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B2B dairy is no longer a backend function—It’s now a brand differentiator
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Saturday, 26 April, 2025, 16 : 00 PM [IST]
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Ranjith Mukundan
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For decades, dairy supply chains functioned in the background—reliable, invisible, and largely uncelebrated. They focused on logistics, cost, and consistency. But the script has flipped.
Today, in a world where consumers are more conscious, curious, and value-driven, the dairy supply chain has moved from backstage to the spotlight. In fact, B2B dairy has become a strategic engine for innovation, trust, and brand-building.
India, the world’s largest producer of milk, is home to over 80 million smallholder farmers, 300 million cattle, and a population of 1.45 billion that depends on dairy for daily nutrition. The Indian dairy industry, valued at Rs 13.17 lakh crore in 2022, is projected to touch nearly Rs 21 lakh crore by 2030 (IMARC Group). This growth isn’t just about volume—it’s about evolution.
From Volume to Value: A New Consumer Playbook
The rise of health-conscious, digitally connected consumers has fuelled a seismic shift in dairy consumption. Today’s buyers aren’t just looking for traditional staples—they are actively seeking probiotic curd, high-protein paneer, prebiotic yogurt, lactose-free milk, and zero added sugar ice creams and dairy beverages.
These preferences signal a broader trend: the dairy shelf is rapidly evolving from commodity to category of innovation. But for these value-added products to succeed, the backend must be just as evolved—traceable, ethical, and digitised.
Traceability: The Missing Link in Indian Dairy
Despite producing the highest volume of milk globally, India’s dairy exports remain negligible. Why? The answer lies in traceability and quality.
International markets demand stringent compliance, documentation, and clean, residue-free milk & milk products. But fragmented supply chains, lack of standardised quality control, and lack of end-to-end traceability prevent Indian dairy from realising its full export potential. Without proof of source, hygiene, and sustainability, Indian dairy processors remain locked out of premium global opportunities.
That’s where dynamic traceability becomes essential—not just for compliance, but for competitiveness.
The Tech Gap at the Source
Dairy processors in India, despite operating in the world’s most prolific milk-producing nation, face an uphill battle due to the lack of centralised digital tools/applications for managing critical cattle data—vaccination history, deworming schedules, insemination windows, and productivity benchmarks.
This gap severely impacts cattle health, reduces milk quality, and prevents the production of residue-free, export-grade dairy. It’s a problem not just of data, but of sustainability.
At the same time, millions of smallholder farmers face limited access to quality inputs, veterinary care, and formal credit. This has created a productivity paradox: India has the world’s largest cattle population but still lags behind countries like the U.S. in milk yield per animal.
To truly transform Indian dairy, we must empower the base—digitise the farmer, formalise the value chain, and optimise animal health. Healthy, productive cattle are not just good for business; they’re essential for the future of sustainable dairy.
Digitisation as a Brand Enabler
Post-pandemic, consumers and regulators alike are demanding more: Where does your milk come from? Is it ethically sourced? Is your carbon footprint being measured?
Only through end-to-end digitisation—from the farm to the fork—can brands answer these questions with confidence.
Dairy-as-a-Platform: A New Model for Modern Brands
The modern B2B dairy partner is not just a vendor; it’s a strategic storyteller. Imagine a brand launching lactose-free milk—it now needs a story backed by data: Our milk is sourced from well-fed cattle, monitored digitally, and processed in hygienic, sustainable facilities.
This is why forward-looking brands are embracing integrated B2B dairy platforms that offer ready-to-market solutions: ethically sourced milk, emission data, clean-label packaging, digital cattle records, and traceable supply chains.
In this model, dairy is no longer just an input. It’s a brand accelerator—a foundation for long-term differentiation and premium positioning.
The Quiet Revolution with Loud Results
What’s happening in Indian dairy today is more than a supply chain upgrade—it’s a mindset shift. It’s the realisation that backend excellence is now frontend equity.
The brands that understand this—and partner with platforms that digitise, trace, and empower—are not just launching products. They’re building movements.
When we look back a decade from now, it will be clear: the most iconic food brands weren’t the ones that simply bought dairy—they were the ones that built with it.
(Mukundan is co-founder and CEO at Stellapps)
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