Chapter 1

Introduction

1.1 Introduction to Industry –

Human have been drinking animals‘ milk since ancient times. Sanskrit records mentioned
milk 6,000 years ago. The Bible describes the promised land as ―a land flowing with milk and
honey.‖ Some 2,300 years ago, the Greek physician Hippocrates recommended milk as a
medicine. Christopher Columbus brought cattle to the New World on his second voyage.
Cows were brought from Europe to the American colonies in the early 1600s and to Australia
in 1788.

Dairy is a significant part of the human diet across the world. It offers an abundance of
nutrients in the form of calcium, minerals, and proteins.

The modern large-scale dairy industry developed with the growth of cities and fast,
refrigerated transportation. In 1841, at the request of railroad stationmaster Thomas Selleck, a
farmer successfully shipped a wooden churn of milk by rail 60 miles (97 kilometers) to New
York City. A few years later wooden shipping containers were replaced by metal cans.
Sometimes the cans were packed in ice to keep the milk cool. Mechanical refrigeration began
to be used between 1880 and 1890. In 1892 Nathan Straus established the first infant milk
depot in the United States. He offered sterilized milk for sale at five cents a quart or one cent
a glass. The glass milk bottle was invented by Hervey D. Thatcher in 1880.

The end of the 19th century also saw the advent of the power cream separator and the first
commercial pasteurizers.

The production of milk on dairy farms and the processing of milk and milk products at dairy
plants make up the dairy industry. Along with producing many kinds of milk, the industry
makes butter, cheese, yogurt, and ice cream.

Dairying produces food products that form a regular part of many people‘s diets, and in many
parts of the world it is a big business and major employer. Among the leading milk producers

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are India, the United States, the European Union, Russia, Pakistan, Brazil, China, Ukraine,
New Zealand, Australia, Argentina, and Mexico.

Most of the milk used for human consumption worldwide comes from cows, but in some
areas milk and dairy products are produced from buffalo, goats, sheep, camels, or reindeer.

In the early 21st century, the world‘s dairy plants produced some 650 million tons of milk
each year, more than 80 percent of which was cow‘s milk.

In the United States the dairy industry produced about 80 million tons of cow‘s milk
annually.

1.2 Dairy Industry in India –

In India, the use of the dairy goes far beyond the dietary and nutritional. Its importance is
deep-seated in Hindu mythology. Hindus consider cows to be sacred embodiments of the
goddess Kamdhenu. The Rigveda, written around 1,700 BCE, mentions the use of milk and
other dairy products in the Indian subcontinent. This, in part, has led India to be one of the
leading producers and consumers of milk in the world.

India‘s journey to the summit of the dairy market started in 1970 under the guidance of ―Dr.
Verghese Kurien.‖ ‗Operation Flood’ - a massive dairy development program, marked
the beginning of India‘s transformation from milk deficient nation to its largest producer.

India is ranked 1st in milk production contributing 23 % of global milk production .Milk
production in the country has grown at a compound annual growth rate of about 6.2% of
reach 209.96 mn tonnes in 2020-21 from 146.31 mn tonnes in 2014-15. The top 5 milk
producing state are : Uttar Pradesh ( 14.9% ,31.4 MMT) ,Rajasthan (14.6%,30.7 MMT
),Madhya Pradesh (8.6%,18 .0 MMT),Gujrat (7.6%,15.9 MMT)and Andra Pradesh (7.0%
,14.7MMT).

Despite being an important contributor to the country‘s economy, the Indian dairy industry is
highly unorganized, fragmented, and lacks technological advancements. The unorganized

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sector consists of traditional milkmen who sell raw or unprocessed milk to their customers
and other vendors. The organized sector, on the other hand, consists of various private
cooperatives. Amul, the Indian dairy cooperative society was one of the leading brands
worldwide. Along with the Gujarat-based cooperative, Karnataka Milk Federation were the
two most dominating players in the country.

India now has indisputably the world's biggest dairy industry.India also produces the biggest
directory or encyclopedia of any world dairy industry. The dairy sector in India has shown
remarkable development in the past decade and India has now become one of the largest
producers of milk and value-added milk products in the world.

About the Dairy Sector in India :-

 Dairy is one of the biggest Agri- businesses in India and a significant contributor to
the Indian economy.
 It is the largest single agricultural commodity with a 4 % share in the economy.
 India is the largest producer of milk globally , It produces over one-fifth of the
global milk production.
o Organizations like Amul, Mother Dairy, Kwality Limited, etc. have played a
pivotal role in expanding the production. Amul today has over 3.6 million
milk producers nationwide.
o Further, there has been a proliferation of private dairy enterprises that now
account for more than 60 % of dairy processing capacity in the country.
 In the Gross Value Added (GVA) from agriculture, the livestock sector contributed 28
percent in 2019-20. Further, India witnesses a 6% growth rate in milk production
every year.
 The dairy sector serves a wide range of consumer needs too – from protein
supplements and health foods to indulgence foods such as yogurt and ice creams.

1.3 Significance of the Dairy Sector in India :-

1) Tackling agricultural uncertainties: Farmers keep 2-5 milk animals for livelihood.
They provide great support to them, especially during drought and flood. Further,
dairying is not a seasonal occupation in nature, like agriculture.

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2) Nutritional Support: The milk and associated products have immensely helped India
in reducing the malnutrition and undernourishment levels in the country. Thus, the
dairy sector is indispensable for meeting the nutritional requirement of the country‘s
rising population.

3) Employment Generation: It is a significant contributor to farmers‘ income as

approximately 70 million farmers are directly involved in dairying.

4) Reduces Import Bill: Operation Flood (also called as White

Revolution) converted India from a milk importer to the world‘s largest producer.

a. The program launched in 1970 and adopted a multi-pronged approach. This

included tax incentives, food quality standards, subsidies on inputs,
infrastructure provisions such as cold chain and electrification.

b. All this helped in reducing import bills and made India an exporter. The
country exported dairy products worth $187 Million in 2019-20.

5) Women Empowerment: Female population comprises around 69% of the sector‘s

workforce. They are dependent on the sector for their livelihood. Therefore, the dairy
sector‘s development automatically augments women‘s empowerment.

6) Boosting other sectors: The dairy sector provides cow dung which is used as an
organic manure for the agricultural sector. Further, the sector provides raw materials
to manufacture processed foods.

a. For instance, the whey protein powder is an extract from the watery portion of
milk that separates from the curds during the cheese-making process.

1.4. Areas of Production:

These are the major production area of Dairy Products in India

1. Uttar Pradesh,
2. Maharashtra,
3. Himachal Pradesh,
4. Madhya Pradesh,
5. Punjab,

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 6. Rajasthan
7. Tamil Nadu.

1.5 . Major Export Destinations (2021-22)-

India's Export of Dairy products was 108,711.27 MT to the world for the worth Rs. 2,928.79
Crores/ 391.59 USD Millions during the year 2021-22.

