Milk production in India grew at 19% between 2006 and 2010 and exceeded 121 million tons as of 2010/11 according to the report “Unlocking Growth Potential of Indian Dairy Industry” by the industry body, Assocham. In the coming years, the Indian dairy industry is expected to grow at a compounded annual growth rate (CAGR) of 4.2% with milk production reaching 177 million tons. This rate of growth will help the country meet its domestic demand of 150 million tons by 2016/17 as forecast in the National Dairy Plan. Dairy product exports for 2012/13 were valued at $259.52 million with the top destination markets being Bangladesh, Egypt, and United Arab Emirates. Much of the Indian dairy industry was not able to take advantage of larger global markets because of its inability to meet sanitary standards in the U.S. and EU and other developed markets. Most middle class households in India view raw, local milk as more nutritious causing major players in the country to not fully adopt pasteurization.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free weekly enhanced eNews service