Here is why Milk is the new silk Wear it Now
While my new series of Podcast trending "Who moved my Cow " where cow is known for milk & milk products with me it is more than just a Holy Cow .Yes its COW amidst Covid on Work Gone first is causing Cracks on Wellbeing so first Check on Wellness syndrome followed with when you are well Create Opportunities Work ,Challenge Opportunities Win yes while the world is milking cow I Think as it has Ink in it just sharing thoughts on the spot .As you learn to MILK with me MILK as Make India Lead/let Karma Achieve !!!Here is Why milk is the New SILK-Success in Leading Karma until you continue following mantra in achieving Sustainbility Inspiring Leaderships Kingdom !
Notwithstanding the disruption in economic activity due to the coronavirus (COVID-19) pandemic and the closure of non-essential commercial establishments such as hotels, restaurants, bakery and sweet shops, theatres and malls, households in India would drive the consumption of milk and milk products in FY20-21, says a research note.
In the report, India Ratings and Research (Ind-Ra) says, "We expects the consumption demand for liquid or pouch milk, ultra-high temperature (UHT) milk and dairy products such as butter, clarified butter and cheese to draw sustained support from the household demand. We estimate manufactured dairy products output to grow 10% to Rs2,833.36 billion in FY20-21 from an estimated Rs2,565.89 billion in FY20, underpinned by domestic demand."
The household consumption demand for milk and milk products occupies the highest share in the private final consumption expenditure on food after ‘breads, cereals and pulses. The share of milk and milk products averaged 21% in household expenditure on food during FY11-12-FY17-18.
According to the ratings agency, milk procurement from small farmers who are outside the coverage of organised cooperative and corporate sector dairy network could be impacted due to the lock-down. However, it says, the cooperatives as well as the established private dairies continue to procure milk from their network farmers, with the surplus being converted into skimmed milk powder, ghee and other processed products, to be sold during the lean season.
Ind-Ra says it believes that the value-added dairy products (VAP) segment holds promise over the medium-term, as urbanisation, increase in disposable income and accompanying changes in lifestyle and dietary habits increase demand for milk and milk products.
"The product mix of private players is tilted towards the VAP segment, leading to better margins than milk cooperatives, whose product mix is largely dominated by liquid or pouch milk and traditional dairy products. The EBITDA margins of organised private players ranged 5%-6% during FY11-12-FY18-19," the ratings agency says.
The EBITDA margins deteriorated slightly during first nine months (9M) of FY19-20, driven by an increase in milk procurement costs; however, Ind-Ra says it expects margins to improve in FY20-21, as procurement prices stabilise.
To meet the needs of a growing and rapidly urbanising Indian population, the ratings agency feels a commensurate increase in milk production is required to keep pace with demand.
Ind-Ra has projected milk production to increase to 208 million tonnes (MT) in FY20-21 from 198MT in FY19-20 (Ind-Ra forecast (f)) and 187.7MT in FY18-19. "With the increase in milk production, the per capita availability is projected to rise to 428gm/day in FY20-21 (FY19-20: 411gm/day (f); FY18-19: 395gm/day). In our assessment, manufactured dairy products output is estimated to grow at a CAGR of 10% during FY18-19(f)-FY23-24(f)," it added.
The government of India has a milk production target of 300MT by FY23-24, so as to meet the growing demand for dairy products and make dairying a sustainable source of livelihood for small and marginal farmers and landless labourers that constitute the bulk of milk producers in India.
Ind-Ra says, "The increase in productivity depends on the availability of feed and fodder, disease control and breed development programmes. We believe productivity improvement initiatives would have to be aggressively pursued to achieve the high production target."
On 15 May 2020, union finance minister Nirmala Sitharaman launched National Animal Disease Control Programme for Foot and Mouth Disease (FMD) and Brucellosis with a total outlay of Rs133.43 billion. The scheme is aimed at ensuring 100% vaccination of cattle, buffalo, sheep, goat and pig population of 530 million animals for FMD and brucellosis.
The government also announced its intent to support private investment in dairy processing, value addition and cattle feed infrastructure through the launch of an animal husbandry infrastructure development fund of Rs150 billion. These measures, which form a part of the COVID stimulus package, would further the development of dairying activity over the medium-to-long term, Ind-Ra concludes.
As you read & Like my only Prays to you as we love my COW please do not kill them save them Now .