Abstract for: A System Dynamics Based Strategic Planning Model for a Rural Indian Milk Dairy
Dairy farming is a large unorganized sector in India and a major source of livelihood in rural areas. Since the White revolution in 1970, this industry has seen a remarkable transformation. India is currently one of the largest producer of milk in the world. Dairy farming is a big business in India and it is estimated, this business has the potential to reach an annual turnover of over INR 5 Lakh Crores soon. Further, technological developments in the recent years has enabled this sector to see rapid growth. Hence, this has attracted even people with non-agriculture background to venture into this business. In spite of huge growth potential, certain issues like availability of quality fodder, veterinary consultants, supply chain coordination, manpower related issues etc., tend to derail the growth. This study refers to a rural dairy business in India, and focusses on the dilemma of the entrepreneur about the businessís future potential. This study uses System Dynamics (SD) to simulate the different scenarios and analyze the future trends to conclude on what would be a better operational strategy for the entrepreneur.