Milk Production: A Factsheet
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You are Here: IndiaDairy.Com / Facts & Figures / Milk Production: A Factsheet

Milk Production In the Indian Dairy Industry - Both sides of the coin.
The upside
Increasing awareness
Supply matches demand
Surplus capacity
The downside
Pesticide contamination
Technological gaps
Sections At This LevelMilk Production: A Factsheet
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Dairy Map of India
Policy Organizations
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Expanding Dairy Market
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No. 1 Farm Commodity
Mktg: Today & Tomorrow

Milk Production

The Upside

Increasing awareness: As India enters an era of economic reforms, agriculture, particularly the livestock sector, is positioned to be a major growth area. The fact that dairying could play a more constructive role in promoting rural welfare and reducing poverty, is increasingly being recognized. For example, milk production alone involves more than 70 million producers, each raising one or two cows/buffaloes. Cow dung is an important input as organic fertilizer for crop production and is also widely used as fuel in rural areas. Cattle also serves as an insurance cover for the poor households, being sold during times of distress.

Supply matches demand: Efforts to increase milk production by dairy farmers are strongly influenced by the degree to which demand signals are transmitted through the marketing system. Cooperatives have played an important role in transmitting the message of urban market demand to them. Since the demand in the urban scenario is rapidly increasing so is the supply generated by the farmers.

Surplus capacity: Further, the new dairy plant capacity approved under the Milk & Milk Products Order (MMPO) has exceeded 100 million lpd. The new capacity would surpass the projected rural marketable surplus of milk by about 40 per cent by 2005 AD.

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The Downside

Technological gaps: Several areas of the dairy industry can be strengthened by the induction of state-of-the-art technologies from overseas. Those who bring in new technologies or sign joint ventures with foreign companies stand to benefit the most. To make the best out of the present situation, the following areas require immediate remedial action on the part of dairy entrepreneurs:

Raw milk handling needs to be upgraded in terms of physico-chemical and microbiological attributes of the milk collected. The use of clarification and bactofugation in raw milk processing can help improve quality of the milk products.
Better operational efficiencies are needed to improve yields, reduce waste, minimize fat/protein losses during processing, control production costs, save energy and extend shelf-life. The adoption of Good  Manufacturing Practices (GMP) and HACCP would help manufacture milk products conforming to international standards and thus make their exports competitive.
Latest packaging technology can help retain nutritive value of packaged products and extend their shelf-life. For proper storage and transportation, cold chain needs to be strengthened.
Good scope exists for value-added products like desserts, puddings, custards, sauces, mousse, stirred yogurt, nectars and sherbets.

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