According to Rabobank, demand for dairy products in India will increase by 4%. Can India satisfy demand?

In India, the world's largest milk producer, there are about 70 million liters, which is almost twice as much as in the United States.

According to Rabobank, forecasts suggest that milk production in India will increase by 4% in 2020. This corresponds to an additional 9.7 billion liters. milk and equivalent to 65% of UK production in 2018

Projected production growth next year is expected from an increase in the number of cows, rather than an increase in productivity. About 40% of all milk produced is consumed in the household of the producer, and 35% goes to small local processors. Only about a quarter of the milk produced is delivered to large companies or cooperatives.

FAO estimates that consumption of fresh dairy products in India is expected to increase by 2.3% per year, reaching 108 kg. per capita in 2028

In 2018, India exported 94 thousand tons of dairy products worth almost $ 290 million. Butter and other dairy fats (including ghee) are a large part of exports, accounting for 65% in physical terms.

Indian dairy exports have increased significantly, but remain relatively small globally. An increase in exports of butter (including ghee) and skimmed milk powder led to an increase in exports in 2019, with Bangladesh, Egypt and the United Arab Emirates being the main export destinations.

Interestingly, Indian farmers often keep several buffalo and have an average milk productivity of 1360 liters. per cow per year. Buffalos produce milk with a higher fat content, which attracts high milk prices.