Diary

CHAPTER 1

INTRODUCTION ABOUT THE MILK INDUSTRY

The Tamilnadu Cooperative Milk Producers Federation Ltd. constituted on the 1st

February 1981 is handling the entire commercial activities of procurement, processing

and marketing of milk and milk products.

The Federation had implemented the Dairy Development activities with the funds

provided by the National Dairy Development Board under Operation Flood Programmed

in 24 Districts and in Non-operation Flood Districts Dairy Development activities are

implemented by the Dairy Development Department through budgetary support both

under State/Central Plans.

To facilitate, better administration and qualitative improvement of integrated Dairy

Development, there are 17 Districts Cooperative milk Producer’s Unions covering all 28

Revenue Districts except Chennai. The normal activities of milk procurement and

distribution are being attended to by the District Unions. However, for genetic

improvement of milch animals, the Federation through the two bull mother farms owned

and managed by TCMPF carries out the production of frozen semen both for white cattle

and black cattle.  

The Federation owns four dairies, one at Ambattur with a capacity of 4.00 lakh

liters per day, one at Madhavaram with a capacity of 1.75 lakh liters per day, a third dairy

at Sholinganallur with a capacity of 4.00 lakh liters per day. These dairies cater to the

processing, packing and distribution of liquid milk in and around Chennai City. The

fourth dairy, a product dairy at Ayyanavaram with a capacity of 12000 liters per day, is

engaged in the manufacture of milk by-products such as yogurt, ice-cream and khova

The Federation supervises and coordinates the activities of the District Unions and

provides technical expertise as and when required and also undertakes planning and

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erection/expansion of Dairies and Chilling Centers of the unions on turnkey basis. The

Federation helps the Unions in marketing their milk products like Skimmed milk powder,

Ghee, Butter and Cheese both within and outside the state.

OBJECTIVES OF THE DAIRY

Assure a remunerative price for the milk produced by the milk producers' societies

through a stable, steady and well organized market support.Distribution of quality milk

and milk products at reasonable prices to the consumers.Bearing the above two

objectives in mind, the following major multifarious activities are undertaken by the Dairy

Development Department.

Provision of free veterinary health cover to all animals owned by the members of

milk cooperatives, implementation of Artificial Insemination Programmed, supply of

balanced cattle feed and inculcation of farmers with the modern animal husbandry

methods and practices.

All activities, which are essential for the up gradation of the milch animals and

improving their productivity in the long run, are also to be imparted on them.

Provision/creation of necessary infrastructure facilities for the enhancement of

processing and marketing has been made by way of establishing new chilling centers,

pasteurization plants and adoption of modern marketing system in order to supply quality

milk to the consumers.

FUNCTIONS OF THE DAIRY 

The main functions of the Dairy Development Department are Organization of

societies, registration of societies, supervision and control of primary milk cooperatives,

District Cooperative Milk Producers Union and Tamilnadu Cooperative Milk Producers

Federation.

2

The Dairy Development Department exercises statutory function - like Inquiry,

Inspection, Surcharge and Super session, appointment of special officer’s liquidation and

winding up of dormant Societies etc.

The Commissioner for Milk Production and Dairy Development, Deputy Milk

Commissioner (Co-operation), and Circle Deputy Registrars (Dairying) are vested with

quasi-Judicial powers in respect of settlement of disputes, appeal, revision and review

under various provisions of Tamilnadu Cooperative Societies Act 1983 & the rules made

there under.

The Commissioner for Milk Production and Dairy Development has been

designated as the State Registering Authority for the state of Tamilnadu, under the

provisions of Milk and Milk Products Order'92. All the Dairy units including private Dairies

handling more than 10,000 lpd of milk or Milk Products containing milk solids in excess

of 500 Metric tones per annum has to obtain registration certificate under the provision of

Milk and Milk Products Order'92.

The Commissioner for Milk Production and Dairy Development / State Registering

Authority has been conferred with powers to register the dairy units having handling

capacity from 10,000 LPD to2 lakh LPD.

