Launching of The Dairy Times 1 Dairy Times, A Bi-monthly Newspaper from Advance Info Media & Events

Times Group Publication of Advance Info Media & Evnets A Bi-Monthly Newspaper Devoted to Milk, Milk Products & Allied Sectors dairy Tel. : +91 80 3090 2200 www.agronfoodprocessing.com Vol. 01, Issue 01, February -March,2016 100/- E-mail : [email protected] www.sonarome.com Over 2500 delegates to meet at 44th Dairy Industry A Cream Run for conference 2016: Dr. Parekh dairy industry for nextAN ISO 220003 Years: CERTIFIED COMPANY Crisil 'Welcome Delegates to the 44 th DIC' ndia’s organised dairy sector will see a ‘Cream airy Times to discuss at length on these and contemporary Industries. Oral presentations, products display run’ through 2018 with special focus on value- Newspaper has burning issues. and live demonstration of dairy equipments will Iadded products. The sector will see capacity Dan objective to The event based on the theme 'Make In India' , is also feature in this Meet. NDRI technologies augmentation to around 1,050 lakh litres per day establish a platform for expected to attract around 2500-3000 participants will be discussed under the broad themes of (LLPD) with an overall capex infusion of around Professional, Scientists, representing academia, researchers, dairy Adulteration Detection, Dairy Pathogen Detection, 15,000 crore in next three years, ratings agency Farmers and Equipment professionals, policy makers, milk producers and Dairy Processing & Dairy Production etc. Crisil highlighted in its latest report on organised Manufacturers in the farmers from across the country and abroad. dairy players. field of Dairy and Allied Interested Industry Participants are welcome Agro Food Business The conference would also provide an excellent to present and semonstrate their technologies/ Increased disposable income and quality Dr. J.V. Parekh products/equipments. The industry participants consciousness among the consumers along with to provide opportunities for the dissemination will also share their experiences / observations greater preference for branded milk and milk of knowledge and ideas in Research, Planning, and future plan during this session. Inputs received products, would drive the growth for organised Production, Processing and Marketing, which from Industry will be useful for developing new dairy players, who would see faster growth in aims at fulfilling the dream of our Hon’ble Prime technologies / methods and refinement of the next three years as against 22 per cent seen in last Minister of India to promote “Make in India” existing technologies / methods. five years. Commenting on the report, Anuj Sethi, concept in Dairy Industry. Indian Dairy Industry Director, Crisil Ratings, said, “Nearly a third of is poised to become globally competitive and One of the main attractions of the 44th Dairy the overall capex is expected to be undertaken become a giant to capture the International Dairy Industry Conference is the Job Fair, which will be by the largest domestic dairy player, Gujarat Co- Market by improving the quality of milk and milk organised on February 18 and 19, 2016. operative Milk Marketing Federation (which sells products. platform for interaction and sharing of experiences under the ‘Amul’ brand), through its member co- on various related themes. The interactions/ Through this job fair prospective employers will operatives.” However, to achieve this mission, low animal discussions will lead to a solid programme that have an opportunity to recruit fresh students productivity and poor quality of milk at the farm India can launch to make Indian Dairy Industry from different streams of Dairying and Animal “These expansions will be strategically planned level are the major concerns requiring immediate globally competitive in the emerging market. On & Veterinary Sciences, spread across production, to ensure there is geographical diversification that attention. Through value addition and product the sideline of the 44th Dairy Industry Conference, processing and management streams. strengthens milk procurement. The revenue share diversification by adopting advanced scientific “Technology Sharing Business Meet” is being They will get a platform to meet the students, from the organised segment could rise to 25 per intervention and modern technological processing organised. interact with them and select the best among them cent by 2018 from 19 per cent in 2015,” the report techniques we may perfect the indigenous for their future recruitment plans. For the students, named ‘Cream Run’ stated. technologies to cater to the needs of the local During this event, technologies developed at it will be an opportunity to showcase their The sector is increasingly becoming attractive for population and improve export prospects. Hence, NDRI would be presented, demonstrated and competence and strengths before the employers private equity players, as it is ranked among the the conference would provide a unique platform commercialised to interested entrepreneurs & for getting a good job of their choice. (contd...on pg.13) (contd...on pg.2)

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(contd...from pg.1) From the Editor's Desk 44th DIC-CONFERENCE HIGHLIGHTS am happy to announce that in association with Advance Info Media & Day-to-Day Plan Events, we are launching our first issue of ‘Dairy Times’, a Bi-monthly Inewspaper exclusively for the milk and milk products Industry in India. We hope that our newspaper will serve you at its best capacity. We hope to satisfy the readers with national, international news, excerpts from the journals, interviews of expert and success stories of leading businessmen of dairy industry through this newspaper. Not only the international market, but also the Indian market has a lot of opportunities. According to the Annual Report 2014-15 of Department of Animal Husbandry, Dairying & Fisheries Ministry of Agriculture, Government of India, the annual growth of milk production in India has increased 3.54 per cent and 3.97 per cent during 2012-13 and 2013-14 respectively. Some of the recent figures on the dairy and dairy products have encouraged us to think for a devoted newspaper on ‘Dairy'. Indian dairy industry produces largest amount of milk in the world, but the processing of dairy products has not been near to the percentage of the developed world. India accounts for 44th DIC Technical Sessions around 17 per cent of the global milk production. It is also one of the largest consumers of dairy products. during Conference India’s milk and milk products industry is growing at a rate of 16 per cent and 25 per cent respectively. It needs a media which can update industry regularly Session 1: Shifting from scattered to organized vaccines and meeting ‘one health’ standards. on the latest researches, technologies, food safety, processing & packaging, animal farms: Sustainability issues. Session 8: Globalizing ‘Make-in-India’ Dairy supply-chain management and preservation. Session 2: Convenience & Specialty Dairy Foods: Foods & Equipments: Issues & Challenges The Indian dairy industry significantly offers good opportunities for both Catering the changing demographic demands. Session 9: Supply Chain Management: Traceability domestic and foreign conglomerates/investors for entry and expansion. Session 3: Balanced feeding of animals for issues from farm to fork economic milk production. Session 10: Group Dynamics of Milk Co- Foreign companies like Danone and Fonterra have set their foot in the Indian Session 4: Carbon Neutral & Zero Waste operatives, Producer Companies, Neo- dairy industry, while ITC has plans to foray into this segment in a couple of Technologies for Indian dairy industry. Cooperatives: Sustainability & Profitability Issues. months. Availability of Liquid Milk, Yoghurt, Butter, Ghee, Paneer, Cheese Session 5: Selecting animals for genes: Revisiting Session 11: World trade volatility: Harmonizing and Cream has increased on the retail shelves. the breeding policy towards genomic selection. norms & practices. As compared to India’s big food processing industry, the size of the milk Session 6: Milk Quality Assurance: Meeting Session 12: HRD plans to make Indian Animal & Consumer Demands by 2030. Dairy Education Future Ready. industry is bigger and more organised. We already have more than 20 Session 7: Improving udder health status, modern Special Session: Skill Development in Dairing. regular publications for food processing industry, but have only one national magazine from IDA and a few regional media for dairy industry. 44th DIC Farmers' Sessions Editor-in-Chief Dr J V Parekh Email: [email protected] during Conference Day 1 (18-Feb. 2016). Theme area: Breeding, health and animal crop relationship. Feeding and Health management of animals. Day 3 (20 Feb. 2016). Theme area: Small dairy t's indeed a great privilege to work with Dr J V Parekh, who is experienced Day 2 (19 Feb. 2016). Theme area: Crop production units, Milk processing, Milk pricing in the modern-dairy industry for the last five decades. I am grateful for his production, Organic food, fodder production, soil system and other policy matter issues. Isupport. Considering his vast experience and contacts in the dairy stream, I am glad Business to Business that we are launching 'Dairy Times': A Bi-monthly newspaper covering almost all the aspects of the Indian dairy Meeting - February 19, 2016 industry.In this context, we assume that ‘Dairy Times’ will be the first bi- n the sidelines of the 44th Dairy Industry technologies / methods and refinement of the monthly newspaper for the entire Indian-subcontinent. Conference, “Technology Sharing existing technologies / methods. Indian dairy industry is growing at a faster pace and there is a growing demand OBusiness Meet” is being organized. During for milk and milk-products in the country. It is estimated that the milk segment this event, technologies developed at NDRI would Job Fair – February 18 & 19, 2016 would record 15 per cent growth in 2016, while, milk-products would witness be presented, demonstrate and commercialized One of the main attractions of the 44th Dairy 25 per cent growth year-on-year, until 2020. We are encouraged by the figures to interested entrepreneurs /Industries. Oral Industry Conference is the Job Fair, which will be presentations, products display and live organized on February 18 and 19, 2016. and sensed the urgency to launch this newspaper, contemplating our 12 years demonstration of dairy equipment will also feature of hardcore journalism in food processing industry. in this Meet. NDRI technologies will be discussed Through this job fair prospective employers will Not only this, India also has more than 20 full-fledged dairy institutes and a under the broad themes of Adulteration Detection, have an opportunity to recruit fresh students number of national and regional dairy co-operatives.However, there is a lack Dairy Pathogen Detection, Dairy Processing & from different streams of Dairying and Animal of knowledge with regard to use of latest technologies and the trends in the Dairy Production etc. & Veterinary Sciences, spread across production, processing and management streams. They will domain. Interested Industry Participants are welcome get a platform to meet the students, interact with Globally, a tremendous amount of work has been got through in the dairy to present and semonstrate their technologies/ them and select the best among them for their sector. Much has to be disseminated to our industry, though the growth of products/equipments. The industry participants future recruitment plans. For the students, it will processing milk and milk-products has reached in good numbers in the dairy will also share their experiences / observations be an opportunity to showcase their competence sector. I see that our 'Dairy Times' would now bridge the gap of information and future plan during this session. Inputs received and strengths before the employers for getting a from Industry will be useful for developing new good job of their choice. and it would provide a significant leverage to its people to express their thoughts. I hope 'Dairy Times' shall continue its endeavour, while holding up the values and quality of the dairy industry. By maintaining the respect and interest of International Trade fair its readers, the newspaper aspires ultimately to inform their opinion of the International Trade fair concurrent to 44th All the stake holders of the dairy industry are sector and to strengthen their commitment to its welfare. DIC scheduled during February 18-20, 2016 at invited to be a part of this dedicated dairy industry Last but not the least, I would like to express my considerable appreciation to National Dairy Research Institute (NDRI), Karnal, event. all authors of the articles and advertisers in this newspaper. These contributions Haryana, organized by Koelnmesse YA Tradefair have required a generous contribution of time and effort. along with Indian Dairy Association (North Zone) A unique feature of this Conference would be It is this willingness to make the effort to share knowledge, concerns and is receiving a very good response. organization of Dr. V. Kurien Memorial Lecture.

special insights with the dairy community at large that has made our first The International Trade fair concurrent to 44th International Trade fair concurrent to 44th DIC at edition possible. DIC will have over 100 companies displaying National Dairy Research Institute (NDRI), Karnal, Firoz H Naqvi their products and services offered to the dairy Haryana is organised by Koelnmesse YA Tradefair Group Editor industry and will be spread over an exhibition area along with Indian Dairy Association of approximately 10,000 sq.mt. (North Zone) .

Dairy Times 3 Vol. 1, Issue 01 -February-March - 2016 Messages Dairy Times, A Bi-monthly Newspaper from Advance Info Media & Events

Times Group Publication of Advance Info Media & Evnets A Bi-Monthlyd Newspapera Devoted to Milk, Milki Products &r Allied Sectorsy www.agronfoodprocessing.com Vol. 01, Issue 01, February -March,2016 100/- 'Industry Stalwarts' Speak

Advisory Board Members -'Dairy Times' 'Dairy Times' is expected to serve as a strong vehicle for dissemination of new Mr. R. P. Banerjee, Chairman, SSP Pvt. Ltd., Faridabad. knowledge among all the stake holders viz. milk producers, professionals, Mr. B. M. Vyas, Former Managing Director, Amul, Anand planners, scientists, academia and dairy industry. It must help the dairymen of Mr. H R Dave, Deputy Managing Director, NABARD, Mumbai. India in achieving their aspirations, missions and opportunities in the complex and Dr. G.S. Rajorhia, Former Principal Scientist, NDRI, Karnal. competitive environment. Dr. Harsev Singh, Chief Executive Officer, Reliance Dairy Foods Limited, New Delhi. The newspaper may also focus on the issues related with sustainability, socio- Ms. Racheline Levi, Team expert, ADEPTA, France. economic status and well-being of rural producers, processors Dr. Mukund Naware, Consultant, Mumbai. Mr. Devendrabhai Shah, Chairman, Parag Milk Foods Pvt. Ltd.Mumbai and consumers in entire dairy value chain. It should motivate Dr. B. N. Mathur, Former Director, NDRI, Karnal. the sector to become increasingly responsible for production Mr. Vivek Nirmal, Managing Director, Prabhat Dairy Ltd., Mumbai. and distribution of safe and healthy products. The Journal may Dr. K R Rao, Former CGM, NABARD, Hyderabad. undertake the promotion of entrepreneurship development among Mr. Subhash Vaidya, CEO Dairy tech Consultancy Services, Mumbai unemployed rural youths for boosting growth of dairying in not so Dr. Suresh B Gokhale, Director (Research), BAIF Uruli Kanchan, Pune well identified locations. Dr. J. B. Prajapati, Principal & Dean, SMC College of Dairy Science, G.S. RAJORHIA, Former Principal Scientist, NDRI, Karnal Anand Agricultural University, Anand. Mr. V. K. Ghoda, Sr. Consultant, Perfect Solutions, Vadodara. Mr. Dileep Dravid, Managing Director, Agro Dairy & Food-Consultancy Services, Anand I am delighted to know that Dr. J V Parekh and Mr. Firoz H Naqvi of Advance Mr. Vijay Jailkhani, Team Leader, Schreiber Dynamix Dairies Pvt. Ltd., Baramati. Infomedia are planning to launch 'Dairy Times' Bi-monthly newspaper exclusively Dr. Satish Kulkarni, Consultant, Bangalore. for the dairy industry in India. It is indeed a noble idea for communication within Mr. Nitin Jain, Aurum Equity Partners, Gudgaon. and outside the dairy fraternity. In fact, the industry scenario is changing too fast to Dr. Ashok Patel, Former Principal Scientist & Head, Dairy Technology, NDRI, Karnal. be reported on bi-monthly basis, but it is still a good to start with proposed schedule. It will definitely provide a platform to those who have been looking to voice the It gives me immense pleasure to know about the launching of Bi-monthly news growth of this industry. Surely, it will also help allied sectors of the dairy industry to paper of Dairy Times. This Bi-monthly news paper will help allied sectors of the communicate about their latest developments and its potential for growth. Dairy industry to communicate about their latest development and On this occasion, I would like to convey my heartfelt congratulations to you and your potential growth. team to take up this noble cause in the interest of Indian dairy I take this opportunity to convey my greetings and congratulations industry which nobody has thought so far. It is going to be a rough to all members of this Bi-monthly news paper Dairy-Times for ride at first, but I am sure, the rewards will be more than adequate. their activities and endeavor. My best wishes also for Dairy Times Many dream, few dare and very few actually succeed. You have to be a grand success and useful to one and all. always been the one who had lot of determination and focus. Dr. Harsev Singh, Chief Executive Officer, Reliance Retail Limited R P Banerjee Reliance Dairy Foods, New Delhi. Chairman, SSP Pvt. Ltd, Faridabad

It is a matter of great pleasure that you have decided to publish a Bi-monthly dairy news paper It is with enthusiasm that I join the board of advisory of this new magazine. The decision of publishing Bi-monthly dairy news paper is very apt and timely. Dairy industry We will conduct a process of reflection, discussion and research to give each of you of India has made unparalleled progress in the last few decades. But the opportunity to better understand the technologies and innovations in the field even higher growth in production, processing, marketing, retailing and of dairy industry, to facilitate exchanges and connections between companies from consumption is sure to take place in the coming decades. different countries. All involved in availing this enormous opportunity will need a variety of information and I am sure your Bi-monthly will fill the gap. We will try to bring the magazine on top of the quality to which BM Vyas you are entitled. Between a newspaper and its readers is a mutual Ex - MD Amul, Anand attraction, we are at the beginning of the adventure and need your support and encouragement. You'll also be there to react and make the dialogue alive. Rcheline Levi, Team expert, ADEPTA, India has a unique milk production and marketing system, as compared to the west, France where large commercial units are preferred, most of the milk is produced by small, marginal farmers and landless labourers in the country. A study conducted by FAO in the country indicates that small milk producers are efficient and profitable provided With increasing incomes and changes in life style of the people, the Indian dairy there is an assured market for the output irrespective of the quantum of surplus industry has to meet the growing demand for milk and high expectations of its milk and availability of other inputs and services. In India, about 85% of the total quality. This is possible not only when the happenings in the dairy world are reported land holdings comprise small and marginal farmers. Dairying in the form of 1-2 and highlighted, but also when the shortcomings in our approaches are brought to the animals is integral part of these farm holdings mainly for nutrition and manure. notice of the dairymen and other stake holders of the industry through journalism. Small herd size is mainly due to non-availability of labour, inadequate availability This will help the systems and sub-systems of the value-chain to check-up and gear- of feed and fodder and lack of profitable marketing avenues. Many of these small up. In this context, the dairy magazines have a definite role to play and fill in the gaps producers can have higher income generation through this activity in knowledge and awareness and take the dairy industry forward provided basic infrastructure related to milk production and milk on the path of success. I welcome this publication to fulfill this marketing is available for their surplus. There is a need to give timely need and extend my best wishes in this venture. impetus on improvements of farm systems of the enterprising Mukund Naware dairy producers at existing herd size through breed improvement Dairy Adviser, Mumbai and better scientific animal management practices. H R Dave, Dy . Managing Director, NABARD, Mumbai

