VIGNANA JYOTHI INSTITUTE Dairy Industry Project Report 2021-2023

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This project report, submitted by N Chandra Shekar and R Vishnu Vardhan Reddy from VIGNANA JYOTHI INSTITUTE OF MANAGEMENT, provides a comprehensive overview of the dairy industry. The report covers various aspects, including an introduction to the industry, the history of milk production, and the products offered, such as liquid milk, fermented milks, cheeses, butter, condensed milk, and evaporated milks. It delves into the segmentation, growth, and the impact of COVID-19 on the industry. Furthermore, the report analyzes future trends, the nature of competition, and utilizes PESTLE analysis and Porter's 5 Force Model to assess the industry's environment. The report also includes a webliography for references. The report is designed to provide a thorough understanding of the dairy industry's current state and future prospects.
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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
dair is a business enter rise establis ed for t e ar esting or ro essing or bot of ani al ilA y p h h h v p c ( h) m m k –
ostl fro o s or buffaloes but also fro goats s ee orses or a els for u anm y m c w , m , h p, h , c m h m
onsu tion dair is t i all lo ated on a dedi ated dair far or in a se tion of a ulti ur osec mp . A y yp c y c c y m c m -p p
far i ed far t at is on erned it t e ar esting of ilm (m x m) h c c w h h h v m k.
s an attributi e t e ord dair refers to il based rodu ts deri ati es and ro esses and t eA v , h w y m k- p c , v v p c , h
ani als and or ers in ol ed in t eir rodu tion for e a le dair attle dair goat dair farm w k v v h p c : x mp y c , y . A y m
rodu es il and a dair fa tor ro esses it into a ariet of dair rodu ts T ese establis entsp c m k y c y p c v y y p c . h hm
onstitute t e global dair industr art of t e food industrc h y y, p h y.
History
Mil rodu ing ani als a e been do esti ated for t ousands of ears nitiall t e ere art ofk p c m h v m c h y . I y, h y w p
t e subsisten e far ing t at no ad engaged in s t e o unit o ed about t e ountr t eirh c m h m . A h c mm y m v h c y, h
ani als a o anied t e rote ting and feeding t e ani als ere a big art of t e s biotim cc mp h m. P c h m w p h ym c
relations i bet een t e ani als and t e erdersh p w h m h h .
n t e ore re ent ast eo le in agri ultural so ieties o ned dair ani als t at t e il ed forI h m c p , p p c c w y m h h y m k
do esti and lo al illage onsu tion a t i al e a le of a ottage industr T e ani als ig tm c c (v ) c mp , yp c x mp c y. h m m h
ser e ulti le ur oses for e a le as a draug t ani al for ulling a lo as a oungster and atv m p p p ( x mp , h m p p w y ,
t e end of its useful life as eat n t is ase t e ani als ere nor all il ed b and and t eh m ). I h c , h m w m y m k y h h
erd si e as uite s all so t at all of t e ani als ould be il ed in less t an an our abouth z w q m , h h m c m k h h 10
er il er T ese tas s ere erfor ed b a dair aid dair o an or dair an T e ord dairp m k . h k w p m y ym ( yw m ) ym . h w y
ar ens ba to Middle nglis da erie de erie fro de e fe ale ser ant or dair aid andh k ck E h y , y , m y ( m v ym )
furt er ba to ld nglis d ge neader of breadh ck O E h æ (k ).
it industriali ation and urbani ation t e su l of il be a e a o er ial industr itW h z z , h pp y m k c m c mm c y, w h
s e iali ed breeds of attle being de elo ed for dair as distin t fro beef or draug t ani alsp c z c v p y, c m h m .
nitiall ore eo le ere e lo ed as il ers but it soon turned to e ani ation it a inesI y, m p p w mp y m k , m ch z w h m ch
designed to do t e il ingh m k .
istori all t e il ing and t e ro essing too la e lose toget er in s a e and ti e on a dairH c y, h m k h p c k p c c h p c m : y
far eo le il ed t e ani als b and on far s ere onl s all nu bers are e t and il ingm. P p m k h m y h ; m wh y m m k p , h -m k
a still be ra ti ed and il ing is a o lis ed b gras ing t e teats often ronoun ed tit orm y p c c . H -m k cc mp h y p h ( p c
tits in t e and and e ressing il eit er b s uee ing t e fingers rogressi el fro t e udder) h h xp m k h y q z h p v y, m h
end to t e ti or b s uee ing t e teat bet een t u b and inde finger t en o ing t e andh p, y q z h w h m x , h m v h h
do n ard fro udder to ards t e end of t e teat T e a tion of t e and or fingers is designed tow w m w h h . h c h h
lose off t e il du t at t e udder u er end and b t e o e ent of t e fingers lose t e du tc h m k c h ( pp ) , y h m v m h , c h c
rogressi el to t e ti to e ress t e tra ed il a alf or uarter of t e udder is e tiedp v y h p xp h pp m k. E ch h q h mp-
one il du t a a it at a ti em k- c c p c y m .
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Structure of the industry
ile ost ountries rodu e t eir o n il rodu ts t e stru ture of t e dair industr aries inWh m c p c h w m k p c , h c h y y v
different arts of t e orld n a or il rodu ing ountries ost il is distributed t rougp h w . I m j m k-p c c m m k h h
ole sale ar ets n reland and ustralia for e a le far ers o o erati es o n an of t ewh m k . I I A , x mp , m ' c - p v w m y h
large s ale ro essors ile in t e nited tates an far ers and ro essors do business t roug- c p c , wh h U S m y m p c h h
indi idual ontra ts n t e nited tates t e ountr s far ers oo erati es sold of il inv c c . I h U S , h c y' 196 m ' c p v 86% m k
t e in it fi e oo erati es a ounting for alf t at T is as do n froh U.S. 2002, w h v c p v cc h h . h w w m 2,300
oo erati es in t e s n de elo ing ountries t e ast ra ti e of far ers ar eting il inc p v h 1940 . I v p c , h p p c c m m k m k
t eir o n neig bour oods is anging ra idl otable de elo ents in lude onsiderable foreignh w h h ch p y. N v pm c c
in est ent in t e dair industr and a gro ing role for dair oo erati es ut ut of il is gro ingv m h y y w y c p v . O p m k w
ra idl in su ountries and resents a a or sour e of in o e gro t for an far ersp y ch c p m j c c m w h m y m .
s in an ot er bran es of t e food industr dair ro essing in t e a or dair rodu ingA m y h ch h y, y p c h m j y p c
ountries as be o e in reasingl on entrated it fe er but larger and ore effi ient lantsc h c m c y c c , w h w m c p
o erated b fe er or ers T is is notabl t e ase in t e nited tates uro e ustralia and ep y w w k . h y h c h U S , E p , A N w
ealand n arges of antitrust iolations a e been ade against a or dair industr la ersZ . I 2009, ch v h v m m j y y p y
in t e nited tates i riti s all ig Mil not er round of ri e fi ing arges as settled inh U S , wh ch c c c B k. A h p c x ch w
2016.
o ern ent inter ention in il ar ets as o on in t e t entur li ited antitrustG v m v m k m k w c mm h 20 h c y. A m
e e tion as reated for dair oo erati es b t e Ca er olstead t of n t ex mp w c U.S. y c p v y h pp –V Ac 1922. I h
s so e states ado ted ri e ontrols and Federal Mil Mar eting rders started under1930 , m U.S. p p c c , k k O
t e gri ultural Mar eting gree ent t of and ontinue in t e s T e Federal Mil ri eh A c k A m Ac 1937 c h 2000 . h k P c
u ort rogra began in T e ort east air Co a t regulated olesale il ri es inS pp P m 1949. h N h D y mp c wh m k p c
e ngland fro toN w E m 1997 2001.
lants rodu ing li uid il and rodu ts it s ort s elf life su as ogurts rea s and softP p c q m k p c w h h h , ch y , c m
eeses tend to be lo ated on t e outs irts of urban entres lose to onsu er ar ets lantsch , c h k c c c m m k . P
anufa turing ite s it longer s elf life su as butter il o ders eese and e o dersm c m w h h , ch , m k p w , ch wh y p w ,
tend to be situated in rural areas loser to t e il su l Most large ro essing lants tend toc h m k pp y. p c p
s e ialise in a li ited range of rodu ts e tionall o e er large lants rodu ing a ide rangep c m p c . Exc p y, h w v , p p c w
of rodu ts are still o on in astern uro e a oldo er fro t e for er entrali ed su lp c c mm E E p , h v m h m c z , pp y-
dri en on e t of t e ar et under Co unist go ern entsv c c p h m k mm v m .
s ro essing lants gro fe er and larger t e tend to a uire bigger ore auto ated and oreA p c p w w , h y cq , m m m
effi ient e ui ent ile t is te nologi al tenden ee s anufa turing osts lo er t e needc q pm . Wh h ch c cy k p m c c w , h
for long distan e trans ortation often in reases t e en iron ental i a t- c p c h v m mp c .
