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[Food Processing] Milk Dairy Sector, Supply Chain, Upstream Downstream Issues, Amul Model, Operation Flood « Mrunal

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Page 1: [Food Processing] Milk Dairy Sector, Supply Chain, Upstream Downstream Issues, Amul Model, Operation Flood « Mrunal

9/20/13 [Food Processing] Milk Dairy Sector, Supply Chain, upstream downstream issues, Amul Model, Operation Flood « Mrunal

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[Food Processing] Milk Dairy Sector, Supply Chain, upstream downstream issues, Amul Model,Operation Flood

Prologue

Scope-Significance of Dairy Sector

Location: Dairy cooperatives

@Upstream IssuesLow productivity of milch animals

#1: Veterinary problems

#2: Breeding issues

#3: Fodder problems

Azolla fern

Milk Quality

@Processing LevelRegional imbalance

Anand/Amul Model/dairy cooperative model

Amul Supply Chain

Cooperative sector limitations

Downstream issues#1: MRP and adulteration

Synthetic Milk

#2: Ethnic products: untapped potential

#3: Export issues

Fonterra crisis

#4: Tax on inputs

NDDB

Operation Flood

Government Schemes

National Dairy Plan (NDP)

Mock Questions

Prologue

First, regarding “Write Articles, Win Books” competition: so far 34 entries received. And last date to submit is 25th Sept 2013. Clickme for more details.

For UPSC General Studies Mains Paper III, we were looking at the Food processing and related industries in India. So far we sawfollowing topics

1. Food processing industry: Awesomeness and Obstacles2. Food processing industry: Truckload of Government Schemes and bodies3. Marketing of agricultural produce: issues and constrains, Nuisance of APMC Acts and Commission Agents4. Agro/Food Processing: Export, Dumping, FDI, Finance, Taxation, Budget Provisions, CODEX, NWR, BRGF, RKVY5. Supply Chain Management, Upstream Downstream requirements for Fruit & Vegetables, Confectionery industries

Then I got bored with food processing, hence made three compilations on Hindu Sci-tech (and some posts about results, answer keysetc.) Anyways, back to where we had left in [Food processing]: fruits veggies SCM-updream downstream. Now time for Dairy SCM-upstream downstream.

UPSC syllabus topic in this article

prelims Paper I

Chemistry: componentsof synthetic milkAgro-tech: azolla fern.Biology: Food andMouth disease

(GS1) location of primary, secondary, and tertiary sector industries in various parts of the world(including India)

Dairy industry in India.

(GS2) Effect of policies and politics of developed and developing countries on India’s interests,How the Fonterra crisis willhelp Indian dairy biz.

HOME ECONOMY SEPTEMBER 19TH, 2013 13 COMMENTS

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(GS3) economics of animal-rearing Lot fodder material.

(GS3) Food processing and related industries in India-scope and significance, location, upstreamand downstream requirements, supply chain management.

for Milk/Dairy business.

Next time we’ll see [Food processing] meat, poultry and fisheries.

Scope-Significance of Dairy Sector

HIGHEST

PRODUCTION

Top five Milk producers (World)

1. India2. United States of America3. China4. Pakistan (as per NDDB, but I’m baffled nonetheless.)5. Russian Federation

LARGEST

POPULATION

India has the world’s largest livestock populationhalf the world population of buffaloes1/6th of the world goat population

CONTRIBUTION TO GDP Livestock sector (milk, meat, eggs) contributes 3.6% of GDP. (2010’s data)

AvailabilityPer capita milk availability All India: ~290 gm; Punjab (highest): >900gm.still per capita milk availability in India less than world average

EMPOWERMENTTo Farmers, Women And Consumersmore details under “operation flood”

India has proximity to milk deficit countries e.g.

1. Bangladesh2. Indonesia3. Malaysia4. Philippines

5. South6. Korea7. Sri-Lanka8. Thailand

Hence Indian dairy production could be utilized to earn good foreign exchange by targeting those markets. More under“Downstream=>Export”.

