Milk production to reach 111 million tonnes by 2010

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New Delhi, Sep 17 (UNI) India's milk production, which includes cow and buffalo milk, is expected to touch the 111 million tonnes mark by 2010 as against the current production of 100.9 million tonnes during 2006-07, growing at four per cent per annum.

Global milk production, around 655 million tonnes in 2006-07, is estimated to be growing at 1.6 per cent per annum. India ranks second in terms of milk production after the EU-27 and accounts for 15 per cent of global milk production.

India is among the world's largest and fastest growing markets for milk and milk products. The market size in value terms for milk and milk products, including the organised and unorganised sector, is Rs 2000 billion (47.6 billion US dollars), growing at nearly 7.5 per cent annually.

The demand for value added milk products, such as cheese, dahi (Indian yoghurt) and probiotic drinks, is increasing at a double digit rate, an official release said here today.

At present, India seems to be self-sufficient in meeting its requirement for milk and milk products. However, given that demand is growing faster than supply, there could be serious issues with respect to self-sufficiency in the near future. Any increase in milk production is dependent on the farmgate price received by the producer.

Farmgate prices have increased by more than 50 per cent in the last three years. Focused efforts would be required on two front: increasing farm size (currently the average number of animals per producer is three to four), and increasing productivity of milk producing animals.

The market for liquid milk and value-added dairy products is still largely dominated by the unorganised sector. India has an insignificant share of the global dairy trade, less than one per cent, despite being a leading producer of milk.

Despite the high growth rate in production, the per capita availability of milk in India (245 gm per day) is lower than the world average (285 gm per day). Buffalo milk now accounts for approximately 57 per cent of total milk production in India.

This level has remained stable over the last few years.

Most of the packed liquid-milk segment in India is dominated by the cooperatives. The liquid milk contribution in total revenues ranges from 60 per cent to 80 per cent is the case of cooperatives.

Private players barring few are mainly focused on milk products other than packed liquid milk.

There is a huge potential for processing and value addition in the organised sector, particularly in ethnic Indian sweets, which are largely sold in unbranded form in the market.

The key differences between the organised and the unorganised sectors concern the level of investment in preserving the quality of milk, the technology used for processing and the compliance with food standards.

UNI BBS SW CS1615

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