ILRI and Chairman,
ICFA Working Group on Dairy
Indian dairy segment has seen phenomenal rise. The white revolution portended the rise of Indian dairying segment making India the largest milk producer in the world. Indians’ natural inclination to dairy products and the increasing demands from an expanding population made the rise of the industry mandatory. Today, India is the world’s largest producer of dairy products by volume, accounting for more than 13% of world’s total milk production, and it also has the world’s largest dairy herd in 75 million dairy farms, about half of all dairy farms in the world. India has an edge over many developed countries with lowest cost of in the world but has high cost of conversion to dairy products. It might be due to lack of scale at both production and processing level. India is a net exporter of the dairy products though has merely captured only 1% of global dairy trade despite being the largest milk producer.
Indian dairy market is amongst the largest and fastest growing market in the world. India has been able to maintain its position in milk production during the past 18 years with about a 4% CAGR during the last five years. Strong farm gate prices and rising domestic demand for value-added dairy products are the major factors providing impetus to a steady increase in milk production. Though India is the largest milk producing country, milk yield in the country is still very less as compared to other top milk producing countries like USA, Germany, France and New Zealand.
Moreover, milk processing capacity in the country has increased over the years due to increase in demand of good quality, hygienic and packaged milk and milk products. Of the total milk processed in the country, 65% to 70% is sold as liquid milk. The rest is processed into dairy products like cheese, butter, ghee, ice cream, curd etc. The conference thus aims to derive solutions to expand Indian dairy’s productivity and profitability.
The Conference aims at achieving the following specific objectives: