SEMINOR REPORT ON “ DAIRY INDUSTRY”

CHAPTER – I
INTRODUCTION

Dairying provides livelihood to millions of Indian farmers and generates additional income
and employment for a large number of families in the countryside. Dairy industry is the
single largest contributor to India’s GDP and with its profound social impact, involves over
80 million small farming households. However, India with about18.36 per cent of the
world’s total cattle and buffalo population accounts for only about 14.5 per cent of the
world’s total milk production.
Our livestock are roughly half as efficient as the average milk animals in the world and
probably only one-fifth as efficient as those in the advanced countries. Although milk
production in India has shown a rising trend ever since the inception of ‘Operation Flood
(OF)’ programme in 1970-71, the Indian dairy industry acquired substantial growth from
eighth plan onwards with rise in milk production from 58 million tonnes in 1992-93 to
108.5 million tonnes in 2008-09. This has not only placed Indian dairy industry on top of
the world but also led to sustained growth in the availability of milk and milk products for
the burgeoning population of the country.
To maintain our first position in milk production, India will have to face healthy
competition from other countries. For this, only producing largest quantity is not sufficient,
but the quality of milk and other factors also need to be borne in mind, the 2 "operation
flood" programme will have to be supported by quality improvement and quality
maintenance. Dairying has brought about socio-economic transformation in Tamil Nadu
and is playing a significant role in strengthening rural economy. Majority of milk
producers are small farmers, marginal farmers and downtrodden.
Dairying has vast potential to generate employment and has helped in alleviating poverty
in rural belt. Dairying provides definite and regular income and employment to millions of
rural families throughout the year, improving the quality of their life. The milk producers
in the Co-operative sector collectively on an average get daily income of Rs.262 lakh (Rs.95,
630 lakh annually) for the milk they supply to the dairy societies which show the

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importance of this sector in the rural economy. Tamil Nadu is one of the front line states in
milk production and stands at number one position in the coverage of more than 50 per
cent of revenue villages under Co-operative ambit. There are 7833 functional primary milk
societies with 22.10 lakh members. During 2007-08 average milk procurement by Dairy Co-
operative was 26.27 lakh litres per day (LLPD).

Dairying and agriculture are bound together by a set of mutual inputoutput relationships.
Dairying is not an adjunct to the crop-mix of Indian farms, but an integral part of the total
farming system. Hence, treating dairy cattle as the backbone of the livestock wealth of our
country would not be an exaggeration. Though the dairy industry in India has undergone
considerable transformation over the years and is considered the secondary source of
income for millions of rural households, in terms of per capita consumption of milk, India
still compares poorly among the nations of the world. Therefore in view of ensuring food
security, livelihood security and rural development, the Indian dairy sector is a strategic
one.

ABOUT MILK

Milk is highly nutrition and majority of Indian population rely on milk for their protein
supplement. Milk is obtained by bread cows and buffaloes, either manually or through
satirized milk cream, cheese, ghee, condensed milk protein are the dairy products which
are separated from milk through various process.

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OBJECTIVES

Karnataka Milk Federation (KMF) is a cooperative apex body in the state

of Karnataka representing dairy farmers association and also implementing
dairy development activities to achieve the following objects:
 To provide assured and remunerative market for the milk produced by
the farmer members.
 To provide quality milk to urban rural consumers.
 To build village level institutions in cooperative sector to manage the
dairy activities.
 To ensure provision of milk production inputs processing facilities and
dissemination of know-how.

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The Leading Dairy Product Companies in India consist of both government

organizations and private companies which are mostly under the control of
different state governments. The Leading Dairy Product Companies in India
are working together with the National Dairy development Board (NDDB)
towards the elimination of malnutrition amongst children. These companies
offer host of highly nutritious milk products.