1) Bangladesh
2) United Arab EMTs,
3) Bahrain
4) Malaysia
5) Saudi Arab
6) Qatar.

1.6 .Government initiatives for Dairy industry -

1. National Programme for Bovine Breeding & Dairy Development (NPBBDD)

2. Rashtriya Gokul Mission

3. Foot and Mouth Disease – Control Programme (FMD-CP)

4. Nationwide Artificial Insemination Programme (NAIP)

5. Kisan Credit Card (KCC) Scheme

1. National Programme for Bovine Breeding & Dairy Development (NPBBDD)

About the scheme -The particular scheme was formulated by merging four schemes of the
Department of Animal Husbandry and Dairying viz. National Project for Cattle and Buffalo
Breeding (NPCBB), Intensive Dairy Development Programme (IDDP), Strengthening
Infrastructure for Quality and Clean Milk Production (SIQ and CMP) and assistance to
cooperatives.
Benefits
The following tangible and intangible benefits can be obtained by the farmers and societies

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under the scheme:
 Milk chilling facilities at Village, Block and District levels
 Equipment for bulk milk coolers (BMCs) and chilling centers
 Milk processing and marketing, Milk procurement
 Cattle shed,Cattle induction
 Construction/establishment of milk and milk product testing laboratories
 Clean milk production kits ,Technical input services
 Information and Communication Technology (ICT)
 Manpower and skill development
 Working capital for dairy co-operative societies and milk union
 Rehabilitation of defunct/sick
 Planning and monitoring

Implementing Agencies
The implementing agency at the state level will be the State Dairy Federation and Milk
Unions in other cases. The End Implementing Agencies or EIAs will be the District Milk
Unions, New Generation Milk Producer Companies and District Rural Development
Authority where District Milk Unions do not exist.

2. Rashtriya Gokul Mission

About the scheme -Rashtriya Gokul Mission (RGM) was launched in December 2014 for
development and conservation of indigenous breeds through selective breeding in the
breeding tract and genetic upgradation of non-descript bovine population.
Benefits
1. Awards for encouraging farmers/breeder societies to rear indigenous breeds of
bovines: In order to motivate farmers for rearing of indigenous breeds and to enhance the
production and productivity of indigenous breeds, the following awards have been instituted
under RGM every year:
 Gopal Ratna Awards: For farmers maintaining the best herd of Indigenous Breed(s)
and practicing best management practices. There are three Gopal Ratna Awards (1st,
2nd and 3rd position).
 Kamdhenu Awards: For Best managed Indigenous Herd by Institutions/Trusts/
NGOs/ Gaushalas or best managed Breeders‘ Societies. Kamdhenu Awards are three

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 in number respectively for five regions viz: i) Hill and North Eastern; ii) North; iii)
South; iv) East and v) West.
Each award consists of a citation and an incentive of Rs 5,00,000/-, Rs.3,00,00/-and Rs
1,00,000/- each respectively for 1st, 2nd and 3rd position for every region. In case of equal
scoring the cash incentive component of the award is shared accordingly.
2. Gokul Gram:The Rashtriya Gokul Mission also envisages establishment of integrated
cattle development centres ‗Gokul Grams‘ to develop indigenous breeds including upto 40
percent nondescript breeds.
3. “E-Pashu Haat”- Nakul Prajnan Bazaar:An e-market portal connecting breeders and
farmers, an authentic market for quality- disease free bovine germplasm in the form of
semen, embryos, calves, heifers and adult bovines with different agencies/stake holders.
4. Pashu Sanjivni: An Animal Wellness Programme encompassing provision of Animal
Health Cards (‗Nakul Swasthya Patra‘) along with UID identification and uploading data on
National Data Base.
5. Advanced Reproductive Technology:Including Assisted Reproductive Technique- In-
vitro Fertilization (IVF)/ Multiple Ovulation Embryo Transfer (MOET) and sex sorted semen
technique to improve availability of disease free female bovines.
6. National Bovine Genomic Center for Indigenous Breeds (NBGC-IB)will be established
for selection of breeding bulls of high genetic merit at a young age using highly precise gene
based technology
Implementing Agencies
Rashtriya Gokul Mission is being implemented through State Implementing Agencies (SIA)
viz. Livestock Development Boards. All Agencies having a role in indigenous cattle
development are ―Participating Agencies‖ like CFSPTI, Central Cattle Breeding Farms,
ICAR, Universities, Colleges, NGO‘s, Cooperative Societies. The scheme is implemented on
100 percent grant-in-aid basis and is operated through-out the country. Rural cattle and
buffalo keepers irrespective of caste, class and gender can be benefitted.

3. Foot and Mouth Disease – Control Programme (FMD-CP)

About the scheme -The Foot and Mouth Disease (FMD) in India has a serious socio-
economic implication. The programme is being implemented in entire country since 2017-18.
Benefits
 The dairy animals will be vaccinated free of cost as the scheme is cent percent

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 sponsored by central government.
 Each and every outbreak should be investigated to know the epidemiology of the
disease with forward and backward linkage.
 Isolation and containment of sick animals and their treatment.
 Ring vaccination (5-10 Km) radius around the affected village/area to cover all the
susceptible animals including sheep, goats, pigs etc. to prevent virus transmission
 Restriction/control of movement of infected animals to prevent the spread of the
infection.
 Disinfection and implementation of bio-security measures.
 Adequate Public awareness campaign in outbreak areas.
Implementing Agencies
The Department of Animal Husbandry and Dairying, Government of India makes policy for
implementation of control programme, arrange vaccine supply, other logistic support, cold
chain and extend financial support for implementation of the programme. The State
Departments of Animal Husbandry are the front line implementers of the said programme.
States/UTs where FMD – CP is operational, undertake vaccination in a time bound manner,
keep records and provide manpower to undertake various activities under the programme.

4. Nationwide Artificial Insemination Programme (NAIP)

About the scheme -The scheme was started in September 2019 with aim to inseminate over
1 crore bovines in 6 months and ear-tag them with ‗Pashu Aadhaar‘ which is a unique
identification provided to the animals so as to enable the Government to identify and track
the animals uniquely with all details such as the breed, age, gender and owner details.
Benefits
The major benefit to the farmers is free of cost AI of their dairy animals. Other benefits of
the scheme include; providing doorstep reliable AI, birth of genetically superior male and
female bovine breeds, increase in milk production, adoption of AI by farmers, increase in
farmers‘ income, etc.
Implementing Agencies
State Livestock Development Board/Milk Federations. End implementing agency also
includes Animal Husbandry Departments. This programme is covered under RGM on 100
percent grant in aid basis.

