has made rapid progress since Independence. A large
number of modern milk plants and product factories have since been established. These
organized dairies have been successfully engaged in the routine commercial production
of pasteurized bottled milk and various Western and Indian dairy products. With modern
knowledge of the protection of milk during transportation, it became possible to locate
dairies where land was less expensive and crops could be grown more economically. The
country has risen itself from a milk starved state to a self-sufficient dairy nation and is
now poised to enter in to the global market.
Today, India is the largest producer of milk with the share of 16% of the total milk
production. Milk production in India has been growing at an average of 5.6 % P.A. India
contributes to world milk production rise from 12-15 % & it will increase up to 30-35%
(year 2020)
As India enters an era of economic reforms, agriculture, particularly the livestock
sector, is positioned to be a major growth area. The fact is that dairy industry could play a
more constructive role in promoting rural welfare and reducing poverty. For example,
milk production alone involves more than 80 million producers, each raising one or two
cows/buffaloes. Cattle also serve as an insurance cover for the poor households, being
sold during times of distress.

The other side is Indian has not been able to make any dent in the international
market. Indians share in the global trade is less than 1% in spite of being the largest
producer of milk, contributing to about 13% of the world milk production. The major
reasons for this dismal scenario are inadequate quality of both raw milk and finished
products and high cost of production.
Indian Dairying has several in-built competitive advantages, which, if channeled
in properly, would lead to manifold growth of the industry not only in India but also in
other countries.

(2) Dairy industry profile:

Number of animals (in thousands)
Sheeps
45000
Buffaloes
79500

Goats
119242
Horses
990

Pigs
11780
Mules
1742

Chickens
435
Camels
1520

Cattle
194655

Human Population

80 million dairy farmers

Milk production

78 million tonnes (203.5 million 1 pd)

Average annual growth rate

5.6%

Per capita milk availability

118 ml/day (August 2004)

Milch animals

Approximately 275 million, 80 million buffaloes(Highest in the

world)

Cattle feed production

1.95 million tones

Turnover

of

veterinaryRs. 550 crores

pharmaceuticals
Dairy plants throughput

20 mlpd

(3) Supply matches demand:

Milk production in India
Year
Milk production (Million tonnes)
1950
17.0
1960
20.0
1968
21.2
1973
23.2
1980
31.6
1990
53.9
1995
66.3
1996
70.8
1997
74.3
1998
78.0
1999
81.9
2000
86.0
2001
84.6
2002
80.0
2003
77.3
2020(Projected)
250

Efforts to increase milk production by dairy farmers are strongly influenced by

the degree to which demand signals are transmitted through the marketing system.
Cooperatives have played an important role in transmitting the message of urban market
demand to them. Since the demand in the urban scenario is rapidly increasing, so the
farmers generate the supply.

(4)Surplus capacity:
Further, the new dairy plant capacity approved under the Milk & Milk Products
Order (MMPO) has exceeded 100 million liter per day. The new capacity would surpass
the projected rural marketable surplus of milk by about 40 per cent by 2005 AD.

(5)Major Players:
Over 300 dairies in the organized sector in India; Of this - 90 in the public sector,
105 in co-operative sector and 45 in the private sector

HISTORY OF DAIRY INDUSTRY

India's modern and organized milk supply dates back to December 15, 1950,
when the Aarey Milk Plant in Bombay launched the supply of pasteurized and bottled
milk for the first time in the country. Subsequently, over the years, the share of organized
sector in milk processing and distribution increased.
The per capita availability of milk in India was 172 gm per person per day in
1972, which rose to 182gm in 1992 and 203 gm in 1998-99, but is still below the world
average of 285 gm and less than 220 gm recommended by the Nutritional Advisory
Committee of the Indian Council of Medical Research.
Today per capita milk availability is 118 ml/day. Milk production was more or
less stagnant during the 1950s and 1960s and annual production growth was negative in
many years. The per capita availability of milk declined which concerned the policy
makers. During the second-half of the 1960s the government of India made major policy
changes in dairy sector. This single policy initiative of the government gave a boost to
dairy development through:
Linking-up rural producers with the urban consumers through pricing,
procurement, processing and marketing, which reduced transaction costs, and Large
public investment in milk processing sector (chilling plants, milk processing and product
manufacturing plants) through cooperatives acted as a catalyst to bring about the
revolution.

The performance of Indian dairy sector over the last three decades (post-OF
Period) has been extremely impressive. The milk production in the country has more than
trebled to over 80 million tonnes between 1970-71 and 2000-01 with an average increase
of about 4.5 per cent per annum, which in comparison to worlds rate of about 1 per cent
is much higher. Though India has become the largest milk producing country in the
world, its position in terms of per capita availability is one of the lowest. The per capita
availability of milk was about 124 Gms per day in 1950-51, and declined to 112 Gms per
day in 1970-71. But the dairy sector took a leap forward after 1970-71 and per capita
availability of milk increased from 112 Gms in 1970-71 to about 214 Gms per day in
2000-01, today it is 118ml/day.

10

SUPPLY AND DEMAND

A recent survey has revealed that on average, an Indian family allocates 17 per
cent of the household food expenditure on milk and milk products, with rural families
allocating 15 per cent and families in the urban area allocating over 18 per cent. As
income continues to increase, it is predicted that the demand for milk is going to rise
faster than seen in the previous decade. Moreover, the overall demand is growing rapidly
compared to milk production. The higher GDP growth rate, enhanced income of rural
households and the farm debt waiver are influencing the demand for milk both in the
rural and urban areas.
Apart from the rapidly increasing demand for milk and dairy products, other
reasons such as the increased cattle feed cost and low availability of dairy farm labor in
the rural areas have also resulted in increase in the cost of production. It is estimated that
the demand for milk will grow at7% per annum at current rate of income growth, while
the growth in milk production is likely to continue at the present rate of 4.4% in the near
future.

