Page 26 - Dairy Dimension - July Aug 25
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| Volume 1 | Issue 5 | July-Agu 2025                            INDIAN NEWS                                                                                               | Volume 1 | Issue 5 | July-Agu 2025


           Karnataka Milk Federation to                        and private processors. For dairy professionals, the               productivity plateaus persist. By reducing reliance on   logistical complexities. Such a move would mark a
                                                               projection reinforces the importance of moving beyond              expensive imported semen, the programme lowers      paradigm shift for Indian cooperatives, which
           Launch Lactose-Free and                             volume-driven growth toward profitability-driven                    barriers for small and marginal farmers, democratising   traditionally export from domestic plants. By producing
                                                               strategies. Without stronger demand-side innovation,               access to superior germplasm. It also institutionalises   paneer, butter, and cheese within the U.S., Amul could
           Buffalo Milk                                         India risks repeating the cycle of overproduction and              farmer–university collaboration, combining scientific   gain tariff-free access, improve shelf-life, and align more
                                                               suppressed margins that has characterised several past             rigour with farmer networks. For dairy professionals, the   closely with consumer expectations for freshness. This
           The Karnataka Milk Federation (KMF), a dairy cooperative   years.                                                      MoU signals a future where productivity gains will   strategy mirrors the playbook of global majors like
           second in scale only to Amul, is diversifying its portfolio                                                            increasingly depend on genetic improvement, not just   Nestlé and Arla, which have localised production in
           to capture premium consumer segments. Plans are     FMD Outbreak in Ludhiana                                           feed or management interventions. It also highlights the   multiple markets. For Amul, the overseas push reflects
           underway to launch lactose-free milk under the Nandini                                                                 need for structured progeny testing and farmer      both opportunity and necessity: Indian dairy exports are
           brand — a strategic response to rising urban demand for   Dairy Complex                                                education on genetics. If executed effectively, this   constrained by high logistics costs and volatile tariff
           functional dairy products catering to health-conscious                                                                 partnership could be a model replicated across India,   regimes, while demand for ethnic dairy products like
           and lactose-intolerant consumers. Southern India has   The recent outbreak of foot-and-mouth disease (FMD) in          blending cooperative farmer strength with institutional   paneer is rising in the U.S. diaspora. For dairy
           already seen early movers such as Milky Mist        Ludhiana's Haibowal dairy complex has sounded an                   science for long-term productivity sustainability.  professionals, the development signals the beginning of
           successfully market lactose-free offerings, highlighting   alarm across Punjab's dairy community. As one of India's                                                         a more outward-looking phase for Indian cooperatives. It
           the opportunity size. Simultaneously, KMF is scaling up   largest urban dairy hubs, the complex houses thousands       U.S. Tariffs Create                                  raises strategic questions: How will Amul balance
           buffalo milk procurement, particularly in North      of animals in dense proximity — making biosecurity                                                                     farmer-centric domestic commitments with global
           Karnataka, where demand is surging thanks to buffalo   lapses particularly costly. Farmers reported panic as            Uncertainty for Indian Dairy                        expansion? Will other cooperatives follow suit? If
           milk's higher fat content, its preference in traditional   cattle exhibited symptoms, with concerns about                                                                  successful, this could reshape India's dairy export
           sweets, and its premium positioning for paneer      productivity losses, animal health, and income shocks.             Exports                                             narrative from a commodity-driven story to a globalised
           production. This dual strategy reflects how cooperatives   Municipal authorities faced criticism for weak waste         The U.S. has imposed new tariff hikes on a range of   consumer-brand play.