Mil rodu tion is irregular de ending on o biolog rodu ers ust ad ust t e i of il ik p c , p c w y. P c m j h m x m k wh ch
is sold in li uid for s ro essed foods su as butter and eese de ending on anging su lq m v . p c ( ch ch ) p ch pp y
and de andm .
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Farming
en it be a e ne essar to il larger o s t e o s ould be broug t to a s ed or barn t atWh c m c y m k c w , h c w w h h h
as set u it stalls il ing stalls ere t e o s ould be onfined t eir ole life ile t ew p w h (m k ) wh h c w c c h wh wh h y
ere il ed ne erson ould il ore o s t is a as an as for a s illed or er utw m k . O p c m k m c w h w y, m y 20 k w k . B
a ing o s standing about in t e ard and s ed aiting to be il ed is not good for t e o as s eh v c w h y h w m k h c w, h
needs as u ti e in t e addo gra ing as is ossible t is usual to restri t t e t i e dail il ingm ch m h p ck z p . I c h w c - y m k
to a a i u of an our and a alf ea ti e t a es no differen e et er one il s orm x m m h h ch m . I m k c wh h m k 10 1000
o s t e il ing ti e s ould not e eed a total of about t ree ours ea da for an o as t ec w , h m k m h xc h h ch y y c w h y
s ould be in stalls and la ing do n as long as ossible to in rease o fort i ill in turn aid inh y w p c c m wh ch w
il rodu tion o is si all il ed for onl about inutes a da de ending on er ilm k p c . A c w phy c y m k y 10 m y p h m k
let do n ti e and t e nu ber of il ing er da- w m h m m k p y.
s erd si es in reased t ere as ore need to a e effi ient il ing a ines s eds il storageA h z c h w m h v c m k m ch , h , m k-
fa ilities ats bul il trans ort and s ed leaning a abilities and t e eans of getting o sc (v ), k-m k p h c c p h m c w
fro addo to s ed and bam p ck h ck.
s erd nu bers in reased so did t e roble s of ani al ealt n e ealand t o a roa es toA h m c h p m m h h. I N w Z w pp ch
t is roble a e been used T e first as i ro ed eterinar edi ines and t e go ern enth p m h v . h w mp v v y m c ( h v m
regulation of t e edi ines t at t e far er ould use T e ot er as t e reation of eterinarh m c ) h h m c . h h w h c v y
lubs ere grou s of far ers ould e lo a eterinarian et full ti e and s are t ose ser i esc wh p m w mp y v (v ) - m h h v c
t roug out t e ear t as in t e et s interest to ee t e ani als ealt and redu e t e nu berh h h y . I w h v ' k p h m h hy c h m
of alls fro far ers rat er t an to ensure t at t e far er needed to all for ser i e and ac m m , h h h h m c v c p y
regularly.
T is dail il ing routine goes on for about to da s er ear t at t e o sta s in ilh y m k 300 320 y p y h h c w y m k.
o e s all erds are il ed on e a da for about t e last da s of t e rodu tion le but t is isS m m h m k c y h 20 y h p c cyc , h
not usual for large erds f a o is left un il ed ust on e s e is li el to redu e il rodu tionh . I c w m k j c h k y c m k-p c
al ost i ediatel and t e rest of t e season a see er dried off gi ing no il and stillm mm y h h m y h ( v m k)
onsu ing feed o e er on e a da il ing is no being ra tised ore idel in e ealandc m . H w v , c - - y m k w p c m w y N w Z
for rofit and lifest le reasons T is is effe ti e be ause t e fall in il ield is at least artiall offsetp y . h c v c h m k y p y
b labour and ost sa ings fro il ing on e er da T is o ares to so e intensi e far s ste sy c v m m k c p y. h c mp m v m y m
in t e nited tates t at il t ree or ore ti es er da due to ig er il ields er o andh U S h m k h m m p y h h m k y p c w
lo er arginal labour ostsw m c .
