Risk optimization in perishable dairy supply chain

Abstract

Dairy industry forms a major component of agriculture-driven Indian economy. India is the largest producer of milk & other dairy-related products in the world. The production of milk has increased from 17 million tonnes in 1951 to a staggering 121 million tonnes in 2011, mainly due to the focus on functioning of dairy cooperatives through state level dairy federationsi. Increase in disposable income has propelled a huge demand for dairy products over the coming years. The consumption pattern that has been observed has shown that the industry is still very much dependent on traditional dairy products rather than highly processed westernized products, though there is an increasing demand for them in the urban markets.