Foreign Firms Eye Bigger Pie Of Indian Dairy Space.

India’s dairy sector is attracting European and foreign firms that are now either looking to set up production facilities or provide technological support to become stakeholders.

“India’s breed of cows and buffaloes are good enough, but not enough to sustain India’s growing demand. There is definitely scope for enhancing production with technology,” Irish dairy and food ingredients firm, Kerry Group’s GM Peter Dillane said. Speaking on sidelines of a CII hosted industry meet, Dillane said that the group has presence in the food ingredients market in India. “We are looking for a local partner to set up dairy business,” he said.

Taking note of the fact that India’s annual milk production of 125 million tonne is derived from 17 million small and marginal farmers, French consultant Michele Janezic also sees a future in empowering them with better breeds and production facilities. “We may have two French companies including Danone to partner for the projects. We have begun surveying two districts in Haryana. We will be assessing the equipment specifications for setting up plants and the costs involved in two months time,” Janezic said.

Janezic’s Indian NGO, JeevMantra would be piloting the dairy project. The NGO is learnt to have already made land purchase in the targeted districts. “We aim to offer a variable product mix and involve communities of landless or small farmers for this project,” she said.

Also, seeking government approval are improved semen and other genetic material suppliers from New Zealand’s dairy farms. “We see opportunities in India and by our assessment the country would face a shortage soon. However, trade barriers stop us from sending over our genetic materials, that we supply all over Asia and Europe,” New Zealand’s trade commissioner in Delhi, Cliff Fuller said.

Kiwi dairy major Fonterra is looking to overcome diplomatic trade barriers to set up a base for its global marketing network in India. “It is the same law about bringing in genetic material which is delaying these projects,” he said.

Meanwhile, Canada’s trade commission has also submitted a project with the National Dairy Development Board (NDDB) for boosting dairy output. “The project encompasses usage of better genes and breeding techniques as we feel Indian breeds would not be able to match up to the demands,” said Sudha Kshatriya, trade commissioner with Canadian high commission, Delhi.

Source : mydigitalfc.com