The Commissioner / State Registering Authority / Deputy Milk Commissioner

(Co-operation) / District collector and Deputy Registrars have been authorized to carry

out supervision and periodic inspection of the dairies

National Diary Development Board (NDDB)

Diary co-operative account for the major share of processed liquid milk marketed

in the country. Milk is processed and marketed by 170 milk producers’ co-operative

unions, which federate into 15 state co-operative milk marketing federations.

3

The diary development board’s programmes and activities seek to strengthen the

functioning of diary co-operatives, as producer-owned and controlled organizations.

NDDB supports the development of diary co-operatives by providing them financial

assistance and technical expertise, insuring a better future for Indian farmers.

Over the years, brands created by co-operatives have become synonymous with

quality and value. Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras

(Rajasthan), Nandini (Karnataka), Milma (Kerala), Gokul (Kolhapur), Aavin(Tamilnadu),

are those that have earned customers confidence.

Some of the major diary co-operatives federations include

Andra Pradesh Diary Development Co-operative Federation Ltd.,(APDDCF)

Bihar State Co-operative Milk Producers Federation Ltd.,(COMPFED)

Gujarat Co-operative Milk Marketing Federation Ltd.,(GCMMF)

Hariyana diary Development Co-operative Federation

Himachal Pradesh state Milk Producers Federation Ltd., (HPSCMPF)

Karnataka co-operative Milk Producers Federation Ltd., (KMF)

Kerala state co-operative Milk Producers Federation Ltd., (KCMMF)

Madhya Pradesh state co-operative Dairy Federation Ltd., (MPCDF)

Maharastra Rajya Shakari Maryadit Dugdh Mahasangh

Orissa State Co-operative Milk Producers Federation Ltd., (OMFED)

Prdeshik Co-operative Dairy Federation Ltd., (UP PCDF)

Punjab State Co-operative Dairy Federation Ltd., (MILK FED)

Rajasthan co-operative Dairy Federation Ltd., (RCDF)

Tamilnadu co-operative Dairy Federation Ltd., (TCMPF)

West Bengal co-operative Milk Producers Federation Ltd., (WBCMPF)

4

ACHIEVMENT OF DIARY CO-OPERATIVES:

Commitments to help rural help themselves has guided the diary boards work for

more than 30 years this commitment has been rewarded with achievements made by co-

operative diaries in milk production, employment generation, per capital availability of

milk, foreign exchange Savings and increased farmer incomes.

REACH:

The Diary Co-operative Network.

Include 170 milk unions.

Operates in over 285 districts.

Covers nearly 96,000 village level societies.

Is owned by nearly 10.7 million farmer members.

MILK PRODUCTION:

India’s milk production increased from 21.2 million MT in 1968-69 to 78.1 million

MT in 1999-2000.Per capita availability of milk presently is 213 grams per day, up

from 107 grams per day in 1969-70

India’s 4% annual growth of milk production surpasses the 2% growth in

population. The net increase in availability is around 2% per year.

MARKETING:

Diary Co-operatives now market milk in about 200 classes 1 town and some 550.

During the last decade, the daily milk supply to each 1000 urban Indians has

increased from 17.5 to 43.5 liters.

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INNOVATION:

1. Bulk − vending − saving money and environment.

2. Milk travels as far as 2200 Kms to deficit areas, carried by innovative and road

milk tanker.

3. 95% of diary equipment is produced in India, saving valuable foreign exchange.

MACRO IMPACT:

1. The annual value of India’s milk production amounts to Rs.780 billion.

2. Diary co-operative generate employment opportunities for some 10.5 million farm

families.

PERSPECTIVE 2015:

The perspective 2015 plan of the Diary Board maps the future of dairying in India,

setting realistic goal for strengthen co-operative business, production enhancement,

assuring quality, and creating National Information Network. The plan was realistic with

the successful completion of the operation flood program and has developed by the

State milk Marketing Federation and the Milk Producer’s Co-operative Unions in

consultation with the diary Board. The perspective 2015 goals and strategies to meet

them have been drawn by its actual implementers-federation and unions and supported

by NDDB. (National Diary Development Board)

PERSPECTIVE 2015 GOALS:

