In the year 2006-07the total milk production in the country was over 94.6 million tonnes with a per capita availability of 229 gms per day. The industry had been recording an annual growth of 4% during the period 1993-2005, which is almost 3 times the average growth rate of the dairy industry in the world. Milk processing in India is around 35%, of which the organized dairy industry account for 13% of the milk produced, while the rest of the milk is either consumed at farm level, or sold as fresh, non-pasteurized milk through unorganized channels.

Dairy Cooperatives account for the major share of processed liquid milk marketed in the India. Milk is processed and marketed by 170 Milk Producers’ Cooperative Unions, which federate into 15 State Cooperative Milk Marketing Federations. Over the years, several brands have been created by cooperatives like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan). Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur).

Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu are the milk surplus states in India. The manufacturing of milk products is obviously high in these milk surplus States. Exports of dairy products have been growing at the rate of 25% per annum in the terms of quantity terms and 28% in terms of value since 2001. Significant investment opportunities exist for the manufacturing of value-added milk products like milk powder, packaged milk, butter, ghee, cheese and ready-to-drink milk products.

India has emerged as the largest milk producing country in the world with present level of annual milk production estimated as 94.5 million tonnes. We expect a production level of 135 million tonnes by the year 2015. India has a large livestock population base constituting 278 million livestock including 180.5 million cattle, 82.8 million buffaloes, 4 million sheep and 9.2 million goats. The livestock population is projected to increase to 322 million by the year 2015. The large livestock population is raised primarily on crop residues and grazing in the common property including basement. The forest area, which was a major source of grazing, is no longer available to livestock breeders especially landless people. As a consequence, the available feed resources fall short of the nutritional requirement. The shortfall is estimated as 59.9 million tonnes for the green fodder and 19.9 million tonnes for dry fodder. This shortfall is likely to increase by 2015 to 63.5 million tonnes of green fodder and 23.56 milli
on tonnes of dry fodder.

The landless people are, therefore, likely to face severe shortage of resources to raise cattle and other species of livestock. There is a real danger that in the absence of resources to maintain their stock, these under-privilege rural people may give up livestock farming. This could be a serious setback to lakhs of rural families who derive income as well as employment opportunities from livestock sector.

India prepares to tackle the international market following Japan, where milk consumption today, has more than trebled to 70 kg per capita from a mere 20 kg in the 'sixties - the consumption of dairy products in other Asian 'tiger' nations is also growing. As a consequence - creating excellent export opportunities for India, as these nations are deficient in milk by at least 3 million tones per year. India, with some 27 per cent of Asia's population, accounts for more than half of the milk output with enough growth potential to explore foreign markets. In anticipation of the export opportunities and in view of the post GATT scenario, India is gearing up to tackle the demands of the international market.

Indian companies are preparing themselves to meet international standards and other non-tariff barriers. Planners are taking measures to meet the sanitary and phyto-sanitary specifications - prescribed by Office International des Epizooties (OIE) under the auspices of the World Trade Organization (WTO) -, which range from the quality assurance of processed dairy products to the health status of livestock.

In modern times, Milk products viz Ghee, Butter, Mava (Khoa), Penda, Paneer, Curd (Dahi), Butter milk, Srikhand, Basundi, Flavoured milk,Cheese, Rabri, Kheer, Cream, Mattha, Lassi etc. are gaining great eminence and their demand is increasing at a considerable pace.

Milk as well as Milk products are mostly of daily consumption in our day to day life, and their nutritious value for health promoting cannot be underestimated.

Milk is very salubrious for the health of our human body, which contains lactose vitamins, etc.

The importance of milk in human diet especially for children and expectant and nursing matters is vital. To meet the demand of the increasing population milk production in India has to be increased upto about 84 million tons by 2010 Ad. It is neither possible nor desirable to increase the cattle and buffalo population to achieve this target. This can only be achieved by stepping up milk production of our bovine population by cross breeding of cows and use of improved cows and buffaloes.

Dairying in India is a subsidiary occupation of almost all the farmers. More than 60 per cent of the families involved in dairying belong to the small or marginal farmers or even agricultural labourers.

INTRODUCTION
PROPERTIES OF GHEE
PROPERTIES OF BUTTER
USES AND APPLICATION
SPECIFICATION OF PACKAGED, PASTEURIZED MILK
B.I.S SPECIFICATIONS
MARKET SURVEY
MILK PRODUCTION IN INDIA
EMERGING NEW TECHNOLOGIES IN THE DAIRY INDUSTRY IN INDIA
NEW PRODUCTS AND PROCESSING
KHOA AND KHOA BASED SWEETS
BUYING AND COLLECTION OF MILK
CHILLING AND TRANSPORTATION OF MILK TO PROCESSING STATION
MANUFACTURING PROCESS
FLOW DIAGRAM
PROCESS FLOW DIAGRAM OF MILK PROCESSING
MANUFACTURING PROCESS OF GHEE
GHEE MANUFACTURING PROCESS
BUTTER MANUFACTURE PROCESS
PANEER MANUFACTURING PROCESS
FLOW DIAGRAM FOR GHEE
FORMULATION OF FLAVOURED MILK
TECHNOLOGY AND PROCESS OF BUTTER
SUPPLIERS OF RAW MATERIALS
SUPPLIERS OF PLANT
COMPLETE PLANT & MACHINERY SUPPLIERS FOR DAIRY PRODUCTS

APPENDIX – A :

1. COST OF PLANT ECONOMICS
2. LAND & BUILDING
3. PLANT AND MACHINERY
4. FIXED CAPITAL INVESTMENT
5. RAW MATERIAL
6. SALARY AND WAGES
7. UTILITIES AND OVERHEADS
8. TOTAL WORKING CAPITAL
9. COST OF PRODUCTION
10. PROFITABILITY ANALYSIS
11. BREAK EVEN POINT
12. RESOURCES OF FINANCE
13. INTEREST CHART
14. DEPRECIATION CHART
15. CASH FLOW STATEMENT
16. PROJECTED BALANCE SHEET

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