Shah highlighted the adaptability of the dairy sector, which has allowed it to thrive despite challenges like fluctuating raw milk prices and inflationary pressures. India’s milk production reached 239.30 million tonnes in 2023-24, reflecting a 3.78% growth, albeit slower compared to previous years.

Shah attributed the slowdown in production growth to rising feed costs, supply chain disruptions, and limited access to modern farming techniques. Despite these hurdles, India’s dairy sector has outpaced global growth rates, recording a Compound Annual Growth Rate (CAGR) of 10.7% between 2018 and 2023, with projections indicating a CAGR of 14% from 2024 to 2032.

Parag Milk Foods has capitalized on this momentum through product diversification and innovation. While traditional offerings like Gowardhan Ghee and Go Cheese remain household staples, premium products such as Pride of Cows have gained popularity among urban consumers seeking purity and traceability. Additionally, the company’s Avatar whey protein brand has tapped into the growing market for health-focused, functional foods.

Fluctuations in raw milk prices continue to pose challenges for the industry. Shah revealed that Parag Milk Foods mitigates these risks through long-term farmer partnerships, fair pricing mechanisms, and advanced supply chain technologies like SAP HANA, which optimize procurement and reduce wastage.

Technology is playing an increasingly critical role in boosting efficiency and scalability within the dairy industry. Tools such as predictive analytics, IoT-enabled sensors, and AI-driven farm management systems are helping improve milk yields, streamline supply chains, and minimize environmental impacts.

With growing consumer demand for adulteration-free dairy products, Parag Milk Foods has implemented rigorous quality control measures across its supply chain. Shah emphasized the importance of sustainable farming practices and transparency in building consumer trust.

Despite broader challenges in the FMCG landscape, India’s dairy sector remains a strong performer, driven by innovation, adaptability, and a sharp focus on consumer needs. As demand for value-added and health-centric dairy products continues to rise, the sector is well-positioned for sustained growth in the coming years.

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Nova’s Lassi is a refreshing drink crafted from yoghurt, water, and natural flavourings, available in both sweet and savoury variants. With options like rose water and fruit infusions, the drink combines traditional appeal with a modern twist, making it ideal for the festive season.

Chhaach, often called “Grandma’s probiotic,” offers a lighter, thinner alternative to Lassi. Made from live-culture Dahi, it is enhanced with salt, roasted cumin, and optional spices such as ginger or coriander. This nutrient-rich beverage is known for supporting gut health, boosting immunity, and providing cooling relief, especially during India’s warm climate.

Ravin Saluja, Director of Sterling Agro Industries Ltd., highlighted the company’s dedication to delivering quality and authenticity, stating, “Our goal with the launch of Lassi and Chhaach is to provide consumers with authentic, high-quality dairy beverages rooted in tradition and packed with health benefits. As a leading dairy brand, we’re committed to offering fresh, delicious, and functional products, ensuring that these beloved drinks meet our rigorous standards.”

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To support its entry into the national capital, Nandini will transport 100,000 kilograms of milk daily from Karnataka to Delhi using a fleet of insulated tankers. The logistics will involve three 33-kiloliter tankers daily, with 25 vehicles rotating weekly to supply Delhi and parts of Haryana.

This marks Nandini’s first venture into North India, where it will compete with well-established brands like Amul, Mother Dairy, Madhusudan, and Namaste India.

In July 2024, Nandini achieved a record 10 million litres of daily milk procurement, surpassing previous milestones due to increased milk production in Karnataka. While Nandini is a leader in its home state, it trails the Gujarat Cooperative Milk Marketing Federation (Amul), which procures around 26 million litres of milk daily.

Nandini products are already available in parts of India, including Maharashtra (Mumbai, Nagpur, Pune, and Solapur), Goa, Hyderabad, Chennai, and Kerala. Internationally, the brand has a presence in Malaysia, Vietnam, Singapore, the UAE, and the United States.

Nandini’s entry into Delhi signals a significant push for market expansion beyond its traditional strongholds. With a strategic focus on fresh dairy offerings and logistics capabilities, the brand aims to carve out a share in the competitive North Indian market, potentially reshaping the dairy landscape in the region.

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One major worry is the disparity in government support for dairy farmers in India versus Europe. In the European Union, larger farms benefit from subsidies based on net output, giving them a significant competitive edge. In contrast, India’s government assistance is primarily directed towards smaller farmers, placing the domestic sector at a disadvantage.

Drawing comparisons to the edible oil sector, the dairy industry points out that India was largely self-sufficient in edible oils until the 1990s. However, increased import reliance eventually led to import dependence, which, they warn, could similarly impact the dairy sector if foreign dairy products flood the market.

Commerce and Industry Minister Piyush Goyal recently addressed the concerns, reiterating that dairy-related duty concessions are not included in any current Free Trade Agreements (FTAs). Goyal emphasized that the structural differences in farming practices and livestock density make it challenging to create a level playing field for Indian and foreign dairy producers.

Industry advocates continue to urge the government to safeguard the domestic dairy sector, ensuring that smaller Indian farmers remain protected from the competitive pressures of global giants.

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The move follows Amul’s successful entry into the U.S. market in March, where it introduced four milk variants to cater to the Indian and broader Asian diaspora. “We will be launching fresh dairy products in Europe by month-end, starting with Spain,” Mehta announced during the annual convocation at the Indian Institute of Foreign Trade.

While the Indian dairy industry faces non-tariff barriers in several countries, Mehta emphasized the importance of support for reducing these obstacles to boost exports. He highlighted that dairy production is a key source of income for over 100 million Indian families, mostly small and marginal farmers.

