A Shift from Crop-Mixed Traditional Dairying to Market-Oriented Organised Dairy Farming - Plausible Factors Responsible for Structural Transformation in Indian Dairy Sector

Demand for, and production of, livestock and livestock products in less developed countries (LDCs) is expected to double over the next 20 years (Delgado et al., 1999; Parthasarathy Rao et al., 2004). About 23 per cent of the world population live in developed countries and presently consumes three t...

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Bibliographic Details
Published in:The Indian journal of agricultural economics 2010-04, Vol.65 (2), p.298-307
Main Authors: Shah, Jignesh, Dave, Darshana
Format: Article
Language:English
Subjects:
Agricultural areas
Agricultural exports
Agricultural production
Animals
Applied economics
Commodities
Consumption
Dairy farms
Dairy industry
Developing countries
Food products
India
LDCs
Livestock
Livestock production
Milk
Milk production
Per capita
Population growth
Rural areas
Structural change
Urban areas
Urbanization
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Summary:Demand for, and production of, livestock and livestock products in less developed countries (LDCs) is expected to double over the next 20 years (Delgado et al., 1999; Parthasarathy Rao et al., 2004). About 23 per cent of the world population live in developed countries and presently consumes three to four times the meat and fish and five to six times the milk as those in developing countries (Delgado et al., 1998). The International Food Policy Research Institute (IFPRI), Washington, D.C. in a seminal work Livestock to 2020 observed that population growth; urbanisation and income growth in developing countries have fuelled a massive global increase in demand for food of animal origin. With increased urbanisation and change in life style, food habits are changing leading to increased consumption of semi-processed and processed food of which milk and milk products and meat occupying significant place. Typically, this phenomenon is described by experts as "revolution" propelled by changes in the society and improvement in well-beings, and in the same context compared as "Green Revolution" of the late 1960s. Livestock production has been growing faster than any other agricultural sub-sector, and it is predicted that by 2020 livestock will account for more than half of total global agricultural output in financial terms (This process has been termed as 'livestock revolution1) (Conroy, 2004). Nonetheless, it is qualified that while the green revolution was supply driven, the present livestock revolution is demand driven, and therefore changes in demand driven factors assume greater importance. One dimension of the livestock revolution has been the industrialisation of livestock production, with production changing from being the traditional local multi-purpose activity to an increasingly market-oriented and vertically-integrated business (Delgado et al., 1999; Steinfeld, 2002).
ISSN:0019-5014