Page 6 - Dairy Dimension - Jan
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| Volume 1 | Issue 2 | Jan-Feb 2025                                    ARTICLE                                                                                            | Volume 1 | Issue 2 | Jan-Feb 2025


           limited access to training for women hinder its full   Projected to surpass 250 million tonnes by 2025, India's        supply chains, improved veterinary services, and the                Crossbred cow milk
           potential. Empowering women and marginalized        dairy industry can achieve its ambitious targets through           positive impacts of government programs like the    800                                      772  0.18
           smallholders is essential to unlocking the sector's   strategic interventions and equitable resource                   Rashtriya Gokul Mission. Rising urban and export    750                                          0.16
           economic and social benefits.                       distribution.                                                      demand for value-added dairy products further supports   700                                     0.14
                                                                                                                                                                                                                                   0.12
           Challenges: Persistent Barriers to Growth           The decline in growth observed during 2022 and 2023                this optimistic outlook.                            650                                          0.1
                                                                                                                                                                                      600
           The Indian dairy sector faces numerous hurdles that   can plausibly be attributed to lingering impacts of the          Dairy Dimension connected with dairy experts with   550                                          0.08
                                                                                                                                                                                                                                   0.06
           threaten its growth trajectory:                     mobility restrictions imposed during the COVID-19 waves            more than 2 decades of experience in Indian dairy   500                                        5.7% 0.04
           ·  Low Productivity: Suboptimal yields continue to   in India. These restrictions disrupted critical cattle            segment to understand their outlook on the survey,   450                                         0.02
             constrain efficiency.                             breeding phases due to the following factors:                                                                          400  2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24  0

           ·  Feed and Fodder Scarcity: Quality feed shortages   1.  Limited Veterinary Services: Restricted movement led                                                                Milk prodn (lakh MT)  Y-o-Y Growth rate (%)  Expon. (Y-o-Y Growth rate (%)
             compromise livestock health and output.              to reduced access to veterinary care, impacting                                                                                    Indigenous cow milk        499.1
                                                                  livestock health and productivity.                                                                                  500                                          0.09
           ·  Climate Vulnerabilities: Erratic weather patterns                                                                                                                       480                                          0.08
             exacerbate risks to livestock and fodder production.  2.  Feed Supply Chain Disruptions: Mobility restrictions                                                           460                                         7.0%
                                                                  caused challenges in the availability and                                                                           440                                          0.07
           ·  Disease Impact: Outbreaks like Lumpy Skin Disease   transportation of feed and fodder, adversely affecting                                                              420                                          0.06
             disrupt productivity.                                livestock nutrition.                                                                                                400                                          0.05
                                                                                                                                                                                      380
           ·  Infrastructure Deficits: Gaps in cold storage,   3.  Breeding Program Delays: Artificial insemination and                                                               360                                          0.04
             transportation, and processing facilities impede                                                                      Dr. S Rajeshwaran                                  340                                          0.03
                                                                                                                                                                                      320
             market access.                                       other breeding programs faced delays, reducing the               Dr Waran's Livestock                               300  2016-17 2017-18 2018-19 2019-20  2020-21 2021-22 2022-23 2023-24 0.02
                                                                  number of productive cattle.
           ·  Economic Instability: Fluctuating feed costs and   Projected Recovery                                                Management Consultancy                                  Milk prodn (lakh MT)  Growth rate (%)  Expon. (Growth rate (%)
             volatile global dairy prices create financial uncertainty                                                                                                                Crossbred cows, which produced 33% of the milk in
             for smallholders.                                 As the effects of COVID-19 subside and normalcy                                                                        2023-24 (up from 27.5% in 2016-17), also showed a steep
           Demand-Supply Imbalances: Navigating a Looming      returns:                                                           below are the excerpts:                             decline in the growth rate of total production, with only a
           Crisis                                              ·  Improved Veterinary Services: Resumption of                     Do you believe India's dairy sector is prepared to   5.7% increase in 2023-24. There is little hope for
           Rising demand, fuelled by population growth,          uninterrupted veterinary care and breeding                       address the projected demand-supply gap?            improvement ahead, as hybrid vigour is no longer
           urbanization, and shifting dietary preferences, threatens   programs can enhance cattle health and productivity.       No. India's dairy sector is not prepared to address the   present to drive higher productivity.
           to outpace production. Key drivers include:         ·  Supply Chain Stabilization: Restored feed and                   projected demand-supply gap as the government and its   Indian cows have shown a flat growth rate, contributing

