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- Mrunal - http://mrunal.org -
[Food Processing] Milk Dairy Sector, Supply Chain,upstream downstream issues, Amul Model, Operation
Flood
Posted By On 19/09/2013 @ 2:47 pm In Economy | 37 Comments
1. Prologue
2. Scope-Significance of Dairy Sector
3. Location: Dairy cooperatives
4. Milk Supply Chain: Upstream Issues1. Low productivity of milch animals
2. #1: Veterinary problems
3. #2: Breeding issues
4. #3: Fodderproblems
5. Azolla fern
6. Milk Quality
5. Milk Supply Chain: Processing Issues
1. Regional imbalance2. Anand/Amul Model/dairy cooperative model
3. Amul Supply Chain
4. Cooperative sector limitations
6. Milk Supply Chain: Downstream Issues
1. #1: MRP and adulteration
2. Synthetic Milk
3. #2: Ethnic products: untapped potential
4. #3: Export issues5. Fonterra crisis
6. #4: Tax on inputs
7. NDDB
8. Operation Flood
9. Government Schemes
10. National Dairy Plan (NDP)
11. Mock Questions on Milk Supply Chain Management
Prologue
First, regarding Write Articles, Win Books competition: so far 34
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entries received. And last date to submit is 25thSept 2013. Click me 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 saw following
topics
1. Food processing industry: Awesomeness and Obstacles
2. Food processing industry: Truckload of Government Schemes and bodies
3. Marketing of agricultural produce: issues and constrains, Nuisance of APMC Acts
and Commission Agents
4. Agro/Food Processing: Export, Dumping, FDI, Finance, Taxation, Budget
Provisions, CODEX, NWR, BRGF, RKVY
5. 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 keys etc.)
Anyways, back to where we had left in [Food processing]: fruits veggies
SCM-updream downstream. Now time for Dairy & Milk Supply Chain
Management SCM-upstream downstream issues.
UPSC syllabus topic in this
article
prelims Paper I
Chemistry:
components
of synthetic
milk
Agro-tech:
azolla fern.
Biology:Food and
Mouth
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 developedand developing countries on Indias interests,
How the Fonterracrisis will help
Indian dairy biz.
(GS3) economics of animal-rearingLot fodder
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material.
(GS3) Food processing and related industries in
India-scope and significance, location, upstream
and downstream requirements, supply chain
management.
for Milk/Dairy
business.
Next time well see [Food processing] meat, poultry and fisheries.
Scope-Significance of Dairy Sector
HIGHEST
PRODUCTION
Top five Milk producers (World)
1. India
2. United States of America
3. China
4. Pakistan (as per NDDB, but Im bafflednonetheless.)
5. Russian Federation
LARGEST
POPULATION
India has the worlds largest livestock
population
half the world population of buffaloes
1/6th of the world goat population
CONTRIBUTION
TO GDP
Livestock sector (milk, meat, eggs) contributes 3.6%
of GDP. (2010s data)
Availability
Per 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 Consumers
more details under operation flood
India has proximity to milk deficit countries e.g.
1. Bangladesh
2. Indonesia
3. Malaysia
4. Philippines
5. South
6. Korea
7. Sri-Lanka
8. Thailand
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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 AmulGujarat Cooperative Milk
Marketing Federation (GCMMF)
ANDHRA Vijaya
Andhra Pradesh Dairy
Development Cooperative
Federation (APDDCF)
KARNATAKA NandiniKarnataka Cooperative Milk
Producers Federation (KMF)
MAHARASHTRA
Mahanand, Gokul,
Dhawal, Dudh
Pandri
Maharashtra Rajya Sahakari
Maryadit Dugdh Mahasangh
(Mahasangh)
PUNJAB VerkaPunjab 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 Indias total milkproduction. Ironically, only one percent is procured by co-operatives,
remaining milk goes to private-dairy players, who exploit farmers, and
do adulteration.
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Ranking: Top Five States
NO. COWS N
BUFFALOS
MILK
PRODUCTION
PER CAPITA MILK
AVAILABILITY
1. Uttar Pradesh
2. Madhya
Pradesh
3. Rajasthan4. Andhra
Pradesh
5. Maharashtra
1. Uttar Pradesh
2. Rajasthan
3. Andhra
Pradesh
4. Punjab
5. Gujarat
1. Punjab
2. Haryana
3. Rajasthan4. Himachal Pradesh
5. 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.
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For these reasons, you can see how MP is in top-5, for number of cows
and buffalos BUT still MP doesnt figure in top-5 in milk production due
to fodder shortage. (Rankings taken from NDDB website)
Milk Supply Chain: 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 worlds largest cow population, but the average productivity of
Indian cows is among the lowest in the world. WHY?
1. Veterinary service problems
2. Breeding problems
3. Fodder problems
Lets see them one by one:
#1: Veterinary problems
1. Manpower
To support health programmes for the
massive livestock population, we need more
than 60000 veterinary doctors in the rural
areas. (right now we only have ~25000)
Need to strengthen the mobile veterinary
services to ensure door-step veterinary
support, particularly in inaccessible areas.Veterinary hospitals, dispensaries are
inadequate in rural areas.
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)Itll link taluka, Block, District and State
Headquarters to a Central Disease Reporting
and Monitoring Unit at the Department of
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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. lets 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 Asia
FMD 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 closely
together.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
days of 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= they
ban 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 of FMD, with
help of State government.
#2: Breeding issues
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CLIMATE
The cattle from temperate region have higher milk
production. (e.g. Denmark)
But India: tropical, sub-tropical, hot-humid type
climate
So even when we import foreign cattle breeds, they
give less milk because of climatic factor.
BREEDING
RESEARCH
Present breeding strategy focuses on high yielding
cows/buffalos rather than developing breeds that
are tolerant to adverse climate/fodder conditions.
Crossbred animals are sent to areas poor in feed
resources=they dont survive/dont produce
optimum amount of milk.
Limited availability of quality breeding bulls and
semen.
Notable
breeds
Cow: Sahiwal, Gir, Rathi and Kankrej
Buffalo: 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 Indian
cattle 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
yields
2. 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 intop 5 for milk production
4. While the number of livestock is increasing, the grazing lands are
diminishing, because
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Real-estate mafias and National Son-in-law encroaching on
such land
Farmers 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.
Solutions?
FODDER
BANKS
to procure surplus fodder from the farmers in
areas with good rainfall / irrigation.
Convert this fodder into silage or fodder blocks
for storage
Supply this packed fodder to the deficient areas.
FOREST
the degraded forest areas, mostly under the Joint
Forest Management Committees (JFMCs), can beused for 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 ^this purpose.
AZOLLA
PRODUCTION
to improve quality of nutrition for the livestockLets see Azolla in detail, for UPSC is nowadays
obsessed with asking minimum one MCQ from
some random 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.
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Grows in paddy fields or shallow water bodies.
Benefits of Azolla fern?
FOR
CROPPING
Azolla is a Nitrogen fixing fern= aids in the growth of
rice.
Azolla reduces evaporation from water surface andincreases water use efficiency in rice.
Suppresses the weed growth.
FOR
LIVESTOCK
FEED
Azolla has 50-60% protein on dry weight basis, rich
in almost all essential amino acids, vitamin A,
vitamin B-complex and minerals
Livestock easily digest it.
Dry Azolla can be mixed with other fodder, or can begiven 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:
Factors affecting quality of Milk Supply
1. BOGUS
INFRASTRUCTURE
1. lack of all-weather roads in many
villages
2. Electrical problems in rural areas=
cooling centers dont work 24/7 basis.
3. lack of potable water and supplysewage disposal => animals kept in
unhygienic condition=milk gets
contaminated.
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.
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2. BOGUS
HANDLING
3. Careless attitude of cooperative-staff.
They dont 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 for
getting 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 milk
5. Supply of Hygiene Kits+ Training to DCS staff. Impose penalty if
they dont comply with the standards.
6. Less manual handling, use more machines: Bucket Milkingmachines, Feed racks, water bowls and partitions etc.
Milk Supply Chain: Processing Issues
A typical supply chain of milk sector:
Regional imbalance
Bulk of new capacity in the period in last decade, has beenestablished 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
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working days in a year). Due to Lack of milk availability in the lean
season.
For e.g. Rajasthan has 8% share in milk production and 11% share
in consumption of milk products, however the share in dairy
processing capacity is 4%. Meaning much of the milk escapes from
the value-addition in dairy supply chain. A similar situation
prevails in Bihar.
Anand/Amul Model/dairy cooperative model
1946
Sardar Patel encourage the farmers of Anand region in Gujarat,
to form their own milk cooperative, to protect themselves from
exploitation from private milk traders
1965
National Dairy development board setup @Anand, to replicate
the dairy cooperative model throughout country.
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(PM Lal Bahadur Shashtri)
1971 Gujarat Cooperative Milk marketing federation setup (GCMMF)
1974GCMMF 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.
theyre equipped with Automatic milk collection
unit (AMCUS): computer analyses fat content ofmilk, automatic printing of receipts etc.
DISTRICT
MARKETING
COOP.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.