SOME STUPID NUMBERS FROM ECONOMIC SURVEY:

Year Milk (Million Tonnes) Eggs(Million Nos.) Fish(Million Tonnes)

2011-12 >120 >60,000 >8500

Location: Dairy cooperatives

STATE Brand Name official name

GUJARAT Amul Gujarat Cooperative Milk Marketing Federation (GCMMF)

ANDHRA VijayaAndhra Pradesh Dairy Development Cooperative Federation(APDDCF)

KARNATAKA Nandini Karnataka Cooperative Milk Producers’ Federation (KMF)

MAHARASHTRAMahanand, Gokul, Dhawal, DudhPandri

Maharashtra Rajya Sahakari Maryadit Dugdh Mahasangh(Mahasangh)

PUNJAB Verka Punjab State Cooperative Milk Producers’ Federation (MILKFED)

TN Aavain Tamilnadu Cooperative Milk Producers’ Federation Ltd (TCMPF)

Issue: there is a regional imbalance in production and processing capabilities. e.g. UP contributes over 17 percent of India’s total milkproduction. Ironically, only one percent is procured by co-operatives, remaining milk goes to private-dairy players, who exploitfarmers, and do adulteration.

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Top 5 states

NO. COWS N BUFFALOS MILK PRODUCTION PER CAPITA MILK AVAILABILITY

1. Uttar Pradesh2. Madhya Pradesh3. Rajasthan4. Andhra Pradesh5. Maharashtra

1. Uttar Pradesh2. Rajasthan3. Andhra Pradesh4. Punjab5. Gujarat

1. Punjab2. Haryana3. Rajasthan4. Himachal Pradesh5. Gujarat

Bottom in all of above: North Eastern States, Delhi, Goa and UT.

Milk production =directly related to fodder availability.Fodder=need irrigation.Therefore, states with good irrigation facilities and / or rich farmers that can afford tubewells= milk production is high.

For these reasons, you can see how MP is in top-5, for number of cows and buffalos BUT still MP doesn’t figure in top-5 in milkproduction due to fodder shortage. (Rankings taken from NDDB website)

@Upstream Issues

Low productivity of milch animals

Country Avg. Cow Milk Kg Per Year

Australia >4000

EU >5500

USA >8000

World Average 3100

India 800

India has world’s largest cow population, but the average productivity of Indian cows is among the lowest in the world. WHY?

1. Veterinary service problems2. Breeding problems3. Fodder problems

Let’s see them one by one:

#1: Veterinary problems

1. Manpower

To support health programmes for the massive livestock population, we need more than 60000 veterinarydoctors in the rural areas. (right now we only have ~25000)Need to strengthen the mobile veterinary services to ensure door-step veterinary support, particularly ininaccessible areas.Veterinary hospitals, dispensaries are inadequate in rural areas.

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2. information

The disease reporting is neither timely nor complete which delays proper interventions.NIC developing software for computerized National Animal Disease Reporting System (NADRS)It’ll link taluka, Block, District and State Headquarters to a Central Disease Reporting and Monitoring Unit atthe Department of Animal Husbandry, Dairying & Fisheries (DADF)This will ensure faster and reliable disease reporting

3. Inadequate availability of vaccines vs. High prevalence of FMD, theileriosis and brucellosis amongst cattle4. FMD alone causes economic loss of ~Rs.20,000 crore per year to India. let’s check more details about FMD for MCQs.

Foot and mouth Disease (FMD)

FMD is a viral disease that spreads rapidly between animals.high prevalence in Africa, the Middle East and AsiaFMD affects cloven-hoofed animals (those with divided hoofs), including cattle, buffalo, camels, sheep, goats, deer and pigs.It can even affect wild animals e.g. Deer, wild pigs and buffalos.Pigs are regarded as ‘amplifying hosts’ because they can excrete very large quantities of the virus in their exhaled breath.Cattle are very susceptible to FMD. They get infected by breathing even small quantities of the virus.FMD spreads rapidly from one animal to another, especially in cool, damp climates and/or when animals are housed closelytogether.Although FMD is not very lethal in adult animals, it can kill young animals and cause serious production losses.Animal suffering from FMD :

Becomes lame and unable to walk to feed or water.Stops eating because its tongue and mouth gets blister- very painful to chew anything. =Adult animal can survive a few daysof starvation but young animal will die.Its mammary glands are damaged=milk production loss.

FMD has serious ramifications in international trade of milk and meat. Because countries that are free of the FMD disease= theyban or restricting imports from FMD affected countries.There is no cure for FMD. The Affected animals will recover with time. Although Vaccines can protect against the disease.

Department of Animal Husbandry, Dairying & Fisheries (DADF) has initiated National Programmes for prevention and control ofFMD, with help of State government.