T e sout ern e is ere air ing s ste s allo for t o ont s on no rodu ti it be ause t eirh h h m ph D y y m w w m h p c v y c h
s ste s are designed to ta e ad antage of a i u grass and il rodu tion in t e s ring andy m k v m x m m m k p c h p
be ause t e il ro essing lants a bonuses in t e dr inter season to arr t e far ersc h m k p c p p y h y (w ) c y h m
t roug t e id inter brea fro il ing t also eans t at o s a e a rest fro ilh h h m -w k m m k . I m h c w h v m m k
rodu tion en t e are ost ea il regnant o e ear round il far s are enalisedp c wh h y m h v y p . S m y - m k m p
finan iall for o er rodu tion at an ti e in t e ear b being unable to sell t eir o er rodu tion atc y v p c y m h y y h v p c
urrent ri esc p c .
Industrial processing
air lants ro ess t e ra il t e re ei e fro far ers so as to e tend its ar etable life T oD y p p c h w m k h y c v m m x m k . w
ain t es of ro esses are e lo ed eat treat ent to ensure t e safet of il for u anm yp p c mp y : h m h y m k h m
onsu tion and to lengt en its s elf life and de drating dair rodu ts su as butter ardc mp h h - , hy y p c ch , h
eese and il o ders so t at t e an be storedch m k p w h h y c .
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Products offered by Dairy
Liquid milk:
i uid il is t e ost onsu ed ro essed and ar eted dair rodu t i uid il in ludesL q m k h m c m , p c m k y p c . L q m k c
rodu ts su as asteuri ed il s i ed il standardi ed il re onstituted il ultra igp c ch p z m k, k mm m k, z m k, c m k, -h h-
te erature T il and fortified il orld ide less and less li uid il is onsu ed in its ramp (UH ) m k m k. W w , q m k c m w
form.
Fermented milks
Fer ented il s are o onl used to a e ot er il rodu ts T e are obtained fro t em m k c mm y m k h m k p c . h y m h
fer entation of il using suitable i roorganis s to rea a desired le el of a idit Fer entedm m k m c m ch v c y. m
rodu ts in lude og urt ou iss da i labne ergo tarag urut and efirp c c y h , k m , h , h, , , k k .
Cheeses
C eeses are rodu ed t roug t e oagulation of il rotein asein i is se arated fro t eh p c h h h c m k p (c ), wh ch p m h
il s e undreds of arieties of eese are rodu ed an of t e being ara teristi to am k’ wh y. H v ch p c , m y h m ch c c
arti ular region of t e globe o e er ost eese is rodu ed in de elo ed ountries C eesep c h . H w v , m ch p c v p c . h
an be soft ard se i ard ard ri ened or unri ened C eese s di erse ara teristi s deri e froc , h , m -h , h p p . h v ch c c v m
differen es in t e o ositions and t es of il ro esses a lied and i roorganis s usedc h c mp yp m k, p c pp m c m .
Traditional eeses rodu ed in de elo ing ountries in lude a ib gibna ba da an o uesoch p c v p c c y , y , ch c , q
fres o a a ie and ur ic , k w h chh p .
Butter
utter and g ee are fatt il rodu ts utter is rodu ed b urning il or rea in anB h y m k p c . B p c y ch m k c m; m y
de elo ing ountries traditional butter is obtained b urning sour ole il ee is obtained bv p c , y ch wh m k. Gh y
re o ing t e ater fro butter and is es e iall o ular in out sia ee as a er long s elfm v h w m p c y p p S h A . Gh h v y h -
life of u to t o earsp w y .
Condensed milk
Condensed il is obtained fro t e artial re o al of ater fro ole or s i ed ilm k m h p m v w m wh k mm m k.
ro essing in ludes eat treating and on entration Condensed il an be s eetened orP c c h - c c . m k c w
uns eetened but ost is s eetened n atin eri a for e a le ondensed il is often used inw , m w . I L Am c , x mp , c m k
oo ing and ba ing instead of ac k k j m.
