Interview with Prashant Tripathi, Founder & Director of Market Development of the consulting company JORDBRUKARE
Source: The DairyNews
In this interview, we spoke with an expert about the trends in the development of the dairy market in India, and also asked, as a participant in previous Dairy Olympics, about what attracts market participants to this event for already 15 years.
Please tell us about the main goals of your work in the dairy sector of India.
- The main goals of our work in India's dairy sector encompass a range of objectives aimed at holistic development and growth. One of them centers around assisting dairy businesses with actionable data and intelligence to drive growth and sustainability.
By leveraging data and intelligence, we can provide dairy businesses with valuable insights into consumer preferences, market trends, and supply chain efficiencies.
This enables them to make informed decisions, develop effective business strategies, and more effectively adapt to changing market dynamics. This analytics-driven approach enables better quality control, cost management, and enhanced competitiveness in the dairy market, ultimately leading to improved profitability and sustainability for the entire industry.
For example, we have mapped the dairy infrastructure within the country that we can utilize to assist businesses in focusing their resources wisely.
In your opinion, why is maximum transparency and clear analytics necessary for the dairy market? What do market players gain fr om this?
- Maximum transparency and precise analytics are indispensable for the dairy market for several compelling reasons. Transparency in pricing and transactions is fundamental for building trust and fostering good relationships among stakeholders, including dairy farmers, processors, and consumers. When all parties have access to clear and accurate information, it eliminates ambiguity and reduces the risk of disputes and conflicts.
Clear analytics provide valuable insights into consumer preferences, market trends, and supply chain efficiencies. By leveraging data-driven insights, market players can make informed decisions, develop effective business strategies, and more effectively adapt to changing market dynamics. This analytics-driven approach enables better quality control, cost management, and enhanced competitiveness in the dairy market, ultimately leading to improved profitability and sustainability for the entire industry.
Currently, we see India as a translucent market wh ere a lot of information and insights are not available, and we are working to change that.
Nowadays, many abroad talk about India as an example of a dairy industry formed by cooperatives. The Indian dairy industry is also actively supported by the government. For example, in Russia or Kazakhstan, it is often mentioned that the Indian dairy industry has been able to do what no other sector representative in the world has done - regulate itself independently of retail chains. Does such a situation allow consumers to have more affordable quality milk?
- The Indian dairy industry has achieved remarkable success, mainly through cooperatives like Amul, by self-regulating, minimising dependence on retail chains and working on wafer-thin margins. The government also tries to assit cooperatives by providing timely subsidies to offload any surpluses; some states also offer INR 5 (USD .06) per litre subsidy for milk procurement by cooperatives. However, given all that, it is difficult to suggest that customers can access cheaper milk.
How do you think Indian dairy cooperatives will change in the future? What will be their directions for development?
- I believe Indian dairy cooperatives and the private dairy sector alike will continue to evolve and adapt to changing market dynamics and technological advancements in the future. One key area of focus will be integrating advanced milk production and processing technologies.
Additionally, there will be a strong emphasis on value-added dairy products such as cheese, yoghurt, and ice cream to cater to the changing consumer preferences and increase profitability. Furthermore, expanding market reach domestically and internationally will be a crucial direction for development. This will involve exploring new export markets, establishing strategic partnerships with international dairy companies, and promoting Indian dairy products globally.
Moreover, sustainability initiatives will be a priority in the coming years to ensure environmental conservation and resource efficiency. This includes promoting sustainable farming practices, reducing carbon footprint, and implementing waste management and recycling initiatives to create a more sustainable and eco-friendly dairy industry.
Please tell us more about your project on analysing milk production and processing in India. Will there be a dairy map of India?
- Jordbrukare's project on analysing milk production and processing in India is a comprehensive study aimed at understanding the dynamics, challenges, and opportunities in the dairy sector. We are collating data fr om various sources, including government reports, industry publications, and primary surveys, to create a detailed and accurate dairy map of India.
The dairy map will visualize the distribution of dairy plants and chilling centres across India, which we will overlay with other data sets. It will provide insights into the geographical concentration of dairy activities, infrastructure availability, and market potential. This dairy map will serve as a valuable resource for stakeholders in the industry, including dairy farmers, processors, policymakers, and investors, to make informed decisions, identify growth opportunities, and develop effective strategies for sustainable development and growth of the dairy sector in India. We are working to release the first iteration by Q4 2024.
What support measures are currently being provided to the dairy sector of India by the government?
- The government of India is actively supporting the dairy sector through various initiatives and support measures to promote growth, modernization, and sustainability. These include financial assistance and subsidies for dairy equipment and infrastructure to encourage modernization, capacity building, and adoption of advanced technologies.
Training and capacity-building programs are organized for dairy farmers to enhance their skills and knowledge in dairy management, animal nutrition, and healthcare. The government is also promoting research and development in dairy technology and management to foster innovation, improve the overall efficiency and productivity of the dairy sector, and address the emerging challenges and opportunities in the industry.