#2: Breeding issues

CLIMATEThe cattle from temperate region have higher milk production. (e.g. Denmark)But India: tropical, sub-tropical, hot-humid type climateSo even when we import foreign cattle breeds, they give less milk because of climatic factor.

BREEDINGRESEARCH

Present breeding strategy focuses on high yielding cows/buffalos rather than developing breeds that aretolerant to adverse climate/fodder conditions.Crossbred animals are sent to areas poor in feed resources=they don’t survive/don’t produce optimumamount of milk.Limited availability of quality breeding bulls and semen.

Notable breedsCow: Sahiwal, Gir, Rathi and KankrejBuffalo: Murrah, Mehsana and Jaffarbadi

Solution?

BREED promote in ___ area

HOLSTEIN FRIESIAN in feed-fodder rich states

JERSEY in states poor in feed/fodder resources.

Government started ‘National Project for Cattle and Buffalo Breeding (NPCBB)’ is to promote genetic upgradation of Indiancattle livestock through Artificial Insemination.NGOs like BAIF and JK trust are operating about 6,000 mobile artificial insemination centres.

#3: Fodder problems

1. Rich farmers=irrigation /tubewell =can grow fodder=>higher milk yields2. But majority are poor farmers= rely on common pastures =>underfed cattle= less milk yields.3. For the same reason: MP is in top 5 for cattle population but not in top 5 for milk production4. While the number of livestock is increasing, the grazing lands are diminishing, because

Real-estate mafias and National Son-in-law encroaching on such landFarmers prefer growing food grains, oil seeds, and pulses hence fodder production generally gets lower priority.

5. At present, fodder is being cultivated only on 4% of gross cropped area= insufficient to meet requirement.6. High quality fodder seeds =not available.7. Agriculture crop residues are sold to paper industry, packaging, etc. rather than using as animal feed.8. We dont have specific extension machinery with specialized manpower for popularization of good fodder varieties.

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Solutions?

FODDERBANKS

to procure surplus fodder from the farmers in areas with good rainfall / irrigation.Convert this fodder into silage or fodder blocks for storageSupply this packed fodder to the deficient areas.

FOREST

the degraded forest areas, mostly under the Joint Forest Management Committees (JFMCs), can be usedfor assisting growth of indigenous improved fodder varieties of grasses, legumes, and trees under area-specific silvi-pastoral systems.Dovetail the ongoing schemes like MGNREGA and RKVY for t̂his purpose.

AZOLLAPRODUCTION

to improve quality of nutrition for the livestockLet’s see Azolla in detail, for UPSC is nowadays obsessed with asking minimum one MCQ from somerandom agro related plant/organism thing E.g. Mycorrhizal biotechnology and Nostoc algae in CSAT 2013.

Azolla fern

Azolla is a floating fern. It resembles algae, Multiplies very rapidly.widely distributed in tropical belt of India.Grows in paddy fields or shallow water bodies.

FOR CROPPINGAzolla is a Nitrogen fixing fern= aids in the growth of rice.Azolla reduces evaporation from water surface and increases water use efficiency in rice.Suppresses the weed growth.

FOR LIVESTOCKFEED

Azolla has 50-60% protein on dry weight basis, rich in almost all essential amino acids, vitamin A,vitamin B-complex and mineralsLivestock easily digest it.Dry Azolla can be mixed with other fodder, or can be given directly to cattle, poultry, sheep, goats,pigs and rabbits.Green Azolla is also a good feed for fishes.

Milk Quality

From farm to dairy, there is significant deterioration in milk quality. Because of two reasons:

1. BOGUSINFRASTRUCTURE

1. lack of all-weather roads in many villages2. Electrical problems in rural areas= cooling centers don’t work 24/7 basis.3. lack of potable water and supply sewage disposal => animals kept in unhygienic condition=milk

gets contaminated.

2. BOGUS HANDLING

1. Contamination through equipment. Because lack of potable water=> milk-cans, buckets,tankers are not regularly washed.

2. Bad roads=more transport time=more bacterial growth in milk.3. Careless attitude of cooperative-staff. They don’t keep the prescribed low-temperature during

collection and transport of milk.4. ^Why careless attitude? Because Dairy cooperative elections won through money power and

then such office-bearers recruit any swinging dude in dairy as long as he is payin bribes forgetting the job.

Result: following properties of milk get affected

SENSORY PROPERTIES color, taste, odour

COMPOSITION fat, protein etc.

