AF Animals Milk Dairy Intro

8/10/2019 AF Animals Milk Dairy Intro

1/41

1 Milk and Dairy Sector

World Scenario

he annual world trade in milk products (excluding intra-EU) amounts to 33

T milliontonnes, aluedat US!1" #illion$%arel&' to o*the worldmilkproductionis tradedinternationall&$The#ulko* theworlddair& tradeis incheese,#utter andpowders$+ growingshi*ttowards cheeseisexpected inthe near*uture$Two d&namicproductswitha su#stantialpro ectedgrowthin thecoming&ears

are &oghurt and dessert$

The international dair& trade is dominated #& *our pla&ers - EU, ew .ealand,

+ustralia and US+ - which together account *or /0 o* all exports$ ew .ealand and

+ustralia export as much as /" and 0" o* their milk production respecti el&$ The

+sia- aci*ic region has #een and will remain a net milk importer in the *oreseea#le

*uture$ 2t accounts *or the #ulk o* milk powder imports and hal* o* the imports o*

condensed and e aporated milk$ 2n contrast, most cheese imports go *rom de eloping

countries to de eloped countries such as apan and the United States$

The dair& industr& is regulated in most countries through arious wa&s$ 2mports are

commonl& restricted, and exports *re4uentl& su#sidised$ 5igh dair& price supports

in man& countries are put in place to stimulate production to the extent that

su#sidies *or exports are necessitated to maintain domestic dair& programmes$

1


2/41


3/41

Technology E xport Potential of Milk a nd Dairy S ector

With substantial

and continued

investment in

building up milk

production, India

can emerge as a

major exporter of

dairy products and

technologies in the

next few decades.

2n the

United

Kingdo

m , all

the

milk

produc

ed #&

*armer

s is

procur

ed #&

the

cooper

ati es

$

ri at

e

dairie

s are

re4uir

ed to

#u&

their

milk

re4uir

ement

*rom

cooper

ati es

$ ew

.ealan

d has

no

pri ate sector

dair& plants$ +s

man& as 6" per cent

o* dairies in the

erstwhile West

7erman& and 1"" per

cent in 8enmark,

etherlands and

Sweden are in the

cooperati e sector$

2n the United

States , " per cent

o* the dair&

industr& is

cooperati e$ 8air&

programmes are

su# ect to more

7o ernment

participation or

regulation than most

other domestic

agricultural

industries in the

US+$ There are also

9ederal :ilk

:arketing ;rders and

mo ement #arriers in

the US+ *or


4/41

*or indi idual

dair& *armers,

primaril& *or

the *luid market

and impro ing

the #alance o*

market power

#etween *armers

and handlers$

2n the emerging

li#eralised

glo#al scenario,

trade-distorting

agricultural

policies ha e

#een the *ocus o*

the 7+TT

multilateral

trade

negotia

tions$

With

the

li#eral

isation

o*

agricul

tural

trade

under

the new

7+TT

regime,

the

hea &

su#sidi

es

pre ale

nt in

the dair& sector in

the countries o* the

EU as well as in the

US+ will ha e to #e

#rought down in the

next *ew &ears$ The

competiti e

ad antages o* the

2ndian dair& industr&

are then considered

to #e su#stantial$

With su#stantial and

continued in estment

in #uilding up milk

production, 2ndia can

emerge as a ma or

exporter o* dair&

products and

technologies in the

next *ew decades$

2


5/41

Technology E xport Potential of Milk a nd D airy S ector

2ndian

Scenario

2ndia has one

o* the largest

li estock

population in

the world$

9i*t& percent

o* the

#u**aloes and

twent& percent

o* the cattle

in the world

are *ound in

2ndia, most o*

which are milk

cows and

#u**aloes$

8air&

de elopment in

2ndia has #een

acknowledged

the world o er

as one o*

modern 2ndia=s

most

success*ul

de elopmental

programme$

Toda&, 2ndia

is the largest

milk producing

countr& in the

world$

:ilk and milk

products is rated

as one o* the

most promising

sectors which

deser es

appreciation in a

#ig wa&$ When the

world milk

production

registered a

negati e growth

o* > percent,

2ndia per*ormed

much #etter with

? percent growth$

The total milk

production is

o er > million

tonnes and the

demand *or milk

is estimated at

around /" million

tonnes$

%& >""0, the alue

o* 2ndian dair&

produce is

expected to #e @s$

1,""",""" million$

2n the last six

&ears

*oreig

n

in est

ment

in

this

sector

stood

at @s$

3'""