Furthermore, the government implements policies and regulations to ensure quality control, food safety, and hygiene standards in dairy production and processing. This includes establishing quality testing labs, certification programs, and monitoring mechanisms to ensure compliance with national and international standards and regulations.
What is the peculiarity of milk marketing in India? Is there something other markets should learn from?
- The peculiarity of milk marketing in India lies in its decentralized and cooperative-driven structure, which has been a key factor in the success, sustainability, and resilience of the Indian dairy industry. A significant portion of milk is sold through local dairy farmers and cooperatives, which ensures a fair share of the profit for farmers and allows for direct interaction with consumers.
This farmer-centric and decentralized model has proven to be highly resilient, particularly during economic volatility and market disruptions. The cooperative-driven approach enables dairy farmers to collectively negotiate better prices, access financial support, and share resources and knowledge, which enhances their resilience to market fluctuations and challenges.
Furthermore, this decentralized model promotes trust and inclusivity, benefiting both dairy farmers and consumers by eliminating the middleman and ensuring fair pricing. The resilience of this model has been demonstrated during various crises, including the COVID-19 pandemic, wh ere the Indian dairy industry was able to maintain supply chain continuity, ensure food security, and meet consumer demand for quality milk and dairy products.
Other markets can learn from this decentralized and resilient approach to foster inclusivity and sustainability in their dairy sectors. By adopting similar cooperative-driven and farmer-centric models, other dairy markets can enhance their resilience to market disruptions, improve supply chain efficiency, and create a more equitable and efficient dairy market for the benefit of all stakeholders.
Please tell us, why do you think it is worth visiting the Dairy Olympics in Ankara? What are your expectations from this event?
- Dairy Olympics is genuinely unique as it brings industry experts and showcases innovative dairy products and technologies from the CIS and the Central Asian region. Participating at Dairy Olympics always leaves you with a better perspective and understanding of the above-mentioned markets.
Attending such international events allows us to network with industry leaders, exchange knowledge and experiences, and benchmark our practices against global standards. It also provides a platform to showcase the capabilities and potential of the Indian dairy industry, attract foreign investments and partnerships, and contribute to the growth and development of the dairy sector on a global scale.
Thank you!
Earlier We Wrote: Jordbrukare launches "Dairy Dimension", an innovative magazine
The Dairy Olympics will take place from May 26th to May 30th in Ankara, Turkey. The aim of the Dairy Olympics is to assess the prospects of the global dairy market, evaluate existing industry issues, forecast trends, establish new connections, and initiate new ambitious projects.
- The main goals of our work in India's dairy sector encompass a range of objectives aimed at holistic development and growth. One of them centers around assisting dairy businesses with actionable data and intelligence to drive growth and sustainability.
By leveraging data and intelligence, we can provide dairy businesses with valuable insights into consumer preferences, market trends, and supply chain efficiencies.
This enables them to make informed decisions, develop effective business strategies, and more effectively adapt to changing market dynamics. This analytics-driven approach enables better quality control, cost management, and enhanced competitiveness in the dairy market, ultimately leading to improved profitability and sustainability for the entire industry.
For example, we have mapped the dairy infrastructure within the country that we can utilize to assist businesses in focusing their resources wisely.
In your opinion, why is maximum transparency and clear analytics necessary for the dairy market? What do market players gain fr om this?
- Maximum transparency and precise analytics are indispensable for the dairy market for several compelling reasons. Transparency in pricing and transactions is fundamental for building trust and fostering good relationships among stakeholders, including dairy farmers, processors, and consumers. When all parties have access to clear and accurate information, it eliminates ambiguity and reduces the risk of disputes and conflicts.
Clear analytics provide valuable insights into consumer preferences, market trends, and supply chain efficiencies. By leveraging data-driven insights, market players can make informed decisions, develop effective business strategies, and more effectively adapt to changing market dynamics. This analytics-driven approach enables better quality control, cost management, and enhanced competitiveness in the dairy market, ultimately leading to improved profitability and sustainability for the entire industry.
Currently, we see India as a translucent market wh ere a lot of information and insights are not available, and we are working to change that.
Nowadays, many abroad talk about India as an example of a dairy industry formed by cooperatives. The Indian dairy industry is also actively supported by the government. For example, in Russia or Kazakhstan, it is often mentioned that the Indian dairy industry has been able to do what no other sector representative in the world has done - regulate itself independently of retail chains. Does such a situation allow consumers to have more affordable quality milk?
- The Indian dairy industry has achieved remarkable success, mainly through cooperatives like Amul, by self-regulating, minimising dependence on retail chains and working on wafer-thin margins. The government also tries to assit cooperatives by providing timely subsidies to offload any surpluses; some states also offer INR 5 (USD .06) per litre subsidy for milk procurement by cooperatives. However, given all that, it is difficult to suggest that customers can access cheaper milk.