HYGIENE bacteriological growth

Solution?

1. Currently, when farmer supplies milk @dairy cooperative society (DCS) of his village, they only test one thing: “fat content”.Therefore, farmer has no incentive to maintain any other qualities of milk.

2. Setup quality testing facilities @collection center to test bacteria count, acidity, smell/taste, bacterial count, heavy metals,pesticides residue etc. and not just fat-content alone.

3. Train farmers on hygiene habits for milk collection.4. Pay farmers more money if they supply quality milk5. Supply of Hygiene Kits+ Training to DCS staff. Impose penalty if they don’t comply with the standards.6. Less manual handling, use more machines: Bucket Milking machines, Feed racks, water bowls and partitions etc.

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@Processing Level

A typical supply chain of milk sector:

Regional imbalance

Bulk of new capacity in the period in last decade, has been established in the Northern states, Maharashtra and Tamil Nadu.Remaining states are lagging in dairy growth.Capacity utilization of dairy plants is about 60% (assuming 300 working days in a year). Due to Lack of milk availability in the leanseason.For e.g. Rajasthan has 8% share in milk production and 11% share in consumption of milk products, however the share in dairyprocessing capacity is 4%. Meaning much of the milk escapes from the ‘value-addition’ in dairy supply chain. A similar situationprevails in Bihar.

Anand/Amul Model/dairy cooperative model

1946Sardar Patel encourage the farmers of Anand region in Gujarat, to form their own milk cooperative, to protect themselvesfrom exploitation from private milk traders

1965

National Dairy development board setup @Anand, to replicate the dairy cooperative model throughout country.

(PM Lal Bahadur Shashtri)

1971 Gujarat Cooperative Milk marketing federation setup (GCMMF)

1974 GCMMF starts maketing milk products under single brand name Amul (Anand Milk Union Limited)

Amul Supply Chain

VILLAGE

In the given village, a dairy Cooperative Society (DCS) is formed.Every dairy cooperative society has ~110 farmers.Combined, all DCS together handle more than 18 million kg milk / day.they’re equipped with Automatic milk collection unit (AMCUS): computer analyses fat content of milk,automatic printing of receipts etc.

DISTRICTMARKETINGCOOP.UNION

they process milk=> butter, ghee, milk powder, cheese, ice cream etc.E.g. Banaskantha District Cooperative Milk Producers’ Union Limited known as Banas Dairy. Theymanufacture a large number of dairy products under AMUL, SAGAR and BANAS brands. Usually “Banas”products sold locally, and Amul products sent to other states.similarly Gandhinagar District Co-operative Milk Producers’ Union Ltd.=Madhur dairy.Surat= Sumul DairySurendranagar District Co =Sursagar Dairy.They can sell their products under the brand name “Amul” as long as they meet the requirements ofGCMMF. (e.g. must collect 30,000 litres milk daily for a period of three years)

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STATE MILKCOOP.FEDERATION

The main “boss” is Gujarat Cooperative Milk marketing federation (GCMMF).All of above district cooperative unions (Banas, Madhur, Sumul Sursagar) etc. fall under GCMMF umbrella.

RETAIL

Amul has more than 5000 outlets of own- at high streets, residential areas, Railway Stations, Bus Stations,Educational Institutions, across India.2012: Amul planned to setup 10000 retail outlets across India.Other than that, even private shops, hotels, restaurants etc. too sell Amul products.

this “Amul Model” eliminates middlemen and directly engages farmer with the processor (dairy)These cooperatives form part of a national milk grid which links the milk producers throughout India with consumers in more than700 towns and cities

here is one more supply chain diagram: click to enlarge

Cooperative sector limitations

ReachWhile dairy Cooperatives have played an important role in Indian milk industry’s development, but still dairycooperatives reach barely ~20% of the Indian farmers.

Competition

Dairy cooperatives face increasing competition from private dairies: both in procurement + retailing of milk.Private players are more agile, offering better incentives to farmers compared to the cooperative.Even the largest Indian dairy player (Amul)’s annual turnover is quite lower than a large MNC dairy companylike Nestle.

Management

Dairy cooperatives are subject to state laws /regulations. But often, the elections in dairy cooperatives are wonusing money and caste equations.When such fraudsters get key positions in the dairy board, all they care is how to recover their ‘investment’ bytaking bribes in appoint of dairy staff=> inefficiency + lack of new initiatives.Hence, State governments need to make these dairy cooperatives more accountable, democratic andprofessional in their functioning.