millio

n

which

is

a#out

one-

*orth

o* the

total

in est

ment

made

in

this

sector

$

:anu*a

cture

o*

casein

and

lactos

e,


6/41

largel& #eing

imported

presentl&, has

good scope$

Exports o* milk

products ha e

#een

decanalised$

The milk surplus

states in 2ndia

are Uttar

radesh, un a#,

5ar&ana,

@a asthan,

7u arat,

:aharashtra,

+ndhra radesh,

Aarnataka and

Tamil adu$ The

manu*acturing o*

milk products is

concentrated in

these milk surplus

States$

Today,

India is

the

largest

milk

produci

ng

countr

y in the

world.

3


7/41


Livestock a ccounts

for nea rly 15.8% of

the world cattle

population, more

than half of the

world buffalo

population.

The

produc

tion

o*

milk

produc

ts

i$e$

milk

produc

ts

includ

ing

in*ant

milk

*ood,

malted

*ood,

conden

sed

milk B

cheese

stood

at

3$"

lakh

tonnes

in

1666-

>"""$

roduc

tion

o*

milk-

powder including

in*ant milk-*ood

had risen to >$>0

lakh tons in 1666-

>""", whereas that

o* malted *ood is

at '0""" tons$ The

trends in

production o* milk

products in 2ndia

is gi en in

Annexure 1.

Cheese and

condensed milk

production stands

at 0""" and 11"""

tonnes

respecti el&$ Some

plants are coming-

up *or producing

lactose, casein and

impro ed cheese

arieties$

Di estockopulatio

n

2ndia is rich in its

li estock wealth$ 2t

accounts *or nearl&

10$/ o* the world

cattle population,

more than hal* o*


8/41


9/41


which has since

registered a

igorous growth

o* o er ?$0 per

annum a*ter the

&ear 16 "$ The

production o*

milk in 2ndia

has #een

increasing

steadil& as

shown in

Annexure 3.

The ma or

milk

producingstates are

U , un a#,

@a asthan,

:$ ,

:aharashtra

and 7u arat$

um#er o*

milk products

manu*acturing

lants ha e

come up in

these states

*or

rocessing o*

milk$

resentStatus

The 2ndian dair&

industr& achie ed

su#stantial growth

during the / th 9i e

ear lan, achie ing

an annual output o*

o er '" million

tonnes o* milk$ This

not onl& places our

industr& second in

the world a*ter the

United States, #ut

represents sustained

growth in real

a aila#ilit& o* milk

and milk products

*or our #urgeoning

population$ :ost

important, dair&ing

has #ecome an

important secondar&

source o* income *or

millions o* rural

*amilies$

2mpro ed genetic

material achie ed

primaril& through

cross #reeding o*

cattle and upgrading

o* the national

#u**alo herd has

pla&ed a signi*icant

role

in

increa

sing

the

produc

ti it&

$

7radua

l

extens

ion o*

impro

ed

hus#an

dr&

practi

cesF

increa

se in

consum

ption

o*

#alanc

ed

concen

trates

made

possi#

le, in

part,

throug

h

inno a


10/41

tions in the

*ield o*

nutritionF

expanded area

under *odderF

greater access

to eterinar&

careF and

ad ances in the

*ight against

endemic and

epidemic cattle

diseases ha e

also contri#uted

to increased

production and

producti it&$

+#out three

4uarters o* the

milk produced is

consumed at the

household le el$

;* the milk

supplied to the

market, a#out 6-

11 percent is

processed in

o er > 0 dair&

plants and

Dairying has become

an important

secondary source of

income for millions of

rural families.

