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Dairy Farming & Dairy Products (milk, Butter, Ghee & Paneer) | |
| Dairy farming has been part of agriculture for thousands of years, but historically, it was usually done on a small scale on mixed farms. Specialist scale dairy farming is only viable where either a large amount of milk is required for production of more durable dairy products such as cheese, or there is a substantial market of people with cash to buy milk, but no cows of their own. Centralized dairy farming as we understand it primarily developed around villages and cities, where residents were unable to have cows of their own due to lack of grazing land. Near the town, farmers could make some extra money on the side by having additional animals and selling the milk in town. Dairy farming is a class of agriculture for long-term production of milk, which is processed for eventual sale of a dairy product. Dairying is an important source of subsidiary income to small/marginal farmers and agricultural laborers. India derives nearly 33% of the gross Domestic population from agriculture and has 66% of economically active population, engaged in agriculture. The share of livestock product is estimated at 21% of total agriculture sector. Milk production alone involves more than 70 million producers, each raising one or two cows/buffaloes primarily for milk production. In addition to milk, the manure from animals provides a good source of organic matter for improving soil fertility and crop yields. The gobar gas from the dung is used as fuel for domestic purposes as also for running engines for drawing water from well.In Hinduism; cow urine has a special significance as a drink. Sprinkling of cow urine is said to have a spiritual cleansing effect as well. Gomutra is not a toxic waste material. 95% of it is water, 2.5% consists of urea, and the remaining 2.5% is a mixture of minerals, salts, hormones and enzymes. As of 2018, India is the leading milk producing country in the world, accounting for ~19% of the global market share. The milk processing industry in India is expected to expand at a compound annual growth rate (CAGR) of ~14.8% between FY 2018 and FY 2023, and will reach INR 2,458.7 Bn in FY 2023. Being one of the primary dairy consumables in India, the increase demand for milk in the country is owed to the increasing population. As of FY 2018, ~81.1% of the Indian dairy and milk processing market was part of the unorganized sector, which produces milk in unhygienic environments. This reduces the overall quality and nutrition levels of the milk produced. India has the highest livestock population in the world with 50% of the buffaloes and 20% of the world’s cattle population, most of which are milch cows and milch buffaloes. India’s dairy industry is considered as one of the most successful development programs in the post-Independence period. India is the world’s largest milk producer, accounting for more than 13% of world’s total milk production. As it is the world’s largest consumer of dairy products, but consuming almost 100% of its own milk production. Dairy products are a major source of cheap and nutritious food to millions of people in India and the only acceptable source of animal protein for large vegetarian segment of Indian population, particularly among the landless, small and marginal farmers and women. In India, about three-fourth of the population live in rural areas and about 38% of them are poor. A specific Indian phenomenon is the unorganized sector of milkmen, vendors who collect the milk from local producers and sell the milk in both, urban and rural areas, which handles around 65-70% of the national milk production. However, it opens a new gate for the dairy farmer to directly reach to the consumer or to shorten the distance between the consumer and producer, leading to higher rates for the product milk. While, in the organized dairy industry, the cooperative milk processors have a 60% market share. The cooperative dairies process 90% of the collected milk as liquid milk whereas the private dairies process and sell only 20% of the milk collected as liquid milk and 80% for other dairy products with a focus on value-added products. In the present situation of world market, the milk and dairy market landscape is a dynamic entity within the food industry new opportunities in emerging markets, increasing globalization, changes in consumer demand, nutritional policy and the regulatory environment are among top issues facing the industry. This will lead to increase of India`s share in the world milk production from the current 16 per cent to 21 per cent in 2020. The core of the dairy industry lies with the milk producing farmer, who gets affected by many factors ranging from fuel and agricultural input prices to government`s foreign policy. The global dairy products market is expected to grow at a CAGR of 5.2% from 2019 to reach $645.8 billion by 2025. Dairy is defined as a business enterprise that deals with the processing and harvesting of animal milk for human consumption. Some of the common milch animals include cow, goat, buffalo, camel and sheep. The milk obtained from these animals can be consumed directly and processed into ice cream, cheese, paneer, butter, ghee, condensed milk and yogurt. These products offer various nutrients such as calcium, proteins, zinc, magnesium, and vitamin D and B12. With widespread demand for dairy products and their proactive function in the global food industry, dairy plays a crucial role in the growth of the economies worldwide. Over the years, the dairy industry has witnessed improvements in product safety through specialization, modernization and consolidation. Moreover, advancements in global trade have also influenced the profitability of dairy farms. As a whole any entrepreneur can venture in this project without risk and earn profit. Few Indian major players are as under Amrut Industries Ltd. Creamline Dairy Products Ltd. India Dairy Products Ltd K M G Milk Food Ltd Milk Mantra Dairy Pvt. Ltd. Sri Vyshnavi Dairy Pvt. Ltd. Taj Milk Foods Pvt. Ltd. Tirumala Milk Products Pvt. Ltd. Vaishno Devi Dairy Products Ltd. | |
| Plant capacity: Milk: 5,000 Ltrs / Day Butter: 120 Kgs / Day Ghee: 100 Kgs / Day Paneer: 220 Kgs / Day Cow Urine: 6,500 Ltrs / Day Kande: 2,900 Pkts / Day | Plant & machinery: Rs 276 lakhs |
| Working capital: - | T.C.I: Cost of Project: Rs 1768 lakhs |
| Return: 27.00% | Break even: 42.00% |
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