The dairy processing sector in India has been historically small and relatively unproductive. Profitability, survival, and growth of the dairy sectors is key area of concern. There is substantial variation in the level of productivity, performance and profitability among the private, cooperative and government dairy processing plants. The paper discusses the opportunities and challenges for improving and enhancing the efficiency and effectiveness of the dairy operations. On the basis of literature survey and primary data collected through the feedback of the dairy plant managers and experts, the various key areas in dairy operations which need to be focused for the efficient dairy plants operations are identified and discussed by the researcher. The researcher recommends the Loss control programme model for the efficient operations of the dairy plants.

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