To augment acceptance and awareness of nutritional supplements and increase cattle productivity

Constraints in Dairy Animal Productivity

Lack of staff at doorstep service Hindrance on 5 freedoms of animal welfare Lack of knowledge diseases of cattle Non availability of artificial insemination Limited access to quality green fodder and water

Overview Strengths and Opportunities

• Dairy farming in India adds significant value to the economy through revenue generation and employment.
• 80% of milk is marketed through unorganized fragmented sectors. • Widespread internet and ICT permeation in rural India provides multiple
• More than 67% of dairy animals are owned by marginal and small farmers constituting core milk production.
mediums for awareness campaigns.

• Expected growth in the middle-class consumers is likely to be the largest

Analysis driver of dairy demand by 2030.
Key Challenges Recommendations
• Word-of-mouth is a trusted • Exporting milk surplus by meeting the international food quality standard
• Awareness campaigns using may incentivize farmers to adopt new technology.
medium, which requires reputed public figures
awareness campaigns to build broadcasted, over radio and • Significant value added by dairy farming industry means government
on this route television. expenditure is likely to reap benefits in the long run.
• Conveying supplements are a • Training farmers in
profitable investment that administering nutritional Financial Implications
deserve an outlay to lower- supplements and identifying
income farmers. possible side-effects dairy technologies Veterinary Clinics
✔ Cattle monitoring drones 90 Cr
✔ Rumination collars
• Means-testing or surveying • Government distributes
Fodder
✔ Robotic milking
appropriate and influential supplements in dairy-
stakeholders for the targeting of 600 million tonnes
dependent districts, especially
subsidies/transfers. to underprivileged farmers.
Sources: Ministry of Finance, Economic Survey 2022-23. https://www.indiabudget.gov.in/economicsurvey.
 Dairy Farming -
Harbinger of Socio-economic Change
Team: The Pathfinders

Presented by:

Aruneema S Padma
Ritwiz Sarma
Srishti Banerjee
 Policy Timeline
MARKET Implementation of
1912

35%
OVERVIEW
65%
Cooperative Societies
Act
1946 Formation of AMUL, the first
126 Mn 80 Mn people 24.64% India’s dairy cooperative in Gujarat
Organized Unorganized litres/day employed global milk
Sector Sector production Operation Flood: National Dairy
1970
Development Bank sets up dairy
Dairy is the single largest sector commodity cooperatives across high-
contributing 5% of the national economy, witnessing performing milksheds and links
them to major cities.
6.4% (CAGR) in the past 5 years. 1985
World Bank investment aids
expansion of dairy processing and

SLOWDOWN
CAG ⮚ India has registered a 58% marketing facilities, resulting in

GRADUAL
R increase in the milk cooperatives becoming self-
5.85 production over the past nine sustaining
% years i.e. from 2014-2015 to
230.58 Mn

11th Five Year Plan aims for 5

2022-23. 2012 percent growth in the sector and the
tonnes

World Bank to start the National

⮚ Currently has an overall
Dairy Support Project after
market valued at 10 lakh
stagnation in dairy growth and
crore which is expected to
produce 33 mmt of milk (33%
Distribution of Animal holding resulting demand-supply
2014- 2022-
households imbalances
15 23 of world production) by 2033-
34 2020 Shift in demand from traditional dairy
products to functional dairy
Top 5 Export Potential States Madhya Andhra
Rajasthan Uttar Pradesh Gujarat products such as vitamins &
which are contributing 53.11% Pradesh Pradesh
(15.05%) (14.93%) (7.56%) minerals-fortified milk among health
of total milk production in the (8.6%) (6.97%)
country.
enthusiasts due to Covid19 (source:
fortune business insights)
Sources: Dairy Industry In India - Growth, FDI, Companies, Exports (investindia.gov.in)
 Indian Market Dairy Size -
⮚ India's Export of Dairy products was 2022
67,572.99 MT to the world for the
worth $284.65 Mn during the year
2022-23.

