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Challenges And Opportunity of Dairy Industry in INDIA

Dairy Industry in INDIA



India is One of the largest producer of Milk in the World. Around 18% of world's Milk production Comes from India alone. According to NDDB Stats India's Milk production in 2018-19 is 187.7 MT( Million Tonnes ) With per Capita Availability in gms/day is 394. You can check all previous years record on their website or by clicking here.




The vast Opportunity and scopes are come along with some challenges and in this article i will Discuss about the various challenges of Dairy Industry in India

For Example-
If you are planning to start a business you may have to face many problems like Capital, resources, Fund, Market etc... I mean to say that if you don't have any opportunity that means you not face any kind of problem also.




So before to Proceed Various Challenges Lets Discuss Opportunity for Dairy Sector in India


1) Vast Availability of Milk - 

As i mentioned Above that India is one of the Largest Milk producer in the World And also it is emerging field which means obviously it grow Over some years. So, there is vast opportunity to Serves Dairy Sector in India and grow your Dairy Business.


2) Healthy Life Style- 

India is developing Country and there is trend to moving towards a good and healthy life. For examples a person who used to consume Street food or junk food and Now he would like to consider a Healthy food Like fresh Milk or Pasteurized Milk. and Everyone know  "Investing in trends will absolutely make Profit".


3) Self Employment-

Starting a Dairy farm with 5-10 Buffaloes and growing it with time results in Wealth of family as well as you are creating Employment Opportunity for yourself as well as for others which contributes also in the Wage Employment in economy.


4) Long term Impact On Indian Economy -

Do you notice that Many MNC (Multinationals Company) are investing large amount of investment in Indian Dairy Sectors. Large amount of investments in Dairy Business will lead to Better technology and Innovation, infrastructure that will impact on Indian Economy for a long period.


5) Integration with Food Industries -

Milk have storage value which makes it highly perishable in nature. In the Food industry we add value in the product,

For Example-
Tomato is highly perishable in nature but if Tomato is convert into Tomato Ketchup, Then it can be store for a longer period than Tomato. That means we add some value in Tomato

Now Same Ideology we are using in Milk Industry, i.e.. Converting Milk in Milk Powder.


6) Product-

Making Products like Ghee, Khoa, Burfi etc.. Categorized Milk in Toned, Double Toned, Full Cream etc.. for lower, Middle Class People, so that everyone can afford milk, will bring Modification Opportunity to Dairy Industry.


Various Challenges of Dairy Industry In India

1) Unorganized Sector

Larger the number of animals result more the production of milk with less input. Country Like USA, large cooperatives of Dairy Farms are engaged in this field which result in the well organisation of Dairy Branch with More Production. 

So if the volume of output is More , the sector is more efficient and it has more efficiency and More Organised.

But in Case of India, Milk production of India is high but still it is Developing Country and the Dairy activity in India it is Low because only farmers have milch animal in 2-3 number. So the Output/Unit is very low, i.e.. low Output per animal management, that make it less efficient and unorganized.

Amul is Market leader of all dairy industry. The main reason behind it that Amul has well organised 3-Tier system that enable it to high efficiency, high volume and More Organised.

2) Contribution Toward Organization-

Even largest producer in all over world , only 20% of total production of milk is channelized  to the marketing and remaining 80% will be considered in unorganized Sector.

For Example -
The Cattle farmer sell his milk to the local Vendor or Milkman. Milkman Collect Milk and sell it to people on its Targeting price.

Here 3 things are should be noticed 
1) Adulteration, 
2) Timing, 
3) Transportation

3) Barriers-

Lack of infrastructure and technology will lead in several problems and Industry face big difficulties

4) Trends- 

All we need to Motivate Farmers to produce More and more Milk of better Quality. 

For Example-
1) Vaccination will improve the health of Milch animal and Produce better quality Milk. But here a trust issue will generate and they refused for vaccination.

2) Also if someone agree for the vaccination, the milk produced over two days is should avoided but farmer still consume milk of the Vaccinated Animal that result in the serious health problem like food intoxication.
So it is very difficult to change people behavior toward a specific trends.



Click here to Know difference between Butter Milk and Lassi 

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