Why Dairy Export Holds a Promising Future in India?

India has one of the world’s biggest and most traditional dairy industries. From ghee and paneer to curd, Indian dairy products are known for their purity and rich taste. These products are now gaining popularity in many other countries, especially in Asia, Africa, and the Middle East. Government support, new technologies, and rising global interest are helping the Indian dairy sector expand its reach. With these strong foundations, India is moving closer to becoming a major exporter of dairy products.

In this blog, we’ll explore why India’s dairy exports have a bright future and what’s driving this exciting growth.

Indian’s Leadership in Global Milk Production

• India holds the position of being one of the world’s largest milk producers and contributes to more than 24% of the global milk production. This achievement outlines the country’s significant role in the global dairy industry. The Indian dairy sector offers a wide array of products, such as milk, ghee, paneer, curd, and butter, which caters to both domestic and international consumption. Dairy farming is deeply ingrained in Indian culture and traditions, with milk and its derivatives playing a vital role in daily diets and religious practices.

Contribution of the Dairy Industry to the Rural Economy and Employment

Here is how the rural dairy ecosystem supports and enhances Indian’s dairy exports:

• Rural Livelihoods Fuel Export Capacity: India’s dairy industry is deeply rooted in rural communities, which provides a stable income source for millions of small and marginal farmers. This widespread participation ensures a consistent supply of milk, which forms a base for both domestic consumption and international export. The surplus milk production, which results from efficient rural dairying, positions India to meet international demand for dairy products.
• Employment Generation Supports Export Logistics: The dairy sector’s vast employment opportunities, spanning production, processing, and distribution, have created a skilled workforce capable of handling the complexities of dairy exports.
• Economic Growth Drives Investment in Export Infrastructure: The significant contribution of the dairy industry to India’s agricultural GDP attracts investments in modernizing facilities and technologies. Such economic growth facilitates the development of export-oriented infrastructure, which includes advanced processing units and quality assurance systems. 
• Infrastructure Development Enables Global Reach: Investments in rural infrastructure, such as milk collection centres and cold storage facilities, are important for preserving product quality during transportation. These developments ensure that Indian dairy products meet international standards, which enhances their competitiveness in global markets.

Why Dairy Export Holds a Promising Future in India?

The following details include the factors contributing to the promising future of Indian dairy exports:

• Heavy Milk Production: India holds the position of the world’s largest milk producer, which is due to its vast population of dairy animals and improved farming practices. This surplus production provides a strong foundation for meeting both domestic needs and international demand for dairy products.
• Diverse Product Portfolio: The Indian dairy industry offers a wide range of products, from traditional items like ghee and paneer to value-added products such as skimmed milk powder and casein. This diversity enables India to cater to various international markets with different preferences.
• Strategic Geographical Advantage: India’s proximity to regions with high dairy demand, such as the Middle East and Southeast Asia, facilitates efficient export logistics and quick delivery times. This enhances its appeal as a dairy supplier.
• Government Support and Incentives: The Indian government has implemented policies and schemes to support dairy exports, which include infrastructure development and quality assurance programs. These initiatives aim to enhance the global competitiveness of Indian dairy products.
• Technological Advancements: Adoption of modern technologies in dairy farming and processing, such as automated milking systems and cold chain logistics, has improved product quality and shelf life. This also meets international standards and consumer expectations.
• Rising global demand: There is an increasing global appetite for dairy products, typically in emerging markets. India’s ability to supply a variety of dairy products positions it well to capitalize on this growing demand.
• Competitive Pricing: Cost-effective production methods in India result in competitively priced dairy products. This makes them attractive to price-sensitive markets without compromising on quality.
• Cultural and Traditional Appeal: Indian dairy products, which are rooted in rich cultural traditions, offer unique flavours and qualities. This resonates with global consumers who seek authentic and diverse food experiences.

Dairy Product Varieties with Export Potential

These products cater to various international markets, which reflect India’s rich dairy heritage and evolving production capabilities. Here are the key dairy products from Indian that have export potential:

Dairy Procurement Options for Export

Here are the dairy procurement options for export:

• Village-Level Collection (VLC) System

Milk is collected directly from farmers at village centres using Automated Milk Collection Units (AMCU) and Digital Milk Collection Units (DPMCU). This ensures transparency in quality and pricing, benefiting both farmers and exporters. The National Dairy Development Board (NDDB) supports this model to enhance rural milk procurement infrastructure.

• Franchise-Based Procurement

Exporter partners and franchised milk collection centres are equipped with chilling and testing facilities. Milk is collected, tested for quality, and then transported to processing units. This model ensures consistent quality and streamlined logistics.

• Supplier-Based Procurement

Exporters collaborate with established suppliers who have their chilling infrastructure. Suppliers collect milk from various vendors, ensuring quality compliance before delivery. This approach offers scalability and reliability in supply.

• Contract Farming

Formal agreements are made between exporters and farmers to supply a specific quantity and quality of milk. This model provides farmers with assured markets and exporters with a consistent supply.

• Digital Procurement Systems

Implementation of digital platforms allows real-time tracking of milk quality and pricing. Farmers receive instant updates via SMS, enhancing transparency and trust. Himachal Pradesh is set to roll out such a system by March 2025.

