Self-Sufficient Indian Dairy Sector: A Decade Ahead

Think Grain Think Feed connected with Dr. Pradeep Mahajan, a seasoned dairy expert with in-depth knowledge of the Indian dairy farming sector. In this e-interview, Dr. Mahajan shares his insights on the industry’s current state, the challenges it faces, and the steps needed to enhance production while ensuring self-sufficiency in the coming decade. Below are the key excerpts from the interview.

Indian milk production has increased by 3.78%, which is a decline compared to last year’s growth of 5.77%. What is your observation on this growth trend, and do you think India will remain self-sufficient in dairy production over the next decade? What changes in fundamentals are necessary to achieve this?

That is too complex a question to answer. Whether India will remain self-sufficient will not only depend on the supply but also on the demand trend. The price elasticity of demand for milk and milk products will become more significant as the cost of production—and, consequently, prices—rise. However, fortunately (or unfortunately), we have very low productivity in our animals, and there is tremendous scope for improvement. This improvement will certainly happen, and it will surely help us stay self-sufficient. So, overall, I believe we will remain self-sufficient in milk production over the next decade.

With the slowing growth rate and increasing demand for dairy, what role can commercial cattle feed play in addressing these challenges?

The first major role will have to be played by genetics.  Improvement in genetic potential of animals is going to be key. As and when that happens, commercial cattle feed will easily rise to the occasion and will help realise the genetic potential through better nutrition.

In interview coverage with TGTF in 2017, you mentioned lack of green fodder availability a major challenge for dairy farming. Has anything changed in all these years?

If we go by the prices of commercially traded corn silage and prices of straw throughout the country, the situation has certainly worsened. The shortage of good quality forage is becoming more acute. The demand for maize ethanol production is also expected to skew the availability of corn, as farmers growing corn may shift to grain production rather than using it for forage or silage.

The average farm size in Indian dairy farming is 3-4 animals, which constitutes a major portion of the overall sector. Do you foresee consolidation in the industry? What would be your advice for making dairy farming more profitable?

Consolidation in dairy farming has been a trend worldwide, and India will not be an exception.  The rate of consolidation may vary, but it will happen.  Both social and economic factors will favour consolidation.  Upward mobility and aspirations of youth will drive many out of dairy farming and those who stay, will rightfully expect better standards of living through higher income.  This can only come with larger farms and higher productivity.  On the commercial side, ensuring quality milk production in a fragmented farming is not easy. Only with a decent farm size, you can start taking precautions and implement good managemental practices to ensure quality of milk.

Consolidation will also happen geographically.  We already have pockets which produce more milk, and these areas will grow, capturing a higher share of milk production.  The availability and growth in infrastructure for milk collection and processing, access to good quality forage, a establishment of forage markets, and a conducive climate for dairy farming will all play a role in this geographical consolidation.

Silage is an excellent feed supplement for cattle, but managing it can be challenging. Could you please share some tips on proper handling of silage?

This is a topic for a decent sized book – at least with 200 pages!  But to answer your question in short, I think, right stage of harvesting, right moisture content and management of moisture at the time of ensiling, good quality chopping to ensure both – stem and grain processing, good impaction to remove as much air as possible, proper sealing to prevent entry of air and speed of the entire process of ensiling are all very important factors which help in preparing good quality silage.  During feeding, silage face management is important to avoid fungal growth.

Antimicrobial resistance (AMR) is a growing concern. What is the situation regarding AMR in Indian dairy farms?

AMR is a global concern and Indian dairy farms are no exception. Fortunately, unlike other farm animals, antibiotics have never been used as growth promoters in dairy farming or feed in India. However, misuse and overuse of antibiotics is a problem. This is mostly due to quacks and unqualified persons treating animals. Better access to veterinary services from qualified personnel and access to clean water, improved hygiene and sanitation, will go a long way in avoiding overuse of antibiotics in dairy animals.  When it comes to antibiotic residues in animal products, I think dairying is much better off. There are well established procedures for testing for various antibiotics residues in milk, and these are routinely followed, at least in the organized sector.

What major changes do you foresee in the dairy industry over the next 5-10 years?

To answer this question, I will restrict myself to only the dairy farming and not the dairy industry as a whole. I think most of the changes in farming will be driven by better availability of improved genetics.  We will see some consolidation happening outside Punjab and Haryana.  This is already being felt in the adjoining areas of Rajasthan and Western Uttar Pradesh, and it will extend to other pockets of the country as well.