How India is Strengthening Its Position in the Global Market – Prashant Tripathi, JORDBRUKARE

Prashant Tripathi, founder and market development director of JORDBRUKARE Consulting, presented the current state and prospects of India’s dairy industry during the event, according to Dairynews.today.

Key Indicators and Current Trends

Leadership in Milk Production India is the world’s largest producer of milk, with production reaching 221 million tons in 2022. Approximately 70 million farmers are engaged in dairy farming, with most operating small-scale farms of 2-5 cattle. However, only 25% of milk is processed in the organized sector.

Growing Domestic Market

By 2030, the Indian dairy market is projected to reach $320 billion, with an annual compound growth rate (CAGR) of 18%. Contributing factors include shifts in consumer preferences, urbanization, rising incomes, and the growing influence of Western food culture.

Export Ambitions

India aims to expand its export of dairy products, including milk fat, powdered milk, and whey products. Key export markets include the United States, the Middle East, and Southeast Asia.

Infrastructure Improvements

A $2 billion investment in processing capacity development is expected to boost production efficiency by 50%. Private sector involvement is also growing, with leading companies investing over $4 billion in modernizing the dairy sector.

Key Challenges

Water Scarcity
More than half of India’s territory experiences high water stress, complicating feed production and sustainable milk production.

Feed Quality and Heat Stress
Limited access to high-quality feed and extreme climatic conditions affect livestock productivity.

Resistance to Imports
High import tariffs on dairy products (up to 150%) restrict foreign competition, helping to sustain domestic prices.

Looking Ahead

The Business-as-Usual (BAU) scenario projects annual economic growth of 6.3%, supporting the continued development of the dairy industry. However, a more ambitious scenario (HYG) envisions an increase in milk yield to 10.11 kg/day by 2047, requiring substantial investments in technology and infrastructure. India's dairy sector, with its scale and strategic initiatives, holds the potential to become a leading exporter of dairy products, meeting growing global demand. However, overcoming infrastructure and environmental challenges, along with enhancing the sector's organization, will be essential, emphasized Tripathi.