Indian Dairy Industry- Swot

Indian Dairy Sector- Overview & SWOT Posted byadminon Tuesday, July 31, 2012 Leave a gabfest inShare Import of key items on the increase to meet shortage Import of dairy farm items during April 2009-February 2010 surged by a massive 275. 5 per cent to Rs 284. 88 crore. In April 2008-February 2009, import of take out and other dairy products was all Rs 75. 86 crore. The dairy products imports mainly comprise skimmed milk powder and butter oil brought in by the National Dairy Development Board (NDDB)to meet shortfallin milk procural of its subsidiary, Mother Dairy, and other co-operatives.With their procurement lagging behind, liquid milk supplies have been affected in many a(prenominal) States. B L 180510 SWOT ANALYSIS OF INDIAN DAIRY INDUSTRY Strengths * Demand profile dead optimistic. * Margins Quite reasonable, even on packed liquid milk. * Flexibility of product mix Tremendous. With balancing equipment, you hindquarters keep on adding to your product line. * Availabi lity of raw material Abundant. Presently, more than 80 per cent of milk produced is flowing into the unorganized sector, which requires proper channelization. * Technical manpower Professionally-trained, technical human resource pool, built all over last 30 years. Weaknesses * Perishability Pasteurization has overcome this weakness partially. UHT gives milk long life. Surely, many new processes bequeath follow to improve milk quality and extend its shelf life. Lack of control over have a bun in the oven Theoretically, there is little control over milk yield. However, increased awareness of developments like embryo transplant, stilted insemination and properly managed animal husbandry practices, coupled with higher income to rural milk producers should automatically lead to advantage in milk yields. Logistics of procurement Woes of bad roads and inadequate transportation facility make milk procurement problematic. But with the overall economic improvement in India, these probl ems would also get solved. Problematic dissemination Yes, all is not well with distribution. But then if ice creams can be sold closely at every nook and corner, why cant we sell other dairy products as well? Moreover, it is only a matter of time before we see the emergence of a cold desktop linking the producer to the refrigerator at the consumers home Competition With so many newcomers entering this industry, competition is becoming tougher day by day. But then competition has to be faced as a ground reality. The market is large enough for many to carve out their niche. Opportunities Failure is never final, and victory never ending. Dr Kurien bears out this statement perfectly. He entered the industry when there were only threats. He met affliction head-on, and now he clearly is an example of never ending successIf dairyentrepreneursare face for opportunities in India, the following areas must be tapped * Value addition There is a phenomenal scope for innovations in prod uct development, packaging and presentation. Given below are potential areas of value addition * step should be taken to introduce value-added products like shrikhand, ice creams, paneer, khoa, flavored milk, dairy sweets, etc. This will lead to a greater presence and flexibility in the market place along with opportunities in the field of cross off building. * Addition of cultured products like yoghurt and cheese lend further strength both in terms of utilization of resources and presence in the market place. A lateral view opens up opportunities in milk proteins through casein, caseinates and other dietary proteins, further opening up exportationing opportunities. Yet some other aspect can be the addition of infant foods, geriatric foods and nutritionals. Export potential Efforts to exploit export potential are already on. Amul is exporting to Bangladesh, Sri Lanka, Nigeria, and the Middle East.Following the new GATT treaty, opportunities will increase tremendously for the export of agri-products in general and dairy products in particular. Threats Milk vendors, the un-organized sector Today milk vendors are occupying the felicitate of place in the industry. Organized dissemination of information about the harm that they are doing to producers and consumers should see a steady decline in their importance. The study of this SWOT analysis shows that the strengths and opportunities far outweigh weaknesses and threats.Strengths and opportunities are cardinal and weaknesses and threats are transitory. Any investment idea can do well only when you have deuce-ace essential ingredients entrepreneurship (the ability to take risks), innovative approach (in product lines and marketing) and values (of quality/ethics). The Indian dairy industry, following its delicensing, has been attracting a large number of entrepreneurs. Their success in dairying depends on factors such as an efficient yet economical procurement network, hygienic and cost-effective proce ssing facilities and innovativeness in the market place.