1. Increase liquid milk procurement by co-operatives to 33% (488 lakhs kilograms

per day) of the marketable surplus in operation Flood Areas constituting 80% of the

National Milk Produced (i.e. quadruple liquid milk procurement by the year 2015)

2. Increase liquid milk sales to 365 lakhs kilo grams per day, more than 60% of the

market shares in metros, and on average of close to 50%in class 1 cities served by Co-

operative (i.e. triple fluid milk marketing by the year 2015)

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PRODUCT RANGE

MILK:

The federation is engaged in production of both milk and milk products. The

federation sells the following type of milk to customers in Chennai metro:

Standardized Milk

Toned milk

Full cream milk

UTH milk

These products are marked under the brand name “AAVIN”

MILK PRODUCTS:

1. Yogurt

2. Ice creams

3. Butter Milk

4. Khova

5. Skimmed milk powder

6. Ghee

7. Butter

8. Cheese

9. Flavoured milk

10. Mavin mango drink

7

PRODUCT DETAILS:

Product diary is situated next to the Ambattur dairy. It is controlled by the manager

(production and maintenance). The milk which is received through load tankers are

pumped into raw milk storage tank, then taken for different product processing. The

various products produced here are as follows:

Ice Creams

Khalakhad

Yoghurt/ fermented milk

Curd

Buttermilk

Gulabjamun

Flavoured Milk

Khoa (sweetened)

Khoa (unsweetened)

Mysorepak.

MARKET COMPETITORS:

Aavin stands first in the production and distribution of milk in Tamilnadu. Its

competitors are:

Arokya

Heritage

Thirumala

Nutra

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CHAPTER 2

REVIEW OF LITRATURE

ROSHIT SHARMA (1999) “VIEW ON INDIAN DIARY SECTOR”

Under the provisions of milk and milk products order. All the dairy units including

private dairies handling more than 10,000 lpd of milk or milk products containing milk

solids in excess of 500 metric tons per annum has to obtain registration certificate under

the provision of milk and milk products order

ANAND VEER (2005) “SPECULATIVE VIEW ON INDIAN DIARY SYSTEM”

The diary development board’s programs and activities seek to strengthen the

functioning of diary co-operatives, as producer-owned and controlled organizations.

NDDB supports the development of diary co-operatives by providing them financial

assistance and technical expertise, insuring a better future for Indian farmers.

DENNIS MATHEW (2006) “DIARY ON GLOBAL VIEW “

Commitments to help rural help themselves has guided the diary boards work for

more than 30 years this commitment has been rewarded with achievements made by co-

operative diaries in milk production, employment generation, per capital availability of

milk, foreign exchange savings and increased farmer incomes.

KEVIN ALEX (2004) “INDIAN MILK PROCURMENT”

In India realistic goal for strengthen co-operative business, production

enhancement, assuring quality, and creating national information network. The

successful completion of the operation has developed by the state milk marketing

federation and the milk producer’s co-operative unions in consultation with the diary

board. The perspective 2015 goals and strategies to meet them have been drawn by its

actual implementers-federation and unions and supported by NDDB. (national diary

development board)

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CHAPTER 3

RESEARCH METHODOLOGY

3.1 MEANING

The research approach for this study was conclusive research. Conclusive

researches are designed to help executives to choose among various possible

alternatives to make a viable business decision. Further this research was of descriptive

type, which is an offshoot of conclusive research. The problem for this research was

non-operating in nature the data both primary and secondary data, the source was one

hundred respondents for primary data. For the proper analysis of data simple statistical

techniques such as percentage were use. It helped in making more accurate

generalization from the data available.

3.2 SOURCES OF DATA

Source of data for this project primary & secondary only. In reference to the

theoretical concept as well as for information are collected through secondary sources

from paper published material i.e. Newspaper, journal and magazine & from printed

electronic media i.e. Internet websites. The primary data was collected through

questionnaire filled from the respondents.

3.3 COLLECTION OF PRIMARY DATA

For the study primary data is obtained through preparing questionnaire

3.4 COLLECTION OF SECONDARY DATA

The secondary data that are required are got from the internet, books and other

sources.

