for value-added dairy products as
compared to the base product, liquid
milk. For example, doctors today have
started recommending Pro-Biotic
drinks to consumers with digestive
issues. Such recommendations make
a lot of impact on the consumers’
purchase patterns and to the overall
industry.
Evolving financial trends
With the rise in personal disposable
income, consumers today have
the spending power to purchase
value-added products which are
priced significantly higher in comparison
to liquid milk. At the same time,
increased income has also given rise
to the trend of eating out and a sudden
increase in the number of restaurants
and café chains which have become one
of the largest buyers for cheese, milk,
paneer and other such value-added
products.
Easy availability of the primary
product and strategic pricing
The fact that India is one of the largest
producers of milk in the world has
proved to work in favour of the Dairy
Industry. Large farms have set up across
the country to fulfill the ever-rising
demand. This has also led to betterment
in the quality of these products which is
due to an improvement in the quality
of milk. Milk is now procured directly
and this has acted as a catalyst in the
process of reducing prices as now the
need for middlemen is eliminated.
Also, the traditional mental block,
which emphasizes the need for state
of the art and expensive technology
in order to produce value-added milk
products, has been overcome. Funding
from major companies in order to set
up the divergence from the production
of only liquid milk to these value-added
products has been of great help in
the development of the value-added
products sector.
Companies that go along with the
recent changes and go on to upgrade
themselves have borne the rewards for
these. Tailoring in the DNA of a dairy
products’ company has vitalized their
output and hence, the economy of the
firm and the industry at large. Their
profit can be increased by allocating
a budget for extensive marketing and
advertising to keep themselves ahead
of their competitors.
Drink Asia
35
July-August 2019