11

WTO TREND
Implications of the WTO-induced trade liberalization for a country will be made
clear by examining how the amount of trade and world price of the commodity has
behaved in the post WTO phase and also how it is likely to behave in the future. The
world trade in commodities is supposed to increase after implementation of the market
access provisions of the WTO Agreement on Agriculture. Though there was a fear that
following ratification, world trade would suffer as member countries could impose high
tariffs while replacing the non-tariff-barriers. To avoid this situation, TRQs was imposed.
There are also studies (e.g., Hathaway D.E. and M.D. Ingco 1996) to estimate the likely
expansion of trade following implementation of the WTO Agreements. This particular
study has calculated new access as a percentage of trade for commodities like wheat, rice,
maize, sugar, beef and poultry for which the estimate varied between 0.4 per cent (sugar)
to 7.5 (rice) depending on the level of protection for these commodities. No estimate has
been

12

It appears from the above discussion that during the post WTO period the
proportion of trade for a majority of milk products fluctuated; there has been only a
marginal increase in the trade of SMP and cheese during the reference period. The
primary reason for an insignificant increase in the world trade is the neo-protectionist
strategy adopted in various ways by the WTO member countries, which aimed to halt the
process of trade liberalization.
Of the protectionist measures, particularly important is the high tariff rate for
primary commodities. Konandreas (1999) presents in tabular form the manner in which
primary products in general and dairy products in particular have been subjected to high
tariff peaks in the developed countries, for example, in dairy products Canada tops the list
with 253 percent, followed by Japan 158 per cent, United States 94 per cent, and the
European Union 82 per cent. Most of these developed countries have also kept their
options for SSGs open.
Apart from a scaling down of the high tariff, in the existing tariff reduction
commitments there is also scope for reducing import tariffs selectively. In the existing
tariff rate reduction formula the lowest tariff receive the highest cut in order to maintain
an average reduction of tariffs without making a significant impact on the effective
reduction of the tariff rate.

13

TREND IN NPC FOR THE INDIAN DAIRY INDUSTRY

The NPCs indicate that the level of protection for all the milk products have been
positive (greater than one) barring a few years like 1999 and 2001 when the NPC was
less than one for the selected products like cheese and SMP. The world prices for SMP
and cheese during the aforesaid years were on the higher side. The NPCs have in general
been higher for butter, for most of the years the protection being more than 50 per cent
(NPC more than 1.5), though there were periodic improvements in the level of protection.
In general butter is more protected in the trading countries such as India, EU and the US
(see earlier section). It appears that the world price of butter is ruling at a lower level;
perhaps due to its decreasing market potential as it is fat-rich while the consumers
preferences in developed Countries are switching towards protein-rich milk products like
cheese.

14

Cheese and SMP had a similar level of protection during the earlier year of
reference (1993); subsequently, NPCs for these products started diverging. The overall
trend in NPCs for these products was similar. The level of protection for SMP was in
general lower (less than 40 per cent) than the other milk products. A decreasing trend in
NPCs after the year 1998 was noticed; this was probably the year when TRQs was
imposed for SMP. The lower level of protection for an essential milk product like, SMP is
obvious. An earlier study (Jhaetal. 2000) shows that in India even though milk products
are a protected item, the price of milk in the country has been one of the lowest in the
world. This suggests significant inefficiency in the processing of milk and milk products
in the country.

15

Chapter: 2
Background
of the study

16

NEED OF THE STUDY

Indian dairy industry growing fastely and it is also stand higher growth rate as
compare to world dairy industry. Consumer demand is also increase as a population
increase. So that it is important to study the dairy industry with special reference to
pannier & cheese segment because is its by product.

SCOPE

Product development should be possible from this kind of project

Customer aware about new product specification
Retailer are also know about what product are available for at a time
The study helps out in having retailers view, consumer quality service.
Objective

Carry out a brief study on Indian Dairy Industry.

To know about the real situation of the organization.
For getting the knowledge about practical work.
To know which procedure is to be followed by the company for their work.
To know which item contain higher value & how their cost, need should be taken
care.

How the inventory managed.

To know the segment of different product of dairy industry.
To know which advertisement tool is mostly preferred by people.
To know the factor which affects consumers buying behavior.
To know the cost of production and how to reduce it.
17

BUTTER PROCESS

Milk & cream

Collected from cows. Butter can also be produced from the milk of buffalo,
camel, goat, ewe, and mares. Cream is separated from the milk. The cream can be either
supplied by a fluid milk dairy or separated from whole milk by the butter manufacturer.
The cream should be sweet (pH greater than 6.6), not rancid, not oxidized, and free from
off flavors. The cream is pasteurized at a temperature of 95C or more to destroy
enzymes and micro-organisms.

Ripening

Sometimes, cultures are added to ferment milk sugars to lactic acid and desirable
flavor and aroma characteristics for cultured butter. This is more common in European
butters.

Aging

Cream is held at cool temperatures to crystallize the butterfat globules, ensuring

proper churning and texture of the butter. In the aging tank, the cream is subjected to a
program of controlled cooling designed to give the fat the required crystalline structure.
18

As a rule, aging takes 12 - 15 hours. From the aging tank, the cream is pumped to the
churn or continuous butter maker via a plate heat exchanger which brings it to the
requisite temperature.

Churning

Cream is agitated, and eventually butter granules form, grow larger, and coalesce.
In the end, there are two phases left: a semisolid mass of butter and the liquid left over,
which is the buttermilk.

Draining & washing

Thus the cream is split into two fractions: butter grains and buttermilk. In
traditional churning, the machine stops when the grains have reached a certain size,
whereupon the buttermilk is drained off. With the continuous butter maker the draining of
the buttermilk is also continuous.

After draining, the butter is worked to a continuous fat phase containing a finely
dispersed water phase. It used to be common practice to wash the butter after churning to
19

remove any residual buttermilk and milk solids but this is rarely done today. This
washing process would ensure that all the butter milk is washed out of the butter.
Otherwise the butter would not keep and go rancid.

Salting & working

Salt is used to improve the flavor and the shelf-life, as it acts as a preservative.
Further, the butter is worked to improve its consistency.

Packing & storage

The butter is finally patted into shape and then wrapped in waxed paper and then
stored in a cool place. As it cools, the butterfat crystallizes and the butter becomes firm.
Whipped butter, made by whipping air or nitrogen gas into soft butter , is intended to
spread more easily at refrigeration temperatures.