5


11/41


About 45% of milk

production is

consumed as uid

milk. About 35% is

processed into

butter or ghee;

about 7% is

processed into

Paneer (cottage

cheese) and other

cheeses, about

4% is converted

into milk powder;

and the balance is

used for other

products such as

Dahi (yoghurt) and

sweet meats.

/3

milk

produc

t

*actor

ies

operat

ed #&

cooper

ati e,

pri at

e

dair&

proces

sors,

and

go ern

ment

milk

scheme

s in

the

orogan

iGed

sector

$ :ilk

channe

led

throug

h

;perat

ion

9lood

cooper

ati es

is

generall& processed

in dair& plants

located in the rural

areas and then

transported into

cities and towns$

;peration 9lood :ilk

productions account

*or a#out 1 " o*

total milk

production or ?" o*

the marketed output$

The #alance (a#out

6" o* total

production) is

handled #& the

pri ate traders and

processors$

+#out ?0 o* milkproduction is

consumed as *luid

milk$ +#out 30 is

processed into

#utter or gheeF

a#out is

processed into

aneer (cottage

cheese) and other

cheeses, a#out ?

is con erted into

milk powderF and

the #alance is used

*or other products

such as 8ahi

(&oghurt) and sweet

meats$ 2n recent


12/41

&ears, there

has #een an

increasing ice

cream

production as

*oreign

companies ha e

in ested in

2ndia$

2ndustr&SegmentsH

1. Cheese

The organised

cheese market

including its

ariants like

processed

cheese, cheese

spreads,

moGGarella,

*la oured and

spiced

cheese

, is

placed

at

around

@s 3

#n$

roces

sed

cheese

at 0"

o* the

o eral

l

market

is @s$

1$0 #n

strong

$ The

next

most

popula

r

arian

t is cheese spread

claiming a share o*

around 3" o* the

total cheese

market$ The market

is primaril& an

ur#an phenomenon

and is know to #e

growing at around

10 $ The market *or

cheese cu#es slices

and tins is

growing$ The

*la oured cheese

segment has #een

declining$

2n 2ndia, 7u arat

Cooperati e :ilk

:arketing

9ederation (7C::9)

with the +mul #rand

continues to #e the

main

6


13/41


operator in the

#randed cheese

market in 2ndia

with a#out '"

market share in

the #randed

market$ 2t

pioneered the

market *or

processed,

#randed cheese$

What 7C::9 did

was to de elop

the technolog&

to make cheese

*rom #u**alo

milk$ World

o er it is made

*rom cow milk$

Annexure 4

gi es the

market siGe o*

cheese in

2ndia$

;ther

cheese

manu*acture

rs are H

%ritannia

2ndustries,

8&namix

8air&

2ndustries

(882),

5iranandani,

ET+ and :etro$

2. Ice Cream

The ice cream market

in 2ndia is

estimated to ha e

reached the le el o*

@s$ 1" #n per annum,

o* which the

organised sector is

a#out @s$ ' #n$ The

unorganised market

has #een shrinking$

The per capita ice

cream consumption in

the countr& is

extremel& low at >0"

ml per &ear compared

with that o* the US,

which is a#out >>

litre$

The organised market

*or ice creams o*

a#out '" mn litres,

has #een growing at

around 10 per

annum$ The ice cream

industr& has, in a

short span o* time,

undergone a

structural

trans*ormation$

Annexu

re 5

(a

and 5

(!

shows

the

growth

o*

market

siGe

o* 2ce

Cream

in

2ndia

and

the

market

struct

ure o*

this

segmen

t

respec

ti el&

$

3. Chocolat

es

The


14/41

Chocolates

market is

estimated at

30,""" tonnes

alued at

approximatel&

@s$ /$" #n$ The

chocolate

counter market

is worth nearl&

@s$ >$0 to 3$0

#n and the rest

is made up o*

chocolate #ars$

Chocolates in

*act make up

less than a

*ourth o* the

sweet-tooth

products

including sugar

#oiled

con*ectioner&

mints and

chewing gums$

Sugar

con*ectioner& is

#& *ar the

largest segment

with a share

Market growth rates

indicate that the

cheese market in India

is g rowing steadily.