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 5. Kisan Credit Card (KCC) Scheme
About the scheme -In the Budget 2018-19, the Union Government announced their decision
to extend the facilities of Kisan Credit Card (KCC) to Animal Husbandry farmers and
Fisheries (AH & F) to help them meet their working capital requirements. The KCC facility
is designed to meet the short term credit requirements of rearing dairy animals. Dairy farmers
either individual or joint borrower, Joint Liability Groups or Self Help Groups including
tenant farmers having owned /rented/leased sheds are eligible for taking benefit of the
scheme. The scale of finance is fixed by the District Level Technical Committee (DLTC)
based on local cost worked out on the basis of an individual animal which varies from Rs.
25,000 to 30,000 according to area of operation.
Benefit
Soft loan at 7 percent interest is provided to the farmers with interest subvention of 3 percent.
Which means that if farmers repay the loan within one production cycle, the final interest
accrued on the loan will be 4 percent. Repayment pattern depends on the production cycle of
the farmer and cash flows. The working capital provided under KCC scheme is easy to avail
and beneficial for the farmers to carry out their day to day expenses towards feeding,
veterinary aid, labour, water and electricity supply.
Implementing agencies
The administrative approval of the scheme is provided by National Bank for Agriculture and
Rural Development (NABARD). The scheme is implemented by Animal Husbandry
Department of the state/UT and the finance regulated by local nationalized banks as per
Reserve Bank of India (RBI) guidelines.

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1.7 Key players of Dairy Industry in India –

1. Introduction to AMUL-

 Amul is an Indian dairy cooperative society based out of Anand that lies in Gujrat .
The word AMUL is derived from the Sanskrit word ―Amulya ‖which means priceless
or precious .
 It is founded in 1946, Amul is managed by the Gujrat Co – operative Milk
marketing Federation Ltd. [GCMMF] , a cooperative body that comprises 3.6
million milk producers of Gujrat today .
 Amul started India ‘s White revaluation that ,made India the World’s biggest
maker of milk and milk products . Amul was founded by Tribhuvandas Patel
under the direction of Sardar Vallabhbhai patel , The First deputy prime minister of
India .
 The Kaira distric Milk union Limited was then conceived in 1946. Tribhuvandas
headed the organisation until his death in the 70s . he spoke to DR.Verghese Kurien
in 1949 and persuaded Dr kurien to assist in the mission of the White Revolution . Dr
verghese kurien is widely considered the Founder of Amul .

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AMUL STP:-
Amul STP
Segmentation People who need milk and milk products for day to day use

Target Market Lower, Middle and upper middle class families

Positioning
Amul is an Indian brand producing superior quality milk & dairy products

Amul and its product

Amul Product focused on bringing more productive products and expanding the market
rapidly. It was founded in 1946. It has a history of over 75 years and its business has grown
tremendously stepping at higher growth and satisfying consumer needs by giving higher and
superior quality of brands. Their brand name including the features, quality, reasonable price,
would help them in growth of rapid sales and keeping trust of around million of Indians using
this product every single day by marking it as the best and a reasonable product. Amul cares
for its huge customers and tries to offer them the best products at best price.
It consists of wide ranges of products which are outlined below:

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 Chocolates

Amul’s Mission & Vision

 Vision –Its Vision ―to provide more and more satisfaction to the farmers , employees
and Distributers‖ .

 Mission – ―To satisfy the tastend nutritional requirement of the customers of the
world , through excellence in marketing by our committed team . through co –
operative networking , we are committed to offering quality products that provide best
value for money .‖

Objectives-

o To capture large share of the market

o To provide maximum customers satisfaction
o Continue product modification and improvement effort to increase customer benefit
and reduce cost
o To meet the highest international standard of quality .
o To expand production capacity .
o AMUL is the largest dairy company in India.
o It is also the eighth biggest dairy company in the world.
o It is the biggest FMCG company in India.

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 o AMUL, the company reported an annual sales turnover of Rs 39,248 crores in
2021
Amul has replaced United States' Dean Foods in the global rankings after two years.
The American dairy giant commanded a 1.1% market share in the world milk
production in 2018. However, it has gone bankrupt and is out of the 2020 global
ranking.

2. Mother Dairy

Mother Dairy is a National Dairy Development Board division located in Noida, Uttar
Pradesh. It was set up in 1974 by the National Dairy Development Board, the Ministry of
Fisheries, the Ministry of Animal Husbandry, and the Government of India. In addition to
milk, Mother Dairy sells pulses, fruits, vegetables, vegetable oil, ice cream, cheese, ghee,
curd, lassi, buttermilk, fruit juice, jam, pickle, etc.

3. Kwality Limited

Kwality Ltd. is a company that deals with Indian dairy products. It is based in New Delhi,
which is India‘s capital. In 1992, it was set up. Kwality Ltd makes many different kinds of
dairy products. Milk, ghee, butter, milk powder, curd, lassi, paneer, ice cream, etc. are all part
of this category. Kwality Limited has six plants in the Indian states of Haryana, Uttar
Pradesh, and Rajasthan.

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Each day, these plants make 3.4 million litres of milk. This business works with people in
Gujarat, Bihar, Jharkhand, Haryana, Uttar Pradesh, and Rajasthan plants that produce 3.4
million litres of milk per day. This company serves Gujarat, Bihar, Jharkhand, Orissa,
Karnataka, and Andhra Pradesh. Actor Akshay Kumar has been chosen as its brand
ambassador.

4. Orissa State Cooperative Milk Producers Federation

Odisha State Co-operative Milk Producers Union was set up in 1985. It is India‘s fourth-
largest dairy company. It is also called OMFED in Bhubaneshwar, Orissa, at D-2 Shaheed
Nagar. It is a company owned by the Government of Odisha‘s Ministry of Fisheries, Animal
Husbandry, and Dairying. Under Operation Flood-II of the National Dairy Development
Board, OMFED was set up based on the Amul model.
It has many products, such as milk and milk products, horticulture products, Kandhamal
organic products, cattle feed, etc.

5. Andhra Pradesh Dairy Development Cooperative Federation Limited

APDDCF, dairy companies, top 10 dairy companies in India, milk company, a dairy
company, biggest dairy, whole ten biggest dairy companies in India.
With a three-tier cooperative structure, the Andhra Pradesh Dairy Development Cooperative
Federation Limited was set up in 1981 as a business run by farmers to improve dairy
development.
It sells milk and milk products at fair prices. It also makes things like flavoured milk that has
been sterilized, native uncooked paneer, sweets that have been dried out, and buttermilk. Its
main office is in Hyderabad, which is the capital of the state of Andhra Pradesh. APDDCF is
another name for it.

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6. Karnataka Co-Operative Milk Federation

KMF, dairy companies, top 10 dairy companies in India, milk company, dairy milk company,
biggest dairy, Karnataka Milk Federation was started in 1974 and is the sixth-largest dairy
company in India. It is also known as KMF, a legal company owned by the Indian Ministry
of Fisheries, Animal Husbandry, and Dairying. It is a group of milk producers who work
together as a cooperative. Besides milk, they also make curd, ghee, butter, cheese, milk
powder, sweets, chocolate, ice cream, frozen sweets, and other things.

7. Dynamix Dairy

The head office of the Indian dairy company Dynamix Dairy Industries Limited is in the city
of Mumbai in the state of Maharashtra. It was set up by K.M. Goenka in 1983. The company
exports to many countries around the world, including the United Arab Emirates, the United
States, Algeria, Bahrain, Bangladesh, Canada, China, Egypt, Iran, Korea, Kuwait, Lebanon,
Malaysia, Morocco, Oman, the Philippines, Qatar, Saudi Arabia, and many others, such as
Singapore, Sri Lanka, Syria, and Turkey.
This company makes milk and milk products like processed cheese, ghee, natural cheese,
butter, curd, paneer, lassi, etc.

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8. Aavin

The capital of Tamil Nadu, Chennai, is home to the dairy company Aavin. It is a trademark
owned by the Ministry of Fisheries, Animal Husbandry, Dairying (Tamil Nadu), the
Government of Tamil Nadu, and the Tamil Nadu Co-operative Milk Producers Union
Limited. In 1958, it was set up. Aavin buys about 40 million litres of milk every day, but only
about 25 million litres are sold as milk. The rest of the milk is used to make other products.
Its milk products include butter, curd, ice cream, ghee, milkshakes, tea, coffee, chocolate,
skimmed milk powder, ice cream, buttermilk, etc.

8. Milma

Milma is the business name of the Kerala Co-operative Milk Marketing Federation, which is
also known as KCMMF. It began in 1980 in the capital of Kerala, Thiruvananthapuram. It is
a legal corporation that belongs to the Ministry of Fisheries, Animal Husbandry, and
Dairying. Which cooperative society in Kerala is one of the most profitable? At the moment,
it has 13 plants that can process 12.50 lakh litres of milk per day. Only in the state of Kerala
can you find this dairy company.

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10. Dudhsagar Dairy

Dudhsagar Dairy is the name most people use for Mehsana District Co-operative Milk
Producers Union Limited. In Anand, Shri Mansinghbhai Prithviraj Patel, a State Level
Gujarat Cooperative Milk Marketing Federation, laid the foundation stone on April 2, 1963.
Dudhsagar Dairy is the biggest dairy in Asia. It processes an average of 1.41 million
kilograms of milk every day and has set up a network of 1150 grams of milk cooperatives to
get milk from 450,000 milk producer

1.8 SWOT analysis –

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Strengths –
 Enhanced milk production- 209 million tons (2020-21-NDDB)
◦ with consequently increased availability of milk processing
(394/gm/person/day)
 Increased purchasing power of the consumer.
 Improved transportation facilities for movement of milk and milk products.
 Increased availability of indigenously manufactured equipment.
 Large number of dairy plants in the country.
 Vast pool of highly trained and qualified manpower available to the industry.
 Country's vast natural resources offer immense potential for growth and development
of dairying.
Weakness –
 Lack of appropriate technologies for tropical climate conditions.
 Erratic power supply.
 Lack of awareness for clean milk production.
 Underdeveloped raw milk collection systems in certain parts of the country.
 Seasonal fluctuations in milk production pattern.
 Regional imbalance of milk supply.
 Species-wise variation in milk quality received by dairy plants.
 Poor productivity of cattle and arable land.
 Scarce capital for investment in the dairy development programmes on a priority
basis.
 Absence of proper data records which is essential for preparing development
programmes.
 Dairy development programmes have not been fully implemented as per the needs of
the region in different agro-climatic zones.
 Lack of marketing avenues for the dairy produce.
 Lack of software for preparing needed dairy schemes/projects.
 Lack of infrastructure for offering Dairy Business Management programmes to train
dairy personnel.
Opportunities -
 Scarce capital for investment in the dairy development programmes on a priority
basis.

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  Absence of proper data records which is essential for preparing development
programmes.
 Dairy development programmes have not been fully implemented as per the needs of
the region in different agro-climatic zones.
 Lack of marketing avenues for the dairy produce.
 Lack of software for preparing needed dairy schemes/projects.
 Lack of infrastructure for offering Dairy Business Management programmes to train
dairy personnel.
 Availability of animal production technologies for faster development and effective
implementation.
 Integrated structure of marketing for milk and milk products.
 Integrated structure of livestock marketing through regulated markets.
 Improved collection of data on contract basis through agencies.
 Market information intelligence system for milk and milk products.
 Development of software for project formulation for dairy enterprise.
Threats –
 Introduction of foreign products in Indian market.
 Increasing chemical contaminants and residual antibiotics in milk.
 Poor microbiological quality of milk.
 Export of quality feed ingredients particularly cakes under the liberalization policy.
 Deficiency of molasses, a rich source of energy and binding agent in feed industry
and constituent of urea molasses mineral lick.
 Excessive grazing pressure on marginal and small community lands resulting in
complete degradation of land.
 Extinction of the indigenous breeds of cattle due to indiscriminate use of
crossbreeding programme to enhance milk production.
 The liberalization of the dairy industry is likely to be exploited by multinationals.
They will be interested in manufacturing value added products. It will create milk
shortage in the country adversely affecting the consumers.

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 Chapter -2
Review of Literature

 A literature review establishes familiarity with and understanding of current

research in a particular field before carrying out a new investigation. Conducting
a literature review should enable you to find out what research has already been done
and identify what is unknown within your topic.
 A literature review is an overview of the previously published works on a specific
topic. The term can refer to a full scholarly paper or a section of a scholarly work such
as a book, or an article.
 A good literature review can ensure that a proper research question has been asked
and a proper theoretical framework and/or research methodology have been chosen.

1. Park W. (2018) described in his literature about the recent trends in the Dairy
industry . he said that Cow milk has been the major source of milk and dairy products
in developed countries especially in the Western world. He said that milk has been
known as nature‘s most complete food .In his literature he described six recent trends
that consistently have shows for dairy manufactures and to meet the demand of
consumers .these trends are reduction in added sugar ,plant based product , rising
demands on new flavors ,clean lebel products environmental friendly nutrition &
transparency and advanced technology .

2. Mudgil (2021) described in his literature about post covid emerging trends in Indian
dairy . he said like other food and agriculture sectors the dairy industry has been
impacted by the covid -19 pandemic ,existing trends like the transition from informal
to the formal market and sector consolidation have gained momentum .the covid 1
impacts are demand distribution and channel changes , impact on price ,production
and product mix etc.

3. Imran A and others (2011) described about the dairy marketing strategies in the
context of Globalization: Issue and challenges . he said that globalisation is one of the
greatest strategic challenges for all industries as well as dairy Industry globalisation
has increased significantly over thet last decade and despite financial crises and

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 recession in many parts of the world .In global market we have to face following
issues like dicision to enter the market , the mode of entry . to expand across several
market customization of the marketing mix . in the end global companies exmine their
product portfolio across countries .

4. Mathur (2000) described in his literature about the current problems and challenges
about the dairy industry efforts need to be directed to accelerating the pace of
application and adoption of modern technologies to improving productivity, and to
reducing costs of operations and ensure greater availability of milk and milk products.
To attain this, national development programs need to be dove tailed with state
Governments programmes on animal husbandry and dairying, poverty alleviation
programmes, R&D strategies.

5. Bhandari G and Ravishankar (2020) described in his literature about the

implications of Covid 19 .The resultant global pandemic is not only adversely
affecting the human life but is also taking a heavy toll on livelihood of many people.
Global economy is facing an unprecedented crisis and falling growth rates indicate the
onset of economic slowdown. Dairy sector is facing exceptional challenges as unlike
manufacturing and service sector it is not possible to completely cut down the milk
production owing to less demand and issues in supply.

6. Garg L.and Kumar (2021) describes in his literature about the pre ,during covid 19
and post pandemic periods in dairy Industry .The COVID-19 pandemic has opened up
the opportunity for the dairy industry to benefit as large sections of consumers may
shift from meat-based to dairy-based protein. COVID-19 has made people more
aware of the need to adopt a healthy diet. The dairy sector is more resilient compared
to other sectors and according to various industry reports signs of recovery are
observed. Being more equitable in distribution the dairy sub-sector is the new growth
dynamo of the agriculture and allied sectors.

7. Sarkar A and Dutta(2020) described in his literature about the challenges and
opportunities of dairy industry in India & world .he said dairy industry is undergoing
a number of change and challenges all over world . factors such as access to
technological innovations , improvement in infrastructure facilities and creation of

21
 modern era marketing insights have quite significant to give a strong boost to dairy
development . the changing trend of global dairy industry is noteworthy .

8. Oruganti M (2011) described in his literature about the organic dairy farming as a
new trend .In this article, the benefits, conditions required, constraints involved, and
managemental practices of organic dairying, along with information about the
regulatory authorities concerned with the organic dairy farming is discussed .He told
Organic Dairy farming means raising animals on organic feed, have access to pasture
or outside, along with the restricted usage of antibiotics and hormones. Organic
farming is a system of production, a set of goal-based regulations that allow farmers
to manage their own particular situations individually, while maintaining organic
integrity.

9. Andersen h.(2007) described in his literature about the major issue of dairy industry
[raw milk Quality].raw milk quality can not contain only quantity charasterstics that
just meet statuary quality requirements and quality characteristics of importance for
the settling price of the dairy farmers .

10. Jawalada R.and Patel (2017) described in his literature about challenges of Indian
dairy industry .Indian dairy industry has loosen the low production advantage . as
some countries like Denmark ,new zeland etc .has reduced their milk production and
increase the import of milk and its allied product in India . this has directly affected
Indian cattle farmers in terms of lower price sale main challenges are high cost of
milk production and milk handling and marketing and poor quality milk due to
unhygienic milk handling .

11. Singh H (2018) described in this paper about a new emerging technology in dairy
Industry is ROBOTICS . the automation technology is changing the way the milk is
produced and processed . the benefits are far – reaching : profitability , milk quality ,
life style including animal walfare . the use of robotics in the field of processing in
packaging system . the commercial applicants of robots in dairy industry is also
widely spread at the end of processing lines like packaging and palletizing .

22
12. Kumar R.& Mohan (2018) described in their paper about the CRM and supply
chain . CRM) within the supply chain is vitally important. The research paper
attempts to find out the factors leading to customer satisfaction in Indian dairy
industry. The study includes factor analysis in order to group the various practices
into a smaller set of homogeneous factor. As per the result of the factor analysis
performed on the agreement continuum of the customer questionnaire, five factors
emerged prominently, i.e. customer services, customer problem solving capability,
value for money offers, product quality, and product & service reliability. The most
prominent factor that emerged is the customer services, followed by customer
problem solving capability, value for money offers, product quality, and last factor is
product & service reliability.

13. Boulton A & Rushton (2011) described in this review about major trends in the UK
dairy industry since the Second World War. It then considers the future challenges of
―sustainable intensification‖ (Foresight Report, 2011), paying particular attention to
the dairy farmer and his cow. We argue that while sustainable intensification is a
worthy goal in light of the impending perfect storm in global agriculture, this mantra
should only be adopted if it is done ―with compassion‖, not just for the cow but also
the herdsman and other workers.

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 Chapter -3
Issue , Challenges & Emerging technological trends

3.1 Problem statement –

A study of “Problems Faced by Dairy Industry” in Indian economy .

In the Dairy Industry a number of problems and challenges are faced such as
technological innovations, improvement in infrastructural facilities and creation of
modern era marketing insights have been quite significant to give a strong boost to
dairy development.

3.2 Issues of dairy industry –

1. Environmental issues :- The dairy industry faces such as climate changes bio –
diversity loss , water use and loss etc. as environmental issues.

2. Social issues, cultural and economic issues- Dairy industry faces –National GDP,
demise of family farm ,unemployment and cultural landscapes etc .

3. Human health issues- In human health issue dairy industry faces Food security,
malnutrition ,heart disease and obesity etc .

4. Animal welfare issues –Dairy industry faces-Natural behaviour constrains , less care
taking and short animal life span etc

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3.3 Challenges Faced by Sector-

1. Fragmented Supply Chain: The fundamental challenge in dairy is maintaining

quality and quantity within a diversified supply base. Due to its perishable nature,
dairy requires more complex supply chain operations and logistics to ensure freshness
and safety.
a. The sector also witnesses adulteration practices and overuse of antibiotics to
boost production.

2. Price Sensitivity: Milk producers are highly susceptible to even minor shocks. For
instance, small changes in the employment and income of consumers can leave a
significant impact on milk demand.

3. Unorganised Nature: The majority of cattle raisers are unorganised unlike

sugarcane, wheat, and rice-producing farmers. This nature further inhibits the creation
of political clout to advocate for their rights.

4. Data Deficiency: There is no official and periodical estimate of the cost of milk
production. Even though, the value of milk produced outweighs the combined value
of the output of wheat and rice in India.

5. Poor returns: There is no MSP (Minimum Support Price) for milk unlike 24 major
agricultural commodities in the country including wheat and rice. Further, dairy
cooperatives are not a preferred choice for landless or small farmers.
a. The cooperatives adopt a fat-based pricing policy which is 20 to 30 % less
than the price in the open market.
b. Further, dairy cooperatives buy more than 75% of milk at its lower price band.

6. Competition from alternatives: The traditional cow and buffalo milk is shunned by
some consumers for more eco-friendly alternatives like ‗Soy Milk‘ or ‗Almond milk‘.
They believe that the carbon footprint of plant-based milk products is much lesser
than the traditional dairy products.

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7. Shortage of feed/fodder -There is an excessive number of unproductive animals
which compete with productive dairy animals in the utilisation of available feeds and
fodder. The grazing area is being reduced markedly every year due to industrial
development resulting in shortage of supply of feeds and fodder to the total
requirement. Ever increasing gap between demand and supply in feeds and fodder
limits performance of dairy animals. Moreover, provision of poor quality of forage to
dairy cattle restricts animal production system. The low capability of purchasing feeds
and fodder by the small and marginal farmers and agricultural labourers engaged in
dairy development result in inadequate feeding. Non-supplementation of mineral
mixture results in mineral deficiency diseases. High-cost Feeding reduces the profits
of the dairy industry.

8. Breeding system -Late maturity, in most of the Indian cattle breeds, is a common
problem. There is no effective detection of heat symptoms during oestrus cycle by the
cattle owners. The calving interval is on the increase resulting in a reduction in
efficiency of animal performance. Diseases causing abortion leads to economic loss to
the industry. Mineral, hormone and vitamin deficiencies lead to fertility problems.

9. Education and Training -A vigorous education and training programmes on good

dairy practices could result in the production of safe dairy products, but to succeed
they have to be participative in nature. In this regard, education and training of all the
employees is essential so that they understand what they are doing and develop a
sense of ownership. However developing and implementing such programs in the
dairy sector requires a strong commitment from the management, which at times, is a
stumbling block.

10. Health-Veterinary health care centres are located in far off places. The ratio between
cattle population and veterinary institution is wider, resulting in inadequate health
services to animals. No regular and periodical vaccination schedule is followed,
regular deworming programme is not done as per schedule, resulting in heavy
mortality in calves, especially in buffalo. No adequate immunity is established against
various cattle diseases.

26
 11. Hygiene Conditions -Many cattle owners do not provide proper shelter to their
cattles leaving them exposed to extreme climatic conditions. Unsanitary conditions of
cattle shed and milking yards, leads to mastitis conditions. Unhygienic milk
production leads to a reduction in storing quality and spoilage of milk and other
products.

12. Marketing and Pricing -Dairy farmers are not getting remunerative price for milk
supply. Due to the adoption of extensive crossbreeding programme with Holstein
Friesian breed, the fat content of crossbreed cow's milk is on the declining condition
and low price is offered as the milk price is estimated on the basis of fat and solid
nonfat milk content. There is also a poor perception of the farmers, due to lack of
marketing facilities and extension services, towards commercial dairy enterprise as an
alternative to other occupation.

3.4 Impact of Pandemic-

1. First, the threat of disease has restrained the door-to-door sale of liquid milk to
households. This has forced the farmers to sell the entire produce to dairy
cooperatives at a much lower price.

2. Second, the lockdown had led to the closure of shops. This has reduced the
demand for milk and milk products.

3. Third, the severe shortage of fodder and cattle feed has pushed up the input cost.

4. Fourth, private veterinary services have almost stopped due to Covid-19. This has
led to the death of milch animals.

3.5 Emerging technologies in dairy Industry -

1. Supercooling technology-

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Transporting fresh products internationally is a challenge for many global dairy companies.
In 2019, major European dairy cooperative Arla began testing a new natural, preservative-
free technology to enable this international movement of goods using a new technique.
Arla‘s ‗supercooling‘ tool enables fresh products to travel long distances by ship. Lars
Dalsgaard, SVP product and innovation at Arla said: ―We‘re seeing more and more markets
requesting chilled, fresh-tasting and natural products rather than frozen products that require
defrosting or products with preservatives.‖
This supercooling technology will be particularly beneficial for global dairy companies and
those with the aim of creating new global growth opportunities.

2. Mastitis detection technology

An udder infection in dairy animals known as mastitis has devastating impacts on the dairy
industry worldwide. According to Frontiers in Bioengineering and Biotechnology, global
dairy industry losses are estimated to reach a staggering €30bn per annum. This is due to poor
milk quality, significant milk losses and culling of chronically infected animals.
Early diagnosis for bovine mastitis is crucial for dairy farmers, and EIO Diagnostics new
technology has done just this using a combination of machine learning and multi-spectral
imaging. The start-up began in 2017 and was backed by food innovation incubators and
accelerators, including Food-X and Yield Lab.
Dairy animals with mastitis will show specific patterns of swelling and heat in their udders.
Co-founder, Tamara Leigh said: ―Our technology combines advanced sensor imaging and
machine learning to detect these early indications of infection days before there any physical
signs of infection in the udder or the milk.‖
EIO Diagnostic‘s technology is game-changing for the dairy industry. The sooner infected
animals are detected, the sooner they can be pulled from production and treated, ultimately
saving the dairy industry billions.

3. Blockchain technology

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Transparency in the dairy industry‘s food supply chain is key to gaining consumer trust, from
sustainable sources to ingredients and processing claims. In 2018, Nielsen claimed
transparency was driving the growth of food in fast-moving consumer goods.
Earlier this year, food safety company Neogen entered a partnership with Ripe Technology
(ripe.io) to bring blockchain technology to its food safety diagnostics and animal genomics.
Ripe.io essentially enables companies in the food industry to use its blockchain technology
platform to ensure transparency in their food supply chain.
Blockchain is a digital technology platform that ‗chains‘ together information ‗blocks‘ to
create a permanent record. This blockchain creates a history of products and animals in food
and livestock in the dairy industry throughout the whole production cycle.
Neogen‘s CEO, John Adent said: ―There are countless potential benefits to adopting the
technology. For example, the genomic profile of a dairy cow could be connected with the
feed the animal eats, its medical history, barn environment, quantity and quality of the milk it
produces, etc. Blockchain can serve to optimise the entire supply chains of many of the
markets that Neogen serves.‖
This technology ultimately adds a high level of transparency for the dairy industry from the
beginning of the supply chain all the way to consumers.

4. Flavour advancements

Consumer demand for clean label and ‗clean taste‘ is high in the current dairy market. There
have been various technological developments in the ingredients sector in recent years that
focus on improving the texture and taste experience of dairy products.
One example is US-based Synergy Flavors Inc‘s taste solution ‗Dairy by Nature‘, developed
to address the needs of dairy and plant-based applications alike. The solution claims to
provide the means to cleanly build back the creaminess of full-fat dairy and mask undesirable
off-notes in plant-based alternatives.
Synergy claims to have created technically-layered ingredients for taste and enhanced
functionality by combining flavour science with modern dairy fermentation expertise. For
example, unlike typical flavours that add a singular top note, such as caramelized butter or
condensed milk, Synergy has developed advanced solutions that enhance quality, mouthfeel
and flavour retention.

29
Its applications range from fresh and cultured dairy products to nutritional, bakery, beverage
and confection, as well as savoury applications such as dips or cheese.
‗Dairy by Nature‘ is a key technological development for the dairy and dairy-alternative
industries as it offers a simple natural flavour enhancement of dairy indulgence.

5. Synthetic dairy

Cow‘s milk is extremely versatile and used in many products all over the world. For instance,
in Canada alone, 70% of milk sold goes on to be used in further processing. However,
according to an IPSOS survey, 48% of consumers buy both dairy and plant-based milks.
The industry has seen its fair share of innovation in plant-based milk alternative products
over the years, with soy, pea, oat, almond and rice milk taking the foreground. But what if
scientists could grow a vegan lactose-free version of cow‘s milk, without cows?
One of the main technology innovations mentioned in our dairy trends for 2020 article was
lab-created dairy. California-based startup, Perfect Day Inc., has developed a form of
genetically modified microflora that produces whey and casein – the proteins found in cow‘s
milk. The company claims this lab-grown dairy provides the same high-quality nutrition as
conventional dairy protein.
This innovation could have a significant impact on the dairy industry, as many consumers
may want to reduce their intake of dairy products but enjoy the taste of cow‘s milk.

