Comparisons of Dairy Farming in India with Other Countries | Animal Husbandry & Veterinary Science Optional for UPSC PDF Download

Overview of Dairy Industry in India

• Dairy Industry's Origin:
  • While milk has always been crucial in Indian homes, the dairy industry is relatively recent in comparison to developed countries.
  • The industry is still developing both qualitatively and quantitatively.
• Diversity in Dairy Farms:
  • Dairy farms in India vary in size, from small one or two-cow units to larger private, corporate, trust, religious, and semi-public organizations.
  • Government units, like breeding farms, also play a role in dairy farming.
• Governmental Involvement:
  • Various government units are involved in dairy farming through milk schemes and breeding farms.
  • Milk colonies, like Aarey milk colonies near Mumbai, are maintained by private owners with government support.
• Animal Breeds and Crossbreeding:
  • Milk is primarily obtained from cows and buffaloes, with notable breeds like Sahiwal, Tharparkar, Red Sindhi, and crossbreeds like Jersey and Holstein.
  • Crossbreeding has increased average milk yield, especially in hilly regions.
• Buffalo Contribution:
  • Buffaloes, comprising less than 30% of milking animals, contribute half of the saleable milk in the country.
• Goat Milk Production:
  • Some indigenous goat breeds, like Malabar, contribute a considerable amount of milk, accounting for 27% of total goat milk production.
• Feed Challenges:
  • Lack of pastures in India leads to reliance on roughages like paddy straw, wheat straw, and concentrate feeds, increasing the cost of milk production.
• Milk Procurement:
  • Milk is mainly procured from individual producers at collection centers.
  • The milk undergoes testing for quality, is weighed, and then transported to dairies for further processing.
• Processing and Sale:
  • Dairies process milk for sale, with by-products like skim milk powder, khoya, and ghee manufactured during lush periods.
  • Some private companies also produce malted milk, baby food, and cheese.
• Cooperative Dairy Development:
  • The AMUL-type cooperative dairy development, focusing on productive methods, intensive processing, and marketing, is encouraged nationwide.
• Utilizing Gifts and Gifts from EEC:
  • India has wisely utilized milk powder and butter gifts from the European Economic Community (EEC), combining them with local milk to increase availability.

Dairy Development in India: Key Points and Contrasts with Advanced Countries

Dairy Development in India

• Operation Flood Projects:
  • Operation Flood Projects have been crucial for integrated dairy development in India.
  • Focus on production, collection, processing, and marketing in both public and cooperative sectors.
• Genetic Improvement:
  • Crossbreeding with exotic milch breeds has improved the genetic potential of indigenous cows.
  • New breeds like Karan-Swiss are adapted to Indian climatic conditions with high milk production.
• Drawback with Male Progeny:
  • The challenge in Indian dairying, especially with crossbreeds, is the burden of male progeny.
  • They are not suitable for work as draught breeds and cannot be used for beef production due to public sentiments.
• Contribution to Agriculture:
  • Dairy farming is a significant branch of Indian agriculture, contributing to national health and economy.
  • It remains secondary to agriculture, unlike in some other countries where it is a major industry.

Dairy Farming in Advanced Countries

• High Cow Yields:
  • Contrasting with India, advanced countries have very high cow yields in dairy farming.
  • Lush pastures and favorable fodder conditions make milk production highly economical.
• Male Progeny Utilization:
  • In advanced countries, the birth of male or female progeny makes no difference.
  • Male animals are equally valuable for beef production, unlike in India.
• Country-Specific Differences:
  • Dairy farming practices vary considerably from country to country.