Amul has grown significantly, achieving an annual turnover of ₹80,000 crore and securing a reputation as one of the world’s strongest dairy and food brands. The entry into Europe marks another major step in its strategy to serve the global market while maintaining strong ties to its farmer-owned cooperative roots.

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Jayen Mehta, managing director of the Gujarat Cooperative Milk Marketing Federation (GCMMF), expressed pride in this development, stating, “It is a proud moment for us as we have entered mainstream retail in the US.” The fresh milk is now offered in gallon packs (3.78 liters), aiming to cater not only to the Indian community but also to a broader audience of American consumers. Notably, Costco typically sells its own milk brand, Kirkland Signature, which adds an interesting competitive dynamic.

Mehta highlighted that the unique 6% fat formulation of Amul Gold has garnered attention from both Indian expatriates and local consumers. Following a successful launch in May, which saw Amul fresh milk welcomed by various supermarket chains serving the Indian community, the partnership with Costco aims to enhance product availability across the US. Initially rolled out to Costco stores on the East Coast, Amul plans to expand its reach to all 750 stores of the global retailer.

In addition to fresh milk, Amul is set to introduce a range of other dairy products, including curd, buttermilk, and fresh cream, to meet the growing demand from the Indian diaspora. This strategic move underscores Amul’s commitment to expanding its footprint in the international market while maintaining its traditional offerings.

Amul’s collaboration with MMPA, one of America’s largest dairy cooperatives, has allowed the brand to leverage superior technology for its fresh milk products, ensuring that its offerings remain consistent with those popular in India. Founded in 1916, MMPA serves dairy farmers in several Midwestern states and includes multiple processing facilities, solidifying a strong partnership that honors Amul’s rich heritage as India’s “Milkman,” established by the visionary Dr. Verghese Kurien.

With these developments, Amul is poised to make a significant impact on the US dairy market, bringing a taste of India to consumers across the ocean.

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By the end of September, European butter was trading at a record $8,706 per metric ton, an 83% increase compared to the previous year. While large food companies secured their butter supplies ahead of the holiday production season, small producers are expected to feel the brunt of the price hike, according to Paul Boivin, director of the French Bakers and Pastry Federation (FEB).

Global milk production has struggled to keep pace with growing demand. Although there was a slight rebound in 2024, the supply remains tight. Dairy farmers, especially in Europe, the U.S., and New Zealand, have been discouraged by low prices and high feed costs, leading to reduced milk output. Producers are opting to allocate more milk to cheese, which is more profitable, leaving butter production lagging behind.

Additionally, the spread of diseases like bluetongue and Epizootic Hemorrhagic Disease (EHD) in Western Europe is threatening to reduce milk supply even further, exacerbating the already strained butter market.

As the global butter market is expected to reach $42 billion in 2024, experts predict that prices may ease as production ramps up. However, it may take several months before consumers and small producers see any relief.

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The state-of-the-art plant features five production lines dedicated to both natural and processed cheese. It has a capacity of 6,000 tons per year for natural varieties like cheddar and mozzarella, alongside a larger capacity of 10,000 tons for processed cheese. The facility will primarily concentrate on manufacturing The Laughing Cow cheese products, marketed locally under the “Britannia The Laughing Cow” brand.

Abhishek Sinha, CEO of Britannia Bel Foods, remarked on the launch: “This cutting-edge facility combines Bel Foods’ global expertise with Britannia’s manufacturing prowess. We are committed to offering Indian consumers an unparalleled cheese experience, reflecting their evolving tastes.”

The facility’s inauguration comes nearly two years after the formation of Britannia Bel Foods, following Bel’s acquisition of a 49% stake in Britannia’s dairy arm for $32.1 million. This joint venture aims to further strengthen the cheese business in India with a fully integrated dairy program.

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The expansion is a key move in Kisanserv’s plan to diversify its product offerings, aiming to become a one-stop shop for fresh daily essentials. This partnership will also support the company’s ambitious goal of scaling up to 250 stores and achieving Rs 500 crore in revenue over the next four years.

Niranjan Sharma, CEO of Kisanserv, expressed excitement about the venture, stating, “Our customers have been asking for dairy products alongside our fresh produce. Partnering with Milky Mist allows us to meet this demand while enhancing convenience and driving growth.”

Kisanserv will offer these dairy products at competitive prices, further elevating the shopping experience for its customers and strengthening profit margins. Both Kisanserv and Milky Mist have set aggressive growth targets, and this partnership is expected to benefit both brands significantly in the coming years.

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The new line includes yoghurt cups with 20 grams of protein and drinks with options of 15, 20, and 30 grams. The company previously offered a 20-gram protein drink under its Complete line, which has now been rebranded as part of the Chobani High Protein range.

“The desire for high-protein, lower-sugar offerings has shifted from the fitness community to mainstream consumers,” said Niel Sandfort, Chobani’s chief innovation officer. “Chobani High Protein products provide an affordable, tasty solution with a variety of flavours and protein levels to cater to a larger audience.”

Chobani emphasized that its new line is made from natural ingredients, with no added sugars, protein powders, or preservatives, setting it apart from other high-protein options. The combination of protein and vitamin B12 is designed to boost energy, curb hunger, and support muscle health.

Chobani High Protein will be available in flavours like strawberries and cream, vanilla, tropical punch, and cookies and ream. The yoghurt cups are hitting shelves now, with nationwide distribution expected later this fall, while the drinks are set to debut in January 2025.

Chobani’s move follows a period of experimentation with categories like oat milk, cold brew coffee, and creamers. However, the company is now refocusing on its core yoghurt business, valued at over $1 billion, with innovative offerings like Chobani Creations and Zero Sugar drinkable yoghurt gaining traction.

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