Thursday, December 1, 2016

Dairy Pulse ( 16th to 30th November 2016) : A Snapshot of Indian and Global dairy industry) 26th Dairy pulse.

Dear friends,
Last one and a half fortnight has been a roller coaster ride for every one. Demonetisation can surely be quoted as a major paradigm shift in Indian dairy industry. We have already shared our views on demonetisation earlier with you and the same can be downloaded from the following link:

Demonetisation and Future of Indian Dairy Industry :
Other interesting news was about launch of the website

This website is going to be another game changer for Indian dairy industry as it brings the concept of recording , tracking and transaction of livestock gem plasm as well as livestock itself. In due course of time this website would integrate all the information about semen, embryos and animals available with their details at different parts of the country including the imported stock. It will break the information assymetry and thus take Indian dairy farmers to not only improve their breeds at local level but harness the high potential of  breeding collaterals available at different parts of the country.
Last fortnight finished with regional workshop organized by IFCN at Anand in collaboration with Amul, Elanco and Danone. It was attended by who's who from Indian dairy industry.
On 28th November a report on Global Dairy developments and Perspectives for Sustainable Dairy Farming in India (A joint publication of  IFCN, Germany and Suruchi Consultants , Noida) was launched in the presence of Mr R S Sodhi (Amul), MrShraman (Elanco), MrTorsten and Mr Anders (IFCN) and MrKuldeep Sharma (Suruchi Consultants) . On Nov 29th a workshop was held to present the future perspective of Indian dairy industry viz a viz the global scenario. The key findings of the workshop have been summarized in the first news of our newsletter in the press note.
The complete report could be downloaded from the following link 
Download report on Global Dairy Developments and Perspectives for Sustainable Dairy Farming in India : 

( You may also request for a hardcopy of the report by sending a mail at by giving your complete correspondence address).
Next 4 months are very critical for the dairy industry and there is a great dilemma in the  minds of the stakeholders. Looking at current scenario the fall in milk price in most part of the country is inevitable and in certain states it is becoming visible also. The Rupee devaluation is also continuing leading to better exports realization. Now under this circumstance the questions which might be coming in the minds of dairy stakeholders might be  :

a. Shall we  create stocks for next summer in India to leverage low milk price in this winter in the wake of currency shortage ? or
b. Shall we focus on exports of dairy commodities and leverage the low price in India and increasing prices of International markets ?

In both the cases Banks will have to come in a big way to support the dairy industry by making cash available to them or enroll their farmers in the banking net. The banks will also have to reduce rates for meeting working capital requirements as well as packing credit requirements for protecting the industry as well as farmer's interest.
We are planning to organize a round table on Impact of Demonetisation on Indian dairy industry and seeking partnerships with like minded organizations and stakeholders. This event will be organized sometime early next year and we will keep you posted on the same.
What I can see clearly is a seamless low of money from consumer to farmer through banks in very near future.
I could also see the middle men turning into responsible traders by making payments to the farmers through bank and creating a more transparent dairy eco system ( if they really want to survive).

Comments and suggestions from the dairy fraternity is welcome.
Wishing you a happy e reading.
with best regards
Kuldeep Sharma
Chief Thinking Officer