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Analysis of Milk Industry
1.1
INTRODUCTION TO THE DAIRY
REVOLUTION
It was in 1904 when the seed of cooperation was sown in India with the
passage of first Cooperative Act. Since then, the cooperative movement has
made rapid strides in all fields of socio-economic activities. In the fields of
agriculture credit, fertilizer disbursement, sugar production, handloom, etc,
the cooperatives have created a strong niche. However, the contribution of
cooperatives to India’s dairy industry is enormous. The cooperatives have
ushered in milk revolution in the country.
The highest milk producer in the entire globe – India boasts of that status.
India is otherwise known as the ‘Oyster’ of the global dairy industry, with
opportunities galore to the entrepreneurs globally. Anyone might want to
capitalize on the largest and fastest growing milk and mil products' market.
The dairy industry in India has been witnessing rapid growth. The
liberalized economy provides more opportunities for MNCs and foreign
investors to release the full potential of this industry. The main aim of the
Indian dairy industry is only to better manage the national resources to
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enhance milk production and upgrade milk processing using innovative
technologies
Traditionally, in India dairying has been a rural cottage industry. Semi-
commercial dairying started with the establishment of military dairy farms
and co-operative milk unions throughout the country towards the end of the
nineteenth century.
In earlier years, many households owned their own ‘family cow’ or secured
milk from a neighbor who had one. With the increase in urban population
fewer households could afford to keep a cow for private use & moreover
there were other problems also like the high cost of milk production,
problems of sanitation etc. restricted the practice; and gradually the family
cow in the city was eliminated and city cattle were all sent back to the rural
areas.
Gradually farmers living near the cities took advantage of their proximity to
the cities & began supplying milk to the urban population; this gave rise to
the fluid milk-sheds we see today in every city of our country.
Prior to the 1850s most milk was necessarily produced within a short
distance of the place of consumption because of lack of suitable means of
transportation and refrigeration.
The Indian Dairy Industry has made rapid progress since
Independence. A large number of modern milk plants and product factories
have since been established. These organised dairies have been successfully
engaged in the routine commercial production of pasteurized bottled milk
and various Western and Indian dairy products. With modern knowledge of
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the protection of milk during transportation, it became possible to locate
dairies where land was less expensive and crops could be grown more
economically. In India, the market milk technology may be considered to
have commenced in 1950, with the functioning of the Central Dairy of
Aarey Milk Colony, and milk product technology in 1956 with the
establishment of AMUL Dairy, Anand. Indian dairy sector is still mainly an
unorganised sector as barely 10% of our total milk production undergoes
organised handling.Before the cooperative movement began, the dairy
industry in the Kaira District was being exploited by middlemen who
supplied milk to the consumer. It began as a response to this exploitation and
put a end to it. It grew because it responded to the farmers financially as well
as with services. It has thrived because it is owned by farmers who have a
stake in its success. And because it has been managed by capable
professionals and strengthened by dedicated scientists, technologists and
workers, it has forged ahead. Today in India, there are 75,000 dairy
cooperative societies, spread all over the country with a membership of 10
million. The farmer in the village is now assured of a better future thanks to
these cooperatives. Recently one of the European Embassies in Delhi
requested us for information on the five biggest "companies" in the dairy
business. The first three are in the cooperative sector - The Gujarat
Cooperative Milk Marketing Federation (GCMMF). The Kaira District
Cooperative Milk Producers' Union Limited and The Mehsana District
Cooperative Milk Producers' Union. The Kaira District Cooperative is the
second best in the country. It helped to create GCMMF, the apex body of all
cooperatives in Gujarat.
1.2
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THE BIRTH
In the forties the dairy industry was dominated by one firm -
POLSON. Established by a rather enterprising gentleman who discovered
that Kaira District, of what was then Bombay Presidency, produced a good
deal of milk. He established a creamery and for a while the name Polsons
was synonymous with butter - much as Amul is today.
One of Polson's business was to supply milk to Bombay. As Kaira district
was an abundant source of the commodity, Polson was chosen to procure it
from there. He in turn, entered into an arrangement with a number of
contractors who actually went to the villages and collected the milk.
Everyone was happy. Bombay received reasonably good quality milk and
Polson made a handsome profit. The contractors too managed to earn large
margins by overquoting the farmers. It was only the poor farmers who were
unhappy for it. They invested in the animal feed and fodder and they put in
their labor. Yet, it was they who received the smallest share of the Bombay
consumers' rupee. The arrangement benefited everyone but them
The First step: formation of Kaira union
Realizing that something needed to be done about the unequal balance
of wealth, they turned to Sardar Vallabhbhai Patel for advice. Sardar Patel
knew that their only chance of earning a decent income was when they
themselves gained control over the resources they created. He also knew that
the cooperatives offered them the best chance of gaining that control. So he
advised them to
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stop selling milk to Polson and form a cooperative of their own. In his
opinion they were to own their own dairy unit. He said, "Throw out Polson
and his milk contractors". They followed his advice and the Kaira District
Cooperative Milk Producers' Union (AMUL) was born, in 1946. By good
fortune, they could get as Chairman - Shri Tribhuvandas Patel, an equally
remarkable man. He understood the concept of cooperation and he
understood people. His integrity was absolute. Because the farmers of Kaira
district trusted and respected Tribhuvandas Patel, the cooperative was able to
pass through some very difficult times and eventually become a model of
cooperative dairying throughout the world.
The Kaira Union began with a clear goal, to ensure that its producer
members received the highest possible share of the consumers' rupee. This
goal itself defined their direction. The focus was on production by the
masses, not mass production. By the early 'sixties, the modest experiment in
Kaira had not only become a success, people began to recognize it as such.
Farmers came from all parts of Gujarat to learn. They went back to their own
districts and started their own cooperatives. The result - Together, the district
milk producers unions of Gujarat own the Gujarat Cooperative Milk
Marketing Federation which markets the milk and milk products
manufactured by its owners. Last year the Federation's turnover was over
Rs. 1700 crore making it the largest in the food industry.
In 1964, the then Prime Minister Shri Lal Bahadur Shastri came to
inaugurate a cattle feed factory owned by Amul near Anand. Impressed by
the cooperative's success, he expressed his wish to "transplant the spirit of
Anand in many other places". He wanted the Anand model of dairy
development replicated in other parts of the country. With institutions
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owned by rural producers which were sensitive to their needs and responsive
to their demands, it was an ideal tool for progress. The National Dairy
Development Board was created in 1965 in response to this call.
The next achievement: Operation Flood
In the late sixties, the Board drew up a project called Operation Flood
(OF) - meant to create a flood of milk in India's villages with funds
mobilized from foreign donations. Producers' cooperatives, which sought to
link dairy development with milk marketing, were the central plank of this
project. Operation Flood which started in 1970, concluded its third phase in
1996 and has to its credit these significant results:
The enormous urban market stimulus has led to sustained production
increases, raising per capita availability of milk to nearly 200 grams
per day.
The dependence on commercial imports of milk solids are done away
with.
Modernization and expansion of the dairy industry and its
infrastructure, activating a milk grid.
Marketing expanded to supply hygienic and fair priced milk to some
300 million consumers in 550 cities and towns.
A nationwide network of multi-tier producers' cooperatives, democratic in
structure and professionally managed, has come into existence. Millions of
small producers participate in an economic enterprise and
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Effect on Rural Development
A number of field studies conducted by independent
researchers emphatically confirm the role played by milk cooperatives the
progress of the dairy industry. Millions of small farmers isolated in various
parts of the country have gained the strength to sustain their livelihood. The
cooperatives have provided gainful employment and brought them close to
the market. When cooperative dairying started in Gujarat, the dairy industry
was in the doldrums. Production had stagnated and per capita consumption
was falling. Farmers were at the mercy of the middlemen. Today, with about
100 lakh farmer producers, Indian dairy farmers have been shown the way to
prosperity and health. The ideal conditions for long term growth in
procurement have been created.
Modern technologies in animal breeding and feeding have been
adopted by a significant number of farmers.
Modern consumer processing and marketing facilities have been
created all over the country.
Technical input services including animal insemination, balanced
cattle feed / bypass proteins feed, better fodder varieties and
emergency veterinary health services - have not only helped in
raising and sustaining milk production but have also ensured a better
quality of life in the villages.
Besides creating urban employment in dairy plants, marketing,
transport and distribution, these dairy cooperatives have helped to provide
farmers with a sustainable rural employment program. A majority of the
cooperative members are landless, marginal or small farmers who contribute
their produce of milk at the cooperatives. For these contributors, the income
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derived from milk provides their only regular cash flow, transforming
dairying into an economic activity.
The village cooperative is a clean well lit and orderly place. The villages
have gone through a similar transformation ever since the cooperatives
began to operate. When the people of a village see cleanliness, sanitation,
hard work and discipline in the cooperative. When they know that the
cooperative serves them well. It probably inspires them to bring more of
these qualities into their own lives.
The women members of out dairy cooperatives visit our dairies. They are
shown the mysteries of artificial insemination under a microscope. Does not
their knowledge of conception in animals help them to better understand
their own lives and to begin to control what was simply assumed as a matter
of fate?
When out villages people see a veterinarian cure an animal that would
have otherwise died, they learn about the efficacy of the modern medicine.
When they see their income from milk increase as their animals improve, an
the farmer produces better feeds as they ensure better housing and care, they
learn hope. And they learn that it is not fate that determines their future, but
they can take control of their own destinies. In a nation like ours, democracy
whether it be in Delhi or in State capitals rests on a fragile foundation. We
must underpin that democracy with a plurality of rural institutions that
involves direct control of individuals over matters that have immediate
effect on their own lives. They dairy cooperatives of India are such
institutions.
