India's Dairy Industry: A Comprehensive Overview

India holds a commanding position as the largest milk producer globally, contributing significantly to the global dairy industry. The sector is vital to the livelihoods of millions of small and marginal farmers.

Key Statistics

• Number of Dairy Cattle: Approximately 192 million (including both cattle and buffaloes) as of 2021.
• Milk Production Volume: Approximately 208 million tonnes for the year 2021-2022.
• Number of Dairy Goats: Roughly 135 million in 2021.
• Milk Processing Volume: Estimated at 65-70 million tonnes annually.
• Cheese Production Volume: Around 90,000 tonnes annually.
• Volume of Milk Powder and Whey Production: Approximately 600,000 tonnes per year.

Key Enterprises in India's Dairy Market

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

Major Dairy Farms and Operators

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

Exports and Imports

India exports approximately 100,000 tonnes of dairy products annually while importing about 50,000 tonnes. This indicates a favorable trade balance and underscores India's influence in global dairy markets.

Significant Market Events

• JORDBRUKARE published milk procurement prices across various states.
• Milky Mist plans an IPO with a targeted valuation of Rs 20,000 crore.
• Mother Dairy aims for a Rs 17,000 crore turnover by FY 2025, indicating a 13% increase.
• Union Minister Amit Shah addressed allegations regarding milk powder imports.
• Fonterra outsourced financial services to partners based in Bangalore.
• Parag Milk Foods reported a 27% increase in net profit due to growth in ghee and cheese.
• Yakult Danone India launched 'Yakult Light Mango', aiming for a 50% sales boost.
• Godrej Agrovet recorded a 28.3% increase in first-quarter net profit.
• India to host the World Dairy Summit 2027 at the IDF General Assembly.
• Ongoing trade negotiations with the EU focus on dairy market access.
• National Milk Day 2024 celebrated with a high-profile event in New Delhi.
• Kerala launched its largest government-operated goat farm in Kasaragod.
• Mother Dairy signed an agreement with National Cooperative Organics Limited.
• Four men were arrested in connection with the Tirupati laddoo adulteration case.

Future Outlook

The Indian dairy market is on a robust growth trajectory, focusing on issues like stray cattle management and compliance with food safety standards. The Gujarat Cooperative Milk Marketing Federation (GCMMF) plans to establish a new dairy plant in Kolkata, featuring the world's largest curd manufacturing unit. Despite challenges, the sector emphasizes sustainability and global competitiveness. Advancements in animal health are marked by the approval of Biolumpivaxin, a vaccine against lumpy skin disease (LSD), representing a milestone in safeguarding livestock productivity.

With evolving consumer trends, India's role in global dairy production is expected to yield further growth, enhancing its economic impact and trade relations. India is expanding sustainability efforts by rolling out the National Dairy Development Board's cow dung biogas generation models across 250 district dairy cooperatives over the next two years. As international trade negotiations continue, India remains cautious in opening its markets to foreign dairy products, focusing on protecting its domestic industry while enhancing bilateral relations.

Additionally, a recent report by India's Standing Committee on Agriculture, Animal Husbandry, and Food Processing has highlighted the growing disparity between milk price increases and overall food inflation. Miles Hurrell, Chief Executive of Fonterra, remains optimistic about securing a trade deal with India, which could further bolster the company's market reach. Moreover, India and New Zealand have agreed to deepen their security and economic ties and restart talks for a long-stalled free trade agreement. India's rapid expansion in butter exports is particularly striking.

Nestlé expands Nescafé RTD cold coffee to India as part of its strategy to appeal to young consumers in emerging markets. India: Women Take Center Stage in Milk Producer Organisations. Nestlé is rolling out its Nescafé Ready-to-Drink cold coffee range in India, targeting young consumers seeking convenient, on-the-go beverage options.

India carefully negotiates trade agreements post-U.S. tariffs, prioritizing protection for sensitive sectors like dairy and agriculture. Political tensions rise in Karnataka over price hike protests involving milk, diesel, and petrol. India stands to benefit significantly from ongoing trade tensions sparked by U.S. tariff hikes, potentially capturing a substantial share of American dairy exports. The new duties include a 46% on Indian products. India: Quality over cost: New-age dairy brands on the rise. The United States imposed trade tariffs on major global dairy-producing regions including India. India's leading dairy brand, Amul, is expected to see its revenue rise over 10% to approximately Rs 1 lakh crore this fiscal year due to increasing consumer demand for milk and dairy products.

India still imports $50 million worth of dairy products from New Zealand, accounting for 13% of its total dairy imports.

Modified: 2025/04/14

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