Post on 04-Jun-2018
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PROJECTREPORT ON
Entrepreneurship in Dairyproduct In Partial fulfillment of the requirements For the degree of
BACHELOR OF B!"NE!!
AD#"N"!TRAT"ON
!u$%itted to&
!u$%itted $y&
#r' Par(inder !in)h A%
Pandey
*+,--.,-/.,
1
Ra2neesh
s3a%i
*+,--.,-/0
/1
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5JRAN6ALA 5R NANA7 "N!T"TTE OF
#ANA5E#ENT 8 TECHNOLO59
C":"L L"NE! LDH"ANA
PREFACE
An individual can not do project on this scale. I take this
opportunity to epress my ackno!ledgement and deep sense o
gratitude to individuals for rendering valua"le assistance and
assistance and gratitude to me .#here inputs have played a vital rol
in success of this project $formal piece of ackno!ledgement may
not "e sufficient to epress the felling of gratitude to!ards people
!ho have helped me in successfully completing my project.
I highly thankful to %r. Parvinder &ingh for guidance.
I firmly "elived that there is al!ays a scope of improvement. I
!elcome any suggestion for further enriching the quality of thireport.
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Amit 'umar Pandey
DECLARATION
I here"y declare that the project onEntrepreneurship inDairy producthas "een su"mitted "y me for the partialfulfillment for the a!ard of the degree of (achelors of (usiness Administratio
#his report has "een "ased on my study under the guidance of %r. Parvinder
&ingh.
I undertake responsi"ility for the contents of this report.
) Amit 'umarPandey
DA"R9 FAR#"N5
"NTRODCT"ON
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India derives nearly 33% of the gross Domestic population from agriculture a
has 66% of economically active population,engaged in agriculture. The share
livestock product is estimated at 21% of total agriculture sector. The fact t
dairing could play a more constructive role in promoting rural elfare a
reducing poverty is increasly !eing recognised . "ilk production alone involvmore than #$ million producers, each raising one or to cos !uffalo
primarily for milk production . The domesticated ater !uffalo is one of t
gentlest of all farm animals ,hence it can !e !reeded easily. The dairy sec
offers a good opportunity to entrepreneurs in India. India is a land of opportun
for those ho are looking for ne and e&panding markets.'roth propsects
the dairy sector are very !right.
#AR7ETDairy development in India has !een acknoledged the orld over as one of mode
India(s most sucessful development programme. India is the second largest m
producing country ith anticipated production of a!out #) million tons during 1**
2$$$. The production of milk products stoood at 3.$# lakh tonnes in 1***+2$
roduction ofmilk poder including infant milk food has risen to 2.2- lakh tons in 1**
2$$$, hereas that of malted food is at 6-$$$ tons. ff late market for milk products
shoing a steady increase.
*.* #ANFACTR"N5 PROCE!!"odern and ell esta!lished scientific principles ,practices and skills should !e used
o!tain ma&imum economic !enefits from dairy farming. /ome of the ma0or norms a
recomondationtions are are full selection of animals, feeding of animals,milking
animals
Why do Dairy Farming ?1.1 Dairying is an important source of subsidiary income to small/marginal farmers aagricultural labourers. The manure from animals provides a good source of orga
matter for improving soil fertility and crop yields. The gober gas from the dung is usas fuel for domestic purposes as also for running engines for drawing water from wThe surplus fodder and agricultural by-products are gainfully utilised for feeding tanimals. Almost all draught power for farm operations and transportation is suppliedbullocks. Since agriculture is mostly seasonal there is a possibility of findemployment throughout the year for many persons through dairy farming. Thus daalso provides employment throughout the year. The main beneficiaries of daprogrammes are small/marginal farmers and landless labourers. A farmer can eargross surplus of about !s. 1"### per year from a unit consisting of " milkbuffaloes. The capital investment re$uired for purchase of " buffaloes is !s. 1%""'ven after paying a sum of !s. (")(/- per annum towards repayment of the loan a
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interest the farmer can earn a net surplus of !s. *### - )###/- appro+imately per ye,or details see model scheme enclosed. 'ven more profits can be earned dependupon the breed of animal managerial skills and marketing potential.