Downstream issues

#1: MRP and adulteration

WPI for Milk product= more than 190 (for 2012)Meaning there is 90% increase in the wholesale price of Milk, compared to base year 2004.This type of killer price rise=> has led to adulteration, fake milk from urea, Nakli-Maawaa etc. once in a while, you’ve seenreports about this, particularly in Delhi-UP region.Such fake milk products are extremely hazardous to health.In long term, they’ll destroy India’s name in foreign market, just like Chinese milk products lost business internationally, afternews reports of Melamine adulteration in 2008.

Synthetic Milk

Synthetic milk is prepared by mixing urea, caustic soda, refined oil (cheap cooking oil) and common detergents.

INGREDIENT Why added in synthetic milk?

REFINEDOIL

As a substitute for milk fat.

DETERGENT

Detergent acts as an “emulsifying agent”. Meaning it helps above refined oil to get mixed in water and give afrothy white solution that looks like milk.Even in legit (real) milk, the traces of detergent are found because farmers and dairy staff use cheapdetergents to clean vessels, buckets etc. but don’t thoroughly wash them.

CAUSTIC To neutralize the acidic PH of other ingredients and thus prevents fake-milk from turning sour during transport.

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SODA

UREATo increase solid-not-fat (SNF) content.Higher the SNF=better the milk-quality, fetches more price when sold to dairy.it also increases viscosity (thickness) of the liquid so you feel you’ve bought ‘premium’ quality milk .

STARCH Prevents curdling in fake-milk.

Heath hazards of Synthetic milk: damages kidney, heart problems, cancer and even death

National Survey on Milk Adulteration 2011

Was conducted by FSSAI. click me to learn more about FSSAIBihar, Chhattisgarh, Odisha, West Bengal, Mizoram, Jharkhand and Daman & Diu= their milk failed in all tests.only Goa and Puducherry’s milk passed all the test.~70% of Indian milk doesn’t meet the standards set by set by the Food Safety and Standards Authority of India (FSSAI)

Last year, Union government quoted t̂his report, while filling affidavit in SC about milk adulteration. Union also said that it Is stategovernment’s responsibility to act on milk adulteration problem. Later SC asked state governments to file affidavit about what actionthey’ve taken.

#2: Ethnic products: untapped potential

Examples of ethnic milk products: Paneer, Rasogolla, Sandesh, Pantua, Rasomalai, Cham, Rajbhog, Kulfi, Rabri, Basundi, Burfi,peda, Gulabjamun, Kalakand, Dahi, Mishti Doi, Lassi, Chhach / Mattha, Srikhand etc.Scope: For ethnic milk products, profit level is ~12-38% of the input cost.

PROBLEM SOLUTION

1. Most of the ethnic milk products are made by local halwaii /sweet shop= unbranded, unorganized. Can’t compete inforeign market. You need to create a brand first to earn therespect and trust of foreign customers.

2. Since this is done on small scale = they use cheap qualitypackaging material, even harmful colors and preservativesused, =Doesn’t meet quality norm in US/EU market.

3. To make Indian ethnic milk products famous like cakes,pastries, pastas and noodles => have to invest a lot inmarketing promotions abroad. Small scale firms can’t do that.

1. Train small manufacturers of ethic dairy products, suchas halwaiis: make them to adopt hygienic practices, usestate / district level bodies, cooperatives, ITI’s can beinvolved in such efforts

2. Catalyze R & D for commercialization of ethnic dairyproducts

3. The Ministry of Food Processing, in conjunction withthe NDDB, needs to undertake generic promotionalcampaigns to enhance the image of Indian ethnic dairy-based products in US/EU markets.

#3: Export issues

Import export of milk products (2012-13) in crore Rs.

export import

>700 >100

Earlier we saw India is located close to the milk deficit countries, but still India hasn’t capitalized on this location advantage due to thefollowing reasons:

1. Low quality and hygiene standards.2. Only ~35% of milk produced in India is processed. Rest is sold by local doodhwalla= not enough milk available for export.3. Domestic consumption of milk has increased => less surplus left for exports4. Lack of experience in marketing products in international markets, particularly for ethnic milk products.5. Low productivity and quality are the key reasons due to which processors in India, are not able to achieve the scale of operations

of their counterparts in New Zealand or Australia.

