The rising popularity of natural products has triggered a wave in the organic milk market. But there are challenges.
Triptur, A small hamlet about 150 km from India's Silicon Valley Bangalore, greets people with its green coconut plantations. Life is calm and serene in the village that is home to Karnataka's largest copra market. Triptur is now hogging headlines for another stream of business. Around 160 organic dairy farms under the brand Akshayakalpa have been operating in this region for the past eight years. Everyday, more than 15,000 litres of milk is collected using milking machines, preserved in chillers that are maintained at 4 degree Celsius, transported to Bangalore and distributed directly to the consumer within eight hours, farm fresh.
Akshayakalpa is one of the many new generation 'farm to home' dairy companies that have mushroomed in Indian metros and Tier-II towns. Mostly owned and operated by young 'professional milkmen' who have quit jobs in multinational IT companies, investment banks, management companies et al. to take up the business, these enterprises are creating a churn in India's organic milk industry in particular and the milk sector in general.
India is the world's largest producer and consumer of dairy products. According to market research company IMARC, the milk and dairy products industry reached Rs7.9 lakh crore in 2017. In 2016, the milk sector alone was valued at Rs3 lakh crore and is projected to scale Rs7.3 lakh crore by 2021. "Currently, the organic dairy industry accounts for less than 1 per cent of the total dairy market in India. The segment is expected to grow steadily in the next three to five years," says Aarthi Janakiraman, Industry Manager, TechVision, Frost & Sullivan....Read more
Source web page: Business today