1." According to orld 0ank estimates about 2 per cent of 3ndia4s )(# million peoare in 2.% million villages cultivating over 1(2 million hectares of cropland. Averafarm si5e is about 1.** hectares. Among # million rural households (" per coperate upto " hectares and & per cent are landless households. These landless asmall farmers have in their possession 2& per cent of the animals and produce 21 cent of the milk. Thus small/marginal farmers and land less agricultural labourers pa very important role in milk production of the country. Dairy farming can also be takup as a main occupation around big urban centres where the demand for milk is hig
2. Scope for Dairy Farming and its National Importance.
".1 The total milk production in the country for the year "##1-#" was estimated at %(million metric tonnes. At this production the per capita availability was to be "grams per day against the minimum re$uirement of "2# grams per day recommended by 367!. Thus there is a tremendous scope/potential for increasthe milk production. The population of breeding cows and buffaloes in milk oveyears of age was *".* million and (".( million respectively ,1))" census
"." 6entral and State 8overnments are giving considerable financial assistance creating infrastructure facilities for milk production. The nineth plan outlay on Anim9usbandry and Dairying was !s. "&(2 crores.
3. Financial Assistance Available from an!s"NAA#D for Dairy Farming.
&.1 :A0A!D is an ape+ institution for all matters relating to policy planning aoperation in the field of agricultural credit. 3t serves as an ape+ refinancing agency the institutions providing investment and production credit. 3t promotes developmethrough formulation and appraisal of pro;ects through a well organised TechnServices Department at the 9ead
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milch animals construction of sheds purchase of e$uipments etc. The feeding cduring the initial period of one/two months is capitalised and given as term loaacilities such as cost of land development fencing digging of well commissioningdiesel engine/pumpset electricity connections essential servants4 $uarters godow
transport vehicle milk processing facilities etc. can be considered for loan. 6ostland is not considered for loan. 9owever if land is purchased for setting up a dafarm its cost can be treated as party4s margin upto 1#> of the total cost of pro;ect.
$. Scheme Form%lation for ban! loan.
(.1 A Scheme can be prepared by a beneficiary after consulting local technipersons of State animal husbandry department D!DA S=?? etc. dairy co-operatsociety/union/federation/commercial dairy farmers. 3f possible the beneficiaries shoalso visit progressive dairy farmers and government/military/agricultural univers
dairy farm in the vicinity and discuss the profitability of dairy farming. A good practitraining and e+perience in dairy farming will be highly desirable. The dairy co-operatsocieties established in the villages as a result of efforts by the Dairy DevelopmDepartment of State 8overnment and :ational Dairy Development 0oard woprovide all supporting facilities particularly marketing of fluid milk. :earness of dafarm to such a society veterinary aid centre artificial insemination centre should ensured. There is a good demand for milk if the dairy farm is located near urbcentre.
(." The scheme should include information on land livestock markets availabilitywater feeds fodders veterinary aid breeding facilities marketing aspects trainfacilities e+perience of the farmer and the type of assistance available from Sta8overnment dairy society/union/federation.
(.& The scheme should also include information on the number of and typesanimals to be purchased their breeds production performance cost and otrelevant input and output costs with their description. 0ased on this the total costthe pro;ect margin money to be provided by the beneficiary re$uirement of bank loestimated annual e+penditure income profit and loss statement repayment perio
etc. can be worked out and shown in the ?ro;ect report. A format developed formulation of dairy development schemes is given as Anne+ure 3.
&. Scr%tiny of Schemes by ban!s.
The scheme so formulated should be submitted to the nearest branch of bank. Tbank4s officers can assist in preparation of the scheme for filling in the prescribapplication form. The bank will then e+amine the scheme for its technical feasibiand economic viability.
'A( )echnical Feasibility * this +o%ld briefly incl%de *
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1. :earness of the selected area to veterinary breeding and milk collection cenand the financing bank4s branch.
". Availability of good $uality animals in nearby livestock market. The distribut
of important breeds of cattle and buffalo are given in Anne+ure 33. The reproductive and productive performancecattle and buffalo breeds is given in Anne+ure333.