Dairy Times 4 Vol. 1, Issue 01 -February-March - 2016 Messages

In anticipation of the rapid growth in the demand for milk is set to touch 200 mn tonnes The initiative of Advance Infomedia and Dr. J V Parekh is laudable. by 2022 from 132 mn tonnes in 2013, a number of entrepreneurs are vying to enter There is a growing need of newspaper, magazines and journals dedicated to the the dairy industry. Companies such as Coke, ITC and PepsiCo have plans to enter dairy sector of India with its global presence of 17 per cent milk production and the dairy segment. The sector has also seen major PE investments. There is an increasing dairy sector is poised to become second largest economy in terms of GDP in the next trend towards the value-added dairy products .Share of value added products in milk three decades. Dairy sector contributing 26 per cent to India’s GDP is the matter of and milk derivatives segment is set to grow at 25% Y-o-Y till 2019-20. Value-added pride as well as a challenge. The last four decades have witnessed large changes in dairy products constitute around 20% of total dairy market. In every facet of integrated dairy industry. The Share of organised sector is expected to such a scenario the entry of a Dairy News periodical covering grow at the rate of 5 per cent annually, which a fairly good share is considering the latest news and information covering new innovations and ideas milk production at the rate of 7.74 per cent in 2012-13. I am sure the Bi-monthly on the dairy industry will serve as a communicator to the dairy newspaper will offer an ideal forum for all those engaged directly and indirectly in industry audience. the pursuit of promoting dairy sector which touches the lives of 65 per cent of India’s B N Mathur, population. The phenomenal progress of India’s dairy sector has opened new vistas Former Director, NDRI, Karnal. from producer to consumer and the intervention of multi-disciplinary professionals can bring about radical transformation of this sector in the larger interest of our underprivileged rural population. I wish that Dairy Times will cover production, procurement, processing and marketing I take this opportunity to invite the expertise of multi- of milk and milk products along with new technologies, innovations and products disciplinary professionals, the dairy industry and the academia developed for the benefit of all the stake holders involved in the to actively participate in making this venture a legendary step. sector. It may help in bridging the gap between the entrepreneurs, Dileep M. Dravid, Managing Director, Industry and equipment manufacturers. Agro Dairy & Food-Consultancy Services, Anand I extend my warm greetings and best wishes for all success on the eve of launching the Bi-monthly news paper 'Dairy Times' for the I am happy to note that you are coming up with this new media of benefit of all the stake holders in the sector. communication. At present there is no window to communicate Dr K R Rao with FSSAI for redressal of queries. Let us hope that this Former CGM, NABARD,Hyderabad bimonthly newspaper will be a medium to communicate the industry views on various aspects. Vijay Jailkhani , The Dairy Sector in India has shown tremendous growth over the last few decades and Team Leader, QA, Schreiber Dynamix Dairies, Pvt. Ltd, Baramati time has come now that we should enter export market of dairy products by adoption of new technologies, educating farmers, milk processors, and handlers in the right directions. It is heartening to note that you are launching 'DairyTimes', newsletter in the month I am glad that Dr J.V. Parekh and Mr. Firoz Naqvi are bringing of Feb 2016. There is a need for informal and formal exchange of information 'Dairy Times', a Bi-monthly news Paper which I hope will help to between all the stake holders of dairying as I see a tremendous all concerned in the dairy industry, to achieve the goals. potential for growth in this sector in India. I am sure the launch Subhash Vaidya of your newsletter will add another tool for dissemination of CEO Dairytech Consultancy Services, Mumbai knowledge and for sharing information. On this occasion, I take this opportunity to wish you all the success in your endeavours. I am glad to know that 'Dairy Times' a Bi-monthly news paper is being launched Satish Kulkarni with joint efforts of Mr. Firoz H Naqvi and Dr J V Parekh. Considering Consultant, Bengaluru fast expansion of dairy trade and industry and its important contribution in country’s commerce necessitates wide visibility. Availability of newspapers I greatly appreciate receiving your kind invitation to be on the Advisory Panel of for augmenting this segment will provide a platform to those the Bi-monthly Dairy Times. It is indeed heartening to earn about the much-needed who have been looking to voice the growth of this industry. Dairy periodical conceived by your team. The rapidly growing Dairy Industry of I extend my greetings and good wishes for the 'First Edition' the country will be greatly benefitted from the valuable information about various of this newspaper for the month of Feb/Mar 2016. facets of the industry including state of the industry and the new developments on Dr. Suresh B Gokhale the research fronts. The magazine is expected to further promote a Director Research, BAIF Uruli Kanchan Pune healthy growth particularly when the international dairy scenario in the context of Indian Dairying is fast changing and poses a stiff challenge to the country’s dairy industry. I will be privileged to be on the Advisory Panel of the periodical and it will be my pleasure I am happy to learn that Mr Firoz Naqvi of Advance Infomedia and Dr J V Parekh, to make meaningful contributions to this publication. a renowned dairy consultant of India are launching Dairy Times, a Bi-monthly Ashok A. Patel newspaper for the dairy industry in India. Valley Park-St. Louis, MO 63088 USA Dairy industry is prospering in India. Only 20-25% of milk produced in India is processed by the organised sector and that is a challenge for all of us to increase it sizably. This gives lot of opportunities to explore better technologies, packaging materials, logistics and so on. I wish that this publication will be able to highlight all the dimensions related to Indian dairy industry and it can become an instrument to promote it. Let science and technology related to milk and milk products help us to live happy and healthy on this earth. Jashbhai B. Prajapati Principal & Dean, SMC College of Dairy Science Coordinator, SASNET– Fermented Foods Chairman, Vidya Dairy, Anand Vice Chairman, IDA, Gujarat State Chapter Anand Agricultural University, Anand

The white revolution in India has made India not only self-reliant, but net exporter. Since 1996, the Country has been the largest milk producer in the world surpassing the United States of America. During the process of White Revolution, in the beginning, 90% of the Plant & Machinery were sourced from developed countries and merely 10% hardware were manufactured within the country. The untiring efforts of the Indian veterinarians, Dairy Technologists and engineering fraternity has changed the scenario, where India has become inspiration for many other developing nations of the world. An attempt to start a magazine namely 'Dairy Times news paper' by the veterans Dr. J. V. Parekh and Mr. Firoz H. Naqvi is a step in right direction and a matter of admiration for all of us. V K Ghoda, Sr. Consultant, Perfect Solutions, Vadodara

Dairy Times 5 Vol. 1, Issue 01 -February-March - 2016

Dairy Times 6 Vol. 1, Issue 01 -February-March - 2016 Exclusive Interview ''Our technology & quality is at par and better than those accessed in developed countries": R P Banerjee

Tell us about SSP is an ISO 9001:2008 certified company & in different countries for collaborations and preservation. It is a protein naturally present in your journey ASME ‘U’ stamp holder. Since 1977, based on the technology-transfer. milk. One of its unique biological functions is in the dairy core competency and knowledge on evaporation What needs to be done to become a surplus antibacterial/that—would work effectively in the industry. and Drying Technology, SSP provides customised milk producing country? presence of hydrogen peroxide and thiocyanate. turnkey projects & solutions to the industries, Despite being, the world’s largest milk producer, The LPS method is fully effective, cheap, safe I have been pertaining to food processing sector, dairy India’s productivity per animal is very low, at 987 and applicable at milk collection points and can associated with processing sector, fruit & vegetable processing kg per lactation, compared to the global average prolong the shelf-life of unrefrigerated milk up to dairy industry sector, chemical industries and effluent treatment of 2038 kg per lactation. Indian breeds of cows 3-4 hours more than that of untreated milk. LPS for the last 60 plant for various industries. are considered inferior in terms of productivity. system - has great potential as it is recommended years. I was also Indigenous cattle and buffalo make up 45 per cent by the IDF Code of Practice. connected to We have been providing need-based, customised, of the country’s total milk population, in contrast R P Banerjee highly-energy efficient and cost-effective turnkey to the cross-bred cows at 10 per cent. Main Is dairy industry mature enough for ‘Private Operation Flood programme that is responsible projects , for the last 39 years. We try to meet our factor conditions for dairying entail the quality Equity Funds’ Investments? for India to become the highest milk producing customers industrial needs. In this regard, we have of animals, human resources and technical skills, Private equity funds are meant for only country. I was also closely associated with Dr. supplied more than 350 projects that include more land availability, capital, credit, infrastructure and established players in the industry but, valuation Verghese Kurien, who had developed indigenous than 600 Evaporators & 400 Dryers all over the other inputs relevant to the value chain. is a problematic area. So unless there is severe dairy equipment in India. During the 80’s, I globe, with marked footprint over 47 countries liquidity crunch dairy industry will not like to go founded SSP Pvt Ltd along with Mr. Tapas with cutting edge technology. To become a surplus milk producing country, we for private equity fund. Chatterjee. have to look into proper cattle and buffalo breeding What is your point of view on the demand of In the dairy sector, we supply plant and machinery programmes, extension and management on dairy milk products? Do you feel setting-up of dairy ‘SSP’ played an important role in the development for milk processing with powder plant, baby food enterprise development, feeding practices. Side with value-added products, a good idea to of dairy industry in India, by indigenously formulation plant, neutraceutical powder plant by side we have to improve milk transportation venture? manufacturing highly-energy efficient, cost- Evaporated/ sweetened condensed milk plant, facility and cold chain system. Yes, setting up dairy with value added products effective & customised milk processing projects malted milk plant and whey, casein and Lactose seems to be a good venture as I also see that on turnkey basis. processing plant. What is the best solution to manage supply- demand for dairy products in India has grown chain management of Indian milk processing significantly, driven by more consumers, In 1969, at the IDA conference held at Chandigarh We have successfully supplied 86 milk powder companies in Rural India? higher incomes and greater interest in nutrition. I was introduced to Dr V Kurien by Mr Rayan, plants around the globe. Out of that 40-50% are Consumption of processed and packaged dairy Chief of Nestle. Mr Rayan stated that my company our repeated clients. The advantages of SSP’s Poor road network and lack of investment in products is increasing in urban areas. Several had supplied equipment to Nestle which was powder plant are innumerable. Highly energy cold chain infrastructure have long challenged national and international brands have entered the better than European equipment. I narrated my efficient plant, in evaporator, no scale formation the country’s dairy industry, Instead of big milk market and expanded consumers’ expectation of experience of working at APV, Kolkata where I in tubes; production of instant quality powder, chilling centres, it is better to have small bulk milk quality. handled different projects at Nestle, Glaxo and flexibility in controlling powder quality are some cooler for collection and storage of milk. But in What are your future plans? HLL to Dr Kurien. of those to quote a few. remote areas, there is an problem of power. Solar- With the increase in milk availability, requirement based vapour absorption system can be adopted for dairy equipment and projects are going up Dr Kurien then invited me to visit Anand to meet In its earnest desire to develop most energy- for refrigeration system for milk cooling. drastically. SSP is planning to supply turnkey Mr V H Shah and expressed that the operation efficient evaporator, SSP has invented evaporator, Recently, Lactoperoxidase System (LPS) is projects for dairy industries along with its powder flood for indigenous development of dairy where all the generated and regenerated vapour being adopting as an alternative method of milk plants. machinery needed similar qualified people. I do can be used in the evaporator, without a condenser not get assistance from multinationals. However, & cooling tower. I was appointed as a member of consulting committee by and by. Kindly share your opinion on the growth of the Indian dairy industry for the last 5 years and its Mr. V H Shah is one of the brilliant engineers, I growth in the next 5 years. ever met. His dedication, hardwork and meticulous planning was responsible for laying the foundation According to the industry statistics, dairy for the growth of dairy industry in India. I had production is growing at the rate of 4.5 per cent the opportunity to work with him through 1969 annually, however, limited resources and inputs, – 1987. I found him as a great administrator and particularly the feed, have reportedly caused dairy a humble person who was always thinking about prices to rise in the last few years. indigenous development of dairy equipment. We discussed how Indian industry would be The government of India (GOI) offers subsidies capable to design, fabricate and commission and other assistance through schemes to enhance dairy machinery independently on European production and to address the aforesaid issues. In technology. The following projects was under recent years, more private sector dairy processors his personal attention; Mogar Complex, Sagar have entered the market. Some private sector Dairy, Dud Sagar Dairy, Banas Dairy, Amul processors provide accessibility to modern Dairy, Ludhiana Dairy, Bhatinda Dairy, All feeder extension services to farmers and such help would Balancing Dairies and Mother Dairy. improve farm management, feeding, fertility (including artificial insemination and genetics), The first 10 TPD milk powder plant, supplied to food and safety/ hygiene and veterinary care. BANAS DAIRY with a 3 effect evaporator with TVR and Egron type spray dryer – was successful. According to National Dairy Development Board Similar model was applied to Amul, Indore and (NDDB), the Indian dairy industry is all set to Sangam Dairy and all of them were successful. experience high growth rates in the next eight years Not only this, Amul’s desire to expand old powder with demand likely to reach 200 million tonnes by plants with indigenous technology at Amul Dairy 2022 from 132 million tonnes in 2013. India has was also successful. F-35 powder plant capacity the potential to become one of the leading players increased from 10 TPD to 20 TPD. F-60 plant in milk and milk product exports. capacity in evaporator increased from 45 TPD to 60 TPD matching expansion of F-60 powder plant How do you compare your company’s stance by providing largest fluid bed dryer of 16.5 sqm with developed countries? area. SSP has developed many technologies in the field of evaporation, drying, extraction, aroma recovery Today, Prime Minister Modi has announced ‘Make and agglomeration. Our technologies are at par or in India’ programme to manufacture everything in some times better than technology available in the India. Such a concept was planned by Dr Kurien developed countries. We provide highly-energy around 46 years ago that was implemented by efficient, cost-effective and quality industrial Amul. Therefore, even Indian technology based projects to industries around the globe with the plant and machinery are exported to other parts of development of latest technologies by innovative the world in competition with the multinationals. R&D activities. Our R&D centre is even better than that of reputed European companies. Earlier, Could you please inform about your company we used to import technology, now SSP is looking and the products that are dealt with? for equipment manufacturers and fabricators

Dairy Times 7 Vol. 1, Issue 01 -February-March - 2016 Interview Prabhat focusses on Cheese, Ghee, Dahi, Lassi & Shrikhand

rabhat Dairy dairy ingredients that are supplied to leading 4.3per cent, while consumption is growing at 5 per in gaining confidence of the investors and making Limited, which Indian companies and major MNC’s in India. cent leaving a gap between demand and supply. dairy industry to look for. Pis an integrated In consumer space, company's focus is on daily The demand for milk is always going to increase milk and dairy products nutritional products such as Ghee, Dahi, Lassi, in a vegetarian country like India, where milk is a Do you think venturing into value-added company in India Shrikhand etc. The major strength of Prabhat is its major source of essential nutrients. segments would serve a significant leverage to extends its services to procurement network that has been developed in the dairy business? institutionals as well as these years. Today Prabhat connects to more than However, to fill the gap the major role will be Yes, in coming days the industry will be driven Vivek Nirmal 85000 farmers on a daily basis. played by production of Cow’s milk as we have by value-added products. Growth for value retail customers. The firm that is into ingredient already reached optimum milk yield capacity of added products is driven by several factors such business such as skimmed milk powder, sweetened Where does India stand globally relating to the buffalo milk. as changing lifestyle of consumers, growth in the condensed milk, dairy whitener, concentrated use of modern dairy technology? food services industry, increasing urbanisation, milk and consumer business such as cow ghee, Dairy is one of the old industries prevailing In India our cropping pattern is oriented towards rising need for convenience, better health flavoured milk, curd, lassi and chaas had been in in India. We are the largest Milk producer in grian production, whether cereals, oilseeds or awareness among end-users, etc. Sensing higher the news for raising Rs 400-500 crore from the the world and I find we are very well advanced pulses;and only crop residues are fed to the cattle. demand for processed milk and milk products, market via IOP. It is backed by India Agribusiness in manufacturing technology as compare to Hence the nutritional value obtained by the cattle is several domestic and global players forayed into Fund (IAF), which is sponsored by Rabobank developed countries. However, we are lagging very low this leads to low productivity in animals. different value added segments (leading to higher Group. behind in the procurement technology, both at However, major steps are taken at grass root level margins) to gain a higher market share. milk production and collection level. and we will see the change in the coming years. Vivek Nirmal Joint Managing Director, Prabhat What is your focus area for growth in the future Dairy , in an interview with Dr J.V.Parekh, , shares In milk production, the core areas to be focussed Private Equity Funds have been a talk of the years? How do you see the future of Indian deeper insights into the Indian dairy industry are Fodder, Breeding, Medication and Cattle town in recent years in Indian food processing dairy industry in terms of demand for milk and based on his experience. Management. At the collection level we need industry. Do you think dairy industry is mature its by-products? to have efficient chilling, transport and milk enough for such type of investments? Prabhat is known for its procurement and He says “Dairy industry has a brighter future in testing infrastructure. The status of supporting manufacturing excellence. It has partnered with the value chain in the near future.” infrastructures and their delivery is still inadequate Dairy is particularly a farmers' business; hence thousands of farmers and its valuable clients and and concerted efforts are required to bring desired there are many regional players as compare to has been instrumental in their growth as well. Could you please brief about the company? improvement. The strengthening of market national players. PE comes in the industries which While we continue to grow with our current clients What are your company products and services? linkages, either through expansion of cooperatives are evolving very fast. Being the world’s second our focus product will be Cheese and we have Established in 1998, Prabhat Dairy Ltd is an or by facilitating contract farming arrangements, largest populated nation, with nearly half its setup the 3rd largest cheese plant in the country. At integrated milk and dairy products company in would go a long way to ensuring sustainable population below 25 years of age, food processing the same time, Prabhat will focus on its consumers India catering to institutional as well as retail growth of the Indian dairy sector in the days to companies in India have been an obvious choice business with daily nutritional products such as customers. We produce fresh, dry, frozen, come. for private equity (PE) investors. PE investors tend Ghee, Dahi, lassi, Shrikhand etc. cultured and fermented dairy products, including to like food companies as they grow fast and the As I mentioned earlier, the demand for the milk pasteurised milk, flavoured milk, sweetened Though India is the largest producer of milk but business tends to be steady once a brand name has and milk products has grown tremendously condensed milk, ultra-pasteurised or ultra-high the growth in production of milk is still shorter been established. due to the changing lifestyles of the consumers, temperature (UHT) milk, yoghurt, dairy whitener, than demand. growth in the food services industry, increasing clarified butter (ghee), milk powder, ingredients As far Dairy is concerned, this industry is one of urbanisation, rising need for convenience, with for baby foods, Cheese, Paneer Lassi and Chaas. What needs to be done to optimise the country’s the fastest growing segments in India, many local better health awareness among the end-users, Prabhat majorly has two business verticals B2b milk productivity? corporate and MNC’s have already started to make this industry is getting mature enough to produce and B2c. In B2b company's focus is on premium As I said, Milk production is growing at the rate of a room for them. Hence, I believe this has helped quality products. Also, many regional players are (contd...on pg.9)

Dairy Times 8 Vol. 1, Issue 01 -February-March - 2016

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Dairy Times 9 Vol. 1, Issue 01 -February-March - 2016 INTERVIEW

(contd...from pg.7) Outlook, the demand for milk and its products in Asia will reach almost 320 MT by 2021. In volume terms the dairy industry grew 4per cent annually in the five years ended fiscal 2015, while the organised sector twice as fast. With changing consumer preference, the volume of milk processed from organised sector is expected to grow 13per cent annually by fiscal emerging actively. Therefore, the industry has a 2018, way ahead of a 5per cent annual growth for bright future for all in the value-chain. the industry at large.

