In India, dairy farming has been an age-old business that is being passed down from generation to generation. However, there has been decline in this field from the late 20th century. But the advancement of science and technology has a made a huge progress. For example, Amul industries has been played an important role in boosting of white revolution. This development has made a transforming change in the dairy industry in India, it has brought the dairy farming from a very stagnation level to a world leading level. Some of the important sectors of cow’s farms and buffalo farms, these are the foundation of the dairy industry. Some high producing milk’s buffalos’ breeds are Jaffarbadi, Murrah and Mehsani.
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NPCS’s assists you to be the part of the growing Industries of total milk shares and dairy Industries in India. There are option for growth of informal as well formal sectors of dairy industries.
Demand conditions:
Country like India where population rate is very high, the demand rate is increasing day by day. In India, the demands for dairy products is likely to grow significantly in the coming years, which results for developing of higher incomes, more consumers and greater interest in nutrition. In Urban areas, consumption rate for processed and packaged dairy products is increasing at very high level. As there is significantly increasing of competition at market level among many private sectors, several nationalist and international brands. These competitors have entered the market and expanded consumers’ expectation of quality even at a place where there is only a small proportion of the population. In most of the places, mainly at low developed area, people have still preferred to take unpacked and unprocessed milk which are delivered by a local milkman just due to its better taste.
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| Market size and growth | Market growth is due to high per capita consumption, increasing population and health consciousness |
| Consumption patterns | Consumption of processed and packaged dairy products is increasing in urban areas |
| Consumption patterns | Unpackaged milk is still preferred because of taste and price |
| Sophistication of consumers | Consumer awareness on product quality is increasing but in a very small portion of the population |
| Receptivity to new products | Mostly urban consumers have a very low but increasing interest in new products |
| Price elasticity | Price elasticity is high |
| Impact of market opening on demand | Consumers now have a variety of quality products |
Market structure:
Till 2002, in the formal sectors the cooperatives traditionally were the dominant player’s dairy industries. There has been significant growth in the dairy industry the private investment has increased at a very significant level. In spite of such growth in dairy Industries, there has been low contribution in an organized sector’s as compare to formal sector. One of the biggest reasons for such issues is that most of the produce milk are sold through the informal sector or unorganized sector. As per many data’s the demands for the informal sector is approximately 41 percent of the milk or of total milk products produced in the country. This sector accounts for about 75 percent of the marketable surplus of milk. And the formal channel of a packaged milk and dairy products, accounts only for about 25 percent of the marketable surplus, which is about 15 percent of production.
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NPCS’s play a major contribution from providing detailed project report to setting of Industries even at a small level.
| Performance | The dairy Industries has the large share of produce approximately there is 85% of marketable surplus which passes from the informal channel. |
| Quality of milk through informal channel is an issue and to some extent in formal channel as well | |
| Competitive structure | Little competition to cooperatives because private sector was not allowed in the sector until recently |
| Governance (value chain type) | Governance of cooperative structures is constaining efficiency and expansion |
| Farmer organization | Immense scope for improving management and governance through farmer organizations |
| Marketing chain capacity and efficiency | Scope for enhancing efficiency of distribution |
| Distribution channels | Cooperatives have a well-developed distribution channel in urban areas |
| How market signals are conveyed or distorted | Government and political interference in price setting, limits prices being determined by market forces. |