&. Availability of training facilities.(. Availability of good gra5ing ground/lands.2. 8reen/dry fodder concentrate feed medicines etc.6. vaila!ility of veterinary aid!reeding centres and milk marketing facilities near the
scheme area.
'( ,conomic -iability * this +o%ld briefly incl%de *1. @nit 6ost - The average unit cost of dairy animals for some of the States
given in Anne+ure 3.". 3nput cost for feeds and fodders veterinary aid breeding of animals insuran
labour and other overheads.&.
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'ach !egional uip%ent!'No Description ?ty' Rate
A%ountRs'
1 9uffellos :os 3$ 2$$$$ 6$$$$$
2 /hed 1 2$$$$$ 2$$$$$
3 "sslenious e&p.;ire ,other< 5um 1 -$$$$ -$$$$
+ Four !heeler ,
,----- ,44444
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Electric !iring *---- /4444
#otal/.@444
4
B. WORKING CAPITAL
i' !ags2$kg?3$?#6s? 3$days 126$$$
Tota in cost structure of milk production in "uffaloes5 therefore attempts to
lo!er the feed cost !ill reduce the cost of milk production5 !hich can "e
achieved "y use of less of concentrates and use of more green fodder.
d3 D2i# !" 2#!i/ a& "a%+ a%a &!#& #! &ai% "a%+ ' 6airy
unit of 0 co!s and
follo!ers can "e maintained on one acre fertile and fully irrigated land.
e3 H!32i/ "ai*i#i2 ' #he yard and parlour system requires less capital
investment per co! and less la"our co! compared to conventional co! shed.
f3 Sa2!a*i# i +i* 0%!&3#i! ' %ilk plants offer incentive in the
form of or "y !ay of higher price for milk during lean period of summer
months so that the farmer may o"tain more milk in those months of higher
prices.
g3 Rai2i/ %0*a+# 2#! ' %ost dairy farmers prefer rearing most
of their heifers on their farm to maintain required num"er "ecause to avoid
risk of "uying poor quality stock and also it is proved that use of "y products
and unconventional feed stuff heifer can "e raised cheaply.
h3 4a#$i/ +i* i*& ' #he dairy milk yield record of an individual
co!can "e used as a guide for rationing5 an indication of status of health on
faulty feeding and as a "asis culling.
i3 C$ ! F& 53a#i# 6 53a*i# ' 6epending upon the milk yield
and requirements of an animals5 farmers must !ork out the ration for each co!
and !rite it on the chart against the animal. It helps to ensure the supply of
right quantities of concentrates5 from time to time depending upon the quality
and quantity of roughage.
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La(!3% U#i*iza#i! ' Cost of la"our is second to cost of feed in theannual
cost of keeping of a co!. :oose housing system saves la"our "ecause
co!s come to milking parlour instead of man going to co!. %anure loader
can "e used in the loafing area. It is also suggested that la"our requirement
"y follo!ing yard and parlour system is less comr) )ed to co! shedsystemVia(i*i# "!% 2+a** 2iz "a%+2 ' For a family2,3 mem"ers having
,) acres ofland for crop production the economically si4e of dairy farm
is ,) animals5 depending upon their interest5 capa"ility5 availa"ility of
fodder and marketing facilities. #hese t!o family mem"ers can !ork for
,) animals !ithout engaging any etra la"our and also !ithout affecting
the routine farm operations. #he dairy farming !ill act as side
employment to the main agriculture !ork. #hese small farms !ill "e more
economical than larger farms due to etra profits over the cost of milk.
1
9
G!!& -+aa/+#
0%a#i2
' Clean environment !ill
producemore milk5 !hen compared to uncleanliness in the
sheds. Proper
protection of animals against environmental conditions like
heat and cold
!ill helps to maintain the production5 other !ise drastic fall in
production
is not protected. %aintenance of proper timings of feedingand milking
!ill help in maintaining the optimum production.
%aintenance of cattle
health "y proper vaccination and treatment !ill
definitely helps in
production of more milk.
1
.:
ECONOMIC INSTITUTIONS SUPPORTING
DAIRY
DEVELOPMENT PROGRAMMES.