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Overview of Dairy Product Companies

The Leading Dairy Product Companies in India, which are under the control
of different state governments, are generally cooperatives. These cooperatives
buy milk from the dairy farmers at minimum support price. Later these
cooperatives process it to different high nutritious milk products. The leading
private milk product companies of India are more into producing and further
processing of these milks. Most of the Leading Dairy Product Companies in
India are well equipped to handle processing of bulk quantities of cow and
buffalo milk. Further, the technology used by these leading companies of
India to process the milk is at par with international standards.

Furthermore, they strictly adhere to international quality manufacturing and

environment safety standards and such that they follow GMP and HACCP.
Some of these Leading Dairy Product Companies in India are having state-of-
the-art R&D centers, aggressively working on development of quality milk
products rich in nutritious value. India is the largest producer of milk and
milk products in the world. However, the country has recorded the highest
number of malnourished children in the world. These Leading Dairy Product
Companies in India are working together with the National Dairy
Development Board (NDDB) towards the elimination of this problem. The
Leading Dairy Product Companies in India are also working with the
National Dairy Development Board towards educating dairy farmers on
producing quality milk, cattle disease control, cattle feeding, genetic
improvement of cattle, vaccination and other allied education on dairy
farming.

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List of Top Dairy Milk Companies in India

 Aravind Foods
 Choco~a`la Carte
 Dynamix Dairy Industries Ltd
 Param Dairy Limited
 Heritage Foods (India) Ltd
 Kream Kountry
 Mahaan Foods
 Dhruv Makhan (India) Limited
 VRS Foods
 Mother Dairy
 Lactose (India) Ltd.
 Modern Dairies Limited
 Gits Food Products Pvt. Ltd.
 Pastonji Ice Cream
 Haryana Dairy Dev. Ltd.
 National Dairy Dev. Board
 Amul and Gujarat Coop.
 A.P Dairy Dev. Coop. Fed. Ltd.
 Orissa State Coop. Milk Ltd.

Dairy Milk Products

 Bread Spreads
 Butter
 Margarine
 Flavored Bottled Milk
 Buttermilk
 Spray Infant Milk Food
 Instant Full Cream Milk Powder
 Skimmed Milk Powder
 Dairy Whitener
 Fresh Milk
 Double Toned Milk
 Cream
 Toned Milk
 Cheese Spreads
 Cheese
 Ghee
 Cooking Butter
 Condensed Milk
 Ice Cream
 Shrikhand
 Chocolates

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.

1. Amul
I think everyone knows about Amul it is number one brand in the country. The revenue is over
$3 Billion. Amul has over 750 employees.

 Year of Establishment: 1946 by Verghese Kurien

 Main Products: Milk, Butter, Ghee, Milk Powder,
Chocolate, Paneer, Curd etc
 Head Office: Anand, Gujarat
 Website: www.amul.com

2. Mother Dairy

 Year of Establishment: 1974 by National Dairy

Development Board (NDDB) and has over 6
manufacturing plants
 Main Products: Milk, Ice- Creams, Dahi, Lassi and Flavored Milk
 Head Office: Noida, Uttar Pradesh
 Website: www.motherdairy.com

3. Kwality Limited

 Year of Establishment: ISO certified company established in 1992 and acquired by

Dhingra Family in 2002
 Main Products: Milk, Ghee, Curd, Lassi, Paneer and Ice Cream
 Head Office: New Delhi—110027
 Website: www.kdil.in

4. Orissa State Cooperative Milk Producers Federation (OMFED)

 Year of Establishment: 1985

 Main Products: Toned Milk, Ghee, Curd, Cheese, Lassi, Butter and Ice Cream
 Head Office: Bhubaneswar-751007, Orissa
 Website: www.omfed.com

5. Andhra Pradesh Dairy Development Cooperative Federation Ltd.

 Year of Establishment: 1960

 Main Products: Milk, Curd, Paneer and Ghee under brand name Vijaya
 Head Office: Hyderabad, AP
 Website: apdairy.in

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6. Karnataka Co-Opeartive Milk Federation (KMF)

 Year of Establishment: Not Known

 Main Products: The company has over 50 milk products like Toned Milk, Curd, Lassi,
Ghee, Milk Powder, Ice Cream, Chocolates
 Head Office: Bangalore 29, Karnataka
 Website:a www.kmfnandini.coop

7. Dynamix Dairy
A dairy company in Maharashtra.

 Year of Establishment: 1995

 Main Products: Milk, Milk Powder, Cheese, Butter and Ghee
 Head Office: Mumbai
 Website: www.eriefoods.com

8. AAVIN

 AAVIN is Tamil Nadu Co Op Milk producers federation ltd.

