DAIRY ENTREPRENEURS DON’T NEED TO MILK A COW TO MILK A COW
Dr.S.Swetha Kanthi, Dr.Mannem Sravanthi
- Assistant Professor- Department of Veterinary and A.H Extension Education-SVVU-Tirupati. Can be reached at Shwethakanthi@gmail.com
- Assistant Professor-State level Diagnostic laboratory-SVVU-Tirupati
Young minds have the potential to transform challenges into opportunities, especially when they are equipped with the right mix of ideas, skills, and support. Entrepreneurial opportunities arise from this combination, along with the factors of production, contemporary knowledge, and available resources. It’s a common belief that entering the dairy sector requires owning a farm, and many people don’t consider opportunities beyond that. but, the modern dairy industry offers a wide range of entrepreneurial possibilities that don’t involve directly managing dairy animals. There are numerous associated aspects within the sector where profitable businesses can be built. The traditional mindsets of securing a job merely for survival or earning a basic living are becoming obsolete, The new generation seeks to create opportunities that not only provide employment but also generate a unique identity in the marketplace. Initiatives like Skill India, Make in India, Startups, seed-funding agencies, etc. have revolutionized the entrepreneurial sector in India. There are also substantial opportunities in the unorganized market, particularly in value-added dairy products, where innovation and entrepreneurship can expand.
Introducing innovation is the mantra for sustaining the dairy Processing industry: Innovations can be brought in to improve product quality, aspects of extending product’s shelf life, and reducing and recycling waste. There are abundant opportunities for Entrepreneurship in minimized equipment-based pasteurization methods, alternative packaging solutions, novel ways to fortify dairy products with nutrients, frugal innovations unexplored in the machinery and techniques involved to make them simple, and then the list goes on, The top 10 main entrepreneurial opportunities in the processing industry are discussed here.
OPPORTUNITIES IN VALUE-ADDED DAIRY PRODUCTS PROCESSING
- Entrepreneurial Opportunity in Organic Value-Added Products: Skippi Ice Pops Known for their preservative-free, naturally flavored ice pops, Skippi became the first startup on the shark tank India show to secure investments from all the sharks, raising ₹1 crore for 15% equity. Similarly M/S. Iceberg Outlet of Ice Creams, which promises that its process of farm-to-ice-cream making is entirely organic makes a notable mark with this claim. Organic processing and marketing are entrepreneurial ventures that focus on adopting sustainable and environmentally friendly practices in dairy farming, and this trend is set to stay ahead. This entrepreneurial opportunity is here to stay and has room for many and You definitely can be one.
- Dairy ByProduct Utilization firms: M/S Get-A-Whey is a popular brand offering India’s first healthy ice creams made with whey protein and zero sugar. This startup secured an investment of ₹1 crore for 15% equity through Shark Tank India. Utilizing dairy by-products such as whey and lactose opens up numerous business avenues. Entrepreneurs can explore innovative uses like manufacturing functional ingredients, creating animal feed supplements, or even producing biofuels. By-products are often less expensive, providing cost-effective opportunities for processing and new product development. Wealth from waste can fetch a fortune if you have the right mix of entrepreneurial exploration.
- Dairy Waste Management enterprises:Collecting and Implementing sustainable dairy waste management solutions is both environmentally friendly and potentially profitable. Techniques like anaerobic digestion for biogas production or composting can help manage waste while generating additional revenue streams. The government often supports and prioritizes ventures focused on recycling and waste management innovations. So if you are looking for some good funding choose offbeat ideas on this.
- 4. Dairy Export and International Trade firms:Expanding into the global market offers significant growth potential. Understanding international trade regulations, logistics, and cultural preferences is crucial for successfully exporting value-added dairy products to countries with rising demand. This can open doors to new revenue opportunities on an international scale. And now the EXIM policies are so liberal and widely promoted. If this area is not explored its an opportunity wasted.
- 5. Milk Powder Production Units:Milk powder, including Skim Milk Powder (SMP), Whole Milk Powder (WMP), and dairy whitener, is a versatile product used in various applications such as chocolates, bakery products, and infant formulas. The demand for milk powder is increasing, especially in the Asia-Pacific region, driven by urbanization and growing consumption of milk products. Infant formulas are a multimillion-dollar business. All of these enterprises promise evergreen demand.
- Milk Processing & Dairy Products: The dairy processing sector has a range of products including butter, yogurt, UHT milk, cheese, ice cream, paneer, ghee, etc. This industry is resilient even in economic downturns and presents numerous profitable opportunities. Focusing on specific products or processing methods can lead to a successful enterprise in this diverse field. For instance Chocolate Factories/ industry represents a lucrative segment within dairy processing. With a global market valued at around 8 lakh crores and is expected to grow 4.6% annually, there is a growing interest in Milk chocolates and dark chocolate as a healthier option. This sector offers opportunities for innovation and welcomes youth to enterprise
- Raw Ingredient Suppliers:Apart from raw milk in the processing industry, sourcing other ingredients like sugar, flavorings, stabilizers, etc is vital. Developing enterprises that supply them helps in providing high-quality materials at competitive prices, which is essential for maintaining product standards and profitability. This will be a lucrative enterprise when established with a well-laid network.