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Dairy cooperatives are giving a fresh lease of life to farmers in drought-
prone areas. Milk production and unexploitative marketing through the
cooperatives is providing an assured source of income to farmers helping
them sustain themselves against recurring drought. The migrating population
is settling down. About Rs 2,000 crores is being paid to the farmers in their
villages daily -- morning and evening -- which constitutes a large portion of
their income. Operation Flood has, therefore, emerged in India as the largest
rural employment scheme. It has been able to modernize the dairy sector to a
level from where it can take off to meet not only the country's demand for
milk and milk products in the next century but can alsoexploit global market
opportunities. Thereby capitalizing on the inherent production advantages
that India has, provided that the right policy options are exercised to
overcome some already visible signs of market disorder in the post-
liberalization period. Among them are:
Over-capitalization in the private dairy sector
Ineffective enforcement of standards of processing, hygiene and
quality
A near absence of any monitoring mechanism to enforce market
discipline.
These threats need to be countered to protect the long-term interests of
milk producers, their organizations, as well as of the consumer.
When producers have such structures at their command, they have the
means to ensure that the fruits of science and technology reach all those who
benefit. It is only when such structures exist that farmers develop confidence
in getting an assured remunerative price for their produce. This, in turn
stimulates investment in productivity. Further, farmers also demand the
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delivery of services and inputs they need to realize returns on their
investments. Such structures can perhaps educate farmers to the fragile
nature of the environment and the need to conserve it.
One big lesson learnt is that farmers must be respected and trusted. They
may not be educated, or even literate, but they possess common sense and
even wisdom. Frequently, they have shown the ability to rise above narrow
self-interest to act together in pursuit of long-term goals and the common
good
1.3
POTENTIAL FOR INVESTING IN THE DAIRY SECTOR
Some areas of Indian dairy industry can be toned up by the evocation
of differentiated technologies and equipment from overseas.
These include:
Raw milk handling: The raw milk handling needs to be elevated in
terms of physicochemical and microbiological properties of the milk in a
combined manner. The use of clarification and bactofugation in raw milk
processing can aid better the quality of the milk products.
Milk processing: Better operational ratios are required to amend the
yields and abridge wastage, lessen fat/protein losses during processing,
control production costs, save energy and broaden shelf life.The adoption of
GMP (Good Manufacturing Practices) and HACCP (Hazard Analysis
Critical Control Points) would help produce milk products adapting to the
international standards.
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Packaging: Another area that can be improved is the range of packing
machines for the manufacture of butter, cheese and alike. Better packaging
can assist in retaining the nutritive value of products packed and thus
broaden the shelf life. A cold chain distribution system is required for proper
storage and transfer of dairy products.
Value-added products: There's vast scope for value-added products
like desserts, puddings, custards, sauces, mousse, stirred yoghurt, nectars
and sherbets to capture the dairy market in India.
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2.CHAPTER
Analyzing the product - Milk
2.1
Milk- The almost complete food
Milk is not only an excellent source of Calcium, which is vital for strong
bones and teeth; it also contains many other vital nutrients like:
Protein: For growth and repair of body tissues.
Carbohydrates: In the form of lactose.
Fat: For energy.
It also contains Vitamins needed for good health; Vitamin A, B1, B2,
B3, B12, FOLIC ACID and Vitamin D are all found in significant quantities
in milk.
A glass of milk provides 50% of the daily intake of calcium required
by teenagers.
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2.2
India's Milk Product Mix
Fluid Milk 46.0%
Ghee 27.5%
Butter6.5%
Curd 7.0%
Khoa (Partially Dehydrated Condensed Milk) 6.5%
Milk Powders, including IMF 3.5%
Paneer & Chhana (Cottage Cheese) 2.0%
Others, including Cream, Ice Cream 1.0%
Supply:
Supply of milk is affected by the seasonal influences, in summers the milk
supplies dip & in winters it soars. Therefore, dairies generally make use of
the surplus milk available with them during winters for manufacturing milk
powder so that they can meet the increased demand during summers.
Demand:
Demand for milk is not very stable either, during festivals its demand
increases exponentially .In 2003,for example, the demand during festivals
surpassed certain projections & its booth had to encounter a rare problem of
being out of stock, a blot indeed on an otherwise impeccable distribution
system. Since then, to its credit Mother Dairy brought efficiency in the
system & reevaluated its strategy to encounter this problem & to be fair to
them they have lived to the expectations of its consumers by making milk
easily available.
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3.
National Dairy Development Board
The National Dairy Development Board was created to promote,
finance and support producer-owned and controlled organizations. NDDB's
programmes and activities seek to strengthen farmer cooperatives and
support national policies that are favourable to the growth of such
institutions. Fundamental to NDDB's efforts are cooperative principles and
the Anand Pattern of Cooperation.
A commitment to help rural producers help themselves has guided the
Dairy Board's work for more than 30 years. This commitment has been
rewarded with achievements made by cooperative dairies in milk
production, employment generation, per capita availability of milk, foreign
exchange savings and increased farmer incomes.
The National Dairy Development Board (NDDB) has replaced
exploitation with empowerment, convention with modernity, stagnation with
growth and transformed dairying into an instrument for the development of
Indian farmers.
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The National Dairy Development Board was created in 1964 in
response to the Prime Minister Lal Bahadur Shastri's call to "transplant the
spirit of Anand in many other places". He wanted the Anand model of dairy
development - with institutions owned by rural producers, which were
sensitive to their needs and responsive to their demands - replicated in other
parts of the country.
The Board's creation was routed in the conviction that our nation's
socio-economic progress lies largely on the development of rural India.Thus
NDDB's mandate is to promote, finance and support producer-owned and
controlled organizations. NDDB's programmes and activities seek to
strengthen farmer cooperatives and support national policies that are
favourable to the growth of such institutions.
NDDB believes that the Rs 7,000-crore (Rs 70-billion) milk
cooperative market is getting much more competitive and wants to
strengthen the position of cooperatives through a multi-pronged action plan
with an outlay of Rs 800 crore (Rs 8-billion). This includes using MDFL to
enter into 51:49 joint venture companies with state cooperative federations
to assist them with marketing value added products and to help them in other
ways to become self-reliant enterprises.
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4.
Indian Dairy Industry –Facts & Figures
Beginning in organized milk handling was made in India with the
establishment of Military Dairy Farms. Handling of milk in Co-operative
Milk Unions established all over the country on a small scale in the early
stages.Long distance refrigerated rail-transport of milk from Anand to
Bombay since 1945.
Pasteurization and bottling of milk on a large scale for organized
distribution was started at Aarey (1950), Calcutta (Haringhata, 1959), Delhi
(1959), Worli (1961), Madras (1963) etc.
Establishment of Milk Plants under the Five-Year Plans for Dairy
Development all over India. These were taken up with the dual object of
increasing the national level of milk consumption and ensuing better returns
to the primary milk producer. Their main aim was to produce more, better
and cheaper milk.
Milk Production
India's milk production increased from 21.2 million MT in 1968 to
88.1 million MT in 2003-04.
India is the largest producer of Milk in the World (replacing USA)
Per capita availability of milk presently is 231 grams per day, up from
112 grams per day in 1968-69.
India's 3.8 percent annual growth of milk production surpasses the 2
per cent growth in population; the net increase in availability is
around 2 per cent per year.
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Marketing
In 2004-05, average daily cooperative milk marketing stood at 155
lakh litres, registering a growth of 4.2 percent over 148.75 lakh litres in
2003-04.
Dairy Cooperatives now market milk in about 200 class cities
including metros and some 550 smaller towns.
During the last decade, the daily milk supply to each 1,000 urban
consumers has increased from 17.5 to 52.0 litres.
Innovation
Bulk-vending - saving money and the environment.
Milk travels as far as 2,200 kilometers to deficit areas, carried by
innovative rail and road milk tankers.
Ninety-five percent of dairy equipment is produced in India, saving
valuable foreign exchange.
Macro Impact
The annual value of India's milk production amounts to about Rs. 880
billion.
Dairy cooperatives generate employment opportunities for some 12
million farm families.
Dairy Farming is the single largest contributor to the economy(5% of
GDP &13% of employment)
Dairy industry represents a huge opportunity being the largest single
FMCG Market: Urban Mkt size Rs 33000 Crores and organized sector
Rs 11000 Crores representing a huge opportunity for conversion and
growth.
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Key challenges before Indian Dairy Industry are as follows:
• Ensuring Quality
• Procurement and efficiencies in supply chain
• Product differentiation and value addition
Per Capita Monthly Consumption Expenditure on Broad Groups of Items (in Rs.)
NSS Round
Milk and
Milk
Products
Meat,
Egg,
Fish
Total
Food
Total
Non-
Food
Total
Exp.
Average
Size of
Household
25th (1970 - 1971)
Rural 3.03 1.02 25.98 9.33 35.31
Urban 5.01 1.9 34.04 18.81 52.85
27th (1972 - 1973)
Rural 3.22 1.09 32.16 12.01 44.17 5.22
Urban 5.91 2.07 40.84 22.49 63.33 4.72
32nd (1977 - 1978)
Rural 5.29 1.84 44.33 24.56 68.89 5.22
Urban 9.16 3.33 57.67 38.48 96.15 4.89
38th (1982)
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Rural 8.45 3.40 73.73 38.71 112.45 5.20
Urban 15.15 5.92 96.97 67.06 164.03 4.85
42nd(1986 - 1987)
Rural 13.48 5.25 92.55 48.38 140.93 5.26
Urban 23.32 9.25 128.99 93.66 222.65 4.79
43rd(1987 - 1988)
Rural 13.63 5.11 100.82 57.28 158.10 5.08
Urban 23.83 8.85 139.75 110.18 249.93 4.71
44th(1988 - 1989)
Rural 15.65 6.12 111.80 63.30 175.10 5.17
Urban 26.74 10.59 152.49 114.36 266.85 4.87
45th(1989 - 1990)
Rural 18.35 6.84 121.78 67.68 189.46 4.96
Urban 29.53 11.42 165.46 132.54 298 4.66
46th (1990 - 1991)
Rural 19.04 7.08 133.34 68.78 202.12 4.81
Urban 32.37 12.27 185.77 140.00 326.75 4.55
47th (July - Dec. 1991)
Rural 21.90 8.20 153.59 89.91 243.50 5.00
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Urban 37.21 13.49 207.77 162.57 370.34 4.73
48th (Jan. - Dec. 1992)
Rural 23.00 8.00 161.00 87.00 247.00 5.20
Urban 42.00 14.00 224.00 175.00 399.00 4.80
49th(Jan. - June 1993)
Rural 23.00 9.00 159.00 85.00 244.00 5.10
Urban 41.00 14.00 221.00 162.00 382.00 4.60
50th(July 1993 - June 1994)
Rural 27.00 9.40 178.00 104.00 281.00 4.90
Urban 45.00 15.50 250.00 208.00 458.00 4.50
51st (July 1994 ? June 1995)
Rural 27.00 10.00 189.00 121.00 309.00 4.90
Urban 49.00 17.00 271.00 237.00 508.00 4.60
52nd (July 1995 ? June 1996)
Rural 32.38 10.94 207.75 136.53 344.29 5.00
Urban 56.45 19.11 299.98 299.28 599.26 4.60
53rd (Jan-Dec 1997)
Rural 39.31 11.79 231.99 163.02 395.01 5.00
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Urban 62.75 19.58 320.26 325.19 645.44 4.60
54th (Jan-? June 1998)
Rural 36.54 12.65 232.40 149.67 382.07 5.00
Urban 64.63 21.94 339.71 344.57 684.27 4.70
55th (July 1999 ? June 2000)
Rural 42.56 16.14 288.80 197.28 486.07 5.00
Urban 74.18 26.77 410.10 444.10 854.96 5.00
Source : Basic Animal Husbandry Statistics,2004, GOI.
Share of Agriculture and Livestock Sector in GDP
(At current prices in Rs. Billion)
Year GDP
(Total)
GDP (Agriculture) GDP (Livestock Sector)
Rs. % Share Rs. %
Share
1980-81 1,224 425 34.72 59 4.82
1985-86 2,338 700 29.94 139 5.95
1986-87 2,600 744 28.62 156 6.00
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1987-88 2,949 835 28.31 183 6.21
1988-89 3,527 1,041 29.52 217 6.15
1989-90 4,087 1,154 28.24 275 6.73
1990-91 4,778 1,352 28.30 308 6.45
1991-92 5,528 1,593 28.82 375 6.78
1992-93 6,307 1,779 28.21 432 6.85
1993-94 7,813 2,218 28.39 507 6.49
1994-95 9,170 2,552 27.83 577 6.29
1995-96 10,733 2,778 25.88 650 6.06
1996-97 12,435 3,340 26.86 747 6.01
1997-98 13,901 3,535 25.43 819 5.89
1998-99 15,981 4,064 25.43 911 5.70
1999-00 17,618 4,224 23.98 992 5.63
2000-01 19,030 4,235 22.25 1093 5.74
2001-02 20,910 4,730 22.62 1187 5.68
2002-03 22,495 4,560 20.27 1209 5.37
* Provisional; ** Quick Estimate; Source : Central Statistical Organisation,
Dept. of Statistics, GOI
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Dairy cooperatives all over the country are allowing the small dairy farmers
to take initiative in moulding their own destiny. They serve more than 10
million farmers in over 80,000 villages. Here is a list of Dairy Cooperatives
in India, arranged statewise.
Dairy Cooperatives- Progress on Key Parameters during 2003-04 *
States/UT DCS #
(Nos)
Farmer
Members
('000)
Women
Members
('000)
Procurement
(TKGPD) $
Marketing
(TLPD) $
Andhra Pradesh 5072 756 143 950 898
Assam 65 3 0 4 8
Bihar 4657 240 36 396 288
Chhattisgarh 424 19 4 18 28
DELHI 1937
Goa 169 19 3 43 89
Gujarat 11400 2360 540 5102 2101
Haryana 4219 230 30 331 153
Himachal
Pradesh283 21 6 25 15
Jammu &
Kashmir** ** ** **
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Jharkhand 80 2 0 6 163
Karnataka 9293 1737 444 2243 1518
Kerala 3208 706 125 614 738
Madhya Pradesh 4699 231 33 294 296
Maharashtra 18349 1582 366 2680 2629
Nagaland 76 3 0 2 4
Orissa 1654 122 54 127 132
Pondicherry 96 32 14 54 53
Punjab 6892 402 42 745 496
Rajasthan 9643 534 111 1036 855
Sikkim 189 7 0 9 7
Tamil Nadu 7631 1988 717 1664 1206
Tripura 84 4 1 2 9
Uttar Pradesh 18104 824 237 814 436
West Bengal 2287 172 59 324 816
All - India Total 108574 11994 2963 17483 14875
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5
MAHARASHTRA DAIRY COOPERATIVES
5.1
MRSDMM
During Second World War to prevent of malnutrition pregnant ladies
and children due to food shortage, Municipal Corporation of Mumbai started
milk distribution system. Each female used to get half litre of milk. This
scheme was operational till 1946. After that civil supply department was
operating this scheme.
As there were no facilities for boiling the milk, raw milk was supplied
to British soldiers, officers, and employees. They were not used to drink raw
milk which created health problem for them. The cattle sheds of Mumbai
were in unhygienic conditions and rearing/nursing of cattle was done in
unscientific ways. Due to this health problems surfaced in the nearby
locality. To rehabilitate cattle shed of Mumbai in a more scientific way and
P a g e | 26
to encourage clean milk production, in the year 1947, Aarey Milk Colony
was established.
A total of 16,000 buffaloes from Mumbai were shifted in 32 cattle
farms at Aarey Milk Colony. To enable the citizens to get the pasteurized
milk, in the year 1952 Asia’s first dairy at Aarey was established. The head
of Dairy Development Department was the Milk Commissioner. To ensure
the steady progress of Dairying, the Government established Dairy
Development Department in the year 1958. From 1960, milk from rural
areas was collected and supplied to the urban areas to process this milk other
Worli Dairy established in the year 1963 and Kurla Dairy was established in
the year 1975. On the same note, Government Chilling Centres and
Government Milk schemes were established in other districts. In the year
1960, about 1 LLPD(lakh ltrs. per day) of milk was procured and today the
figure goes up to 55 to 60 LLPD
Maharashtra Rajya Sahakari Dudh Mahasangh, Maryadit
(MRSDMM)
MRSDMM is an Apex Federation of District / Taluka milk unions
established to implement the Operation Flood programme in the state of
Maharashtra. The main objectives of MRSDMM is to procure milk from the
member milk unions at remunerative rates and distribute the same to the
consumers at reasonable rates.
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MRSDMM is thus working as a vital link between the milk producers
and consumers and working for the economic development and upliftment
of the farmers in the rural areas.
MRSDMM was established on 09th June, 1967.
At present MRSDMM have 86 member unions (25 District † 49 Taluka† 11
Multi-state unions) with more than 20000 primary milk societies & 23 lacs
which includes appx. 27000 women members.
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5.2
AAREY MILK COLONY
Aarey Milk Colony was established in year 1949. On 4.3.1951 Central
Dairy, Aarey was inaugurated by auspicious hand of then Prime Minister of
India Shri. Pandit Jawaharlal Nehru. The Central Dairy, Aarey was
constructed for processing and packing of milk which was collected from
Aarey Milk Colony and to supply same to consumer of Mumbai city. This
Dairy is pioneer of it's kind in entire Asia. After 1970 milk produced in
mofussil area was also received in this dairy. It distribute milk in western
suburbs of Mumbai City.
P a g e | 29
Designation & name of incharge P.K.Rajput, Dairy Manager (Incharge)
Address of the Office Central Dairy, Aarey Milk Colony,
Mumbai-400065
Telephone No. 26858705,26858730
Fax No. 26858117
E-mail Address [email protected]
Processing
Distribution
( Litres per day)
Actual processing
milk
Distribution of Milk
53900 53900
Types of
Centres Allotted to
above mentioned
category
Edu.Un
Employ.
S.C. Physicaly
Handicap
Ex-
servicema
n
Co-Op
Society
Ladies
X-Dairy Centre 33 - - 05 34 -
Z - Centre 254 85 02 02 08 194
Aarey Sarita 24 03 01 - 12 07
Energee Centre 14 07 01 - 02 27
Part time Energee
Centre
150 55 04 - - 59
Total Centres =983 475 150 08 7 56 287
Staff Position Dairy Chilling Centre
Sr, class I - -
Jr. Class I 2 -
Class II 4 -
Class III 224 -
Class IV 687 -
P a g e | 30
5.3
WORLI DAIRY
Worli Dairy is established in 1961 situated at Worli Seaface,
Worli ,Mumbai. The project cost of plan was Rs.420 lakhs of which an
amount of Rs. 80 Lakhs was provided by UNICEF in foreign currency.
Dairy was inaugurated by Smt. Vijayalaxmi Pandit, Governor of
Maharashtra. Dairy has processing and packaging capacity of Rs.4.50 lakhs
litres of milk handling per day. Milk product like Energee , Lassi, Dahi and
Masala Milk are also daily manufactured in the plant. Dairy helps to meet
the need of consumers in the Central and Southern part of Mumbai city.
( Colaba to Mahim &Sion)
P a g e | 31
Processing
Distribution (Lakhs /day)
Actual processing
milk
Distribution of Milk
1.30 1.30
Production of Milk &
Milk Products
(Lakhs/day)
Type of Milk -
Quantity
(Lakhs/day)
Type of Products-Quantity /day
Cow milk 0.95
Energee 22000
bottles
Aarey Spl. 0.35 Longlife C/M -
Total 1.30
Lassi 20000
bottles
Masala milk 1000 bottles
Dahi 100 gms
200 gms
300 Cups
100 Cups
Types of Centres
Allotted to above
mentioned category
Edu.Un
Employ.
S.C. Physicaly
Handicap.
Ex-
servicema
n
Co-Op
Society
Others
Aarey Sarita 35 8 3 2 18 18
Milk Centre 380 215 35 0 213 390
Energee Centre 12 6 4 0 0 8
Part time Energee
Centre
185 81 39 0 0 97
Other 214 - - - - -
Total 826 310 81 2 231 513
P a g e | 32
Staff Position Dairy Chilling Centre
Sr, class I 2 -
Jr. Class I 4 -
Class II 5 -
Class III 304 -
Class IV 647 -
Total- 962
5.4
MAHANAND DAIRY
MAHANAND DAIRY is the unit run by the MRSDMM, Mahanand
Dairy has made significant growth and progress in the field of productivity
P a g e | 33
improvement, quality improvement, energy conservation, cost control etc.
due to sincere and dedicated efforts put at all the levels.
The initial outcome of a socially-oriented programme, support to
training and employment programme for women (step), launched by the
union government in 1986, and adopted by the Maharashtra Rajya Sahakari
Dudhsangh (popularly called Mahananda dairy) across 16 districts of the
state. so far, Mahananda has formed 150 women's dairy cooperatives and
many more are expected to come up in the near future.
``The response to our effort is very good from every part of Maharashtra. we
want to send this positive message across,'' a spokesman of Mahananda told
tnn while describing the success of the novel experiment.
step covers eight traditional villages activities. they are: agriculture, animal
husbandry, dairy, fisheries, handlooms, handicraft, khadi and sericulture. in
subsequent years, social forestry and wasteland development were added to
the list. as dairy is an additional activity for most farmers and landless
labourers, a large number of women are automatically involved in the sector.
taking this into account, Mahananda submitted a phased proposal to the
union government in regard to formation of women's dairy cooperatives all
over the state.
the proposal, ratified by the Maharashtra government, covers 16 districts and
benefits 30,000 rural women, most of them from backward sections and
those belonging to the below poverty line (bpl) strata. the districts are
nashik, dhule, nandurbar, sangli, satara, solapur, pune, osmanabad, latur,
nanded, beed, aurangabad, ahmednagar, buldana, wardha and bhandara.
the main objective of the programme is to involve women in the process of
decision making, to upgrade their technical and managerial skills and to
P a g e | 34
build up their capacity by imparting training in personality and leadership
development. the programme has other topics which cover educating women
on gender equality, health and nutrition, legal literacy and women's welfare
legislations. reputed ngos and individuals teach the beneficiaries, who are
selected through a careful method. the women's dairy cooperatives have a
well thought of structure. every unit has a secretary, who is its focal person.
extensive and intensive training is given to the secretary on running and
managing a dairy cooperative so that economic viability remains the
important objective of the whole effort. realising the importance of a
secretary's crucial position, a special training programme has been designed.
training is imparted at kolhapur, where a centre for this purpose has been
established by the national dairy development board.
besides enriching the members financially, the society has to look after their
overall development by taking care of the general hygiene, improving civic
amenities and attendant social services in a given village. the members are
encouraged to take up additional income __ generation activities, of course,
in addition to dairy and animal husbandry. artificial insemination and first
aid (ai&fa) is another skill taught to them. they can make available this
knowledge at nominal honorariums to others. first aid boxes are provided at
each society for treating sick milch cattle. gender sensitisation, health and
nutrition as well as legal literacy are the three issues on which training
sessions would be held in every village having a dairy cooperative.
mahananda has developed an audio-visual van which will be equipped with
necessary literature.
The details of significant growth, high lights and achievements of
MRSDMM / MAHANAND DAIRY are as under :
P a g e | 35
ENHANCEMENT IN MILK HANDLING
MAHANAND DAIRY was established on 18th Aug.1983 with a milk
handling capacity of 4 LLPD and the capacity was expanded up to 6 LLPD
during the year 1997-98.
At present,Mahanand Dairy is distributing 6.5 Lacs litres milk per day in
Mumbai with the help of two packing depots strategically located at New
Mumbai ( Capacity 3.00 LLPD) & Byculla
(Capacity 1.00 LLPD).
The total sale of milk under Mahanand Brand name in the state is 8.5 LLPD
including the sale of milk in Konkan, Pune & Nagpur region.
6.
GUJARAT DAIRY COOPERATIVES
P a g e | 36
The Gujarat Cooperative Milk Marketing Federation Ltd, Anand (GCMMF)
is the largest food products marketing organisation of India. It is the apex
organization of the Dairy Cooperatives of Gujarat. This State has been a
pioneer in organizing dairy cooperatives and our success has not only been
emulated in India but serves as a model for rest of the World. Over the last
five and a half decades, Dairy Cooperatives in Gujarat have created an
economic network that links more than 2.8 million village milk producers
with millions of consumers in India and abroad through a cooperative
system that includes 13,141 Village Dairy Cooperative Societies (VDCS) at
the village level, affiliated to 13 District Cooperative Milk Producers’
Unions at the District level and GCMMF at the State level. These
cooperatives collect on an average 7.5 million litres of milk per day from
their producer members, more than 70% of whom are small, marginal
farmers and landless labourers and include a sizeable population of tribal
folk and people belonging to the scheduled castes.
P a g e | 37
The turnover of GCMMF during 2008-09 was Rs. 67.11 billion. It markets
the products, produced by the district milk unions in 30 dairy plants, under
the renowned AMUL brand name. The combined processing capacity of
these plants is 11.6 million litres per day, with four dairy plants having
processing capacity in excess of 1 million Litres per day. The farmers of
Gujarat own the largest state of the art dairy plant in Asia – Mother Dairy,
Gandhinagar, Gujarat - which can handle 2.5 million litres of milk per day
and process 100 MTs of milk powder daily. During the last year, 3.1 billion
litres of milk was collected by Member Unions of GCMMF. Huge capacities
for milk drying, product manufacture and cattle feed manufacture have been
installed. All its products are manufactured under the most hygienic
conditions. All dairy plants of the unions are ISO 9001-2000, ISO 22000 and
HACCP certified. GCMMF (AMUL)’s Total Quality Management ensures
the quality of products right from the starting point (milk producer) through
the value chain until it reaches the consumer.
Ever since the movement was launched fifty-five years ago, Gujarat’s Dairy
Cooperatives have brought about a significant social and economic change
to our rural people. The Dairy Cooperatives have helped in ending the
exploitation of farmers and demonstrated that when our rural producers
benefit, the community and nation benefits as well.
6.1
AMUL
P a g e | 38
"Anyone who has seen ... the dairy cooperatives in the state of Gujarat,
especially the highly successful one known as AMUL, will naturally wonder
what combination of influences and incentives is needed to multiply such a
model a thousand times over in developing regions everywhere."
Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative
in India. It is a brand name managed by an apex cooperative organisation,
Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which
today is jointly owned by some 2.8 million milk producers in Gujarat, India.
AMUL is based in Anand, Gujarat and has been an example of a co-
operative organization's success in the long term. It is one of the best
examples of co-operative achievement in the developing economy.
The Amul Pattern has established itself as a uniquely appropriate model for
rural development. Amul has spurred the White Revolution of India, which
has made India the largest producer of milk and milk products in the world.
It is also the world's biggest vegetarian cheese brand .
P a g e | 39
Amul is the largest food brand in India and world's Largest Pouched Milk
Brand with an annual turnover of US $1050 million (2006-07). Currently
Unions making up GCMMF have 2.8 million producer members with milk
collection average of 10.16 million litres per day. Besides India, Amul has
entered overseas markets such as Mauritius, UAE, USA, Bangladesh,
Australia, China, Singapore, Hong Kong and a few South African countries.
Its bid to enter Japanese market in 1994 did not succeeded, but now it has
fresh plans entering the Japanese markets. Other potential markets being
considered include Sri Lanka.
AMUL stands for,
A = Anand
M = Milk
U = Union
L = Limited.
M ilestone of A mul:
Name Karia district co-operative milk producer’s ltd, widely known
as “Amul”
From Co-operative sector registered under the co-operative society
act
P a g e | 40
Location Amul dairy, nr, railway station, Amul dairy road, Anand
Gujarat , India
Registration 14th December, 1946
Registered Kaira district co-operative milk producer’s ltd, Anand -388
001. Gujarat
Size Production of different products on large scale, collecting 9 to
15 lakh liters milk everyday & producing milk products.
Plant There are 4 plants
1) Amul Plant 2) Kanjari Plant
3) Mogar Plant 4) Khatraj Plant
Banker 1. The Kaire District Center Co-Operative Bank Ltd.
2. UTI bank 4. Bank of Baroda
3. SBI 5. Corporation bank 6. Bank of
Maharashtra
Working 10:45 am to 5:45 pm
Founders 1. Shri Tribhuvandas K. Patel
2. Shri Sadar Vallabhbhi Patel
3. Shri Morarji Desai
4. Shri Verghese Kurien
5. Shri Harichand M. Dalaya
Amul's Secret of Success
The system succeeded mainly because it provides an assured market at
remunerative prices for producers' milk besides acting as a channel to
market the production enhancement package. What's more, it does not
P a g e | 41
disturb the agro-system of the farmers. It also enables the consumer an
access to high quality milk and milk products. Contrary to the traditional
system, when the profit of the business was cornered by the middlemen, the
system ensured that the profit goes to the participants for their socio-
economic upliftment and common good.
Looking back on the path traversed by Amul, the following features make it
a pattern and model for emulation elsewhere. Amul has been able to:
Provide a support system to the milk producers without disturbing
their agro-economic systems
Even though, growing with time and on scale, it has remained with the
smallest producer members. In that sense, Amul is an example par
excellence, of an intervention for rural change.