Going forward, where do you see the industry Please share your broad experiences with the in the next five years? dairy industry? India is among the fastest growing dairy markets Being a family driven business, I got an early in the world and has become the largest global opportunity to enter into the business. During producer of milk. The dairy industry in India is those times, I have witnessed the milk surplus, shifting from unorganised to organised sector. drought period, exports, technology upgradation, price variation etc. Farmers find dairy as a very good remunerative option for fulfilling their daily needs. It is a 365- The experience was very warm and I have learnt day business and milk is generally considered to enormous things from this industry. The chain be the largest crop of India and adds largest to the starts with milk procurement where you get an agricultural GDP of the country. opportunity to connect with farmers and ends up with consumption of the dairy products by end- Domestic milk production grew at 4.3per cent users. This gives an opportunity to understand CAGR, to nearly 134 billion litres in fiscal 2014, different mindset of people. We have tried to from 113 billion litres in fiscal 2010. The growth do our very best to contribute to the industry, in milk production in India outpaced other large in these years we had developed ourselves on milk producing nations such as United States of manufacturing and procurement front by giving America and China, which grew at 2-3per cent training to our team, educating farmers. CAGR in the past five years. Overall, my outlook is that the industry warmly Milk production is growing at a rate of 4.3per welcomes you, and if you have a vision cent, while consumption is growing at 5per supplemented with hard work, you can reach cent leaving a gap between demand and supply. newer heights. According to recent OECD-FAO Agricultural

Dairy Times 10 Vol. 1, Issue 01 -February-March - 2016 INTERNATIONAL NEWS

Global food prices continue to fall, Cut back, EU’s biggest down by 19% in 2015: FAO Dairy co-op urges farmers prices, which were down by 21% from 2014 levels, as per the FAO price index. milk output in Ireland – another major dairy export nation. Irish milk production rose Abundant supplies in the face of a timid 11.4% in the year to the end of October world demand and an appreciating US - or 14.2% between April and October. dollar are the main reasons for the general During 2015 it was coping with an extra weakness that has dominated food prices 600 million kilograms more milk than the in 2015, the Food and Agriculture previous year – an increase of 6.4%. This Organisation (FAO) said in its monthly is despite “investing heavily” in additional Food Price Index. processing capacity, said the co-op. It adds that there are signs that members are "Over the full year, the index has cutting back, with November production Our Bureau, Mumbai averaged 164.1 points, nearly 19% less than in down. However, farmers faced with falling 2014, marking the fourth consecutive annual prices find themselves in a dilemma. Many nternational food prices dipped by 19% in the decline," the Food and Agriculture Organisation Our Bureau, Mumbai are producing more just to make ends meet, says last year, the fourth consecutive annual fall, (FAO) says. Harm Wiegersma, chairman of the Dutch dairy Idue to a substantial decline in dairy, sugar urope’s largest dairy co-op, Friesland producers’ union, who also delivers to Friesland and vegetable oil prices according to the United The FAO food prices index averaged 154.1 points Campina, is providing an incentive Campina. He blames the end of quotas for the Nations food agency. in December 2015, down 1.5 points (1%) from its Eto members NOT to increase milk current situation. It was an “historic mistake” he revised November value, with international prices production. The move is only a “temporary” told Dutch News: “We warned there would be too The maximum fall was witnessed in dairy prices, of all the food commodities used in the calculation measure until mid-February, says the Dutch co- much milk but Friesland Campina said it would be which fell by 28.5% compared to 2014, marking of the Index falling, except for sugar and oils. op, but underlines the concerns of European easy to process.” Friesland Campina has a lower its lowest since 2009. It was followed by sugar processors that milk deliveries are running ahead guaranteed milk price for January of EUR29.25 of the market’s ability to sell milk products either euro per 100kg of milk – EUR0.75 less than in on the domestic or international market. Farmers December. will receive EUR2.00 per 100 kilograms Global Dairy Markets compensation for deliveries less or equal to the volume they supplied during the week December 13-17 - the equivalent of in trouble a 5% income bonus – said the co-op. The production was up 5.1% in November over move follows a 3.9% increase in milk year-earlier levels, and up 8.3% over the three- deliveries throughout the EU in the 10 year average. months to the end of October, compared to the same period a year earlier. In the EU dairy quotas were lifted last spring, and Netherlands the rise was 5.2%. But in it seem European dairy farmers are taking October alone there was an 11.4% year- advantage of their freedom to increase milk on-year rise in Dutch milk production. output. Dutch farmers were up 13.8% over last There have been even greater rises in November, and German farms pushed milk output up nearly 5%. The only EU country to report lower production was Italy, down 5% Dairy auction rally for butter, Our Bureau, Mumbai over year ago and down almost 3% over the three- year average. but powders squeezed utter prices took the biggest drop, 5.9%, and are now trading at $1.43/lb. Cheddar On the flip side, New Zealand was down nearly of anhydrous milk fat (AMF) on offer at this event Bcheese was down 3.4%, at $1.30/lb. Skim 2% January through November 2015 compared to after a long, if uneven, rally in prices since August. milk powder dropped 3.2%, and is trading at just the same 11 months of 2014. Australia was down This recovery has stalled for now, with a -2% 83¢/lb. 2.9% over the same period. drop in price from the last auction to USD3,644 per tonne. Other smaller-volume products did In contrast, U.S. prices for butter, at $2.25/lb, and U.S. production has also been tepid, up just 0.6% better – putting the -1.6% fall in the overall GDT bulk cheddar, at $1.53, are well above these world in November and plus 2.8% over the three-year Price Index a little more into perspective. Butter, prices. That makes global sales difficult, unless average. For more on world milk production, Both Dairy Markets said, would increase – and it did sales incentives are offered. U.S. skim milk prices, prices and volume were down today on the Global Our Bureau, Mumbai by an average of 5.6% to an average of USD3,314 in contrast, are at 75¢/lb., which makes them Dairy Trade (GDT) auction in New Zealand, with (EUR3,049) per tonne – continuing its rally since competitive. the weighted average price down 1.4% to $2,405 t could have been worse – but a New Year’s mid-November. Butter milk powder (BMP) also per metric ton. Analysts believe prices must climb price lift failed to materialise at the first global lifted slightly (+1%) to an auction average of Part of the problem has been milk production to at least $3,000/ton for a global price recovery Idairy auction of 2016 (Jan 5). The major US$1,586 per tonne Cheddar, too, enjoyed an growth in the European Union (EU). Overall, EU to occur. commodities either took a tumble or in the case of upturn of by 3.7% to an average USD2,964 per skimmed milk powder (SMP) barely moved from tonne. This is virtually the same price as the the last event. However, the SMP headline average middle of January last year. From that point it Argentina, Holland Offer of USD1,890 (EUR1,739 / GBP1,282) reflects dived to USD2,636 in February before rising the the big volumes of regular heat from Fonterra’s following month to USD3,377 per tonne. That was Subsidies to Manage Milk Supply New Zealand operations and to a lesser extend its high point in 2015 and cheddar has been on a its premium powders, such as age guaranteed and rollercoaster journey ever since. encourage them to cut back on production. UHT. We don’t know how rival sellers Amul and “While higher milk production benefits Arla fared because under auction rules, prices the dairy farm, unplanned and unmanaged that don’t meet traders’ Starting bids are not growth can be quite challenging for a published. None were. And in Arla’s case, two dairy cooperative. Cooperatives often find of its offers – medium-heat regular from Sweden themselves in a precarious situation when and medium-heat instant from Denmark – went lower milk prices drive higher production unsold. Fonterra may have hoped for a continued because they must buy all of their members’ upturn in whole milk powder (WMP) prices. But milk,” says Sara Dorland, analyst with the it was out of luck: what looked like a prolonged Daily Dairy Report and managing partner price rally at recent events appears to be over. The at Ceres Dairy Risk Management, Seattle. WMP average dipped -2.2% from the price at the “At the same time, though, they tend to have last auction to USD2,210 per tonne. Although in Our Bureau, Mumbai difficulty processing and finding a good market for GDT ‘weighted’ calculations, the fall was worse: the milk in times of oversupply.” a drop of -4.4%. Worse, there were precious few t a time when global milk supplies are takers for Fonterra’s premium age at time of overflowing and free trade agreements Co-ops generally take one of two approaches to delivery (ATOD) products: five of the delivery Aare requiring countries to eliminate address excessive milk production. “They either slots to July went unsold. And the lot that did, for or scale back dairy subsidies, some co-ops and carry a stick or offer a carrot on that stick,” says delivery in April, went for the below-average price countries are implementing creative ways to Dorland. Most often quota programs, which are of USD2,195. Instant and UHT products attracted provide extra money to their dairy producers designed to reduce milk flows, fine producers for higher prices, as did later deliveries (from May) of to keep them competitive and thriving or to overproduction. regular WMP. Fonterra had increased the volumes

Dairy Times 11 Vol. 1, Issue 01 -February-March - 2016 INTERVIEW ''Indian Govt should give subsidy if companies buy international standard equipment": Rcheline Levi

ringing together, the industry as a whole to tap global market? within a single • Improve Yield of cows, develop cold chain What are the services and support ADEPTA Borganisation, • Soften regulation on breeding, importation provides to the food & agriculture industry in the ADEPTA, the of cows (Montbéliarde for instance which general and dairy industry in particular? (Association for are not allowed yet…, or Abondance or · Providing equipment, Transfer of Technology the Development Tarentaise) and Knowhow of International • Reduce custom duties on importation of cold • Assisting for Regulations from Harvest to Exchanges of Food chain and process machinery. Process Processing Products and • Adopt International Standard on equipment Techniques) created in and product How is the French technology useful in Indian Rcheline Levi • Create a Semi - Independent Agency for Dairy Industry? 1977 with backing from the French Ministry regulation with professional. Some French companies already sell equipment, should import other breeds that are recognized to of Agriculture and Fisheries, accompanies are established, some have started at the level of give better yield, but these cows will give more the international development of equipment Pre-harvest by 2008, we are now slowly bringing milk if they are bred in hygienic conditions. manufacturers, suppliers of input, experts and our technology to process as well. The Indian Can you share some case study in brief of a engineering and design departments in the demand is for small capacities even for Dahi. It country which has solved the demand and agriculture and agri-food industry. will take more time to get added value product. supply issues with or without help of ADEPTA? Several companies can work together in order to For the progress of dairy in India our editor in France has a unique expertise: Farmers, answer a targeted demand. For instance Astan En chief Dr J.V.PAREKH talked to Rcheline Levi If we look at the technological advancements Manufacturers, Dairies works together. France Qods Foundation (Iran) came to France, they a team expert of ADEPTA. Levi looks after large in the dairy processing units, apart from a few who is the European leader in Food processing can wanted to develop their orchards and fruit scale farming, milk and meat sectors in India, front line companies, companies in general are definitely bring its expertise. In dairy industry we production and process, we organised meetings Central Asia, Ukraine and Russia. not using updated technologies. What are your can sell cows who will allow farmers to get better with French companies (Seeds providers, Grading suggestions to them? How in the long run they yield. We can also sell equipment to improve shelf equipment, greenhouses, refrigeration for storage In a short interview to our editor Levi told how will lose their business further if not upgraded? life of fresh product and reduce cost of energy and rooms etc, etc) all these French companies have technologies of France can help India to get the Govt should give subsidy if Indian companies maintenance. proposed a turnkey project, and Iranian foundation better results in dairy business. Here is the glimpse buy international standard equipment, or efficient is studying it. We did the same for Swine of an interview. equipment which helps to develop the production. Production of Milk in India is not growing with production in China Same for Poultry production India is the largest producer of the milk in the Custom duties for European equipment should be the pace of demand, where are we lagging behind? in Gabon. French companies in dairy industry global market still it lacks the edge on the export at Asian rate from Harvesting to Processing and Production per animal is too low, nothing has been worked together for Chobani project in USA and front. What will be your 5 points suggestion to packaging. done to improve yield of local cow so far. India so many others all over the world.

Dairy Times 12 Vol. 1, Issue 01 -February-March - 2016 NEWS SUMUL to set up ATC eyes to promote dairy in Punjab dairy biz in Goa Our Bureau, Mumbai Our Bureau, Mumbai the government. he Australian Trade Commission (ATC) n a major decision the Goa government has The decision is significant as the state government is looking at sharing innovative ideas to granted permission to Amul to set up a second always had confrontations with the Goa state milk Tincrease milk production and promote Idairy in the state at Kundaim. Surat district co- producers' cooperative union, popularly known precision farming with the twin ideas of 'crop operative milk producers union limited (SUMUL), as Goa Dairy, for various reasons, including per drop' and 'reduce inputs, grow production in which entered Goa market under the brand name increasing milk prices without consulting the state country of Amul, will now procure milk directly from government. A two-member Australian business development producers in the state which was earlier done only delegation came to the 8th National Livestock Anirban Deb, Business Development Manager by Goa Dairy. The state's requirement is 4.5 lakh SUMUL, in its proposal, has said that they will Championship in Muktsar on Saturday to explore (Agribusiness, Food and Beverages), ATC, litres per day while the state is producing only work for the benefit of dairy business in the entire ways to promote dairy development in Punjab and says, "There are immense possibilities in dairy above 40,000 litres per day. state of Goa alongside other similar agencies as exchange of farmers between the state and their development in India on the lines of Australia. We notified by the state government. country. have 1.6 million cows as compared to 72 million The first dairy in the state was set up by Goa Dairy. Imran Saeed Khan, regional business development cows in India, but we got milk output of 9,500 Officers believe that it would not only increase "The rate of milk would be decided by SUMUL manager, ATC says, "We are working to promote million litres per year and in India, the annual milk milk production but also benefit dairy farmers in dairy at Surat. Presently the procurement price is dairy trade in the Indian subcontinent, which production is 135,000 million litres. Average milk the state, Rs 23.32 (cow milk with 3.1% fat) and Rs. 35.81 shows immense possibilities for rapid growth. production per year per cattle is nearly 6,000 litres (buff milk with 6.1 % fat)," SUMUL stated in the India needs genetic improvement in its cattle and in Australia, while it is 1,900 litres in India." The government has granted permission to proposal. fodder development to make cattle healthier. The Deb said that this was made possible due to SUMUL to establish the Amul pattern of dairy Holstein-Freisan cows in Australia and Pakistan innovative ideas and precision farming. "We also business in Goa to procure locally high quality SUMUL may also provide mobile veterinary clinic are much stronger and healthier than in India. The gave thrust to fodder development by adopting milk. SUMUL will set up an automated milk services to the four talukas if the same is required same can come true in India, if more is spent on Rhodes grass, which is very rich in proteins," he collection system connected through GPRS to the with ultra sound facilities. SUMUL will also R&D." adds. department of animal husbandry and veterinary provide high-yielding milch animals from Surat services for farmers who procure milk for the union district to the farmers of Goa under Kamdhenu under a one-time incentive payment provided by scheme. GCMMF appoints Jetha Bharwad Kerala Milk Federation launches as its first vice-chairman Our Bureau, Mumbai unopposed. Meanwhile, Parthy Bhai Bhatol was ‘Milki-Jack’ ousted from the milk unions of Amul after a gap or the first time in its history, the Gujarat of 24 years. Our Bureau, Mumbai He informed that this product had been introduced Co-operative Milk Marketing Federation – into the market of Malabar region, covering six Fthe apex marketing body of all the district After a historical win, Chaudhary thanked board n an innovative approach to a yellowish flesh northern districts----Kasargod, Kannur, Wayanad, dairy unions of Gujarat that markets brand Amul, of directors and milk producers for his unopposed and a faintly sweet smell of the jackfruit, Palakkad, Kozhikode and Malappuram, after the has created a separate post of vice chairman by election. In the election, Chaudhary-led panel won ICentral Products Dairy of Malabar Regional trails carried out in the state laboratories, including bringing a change in its bye-laws. Panchmahals- with 2/3rd majority. His panel won 8 seats while Co-operative Milk Producers Union, under the its taste and acceptance to the public. based Panchamrut Dairy’s chief Jetha Bharwad rival Bhatol saw victory of his only 3 candidates aegis of Kerala Co-operative Milk Marketing is likely to become the first vice chairman of the Poll was on for 14 seats. Federation Limited (MILMA) has recently Interestingly, the product is gradually becoming (GCMMF). launched Milki-Jack. familiar in other southern districts of Kerala. Banas Dairy was established by Galbabhai Perhaps, this is the only product made at this dairy On the other hand, Minister of State for Nanjibhai Chaudhary who through his hard work Radhakrishnan S, manager, Central Products for the entire Kerala market in the state to be sold Department of Health, Government of Gujarat continued the functioning of dairy even during the Dairy, Beypore, North-Kozhikode explains, “ through ‘Milma’ network. and BJP MLA Shankarbhai Chaudhary has been time of severe water scarcity in north Gujarat. The Milki – Jack, a milk dessicated product made out elected unopposed as Chairman of Banas dairy. dairy now involves Rs. 5,000 crore management. of milk, jackfruit pulp, sugar and with added, dried Elaborating on the pricing aspect, he mentioned Mavjibhai Desai has been elected Vice-Chairman coconut chips. This product is prepared from all that it was priced at Rs 50 for 150 gram pack natural ingredients such as, milk, jackfruit and size in plastic tub. The tub contains around 7 to 8 coconut. No any artificial colour or flavor is added pieces of milki jack. Godrej Agrovet owns 51% into it.” stake in Creamline Dairy

GCMMF sees upward Our Bureau, Mumbai an entire cattle feed to high quality milk/milk product value proposition post this acquisition. growth trend odrej Agrovet Limited (GAVL), an The company has product offerings across the agribusiness company and a subsidiary of entire lifecycle of cows, thereby helping the Our Bureau, Mumbai GGodrej Industries Ltd, recently announced overall productivity of the animal. acquisition of controlling stake in Creamline Dairy ow AMUL is different Products Ltd. GAVL is an existing shareholder Creamline is a prominent dairy company in South from others is clear in the company with a stake of 26%. With this India with significant operations across Telangana, Hfrom the fact that transaction, Godrej Agrovet will own over 51% of Andhra Pradesh, Tamil Nadu, and Karnataka and while milk producers the Creamline. in Nagpur in Central India. The company has world over are plagued by strong farm linkages across the four southern dwindling returns, farmers Commenting on the acquisition, Balram Singh states, which assures it quality milk supply around connected to GCMMF-owner Yadav, Managing Director Godrej Agrovet, says,, the year. The retail presence of the company is of Amul have seen growth in "We have been shareholders of Creamline since strengthened by its "Jersey" brand of milk and its their income. the last 10 years and have seen the company build derivatives. The company also operates dedicated a highly successful dairy business during this "Jersey" milk parlors across southern India. GCMMF, MD, R S Sodhi time. As the company embarks on its ambitious says, “All over the world future growth plan, we believe GAVL will be able K Bhaskar Reddy, managing director, Creamline milk producers are crying to bring in significant value to the business by Dairy, states, "We value our decade-long for getting 30 to 50 % lower helping it develop successful brands and add more association with Godrej Agrovet immensely prices due to crash in the value-added products to its current portfolio.” and are delighted to take it to the next level. commodity market, whereas milk producers in plans entailed GCMMF to increase procurement Godrej Agrovet is one of the largest animal feed Gujarat are rejoicing merely over 5-8% due to to at least 12% from 156.17 lakh litres per day in “As the company scales up its operations in new companies with significant cattle feed presence. As wise initiative taken 70 years ago by not only 2014-15 to 270 lakh litres per day in 2019-20. geographies, Creamline can get immense leverage we expand our business, we think Godrej Agrovet producing milk, but also owning processing and through the Godrej Agrovet brand which a strong will add significant value to our business through marketing of value-added products only through GCMMF is also banking on a largest milk powder recall with dairy farmers through our cattle feed their long association with Indian dairy farmers cooperative institutions.” The GCMMF anticipates plant with capacity of 120 MT per day in Palanpur, business., he adds. and knowledge on building long-lasting brands. at least 20% CAGR growth in the next five years, a butter plant at Gandhinagar with capacity of Creamline expects to close FY16 with more than implying its turnover would exceed Rs.50,000 40 MT per day, new dairy plants at Faridabad, Godrej Agrovet has close to 20% market share in Rs 1,000 crore in sales. Creamline envisages crore by the year 2019-20. Sodhi added that those Kanpur, Lucknow, Kolkata and Varanasi. the organised cattle feed market. It hopes to build doubling its turnover in the coming 3 to 4 years."

Dairy Times 13 Vol. 1, Issue 01 -February-March - 2016 NEWS

(contd...from pg.1) top 10 sectors monitored closely by PE players. From accounting for just 2 per cent of total PE investment a decade ago, the Indian dairy sector is now attracting over 6 per cent on a much larger base. Over 900 crore has been invested in the sector since 2010.

However, management of logistics costs and secured procurement would be crucial to profitability and cash flows in the business, it added.

The growth for organised dairy players is driven by value-added products, which grew 23 per cent annually compared with 15 per cent for liquid milk. In the branded segment, consumption of paneer, cheese, curd, butter, ice-cream and lassi has increased faster than milk.

The share of value-added products in fiscal 2015 is estimated at 43 per cent, up from 35 per cent in fiscal 2010.

Milk production in India to grow at 14% by 2021-22: A study

Our Bureau, Mumbai

tudy anticipates that milk production in India will further grow at a CAGR of Saround 14% between 2015-16 and 2021- 22, according to latest research report Indian Dairy Industry Outlook 2022, with an annual output of 138 million tonnes, India is the largest producer of milk in the world. It is also one of the largest producers and consumers of dairy products. The Indian dairy industry offers good opportunities to both domestic and foreign investors for entry and expansion and it has been growing exponentially in the country due to its trich nutritional qualities, dairy products' consumption . The Indian Dairy Industry holds an inimitable space in the country for its high employment potential and for ensuring the availability of nutritious, yet affordable, food for India's ever- increasing population.

Getting the tag of largest milk producer was made possible by Operation Flood and the historic dairy cooperative movement; and as production increased, the dairy industry started showing promising growth potential. Rising disposable incomes and growing demand for dairy products are likely to fuel the Indian dairy industry's growth over the next few years.