The organised market

for ice creams of

about 60 mn litres,

has been growing at

around 15% per

annum.

7


15/41


The organised

dairy industry

processes an

estimated 15% of

the total milk

output in India.

The industry has

maintained a high

growth prole,

especially in the

wake of the

Operation Flood,

colloquially also

termed as White

Revolution,

initiated in early

1980s.

exceed

ing

'" $

Annexu

re "

(a

and "

(!

gi es

the

market

siGe

are

struct

ure o*

chocol

ate

market

in

2ndia$

4. Dai

ryWhiteners

The

organi

sed dair& industr&

processes an

estimated 10 o* the

total milk output in

2ndia$ The industr&

has maintained a

high growth pro*ile,

especiall& in the

wake o* the

;peration 9lood,

collo4uiall& also

termed as White

@e olution,

initiated in earl&

16/"s$ Toda& 2ndia

produces o er /" mn

tonnes o* milk

annuall&$ 2n terms

o* alue, the total

milk econom& is

estimated at @s$

1>"" #n$

The market *or dair&

whiteners

(commerciall& know as

#e erage milk powders

and condensed milk)

and creamers is

around @s$ >, 0" mn$

The growth o* market

siGe o* dair&

whiteners in the last

1" &ears is gi en in

Annexure # (a and


16/41


17/41


The potential

*or exportsF

especiall& to

neigh#ouring

countries and

the countries

in the :iddle

east, the 7ul*

and +*rica,

also exist and

could #e

exploited$

5. BabyFoods

Con entionall&,

*oods (solids,

semi-solids and

li4uids)

administered to

#a#ies o* upto

two &ears o*

age are

classi*ied as

#a#& *oods$ 2n

some cases,

howe er, #a#&

*oods are

continued to #e

gi en to

children older

than o* two

&ears depending

on socio-economic,

health-related and

geo-societal

con entions$

The concept o*

packaged #a#& *oods

is relati el& recent

in 2ndia$ The

traditional homemade

*oods ha e dominated

this sector until

the induction o*

packaged *oods

mostl& *rom

multinational

companies$ %a#&

*oods ha e assumed

special signi*icance

in the recent &ears

#ecause o* greater

awareness o* h&giene

and health and

constraints on time

o* #us& mothers$ +

relia#le, health&,

con enient and

read&-to-use #a#&

*ood is the

re4uirement o* the

da&$ 2ndia is

catching up with the

rest o* the

de eloped world in

this area rater

*ast$

+

compar

ison

o*

growth

rates

o er

the

last

1"

&ears

shows

that

these

has

#een a

stead&

rise

o*

market

siGe$

Annexu

re $

(a

and $

(!

gi es

the

market

siGe

and

the

market

struct


18/41

ure o* #a#&

*oods in 2ndia$

The packaged

*ood products

*or #a#ies are

#roadl&

classi*ied into

a) cereal-#ased

such as estumF

#) cereal-#ased

with milk such

as 9arex,

Cerelax, c)

milk-#ased such

as Dactogen, d)

read&-to-*eed

li4uids, and e)

rusks and

#iscuits$ 2n*ant

milk *oods

constitute the

most signi*icant

segment$

The potential for

exports; e specially to

neighbouring co untries

and the countries in

the Middle east, the

Gulf an d Africa, exi st

and could be

exploited.

9


19/41


The two major

bakery products,

biscuits a nd bread,

account for 82% of

all bakery

production.

Biscuit isestimated to enjoy

around 37% share

by volume and

75% by value of

the bakery

industry.

6. BiscuitsandBak

eryProduct

s

The

2ndian

#aker&

indust

r& is

domina

ted #&

the

small-

scale

sector

with

an

estima

ted

0","""

small and medium-

siGe producers,

#esides the 10

units in the

organised sector$

+part *rom the

nature o* the

industr& which

gra itates to the

markets and caters

to the local

tastes, the

industr& is widel&

dispersed$

The two ma or #aker&

products, #iscuits

and #read, account

*or /> o* all #aker&

production$ The

unorganised sector

accounts *or a#out

two-thirds o* the

total #iscuits

production estimated

at 1$3 mn tonnes$ 2t

also accounts *or /"

o* the total #read

production which is

estimated at 1$0 mn

tonnes and around 6"

o* the other #aker&

products estimated at

"$' mn tonnes$ The

last includes


20/41

pastries, cakes,

#uns, rusks and

others$ Annexure

% (a and % (!

gi es the growth

o* market siGe o*

#iscuits o er the

last ten &ears$

%iscuit is

estimated to

en o& around

3 share #&

olume and 0

#& alue o* the

#aker&

industr&$ The

organised

sector caters

to the medium

and premium

segments, which

are relati el&

less price-

sensiti e$ The

organi

sed

sector

is

una#le

to

compet

e at

the

lower

price

range

due to

the

excise

ad ant

age

en o&e

d #&

the

in*orm

al

sector

$

The organised

segment in #iscuits

has witnessed a

stead& growth o*

a#out ' , con*orming

#roadl& to the

growth rate o* 78 $

The production

crossed the one-

million tonne mark

in 1660-6' which has

now grown #&

estimated 3" $

The siGe o* the

#read market is

estimated at @s$ 13

#n$ There are a

num#er o* producers

in #oth sectors,

organised and

unorganised$ 9rom a

low priced

commodit&, #read has

10


21/41


graduated

into a

#randedproduct

with

discriminat

ing prices$

7. Confectionery

The 2ndian

con*ectioner&

market includes

sugar #oiled

con*ectioner&,

hard-#oiled

candies,

to**ees and

other sugar-

#ased candies$

2n >""", sugar

#oiled

con*ectioner&

had penetrated

an estimated

10 o* the

households

onl&,

suggesting a

large potential

*or growth$

There are a#out

0,""" units

catering to the

local markets$

The total olume o*

the sugar #oiled

con*ectioner& market

in the organised

sector (comprising

plain J hard-#oiled

candies, to**ees,

eclairs and gums) is

around 1>0,"""

tonnes$ +dd to this

the unorganiGed

sector and the market

*or all t&pes o*

con*ectioner& is o*

the order o* >0","""

tpa$ That translates

into '' market share

o* the unorganiGed

sector #& olume$ 2n

alue terms it is

less than 0" $

The sector=s

expansion at a

rate o* >0 in

166/ had dropped

to 1 in 1666

and registered a

negati e growth

o* > in >"""$ 2n

the long run it

is slated to grow

at / to 1"

annuall&$ The

growt

h in

the

siGe

o*

the

con*e

ction

er&

marke

t isgi es

as

Annex

ure

1&

(a .


22/41

The total volume of the

sugar boiled

confectionery market

in the organised sector

is around 125,000

tonnes. Add to this the

unorganized sector

and the market for al l

types

of

confect

ionery

is of

the

order

of

250,00

0 tpa.

1

1


23/41


With the objective

of promoting

exports of milk

products, the Govt.

have dechannelised

the export of t hese

milk products with

effect from mid

1993.

Export

sExport

o*

certai

n milk

produc

ts

like

milk

powder

, ghee

and

#utter

was

canali

sed

uptil

1663$

With

the

o# ect

i e o*

promot

ing

export

s o*

milk

produc

ts,

the

7o t$

ha e

dechannelised the

export o* these milk

products with e**ect

*rom mid 1663$

+ccording to the

EK2: olic& *or

166 ->"">, the

polic& *or export o*

these milk products

is as under

H

owder milk

(skimmed or *ull

Cream) whole and

in*ant milk

*ood, pure milk

7hee and %utter,

except whenexported as

#randed products

in consumer

packs, not

exceeding 0 kgs

in weight, will

#e exempted *rom

the *ollowing

conditions H

)i

Luantitati

e ceiling

as ma& #e

noti*ied

#& the

879T *rom

time to


24/41

time$

i )

