Final Dairy I

8/12/2019 Final Dairy I

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Dairy IndustryGuided By: Prof. R P Patel

Submitted By: Akshar Patel (12M03)

Avni Radia (12F54)

Jyotipriya Das (12M62)

Parth Vala (12M72)

G H PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT

BATCH 2012 - 2014

SARDAR PATEL UNIVERSITY


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Indian Dairy Industry


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World largest milk producing nation. contributesabout 15 % to the total milk production of the world Indian dairy industry stands at a mammoth size of US$ 70 billion. Gross output of 103 million tons of milk in 2009. (Growing 5 % per annum) 57 millions of cattle population and 39 millions of buffaloes. (1997) More than 10 million dairy farmers belong to 96,000 local dairy cooperatives, who sell their

products to one of 170 milk producers cooperative unions who in turn are supported by 15

state cooperative milk marketing federations.

Indian Dairy Industry has achieved this strength of a producer-owned and professionally-managed cooperative system, despite the facts that a majority of dairy farmers are

illiterate and run small, marginal operations and for many farmers, selling milk is their sole

source of income.

In India dairy industry has been practiced as a rural cottage industry over the years. Semicommercial dairy industry stated with establishment of military dairy farmers and co-

operative milk unions in 19thcentury.

The growth of Indian dairy Industry during last three decades has been impressive, at morethan 5% per annum; and in late 1990-2001 the country has emerged as the largest

producer of milk.


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The existence of restrictive trade policy milk in the Diary Industry and the emergence ofAmul type cooperatives have changed the dairy farming practices in the country.

Farmers have gained the favorable price for their milk and for their production,which wasessentially a self-reliant one is which is now being transformed into a commercial

proposition.

India as nation stands first in its share of dairy production in the international scenario. Theindustry contributes about Rs 1,15,970 to the national economy.

The Indian Dairy Industry specializes in the procurement, production, processing, storageand distributionof dairy products.

Indian dairy association

Indian Dairy Association (IDA) is the apex body of the dairy industry in India. The membersare from the cooperatives, MNCs, corporate bodies, private institutions, educational

institutions, government and public sector units.

IDA functions very closely with the dairy producers, professionals & planners, scientists &educationists, institutions and organizations associated with the development of dairying in

India.

The objective of the Association shall be the advancement of dairy science and industry,farming, animal husbandry, animal sciences and its branches including dairy farming &

research on breeding, and management of dairy livestock The IDA organizes seminars, symposia and exhibitions on a wide range of topics catering to

various segments of professionals, scientists, institutions and organizations associated with

the development of dairying in India.

How India became the No. 01 Milk producer of the global dairy industry?

India is the highest milk producer in the entire globe. India is well known as the oyster of the global dairy industry, with opportunities galore for

the entrepreneurs globally.

The main objective of the Indian Dairy industry is to manage the national resources in amanner to enhance milk production and upgrade milk processing using innovative

technologies.

Letsstudy the Indian dairy industry on 5 dimensions to find out how they become no. 1milk producer of the world.


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(01).National Policies regard with dairy industry

Indias national policies with regards to economy, Agriculture, rural development and dairyand milk industry are the major secrets for their successfulness in dairy industry.

In India people who are involving with policy making are well educated people and theyhave both theoretical and practical knowledge about the dairy industry.

When making the policies regard with dairy industry they have taken most suitable decisionsbefore 2, 3 decades.

These policies are clearly defined and they were prepared as suitable for forecasted futureneeds.

Therefore these policies do not change with time to time when governments change. Basic thing is politicians could not change them according to their political agendas. They have linkages among different policies such as economy, Agriculture, rural

development and dairy and milk industry policies. Also they make policies as cooperatively

each other.

Their policies are well focused on long term goals. They define most suitable strategies for achievement of them.

Successof Indian

Dairy

industry

Processing &value adding

Management

Nationalpolicies Animal/

Breeds

Marketing


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(02). Animal/Breeds

57 millions of cattle population (1997) 39 millions of buffaloes. (1997) 27 acknowledged indigenous breeds of cattle. Seven breeds of buffaloes.

Indigenous cattle breeds- 40%

Buffaloes - 50%

Cross bred cows - 10%

One of the strategy use in Indian dairy industry is they do not highly depend on crossbreeds.

