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Jayant Mundhra

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Dexter Capital Advisors • 6m

#Deepdive: This one thing is set to drive India’s global share of dairy production from 25% to 33% by 2030! 🙌🙌 Coming August, we could be witnessing an inflexion point which will change things for the Indian dairy sector forever. Time to deepdive! .. The dairy industry depends A LOT on what’s born out of a cow/buffalo, a male or a female calf 🐄🐃 Because, a female child ensures visibility for more milk production in coming years, while male child more or less is seen as a liability. This is why, dairy farmers worldwide often go for sex-sorting technology, which helps sort the semen and dramatically increase the odds of birthing a female calf. .. However, here comes the problem for Indian dairy farmers. -> In the US, Europe, Australia or New Zealand, dairy farmers own hundreds of cows. The economies of scale are huge -> Meanwhile in India, most dairy farmers hardly own a cow or two, which too is often used for domestic consumption of milk And thus, the cost of sorting the semen is much more effective in those developed nations, than in India. .. And there comes another problem. -> Globally, there are only two major companies which have the technology to sort the semen and increase the odds of birthing a female calf -> And both of those are US-based entities (often known as ST and ABS). And given the duopoly they enjoy, they charge exorbitant fees This is why most dairy farmers in India are unable to afford this, and thus end up disadvantaged 📛📛 .. Outcome? India is the world’s largest producer of milk, and yet has 67 semen sorting stations. Heck. Just 67! All because most dairy farmers can’t afford the tech which is so critical to their growth in the segment. And that is where the good news also comes in. .. Let’s head to Tamil Nadu’s Alamadhi. Why? Because in March, here, India launched the maiden trial of a domestically developed tech to sort semen for cows and buffalos. -> This tech has already produced 5k doses of sex-sorted semen. And post the review of the trial results, the technology will be delivered to the nation in August (just about 2 months from now)! -> And once that happens, it’s expected, that the cost of every such dose will come down to a third! -> That’ll make the tech affordable for tens of lakhs of more dairy farmers, if not more Thus, it will be a massive booster for the Indian dairy industry. .. But, how big a booster will it really be? The Modi Govt aims to raise the annual milk production by 30% from 230mn tonnes a year to 300mn tonnes by 2032. This will take our global share of annual milk production from 25% to 33%! And it is counting on this new tech to be a critical driver of the same. Amazing, right? Did you know this!

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