National Dairy Development Board’s Post

How a group of united farmers saved the Indian dairy market and now generates 52,000 Crore in revenue annually!   During 1945, the Bombay Milk Scheme awarded Polson a monopoly right for procuring milk in Kaira District.   Farmers were forced to sell their milk to contractors at the minimum prices; hence, profits never rolled down to farmers.   After lots of protests and no supply of milk for 15 days by the farmers, the British government finally kneeled down and accepted the proposal of a milk co-operative, led by Tribhuvandas Patel.   This eliminated the middlemen and revolutionized the Indian diary industry forever!   Amul is a leader in innovation in the dairy product sector, making over 2000 products!   Under Amul, Dr. Kurien developed the world's first buffalo milk spray dryer, ensuring surplus milk could be processed into a shelf-stable product, minimizing waste.   Dr. Verghese Kurien realized the importance of consumer preference and adapted Amul's butter recipe to include salt and coloring like Polson's butter instead of Amul's original recipe for mass adoption!   Today, Amul collects 26.3 million liters of milk per day, and 80% of Amul's revenue goes directly to the farmers!   Amul spends only 1% of its revenue on marketing, whereas other FMCG companies spend 8–13%, yet Amul is a household name all thanks to their creative marketing.   Amul has used a celebrity because they made their 'Amul girl' a celebrity of its own!   Amul's success is built on a strong foundation—a unique 3-tier cooperative structure: Village Cooperative Societies, Member Unions, State Federation   This creates collective ownership and avoids internal competition, which contributes significantly to Amul's long-term success.

This morning, after voting, I was returning home and stopped by the dairy to purchase a small Amul butter. While reading its packet, something struck my mind, and I wondered why, even though most of us have been using Amul for more than a decade, I've never heard anyone talking about it in the context of stock market. So, I researched and found out that it's not listed on the stock market. Do you know why? Amul is one of India's largest FMCG brands, recording an annual turnover exceeding Rs 55,000 crore ($7.2 billion) in FY23. But here's the thing - Amul isn't a regular private limited company; it's a cooperative society working for farmers, not profit-seekers. Amul is the apex organization of the dairy cooperatives in Gujarat. Unlike private limited companies with shareholders, cooperative companies like Amul have members. Their primary objective isn't to earn profits but to increase the well-being and income of their members and serve the interests of their customers. Brief History : It all started in 1946 when milk became a symbol of protest in a small town in Gujarat. Angered by unfair trade practices followed by the local cartel, farmers approached Sardar Vallabhbhai Patel, who advised them to form their own cooperative to control procurement, processing, and marketing. That's how the Kaira District Co-operative Milk Producers Union Ltd. (now known as Amul Dairy) was born, with just two village dairy co-operative societies and 247 liters of milk. Under the leadership of Tribhuvandas Patel and Dr. Verghese Kurien, Amul grew from strength to strength. The success of Amul inspired the then Prime Minister Lal Bahadur Shastri to set up the National Dairy Development Board in 1965, with the objective of replicating the Amul model nationwide. What is Amul Model ? The Amul Model is a three-tiered structure with dairy cooperative societies at the village level, milk unions at the district level, and a federation of member unions at the state level. > Establishment of a direct linkage between milk producers and consumers by eliminating middlemen > Milk Producers (farmers) control procurement, processing and marketing > Professional Management This model has helped India become the world's largest milk producer, with over 16 million milk producers pouring their milk into 185,903 dairy cooperative societies across the country. Around 80% of the money earned goes directly to farmers and milk producers. Recently, Amul launched its milk in the US market, partnering with the 108-year-old cooperative organization Michigan Milk Producers Association (MMPA). MMPA will collect and process the milk, while Amul will handle the marketing and branding of Amul fresh milk in major #US cities like New York, New Jersey, Washington, etc., with plans to expand further. The Taste of India Now in America Amul doodh pitaa hai India......... #amul #business #india #analyst

The Maharashtra state cabinet has approved the handover of Mahanand Dairy's management to the National Dairy Development Board (NDDB) for five years in a bid to strengthen the cooperative milk sector. Mahanand, a venture of the Maharashtra State Cooperative Milk Federation Ltd (MSCMFL), has been experiencing significant losses and struggles to sustain its brand. The government aims to revitalize Mahanand by partnering with NDDB, providing financial support and adopting a commercial approach while maintaining cooperative principles. A steering committee will oversee Mahanand's professional development, and funds will be allocated for its revival, including retirement benefits for employees. The recent resignation of Mahanand Dairy's board facilitated its takeover by NDDB, despite previous criticism from political parties. The move has sparked debates, with concerns raised about the shift of control from Maharashtra to Gujarat-based NDDB. . . https://lnkd.in/gz9F2rdi

