Amul Milk in European Market

Amul, a leading Indian dairy brand operated by the Gujarat Cooperative Milk Marketing Federation (GCMMF), is set to enter the European market by November 2024. This move follows its successful launch in the United States earlier this year. Managing Director Jayen S. Mehta announced the expansion during a ceremony at the Indian Institute of Foreign Trade.

Initial Entry in Spain

Amul plans to introduce its products in Spain as a test market. The company will evaluate consumer response before expanding to other European countries. This phased approach allows Amul to adapt its offerings to suit local preferences.

Diverse Product Range

The initial product lineup will include milk and a variety of fresh dairy products. Amul aims to cater to both the Indian diaspora and local European consumers, leveraging its reputation for high-quality and diverse offerings.

Addressing Trade Challenges

The Indian dairy sector faces significant non-tariff barriers in international markets, which can impede export growth. Mehta emphasized the need for policy reforms to facilitate smoother trade, highlighting how overcoming these barriers could bolster Amul’s international sales.

Supporting Indian Dairy Farmers

Dairy farming sustains the livelihoods of over 100 million families in India, most of whom are small-scale farmers. Amul’s global growth is expected to provide additional income opportunities for these producers, strengthening rural economies.

Trade Policies and Import Duties

India’s 30% import duty on dairy products affects the competitiveness of foreign brands in the domestic market. Amul’s European expansion may also influence discussions on trade policies concerning dairy imports and exports.

Financial Strength and Global Strategy

Amul, with an annual turnover of ₹80,000 crore, ranks among the world’s leading dairy and food brands. Owned by approximately 3.6 million farmers, the cooperative underscores its grassroots support. Earlier in March 2024, Amul launched four milk variants in the U.S., targeting Indian and Asian communities. This successful venture serves as a foundation for its global strategy.

Future Outlook

Amul’s entry into Europe marks a significant milestone in its international journey. By leveraging its strong brand reputation, strategic planning, and market adaptation, the company aims to establish itself as a key player in the European dairy market.