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India :: Local Market

Six States provide 65% of the requirements UP 18% AP & Rajashtan 9% each Punjab & Gujarat 8% each Maharashtra 7% MP 6 Focus on cross breeding as the yield is highest in the milch Cross Bred Buffalo Indigenous Cow 6.9% 4,6% 2.1%

Market dominated by unorganzied sector Buffalo provides 55% of the produce

Product Mapping: Needs more exhaustive list


Products Commercial Dairy Farms Dairy Processors Liquid Milk Flavored Milk

UHT Milk
Cost Breakups Cost Breakups UHT Cream Yoghurt Procurement of Animals Feed Medicine Electricity Employee Fertilizer Insecticides Milking Parlour Milking Machines Cooling Facilities Bulk Tanking Facilities Vehicle & Cooling Facilties Others Cost Breakups Packing Materials Cleaning Substances Labour Maintenance Energy Storage Cheese Milk Powder Condensed Milk Baby Foods Juices

Cream Whey
Whey Powder Butter Process Cheese Ice Cream Butter Milk Surrogates

Products Product Distributors Confectionary Ready Made Cold Coffee

Supply Chain
Local Collection Facility & Testing ? Cold Storage Transportation ??

Dairy Farmer

Breeding & Genetic Resources


Yield based issues Herd Management Fodder Shortage Herd Size Management Low Productivity Low Technology Adoption Animal Sanitation

Fragmented Supply Government vs Private Testing Facilities Pricing Poor & Quality of Milk

Logistics Road Connectivity Cold Storage Fleet

Cold Storage Facility ??

Processing Plants

Distribution Channel

Cold Storage Facilities Available Electricity

Level of technology adaption Capital Investment Required Any Government support? Packaging Problems

Unorganized Market Power of High End Urban Grocers Differing consumer requirements due to region Food Safety Standards Design & Implementation Checks

Some Questions
India being the largest producer of milk why have we not been able to have the degree of product differentiation as in developed countries Consumer What are the main Consumer Preferenecs? Pure products Ghee, Milk, Yoghurt, Butter vs Icecreams, Low Fat Milk, Soy Milk, Milk Products , Baby Foods , UHT Milk

Consumer Demand Main Drivers ? Income, Money to demand high end dairy product
Is the demand for the high end products are more of demand push Is their a case in the mind of consumer that he looks for dairy consumption in total. Therefore, do we need to look at the dairy product market more on the lines on the share of wallet rather than separate market projections in their own right. ( Milk, Yoghurt, Milk Based Sweets,

Supply chain Milk production is more concentrated towards buffalo rather than cow Does buffalo laden milk create problems for a more diverse products Packaging Capability Certification Cold Storage Facility

Road Connectivity
Role of electricity and infrastructure

Some Questions

Distribution Channels High End Super chains are they the only major touch point for high end dairy products Low End Urban Grocer not being able to generate large demand

Dynamics & Margins of the distribution channel. What are the margins in play for the constituents

Market Is it more regional vs national market Any specific international quality standards that the consumer considers important or is demanded by the government Case for exports. Key markets. Indian dairy companies such as (VRS Foods- Paras Brand of Milk) have been exporting close to USD 2-3 mn worth of products per month. What is the product mix

Questions for conversations / discussion with 3rd party

Exploratory Questions on Farming 1. Level of milk pooling in states with highest milk production 2. Actual presence of logistics supply trucks, cold chain 3. States with highest dairy production a) UP- Product Mix & Quality b) AP & Rajasthan c) Punjab & Gujarat d) Maharashtra e) MP 4. Possibility of yield increase due to government efforts to improve cross breeding 5. Government support for prices

Exploratory Questions on Products 1. Quick list of largest products demanded by quantity 2. Highest margins? 3. Regional Bias? 3. Distribution Channel 4. Problems of Distt Channels Supermarket, High End Retail Chains, High End Urban Grocers, Middle Range Urban Grocers, Caf / Confectioners 5. New Products 6. Problems of moving 7. .
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