Bring at the command of the rural milk producers the best of the
technology and harness its fruit for betterment
Produce an appropriate blend of the policy makers farmers board of
management and the professionals: each group appreciating its roles
and limitations
Plough back the profits, by prudent use of men, material and
machines, in the rural sector for the common good and betterment of
the member producers.
7
GUJARAT COOPERATIVE MILK MARKETING FEDERATION
7.1
P a g e | 42
GCMMF: An Overview
Milk collection(daily avg 2008-09) 8.4 million litres
Milk drying capacity 626 mts per day
Cattlefeed manufacturing capacity 3500 mts per day
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest
food products marketing organisation. It is a state level apex body of milk
cooperatives in Gujarat which aims to provide remunerative returns to the
farmers and also serve the interest of consumers by providing quality
products which are good value for money.
CRISIL, India's leading Ratings, Research, Risk and Policy Advisory
company, has assigned its highest ratings of "AAA/Stable/P1+" to the
various bank facilities of GCMMF.
Members 13 district cooperative milk Union
No.of producer members 2.79 million
No. of village societies 13,328
Total milk handling capacity 11.22 million litres per day
Milk collection(total 2008-09) 3.05 billion litres
8
LIST OF DAIRY OUTLETS IN MAHARASHTRA AND GUJARAT
P a g e | 43
KEEPING IN MIND THE INITIAL EXISTENCE AND THE ONGOING
COMPETITION BETWEEN THE TWO MOST FIERCE STATES,
MAHARASHTRA AND GUJARAT, GIVEN BELOW ARE THE LIST OF
ALL DAIRY OUTLETS HELD IN THESE TWO MAJOR STATES
8.1
MAHARASHTRA
Adivasi Taluka Dudh Utpadak Va Krishipurak Udyog
Sahakari Sangh, Dhule.
Ahmednagar Zilha Sahakari Dudh Vyavsayik Sangh
Ltd, Ahmednagar. Soc: 487. Av Milk Proc: 250,000 lpd.
Akola Zilha Dudh Utpadak Sahakari Sanstha Sangh
Maryadit, Akola.
Amravati Zilha Sahakari Dudh Utapadak Sahakari
Sangh Maryadit, Amravati.
Amrutsagar Sahakari Dudh Vyavasayik Sangh
Maryadit, Akole.
Aurangabad Dist Coop Milk Producers’ Union Ltd,
Aurangabad. Soc: 375, Mems: 352. Av Milk Proc: 70,000 lpd.
Baramati Taluka Sahakari Dudh Utpadak Sangh Ltd,
Baramati.
P a g e | 44
Beed Zilla Madhyavarti Sahakari Dudh Utpadak Va
Purvatha Sangh Maryadit, Beed.
Bhandara Dist Coop Milk Producers’ Union Ltd,
Bhandara
Bhoom Taluka Sahakari Dudh Utpadak Va Purvatha
Sangh Maryadit, Bhoom
Buldana Jilla Sahakari Dudh Utpadak Sangh Maryadit,
Buldana. Soc: 167, Mems: 21,502. Av Milk Proc: 24,313 lpd.
Chalisgaon Taluka Sahakari Dudh Utpadak Sangh Ltd,
Chalisgaon. Soc: 91, Mems: 15,000. Av Milk Proc: 13,000 lpd.
Chandrapur Zilla Dudh Utapadak Sahakari Sangh
Maryadit, Chandrapur.
Dhule Taluka Dudh Utpadak Krishipurak Udyog
Sahakari Sangh Ltd, Dhule
Godavari Khore Sahakari Dudh Utpadak Sangh Ltd,
Shingnapur, Dist Ahmednagar. Soc:110, Mems: 18,000. Av Milk
Proc:135,000 lpd.
Jalgaon Jilha Sahakari Dudh Utpadak Sangh Ltd,
Jalgaon.Soc: 935, Mems: 85,000. Av Milk Proc: 70,827 lpd
Jalna Zilla Dudh Utpadak Sahakari Sangh Ltd, Jalna.
P a g e | 45
Jawli Taluka Sahakari Dudh Purvatha Sangh Ltd,
Medha.
Kej Taluka Sundar Sahakari Dudh Vyavasaik Purvatha
Sangh Ltd, Kej, Dist Dhule.
Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd,
GokulDairy, Kolhapur. Soc: 1,826, Mems: 316,561. Av Milk Proc: 465,361
lpd
Koyana Sahakari Dudh Utpadak Prakriya Sangh Ltd,
Khodashi. Soc: 270. Av Milk Proc: 60,000 lpd.
Krishna Khore Sahakari Dudh Utpadak Va Purvatha
Sangh Ltd, Miraj.
Krishna Valley Sahakari Dudh Purvatha Sangh Ltd,
Wai.
Latur Zilla Sahakari Dudh Utpadak Va Purvatha Sangh
Maryadit, Udgir.Soc: 339, Mems: 31,188. Av Milk Proc: 34,069 lpd.
Mayur Coop Milk Producers' Ltd, Kolhapur.
Nagpur Zilha Nootan Dudh Utpadak Sahakari Sangh
Maryadit, Nagpur.
Nanded Zilha Sahakari Dudh Utpadak Sangh Maryadit,
Nanded.
Nasik Dist Coop Milk Producers’ Union Ltd, Nasik.
P a g e | 46
Pune Zillha Sahakari Dudh Utpadak Sangh Maryadit,
Katraj Dairy, Pune.Soc: 2,075. Av Milk Proc: 400,000 lpd.
Sangamner Taluka Sahakari Dudh Utpadak Sangh Ltd,
Sangamner.Soc:137. Av Milk Proc: 75,000 lpd.
8.2
GUJARAT
Ahmedabad Dist Coop Milk Producers’ Union Ltd,
Ahmedabad. Soc: 433, Mems: 52,428. Av Milk Proc: 90,000 lpd.
Banaskantha Dist Coop Milk Producers’ Union Ltd, Palanpur.
Soc: 1,130, Mems: 97,251. Av Milk Proc: 295,000 lpd.
Baroda Dist Coop Milk Producers’ Union Ltd, Baroda. Soc:
783, Mems: 156,691. Av Milk Proc: 225,000 lpd
Bharuch Dist Coop Milk Producers’ Union Ltd, Bharuch. Soc:
289, Mems: 37,900. Av Milk Proc: 38,000 lpd.
Bhavnagar Dist Coop Milk Producers’ Union Ltd, Bhavnagar.
Soc: 190, Mems: 25,532. Av Milk Proc: 23,000 lpd.
Gandhinagar Dist Coop Milk Producers’ Union Ltd,
Gandhinagar. Soc: 56, Mems: 13,000. Av Milk Proc: 46,500 lpd.
Junagadh Dist Coop Milk Producers’ Union Ltd, Junagadh.
Soc: 400, Mems: 41,500. Av Milk Proc: 73,000 lpd
P a g e | 47
Kaira Dist Coop Milk Producers’ Union Ltd, Amul Dairy,
Anand. Soc: 943, Mems: 513,280. Av Milk Proc: 740,000 lpd
Kutch Dist Coop Milk Producers’ Union Ltd, Kutch Dairy,
Madhapar. Av Milk Proc: 25,000 lpd.
Mehsana Dist Coop Milk Producers’ Union Ltd, Dudhsagar
Dairy, Mehsana. Soc: 1,020, Mems: 292,800. Av Milk Proc: 704,402 lpd.
Panchmahal Dist Coop Milk Producers’ Union Ltd, Godhra.
Soc: 1,133, Mems: 126,510. Av Milk Proc: 112,000 lpd.
Rajkot Dist Coop Milk Producers’ Union Ltd, Rajkot. Soc: 193,
Mems: 29,620. Av Milk Proc: 50,000 lpd.
Sabarkantha Dist Coop Milk Producers’ Union Ltd, Sabar
Dairy, Himatnagar. Soc: 1,315, Mems: 200,482
Av Milk Proc: 322,346 lpd.
Surat Dist Coop Milk Producers’ Union Ltd, Sumul Dairy,
Surat. Soc: 864, Mems: 160,000. Av Milk Proc: 300,000 lpd.
Surendranagar Dist Coop Milk Producers’ Union Ltd,
Surendranagar. Soc: 486, Mems: 31,000. Av Milk Proc: 30,000
lpd
P a g e | 48
9
DAIRY DEVELOPMENT IN MAHARASHTRA
AND
GUJARAT
9.1
Dairy Development in Maharashtra and National Perspective
DV Ghanekar
Managing Director – National Cooperative Dairy Federation of India Ltd,
Anand
Today, India has emerged as the World’s largest producer of milk,
and it is because of our milk producers, who have proved that given required
technical support and encouragement they are capable of producing
miracles. According to Food and Agriculture Organization of the United
Nations (FAO), the worldwide milk production in 2007 is estimated at 678
P a g e | 49
million tonnes out of which India’s production is estimated at 106 million
tonnes (FAO Food Out Look June 2008).
During the year 2003-04, Maharashtra’s milk production was 6.38
million tonnes compared to Uttar Pradesh’s 15.94 million tonnes, Punjab’s
8.39 million tonnes, Rajasthan’s 8.05 million tonnes, Andhra Pradesh’s 6.96
million tonnes and Gujarat’s 6.42 million tonnes.
A rough approximation indicates that there are an estimated 60 lakh
rural milch animal households in Maharashtra. The average per capita
availability of milk in the state is around 187 grams per day. The average
daily milk production density in the state during 2004-05 was about 59
kilogram per square kilometre and the average milk production per village
was estimated at about 438 kilograms per day. Milk production in
Maharashtra has grown between 5.7 percent per annum and 4 percent per
annum in the Eighth and Ninth Plans respectively. A Report of the Planning
Commission ‘Food Security and Nutrition – Vision 2020’ authored by
Radhakrishna and Reddy projects milk demand in India to be 166 million
tons in 2020. Commensurate with this goal, it may be reasonable to project
that Maharashtra’s milk production should grow from 6.57 million tonnes in
2004-05 to around 13 million tonnes by 2020. If this is indeed to be so, milk
production in Maharashtra should grow at a secular rate of 4 percent per
annum across the next three Five Year Plans.