PROGRAMMES.
For starting any "usiness5 the foremost important resource one should give
prime importance is finance. 1ne cannot start any "usiness industry on their
o!n money. #he rural people are poor or middle income people and so they
cannot afford to invest large amounts for esta"lishment of any si4e of dairy
farms. &everal institutions are concerned either directly or indirectly in the
activities or providing finance to esta"lish dairy farm5 milk collection centres5dairy plants etc. #hey are
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*. I&ia Dai% C!%0!%a#i! ' Earlier it is the financing agency for all the
dairy developmental activities i.e. esta"lishing dairy plants5 chilling centre5
progeny testing farms5 formation of dairy cooperatives under Anand pattern.
9o! there is no) Indian dairy corporation and it is merged !ith 966(.
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Na#i!a* Dai% D*!0+# (!a%& ' Earlier it is only implerfientation
agency implementing all the dairy developmental programmes throughout
the
country. After merging of Indian dairy corporation5Hno!it is acting as
financial as !ell as implementation of dairy developmental activities in thecountry. It provides finance to all the state o!ned milk cooperative
federations5 for the esta"lishing and or increasing the capacity of milk
processing f dairy products factoriesJ chilling centers5 feed factories5
esta"lishing progeny testing farms5 improving Artificial insemination centers.
#he 966( also acts as agent for international "usiness loan for the
development of dairy industry. 966( !ill provide finance to the state
federations 1r cooperative society "y taking guarantees from the respective
state government. #he finance !ill "e different types i.e. !ith nominalinterest5 no interest and repayment of one scheme to investment for other
scheme. 966( also involved in the research activities of dairyKng. Eg of
the cost of project depending upon scheme or non scheme projects. For dairy
farms one should have their o!n land and no loan !ill "e given for land. #he
interest rates charged !ill "e *,)*.> P.A. depending upon the amount of
loan.
. C!!0%a#i (a ' In each state ape cooperative "ank !ill "e there5
in each district cooperative "ank !hich !ill have "ranches throughout the
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district in rural areas. 7ust like commercial "anks5 cooperative "anks !ill give
for all dairying projects for "oth short term and long term loans5the rules and
regulations are almost commercial "anks !ith little less interest rates.
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Vi**a/ !!0%a#i 2!i#i2-For a cluster of villages cooperative
societies !ill "e there5 !hich !ill give loans for small scale animal
hus"andry activities. #he finance for these societies !ill "e "y cooperative
"anks. #he interest rates !ill "e less compared to commercial "anks.
. Di2#%i# R3%a* D*!0+# a/i2 ' In each districtone6R6A!ill
"e there !hich !ill operate most of the centrally and state sponsoredschemes.6R6A !ill assist programmes like
a3 6raught @prone area programmes 26PAP3
"3 &mall farmers development agencies 2&F6A3
c3 %arginal farmer and Agricultural la"our development agency
d3 Integrated rural development programmes.
#he 2IR6P3 6R6A !ill sponsor the a"ove schemes "y sanctioning loans
"y commercial5 "anks and provide su"sides from ,)-> depending upon
the classes of people involved in the schemes.
1?. B.C a& SC !%0!%a#i! ' &C and (C corporations !ill arrange loans
for dairy programmes of respective class of people through milker commercial
cooperative "anks and provide su"sidy of ,)-> .
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11. T%i(a* &*!0+#' a/i2 ' For the development of tri"al areas5the
government has esta"lished tri"al development agencies !hich !ill give
su"sidies and arrange loans through financial institutions.
SUMMARY
Importance of economics in dairying !as eplained !ith 5 particular
reference to rural areas. #he economic via"ility for large and small si4e
dairying units !ere discussed. arious important economic principles !ere
given !ith a primary moto to maimi4e profit. #he various financial
institutions are listed. Project reports !ith their via"ility are given for ,5*-5-
and *-- animal dairy farms and also milk processing centres handling ---
litres5 ---- litres per day. #he importance and implications of dairy animal
insurance !ere discussed.