CHEESE PROCESS
STEP 1: Milk from Amish Farms

These farms still practice the traditional methods of farming passed down for
generations. Our farms do not use artificial growth hormones such as BST or BGH which
we feel provides a healthier product for you the consumer.

20

STEP 2: Milk Receiving

Milk is brought in daily from the Amish Farms in traditional milk cans. The cans
are then emptied and the milk is weighed, cooled to 38 degrees F, and pumped into a
large milk storage tank. Farmers are paid for the quantity of milk they ship daily.
STEP 3: Standardization and Clarification
Milk is pumped through a centrifuge which performs the following steps:
Clarification - unwanted elements are removed from the fluid milk StandardizationIf
cream or milk fat is to be removed from the milk, it is done at this time.The removal of
cream lowers the fat content of the cheese being made.

STEP 4: Pasteurization

The milk is heated to kill unwanted bacteria which are found naturally in milk.

21

STEP 5: Cheese Cultures Added to Milk

Cheese cultures give the milk the desired bacteria that are needed to start the
transition of milk to cheese. These cultures contribute to the taste of the cheese. In Yogurt
Cheese, yogurt cultures are added to the milk instead of cheese cultures.
STEP 6: Coagulant is added to Milk
Coagulant is needed to change the milk from a liquid to custard like gel. Nonanimal rennet is used to manufacture Heini's Cheese.
STEP 7: Cutting Milk Gel into Cheese Curd
The Master Cheese maker chooses the proper consistency of gel and cuts it into
small pieces which are then called cheese curd. These pieces are approximately one half
inch in diameter. The liquid produced when cutting gel into curd is called whey. At this
step it is no longer milk but the first stage of cheese.
STEP 8: Cooking Cheese Curd
Curd is cooked to 100 degrees F for Colby type cheeses or 120 degrees F for
Swiss and Baby Swiss. These temperatures are achieved within 30-40 minutes.
STEP 9: Draining of Whey and Cooling of Cheese Curd
Cheese curd and whey are then pumped from the cooking vat into a finishing
table Most of the whey is drained from the mix of curds and whey. The curd is then
washed with the addition of water which gives the cheese a smoother flavor.

22

STEP 10: Salting Cheese Curd

The remainder of whey and the water used to wash the curd is drained leaving
only curd. Salt is then added for the purpose of flavor and as a natural preservative.
STEP 11: Hooping of Cheese Curd
The curd is then removed from the finishing table and placed into stainless steel
forms which are called hoops. The hoops give the cheese its distinctive shape. Two
different size hoops are used. A cylinder shape which weighs 13 lbs. and a cube shape
which weighs 40 lbs.
STEP 12: Pressing of Cheese Curd
Cheese hoops are then placed in presses which force the remainder of the whey
out of the cheese curds and press the curd into a solid mass. Cheese remains under
pressure for a minimum of 12 hours.
STEP 13: Packaging
The following day the cheese is removed from the cheese hoops and bagged. Air
is evacuated from bag and the bag is sealed and put into cases. The cases are then
palletized and put into a large cold room where it is stored at 38 degrees F until cut into
smaller pieces, repackaged and shipped to your neighborhood grocery store.

23

CHAPTER: 3
MAJOR PLAYERS
IN THE SEGMENT

24

PRODUCT PROFILE
Butter product

Manufacturing Industry

Churned Butter

Amul dairy

Sweet butter

Nestle

Light butter

Britannia

Cultured butter

Sagar

Other

Anand
Kamdhenu Dairy & food
Other

Cheese product

Manufacturing Industry

Mozzarella cheese

Amul Dairy

Cheddar cheese

Madhur Dairy

Feta cheese

Sagar Dairy

Goat cheese

Jai Hind Dairy

Cream cheese

Vidhya dairy

Other

Other

25

Butter Product Life Cycle:

Butter has been the market leader since past many years. The many competition
has failed to beat butter in the market. The product life cycle curve of butter shows that
butter is at its maturity stage. Diagrammatically, it could be represented as:

26

1. AMUL

Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat,

India. The word Amul is derived from the Sanskrit word amulya, meaning rare, valuable.
The co-operative was initially referred to as Anand Milk Federation Union limited hence
the name AMUL.
Amul is an Indian dairy product company based at Anand, Gujarat, founded by
Verghese Kurien in 1946. The word Amul refers to priceless and it is abbreviated form
of Anand Milk Union Limited. It is one of the best dairies in India.
It has provided employment to the people of its village Kaira at Anand. They
make various milk products such as milk toast, milk bread, cookies and many more
things.

27

Strength:
High brand equity and top of the mind brand
Strong network of over 3 million milk producers
Worlds largest manufacturer of pouched milk
Market leader in butter segment
Successful advertising and marketing campaigns
Strong network of Amul retail outlets, stalls and parlors

Weakness:
Low market share in chocolates segment
Strong competition from international & domestic players in the ice cream segment
means limited market share

Opportunity
Introduce new products in the chocolate segment
To tap the untapped market, increase its reach in rural markets
Rise in purchasing power of Indian people

Threats
Strong competition from international players
Economic slowdown and inflation

28

2. MOTHER DAIRY

Mother Dairy was founded in the year 1974, headquartered in Delhi. At Mother
Dairy, processing of milk is controlled by process automation. They use microprocessor
technology to produce high quality products and to completely automate all functions of
the milk processing areas.

The dairy make products in huge varieties such as ice-creams, dahi, chocolates,
juices and fruit beverages made of milk etc.

Mother Dairy markets approximately 4.8 million liters of milk daily in the
markets of Delhi, Mumbai, Saurashtra and Hyderabad. They have a market share of 66%
in the branded sector in Delhi where it sells 2.3 million liters of milk daily and undertakes
its marketing operations through around 14,000 retail outlets and 845 exclusive outlets.
As of April 2013, the dairy commands 71% and Amul commands 29% of market.
Website: http://www.motherdairy.com/

29

Strength
A well-recognized brand name
Popular subsidiary brands like Dhara, Safal, b-Activ, etc.

A wide variety of products like milk, dairy products, fruits, vegetables, groceries,
edible oil, beverages, frozen food, etc.

