January 2, 2014

India's Amul to manufacture dairy products in US


India's Gujarat Cooperative Milk Marketing Federation (GCMMF), which owns and markets Amul milk products, will start manufacturing ghee (butter oil), paneer (cottage cheese) and shrikhand (a sweet dish made of strained yogurt) from a plant near New York from February 2014.


"Initially, three products will be manufactured at the facility from February. There are around three million Indian and many more Asian consumers whom we will target in the initial phase," said R. S. Sodhi, Managing Director of the Federation. The dairy major has joined hands with a New Jersey-based non-resident Indian (NRI) to use his plant.


Kaira (Anand) District Cooperative Milk Producers Union Ltd (Amul Dairy) entered into an agreement with GCMMF and the NRI earlier this year.


Maintaining its core cooperative structure, GCMMF will source milk from cooperative dairies in the US.


"The procurement price to be given to the farmers will be decided according to the prevailing norms in that market," Sodhi said, adding that GCMMF also plans to launch liquid milk in due course.


GCMMF exports every year around INR100 crore (US$16.2 million) worth of dairy products including to the US, West Asia, and Europe. Around INR35 crore (US$5.7 million) worth of milk products are exported to the US alone.


GCMMF is eyeing a turnover of around INR18,000 crore (US$2.9 billion) for 2013-14, 30% more than last year.

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