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Indian Dairy Advantage
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You are Here: IndiaDairy.Com / TradeZone / Advantage: Investments / Indian Dairy Advantage

The Indian dairy industry has many advantages to offer the foreign investors and entrepreneurs.
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The Indian Dairy Advantage

Some of the more important factors that give investors in India - the winning edge are:

Size: India is possibly the largest contributor of milk and milk products to the world.
Communication: Made easier due to widespread use of English among the educated farmer.
Government: India is the world's largest independent judiciary, well established and free from government interference.
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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