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Evaporated milks
a orated il s result fro t e artial re o al of ater fro ole or s i ed il ro essingEv p m k m h p m v w m wh k mm m k. P c
in ludes eat treating to a e t e il ba teriologi all safe and stable a orated il s arec h - m k h m k c c y . Ev p m k
generall i ed it ot er foods su as in il teay m x w h h , ch m ky .
Dry milk
r il or il o der is obtained fro t e de dration of il and is usuall in t e for ofD y m k m k p w m h hy m k y h m
o der or granulesp w .
Cream
Crea is t e art of il t at is o arati el ri in il fat it is e tra ted b s i ing orm h p m k h c mp v y ch m k ; x c y k mm
entrifuging t e il Crea rodu ts in lude re o bined rea re onstituted rea re aredc h m k. m p c c c m c m, c c m, p p
rea s re a aged li uid rea i ing rea rea a ed under ressure i ed reac m , p -p ck q c m, wh pp c m, c m p ck p , wh pp c m,
fer ented rea and a idified ream c m c c m.
Whey products
e rodu ts ording to F T T e is t e li uid art of t e il t at re ains after t eWh y p c : Acc AOS A , wh y “ h q p h m k h m h
se aration of urd in eese a ing ts ain food use is in t e re aration of e eese ep c ch m k . I m h p p wh y ch , wh y
drin s and fer ented e drin s T e ain industrial uses are in t e anufa ture of la tose ek m wh y k . h m h m c c , wh y
aste and dried e e an be s eet fro t e rodu tion of rennet oagulated eeses orp wh y.” Wh y c w ( m h p c -c ch )
a id fro t e rodu tion of a id oagulated eesesc ( m h p c c -c ch ).
Casein
Casein is t e rin i al rotein in il and is used as an ingredient in se eral rodu ts in ludingh p c p p m k v p c , c
eese ba er rodu ts aints and glues t is e tra ted fro s i ed il b re i itation itch , k y p c , p . I x c m k mm m k y p c p w h
rennet or b ar less la ti a id rodu ing ba teriay h m c c c -p c c .
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SEGMENTATION ON DAIRY PRODUCTS
basis of dairy
product type
Milk
Yogurt
Cheese
Ghee
Butter
Ice-cream
Other (Buttermilk, Lassi, Basundi, and
Shrikhand)
basis of flavor
type
Chocolate
Vanilla
Strawberry and Raspberry
Cardamom
Rose
Saffron
Other (Cashew and Pistachio, Almond, Mango,
Garlic, Oregano etc.)
basis of form
type
Liquid
Solid
Semisolid
basis of end use
industry
Food & Beverage Industry
Confectionery Industry
Hotel or Restaurant Industry
Global Dairy Products Market is segmented By Product Type (Milk, Skimmed Milk
Powder, Whey Milk Powder, Whey Protein, Butter, Cheese, Yogurt, Others), By
Distribution Channel (Supermarkets & Hypermarkets, Convenience Stores,
Online, others), and By Region (North America, Latin America, Europe, Asia
Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis,
2021-2028
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Growth of Dairy Industry in India
India is the largest milk producer.
India is currently ranked as the largest milk producer. Where, dairy is the single
largest agricultural commodity contributing 5% of the national economy,
witnessing 6.4% (CAGR) in the past 5 years. Indian dairy industry is expected to
grow by 9-11% in FY22.
The top 5 milk-producing states are: Uttar Pradesh (16.3%, 30.52 MMT),
Rajasthan (12.6%, 23.69 MMT), Madhya Pradesh (8.5%, 15.91 MMT), Andhra
Pradesh (8%, 15.04 MMT) and Gujarat (7.7%, 14.49 MMT).
The Government of India in association with the Department of Animal
Husbandry and Dairying in June 2020 announced a $ 2.1 Bn infrastructure
development fund with an interest subsidy scheme to promote investment by
private players and MSMEs in dairy, meat processing and animal feed plants
which in return is expected to create 3.5 million jobs.
The Ministry of Food Processing Industries (MoFPI) has issued detailed
operational scheme guidelines and has launched an online portal for ‘Production
Linked Incentive Scheme for Food Processing Industry (PLISFPI) with an outlay of
$ 1.4 Bn to support the creation of global food manufacturing champions
commensurate with India’s natural resource endowment and support Indian
brands of food products in the international markets.
