Challenges of Fresh Milk Dairy – Urban India is getting back to its roots. Consumers now prefer unprocessed organic foods and consumables. The dairy industry is not an exception to it. That’s the reason we see newer brands emerging daily in the industry with a tag of A2 milk, Desi Milk, Organic milk, etc. some of them are even giving a good fight to the Larger Dairies selling the processed milk.
Though there is growth in the demand for Fresh, Organic, or A2 milk, the path is not as easy as it takes a lot of effort in maintaining the breeding, production, packaging, marketing, and getting it delivered to the consumers. The success of fresh milk or organic milk dairy mostly depends on three factors Milk Production, Marketing, and Logistics. There are very few who can crack the code to be experts in all three departments.
Challenges in Dairy Industry
Being in the industry for a while, and working with many of the dairies, I have understood that Most of the Entrepreneurs working in this industry have a deep knowledge about the Milk. They know what to do and what not to do while maintaining a dairy farm how to source the best quality of milk, and how to maintain the quality of the milk.
Most of them have a holistic approach towards the milk and the milk business. The urge of helping the farmers with the good income and providing a healthy glass of milk to the consumer can be seen in their approach.
Marketing’ the biggest difference between the bigger Dairy Brands and the Fresh Milk or organic Dairies.
Though there is an increasing demand for the farm fresh organic milk, still it needs to promote to the end consumers. The awareness of the brand and the product itself is as important as producing a quality milk. Marketing is not easier for small dairies. The small budgets are a big issue, also the retailers are reluctant to sell the products due to zero shelf life, as opposed to the processed milk.
The Higher Cost of the milk also plays a part here. Thus a good marketing campaign is necessary, to educate the consumers about the Qualitative difference in the processed and farm fresh organic milk. These dairies heavily rely on the internet and Social media for the promotions. But here as well an expert is required to get better results, otherwise, it just becomes one of the many.
Online platforms as DailyNinja has become a better option for these dairies. Not only it helps to market the brand to the consumers at very lower costs compared to the other modes of advertisement, but also helps to run a targeted marketing campaign to generate maximum results.
The consumers also chose the platform, so they get this good quality of milk which is not available at the nearby stores or their regular milkmen. It also helps the brands to expand their reach across the city. DailyNinja is successful in doing so.
Daily 8000+ litres of organic, fresh milk is sold on DailyNinja in Bangalore city.
Milk Logistics is also a big issue for Fresh Milk. The milk has to reach the consumer within 8 to 12 hours of milking. Most of the dairies have to take the burden of the last mile Deliveries of milk as the milk retailers hesitate to sell the milk due to no shelf life and the scattered demand for the milk. This results on a heavy expenditure on the last-mile milk logistics.
This also becomes the biggest roadblock for the expansion of the business. A big part of resources is also spent on the order management, accounting and payment collection resulting in the negligible profits even after a lot of efforts by the dairies. Also the scattered logistics and the unreliable manpower results in unhappy customers.
When I started working with these dairies, we found out this issue is common in the industry, and DailyNinja had the capability of solving the issue. We offered our platform to the dairies and helped them in their last mile deliveries. Which is not only helping the dairies in reducing the delivery cost but also is helping in the expansion of their business.
The result is the Delivery costs are reducing, the payments and accounting are streamlined, the orders are growing.
Customers are Happy and the Dairies are Happier as well.