• Cooperative Societies

Farmers form cooperatives to collectively sell milk, eliminating middlemen. This structure ensures fair pricing and empowers rural communities. The Haryana Dairy Development Cooperative Federation is a notable example.

• Private Procurement Services

Companies like MilkLane offer end-to-end procurement solutions, ensuring high-quality, contaminant-free milk. They utilize advanced testing and chilling infrastructure to maintain standards.

• Dairy Export Zones (DEZs)

Proposed zones focus on integrating infrastructure like cold chains, processing units, and logistics to boost exports. States like Uttar Pradesh, Gujarat, and Maharashtra are potential candidates for DEZs.

• Government Initiatives

Schemes like the National Programme for Dairy Development (NPDD) and Dairy Entrepreneurship Development Scheme (DEDS) aim to strengthen procurement infrastructure and support dairy entrepreneurs.

• International Protocols

India has signed export protocols with countries like Russia, opening new markets for dairy products. These agreements emphasize quality standards and traceability.

Choosing the Right Dairy Product Supplier

Selecting the right diary product supplier is crucial for ensuring product quality that meets international standards and builds a successful export business. Here are the features to consider when choosing a dairy product supplier:

Compliance with Food Safety Standards

• Ensure the supplier adheres to international food safety protocols like HACCP (Hazard Analysis and Critical Control Points) and ISO 22000.
• Compliance with India's FSSAI (Food Safety and Standards Authority of India) regulations is mandatory for domestic and export operations.
• These certifications guarantee that the supplier maintains high hygiene and safety standards throughout the production process.

Necessary Certifications and Documentation

Having proper documents ensures compliance with international trade regulations and smooth customs clearance. Verify that the supplier possesses all required certifications that are mentioned in the following:

• FSSAI License
• Importer Exporter Code (IEC) from the Directorate General of Foreign Trade (DGFT)
• Registration with the Agricultural and Processed Food Products Export Development Authority (APEDA)

Quality Control Measures

Inquire about the supplier's quality assurance practices, which include regular testing for contaminants and adherence to Good Manufacturing Practices (GMP). A robust quality control system minimizes the risks of product recalls and maintains consumer trust.

Efficient Supply Chain and Logistics

Assess the supplier's ability to deliver products on time and maintain the cold chain during transportation. Reliable logistics are essential to preserve product freshness and meet delivery schedules.

Experience in Export Markets

Choose suppliers with a proven track record in exporting dairy products to your target markets. Experienced exporters are familiar with international regulations and can navigate complex export procedures effectively.

Transparent Pricing and Payment Terms

Discuss pricing structures, payment terms, and any additional costs upfront. Transparency in financial dealings fosters a trustworthy business relationship.

Technical Support and Customer Service

Opt for suppliers who offer technical assistance, such as product customization and troubleshooting. Responsive customer service ensures prompt resolution of any issues that may arise.

Packaging and Labelling Compliance

Ensure the supplier complies with the packaging and labelling requirements of the destination country, which includes language, nutritional information, and expiration dates. Proper packaging preserves product quality and meets consumer expectations.

Sustainability Practices

Consider suppliers committed to sustainable practices, such as environmentally friendly packaging and ethical sourcing. Sustainability initiatives can enhance brand image and appeal to eco-conscious consumers.

References and Reputation

Request references or case studies from the supplier's existing clients. A reputable supplier with positive feedback is more likely to meet your business needs effectively.

Top 10 Dairy Products Exporters in India

Here are the 10 prominent dairy exporters from India:

• Amul (Gujarat Cooperative Milk Marketing Federation Ltd.)

Amul stands as India's largest dairy exporter, holding the "Trading House" status. It has been honoured with the APEDA Award for its significant contributions to dairy exports.

• Mother Dairy

It is established by the National Dairy Development Board and plays a major role in the Indian dairy sector. Mother Dairy supplies a wide range of products both domestically and internationally.

• Parag Milk Foods Ltd.

Parag Milk Foods is known for brands like Gowardhan and Go Cheese. It has a strong presence in the export market, which offers products such as cheese, ghee, and milk powder.

• Heritage Foods Ltd.

Heritage Foods was founded in 1992 and has expanded its reach to international markets by exporting products like milk, curd, and flavoured milk.

• Saanvi Inc.

Saanvi Inc. is an emerging exporter specializing in dairy products, which focuses on quality and timely delivery to meet global standards.

• Bhim Sain & Sons

Bhim Sain & Sons exports a variety of dairy products with decades of experience and maintains a reputation for quality and reliability.

• Namaste India Milk

This company offers a diverse range of dairy products and has been expanding its export footprint, which emphasizes freshness and quality.

• Behal International

Behal International is known for exporting dairy products like ghee and milk powder, which caters to markets in the Middle East and Southeast Asia.

• Aniv Enterprises

Aniv Enterprises focuses on exporting dairy products, which ensures adherence to international quality standards and timely shipments.

• Good Luck Agro

Good Luck Agro has established itself in various international markets and specializes in dairy exports by offering quality products and reliable services.

India’s dairy industry is on the rise as a global export leader. With high milk production, diverse products, and strong rural support, it has a unique edge. Backed by government policies, technology, and global demand, the future looks bright. By focusing on quality, sustainability, and branding, Indian dairy can offer the world not just food, but a taste of tradition. Contact Online Legal India for help with FSSAI, IEC, or APEDA registration for your dairy export business.