They manufacture 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 Dairy
Surendranagar District Co =Sursagar Dairy.
They can sell their products under the brand
name Amul as long as they meet therequirements of GCMMF. (e.g. must collect 30,000
litres milk daily for a period of three years)
STATE MILK
COOP.
FEDERATION
The main boss is Gujarat Cooperative Milk
marketing federation (GCMMF).
All of above district cooperative unions (Banas,
Madhur, Sumul Sursagar) etc. fall under GCMMFumbrella.
Amul has more than 5000 outlets of own- at high
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RETAIL
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 than
700 towns and cities
here is one more supply chain diagram: click to enlarge
Cooperative sector limitations
Reach
While dairy Cooperatives have played an
important role in Indian milk industrys
development, but still dairy cooperatives 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 thecooperative.
Even the largest Indian dairy player (Amul)s
annual turnover is quite lower than a large MNC
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dairy company like Nestle.
Management
Dairy cooperatives are subject to state laws
/regulations. But often, the elections in dairy
cooperatives are won using money and caste
equations.When such fraudsters get key positions in the
dairy board, all they care is how to recover their
investment by taking bribes in appoint of dairy
staff=> inefficiency + lack of new initiatives.
Hence, State governments need to make these
dairy cooperatives more accountable, democratic
and professional in their functioning.
Milk Supply Chain: 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, youve seen reports
about this, particularly in Delhi-UP region.
Such fake milk products are extremely hazardous to health.
In long term, theyll destroy Indias name in foreign market, just like
Chinese milk products lost business internationally, after news
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.
Ingredients of Synethic/artificial milk
INGREDIENT Why added in synthetic milk?
REFINED
OILAs a substitute for milk fat.
Detergent acts as an emulsifying agent. Meaning
it helps above refined oil to get mixed in water and
give a frothy white solution that looks like milk.
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DETERGENT Even in legit (real) milk, the traces of detergent are
found because farmers and dairy staff use cheap
detergents to clean vessels, buckets etc. but dont
thoroughly wash them.
CAUSTICSODA
To neutralize the acidic PH of other ingredients and
thus prevents fake-milk from turning sour duringtransport.
UREA
To 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 youve 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 FSSAI
Bihar, Chhattisgarh, Odisha, West Bengal, Mizoram, Jharkhand andDaman & Diu= their milk failed in all tests.
only Goa and Puducherrys milk passed all the test.
~70% of Indian milk doesnt meet the standards set by set by the
Food Safety and Standards Authority of India (FSSAI)
Last year, Union government quoted ^this report, while filling affidavit
in SC about milk adulteration. Union also said that it Is state
governments responsibility to act on milk adulteration problem. LaterSC asked state governments to file affidavit about what action theyve
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.
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PROBLEM SOLUTION
1. Most of the ethnic milk
products are made by local
halwaii / sweet shop=
unbranded, unorganized. Cant
compete in foreign market.You need to create a brand
first to earn the respect and
trust of foreign customers.
2. Since this is done on small
scale = they use cheap quality
packaging material, even
harmful colors and
preservatives used, =Doesntmeet 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 in
marketing promotions abroad.
Small scale firms cant do that.
1. Train small manufacturers
of ethic dairy products,
such as halwaiis: make
them to adopt hygienicpractices, use state /
district level bodies,
cooperatives, ITIs can be
involved in such efforts
2. Catalyze R & D for
commercialization of ethnic
dairy products
3. The Ministry of FoodProcessing, in conjunction
with the NDDB, needs to
undertake generic
promotional campaigns 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.
exportimport
>700 >100
Earlier we saw India is located close to the milk deficit countries, but still
India hasnt capitalized on this location advantage due to the following
reasons:
1. Low quality and hygiene standards.
2. Only ~35% of milk produced in India is processed. Rest is sold bylocal doodhwalla= not enough milk available for export.
3. Domestic consumption of milk has increased => less surplus left
for exports
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4. 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
2011
Export of milk powders (Skimmed Milk Powders, Whole Milk
Powders, Dairy Whitener, Infant Milk Foods etc.), Casein and
Casein Derivative was prohibited
2012ban 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 Zealands biggest dairy company
2013: News report came that Fonterras milk powder could have
been contaminated with the Clostridium bacteria. It can cause fatal
botulism.
After this news report, China and Sri Lanka banned Fonterras
products.
Fonterra CEO says: it was a false alarm, the bacteria variety found
in our milk powder is not capable of causing botulism, but
nonetheless we have recalled all the batches exported. So dont
worry
Anyways, all this negative publicity and banning of New Zealand dairy
products= gives opportunity for Amul to tap those export markets.
#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 the
unorganized sector.
