Growth rate of India's milk supply remains extremely high

India remains the largest dairy producer in the world and is also able to achieve notable growth in 2016. Due to the increase, the volume even exceeds the limit of 155 million tons. However, a bottleneck for further growth is the production of roughage.

In 2016, the country again managed to achieve a production growth of 6,5 percent. Something that also succeeded in 2015, but before that the average growth rate per year was 4,5 percent. This means that the growth rate is twice as high as in the rest of the world. In 2, the supply will also break through the 2016 million tons. It means that 155 grams of milk per day is available to every consumer in India. 

EU does not have access to growing demand 
To put it in perspective. The European Union produced a total of 2016 million tons of milk in 152,18. The end of the milk quota gave the EU the opportunity to catch up on the dairy topper. Unfortunately, the EU does not have a growing population and, in line with that, a growing demand for dairy.   

Shri Radha Mohan Singh says that when it comes to the value of milk, it is the most important agricultural commodity. To achieve this goal, the country went through a so-called dairy revolution.

No artificially high milk price 
In order to help the dairy farmers in India and to boost milk production, the milk price is also closely monitored. Still, Singh insists that the country does not use a system to keep the milk price artificially high. 'However, the increase only benefits farmers who are hindered by the high production costs, including feed.' Higher milk prices mean that consumers have to pay more for dairy products. 

An important bottleneck for dairy farmers is a lack of roughage. This is due to a lack of land. The only way to increase production is to use better quality seed. In collaboration with the government, the dairy sector is trying to further increase the milk supply.   

Herman van den Pol

Herma van den Pol has been with us since 2011 Boerenbusiness and has developed over the years into a market expert Milk & Feed. In addition, she can be seen weekly in the market flash about the dairy market.

h.vandenpol@boerenbusiness. Nl

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