3.6 Emerging trends in dairy industry –

1. Functional food

Functional food is in demand due to consumer awareness about the relationship between
food and their well-being. Food plays a crucial part in lifestyle changes, and milk is
considered a complete food in India. The essential feature of success in functional food is
the consumer's perception and belief.
The concept of functional food gained momentum in India during the pandemic.
Companies engaged with consumers by increasing awareness about specific

30
ingredients and compounds in the food that will help prevent disease or possess
curative properties.
There are numerous effects related to the consumption of functional foods demonstrated
and suggested by epidemiological studies or clinical trials — developments such as
reducing blood pressure, enhancing immune function and improving heart health.
Nutritionists recommend adding milk as it's an essential part of the diet while suffering
from chronic disease.

2. Healthy eating

Sustainability and health are some of the biggest factors for shifting consumer behaviour
in the recent times. Healthy eating has significantly evolved the need of consumers for
healthy yet instant snacking options.
With consumers spending more time at home while urging to adopt the healthy route, the
traditionally known "Haldi Doodh" started trending again as "Golden Latte."
Consumers’ desire for convenient yet healthy snacking had led companies to innovate
with their offering. Moving beyond the traditional yogurt cup, India also observed
newer trends like drinkable yogurt.
As consumers become more aware of the healthy snacking segment, it gives them
enormous potential for emerging dairy-based snacks with unique offerings.

3. Veganism

Consumers' rising interest in veganism has created opportunities for various plant -based
beverages from sources like soya, almond, and coconut to name a few. These present
themselves as an alternative to dairy products while claiming the goodness of dairy with
distinct health benefits.
The ensuing marketing communication and consumer adoption will decide if these
alternate products grow beyond a fad and become a category in itself.

4. Ecommerce

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Ecommerce has also created opportunities for the dairy industry to connect with
consumers directly. With most consumers still working remotely, there has been a massive
shift in shopping and the adoption of digital commerce by consumers in India.
Hence, ecommerce has become a priority channel and platform for the dairy industry to
connect with consumers. Digital commerce will play a significant role soon as online
shopping continues to accelerate.

5. Innovative packaging

This is yet another emerging trend that helps consumers with value-added convenience.
Consumers are engaging more with companies innovating with packaging as it is equally
important as the contents inside. Consumers' demand for functional, sustainable, and
visually appealing designs increases and is expected to grow further.
One of the essential criteria for the dairy industry is eco-friendly and convenient
packaging as consumers look for product packaging that is convenient to use.
From modified atmosphere packaging that will help extend the shelf life of the dairy
products to active and controlled packaging that helps maintain freshness or packaging
embedded with QR code that will continue to build interaction, customer experience
management is expected to play a crucial role in the dairy packaging industry.

6. Education and skilling

Looking at how the dairy industry will flourish, there also is a need for attention towards
the education and honing of skills in the times to come. Those who wish to enter the
industry should be provided with important dairy processing and technological skills,
which can further propel the apprenticeship schemes in India.
Private organisations, institutions, and the government can join hands and foster a positive
environment for the dairy industry as a successful career prospect.
It is very important to present dairy sector as a place to make long and distinguished
career to young students. At the same time, the sector will have to create
opportunities to attract good talent within the existing workforce.

7 .Robotic Milking

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Robotic milking systems, or automatic milking systems (AMS), were developed in the late
20th century and have been commercially available since the early 1990s. Since their release,
these systems have soared in popularity. Robotic milking is when a mechanical system – or a
robot – automatically milks a dairy cow without having human labor involved. The system is
set up to guide the herd into the milking shed, identify each cow individually by scanning an
identification tag, milk the cows, check the milk, and record any data. Based on her tag
number, the machines know exactly the shape of the cow‘s udder and body, as well as the last
time she was milked and the quantity that was produced. The manufacturer Lely recommends
that when you begin implementing robotic milking, start with 50-60 cows per robot and
divide the group into two subgroups. The first three days you should lure cows into the parlor
three times a day. This should be done in a very calm and patient manner to prevent the cows
from having a negative connotation with the robot. During these three days you‘ll see 75% of
the cows go to the robots all on their own. The advantages of robotic milking are numerous as
they don‘t need to be managed, valuable data is collected, and you can save hours of manual
labor per day.

8.Cow Collars

Today, many of us have Fitbits attached to our wrists to monitor our steps, calories, heart
rate, and sleep quality. But a new wearable technology has made its way to the barn.
Introducing the cow collar – a ―Fitbit‖ for cows. With cow collars you can gather a large
amount of data on the health, habits, and happiness of your herd. This includes the number of
steps per day as well as rumination. All the data gathered is sent to a portal you can access
from your computer or smartphone. You can share any abnormal information you find with
your vet, making it easier to detect and resolve stress, illnesses, or health-related issues early
on. Perhaps the biggest benefit of all – it allows you to detect when a cow is in heat. Because
of this, you can potentially increase the chances of healthy pregnancies, which can lead to
enhanced milk production.

9.Automatic Feed Pusher

33
Would you like to do less work for more yield? Who wouldn‘t? The automatic feed pusher is
another top tech trend taking the dairy industry by storm. This machine pushes feed toward
the feed fence during times and routes you set. This not only saves you hours of labor, it
allows the cows to have constant access to fresh feed around the clock. An automatic feed
pusher can kindle frequent feed consumption – day and night – resulting in higher feed intake
among your herd. This can result in healthier animals, improved fertility, improved
production, and can potentially save you money in the long run.
The Indian dairy industry has been hit hard due to the pandemic. Businesses needed to
navigate the adverse consequences of the pandemic with the constant change in demand,
impact on supply, and logistics.
There was a visible shift from procurement centres to retail outlets, which in turn
overwhelmed the distribution logistics.
However, the Indian dairy industry emerged intact by making adjustments like operational
flexibility in the business model and supply chain simplification.
The pandemic-induced lockdown indicated a clear shift in milk collection from informal to
formal channels as farmers were delivering milk at the collection centers organised by
cooperatives and private organisations.

3.7 Emerging opportunities in the Indian dairy industry

New-age technologies such as the Internet of Things (IoT), advanced analytics, and
Artificial Intelligence (AI) has helped to reduce milk wastage, digitise the operations,
improve the production of milk, develop last-mile logistics infrastructure, monitor the
health of livestock, find anomalies in milk production and predict weather conditions.
The role of technology in the dairy industry has grown from the village level of testing the
composition of milk or automated milk collection to air-lifting of milk, mechanical dairy
plant operations, and assessing total milk quality parameters.
Furthermore, technology adoption has witnessed innovative solutions like sensors to detect
whether the cow is ready for milking or not, robotic milking machines, blockchain for
product traceability, cattle monitoring, and drones.
The pandemic-induced period created opportunities for companies to develop a doorstep
delivery app with a milk testing kit for added convenience, setting India on the path to
achieve NITI Aayog‘s projected overall milk production of 330 million tonnes by 2033.

