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India’s Dairy Sector Forecasts 1% Herd Growth and 2.2 MMT Milk Production Increase in 2025 with Government Support

India 28.10.2024
Source: DairyNews.today
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According to the latest report from the U.S. Department of Agriculture’s Global Agricultural Information Network (GAIN), India’s dairy sector is set for moderate growth in 2025, with cow herd sizes projected to reach 62 million, marking a near 1% increase from 2024. The report anticipates India’s cow milk production will climb to 103.2 million metric tons (MMT) in 2025, up from 101 MMT in 2024, driven by supportive government policies, favorable market conditions, and optimal weather patterns.
India’s Dairy Sector Forecasts 1% Herd Growth and 2.2 MMT Milk Production Increase in 2025 with Government Support

Key Factors Driving Growth

  1. Government Support for Dairy and Livestock Sectors
    The Indian government’s increased budget for the fiscal year 2024-25 includes significant allocations to enhance dairy infrastructure, animal breeding, healthcare, and fodder availability. By offering both financial and technical assistance, the government provides critical support for dairy farmers through low-interest credit options for livestock purchases, technical upgrades, and marketing and quality control improvements. This financial support not only promotes the industry but also ensures stable livelihoods for dairy farmers.

  2. Improving Milk Yields
    While India's milk yield still trails other leading producers, advances in breeding, healthcare, and access to quality feed are contributing to improved yields across both indigenous and crossbred cow herds as well as buffalo sectors. This trend is expected to continue supporting India’s milk production growth in the coming years.

  3. Attractive Occupation with Competitive Pricing
    Rising milk prices continue to position dairy farming as a rewarding occupation in India. In regions with established dairy cooperatives, farmers benefit from fair procurement prices, which cover production costs and often include bonuses. Additionally, government-backed programs are facilitating loans to cooperatives, helping them offer competitive prices that make dairy farming more sustainable and attractive.

  4. Favorable Weather Patterns
    India’s Metrological Department (IMD) reported above-normal rainfall from June to September 2024, which increased fodder availability and optimized crop conditions for dairy farming. This abundance of forage resources, combined with expectations of a cool winter and another strong monsoon season in 2025, further supports the nation’s milk production outlook.

  5. Minimal Disease Disruption
    Although certain livestock diseases like Foot and Mouth Disease (FMD) and Brucellosis remain, the dairy sector saw resilience following the 2023 outbreak of Lumpy Skin Disease (LSD), which had impacted cattle mortality. No major disease outbreaks are anticipated in 2025, supporting a stable production environment.


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