registrat

ion-cum-

allocatio

n

certi*ica

te issued

#&

agricultu

ral and

processed

9ood

roducts

Export

8e elopme

nt

+uthorit&

(+ E8+)$

The 8irector

7eneral o*

9oreign Trade,

:inist

r& o*

Commer

ce

ide

u#lic

otice

o$

?/J@E-

6/J166

->"">

dated

13th

;cto#e

r,

166/

ha e

remo e

d the

4uanti

tati e

ceilin

g *or

export o* powder

milk and ghee and

their export is now

*reel& allowed$

5owe er, #utter, i*

exported in

packaging exceeding

0 kg$ in weight,

continues to #e

under the

4uantitati e

ceilings$

roducts *or exports

- Skimmed :ilk

owder, Whole :ilk

owder, 7hee,

%utter, Cheese,

Condensed :ilk,

Casein etc$ are some

o* the milk products

#eing exported *rom

2ndia$

12


25/41


The export

*igures o*

dair&

products

during the

last *i e

&ears are

gi en in

Annexure 11.

:a or

8estination

s- U+E

(?3 ),

epal

(16 ),

%angladesh

(1> )

'uture Markets

South East

+sia, @ussia

and +*rica will

#e the emerging

market *or

2ndian dair&

products$ 2n

the immediate

*uture, there

is prospect o*

an additional

demand o* o er

3 million

tonnes o* milk

products in the

+SE+ region

alone$ The EU

dair& exports will

#ecome limited #&

7+TT agreements,

while +ustralia-

ew .ealand do not

ha e ade4uate

production

capacit&$ E4uall&

signi*icant is the

rise o* @ussia as

the world=s

#iggest dair&

importer$ +lthough

#& *ar the #iggest

milk producer in

Europe, the

@ussian output has

declined #& more

than >0 percent in

the past *i e

&ears$ The

short*all in milk

production is

estimated to #e 13

million tonnes a

&ear$

These ma or

de*icits in milk

a aila#ilit&

o**er an

opportunit& *or

2ndia

to

*ill

this

acuu

m and

to

#ecom

e

leadi

ng

dair&

expor

ting

natio

ns$

otential*or

alueaddedproducts

Ethni

c

2ndia

n

dair&

produ

cts

like


26/41

Sweets

Shreekhand,

@usgulla, Aho&a

and @ead&-to-

Eat-Aheer,

5aluwa, etc$

ha e good

demand in the

countries where

ethnic 2ndian

population is

settled$ 9or

promotion o*

these products,

we re4uire

export worth&

consumer

packing, which

also impro es

the shel*-li*e

o* the product$

South East Asia,

Russia and Africa will

be the emerging

market f or I ndian dairy

products.

