Report on Ghee Market in India 1. 2. 3. 4. 5.

Introduction Types Of Ghee Milk Production and Consumption Market Players Conclusion

Introduction- India is the worlds largest producer of dairy products by volume and has the worlds largest dairy herd. The country accounts for more than 13% of worlds total milk production and is also the worlds largest consumer of dairy products, consuming almost all of its own milk production. Dairying has been regarded as one of the activities that could contribute to alleviating the poverty and unemployment especially in the droughtprone and rainfed areas. In India, about threefourth of the population live in rural areas and about 38% of them are poor. Therefore among these people, as well as the large vegetarian segment of the countrys population, dairy products provide a critical source of nutrition and animal protein to millions of people in India.

Source- http://www.indexmundi.com/agriculture/?commodity=milk&graph=production India stands 1st in milk production. Prior to year 2000, India was not noticed by most international dairy companies, as the country was neither an active importer nor an exporter of dairy products. Although India has imported some milk powder and butter oils as aid between 1970 and 1990, exports from India were insignificantly small and it was not until 2000 onwards, when Indian dairy products started having more presence in global markets.

Milk production in India has developed significantly in the past few decades from a low volume of 17 million tons in 1951 to 121 million tons in 2011. Currently, the Indian dairy market is growing at an annual rate of 7%.

Source- NDDB Despite the increase in production, a demand supply gap has become imminent in the dairy industry due to the changing consumption habits, dynamic demographic patterns, and the rapid urbanization of rural India. This means that there is an urgent need for the growth rate of the dairy sector to match the rapidly growing Indian economy.

North, south and west India contributes more than 80% in milk production. UP, AP, MP, Rajasthan, Punjab, Gujarat, Maharashtra, Karnataka and Bihar are milk surplus states. In northern India, buffaloes milk production is higher than southern India while southern states produce cow milk.

Statewise Milk Production in India

Haryana 5%

Uttar Pradesh 17%

Karnataka 4% Madhya Pradesh 6% Punjab Maharashtra 8% 7%

Rajasthan 11%

Percapita Milk Availibility

Kerala

Nagaland

Punjab

West Bengal

AP

Chhattisgarh

Chandigarh

Daman & Diu

Maharashtra

Meghalaya

Axis Title

Lakshadweep

Jharkhand

Haryana

Assam

Sikkim

J&K

Tripura

Below are some key statistics for Indias dairy industry: Key Statistics: Annual Milk Production (201011) Annual Export Volume (20089) Share of world dairy production (2010) Share of world trade in dairy products (2003) Milking herd size Number of milk producers cooperative unions Number of local dairy cooperatives Number of state cooperatives 10 Per capita consumption (Drinking milk) 11 Estimated percentage of dairy farmers in organised sector 12 % of dairy produce consumed by unorganised sector 13 Dairy industry workforce 14 121 Million Tonnes 70,790 Tonnes 15% 0.3% 115.5 million 170 96,000 15 250g/day 4050% 65% 75 million women/ 15 million men

The industry had been recording an annual growth of 4% during the period 1993-2005, which is almost 3 times the average growth rate of the dairy industry in the world. Milk processing in India is around 35%, of which the organized dairy industry account for 13% of the milk produced, while the rest of the milk is either consumed at farm level, or sold as fresh, non-pasteurized milk through unorganized channels.

Source- KPMG Report There is different milk products mix in Indian house hold consumption. % wise category is below here. Milk Product Mix in India

In India, 46% is used as fluid milk while 27.50% is used in ghee preparation. Butter and yoghurt market is growing rapidly in urban areas.

In commercial level, 66% milk is used by volume while value wise fat contribution is higher than any other product. Milk User in India Small Organized Sector (In million US$ mn)

Source-Cygnus Types of Ghee- Ghee are a Indian clarified butter without any solid milk particles or water. Ghee is used in India and throughout the South Asia in daily cooking. Good quality ghee adds a great aroma, flavor and taste to the food. Ghee can be great assets for people who are on low fat diet since even a lower quantity of ghee can add lot of flavor to the food than any other oil or fat products. According to the ancient Ayurveda, a moderate amount of ghee is the best cooking oil. Traditionally, ghee is made from butter churned out of Indian yogurt (curd). It is boiled and constantly stirred until the all the water is evaporated then, further heated to get a pleasant flavor, slightly cooled and filtered through muslin to remove sediment. Cow ghee is yellow in color, and buffalo ghee has off-white cream color. Ghee made from other animal milks, such as sheep milk, mare milk, are valued for their unique health benefits In India there are basically two type of ghee. 1. Cow Ghee 2. Buffalo Ghee Some time to differentiate buffalo ghee to cow ghee, danedar name is used. The basic difference in above mentioned ghee is of Vitamin A. Cow Ghee has more Viatmin A than Buffalo ghee and its colour is also yellowish. But In eastern India, brown colour ghee is very popular that is called cooking ghee or Pucca Ghee. It is burnt more than any other normal ghee due to this a peculiar type of aroma develops and brown color come out.

Source- http://dahd.nic.in/ch52/chap5.2.htm Chemical composition of cow and buffalo milk is above. Due to high fat content and deciding factor or rate of milk, buffalo milk is considered best for commercial level but both animal milk is almost same. In India due to religious reasons, cow milk is preferred and same

Ghee Production and Consumption- North and South India are the major contributor in Milk production. Eastern part has minimal contribution. As far as buffalo ghee is concerned, Northern India is major contributor while in pure cow ghee production, south and western part of India play major role. In northern India , cow ghee is not available at commercial level due to no separate collection of cow milk at this area as well as buffalo population is more than cow. As per some News India Produces 9,00,000 tones Ghee per annum out of that 1,00,000 tones per annum is packed and rest of it is being sold in loose form. (Source:- http://www.indiadairy.com/info_milk_products_dairyproducts.html)

Amul at present enjoys a 20 per cent market share in the packaged ghee market, which is estimated to be around 100,000 tonnes per annum. Banking on the new avatar of ghee, the company is eyeing a growth of 20-22 per cent in the segment this fiscal, beating its five year compounded annual growth rate

(CAGR) of 10-12 per cent. The industry CAGR, as Sodhi points out, is way below at 4-5 per cent. Ghee demand growth is always in line with growth in milk production. (source-http://www.business-standard.com/india/news/amul-takes-ghee-to-young-india/439695/)

Its this attitude towards ghee, used in a variety of foods and sweets in daily cooking, that has made Rajasthan one of the largest ghee-consuming markets in the country. As Mr Chandramogan estimates, in an annual market for ghee of Rs 4,000 crore, both branded and unbranded, Rajasthan alone consumes Rs 400-500 crore worth of branded ghee. Hatsun, the largest private sector diary in the country, which has been supplying ghee to branded players, wanted a piece of the action and launched its own brand of ghee in the Rajasthan market. With ghee made from cows milk as its USP, Hatsun forayed into the market three years ago and today sells 125 tonnes or Rs 3 crore a month in Rajasthan, competing with the likes of Amul, Krishna and Paras. Even though buffalo milk has a higher fat content than cows milk (6.5 per cent to 8 per cent against 4 per cent), because of the religiosity associated with cows milk, the latter is preferred in many markets, he points out. It tastes better as well, he adds (Source -http://www.thehindubusinessline.com/todays-paper/tp-marketing/article1062124.ece)