Further, the report covers analysis of the primary dairy market and markets of its sub-segments, like liquid milk, yoghurt, butter, ghee, paneer, cheese, dairy whitener, condensed milk, infant formula, Ice Cream and Cream, and EXIM data of major dairy commodities extracted through intensive primary research and detailed secondary.

www.agronfoodprocessing.com

Dairy Times Vol. 1, Issue 01 -February-March - 2016 14 NEWS CM Inaugurates New Block Mother Dairy Invested at Sangam Dairy US$11.5m in Jharkhand Guntur district. Sangam Dairy has constructed an ultra modern (NDDB), has invested US$11.5m in the fruit and block for the production of cultured milk products vegetable processing project that has an annual like butter milk, curd and lassi and is first of its capacity of 25,000 tonnes. kind in the state. The unit can produce 100 metric tonnes of product a day. A Mother Dairy official said the plant will process tomatoes for making ketchups and green peas. The chief minister also interacted with the The plant will also process fruits like banana, farmers at Vadlamudi and later, participated in guava, mango, papaya and litchi for juice and the ‘Janmabhoomi - Maa Vooru’ programme at pulp concentrates. The plant is expected to be Chanchupeta in Tenali town. operational by the end of this fiscal year March Our Bureau, Mumbai 2017.

other Dairy, the Indian food group, is to Mother Dairy's fruit and vegetables arm is called set up a fruit and vegetable processing Safal, selling branded products and having its own Mplant in Jharkhand state, expanding its retail outlets in Delhi. Dairy was set up in 1974 to presence in the eastern part of the country. help make India a milk sufficient nation. As well The company, a subsidiary of the government as dairy and fruit and veg, its portfolio now also Our Bureau, Mumbai agency the National Dairy Development Board includes products, edible oils and jams.

hief Minister N Chandrababu Naidu inaugurated Cultured Milk Products Block Dairy recovery slower than Cof Sangam Dairy at Vadlamudi village in expected, admits Rabobank Our Bureau, Mumbai -0.1% year on year as against -0.6% in its last Odisha govt forms new panel quarterly report. lobal dairy demand will gradually improve Poor weather and low prices have limited US and to boost milk production over the next 12 months, says Rabobank New Zealand growth. But in the EU low prices Gin its latest quarterly report. have not had the same effect. It believes there will Our Bureau, Mumbai provide subsidies to eligible entrepreneurs. The be only a small slowing in EU milk production subsidies would be provided under Odisha Food Chinese imports are also likely to stabilise in the through the first half of 2016. n a bid to promote milk-processing industries, Processing Policy-2013 and National Mission on first half of 2016, it says, as demand outpaces local Odisha government has constituted Food Processing (NMFP), according to sources. supply growth and stocks are reduced. A “modest” growth in consumption in export Ia coordination committee under the The five other members of the panel are the regions should see exportable surpluses of new chairmanship of the secretary of the Micro, Small Director of Agriculture and Food Products, the The second half of 2016 will “offer more hope for milk reduce by 4% in the first half – “tightening and Micro Enterprises (MSME) department. Director of Animal Husbandry and Veterinary sellers”, as China import-buying finally resumes the market somewhat during this period”. The six-member panel would suggest the areas Services, and the Managing director of Odisha growth, as domestic stock reaches normal levels, and specific locations where private entrepreneurs State Cooperative Milk Producers’ Federation adding to the upward momentum provided by At the same time, lower pricing and some can set up milk-processing units and engage Limited (OMFED), the Director of Industries lower retail prices and rising incomes. improvement in income growth will foster farmers for milk production. The panel would Department, and a representative of the milk- improved buying in deficit regions – those not also place before the government proposals to processing industries. The lack of Russian sales has overshadowed meeting their milk needs domestically. what has been a keen expansion of trade in other Crucially, these dynamics will see excess markets. Both factors should reduce “drag” on inventories gradually eroded as the first half of Danone launches international trade that Russia and China have 2016 progresses, “with stocks approaching normal exerted over the last 12 months. by around mid-year”. Pricing pressure will still build in early 2016 and ready-to-eat custard in On the minus side, the need to clear product to Rabobank admits it expects a “somewhat weaker less-high-paying regions kept prices “extremely trajectory” to the recovery than it did a few months 2 pack sizes low” and led to the rise of more “bottom-of-the- ago. pyramid products”, targeted at poorer consumers However, based partly on USDA forecasts, available in a premix format which is often in emerging markets. Rabobank predicts that whole milk powder time consuming and tedious to make. With (WMP) to rise to USD 3,200 per tonne by the this launch, the company introduces ready- The report confirms the frequently held view fourth quarter of 2016, from a current average to-eat custard which will be quick and easy that the world is producing too much milk. On of USD 2,500. Skimmed milk powder (SMP) is to serve. the supply side, Rabobank forecasts production forecast to rise from USD 2,070 to USD 2,800 per growth in the Big 7 dairy export blocs of just tonne. Laurent Marcel, managing director, Danone India, says, “In today’s world everything is faster and more complex; hence food EU refugee milk scheme industry needs to respond to the changing lifestyles and nutritional needs. As we grow our business in India, we plan to create a in ‘final stages’ diverse product portfolio for our consumers tailored to the nutritional needs and Indian taste. Our Bureau, Mumbai existing charitable organisations, in EU and Our Bureau, Mumbai Indian consumers are ready for value-added dairy he European Commission is still working non-EU countries. EU Agriculture Commission products and we believe this product will be loved on the details of a special EU food Phil Hogan stated that “EU milk will be made anone, a leading food company, has by Indian consumers of all age groups.” Tdistribution scheme for refugees, first available for the nutritional needs of refugees, in launched an innovation in the packaged announced in September last year. particular those displaced in difficult conditions Dfood industry with its ‘ready-to-eat' in our neighbouring countries”. It was not made custard. With the launch of the new product, the The EUR30 million schemes, under which the clear whether the EUR30 mln would actually company adds one more offering to its dessert Commission would buy dairy products from EU come from the EUR500 mln farmer aid package, portfolio apart from Misthi Doi for the Indian farmers and supply them to refugee centre’s, is now but Hogan said there were “sufficient funds” in market. “in its final stages” according to a spokesperson. the EU budget. However, Dairy Markets’ sister publication Agra Europe revealed last week (Jan According to a press release issued by the company, The plan was revealed in September, when 7) that the scheme has still not been finalised, four the new product is available in vanilla flavour in a the Commission announced its EUR500 mln months after it was first announced. 900 ml family pack and 200 ml trial pack priced emergency farmer aid package – made up mainly The details of the plan “are still being worked on,” at Rs 150 and Rs 40 respectively. The product is of targeted aid envelopes for all 28 EU member said a source – suggesting potential budgetary or available in retail stores across India. Made with states, aimed mostly at compensating dairy logistical hurdles. Liquid or powder? With the 80% toned milk, it is a 100% vegetarian product producers struggling with low prices due to latest estimate of the EU average raw milk price and is extremely convenient to use. oversupply. Then, the EU executive indicated that standing at 30.6 euro cents, for December, EUR 30 the EUR30 mln scheme would see its humanitarian mln would allow the scheme to buy up just under Custard is a popular dessert consumed in many aid and civil protection department (DG Echo) 10 million litres of milk – though the Commission Indian households. So far, custard has been provide surplus dairy products to refugees, via also cited milk powder as a possibility.

Dairy Times 15 Vol. 1, Issue 01 -February-March - 2016 ARTICLE Private Equity investments driving growth and facilitating consolidation in the Indian Dairy sector

he total dairy market in India is estimated to be TINR 3,000 bn ($60 bn) comprising nearly 40% of the total Food & Beverages market. Of this the organised dairy segment is curently just 20% Nitin Jain or INR 600 bn., and represents a significant opportunity for growth for the next decade or more.

The total dairy market is projected to grow by a in favour of value-added products CAGR of 10-11% to nearly INR 5,000 bn or ($82 Lactalis Group Revenue Breakup in CY12 bn) by 20161. The organised dairy market in India is dominated by the co-operatives which have In India, low value added products like milk and a 55-60% share of the market. The Amul Group ghee contribute nearly 70% of the dairy market. (including Gujarat Cooperative Milk Marketing In contrast, value added products form substantial Federation) had a turnover of INR 191 bn ($3.2 portion of the market in the developed world. For bn) in FY 2013 and holds nearly one-third share of instance, Lactalis, the world’s largest dairy the organized market. company has only 25% of revenues coming from milk, while the remaining 75% is from value- While basic milk and ghee are indeed the dominant added products. See graph. products contributing to almost 70% of the market, growth is driven by a significantly higher growth Private equity investors are encouraging and in value-added products like cheese, paneer, assisting Indian companies to move up the value flavoured drinks etc. chain as the margins are higher. In the last few years, Indian dairy companies are seen expanding Dairy market megmentation by products their product basket by launching products like flavoured milk, various varieties of cheese, There is significant interest from foreign investors flavoured yogurt, etc. as well as global dairy majors to participate in the high-growth Indian dairy industry. The market will mature over several phases of growth. But the action has begun. The organised dairy sector in India is expected Overall, the dairy industry is undergoing a to grow at 15% for nearly a decade more. Given metamorphosis. The industry is still at its early the size and scale of the Indian dairy industry, as stages and would need several phases of growth, well as the headroom for growth, there has been coupled with consolidation to develop into a more a significant interest from private equity investors mature market. and recently global dairy companies to invest in the dairy sector in India. The current phase has seen several private equity investments for growth capital (refer to table), Private Equity Investments in the Dairy Sector with the industry simultaneously undergoing in India consolidation.

In the last 5 years, USD 150 mn has been invested For instance, Hatsun Agro products acquired by private equity investors in the Indian dairy Jyothi Dairy in October 2013 as part of the strategy industry, of which USD 125 mn has come in the to strengthen its distribution in Andhra Pradesh; last 15 months. Lactalis Group announced acquisition of Tirumala Milk products. The capital raised has largely been invested in backward and forward integration We believe high growth in the dairy sector • For instance, Carlyle invested USD 12 mn in as projected in the medium and long term is Tirumala Milk Products in 2010. sustainable.

• In the last three years, Tirumala has As the market evolves and matures over time, strengthened its supply chain by adding over we think there will be further opportunities for 100 chilling stations, expanded geographical investment of growth capital as well as Mergers & distribution to Gujarat, Maharashtra and Acquisitions in the sector. Rajasthan apart from its traditional stronghold in southern states like Tamilnadu, Karnataka Nitin Jain and Andhra Pradesh. The company’s revenues Aurum Equity Partners LLP have nearly tripled in last three years from Email: [email protected] INR 5.8 bn in FY 10 to INR 14.2 bn in FY 13.

As the market matures, we will see the share of low value added products dropping significantly

Dairy Times Vol. 1, Issue 01 -February-March - 2016 16 FEATURE NEWS

However, over a period of time, there has been enormous changes in the trend in packaging due to innovations in packaging technology leading to the availability of many options of packaging materials.

" Packaging constitutes an important link between the manufacturers and ultimate consumers for safe delivery of the product through different stages of production, storage, transport, distribution and marketing."

Innovation Packaging Concepts for Dairy Product

In recent days, packaging technology has made remarkable innovations for packaging of dairy products by way of introducing many cutting-edge technologies such as:

• Rigid PP bottles for flavoured milk as a replacement of glass bottles. • Cheese spread in laminated squeezable plastic tube for children. • Cardboard pulp containers with inner plastic bag, termed as green packs. • Introduction of MEN’s yogurt in a number for containers of 190 gms and 370 gms to attract a special market segment. • Cottage cheese in curved bottom thermoformed containers with wide month to enable easy scoop up. • Portable Pouch for Yogurt: Chobain Greek yogurt is now available in portable pouch which is consumer-friendly as it does not require a spoon. • Cow shaped milk containers made of HDPE to attract consumers. • Project Carton: A uniquely designed paperboard carton for packaging of UHT milk. The design has an in-built plastic spout to facilitate pouring of milk. • Shredded Cheese Stand-up Pouch: This special design of stand-up pouch is more functional as the ccording products i.e. milk and milk products for human handling etc. pouch has zippers for better closing. to a study consumption. • Milk and Cookies in a Single Container: This Acarried out by Role of Packaging for Dairy Products particular package enables the brand owner to Packaging Machinery New Product Formulation Dairy products or milk and milk based products are market single serving portable package made of Manufactures Institute, As in any industry, the critical point or key to highly perishable in nature. Due to this, fresh milk PET. (PMMI), USA in 2013 remain competitive is product and package is required to be processed either by pasteurisation, global milk production innovation. The trend towards consumer leading a sterilisation or ultra high sterilisation (UHT) Conclusion is estimated to grow healthier lifestyle is sparking a slew of innovative technique in order to achieve the desired shelf-life. Dr. N.C Saha dairy products, protein drinks and extended shel- However, the processed milk cannot be marketed India is the largest producer as well as consumer of from 692 million tonnes in 2010 to 827 million flife beverages. Nearly half (48%) of the dairy until the product is packed in containers made of milk products. Moreover, since the geographical tonnes in 2020, a 19% increase. The European processors are responding to consumer demands either flexible or rigid packaging materials. area is so vast, there is a need to develop well Union EU-28 (the 28th member of state was for healthier choices with new products that are of: priced and innovative packaging technology to added in July, 2013), India and the USA were the • Low fat Normally, the milk is processed primarily in the enhance shelf-life, make the packages consumer largest milk producers in 2010 and are expected • Fat free dairy factory and transported either, in bulk or in friendly and light in weight (so as to reduce freight to remain the same in 2020. However, it is also • Reduced sodium and sugar consumer package. cost). highlighted that duringthe period of 2010 and • Lactose free 2020, the following trend is expected to change: l • Organic Bulk Package The package should have convenience features and EU-28 share is projected to shrink slightly. l Share • Probiotic culture, fortified with nutrients, Liquid fresh sterilised milk is normally transported attractive graphic design to enhance eye appeal. of India and China are projected to increase. l calcium and protein. in a refrigerated tanker for a short distance. Though, cutting-edge technology is developed Share of other regions / countries are expected to However, in recent days, the market for processed in this particular sector, the need for innovation remain equal. " In recent days, packaging technology has made milk packed in consumer packages is growing. is continuous; thus one has to keep up research remarkable innovations for packaging of dairy and development initiatives so as to develop """"" Though, cutting-edge technology is developed products by way of introducing many cutting- Current Packaging System for Dairy Products new package designs with alternate packaging in this particular sector, the need for innovation edge technologies." in Consumer Package materials with optimum cost, thus satisfying the is continuous; thus one has to keep up research The liquid fresh pasteurised milk used to be modern consumers. and development initiatives so as to develop There is also growing awareness among consumers made available only in 200 ml glass bottle with (The writer is a Director at Indian Institute of new package designs with alternate packaging for GMO-free (Genetically Modified Organism) aluminum caps for distribution in the local market. Packaging(IIP), Mumbai. He can be contacted at materials withoptimum cost, thus satisfying the dairy products. By adding more natural [email protected]) modern consumers." ingredients, many dairy manufactures are able to simplify their ingredient label – further answering Due to worldwide growth in dairy consumption, the demand for healthier food products. Packaging nearly all countries / regions are projected to is a technique of using the most appropriate increase their production volumes. However, contours and components to protect, carry, identify another study report revealed that among all, India and merchandise any product. It constitutes is the world’s largest producer of milk, accounting an important link between the manufacturers for more than 16% of world milk production. At and ultimate consumers for safe delivery of the the same time, India is considered to be the largest product through different stages of production, consumer of dairy products in the world. The total storage,transport, distribution and marketing. amount of milk produced has tripled from 23 Though, great efforts have been made in producing million tonnes back in 1973 to 95 million tonnes high grade processed milk or manufactured dairy in 2008 and it is 135 million tonnes by 2015. products; unless they are delivered in a fresh, sound and suitable form to the consumers, they are likely However, the projected demand for milk by 2021 to be rejected, thus causing enormous wastage. - 2022 is estimated at 180 million tonnes, which However, the loss can be offset to a great extent implies that milk production will have to be by adequate protective packaging to withstand doubled. The advancements in dairy technology the hazards of climatic changes, transportation, has enabled to produce a large number of dairy

Dairy Times 17 Vol. 1, Issue 01 -February-March - 2016 FEATURE NEWS Controversy on A1 and A2 B -casein in milk