9 MIL@ PROCUREMENT
S3%%2 "!% Mi* 0!##ia* a%a "!% S3%0*32 ;Mi* 2$& a%a)
#o assess !hether any project or industry !ould "e availa"le in a certain
area5 a survey of availa"le resources in that particular area is carried out. +lilk
shed are generally denotes a district 2or3 from !hich area milk is procuredL
and processed in the common plant located in the central part of that particular
are
#he villages in the milk shed area should "e prelimiary survey is conductedas different aspects of milk production as detailed given "elo!
*. #he eisting cattle and "uffalo population
,. #he production and utiMi4ation disposal pattern of milk and milk
product.
0. %arketing channels for surplus milk.
+. Returns from the sale of milk realised "y the farmers.
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. Agricultural facilities and production patterns.
/ .(asic amenities such as communications links5 educational facilities.
/. 1ther sources of income.
;. Performance of other institutions including multipurpose cooperatives
etc.5
=. 6ifferent communities living in a village and their inter)relationship.
N. 1ther relevant information if any.
1nce the milk potential areas are located detailed survey is conducted i.e.
door to door survey a"out the milk production5 surplus milk !ith the family5
!hether they are interested to sell the milk to the society or not5 infrastructure
needed for enhancement of milk production etc. After detailed survey possi"le
milk roots are identified so as to cover all the milk potential areas. In selecting
the roots the prime idea should "e considered is that the vehicle from the
starting point loading the milk from different collection centres5 reaches milk
chilling centers .
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9.9 SYSTEMS OF MIL@ PROCUREMENT '
#he success of any dairy project depends on a !ell planned ani organised
system of milk procurement. In the case !here procureme system is not !ellesta"lished dairy plants remains under utili4ed on th other hand5 if systems is
!ell planned the follo!ing advantages can " o"tained.
) An assured market round the year to the milk producers.
) Full capacity utili4ation of the dairy plant
) Increase in the milk production through inputs at reasona"le cost.
) Planning and scheduling of milk procurement
follo!ing t!o aspects.
) Policy decisions at top management level
) &cheduling the actions for smooth running
9.9.1 POLICY DECISIONS AT TOP MANAGEMENT LEVEL
(efore starting milk procurement the follo!ing decision should "e taken.
*3 Price to "e paid for ra! milk in different seasons
,3 #he system and frequency of payment for milk ) 6aily 8eekly5
fortnight or %onthly.
03 Reserve funds required to carry milk procurement to avo hard ships
+3 %aterial5 equipment5 chemicals and stationary required f collection
centres.
3 #ransportation of milk ) hiring of transporting vehicles "etter
rather than o!ning the vehicle.
/3 #echnical inputs i.e. eterinary aids5 A.I5 feeds and fodder to "e
given in advance to the producers to get the advantage of favour.
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%an po!er required and training enga4ed in milk porcurement. needed to
people
9.9.9 S$&3*i/ #$ a#i!2 '
1nce the a"ove policy dessions are taken5 the milk procurement activitiesare planned. After preliminary and detailed survey of villages5 village societyHs
are started. &ociety staff is recruited and necessary training in the fields related
to milk collection5 testing5 maintenance of records5 "ank transactions "ye)la!s
etc is given. #ransport time ta"le for milk root is prepared and the all societyHs
are informed a"out the time of loading of milk cans and 2or3 unloading of
empty cans. All the mem"ers of the society !ill "e informed a"out the time of
milk collection at the collection centers. 6epending upon the quantity of milk
collected indent for etra cans or information a"out the quantity of milk to "e
procured in future should "e reported promptly to the concentrated authorities
"y the society organisers.
9. SYSMTES OF MIL@ PRICING '
#he pricing of any commodity is al!ays "ased on its cost price and the
price paid "y the consumer. 8orking out the cost price of milk under field
conditions is a comple su"ject any pricing system follo!ed should "e
*3 Remunerative to the producers
,3 Competitive to the local market prices.
03 6iscourage adulteration and promote quality consciousness fat an N> &9F 2*-- /3 K
2//./ N3 /--KNN **NN i.e Rs. **.NN per kg.