🥛 Exciting News from Banglar Dairy! 🚀 Banglar Dairy is making waves with its state-of-the-art dairy plant underway at the Haringhata campus, set to process up to 1.0 lakh litres of milk per day, expandable to 2.0 lakh litres. With products like pouched milk, paneer, ghee, curd, and lassi on the horizon, Banglar Dairy is shaping up to be a game-changer in the dairy industry. But that's not all! The modernization efforts at the Dankuni plant, coupled with investments in cold chain facilities and packaged drinking water facilities, signify Banglar Dairy's commitment to quality and innovation. With over 52,000 farmers benefiting from their initiatives, Banglar Dairy has become a cornerstone of Bengal's dairy sector. From an annual growth rate of 8.65% in milk production to a diverse range of products priced competitively, Banglar Dairy is not just providing high-quality dairy—it's driving economic growth and empowering communities. With 578 outlets across the state, the future looks bright for Banglar Dairy! . . #BanglarDairy #DairyIndustry #Modernization #EmpoweringFarmers #BengalEconomy 🌟 https://lnkd.in/gfXZMG35

Hello readers, I hope you all are very well. Earlier this month, Mother Dairy and Amul, two of India’s leading milk brands, increased their prices by 2 Rs. per litre. This is the first price increase in nearly 15 months. Amul and Mother Dairy last raised milk prices in February 2023. Days later, the Karnataka Milk Federation, selling under the Nandini brand and a significant player in the southern state, also announced a 2 Rs. per litre increase. While private milk players had increased their prices earlier, cooperatives and state-supported enterprises had managed to maintain stable prices. Interestingly, some dairies in southern India have reduced their retail rates. Meanwhile, in Maharashtra, milk farmers protested, demanding subsidies as procurement rates fell from 30 - 32 per litre last year to around 28 per litre. In response, the state government extended a 5 Rs. per litre subsidy to milk producers, disbursing around 224 crore to 300,000 odd farmers. So the key question here arises about the variance in retail price hikes among companies. Analysts attributes two reasons for this - 1. North-South divide 2. The monsoon factor 1. North-South divide - Traders and market players attribute this regional variance to the prices at which companies produce skimmed milk powder (SMP) and the stocks they hold. Dairies either sell liquid milk, or create value-added products like ghee or butter, or convert surplus into SMP for future resale. Northern dairies, flush with SMP, are raising liquid milk prices to cover SMP pro duction losses, while southern dairies are lowering liquid milk prices to avoid converting surplus milk into SMP. 2. The monsoon factor - Industry players noted that milk supplies could improve with the early onset of monsoon, provided the rains are not excessive. Dairy animals, are at higher risk of exposure to viruses, bacteria, and infections during monsoon, leading to reduced intake of feed. Grazing areas, too, shrink during the rains, and as the focus of farmers shifts to agriculture, animal care is neglected. While northern dairies are grappling with the need to balance production costs associated with skimmed milk powder (SMP), southern counterparts are navigating strategies to manage surplus milk without resorting to SMP production. This divergence underscores regional economic realities and strategic choices in value-added dairy products. In conclusion, investors should monitor how dairy companies navigate these regional and seasonal dynamics, as they are crucial in shaping profitability and market positioning in the coming quarters. Understanding these factors will be essential in assessing the resilience and strategic agility of companies within the dairy sector amidst evolving market conditions.

I have been working closely with dairy farmers in Pakistan for the past 1 year and companies like Nestle are treating farmers very badly, and it's heartbreaking to see it. Due to the economic crisis, selling milk is the only means for farmers to make a living and survive. Not to forget mentioning, many farmers are already in debt. Due to the increase of fuel prices, transportation has affected the farmers' overall milk production costs, which Nestle understands very well. There was a campaign among farmers recently to get a milk price increase, therefore, Nestle saw this and didn't want farmers to unite, so out of panic, they increased the milk prices. Now, they are playing a dirty game. To recoup that money, they are deliberately saying to farmers, that their milk has traced toxins, or to reduce the fat of the milk they are testing at the farm gate before collection, they are checking with an increased alkaline/acid, so they can give a reduced rate to the farmer. For example, 4.2% milk fat is deliberately being reported as 3.5% fat. With many progressive farmers, we are starting a campaign and inviting Nestle and Engro, so farmers show unity, and we can agree on paper on the procedures, rates, etc. When one farmer approaches Nestle, they don't care, as the value to them is just over $300 per day, but when 100 small to large commercial farmers approach them, then it will sure hit their bottom lines, as the negotiation for milk is an average of $17m a year - this is why unity among farmers is a must. These corporates don't care about the sentiments of a hard-working farmer, they only care about numbers. Nestle produces many bioproducts from the milk they collect. They will extract the cream and sell it for a higher price. They will then add chemicals to thicken the milk and sell it for a long life shelf. Other products include cheese, butter, yogurt, and so on. To combat this challenge and protect the dairy industry, India, launched a brand to compete against Nestle, and it was for dairy farmers. Pakistan is the world's 3rd largest milk producer, yet there is a shortage of milk in the country. I am in touch with over 10,000 farmers in Pakistan, and I would love to open a serious competitor against Nestle, so we can see the dairy industry prosper in Pakistan and protect the farmers. Furthermore, I have AI technology in mind to improve genetics, data capture, decision-making, treatments, and breeds. If anyone has any investors or contacts to help with something like this, then please introduce them, or any help and support would be appreciated. This is a great opportunity to see the industry grow and prosper, as well as to create a profitable business. Many thanks for taking the time to read this. #investor #investors #pakistan #dairyfarming #dairy #ksa #saudiarabia #dubai #familyoffice