Strong and efficient supply chain network

Popular for its quality and affordable price
Technological advancement

Weakness:
Vegetables and milk products are perishable
Difficult to maintain competitive pricing
Limited number of Mother Dairy and Safely outlets

Opportunity
Open more number of Mother Dairy outlets
Market and advertise the products
Increase its market share by expansion in untapped markets
Continuous demand of dairy products and other products by Mother Dairy

Threats:
Strong marketing muscle by competitors
Unstable economic condition in India

30

3. AAVIN

Aavin was established in 1958 at Tamil Nadu and it is a Trademark of Tamil Nadu
Co-operative Milk Producers Federation Limited. Aavin produces 4 varieties of milk
Toned milk, Doubled toned milk, Standardized Milk, Full Cream Milk. Their objective is
distribution of quality milk and milk products to the consumers at reasonable price.

Website: http://www.aavinmilk.com/organisation.html

31

STRENGTH

High popularity of trade name i.e.,-Aavin

Highly reputation for quality
Non-adulteration
Highly skilled employees
Huge demand for Aavin product
WEAKNESS

Lack of man power

Lack of awareness among milk pouring members
Increasing number of dormant societies
Improper staffing in member societies
Lack of sales promotional activities
OPPORTUNITIES

Huge demand for dairy products

Product diversification
Attracting foreign customers
Availability of skilled workers and policy support

32

THREATS

Continuous reduction of milk to union from pouring members

New player in market with high advertisement
Political interference
4. DUDHSAGAR DIARY

Mehsana District Co-operative Milk Producers Union Ltd.is knew as Dudhsagar

dairy which is located at Mehsana in Gujarat. The company aims to provide quality
products to its customers. They established recently two milk processing plant at Kadi
and Hansapur.

Dudhsagar Dairy is the largest dairy in Asia, processing on an average 1.41

million kilograms of milk each day. It has established a network for procuring milk from
4,500,000 milk producers through 1150 village milk cooperatives.

Today, Dudhsagar Dairy has a membership of over 520,000 dairy farmers. Its
consolidated turnover in 2012-13 was more than Rs. 34 billion. The union procured
614.7 million kg of milk during 2012-13 at an average milk procurement of 3.2 million
kg of milk per day during peak season.

33

.
Website: http://www.dudhsagardairy.coop/

STRENGHTS

High Standard production of products

Sound R & D
Continuously quality inspection of products
Location of Company
Brand name of the product
WEAKNESSES

Product price is more so that lower people cannot afford.

OPPORTUNITIES

Global market

34

Opportunity to enter into Niche market

Back up from past references

THREATS

Global competitions

Introduction of new kind of raw materials with cheaper rate

Governments support

Communication gap between seller and buyer

CHAPTER: 4
DEMAND
DETERMINANTS
35

OF DAIRY
INDUSTRY

36

DEMAND CONDITION
Demand for dairy products in India is likely to grow significantly in the coming
years, driven by more consumers, higher incomes and greater interest in nutrition.
Consumption of processed and packaged dairy products is increasing in urban areas.
Because of the increasing competition from the private sector, several national and
international brands have entered the market and expanded consumers expectation of
quality although only among a small proportion of the population. In many parts of the
country, people still prefer unpacked and unprocessed milk delivered by a local milkman
because of its taste and the perception of freshness. The price elasticity for milk is high,
thus demand for milk is very sensitive to price increase in production that will reduce the
price gap, to generate further demand.

GROWTH DRIVERS

Milk and milk products are daily consumption items in India and fall under FMCG
category which has average growth rate of 12 to 15% in India and 5 to 7 % in the
Global market.

Demand for Organic milk and milk products will grow initially at a slower rate than
ordinary milk products due to its higher pricing level and small volumes.

Consumers outlook for food products is becoming more precise and definite in
terms of Safety and quality. This will lead to growth of organic food industry in
general and Organic milk and milk products in particular.

37

 Organic milk and milk products market will increase subsequently at a faster rate
with increase in awareness about the benefit offered by the product group and with
INDIA is the 2nd largest in the emerging economies in the world, with a GDP
growth rate of ~6.5%, 3th largest economy in the world (based on PPP) with a GDP
of US $ 4.4Trillion, and according to BRIC report published by Goldman Sachs,
India will be the 2 largest economy after China by the year 2035.

India, world's largest milk producer, accounting for more than 16% of world's total
milk production, is the world's largest consumer of dairy products. The total amount
of milk produced has tripled from 23 million tonnes back in 1973 to 95 million
tonnes in 2008 and expected a production level of 135 million tonnes by 2015 but
the projected demand for milk by 2021-22 estimated at 180 million tonnes which
implies

that

milk

production

would

have

to

be

doubled.

Milk production is growing at 3.3% while consumption is growing at 5% leaving a

gap between demand and supply. In order to meet the rapid growing demand and to
increase the milk production, Union Govt has started a central scheme National
Dairy Plan Phase 1, for a period of 2011-12 to 2016 17.This scheme will be
implemented with a total investment of about 2242 crore. This scheme main
objective is to help provide rural milk producers with greater access to the
organized milk processing sector and thus to bridge the gap between the demand
and

supply

of

milk

in

the

country.

The share of the total milk processing capacity by private sector is 44%of total
installed capacity of 73 MLPD (Million Liters per Day) in the country. Therefore,
the total share of the organized sector, both cooperatives as well as the private
sector is barely 12%. What is, therefore, disquieting is that as much as 88% share of
the total milk production is commanded by the unorganized sector.
38

 The untapped potential of the dairy sector is immense and opportunity to set up a
new dairy venture is great. And there is vast potential for the export of dairy
products, as the cost of milk production in India being the lowest. These factors are
attracting huge amount of investments in dairy processing, manufacturing dairy
processing equipment, fruit packaging equipment and equipments for biotechnology
related dairy industry.

