China offers huge potential for Indian dairy products
Friday, 11 June 2004, 19:30 IST
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NEW DELHI: India, the largest producer of milk after the US, can reap rich dividends by tapping the export potential for dairy products in the fast growing Chinese market, said an industry study Friday. According to the Confederation of Indian Industry's (CII) report on 'Export Potential of Indian Dairy Products to China,' India has the capacity to raise the production of milk to meet the demand of exports. "China's dairy industry is still at a nascent stage of development, and India, which has many unique indigenous products like sweets, ice cream, and yogurt, could find their way in the growing Chinese market," said the report. The report says that the Chinese dairy industry, with 1,500 milk product enterprises and an annual output of about eight million tonnes, was small in scale and low in production with low technology level. "Ninety percent of these enterprises are small, with a daily output of less than 100 tonnes, while only 12 enterprises have an annual sales volume exceeding $12 million," it said. The CII report said milk production in India accounted for more than 13 percent of the world's total output and 57 percent of Asia's total production. The projected output of the domestic dairy industry in 2010 is 115 million tonnes at four percent annual growth and per capita availability of 96 kg per year. Dairy consumption in China has increased by over 10 percent per year during the past three years. Per capita dairy consumption was as low as seven to eight kg in 2001, which was far below the world average of 105 kg. "With the reduction in tariff, foreign companies are likely to play a major role in China's dairy industry," said the report. It estimates that consumption of dairy products in China would increase at an average rate of 15 percent in the next five years. "As foreign companies enter the Chinese market to exploit the market conditions available in China, there is a good opportunity for Indian dairy enterprises to export or set up businesses in China," it added.
Source: IANS
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