Dr. J.V. Parekh This is mis-information propagated in social critically important: (a) dose-response effect and renowned scientists, one in New Zealand and - Casein is one of the major proteins in milk media to malign Indian scientists. National (b) biological explanation with direct evidence. the other by European Union (European Food of cows, buffaloes and other mammals. Bureau of Animal Genetic Resources (NBAGR), As per survey result although average A1- Safety Authority), have gone through available βResearch studies have shown that there are a renowned research institute in Karnal, has been β-casein consumption in France and Australia is publications and evidences on the subject and have different variants of β -casein in milk evolved over active in surveying the A1/A2 situation in India similar (0.3 g / day) the mortality rates due to CHD concluded that fear about A1 milk was unfounded. hundreds of years due to mutation and selective since 2009. Their first report confirmed that are 88 and 33 per lakh population, respectively. There are also independent panel reports which breeding for high milk and protein yields. There A2 gene frequency in Indian breeds of cattle is Sweden, Austria, Iceland, Canada, Germany have have concluded that as yet there is no clinching are 15 known variants of β -casein out of which around 98 % (almost 100 % in major milk breeds), A1 β-casein consumption varying between 0.3 to evidence as yet to ring public warning. The A1 and A2 are major. β-casein-A1 (alleged bad whereas all the buffalo breeds studied were 2.8 g per day the mortality rates due to CHD are controversy in few developed countries appears casein) differs from A2-casein only by one amino found to be of A2A2 type. Their further work in 70-80 per lakh. Moreover, although A1 β-casein to be driven by commercial motives as in New acid at position 67 (proline in A2 and histidine in screening samples of HF, Jersey and crossbred milk consumption patterns have not changed in Zealand a company called A2 Corporation has A1). This substitution increased susceptibility of bulls used in A. I. program also showed that these USA, Australia, Switzerland over last decade but been formed which owns A2 related patents and A1 β-casein to hydrolysis by digestive enzymes were predominantly carrying A2 allele. Recent CHD mortality has dropped considerably. The brand name and has been demanding mandatory to produce physiologically active β-casomprohin studies published in 2012 also clarified that even hypothesis therefore fails to satisfy dose response testing of animals for purpose of labeling. (BCM), a decapetide. in crossbred cow population predominant gene as well as exposure elimination / reduction criteria. Obviously, a small group of ‘Activists’ type of is A2. NBAGR has therefore rightly concluded researchers is driving this controversy but unless The controversy is that one group of scientists that the situation in India demanded vigilance on Evidence of correlation to Type –I Diabetes concrete evidence emerges India should not fall claim BCM a cause of many health problems in breeding program but no immediate need to change mellitus prey to this propaganda. human whereas other groups report beneficial breeding strategy. In April 2015 Indian Council of Since diseases like DM-I is result of complex effects of BCM and declare both types of milk safe Agricultural Research, New Delhi has approved a interactions between many factors the survey What are the lessons for India? for children and adults. study involving University of Punjab, NDRI and must be adjusted for known confounding factors In order to reiterate good qualities in indigenous About A2 milk NBAGR to investigate and gather evidence about else the association is likely to be distorted. In cows there is no need to denounce exotic breeds or health safety of milk from Indian developed countries children consume cow milk crossbreds. The hypothesis of A1 milk association crossbred cows. proteins as ‘infant formula’, which is a very small with few chronic diseases drawn from a survey proportion of national milk consumption and many done in western countries’ population should not Health Hazards Due to A1 Milk formula have whey and reduced levels of casein. be extrapolated to India. The scare about so called harmful Scientists have earlier proved strong association effects of A1 milk in media is between failure to breast-feeding during first three Considering the contribution of buffalo, indigenous being spread by ill-informed months of age and incidence of DM-I hence data cows and crossbred population in India’s milk group of activists. Firstly, one should have been adjusted for this confounding pool and based on the assumption that β-casein is should understand that there is a factor. In many countries protein source in 45% of total protein and that around 25% of the huge difference between ‘causal infant formula may be from some other country β-casein may be from A1 allele cows, the average factor’ and ‘risk factor’ as the later where A1/A2 frequencies are different hence consumption of A1 milk in India would be around only increases risk of a disease national averages of consumption therefore may 0.24 g / day; 5 – 10 times lower than countries Milk that does not contain A1 ß-casein, but but cannot cause the disease on its own. The be misleading. For these shortcomings of such surveyed. So there is no cause to panic. contains the alternate A2 ß-casein, is known as A2 published survey reports although point out risk surveys Epidemiologists are unanimous in view milk. Cows that produce ß-casein that is solely of association but overzealous campaigners have that comparison of data between the countries The Indian scientists should not consider the issue the A2 type are known as A2 cows. started labeling these as disease causal factors. might at best be considered as the starting point for as buried but remain vigilant and monitor the The controversy started with papers published framing a hypothesis and conduct of experiments situation periodically. Presence of A1 and A2 in different breeds: starting from late 1990s by Dr. Elliott’s group in to gather direct evidence. The scientists at National Bureau of Animal Australia. One such paper has reported results The vested interest groups should not whip up Genetic Resources (NBAGR), Karnal, India of a survey wherein food consumption trends Are there direct experimental evidence in passions and mis-information campaign but scanned breeds of Indian cows and found that in in 20 developed countries were compared with laboratory animals? should leave such matters to the wisdom of our five milky yielding Indian cows viz. official mortality rates due to chronic heart A number of studies on DM-I in laboratory scientists and the scientists should become more diseases (CHD), juvenile insulin-dependent type animal models have been published in reputed vocal in stating facts. Red Sindhi, Sahiwal, Tharparkar, Rathi and Gir. I diabetes mellitus (DM-I) and other diseases. international journals. However, there is only The status of the A2 allele was 100 per cent, while The survey reported strong association between one publication on association of CHD and BCM Lastly, if there is demand from consumers for in other Indian breeds used for farming, its status high A1 β-casein consumption and CHD / DM- done in rabbit, which is not considered as a human A2 milk as a matter of choice, the Government as around 94 per cent. I. The association was found to be stronger in model for this disease. BCM has been found of India and state governments should come up high altitude countries, such as North America and to bind specific opioid receptors and a neural with policy guidelines and entrust the certification Genotype Frequencies of Different Cow Breeds North Europe. India was not included part of the cell hence it is has been suspected to be one of powers with the agency that is currently certifying Indian cows having humps are predominantly study and moreover, it is not high altitude and has the factors causing autism, schizophrenia and organic milk, otherwise the consumers are likely of A2 whereas European and American are of radically distinct socio-economic attributes. So other neurological disorders. In these either cell to be rigged. A1 type. these results cannot be extrapolated to India and culture was used or in laboratory animals BCM Genomic studies have shown that animals the controversy for us stops there only. was injected intracranial, inside the brain or intra- Promotion of Desi Cow belonging to Genus Bos, which includes Indicus peritoneal; obviously these are artifactual routes. Promotion for A2 milk will help farmers shift to (Indian humped Zebu), Taurus (Exotic) and Yak Survey based epidemiology studies that compare In order to obtain credible evidence of involvement traditional breeds which very well integrate with were initially of A2/A2 type only and due to situations in different countries in respect of food of A1- β-casein milk and DM-I a multi-centre natural farming systems. Promotion of A2 milk mutation some animals became A1. But, with consumption and disease prevalence or mortality experiment in genetically susceptible mice model will also make hundreds of gaushalas spread advent of selective breeding for high production, have several inherent limitations. These papers was carried out simultaneously at research labs in across the State turn economically viable. better fertility and protein quality, unconsciously attracted lot of criticism as inferences drawn London, Ottawa and New Zealand. The diet to be A1 allele carrying bulls that were genetically were overarching and erroneous. The assumption fed to treatment group and various other control Due to better quality of Indian cattle milk which is superior were used in breeding programs. in the report was that every individual in the groups was prepared centrally and the researchers 100% A2 type and concern of breed purify, there Artificial insemination (A. I.) of large number of country was exposed to equal level of risk factor were kept blind to feed contents. The results is a yearning need to save and improve our own cows with semen of such bulls multiplied A1 gene (for example A1-casein-milk), which we know from London and Ottawa laboratories showed milk breeds for proper nutrition and employment, frequency over time. Several surveys have shown cannot be true due to socio-economic differences that compared to mice fed on A1-β casein diet, thus making our society healthier and our villagers that A1 / A2 frequency is not breed-specific but within the country. Lastly results of such surveys incidence of DM-I was substantially higher in / farmers economically sound. area-specific. For example, in North America and provide flexible opportunity to the industry, mice fed on control diet consisting of wheat gluten, FSSAI’s Opinion on A1 A2 Milk North Europe A1 frequency in Holstein Friesen media and scientists to pick up and magnify as soy and other ingredients. The New Zealand Whether FSSAI is contemplating standards to (HF) breed cow is very high (> 90%) but in per their perceptions. For example in these and experiment conducted by a researcher proponent identify the two types of milk i.e. A1 and A2 milk. German HF A2 frequency is high (97 %). In other other reports even rice, wheat and soy have been of A1-harmful effects theory, was abandoned half Presently, there is no move to identify two types of countries A1 frequency in HF ranges between (40 alleged to be comparatively stronger diabetogenic way due to a disease outbreak in mice colony milk i.e. A1 and A2 milk by regulators. – 65%). In Guernsey breed from USA / Europe A2 than milk but did not attract so much of media but for unknown reasons they did repeat such a frequency in cows and breeding bulls is very high and public attention. Lastly, in such chaotic robustly designed experiment. Considering (> 98 %) almost equal to Indian breeds. In case situation sane and independent voices of even the available scientific data various panels of of Jersey A2 gene frequency is higher (60-80%) eminent scientists group do not get attention. Dr. learned and reputed scientists have concluded globally. Kerry breed from Ireland and Spotted Truswell a renowned scientist from Australia in that as yet there is no credible evidence to breed from Hungary has A2 frequency above 75%. 2005 and European Food Safety Authority in 2009 suggest that consuming A1 milk is related to In Indian hump breed cows A2 gene frequency is after critically going through available literature CHD, DM-I, Schizophrenia Autism, etc. There around 98 %. So it is preposterous to brand exotic published excellent papers rebutting claims about is also no evidence to suggest that consumption cows as ‘dirty’ or ‘poisonous’. If we compare A1 casein milk but in media these are scarcely of A2 type milk would provide protection or other milch species, buffalo, goat and sheep these mentioned. sparing effects from these diseases. have only A2 genes hence milk from these animals What is the stand of Public authorities on this would be exclusive A2/A2 type. For establishing causal or risk association between issue? factor and disease there are set criteria (also called Research of Indian scientists on A1 / A2 Mills Canons); out of these two are considered Two international Study Groups comprising

Dairy Times 18 Vol. 1, Issue 01 -February-March - 2016 EVENT REVIEW "Effective methods are needed to check adulteration at the collection Centres": Sodhi

‘White Revolution’ whose effort and a check for adulteration in a better way. Later, and the Guest of Honour, highlighted the steps made milk available to common he concluded that there was a need to protect the that are taken by FSSAI for ensuring the quality man and remarked that India was goodwill of the stakeholders of the Indian dairy and safety of milk that reaches the customers. the largest producer as well as industry. He congratulated the Dairy Science College for consumer of milk in the world. producing skilled technocrats. He also made He also addressed various reasons Dr. N. C. Patel, Vice-Chancellor, AAU, Anand, in the audience regurgitate the enforcement of for volatility of price of milk and his Presidential address recalled the contribution e-governance, to make the work of citizens’ smooth milk products in the international of Dr. Kurien and Tribhuvandas Patel to the and incorporate transparency in the process. H. K. market. He foresighted that average ‘AMUL’ model. He portrayed Cow and Buffalo as Gupta, Hon Secretary IDA delivered the vote of daily intake of milk will rise to biological machines and gave a vision to in-vitro thanks. 850 g/day on an average, by 2050 synthesis of milk as a future of dairy industry. which will require a production of He also realised the gravity of today’s scenario, Faculty consisted of Dr K Rathnam, MD, Amul 540 MMT, that poses the challenge and the need to develop small scale sophisticated Dairy, Anand; Mr. A K Dhagat, Sr GM, Amul ational Seminar on Pure, Safe and to increase the domestic milk production. He machinery in rural areas to ensure quality and Fed Dairy, Gandhinagar; Dr TSR Murali, Chief Nutritious milk was organised jointly by also cautioned to some international agencies' safety for the betterment of farmers and the R&D Officer, Mother Dairy Fruit & Veg. P. Ltd. NIndian Dairy Association (Gujarat State projection that India would be deficit in milk in the society at a large. He stressed on the need of Delhi; Dr. (Prof.) K.D. Aparnathi, SMC College of Chapter) and SMC college of Dairy Science coming years and permit imports. If government value-addition as an inseparable step to meet the Dairy Science, Anand; Dr. J.V. Parekh, Consultant, during 11-12 December 2015 at AAU, Anand. does this, it will be extremely harmful to our burgeoning customer needs and the incorporation Mumbai; Mr. Sameer Saxena, Sr Manager, More than 500 delegates from dairy industry and farmers. Rather government should take effective of milk as nutraceuticals. GCMMF Ltd, Anand; Dr. Dinesh G Shah, Indi academic institutions from all over India attended steps to promote local milk production. He further Foss Analytical P Ltd, Ahmedabad; Mr. Parvinder the programme. added that even if each milk producer add one At the inaugural function, Dr. J. B. Prajapati, Vice- Singh, GEA Process Engineering (I) Pvt. Ltd, more animal, it would take care of required milk President (IDA) and Principal SMC College of Vadodara; Dr. (Prof.) P.C. Vasavada, University of After paying tribute to Dr.V.Kurien speakers and production in the coming years. Dairy Science in his welcome address, highlighted Wisconsin, USA; Mr. Aditya Jain, Sr Mgr., NDDB dairy industry stalwarts deliberated intensely on on activities of IDA and SMC College of Dairy Anand;Dr (Prof.) Atanu Jana, SMC College of the issues of milk, its safety concerns through Sodhi then pin-pointed that innovations have Science jointly since 1998 and when the first State Dairy Science, Anand, Dr. Anindita Mehta, CERC, hygienic production and handling, problem of revolutionised the dairy industry from production, Chapter of Indian Dairy Association was opened- Ahmedabad, Dr. Bency Kathayat, Amul Dairy, adulteration and nutritional attributes. The body procurement, processing and marketing finally by Dr Kurien on 27th January 1998. He reminded Anand;Mr. Mohd Abdul Kalam Azad, Milk Vita, strongly reacted against anti-milk campaign by ensuring the quality adding that, Indian dairy that we were concerned with the issues related to Bangladesh and many other experts and policy some agencies and advising the policy makers industry has a unique and efficient distribution pure and nutritious milk and such a seminar could makers were present on the occasion. against import of dairy products to protect the milk pattern for milk, owing to which we are able to pay come up with recommendations of concern to the producers of the country. better prices to the farmers. He further addressed policy makers. The programme had a cultural eve, specially various challenges faced by dairy industry such as executed by the students of SMC College of Dairy Mr. R. S. Sodhi, managing director, GCMMF Ltd, adulteration and the need for an effective method Dr. K. Rathnam, Managing Director, Amul Dairy, Science and special attraction was ‘Manthan’, a the chief guest of the function, began his keynote to check adulteration at the collection areas. He Anand, threw some light on the theme of safe play of ‘Amul India Story’ in its raw form, which address by reminding the audience that milk was emphasised that the shift of consumer preference and nutritious milk and what industry can do to received a huge applaud from the audience. once a rationed commodity and was a privilege from locally sold loose milk to branded packaged ensure it. Dr. H.G. Koshia, Commissioner, Food thing. He paid homage to Dr. V. Kurien, Father of milk could increase the demand for branded milk & Drugs Control Admin. Government of Gujarat Process Control Measuring Instruments OUR RANGE OF PRODUCTS

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Dairy Times 19 Vol. 1, Issue 01 -February-March - 2016 STATISTICS Dairy Products Pricing; Latest Trends

Domestic milk and milk products price: International milk and milk products price:

Source :USDA

Source :USDA

Source :USDA

Source :USDA Dairy Times 20 Vol. 1, Issue 01 -February-March - 2016 A REPORT A Premier Institute: NDRI,Karnal productivity and also to develop has gathered world repute by making the first IVF milk product such as sweetened condensed and cost effective technologies for the (in vitro fertilization) buffalo in the world. evaporated milks from buffalo milk. benefit of the teeming millions. SAMRUPA: The world's first cloned buffalo calf, Development of ‘Degcure’ for curing Degnala Further, the Institute provides was to be India's answer to Dolly the sheep. But disease. high quality manpower to meet unlike Dolly, the first mammal cloned 13 years ago, Ten calves produced from a single donor cow in the human resource requirements who lived for seven years, Samrupa succumbed to one year’s time through ETT. for the overall dairy development a lung infection, five days after it was born. Cytogenetic profiles of various breeds of cattle, in the country. The Institute First cloned Calf: On Feb 6, 2009, the first buffaloes and goats elucidated. also undertakes extension cloned calf was born. The Scientists of NDRI had Development of Hansa test for detection of programmes for transferring the developed a landmark technique and had created adulteration of cow milk with buffalo milk. know-how from the laboratory to the first cloned buffalo calf. Protocol for embryo transfer technology the farmers’ fields. GARIMA: The world’s second cloned buffalo standardized for cattle and buffalo The National Dairy Research worth Rs 7 crore under National Agricultural Protocols for transferring IVF goat embryos to Institute as country's premier Innovation Project funded by World Bank, calf synchronized recipient goats using laparoscopy stablishment Dairy Research institution has developed through the Advanced Hand-guided Cloning standardized resulting in the birth of first in vitro The National Dairy Research Institute considerable expertise over the last five decades Technique was born at NDRI, Karnal on June 6, fertilized goat kid in the country at NDRI. E(NDRI), Karnal is India's premier institute in different areas of Dairy Production, Processing, 2009. A large animal treadmill for cattle and buffaloes for dairy research. The institute was accorded the Management and Human Resource Development. Gamini: On Aug 22, 2010 a cloned calf of female fabricated for experimentation on work capacity to status of Deemed University in the year 1989. Information generated at the Institute and the buffalo ‘Garima-2’ nicknamed Gamini was born determine draught animal power in bullocks. This The institute was originally started as Imperial services offered have contributed to the growth from embryonic stem cell. treadmill is the only one of its kind in India and Institute of Animal Husbandry and Dairying of Dairy Industry as a whole and well-being of Shrestha: On Aug 26, 2010 a cloned calf of male South East Asia. in 1923 at Bangalore. It was expanded and millions of milk producers and consumers of milk buffalo 'Shrestha' was born from somatic cell of an Highly sensitive antiserum against progesterone renamed as Imperial Dairy Institute in 1936 and and milk products. Realizing the challenging need ear from an elite bull; it is producing good-quality has been development. was known as National Dairy Research Institute of global Dairy Trade, the Institute is continuously fertile semen. Urea-molasses block lick development for use as after independence in 1947. Subsequently, in working to develop its R&D and HRD programmes Noori: On 9 March 2012, world's first pashmina a good source of nitrogen and minerals to cattle 1955, NDRI headquarters was shifted to Karnal. to better serve the nation in terms of food security, goat alone was born and was named Noori. She during scarcity period. Facilities at Bangalore were retained to function employment generation, poverty alleviation and was produce by a process of cloning using the Development of processes for manufacturing of as a Regional Station to serve the Southern States. economic prosperity. nuclear transfer method. low fat, sugar free desserts & Rasogulla using In 1964, Eastern Regional Station of the Institute Mahima: On 25th January 2013 by normal artificial sweeteners and bulking agents. was established at Kalyani in West Bengal. Both Courses Offered parturition a female calf was born from cloned Development of different varieties of beverages these Regional Stations continue to provide region The Institute offers Ph.D and Masters buffalo Garima.. In the world, it is the first calf including sports drinks using whey. specific R&D support for dairy development in programmes in twelve disciplines. born from cloned buffaloes, produced through Simple, accurate and rapid methods for estimation these areas. In 1970, NDRI was brought under 1. Dairy Microbiology 2. Dairy Chemistry 3. hand guided cloning technique. of major and minor constituents, heat stability tests the wings of the Indian Council of Agricultural Dairy Technology 4. Dairy Engineering 5. Animal Swaran: On Mar 18, 2013 a clone of male buffalo and detection of adulterants etc., for milk and milk Research to provide greater operational autonomy Biochemistry 6. Animal Biotechnology 7. Animal ‘Swaran’ was born from the somatic cell of semen; products such as “synthetic milk” adulteration in to the Institute in research management functions. Genetics & Breeding 8. Livestock Production it is alive and healthy. milk Development of a process for production of In 1989, status of Deemed University was & Management 9. Animal Nutrition 10. Animal Purnima: On Sept 6, 2013 a clone of female low cholesterol ghee. conferred to the Institute for further strengthening Physiology 11. Agricultural Economics/ Livestock buffalo ‘Purnima’ born from high milk-yielding Innovations in lactometer design and for estimation the academic programmes for human resource Economics/ Dairy Economics 12. Dairy Extension animal. of SNF in milk to suit Indian conditions. development. Education 13. Agronomy (Forage Production) Lalima: On May 2, 2014 'Lalima’ was born Test kit for detection of various adulterants in milk. B-Tech (Dairy Technology) through the NDRI's ‘hand-guided cloning PCR test kit development for detection of food Working area This highly sought after four year degree (8 technique’. borne pathogens in milk and milk products. The National Dairy Research Institute as the semesters) programme offers intensive training Rajat: On July 23, 2014 a male cloned calf named Development of continuous ghee, and channa premier Dairy Research Institution undertakes in processing and quality control of milk and 'RAJAT’ was produced through the "Hand-guided making machines. Cream separator attachment for research, teaching and extension activities towards dairy products and engineering aspects of dairy Cloning Technique”. domestic mixies and food processors. dairy development in the country. Being the processing equipments. Dairy Achievements Development of process for conversion of ghee National Institute, it conducts basic and applied Achievements which burst us with pride Development/standardization of processes and into recombined Butter (Butter G). research with the objective to enhance animal PRATHAM: National Dairy Research Institute techniques for the manufacture of concentrated