13


27/41


Steps 2nitiated #& + E8+

+ E8+ has initiated *ollowing steps toincrease export o* dair& productsH

Standards ha e #een laid down *or export o* dair& products

+ E8+ is o**ering su#sidies *or implementation o* 5+CC and

2S; 6""", installation and upgradation o* la#oratories and

market promotion through sending o* samples, printing o*

catalogue #rochures and #rand pu#licit& through

ad ertisement etc$ under it=s plan scheme$ Export market

de elopment will depend on ensuring the 4ualit&$ This will

re4uire that exporters ensure 4ualit& *rom the milk animals

to the port and #e&ond$ To #uild the 4ualit&, mechaniGed

dair& *anning re4uires encouragement with export oriented

processing *acilities$ :anu*acturing units linked #&

contract with large scale producers, can ensure o* 4ualit&

raw material necessar& to enter and maintain the position in

the international market$ 2t is the cow milk which is

recognised in the international market$ Since 2ndia is

producing more o* #u**aloe milk, there is a need *or generic

promotion o* #u**aloe milk$ :an& countries in the world do

not import milk products *rom 2ndia since 2ndia is reporting

man& li estock diseases particularl& 9:8$ E**orts are,

there*ore, needed to control and eradicate 9:8 at least in

ma or milk producing States$ Creation o* chilling *acilities

at #lock le elJ illage le el and transportation o* li4uid

milk to processing units in ree*er units$

14


28/41


+ SW;T+nal&sis o*8air&2ndustr& in2ndia

Strengt s

1 Enhanced

milk

producti

on with

conse4ue

ntl&

increase

d

a aila#i

lit& o*

milk

processi

ng$

2 2mpro edpurchasing powero* theconsumer$

3 2mpro edtranspor

tation

*aciliti

es *or

mo ement

o* milk

and milk

products

$

4 2ncreasing

a aila#ili

t& o*

indigenousl&

manu*actur

ed

e4uipment$

5 Darge

num#er o*

dair&

plants

(>0>) in

pu#lic and

cooperati e

sector

#esides

se eral

others

coming up

in the

pri ate

sector$

6 Iast pool

o* highl&

trained and

4uali*ied

manpower

a aila#le

to the

industr&$

7 Countr&=s

ast natural

resources

o

*

*

e

r

i

m

m

e

n

s

e

p

o

t

e

n

t

i

a

l

*

o

r

g

r

o

w

t

h

a

n


29/41

d

de elopmen

t o*

dair&ing

With our

strengths

we ha e to

#e aware o*

our

weaknesses

also$

)eaknesses

1 Tropicalclimateconditions$

2 Seasonal*luctuations in milk

productionpattern$

3 Species-

wise

ariation

(#u**alo,

cow, goat

etc$) in

milk

4ualit&

recei ed

#& milk

plants$

4 Dack o*marketinga enues*or thedair&produce$

* reats

1 2ntroductiono* *oreign

products in2ndianmarket$

Vast

pool of

highly

trained

and

qualie

d

manpo

wer

availab

le to

the

industr

y.

Countr

ys

vast

natural

resour

ces

offer

immen


30/41

se potential for

growth and

development of

dairying

15


31/41


The liberalisation

of the Dairy

Industry is likely to

be exploited by

multi-nationals.

Increasing

demand for uid

milk as well as

value added

products.

1 2

n

c

r

e

a

s

i

n

g

ch

e

m

i

c

a

l

c

o

n

t

a

m

i

n

a

n

t

s

a

s

w

el

l

as

residual

anti#iotic

s in milk$

2 oormicro#iological4ualit& o*milk$

3 Export o*

4ualit& *eed

ingredients

particularl&

cakes under

the

li#eraliGatio

n polic&$

4 8e*icienc&

o* molasses,

a rich

source o*

energ& and

#inding

agent in

*eed

industr& and

constituent

o* urea

molasses

mineral

lick$

5 Excessi e

graGing

pressure


32/41

on

marginal

and

small

communit

& lands

resultin

g in

complete

degradat

ion o*

land$

6 Extinctio

n o* the

indigenou

s #reeds

o* cattle

due to

indiscrim

inate use

o*

cross#ree

ding

programme

to

enhance

milk

productio

n$

7 The

li#eralisa

tion o*

the 8air&

2ndustr&

is likel&

t

o

#

e

e

x

p

l

o

i

t

e

d

#

&

m

u

l

t

i

-

n

a

t

i

o

n

a

l

s

$

T

h

e

&

will #e

interested in

manu*acturing

milk products

which &ield

high pro*its$

2t will create

milk shortage

in the countr&

ad ersel&

a**ecting the

consumers$

2nspite all

these pro#lems

and threats we

ha e clear cut

and tremendous

opportunities

#e*ore us

+,,ortunities

1 7reat

impro ed

export

potential *or

milk products

o* western as

well as

traditional

t&pes$

2 Esta#lishe

d andexpanding

market *or


33/41

traditio

nal

dair&

products

$

3 2ncreasi

n

g

d

e

ma

nd *or

*luid milk

as well as

alue

addedproducts$

16


34/41


1 %& productUtiliGation *or

importsu#stitution$

2 Emplo&mentgeneration$

3 7rowingdemand*or milkand milkproducts$

4 Di#eralisedpoliciesin dair&sector$

5 + aila#i

lit& o*

large

resource

s o*

uncon en

tional

*eeds

and*odders

6 + aila#ilit&

o* di erse

germplasm

with uni4ue

*eatures

like heat

tolerance,

disease

resistance,

dra*ta#ilit&

and a#ilit& to

sur i e and

produce under

stress

conditions$

7 + aila#ilit&

o* animal

production

technologies

*or *aster

de elopment

and e**ecti e

implementatio

n$

8 There

should #e

an

integrated

structure

o*

marketing*or milk

and milk

products$

9 2ntegrated

structure

*or

li estock

marketing

through

r

e

g

ul

a

t

e

d

m

ar

k

e

t

s

$

10 2

m

p

r

o

e

d

c

o

l

l

e

c

t

i


35/41


36/41

All the milk

products except

malted foods are

covered in the

category of industries

for which foreign

equity participation

upto 51% is

autom

atically

allowe

d.