To achieve this, Government of Maharashtra (GoM) has to take more
initiatives. Dairy cooperatives would have to be staffed with competent
professionals in all key functional areas i.e. marketing, quality assurance,
P a g e | 50
processing and procurement. Recruitment and career advancement would
have to be based on merit and performance. It is a welcome move that
election to the Board of MRSDMM was held in 2006 for the first time, since
its inception in 1973.
This should provide strategic leadership capable of professional
management of dairy cooperatives in Maharashtra. Further, GoM need to
take initiatives to rationalize the price of cow and buffalo milk (which is
more in favor of cow milk and is not based on scientific consideration); to
take an appropriate decision of handing over of Government dairies to dairy
cooperatives, through amendments in the present GR issued by the
Government. This action would reduce strain on Government budget (about
Rs.200 crore losses per annum) and also pressure on Government almost
every year to increase milk purchase price on one side and face the anger of
consumers for rise in milk prices. Even in Europe and America the
respective Governments are increasingly coming under pressure to withdraw
subsidies of any nature for dairy farming. The best way to help farmers is to
provide for funds to apex cooperative for development and expansion of the
dairy business.
Procurement share of the marketable surplus of cooperatives in
Maharashtra is about 21 percent. We need to make efforts to increase this
share and to launch appropriate productivity enhancement measures focused
on breeding, nutrition and disease control through delivery mechanisms that
could be both implemented and measured. One of the major concerns in
Maharashtra state is functioning of too many cooperative unions and
competition among themselves. At present there are 16,410 primary dairy
societies, 42 taluka and 23 district level functional unions and these unions
P a g e | 51
are marketing their produce under various brand names. Neighbouring state,
Gujarat, is procuring an average of 75.9 lakh kgs per day and the milk is
processed by 13 district unions and Gandhinagar Dairy. This milk is
marketed under a common brand name of ‘Amul’.
Fonterra, a Newzealand based Cooperative, having presence all over
the World is another example of successful dairy cooperative. Fonterra could
achieve this by entering into agreements with the local cooperatives/MNCs.
MRSDMM need to find an appropriate solution to have proper coordination
between unions for procurement and marketing of their produce and
consider marketing under a common brand. This will reduce the cost of
procurement and marketing.
Liquid milk marketing in Mumbai is about 42 lakh litres per day.
Three government dairies in Mumbai with an aggregate capacity of 10.5
lakh litres per day have grown old and would soon become obsolete. It is
necessary to plan and commission a new and modern metro dairy of around
20 lakh litres per day capacity, which should be autonomous and
professionally managed dairy.
More efforts and investment is required for production of clean milk.
This is possible if milk is pooled, collected and chilled in the villages
through bulk milk coolers (BMCs). Hence every fifth village needs to have a
BMC and all the milk societies need to have automatic weighing and testing
machines. To maintain the quality and retain the faith of producers and
customers following ultra modern initiatives need to be taken: Payment
through smart cards.
P a g e | 52
Establishment of cold chain from farmer to consumer; Price based on
microbial quality by implementing CMP programme; Fully automatic and
computerized milk processing facilities.
Milk marketing through automatic vending machines (not only in Mumbai
but even in smallest towns in the state); and, Enforcement of stringent
quality norms.
States such as Andhra, Karnataka, MP, Orissa, Bihar, Jharkhand,
Uttarakhand and J&K have adopted parallel cooperative law which is
progressive and provides level playing field for cooperatives. In 2003,
parliament has passed a “Producer Company Bill” which gives total
autonomy to the cooperatives so as to function at par with international
cooperatives. Maharashtra is yet to change its cooperative law and make it
more progressive.
Maharashtra has been in the fore front of cooperative development.
However, after liberalisation of economy in 1991, the cooperative sector has
suffered almost in every state and Maharashtra is no exception. The situation
could be rescued by making the cooperatives autonomous and therefore,
cooperative leadership need to take initiatives without further delay.
The Perspective 2010 plan of the Dairy Board maps the future of
dairying in India, setting realistic goals for Strengthening Cooperative
Business, Production Enhancement, Assuring Quality, and creating a
Sectoral Analysis and Studies. The plan was realised with the successful
completion of the Operation Flood Programme and has been developed by
the State Milk Marketing Federations and the Milk Producers' Cooperative
Unions in consultation with the Dairy Board. The Perspective 2010 goals
P a g e | 53
and strategies to meet them have been drawn by its actual implementers -
Federation and Unions and supported by NDDB.
9.2
DIARY DEVELOPMENT IN GUJARAT
RISE OF GCMMF:
After achieving the group turnover of Rs 9,600 crore this year, 13
unions of the Gujarat Co-operative Milk Marketing Federation (GCMMF)
which market Amul brand of products have planned to increase the group
turnover to Rs 27,000 crore by 2020.
“Mission 2020,” as the GCMMF calls it, focuses on cattle feed
manufacturing capacity. The GCMMF, at current price, will require an
investment of Rs 2,600 crore to ready the infrastructure required for such a
facility. “We want to expand the manufacturing capacity of the cattle feed
P a g e | 54
more than four times to 12,000 MTs per day by 2020,” said Parthi Bhatol,
chairman, GCMMF.
“All the 13 unions are in expansion mode. For instance, Anand dairy
is expanding its cattle feed plant capacity to 1,000 tonnes per day,” he said.
Last year, poor monsoon and odd winter hit the quantum of fodder in the
state. “The prices of green fodder and cattle feed have increased. With the
help of the expansion in the capacity, we will be able to bring the prices of
cattle feed down. For green fodder, we can only expect good rains this
time,” said Bhatol.
10
DISTRIBUTION NETWORK AND PROJECTS IN
MAHARASHTRA AND GUJARAT
10.1
MAHARASHTRA
DISTRIBUTION NETWORK:
• Ex- Dairy Distributors :
They distribute milk in their own vehicles to the customers in the specific
areas allotted to them. They operate on commission basis. They have signed
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an agreement with Dudh Mahasangh which is to be renewed annually. This
is the major distribution system and over 75% of the milk is distributed
through this system.
They sell milk only through pouches. They have to pay the price of milk
before accepting the delivery of milk.
• Shop Distribution :
This system has been designed to ensure in built price control and as a
counter check to the Ex- Dairy Distribution system. In this case, the shop
identified is owned by the party and delivery of packed milk is undertaken
by the Mahasangh. The party has to sell at the prescribed price only. Such
shops have been purposefully located in the areas of the Ex- Dairy
Distributors. This helps to ensure supply of milk at the prescribed price to
the customers.
• Supply to Bulk Customers :
Institutional buyers like hotels, canteen, hospitals are supplied milk in loose.
In this case, the institution has to pay deposit equivalent to the price of milk
for 1 ½ months as advance and pay the bills on monthly basis.
PROJECTS:
• Automatic Bulk Vending
TMRSDMM has started milk distribution through automatic bulk vending
system to cater the need of middle class family with the name ATM (Any
Time Milk) at Gokuldham.
• Tetra pack Project
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MRSDMM has planned to start marketing and distribution of long life milk
& milk products in Tetrapak such as plain cow milk, skim milk and
flavoured milk. Tetrapak milk & milk products shall be marketed throughout
the country with well knitted marketing & distribution network.
• Solar Project at Latur
At MRSDMM, the work of prestigious "Solar Project" is going on with the
assistance of MNES, New Delhi and I.I.T., Mumbai. The project work is at
advance stage of completion and after completion of this project, milk
pasteurize shall be run without using fuel (furnace oil, Diesel etc.) which
shall be proved as boon to Dairy Industry.
• Computerization
Modernization of Mahanand dairy is future plan and as a part of it
computerization is considered as a first step. Training is being given to staff.
• Josh Milk on Railway Stations
Mahanand has introduced Josh Milk (Flavour Milk) on Railway platforms
from 10th January 2006.
• Intensive dairy development project
This is 100% centrally financed scheme, which is planned to be
implemented by Dudh Mahasangh App. Rs. 3.00 Crores would be available
to the Backward Hill area district of Nandurbar, Nanded, Nagpur, Latur &
Amravati District
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10.2
GUJARAT
(GCMMF)
Distribution Network
Most producers work with marketing intermediaries to bring
their products to market. The marketing intermediaries make up a
marketing channel also called distribution cannel. Distribution
channels are sets of interdependent organizations involved in the
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process of making a product or service available for use or
consumption.
The Head Office of GCMMF is located at Anand. The entire
market is divided in 5 zones. The zonal offices are located at
Ahmedabad, Mumbai, New Delhi, Kolkata and Chennai. Moreover
there are 49 Depots located across the country and GCMMF caters to
13 Export markets.
A zero level of channel also called a direct marketing channel
consists of a manufacturer selling directly to the final customers. A
one level channel; contains one selling intermediary such as retailer to
the final customers. A two level channel two intermediaries are
typically wholesaler and retailer. A three level channel are typically
wholesaler, retailer and jobber in between.
GCMMF has an excellent distribution. It is its distribution
channel, which has made it so popular. GCMMF’s products like milk
and milk products are perishable. It becomes that much important for
them to have a good distribution.
Distribution Chart
Products
Agents
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We can see from above figure that GCMMF distribution
channel is simple and clear. The products change hands for three
times before it reaches to the final consumer. First of all the products
are stored at the Agents end who are mere facilitators in the network.
Then the products are sold to wholesale dealers who then sell to
retailers and then the product finally reaches the consumers.
