If you're looking to tap into the global demand for dairy products, India's rich dairy industry offers incredible export opportunities. Whether it's ghee, milk, cheese, or yogurt, there's a market out there waiting for your products. In this step-by-step guide, we'll walk you through the process of exporting dairy products from India and making a mark in the international market.
Why Choose Dairy Products for Exports
Choosing to export dairy products makes sense for several good reasons. India's dairy industry is very important for the country's economy, and it provides jobs and income for many rural families. Exporting dairy products can help these families and offer healthy food to people around the world. India has a wide variety of dairy products to offer, which can please different tastes. Plus, these products meet quality and safety standards, and there's a growing global demand for dairy items, making it a smart business choice for India.
Opportunity in Dairy Products Export from India and Market Size
India's dairy industry has shown impressive growth, reaching a market value of INR 14,899.8 billion in 2022. This trend is expected to continue, with a projected growth rate of 13.2% from 2023 to 2028. India's dairy sector has also gained international recognition, exporting about 68 thousand metric tonnes of dairy products valued at over 22 billion Indian rupees in the 2022 fiscal year.
On a global scale, the dairy industry is thriving, with an estimated market value of around 893 billion U.S. dollars in 2022. Projections indicate that this market is set to expand significantly, reaching 1,243 billion dollars by 2028.
Furthermore, the worldwide per capita consumption of fresh dairy products is anticipated to rise by 1.0% annually in the next decade. While Europe and North America are seeing relatively stable or declining per capita demand for fresh dairy products, there is a noticeable shift in consumer preferences towards products with a higher dairy fat content in these regions.
This evolving landscape presents a substantial opportunity for Indian dairy product exporters. By maintaining quality, embracing innovation, and meeting international standards, Indian dairy producers can tap into this growing global market and contribute to the global dairy trade.
In summary, India's dairy industry is on the cusp of substantial growth, with promising prospects for dairy product exports. To make the most of this potential, Indian dairy producers should focus on quality, innovation, and adapting their products to align with changing global consumer preferences, particularly the increasing demand for dairy fat in regions like Europe and North America.
Dairy Product Varieties with Export Potential
India is a land of diverse dairy products that have earned global recognition for their quality and taste. If you're considering dairy product exports, here's a simple guide to some of the varieties that hold great export potential.
Sourcing Dairy Products for Exports
If you're new to exporting dairy products, that's perfectly alright. There's a world of opportunities to discover. Let's focus on the top dairy-producing regions where quality dairy products are in high demand, making them an ideal starting point for your export venture.
Top Dairy-Producing States in India
- Uttar Pradesh
- Madhya Pradesh
- Andhra Pradesh
Dairy Procurement Options for Milk
When it comes to sourcing dairy products for export, various options are available to meet your specific needs and preferences. Here are the different ways to find dairy product suppliers:
(A) Export Through Franchise:
Partner with franchisers who provide the necessary infrastructure for milk chilling, grading, and testing. Milk is lifted from Milk Collection Centres (MCC) to our facilities, where it undergoes rigorous quality checks before being accepted.
(B) Export Through Supplier:
Collaborate with suppliers who have their dairy's own chilling facilities. These suppliers procure dairy products from local vendors and transport them to our export hubs. The dairy products are tested for quality compliance upon arrival.
(C) Export Through VLC System (Direct from Producers at Village Level):
Embrace a modern procurement system using Automatic Milk Collection Units (AMCU/DPMCU) and Village Service Providers (VSPs). This method allows for the collection of dairy products directly from producers, ensuring quality control at the grassroots level.
These procurement options offer flexibility and choice, allowing you to select the approach that aligns best with your export goals. Whether you prefer a franchised infrastructure, working with suppliers, or direct sourcing from producers, our options are designed to ensure quality and reliability in the dairy products you export.
You can pick the best method for each type of dairy product to meet your export goals. Whether you prefer a franchise, working with suppliers, or going directly to producers, our options are made to make sure the dairy products you export are of good quality and dependable, considering each product's special qualities.
Choosing the Right Dairy Product Supplier
When it comes to selecting a dairy distributor for your business, several essential factors should guide your decision. These include:
1. Product Range: Ensure the distributor offers a comprehensive range of dairy products that align with your business needs. Variety can be a key advantage in catering to a diverse customer base.
2. Quality Standards: Opt for a distributor known for adhering to stringent quality standards. This encompasses maintaining the freshness and quality of dairy products through proper storage and handling. High-quality dairy products are crucial for your brand's reputation.