How do you think Indian dairy cooperatives will change in the future? What will be their directions for development?
- I believe Indian dairy cooperatives and the private dairy sector alike will continue to evolve and adapt to changing market dynamics and technological advancements in the future. One key area of focus will be integrating advanced milk production and processing technologies.
Additionally, there will be a strong emphasis on value-added dairy products such as cheese, yoghurt, and ice cream to cater to the changing consumer preferences and increase profitability. Furthermore, expanding market reach domestically and internationally will be a crucial direction for development. This will involve exploring new export markets, establishing strategic partnerships with international dairy companies, and promoting Indian dairy products globally.
Moreover, sustainability initiatives will be a priority in the coming years to ensure environmental conservation and resource efficiency. This includes promoting sustainable farming practices, reducing carbon footprint, and implementing waste management and recycling initiatives to create a more sustainable and eco-friendly dairy industry.
Please tell us more about your project on analysing milk production and processing in India. Will there be a dairy map of India?
- Jordbrukare's project on analysing milk production and processing in India is a comprehensive study aimed at understanding the dynamics, challenges, and opportunities in the dairy sector. We are collating data fr om various sources, including government reports, industry publications, and primary surveys, to create a detailed and accurate dairy map of India.
The dairy map will visualize the distribution of dairy plants and chilling centres across India, which we will overlay with other data sets. It will provide insights into the geographical concentration of dairy activities, infrastructure availability, and market potential. This dairy map will serve as a valuable resource for stakeholders in the industry, including dairy farmers, processors, policymakers, and investors, to make informed decisions, identify growth opportunities, and develop effective strategies for sustainable development and growth of the dairy sector in India. We are working to release the first iteration by Q4 2024.
What support measures are currently being provided to the dairy sector of India by the government?
- The government of India is actively supporting the dairy sector through various initiatives and support measures to promote growth, modernization, and sustainability. These include financial assistance and subsidies for dairy equipment and infrastructure to encourage modernization, capacity building, and adoption of advanced technologies.
Training and capacity-building programs are organized for dairy farmers to enhance their skills and knowledge in dairy management, animal nutrition, and healthcare. The government is also promoting research and development in dairy technology and management to foster innovation, improve the overall efficiency and productivity of the dairy sector, and address the emerging challenges and opportunities in the industry.
Furthermore, the government implements policies and regulations to ensure quality control, food safety, and hygiene standards in dairy production and processing. This includes establishing quality testing labs, certification programs, and monitoring mechanisms to ensure compliance with national and international standards and regulations.
What is the peculiarity of milk marketing in India? Is there something other markets should learn from?
- The peculiarity of milk marketing in India lies in its decentralized and cooperative-driven structure, which has been a key factor in the success, sustainability, and resilience of the Indian dairy industry. A significant portion of milk is sold through local dairy farmers and cooperatives, which ensures a fair share of the profit for farmers and allows for direct interaction with consumers.
This farmer-centric and decentralized model has proven to be highly resilient, particularly during economic volatility and market disruptions. The cooperative-driven approach enables dairy farmers to collectively negotiate better prices, access financial support, and share resources and knowledge, which enhances their resilience to market fluctuations and challenges.
Furthermore, this decentralized model promotes trust and inclusivity, benefiting both dairy farmers and consumers by eliminating the middleman and ensuring fair pricing. The resilience of this model has been demonstrated during various crises, including the COVID-19 pandemic, wh ere the Indian dairy industry was able to maintain supply chain continuity, ensure food security, and meet consumer demand for quality milk and dairy products.
Other markets can learn from this decentralized and resilient approach to foster inclusivity and sustainability in their dairy sectors. By adopting similar cooperative-driven and farmer-centric models, other dairy markets can enhance their resilience to market disruptions, improve supply chain efficiency, and create a more equitable and efficient dairy market for the benefit of all stakeholders.
Please tell us, why do you think it is worth visiting the Dairy Olympics in Ankara? What are your expectations from this event?
- Dairy Olympics is genuinely unique as it brings industry experts and showcases innovative dairy products and technologies from the CIS and the Central Asian region. Participating at Dairy Olympics always leaves you with a better perspective and understanding of the above-mentioned markets.
Attending such international events allows us to network with industry leaders, exchange knowledge and experiences, and benchmark our practices against global standards. It also provides a platform to showcase the capabilities and potential of the Indian dairy industry, attract foreign investments and partnerships, and contribute to the growth and development of the dairy sector on a global scale.
Thank you!
Earlier We Wrote: Jordbrukare launches "Dairy Dimension", an innovative magazine
The Dairy Olympics will take place from May 26th to May 30th in Ankara, Turkey. The aim of the Dairy Olympics is to assess the prospects of the global dairy market, evaluate existing industry issues, forecast trends, establish new connections, and initiate new ambitious projects.
To register as a participant or propose a topic for presentation, you can visit the official website of the event.
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