This blog is co-authored by Abhinav Guarav, Lead Advisor-Sustainable Dairy, Environmental Defense Fund, and Meredith Ryder-Rude, Associate Vice President for Global Engagement and Partnerships.
1. Importance of India’s Dairy Sector
- India is the world’s largest milk producer, contributing ~25% of global milk supply, soon nearing one-third.
- Supports 80 million smallholder dairy farmers and ~300 million bovines.
- Backbone of:
- Rural livelihoods
- Agricultural GDP
- Nutritional security
- Dairy is culturally indispensable and economically non-negotiable.
2. Climate Change Risks to Indian Dairy
- Summers have expanded from 3 months to nearly 5 months.
- Increased heat stress and humidity → reduced feed intake, fertility, and milk yield.
- Projected losses:
- 20–30% milk production decline by mid-century
- 25% decline by 2085 (Lancet projection)
- Smallholder farmers (3–5 animals) are the most vulnerable due to:
- Limited capital
- Poor access to technology
- Low climate risk awareness
3. Government Efforts – Progress but Not Enough
- Programs like NICRA (National Innovation for Climate Resilient Agriculture) address:
- Heat stress
- Climate-resilient practices
- Major challenge:
- Scaling solutions to 80 million farmers
- Key gap:
- Knowledge exists, but delivery, affordability, and adoption do not.
Translation: Research is strong; last-mile execution is weak.
4. Climate Adaptation as an Economic Strategy
Adaptation cannot depend only on public funds.
Needed solutions include:
- Shade barns
- Cooling systems (misting fans)
- Climate-smart feed
- Water-efficient technologies
India’s advantage:
- Strong dairy cooperatives (Amul-style muscle)
- Presence of global dairy companies (Nestlé, Danone)
- National development banks
This ecosystem can create a real market for adaptation, not just pilot projects.
5. Adaptation Playbook for Indian Dairy
A. Create Incentives
- Similar to renewable energy subsidies and EV policies.
- Tools include:
- Blended finance models
- Resilience bonds
- Example:
- EDF’s Regenerative Agriculture Finance (RAF):
- Farmers get lower interest rates for meeting soil health standards
- Backed by $13 million in incentives from PepsiCo, ADM
- EDF’s Regenerative Agriculture Finance (RAF):
B. Aggregate Demand
- Use dairy cooperatives for bulk procurement of:
- Cooling technologies
- Climate-smart feed
- Water-saving tools
- Benefits:
- Lower costs for farmers
- Predictable demand for suppliers
- Reduced risk for investors
EDF field evidence:
- Tamil Nadu & Maharashtra pilots showed:
- Reduced costs
- Improved climate resilience
Read More: Dairy, Fisheries and Agricultural Cooperative–Based Economic Activities in India
C. Raise Awareness
- Farmers need:
- Local climate risk data
- Simple, actionable solutions
- Economic modeling shows:
- Every $1 invested in resilience → up to $10 in avoided losses
- Communication through:
- Cooperatives
- Microfinance institutions
Goal:
- Shift mindset from “extra cost” to “smart investment.”
6. Conclusion: From Vulnerability to Opportunity
- Indian dairy is not just climate-exposed—it’s a global test case.
- With:
- Strong institutions
- Cooperative networks
- Private investment
- India can lead in scalable, market-based climate adaptation.
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Disclaimer
I do my best to share reliable and well-researched market insights but occasional errors or omissions may slip through. Please view all content as informational.
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