           are evolving: beyond simply handling procurement    disposal and inadequate disease management. The                    Indian exports, creating ripple effects for India's dairy
           volumes, they are beginning to design consumer-     outbreak is a stark reminder that even as Punjab invests           sector. While India exports relatively modest volumes of   Jaipur Dairy Opens  15-Crore
           oriented portfolios that align with lifestyle trends and   in genetics and productivity, the foundations of disease    dairy to the U.S., value-added categories such as paneer,
           nutritional preferences. For dairy professionals, the   surveillance and veterinary infrastructure remain fragile.     ghee, and milk protein ingredients are particularly   Sweets Plant with SCADA
           move underscores an emerging playbook where         For cooperatives and policymakers, FMD is not only a               vulnerable. These tariffs could dampen competitiveness,
           cooperatives must safeguard farmer payouts while    farmer issue — it directly threatens milk supply                   especially against established exporters like New   Automation
           capturing new consumer niches, using innovation and   continuity, processing plant utilisation, and consumer           Zealand and the EU, who already enjoy preferential   Jaipur Dairy, under the Rajasthan Cooperative Dairy
           product differentiation as competitive levers. The   confidence in milk safety. For dairy professionals, this            access under trade agreements. For Indian cooperatives   Federation (RCDF), has commissioned a new  15-crore
           success of KMF's initiative could set a benchmark for   incident highlights the urgent need to integrate               and private processors with export ambitions, the   sweets production facility, equipped with Supervisory
           other cooperatives balancing commodity oversupply   systematic vaccination drives with modern biosecurity              development highlights the fragility of relying on tariff-  Control and Data Acquisition (SCADA) automation. The
           (like SMP) with higher-value downstream products.   protocols: digital livestock traceability, quarantine
                                                               measures, and waste management systems. The                        dependent markets. Analysts note that Indian exporters   facility will produce Saras-branded sweets, marking the
           India Ratings Projects 5%                           economic cost of such outbreaks — lower yields,                    may need to redirect focus toward the Middle East and   cooperative's entry into the branded Indian
                                                                                                                                                                                      confectionery space. This expansion is not merely
                                                                                                                                  Asia, where demand for Indian dairy fats remains strong
           Growth in Milk Output                               treatment expenses, and reduced market access — far                and tariff barriers are lower. For dairy professionals, the   diversification; it's a financial necessity in today's
                                                               outweighs the preventive investment. Punjab's FMD
                                                               flare-up is therefore a timely warning to strengthen the            episode illustrates a larger lesson: global trade is shaped   cooperative landscape. With India's milk surplus leading
           India Ratings and Research (Ind-Ra) forecasts India's milk   weakest links in India's dairy chain.                     as much by geopolitics as by market fundamentals.   to excess skimmed milk powder (SMP), many
           production to grow by around 5% in FY25, reinforcing                                                                   Exporters will need to adopt more sophisticated     cooperatives are struggling to convert low-margin
           the country's position as the world's largest milk   Punjab Pushes Genetics with                                       strategies, including exploring overseas manufacturing   commodities into profitable formats. By channeling
           producer. The report highlights resilience among                                                                       bases, investing in tariff-resilient value chains, and   surplus into sweets, Jaipur Dairy creates a high-demand
           smallholder farmers, favourable policy interventions,   GADVASU–PDFA MoU                                               lobbying for favourable trade deals. The tariff hikes,   outlet that aligns with cultural consumption patterns,
           and ongoing investments in chilling and processing                                                                     although not catastrophic for volumes, highlight the   particularly around festivals. SCADA-based automation
           infrastructure. Per capita milk availability is expected to   Punjab, India's high-yield milk state, is turning its    necessity of long-term trade diversification and     ensures hygienic, standardised production, addressing
           rise by 4%, supported by stable population growth and   attention to genetic improvement to sustain productivity       resilience in India's export strategy.              consumer concerns about quality and safety in mithai
           consistent productivity improvements. The analysis   growth. Guru Angad Dev Veterinary and Animal Sciences                                                                 markets often dominated by unorganised players. RCDF,
           underlines dairy's central role in rural livelihoods,   University (GADVASU) has partnered with the                    Amul Explores Overseas                              one of India's largest SMP producers, benefits doubly:
           particularly for women and marginal farmers, where   Progressive Dairy Farmers' Association (PDFA) to                                                                      reducing oversupply pressure while elevating brand
           milk sales often serve as supplementary income. For the   establish a breeding programme focused on Holstein           Production to Circumvent                            Saras into a trusted name for premium, hygienic sweets.
           industry, rising supply creates both opportunities and   Friesian and Jersey calves from elite herds. Selected male    Tariffs                                              For professionals, this represents a textbook case of
           challenges. While demand for fresh liquid milk remains   calves will contribute to a structured semen bank,                                                                downstream integration and value-added product
           steady, the bigger question is how to absorb surpluses   providing affordable, high-quality genetics to farmers         Amul, India's largest dairy brand, is reportedly exploring   innovation. It also reinforces how Indian cooperatives
           of skimmed milk powder (SMP) and fats. This creates an   across the state. This initiative is crucial: while Punjab    setting up manufacturing facilities overseas, particularly   are shifting from being milk processors to branded food
           urgent need for value-added products, diversified    boasts among the highest per-animal milk yields,                   in the U.S., to mitigate the impact of tariff barriers and   companies, using technology and product innovation to
           exports, and better integration between cooperatives   concerns about rising herd health costs, inbreeding, and                                                            build resilience in volatile milk markets.


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