Overview of the Dairy Industry

Milk is a fundamental requirement for every household in India. There is a considerable need for milk and its by-products all year round. The reason for milk's rising demand is that it is used to make various goods, including cheese, butter, curd, ice cream, butter, ghee etc. Therefore, operating a dairy farm in India is a successful business idea. The cost to start a dairy farm in India ranges from 10 to 20 lakhs. Over the past three years, India's dairy product exports have steadily increased. India exported 108,711 MT of dairy products to the world in 2021–2022 for a total of Rs. 2,928.79 crores (US$ 391.59 million), with Bangladesh, the UAE, Bahrain, Malaysia, Saudi Arabia, and Qatar serving as key export markets. The government has also taken steps to support the infrastructure for Dairy Industry, including the National Dairy Plan (a framework for the industry focused on sustainable growth) and general empowerment programmes like the Jan Dhan Yojana and the Start-up India initiative. The market potential for these commercial operations is enormous in several states that produce the most milk and milk-related goods.

Advantages of Setting up a Dairy Industry

The sector supports more than eight crore small and medium-scale farmers and makes up nearly 5% of the country's GDP. India's dairy business has expanded over the past ten years thanks to several government initiatives. Between 2014–15 and 2020–21, the country's milk output increased at a CAGR of 6.2%, from 146.31 million tonnes (MT) to 209.96 MT, indicating a non-stop consumption of milk and various dairy products over these years. India also has a huge advantage, after establishing itself as one of the biggest exporters when it comes to dairy products exports. The Indian food processing industry is known for the value-addition of dairy products, including spreads, cheese infant food preparations, milk albumin, milk powder, butter, and butterfat.

Prerequisites for Dairy Unit Registration in India

In India, operating a Dairy Industry does not necessitate hiring highly skilled labour. The number of mature cows and female buffaloes in a dairy or gaushala can be classified into five categories: Category-I (up to 25 animals), Category II (26–50 animals), Category–III (51–75 animals), Category–IV (76–100 animals), and Category–V (above 100 animals). The municipal veterinarian and dairy development departments' registration is also required for setting up the dairy farm. Depending on where the dairy farm will be located, one must contact the Municipal Corporation Department or a nearby panchayat to obtain a licence to begin a dairy farm.

Documents required for Setting up a dairy Industry

Small-scale dairy and dairy product processing is included in the Orange Category because it has the potential to pollute the air and water. The manufacturing of dairy products and milk processing are included in the red category of industries built as integrated projects. The following documents will be required while setting up a Dairy Industry

• Site or layout plan with a roadmap
• Copy of any permission required from the State Government
• Details of the manufacturing and finished products
• Detailed Project Report.
• Details of installed waste treatment measures and pollution control measures
• water balance, source of water, and its required quantity
• list of machinery, the capital cost of the unit
• Land documents such as rent /lease agreement
• Duly filled Application Form of concerned SPCB.
• Industry Registration Documents.
• Consent fee (as applicable)
• Balanced Sheet Certified by a CA
• Lab report of the trade emissions and effluents
• Any additional document mentioned in the application form

Stage 1: Setting up a Dairy Processing Plant

Entrepreneurs starting Dairy Industry should concentrate on calculating capacity, process scheduling, selecting the best plant structure, and managing waste and by-product management. Following are the steps the milk goes through in the dairy processing plant.

• Reception Section
• Processing section
• Storage and Packaging Section
• Refrigeration Section

Stage 2: Licences and Authorisation Requirement

Depending on their activities, establishing a Dairy Industry and dairy farm/gaushalas will necessitate the acquisition of the following licences.

• Trade License from the local authorities
• SSI or MSME Registration with the Udyog Aadhaar Registration (if applicable)
• Trade Mark Registration
• GST registration for tax purposes
• Consent Certificates (Consent to establish/Consent to Operate)
• FSSAI Certificate

Stage 3: Operation and regular upkeep of the Unit

Records Keeping in a Dairy Processing Plant: The Dairy Processing Plant must abide by the Industrial Acts (Factories Act), Boiler Acts, Labour-Related Rules, and different food-related regulations

• ETP Compliance Records with information on effluent discharge and compliance.
• Records for receiving and tracing raw materials (including records for milk being received from BMCs, milk collection centres chilling centres).
• Compositional analyses for raw milk, processed milk, and milk products; Quality Control; Laboratory Test Reports Records; Microbial Test Records; Compositional Analysis.
• Reports of external testing for chemical and microbiological examinations of milk and milk products, food ingredients, additives, etc.
• COAs, or Certificates of Analysis
•  Records of internal and external audits/Correctional action (CAPA).
• Documentation for the supplier's accreditation and the delivery of packaging materials.
• Certificates for virgin/food-grade packaging materials and ink that can be used on milk and milk-related product packets are both available.
• Packaging materials testing history

Benefits of the Dairy Industry in India

• Milk and milk products are in high demand year-round. It is the most active market ever. In Indian households, milk is a fundamental necessity, and no other good can satisfy the craving for milk. Additionally, there is a tremendous need for milk in cafes, candy stores, tea shops, and other small and large enterprises.
• Skilled labour is optional to operate a dairy farm in India. As a result, this business has relatively cheap labour costs.
• Eco-friendly procedures are used in the dairy industry, which do not impact the environment. The costs of adhering to environmental rules and regulations are low.
• Animal waste can be utilised as manure for growing crops and as animal feed in biogas facilities, where it can also be broken down to produce natural gas.
• During India's festival season, milk and milk-related items are more in demand than usual. Consequently, you can increase your profit when the market is at its strongest.

Corpbiz Support

Companies looking to register their dairy Industry can approach the team of professionals at Corpbiz for expert assistance in obtaining authorisation and licences with ease.