• Dr. R.S. Sodhi (president, IDA)

India's dairy sector has a remarkable, transformative history. The government imported milk due to a milk shortage in the decades after Independence. With a CAGR of 1.64% in the 1950s and 1.15% in the 1960s, milk production expanded slowly. India had the world's highest cattle population yet produced less than 21 million tonnes of milk. The National Dairy Development Board (NDDB) was founded in 1965, with Dr. Verghese Kurien as its first chairman—known as the "Father of the White Revolution." Operation Flood was undertaken by the NDDB to replicate the Anand Pattern of dairy cooperatives nationwide. The dairy industry grew and became self-sufficient thanks to this strategy.

DAIRY PRODUCTS	PROJECTED CAGR (2025-2030)
Milk	5.5%
Ghee	5.2%
Curd	6.8%
Yoghurt	11.0%
Ice Cream	9.8%
Cheese	13.5%
Paneer	7.8%
Flavoured milk	9.0%

With 25% of worldwide milk output, India is the top producer. Milk production rose 58% from 2014-15 to 2022-23, reaching 230.58 million tonnes. Milk production has grown 6% annually for a decade.

Top five milk-producing states: • Uttar Pradesh (15.72%); • Rajasthan (14.44%); • Madhya Pradesh (8.73%); • Gujarat (7.49%); • Andhra Pradesh (6.70%).

These states produce 53.08% of India's milk. India exported 63,738.47 MT of dairy products worth $272.64 million in 2023-24, demonstrating the sector's global relevance.

Government initiatives to boost the dairy industry
The Indian government has taken many steps to solve these issues and boost sector growth:

1. Rashtriya Gokul Mission
This programme improves cow genetics and conserves local breeds to boost milk production. Sex-sorted semen, IVF, and genetic selection boost cattle output. Over 8 crore dairy farmers will gain from milk output rising from 198.4 MT in 2019-20 to 300 MT in 2024-25.

2. National Programme for Dairy Development
The NPDD, launched in 2014 and repositioned in 2021, intends to improve high-quality milk production infrastructure and procurement, processing, and marketing. The Rs 1,790 crore (approximately $217.3 million) programme aims to increase organised dairy market share.

Under DEDS, financial help is provided by the Department of Animal Husbandry, Dairying, and Fisheries for dairy self-employment. It helps small-scale enterprises with dairy production, processing, storage, and marketing.

4. Animal Husbandry Infrastructure Development Fund
The Rs 15,000 crore AHIDF was created by the government to boost infrastructure. This fund helps create and expand dairy processing, animal feed, and value-added infrastructure.

Key dairy industry trends
1. Milk Production Rises
Milk production in India climbed to 230.58 million tonnes in 2022-23 due to dairy sector advancements. Sex-sorted semen, IVF, and high-yield crossbreeds boost cow production and milk yield. Automation, IoT-based calf health monitoring, and precision feeding have increased dairy efficiency and quality. Increased cold chain infrastructure and sophisticated processing facilities have reduced losses and maintained product quality, promoting the switch to value-added dairy products including cheese, yoghurt, and probiotic drinks. India is a global dairy leader thanks to these improvements and government programmes like the Rashtriya Gokul Mission and National Programme for Dairy Development.

2. Choose Value-Added Dairy Products 
Quality dairy goods including cheese, yoghurt, flavoured milk, and probiotic drinks are becoming more popular. These products meet changing consumer preferences for health, convenience, and diversity and have higher margins. These items are in demand due to health awareness, the rising middle class, and changing diets. To reach this rising group, dairy firms are branching beyond milk products and investing in new product development and marketing. Increasing demand for functional foods and drinks has fuelled whey protein hydrolysate market expansion. Whey protein hydrolysates are also becoming popular in the dairy business as natural supplements due to their improved nutritional absorption and health advantages. Companies must overcome allergic reactions, nutritional loss, and harsh taste.

3. Tech Innovations
Technological advances are transformational in the dairy business. This involves dairy farm management, milk processing, packaging, and supply chain logistical improvements. Automation, IoT, and AI are improving efficiency, product quality, and safety. These technologies improve agricultural management, increasing production and sustainability. Cold chain technology also preserves dairy products' freshness and nutritional content during transport and storage.