CAG
20th Livestock Census report R
3.5
%
Ratio of veterinary •The majority are landless and marginal farmers
institution to live stock
population
who control 70-75% of the livestock population
1:14228 •It provides important livelihood activity and
2017- 2022- supports agriculture
37726 vet 18 23
• Provides critical input for agriculture
clinics
⮚ The Indian animal feed market grew • Provides supplementary income

303.76 mn bovines at 3.5% CAGR over last 5 years, to • Employment generation

reach the size of approx. $11.66 Bn. • Acts as a “bank on hooves” in times of
⮚ Livestock sector grew at a need
⮚ With a growth rate of 15%, it is
compound annual growth rate of expected to reach ~$19.23 Bn by
13.36% from 2014-15 to 2021- 2028 exhibiting a CAGR of 8.2%.
22.
India is the largest milk producer as well as
consumer in the world and its milk production
is estimated to exceed the milk production of the
entire European Union by 2018 and the gap is
expected to widen.

Over the decades the Indian government has

invested heavily to aid in the growth of the
dairy industry . Resulting in an almost 60%
increase in production over the past 5 years.
Milk being the largest export among dairy
products
The size of the bubbles refer to the total milk production in the base period 2018-20.

Though production capacity of the dairy This shows that though production in the
industry in India remains unparalleled , dairy industry is and will continue to
the yield remains low. remain high, the profitability per milch
animal remains low

The projected growth of the percentage change in This is where India is losing the competitive edge over
yield to percentage change in inventory shows a the rest of the world .
positive relation in case of India. However, for the
European Union the Dairy herds are projected to
decline (-0.5% p.a.), but milk yields are projected
to grow at 1.0% p.a. over the next decade
ANIMAL WELFARE
CHALLENGES
The five freedoms of Animal Welfare are being hindered.

Problems Consequences Solutions

Cows are tied to less than 1 m Cow’s movement is restricted,
Freedom from discomfort by • GPS Tracker
rope per day restricting bodily leading to difficulties in changing
providing an appropriate movements. position, grooming, adopting
• More area per unit of cattle.
environment and shelter. • Electronic identification
normal resting postures, carrying
systems and associated
out normal social interactions, and
management software,
exercising.
Results in pressure on sensitive Automatic body condition
Freedom from pain, injury, Fitted with a rope halter that
tissues throughout the life of the scoring, Automatic recording
pierces the nasal septum.
disease and distress. cow and, if carried out without devices (rumen
analgesia, would be painful. temperature, pressure, pH)
by electronic rumen bolus
Hair loss was more prevalent in • Robotic milking systems -
Freedom to express normal Risk of escape and concern about
injuries to free-moving cattle, a major cubicle housing compared to straw daily milk yield recording
behaviour. yards, again suggesting that • Milk component monitoring
barrier appeared to be the confidence
of stock-keepers around untethered interaction with the physical (such as fat, protein), daily
cattle. environment, i.e., cubicle stalls lead body weight gain
to more skin friction and so hair loss measurement
Freedom from fear and Low yield and productivity. • Pedometers for heat
detection, for health
distress.
monitoring i.e. measuring
lying time and standing
Freedom from hunger, Limited access to low Milk production and rumen health bouts
Sources:
malnutrition and thirst. supplementation of quality green would be impacted due to the lack of Mullan, S., et. al. (2020). Welfare
fodder and water contributed to ad libitum roughage and water and Challenges of Dairy Cows in India
lameness of dairy cattle. suitable diet. Identified Through On-Farm
Average productivity of an Indian Average productivity of a Swiss Suggested daily routine
Cow: 10-15 litres per day Cow : 25-30 litres per day
3 am Dry fodder and
cattle ⮚ Feeding throughout the
v day is not a good
practice which gives no
s Green fodder is fed after
time for mastication and
7 am proper digestion.
completing milking
⮚ Provide clean drinking
9 am Animals are given water 3 to 4 times a
bath day.
11 am
Brought back to shed and ⮚ A big animal needs 75
given complete rest to 100 liters of water per
day.
Animals masticate & sleep ⮚ Water shortage of
during rest period facilitating animal will affect milk
digestion and better milk yield
yield.
Dry fodder and cattle feed
3 pm
and water is given.

4 pm Milking is started

7 pm Green fodder is fed

Note: The yield is calculated per milking animal (mainly cows but also buffaloes, camels, sheep and goats)
Resting period
Source: OECD/FAO (2021), ''OECD-FAO Agricultural Outlook OECD Agriculture statistics (database)''
 Constraints related to Animal Recommendations
Breeding ⮚ Setting up of Mobile Vet Clinics.

⮚ Encouraging cross-breeding in order to

select for both high-yielding purebreds
Lack of availability of Lack of availability of Lack of veterinary and well-adapted indigenous breeds,
artificial insemination staff at doorstep units allowing for growth of Artificial
services Insemination (AI) infra.