Amul Parlors
Amul has come out with a unique concept of Amul Parlours. They
have classified them under four types namely:
Center for excellence
On the Move
Amul Parlours
Amul Preferred Outlets
Center for Excellence: These Amul Parlours are specifically at a
place, which has a class of excellence of its own. We can find such
parlors at the Infosys, IIMA, NID Ahmedabad etc.
Wholesaler
Retailer
Consumer
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On the Move: These parlors are at the railway stations and at
different state bus depots across different cities.
Amul Parlours: These parlors can be seen at different gardens across
different cities. These are fully owned by Amul.
Amul Preferred Outlets: These are the private shops that keep the
entire of product range of Amul. They also agree not to keep any
competitor brands in the outlets. They can keep other brands that are
in the non-competitor category.
Amul has more than 200 such outlets right now. It wants to have
1,00,000 parlors by the end of the year 2010.
11.
PROCESS OF PROCUREMENT
11.1
MAHARASHTRA
Farmers and the Milk Co-operative Society
The Operation Flood programme helps both farmers as well as the
city consumers. The programme ensures that the farmers get a fair price for
their cow & buffalo milk and the consumers get best quality milk at
reasonable prices.
In order to maintain freshness, this milk is chilled and then
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transported to Mother Diary in insulated milk tankers by road and by rail.
Checking the quality of milk
At the Dairy stringent hygienic standards are maintained. The
milk in the tankers is first checked for quality and freshness and then
unloaded into huge insulated stainless steel storage tanks. These tanks have a
capacity of 1 lakh liters each. The presence of adulterants (impurities) like
urea, neutralisers, preservatives and germs like bacteria are checked. All
these tests ensure that only good quality milk is accepted. Once empty, the
tankers are thoroughly cleaned and sanitized using acid and alkali. The
tankers are then finally rinsed with water.
Processing of milk
Unprocessed milk may contain small dirt particles invisible to
the naked eye. In order to remove these particles the milk has to be
processed.
To process milk at Mother Dairy, the milk is first clarified. This
is done in a clarifier which spins the milk at a very high speed, as a result of
which the dirt particles are thrown out and drained.
The milk is then pasteurized to make it safe for human
consumption. This process destroys any disease causing bacteria and also
increases the shelf life of the milk. During pasteurization the milk is heated
to 72 degree Celsius for 15 seconds and then rapidly cooled down to 7
degree celsius. This process, unlike boiling, does not affect the nutritional
value of the milk. Pasteurized milk is safe to drink without boiling as long as
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it is kept cool at all times.
Fortification with Vitamin A
Toned milk during processing is fortified with Vitamin A. The
deficiency of Vitamin A can lead to night blindness and skin horning.
Homogenisation
At Mother Dairy the milk is also homogenised. This ensures that
the customers get uniform amount of cream in their milk.
In this process the milk is pumped at a very high pressure turning the cream
into tiny droplets thus distributing the fat through out the milk. These
droplets do not float to the surface to form a creamy layer. That is why no
creamy layer appears when Mother Dairy milk is boiled at home.
Mother Dairy shops sell homogenised toned milk which contains minimum
3% fat even though you cannot notice it.
Dispatching of milk
After processing, the milk is chilled and stored in silos and
further chilled to about 2 C. by the glycol chilling system, and then
dispatched to the Milk Shops in insulated road milk tankers. Prior to the
milk being dispatched in tankers, it is tested for quality to make sure that it
meets the quality standards. When the tanker arrives at the shop the milk is
transferred into a large refrigerated tank.
Making the milk available
The control room is very vital to the efficient distribution of
milk to the 900 shops across the city. It organizes the tanker routes and its
staff is responsible for ensuring that shops do not run out of milk. Each milk
tanker is fitted with a wireless set. As soon as the incharge at the control
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room learns that a particular shop is running out of milk, he contacts the
tanker nearest to the shop on the wireless which then delivers the extra milk
to it.
Quality control all the way
A final quality check of the mill is also made at the shop
itself. This ensures that milk reaching the customers is of same quality as
dispatched from the Dairy.
Consumer Information
To raise the consumers awareness regarding Adulteration of
milk, Mother Dairy has thrown open its testing facilities. In its laboratories
consumers can see for themselves how impurities and adulterants are easily
detected. Mother Dairy also has two "mobile labs" that can test milk in the
residential colonies. All this is part of a commitment to provide the
consumers with the purest milk nature has to offer.
Keeping milk cool
Mother Dairy takes care to keep milk cool at every stage-it is chilled before
transporting in insulated tankers, it is stored in insulated silos and kept in
refrigerated tanks at the shops.
Keeping milk cool slows down the rate at which bacteria multiply. This also
increases its shelf life.
Caring for the environment
Solar Panels:
In an effort to conserve fuel, Mother Dairy utilises the abundant solar energy
to preheat the water going into the boilers. This also minimizes the pollution
caused by burning of fuels like coal, oil etc.
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Effluent treatment plant:
The water used for cleaning equipment and tankers is treated at the effluent
treatment plant in the Dairy before being discharged into the sewege system.
11.2
GUJARAT
.Milk Processing Chart:
Collection of Raw-Milk
Electronic Milk Test
Methyline Blue
Reduction
Purchasing And Standardizing Process
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Separation Process
Quality Check
Packaging Process
Cold Storage
Steps in Production Process
1. Collection of Raw Milk
Raw milk is collected from different co-operative societies of Gujarat.
About 122000 liters of raw milk is collected per day. Before this milk
is sent to the laboratory for testing the ‘FAT & SNF’ proportion, the
milk is separated from the raw milk. The milk is taken from the
chilling centers to Ahmedabad with the help of trucks.
After collecting the samples of milk, they are taken to the
laboratory ,where two types of tests are conducted.
Electronic milk test
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Methyline blue reduction test
Electronic Milk Test
Before pasteurizing the milk the samples are taken to the laboratory.
In the laboratory with the help of machine called electronic milk
tester, the proportion of SNF & FAT is checked with phosphate
solution. When the colour of the milk becomes yellow, it is sent for
pasteurisation.
Methyline blue reduction test
Another test, which is taken in the laboratory, is called Methyline
blue reduction test. This test is conducted for checking for how long
the milk will remain fresh. To check this, 10 ml of milk is taken and 1
ml of methyline blue solution is added to it. It is then kept under water
at 57-degree C. After one hour, if the solution losses its colour than it
is called raw milk. If the solution remains the same even after 5 hours
than it is considered as fresh milk, which remains constant for a long
period of time.
The dairy fixes the proportion of FAT & SAF.
MILK SNF FAT
Buffalo 9% 6%
Cow 8.5% 4.5%
After laboratory gives green signal and confirming the raw milk at the
reception dock is brought in to the house connected with the pump is
sent to the milk processing plant. This is than chilled below 4 degree
C. and then stored in milk silos. After that milk is processed which
has two steps i.e. pasteurising and standardizing.
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2. Pasteurising & standardizing
After collecting and checking and conducting laboratory tests, the
pasteurising process is conducted. To pasteurized the milk means to kill all
the germs in the milk by a particular method which was invented by a
scientist called James Pasteur and so the name pasteurisation.
In pasteurizing, the milk is first heated at 72 C to 76 C for 15 seconds
and then it is immediately cooled below 4 C. By this method they destroy
the pathogenic bacteria present in the raw milk. But if the right degree of
temperature is not provided there are chances that the milk might still
contain germs. After this process some milk goes to separator machine and
remaining is proportionately sent for standardization.
Standardization process is known such as it bifurcates the milk in 3
categories varying according to that FAT & SNF contents. The equipment
named OSTA. Auto standardization adjusts the fat directly. The computer is
just ordered whether gold or standard milk is to be rationed and the same
will be received with appropriate contents.
Ready Milk = Pasteurised + Standardized.
3. Separation process
Separator machine separates two kinds of products, skimmed
milk & cream, through channels. There are 100 disks fixed in
separator machines, which revolve at 5000 rpm (revolution per
minute). It is taken to the tanks, which has the capacity of 20000
litres. Whenever the milk is needed from the tank, it is tested in the
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laboratory and the deficit proportion fat is added by mixing cream.
This process continues for 24 hours.
4. Quality Check
Pasteurized milk is sent for a quality check in the Quality
Assurance laboratory of the dairy plant. Within 14 seconds FAT and
SNF proportion is received regarding 30 lack litres of milk. The total
investment put into the lab by the Dairy plant is of Rs. 6 crores.
This laboratory only checks and analyses the powder, milk and ghee.
There is a separate ice-cream analysing laboratory.
Packing Process
After this the milk is sent for packing to the milk packing station
in the dairy plant. In the milk packaging station there are huge
pipelines and behind each of them there is polyfill machine from
which the material to pack milk comes out. There are 12 such polyfill
machines in the packaging station from which the materials to pack
milk comes out. From each of these 12 machines 100 pouches are
packed in one single minute.
6. Storage
Then the milk is sent to the cold storage of the dairy where the milk is
stored until it is dispatched. Here the milk is stored at temperature
ranging from 5 C to 10 C, it is maintained with the help of exhaust
fans having silicon chips. About 40000 litres of milk is dispatched
from the cold storage of the dairy plant everyday. The damaged
pouches are kept a side and the milk is once again put to the tank.
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12.
Major Players
AMUL
Amul is the latest entrant in the highly competitive milk market of NCR
where Mother Dairy had an almost monopoly.
Amul is the brand owned by GCMMF is handling almost 80 lakh litres of
milk daily.
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PARAS Dairy
It sells 3 lakh LPD
DMS
12.1
COMPARITIVE ANALYSIS OF MAJOR MILK BRANDS
MILK
BRANDS
Mother
Dairy
Amul Delhi
Milk
Scheme
Gopaljee Paras
Full Cream 19 19 19 19 19
Toned 15 15 15 15 15
Double
Toned
13 NA NA NA NA
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Standard 17 NA NA NA NA
Skimmed 11 NA NA NA NA
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13
OBJECTIVES OF THE RESEARCH
1)Assessing the population of MAHARASHTRA AND GUJARAT.