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3.5 SAMPLE SIZE

The method used for sample technique was random sampling method. This

method was used because it was not know previously as to whether a particular person

will be asked to fill the questionnaire.

3.6 SAMPLE UNIT

The population of the sample would be 100 respondents.

3.7 STASTICAL TOOLS

Simple Percentage Analysis=Number of Respondents/Total Number of

Respondents×100%

CHI-SQUARE

Chi Square analysis has been used to judge the relationship or association

between two attributes and to find out how they are influencing the investment patterns.

Χ2=Σ (O-E) 2/E

Degree of freedom= (R-1) (C-1)

Where O = Observed Frequency

E = Expected Frequency

R = Number of Rows

C = Number of Columns

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CHAPTER 4

ANALYSIS AND INTERPRETATION

Table - 1

Consuming Milk

S.No Factors No of

respondents

Percentage

1. Yes 89 89

2. No 11 11

Total 100 100.00

Interpretation

From the Above Table we predict that 89 % of the Respondents

consume milk & 11 % do not.

Inference

This Study reveals that 89 % of the respondents consume milk

CHART 1

Consuming Milk

12

Table – 2

Consumption of Milk

13

NO

OF R

ES

PO

ND

EN

TS

MILK CONSUMPTION

S.No Factors No of

respondents

Percentage

1. Aavin 28 28

2. Arokaya 30 30

3. Nutra 18 18

4. Akshya 24 24

Total 100 100.00

Interpretation

From the Above Table we predict that 28 % of them buy Aavin while 30

% buy Arokaya 18 % buy Nutra & 24 % buy Akshya

Inference

This Study reveals that 30 % of the respondents buy Aryoka Milk

CHART 2

Consumption of Milk

14

Table-3

Other milk factor

S.No Factors No of

respondents

Percentage

15

NO

OF R

ES

PO

ND

EN

TS

MILK BRAND COMSUMPTION

1. Butter 34 34

2. Cheese 28 28

3. Paneer 24 24

4. Others 14 14

Total 100 100.00

Interpretation

From the Above Table we predict that 34 % of the Respondents buy

Butter while 28 % buy cheese 24 % buy paneer and 14 others products.

Inference

This Study reveals that 34 % of the respondents buy Butter

CHART 3

Other milk factor

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Table - 4

Satisfaction of the Product

S.No Factors No of

respondents

Percentage

1. Yes 64 64

17

NO

OF

RES

PO

ND

EN

TS

OTHER PRODUCTS

2. No 36 36

Total 100 100.00

Interpretation

From the Above Table we predict that 64 % of the respondents are

satisfied while 36 % are not satisfied.

Inference

This Study reveals that 64 % of the respondents are satisfied with the

milk

CHART 4

Satisfaction of the Product

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Table – 5

About the Product

S.No Factors No of Percentage

19

NO

OF R

ES

PO

ND

EN

TS

SATISFICATION LEVELSATISFICATION LEVEL

respondents

1. Friends/Family 40 40

2. T.V. Ads 24 24

3. Newspaper/Boards 32 32

Total 100 100.00

Interpretation

From the above Table we predict that 40 % from Friends & Family 40 %

from Tv Ads 32 % Newspaper/Boards

Inference

This Study reveals that 40% of the respondents came to know about

the product through Family\Friends

CHART 5

About the Product

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Table – 6

Purchasing Significance

S.No Factors No of

respondents

Percentage

1. Quality 30 30

21

NO

OF R

ES

PO

ND

EN

TS

PRODUCT RELEVANCE

2. Quantity 24 24

3. Service 20 20

4. Others 26 26

Total 100 100.00

Interpretation

From the Above Table we predict that 30% of respondents look for

Quality, 24% go towards Quantity 20% Service 26 % others.

Inference

This Study reveals that 30 % of the respondents wanted Quality in their

product

CHART 6

Purchasing Significance

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Table – 7

Comparison Competitor’s product

S.No Factors No of

respondents

Percentage

1. Very Good 14 14

2. High 34 34

23

NO

OF R

ES

PO

ND

EN

TS

PURCHASING BASIS

3. Average 10 10

4. Same 42 42

Total 100 100.00

Interpretation

From the Above Table we predict that 14 % of the respondents compare

their product on very good, 34% is high, 10 % Average, 42% are same.