3. Delivery Services: Timely and efficient delivery services are a must. Choose a distributor with a reliable logistics system to ensure that your dairy products reach your customers on time and in excellent condition. Efficient delivery can also help reduce supply chain disruptions.
Setting Up Logistics for Dairy Product Exports
When it comes to launching a successful dairy product export business, a well-structured logistics plan is essential to ensure the freshness and quality of your products during transportation. Here's a simplified guide to establishing a reliable logistics framework for your dairy product export venture:
Choosing a Dependable Freight Forwarder
Selecting the right freight forwarder is a crucial step when shipping dairy products internationally. Here's a straightforward guide to help you find the ideal partner:
Expertise in Dairy Products: Look for a forwarder with a proven track record of handling dairy products, and understanding their specific requirements for preservation and transportation.
Efficient and Knowledgeable Team: Opt for a forwarder with a capable team dedicated to ensuring on-time deliveries and the seamless logistics of your dairy product shipments.
Customer-Centric Approach: Prioritize a forwarder that values your needs, providing invaluable guidance and assistance in navigating the complexities of dairy product exports.
Prompt Quotes and Exceptional Service: Choose a forwarder that offers quick, accurate pricing and delivers top-quality service to safeguard the integrity of your dairy products.
Reputation Matters: A forwarder with a strong online presence and positive customer feedback is a trustworthy and credible choice.
Essential Export Documentation for Dairy Products
Exporting dairy products from India involves several documents and certifications to ensure compliance with regulatory and quality standards. Here is a list of some essential documents and certificates:
Company or Firm Incorporation Documents: This includes the legal documents that establish your business as a legal entity, such as the Certificate of Incorporation, Memorandum of Association, Articles of Association, and any other relevant incorporation papers.
Import Export Certificate (IEC) : IEC is issued by the Directorate General of Foreign Trade (DGFT) and is mandatory for any individual or entity engaged in the import and export of goods and services. It's a unique 10-digit number that is required for customs clearance.
Registration-Cum-Membership Certificate (RCMC): RCMC is provided by Export Promotion Councils or Commodity Boards. For dairy exports, you might obtain this from the Agricultural and Processed Food Products Export Development Authority (APEDA). It certifies that you are a registered member and eligible for various export promotion schemes and benefits.
GST Registration: Goods and Services Tax (GST) registration is essential for any business involved in the supply of goods, including dairy products. It ensures compliance with India's taxation regulations.
MSME Registration: If your dairy export business falls under the Micro, Small, and Medium Enterprises (MSME) category, you can get registered as an MSME. This provides various benefits, including easier access to credit and subsidies.
FSSAI License: The Food Safety and Standards Authority of India (FSSAI) provides licenses to ensure that your dairy products meet food safety and quality standards. It's mandatory for any business involved in food processing and export.
In addition to these documents and certificates, you should also be aware of the specific import regulations and requirements of the country or countries you are exporting to. Different countries may have additional documentation and certification requirements for dairy product imports, such as sanitary and phytosanitary certificates .
Finding International Buyers for Dairy Product Export
To grow your dairy export business from India, you need to connect with international buyers. This step helps you access new markets and opportunities for your dairy products.
Top 10 Importing Countries for Indian Dairy Products
When searching for international buyers for your dairy export business, having a well-thought-out plan is crucial. This plan should involve research, networking, participation in trade events, and leveraging the internet. The main goal is to connect with buyers interested in your dairy products.
Here are three effective strategies to engage with potential dairy buyers:
Enhance Online Visibility: Improve your online presence globally by investing in search engine optimization (SEO) strategies. This will make it easier for potential buyers to discover your dairy export business through online searches.
Build a Strong Dairy Brand: Focus on establishing a strong brand identity from the beginning. Invest in social media marketing to create a compelling online presence for your dairy products, attracting buyers in search of high-quality dairy items.
Collaborate with Industry Experts: Industry experts and customs house agents often have extensive networks in the export industry. Don't hesitate to seek their support in connecting with potential dairy buyers. They can offer valuable insights and introductions to help grow your export business.
In conclusion, dairy exports from India offer promising opportunities to meet global demand. To succeed, it's vital to understand the advantages, refine your sourcing, manage logistics effectively, and build strong relationships with buyers.
At Citrus Freight , we are fully committed to supporting your dairy exports. We provide reliable logistics and freight services tailored to the needs of dairy exporters like you. With an extensive network throughout India and global connections, we are dedicated to ensuring your success in dairy exports.