Dairy and Confectionary
Consulting Services for Dairy and Confectionary
The dairy and confectionary industry is one of the industries, which has been built and sustained, by the local groups and farmers as there is not a technological improvement in the area of cattle management and milking. Cooperative Societies largely consist of farmers and cattle rearers, formed according to the geography of the region. These societies collect the milk collectively, which is then sold to the dairy processing plant for further processing. The societies are mostly paid for their milk based on the content of fats, solid non-fat (SNF) present in the milk and the quality of milk collected. Providing competitive rates for the milk, and giving training to the framers on effectively raising the quantity and quality of milk are some of the measures taken by milk processing companies to retain the societies and build their loyalty towards them.
Technological changes have played a major role in the growth of the dairy industry, from new milk processing techniques to much-evolved packaging and rapidly improving cold supply chain facilities has helped the companies to increase the shelf-life of the products, which is a major factor in the dairy and confectionary industry. As disposable income increases along with the change in lifestyle habits, milk-processing companies are increasingly pushing for Value Added Dairy Products (VADPs) such as cheese, paneer, ghee, yoghurt, probiotic drinks etc. as these VADPs have higher margins as compared to milk.
The major challenge lies in the distribution and pricing of the products. The distribution channel varies from General Trade and Modern Trade to the new online channels which thrive on economies of scale. For the segment which caters majority of the market, pricing is a challenge as the market is very competitive towards price, middle channel also favours the one giving them greater margins and quicker sells. The consumption of milk and the confectionary industry is continuously growing; handling the same challenges will certainly help an organization boost its position in the market.
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