eChapters

3.1 Malted Milk
Malted milk, originating from the ideas of British pharmacist James Horlick in the 19th century, was initially marketed under the name “Diastoid” before being trademarked as “malted milk” in 1887. Although initially targeted
for infants and invalids, its appeal expanded due to its nutritional value, convenience, digestibility, and palatability. Recognized globally for its lightweight, non-perishable nature, and high-calorie content, malted milk is
created by evaporating a mixture of malted barley, wheat flour, and whole milk until it forms a powder.
There aremainly two types of malt powder: diastatic and non-diastatic. Diastatic malt containing enzymes breaking down starch into sugar, aiding in dough rise and crust formation, particularly in bread making. Non-diastatic
malt lacks active enzymes and is primarily utilized for flavor enhancement, commonly in beverages. It may also include sugar, coloring agents, and other additives to improve taste and appearance.
3.2 Malting
Malting is a crucial process employed in treating cereal grains, such as barley, by inducing germination through soaking in water followed by halting the process through drying or heating with hot air. This technique encompasses two main stages: sprouting and kiln-drying. The term “malt” encompasses several products of this process:
1. Malted grains: These are grains, like barley, that have undergone the malting process.
2. Malt sugars: These are sugars, predominantly maltose-rich, derived from malted grains, often utilized in baking, such as baker’s malt.
3. Malted milk products: These include beverages like malted milkshakes, made using malted milk.

2.1 Introduction
The continuous production of dry milk has become consistently significant within the dairy industry and is expected to continue growing due to its advantageous features. These include improved shelf life, reduced storage
requirements, and lower transportation costs, all of which contribute to favourable economic outcomes.
For example, non-fat dry milk is also known as skim milk powder, dried skim milk, non-fat dry milk solids, or dehydrated skim milk. Similarly, products like dried whole milk, dried cream, and dried buttermilk are often regarded as dried or powdered whole milk, cream, and buttermilk, respectively, based on their specific compositions.
2.2 Types of Dried Powder
1. Nonfat dry milk
2. Dry whole milk
3. Dry buttermilk
4. Dry whey
5. Dry ice cream mix
6. Dry creams (sweet or sour)
7. Dry skim milk vegetable fat products
8. Malted milk Powder
9. Cheese powders (Cheddar, Blue, etc.)
10. Sweetened chocolate flavoured non fat dry milk
11. Coffee creaming products
12. Sodium or Calcium Caseinates
13. Dry high acid milks
14. Partly skim milk powder
15. Infant milk food

1.1 Introduction
Concentrated milks, like evaporated milk and sweetened condensed milk, serve as practical substitutes for fresh milk in regions where access to it is limited or where transportation and storage are challenging. These products go through specific processing techniques to reduce their water content, thereby improving their shelf life and transportability. Evaporated milk is created by removing water through evaporation and then
sterilizing it to prevent microbial growth. This process results in a thicker consistency and a slightly caramelized flavor due to the heat treatment. On the other hand, sweetened condensed milk is made by adding a significant amount of sucrose to the milk and excluding oxygen, which inhibits microbial growth. This results in a thick, sweet product suitable for various culinary uses. These concentrated milk products are usually packaged in small cans, making them convenient for storage and transportation. However, they are sometimes diluted before consumption with water to resemble the taste and consistency of fresh milk. In regions where even concentrated milks are not easily accessible, alternatives like whole milk powder or recombined milk are used. These alternatives involve dehydrating milk into powder form or reconstituting milk components to create a liquid similar to fresh milk. Innovations in processing and packaging have led to the development of alternative uses for concentrated milks, expanding their versatility beyond traditional applications. These products continue to provide essential dairy
nutrition in areas where fresh milk is scarce or hard to obtain, offering a shelfstable solution to meet dietary needs.

