Inside Milk
India: from dairy shortage to milk surplus
The Indian dairy sector has been making significant strides for years. When Operation Flood was launched in 1970, which may have been one of the most ambitious dairy programs ever, the country turned into one of the largest milk producers in the world. India has thus grown from a country with a dairy shortage to a country with a milk surplus. How does it now want to take the step to export?
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In the period between 2016 and 2019, milk production in India grew by an average of 6,4% annually. In the 2018/2019 season, the milk supply amounted to no less than 187,7 million tons. And that means India largest milk producing country in the world, accounting for approximately 22% of global production. For comparison: this is more than the entire European Union produces in one year (167 million tons) and the United States does not exceed 98 million tons. The Indian dairy sector is worth more than $128 billion.
Impressive figures, but in order to join the major milk exporting countries (one of the ambitions of the Indian government), India must increase milk production much further. The availability of milk in the country amounts to 394 grams per capita. This number is also considerably higher than the world average, which is 302 grams. It means that residents consume the majority of the milk produced.
Becoming a dairy exporter
The country currently exports approximately 51 million tons, compared to approximately 85 million tons in the European Union. The growth in dairy exports will not come from a campaign to encourage more residents to become farmers. The dairy sector is already highly valued in India: the country now has more than 70 million dairy farmers (out of 1,3 billion inhabitants).
According to analysts, the solution lies in the returns that farmers achieve. The most recent data shows that indigenous cows produce 'only' 3,01 kilos per cow, per day. While the yield of exotic cross-bred cows is 7,95 kilos per cow, per day. In short: a native herd produces 1.099 kilos of milk per cow per year, while a cross-bred herd easily produces 3.073 kilos of milk per year.
It is therefore not surprising that the Indian government is fully committed to crossbreeding different cow breeds. IVF, embryo transfer process and artificial insemination have proven to be particularly popular. Millions of artificial inseminations will be carried out in the coming years and this should lead to a significant increase in the number of highly productive female calves. All in all, it should ensure that average productivity increases from 1.861 kilos per cow annually to more than 3.000 kilos per cow. It remains to be seen whether the country will immediately find enough buyers.