Public-Private Partnership and Value Addition : A Two-Pronged Approach for Sustainable Dairy Supply Chain Management

With the highest livestock population in the world, India has emerged as the largest milk producing country constituting about 16% of the world milk production. This successful growth in the dairy sector over the years can primarily be ascribed to the ‘operation flood' program, establishment of well-developed market linkages and marketing infrastructure. However, currently, dairy industries are facing high input costs for milk production, lack of infrastructure for handling, transport, processing and marketing. A sustainable dairy industry is possible only when the remunerative prices to the farmer, value to the consumer, reasonable returns to the industry and stakeholders are ensured. An efficient supply chain and value addition through product diversification are the key approaches that can make dairying business sustainable. The present study focuses on the rationale and critical issues for efficient supply chain management in dairy industry, various strategies for value addition of milk and scope of public-private-partnerships for sustainable dairy supply chain management