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Dairy Times 21 Vol. 1, Issue 01 -February-March - 2016 INTERNATIONAL NEWS Innovations update: Indian dairy worries over smarter, faster, and safer EU-India FTA Our Bureau, Mumbai have been able to reduce energy consumption by Our Bureau, Mumbai Via Campesina (ECVC) explains, "Not only microbiology testing breakthrough up to 40%, resulting in a smaller environmental will these free trade agreements destroy the promises to save the dairy industry footprint, whilst doubling production capacity. In he Land workers’ Alliance is hosting small- livelihoods of 90 million Indian dairy farmers, Amillions through superior product shelf addition, the new system has enabled us to reduce scale dairy producers from the UK and it will severely impact the livelihoods of small life and enhanced protein concentration. production losses by as much as a third. The return TIndia as part of the Oxford Real Farming scale dairy farmers in Europe by forcing us into on investment for the two lines was less than two Conference to discuss the current dairy crisis. competition on a volatile international market. The system developed by Irish tech company years.” We need a guaranteed fair price and protection of Oculer claims to cut detection times for thermo The UK dairy industry is in a state of ongoing domestic markets rather than export strategies and uric bacteria from 72 to 24 hours. Such rapid The US dairy tech company Dairyvative crisis with the prices paid to farmers far below the free trade." detection should significantly reduce spoiling Technologies has developed a system for cost of production. Instead of guaranteeing a fair of product and help eradicate shelf-life issues. It concentrating milk to give it a longer shelf life. price for dairy farmers however, the government’s The majority of milk production in India is carried should also advance the elimination of the bacteria Pasteurised milk can be concentrated into a liquid response has been to announce a strategy for out by small-scale, often landless farmers, who get entirely in other milk-related products, such as one-seventh of its original volume. The end product increasing the export of milk products to Asia. a large share of the total price paid by consumers. milk Powder destined for the infant formula is lactose-free and has a shelf life of as much as 12 So it offers many of India’s farmers a way out of industry. months without refrigeration. Milk proteins stay The target for this milk has been China and Russia, poverty. The Indian dairy sector is the major source intact, maintaining nutrient and flavour profiles, but the export of milk to Russia has been banned of income for an estimated 90 million people. In Ireland alone the savings could amount the company says. Dairyvative has entered in the sanctions and China has started to increase EUR200 million. At the official launch, Ireland’s into a partnership with dispensing equipment its own milk production in an attempt to supply the The EU-India Free Trade Agreement negotiations Environment minister maker Cornelius Inc Russian market. Therefore,the looming new export were launched in 2007, but are not yet finalised. Alan Kelly praised what with the potential of market is India - home of the world's strongest One of the barriers to completion of the FTA is he called an “international worldwide distribution. “people's milk” industry. The EU-India Free Trade India’s opposition to reducing tariffs on dairy breakthrough” for It expects to launch the Agreement, currently under negotiation, seeks to products - which the European Dairy Association microbiology diagnostics technology next year remove tariffs on European dairy exports to India. (EDA) and the EU dairy trade association and added: “With sales of after raising USD2.5 Kannaiyan Subramaniam, a dairy farmer from (Eucolait) have been lobbying in the negotiations dairy products forecast to mln from investors. Tamil Nadu, India, and representative of the to put tariffs down to near zero levels. reach USD494 billion in South Indian Coordination Committee of Farmers 2015, this breakthrough An Australian company, movements (SICCFM) and La Via Campesina The Indian government is currently imposing has the potential to reach Camperdown Dairy (LVC) says, "The corporate controlled European tariffs on imported milk products to protect India’s into every single market International, has dairy exports to India and the global south have the thriving dairy industry. If the Indian dairy market, in the world.” introduced a system potential to wipe out small scale milk producers targeted by EU dairy producers, were to lower which will enable from the planet. We need more regulation on tariffs on agricultural and dairy products, it would Tetra Pak has extended the application of its One- Chinese consumers to scan cans of infant milk production and a reduction of subsidies in have serious implications on Indian dairy farmers step processing technology. Producers can now formula with their smart phones and trace the developed countries to ensure good livelihoods for because their products risk competitive pressures prepare UHT milk from powder in one continuous product back to its factory. peasant farmers." from cheap EU imports of powdered milk from step, reducing operational cost by up to 40% per large scale dairy farms, which the EU heavily cent, and cutting carbon impact by more than a Every can has a unique identifier, matching it back Jyoti Fernandes, a small-scale dairy farmer from subsidises and protects. half. to the batch it was produced from. And the cans Dorset and representative of the Land workers’ will also feature a “contamination-proof” lid and Alliance (LWA) and European Coordination of The technology removes the multiple steps of spoon system, to guarantee the product on the pasteurisation and intermediate storage: skimmed inside matches brand labeling on the outside of the milk powder (SMP) is mixed with pre-heated package. New US Child Nutrition Bill to water to make a concentrate, which is then blended with the precise amount of water and fat before Camperdown’s milk powder manager, Gavin headway milk consumption undergoing UHT treatment. Evans, predicts that other companies would be forced to follow suit. in promoting bone health, reducing the risk The technology will help cut costs for companies of insidious chronic diseases and conditions in the Middle East, Far East and Africa, where He adds, “As a new entry to the market, we’ve demonstrates why milk is offered with every milk is routinely reconstituted from powder. Saudi made sure we introduce our very first product school meal and dairy foods are prominent parts Arabia’s Sadafco, one of the largest producers of into the market up there with this technology of other nutrition assistance programmes,” Connie recombined milk products, piloted the technology. attached. We want to be at the forefront of that Tipton, president and CEO of IDFA was quoted Sadafco’s manufacturing director, Raffaael use of technology to give people confidence in the as saying. Reinders, said: “Thanks to the new solution, we product they’re buying.” Jim Mulhern, president and CEO of NMPF, said that passage of the legislation: “Will help EU holds out Storage Aid for Butter, reverse the trend of declining milk consumption in schools, a trend that unfortunately is in direct Skimmed Milk Powder till Sept 2016 conflict with federal DietaryGuidelines, which say children should be drinking more milk for lifelong schemes for butter and skimmed milk powder Our Bureau, Mumbai health. in summer 2014 to support producers who were reportedly facing the effects of the Russian import S - The Senate Agriculture Committee has "If the trend is allowed to continue, it will have ban. Following continued worldwide market recently approved legislation to enhance serious consequences for children’s health continue imbalance, private storage aid schemes Uthe quality of nutrition in federal feeding today and throughout their adult lives,” he said. have already been extended three times since its programmes, including provisions that would According to Mulhern during the year between introduction to ensure continuity of support. help reverse the decline of milk consumption 2012 to 2014, schools served 187 million fewer in schools and improve the health of America’s half-pints of milk, although total public school Speaking at an event on the milk sector in the children, according to the International Dairy enrollment grew during that period. The Senate European Parliament, Commissioner Hogan was Foods Association (IDFA) and the National Milk bill also calls on USDA to address the needs of quoted as saying "We want our farmers and dairy Producers Federation (NMPF). lactose-intolerant students by offering lactose-free operators of all sizes to get a fair price for their milk through the USDA Foods Programme. hard work. We want them to continue delivering IDFA and NMPF reportedly said that almost all age The child nutrition re-authorisation bill is a world class product. We want to provide them groups consumed less dairy than recommended by now expected to move to the full Senate for with a greater degree of security and sustainability the newly-released 2015 Dietary Guidelines for consideration. in their livelihood. Americans (DGA), and this legislation offers the opportunity to improve dairy intake among the Our Bureau,Mumbai "The Commission will take all necessary steps to nation’s youth. safeguard the livelihoods of our dairy farmers and U - The private storage aid for butter and indeed, the sustainability of our agri-food sector The organisations reported that the new nutrition skimmed milk powder will be extended sector as a whole. I will use all the measures I bill reflected the latest findings of the DGA, which Euntil 30 September 2016, following the possess to stabilise the market." indicated that consumption of dairy foods provides approval by Member States of a proposal made by numerous health benefits, including a lower risk the European Commission. of diabetes, metabolic syndrome, cardiovascular disease and obesity. The Commission put in place private storage aid “Along with dairy’s long-established role

Dairy Times 22 Vol. 1, Issue 01 -February-March - 2016 INTERVIEW ‘Private Equity Investments play a vital role in development and growth of Dairy industry’: Devendra Shah

It serves a wide range of products such as ghee, largest production capacity in India, with a raw town in recent years in Indian food processing fresh milk, skim milk powder, whole milk powder, cheese production capacity of 40 MT. Our brands industry and successful, do you think dairy paneer, an array of processed and natural cheese, and products along with their target consumer base industry is mature enough for this type of cheese spreads, butter, dahi, dairy whitener are set forth below: investments? and gulab jamun mix under the brand names of IDFC and Motilal Oswal are two Private Equity 'Gowardhan' and 'Go' ,all made from 100% fresh How do you look at the Indian dairy industry players are engaged with Parag Milk Foods. These cow milk. and its growth in the last 5 years & in the next type of investments helps entire industry to grow. 5 years? Dr J V Parekh in an exclusive interview Devendra Indian Dairy industry is growing and it has huge Growth/demand of milk products other than Shah, goes over with a fine-tooth comb to opportunities to tap on. milk has also been on higher side in India, do familiarise Indian dairy industry, its challenges you see it as a good venture for value addition and the view of the dairy player, its newer Technologically where do we stand if we in the Industry? opportunities in the industry that it has to offer: compare it with the developed countries? Excerpts: Technology plays a vital role in every industries Private dairy companies have introduced new growth so it is helping Indian dairy industry to innovative approaches and newer technologies What are the services/products you are dealing grow as well. that have enhanced the quality and productivity with, please brief us about your business? of the sector. Earlier, the major issue for a dairy We are one of the leading manufacturers and Though India is the largest producer of milk company was the procurement of quality milk for marketers of dairy-based branded foods in but the growth of production of milk is still manufacturing & processing milk products which Devendra Shah India. We commenced our business in 1992 with shorter than demand, what needs to be done to was efficiently tackled by promoting, educating umbai-based private dairy player, Parag collection and distribution of milk and have now become a surplus milk producing country? and creating awareness about effective methods of Milk Foods Ltd, one of India's elite developed into a dairy-based branded consumer dairy farming among the farmer community. Mprivate sector dairy company, with a products company with an integrated business Education on animal husbandry is a must. Another diverse portfolio in over 15 consumer centric model, manufacturing a diverse range of products vital aspect that private players brought in was With proper education, the dairy farmers have also product categories provide the best global source including cheese, ghee (clarified butter), fresh the ability to produce milk. Traditionally, India realised their importance in the value chain and of expertise and scientific knowledge in support of milk, whey proteins, paneer, curd, yoghurt, milk constitutes a huge cattle population but the average are adopting advanced technologies to make the the development and promotion of quality cow’s powders and dairy based beverages targeting a milk producing capacity of an Indian cow is much process efficient, effective and fully automated. milk and milk products. The company aims to wide range of consumer groups through several lesser than that of its western counterpart. They have brought about a overwhelming change identify, elaborate and disseminate best practices brands. in improving fodder and feeding practices, at all its infrastructures. Supply chain management has been a critical teaching farmers to take better care of the health A significant portion of our product range includes area for Indian milk processing companies, and nutrition of their animals, and promoting A dairy farm set on global standards, a modern long shelf-life food and beverage products what is the best solution to manage it even in selective mechanisation to save on labour. Today fully automated cheese plant with state of the art that enable us to sell our products to retail and the remotest areas? the outcome is that industry is experiencing technology, a ghee plant with traditional way of institutional customers across India. We derive all improved milk quality, profitability and animal making ghee-like made at home and an UHT milk of our products only from cows’ milk. Availability of more and more chilling centres is wellbeing, while the processing has become less processing plant using the best equipment from the best solution to it. erroneous and time consuming. one of the leading plant equipment manufacture. Our aggregate milk processing capacity is 2 million litres per day and our cheese plant has the Private Equity Funds have been talk of the Accordng to industry sleuths, revenues from the (contd...on pg.25) 
   Dairy Industry Conference Canadian Dairy Innova�on Summit (Feb 18-20, 2016) (April 13‐14, 2016) Venue: NDRI, Karnal, Haryana, Venue: Amsterdam, The Netherlands India Contact: Arena Interna�onal Contact: Mr A.K.Sharma www.arena-international.com/dairy ph: -0184-2259293 Email: [email protected] www.ndri.res.in Foodex (April 18‐20, 2016) Venue: Birmingham, UK Health Claims Workshop Contact: William Reed (Feb 18-20, 2016) www.foodex.co.uk Venue:Brussels, Belgium Dairy UK Dinner (June 29, 2016) Contact: Nutrition & Health Claims Venue: London, UK Europe Contact: Dairy, UK www.healthclaims.eu www.dairyuk.com Interna�onal C�eese Awards (July Ice-cream Expo (Feb 18-20, 2016) Venue: Aventura, US 26‐27, 2016) Contact: IDFA Venue: Nantwich, UK www.idfa.org Contact: Nantwich Agricultural Society Interna�onal Sweetener Colloquium www.internationalcheeseawards.co.uk (Feb 21‐24, 2016) Venue: Aventura, US India Interna�onal Dairy �xpo 2017 Contact: IDFA (Feb‐16‐18, 2017) www.idfa.org Venue: Bombay Conven�on and E�hibi�on Centre, Mumbai GulFood (Feb 21‐25, 2016) Contact:Mukhtar Pathan , ph: ‐040‐ Venue: Dubai World Trade Centre 65707722 www.gulfoodmanufacturing.com Email: [email protected] Web: m.pathan@koelnmesse- IDF Parallel Symposia (April 11‐13, india.com 2016) Venue: Dublin, Ireland (The dates and ��e are sub�ected to Contact: Interna�onal Dairy Federa�on change. We will not be responsible www.idfingredientsandcheese2016.com to any changes. Please contact the sources directly)

Dairy Times 23 Vol. 1, Issue 01 -February-March - 2016 NEWS Mumbai HC calls on govt and DSM’s Delvotest T receives FDA on milk adulteration plea external validation for dairy

filed by Colonel (retired) Chandrashekhar Unni antibiotic residue testing and activist Abhijeet Bannerjee through advocate identifies a variety of antibiotics Gunratan Sadavarte claimed that 30 per cent with particularly high sensitivity for of the milk samples tested in the state showed tetracyclines. In this validation study, adulteration whereas 46 per cent samples were Delvotest® T was evaluated against sub-standard. five criteria, including the screening target concentration (STC) detection Sadavarte reportedly informed that the research capability, false-positive (FP) and false was conducted by a consumer NGO – Mumbai negative (FN) rates, robustness and Grahak Panchayat, between 2012-2015. cross-reactivity. The report states that “this multi-residue test was easy to use The survey showed samples being collected in (no specialised analyst required), cost Our Bureau, Mumbai Mumbai, Pune, Thane, Raigad and Ratnagiri. effective (no sample preparation), fast in The survey argued that out of the total samples terms of result delivery (3hrs 15mins) and umbai high court has recently issued collected, around 30 per cent of it were adulterated Our Bureau, Mumbai robust since incubation temperature change and notices to the Maharashtra government and these samples were adulterated with urea, delay of reading did not impact the final result.” Mand the Food and Drug Administration starch, sugar and water. SM Food Specialties announces the (FDA), after hearing a public interest litigation successful validation of its testing tool, Ingrid Damen, Business Line Manager Food (PIL) alleging that there was a mass adulteration Second, it reportedly claimed that milk suppliers DDelvotest® T, for determining up to 27 & Crop Protection at DSM Food Specialties in milk in the state. had written a letter to the legal metrology antibiotic residues in raw cow’s milk and dairy comments: “The presence of antibiotic residues department admitting that they charged Rs 2 on ingredients, such as milk powders. The report, in raw milk poses a significant risk to consumer In response to the plea, the court has sought reply extra 1 litre packet and on a total of 45 lakh litres published by Taylor & Francis,reviews the test’s health, including allergic reactions and antibiotic from the state government and the FDA. of milk packets. ability to identify multiple antibiotic residues. resistance. It is therefore vital that farmers, According to media reports, The PIL, that was Validation was performed by two independent dairies and milk control laboratories take specific facilities in Europe and Asia in accordance with measures to determine the quality and safety of the European Community Reference Laboratories their milk. Delvotest T is a proven tool to help (CRL) guidelines. identify the antibiotic residues in cow’s milk, and Indian dairy players we welcome the results of this new validation to tap Russian market Delvotest® T is a broad-spectrum test which study.” Five-member committee to Sodhi states, “We also have asked Indian government probe into over-priced to convey this to the Russian government. milk issue The demands they are making are and freezing," says a senior impractical.” officer. For the purpose of creating Nevertheless, the awareness on the subject, a protocol is expected government resolution released to establish a new on Friday claims to circulate the market for Indian dairy contact details of all committee players. In the past, members so that consumers can Amul had appreciated lodge their complaints against Our Bureau, Mumbai the protocol as it will open new markets for the any kind of illegal overcharging dairy industry. by vendors. n a bid to import cheese from Indian dairy players, India has inquired Russia to review Throwing light on the issue, Anup Chatterjee, The committee has also been Ithe stringent conditions-livestock of at least director, business development, Schreiber asked to closely study the 1,000 cattle heads to be eligible—it has laid down Dynamix Dairies, Pune, Maharashtra, comments, entire process of packaged to tap Russian market. “Russia has a huge demand for cheese. Russians food leaving the source and have a habit of eating cheese. Russian government reaching the destination. "It will In this regard, recently, a senior official from Amul, has imposed sanctions on imports from the fix the problem after studying India’s leading dairy player, accompanied prime European Union. This is a result of not following it in detail and then discuss the minister Narendra Modi on his tour of Russia, the Russian guidelines. This can be a warning that outcome," the officer adds. seeking a review of the condition that is posing Russian government is strict with its laws.” a huge hurdle as most of the dairy businesses in Our Bureau, Mumbai The resolution makes it mandatory for the India depend on cooperatives to procure milk. He confirms, “The representatives from the committee to hold monthly review meetings Russian government have already visited looded with complaints of packaged food, from time to time. These meetings should at least As per the conditions laid down by the Russian Indian dairies earlier and have selected only particularly milk being sold at higher than have 50 per cent attendance and should last for government, only two dairy players are likely two dairy players from India who matched their Fthe printed price, the food and civil supplies minimum one hour. The committee's tenure has to qualify while missing out almost all the dairy requirements. Schreiber Brazil is already one of department has set up a vigilance committee been fixed for three years. players from India. the prime exporter of dairy products and solutions headed by the minister himself to probe the alleged to Russia. We are seeking real business out of this irregularity. The issue of disparity in milk prices was raised R S Sodhi, MD, Gujarat Cooperative Milk deal.” by leader of opposition in legislative council Marketing Federation Ltd (GCMMF) [Amul], The five-member committee set up at the state Dhananjay Munde during the budget session of states, “The demands put before the Indian Officials of Export Inspection Council (EIC) are level recently also comprises the department the state legislature in March 2015. dairy players by the Russian government are said to have prepared guidelines for disease-free secretary and at least two residents selected by the highly impractical, 1,000 cattle cannot satisfy procurement of milk but these have been delayed government. The committee is expected to meet Following the debate, in May 2015, the Maharashtra a huge consumer base of Amul. Thus, we have due to the pending approval from ministry of every month to review the situation, with minimum government had asked milk cooperative societies cooperative model. Even if we take it as a industry and trade, India. 50 per cent of its members attending. On similar and distributors to slash prices by Rs.2 to Rs.5. mandatory requirement, how can we stand before lines, a four-member committee has been set up the competition on foreign soil?” Meanwhile, various suggestions were put forth at the municipal level for better implementation of "I have directed the milk cooperative societies and during the dialogue with the Russian government's the measures. distributors to slash the market price of milk by He adds, “We need to have more milk procurement representative. A source close to the ministry, Rs.2 to Rs.5 as they have been earning more than to satisfy foreign demands. One-thousand cattle avers, “We suggested that one can put up a check Department sources said one of the major reasons double the procurement rates," Khadse confirms. can generate a maximum of 40,000 litre of milk, post at the milk procurement centres where a behind the problem was staff crunch. "It is not "These milk distributors have been procuring which is very less. We have several products on clearance certificate can be issued to ensure that possible for one food inspector to physically milk from farmers at Rs.14-16, while their market our portfolio at Amul. How to meet huge demands the milk procured is free from contaminants and check so many outlets and stalls. Therefore, to ranges between Rs.40 and Rs.60." with such a small quantity of milk? Amul has a other illnesses.” address the issue for now, the government will cooperative model of operation, which enables us create awareness about the actual price of the to procure more.” products, which includes cost of transportation