39

Factor affecting Consumer demand

Consumption of milk and dairy products has been increasing on a global level as a
result of both a growing population and increases in per capita consumption. It is
generally recognized that economic factors such as higher consumer income and
declining retail prices for milk and dairy products over recent decades, relative to other
foods, have caused most of this increase in per capita consumption:
Income: While global food demand (especially in developing countries)increases
with income, the total share of a households budget spent on food generally falls as
incomes rise, while the budget share spent on services rises. In addition, changes in
income also affect the composition of demand. This is particularly so in higher income
countries where rising income levels generally result in a more diverse diet - as income
rises, consumers shift some consumption away from lower value staple products to
higher value products. Price of milk and dairy products.
Although the proportion of a households budget spent on food decreases with
income, wealthier countries tend to be less responsive to changes in food prices. For
example, data available for the UK suggests that a 1% change in the price for dairy
products per se would be expected to result in a 0.3% change in demand. However, this
varies significantly according to product, with available UK data suggesting, for example,
that demand for cheese is more responsive to price changes than liquid milk. In addition,
the relative price of dairy products to other competing (i.e. substitute) or complementary
products is an important factor affecting demand.

40

CHAPTER: 5
KEY ISSUES AND
CURRENT
TRENDS

41

KEY ISSUES IN DAIRY GLOBAL MARKETING:

Typically, marketing includes the market research, product design, promotional
activity, distribution, pricing and sales promotions etc. and some of these activities are
agreeable to a uniform global approach. Others involve a great degree of customization.
A global marketing strategy typically evolves over a period of time or phases-wise:
1) Decision to enter the market.
2) The mode of entry.
3) To expand across several markets, simultaneously or one at a time.
4) Customization of the marketing mix or development of completely new products.
5) In the final phase, global companies examine their product portfolio across countries,
strive for higher levels of coordination and integration and attempt to strike the right
balance between scale efficiencies and International Journal of Trade, Economics and
local customization.
6) Entering new markets while choosing new markets, MNCs need to consider several
macro and micro factors.

42

KEY ISSUES
PRODUCTION:
Poor management and feeding practices because of lack of information in the
absence of extension activity. Low productivity because of poor genetic potential, poor
feeding and management practices, poor access to health and breeding services, lack of
good-quality animals Availability of milk per household very low profitability from dairy
enterprise

MARKETING/PROCESSING
Lack of coverage of villages Lack of transparency in milk testing and pricing
Lack of democracy in village societies Marketing only imperil-urban/urban areas
Maintaining quality of milk/infrastructure Milk prices declared by cooperatives kept low
and used as a benchmark price by other players.

POPULATION
The dairy sector promotes vital linkages and synergies between the two pillars of
the economy, namely industry and agriculture. A large part of India's population
including 70 million rural households, primarily, small and marginal farmers and landless
laborers in the country are connected, either directly or indirectly, with the dairy sector.

43

ECONOMY
Not only does it bring immense benefits to the economy in terms of raising
agricultural yields, meeting productivity targets, creating employment throughout the
country, especially in the rural areas, it also has an enormous potential in contributing to
the future industrial growth of the economy. Hence the rapid and coordinated up
gradation of this sector attains enormous significance in India's development.

Sustainable, profitable pasture based dairy farming

Environmental monitoring and protection

Improving the farms' water, nutrient and feed efficiency

Reproductive performance in large herds / high productive farms

Dairy support land / total farm efficiency and resource use

Development and use of 'eco-n' nitrification inhibitor technology to reduce

nitrogen losses and increase pasture production

Mitigating the effects of clover root weevil

Reducing the farms' greenhouse gas footprint / emissions per kg milk solids.

44

MARKETING MIX
Amul butter product

1) Product
AMUL BUTTER: UTTERLY BUTTERLY DELICIOUS
Launched by AMUL in 1945.
Market leader during the last 4 decades with 86% market share
Ingredients:
Butter, Common Salt, permitted natural color- Annatto
Composition:
Milk Fat 80%
Moisture 16%
Salt 2.5%
Curd 0.8%
Calorific Value:
720 kcal. /100g
Special Features:
Made from fresh cream by modern continuous butter making machines. Marketed in
India since 4 decades.
Product Specification:
Meets AGMARK standard and BIS specifications No.IS:13690:1992
Product Packaging:
First company to launch Butter in an International pack
Single serving low priced and convenient application and disposal

45

Product
Meets AGMARK standards and BIS specifications
Amul light butter
Low fat butter

2) Price

Penetration pricing

value pricing

100gm Rs.23

Competitor: Mother Diary, Nestle, Britannia

Low-cost price strategy core philosophy of providing butter at a basic, affordable

price to appeal the common masses

3) PLACE

GCMMF is India's largest exporter of Dairy Products

APEDA Award

Excellence in Dairy Product Exports for the last 9 years

4) Promotion

ADVERTISING

Fresh and innovative".

The clean, emotion-based ads.

Amul ads -creative, apt for the current situation.

The Amul ads are one of the longest running ads based on same theme

vying for the Guinness records

1% of its turnover on promotions.

46

AMUL CHEESE

1) Product
Dairy product
Cooking product

2) Price
Low cost strategy
Competitor: Mother Diary, Nestle, Britannia
3) Place
Rural and urban market
International

4) Promotion
Advertisement

47

CHAPTER: 6
DATA ANALYSIS
AND
INTERPRETATION

48

PEST ANALYSIS
Political Environment:
Within India political ambitions and rise of communalism, fissiparous tendencies
are on the rise and may well continue for quite some time to time. Therefore, it expected
that the Dairy companies might consider offering political risk coverage also.
Government stability
Government stability is very import factor, which affect any industry because
ultimately government is deciding policies and various regarding the industry. Despite the
importance of dairying in the Indian economy, especially for the livelihoods of resourcepoor farmers and landless labourers, government policy towards this sector has suffered
from the lack of a clear and strong focus. Agriculture including animal husbandry is a
state subject under the Indian Constitution, and responsibility for development of the
sector lies with the state governments, with the exception of specific tasks assigned to the
central government. The first attempt to conceive a set of policies for livestock
development in India was the Royal Commission on Agriculture (1928). The
Commission recognized the role of draft animals, the problem of excessive numbers of
cattle, and the scarcity of feed and fodder in the Indian agriculture. In the postindependence period, the shaping of government policy was greatly influenced by the
colonial legacy.
Budget implication
In the last budget, the government did not give exemption from duties to
processed milk and milk products as it has did it with processed foods like jams and
ketchup.

