Doodh Ka Doodh Pani Ka Pani

An Interesting Fact
50% of all Buffaloes and 20% of all Cows
reside in our India.

Flash Back!
Why we stopped raising cattle at home?
Cost
Sanitation
Space

What is Dairy Industry?

Is it Handling of Cows?

Dairy Industry
Handling

of Milk
Handling of Milk Products
Marketing of Milk and Milk Products
Dairy Technology

Dairy Technology
Its a Science of :
Milk processing
Manufacture

Operation Flood
Launched

in 1970
Flood of Milk
Augment Rural Income
Ensuring Fair Prices
Three Phases

First Phase (1970 1980)

Support

from Europe through World

Food Programme
NDDBs Role
Connecting Milk sheds with consumers

Second Phase (1981 to 1985)

Milksheds

increased to 136
290 Urban Markets
43000 Village Co-operatives
4.25 Million Milk Producers

Third Phase
Co-operatives

Expanded

Infrastructure
Cattle

Health Care
Education
30,000 New Dairies
Women Participation

Indian Dairy Industry

One

of the fastest growing sectors in

India, with a total size of about INR1160
billion (INR 1,16,000 crore) OR US$
26.5 billion.
In Dairying, 75 million women are
engaged as against 15 million men.

Indian Dairy Scenario

Position Of Milk Production

By
Farm Level
-45%
Unorganised
-42%
Organised
-13%

Position Of Milk Utilization

Consumed

as Milk
- 46%
Traditional
- 47%
Western
- 7%

Milk Supply Chain, in the traditional

and unorganized dairy system
(i)

Milk producers
directly supply milk
to the consumer or
through a marketing
channel.
(ii) Milk producers
supply milk to the
consumers through
the intermediaries
like middlemen

Producer--Consumer
ProducerMarket--Consumer
ProducerMiddleware
MarketConsumer

Unorganized Dairy System

Retailing

of Milk in India is thoroughly

unorganized.
There is no supply chain management
perspective.
An overwhelming proportion of the Rs.
400,000 crore retail market is
UNORGANISED. In fact, only a Rs.
20,000 crore segment of the market is
organised.

Unorganized Dairy System

As

much as 96 per cent of the 5 millionplus outlets are smaller than 500 square
feet in area.
India per capita retailing space is about
2 square feet thus the lowest in the world
.
Just over 8 per cent of India's population
is engaged in retailing.

Milk Supply Chain, in the traditional

and Organized dairy system
(i)

Producers milk reaches private

processors directly and After Processing it
reaches Consumer.
(ii) Milk producers supply their milk to
primary cooperative society, which inter
alia supplies to secondary cooperative. The
milk, after processing , reaches consumers
via marketing channel, either directly or
through apex cooperative.

Milk Supply Chain, in the traditional

and Organized dairy system
ProducerPrivate

Processor

Consumer
ProducerMiddlemenMarket
Consumer
ProducerPrimary/Secondary
Cooperative SocietyApex Society
MarketConsumer

Major Player in organized sector

Organized Dairy System

From

a size of
only Rs.80,000
crore, the
ORGANISED
retail industry
will grow to Rs.
2,40,000 crore
by 2007.

Challenge for Organized Sector

Competition

from the unorganised

sector.
Organised sector have big expenses to
meet.
Organised retailing also has to cope
with the middle class psychology that the
bigger and brighter a sales outlet is, the
more expensive it will be.

Challenge for Organized Sector

While India as a
country became the
worlds largest milk
producer in 2001,
not a single Indian
dairy company
featured in the list
of global top 20
dairy companies

Opportunity for Organized Sector

Economic

and demographic changes

including rising disposable incomes.
A growing proportion of working
women becoming a part of the urban
population.
Greater awareness due to exposure to
global trends

Turning Point for Organised Sector

The

dairy industry was de-licensed in

1991.
No license is required for setting up of
large-scale production facilities for
manufacture of ice cream.
The exemption limit is increased for
compulsory registration of dairy plants,
from the present 10,000 litres a day to
20,000 litres.

Position Of Organized Sector

There

are 678 manufacturing units

registered with the Central and State
Governments.
The combined capacity of these units is
73 million litres per day while they
process about 29 million litres per day.
Significant excess capacity.

New Activities
Launching

of Venture Capital Fund for

Dairy ----scheme is being implemented through

NABARD to provide loans to entrepreneurs in
dairy and poultry sectors at a lower rate of
interest.
-----The objectives are to encourage clean
milk production, promote use of modern
technology in dairy farms and to bring the milk
produced in the unorganised sector to organised
sector.

Doodh Doodh Doodh

Wonderful Doodh!
Vitamins
Iodine
Calcium
Proteins
Nutrients
Short

Shelf Life

Doodh Ke Parivarwale
55% of Milk produced converted to various
Milk Products

Sabse Bada Khiladi

AMUL
Origin

from the Sanskrit word Amoolya.

Amul is a brand under which GCMMF
markets its products.
Birth of GCMMF is closely linked to
Indias freedom struggle.

The Birth of Amul

First

Co-operative formed on 4th Jan 1946.

Kaira District Co-operative Milk Producers
Union Ltd. formed 14th Dec 1946.
Gujarat Co-operative Milk Marketing
Federation (GCMMF) was formed in 1973.
Dr. Verghese Kurien was the architect of
Amuls success.

Dr.Kurians Mantra for Amul

Quality
Economy
Availability
Service

Aaj Ka Amul
GCMMF

is Indias largest food products

marketing organisation.
12 district co-operative milk producers
union.
2.5 million producer members.
2.28 billion litres milk collected in 20052006.
Sales turnover stands at Rs.37736 million
in 2005-06 (Rs.13790 million in 1995-96)

Amul Products

Amul
Milk

Butter

powder

Toned
Dahi

Milk

Market

Market

Share

Position

85%

60%

65%

60%

Amul Products

Flavoured
Ice

Milk

Creams

Cheese
Ghee

Market

Market

Share

Position

55%

75%

90%

8%

Mother Dairy
No.1

Regional Player in India.

It was set up in 1974 under the Operation
Flood Program.
It is now a subsidiary company of a wholly
owned company of the National Dairy
Development Board (NDDB).

Products
Mother

Dairy markets & sells dairy

products under the Mother Dairy brand
(like Liquid Milk, Dahi, Ice Creams, Dairy
Whitener and Butter)
Mother Dairy sources its entire
requirement of liquid milk from dairy
cooperatives

Strengths

Strengths

Demand profile: Absolutely optimistic.

Margins: Quite reasonable, even on packed liquid milk.
Flexibility of product mix: Tremendous. With balancing
equipment, you can keep on adding to your product line.
Availability of raw material: Abundant. Presently, more
than 80 per cent of milk produced is flowing into the
unorganized sector, which requires proper
channelization.
Technical manpower: Professionally-trained, technical
human resource pool, built over last 30 years.

Weakness
Perishability
Lack

of control over yield

Logistics of procurement
Problematic distribution
Competition

Opportunity
Value

addition
Areas of Value addition

Value added products like

Shrikhand,paneer,khoa,flavored milk, dairy
sweets etc
Addition of cultured products like yoghurt and
cheese lend further strength in utilization of
recourses and presence in the market place
Export potential Amul is exporting to
Bangladesh, Sri-Lanka, Nigiria and the Middle
East

Threats

Milk Vendors, the un-organized sector.

Today milk vendors are occupying the pride of the

place in the industry.

Organized dissemination of the information about the

harm that they are doing to producers and consumers
should see a steady decline in the importance

Operation Flood.