Dairy Industry in Bihar worth INR 227 Billion

The dairy industry in Bihar is expected to experience a strong growth on account of forces like strong GDP growth, increasing purchasing power, growing health-consciousness, improving distribution networks and government initiatives to organise the sector.

Dairy farming in Bihar represents an important source of income and employment for a large number of poor and landless families. Despite this, the dairy industry is highly unorganised and various efforts are being made towards its development. For instance, the Bihar State Milk Co. Federation, which markets its products under the label Sudha Dairy, has taken various initiatives for improving the breed and health of animals as well as enhancing fodder and feed availability. In addition, the state cooperative has been following “Anand” pattern of dairying activities which has positively contributed to the market growth. Apart from this, the state has also been included in the National Dairy Plan (NDP) of the National Dairy Development Board (NDDB), wherein the milk cooperatives will be provided support to offer rural milk producers greater access to the organised milk processing sector.

According to a latest report by IMARC Group, the dairy market in Bihar reached a value of INR 227 Billion in 2016, growing at a CAGR of more than 12% during 2010-2016. Findings from the report also suggest that the organised market accounted for around 13% of the total sales in 2016 and is further expected to reach 17% by 2021. Despite being unorganised, it represents a highly lucrative market with ample untapped opportunities. As a result, many brands like Osam and Gyan are planning to set up their processing plants in Bihar, thereby, adding to the number of milk processing plants. Moreover, factors such as strong GDP growth, increased purchasing power, health-conscious consumer base and improving distribution networks are further expected to propel the market growth.

At present, liquid milk is the biggest product segment in Bihar, accounting for more than a half of the total market share. On the other hand, the fastest growing segments include frozen/flavoured yoghurt, cheese, UHT milk, flavoured milk and butter milk. The market is highly fragmented in nature due to which there is an increased competition among the players. Some of the leading players operating in the market include:
 

• Sudha (Bihar State Milk Co-operative Federation Ltd.)
• Raj (Anuj Dairy Pvt. Ltd.)
• Tulsi (Ganga Dairy Pvt. Ltd.)
• Amul (Gujarat Co-operative Milk Marketing Federation Ltd.)

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