Inference

This Study reveals that 34 % of the respondents feels the price of

others product is very high

CHART 7

Comparison Competitor’s product

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Table – 8

Substitutes

S.No Factors No of

respondents

Percentage

1. Tea 38 38

25

NO

OF R

ES

PO

ND

EN

TS

COMPETITORS COMPARISION

2. Coffee 42 42

3. Cool Drink 12 12

4 Others 8 8

Total 100 100.00

Interpretation

From the Above Table we predict that 38% of respondents drink tea, 42

% drink coffee, 12 % drink Cool Drink, 8 % prefer others.

Inference

This Study reveals that 42 % of the respondents feel coffee as the close

substitute

CHART 8

Substitutes

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Table-9

Beverages as Substitutes

S.No Factors No of

respondents

Percentage

1. Yes 32 32

2. No 68 68

27

NO

OF R

ES

PO

ND

EN

TS

Substitutes

Total 100 100.00

Interpretation

From the Above Table we predict that 32% of the respondents use

Beverage as substitute while 68% do not

Inference

This Study reveals that 68 % of the respondents feel that Beverages are

not the close substitute

CHART 9

Beverages as Substitutes

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Table-10

Implication of Advertisements

S.No Factors No of

respondents

Percentage

1. Yes 64 64

2. No 36 36

29

NO

OF R

ES

PO

ND

EN

TS

Beverage on substitute

Total 100 100.00

Interpretation

From the Above Table we predict that 64 % of the respondents agree

with the Advertisement Implies and 36 % do not agree.

Inference

This Study reveals that 64 % of the respondents feel that

advertisements implies

CHART 10

Implication of Advertisements

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Table-11

Satisfaction of Homemade milk

S.No Factors No of

respondents

Percentage

1. Yes 61 61

2. No 39 39

31

NO

OF R

ES

PO

ND

EN

TS

Advertisement Influence

Total 100 100.00

Interpretation

From the Above Table we predict that 61 % of respondents are satisfied

with Homemade Milk while 39 do not agree.

Inference

This Study reveals that 61 % of the respondents feel satisfied with

home made milk

CHART 11

Satisfaction of Homemade milk

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Table-12

Performance of the Existing Product

S.No Factors No of

respondents

Percentage

33

NO

OF R

ES

PO

ND

EN

TS

Satisfication level

1. Outstanding 26 26

2. Excellent 30 30

3. Good 20 20

4. Average 24 24

Total 100 100.00

Interpretation

From the Above Table we predict that 26 % of respondents believe its

outstanding, 30 % are excellent, 20 % believe its good & 24 on average basis

Inference

This Study reveals that 30 % of the respondents feel their product is

excellent

CHART 12

Performance of the Existing Product

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Table – 13

Promotional Activity

S.No Factors No of Percentage

35

NO

OF R

ES

PO

ND

EN

TS

Performance level

respondents

1. Yes 64 64

2. No 36 36

Total 100 100.00

Interpretation

From the Above Table we predict that 64 % of respondents are affected

by their promotional activity and 36 % are not

Inference

This Study reveals that 64 % of the respondents feel their product

makes product promotion

CHART 13

Promotional Activity

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CHAPTER 5

5.1 FINDINGS

37

NO

OF R

ES

PO

ND

EN

TS

PROMOTIONAL ACTIVITY

This Study reveals that 89 % of the respondents consume milk

This Study reveals that 30 % of the respondents buy Aryoka Milk

This Study reveals that 34 % of the respondents buy Butter

This Study reveals that 64 % of the respondents are satisfied with

the milk

This Study reveals that 40% of the respondents came to know about

the product through Family\Friends

This Study reveals that 30 % of the respondents wanted Quality in

their product

This Study reveals that 34 % of the respondents feels the price of

others product is very high

This Study reveals that 42 % of the respondents feel coffee as the

close substitute

This Study reveals that 68 % of the respondents feel that Beverages

are not the close substitute

This Study reveals that 64 % of the respondents feel that

advertisements implies

This Study reveals that 61 % of the respondents feel satisfied with

home made milk

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This Study reveals that 30 % of the respondents feel their product is

excellent

This Study reveals that 64 % of the respondents feel their product

makes product promotion

5.2 SUGGESTIONS

Milk and milk product purchase decisions are more decided by women rather than

male, because she act as a invigilator, execute her decision and influence the

same to the purchase while ascertaining the quality, freshness and price. Hence, I

suggest Diary co-operative society to concentrate more on the women and men

39

suggestions for designing the marketing strategy, because women’s role in the

house is dominant, even in the various decisions.

