Dairy Supply Chain and Logistics

 Dairy Supply Chain and Logistics-

The Indian Dairy Industry is the world's biggest milk maker and has come a long way from the British Period. The Indian Dairy Industry is responsible for more than 13% of the world's aggregate milk production. The demand of dairy products in India is expected to reach 200 million tons by 2022, according to NDDB. 

Milk is consumed by people all over the country but most don't know the intricacies of the dairy supply chain, responsible for carrying the dairy product from the farm to the supermarket. Dairy farmers are required to follow strict processing and handling requirements to make sure their milk products are fresh and safe to consume. They mostly milk the cows and distribute the products themselves to ensure good quality dairy products. As the demand for dairy products are rising, the dairy supply chain has evolved to be increasingly complex requiring more efficiency and speed throughout. 

This increasing demand for quick and efficient delivery of dairy products has made the dairy supply chain more complex. Various dairy products like Chocolate, milk etc are required to be chilled or refrigerated while in transport to prevent spoilage. There are several other factors that are necessary to develop an efficient supply chain like temperature, demand, humidity, distance, cost, packaging etc. 

The key material in the dairy supply chain is milk which is highly perishable and depends upon seasonality of supply. Thus, planning is required to convert surplus milk into intermediate products which can be reconstituted in future. The manufacturing efficiency can be improved by tracking the movement of the milk solids in the value chain. 

With the introduction of more diverse dairy products and increasing demand, the dairy supply chain has become a very complex supply chain. Firstly, the milk is procured by the farmers and is then either chilled at the farm or at a chilling centre before it reaches the dairy plant. The milk is then processed to make the final product. Then, it is filled, packed, labelled and stored in warehouses or refrigerated store rooms before sending it to the distributor or end user. Several tests are also performed during the manufacturing process so that the milk products meet the industry standard. 

Some of the challenges faced by suppliers in the dairy industry are Inadequate feeding of animals, disease prone animals, low genetic potential of animals, lack of refrigerator centres or chilling capabilities, exploitation of farmers, high production costs and delayed payment of dues. The lack of refrigerator centres and gaps in the cold chain and transport facilities are crucial challenges that affect the dairy industry at the Storage and Logistics stage level.