 | Geography: Geographical
location in the center of the eastern hemisphere. |
| Low inflation rate: Rarely
double digit |
| Low margin of retail
selling |
| A pool of inexpensive technical and non-technical
manpower |
|
At
20 cents a liter, the farm-gate price of milk is perhaps the
lowest in the world.The native dairy farmer does not receive
any subsidy. So the Indian milk products in the post-GATT world
can out compete those from many advanced nations that now dominate
global markets. As per recent data available, the cost of milk
per 100 kg was at $14.75 in India as compared to $15.5 in New
Zealand and $33 in USA and EU countries. |
|
High
Volumes: With her current output of 78 million
tonnes, India is already the world’s largest milk producer.
While its annual milk production growth rate averages about
5 per cent, the domestic market for products like butter, powder,
cheese, ice cream, dairy whiteners and spreads is galloping
at 10-15 per cent per year. |
|
New
dairy enterprises are cropping up in hundreds:
a few with foreign collaboration have come up. Some make specialty
dairy products like cheese, casein, lactose and whey proteins.
The advent of foreign brands produced
in India is changing the profile of the national dairy industry.
In fact, any multinational food company looking for overseas
manufacturing facilities would find India irresistible. Already,
companies like Heinz, Britannia, Nestle and Nutricia are gaining
popularity. Baskin Robbins and Blue Bunny have also made its
debut with a range of premium ice creams. Others are testing
the waters before making their debut. |
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