Dairying in Netherlands

• Industry Status:
  • Netherlands is a modern dairy farming country where dairying is truly an industry.
  • Over 0.17 million people earn their living directly or indirectly from the dairy industry.
• Friesian Cattle in Friesland:
  • Friesland, the dairy capital, is the origin of Friesian cattle.
  • Selective breeding has greatly increased the milk potential of this breed.
• Pastures and Feed:
  • Vast areas of lush green pastures in Netherlands support dairy farming.
  • Cultivated fodders, grasses, hay, and silage are used as feed.
  • The country imports feed ingredients at cheaper rates and exports excess manufactured feed.
• Technological Advancements:
  • Dairy farming processes in Netherlands are highly automated and computerized.
  • Embryo transplantation for genetic improvement is a common practice, contributing to successful businesses for farmers.
• Modernized Farms:
  • About 75% of dairy stock in Netherlands are housed in modernized barns.
  • Feeding is regulated through computer programs, managed by farmers' families, even children.
• Farm Management:
  • A farmer, with family support, can manage a herd of 60 to 60 milch animals, perform farm operations, and handle milking with minimal casual labor.
• Milk Utilization:
  • 40% of milk is converted into various cheeses, 13% consumed as fresh milk, 10% processed into condensed milk products, and evaporated milk.
  • 11% is turned into whole milk powder, and 26% into butter and skim milk powder.
• Whey Recycling:
  • Cheese whey, a by-product, is recycled.
  • Lactose is extracted, and delactose whey powder is used in milk replacers for calves.
  • Whey protein concentrates are used in human food products.
• Cooperative Dairies:
  • Little over 50% of dairy enterprises are cooperative dairies; others are private companies.
  • 85% of milk is handled by dairy cooperatives, and 11% by private dairies.
• Export-Oriented Industry:
  • Netherlands is a major exporter of cheese, condensed milk, butter, and instant milk powder.
  • Represents 16-17% of the world's dairy trade, with significant shares in cheese, whole milk powder, and condensed milk.
• Dairy Land:
  • The Netherlands is aptly called "Dairy land" due to its dominant position in the global dairy trade.

Dairying in Denmark

• Agricultural Efficiency:
  • Despite being a small country, Denmark is a significant global exporter of pork, cheese, and butter.
  • Only 7% of the population is engaged in agriculture, producing three times the food consumed.
• Animal Products and Earnings:
  • Animal products contribute 85% to total earnings, with milk making up 35% of the value.
• Farm Characteristics:
  • The national herd comprises around 12 million cows, with 60% of farms being middle-sized dairy farms.
  • Four recognized cattle breeds, with a focus on crossbreeding.
• High Milk Production:
  • Intensive breed improvement, better nutrition, and efficient management have increased the average milk yield from 4,300 kg to 5,000 kg in 15 years.
• Indoor Housing System:
  • Adverse climatic conditions, including snow for four months, necessitate close indoor housing for most of the year.
  • Grazing is allowed for five months.
• Payment Structure:
  • Payment for milk is based on butterfat content, promoting quality production.
• Technological Advancements:
  • Local cattle shows, computerized performance data, and refrigeration facilities on farms contribute to efficient dairy management. 
  • The economy of Denmark is primarily based on its dairy farming and piggery.

Dairy Farming in the United States

• Efficiency and Scale:
  • The United States has highly developed dairy farming with minimal manpower for maximum efficiency.
  • Many individual farms are run by husband-and-wife teams, with an average of around 100 cows on each farm.
  • Large farms in states like California may have thousands of cows.
• Fodder Production:
  • Farms often produce their own fodder, with more than half preserved.
  • Lucerne is preserved as hay, and maize as silage for lean months.
• Milking and Processing:
  • Almost all cows are machine-milked twice daily, with milk going directly into bulk chilling plants on the farm.
  • Milk with low bacterial count is common, stored close to 0°C, and transported to dairy plants twice a week.
  • Unlike in India, processed and packaged milk for immediate consumption is marketed in developed countries.
• Pasteurization and Price Fixing:
  • Pasteurization is the preferred method for processing milk, ensuring safety for distribution and human consumption.
  • Milk prices are fixed annually, varying by location and season. The average price is Rs. 8.50 per kg, making milk cheaper than in India when considering living costs.
• Government Intervention and Subsidies:
  • The U.S. Department of Agriculture (USDA) sets minimum prices for different milk classes.
  • Government intervention includes purchasing skimmed milk powder, butter, and cheese at minimum prices.
  • Skimmed milk is subsidized for export under the Dairy Export Incentive Program (DEIP).
• Consumption Trends:
  • Cheese consumption is steadily growing at 2% per year, while liquid milk consumption remains stable.
  • Butter consumption is gradually decreasing.
• Industry Employment and Trends:
  • The fluid milk industry employs 76,000 people, with a payroll of $1.6 billion.
  • The entire dairy industry employs 139,000 people, with a payroll of $2.7 billion.
  • There's a trend towards merging the dairy industry with the food processing sector, potentially losing its independent identity in the future.