Dairy Times 24 Vol. 1, Issue 01 -February-March - 2016 CHEESE MARKET India the next big cheese market By Basma Hussain

ntroduction un-spreadable processed cheese. The segment is and sauces. Cheese is also used for grating and India is the largest producer of milk, which well organised, comprises regional, Indian, and melting. Iis the most widely produced agricultural international players, and is registering high levels Mozzarella Cheese commodity worldwide. With the ease of of entrepreneurial activity. On the other hand, the Mozzarella cheese is of two types (a) low-moisture availability of raw material, the milk processing unprocessed cheese market is largely associated (45-54% moisture) part skim Mozzarella (referred industry is registering new levels of growth. with the soft cheese category in India, usually to as pizza cheese) and (b) full-fat Mozzarella Among the processed dairy products, the most associated with paneer. The traditional soft cheese cheese (high moisture – up to 60%). These are promising segment both in terms of consumer constitutes over 55 percent of the total market, with common in the marketplace. The high demand for demand and business profitability is the cheese only a small fraction thereof being contributed by Mozzarella cheese is owing to its emergence as an segment. Traditionally, India is not a cheese the organised sector and is expected to continually integral part of pizzas. Even though this cheese is consuming nation as the Indian consumer's palate form the major chunk, given the Indian consumer’s often substituted with other cheese when making has been adapted to the softer Indian variant behavior, for years to come. pizza, nothing can make a pizza look, feel and taste of cheese called paneer. But, in recent years, known as ‘The Laughing Cow’). The Bel product - like mozzarella cheese can. Pizza cheese creates given the magnitude of the demand from Indian The market has been dominated by the is being produced at Bel’s facility in Poland a stringy (stretch) look when a hot pizza is pulled consumers, India is the next big market in terms of cooperatives and regional players, with only a exclusively for the Indian market. Fromageries apart or cut. Mozzarella made from buffalo milk few international players making any inroads. The Bel has launched laughing Kirit (creamy cheese has a richer concentration of proteins, minerals, Gujarat Cooperative Milk Marketing Federation in cube form) and Babybel (semi-hard with a nutrients as compared to cow milk cheese. (GCMMF) with its Amul brand of cheese has been wax coating appropriate for sandwiches). Along Emmental Cheese the pioneer and is a formidable player enjoying with ‘Laughing Cow,’ Woerle’s Australian cheese a majority share in the market, followed by brand, ‘Happy Cow,’ Nestle and Kraft’s brands Emmental is a type of Swiss cheese made from Britannia. The imported gourmet cheese market have started marketing their products in the Indian whole cow's milk. Emmental is a firm cheese currently occupies a mere 5-7 percent of the total market. with a pale yellow colour and possesses a buttery, cheese market, but this niche segment is growing mildly sharp, slightly nutty taste. Emmental at over 30 percent. The rest of the market is split Himalaya International Ltd, Himachal Pradesh, features the characteristic holes or ‘eyes’ typical between other players such as Parag Milk Foods, prepares Mozzarella cheese, exclusively for of Swiss cheese. The holes in such cheese are Gowardhan Foods, Danone, Milky Mist, Heritage export. La Ferme Cheese was started to develop a formed by gas bubbles (carbon dioxide) released Foods, Mother Dairy, Vijaya Foods, Milkfed line of handmade farm cheeses for the citizens of by the bacteria (starter culture). Since the cheese and Verka. Some of the global brands that have Auroville, Pondicherry. The firm adopts traditional melts very well, it is frequently used in sauces a long-standing presence in India include Dabon methods for cheese making. The team includes and grilled sandwiches. Emmental is one of the cheese consumption. International, Bongrain SA, Kraft’s, Fromageries professional Indian, Dutch and French cheese- two main cheeses (along with Gruyère) in the India is second only to the EU-27 bloc that Bel, and Arla Cheese. makers who use natural whole cow milk, salts, traditional fondue recipe. collectively produces over 156 million tons, as vegetarian enzymes and seasoning cultures. From per the USDA. Further, India’s milk production GCMMF with the Amul brand continues to be fresh cheese including Mozzarella, Feta, Ricotta, Processed Cheese and Cheese Spreads is expected to total 170 million tons, by 2020, the main operator in the branded cheese market to seasoned cheeses like Lofabu, Auroblochon, Pasteurised processed cheese (maximum 47% thus surpassing the global average growth rate of in India. It pioneered the market for processed, Parmesan, and Jeera cheese, La Ferme produces moisture) is prepared by grinding, blending, approximately 7 per cent. branded cheese. Britannia Industries joined the about 100 kg of handmade cheese in over 10 and heating one or more natural cheeses (of fray in the cheese market in mid-1990s through varieties daily. different stage of ripening) together in presence With the ease of availability of raw material, the as- an arrangement with Dynamix Dairy Industries of emulsifying salts (sodium salts of citrates yet-nascent milk processing industry is registering (DDI). Britannia’s cheese is sold in tins in the Foreign brands in India include Provolone, Colby, or phosphates) to all achieve uniformity and new levels of growth. Milk processing in India form of cubes, and in individually wrapped slices. Mozzarella and Parmesan from Italy, Cheddar from prolonged keeping quality. Pasteurised processed accounts for approximately 35-36 per cent of the The network covers some 60,000 dairy outlets Dutch and Gruyère. The US-based Philip Morris, cheese products usually have good melting total production, with a majority of the share being equipped with cold cabinets, refrigerators and which brought in its Kraft cheese brand earlier, has properties. Cheese spread is similar to pasteurised consumed in a farm-fresh, or non-pasteurized, insulated boxes. Amul covers some 500,000 retail gained a significant presence in the market. The processed cheese food except that an edible state sold through unorganised channels, while the outlets. Britannia has launched new variants of rest of the market is spread among Verka, Nandini stabiliser is added and the moisture permitted is organised dairy segment constitutes merely around flavoured cheese. The cheese cubes are available and Vijaya. Dabur claims a product range of 20 greater (i.e. maximum 60%) than for processed 15-20 per cent of the total processing market. The in three flavours Masala Mania, Mirchi Poppers varieties of cheese under Le Bon brand. Dabon has cheese. This allows for smooth spreading at main value-added products include milk powder, and Cream ’n Onion. Amul has a cheese spread in a manufacturing facility at Noida with an installed refrigeration temperature. whitener, packaged milk, butter, ghee, yogurt, garlic and pepper flavours. capacity of 12,000 tonne per annum. cheese, and ready-to-drink milk products, which Future are, thanks to high consumer demand, growing at Pune-based Parag Milk Foods, a player in the Players such as Dabon have realised the Cheese represents one of the fastest growing anywhere between 15 and 25 per cent. importance of “Indianisation” and added paneer markets among dairy products. Traditionally, to their portfolio, while others are adding tins, India has been a paneer consuming market which This forecast also accounts for the fact that, cubes, slabs, sticks, etc. to their product offerings. is dominated by the unorganized players. The rise although Europe and North America are the In terms of prices, the average unit price has in food service outlets (e.g. Pizza Hut, Domino’s primary cheese markets today, a saturation therein registered an increase over the past year as a result etc.) across the country and changing food habits is forcing suppliers to look elsewhere, to such of consumers upgrading to more premium variants has triggered a robust increase in the demand for currently major importers as Japan and Russia, as well as an increase in milk prices and inflation cheese in India. and to developing markets like India. in general. According to a new report from IMARC Group The Indian cheese market is presently worth Premium imported cheese has takers too. Western- entitled “Dairy Industry in India: Market Size, around USD 237 mn, but is expected to grow at style processed cheese is sold by large companies Growth, Prices, Segments, Cooperatives, Private roughly 15-20 percent annually.The Indian cheese under their brands. The processed cheese market Dairies, Procurement and Distribution”, the Indian market is expected to grow at a CAGR of nearly including its variants like processed cheese, cheese cheese market in terms of sales values is expected 18% during 2015-2020. Product-wise, the global spreads, Mozzarella, flavoured and spiced cheese, to grow at a CAGR of around 31% during 2015- market deals in almost 3,000 varieties of cheese, cheese business, with the brand name Go (for is estimated to be 10,000 tonne per annum (HS & 2020. whereas in India only about 40-45 variants are Gowardhan), is selling Cheddar and Mozzarella, SL estimates). The four metro cities alone account being marketed, presenting much room for the and planning to introduce Emmental cheese in the for > 60 % of the consumption. Mumbai is the The Indian fast food market represents a major market’s expansion. By industry estimates, the market. All the cheese products of Gowardhan largest market, accounting for 30% of cheese sold driver of the cheese industry in the country. The current household penetration in terms of cheese are made in the world-class facility situated at in the country, followed by Delhi (20%), Kolkata Indian fast food market is currently worth over a consumption is less than 7-8 percent. The per Manchar (near Pune) in state-of-art advanced (7%) and Chennai (6%). billion dollars and growing at 25%-30% annually. capita consumption of cheese in India is a mere cheese plant, with staggering capacity of Cheese is quite popularly taken with a number of 200 gm. per year in contrast to the global average producing 40 MT cheese per day. The assorted Types of cheese in India fast foods such as pizzas, burgers, garlic breads, of 7 kg per annum; the average for urban India, cheese products catered to by Gowardhan includes The kinds of cheese that are available today in sandwiches, etc. Apart from Western dishes, the however, is 700 gm. per person. Geographically, processed cheese and cheese spreads, cheese India vary and are classified as hard cheese, soft popularity of cheese is also increasing in traditional the top six cities consume approximately 60 slices, sandwich slices, pizza cheese, Mozzarella cheese and very hard cheese: Indian dishes. Cheese is also being added as a taste percent of all the cheese sold in India. cheese, pizza topping, Cheddar cheese (including enhancer in a number of traditional Indian recipes Orange Cheddar), Gouda cheese, Monterey Jack Cheddar such as dosa, Parathas, uttapam, etc. The cheese arcade cheese, Colby cheese, Emmental cheese, Parmesan Cheddar is a kind of hard cheese that is relatively In India, the processed cheese market forms almost cheese, cheese wedges, and Nacho cheese. They more famous than other hard cheese types. Also rising disposable income and government 45 percent of the total market that is likely to grow cater to Mozzarella cheese in shredded and diced Cheddar can be mild or sharp flavoured and can be initiatives are the major factors contributing to the a higher-than-average CAGR of around 25 percent, forms too. smooth or dry, depending on the age of the cheese. growth of cheese in the country. which includes all spreads, cubes, slices, tins, It can be anything from just a month old to even slabs, etc. Within the processed cheese segment, French cheese major, Fromageries Bel, has entered two years old. Cheddar cheese is normally used around 60 percent of the market is dominated by the Indian market with La Vache Kirit(popularly for cooking purposes and as ingredients for soups

Dairy Times 25 Vol. 1, Issue 01 -February-March - 2016 NEWS

(contd...from pg.22) share of organised dairy segment could rise to 25% by 2017-18 from 19% in 2014-15 as the organised McKinsey & Company Study Shows Bold dairy industry grew at a rate of 22% a year in the past five years, against 17% for the entire dairy industry. The demand for branded milk and value- Changes Can Bring Greater Growth for Dairy added products are expected to grow 13-15% and 22-24%, respectively over the medium term. Our Bureau, Mumbai four strategic responses – global growth, growth beyond traditional business models, insight-driven What is the future plan of your company & how he future is vibrant for US dairy companies innovation, and operational and performance you see future growth of Indian dairy industry? willing to make bold changes to pursue excellence – to capture growth in the current We believe that our brands are one of our key Thigh-growth opportunity areas,according evolving environment. strengths and that our customers, distributors, to new research from McKinsey & Company stockists and members of the financial community released recently at Dairy Forum 2016 in Phoenix. Some manufacturers, they said, will grow by associate our brands with trusted and superior capturing share in the global market and employing quality products. We undertake extensive consumer In a presentation to nearly 1,000 dairy executives “best-in-class” international export and local and market research to gauge the various aspects from across the country and Canada, McKinsey production capabilities. Other companies, excited of a product and plan our marketing campaigns. consultants outlined the challenges and about the prospects of ingredients and product On the basis of our product and market based opportunities facing the industry, concluding that categories beyond traditional dairy, will succeed research studies, which we conduct on an ongoing future growth in the competitive dairy landscape by redefining their businesses and broadening basis, we intend to continue to enhance the brand will require decisive focus and fortitude to their consumer bases. Targeting these markets recall of our products through strategic branding implement a combination of new strategies. will require “fit-for-purpose divisions” and tightly initiatives, through the social media and consumer focused sales. engagement programmes. We use various media Today’s presentation, “Growth in an Evolving annual declines in consumption, these soft drink channels to promote our brands including placing Dairy Market: Strategies for US Dairy Noting that consumer preferences, particularly companies redefined their businesses from advertisements and commercials on television, Companies,” hinged on independent research among Millennials, are evolving faster than ever being “cola-players” to companies that succeed newspapers, hoardings and on digital media. that McKinsey & Company conducted last fall before, Carbonneau and Meilhac explained the by leveraging existing assets – such as world- specifically for discussion at Dairy Forum 2016. benefits of insight-driven innovation. Companies class distribution and marketing and packaging We also extensively promote our brands at stores The research involved in-depth interviews with 33 with top-notch consumer insight and product capabilities – and becoming “lifestyle refreshment and super-markets through in-shop activities and dairy executives followed by a broader survey of development capabilities can win consumers over companies.” engage in consumer activities such as cooking 61 dairy companies representing all dairy products through innovative product portfolios, they said. competitions and school contact programmes. and business models. The research findings also The soft drink companies have many parallels with We constantly focus on research and development included responses from 10 McKinsey consultants Growth opportunities are also available to companies in the dairy industry, Carbonneau said. to distinguish ourselves from our competitors to with expertise in retail and dairy in both the United companies that heighten their efforts on operation He encouraged the dairy executives to consider enable us to introduce new products based on States and abroad. and performance excellence, the consultants adopting new growth-oriented definitions that consumer preferences and demand. We propose said. For dairy companies to remain competitive, would move them from makers of milk, cheese, to set up a research and development centre at Paul Carbonneau, a McKinsey partner, and they will need additional emphasis on network yogurt or ice cream to health-and-wellness lifestyle our Manchar facility to develop new products Ludovic Meilhac, an associate partner, told optimization, manufacturing and procurement companies in the food and beverage category. and processes and a technology centre at our today’s audience that the global imbalance efficiencies, supply chain and logistics, and in- Subsidiary for training and development activities of growth in dairy consumption leaves U.S. store execution. McKinsey & Company has prepared a white and focus on animal husbandry. We intend to dairy manufacturers with the option of chasing paper, “Got growth? Opportunities and challenges increase the share of our value-added product international opportunities or competing for “Growth often requires changing how you do for US dairy industry,” that highlights the research portfolio by focusing on health and nutrition to share in the increasingly competitive home your business,” Carbonneau said, offering recent findings and suggested responses in more detail cater to evolving consumer trends. market. Based on the research, the consultants transitions made by companies in the carbonated which is available on its website. believe U.S. dairy companies should consider soft drink industry as a good example. Facing

Dairy Times 26 Vol. 1, Issue 01 -February-March - 2016 INTERVIEW From Make in India to Make in Rural India Through Dairying

BOUT: What remains is providing market access by and gradually declining arable land, Forty- offering stable and remunerative prices to dairy farming is on the rise. This Afive years farmers and encouraging this generations-old has been made possible by optimal after Operation sustainable livelihood source. integration of production unit (the Flood - that made We have, over the years, come far from cow), technologies and equipment, India the world's being an agrarian economy to become a operator (the farmer) and production largest milk more service sector-driven one, achieving environment (the dairy farm). Apart producer - India accelerated gross domestic product growth. from a well-conceived strategy for continues to be on Every economy aspires to grow; growth, increasing productivity of milch By R.S. Sodhi the lookout for the however, has a flip side - inflation. Further, if animals through superior breeding, next breakthrough in agricultural produce growth is heavily skewed towards the urban nutrition and health practices such as and productivity. As Indias population grows, side, it magnifies the impact of inflation the National Dairy Plan, we need to it desperately needs the next big burst in owing to the income gap. To keep this evil learn from the best practices across productivity to feed the millions being adding under check, we need balanced and inclusive the world. For instance, Israel's Super 4. Opportunity in global trade: India is to the population year after year. What's the growth. For inclusive growth, it is pertinent Cows that produce 12,000 litres milk a year surrounded by countries and regions that roadmap to the next White Revolution? that our villages progress, and if villages are are the result of advanced feed, technology and are milk-deficient, such as the Middle East, R.S. Sodhi, Managing Director, Gujarat to progress, dairy, an integral part of the rural breeding practices. Thus, trusting capabilities South Asia and Southeast Asia. There is Cooperative Milk Marketing Federation, economy and livelihood, must also progress. of our farmers and integrating them with ample scope for export of value-added milk suggests the way forward. Current Scenario in India superior, even imported, technology, feed and products to Bangladesh, China, Singapore, India is the largest producer of milk. It is a The unemployment rate in India rose to 4.9 fodder is the way ahead. Thailand, Malaysia, Philippines, Japan, the matter of pride. I feel privileged to have per cent in 2014 from 4.7 per cent in 2013, 2. Policy changes should precede UAE, Oman and other gulf countries, all of closely witnessed a part of India's journey mainly on account of increase in joblessness structural changes to ensure innovation: which are located close to India. At present, from being a milk-deficient nation to in rural areas. While the unemployment rate Innovation would necessitate encouraging the population of South Asia alone is growing becoming its largest producer. It is an honour dropped in urban areas to 5.5 per cent in 2014 dairy entrepreneurs in cooperative as well as at 1.3 per cent a year; it is likely to be 2.2 to be a witness to the revolution that started from 5.7 per cent in the previous year, the private sector. This would require policies that billion by 2050. This presents an opportunity about 50 years ago with Operation Flood that unemployment rate in rural areas increased safeguard the interests of small players. It is for India's dairy industry. was the basis of this achievement. from 4.4 per cent to 4.7 per cent during the important to note that the government should 5. 'Healthy practices', a pre-requisite While it is great to take pride in past period. In this context, the Make in India not lose sight of long-term goals for short- for healthy dairying: Along with raising achievements, one should not rest on one's initiative, which aims at job creation, should term gains. Free trade agreements, or FTAs, productivity of milch animals to cater to laurels but keep looking ahead, anticipate, focus on rural India to ensure impact. Thus, for instance, will allow EU government- domestic as well as international demand, and prepare oneself to take challenges head- Make in Rural India is the way to go. For subsidised products to be imported from it is important that we work on further on. One of the greatest lessons my mentor, this, what can be better than the dairy sector, Europe with little entry barriers. In the EU improving quality, both in terms of input as Dr. Verghese Kurien, gave me was this - "In a sector that touches the lives of millions of 2014/20 budget, 363 billion euros have been well as output. every crisis, if you look carefully, you will farmers twice every day? allocated for farm subsidies, which will make There is a strong need to take concrete steps spot an opportunity. My insistence is on Apart from a well-conceived strategy for EU farm and dairy products ridiculously towards educating the farmers. Almost every finding and seizing that opportunity." increasing productivity of milch animals cheap compared to Indian products. We must element in the environment contributes to Considering the dynamic environment we through superior breeding, nutrition and also take lessons from China's FTAs with New the quality of milk, a commodity that comes health practices such as the National Dairy Zealand and Australia. From an economic from every corner of the country twice every Plan, we need to learn from the best practices perspective, this agreement has essentially day. Thus, agricultural practices, sanitation, across the world. secured a greater share of growing Chinese quality of drinking water & fodder, type Outlook market for the two nations. The FTAs have and quality of pipelines - all of these need India is expected to see significant growth been a remarkable success for developed to be aligned to the goal of healthy milk. in milk production. However, with growing nations' dairy industries. Australian dairy It is interesting to note that Europe started demand led by increasing income levels on exports to China, for example, have almost adopting healthy agricultural and sanitation the one hand and limited scope for increasing quadrupled between 2008 and 2012. In practices at the grassroots level in the 1970s cattle population due to natural resource such circumstances, the so-called 'Free' and could implement its stringent quality constrains on the other, the sector is likely to Trade Agreement could well turn out to be norms only in the late 1990s. face newer challenges. Let us have a closer our costliest trade agreement. We cannot The so-called 'Free' Trade Agreement look at the outlook for the Indian dairy compromise the economic and commercial could well turn out to be our costliest trade industry. rights of farmers and consumers to provide agreement. We cannot compromise the 1. More mouths to feed than hands impetus to India's exports. Dr. Kurien faced a economic and commercial rights of farmers to produce implies need to increase similar situation many years ago. It was path- and consumers to provide impetus to India's productivity: Food still accounts for breaking to think of monetising the dairy exports. live in today, I find that the dairy industry is the highest share of monthly household commodities received as grants from the EEC Also, with weather uncertainties rising, it full of opportunities. It is a vital part of the expenditure in India at 31 per cent. Within so that we do not retard our own capabilities. has become all the more important that our global food system and plays a key role in food, milk and dairy products account for This idea led to the birth of Operation Flood farmers display a high sense of hygiene and sustainability of rural areas. The world is the highest share after cereals. The per capita whose outcomes are insurmountable. know-how of animal health and nutrition. currently witnessing significant volatility in milk availability in India has gone up from 3. Professional institutions 'of the farmers, Combined with availability of on-demand farm-gate prices. However, prices to Amul 126 gm per day in 1960 to 359 gm per day by the farmers, for the farmers': veterinary service and high-quality cattle farmers have been rising. The prime reason is in 2015. This is despite our population rising Though change is the only constant, it feed, this is bound to yield significant positive that our farmers own not only production but by three times during the period. Global per- cannot be based solely on the profit motives results in enhancing our milk output. also processing and marketing of milk and capita milk availability has actually declined of middlemen. Dr. Kurien's belief in 6. Looking beyond: It is important to milk products. Also, a significant part of their by 9 per cent over the past 10 years. However, entrepreneurship of farmers and the potential understand the multiple dimensions of milk. earning comes from value-added products it is important to note that by 2025, India will of Indian markets helped him in successfully The value of milk produced in the country rather than bulk sales. beat China to become the most populous building 200-plus people's institutions. was Rs 4,18,000 crore in 2014/15, making it A rise in demand for milk and milk products country in the world with 1.4 billion people. The per capita milk availability in India one of the key commodities in India. More is being seen worldwide and the industry is Further, by 2060, 56 per cent Indians will has gone up from 120 gm per day in 1960 than that, milk is the answer to questions of globalising. However, the question of how we reside in urban areas and 44 per cent in rural to 359 gm per day in 2015. This despite our economic self-sufficiency of the rural lot. The can give impetus to the industry to continue areas. India is likely to have 143 cities with a population rising by three times during the business provides employment to the landless reaping its economic benefits still remains. population of more than one million by 2060. period. and land owners alike and the income thus The dairy industry in India is unique. With On the other hand, the number of villages However, he drove each of these institutions generated checks urban to rural migration. six lakh villages housing about 90 crore will witness only a marginal increase, from like businesses, combining professional In addition, milk, being a complete nutrition, people, dairying is not just a large economic 640,000 lakh in 2012 to just 675,000 lakh in management with technological expertise. will play a key role in combating malnutrition activity but also an integral part of our 2060. This clearly indicates that India will The idea is to nurture dairy entrepreneurs and poverty. Thus, growth of the dairy social and cultural heritage. Its uniqueness face the problem of 'mouths to feed' growing through effective training of youth at sector in a setting of weak infrastructure lies in its unifying power, in the fact that no faster than 'hands to produce'. This will require the village level coupled with dedicated and governance has given rise to certain other industry touches lives of millions of a continuous increase in milk production. leadership and professional management of challenges. To meet these, the sector requires farmers, of which 70 per cent are landless. Augmenting production through breeding farmers' institutions. This will, in effect, instil renewed attention and investments from Complementing this are Indian climatic and technological innovations would be the efficiency in the system so that farmers are government and agricultural research and conditions that support animal husbandry. right way to deal with this crisis. The Indian not forced to demand grants and external development community. Dairy, in effect, could become a great tool model of milk production is characterised by support for financing the inbuilt inefficiencies (Courtesy:Business for equitable growth and income distribution. low input-low output. Despite lack of water of the system. Today, Delhi Edition, January 17, 2016)