Ban

2011Export of milk powders (Skimmed Milk Powders, Whole Milk Powders, Dairy Whitener, Infant Milk Foods etc.), Caseinand Casein Derivative was prohibited

2012 ban lifted, these milk/casein products export given under Vishesh Krishi and Gram Udyog Yojana(VKGUY)

Fonterra crisis

New Zealand = one of the biggest dairy exporter of the world.Fonterra= New Zealand’s biggest dairy company2013: News report came that Fonterra’s milk powder could have been contaminated with the Clostridium bacteria. It can causefatal botulism.After this news report, China and Sri Lanka banned Fonterra’s products.Fonterra CEO says: it was a false alarm, the bacteria variety found in our milk powder is not capable of causing botulism, butnonetheless we have recalled all the batches exported. So don’t worry

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Anyways, all this negative publicity and banning of New Zealand dairy products= gives opportunity for Amul to tap those exportmarkets.

#4: Tax on inputs

In earlier times, dairy industry had been subjected to octroi and sales tax etc. creating a non-level playing field with theunorganized sector.There had been high level of taxation on dairy equipment and machinery (excise, sales tax, octroi) Even the excise duty onpolyethylene film, aseptic packaging machines, milk vending machines, pouch filling machines, used in packing and distribution.This has hampered the growth of dairy industry. Although nowadays, taxes on most of these items have been reduced /abolished.Necessary Reform: Speedy implementation of GST.

Enough of supply chain, let’s look at some allied topics: NDDB, Operation Flood, Government schemes related to dairy sector.

NDDB

National Dairy Development BoardStatutory body (1965)apex organization of dairy cooperatives in the countryChairman: Amrita PatelHQ: Anand, Gujarat

2013: NDDB been in news because

AWARD

NDDB has Won Indira Gandhi Rajbhasha Award for the financial year 2011-12. (But declared in 2013).Rajbhasha awards are presented to institutions for outstanding achievements in the use of Hindilanguage to ministries/departments, banks and financial institutions, public sector undertakings andemployees.

CHAIRMAN(PERSON INNEWS)

Dr. Amrita Patel: Chairman National Dairy Development Board.Recently decided to resign.(although Mohan wanted her to continue).After Vergese Kurien, the father of white revolution, she has been managing NDDB.

Operation Flood

1965 NDDB setup.

1970 NDDB launches Operation flood.

1996 The End of Operation flood.

Operation flood had three objectives:

1. Increase milk production (“a flood of milk”)2. Increase farmers’ income.3. Reasonable milk prices for consumers

Op.Flood setup following hierarchy of dairy cooperatives

LEVEL Org.

VILLAGE Primary Village Cooperative Society

DISTRICT District Union

STATE State Federations

NATIONAL NDDB

Operation flood worked in three phases from 1970 to 1996:

PHASE-1

Setup dairy cooperatives in 10 states and link them with four metropolitan cities:Mumbai, Delhi, Kolkata and Chennai.Finance: by the sale of skimmed milk powder and butter oil gifted by the EuropeanUnion

PHASE-2

Karnataka, Rajasthan, MPConnected more than 40,000 villages and 4 million farmers in the dairy cooperativeumbrella.finance: by World bank loan

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PHASE-3

To consolidate the gains made from previous phases.Vaccination, Breeding research, artificial insemination, farmers’ training etc.The end: 1996

Result of Operation Flood

Made India the largest Milk producer of the world.Imports of milk solids ended. Our milk requirements now met through desi-dairies. (Otherwise imagine, if we were still relying on“imported” milk, like imported crude oil – than what will be the current account deficit and rupee’s downfall!)

CONSUMEREMPOWERMENT

1. Per capita milk availability increased.2. Reduced the regional imbalance in milk availability.3. Reduced the seasonal variation in milk prices.

ECONOMICEMPOWERMENT

4. Farmers connected in cooperative dairy grid=no exploitation, increased income.5. Village dairy cooperatives= less nuisance than APMC / food grain middlemen.

SOCIALEMPOWERMENT

6. Milk production doesn’t require much land. Even landless poor can participate.7. Village Milk Cooperatives bypassed the feudal power structure associated with cropping/foodgrains

in villages. It covered farmers from all castes and religion.8. In that way, operation flood was more successful in Social empowerment than land reforms and

Panchayati raj.