- Packaging Suppliers: Effective packaging is key to value-added dairy product distribution. Establishing packaging firms ensures a steady supply of quality packaging materials, such as bottles, cartons, and bags, which are crucial for product presentation and shelf life. An enthusiast can explore this area with unique designs and logos
- Transportation Providers: Transportation is a critical aspect of the dairy supply chain. Reliable transportation providers ensure the safe and efficient movement of raw milk, ingredients, packaging, and finished products. Effective logistics are essential for timely deliveries and overall operational success. This is a huge business on wheels.
- Warehouse and Storage Providers: Proper storage of raw materials and finished value-added products is crucial. Collaborating with warehouse and storage providers by farmers helps in managing inventory effectively, ensuring that products are stored properly and available when needed. This is an emerging need at the local level and opens up wide opportunities for enterprises.
OPPORTUNITIES IN MARKETING OF VALUE-ADDED DAIRY PRODUCTS
Processing and Marketing are the two critical components of any trade. In sectors where product shelf life is not a primary concern, Processing and marketing networks tend to be slower, and fluctuations have minimal impact on overall financial circulation. But, dairy Processing and marketing presents unique challenges due to its perishable nature and the need to cater to a diverse and unpredictable ever-expanding consumer base. Effective Value addition processing and marketing in the dairy industry requires specialized skills to attract a large customer base and manage variability and this is the seat of entrepreneurial opportunity.
In India, several successful case studies highlight innovative approaches to Processing and marketing value-added dairy products. By understanding unique strategies and market demands, a few examples given here talk about how an entrepreneurial opportunity can be created through value-added dairy ventures and how they have captured the market by diverse methods employed in this sector. As a pretext one needs to understand that no single method or strategy fits this ever-changing market, the dynamics always provide an opportunity when properly understood and explored. There are various strategies and each one has a bundle of unexplored entrepreneurial avenues the top 10 are given here.
- Marketing by Branding:
An enthusiast who wishes to be an entrepreneur can explore the branding aspects of the dairy industry; it will help distinguish the products from generic offerings. Create a strong brand identity that promises health, purity, and tradition, which are often key values for dairy consumers and this will create an edge for the new bee.
When someone says Amul your brain says the tagline “The Taste of India,” associating its products with trust, quality, and tradition. They stress Indian values and cultural connections in their branding. You would have probably seen it in their ads through social media where they reach out to the audience through their creative situational ads.
What is the takeback?
Focus on consistency in messaging that highlights the freshness, purity, or artisanal nature of your dairy products. Use packaging and advertisements to reinforce your brand’s story, whether it’s about locally sourced milk, traditional production methods, or modern health benefits. That’s it! You have a branded entrepreneurial venture.
- Marketing by Unique Demand Creation:By creating a demand for new or niche value-added dairy products by introducing innovations or targeting health-conscious consumers with specific needs any dairy product can be marketed. Imagine curd is considered a traditional best source rich in nutrients and it’s a very part of our culture but You might have come across ‘Epigamia’ which has created a unique demand for Greek yogurt. Now understand what has been its marketing strategy, it has positioned itself as a healthier alternative to regular curd. They educated the market on the benefits of protein-rich diets and there it is surviving in the Indian market.
What is the takeback?
Identify emerging trends, such as lactose-free products, high-protein dairy, or probiotics, and create products that cater to these niches. Launch educational campaigns that inform consumers about the benefits of these innovations.
- Marketing by Customization:Customized dairy products that cater to specific consumer preferences, such as flavored yogurts, personalized packaging, or even subscription-based milk delivery services. Imagine the potential for entrepreneurial opportunities in these multisectoral areas. Customization through packaging can itself thrive as a business on its own. Manufacturing flavoring agents and signature flavors are open avenues that can be explored. The supply of raw materials for customization has huge potential. You might have heard about M/S. Country Delight which offers fresh, unadulterated milk delivered directly to customers’ homes. They allow customers to customize their delivery schedule, quantity, and even type of milk (cow or buffalo).
What’s the takeback?
Provide options for consumers to customize their dairy products, such as choosing flavors, fat content, or packaging. Personalized subscription models can also create a loyal customer base. Now it’s your turn to explore!