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Dairy Times Vol. 1, Issue 01 -February-March - 2016 28 NEWS Milk Industry must recreate its existence: Experts Our Bureau, Mumbai continue to suffer due to various problems. costs Rs. 120. On an hough milk prices continue to rise at But experts dealing with the issue see scope for average, dairy farmers regular intervals, all is not well with the improving the situation by taking a holistic view. spend Rs. 300 on a Tmilk industry. Milk dealers and farmers cow a day. Apart from Farmers say they are the most affected this, maintenance and as they say the price of feeds has labour costs also add up risen over the years. Tamil Nadu to the total expenditure. Milk Producers Association secretary Since most families Manufacturer of Disposal Plastic Cups Rajendran says, “Milk production cost involve themselves and Food Packaging Containers has increased over the years. When as workers in the with Multicolor printing we were using indigenous breeds, the business, the labour feed would be mostly green fodder, dry cost gets adjusted.” fodder (maize and corn stem), rice bran, holders pay Rs. 2-3 per litre less than the MRP rice porridge and other household bio While dairy farmers are worried about the (maximum retail price), wholesalers and dealers waste. But for mixed breed from Jersey, increasing cost of feed, dealers feel betrayed that get around Rs 1.50 per litre and co-operative Holstein Friesian (introduced in the the commission rates have not been increased for societies get 0.50 paise less the MRP. If the rate 1980s) which give more milk, the feed the past 13 years. Tamilnadu Milk Dealers Welfare system is streamlined and common rate is fixed, it has to be very good.” Association president S A Ponnuswamy says, will benefit every stakeholder involved in the milk “Milk industry consists not only of customers trade, say experts. Explaining, Rajendran says, “To get and milk producers, it also has milk distributors, one litre of milk, a mixed breed must wholesalers and dealers. While private milk Perambur MLA and CPI (M) leader A be fed 400 gm of concentrate (rice bran companies give a commission of Rs. 4 for every Soundararajan, who participated in various + pulses, vitamins and other salts). For litre, Aavin provides only Rs. 1.50 per litre which protests on behalf of milk farmers and dealers, producing at least 10 litres of milk, one must be shared between the wholesalers and says, “Increasing procurement centres, milk SHRI VIGNESHWARA POLY PRODUCT has to feed 4 kg of concentrates. And a dealers. If a milk dealer sells 500 litres of milk a procurement price, sale of milk and its products Beach Road, Koteshwara, Kundapura - 576222, Karnataka, India Phone: +91-8254-261746, +91-8254-325006 70 kg bag of concentrates cost around day, he would get only Rs. 250 as commission. is the solution.” Fax : +91-8254-262746 Mobile: +91-9448462746 Rs. 1,300 while 10 kg of corn stem This forces many retailers to stock private milk.” Web Site: www.shrivigneshwara.com costs Rs. 300, and 10 kg of maize stem Regarding the prices for milk, monthly card- He feels Aavin must take steps to increase the sale of milk through various methods like introduction of 200 ml milk in the noon-meal scheme for schoolchildren. Some years ago, the State government stopped the scheme of supplying 200 Expert in the Art of ml milk to all students of the noon-meal scheme. If the scheme is re-introduced, milk sales will Processing increase to 20 lakh litres per day. Technology COMPANY OF THE YEAR AWARD to FRICK INDIA LIMITED

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Dairy Times 29 Vol. 1, Issue 01 -February-March - 2016 NEWS

Telangana to scrap subsidy for dairy farmers producing more than 25 litres/day Our Bureau, Mumbai could severely impact the livelihoods of farmers, He said the cooperative dairy charges 15 for A government official, however, argued that who were already in severe distress because of the handling on every litre it procured and sold. majority of the farmers would still continue to get amakrishna, a 30-year-old dairy farmer severe drought. “Compare this with 10 in Karantaka. The local the benefit. “As many as 78,550 farmers would with seven buffaloes in a village in government can reduce the handling charges get the subsidy of 60 crore. Only a fraction of big RTelangana’s Ranga Reddy district, is in a The government, which introduced the subsidy and pass on the benefit to milk producers and farmers are excluded,” he argued. fix now. The animals yield about 30 litres a day. scheme a year ago for dairy farmers that supply consumers,” he said. This would mean about a daily income of 700. milk to the Vijaya dairy, said it was not in a Though Vijaya Dairy, the public sector cooperative position to continue the scheme any longer. It �rganisedr�� �nrE�entr�� dairy, gives him 23 a litre – 6 short of the cost of spends 70 crore a year on the scheme that covers production – a subsidy of 4/litre from the State 81,000 farmers. government comes handy for him. This has come as a shocker to farmers as it could “But we are not going to get this subsidy any impact their livelihoods. “While we spend 29-31 longer. The State government has decided to do to produce a litre of milk, we are getting only 23. away with this subsidy for farmers who produce If the government removes this incentive, it would more than 25 litres a day. I have only one option severely impact our livelihoods,” Kandala Bal before me – to reduce the number of buffaloes or Reddy, General Secretary of Progressive Dairy Indian to forgo the subsidy,” he said. Farmers’ Association, told BusinessLine.

Ice cream Farmers managing small and medium dairy units He said it was not fair on part of the government Congress & Expo 2016 that produce more than 25 litres are worried. to leave out farmers that produce more than 25 Citing the example of the neighbouring Karnataka, litres. “The neighbouring Karnataka is spending they want the government to increase the subsidy 1,000 crore a year on the scheme. We urge the to 7 from 4 a litre, instead of removing the subsidy. government to enhance the subsidy to 7/litre Opposing the government move, the Progressive instead of diluting the scheme,” he said. Dairy Farmers’ Association has said the move Mah govt.invests 28th-29th September 2016 Expo Center, Sector-62, Noida,(Delhi NCR) Rs. 50 crore for upswing of dairies Meetings

market and took away that Discussions business from the government- run dairies. Knowledge Entertainment The official said that the state government assumed that co- operatives dairies would be Galar�Nigh more efficient due to which the state dairies took a back seat. Exhibition Supported By Online Media Partners Ofcial Media However, due to corruption Indian’s 1st News Portal for Agro, Food Processing & Allied Segments and in-efficiencies that process Agr Food A Supplement of Beverages & Food Processing Times T i m e s processingwww.agronfoodprocessing.com www.agronfoodprocessing.com never took critical mass. In the process, the farmers suffered a Media Partners

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Times Group Publication of Advance Info Media & Evnets Our Bureau, Mumbai new government wants to revive its dairies using A Bi-Monthlyd Newspapera Devoted to Milk, Milki Products r& Allied Sectorsy www.agronfoodprocessing.com India’s First E Magazine log on to www.agronfoodprocessing.com the existing land and infrastructure. Maharashtra government is planning to revive its Contactr�for�tStallsr�&rtPartners Indian Ice Cream Congress & Expo dairies and has earmarked 50 crore for their revival. Chief Minister Devendra Fadnavis in a recent Firoz H. Naqvi : +91-9867992299 Sameer K +91 9833325839 Seema Shaikh : +91-8689979988 121, 1st Floor, Rassaz Multiplex, Mira Road (E), Thane - 401107. India. Tel: +91-22-28555069 / 28115068.Email: [email protected] Web: www.indianicecreamcongress.in It is also working to create a pan-Maharashtra interview with BusinessLine had reportedly said INDIAN ICE CREAM MANUFACTURERS ASSOCIATION Sudhir Shah-+91-9849025027 (Secretary IICMA) Samrat A. Upadhyay- +91-76988 69800 (Secretary General – IICMA) brand in the State. that the government dairies would revive and a Regd. Ofce : A/801, 8th Floor, “Time Square” Building,C. G. Road, Nr. Lal Bunglow Char Rasta, Navrangpura, Ahmedabad - 380 009, Email: [email protected] Web: www.iicma.in brand similar to Amul having A senior state government official said that a a national reach would be detailed study would be undertaken as how the created. government dairies could be turned around based on existing land and other infrastructure adding Letters to the Editor: that a lot of attention would be given for creating Regarding Indo-Russian its own brand and niche products in the market. dairy export negotiations , Dairying could become a big money spinner for In July 2015, the Ministry the State government. of Commerce requested the Russian authorities namely, Currently, the state government dairies are only FSVPS to include a clause processing less than 1.20 lakh litres of milk per in the protocol, which would day out of the 125 lakh litres processed in the state. enable the protocol to be re- Private dairies process about 72 lakh litres and the discussed after six months. rest is taken care by the co-operative dairies. The Russian side was initially reluctant but finally agreed to The state’s government premier dairy Aarey was include the provision in Nov established in 1949 at Aarey colony, Goregaon 2015. and it was inaugurated by first Prime Minister Then again the Indian side Jawaharlal Nehru. Located in the western suburbs insisted that a particular of Mumbai, the central dairy and surrounding clause which states that the colony is spread over 3,166 acres of prime land. Indian enterprise exporting The official highlighted that detail studies would dairy products to the Russian be undertaken as to leverage the locational Federation, should have advantage of Aarey as well as other dairies in the captive farms having at least State. Funding options for reviving the business 1000 heads, to be dropped. would be considered in great detail. ‘What we want is that the protocol between Indian and Since 1980s, the state government-controlled Russian Governments should dairies have been on the decline as a number of co- be concluded as soon as operatives and private dairies entered in the same possible.

Dairy Times 30 Vol. 1, Issue 01 -February-March - 2016 NEWS Prabhat Dairy well placed in organised dairy space: Edelweiss

Our Bureau, Mumbai

Prabhat Dairy is rapidly advancing towards becoming a B2C player (targeting 50% revenue contribution by FY19 from ~28% in H1FY16), while continuing to grow its B2B business. The company’s 20 ton per day capacity cheese plant (third largest in the country) will drive growth in coming years. Initially, it is betting big on the Horeca (hotels, restaurants, catering) segment, which presents a huge conversion opportunity from unorganised to organised. One risk we envisage is likely increase in milk prices due to draught-like situation anticipated in Q4FY16 (to hit realisations). We believe Prabhat is well placed to milk growth in the organised dairy space (dairy space is expected to grow at faster growth in next 3 years as against 22% seen in past 5 years). Prabhat is targeting to bolster revenue contribution from the consumer segment to 40% by FY17. Dahi, UHT milk, paneer and cow ghee are the products that the company is focusing on currently. Going forward, cheese and shrikhand (to be launched in Q4FY16) will drive growth – cheese has the potential to contribute ~INR3bn at peak capacity utilisation.

Hatsun Agro posts strong growth in Q3 despite tough conditions Our Bureau, Mumbai

atsun Agro has reported a 60 per cent jump in net profit for the third quarter Hof the current year, as compared to the corresponding period of the previous year. Investments in expanding capacities, infrastructure and branding, have all paid off giving the company, the largest private sector dairy player, the benefit of economies of scale. Net profit Hatsun has reported a net profit of 17.55 crore (10.87 crore) on a total income of 830.09 crore (713.22 crore) for the quarter ended December 31, 2015. The company procures and markets liquid milk under the brand name Arokya; ice creams branded Arun Icecreams and Ibaco; a range of dairy products under the brand Hatsun. RG Chandramogan, Managing Director of Hatsun Agro, said the company has managed to report a good performance despite adverse weather conditions, including intense rains and flooding in Tamil Nadu. Ice cream sales Sales of ice creams and curd had been hit more than usual during the season, which is even under normal conditions a low period. Situation returned to normal around December 15, and the worst is behind, he said.

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Dairy Times 31 Vol. 1, Issue 01 -February-March - 2016

Dairy Times 32 Vol. 1, Issue 01 -February-March - 2016 NEWS Novel Outlook & Opportunities For Indian Dairy Industry- Facinating World Of Functional Dairy Products & Ingredients By Dr. Rajiv Shah anti-inflammatory action; anti-thrombotic action; colorectal cancer. as well as individual components are considered Scenario of Indian opioid, protection against metabolic syndrome, Dairy products can be considered nutraceuticals an important constituent of functional foods and Food & Dairy e.g., hypertension, serum lipid levels, glucose without any fortification; furthermore, almost all have seen an increase in their production in the last Industry: balance and body mass index; and protection types of nutrients can be fortified in milk. Various few decades. India is world's against cancer and obesity. Hence, milk & dairy fortified dairy products are consumed by target Many of these functional dairy ingredients are largest milk producer, products as well as their individual fractionated populations, including elderly individuals, infants, now commercially produced by European & accounting for more components can form important ingredients in youth, and pregnant women. Each population US companies & find increasing applications than 16% of world's formulation of dairy based functional foods & exhibits their own health needs, and fortified dairy in formulation of Infant, Adult, Medical as well Dr. Rajiv Shah total milk nutraceuticals. foods can provide more nutraceuticals than the as Sports Nutrition Products in the category of production, as well as world's largest consumer Increasing recent findings have revealed the health dairy product itself. “Functional Foods”. In India still the field is of dairy products too. The total amount of milk benefits of milk and dairy products through an Milk and dairy products provide all the necessary nascent; both for production of functional dairy produced has tripled from 23 million tonnes back array of bioactivities such as modulating digestive nutrients for healthy living for human beings of ingredients as well as functional foods. in 1973 and expected a production level of 155 and gastrointestinal functions, controlling all age group. For the neonates, the colostrum Some leading functional dairy ingredient million tonnes in 2016. As per CRISIL Research probiotic microbial growth and immunoregulation, produced by the mother during the 48–72 hours manufacturers in the world are: Arla Foods estimates, the size of the Indian dairy and milk accelerating bone growth, and maintaining bone postpartum is the only source of all the necessary Ingredients, Sweden.; Fonterra, New Zealand; products industry stood at around Rs. 3,050 billion health. nutrients and the protection against microbial Saputo, Canada & USA; Glanbia Nutritionals, (≈50 billion USD) in 2012-13 & Rs 4,650-4,700 Recently, studies have been conducted to infection through the immunoglobulins. Babies USA; Davisco Foods International, Inc., USA; billion in 2014-15 (≈75 billion USD). determine new health benefits of milk and dairy obtain nourishment for several more months Ingredia Nutritional, France; FrieslandCampina – The size of the Indian food industry was said to foods, such as maintenance of cardiovascular from milk with the additional benefits from the DMV International and The Netherlands. be about Rs. 8,80,000 crore (140 billion USD) in health, prevention of obesity and diabetes (low- associated bacteria such as the bifidobacteria in (Dr. Rajiv Shah is a Technical Consultant- 2006-07. It was estimated around Rs.1,320,000 fat milk), and antitumor activity (especially their gut, especially breast-fed babies. For adults, Functional Foods & Nutraceuticals, has more crore (212 billion USD) by 2015 with the colorectal, bladder, and breast cancers). For milk and dairy products are consumed for their than 35 years of professional experience..He expanding contribution of processed food from 43 example, numerous cohort studies demonstrated sensory qualities, nutritional value and for their can be contacted on +919825356851 or e-mail: percent to 53 percent. India’s food and beverages that higher intake of dairy foods, particularly low- many bioactive components. [email protected].) (F&B) industry will expand at an average annual fat milk, is associated with a decreased risk of Based on all these facts, milk and dairy products pace of 24% to reach Rs.3.8 trillion in sales by the March, 2017. India’s food processing industry will reach USD 255 billion by FY2016 & is growing at around 10 percent annually, the country’s food ingredient sector is growing at around 15 percent. Functional Foods & Nutraceuticals: Functional Foods & Nutraceuticals are no longer new to dairy & food industry. It was estimated that the global functional food market revenue for the year 2013 was around $175 billion. With an annual average growth rate of about 10-15% the global market for functional food was around $230 billion in 2015 & is estimated at $278.96 bn by 2021. In 2013, top global functional food markets by country/region were: Japan (40%); US (38%); Europe (14%) & Australia (8%). India does not account for < 1% any significant production of functional foods. In these contexts, Indian Dairy Industry should also look beyond traditional dairy products – to the fascinating new world of functional dairy products & ingredients. Milk & Dairy Products as Functional Foods / Nutraceuticals: Milk and dairy products [especially fermented dairy products like synbiotic dairy products (probiotics & prebiotics), yoghurt, acidophilus/ bifidus milk, kefir, koumiss, dahi, chhas, lassi etc.] have been associated with health benefits for many years due to their rich content of diverse components viz. proteins, lipids, carbohydrates, minerals & vitamins. Many of complex milk components can be now fractionated as such or in modified form into individual entity e.g. specific proteins [Milk Protein Concentrate (MPC)- contains 40–90% milk protein, Acid & Rennet Casein, Caseinates (Sodium, Calcium, Ammonium & Potassium salts), Whey Protein Concentrate (WPC),Whey Protein Isolate (WPI),Whey Protein Hydrolysate (WPH),α-lactalbumin,β- lactoglobulin, Bovine lactoferrin, Bovine serum albumin (BSA), Immunoglobulins -especially from colostrums, Milk Fat Globule Proteins], fatty acid & lipid components [conjugated linoleic acid, Omega-3-Fatty Acids, Oleic Acid, Vaccenic Acid, Phospho/Sphingolipids, Butyric Acid, 13-Methyltetradecanoic Acid], lactose and other minor oligosaccharides (Galactooligosaccharides- GOS, lactulose; the major and essential minerals [such as calcium, magnesium as well as phosphorous]; and vitamins [especially the fat- soluble vitamins A, D, E and K as well as some of the water-soluble vitamins such as B12, riboflavin and C]. Milk proteins-casein as well as whey proteins- can be enzymatically modified to form bioactive peptides, which exhibits antibacterial, antiviral and antimicrobial action in general; EDITOR IN CHIEF EDITOR CONSULTING EDITOR MARKETING EXECUTIVE PRODUCTION MANAGER GENERAL MANAGER CIRCULATION MANAGER Dr. J.V.Parekh Firoz H. Naqvi Basma Husain S.H.Hasni Syed Shahnawaz Gyanandra Trivedi Seema Shaik 121, 1st Floor, Rassaz, Multiplex, Mira Road (E), Thane -401107. Tel: +91-22-28115068 /28555069. Email:info@agronfoodprocessing .com, Website :www.agronfoodprocessing.com Printed, Published By -Firoz Haider Naqvi, Printed at: Roller Act Press Services, A-83 Ground Floor, Naraina Industrial Area, Phase -1, New Delhi -110028, Reg Office :103, Amar Jyot Apts, Pooja Nagar, Mira Rd (E) Thane-401107, Delhi Office: F-14/1, Shahin Baugh, Kalandi Kunj Rd, New Delhi -110025 The views expressed in this issue are those of the contributors and not necessarily those of the news paper though every care has been taken to ensure the accuracy and authenticity of information, "Dairy Times" is however not responsible for damages caused by misinterpretation of information expressed and implied with in the pages of this issue. All disputes are to be referred to Mumbai jurisdiction Dairy Times