Project Report is Career vision schooling on Dairy industry

VIGNANA JYOTHI INSTITUTE OF MANAGEMENT
BACHUPALLY, RANGAREDDY
2021-2023
Project Report
Career vision schooling
Batch 29-(2021-2023)
On
Dairy Industry
Submitted To
S Franklin John
Submitted By
N Chandra Shekar - 211184
R Vishnu Vardhan Reddy - 211253
Section: B
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CONTENTS
S. No Title Pg. No
1. Introduction to Dairy Industry 3-5
2. Products offered by Dairy Industry 6-7
3. Segmentation of Dairy Industry 8
4. Growth of Dairy Industry 9
5. Impact of COVID19 on Dairy Industry 10-11
6. Future Trends in Dairy Industry 12-13
7. Nature of Competition in Dairy Industry 14-15
8. PSETLE Analysis on Dairy Industry 16-19
9. Poter’s 5 Force Model on Dairy Industry 20
10. ProQuest 21-22
11. Webliography/ References 23
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DAIRY INDUSTRY
Introduction
A dairy is a business enterprise established for the harvesting or processing (or both) of animal milk –
mostly from cows or buffaloes, but also from goats, sheep, horses, or camels – for human
consumption. A dairy is typically located on a dedicated dairy farm or in a section of a multi-purpose
farm (mixed farm) that is concerned with the harvesting of milk.
As an attributive, the word dairy refers to milk-based products, derivatives and processes, and the
animals and workers involved in their production: for example dairy cattle, dairy goat. A dairy farm
produces milk and a dairy factory processes it into a variety of dairy products. These establishments
constitute the global dairy industry, part of the food industry.
History
Milk producing animals have been domesticated for thousands of years. Initially, they were part of
the subsistence farming that nomad engaged in. As the community moved about the country, their
animals accompanied them. Protecting and feeding the animals were a big part of the symbiotic
relationship between the animals and the herders.
In the more recent past, people in agricultural societies owned dairy animals that they milked for
domestic and local (village) consumption, a typical example of a cottage industry. The animals might
serve multiple purposes (for example, as a draught animal for pulling a plow as a youngster, and at
the end of its useful life as meat). In this case, the animals were normally milked by hand and the
herd size was quite small, so that all of the animals could be milked in less than an hour—about 10
per milker. These tasks were performed by a dairymaid (dairywoman) or dairyman. The word dairy
harkens back to Middle English dayerie, deyerie, from deye (female servant or dairymaid) and
further back to Old English dæge (kneader of bread).
With industrialization and urbanization, the supply of milk became a commercial industry, with
specialized breeds of cattle being developed for dairy, as distinct from beef or draught animals.
Initially, more people were employed as milkers, but it soon turned to mechanization with machines
designed to do the milking.
Historically, the milking and the processing took place close together in space and time: on a dairy
farm. People milked the animals by hand; on farms where only small numbers are kept, hand-milking
may still be practiced. Hand-milking is accomplished by grasping the teats (often pronounced tit or
tits) in the hand and expressing milk either by squeezing the fingers progressively, from the udder
end to the tip, or by squeezing the teat between thumb and index finger, then moving the hand
downward from udder towards the end of the teat. The action of the hand or fingers is designed to
close off the milk duct at the udder (upper) end and, by the movement of the fingers, close the duct
progressively to the tip to express the trapped milk. Each half or quarter of the udder is emp-tied
one milk-duct capacity at a time.
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Structure of the industry
While most countries produce their own milk products, the structure of the dairy industry varies in
different parts of the world. In major milk-producing countries most milk is distributed through
whole sale markets. In Ireland and Australia, for example, farmers' co-operatives own many of the
large-scale processors, while in the United States many farmers and processors do business through
individual contracts. In the United States, the country's 196 farmers' cooperatives sold 86% of milk in
the U.S. in 2002, with five cooperatives accounting for half that. This was down from 2,300
cooperatives in the 1940s. In developing countries, the past practice of farmers marketing milk in
their own neighbourhoods is changing rapidly. Notable developments include considerable foreign
investment in the dairy industry and a growing role for dairy cooperatives. Output of milk is growing
rapidly in such countries and presents a major source of income growth for many farmers.
As in many other branches of the food industry, dairy processing in the major dairy producing
countries has become increasingly concentrated, with fewer but larger and more efficient plants
operated by fewer workers. This is notably the case in the United States, Europe, Australia and New
Zealand. In 2009, charges of antitrust violations have been made against major dairy industry players
in the United States, which critics call Big Milk. Another round of price fixing charges was settled in
2016.
Government intervention in milk markets was common in the 20th century. A limited antitrust
exemption was created for U.S. dairy cooperatives by the Capper–Volstead Act of 1922. In the
1930s, some U.S. states adopted price controls, and Federal Milk Marketing Orders started under
the Agricultural Marketing Agreement Act of 1937 and continue in the 2000s. The Federal Milk Price
Support Program began in 1949. The Northeast Dairy Compact regulated wholesale milk prices in
New England from 1997 to 2001.
