EMERGENCE OF INDIAN DAIRY PRODUCT'S IN SUPER MARKET SCENARIO

Dairy Product Market

The country is the worlds largest milk producer 121.5 million tonnes of milk during 2010-11, accounting for more than 17% of worlds total milk production. It is the worlds largest consumer of dairy products, consuming almost 100% of its own milk production.

The cheese market, presently valued at about Rs.80 crore is growing at about 9% annually. Dahi even though is a Rs.15000 crore market, the share of the organized sector is only around 10%.Traditional milk based sweets, manufactured in the country. The market size is around Rs.12000 crore.About 45% of milk production is consumed as fluid milk. About 35% is processed into butter or ghee; about 7% is processed into Paneer (cottage cheese) and other cheeses, about 4% is converted into milk powder; and the balance is used for other products such as Dahi (yoghurt) and sweet meats. In recent years, there has been an increasing ice cream production as foreign companies have invested in India.

The organised cheese market including its variants like processed cheese, cheese spreads, mozzarella, flavoured and spiced cheese, is placed at around Rs 3 bn. Processed cheese at 50% of the overall market is Rs. 1.5 bn strong. The next most popular variant is cheese spread claiming a share of around 30% of the total cheese market. The market is primarily an urban phenomenon and is know to be growing at around 15%. The market for cheese cubes slices and tins is growing. The flavored cheese segment has been declining.

The ice cream market in India is estimated to have reached the level of Rs. 10 bn per annum, of which the organized sector is about Rs. 6 bn. The unorganised market has been shrinking. The per capita ice cream consumption in the country is extremely low at 250 ml per year compared with that of the US, which is about 22 litre dairy whitner-The organised dairy industry processes an estimated 15% of the total milk output in India. The industry has maintained a high growth profile, especially in the wake of the Operation Flood, colloquially also termed as White Revolution, initiated in early 1980s. Today India produces over 80 mn tonnes of milk annually. In terms of value, the total milk economy is estimated at Rs. 1200 bn.

The average milk procurement by dairy cooperatives during 2009-10 (up to December, 2009) was more than 241 lakh kgs per day (provisional) as compared to 233 lakh kgs per day during the same period in the previous year, registering an increase of 3.4 per cent. The average milk marketing by cooperatives was 211 lakh litres per day as against 201 lakh litres per day, registering a rise of about five per cent over the corresponding period in the previous year

The demand for processed dairy products through suparmarket is expanding and is expected to keep doing so as cold supply chains and modern trade continue to evolve. Increasing urbanization,exposure to gourmet foods and corresponding changes in consumer preferences, behavior and purchasing power are the catalysts for the rise of processed dairy categories. And this is just the start," said Devendra Chawla head-private brands and food services, Future Grop.

India is a very minor player in the world market. India was primarily an import dependent country till early seventies. In the 1990s, India started exporting surplus dairy commodities, such as SMP, WMP, butter and ghee.The Agricultural and Processed Food Products Export Development Authority (APEDA) regulated the export and import of dairy products till early 1990s The major destinations for Indian dairy products are Bangladesh (23.1%), UAE (15.4%), US (15.6%) and Philippines (8.9%). In terms of products, SMP is the most important product accounting for about 63% of total export volume, followed by ghee and butter (11.7%) and WMP