Diamond Model - Demand

Per capita Per capita

Production Production
Year availability availability
(Million tonnes) Growth Rate
(gms/day) Growth rate
1991-92 55.6 - 178 -
1992-93 58.0 4.32 182 2.25
1993-94 60.6 4.48 186 2.2
1994-95 63.8 5.28 192 3.23
1995-96 66.2 3.76 195 1.56
1996-97 69.1 4.38 200 2.56
Source - Basic Animal Husbandry Statistics
Table 1 - Milk production and per capita availability of milk in India

Table 2 Region wise Distribution of Milk Production, Human Population & Per Capita
Availability, 1995

From Table 1 it can be observed that production of milk & per capita availability has been on the rise,
which means that demand for dairy products has been increasing constantly. Thus Aruns decision to
diversify would be highly beneficial as Arun would be able to generate higher revenues with the
increasing demand of dairy products.

From Table 2 it can be observed that the highest production & per capita availability of milk was in
northern India. The southern India had population of 212.8 million, milk production of 13.5 million
metric tonnes & per capita availability of 174 grams per day. This shows that there was a greater
prospect of increment in the milk production & consumption as consumption was very low in terms of
population. To conclude it can be said that demand of the dairy products was bound to rise with the
increasing production & availability of milk.
 Consumption patterns of milk and milk products in India: 1951-95

Source Dairy India (1997)

The above chart shows that Arun should diversify into production of dairy products & focus especially
on milk production as the consumption of liquid milk has drastically increased from 39.3% in 1951 to
45.7% in 1995.
Elements of Strategy

Arena