[b]Consumer trends and drivers of behavior in the Indian Dairy Food Market[/b]

Mumbai, India – May 5, 2014 The dairy industry is of crucial importance to India. The country is the world’s largest milk producer, accounting for more than 13% of the global production. Simultaneously, India is the world’s largest consumer of dairy products, consuming almost 100% of the milk produced within the country. 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 the large vegetarian segment of the Indian population, particularly among the landless, small and marginal farmers and among women.

[b]The dairy market in India[/b]

The total amount of milk produced has more than tripled from 23 million tonnes back in 1973 to 74.70 million tons, in 1998, which has further increased to produce a record 140.6 million tons in 2014. The tremendous rise in milk production is primarily the result of the fallout of the dairy farming policy reflected in Operation Flood. Following the success of the dairy farming policy, the Government has set up a dairy processing policy, reflected in the Milk and Milk Products Order. In addition, the Government uses a variety of import restrictions to protect its domestic dairy market.
The milk processing industry is small compared to the huge amount of milk produced every year in the country. Only 10% of all the milk is delivered to some 400 dairy plants. A specific Indian phenomenon is the unorganized sector of milkmen and vendors who collect the milk from local producers and sell the milk in both urban and non-urban areas, which accounts for around 65-70% of the national milk production. 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.
Future of the dairy market in India

There is no doubt that there is tremendous scope for further growth of the dairy industry in the new millennium. The product mix of world dairy trade is likely to shift further towards cheese in the recent times. As standards of living in the importing country rises, exporting countries will increasingly concentrate on whole milk powder and cheese with the assistance of butter and skimmed milk powder. India is likely to soon tap into the vast potential for the export of dairy products, the cost of milk production in India being the lowest. As the market opens up, consumption trends associated with these markets will have increasing influence on the world trade. Whole milk powder is likely to continue to be a substantial beneficiary and is expected to grow substantially in the Middle Eastern countries. The major factor influencing production of byproducts is the newer uses that may be developed through R&D support.

[b]For further insights, Dairy Market India[/b]

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