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India's Dairy Industry: A Comprehensive Overview

The Backbone of Global Dairy: India's Production Capacity

India holds the title of the world's largest milk producer, with an expansive dairy industry underpinning its agricultural economy. As of 2021, the nation boasts approximately 192 million dairy cattle, including buffaloes, and around 135 million dairy goats. This extensive livestock base reflects the strength and diversity inherent in India's dairy production capabilities.

Milk Production and Processing

In the fiscal year 2021-2022, India achieved a staggering milk production volume of roughly 208 million tonnes. The country's processing facilities are equipped to handle between 65 to 70 million tonnes annually. Additionally, India's cheese production is notable with outputs of about 90,000 tonnes per year. The country also demonstrates significant capabilities in value-added dairy products by producing approximately 600,000 tonnes of milk powder and whey annually.

Key Dairy Enterprises

India's dairy landscape is populated by several key enterprises that drive its success:

  • Amul
  • Mother Dairy
  • Milky Mist
  • Parag Milk Foods
  • Yakult Danone India

Major Dairy Farms and Operators

Several prominent dairy farms and operators contribute to the sector:

  • Baramati Agro Ltd.
  • Hatsun Agro Product Ltd.
  • Karnataka Milk Federation
  • Heritage Foods
  • Vijay Dairy & Farm Products

Exports and Imports

India's role in the global dairy market is underscored by its export of approximately 100,000 tonnes of dairy products each year. Conversely, imports stand at about 50,000 tonnes, illustrating the country's self-sufficiency and strategic global position.

Significant Market Events

The past year has been marked by pivotal developments in India's dairy sector:

  • JORDBRUKARE's announcement of milk procurement prices across states.
  • Milky Mist planning an IPO with a valuation goal of ₹20,000 crore.
  • Mother Dairy targeting a ₹17,000 crore turnover by FY 2025.
  • Union Minister Amit Shah addressing concerns over milk powder imports.
  • Fonterra outsourcing financial services to Bangalore-based partners.
  • Parag Milk Foods achieving a 27% profit growth in ghee and cheese sectors.
  • Yakult Danone India launching 'Yakult Light Mango', aiming for a 50% sales increase.
  • Godrej Agrovet's profits rising by 28.3% in Q1.
  • The hosting of the World Dairy Summit 2027.
  • Trade negotiations with the EU focusing on dairy market access.
  • Celebration of National Milk Day 2024 in New Delhi.
  • Opening of Kerala's largest government-operated goat farm in Kasaragod.
  • A partnership between Mother Dairy and National Cooperative Organics Limited.
  • Arrests related to the Tirupati laddoo adulteration scandal.

Future Outlook

The future of India's dairy market is centered on expansion and sustainable practices. Plans are underway for the Gujarat Cooperative Milk Marketing Federation's new plant in Kolkata, expected to be the world's largest curd manufacturing facility. The focus on sustainability is further driven by biogas models spearheaded by the National Dairy Development Board, aiming to implement these across 250 cooperative districts within two years.

International trade negotiations, particularly with the US, remain a critical priority, especially concerning animal feed practices. Protecting domestic industries while cultivating international trade relationships is essential. Innovations in animal health, such as the approval of Biolumpivaxin, highlight advances in safeguarding livestock productivity.

The Organic World's expansion into Coimbatore reflects a growing trend towards organic products, including dairy. Purabi Dairy's Rs 320 crore turnover for FY 2024–25 marks significant progress in Assam's dairy sector. Dhenoo Tech Solutions is revolutionizing India's dairy farming through cutting-edge digital innovations, enhancing all stages of production.

Efforts to conclude a trade agreement with the United States are crucial to avoiding economic disruptions from potential tariff increases. Geopolitical factors, like military exchanges along the Line of Control in Jammu and Kashmir, are also significant in managing broader market stability and growth. A partnership between India's Ministry of Cooperation and Swiggy Instamart aims to bring cooperative dairy products to online platforms, fostering easier access for consumers.

Modified: 2025/05/04


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