Milk: Composition, Nutritional Role, & Importance for Human Health Introduction
Milk is one of nature’s most complete and balanced foods, offering a rich source of essential nutrients such as proteins, fats, carbohydrates, vitamins, and minerals in forms that are easily digested and assimilated by the body. It serves as a cornerstone of human nutrition, providing critical support for growth, bone strength, and overall health. Known as the nectar of life, milk not only sustains life but also enhances immunity, forming the first bond between mother and infant.
An adequate intake of calcium, particularly during childhood, is critical for bone development and preventing osteoporosis in later life. Rich in calcium, phosphorus, and vitamin D, milk is vital for maintaining strong bones and teeth while preventing osteoporosis. Its high-quality proteins support muscle growthand recovery, while lactose and fats provide both immediate and sustained energy. Micronutrients like zinc, selenium, and whey proteins strengthen the immune system, and its high water content makes milk an excellent source of hydration. These qualities make it a protective food for all age groups, from infants to the elderly.
While milk naturally lacks iron and has low levels of vitamin D, fortification with additional nutrients enhances its nutritional profile, making it even more beneficial. Fortified milk helps address deficiencies, supports bone health, and boosts immunity, making it an ideal dietary option for diverse populations. For infants and children, milk is a near-perfect food, and for adults, it serves as an excellent dietary supplement, particularly for its calcium, protein, and vitamin content. Beyond its nutritional benefits, milk plays a significant role in culinary traditions and cultural practices across the globe.

The distribution systems are designed to ensure that processed fluid milk is stored and transported under optimal conditions, maintaining its quality and freshness until it reaches consumers. An effective distribution system for processed fluid milk involves careful planning and execution to guarantee timely delivery, quality preservation, and customer satisfaction. Given that milk is a highly perishable product, it requires meticulous handling and strict temperature control. Technology plays a crucial role in preserving its integrity throughout the supply chain. The use of technology reduces human error, increase the efficiency of distribution operations, and lower operational costs by preventing idle resources through coordinated logistics for both outbound and inbound trips.
To address the specific demands of manufacturing, packaging, distribution, and transportation, integrated business process automation solutions are implemented. These solutions include following features:
• Identify and define the most efficient delivery routes, reducing transportation costs and ensuring timely delivery.
• Scheduling and monitoring of delivery routes to maintain optimal delivery speeds, and manage loading and unloading processes so as to minimize exposure to adverse conditions. Automated solutions and tools help maintain the required temperature conditions throughout the entire supply chain.
• Verify and document supplier practices to ensure that all partners in the supply chain adhere to the agreed-upon temperature standards. Store the temperature-related data to help in auditing and analysis, and continuous improvement of the cold chain process.
• Shelf life and expiration date management is a critical component in  the storage and transport of dairy products. Proper management ensures that dairy products remain safe for consumption and retain their quality throughout the distribution chain.

Introduction
Special milks, a dynamic segment of the dairy industry, cater to diverse consumer needs through products like flavored milk drinks, lactose-reduced or lactosefree milk, micronutrient-fortified milk (e.g., vitamin- or iron-enriched), and protein-enhanced milk. This segment is experiencing significant growth, driven by health-conscious consumers, increasing lactose intolerance awareness, and demand for functional and fortified foods. Globally, the market for fortified and specialty milks is projected to grow at a compound annual growth rate (CAGR) of over 6% by 2030. While flavored milks dominate in terms of appeal to younger demographics, fortified milks, particularly those enriched with vitamin D and calcium, cater to aging populations and health-conscious individuals. The economics of special milks are appealing for producers, with higher price premiums compared to regular milk. Niche areas, such as proteinenriched milk for athletes, lactose free milks for lactose intolerant persons, and low-sugar variants for diabetics, are gaining traction, reflecting evolving consumer preferences for tailored nutrition. This sector’s growth underscores a shift toward personalization in the dairy market, supported by innovations in processing and packaging to retain nutritional quality and extend shelf life.
Flavored Milks
Milk drinks are products ready for consumption, made from milk with differing fat contents and additions such as sugar, cocoa, fruit concentrates, coffee, flavors and/or other food ingredients, which are homogeneously mixed and contribute to flavor and taste. Flavored milks of various types are manufactured on the basis of whole milk, fat-reduced milk or skim milk (<0.5% fat). They are marketed in the form of pasteurized, UHT or sterilized products. These beverages promote milk consumption by offering a flavorful alternative to plain milk, especially for those who are reluctant to drink regular milk. Studies showed that providing flavored milk in schools significantly boosts milk intake, thereby enhancing the consumption of essential nutrients like calcium, protein, and vitamins among children.