WOMENEMPOWERMENT

9. Many women dairy cooperatives were setup. (Particularly during and after phase III)10. Women became direct members and office bearers of such cooperatives and started earning.11. You may have seen in the latest Amul ad “Maari bairi sethani thai gayi che”: translated “my wife has

become a Sethani” (thanks to dairy income from Amul.)

Government Schemes

(Although given in previous article, but copy pasting again for the sake of continuity during reading-revision)

Department of Animal Husbandry, Dairying & Fisheries

They run following schemes:

1. install Bulk Milk Coolers at village level close to the area of milk production2. for installation of bulk milk cooler

Intensive Dairy Development Scheme(IDDS)

100 per cent grants in aid given to provided to Dairy MilkUnions/Federations:for Dairy processing and marketingfor milk equipment for bulk milk coolers, chilling centers, refrigerated tankersand cold storagefor developing dairy infrastructure at the village and district level.

Dairy Entrepreneurship DevelopmentScheme (DEDS)

to encourage entrepreneurs in setting up modern dairy infrastructure for cleanmilk productionhelps in bulk milk coolers, transportation facilities including refrigerated vans,cold storage facility

fodderCentrally Sponsored Fodder and Feed Development Scheme (CSFFDS)with help of state governments

clean milk

Official name: “Strengthening Infrastructure for Quality & Clean MilkProduction”trains of farmers on good milking practicesFund to setup Bulk Milk Cooler (BMC) @village level.fund to setup laboratories for testing of milk

National Dairy Plan (NDP)

By National dairy development board (NDDB), with support from International Development Association (IDA)

Phase-1 (2012-17) was launched at Anand, Gujarat.Scheme will run in 14 states – Uttar Pradesh, Punjab, Haryana, Gujarat, Rajasthan, Madhya Pradesh, Bihar, West Bengal,Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Orissa and Kerala.^These states collectively account for over 90% of country’s milk production.

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National Dairy plan will do following:

1. Breed improvement + animal nutrition=> increase milk production, reduce methane emission.2. Strengthen of village based milk procurement system= Rural milk producers to get greater access to the organized dairy sector.3. Use of ICT technology: Internet Based Dairy Information System (i-DIS), Data warehousing System along with Business

Intelligence tool etc.4. HRD, management, knowledge sharing, R&D and other fancy stuff

Funding pattern

ca$h comes from1. International Development Association (IDA) of the World Bank2. Central government (Department of Animal Husbandry, Dairying and Fisheries)

to NDDB: National Dairy Development Board (a statutory body)

ultimately to

End Implementing Agencies (EIAs):

State GovernmentCooperative dairy federationsMilk Producers UnionsICAR institutes, and veterinary/dairy institutes and universities

Mock Questions

MCQs

1. Correct Statements about Foot and mouth disease(FMD)a. It is caused by brucellosis bacteriab. Wild animals are immune to FMDc. FMD is usually lethal to Adult buffalod. None of above

2. Incorrect Statement about Foot and Mouth disease (FMD)a. Pigs are considered amplifying hosts for FMDb. Pigs themselves are immune to FMDc. Bothd. None

3. Find odd terma. Sahiwalb. Murrahc. Gird. Kankrej

4. Correct statement about Azolla ferna. It is a weed that negatively affects paddy cultivation.b. If Azolla fern is mixed with fodder, it improves the health of cattle.c. bothd. none

5. Why is caustic soda used in manufacturing of synthetic milk?a. To act as an emulsifying agent and give frothy appearance to the liquid.b. To neutralize the acidity of other ingredients and stops milk from turning sourc. To increase the milk fat contentd. None of above

6. Correct statements about National Dairy plana. It’ll be uniformly applied to all 28 states of India, in its first phase.b. International Development Association will finance part of this project.c. Bothd. None

Descriptive

2m1. NDDB2. Intensive Dairy Development Scheme (IDDS)3. Dairy Entrepreneurship Development Scheme (DEDS)

12m1. Write a note on NDDB and its contribution in white revolution.2. National Dairy Plan (NDP) is a scientifically planned multi-state initiative to improve milch animal productivity. Comment3. Write a note on the functions of Department of Animal Husbandry, Dairying and Fisheries.

25m1. The destruction of India’s village system was the greatest of England’s blunders.2. Government initiatives to boost the milk productivity in India.

