As the dairy sector progresses through the early months of 2026, it is increasingly evident that Indian dairying is entering a phase where execution, efficiency, and resilience will matter more than headline growth numbers. The foundations laid over the past decade - scale of production, institutional depth, cooperative strength, and expanding consumer demand - are robust. The challenge before us now is to manage growth intelligently in a world marked by volatility, competitive pressures, and rising expectations from dairy as an economic, nutritional, and environmental pillar.

Globally, dairy markets are sending mixed but instructive signals. Milk production across several major exporting regions continues to expand, while international dairy commodity prices - particularly skim milk powder and butter - remain under pressure. This divergence between production and pricing reflects structural issues in global dairy trade: supply responding faster than demand, inventory accumulation, and cautious consumption growth in certain importing regions.

For India, this situation is neither a cause for alarm nor complacency. Unlike export-dependent dairy economies, India's dairy sector is fundamentally driven by domestic demand, with over 85-90% of milk consumed internally. However, global price softness does influence export realisations, stock management decisions, and long-term investment signals. It reinforces the need for India to remain selective and strategic in its export ambitions, focusing on value-added, specialised, and differentiated dairy products rather than bulk commodities.

Domestically, dairy activity remains buoyant. Milk procurement levels across many cooperatives and private dairies have shown seasonal firmness, while investments in processing capacity, cold-chain infrastructure, fermented products, ice creams, and indigenous dairy formulations continue to expand. India's dairy processing capacity is estimated to be growing at 6-7% annually, with a noticeable shift towards consumer-facing, higher-margin categories.

At the same time, the sector is navigating real operational challenges. Feed and fodder availability remains uneven across regions, with feed costs constituting for 60-70% of milk production expenses at the farm level. Animal health vigilance – particularly in addressing productivity losses due to disease stress and feed quality issues- continues to require coordinated responses. These realities underscore an important truth: future competitiveness will be driven as much by cost control and productivity enhancement as by market expansion.

The past few years have witnessed strong policy engagement in the dairy sector, particularly in the areas of nutrition, quality, exports, and sustainability. As we move forward, the emphasis must now shift from policy formulation to system performance. This shift includes:

• Improving yield per animal, especially among indigenous and non-descript populations
• Reducing post-harvest losses through improved chilling and logistics
• Strengthening quality testing, traceability, and digital procurement systems
• Enhancing institutional capacity at cooperative and enterprise levels

Data-driven decision-making, supported by digitisation and real-time analytics, will increasingly differentiate efficient dairy systems from average ones.

Southern Dairy & Food Conclave 2026:
A Regional Milestone
The recently concluded Southern Dairy & Food Conclave 2026, held at Dr. Kurien Nagar, Calicut, demonstrated how regional platforms can meaningfully contribute to national dairy discourse. The conclave witnessed participation from across the dairy value chain – cooperatives, private processors, technology providers, researchers, farmers, and students – reflecting the growing integration of dairy with the broader food and nutrition ecosystem.

With participation exceeding 1,200 delegates and an exhibition that attracted over 5,000 students across three days, the event underscored the importance of youth engagement, farmer connect, and practical innovation showcases. The inclusion of live animal exhibits alongside industry stalls provided a rare and valuable interface between production realities and market solutions.

The conclave reaffirmed the role of regional dairy ecosystems – particularly in southern India – in driving innovation in value-added products, strengthening consumer trust, and promoting efficient cooperative management. My congratulations to IDA (South Zone) and the Kerala State Chapter for delivering a conclave that was not only well attended, but also substantively impactful.

Sustainability is no longer a peripheral discussion in dairying; it is rapidly becoming a core operational and market requirement. From feed efficiency and methane mitigation to water use and energy optimisation, sustainability interventions are increasingly aligned with cost reduction and risk management.

India has a natural advantage in low-carbon dairying due to smallholder-based production systems. However, realising this advantage require robust measurement, documentation, and scaling of best practices. Circular economy initiatives – including manure-based biogas, bio-CNG, and by-product utilisation - are gaining traction and must be mainstreamed. Sustainability will not only shape access to export markets but also influence capital flows and brand credibility in the years ahead.

As we approach the 52nd Dairy Industry Conference & Exhibition, scheduled from 12-14 February 2026 at Yashobhoomi, New Delhi, the timing could not be more relevant. The conference comes at a moment when the sector must collectively reflect on where it stands and defines the path forward.

The 52nd DIC is designed as a comprehensive platform, bringing together policy dialogue, technology solutions, start-up innovation, global perspectives, and business opportunities. It offers stakeholders the opportunity not only to engage in discussions, but also to build action-oriented partnerships that extend well beyond the event.

I strongly encourage dairy cooperatives, private enterprises, start-ups, solution providers, researchers, and young professionals to participate actively. Your presence, insights, and collaboration will be central to the conference's a success and to shaping the sector's next phase of growth. Details on participation, exhibitions, and sessions are available at www.52dic.in.

Indian dairying has achieved what few sectors globally have – scale with inclusivity. The next milestone is to achieve excellence with resilience. This will require sharper focus on productivity, smarter use of technology, disciplined investment, and stronger collaboration across the value chain.

As President of the Indian Dairy Association, I remain committed to ensuring that IDA continues to serve as a credible voice, knowledge platform, and a convening institution for the sector. Together, we must ensure that dairy remains a source of sustainable income for farmers, affordable nutrition for consumers, and long-term value for the national economy.

The road ahead is demanding, but it is also full of opportunity. With collective effort, clarity of purpose, and disciplined execution, Indian dairying can confidently transition from volume leadership to value leadership.