49

IDA (India Dairy Association) has sought duty concession for value added milk
and milk products like infant powder, milk powder and ghee to increase the consumption
so that milk producers get a better price. However, these demands have completely
ignored.
Indian has the capability to carve a sizable niche in the global market with the
gradual withdrawal of subsidies in developed dairying nations. However, in the post
-WTO scenario, with quality coming in sharp focus. It would be difficult for the milk
farmers to put India on top in world milk production.

Economic Environment

After a long struggle, India has overcome a situation that may be similar to those
prevailing in a number of Asian and African countries and has built a modern dairy
sector, responsive to the needs of milk producers. India contributes 35% of total Asian
milk

It has had to overcome the negative effects of consumer-oriented programmer that

managed to keep prices low for the urban elite while depressing the price of milk in
rural milk sheds.
India is maintaining a good growth rate both for GDP and for GNP. This has helped
Indian dairy Industry. Private final consumption expenditure on milk products
increased from Rs. 29,899 crores in 1990-91 to Rs. 87363 crores in 1998-99.
Today, a rural private consumption expenditure per month on milk and milk
product is 9.6 % of the per capital monthly income, while in case of urban private
consumption expenditure it is 9.5%.

50

High-income elasticity of demand for daily products: middle or lower class people
whom cannot afford meat depend upon milk and products for their dietary protein
requirements.
Changes in Domestic Prices
Milk is an essential commodity in the Indian diet, since a large proportion of the
population is vegetarian. Seasonality in milk production is well known in the Indian dairy
sector. The milk production rises in winter months (flush season) and declines in the
summer months (lean season).
The data on raw milk procurement by milk processing plants shows that milk
procurement by the cooperative sector has strong seasonal cyclical pattern. This cyclical
trend of milk procurement is more pronounced for buffaloes and therefore for buffalodominated regions of the country. Such fluctuations in supply and demand result in
fluctuations in prices, thus subjecting milk producers to large variations in output prices
during the year. In the formal sector, the procurement prices are marginally higher during
the lean season compared with the flush period.
The trend in the wholesale price indices (at 1980-81 prices) for major livestock
products as well as for all commodities during the period 1984-85 to 1997-98 is given in
Table 3.1. Between 1984-85 and 1997-98, the WPI of baby food grew at the lowest rate
(8.76%) while the price of butter has grown at the highest rate (10.14%) due to strong
demand growth. The comparison of the price indices of dairy products and all
commodities showed that the prices of dairy products increased marginally higher
(9.26%) than all commodities (8.76%). However, the comparison of wholesale price
indices for two periods, 1984-90 (pre-reform period) and 1991-96 (post-reform period)
indicates that growth rates of all dairy product prices were lower in the post-reform

51

period except baby food. The WPI of dairy inputs such as cattle feed, fodder and oil
cakes increased slightly less than milk prices.
Impact of Policy Changes on Industrial Organization of the Dairy Sector:
The market-oriented economic policies under the wide umbrella of the WTO
Agreements have brought into focus many new issues/concerns. It was hoped that the
new trade regime would create a congenial climate for trade in agricultural commodities
including livestock products, but the experience so far gives a mixed picture.
Although India produces about 14% of global milk production, its share in the
global trade of dairy products is grossly negligible. The new trade regime is hoped to
provide greater opportunities for India to tap the global market in dairy products. The two
overriding factors for determining the competitiveness of the Indian dairy industry in
world trade would be price competitiveness and high quality meeting international
standards (Codex Alimentarius Commission FAO/WHO).
In the light of the above requirements, in order to compete (home as well as world
markets), milk has to be produced at a competitive price and hence measures to reduce
costs of production have to be explored. Furthermore, with regard to quality assurance of
milk, there must be a greater emphasis on clean milk production and a reduction in the
antibiotics, pesticides, and other contaminant residues in milk. The product mix may
undergo considerable changes in favour of more western dairy products such as cheese
due to changing food habits and income levels.

52

 SOCIO CULTURAL ENVIRONMENT

Indian dairy farming is a smallholder production system, characterized by milk
production by the masses rather than mass production of milk. More than 80 million
households (about 73% of rural households) keep some type of livestock. Millions of
landless agricultural labourers provide the base for Indian dairying and marginal and
small farmers, who maintain one or two milch animals of low genetic potential for
milk production, primarily fed on crop residues and by-products, and reared with the
help of under-employed family members, mostly female workers. Although dairying
is becoming more commercialised in some areas, it predominantly remains
subsistence farming constituting a complementary/supplementary enterprise to crop
farming, with regular sales of surplus production

Dairy farmers in India are largely illiterate, resource-poor, and low risk-bearers. They
often exhibit a low level of farming innovation; in the majority of cases, they are
either non-adapters or late adopters of modern technologies. Their average family
size is moderate, around five persons. The marketable surplus of milk is about 60%
of total milk production.
Personal disposable income has gone up specifically fast growing middle-income
group in the country. Changes in the life style pattern, consumers prefer low fat and
value added milk products. Importantly, the process of urbanization has also helped
Indian dairy industry. As nearly urban areas are consuming 56 % of the total milk
and milk production.
Approximately 82 % of the Indian population is Hindus. A significant number of
Hindus are lacto vegetarians. Milk and Milk products are an important source of

53

protein to a significantly large segment of the Indian population. Dairy products have
considerable symbolic value in Hindus and their social life.
Milk and dairy products are an important part in the cultural life of Hindus; Hindus
offer mithai (dairy sweets) at weddings, birthdays and all religious occasions.
Offering of milk are very symbolic in Hindu temples. Leading Indian dairy firms
were observed to use religious symbolism in promoting dairy products.
TECHNOLOGICAL ENVIRONMENT

Dairy is a place where handling of milk and milk products is done and technology refers
to the application of scientific knowledge for practical purposes.

Automating milk collection has brought demonstrable benefits to farmers and local
dairy cooperatives, increasing efficiency, transparency and fairness, and speed of
payment. Moreover, it enables faster processing of perishable milk, preventing
spoilage, and provides the mechanism for capturing the historical information base
those farmers and local cooperatives need in order to plan more effectively and
make improvements in quality and yield. These in turn will be critical to the
competitiveness of the Indian dairy industry and possibly the survival of its
cooperative structure as it faces a growing threat from more efficient foreign
producers. Transformation of IT-enabled automatic milk collection systems into
networks that provide Internet-based information and communication services may,
in the future, also help farmers improve their productivity and gain better access to
government and commercial services.