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#he advantages are
9o discrimination against co! or "uffalo milk as co! milk is reasona"ly
priced due to consideration of &9F contents !hich is !ell compara"le to that
of "uffalo milk.l
PRICING ON E5UIVALENT FAT UNIT BASIS
In this method the &9F unites are converted into equivalent fat units
inproportion to the relative
market prices of fat and &9F. #he &9F is
value at ,0 units of fat. For eample < #he "uffalo milk testing /> fat and
N > &9F
#he total num"er of Fat units / K N , 0. /K/ *,
If the fat price is Rs. *--) than the cost of *-- kg ofmilk
*-
-
*, *,--
1r Rs. *, per kg of milk.
#his method !ill leave the same advantage of t!o access pricing system.
9.: PRINCIPLES INVOLVED IN PRICING OF MIL@ PRODUCTS
8hile finali4ing the price for milk products there are si steps to "e
follo!ed.
*. &electing the pricing o"jectives < 8hether the pricing o"jectives
should "e or profit oriented service oriented.
9ormally government agencies5 voluntary organi4ations or cooperative
"odies o"jective !ill "e service oriented !ith minimum profit5 !here asprivate people !ill aim on maimum profit.
For any producer aiming at reasona"le profit !ill have many advantages to
have in market for longer period !ith maimum percentage of market share.
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6etermining the demand < (y making market surveys the demand for
individual product can "e assessed. #he heavy demand product should "e
prepared. #he price of heavy demand product !ill "e high.0. Estimating the cost < #he cost of the product at !hich it can "e
marketted can "e calculated as follo!s
a3 Cost of ra! materials used for the preparation of the product i.e.
milk5 sugar5 spicies5 salt etc.5
"3 Cost of processing the product< 9ormally in dairy industry the
c3 Processing costs !ill "e around ,-> of cost of ra! Packing cost depending upon the demand.
+.. Analysis of competitors price and offer < #he price of product should
"e competiative and attractive compared to competitors product. &ome times
etra quantity of product is offered !ith the same prices 2Add *-- gms !ith
-- gms of product3 "y competitors. #hat shoul7 also "e taken into account.
. &electing a price method
i.e. %arket K
%arket ) price methods.
%arket -
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&electing the final price < After deciding the a"ove factors the final price of
the products may "e arrived.
For any product price fiation.other factors !ill also influence like.
*3 &eason < 6uring summer5 demand for flavoured milk5 "utter milk5 Ice
cream5 kulfi !ill "e
enoromosly increased. &o the price of fast moving products in summer can
"e increased.
,3 Area of marketing < If the income of people is high5 their purchase !ill
"e
more.
,. PLANNING FOR MIL@ COLLECTION AND
TRANSPORTATION ROUTES'
For efficient collection of milk5 certain pro"lems arising at the collection
centre should "e solved. #he various pro"lems faced at the collection centres
are
*. Producers having vested interest ) some persons !ill try to influencethe staff and get undesira"le things done to save their personal interest. #his
should not occur.
,. &ome persons !ill supply adulterated or su"standard milk. #his should
"e discouraged.
0. &trict timings for milk procurement ) &ome producers !ill supply the
milk very late5 the society !ill not receive it resulting a direct conflict "et!een
the producers and staff. #his can "e sorted "y eplaining the farmers a"out thedifficulties.
+. &ome producers !ill think that sample of milk dra!n is an etra
quantity of milk !hich is not paid for. #his can "e eplained to the farmer that
all the samples are polled and sold !hich is distri"uted to all mem"ers as
"onus.
. &ome farmers due to many reasons !ill supply evening milk in thenet morning and morning milk in the evening !hich causes curdling of milk
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&ome staff mem"ers !ill not follo!ing the timings for milk collection5 so
that the procedures !ill have to !ait for hours together and loose their
interest on society. %aintenance of the time "y the staff is essential for
improving the milk procurement.
#ransportation of milk to the processing centre or chilling centre !ill "e
undertaken "y the union. &ome societies !ill not have proper roots5 itHs the
responsi"le of the society to transport the milk from the collection centre to
the near "y truck pick)up point. In some societies there !ill "e transportation
root through that village5 "ut the collection centre !ill "e interior5 in such
case also it is the responsi"ility of the society.
