India’s Dairy Production Projected To Increase By 4.4%
India’s year 2018 fluid milk production has been forecasted to rise by 4.4 per cent that will go up to 167 million metric tons (MMT) assuming a normal monsoon, says foreign agriculture service of the US department of agriculture. It says crop year (CY) 2018 for non-fat dry milk (NFDM) production levels are also estimated at 600,000 MT based on increasing domestic demand and moderate export expectations. The projected production of combined butter and ghee (clarified butter) for the year 2018 has been pegged at 5.6 MMT, which is up 3.7 per cent from the previous year on rising domestic demand due to population growth and demographic shifts. India’s dairy production is considered a low input/low output system mostly constituted by small and marginal farmers and landless labourers owning less than five cows or water buffaloes. Indian dairy industry estimates around 70 million small-scale dairy farms.
Medium sized dairy farms from 50 to 200 cattle are increasing in some of the major dairy states Such as Punjab, Gujarat Maharashtra, and Andhra Pradesh. Over 90 per cent of India’s milk production is concentrated in 14 out of 29 total states (the top five states are Uttar Pradesh, Rajasthan, Andhra Pradesh, Gujarat, and Punjab). More than 50 percent of India’s milk production originates from water buffalo milk. The water buffaloes are preferred by some farmers due to its higher fat content milk as milk prices are determined by fat and solids-not-fat (SNF) content. In addition, the water buffaloes can also be sold for slaughter, unlike cattle, the slaughter of which is banned in most Indian states.
According to industry estimates, the commercial value chain, including cooperative and private dairies, handles around 25 per cent of total milk production. This proportion of milk is further processed and marketed as packaged fluid milk and other value-added dairy products. Dairy farmers sell around 60 percent of milk production to the commercial value chain and unorganized dairies while retaining 40 percent of household consumption. The cooperatives and private processors purchase milk from the farmers through their milk collection centres established close to the dairy farms at the village level. The Government of India (GOI) estimates demand for milk to increase to 200 MMT by the year 2021-22, requiring a 20 per cent increase in milk production.
In order to augment the milk production to fulfil rising domestic demand, GOI has implemented the National Dairy Plan (NDP) through the National Dairy Development Board (NDDB) which focuses on breed/genetic improvement, artificial insemination, fodder development and expansion of milk procurement systems at the village level. Phase one of the NDP with a total outlay of around 350million USD will be under implementation from Indian Fiscal Year (IFY) 2011-12 to 2018-19. One program target is the increase in artificial insemination usage from the current level of 25 per cent to 35 percent by the end of NDP phase one.
In order to achieve this target, India requires an increased annual production of semen doses of various breeds from the current level of 67 million doses to 100 million doses. NDP also focuses on ration balancing program under which extension advisory services are provided to the farmers for feeding balanced and nutritious feed to the dairy cows. Local advisors provide farmers feed and nutrition advice through the use of simple feed formulation software. The program aims to help farmers reduce the cost of feed, which accounts for 70 percent of the cost of milk production, by optimizing, the efficiency of available feedstuffs.
Low genetic potential, lack of nutritional feeds and inadequate veterinary services are some of the key factors affecting the productivity of animals. As per Government of India (GOI) statistics for the fiscal year 2014-15, the average milk yield of indigenous cattle, cross-bred cattle and water buffaloes is 2.5, 7.2 and 5.2 Kg per day respectively which is significantly less than 22 and 28 kg per day milk yield in U.K. and United States, respectively. The availability of feed and fodder is another major challenge to improve milk yield.
According to industry estimates, by 2020, India may face significant deficit of dry fodder, green fodder and concentrates to the extent of 11, 35 and 45 percent against estimated demand of 468, 213 and 81 million metric tons, respectively. Currently only four percent of the cropping area is under fodder cultivation. The area under fodder cultivation may not increase substantially due to competing use of agricultural land for food and other cash crops. The use of compound cattle feed is limited, 8-10 million metric tons against the total feed requirement of around 80 million metric tons.