Income of the people decides the purchasing power. The high income prefers to

purchase product with the quality, freshness, thickness, etc. and vice versa. So I

suggest Diary to concentrate also on low income segment to capture market and

position themselves in the minds of the customer with required quality and quality

milk and milk products.

Quality and Brand Image plays a dominant role. Milk and milk products move in

the market due to its quality and brand. Therefore it should maintain the same.

Since milk is having loyal customer it should concentrate more on this factor

through various potential programmes such as campaign, premium packs, offers

etc., this helps to increase the loyalty towards the diary products

As only 30% of the total respondents are dissatisfied which is quite a large

percentage and this may influence negatively and increase the rate of switch over.

Hence I suggest management to concentrate on few product quality, shelf life,

dealers approach, outlet maintenance etc. will help diary department to satisfy to

a greater extent.

Milk and milk product are having high demand and it is considered as a very

essential products. In present practice, purchase of milk and milk products is

through dealers. In this connection dealers approach towards the product.

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5.3 CONCLUSIONS

From the survey conducted it is observed that milk and Milk products has a good

market share.

From the study conducted the following conclusions can be drawn. In order the

dreams into reality and for turning liabilities into assets one must have to meet the

needs of the customers.

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The factors considered by the customer before purchasing milk are freshness,

taste, thickness and easy availability.

Finally I conclude that, majority of the customers are satisfied with the milk and

Milk products because of its good quality, reputation, easy availabilities. Some

customers are not satisfied with the Milk & Milk products because of high price,

lack of dealer services, spoilage and low shelf life etc. therefore, if slight

modification in the marketing programme such as dealers and outlets, promotion

programmers, product lines etc., definitely company can be as a monopoly and

strong market leader.

Diary Department has also to take care of its competitors into consideration and

more importantly it’s customers before making any move.

ANNEXURE

5.4 QUESTIONNAIRE

1. Name

2. Age

3. Gender

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4. Occupation

5. Annual Income

6. Do you consume milk?

Yes❏ No❏

7. How much litres milk do you purchase per day?

---------------------

8. Which Milk do you buy?

❏Aavin ❏Arokaya ❏Nutra ❏Akshya

9. Other than milk what do you purchases in the same brand

❏Butter ❏ Cheese ❏Panner ❏Others

10.Are you satisfied with the quality of the product?

Yes ❏ No❏

11.How did you come to know about your milk product?

❏Friends/Family

❏T.V. Ads

❏Newspaper/Boards

12.What exactly you wanted in the milk you purchase?

❏Quality ❏Quantity ❏Service ❏Others

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13.Do you think the price of your existing product is high / low compared to

Competitor’s product?

❏Very good ❏High

❏Average ❏Same

14.Other than milk which component is comparable?

❏Tea ❏Coffee ❏Cool drinks ❏Others

15.Are beverages close substitute for milk?

Yes ❏ No❏

16.Does Advertisement implies the sale of Diary Product

Yes ❏ No❏

17.Will you be satisfied with the home made milk products?

Yes ❏ No❏

18.What is your opinion about the performance of your existence Diary Product?

❏Outstanding ❏Excellent

❏Good ❏Average

19.Do the various schemes / promotional activities affect your purchase plans?

❏Yes ❏No

20.Suggest your comments on improving the diary products

______________________________________________

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5.5 BIBLIOGRAPHY

Websites

www.altavista.com

www.askjeeva.com

www.google.com

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www.aol.com

www.hindustan.com

www.projecthubs.com

www.indiainfoline.com

Newspapers

Times of India

The Economic Times

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