Session 4 themed ‘Innovations in processing & testing’ during the International Dairy Federation’s First Regional Dairy Conference Asia Pacific 2024 was chaired by Shri Jayen Mehta from Amul (GCMMF) . The esteemed speakers included: -Mr Christian Tolleback, Key Account Manager, Foss International - Mr Neeraj Kumar from DeLaval India & Parmod Kandwal, Processing Director, Tetrapak -Mr HA Patel, US Dairy and Foods Consulting LLC - Dr. Amit Vyas, MD, Amul Dairy  - Mr. Manish Bandlish, MD, Motherdairy Foods & Vegetables Private Limited - Mr. Prakash Maheshwari , MD, IDMC Limited Shri Mehta, Chair of the session highlighted the innovations in processing & testing. He emphasised that the Farmer-Processor-Marketer & Consumer are the four crucial components. He also mentioned that the organised sector is relatively small & encouraged the addition of model of the scale of an Amul every year in India, requiring advanced processing technologies & investment. He stressed the significance of innovative value addition in milk and discussed about the ‘Cow to Consumer’ approach. Key perspectives from the session Online process control and automation is essential to enhance efficiency and accuracy in dairy operations Importance of tailor-made dairy ingredients like lactoferrin and immunoglobulins for higher profit margins, with significant opportunities in health-focused food and beverages Global farm consolidation trends and the evolving structure of farms in India requires advocacy for technology that meets the needs of modern farmers, including AI for data analysis and smart farming practices for reliability and efficiency. Sustainable packaging with an ‘Intelligent Factory’ concept is need of the hour. Interventions such as cattle health tracking systems, sorted sex semen and smart dairy farming practices along with EVM initiative propagated by NDDB aid helping to improve milk productivity of Amul. Further, Amul has also focused on engineering innovations for energy efficiency and automation in dairy plants. To enhance customer satisfaction, cost efficiencies, and traceability, Mother Dairy has carried out process improvements through the Innovation Centre. This has helped them to develop unique products like Mishit Doi and Custard that resonate with consumers Indigenous manufacturing of dairy equipment is important to moderate prices and increase affordability contributing to competitive pricing in the market #IDFKochiIndia2024 #InnovationInDairy

By Our Correspondent,Charikot (Dolakha), Apr. 22: Dolakha district has become self-sufficient in milk. The district has become self-reliant in milk production due to the increase in the commercial raising of cows and buffaloes recently. With good income from milk and the beginning of collection of milk from the villages, a number of local people are attracted towards cattle rearing. Due to increased milk production, the surplus milk after meeting the demand within the district, dairy products have been supplied to different districts recently. During the first nine months of the current fiscal year, more than 40,000 kg of chhurpi was supplied from Dolakha to other districts, according to Pradip Sivakoti, chief accountant of Dolakha Dairy Industry. In the fiscal year 2022/23, around 12,334 kg of chhurpi was supplied from Dolakha to Ilam and Kathmandu. Around 6,800 kg of chhurpi was supplied from Dolakha to Kathmandu last fiscal year. Now, Dolakha dairy has focused on the production of dairy products, including yogurt, paneer, chhurpi, ghee and butter and sweets. At present, 4,100 litres of milk is being collected in Dolakha Dairy Industry on a daily basis, he said. Sivakoti said that they are collecting milk from eight municipalities of Dolakha and Khimti of Ramechhap. Around 600 litres of milk is being collected daily from Khimti. He said that the farmers are getting reasonable price of milk and a single farmer earns hundreds of thousands from the sale of milk annually. Hari Phuyal, a resident of Bhimeshwor Municipality-8, has been receiving a monthly payment of Rs. 179,200 from the sale of milk. According to the industry, he has been selling around 2,560 litres of milk to the Dolakha Dairy Industry every month. The industry has been paying Rs. 60 to Rs. 75 per litre for cow milk and Rs. 75 to Rs. 100 per litre for buffalo milk. During the nine months of the current fiscal year, around 720,000 litres of milk was collected and sold by the industry. The industry has operated Dolakha Dairy and Agro Mart near Minbhawan in Kathmandu to sell delicious milk and dairy products to citizens of Dolakha living in Kathmandu Valley as well as other consumers. https://lnkd.in/dKczsu66

