Indian Dairy Industry- Swot

Indian Dairy Sector- Overview & gussy up post byadminon Tuesday, July 31, 2012 Leave a Comment inSh atomic number 18 Import of primaeval items on the increase to meet shortage Import of dairy items during April 2009-February 2010 surged by a massive 275. 5 per cent to Rs 284. 88 crore. In April 2008-February 2009, importing of milk and other dairy intersection points was only Rs 75. 86 crore. The dairy products imports generally comprise skimmed milk powder and butter oil brought in by the National Dairy Development Board (NDDB)to meet deficitin milk procurement of its subsidiary, Mother Dairy, and other co-operatives.With their procurement lag behind, fluent milk supplies save been affected in some States. B L 180510 SWOT ANALYSIS OF INDIAN DAIRY INDUSTRY Strengths * regard profile Absolutely optimistic. * Margins Quite reasonable, even on packed liquid milk. * Flexibility of product mix Tremendous. With balancing equipment, you can keep on adding to your product li ne. * Availability of raw material Abundant. Presently, more than 80 per cent of milk produced is flowing into the unorganized sector, which requires proper channelization. * Technical manpower Professionally-trained, technical human resource pool, built over last 30 years. Weaknesses * Perishability pasteurization has overcome this weakness partially. UHT gives milk long life. Surely, many new processes get out follow to improve milk quality and extend its shelf life. miss of control over yield Theoretically, there is little control over milk yield. However, increased awareness of developments handle embryo transplant, artificial insemination and by rights managed animal husbandry pract ice-skating rinks, coupled with higher income to rural milk producers should automatically lead to improvement in milk yields. Logistics of procurement Woes of bad roadstead and inadequate transportation facility make milk procurement problematic. further with the overall economic improv ement in India, these problems would also get solved. snarly distribution Yes, all is not well with distribution. But then if ice creams can be sold virtually at every recession and corner, why cant we sell other dairy products alike? Moreover, it is only a matter of time before we see the increase of a cold chain linking the producer to the refrigerator at the consumers home Competition With so many newcomers entering this industry, competition is suitable tougher day by day. But then competition has to be approach as a ground reality. The market is king-size enough for many to carve out their niche. Opportunities Failure is never final, and success never termination. Dr Kurien bears out this statement perfectly. He entered the industry when there were only threats. He met failure head-on, and now he clearly is an example of never final result successIf dairyentrepreneursare looking for opportunities in India, the following areas must(prenominal) be tapped * Value addit ion There is a phenomenal range of mountains for innovations in product development, packaging and presentation. Given below are possible areas of value addition * Steps should be taken to introduce value-added products like shrikhand, ice creams, paneer, khoa, flavored milk, dairy sweets, etc. This entrust lead to a great presence and flexibility in the market line along with opportunities in the field of brand building. * Addition of cultured products like yoghurt and lay off lend further strength both in terms of enjoyment of resources and presence in the market place. A lateral view opens up opportunities in milk proteins through casein, caseinates and other dietary proteins, further interruption up merchandise opportunities. Yet another aspect can be the addition of infant foods, geriatric foods and nutritionals. Export potential Efforts to exploit export potential are already on. Amul is exporting to Bangladesh, Sri Lanka, Nigeria, and the Middle East.Following th e new GATT treaty, opportunities will increase tremendously for the export of agri-products in general and dairy products in particular. Threats Milk vendors, the un-organized sector Today milk vendors are occupying the pride of place in the industry. Organized dissemination of information about the harm that they are doing to producers and consumers should see a steady decline in their importance. The study of this SWOT analysis shows that the strengths and opportunities far outweigh weaknesses and threats.Strengths and opportunities are fundamental and weaknesses and threats are transitory. whatever investment idea can do well only when you have three essential ingredients entrepreneurship (the ability to take risks), innovative approach (in product lines and marketing) and values (of quality/ethics). The Indian dairy industry, following its delicensing, has been attracting a large number of entrepreneurs. Their success in dairying depends on factors such as an efficient yet e conomical procurement network, hygienic and cost-effective bear upon facilities and innovativeness in the market place.