54

 Modernization of dairy industry to comply with hygiene and quality norms

has

taken pace. Highly mechanized milking operations to ensure that it does not get
contaminated. And then portable water is used for processing of milk.

Dairy industry players have begun to tie-up with their foreign counterparts to bring
the world-class technology in their operations. Modified atmospheric of vacuum
packaging, use of humectants, LP system, chilling Van and permitted preservation
etc. are used for improving shelf life of milk and milk products. Significant number
of farmers to gain higher productivity of animals has adopted modern technologies
in animal breeding and feeding.
In light of the fast-changing global trade regime, the outlook for technological
development in dairy sector appears to be bright. In order to tap the global dairy
market to India's advantage, better scientific management of dairy animals in terms
of breeding, feeding, and health care must take place. More concentrated milk
production and milk sheds may develop, and efforts for clean milk production and
good health care of animals may occupy special significance.

LEGAL ENVIRONMENT
Prevention of Food Adulteration Act, 1954
This Act is the basic statute that is intended to protect the common consumer
against the supply of adulterated food. This specifies different standards for various food
articles. The standards are in terms of minimum quality levels intended for ensuring
safety in the consumption of these food items and for safeguarding against harmful
impurities and adulteration. The Central Committee for Food Standards, under the
55

Directorate General of Health Services, Ministry of Health and Family Welfare, is

responsible for the operation of this Act. The provisions of the Act are mandatory and
contravention of the rules can lead to both fines and imprisonment.

Export (Quality Control & Inspection) Act, 1963

The Export Inspection Council is responsible for the operation of this Act. Under
the Act, a large number of exportable commodities have been notified for compulsory
pre-shipment inspection. The quality control and 1inspection of various export products
is administered through a network of more than fifty offices located around major
production centers and ports of shipment. In addition, organizations may be recognized as
agencies for inspection and /or quality control. Recently, the government has exempted
agriculture and food products, fruit products and fish and fishery products from
compulsory pre-shipment inspections; provided that the exporter has a firm letter from
the overseas buyer stating that the overseas buyer does not require pre-shipment
inspection from official Indian inspection agencies.
Standards on Weights and Measures (Packaged Commodities) Rules, 1977
These Rules lay down certain obligatory conditions for all commodities that are
packed form, with respect to declarations on quantities contained. These Rules are
operated by the Directorate of Weights and Measures, under the Ministry of Food and
Civil Supplies.
Milk and Milk Product Order (MMPO) 1992
The Milk and Milk Product Order (MMPO), 1992, issued on June 9, 1992 seeks
to ensure the supply of liquid milk, an essential commodity, to consumers by regulating
its processing and distribution. Within eight years of its operation, the Central/State

56

Registering Authorities have till December 2000 registered 666 units with a total
processing capacity of 65.8 million liters per day (mlpd).

PORTERS FIVE COMPETITOR FORCES FOR THE DAIRY

INDUSTRY

COMPETITIVENESS OF
SUTSTITUTE PRODUCTS

SUPPLIERS
BARGAINING
POWERS

INDUSTRY
RIVALRY

THREAT FROM NEW

ENTRANT

57

BARGAINING
POWERS OF
CUSTOMERS

1. Industry Rivalry (among existing players)

In dairy industry the number of competitors are increasing and emerging with equal
size and capability.

Rivalry is stronger as customer costs to switch brands are low.

Rivalries more volatile and unpredictable as the competitors are more diverse in
terms of vision, objectives, strategies and resources.

Rivalry is stronger as the demand for the product is growing rapidly.

58

2. Threat from new entrant

Economies of scale
Due to economies of scale, new competitors are attracted towards the industry.
Capital requirements
Large capital requirement serves as entry barriers.
Cost of resource advantage independent of size

Exiting firms are enjoying cost and resource advantage that new competitor does not
have.
Regulatory policy

Government rules, regulations, listening system, maintenance of standards, quality,

purity, health standards.
Learning and experience curve effects

Lower unit cost are mostly a result of experience in producing the milk products and
other learning curve benefits, new entrants face a potentially significant cost disadvantage
competing against existing firms with more accumulated know how.
Brand preferences and customer loyalty

In dairy industry the brand preference and the customer loyalty is high which will restrict
the entry of the new entrant.
Access to distribution channels
In dairy industry, the timely delivery is work as the one of the biggest success
factor.

59

3. Competitiveness of substitute products

Firms in an industry are quite often in close competition with firms in another
industry because their respective products are good substitute, in dairy industry the
competitive pressures from substitute products like soft drink, beverages, snacks, tea,
coffee and others.

4. Bargaining power of suppliers

Bargaining power of the suppliers has some effects. Due to the decrease in the gain
of the milk price, the farmers switch to the other local industry. As such the dairy
industry has to rely on the farmers for getting the basic raw material that is milk
Collaborative partnership between sellers and suppliers can create competitive
pressures create a sense of like just in time delivery, reduce inventory cost, reduce
suppliers cost and enhance quality.

5. Bargaining power of customer

In dairy industry the switching to competing brands or substitutes are relatively low.
In dairy industry have the flexibility to fill their need by switching brands or
sourcing from several sellers often has negotiating from sellers.
In dairy industry, the no of buyers is very large so it is easy for sellers to find
alternatives when a customer is lost.
In dairy industry, the buyers are well informed about sellers products, prices, and
cost so they are enjoying a better bargaining power.
In dairy industry, the buyers have less discretion in whether and when they purchase
the product. So in this respect they enjoy less bargaining power.

60

61

OT ANALYSIS

Opportunity
Failure is never final and success never ending. Dr. Kurien bears out this
statement perfectly. He entered there were only threats. He met failure on & now he
clearly is an example of never-ending success entrepreneur is looking for opportunities
in India; the following areas must be tapped.
Value addition: There is a phenomenal scope for innovations in product
development, packaging and presentation. Given below are potential areas of value
addition:
Steps should take to introduce value-added products like shrikhand, ice creams,
paneer, khoa, flavored milk, dairy sweets, etc. This will lead to a greater presence
and flexibility in the market place along with opportunities in the field of brand
building.
Addition of cultured products like yoghurt and cheese lend further strength - both in
terms of utilization of resources and presence in the market place.
A lateral view opens up opportunities in milk proteins through casein, castigates and
other dietary proteins, further opening up Export opportunities.

