News: Indian milk producer Prabhat Dairy Pvt (PDP) raised funds totalling US$21.71mn from India Agribusiness Fund, a private equity fund involving Rabobank and France's Proparco, it announced on August 27 2013, the Economic News reports. One of India's oldest dairy companies, PDP will use the money to invest in a new manufacturing facility in the Mumbai suburbs. KPMG was the sole advisor to the deal, PDP confirmed. PDP's core function is to supply dairy-based food ingredients to multinationals and leading Indian food and beverage companies.
BMI View: Given the ubiquity of cattle in India, milk forms a vital dietary component, especially since most rural inhabitants own at least one cow. Buffalo are preferred for their high milk fat content and their adaptability to Indian agricultural conditions. In fact, according to the National Dairy Development Board, consumer demand for milk and milk products is growing at approximately double the growth rate of production. As a result, strong dairy demand continues to fuel herd growth, and has also paved the way for improved management practices. In 2013, we expect fluid milk demand to reach 52.3mn tonnes; out to 2017, we project it to grow by 25.1% to 62.5mn tonnes. We forecast butter consumption to increase by 38.5% on the 2012 level out to 2017.