They have understood that indigenous cattle and buffaloes are the best adaptable animalsfor the country.

Therefore special efforts are also made to protect and preserve the indigenous cattle andbuffaloes in their native tract.

There is a national project for cattle and buffaloes breeding. A Central Herd Registration for identification and location of superior germ plasm of cattle

and buffaloes, propagation of superior germ stock, regulating the sale and purchase, help in

formation of breeder's society and to meet requirements of superior bulls in different partsof the country is also being implemented. The Government of India has established Central

Herd Registration Unit in four breeding tracts

The seven Central cattle breeding farms at Suratgarh (Rajasthan), Chiplima and Semiliguda(Orissa), Dhamrod (Gujarat), Hessarghatta (Karnataka), Alamadi (Tamil Nadu) and

Andeshnagar (Uttar Pradesh) are engaged in scientific breeding programmes of cattle and

buffaloes and production of high pedigreed bulls for National Project for Cattle/Buffaio

Breeding Programme besides providing training to farmers and breeders.

The Central Frozen Semen Production and Training Institute (CFSP&TI) located atHessarghatta (Bangaluru) is producing frozen semen doses of indigenous, exotic andcrossbreed cattle and Murrah buffalo bulls for use in artificial insemination (A1). The

Institute also provides training in semen technology to technical officers of the State

Governments and acts as a Centre for testing the indigenously manufactured frozen semen

and Al Equipment.


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Popular cattle breeds in India

Breed Average milk production- kg per lactation

Red Sindhi 2500-3000

Sahival 1000-3000

Gir 1590

Tharparkar 1135-1980

Hariyana 1400-2300

Ongole

(03). Management Strategies

Management of Indian dairy industry is done by 2 different parties.

Private dairy management

Cooperative managementMACS, State


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Private dairy management

Company Agentin village for milk procurement Companies has not direct involvements with farmers Company has negotiated with agent for price, but it is not the price farmer gets.(slightly

above co-op)

Agent gives loans to farmer to maintain loyalty. They select special areas in which district co-ops is less active and areas with high milk

density.

Ex- Andra pradesh private dairy management initiated in 1992 and it is collecting milk about7 lakh liters per day among 3500 villagers. It is leading well recognized brand and have own

super markets.


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Cooperative management

Dairy cooperative management is the one of successful strategy applied by Indians towardsthe success of the dairy industry.

This cooperatives help to collect, store and marketingtheir perishable products safely. Profit maximization and easy accessibility to the bank finance. It gives fixed price for their milk. While day today functioning of cooperatives is managed by full time salaried employees, the

committee or board of the cooperatives, consisting of only elected members, make the

decisions of the cooperatives.

Most dairy cooperatives adopt either two pr three tier systems. A group of primary level cooperatives forms a union which can be for a district, region or

milk shed area. This is the 2nd

tier.

The third tier is the unions joining up to form a federation at state level or national. The federation has the power to act on such issues as pricing, policies, extension, training,

control of milk products imports, subsidies and credit.

There are two types of Cooperative bodies in India. Mutually aided co-operative societies.(MACS) State Co-operatives

Mutually aided co-operative societies.(MACS)

MACS have two tire systems. Village or union level and district level. Accountability and ownerships at the village and district levels. It has democracy in village or union level and freedom to setting prices. No government control in administration. Members were elected annually. They are registered as separate MACS society and has the freedom to use its own

profit.


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State Co-operatives

3 tire system Its contain village level, district level and state level. Village level managed by village society president. District levels managed by professionals. State level managed by bureaucrat. Normally they give low prices. They are registered under cooperative society act. When we compare these management systems, private dairy management and MACS

show a higher successfulness than state cooperatives.

(05). Marketing of milk products in India

Marketing is basically doing by big companies , well established cooperatives and statecooperatives.

Therefore marketing is done well with popular brand names and images of companies andco-ops.

Also they can keep quality and maintain standards which are expected by national andinternational market.

Specially village level farmers are not engaging with marketing of milk in India. For an example dairy cooperation's like AMUl maintained a good quality of products under

the brand name of AMUl. Beside the India Amul has entered to the overseas markets such

as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong, and few South

African markets.

Final Dairy I

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