The market milk industry in India and Abroad

THE MARKET MILK INDUSTRY IN INDIA AND ABROAD

The Indian dairy scenario

Although a beginning to organised milk handling was made in India with the establishment of Military Dairy Farms (oldest; Allahabad, 1889), the salient features of the market milk industry so far have been detailed below.

  • Handling of milk in co-operative Milk Unions (oldest : Allahabad, 1913) established all over the country on a small scale in the early stages
  • Long distance refrigerated rail-transport of milk from Anand to Bombay since 1945. Pasteurization and bottling of milk on a large scale for organized distribution was started at Aarey (1950), Worli (1961), Calcutta Haringhata, 1959), Delhi (1959), Madras (1963), etc.
  • Establishment of milk plants under the five year plans for Dairy Development all over India. These were taken up with the dual object of increasing the national level of milk consumption and ensuring better returns to the primary milk producer, their main aim was to produce more, better and cheaper milk.
  • Indian Dairy sector has gained an vital position in Indian economy by providing secondary source of income for millions of rural families and has assumed a most important role in providing employment and income generating opportunity.
  • Per capita availability of milk was 252 grams per day in 2007-08 which increased from 241grams per day in 2005-06, up from 112 grams per day in 1968-69.
  • India's 3.8 -4 percent annual growth of milk production between 1997-98 and 2008-09 surpasses the 1.8 per cent growth in population; the net increase in availability is around 2 per cent per year.

The total number of liquid milk processsing plants under cooperatives is 370 .

The international dairy scenario

  • World milk production was estimated to be around 688 million tonnes in 2008, about 1.7 per cent higher than in the previous year. Prices of skimmed milk powder and butter in the international market fell significantly during the year. In January 2009, prices of dairy commodities in the European countries fell below intervention levels and prompted a fresh declaration of export subsidies. However, by March 2009, prices started rising again.

The credits of Indian Dairying

  • It ranks first with its 185.2 million cattle & 97.9 million buffaloes accounting for about 51 percent of Asia’s and about 19 per cent of world’s bovine population.
  • It also ranks first internationally in milk production with a production of 110 million tonnes in 2009-10. Contributing about 5.4 per cent to India’s agricultural GDP, milk has become the number one agricultural commodity contributing the highest level.
  • The unique feature of the system is that about 120 million rural families are engaged in milk production activities as against big specialized dairy farmers in the west.
  • Another notable feature of Indian dairying sector is that buffaloes contribute more than 53 per cent of the country’s total milk production.
  • Buffaloes are known for their efficiency as converter of coarse feeds into rich milk. Similarly about 45% of total cow milk produced is contributed by crossbred cows.

The lacunae in Indian dairy sector

  • Despite India’s position as highest producer of milk, productivity per animal is very poor. It is only about 987 kg/lactation as against world average of 2,038 kg/lactation. This low productivity is due to the gradual genetic deterioration and general neglect of animals over the centuries and consequent to the rise in the population of non-descript cows (80%) and buffaloes (50%). Other factors contributing to low productivity include continuing draughts in some parts of the country, chronic shortages of feed & fodder coupled with their poor nutritive value and poor fertility of dairy animals.
  • Hence we have to face a twin challenge: increase milk productivity of animals with the limited resources on one hand and make best use of the available milk by processing it into hygienic packaged milk and milk products of high quality to give better returns to the farmer so that the profession sustains.
Last modified: Wednesday, 11 April 2012, 7:46 AM