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Mother Dairy

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Traditionally, in India dairying has been a rural cottage industry.

Semicommercial dairying started with the establishment of military dairy farms and co-operative milk unions throughout the country towards the end of the nineteenth century. In earlier years, many households owned their own family cow or secured milk from a neighbor who had one. With the increase in urban population fewer households could afford to keep a cow for private use & moreover there were other problems also like the high cost of milk production, problems of sanitation etc. restricted the practice; and gradually the family cow in the city was eliminated and city cattle were all sent back to the rural areas. Gradually farmers living near the cities took advantage of their proximity to the cities & began supplying milk to the urban population; this gave rise to the fluid milk-sheds we see today in every city of our country. Prior to the 1850s most milk was necessarily produced within a short distance of the place of consumption because of lack of suitable means of transportation and refrigeration. The Indian Dairy Industry has made rapid progress since Independence. A large number of modern milk plants and product factories have since been established. These organised dairies have been successfully engaged in the routine commercial production of pasteurized bottled milk and various Western and Indian dairy products. With modern knowledge of the protection of milk during transportation, it became possible to locate dairies where land was less expensive and crops could be grown more economically. In India, the market milk technology may be considered to have commenced in 1950, with the functioning of the Central Dairy of Aarey Milk Colony, and milk product technology in 1956 with the establishment of AMUL Dairy, Anand. Indian dairy sector is still mainly an unorganised sector as barely 10% of our total milk production undergoes organised handling

Beginning in organized milk handling was made in India with the establishment of Military Dairy Farms. Handling of milk in Co-operative Milk Unions established all over the country on a small scale in the early stages. Long distance refrigerated rail-transport of milk from Anand to Bombay since 1945 Pasteurization and bottling of milk on a large scale for organized distribution was started at Aarey (1950), Calcutta (Haringhata, 1959), Delhi (1959), Worli (1961), Madras (1963) etc. Establishment of Milk Plants under the Five-Year Plans for Dairy Development all over India. These were taken up with the dual object of increasing the national level of milk consumption and ensuing better returns to the primary milk producer. Their main aim was to produce more, better and cheaper milk. Milk Production India's milk production increased from 21.2 million MT in 1968 to 88.1 million MT in 2003-04. India is the largest producer of Milk in the World (replacing USA) Per capita availability of milk presently is 231 grams per day, up from 112 grams per day in 1968-69. India's 3.8 percent annual growth of milk production surpasses the 2 per cent growth in population; the net increase in availability is around 2 per cent per year. Marketing In 2004-05, average daily cooperative milk marketing stood at 155 lakh litres, registering a growth of 4.2 percent over 148.75 lakh litres in 2003-04. Dairy Cooperatives now market milk in about 200 class cities including metros and some 550 smaller towns. During the last decade, the daily milk supply to each 1,000 urban consumers has increased from 17.5 to 52.0 litres. Innovation Bulk-vending - saving money and the environment. Milk travels as far as 2,200 kilometers to deficit areas, carried by innovative rail and road milk tankers. Ninety-five percent of dairy equipment is produced in India, saving valuable foreign exchange. Macro Impact

The annual value of India's milk production amounts to about Rs. 880 billion. Dairy cooperatives generate employment opportunities for some 12 million farm families. Dairy Farming is the single largest contributor to the economy (5% of GDP &13% of employment) Dairy industry represents a huge opportunity being the largest single FMCG Market: Urban Mkt size Rs 33000 Crores and organized sector Rs 11000 Crores representing a huge opportunity for conversion and growth. Key challenges before Indian Dairy Industry are as follows: Procurement and Ensuring efficiencies in supply Quality chain

Product differentiation and value addition

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