Introduction
Market milk holds a crucial place in human nutrition, economic development, and the dairy industry. Its consumption patterns and marketing strategies continue to adapt, influenced by evolving lifestyles, consumer preferences, and advancements in processing and packaging technologies. Regulatory frameworks ensure its safety and quality, while the wide range of milk types caters to diverse dietary and cultural requirements around the world.
Modern dairy farms rely on advanced milking machines that prioritize both efficiency and hygiene. These machines use vacuum-operated devices to gently extract milk from cows’ teats without causing discomfort. The collected milk is immediately transferred into refrigerated tanks to maintain its freshness and prevent bacterial growth. Speed and efficiency in transporting milk to processing facilities are critical to ensuring its safety and quality.
At the processing plant, milk undergoes standardization, an essential step where the fat content is adjusted to produce different types of milk, such as whole milk, toned milk, double-toned milk, and skimmed milk. This ensures uniformity in fat levels, meeting market specifications and regulatory standards such as prescribed by FSSAI in case of India.
The milk then undergoes pasteurization, a process of heating it to a specific temperature for a defined period to eliminate harmful bacteria while preserving its nutritional value. Pasteurization has significantly improved milk safety, reduced health risks, and extended its shelf life. Following this, the milk is homogenized, where fat molecules are evenly distributed to prevent cream separation. This centres a smooth texture and consistent flavor preferred by consumers.

Sterilization is a thermal process aimed at destroying all microorganisms and microbial spores in milk, ensuring the product is microbiologically safe and shelf-stable at room temperature for extended periods. It is primarily used in the production of sterilized milk and evaporated milk, with typical conditions involving heating at 116°C for 15 minutes. This process kills all microorganisms and also inactivates all milk enzymes, including plasmin, which might otherwise contribute to spoilage during storage. However, enzymes produced by psychrotrophic bacteria should not be present in raw milk, as they are highly heat-stable and may remain active even after sterilization. Sterilized milk can be stored at room temperature for longer period. Sterilization kills all microorganisms and inactivates all microbial spores that may germinate under the storage conditions of the product in the market.
The Food Safety and Standards Authority of India (FSSAI) define “sterilization” in relation to milk and milk products as the process of heating the product in a sealed container continuously to at least 115°C for 15 minutes. This treatment ensures that the milk can be preserved at room temperature for a period of not less than 30 days.
In-bottle sterilised milk is a shelf-stable dairy product produced by sealing milk in glass bottles and subjecting it to high-temperature heat treatment. Typically, the milk is heated to temperatures ranging from 110°C to 121°C for 15 to 30 minutes. This process effectively destroys all vegetative microorganisms and bacterial spores, making the milk microbiologically safe and extending its shelf life up to 6–9 months without refrigeration. The heating is usually done in batch retorts or autoclaves after the milk has been bottled and sealed. Although the process ensures safety, it often leads to a slight cooked flavour and some nutritional losses, particularly in heat-sensitive vitamins such as vitamin B1 and vitamin C.