17


37/41


38/41


intended *or ensuring sa*et& in the consumption o* these

*ood items and *or sa*eguarding against harm*ul

impurities and adulteration$ The Central Committee *or

9ood Standards, under the 8irectorate 7eneral o* 5ealth

Ser ices, :inistr& o* 5ealth and 9amil& Wel*are, is

responsi#le *or the operation o* this +ct$ The

pro isions o* the +ct are mandator& and contra ention o*

the rules can lead to #oth *ines and imprisonment$

Milk and Milk Product Order (MMPO) 1992

The :ilk and :ilk roduct ;rder (:: ;), 166>, issued on une

6, 166> seeks to ensure the suppl& o* li4uid milk, an

essential commodit&, to consumers #& regulating its

processing and distri#ution$ Within eight &ears o* its

operation, the CentralJState @egistering +uthorities ha e

till 8ecem#er >""" registered ''' units with a total

processing capacit& o* '0$/ million litres per da& (mlpd)$

Salient 9eatures o* the :: ; ;rder include the *ollowingH

M @egistrations *or units handling up to 0,""" litres o*

milk per da& are granted #& the State 7o ernments and

units with more than 0,""" litres per da& capacit&

are registered #& the Central @egistering +uthorit&$

M The Certi*icate also speci*ies the milkshed area,

which, under the order is de*ined as a geographical

area demarcated #& the @egistering +uthorit& *or

the collection o* milk #& the registered unit$

M :aintenance o* speci*ied h&gienic conditions in

the premises where milk and milk products are

handled, processed, manu*actured or stored$

19


39/41


The collection, transportation and processing o* milk

normall& centres around the operations o* a processing

plant$ The region *rom which the marketa#le surplus o* milk

production *inds its wa& to a processing plant is called a

Nmilkshed=$ The concept o* milkshed areas is pi otal to the

:: ;$ 9or an orderl& de elopment o* the dair& industr&, a

proper assignmentJallocation o* milkshed is critical$

Standards on )eig ts and Measures

(-ackaged ommodities /ules 1%##

These @ules la& down certain o#ligator& conditions *or

all commodities that are packed *orm, with respect to

declarations on 4uantities contained$ These @ules are

operated #& the 8irectorate o* Weights and :easures,

under the :inistr& o* 9ood and Ci il Supplies$

1) 6oluntary Standards

There are two organiGations that deal with

oluntar& standardiGation and certi*ication

s&stems in the *ood sector$ The %ureau o*

2ndian Standards looks a*ter standardiGation

o* processed *oods and standardiGation o* raw

agricultural produce is under the pur iew o*

the 8irectorate o* :arketing and 2nspection$

2) 7ureau o8 ndian Standards (7 S

The acti ities o* %2S are two *old, the *ormulation o*

2ndian standards in the processed *oods sector and the

implementation o* standards through promotion and

through oluntar& and third part& certi*ication

s&stems$ %2S has on record, standards *or most o*

processed *oods$ 2n general, these standards co er raw

20


40/41


materials permitted and their 4ualit& parameters,

h&gienic conditions under which products are

manu*actured and packaging and la#elling re4uirements$

:anu*acturers compl&ing with standards laid down #&

the %2S can o#tain and


41/41


in the list o* 5igh riorit& 2ndustries$ +utomatic

appro al will #e gi en upto 01 9oreign 2n estment

in 5igh riorit& 2ndustries$ 2n case o* other

2ndustries, proposals will #e cleared on case to

case #asis$ 7o ernment ma& allow 01 without

en*orcing the old limit o* ?" applica#le under

9oreign Exchange @egulations +ct at its discretion$

22

AF Animals Milk Dairy Intro

Documents