GROUP 4 : ANKITA GUPTA ABM13008| VRINDA ABM13009|RITIKA ABM13022| SAGAR

13023|AKANKSHA ABM13027| BRAHMA ABM13028

CONSUMPTION ANALYSIS OF DAIRY SECTOR

INTRODUCTION
The contribution of agriculture in the GDP of the country has been decreasing,
there is an increase in the contribution of dairy sector to agricultural GDP. The
government has taken several initiatives to promote the dairy sector and its
activities, however there is still a long way to go to help the farmers economically.
Our aim is to understand the percentage of milk produced by the farms used for
self-consumption and the percentage of milk sent for processing in the dairy
industry. This will help us understand the reasons behind poor contribution by small
farms in the economy.

OBJECTIVES
To study the consumption pattern of dairy products by Indian customers.
To know the dairy product mix consumed by Indian customers.
To understand the per capita monthly expenditure on milk and milk products
The aggregate expenditure per person on unprocessed milk products' as well
as on processed milk products items
To determine the factors influencing the monthly expenditure on milk and milk
products

BACKGROUND
Most farmers in rural areas are involved in cattle rearing, especially for milk, as
a source of secondary income. Hence, it plays an important role in uplifting the socio-
economic status of millions of rural households. The livestock sector is one of the
largest contributors to the Indian agricultural GDP. Although the contribution of
agriculture to total GDP has been declining over the years, the contribution of the
livestock sector to agricultural GDP has been increasing. Dairy products comprise a
major share of livestock sector's output. Since the white revolution of the 1970s, the
dairy sector in India has been growing consistently. Currently, India is the largest
producer of milk in the world with its share at 17% of total world production [1]. It is
expected that the Indian dairy market will double in the next decade. Most of this
growth comes from growth in the value added dairy segment. The value added dairy
segment is expected to grow at 15-20%. Initiatives such as cooperative societies
helped in achieving this high growth in the dairy sector.
Several initiatives such as Operation Flood helped in closing, the gap between
rural milk supply and the urban milk demand. However, despite the increasing
production of milk in India, the yield per animal in India is very less compared to
those of other developed nations such as USA, New Zealand etc. [3]
Income growth increases the demand for milk due to the positive income
elasticity of demand. This coupled with growing population will increase the demand
for milk in the coming years. The rapid increase in demand for milk and dairy
products in urban areas lead to increasing urban dairy farms. The disposal of waste
from these urban firms raises environmental concerns. Moreover, these urban farms
affect the livelihood of small farmers. Due to economies of scale, the farms can sell
milk at prices cheaper than that of small farmers [4]. With increasing growth in the
organized sector, there are negative effects on small and marginal farmers.
The average per capita consumption of milk and milk products by rural areas (Rs.
56) is very less than that of urban areas (Rs. 97) [5]. Despite the rural areas being the
main producer of milk, the per capita consumption is very less.

References
1. http://www.fnbnews.com/Top-News/Indian-share-in-global-milk-production--17-
Undergoing-transformation
2. https://www.yesbank.in/pdf/dairy_farming_in_india_a_global_comparison.pdf
3. https://www.ciwf.org.uk/media/5235182/Statistics-Dairy-cows.pdf
4. http://www.cibtech.org/J-FOOD-AGRI-VETERINARY-
SCIENCES/PUBLICATIONS/2013/Vol_3_No_2/JFAV...01-
002...Dr.%20Serma...Analyzing%20The%20Cost...Tamilnadu.pdf
5. http://www.hindustanstudies.com/files/dairysept09report.pdf