Plants producing liquid milk and products with short shelf life, such as yogurts, creams and soft
cheeses, tend to be located on the outskirts of urban centres close to consumer markets. Plants
manufacturing items with longer shelf life, such as butter, milk powders, cheese and whey powders,
tend to be situated in rural areas closer to the milk supply. Most large processing plants tend to
specialise in a limited range of products. Exceptionally, however, large plants producing a wide range
of products are still common in Eastern Europe, a holdover from the former centralized, supply-
driven concept of the market under Communist governments.
As processing plants grow fewer and larger, they tend to acquire bigger, more automated and more
efficient equipment. While this technological tendency keeps manufacturing costs lower, the need
for long-distance transportation often increases the environmental impact.
Milk production is irregular, depending on cow biology. Producers must adjust the mix of milk which
is sold in liquid form vs. processed foods (such as butter and cheese) depending on changing supply
and demand.
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Farming
When it became necessary to milk larger cows, the cows would be brought to a shed or barn that
was set up with stalls (milking stalls) where the cows could be confined their whole life while they
were milked. One person could milk more cows this way, as many as 20 for a skilled worker. But
having cows standing about in the yard and shed waiting to be milked is not good for the cow, as she
needs as much time in the paddock grazing as is possible. It is usual to restrict the twice-daily milking
to a maximum of an hour and a half each time. It makes no difference whether one milks 10 or 1000
cows, the milking time should not exceed a total of about three hours each day for any cow as they
should be in stalls and laying down as long as possible to increase comfort which will in turn aid in
milk production. A cow is physically milked for only about 10 minutes a day depending on her milk
let-down time and the number of milking per day.
As herd sizes increased there was more need to have efficient milking machines, sheds, milk-storage
facilities (vats), bulk-milk transport and shed cleaning capabilities and the means of getting cows
from paddock to shed and back.
As herd numbers increased so did the problems of animal health. In New Zealand two approaches to
this problem have been used. The first was improved veterinary medicines (and the government
regulation of the medicines) that the farmer could use. The other was the creation of veterinary
clubs where groups of farmers would employ a veterinarian (vet) full-time and share those services
throughout the year. It was in the vet's interest to keep the animals healthy and reduce the number
of calls from farmers, rather than to ensure that the farmer needed to call for service and pay
regularly.
This daily milking routine goes on for about 300 to 320 days per year that the cow stays in milk.
Some small herds are milked once a day for about the last 20 days of the production cycle, but this is
not usual for large herds. If a cow is left unmilked just once she is likely to reduce milk-production
almost immediately and the rest of the season may see her dried off (giving no milk) and still
consuming feed. However, once-a-day milking is now being practised more widely in New Zealand
for profit and lifestyle reasons. This is effective because the fall in milk yield is at least partially offset
by labour and cost savings from milking once per day. This compares to some intensive farm systems
in the United States that milk three or more times per day due to higher milk yields per cow and
lower marginal labour costs.
The southern hemisphere Dairying systems allow for two months on no productivity because their
systems are designed to take advantage of maximum grass and milk production in the spring and
because the milk processing plants pay bonuses in the dry (winter) season to carry the farmers
through the mid-winter break from milking. It also means that cows have a rest from milk
production when they are most heavily pregnant. Some year-round milk farms are penalised
financially for overproduction at any time in the year by being unable to sell their overproduction at
current prices.
Industrial processing
Dairy plants process the raw milk they receive from farmers so as to extend its marketable life. Two
main types of processes are employed: heat treatment to ensure the safety of milk for human
consumption and to lengthen its shelf-life, and dehydrating dairy products such as butter, hard
cheese and milk powders so that they can be stored.
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Products offered by Dairy
Liquid milk:
Liquid milk is the most consumed, processed and marketed dairy product. Liquid milk includes
products such as pasteurized milk, skimmed milk, standardized milk, reconstituted milk, ultra-high-
temperature (UHT) milk and fortified milk. Worldwide, less and less liquid milk is consumed in its raw
form.
Fermented milks
Fermented milks are commonly used to make other milk products. They are obtained from the
fermentation of milk using suitable microorganisms to reach a desired level of acidity. Fermented
products include yoghurt, koumiss, dahi, labneh, ergo, tarag, kurut and kefir.
Cheeses
Cheeses are produced through the coagulation of milk protein (casein), which is separated from the
milk’s whey. Hundreds of varieties of cheese are produced, many of them being characteristic to a
particular region of the globe. However, most cheese is produced in developed countries. Cheese
can be soft, hard, semi-hard, hard ripened or unripened. Cheese’s diverse characteristics derive from
differences in the compositions and types of milk, processes applied and microorganisms used.
Traditional cheeses produced in developing countries include ayib, gibna bayda, chanco, queso
fresco, akawieh and chhurpi.
Butter
Butter and ghee are fatty milk products. Butter is produced by churning milk or cream; in many
developing countries, traditional butter is obtained by churning sour whole milk. Ghee is obtained by
removing the water from butter and is especially popular in South Asia. Ghee has a very long shelf-
life of up to two years.
Condensed milk
Condensed milk is obtained from the partial removal of water from whole or skimmed milk.
Processing includes heat-treating and concentration. Condensed milk can be sweetened or
unsweetened, but most is sweetened. In Latin America, for example, condensed milk is often used in
cooking and baking instead of jam.
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