Dairy farming is a large unorganized sector in India and a major source for livelihood in rural areas. Dairy farming is a class of agriculture for long-term production of milk, which is processed (either on the farm or at a dairy plant, either of which may be called a dairy) for eventual sale of a dairy product. Commercial and small scale dairy farming in India is no doubt playing an important role in the total milk production and economy of our country. And almost all regions of India are suitable for setting up dairy farming business. Dairy cow farming means ‘raising highly milk productive cows commercially for milk production purpose’.

Milk Production in India has increased manifold and in the last financial year, the total milk production in the country crossed the mark of 140 Million Tonnes. Milk is used as a food. It is used prepare curd, butter, ghee cream and ice cream etc.

The government is taking several initiatives and introducing yearly plans in order to boost the dairy market. The Indian dairy market is now witnessing the entry of a large number of foreign players. India’s demand for milk and milk products is increasing twice as fast as the production of milk. The market is also witnessing a consumer shift towards healthier products such as UHT milk, probiotic drinks, Processed Cheese, Curd, Butter Milk & Ghee etc.

India is one of the fastest growing markets for cheese with a total consumption of about 7,000 tons a year.  Cheese is becoming a popular item in the menu of all relatively affluent families. Slowly but surely, it will penetrate into the rural markets.Yogurt, traditionally known as “Dahi” in India, has been a part of the Indian meal, with home-made dahi consumed daily. The Indianpalate is well-accustomed to the taste of not only plain yogurt but also such form and taste variants as Lassi, Chaas, Srikhand, Mishti Doi, Raita, etc.

Breeding to meet the demand for beef production, owners also use selective breeding to attain specific traits in their beef cattle. An example of a desired trait could be leaner meat or resistance to illness. Breeds known as dual-purpose breeds are also used for beef production. These breeds have been selected for two purposes at once, such as for both beef and dairy production.

India possesses 27 acknowledged indigenous breeds of cattle and seven breeds of buffaloes. These well-defined breeds are found in the dry parts of the country. Good breeds of cattle are mostly confined to comparatively dry areas such as Haryana, Punjab, Rajasthan, Gujarat and Madhya Pradesh. Pastures in these areas may qualitatively be enough, but they are often scarce.

India is a land of opportunity for investors looking for new and expanding markets. Dairy food processing holds immense potential for high returns.The dairy food market in the India has witnessed a growth in recent years on account of rising demand for dairy food products fueled by expansion in milk production. The surge in growth is majorly originated from growth in Ice cream and Milk Powder as a segment of dairy food market. The growth in this segment has been largely led by the domestic factors such as innovative technology and rise in availability of variants. India dairy food market will grow at a considerable CAGR to cross INR 250 billion by 2019 due to the increasing number of dairy farmers and rising average yield of cows.

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