India a big trade mart for the food industry

India a big trade mart for the food industry

The Indian food industry is hailed as the sunshine industry of India. The current market size of Indian food market is around US$ 182 billion, and as per latest reports, the Indian food industry comprises nearly two thirds of the total Indian retail market.

Growing economy, surplus food, shift in consumer consumption pattern, have put the Indian food industry on the fast track.

According to consultancy firm McKinsey & Co, the retail food sector in India in 2008 was worth US$ 70 billion, which will reportedly scale up to around US$ 150 billion by 2025. The world food industry would grow to US$400 billion from US$ 175 billion. This means, India’s food industry will form a major part of the world food industry.

RNCOS, an industry research firm, sometime back had released a new market research report titled “Indian Food, Beverages and Tobacco Market Forecast till 2011”.

The key findings of the report are as follows:

• Consumer spending on food, beverages and tobacco in India is estimated to grow at a CAGR of 12.2% during 2007 to 2011.

• The continually expanding Indian processed food market will catch the attention of foreign companies.

• Street hawkers will face stiff competition from fast-food outlets. • Consumption of soft drinks will accelerate from 11% during 2002 to 2006, to 12% during 2007 to 2011.

• Production of branded snack food is estimated to grow at an annual rate of 20% in upcoming 2-3 years

• The country has evolved into a big mart for whisky, so India will be significant global spirits market in the next 3-4 years.

India a Big Mart for Spices

Despite the so called recession, Indian spice producers are laughing their way to the banks, with spice exports from India being valued at over $11 billion, in 2008-09. India exported spices and spice products valued at US$ 1.02 billion. In 2007-08, India exported spices and spice products worth US$ 1.10 billion.

India a growing Trade Mart for Food Processing Industry

The food processing industry is steadfastly growing at 14 per cent as compared to 6-7 per cent growth in 2003-04. Moreover, the industry has reportedly received foreign direct investments (FDI) totaling US$ 143.80 million in 2007-08.

Notwithstanding its growth, India’s share in the exports of processed food in global trade is meager 1.5%; while the size of the global processed-food market is around US$ 3.2 trillion. This indicates that both investors and exporters are yet to cash in on from the Indian food and processing industry.

Such being the situation, India has charted out stimulating strategies to double its processed food production by 2015, and therefore will be establishing 10 food technology parks in an attempt to achieve this.

A Mega Food Park under the Ministry of Food Processing has already been unveiled at Shirwal near Pune.

India a Big Mart for Snacks and Confectionery industry

The Indian Snacks and Confectionery industry is estimated to be worth US$ 3 billion. Segregated into organized as well as unorganized sector, the organized sector of the snack market is currently registering a growth rate of 15-20%, while the growth rate of the unorganized sector is around 7-8%.

India a Big Mart for the Dairy industry

As per 2007 estimates, the Indian dairy sector is worth US$ 62.67 billion. The sector has been growing at a rate of 5 per cent a year. The dairy exports in 2007–08 clocked US$ 210.5 million against US$ 113.57 last financial year, while the domestic dairy sector might cross US$ 108 billion by 2011.

India a Big Mart for the Beverage industry

Taking into consideration India’s speeding beverage mart, cold drinks giant Pepsico is gunning for India. As per the latest reports, the company plans to invest over $220 million to enhance its existing capacity.

The market for carbonated drinks in India is worth US$ 1.5 billion, while the juice and juice-based drinks market is worth US$ 0.25 billion. Fruit-drink market is growing at the rate of 25%. It is the one of the fastest growing in the beverage market. Sports and energy drinks too have a good market in India.

The market for alcoholic drinks has been growing consistently.

India a big mart for Food Chains and Restaurants

The food and grocery market in India is reportedly the sixth largest in the world, a prospect inspiring enough for big retail food chains to scale up their operations in India. As per the latest reports, McDonald’s is planning to open 40 new outlets across the country in Mumbai, Chennai and Hyderabad. At present, the company operates 160 outlets.

Food and grocery retail comprises 70 per cent of the total retail sales. And the good news is that this segment is growing at an unbelievable rate of 104 percent.

Even today, ninety nine of these segments are unorganized and therefore there is massive scope for growth especially for the organized sector. The organized food retail market comprises restaurants, fast food outlets, coffee houses etc.

Private funding in the food industry

As per the latest reports the total amount of private investment in the food processing sector for the next three years will be around US$ 23 billion.

* Adani Wilmar, the owner of Fortune edible oil brand, plans to invest close to US$ 199 million in soya and mustard oil projects.

* Reliance Industries Ltd will probably invest US$ 1.25 billion in a dairy project.

Government Initiatives to boost India’s prospect at the global level

* Food processing industries have been listed as one of priority sectors for bank lending.

* Zero excise duty on fruit and vegetable processing units

* Foreign equity up to 100 per cent is permitted for most of the processed food items

. * Zero excise duty on items like fruits and vegetables products, condensed milk, ice cream, meat production.

* The excise duty on ready to eat packaged foods and instant food mixes has been brought down to 8 percent from 16 percent.

* Excise duty on aerated drinks has been brought down to 16 per cent from 24 per cent.

Watch the video related to dairy industry

A video that showcases the innovation and dedication of dairy farmers in Pennsylvania.

Help answer the question about dairy industry

Is it difficult for businesses in the dairy industry to survive in the future? yes or no? why?
They said that dairy industry is changing? changing in WHAT ASPECTS? what are some reasons why it is changing, and will it be difficult for companies in the dairy industry to survive in the future? if yes, then why? if no, why?