$355 bn
DAIRY INDUSTRY BY 2025.
80 Mn
PEOPLE ARE EMPLOYED IN THE DAIRY INDUSTRY
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14.8%
GROWTH EXPECTED BY FY 2023 IN THE MILK PROCESSING INDUSTRY
Resilience of Indian Dairy sector during
COVID-19 pandemic
Dairy is a ubiquitous part of food palette in India, ever-present in both food
service and packaged goods, whether as an end product (such as milk or curd) or
as a critical input for products such as butter, cheese, and paneer. Given its
intrinsic presence in our daily diet, dairy is a microcosm of the food industry, with
the preferences of dairy consumers largely being influenced by the same trends
affecting the broader food sector.
In the early days and months of the COVID-19 pandemic, the dairy industry faced
challenges—such as shifts in supply and demand. This supply-and-demand
mismatch early on was created by an abrupt shift in supply, from dairy farmers
at village level to large co-operatives. On the demand side, many producers and
co-operatives were left without a market to sell their products. This abrupt shift
of the dairy market from procurement centres to retail outlets overwhelmed
distribution logistics in the short run. However, the industry ultimately emerged
intact thanks to adjustments such as supply chain simplification and operational
flexibility in the business model.
While nearly all dairy companies struggled to adjust to the new normal during
the early stages of the pandemic, most capitalized on increased retail demand
through operational flexibility.
The following three factors contributed to their success:
1. Manufacturing flexibility: Most of the surplus milk was
converted to Skimmed Milk powder, Butter and Cheese. This
highlights the value of flexibility and how systems could benefit
from such adaptability in the future.
2. Collaboration across the supply chain: Producers, processors,
packagers, distributors, and retailers coordinated among
themselves, as well as with local and state authorities, to ensure
products reached shelves on time ensuring the population was
able to get their favourite cup of tea all along the pandemic.
Government also played a major role to ensure no interruption
happened in the essential commodity supply chain.
3. Simplification of the product basket: Product rationalization
characterized much of the crisis. To meet increased demand,
companies moved away from a historic focus on variety of dairy
products and moved toward the basics – milk, butter, and paneer.
COVID-19 has changed the world, but the fundamentals of dairy sector are just
as relevant in today's uncertain environment. This past year was challenging for
many reasons, yet the dairy industry showed its resilience. Focus on dairy
farmers, processors and the consumer will reap rewards for the sector in the
coming times.
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The government has also supported the sector with various
schemes and initiatives:
Government has extended the Dairy Processing and Infrastructure
Development Fund till 2022-23. This will focus on building an efficient
milk procurement system by setting up of processing and chilling
infrastructure and installation of electronic milk adulteration testing
equipment at village level. The scheme envisages providing loan
assistance to State Dairy Federations, District Milk Unions, Milk producers
companies, Multi State Cooperatives and NDDB subsidiaries across the
country who are termed as Eligible End Borrowers (EEBs).
The Animal Husbandry Infrastructure Development has been
approved for incentivizing investments by individual entrepreneurs,
private companies, M MS E, Farmers Producers Organizations (FPOs) and
Section 8 companies to establish
(i) the dairy processing and value addition infrastructure,
(ii) meat processing and value addition infrastructure and
(iii) animal feed plant. The Animal Husbandry Infrastructure Development
is a central sector scheme under the Prime Minister’s Atma Nirbhar Bharat
Abhiyan stimulus package for incentivizing with budget allocation of INR
15,000 crore.
Government has also approved the central sector scheme – Production
Linked Incentive Scheme for Food Processing Industry and the
scheme focuses on dairy products such as Mozzarella Cheese, Ice Cream,
Milk-based beverage and Indian traditional sweets. The central scheme
has an outlay of INR 10,900 crore and will be implemented over a six-year
period from 2021-22 to 2026-27. It is a great initiative of the government
for the creation of global food manufacturing champions.
The pandemic marks a turning point for the dairy sector: new patterns of
consumer and business behaviour emerged at extraordinary speed during the
pandemic. The level of innovation in response to this crisis has been truly
impressive in the dairy sector. Shift to newer business models accelerated faster
than many believed possible. Companies that rapidly evolved themselves in
response to the pandemic have done tremendously well and are well poised to
reap the benefits in future.
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