Thursday, 21 January 2021 08:55

Oz farmers eye Indian milk market ties

Written by  Staff Reporters
A typical Indian family dairy farm in Punjab. A typical Indian family dairy farm in Punjab.

The Australian dairy industry is exploring long-term strategic partnerships with the world’s biggest producer of milk – India.

Dairy Australia says consumer demand in India for dairy milk products is expected to outpace supply until 2035, creating huge demand for value-added milk products.

It has been awarded a $76,400 grant under the Agricultural Trade and Market Access Cooperation (ATMAC) program to build a long-term engagement plan with Indian dairy sector counterparts.

The ATMAC project will support long-term strategic engagement between the Australian and Indian dairy sectors to explore ways to improve collaboration and identify mutually beneficial opportunities.

The project is taking a long-term focus and aims to position Australian dairy farmers, processors and supply chains are preferred partners for their Indian counterparts into the future.

Dairy Australia managing director David Nation said that the agreement will provide long term opportunities for the industry.

“Dairy Australia recognises the importance of long term partnerships in trade that include both government and industry support,” he says.

“The ATMAC project is timely to help focus Australian dairy businesses on possible areas for cooperation and relationships.

“Joint activities are supporting trade to India, with comprehensive research into the Indian dairy market to gain an understanding of India’s supply chain, state of the industry, key stakeholders and consumer behaviours.

“Australian industry participants are much better informed of Indian production systems and the market and the project will support a series of senior level meetings with key Indian dairy industry stakeholders,” Nation said.

India is the biggest producer of milk globally grossing slightly over 22% of total world production (twice that of the US), India has around 3.6 million dairy farmers milking around 300 million cows.

Most farms have only one to two cows with the odd larger farm pushing up the average.

Milk is mostly consumed by the farmer and his family. The national milk processing sector is small but growing.

Milk Growth

In 2018, India produced 186 million tonnes of milk, which was 22% of that year's global total milk production of 843 million tonnes, according the UN's Food and Agriculture Organisation (FAO).

Milk output grew 5% over 2017 levels in India, while it was just around 1% in the European Union and the US.

The last five decades have seen the tide turning for India, which accounted for just 5% of the world's milk production in 1970. India is expected to produce 300 million tonnes of milk by 2022.

Milk consumption is also increasing. India's biggest milk-producing states, according to 2017-18 data from the National Dairy Development Board, are Uttar Pradesh, Rajasthan, Madhya Pradesh, Andhra Praddesh and Gujarat.

More like this

Farmer confidence riding high in Oz

With farmer confidence and consumer optimism high, much of Australia’s dairy industry has been riding on a wave of positivity over the past few months, according to Dairy Australia’s June 2021 Situation and Outlook report.

Steady as she goes

As now widely reported, dairy markets are in a somewhat balanced phase.

Oz milk production to drop 5%

International dairy commodity prices have recovered markedly in recent months, as global supply and demand slowly balance, according to Dairy Australia’s latest Situation and Outlook report.

National

Why should we do more?

OPINION: Managing our dairy sector's impacts inevitably attracts a range of views. Should we do more, less or stay the…

Cattle sale with a difference

Innovation, loss and resilience have brought the Singh family to the point where it is poised to honour its patriarch,…

O'Connor's overseas odyssey

Agriculture Minister Damien O'Connor continued his overseas odyssey in the past week with multiple meetings in the US, Europe and…

Machinery & Products

Protective tint

Now available in New Zealand, Wildcat Static Cling Tint adds a protective layer to the windows of your tractor, harvester…

New owner for stoll

German company Stoll, the well-known manufacturer of tractor front loaders and attachments that claims to be the second largest producer…

Fert spreaders get a revamp

Kuhn has updated its MDS range of fertiliser spreaders, giving farmers more options to upgrade machines as situations change, rather…

Mowers spring into action

With spring upon us, thoughts turn towards shutting up paddocks for conservation and maybe the purchase of new machinery to…

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Feeling the heat

US dairy farmers have a new threat to their business - heat waves.

Class action

The news has gone from bad to worse for a2 Milk - the company Synlait had hitched its wagon to.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter