Parag and Schrebier to Export Cheese to Russia

India: Indian dairy market is set to see some new developments as two Maharashtra based dairy companies, Parag Milk Foods and Schreiber Dynamix have got the approval to export cheese and milk products to Russia. The duo waited for over two years to get approval from the commerce ministry. Both companies had got requisite approvals from Rosselkhoznadzor, Russia's federal inspection agency, in April last year and now will be able to export.

Russia has been facing tough times in sourcing essential items in last few years, following the sanctions from western countries. The country has an annual demand of over 0.29 million tonnes of cheese and it is buying them from South American countries, Switzerland and through some other channels. Indian companies have begun the talks with retail chains Magnit, Metro Cash and Carry, Tesco and others to sell cheese.

According to recent report published by TechSci Research, “India Dairy Products Market By Type (Drinking Milk, Ghee, Butter, Ice Cream, Milk Powder, Cheese, Yogurts, Probiotic Drinks and Others), Competition Forecast and Opportunities, 2011 – 2021”, the market for dairy products in India is projected to grow at a CAGR of over 7% during 2016-2021, on account of increasing per capita expenditure, rising youth population, introduction of value added dairy products, changing consumption patterns, and growing penetration of international players. India dairy products market is witnessing a shift towards healthier products such as probiotic drinks, yogurts, etc. Few of the leading players operating in India dairy products market include Gujarat Cooperative Milk Marketing Federation Ltd., National Dairy Development Board, Karnataka Cooperative Milk Producers Federation Ltd., and Tamil Nadu Co-operative Milk Producers' Federation Limited, among others.

According to TechSci Research, this development is expected to have positive implications on Indian dairy industry as other Indian dairy players would be tempted to export their products, eventually benefitting the other stakeholders in the dairy industry such as farmers. Moreover, it can also have an impact on the overall supply of the cheese in Indian market, in short term and long term and prices may go up for Indian consumers.