 Year of Establishment: 1952
 Main Products: Toned Milk, Full Cream Milk, Flavored Milk, Ghee, Cheese, Butter
 Head Office: Chennai 600051- Tamilnadu
 Website: www.aavinmilk.com

9. MILMA
Kerala Co-operative Milk Marketing Federation Ltd

 Year of Establishment: 1980

 Main Products: Milk, Curd, Paneer, Chocolate, Ice Cream, Ghee
 Head Office: Thiruvananthapuram-695 004. KERALA
 Website: www.milma.com

10. Dudhsagar Dairy

The last one is from Gujarat.

 Year of Establishment: 1963

 Main Products: Milk, Ghee, Milk Powder, Yoghurt, Ice Cream and Flavored Milk
 Head Office: Mehsana, Gujarat 384 002
 Website: www.dudhsagardairy.coop

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TOP TWO COMPANIES FINANCIAL STATEMENT

Financials - Amul Industries Pvt Ltd

Y/e 31 Mar ( In .Cr) Mar-2016 Mar-2015 Mar-2014 M

Equity capital 4.55 3.70 3.70

Preference capital -- -- --

Reserves 35.40 33.10 34

Net worth 40 36.80 37.70

Minority interest

Debt 91.20 98.50 96.30

Deferred tax liabilities (net) -- 0.62 1.34

Total liabilities 131 136 135

Fixed assets 33.60 38.30 45.20

Intangible assets

Investments 7.95 0.85 0.83

Deferred tax asset (net) 0.04 -- --

Net working capital 89.40 95.80 88.80

Inventories 48.90 45.10 42.10

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Y/e 31 Mar ( In .Cr) Mar-2016 Mar-2015 Mar-2014 M

Inventory Days -- -- --

Sundry debtors 39.80 41.70 50.70

Debtor days -- -- --

Other current assets 63.90 75.80 57

Sundry creditors (47) (49) (42)

Creditor days -- -- --

Other current liabilities (17) (18) (19)

Cash 0.25 0.90 0.51

Total assets 131 136 135

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MOTHER DAIRY- FINANCIAL STATEMENT

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What was the contribution of the Indian dairy industry towards the
GDP in 2015-16

Don't have the 2015–16 figures, but I can work out the 2014–15 figures.

The annual milk production was 1,46,300 million tonnes. Now if that milk was
sold by the producers at Rs 15/kg , it would generate Rs 21,94,500 million .

The GDP of India in 2014–15 was Rs 126 trillion.

That makes the Dairy Industry's contribution about 1.7 % of India's GDP.
Say 2% if you add upstream value addition.

Economic survey 2015-16: India ranks first in milk production,

accounting for 18.5 % of world production

The Economic Survey 2015-16 presented on Friday in the Parliament by the

Union Finance Minister Arun Jaitley emphasizes that the Indian agricultural
system is predominantly a mixed crop-livestock farming system, with the
livestock segment supplementing farm incomes by providing employment,
draught animals and manure.

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India ranks first in milk production, accounting for 18.5 % of world

production, achieving an annual output of 146.3 million tones during 2014-15
as compared to 137.69 million tonnes during 2013-14 recording a growth of
6.26 %. Whereas, the Food and Agriculture Organization (FAO) has reported
a 3.1 % increase in world milk production from 765 million tones in 2013 to
789 million tones in 2014.