There had been high level of taxation on dairy equipment and
machinery (excise, sales tax, octroi) Even the excise duty on
polyethylene film, aseptic packaging machines, milk vending
machines, pouch filling machines, used in packing and distribution.
This has hampered the growth of dairy industry. Althoughnowadays, taxes on most of these items have been reduced /
abolished.
Necessary Reform: Speedy implementation of GST.
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Enough of supply chain, lets look at some allied topics: NDDB,
Operation Flood, Government schemes related to dairy sector.
NDDB
National Dairy Development Board
Statutory body (1965)apex organization of dairy cooperatives in the country
Chairman: Amrita Patel
HQ: 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 Hindi
language to ministries/departments, banks and
financial institutions, public sector undertakings and
employees.
CHAIRMAN
(PERSON
IN NEWS)
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
Timeline of 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
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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 European Union
PHASE-
2
Karnataka, Rajasthan, MP
Connected more than 40,000 villages and 4 million
farmers in the dairy cooperative umbrella.
finance: by World bank loan
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 onimported milk, like imported crude oil than what will be the
current account deficit and rupees downfall!)
How Dairy cooperatives lead to EMPOWERMENT?
CONSUMER
EMPOWERMENT
1. Per capita milk availability increased.
2. Reduced the regional imbalance in milk
availability.
3. Reduced the seasonal variation in milk prices.
4. Farmers connected in cooperative dairy
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ECONOMIC
EMPOWERMENT
grid=no exploitation, increased income.
5. Village dairy cooperatives= less nuisance than
APMC / food grain middlemen.
SOCIAL
EMPOWERMENT
6. Milk production doesnt 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.
WOMEN
EMPOWERMENT
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 todairy 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
production
2. for installation of bulk milk cooler
Intensive Dairy
100 per cent grants in aid given toprovided to Dairy Milk
Unions/Federations:
for Dairy processing and marketing
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Development Scheme
(IDDS)
for milk equipment for bulk milk
coolers, chilling centers, refrigerated
tankers and cold storage
for developing dairy infrastructure at
the village and district level.
Dairy
Entrepreneurship
Development Scheme
(DEDS)
to encourage entrepreneurs in setting
up modern dairy infrastructure for
clean milk production
helps in bulk milk coolers,
transportation facilities including
refrigerated vans, cold storage facility
fodderCentrally Sponsored Fodder and FeedDevelopment Scheme (CSFFDS)
with help of state governments
clean milk
Official name: Strengthening
Infrastructure for Quality & Clean Milk
Production
trains of farmers on good milkingpractices
Fund 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 countrys 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
from
1. International Development Association (IDA) of the
World Bank2. Central government (Department of Animal
Husbandry, Dairying and Fisheries)
toNDDB: National Dairy Development Board (a statutory
body)
ultimately
to
End Implementing Agencies (EIAs):
State GovernmentCooperative dairy federations
Milk Producers Unions
ICAR institutes, and veterinary/dairy institutes and
universities
Mock Questions on Milk Supply Chain Management
MCQs
1. Correct Statements about Foot and mouth disease(FMD)
a. It is caused by brucellosis bacteria
b. Wild animals are immune to FMD
c. FMD is usually lethal to Adult buffalo
d. None of above
2. Incorrect Statement about Foot and Mouth disease (FMD)
a. Pigs are considered amplifying hosts for FMD
b. Pigs themselves are immune to FMD
c. Both
d. None
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3. Find odd term
a. Sahiwal
b. Murrah
c. Gir
d. Kankrej
4. Correct statement about Azolla fern
a. It is a weed that negatively affects paddy cultivation.b. If Azolla fern is mixed with fodder, it improves the health of
cattle.
c. both
d. 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 milkfrom turning sour
c. To increase the milk fat content
d. None of above
6. Correct statements about National Dairy plan
a. Itll be uniformly applied to all 28 states of India, in its first
phase.
b. International Development Association will finance part of
this project.c. Both
d. None
Descriptive
2m
1. NDDB
2. Intensive Dairy Development Scheme (IDDS)
3. Dairy Entrepreneurship Development Scheme (DEDS)
12m
1. 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.
Comment
3. Write a note on the functions of Department of Animal
Husbandry, Dairying and Fisheries.25m
1. The destruction of Indias village system was the greatest of
Englands blunders.
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2. Government initiatives to boost the milk productivity in India.
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 Milk Supply Chain:
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.
Article printed from Mrunal: http://mrunal.org
URL to article: http://mrunal.org/2013/09/food-processing-milk-dairy-
sector-supply-chain-upstream-downstream-issues-amul-model-
operation-flood.html
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