Yet another aspect can be the addition of infant foods, geriatric foods and nutritional.

62

Export Potential:
Efforts to exploit export potential are already on. Amul is exporting to
Bangladesh, Sri Lanka and the Middle East. Following the new GATT treaty,
opportunities will increase tremendously for the export of general and dairy products in
particular. Our products are capable to sell milk and milk products in each and every
nation of the world. Our policies must be as carefully considered as those of every other
dairying nations must.
Unsecured corporate environment and system entropy leads to stress thereby making
consumers more health conscious thus need for special purpose dietary food and low
cal foods is becoming inevitable.
Indigenous technology in packaging machines and materials has made the
differentiation done through packaging an easy and cost effective task.
Hoarding of essential products including dairy products for a week or so due to
DINK (Double Income No Kids) culture promises a good future for long life dairy
products.

63

 THREATS
Milk vendors, the un-organized sector: Today milk vendors are occupying the pride
of place in the indigenous producers and consumers should see a steady decline in
their importance.
The Indian dairy industry is gearing up to address the environment and quality
related issues to meet international standards.
If taken the raw milk route then fixed cost exclusion for around a decade is necessary
in Order to get the bottom-line black.
The window space in the market is becoming expensive day by day due to retailing
boom.
Dairy being a part of fragmented industry requires a huge investment to break this
barrier of being fragmented either in processing technology or in the specialized
logistics and warehousing.

64

CHAPTER: 7
FUTURE TRENDS
OF
INDIAN DAIRY
INDUSTRY

65

FUTURE TREND
Emergence of a more affluent segment of the Indian population, albeit small as
percent of total population but large in numbers, seems to be prompting a shift to more
value-added dairy products. Packaged market milk is gaining in popularity compared
to loose milk. Markets for UHT milk and favored milks are growing but are still
niche markets. It must be remembered, however, that a niche market of 0.1 percent of
the Indian population is more than 1.1 million persons.

Traditional Indian dairy products such as paneer and dairy-based sweets, with
longer shelf-life, are being marketed as branded products by cooperative and private
companies. Butter, ghee and ice cream are competitive markets dominated by a few
rms that have the manufacturing and merchandizing capabilities to compete in these
markets.
In spite of a dispersed market, a competitive climate, and the present
uncertainty about the nature and rate of change of dairy product marketing and
consumption in India, a number of foreign investments have been made in recent
years. Of particular interest are two rms located in Wisconsin. Schreiber Foods,
Green Bay, has recently acquired 51 percent of Dynamic Dairy Industries Ltd., which
produces a broad range of products including process cheese. A plan to market buffalo
milk Mozzarella cheese in the USA is part of Collaboration between Winona Foods,
Green Bay, and Himalaya International.

66

While dairy products undoubtedly are now widely regarded as premium foods
in India, it may become more difficult for dairy products to keep this status when more
people enter the middle and upper income groups. It seems likely that middle and
upper income consumers would not be satised with the short (two to four day shelflife) of milk sold by processors in the formal sector in parts of India. The formal dairy
processing sector will benet if it can capitalize on the demands of upper and middle
income people for convenience, hygiene and quality.
The affordability of dairy products varies widely across India. Middle and upper
income consumers possibly as many as 450 million people in the future will have the
purchasing power to purchase desired quantities of dairy products. However, the
remainder of the population, including many people living in rural areas, will be subject
to important income constraints.
As in many parts of the world, Indias dairy industry will witness increases in
demand for dairy products from the food service industry, the ingredients market, and
away-from-home food consumption businesses. Improved milk quality would likely
increase the Importance of these sources of milk and dairy product demand in India

67

Chapter: 8
Conclusion

68

Conclusion

India is recognized as a biggest and fastest growing market in the world for milk
and milk products. So all the countries are looking at Indian dairy industry markets
for exports. As per the WTO norms, the milk produced in India is yet to get the
certificate for high quality. As per GATT agreement, the export subsidy is reducing.
Because of this, we are expecting major changes in dairy industry of North America,
Europe and Australia.
India may also get some advantage in this situation. After reduction in subsidies
given by other countries, India would be able to compete with their products
efficiently on price in international markets. At present India, have negligible exports
to international markets. These are at present are dominated by European Union, New
Zealand, Australia and America.
These countries constitute 85% of the world export. New Zealand, Australia
export 80.98% and 50% of their dairy products respectively. During 1999-2000 7.8
crore tones of milk was produced by India followed by 7.1 crore tones by U.S.A. and
3.9 crores tones, by Russia. In India 46% of the milk produced is consumed as whole
milk, 28% as ghee, 7% as butter, 8% as curd, 7% as Koa and 4% as milk powder /
ice-creams. In 1950 our country produced 1.7 crore tones of milk which increased by
5.5% every year till 1998 to reach 7.8 crore tones because of "operation flood
programme". In 1999 it reached 8.19 crores while in 2000 it is expected to reach 8.6
crores. Because of this improvement in milk production, the per capita availability of
milk in 1970 is 112 Gms while 1998-99 it increased to 211 Gms.
Dairy industry has come to play an important role in rural development. By
organizing milk production along scientific lines, processing, and marketing of milk
products or business lines, lot of incentive is being given to the rural produces to
produce more milk and be benefited.

69

CHAPTER:9
BIBLIOGRAPHY

70

BIBLIOGRAPHY

Web site:
www.indiadairy.com
www.amul.com
www.indianindustryprofiles.com
www.indiandairymart.com

LINKS
http://www.euromonitor.com/dairy-in-india/report
http://www.academia.edu/2719773/Current_global_trends_in_the_dairy_industry
http://www.imarcgroup.com/dairy-industry-in-india/
http://www.dairyadvisors.com/ShowDairyAdvisorsNews.aspx?News_Id=45
http://www.studymode.com/subjects/indian-dairy-industry-pestel-analysispage1.html

71