“Amritam Vai gvam khriramityah tridshadhip,

tasmad dadatim yo dhenumamatrim sa

Praychhti”. 

Source: Mahabharatha
Failure is never Final and
Success never Ends
Kurien
 Dairy History
• Phase 1st
– After Independence.
– Govt. monopolized through Milk Control board
– Import of powdered milk.
• Phase 2nd
– Operation Flood
– 4th Year Plan
– Exponential Trend
 Continued..
• Phase 3rd
– Globalize World
– Trade Liberalization
– Policied Changes
 Sector Distribution
• Unorganized
– Constitutes 80% of the market.
– Comprises of Pvt. Organizations
– Local milk vendors, Wholesalers, retailers,
Producer Themselves.
• Organized
– Constitutes remaining 20%.
– Comprises Government and Cooperatives,
 Unorganized Vs Organized
• Pricing Policy
– Fat Content / liter (Cooperative)
– Simply / liter of milk. (Private)

• Payment Policy
– Weekly Payment (Cooperatives)
– Daily payment (Private)
 Dairy Facts

• Century Old tradition for millions of Indian rural

households.
• Domestic animals have been an integral part of
the Farming system.
• Got licensed in the year 1991.
• Milk production will more than double in2020.
 Continued..

• India is largest cattle & Buffalo

• In 1970-1990, the milk production was
around 80 million tonnes having Y-O-Y of
4.5%.
• UP the largest producer of milk (13.5
million tonnes)
 Dairy Products
• Milk • Cheese
– Cream – Curds
– Milk Powder – Cottage Cheese
– Condensed Milk – Quark
– Evaporated Milk • Casein
• Butter • Ice Cream
– Butter Milk • Makkhan
– Ghee
• Khoa
 Dairy Animals
• Generally • Occasionally
– Cows – Goats
– Buffalos – Sheep's
– Yaks
– Camels
– Horses
 Operation Flood (OFP)
• OF-1
– 1970-71 to 1980-81
• OF-2
– 1978-79 to 1984-85
• OF-3
– 1987-88 to April 1996
 OF Objectives
• Make each OF City restructure and
capture a commanding share of its market.
• To identify and satisfy the needs of milk
consumers and producers.
• To facilitate long term investment in
dairying.
• To supply adequate workforce for the
project.
 Milk Marketing
• More than 67% of dairy animals are owned by
marginal and small farmers.
• The concept originated in Operation flood and
has turned out to be Boon for the Sector.
• GCMMF (Gujarat Co-operative Milk Marketing
Federation) incorporated in 1973 is the largest
Milk Marketing body in the country with annual
turnover of Rs. 22 billion
Source: Annual dairy report 1997
Constraints in Milk Marketing
• Inadequate basic Infrastructure for
Production Inputs.
• Inadequate infrastructure for Procurement,
Transportation, Processing and Marketing
of Milk.
• Lack of Professional management.
• Animals are fed with residual Crop which
have very low Opportunity cost.