Introduction and Relevance
UHT processing of milk was developed to produce a shelf-stable product with minimal chemical changes as encountered with sterilized milk. Aseptically packaged UHT milk can have a shelf life of 06 to 12 months and does not need to be stored in a refrigerator. Its role in the market varies by region. In countries like the India, USA and Canada, where UHT milk occupies a smaller segment of the liquid milk market, it is often used as a backup option, reserved for situations when pasteurized milk is unavailable. Conversely, in regions such as Europe, (particularly France, Belgium, Spain and Germany), Asia, (China, Japan, Thailand and Vietnam) Latin America and (Brazil) in UHT milk is the dominant form of milk available and is consumed regularly. In markets where it is a backup option, UHT milk requires long-term stability of 6–12 months, while in regions where it is used daily, a shorter shelf life of three months or less is often sufficient.
Ultra-High Temperature (UHT) treatment involves heating milk to very high temperatures, typically between 130°C and 150°C, for a brief period of few seconds. This process results in commercially sterile milk, meaning that while not all bacteria are destroyed, those capable of growing under ambient storage conditions are effectively eliminated. An essential component of UHT processing is aseptic packaging, where the sterilized milk is filled into presterilized containers in a sterile environment. This combination ensures that the milk remains free from contamination and maintains its extended shelf life without requiring refrigeration.
Standards for UHT processing vary globally. In the European Union, a minimum temperature of 135°C with an appropriate holding time is mandated. In the United States, the standard for ultra-pasteurization is 280°F (137.8°C) for 2 seconds. Many international standards recommend 135°C for at least 1 second, though some countries do not specify minimum conditions. However, this level of treatment is often regarded as insufficient for completely destroying the spores of spoilage organisms, highlighting the importance of precise temperature-time combinations and the critical role of aseptic packaging in ensuring product safety and stability.

Introduction
Heat treatment is the most commonly used method in the dairy industry for milk processing. Its primary objective is to eliminate pathogens and reduce spoilage-causing organisms, ensuring milk is safe for consumption and has a longer shelf life. While advanced methods like high-pressure processing, pulsed electric fields, ultrasound processing, cold plasma treatment, and ultraviolet sterilization have emerged, heat treatment remains the preferred choice due to its simplicity, reliability, and proven effectiveness. All dairy products undergo some form of heating during processing, whether through pasteurization, sub-pasteurization (e.g., for milk used in aged cheeses), or sterilization. To facilitate this, liquid heating systems such as continuous heat exchangers or jacketed tanks are widely used, typically powered by steam or steam-heated water. Consequently, steam generation boilers are a standard feature in almost all dairy processing facilities.
The Key Objectives of Heat Treatment Include
1. Elimination of harmful pathogens in milk, ensuring it is safe for consumption and protecting public health.
2. Increasing the keeping quality of milk by reducing the number of spoilage organisms.
3. Inactivating enzymes naturally present in milk or secreted by microorganisms to prevent enzymatic degradation.
4. Preventing the autoxidation of lipids, which can lead to off-flavors and spoilage.
5. Inactivating agglutinin to reduce rapid creaming and maintain uniform consistency.
6. Enhancing the growth of starter cultures by eliminating natural inhibitors and dissolved oxygen in milk, essential for producing cheese and fermented products.

Homogenization is now a widely used industrial process in dairy production, essential for stabilizing milk and other liquid dairy products. Its main purpose is to prevent fat from separating out of the milk, ensuring a smooth, consistent, and uniform product. Milk is a complex emulsion comprising water, fat, proteins, carbohydrates, minerals, and vitamins. Among these constituents, fat plays a critical role in determining the texture, flavor, and overall sensory quality of milk and dairy products. In its natural state, milk fat exists in the form of globules of varying sizes, surrounded by a thin membrane that stabilizes them in the aqueous phase. These fat globules typically range in size from 2 to 10 μm and have a lower density than the surrounding water-based phase of milk. This difference in density causes the fat globules to rise and form a cream layer when milk is left undisturbed, leading to an uneven texture and separation during storage.
Homogenization is a mechanical process applied to milk to modify fat globules by forcing the milk under high pressure through a tiny orifice. This reduces the average size of the fat globules while increasing their number and surface area. Practically, this greatly minimizes the tendency of fat globules to rise and form a cream layer. The enhanced stability of homogenized milk is due to three key factors: the reduction in the average diameter of fat globules, as described by Stokes’ Law, which slows their upward movement; the uniformity in size distribution, which ensures globules rise at similar speeds, preventing clustering; and the increased density of fat globules caused by the adsorption of a protein membrane, bringing their density closer to that of the surrounding liquid. Additionally, heat pasteurization complements homogenization by breaking down the cryo-globulin complex, which otherwise promotes clustering and cream formation.
The smaller and uniformly dispersed fat globules create a smoother, creamier texture and enhance the mouthfeel. This process also contributes to the visual appeal of milk, making it appear whiter and more uniform. Homogenization is, therefore, an essential step in modern dairy processing, ensuring the stability, quality, and consistency of milk and other dairy products, while addressing the challenges posed by the inherent properties of milk fat and its lower density.