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3. Dairy cooperatives have played an important role in the women empowerment and social transformation of rural India.Comment

4. Write a note on the upstream and downstream issues in the dairy sector of India.Essay (200m)

1. Education remains the key to both economic and political empowerment.2. There is more potential for economic growth in rural India than at any time in decades.3. The Internet is becoming the town square for the global village of tomorrow.4. Emigration, forced or chosen, is the quintessential experience of our time.5. The notion of the world as a village is becoming a reality.6. A nation that continues year after year to spend more money on military defense than on programs of social uplift is

approaching spiritual doom.

Previous Posts

[Food Processing] Supply Chain Management, Upstream Downstream requirements

for Fruit & Vegetables, Confectionery industries

[Agro/Food Processing] Export, Dumping, FDI, Finance, Taxation, Budget Provisions,

CODEX, NWR, BRGF, RKVY

[Food Processing] Nuisance of APMC Acts, Commission Agents; Marketing of

agricultural produce: issues and constrains for GS Mains

[Food Processing] Mega Food parks, Agri-Export Zones(AEZ), Cold Chains and

truckload of government schemes

[Food Processing] Introduction, Scope, Significance, Awesomeness (hardly),

Obstacles (truckload of) for GS Mains

[Economic Survey Ch13] Human Development (Part 4 of 4): Physically Disabled, Elderly, Nomadic, Denotified Tribes, Drug

junkies and Beggars

[Economic Survey Ch13] Human Development (Part 3 of 4): Women and Child Development, Saksham, Priyadarshini,

Dhanlaxmi & yes ofcourse SABLA

[Economic Survey Ch13] Human Development (Part 2 of 4): SC, ST, OBC, Minorities: welfare schemes, 12th FYP targets

[Economic Survey Ch13] Human Development (Part 1 of 4): HDI-2012, HDR-2013, Poverty lines, Aajeevika, Tendulkar,

Sreesanth, Saxena, Sengupta

[Economic Survey Ch12] Sustainable Development, Climate Change (Part 3 of 3): PAT, RPO, REC, Cap-n-trade

13 comments to [Food Processing] Milk Dairy Sector, Supply Chain, upstream downstream issues,

Amul Model, Operation Flood

AdityaReply to this comment

awesome work

ZINGReply to this comment

MCQ answers (subject to correction)

1.d2.b3.b4.b5.b6.b

raviReply to this comment

so nice work sir

Uday Kumar JhaReply to this comment

Thanks a ton Mrunal, Just waiting for this piece!!! Thanks for your old articles too!

lalith kumarReply to this comment

hi sir will dis food processing topic will help in appsc i.e state pub service exam in science n techh paper..?

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Verderair Pure diaphragm pumps, one piece solid make:Pure PTFE -PE

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Page 13: [Food Processing] Milk Dairy Sector, Supply Chain, Upstream Downstream Issues, Amul Model, Operation Flood « Mrunal

9/20/13 [Food Processing] Milk Dairy Sector, Supply Chain, upstream downstream issues, Amul Model, Operation Flood « Mrunal

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sujeetReply to this comment

Nice one bro !!

MehulReply to this comment

hi all,regarding the essay question “There is more potential for economic growth in rural India than at any time in decades.”what points could be included in this? can we disagree with the title of such essay?

AnilReply to this comment

National Son-in-law encroaching land.. very goog hahaha..

PRReply to this comment

Can anybody tell me how will be the CPT test for FCI gradeIII, the sort of questions?????????

SAMReply to this comment

hello mrunal,can anyone tell me what all comes in the investment model…(GS 3)

jude_lucyReply to this comment

i wonder where is “Manu Jha”?!

GUHAReply to this comment

HIE MRUNAL

I JUST WANTED TO INQUIRE ABOUT NICL AO EXAM HELD ON 8TH SEP 2013:

1= WHAT ARE THE SALARIES AND PERKS OF THESE OFFICERS2= WHAT IS THE LEVELS OF HIERARCHY IN THE ORGANISATION3= IS THERE ANY FOREIGN EXPOSURE IN THE ORG.4= CAN WE PREPARE FOR CIVIL SERVICE IF WE JOIN IT.5= IS IT BETTER THAN SBI PO6= PLEASE ELABORATE SOME PROS AND CONS OF JOINING THE ORG…

PLEASE ANSWER ALL THE QUESTIONS POINT WISE

THANK YOU

sushmaReply to this comment

thank u very much.. we need articles about ethics paper..