34
3.8 Future Potential - How Can The Dairy Industry Prepare For The
Future?

Dairy companies can engage in a mix of approaches to address the trends described above
and prepare for the next three to five years. Those actions will play out at different levels
(company and industry) and different horizons (short and medium term).
At the industry level, executives can take coordinated action to:
reimagine how the industry defines sustainability performance to align with social and
corporate incentives
 reimagine a new industry go-to-market, direct-to-consumer platform
 make dairy the career of choice for talented people to strengthen the industry
 invest in research and consumer education that articulates the benefits of dairy
 At the company level, executives can: invest in technology and research to improve
sustainability, health, and wellness attributes
 develop insight capabilities to enable consumer-focused innovation
 make significant international bets to find new avenues of growth
 embrace digital as a tool to solve problems and capitalize on opportunities
 use programmatic mergers, acquisitions, and divestitures to realign their portfolios
 improve operational agility and resilience
 strengthen corporate culture to attract and retain talent

When determining which of these imperatives to pursue, it is important to consider alignment

with a current strategy, compatibility with resources and capabilities, and scale within the
value chain. Even a smaller company can play a vital role in a coordinated, industry-wide
effort.

35
 Chapter 4
Conclusion & suggestion

Suggestions -

 The government should support start-ups that come up with a solution-oriented approach.
o For instance, Country Delight is a Haryana-based dairy-tech company that is providing
quality milk at consumers‘ doorstep.
o The milk undergoes 26 quality tests and farmers deliver it directly. This ensures good quality
and optimum pricing.
 The producers should be given the requisite support to enter into value-added segments
such as ice cream, yogurt, cheese, and whey. These segments show profit margins of 20%,
which is much higher than the 3-5% margin in the case of simple milk produce.
 The dairy farmers must be given a stable market and remunerative price for the milk. For
the price, a greater weightage should be accorded to the quantity of milk than its fat content.
 The government should focus on a hub and spoke model. Under this, the main farm (hub)
should have all integrated facilities for milking, feed production, and milk processing.
o The connected farms (spokes) should have a basic infrastructure for milking and cattle
management. The hub should also provide technical, veterinary, and training support to their
spokes for inclusive development.
 Our honourable Prime Minister Sh.Narendra Modi has been extremely vociferous,
and deliberate in encouraging the young minds to promote and use technological
headways like Artificial Intelligence (AI) and Blockchain in a major way. This is
clearly evident from his speeches in many events.
 He is completely abreast with the inherent problems dairy farmers experience in
dealing with poor quality of the milk, medicines, and treatments meted out to animals,
giving rise to their depleted returns, and corresponding financial setbacks.

36
Conclusion –

India now has indisputably the world's biggest dairy industry. India also produces the biggest
directory or encyclopaedia of any world dairy industry. The dairy sector in India has shown
remarkable development in the past decade and India has now become one of the largest
producers of milk and value-added milk products in the world.
Dairy sector is undergoing a number of changes and challenges all over the world . Factors
such as access to technological innovations, improvement in infrastructural facilities and
creation of modern era marketing insights have been quite significant to give a strong boost
to dairy development. The changing trend of global dairy industry is noteworthy. This sector
imparts a major socio-economic benefit for rural India. Dairy sector is facing exceptional
challenges as unlike manufacturing and service sector it is not possible to completely cut
down the milk production owing to less demand and issues in supply. Irrespective of the
market demand, a cow has to be milked regularly for its health which on the one hand
increases the cost of farmer and on the other leave them with surplus milk.

1. Automated calf feeders provide nutrition to calves through a precise diet delivery
mechanism many times a day thereby promoting a faster growth and healthier life.. It
helps the farmers to receive up-to-the-minute reports about the growth and health of
the calves.

2. Milk yield recording systems furnish data of individual animals. It informs about the
quantity of milk generated at each milking, daily trends in production of milk and its
essential components like proteins.

3. Automated milking systems diminish the labour needed for milking cows. The cows
intrinsically choose the time they desire to be milked. They roam around the shelter
freely without any human intervention.

4. Rumination activity collars and sensors assist in the detection of behavioural and
activity changes that cautions the early indications of any sickness or infection.
Devices like pedometers effectively track specific bovine actions like the animal‘s
readiness in breeding or getting into labour thereby facilitating the farmer to provide
opportune assistance.

37
 5. Blockchain technology showcases a dairy farm‘s competence in milk production.
The technology is an electronic ledger comprising of unique QR codes, which are
attached to the dairy products‘ label. These codes are capable of providing details
regarding the cattle feed, any plausible administration of a treatment, rearing process,
an incident of slaughter, time and location of milk production, processing techniques,
added ingredients, market release date of the products etc. The codes can be scanned
by the consumers using their smartphones, which can track the entire thread of milk
production process leading to the final product. This technology aims at hitting and
dislodging the counterfeit milk product manufacturers from the market.

6. AI Machine learning uses a mix of various optical sensors and motion sensing
devices to enable farmers in analysing the milk quality, its fat and protein levels, and
reproductive condition of the cow. These devices can also transmit accurate
information about the cow‘s movement like walking, drinking, eating, lying down, or
ruminating.

The current situation demands a sustainable development of the dairy sector. This
development should be in line with the environmental, nutritional, and socio-economic
demands of the country. Government should take robust steps in order to make dairy farming
more lucrative for the small and marginalized farmers.

38
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Web links –

◦ https://www.imarcgroup.com/dairy-industry-in-india

◦ https://opportunityindia.franchiseindia.com/article/challenges-faced-by-the-indian-dairy-
sector

◦ https://www.drishtiias.com/daily-updates/daily-news-editorials/challenges-of-dairy-sector

◦ https://www.pashudhanpraharee.com/challenges-solutions-of-dairy-sector-in-india/

◦ https://www.foodware365.com/en/industry-challenges/dairy-challenges/

◦ https://www.yamatoscale.co.uk/the-manufacturing-challenges-facing-the-dairy-industry-
and-how-to-overcome-them/

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◦ https://www.yamatoscale.co.uk/the-manufacturing-challenges-facing-the-dairy-industry-
and-how-to-overcome-them/

◦ https://blog.forumias.com/challenges-facing-dairy-sector-in-india/

◦ https://diamondv.com/the-top-three-tech-trends-in-the-dairy-farming-industry/

◦ https://yourstory.com/2021/10/emerging-trends-shaping-future-dairy-industry-india/amp

◦ https://www.foodbev.com/news/five-key-technology-innovations-in-the-dairy-industry-
for-2020/

◦ https://www.linkedin.com/pulse/scope-emerging-technologies-dairy-industry-atul-mehra

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