Repeat
Breeding
⮚ Feasibility: AI infra deserves public
Syndrome investment since it provides significant
social benefits.
High instance of repeat Inadequate knowledge on Inability of animals to
breeding the diseases of cattle get into A.I. due to ⮚ Impact: higher productivity, increasing
high cost and labour profits over generations making initial
involvement
investment worth it; adds versatility since
bullocks can meet draft-power
Govt. Support requirements of agriculture.

• Rashtriya Gokul Mission: Extended till 2026 to boost dairy productivity and milk output.
• Kissan Credit Card scheme to provide adequate and timely support under banking system to
livestock farmers. Source:
• Dairy processing and infrastructure development fund to upgrade milk processing and chilling https://www.investindia.gov.in/sector/
plants, including value addition in dairy infrastructure. animal-husbandry-and-dairying
 Constraints related to Animal
Feeding
Lack of awareness regarding the nutritional requirements of dairy animals is one of the main reasons for low
yield in the Indian dairy sector
• High cost involvement of in purchase of ingredients of 11.24% 23.4% 28.9%

fodder
Deficit
concentrate mixture.
Green Dry Concentrate

of
• Belief that available feed like grasses, weeds and leaves
from fodder trees collected from nearby forest area is
sufficient for animals feeding. Impact:
Milk prices having been considerably increasing due
• Lack of awareness about treatment poor of quality straw to shortage of fodder in the country
to improve its nutritive value.
Estimated increase in fodder by 2025:
• Scarcity of green fodder round the year.
400 million tons 117 million ton
• Belief that feeding should be given on the basis of
Green Dry
production (i.e. concentration only for milch animals)

• Dairy farmers poor acceptance for advanced nutritional Source:

solutions Indian Grassland Fodder and Research Institute
Demand & Supply Projections towards 2033, Niti
Aayog 2018
 Recommendations

Green fodder Dry fodder Concentrate fodder

• Economic source of nutrients for dairy animals • Required to get sufficient fat in the milk • A concentrate mixture made
• Highly palatable and digestible • Only satisfies hunger of the animal up of protein supplements
• Maintains good health and improve breeding • Contains only 2.5-3.0% crude protein such as oil cakes, energy
efficiency sources such as cereal
• Improved use of green fodder may decrease grains (maize, jowar),
cost of milk production tapioca chips and laxative
feeds such as brans (rice
For year round green fodder production, following Paddy Wheat Jowar bran, wheat bran, gram
agricultural practices are feasible: straw Bhussa Kadbi husk) is generally used.

Use of high-yield variety certified / truthfully

labeled seed / planting material of improved
high yielding varieties of fodder crops ⮚ Dairy animals need to be fed a balanced feed
Growing short duration varieties of fodder ⮚ An ideal feed consists of 60% wet green fodder & 40% dry fodder
crops between two main seasonal crops.
⮚ Dry fodder is a must even if surplus of green fodder is available

Fodder Fodder Hybrid Cowpe

maize grass Napier a
 Recommendations
Target: Rural, low/middle-
income, speak mostly local
Awareness language, low literacy.
campaigns:
Radi Televisio Public Medium: Radio remains the
o n Figure classic method of rural
• Widespread internet and ICT permeation in rural India provides outreach; television has
multiple mediums for awareness campaigns. significantly increased rural
• Giving out subsidized fodder to low income group farmers to penetration
enhance cattle production
Instrument: Since distrust is
Socio-Economic Impact: a push factor, the
Adoption of nutritional Improved Cattle health endorsement of a public
Increased awareness
figure known to rural
supplements in fodder
populace provides a suitable
antidote. E.g. Kapil Dev,
Economics stability in Increase in farmer’s Amitabh Bachchan,
Increase in
rural areas income Narendra Modi
productivity

Govt. Support
• National Livestock Mission Design - improve the availability of
certified fodder seed required for fodder production and
encourage entrepreneurs for the establishment of fodder units
by providing incentives
 Recommendations

Awareness Cultivation of two pearl millet varieties

campaigns: with 7.0% and 5.4% higher green forage
Radi Televisio Public yields as compared to national check
o n Figure Giant Bajra.
• Widespread internet and ICT permeation in rural India provides
multiple mediums for awareness campaigns.
• Ensure feed security of live stock
• Giving out subsidized fodder to low income group farmers to
• These varieties are resistant to leaf
enhance cattle production
spot and blight diseases.
Socio-Economic Impact:
Increased awareness Adoption of nutritional Improved Cattle health
supplements in fodder

