IMPORTANCE AND ROLE OF DAIRY INDUSTRY DURING QUARANTINE

Dairy:

While one kind of dairy is a farm where cows or goats are kept and milked, other dairies are industries and plants that focus only on making products from milk that farmers sell them. These items themselves can also be called Dairy products. Dairy comes from the Middle English daie, "dairy," which is rooted in the Old English dæge, "kneader of bread," or "female servant.

A Dairy is a business enterprise established for the harvesting or processing (or both) of animal milk – mostly from cows or buffaloes, but also from goats, sheep, horses, or camels – for human consumption. A dairy is typically located on a dedicated dairy farm or in a section of a multi-purpose farm (mixed farm) that is concerned with the harvesting of milk.

IMPORTANCE OF DAIRY INDUSTRY

  • Dairy farming is an important way for farmers to increase their earnings and access to more nutritious food for their families.

  • While subsistence dairy farming provides not only fresh milk and a source of basic income, value-added products, such as yogurt and cheese, provide a higher source of revenue.

  • In India, the dairy sector plays an important role in the country's socio-economic development, and constitutes an important segment of the rural economy.

  • Dairy industry provides livelihood to millions of homes in villages, ensuring supply of quality milk and milk products to people in both urban and rural areas. With a view to keeping pace with the country's increasing demand for milk and milk products, the industry has been growing rapidly.

  • As of 2018, India is the leading milk producing country in the world, accounting for ~19% of the global market share. The milk processing industry in India is expected to expand at a compound annual growth rate (CAGR) of ~14.8% between FY 2018 and FY 2023, and will reach INR 2,458.7 Bn in FY 2023.

  • Being one of the primary daily consumables in India, the increase demand for milk in the country is owed to the increasing population. As of FY 2018, ~81.1% of the Indian dairy and milk processing market was part of the unorganized sector, which produces milk in unhygienic environments. This reduces the overall quality and nutrition levels of the milk produced.

STATE-WISE SEGMENT INSIGHTS:

  1. Uttar Pradesh, Rajasthan, and Gujarat have been the major milk producing states in India.

  2. Uttar Pradesh is the largest dairy and milk-producing state because it is home to the highest buffalo population and the second-highest cattle population in the country.

  3. The majority of the rural population in this state is engaged in livestock rearing and dairying. Gujarat has numerous cooperative dairy milk unions, private dairy plants, and primary milk cooperative societies, which play crucial roles in the production of milk in the state.

VALUE-ADDED PRODUCT WISE SEGMENT INSIGHTS:

Apart from milk, the revenue of the Indian dairy and milk processing industry is generated from several value-added products such as butter, curd, paneer, ghee, whey, flavored milk, ultra-high temperature (UHT) milk, cheese, and yogurt.

During the period FY 2016 to FY 2020, the market size of butter is expected to grow by 14.5%, curd by 14.4%, paneer by 14.1%, and ghee by 14.1%, among others.

EXPORT-IMPORT:

From India, the export of dairy products has increased to countries like Bhutan, Afghanistan, Canada, Egypt, and the United Arab Emirates. India has also imported a significant amount of dairy products from countries like France, New Zealand, Ireland, France, Ukraine, and Italy.

KEY DETERRENTS TO THE GROWTH OF THE MARKET:

Despite having a significant livestock base of milch animals, India lacks in terms of availability of cold storages which results in wastage of dairy output. Thus, the lack of sufficient storage facilities and inefficient distribution are hampering the growth of the Indian dairy and milk processing industry.

Recurring droughts and floods affect the production of fodder in India. Sufficient quantities of feed and fodder are required for proper animal rearing and milk production. Lack of proper feed and fodder for milch animals, due to high usage of agricultural crop residues by producers of fiberboard, paper, and liquid fuels, affect its availability for dairy production and milk processing.

ROLES AND RESPONSIBILITY DURING QUARANTINE

DAIRY FARM WORKFORCE

While there is currently no vaccine to prevent this virus in humans, these simple steps can help minimize the spread of this and other respiratory viruses:

• Access to the dairy farm by non-essential persons should be limited.

• Wash your hands often with soap and water for at least 20 seconds if soap and water are not available, use an alcohol-based hand sanitizer.

• Wash your hands before you eat after working in the milking parlor or other areas of the dairy.