Hotline: 1800 102 2007
Hotline: 1800 102 2007
Search Business Opportunities
Dairy Business 2018-11-30

3 Reasons Why You Should Invest In Dairy Business In Kerala

The Kerala dairy market is further expected to grow at a CAGR of around 6% during 2017-2021

By Content Writer
3 Reasons Why You Should Invest In Dairy Business In Kerala

Dairying has been inherent in Indian culture, for centuries. Our country has had a rich tradition in dairying since ancient times. The Indian dairy market is amongst the largest and fastest growing markets in the world. The state of Kerala represents the 12th largest dairy market in India. Currently, milk represents the biggest product segment in Kerala, accounting for more than 71% of the total market share.

There is huge scope for investors or entrepreneurs who are planning to foray into the dairy segment. The Kerala dairy market is further expected to grow at a CAGR of around 6% during 2017-2021, reaching a volume of 4.6 Billion Litres in 2021. Here are the top 3 reasons why it is the best time to start a dairy business in Kerala.

Consumer Demand for Fresh Milk

Kerala has been hit by the worst floods this year. Rains and Floods have ravaged daily life in the state. Dairy farmers were one of the worst affected and milk production dipped to 50% post-floods. Though the production rate is limping back to normal, to compensate for the low milk production and high demand, cheaper milk from Tamil Nadu has entered the market. The packaged milk has a high risk of adulteration and no assurance of quality.

This is the reason why the demand for farm fresh milk, sold directly to homes or marketed as a certain brand through shops, has gone up considerably. Consumers are ready to switch from milk packets to farm milk if readily available, even if it is costly.

Entry of E-commerce

Another factor which is going to add-on to the profit of dairy businesses is the entry of e-commerce sites. Recently, the online grocery store BigBasket has acquired delivery service business to deliver milk to 20,000 customers.

The company expects the milk delivery business to be an Rs 10-billion business by next year and also plans to launch its operations in Kochi soon. This will provide business opportunity to many dairy businesses in the state.

Dairy Entrepreneurship

There has always been a huge difference in the demand-supply ratio of milk production. However, recently there has been an improvement in milk production and the demand-supply mismatch of milk is now around 24 per cent.

So, now the State government of Kerala is trying to enhance self-sustainability in the dairy industry. Thus, to motivate the younger generation to venture into dairy entrepreneurship, the government is planning to implement a massive dairy entrepreneurship programme. This will offer a remarkable business opportunity to those who are planning to enter into dairy industry in Kerala.

star franchise india
Divya Varma : 02, Jul 2019 at 03:34 AM
Related opportunities
  • Others Food Service
    Zing Kitchens is a unique business proposition for new entrepreneurs..
    Locations looking for expansion Haryana
    Establishment year 2011
    Franchising Launch Date 2019
    Investment size Rs. 30lac - 50lac
    Space required 700
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Gurgaon Haryana
  • Casual Dine Restaurants
    About us: The first Kenny Rogers restaurant was opened in coral..
    Locations looking for expansion New Delhi
    Establishment year 1991
    Franchising Launch Date 2017
    Investment size Rs. 50lac - 1 Cr.
    Space required 10000
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater South Delhi New Delhi
  • Bricks & Cement & Sand Supplies
    About Us: Ambuja Cements Ltd, a part of the global conglomerate..
    Locations looking for expansion Maharashtra
    Establishment year 1985
    Franchising Launch Date 1985
    Investment size
    Space required 5000
    Franchise Outlets -NA-
    Franchise Type -NA-
    Headquater Mumbai Maharashtra
  • Preschools
    About Us: A place for Joyous Learning At TOTTER STEPS, learning is..
    Locations looking for expansion Gujarat
    Establishment year 2017
    Franchising Launch Date 2019
    Investment size Rs. 5lac - 10lac
    Space required 1500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Ahmedabad Gujarat
Insta-Subscribe to
The Franchising World
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities
More Stories

Free Advice - Ask Our Experts

ads ads ads ads