Economics stability in rural Increase in farmer’s

Increase in
areas income
productivity

Govt. Support
• National Livestock Mission Design - improve the availability of
certified fodder seed required for fodder production and
encourage entrepreneurs for the establishment of fodder units
by providing incentives
GOVERNANCE
ISSUES
Farm groups are key to success in dairying:
Recommendations
⮚ Empowerment of farmers groups is a sensitive and often • Provide financial support through training and
painstaking process which requires substantial investment. capacity building.
• Build an organized and efficient collection system
⮚ Shortcomings in the organization of milk.
with the help of cooperatives.
⮚ Small scale milk producer and processing groups can be excluded • Gradual implementation of standards so that small
from larger formal supply chains due to rapid introduction of high scale farmers don’t feel excluded. Provide price
standards or technical specifications without any price incentives. incentives

⮚ High export Subsidies of developed countries which India is unable • Engage in international advocacy to address unfair
to match. trade practices including subsidies.

⮚ India cannot export surplus milk due to not meeting the

International Food Quality Standard. Raw milk has not been able to
get global market access.
 ECONOMIC
Recommendations
CHALLENGES
Constraints to production at small household level:
⮚ Higher production and transaction costs • Use stakeholder-focused research to understand dynamics
disadvantage the small producers who do not of producer prices and adjust support and procurement
benefit from economies of scale. prices accordingly.
⮚ Limited access to common property resources. • Feasibility: Reflexive research can yield high-resolution,
⮚ Lack of appropriate infrastructure to sustain farmer-level data.
perishable products. • Impact: Use of MSP as a form of price plays a crucial role
⮚ Small scale production limits productivity. in ensuring farmers’ income stability, rural income stability,
⮚ Institutional Support: There is no MSP support for food security and reduces income disparity.
animal husbandry product and they lack marketing
like crop based commodities.

Key Takeaways
• Refocus the level of policymaking - let cooperatives design SOPs relevant to breeding, animal welfare,
and marketing, provide access to modern systems for monitoring and evaluation

• Feasibility: infrastructure already exists for monitoring and evaluation, putting these into the hands of
cooperatives ensures those with the biggest incentive to improve have the tools to do so; reflexive
policymaking allows for context-specific solutions to take root rather than one-size-fits-all approach

• Impact: more efficient SOPs, quicker improvement and better policy penetration due to better local-level
implementation
 OPPORTUNITIE
⮚SMarket for butter and spreads is predicted to grow at
an 8% CAGR to $4.2 Bn by 2026.

⮚ Expected growth in the middle-class consumers is

likely to be the largest driver of dairy demand by 2030
Livestock Health & Disease Control Scheme” from 2021-22, which provides one
fabricated Mobile Veterinary Unit (MVU) for every one lakh livestock population to
establish doorstep veterinary services to the livestock owners. The scheme has
provisions of financial assistance of 100 percent central share towards procurement
of fabricated Mobile Veterinary Unit. For recurring expenditure on running of
diagnostic & treatment services by these Mobile Veterinary Units, central share is
90% for North Eastern States & Himalayan States viz. Uttrakhand, Himachal Pradesh,
100% for UTs and 60% for all other States. Further, during 2021-22 a sum of
•National Animal Disease Control Programme Rs.681.57 Crore has been released to 33 States/UTs for procurement of 4332 Mobile
(NADCP): NADCP aims to control Foot & Mouth Disease and Veterinary Units (MVUs).

Brucellosis by vaccinating 100% cattle, buffalo, sheep, goat and

pig population for FMD and 100% bovine female calves of 4-8 COWPEA EC- 96.00
months of age for brucellosis. 4216/EP-44
COWPEA
Animal Husbandry Infrastructure Development fund (AHIDF). AHIDF is one of the flagship
schemes by DAHD, Government of India whereby INR 15,000 Cr fund has been setup for
19 RUSSIAN 90.00
offering financial support to set up new units or expand existing units in areas of dairy GIANT/F-4/F-5
processing & related value addition infrastructure, meat processing & related value addition
infrastructure and Animal Feed Plant. The benefits available are: COWPEA F. T,
•3% interest subvention on loans 20 – 005 90.00
•2-year moratorium with 6-year repayment period
•INR 750 Cr credit guarantee VTY/8401
Thank
You
We are open to
questions