2)Assessing the milk market of MAHARASHTRA AND GUJARAT.
3)Assessing’s THE COMPETITION in the dairy sector territory .
4)Assessing the reasons of high and low sales volume ofMAHARASHTRA
AND GUAJRAT milk.
5)Suggesting remedial course of action for THE PROBLEMS
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14
FINDINGS OF THE RESEARCH
14.1
Analysis: PROBLEMS
The Pie shows the PROBLEMS faced by Retailers.
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Findings:
Major problem being faced by Retailers was due to SUPPLY PROBLEM.
The distribution channel is not at all satisfying.
14.2
INTITUTIONAL
Analysis:
The graph shows the only important parameter i.e. TASTE for the
institutional consumers.
Findings:
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According to the institutional consumers, who consume milk as an
Input for their production of sweets (like sweet shops, restaurants etc)
consider TASTE as the only and the most important parameter that effects
their buying decision. Out of total sample size of 50 only 16 consume
packed milk rest 34 consume loose milk as they perceive it to be fresh and of
better taste.
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14.3
MAHARASHTRA
SWOT
STRENGTHS
The major strength of the
Mother Dairy is the different
variety of Milks and a
recognized BRAND name.
The increasing demand for
these products presents a
great opportunity for the
Mother Diary to increase and
scale up the production.
WEAKNESS
Scarce Mother Dairy
Outlets.
Less Margin given to the
Outlet owners to match the
existing competitors.
OPPORTUNITIES
There is a scope of business
as there is a demand for dairy
products.
Mother Dairy should open
more outlets to get the
maximum advantage of the
demand.
Need to put more stress in the
face-to-face direct marketing
THREATS
Increasing competition from
the other brands.
Strong supply chain
management by the
competitors.
Strong marketing strategy by
competitors by offering the
discount coupons to
consumers and providing
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to reach to the customers.
The increasing demand for
these products presents a
great opportunity for the
Mother Diary to increase and
scale up the production.
healthy commissions to the
retailers.
14.4
GUJARAT
SWOT
Strengths
Demand profile: Absolutely optimistic. Milk being a necessity
product, the demand will stay and the sales at GCMMF are bound to
increase over a period of time.
Margins: Quite reasonable, even on packed liquid milk. The
margins are enough to limit the entry of potential entrants.
Flexibility of product mix: Tremendous. With balancing
equipment, GCMMF has kept adding a wide array of products to its
product line.
Availability of raw material: Abundant. Presently, more than 80
per cent of milk produced is flowing into the unorganized sector,
which requires proper channelization. Amul & GCMMF have
leveraged this and has got itself a strong base of suppliers who
provide them milk throughout the year. Large number of dairy plants
in public and cooperative sectors besides several others coming up in
P a g e | 78
the private sector would result in competition. Because of this the end
consumer would benefit and a good product mix would emerge.
Technical manpower: Professionally trained, technical human
resource pool, built over last 30 years is the strength that GCMMF
has. The employees of GCCMF are highly recognized in the industry
and have earned name for themselves as well as the federation.
Enhanced Milk Production: Increase in the milk production with
consequently increased availability of milk processing has led to
increase in consumption and faster access to the consumers through
effective distribution. The technology is brought from Denmark and
the production of milk has benefited from that.
Transportation: The transportation facilities and the easy
availability of the special trucks have provided a boost. Cold
refrigerated trucks are there in place and the warehouses also have the
cold storage facilities that facilitate the transportation.
Vast resources: Country has vast natural resources which offer
immense potential growth and development for dairying. Moreover
the financial resources available with the federation are immense and
the reputation is such that in case of any further requirements, it can
approach any institution and raise any form of capital.
Increasing purchase power and changing tastes of the
consumers: The purchasing power of the residents is increasing. As a
result a lot of products are being consumed. Moreover, the consuming
habits are changing. As a result, the demand for products such as
butter and cheese is increasing at a very rapid rate.
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Weaknesses
Perishability: Pasteurization has overcome this weakness
partially. UHT gives milk long life. Still perishability is there at the
milk vendors end. This does result in loss of some production. But
Amul Dairy is taking steps to store milk at the vendors end. Surely,
many new processes will follow to improve milk quality and extend
its shelf life.
Lack of control over yield: Theoretically, there is little control
over milk yield. A lot depends upon the monsoon in the country. This
is because of the quality of cattle feed that would be available will not
have the required nutritional content. Steps are taken to provide
awareness regarding these and the penetration of quality feed is being
increased. Moreover, increased awareness of developments like
embryo transplant, artificial insemination and properly managed
animal husbandry practices, coupled with higher income to rural milk
producers should automatically lead to improvement in milk yields.
Logistics of procurement: Woes of bad roads and inadequate
transportation facility make milk procurement problematic. All these
factors lead to perishability of the procured milk. But with the overall
economic improvement in India, these problems would also get
solved.
Erratic power supply: The erratic power supply would cause
harm in the processing of milk.
Underdeveloped systems: There still exist underdeveloped raw
milk collection systems in some parts of the country. However steps
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are being taken such as setting up of cold storage points at key
collection centers to combat the situation.
Lack of proper implementation: Dairy development programmes
have not been fully implemented as per the needs of the region in
different agro-climatic zones.
Infrastructure: The infrastructure that is available is not up to the
current world standards. Also lack of infrastructure for offering dairy
business management programmes to the trained personnel is creating
a hindrance.
Opportunities
"Failure is never final, and success never ending”. Dr Kurien
bears out this statement perfectly. He entered the industry when there
were only threats. He met failure head-on, and now he clearly is an
example of ‘never ending success’! If dairy entrepreneurs are looking
for opportunities in India, the following areas must be tapped:
Competition: With so many newcomers entering this industry,
competition is becoming tougher day by day. But then competition
has to be faced as a ground reality. The market is large enough for
many to carve out their niche. Moreover due to competition, there is a
chance to better serve the market with innovative products.
Value addition: There is a phenomenal scope for innovations in
product development, packaging and presentation. Given below are
potential areas of value addition:
o Steps should be taken to introduce value-added products like
shrikhand, ice creams, paneer, khoa, flavored milk, dairy
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sweets, etc. This will lead to a greater presence and flexibility
in the market place along with opportunities in the field of
brand building.
o Addition of cultured products like yoghurt and cheese lend
further strength - both in terms of utilization of resources and
presence in the market place.
o Yet another aspect can be the addition of infant foods, geriatric
foods and nutritional.
Export potential: Efforts to exploit export potential are already
on. Amul is exporting to Bangladesh, Sri Lanka, Nigeria, and the
Middle East. Following the new GATT treaty, opportunities will
increase tremendously for the export of agri-products in general and
dairy products in particular. There is a strong basis of cost efficiency,
which GCMMF can leverage in the world market.
Markets: The market for the traditional as wells as processed
dairy products is expanding both at the domestic and international
front.
IT support: Software is now available for project formulation for
dairy enterprise. It has also computerized its production processes.
Mother Dairy was the first fully computerized dairy in India. In its
Anand plant all products are processed computerized, which does not
have any hand touch during any stage of process.
Threats
Milk vendors, the un-organized sector: Today milk vendors are
occupying the pride of place in the industry. Organized dissemination
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of information about the harm that they are doing to producers and
consumers should see a steady decline in their importance.
Infestation: There are increasing incidents of chemical
contaminants as well as residual antibiotics in milk.
Quality: The quality of the milk is found to be poor as compared to
the international standards. One of the reasons for these according to
the EU and America is the method of milching the milk. In these
nations the milk is hands by the farmers owning the cattle do milched
with the help of machines, while in India.
Exploitation: The liberalization of the Dairy Industry is likely to be
exploited by the multinationals. They will be interested manufacturing
the milk products, which yield high profits. It will create milk
shortage in the country adversely affecting the consumers.
Subsidy by Western Nations: There have been incidences wherein
the Western nations subsidizing the dairy products by a few means
like transportation. Because of such reasons the final price of the
product goes below the prices prevailing in the Indian Market. Hence
it proves a threat to GCMMF’s and other Indian dairy products.
Creation of Non Tariff Barriers by Developed Nations: The
Developed Nations have created Non Tariff Barriers related to Quality
of the milk specifically. They want that the milk be processed with
potable Air and Water. They also want that the milching of cattle be
done with the help of machines. However this type if system is yet to
evolve in India. Because of these reasons they are reducing the market
potential of Indian made products, where GCMMF holds a lions
share.
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The study of this SWOT analysis shows that the ‘strengths’ and
‘opportunities’ far outweigh ‘weaknesses’ and ‘threats’. Strengths and
opportunities are fundamental and weaknesses and threats are
transitory. Any investment idea can do well only when you have three
essential ingredients: entrepreneurship (the ability to take risks),
innovative approach (in product lines and marketing) and values (of
quality/ethics).
15
BIBLIOGRAPHY
BOOKS
COOPERATIVES AND RURAL DEVELOPMENT- BY AR
REDDY Y & SURESH REDDY
P a g e | 84
DAIRY DEVELOPMENT AND TRIBAL DEVELOPMENT - BY
RV SINGH
WOMEN IN DAIRY DEVELOPMENT - BY SHAGUFTA JAMAL
VILLAGES, WOMEN AND THE SUCCESS OF DAIRY
COOPERATIVES IN INDIA MAKIN PLACE FOR RURAL
DEVELOPMENT - BY PRATYUSHA BASU
DAIRY TECHNOLOGY BY YOSHI TAKESHI
WEBSITES
www.google.com
www.aarey.com
www.amul.com
www.nddb.org
www.indiadairy.com
www.financialexpress.com