The per capita availability of milk in India has increased from 176 grams per
day in 1990-91 to 322 grams per day by 2014-15. It is more than the world
average of 294 grams per day during 2013. This represents a sustained growth
in availability of milk and milk products for the growing population Dairying
has become an important secondary source of income for millions of rural
households engaged in agriculture.

The success of the dairy industry has resulted from the integrated co-
operative system of milk collection, transportation, processing and
distribution, conversion of the same to milk powder and products, to minimize
seasonal impact on suppliers and buyers, retail distribution of milk and milk
products, sharing of profits with the farmer, which are ploughed back to
enhance productivity and needs to be emulated by other farm
produce/producers.

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In the poultry segment, the Government’s focus, besides framing suitable
policies for enhancing commercial poultry production, is for strengthening the
family poultry system, which addresses livelihood issues.

Both egg and fish production has also registered an increasing trend over the
years. Egg production was around 78.48 billion eggs in 2014-15, while poultry
meat production was estimated at 3.04 MT.

Fisheries constitute about 1 % of the GDP of the country and 5.08 per cent of
agriculture GDP. The total fish production during 2014-15 was 10.16 MT, an
production during the last quarters of 2015-16 has also shown an increasing
trend and is estimated at 4.79 MT (Provisional). There is increasing
significance of poultry and livestock products in the context of diversifying
farm and non-farm activities in the agriculture sector to increase livelihood
security.

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SWOT
(Strengths, Weaknesses, Opportunities, Threats)

Strengths

 Largest milk producer

 Fast growing economy
 Annual highest milk production growth
 Emerging competent regulatory system and authority
 New Food safety and standard law
 Trained S&T human resource
 Research and Educational Institutes
 'Strong successful cooperative movement', in particular parts of India

Opportunities
 Large rural market
 Increasing quantity of available milk for processing
 Fast growing economy
 Diversification
 large market and investment opportunity
 increasing income of consumers,
 changing life style and preference for milk and milk products,
 more number of adult consumers,
 untapped indigenous milk products market
 low cost human resource and emloyment generation

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Weaknesses
 Low milk productivity Poor veterinary services
 Lack of data on dairy sector
 Weak organised retailing and established cold chain
 Large unorganised dairy sector
 Poor raw milk quality
 Lack of Good dairy practices
 Weak financial services
 Low dairy plants efficiency
 Inappropriate milk collection system in certain areas

Threats

 Food safety
 Unhygienic practices by farmers at farm
 Uncontrolled use of antibiotics and medicines on milch animals
 Unfriendly WTO regime and Imports from other countries
 Drought and flood

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FINDINGS
GENERAL FINDINGS RELATED TO DAIRY BUSINESS IN
WORLD

 Comparatively dairy business has been rapidly developing

because of views of modern techniques of dairy business.
 Qualitative by-products have been produced.
 If quantitative milk is not supplied by milk producer , the
membership of
co-operative dairy is cancelled by the authority.
 Consumers are very conscious regarded the quality of milk and
milk
product.
 Government policy regarding the production of the milk seems
to be must
favorable to dairy business.
 Export promotion has been made to milk and milk products.
 Comparatively consumption of milk and milk product has been
increasing.
 Health approach and milk consumption seems to be favorable.
 Favorable atmosphere for cross breed cows and improved
buffalo.
 Use of biological techniques.
 Low cost of production.

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Conclusion:

 Highly competitive Indian dairy industry poses threat/challenges

for the survival in the global dairy market.
 There is no doubt that there is tremendous scope for the growth
of the dairy industry in the new millennium.
 The dairy industry in Indian has been on a steady path of
progression since Indian independence.
 Dairy industry is has a very complex product line that is
compounded by the products very short life span.
 Retailers and customers are forcing downward pricing
pressures on industry .
 Demand of the dairy products is increasing worldwide
.necessitating innovation in the supply chain.
 Industry is using latest technologies to manage the supply chain
and efficiently monitor products.

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Bibliography :

www.moneycontrol.com

www.indiandairyindustry.com

http://www.dairyfoods.com

http://www.milkproducts.com

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