Preservation of raw milk is essential to maintain its quality during storage and transportation before processing. One of the primary methods for extending its storage life is refrigeration, where milk is cooled to 2°C to 4°C immediately after milking. This significantly slows down the microbial growth and enzymatic activity. Bulk milk coolers (BMCs) are vital in achieving rapid cooling, especially in collection centres or dairy farms, where they ensure that milk remains fresh during storage and transportation. BMCs are particularly essential for regions with inadequate cold chain infrastructure, as they help maintain milk quality until it reaches processing facilities.
In addition to refrigeration, thermisation is another method used to preserve raw milk. Thermisation, a mild heat treatment, is widely used to extend the shelf life of raw milk, particularly when it needs to be transported over long distances. This process involves heating the milk to 57–68°C for 15 seconds, effectively reducing the microbial load while preserving the milk’s natural characteristics. Thermisation is typically followed by refrigerated storage, where milk is cooled to temperatures between 2° and 4°C to inhibit further microbial growth. The combination of thermisation and refrigeration ensures that milk retains its freshness and safety until it reaches processing facilities, even in regions with extended supply chains.
Raw milk also benefits from its natural inhibitors, such as lactoperoxidase, lactoferrin, and immunoglobulins, which exhibit antimicrobial properties and slow down bacterial growth. The lactoperoxidase system, for instance, can be activated by adding small amounts of hydrogen peroxide and thiocyanate to enhance milk’s preservation in the absence of refrigeration. The use of chemicals like hydrogen peroxide (H2O2) for milk preservation is not permitted in India due to safety and quality concerns. However, the FAO recommends its application under strict regulatory conditions in some countries as part of the lactoperoxidase system, particularly in regions where refrigeration is unavailable.

Introduction
Similar to the procurement of raw materials in a factory, milk collection is one of the initial and essential steps for a milk processing or marketing company. A successful milk collection system combines efficient route planning, quality control, and effective farmer engagement. By prioritizing technology integration, cold chain management, and regulatory compliance, dairy companies can establish a reliable and sustainable milk procurement system that meets both operational and quality standards.
India dairy sector depends on smallholder individual milk producers, each contributing between one to a few litres of milk per day. Typically, milk production takes place in rural areas, while the demand is concentrated in urban centres. However, rural producers often face significant marketing challenges due to the dispersed nature of milk production, scattered settlements, and inadequate supply infrastructure. Therefore, milk needs to be collected, transported, and marketed from villages to cities to ensure profitable returns for producers. Milk is usually collected from producers at designated collection points in rural areas, which serve a large number of small suppliers. This approach minimizes the need for individual chilling and storage facilities. Collection points should follow the same hygiene standards as dairy processing facilities. Milk should arrive at a chilling station within four hours of milking, especially in warmer climates. There, it must be quickly cooled to below 4°C to preserve its quality. Bulk milk coolers of required capacity are installed for the chilling and storage of milk at low temperature till it is transported to the processing plant.

Introduction
Milk reception at the processing plant is a crucial stage in the dairy supply chain, as it serves as the first point of quality control and the gateway to further processing. The success of milk processing hinges on the careful handling, evaluation, and preparation of the raw milk upon arrival. The stringent protocols at reception ensure that only high-quality raw milk enters the system. By implementing advanced technology, strict hygienic standards, and efficient handling practices, processing plants can maintain milk’s safety and quality, setting the foundation for the production of superior quality dairy products. The intricate procedures at this stage safeguard consumers' trust and ensure compliance with regulatory requirements.
Milk is transported to dairy plants either in cans or in road/rail tankers. The designated area within the dairy plant where milk is first received, inspected, and graded for acceptance is referred to as the milk reception dock, platform, or raw milk receiving dock (RMRD). This reception dock is specifically designed and equipped to ensure the efficient handling of milk, enabling its swift unloading while also accommodating the cleaning and sterilization of used containers.
Since the quality of milk is a critical factor for its subsequent processing, the decision to accept or reject milk must be made promptly upon its arrival, following a thorough evaluation. The milk reception process should be meticulously planned, and the equipment must be selected to ensure efficient intake operations, particularly in facilities handling large milk volumes. Any delay can result in deterioration of milk before unloading, increased labour requirements, and higher operating costs. To avoid such issues, milk deliveries should adhere to a strict schedule, and the reception process should be completed within a stipulated time frame of time. This ensures seamless continuity of the dairy plant operations.