India aiming to achieve one-third of the global milk production by 2030 Currently, India accounts for 24% or one-fourth of total world milk production. This contributes to 4-5% of our GDP. India plan is to increase the share globally to 30% or one-third of world milk production by 2030. India is the highest milk producer and ranks first position in the world contributing 24.64% of global milk production in the year 2021-22. The milk production of India has registered 58% increase during the last nine years i.e., during the year 2014-15 and 2022-23 and increased to 230.58 Mn Tonnes in the year 2022-23. The India Dairy Market size is estimated at 26.11 billion USD in 2024, and is expected to reach 35.96 billion USD by 2029, growing at a CAGR of 6.61% during the forecast period (2024-2029). https://buff.ly/3InH9uA Dairy products consumption will increased year by year in India. This will benefit all companies in Dairy and Dairy Wellness Tech companies Many new age companies have converted Dairy as D2C Health Wellness Tech enabled companies. Few companies which are creating impact by doing online d2c Dairy food tech business in India to grow as big brand as follows 1. Country Delight 2. Desi Farms 3. Sid Farms 4. Happy Nature The Indian D2C dairy market is rapidly growing, with a market size of around Rs 1,500 crore as of 2022, according to RedSeer Consulting. The market is expected to reach Rs 30,000 crore by 2030, at a CAGR of over 40 percent. Investing in D2C Dairy Food tech companies will create huge wealth in future. Big opportunity ! Do your own DD before investing. This is for education purpose. #investing #D2C #dairy #milk #A2Gir #foodtech

Robust demand to whip up dairy industry revenue 14-16%, says Crisil New Delhi: Strong demand for value-added products and stable milk consumption will lead to a 14-16% revenue growth for India’s organised dairy industry this fiscal. With raw milk supply improving, there will be fewer price hikes and profitability will recover 20-50 basis points, said rating agency Crisil. Last fiscal, disruptions in raw milk supply had led to multiple hikes in retail milk prices, pushing up the topline 19% but impacting profitability.  “The profitability of various dairy processors has been coming down over the last couple of years and this implies dairy processors are not being able to completely pass on the cost increase that they have faced to final retail buyers. As a result, we have seen a significant hike in milk prices,” Crisil director Pushan Sharma told Mint earlier in an interview. Given healthy balance sheets, the credit profiles of organised dairies rated by Crisil Ratings will remain strong. “We believe the strong revenue growth in value-added products seen over the past few years will continue. This fiscal, the segment should grow 18-20% and consequently, the share of value-added products in overall revenue could rise to 40% from 35% four fiscals back. Given that demand from both, retail and institutional segments, remains strong, the share of VAP will continue to rise. On the other hand, liquid milk revenue will grow 8-10% this fiscal backed by steady demand,” said Mohit Makhija, senior director, Crisil Ratings. Prices of milk have surged nearly 24% in the last three years, including a 10.5% rise in the past one year and 0.3% in the past month. The uptrend has been attributed to artificial insemination of animals getting hit during COVID. This led to lower calf birth and consequently a decline in milk production. Production was also affected because farmers were unable to take care of cattle well in the pandemic when prices of commodities shot up influencing fodder cost. This left a significant impact on overall milk productivity which then manifested in shortages of ghee, butter etc. over a year and half. In FY23, milk procurement prices had risen 14% on account of several challenges on the supply side, such as significant increase in fodder cost, impact on yields due to cattle disease, and disruptions in artificial insemination schedule. Strong demand prospects have encouraged organised dairies to incur capital expenditure (capex) in both, this fiscal and the next, especially for value-added products, which will account for 60% of the spending. The overall revenue growth of 14-16% this fiscal will be driven by healthy volume growth of 9-10% and by higher realisations. “Milk price hikes will be much less intense this fiscal at around ₹2 per litre compared with a cumulative ₹5-7 per litre last fiscal, primarily because of two reasons — improvement in raw milk supply on better availa...