           ·  Urbanization: Increased consumption of value-      fodder supplies will support livestock recovery.                 development and research institutions responsible for   22% of the total milk produced by bovine animals in
             added products like cheese and yogurt.            ·  Delayed Breeding Results: Breeding cycles affected              “developing” this sector have not even acknowledged the   2023-24.
                                                                                                                                  reducing growth rate in milk production. Despite data a
           ·  Health Trends: Growing preference for fortified dairy   during the pandemic are likely to yield improved            medium- to long-term downtrend in the growth rate of   What are the critical steps that would sustain the
             products and milk-based proteins.                   production outcomes in the upcoming two years.                   milk production by buffaloes and crossbred cows, the   Indian dairy sector?
           ·  Export Pressures: Rising global demand adds strain   Thus, a recovery in milk production growth can                 demand is growing due to rising per capita income, a   1.  The figures analyzed for buffaloes include the total of
             to domestic supply chains.                        reasonably be expected over the next two years                     growing middle-income population, and urbanization.    17 recognized breeds, while the figures for
           Failure to align production with demand risks price   Milk Production Growth   Growth Rate (Line)                      These factors lead to fewer people owning dairy animals   indigenous cows encompass 47 recognized breeds.
           inflation, reduced accessibility, and potential     Rates (2017-2025)          1st Wave Restrictions (Mar-May 2020)    and a net milk deficit at the individual household level.   Therefore, granular data at the individual breed level
                                                                                          2nd Wave Restrictions (Apr-Jun 2021)
           dependency on imports.                                                         Growth Rate (Bar)                       The growth rate of milk production by buffaloes in 2023-  for each state is required to better understand both
                                                                                          Projected Rate (Bar)
           Future Outlook: A Strategic Path Forward                                                                               24 was only 1.1%. This downtrend has resulted in the   the challenges and opportunities ahead.
                                                                 6
           To secure its leadership and sustain growth, the Indian   5                                                            proportion of buffalo milk to total milk production from   2.  The declining growth rate in total milk production
           dairy sector must prioritize:                         4                                                                the three types of bovines decreasing over the past 7   and productivity indicates that the large-scale AI

           ·  Boosting Productivity: Leverage advanced breeding   Growth Rate (%)                                                 years, from 51% in 2016-17 to 45% in 2023-24.          program using frozen semen, along with the use of
             techniques and enhanced animal nutrition.           3                                                                                                                       sexed semen from a few bulls specifically selected for
           ·  Infrastructure Investments: Develop robust cold    2                                                                1050              Buffalo milk          2024  0.08     crossbred animals by professionals, has been
                                                                                                                                                                                         ineffective. Milk production by crossbred cows will
             storage and processing facilities to minimize wastage.  1                                                                                                        0.07       not be the solution for increasing milk production in
           ·  Disease Management: Strengthen veterinary          0       2018     2020     2022     2024                          1000                                        0.06       the future.
                                                                                                                                                                              0.05
             services and implement preventive measures.                              Year                                        950                                         0.04    3.  Therefore, each state government needs to conduct
           ·  Value Chain Innovations: Employ technology for   (2024–2025), barring any other disruptive factors.                 900                                         0.03       a similar analysis of the growth trends in milk
                                                                                                                                                                              0.02
             traceability and quality assurance.               The projected recovery in milk production growth for               850                                       1.1% 0.01    production by its locally recognized buffalo breeds
           ·  Policy Support: Increase funding for research and   2024 and 2025 stems from the normalization of                                                               0          and indigenous cows, independently.
             promote sustainable practices.                    breeding cycles disrupted by COVID-19, stabilization of            800  2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24  -0.01  4.  Each state government should engage in discussions
                                                                                                                                      Milk prodn (lakh MT)  Y-o-Y Growth rate (%)  Linear (Y-o-Y Growth rate (%)

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