Dairy Industry in India
Milk holds a deeply symbolic place in Indian culture, far beyond its role as a mere food item. It is intricately woven into the cultural and historical identity of the nation, with the dairy industry serving as a cornerstone of India’s economy. The sector is a driving force behind rural development providing a crucial pathway to prosperity for millions of small-scale farmers. It plays a significant role in alleviating poverty and generating employment opportunities. The dairy sector by empowering farmers, developing modern infrastructure embracing technological advancements, and promoting sustainable practices, fostering widespread socio-economic progress in rural India. In the 1920s, modern milk processing and marketing technologies were introduced in India. The National Dairy Development Board (NDDB; founded in 1965), implemented Operation Flood (1970-96) to modernize the dairy sector through cooperatives. This led to the rise of dairy cooperatives countering the exploitation by private milk plants. The cooperatives followed the Anand model, a three-tier structure comprising village-level societies (producers), district-level unions (milk collection and processing), and state-level federations (marketing). Originating in Anand, Gujarat in 1946, the model was later adopted nationwide. The progress termed as White Revolution transformed India from a nation struggling with milk shortages into the world’s largest producer and consumer of milk. By 1997, India became the global leader in milk production with a volume of 70.9 million tons, surpassing the United States (FAO data rearranged by Our World in Data). Further in the year 2014, for the first time, it beat the entire European Union. Since 1950, India’s milk production has seen tremendous growth, rising from 17 million tonnes in 1950-51 to 230.58 million tonnes in 2022-23. The per capita availability of milk increased from 124 g/day in 1950-51 (PIB 2022) to 459 g/day in India during.

a) A Key GDP Contributor: Dairy and Livestock sector form the backbone of agriculture with 28 per cent contribution in GDP and the progress in this sector is dependent on innovative measures to increase the value for farmers as well as customers.

b) Doubling Farmer’s Income : Doubling Farmer’s Income by 2022 can be achieved by improving crop and livestock productivity, efficiency to utilize resources, increased intensity of cultivation and diversification in high value cash crops, processing and value addition of food and animal products. This price realization can be assured through market reforms and efficient market linkages.

c) Unorganised sector – a challenge : The Indian dairy sector is still characterized by strong presence of unorganized sector. Apart from the Cooperative dairy sector, in the last few years there has been a considerable growth in Private Dairy sector and Milk Producers Organization like Maahi in Gujarat. If small dairy farmers are provided with sufficient ‘value addition’ training and support, they can increase their income considerably.

d) Value addition : Further, the milk processing plants can also go for value addition and innovation and in turn pay remunerative prices to milk producers.

7.1. Challenges in Milk Quality

Demand for milk and milk products in India is growing very rapidly, owing to urbanization, customer convenience, and the change from loose to packaged milk products. At present, the dairy sector is rising at about 10-12 per cent annually. Based on population growth projections and an increase in urbanization over the next four decades, India is projected to need approximately 600 million tonnes of milk per year to meet the demand for milk and milk products. This means that India’s milk production needs to grow at around 3.2 per cent CAGR for the next 40 years (FICCI, 2020).

Main reason of poor quantity of milk is due to unhygienic and poor condition of animal farms and dairies. Even due to high demand in foreign country we cannot export such poor quality of milk product. Many times, Indian milk products get rejected in foreign nations due to unhygienic milking milk contains high number of microbial counts. Reasons behind the quality affected in India are due to poor health of animal, polluted water and food and Unclean surrounding in farm. So, it is necessary to consider all this challenges in improving milk production. Currently most of the milking animals are not screened on regular interval of time. So, there is lots of chances that some diseases can transmitted to human beings. Farmers use antibiotics and chemical drugs to increase the production of milk this will also affect the quality of milk. These issues can be avoided by regular screening of animals in animal husbandry and also maintaining history records of health, feed etc. Quality of feed should be checked regularly. There must be pollution control in the feed and water used in cattle farms (Bhagyalaxmi, 2020).