Some recent patent filing trends show the industry's desire to innovate and solve domain difficulties

Trend 1: Whey Protein Hydrolysates: Patents and Innovations
Due to its improved digestibility and potential health benefits, whey protein hydrolysates are gaining popularity in the dairy sector, especially for baby feeding and special diets. This area seeks to increase allergenicity, stability, taste, and nutrition.
1. Arla Foods: Created a revolutionary method to minimise allergenicity in whey protein hydrolysates while maintaining immunological benefits. Hydrolysis processing parameters were adjusted to balance safety and efficacy.
2. Feihe Dairy: Developed whey protein hydrolysate stabilisation methods. The firm filled a niche market demand with a hydrolysed whey mix for people with decreased renal function.
3. Shandong Jiejing Biotechnology Co. Ltd. and Jiangnan University: Improved digestibility and taste of whey protein by increasing glutamine levels. This innovation improves newborn nourishment by making it taste better and digestible.
4. Moringa: Created a nutritious combination for emulsion stability in whey protein beverages. This innovation extends shelf life and preserves product quality.

Trend 2: Gut Health HMObiotics
Breastfed newborns had fewer illnesses and better cognitive results than formula-fed infants, thus research is focussing on reproducing these benefits. Human Milk Oligosaccharides (HMOs) and probiotics have been combined to create HMObiotics, which enhance intestinal health in newborns and adults.

1. Danone: Created Nutricia brand formulation to promote healthy gut environment through prebiotic and anti-pathogenic characteristics.

2. Yili Group and Nestlé: Developed a product for infant intestinal discomfort and allergies. Their mix promotes digestive health with probiotics.

3. Feihe Dairy: Introduced a combination to boost immunity and promote gut flora, particularly in maternity meals.

4. Abbott: Introduced a formula with dual HMOs and probiotics (Bifidobacterium and Streptococcus species) to reduce newborn gas discomfort and promote digestive health.

Trend 3: Active Probiotic Shelf-Stable Yoghurt
Consumer demand for easy, shelf-stable, nutritious yoghurt has spurred innovation. Shelf-stable yoghurt with active probiotics suit modern, on-the-go lifestyles by not requiring refrigeration.

1. Bright Dairy & Food and Mengniu Dairy improved processes by adding live probiotics post-sterilisation, preserving bacterial viability, taste, and texture. 2. Yili Dairy explored lactose-negative bacteria and Lactobacillus rhamnosus to regulate fermentation and control acidity. This prolongs shelf life and preserves yogurt's health advantages.

Trend 4: Vegan Cheese Meltability Improvement
Veganism has increased the demand for high-quality vegan dairy alternatives. Plant-based cheeses rarely melt like dairy-based cheese. Vegan cheese meltability and texture are industry challenges that innovators are addressing.

1. Kraft Foods and Bunge SA: Improved vegan cheese processing by altering starch kinds and content. Adjustments seek to make cheese that melts and stretches like dairy cheese.

2. Ajinomoto: Improves meltability and texture by using protease enzymes to avoid gelling during cheese-making.

Despite being the world's top milk producer, milk animal productivity can improve. Testing progeny, feeding milch cows well, insuring their health, and crossbreeding can help. The organised dairy industry processes 30% of the country's milk, but it might reach 50% in 10 years. Due to milk's poor microbiological quality, farmers must be educated to produce clean milk. Legislation should limit "loose milk" sales. We must end dairy industry malpractices including adulteration and synthetic milk processing. Indigenous dairy-based sweetmeats need better packaging. Indigenous milk sweet mechanisation is weak due to sanitation, energy, and environmental safety problems. Milk must be antibiotic-, hormone-, and pesticide-free. Organic milk output needs to be improved. Rabobank expects value-added dairy products like yoghurt, paneer, cheese, ice cream, and baby food to grow 20-30% in 4-5 years. Six of the top 20 dairy firms entered India. Fonterra in New Zealand may partner with locals. McDonald's, Domino's, Pizza Hut, and Café Coffee Day are expected to increase value-added dairy consumption. Custards, sweets, puddings, sauces, mousse, stirred yoghurt, and nectars have great promise in the dairy industry. Urban demand for processed and packaged dairy products will rise due to increased disposable income and health consciousness. Advanced approaches to raise productivity, breed cattle, improve dairy animal health, and develop dairy production and processing can lower production costs for the private sector.

"The story of India’s dairy sector is not just about milk, but about resilience, transformation, and the power of collective action." – Dr. Verghese Kurien