Dairy Farming in New Zealand

• Young and Efficient Industry:
  • New Zealand's dairy industry is relatively young, established over 150 years through hard work and modern techniques.
  • Known for its excellence and efficiency, thanks to agricultural and dairy research.
• Co-operative Nature:
  • The industry is co-operative, with farmers owning shares in the factories they supply milk to.
  • About 30% of farms are smaller than 30 acres.
• Mild Winters and Grazing:
  • Mild winters allow cattle to graze most of the year.
  • Farms are intensively mechanized, with minimal hired labor.
• Mechanization and One-Man Units:
  • Majority of farms are one-man units, handling around 50 cows each.
  • Mechanization is extensive, keeping costs low.
• Cattle Population and Milking:
  • New Zealand has 8 million cattle of Jersey, Friesian, Ayrshire, and Shorthorn breeds.
  • Approximately 98% of cows are machine-milked.
• Open Grazing and Low Investment:
  • Cows are kept in open areas throughout the year, reducing the need for building investments.
  • Nutrition is primarily through grazing.
• Co-operative Dairy Companies:
  • Nine cooperative dairy companies control 91% of New Zealand's milk production.
  • Farmers own shares, influencing export policies.
• Export Focus and Low Costs:
  • New Zealand exports dairy products like butter, cheese, milk powder, and casein to developed countries.
  • Costs are low, allowing competitive pricing and quality in global markets.
• Herd Improvement and Modern Practices:
  • Herd improvement associations conduct testing and provide artificial insemination services.
  • Computerized record-keeping for insemination details.
• Technological Advances:
  • UHT pasteurization is common.
  • Infrared milk analyzers test samples for fat and SNF.
  • New products like processed cheese, recombined milk products, and specialized butter are manufactured.
• Communication and Exhibitions:
  • TV and radio programs cater to dairy farmers.
  • Annual shows exhibit the best animals, machinery, and equipment district-wise and nationally.

Dairying in Australia

• Small Yet Significant:
  • Australia's dairy industry is smaller compared to the U.S. or European countries, mainly due to a focus on sheep breeding.
  • Despite its size, Australia is a major exporter of dairy products.
• Family-Operated Farms:
  • Dairy farms in Australia are typically family-operated specialized enterprises.
  • Average farm size is around 100 hectares, with 90 milking cows, 20 yearling heifers, 20 calves, and 2 or 3 bulls.
• Pasture-Based Grazing:
  • Cows are grazed directly on pasture, conserved hay, or silage.
  • Grain supplementation is rare, and cows are not housed.
• Common Grazing:
  • Rye-grass and clover are common grazing options.
  • Average milk production is 2500 liters per cow, primarily from grazing.
• Family Involvement:
  • Farm owners, often working alone, receive support from family members.
  • Tasks include account-keeping, milking, and calf rearing.
• Labour and Machinery:
  • Casual or contract labor may be employed for demanding tasks.
  • Pipe-like milking machines, typically walk-through, are used, achieving 35 to 65 cows per man-hour.
• Milk Handling:
  • Milk is initially stored in refrigerated bulk milk vats.
  • Transport occurs either daily or once every two days.
• Herd Recording and Technology:
  • Herd recording involves monthly visits from recorders who sample butterfat, test, and record each cow's production.
  • Centralized laboratories with advanced testing equipment and computer data processing have been introduced.
• Bull Progeny Testing:
  • Most bulls undergo progeny testing to assess their genetic qualities.
• Market Entitlement Schemes:
  • Compulsory equalization for butter and other milk products.
  • The National Aggregate Entitlement Scheme provides farmers with market entitlement for their product sales.
• Research Support:
  • Dairy farmers contribute $0.01 per liter of milk to support research.
  • The Dairy Research Committee, with representatives from various organizations, oversees the controlled expenditure of these funds.

