India is one of the largest consumers of milk and dairy products with an estimated industry size of around INR 5.4 trillion. India’s dairy market, by 2019, reached an evaluation of INR 10,540 Billion. India has been the leading producer and consumer of dairy products worldwide since 1998 with sustained growth in the availability of milk and milk products. Dairy activities form an essential part of the rural Indian economy, serving as an important source of employment and income. Dairying in India is characterized by an extensive informal distribution system. While reliable published data verifying milk distribution are not available, there is evidence that nearly one-third of all milk produced is consumed on-farm. An estimated 70 percent of the remaining milk is sold in the unorganized sector, either as liquid milk or as home-produced dairy products such as Dahi, Paneer, Butter, Ghee, and Indian sweets. About one-sixth of the Indian milk supply—approximately 16 million tons in 2005—was used for processing in commercial dairy plants, either as packaged ﬂuid milk or manufactured products. Dairy products are perceived by Indian consumers as superior goods and are easy to sell. There appears to be a signiﬁcant potential for increased demand as population and—especially—income grows every year. The volume of milk directed into the formal sector seems woefully inadequate to supply what will be a rapidly-growing market in the higher-income areas. India has progressed from a shortage of 20 million metric tons of milk in 1970 to becoming the world’s largest milk producer by 160 million tons, citing for 18.5 percent of global milk production. It is expected that India will become the largest dairy producer by 2020.
Department of Animal Husbandry (AH&D) is one of the newly formed Department of Fisheries, Livestock, and Dairying ministry. The Department is responsible for matters relating to livestock production, preservation, and protection from diseases and improvement of stocks and dairy development, and also for matters relating to the Delhi Milk Scheme and the National Dairy Development Board.
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The demand for quality dairy products is rising along with the production in many developing countries. Consumption of processed and packaged dairy products is increasing in urban areas. Because of the increasing competition from the private sector, several national and international brands like AMUL, Mother Dairy, ANAND, etc have come into play and extended consumer's expectations of quality. Consumers’ demand for healthy products is growing and this is being reflected in spending patterns. According to a recent study, 74% of consumers pay close attention to the nutritional content of the foods they purchase. , Nowadays, people are willing to pay up to 10 percent more for a healthy product type. The dairy industry is in a good position to benefit from this, due to increased protein utilization for satisfaction, training, and weight management. In addition, there is a growing need for functional food that has many health benefits. Dairy is playing a key role in this sector, through various products such as probiotic yogurts and cholesterol-lowering butter.
Based on 1999–2000 sales, the largest Indian dairy companies were: Gujarat Cooperative Milk Marketing Federation(GCMMF) commonly known as AMUL, Mother Dairy, Nestle India, Hindustan Lever Ltd., Britannia, Andhra Pradesh Dairy Development Cooperative Federation (APDDCF), Hatsun Agro, and Vadilal. Two other ﬁrms, Dynamix Dairy Industries Ltd. And Heritage Foods (India) Ltd. have grown rapidly since 2000 and may have sales that exceed those of the top ten ﬁrms in 1999–2000. Although AMUL dominates the processing sector, and has about three times the sales of its nearest competitors.
Through Operation Flood, the NDDB had created, in India’s 25 states, more than 70,000 village dairy cooperatives with ten million members. Operation Flood had helped increase India’s milk output at a compounded annual growth rate (CAGR) of 4.7% since 1969 (up from a 0.7% CAGR from 1947 to 1969). Operation Flood-inspired cooperatives had raised the incomes of millions of landless or marginal farmers who constituted the cooperatives’ membership. Amul branded products had dominated the retail dairy sector in India for more than 30 years. Amul was India’s most well-known food brand. The Gujarat Cooperative Milk Marketing Federation (GCMMF), India’s largest food company with sales approaching Rupees Rs.19 billion in 1997–98, was the exclusive marketer of Amul-branded products.
Mother Dairy was established in 1974 under the Operation Flood Program as the marketing arm of the NDDB and to create marketing joint ventures with cooperative dairy federations in the states. It is based in New Delhi and is aiming at an Rs.25,000 crore turn-over by 2025. Products marketed include fluid milk, UHT milk, flavored milk, ice-cream, dairy whitener, a variety of cheese, butter, and Indian products such as Dahi, Lassi, and Ghee. Mother Dairy is a product brand that has made its mark on the dairy industry. With its wide range of quality products, it has gained a loyal customer base. By sticking to its tag line of ‘Happy Food, Happy People’. Mother dairy, with its various products, has been successful in managing to cater to people of all ages and to all population demographics. Growing rapidly, the company appreciates its availability in various major cities of the country and especially in the northern part of India.. The company has a vegetable arm named ‘Safal’ through fruits and vegetables are sold by the company in Delhi and Bengaluru. Safal has made its presence known in over 40 countries including places like the United States, Europe, Africa, etc. Mother Dairy also has another brand named ‘Dhara’. The brand, launched by NDDB under Operation Golden Flow program, sells edible oils across the country. The Company also has a diversified portfolio having products in pulses & processed food like fruit juices, jams, etc. to meet the daily requirements of every household. Mother Dairy is a certified organization from ISO 9001: 2008 (QMS), ISO 22000: 2005 (FSMS) and ISO 14001: 2004 (EMS).
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