Page 27 - Dairy Dimension - July Aug 25

| 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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