The GOI is pushing to strengthen infrastructure for the production of quality milk, as well as for procurement, processing, and marketing of milk and milk products through the following Dairy Development Schemes:

6.1. Dairy Entrepreneurship Development Scheme (DEDS)

Dairy Entrepreneurship Development Scheme (DEDS) was started in September 2010. This scheme is being implemented through NABARD which provides financial assistance to commercially bankable projects with loans from Commercial, Cooperative, Urban and Rural banks.

Objective of the scheme

To generate self-employment and provide infrastructure for the dairy sector, to set up modern dairy farms and infrastructure for the production of clean milk, to encourage heifer calf rearing for conservation and development of good breeding stock, to bring structural changes in the unorganized sector so that initial processing of milk can be taken up at the village level, to upgrade traditional technology to handle milk on a commercial scale, to provide value addition to milk through processing and production of milk products.

Livestock is considered one of the essential variables in the revenue of a farmer. The sector (excluding fisheries) contributes 30 per cent to India’s agriculture gross domestic product, and it is valued at more than Rs. 9 lakh crores. India is also one of the largest producers of milk in the world; around 70 million rural households are engaged in professions linked to dairy. India is also the second largest exporter of bovine meat after Brazil. This sector provides a substantial income to farmers and supports the economy by generating enough demand in the rural and semi-urban regions. This animal husbandry sector comprising dairy and poultry is extremely valuable for farmer’s income security, and Covid-19 has the potential to disrupt this sector.

In developing countries such as India, where dairy farming is one of the most important sources of livelihood for 60 million rural households, 80 per cent of whom are landless, small and marginal farmers who depend on dairy for daily income, the crisis is extreme. Thus, even a small decline in the growth of the dairy sector significantly affects a large chunk of our population which are already vulnerable due to low income, poor savings, and lack of livelihood alternatives. Small production in multiple households leads to more reliance on efficient transportation for procurement. In addition to this, the Indian dairy sector is still dominated by the unorganized sector which handles more than 50 per cent of the marketable surplus. Milkman and vendors collect a small quantity of loose milk from different households and then supply it to urban consumers, roadside eateries, hotels, and sweetshops. Closure of shops and restrictions on transportation has ruthlessly disturbed this arrangement. Even in the formal sector out of the total milk processed 65 to 70 per cent is sold as liquid milk which is immediately vended after packing and only 30 per cent is processed into other dairy products like ghee, butter, cheese, curd, ice-cream, milk powder, etc. Thus, the formal sector also lacks sufficient infrastructure and storage facilities for processing and storing surplus milk after value addition.

In monetary terms, value-added’ per unit of the product is the margin between its selling price and cost of production. However, in the dairy and food industry, value addition refers to, extra, features of a product that are beyond the expectations of a consumer at little or no extra cost. In this context, the addition of value to milk can involve monetary value added to a liter of milk by turning it into milk products, enhancing the convenience of quality, shelf life, or health characteristics using processing and packaging interventions.

4.1. Conversion of Milk into Conventional Products

It is an age-old tradition to add value to milk by processing it into milk products. The primary aim was to increase the shelf life of milk that would otherwise be highly perishable. With inadequate facilities to preserve liquid milk fresh in the rural areas’ conversion of milk into a variety of milk products would be an ideal option to effectively preserve the huge quantities of milk procured during the flush season’ In the processing of milk products such as cream, butter, cheese and ghee, by-products such as skim milk, buttermilk, whey, and ghee residue are obtained’ Many of the dairy plants, particularly in India’ are usually confronted with the problem of by-products utilization, especially that of whey and ghee residue in an economical manner. Membrane separation processes have presented new possibilities for the production of newer intermediate products from dairy by-products that can be used for value addition in dairy and food industries.