April 19, 2005

India has potential to be global milk power

India can dominate global dairy production if only it eliminates inefficient herding and rearing practices and adopt modern technology.

Government statistics show dairy exports were worth US$35 million in 2003-04. In the production of cow's milk, India ranks second after the US, with a global share of 7 percent, and is the world leader in the production of butter and ghee. In contrast, its production of skimmed, butter, condensed and dry milk, as well as cheese is insignificant.

A study by the Exim Bank revealed that although the Indian dairy sector has been deregulated and has attracted global players, few steps have been taken to promote value-added services, and to improve packaging and presentation of products. The study also showed that generic feeding, operational inefficiency, wastage and loss in fat and protein during milk processing have caused the low levels of productivity.

On the whole, the dairy sector is still regarded as a village industry, with 70 percent of the livestock owned by small and marginal farmers. The average Indian herd consists of just two animals, compared with 88 in the US and over 200 in New Zealand.