Basic Facts Highest producer of milk Organized dairy accounts
for only 30% of milk produced Only 70,000 Ton cold storage capacity
for 90 million Tones produced Poor yield per cow Second largest
cattle population 5500 registered & 25770 unregistered
slaughter houses with no chilling, freezing & cold storage
facility as hot meat market prevails The Second largest grower of
fruits 15% of world output Low share of global Exports at 0.5% The
Second largest grower of vegetables 11 % of world output Low share
of global exports at 1.7% Cold storage facility available for only
10% of produce Lowest cost producer of fruits & vegetables Low
farmer income farmer suicide 3 Prospects of Food Industry
Slide 4
Facts (cont.) Fifth largest producer of eggs Poultry meat sold
as hot in retail market Sixth largest producer of fish 20 30%
damage and no cold storage facility in WB, AP, Goa Low processing
2.20 % in fruits 35 % in milk 6 % in poultry Value addition 20%
Indias current share in world trade of processed foods 1.60 % Poor
lab to land transfer of technology and adoption of new varieties.
example of pineapple Source: Task force Report on Development of
cold chain in India GOI/CII APEDA data 4 Prospects of Food
Industry
Slide 5
Facts (cont.) Market surplus of fruits & vegetables 88%
Farmer sells immediately due to perishability & absence of
proper infrastructure to keep it for longer period Post Harvest
wastage of fruits & vegetables 25 to 35% valued at over Rs
45,000 crore Losses as above in India is more than consumption of
same in UK Market surplus of food grains 60% Farmer keeps some for
own consumption, seed purpose and to give to labour as wages Loss
in above equal to annual food grain production in Australia Cost of
wastage - 6 times amount spent on food subsidy Farm gate price- 25%
of domestic consumer retail price and against 50% in developed
countries Source: Task force Report on Development of cold chain in
India GOI/CII 5 Prospects of Food Industry
Slide 6
Key Drivers To be a Global Agri Super Power Political
environment Strong and Credible Coordinating & Promotion agency
Strong Corporate leadership Strong Consumer base Optimal Agro
climatic conditions 1 2 3 4 5 Strong Demand 6 Prospects of Food
Industry
Slide 7
Role of Key Drivers Attracts Investment Provides Stability
Encourages Infrastructural development Political Environment R
& D initiatives including development of high yielding
varieties Financial & Technical Assistance Extension activities
Grower awareness Strong and Credible Coordinating & Promotion
Agency Risk taking abilities Managerial skill development Risk
mitigation Strong Corporate Leadership Internal consumption to
avoid surplus stock accumulation Encourages Economies of scale
Globally Competitive to serve wider base of consumers. Consuming
and Processing Industry Favorable Growing conditions Sizeable
irrigated acreages. High land productivity, land being a very
scarce resource Agro climatic conditions 7
Slide 8
Is India Ready to be a Global Power ? Quality & consistency
at grass root not at desired levels Growing consumption based
industry cheaper labour Good governance Favourable policies &
spending Focus on Agri/rural sector Strong Corporate leadership Low
level of value addition, high post harvest loss Infrastructure -
power, irrigation -still developing Weak & ineffective Supply
chain Literate workforce Inherent Natural advantage 8 Prospects of
Food Industry
Slide 9
Challenges And Strategy For Future . Food processing
Utilization of scarce resources MORE CROP PER DROP, power etc
Varying taste preference within the country Increasing
International Competition Non tariff barriers Integrated Food law
to remove multiplicity of food laws & regulatory agencies
Challenges Indian domestic market Diversifying into new markets and
product segments Post harvest loss management itself to provide
funds for investment Opportunities Enhancing the sales of Value
added products Creating Economies of Scale Lab to Land & Farm
to Fork linkages Introducing innovative products Strategy 9
Prospects of Food Industry
Slide 10
India .. A land of opportunities 52% cultivable land as against
11% world wide Unsurpassed Natural Advantages All the 15 major
climates of the world 46 out of the 60 soil types 17% animal, 12%
plant and 10% fish genetic resource of the world India is one of
the largest producers of wheat & rice, second largest producer
of Groundnut, fruits & vegetables and tops in production of
mangoes and bananas. India is the worlds largest producer of milk.
India has potential to be leading global food supplier if it
creates efficient supply chain & marketing. Food processing
sector ranks fifth in terms of contribution to GDP Indian urban
food market estimated at 350,000 crore Source: FICCI/KPMG study and
Task force Report on Development of cold chain in India GOI/CII 10
Prospects of Food Industry
Slide 11
Can COCHIN in India be a sourcing hub for food products ? Good
governance Strong, Stable and reform oriented government WTO
signatory Strong economy comparatively resilient to the current
economic crisis Focus on improving the Road connectivity Vision to
solve the power situation Nuclear energy Improving relationship
with neighboring countries and a more important role in the WORLD
ORDER Focus on agriculture & rural sector Has a Strong
agriculture base Increased out lay for rural spend Rural economy to
be given the next big push to GDP Annual rural income to increase
from 2.8% to 3.6% over next 2 years Source: FICCI KPMG study 11
Prospects of Food Industry
Slide 12
Towards being the 5 th largest consumer market by 2025 Large
young earning population 50% of population under 25 years of age
Ready to experiment and try out new products Increase in number of
upper middle class & middle class by 159 % & 63 %
respectively Urban population projected at 40% by 2020 Middle class
of 200 250 million spread across the country to increase to 580
million by 2025 Dual income households Higher disposable incomes
Ready to try out value added products Source: Mc Kinsey Report May
2007: The Rise of Indias consumer market 12 Prospects of Food
Industry
Slide 13
Suggestions . Reduction of wastage /spoilage to be tackled on a
war footing Accelerated establishment of cold chain networks
Irradiation facilities and pest free warehouses Encourage SSI units
and corporate to set up food processing units Improvement of
productivity both land and manpower Example the case of Rubber
where India has the highest land productivity in the world Change
in cultivation practices such as irrigation for paddy rather than
method of flooding the fields Price stability Make farming
remunerative to attract talent and retain farmer interest 13
Prospects of Food and Dairy Industry
Slide 14
Suggestions Role for corporate Incentives to Corporate to enter
core farming land ceiling restrictions Increase Mechanization to
tackle low availability of labour and to remain a low cost producer
Liberalized credit norms for agricultural production, marketing and
infrastructure development Changes in market regulatory framework
to allow corporate to establish market yards At present 7521
regulated markets which lack critical infrastructure Review of
legal instruments to facilitate entry in marketing activities 14
Prospects of Food Industry
