K Rathnam talks about sustainability in the dairy industry

Sustainability is of utmost importance if we wish to have long-term success in the dairy industry- K Rathnam.

The dairy industry in India is a crucial sector of the country's economy, contributing significantly to its GDP and providing livelihoods to millions of farmers. With a growing population and increasing demand for milk and milk products, the dairy industry in India has become one of the largest and fastest-growing industries in the world. According to a report by expertmarketresearch.com the Indian dairy market’s growth is expected at a CAGR of 15.4% from 2023-2028, attaining a value of USD 472.7 billion by 2028.

With sustainability at the core of every business today and the sheer magnitude of the industry, the dairy business is also working towards attaining high sustainability standards. So, what exactly do we mean by sustainability in the dairy industry? Simply put, it means ensuring that the industry is environmentally, socially, and economically sustainable. In other words, we need to ensure that the industry doesn't harm the environment, provides fair wages, provides adequate working conditions to farmers and workers, and is economically viable.

K Rathnam, an expert in the food and dairy industry and CEO of Milky Mist says “The dairy industry is one of the core businesses that has been going on for generations, today the demand has gone so high and the industry has become colossal, that we cannot ignore incorporating sustainable practices.”

“One of the biggest challenges faced by the dairy industry in India is the environmental impact of dairy farming”, K Rathnam shares. It is a significant contributor to greenhouse gas emissions, with methane emissions from cattle accounting for a significant proportion of total emissions. Additionally, the use of chemical fertilizers and pesticides in feed production, as well as the disposal of dairy waste, can have adverse effects on the environment.

To address these issues, several initiatives have been taken to promote sustainable dairy farming practices in India. One such initiative is the National Dairy Plan, which aims to increase milk production while also promoting environmentally sustainable practices such as the use of organic fertilizers and renewable energy sources.

Another crucial area is social sustainability. It refers to the ability of the industry to contribute to the well-being of the local communities where dairy farming takes place. In India, dairy farming is often a source of income for small-scale farmers, who may have to bear market fluctuations and price volatility, therefore, making them vulnerable. Sustainability is of utmost importance if we wish to have long-term success in the dairy industry, K Rathnam shares.

To battle this problem several initiatives have been taken to provide support and training to small-scale dairy farmers. For example, the National Dairy Development Board (NDDB) provides technical and financial assistance to farmers, while also promoting cooperatives to help farmers achieve greater bargaining power in the market.

“The industry is well on its path to becoming sustainable and the government initiatives are also very encouraging and helpful. At this rate, I am sure that the dairy industry will achieve global sustainability standards.” K Rathnam

Another important factor is Economic sustainability which means the ability of the industry to generate sufficient income and profits to sustain itself in the long term. In India, dairy farming is often characterized by low productivity and inefficient supply chains, which can limit the profitability of the industry.

To fight this problem several organizations including, the NDDB has launched several programs to improve the genetics of dairy animals, promote the use of high-quality feed, and enhance the efficiency of milk collection and processing.

In today’s Post-Covid world sustainability has become the driving goal in all sectors. By adopting sustainable practices, businesses can create long-term value for their stakeholders and contribute to a better world for all.