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9 Responses to “India a big trade mart for the food industry”

  1. Vegeman says:

    I'll take it one step further and propose that the brainwashing goes beyond the meat and dairy industry.

    The Food and Drug Administration is largely responsible for convincing people that they need various animal products in their diets to be healthy. They are responsible for the food pyramid that is learned in grammar school. It's ingrained in us at an early age. Whatever agenda the meat and dairy industry may have is easily and quickly carried out by the FDA.
    The FDA and the Department of Agriculture are closely linked and of course, lobbyists serve both groups quite loyally.
    They are both masters at perpetuating lies.

  2. chakra says:

    Yes, because other countries can produce dairy products more cheaply.

  3. hooman_c says:

    THe USEPA sector notebook (reference) will have a section on wastewater in the industry. IFC has a good reference also (with many references).

  4. honalie says:

    It's the exact opposite. The amount of protein and calcium in our diets actually make us more prone to osteoporosis. The amount of dairy we eat in our country is horribly bad for us and does not strengthen bones at all. Watch "Diet for a New America" for more info

  5. Josee says:

    Bacteria is used in milk to make cheeses and yougart.The bacteria is that which makes milk sour.

  6. BexxiPop says:

    It's pretty much changed completely.

    Back then it really wasn't much of an industry. Most people raised their own small herd of cattle and produced what they needed for their family. What little commerce existed was on an extremely local and mostly bartered basis. There would have been very little regulation (if any) regarding sanitation, safety, or pricing. Prior to 1864, pasteurization didn't exist. Sanitation, safety, and pricing are heavily regulated today. In much of the US it's illegal to sell unpasteurized dairy products and the pricing structure is hotly debated by the federal government.

    There has also been a huge change in production since 1860. In the 1860's there would have been very little dairy surplus to export. In 2008, dairy exports from the US were nearly $4 billion.

    Production per animal and per farm has increased greatly, too. Typical farms in the US milk over 100 cows that give over 70 lbs of milk a day, while back in the 1860's there were likely less than 10 cows per farm (probably more along the lines of 1 or 2) that would have given less than 30 lbs per day.

    Aside from those differences, the biggest is probably technology. Milking is no longer the manual process it used to be. The milking machines still need to be put on by hand, but the suction is provided by machine. Nearly all pregnancies are due to artificial insemination. Modern refrigeration allows milk to stay fresh longer and be transported greater distances. Modern equipment for harvesting crops has made growing, harvesting, and storing crops much easier and requires much less manpower.

    Another major technological advancement is our understanding of nutrition and veterinary medicine. Many diseases that were lethal in the 1860's are now prevented with vaccines and improved housing and sanitation or are treatable with modern vet medicine.

    I hope that helps.

  7. Mrs. Spock says:

    "A righteous man regardeth the life of his beast: but the tender mercies if the wicked is cruelty".
    (Proverbs.12:10)
    "Be thou diligent to know the state of thy flocks, and look well to thy herds".
    (Proverbs.27:23)

  8. Stephanie. says:

    Nope. No rules set by the government in that area.

  9. Benduker says:

    Dairy goats are very personable, hardy, and a very rewarding animal. They are often preferred by people who strive for a self sustaining life. A female goat is called a Doe. A male goat is called a Buck. If the male goat is castrated it is called a whether.

    Goats milk

    It is the most consumed milk in the World.

    More people drink the milk of goats than any other single animal in the world. Does are milked by hand or machine.

    Goat milk has a more easily digestible fat and protein content than cow milk. It is more recommend for baby humans and animals. The glycerol ethers are much higher in goat than in cow milk which appears to be important for the nutrition of a nursing newborn.

    Goat milk can successfully replace cow milk in diets of those who are allergic to cow milk.

    Many dairy goats, in their prime, average 6 to 8 pounds of milk daily (roughly 3 to 4 quarts) during a ten-month lactation, giving more soon after freshening and gradually dropping in production toward the end of their lactation. The milk generally averages 3.5 percent butterfat. A doe may be expected to reach her heaviest production during her third or fourth lactation.

    Feeding

    Dairy goats need a good supply of roughage. Alfalfa hay is the most use choice for the basic nutrition Kids and bucks need a balanced grain ration and milkers should be fed a standard dairy grain ration. Kids are milk fed until two to three months of age, but should be consuming forages such as pasture grass or hay by two weeks of age and grain within four. All dairy goats should have loose minerals in a container that is free for them to lick whenever they want. Also fresh clean water is important. Dairy goats are very particular about the cleanliness of their food. There are a naturally curious and may lead them to investigate newly found items by sniffing and nibbling, but they quickly refuse anything that is dirty or distasteful.

    Housing

    Dairy goats adapt well in all climates. They do not need elaborate housing, but do require clean, dry, well ventilated, draft free shelter. They need at least 15 square feet of bedded area for each goat. The pasture area should be a minimum of 25 square feet of space per animal, well-drained and properly fenced. Dairy goats have a strong herd instinct and prefer the companionship of at least one other goat.

    Bucks should be kept in separate quarters away from milking does.

    Other products- goat cheese and chedder.

    People are drawn to the vibrant tangy flavors found only in goat cheese. Great goat cheeses capture the essence of their native pastures and often exhibit fresh flavors such as of thyme tarragon rosemary lemongrass and pine.

    goat milk is used in the preparation of body soap.

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