Dairy Farming in Israel

• Guiding Principles:
  • Israel's agricultural development is guided by principles like nationally owned land, no hired labor, mutual aid, equal sharing of productive sources, and co-operative buying and selling.
• Dairy Development Initiatives:
  • Extensive experiments led to the selection of "Damascus Red" as the founding mother of the Israel-Friesian breed, achieved through crossbreeding Bos taurus and Bos indicus.
  • Israel-Friesian cows are top-crossed with Dutch Friesian or British Friesian bulls.
  • Mature Israel-Friesian cows yield 6,600 kg of milk with 230 kg of butterfat in 320 days.
• Israel Cattle Breeding Association (ICBA):
  • Represents Israel cattle breeders and oversees herd book, milk recording, and progeny-testing in collaboration with the Ministry of Agriculture.
  • A breeding committee conducts progeny tests for sires over three lactations.
• Artificial Insemination and Machine Milking:
  • 99% of cows are artificially inseminated.
  • All cows are machine milked.
• Government Role and Research:
  • Government periodically fixes milk prices based on production costs.
  • Research covers breeding, feeding, farm buildings, fertility, mastitis control, etc.
  • The slogan is "Today's maximum yield is tomorrow's average."
• Targeted Average Yield:
  • The targeted individual average yield of the Israeli herd is 10,000 kg, already achieved on many farms.
• Success Factors:
  • The success of Israel-Friesian results from integrating scientific knowledge and dedicated human effort under challenging conditions.

Dairying in Russia

• Historical Overview:
  • Russia initially had a poorly developed dairy industry with low average milk yields (800-900 kg).
• Imported Breeds and Crossbreeding:
  • Imported breeds like Backpied, Simmental, Brownswiss, Jersey, Holstein, Ayrshire, and Red Dane were introduced from Germany, Holland, and Switzerland.
  • Crossbreeding with local cattle improved the dairy herds.
• Post-War Development:
  • Despite setbacks during World War II, dairy farming improved significantly between 1951 and 1976.
• Artificial Insemination and State Farms:
  • Extensive use of artificial insemination with frozen semen from proven bulls.
  • Large state-owned collective farms specializing in various aspects of dairying.
• Technological Advances:
  • Adoption of new feed technologies like pelletization, artificial drying of hay, grass wafer production, and grass meal preparation.
  • Growing stock are maintained on deep litter in loose boxes, minimizing feed wastage.
• Litter Management:
  • Old litter is removed annually in spring using bulldozers.
• Progress and Comparison:
  • While significant progress has been made, the dairy industry in Russia may not be on par with other European countries.

United Kingdom Dairy Farming

• Profit Decline:
  • UK dairy farm profits have fallen by over 20% in the last two years due to a decrease in milk prices.
• Farm Closure Increase:
  • More farms are trading at a loss, leading to an increase in retirement rates from dairy farming.
• Market Dynamics:
  • The liquid milk market, constituting 50% of milk supplies, continues to decline.
  • Cheese market is expanding, but markets for butter and cream are decreasing.
  • Imports are becoming more competitive, while exports face challenges in the dairy industry.

