Opportunities in Dairy, Poultry, and Wool Industries

The Kashmir Valley is one of the most diverse regions in India, characterised by its varied topography, climate, and food habits. The local population is predominantly engaged in agriculture and related activities, similar to other regions of India. The area can be broadly categorised into hilly and plain regions.

In the plain areas, there is a noticeable shift towards adopting new scientific farming techniques and practices in agriculture and allied sectors. This transition is crucial for enhancing production and improving efficiency. Conversely, the hilly areas continue to rely on traditional farming methods, using traditional crop varieties along with conventional dairy and poultry practices. While production in these hilly regions is relatively low but input costs are also significantly reduced compared to hybrid varieties and breeds. Farmers typically produce just enough to meet their daily needs, occasionally selling any surplus.

In contrast, people in the plain areas of the valley are engaged in a variety of farming activities that generate employment opportunities. The modernisation and diversification of farming practices in these regions not only boost agricultural productivity but also contribute to economic development by creating jobs.

The dairy sector in the Kashmir Valley is emerging as a promising agribusiness. Many young entrepreneurs are now entering dairy farming, and the establishment of dairy farms is becoming a trend. However, there is a significant gap in the supply chain, with dairy producers often receiving lower remuneration due to the involvement of middlemen. Addressing these challenges requires innovative thinking from those involved in dairy .

There are numerous opportunities in both dairy and poultry sector, particularly given that the region imports a majority of its dairy and poultry products. Items such as ice cream, khoya, butter, sweets, and various poultry farming inputs such as feed, day old chicks of broilers and frozen value-added chicken products are all imported. New entrepreneurs should explore these opportunities to capitalise on local demand. Currently, only 2.8% of produced milk is processed in Jammu and Kashmir, which highlights a significant challenge as surplus milk during peak seasons receives minimal remuneration.

The dairy processing sector offers significant opportunities for value addition in the Kashmir Valley. The region presents a growing market for a variety of value-added dairy products with both seasonal and round the year demand. While several established players supply ice cream in the valley, there is a notable absence of local competitors in this segment. Additionally, there are other milk-based products, such as khoya, butter, ghee, and rasgullas, that could be developed and marketed as Kashmir-specific products.

One of the critical challenges in the dairy supply chain in the valley is the effective value addition to surplus milk, which is essential for balancing supply and maintaining demand throughout the year. Ensuring the quality of dairy products and other processed goods is crucial for meeting customer expectations and sustaining market demand. Currently, there is a lack of consistent quality in the dairy sector within the Kashmir Valley, presenting an opportunity for businesses to differentiate themselves through superior products and services.

The government provides substantial support for establishing milk value addition units through the Department of Animal Husbandry’s scheme under the Horticulture Development Program (HADP). This initiative offers a 100% grant-in-aid up to `20 lakhs and an additional `3 lakhs for vehicle procurement, available to Farmer Producer Organisations (FPOs) engaged in dairy farming activities. Additionally, schemes like the Integrated Dairy Development Scheme (IDDS) offer a 50% subsidy to the individuals also, and the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme provides a 35% subsidy. Numerous other institutes also support beneficiaries in establishing such units.

Customer satisfaction and business integrity are key to achieving success in this sector. By focusing on high-quality production and transparent business practices, new entrants can establish a strong presence in the dairy market and contribute to the overall growth of the industry in the region.

It is important for new businesses to understand that success takes time. Many new ventures fail due to unrealistic expectations and a lack of thorough market research. Entrepreneurs often make the mistake of expecting immediate returns and neglecting business honesty, which can lead to failure. A well-researched market survey, patience, and ethical business practices are essential for long-term success in the dairy and poultry industries.

Overall, while the potential for growth in dairy and poultry farming is significant, addressing supply chain issues, eliminating middlemen, and focusing on local production can help realise the sector’s full potential.

The poultry industry in the Kashmir Valley presents substantial opportunities in several areas, including DOC production, feed manufacturing, egg production, and value addition of poultry meat. Currently, value-added products such as frozen poultry items like chicken kebabs and kanti are imported and served in restaurants and street stalls throughout the region. This creates a significant opportunity for local entrepreneurs to develop and produce these products domestically.

Moreover, there is considerable potential in the value addition of poultry by-products, which can indirectly address the issue of stray dog population control. By processing poultry by-products into products like animal feed or pet food, businesses can contribute to managing stray animal populations while simultaneously adding value to what would otherwise be waste.

In the Kashmir Valley, many people are pursuing employment opportunities by establishing sheep farms, driven by the notable gap between the demand and local supply of mutton. This trend is understandable, given the significant demand for meat. However, there is also considerable potential in adding value to and processing by-products from sheep husbandry, such as wool, hide, and other slaughterhouse wastes.

Wool-based products have a substantial international market. Despite the large production of wool in the region, demand has significantly declined, resulting in low remuneration for farmers. By focusing on local value addition, the economic viability of wool products can be improved, creating new employment opportunities and enhancing the overall value of the wool industry.

Enhancing local processing capabilities not only supports the agricultural sector but also contributes to broader economic development. By capturing a larger share of the value chain, the Kashmir Valley can achieve sustainable growth and improve the livelihoods of its farmers.

Expanding into these areas not only meets local demand but also reduces dependency on imports, creating economic benefits and job opportunities within the region. Developing local production facilities and innovative products could transform the poultry sector in the Kashmir Valley and support sustainable economic growth.

Conclusion

The Kashmir Valley’s diverse agricultural landscape presents numerous opportunities for growth and innovation across dairy, poultry, and wool sectors. By addressing supply chain issues, eliminating middlemen, and focusing on local production and value addition, the region can harness its full potential. Developing local production facilities and innovative products can transform these sectors, reduce dependency on imports, create economic benefits, and stimulate sustainable economic growth.