- Marketing by Unique Product Creation: With the cuisine combinations you comeacross the social media and the experiments people do with food products, there is a whole new taste and market awaiting and quite welcoming new products which can be differentiated by offering unique dairy options that stand out in the market. This could be in terms of flavor, nutritional benefits, or even production methods. For instance desi cow/Native breeds Ghee, Milk and products made by Indian startups and local dairy farms have gained popularity for its perceived health benefits. Companies market A2 milk as being derived from indigenous cow breeds, which adds to its traditional and cultural appeal, further enhancing its uniqueness.
What’s the takeback?
Innovate with unique flavors, nutritional enhancements (e.g., fortified with vitamins), or specialized products (e.g., A2 milk, organic dairy) that set your brand apart from competitors.
- 5. Marketing by Trade Secret: When you go to certain famous brands of food outlets and order chicken wings bucket, the taste it provides cannot be matched when you use the same ingredients and recipe at home, similarly an entrepreneurial opportunity can be created if you have a unique process or recipe that adds value to your dairy products, For instance, M/s Gowardhan Ghee emphasizes the traditional method of making ghee, now it has positioned itself as a premium product with superior taste and purity. They maintain secrecy around their process to enhance its appeal. So when you have the right recipe and right product for the market, remember it’s a secret!
What’s the takeback?
Highlight a unique aspect of your production process whether it’s the method of fermentation, aging of cheese, or sourcing of ingredients and build a narrative around it without revealing all the details.
- Marketing by Social Proof:An opportunity waits for individuals who are good at customer relationships and communication to build in customer testimonials, reviews, and endorsements to build trust in Dairy products. Social proof can be particularly powerful in the dairy industry, where quality and safety are crucial. You might have heard M/S.Milky Mist, it purely uses social media and customer testimonials to showcase the popularity and quality of their dairy products, building credibility through real customer experiences. Now who are the people working on it? Is it a call for open opportunity? YES!
What’s the takeback?
To be a dairy entrepreneur not everyone needs to have a dairy farm. Create an opportunity for yourself to encourage third-party dairy product consumers to share their experiences with the products on social media, and feature their reviews prominently in the firm’s marketing materials. Use influencer partnerships to add credibility. Generate a pool of employment for the creative brains. And the key takeback is Social proofing can be done again and again on the same target groups.
- Marketing by Scarcity and Urgency: Seasonal marketing of dairy products is not so famous in Southern parts of India but in Northern parts, Gujia with mewa and khoya are quite limited-edition dairy products or seasonal offerings during Holi that generate urgency and excitement among consumers. For instance, Amul often releases special flavored ice creams or butter variants for festive seasons, creating a buzz and encouraging quick purchases before the products run out.
What’s the takeback?
Explore the corridor opportunity, Explore the market for seasonal dairy products (e.g., flavored milk during festivals, or special-edition cheeses) that are available for a limited time, driving urgency and repeat customers. When it’s on the table there you have created a market for the product and opportunity for yourself.
- Marketing by Influencer Partnerships/Social media:Food bloggers, Reviewers, Nutritionists, or chefs promoting food products is your every third reel on social media. M/s. Epigamia has collaborated with fitness influencers and nutritionists to promote their Greek yogurt as a healthy snack, reaching a health-conscious audience, where you often see this as a promotion add on their disclaimer. Marketing by content market creation is a third-party entrepreneurial opportunity if you have that skill in engaging content making such as blog posts, videos, and infographics that educate consumers on topics like the nutritional benefits of value-added dairy products, recipe ideas, or sustainable practices to be followed and the list never ends.
What’s the takeback?
Be an Influencer who can align with brand values, blogger, and creative content writer, such as promoting natural, healthy living. Collaborate on recipes, cooking shows, or social media challenges that highlight dairy products or market your own product through same means.
And a potential opportunity exists for Experiential Marketing, Community marketing, where farm touring, Product sampling, and themed pop-up outlets are still under-explored in India.
- AI-Based Marketing in the value-added products of Dairy Industry
The future is unpredictable and machine-based, if an entrepreneur realizes this, he is the one who is going to survive the tide of gen artificial intelligence, Explore brand Personalization algorithms, as seen with EpiGamia, tailor recommendations, and content, enhance customer experiences with product like A1 and A2 milk. Predictive analytics is a new arena used by Milk Mantra which optimizes inventory and forecast trends to ensure timely product availability and be a trend analyst. Chatbots offer real-time support, exemplified by Gowardhan’s customer service enhancements, and explore automation through bots. Sentiment analysis and image recognition which ensures technology packaging consistency and quality control. Bring in data-driven strategies for entrepreneurship.
- Robotic Enterprises for futuristic markets
Learning robotic applications in Processing and marketing is going to be the futuristic opportunity that will take over existing markets. And are you future ready is the question you need to ask yourself.
So to Milk a cow (To make a profit) through the Dairy sector you don’t really need to Milk a cow (Have dairy animals) always.