Dairying in Ireland

• Agricultural Significance:
  • Agriculture contributes to one-fifth of Ireland's total output and two-fifths of all exports.
• Farm Characteristics:
  • Dairy farms in Ireland vary in size, with smaller herds ranging from 10 to 15 cows.
  • 95% of dairy farms produce milk for manufacturing milk products for export, while 5% produce liquid milk for home consumption.
• Milking Methods:
  • Smaller herds are hand-milked, and larger herds are machine-milked.
  • Mechanical cooling of milk before transport is implemented in larger farms.
• Import Control Measures:
  • Ireland, being an island, enforces strict import control methods in the dairy industry.
• Disease Control:
  • Ireland has successfully eliminated diseases like foot-and-mouth, anthrax, and cattle plague through strict control measures.
• Breeding Practices:
  • Dual-purpose breeds, especially the Friesian, are favored for beef production.
  • Artificial insemination is the primary method of breeding.
• Payment Structure:
  • Payment for milk is based on milk fat and protein contents.
• Export Dominance:
  • Three-quarters of all dairy products manufactured in Ireland are exported.
  • Cheese, butter, and various types of milk powder are major export items.
• Popular Dairy Product:
  • Yogurt is popular in Ireland and consumed in large quantities.

Irish Dairy Board

• Central Marketing Organization: Irish Dairy Board is vital for the Irish economy, overseeing the export of dairy products valued at Ir £200 million.

Dairying in Japan

• Production Structure Challenges:
  • Small-scale livestock raising due to limited suitable land.
  • Farms dispersed over a wide area geographically.
  • Lower productivity compared to other dairy farming countries.
• Paddy Field Dairy Farming:
  • Rice cultivation and dairy farming coexist in the same area.
  • Paddy fields are used for dairy farming after rice harvest.
  • Paddy straw is repurposed as fodder for cattle.
• Evolution of Dairy Industry:
  • Large dairy companies merged in 1960, taking control of the industry.
  • Initially challenging for smaller units, but demand growth improved their business.
  • Milk distribution often in single-service containers (600 or 1000 ml paper or plastic).

Comparison of Dairy Industry in Developed Countries

• Trade Protection:
  • Dairy products highly protected in international trade.
  • Import controls stringent in the United States, European Economic Community (EEC), Canada, and Australia.
• Herd Size and Milk Yield:
  • Average herd size varies globally, from 105 cows in New Zealand to 5 cows in Italy.
  • Milk yield per cow influenced by concentrate feed amount.
• Cost of Production Factors:
  • New Zealand's pasture-based industry with minimal infrastructure has a lower cost of production.
  • Netherlands uses less land but more labor than the U.S., impacting production costs.
• Competitiveness:
  • U.S. dairy industry can compete price-wise, except with New Zealand and Australia.

Comparative Milk Prices Globally

• India: Price for 100 liters: $18.6
• European Community: Price for 100 liters: $37.5
• USA: Price for 100 liters: $22.8
• Japan: Price for 100 liters: $35.5
• Australia: Price for 100 liters: $225
• New Zealand: Price for 100 liters: $202

Dairying Comparison - India vs. Advanced Countries

• Genetic Potential: Advanced countries have superior cattle breeds with high milk potential.
• Pasture Availability: Most advanced countries have ample grasslands, reducing the need for additional feeding.
• Feeding Practices: Advanced countries often rely on grass for nutrient requirements, reducing production costs.
• Farm Size: Advanced countries have larger farms managed efficiently, often by families.
• Technological Advancements: Advanced countries apply advanced techniques in dairy farming and machinery.
• Organizational Setup: Smaller size of advanced countries facilitates efficient national-level organization.
• Labor Cost and Availability: Family-managed farms in advanced countries contribute to cost-effectiveness.
• Environmental Factors: Advanced countries benefit from favorable climates, contributing to efficient milk production.