At union level different roots are planned to get the milk from differentplaces to the processing plant. Each root !ill "e planned in such a manner
that it !ill go through all the society villages or atleast nearer to the societies.
#he roots are so planned that if any damage to the road or traffic an
alternative road is availa"le to the processing centre.2#heH5 root map should
"e supplied in advance to all the societies so that they can plan for amnica"le
pick)up points. #he length of the road should "e such that from the Lstarting
point of the milk collection5 it reaches the processing or chilling centre !ithin
reasona"le time so that the milk may not get spoiled and fit for processing3
#he transport vehicles !ill deliver the empty cans for net collection and
lift the can !ith milk. In case of any "reak to the transporting vehicles an
alternative vehicle or atleast the other route vehicle may "e diverted.
,./ MEASURES TO ENHANCE MIL@ COLLECTION DURING
LEAN SEASON.
6uring rainy and !inter season5 there !ill "e5 lot of green5 roughages!hich !ill help in enormous milk production5 !here 50s in summer theH most
of the5 fieldsHincluding gra4ing lands "ecome drylnagreen fodder !ill "e
availa"le adversely affecting the milk production. %oreover no farmer !ill
plan to calve the animals just "efore or during5 summer5 !hich !ill adversely
affect the lactation yield. %ost of the co!s !ill "e in dry or late Qlactation or
late lactation !ith pregnancy. Recent studies indioate that the milk production
during summer season !ill "e decreased5 "+A> of the milk production
during rainy and !inter seasons. #he summer season in
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in !hich lo! production of milk is called lean season and flush season !hen
high milk production eists.
As the output of milk production is decreased5 the demand !ill "e as such
for the milk5 there !ill "e lot of competion for the collection of milk. #hecompetitors of milk processors !ill start their o!n strategies to get maimum
share of milk collection "y any dairy in lean season. #he
follo!ing are the some of such steps.
*. #he milk production during flush season !ill "e surplus5 the collection
centres are una"le to collect full quantity due to varied reason. #he procesers
should regularly collect full quantities of milk from those producers !ho !ill
"e faithful and supply full. quantity of milk to him during lean season. #he
producers are also remem"er the collection centers5 !ho has helped them
during flush season. &ome processors even declare milk holidays once in a
!eek5 or so during flush season5 !hich !ill cause economical loss to the
producers. If farmers are tackled !ell during flush season5 they !ill inturn help
"y giving !hole quantity of milk during lean season.
,. Fiing of high price or giving "onus or etra payments for the milk
supplied during lean season !ill also improve the milk collection. As the level
of production drops during summer and also most of the dairy animals in dry pregnant conditions5 the cost of the milk production !ill generally high during
summer season. #o compensate this high cost of milk production5 the
processers should enhance the purchase price of milk.
0. Advance payment prompt and regular payments for the purchased
milk "y the collection centers !ill definitely improve the milk collection
during summer.
+. &upply of inputs like concentrate feeds5 fodder seeds5 fertili4ers A.I
facilities to the producers in advance and adjusting the cost for the price of
milk collected.
. &atisfying the producers "y eplaining a"out the cunning nature of
competitors !ho !ill give high price of milk during lean season. #he
collection center people should eplain to the producers5 that the competitors
!ould not collect the milk during flush season.
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Especially during festival occasion5 children school reopening5 marriages
time farmer need of money and they may come for
center people5 "y supplying milk)during lean season5 if they give any finance
to them. Any processors should make advance payments during the a"ove
occasions to attract the producers.
;. #raining programmes should "e conducted on management of animals
during summer season !ithout affecting the milk production.
=. #he collection centre persons should respect customs5 of the loca
people and they should participate in a various social and cultural activities o
the village so that the farmers think that these are one among them and definitely
they sell milk to them only.
N. 1ut of their profits5 the processors milk collection centre person
should spent certain portion for social activities in the village5 i.e. laying o
repairing of roads5 construction of school "uildings. %aintenance of parks
donations to temples5 or donation to any religious other functions !ill hav
effect on milk collection.
*-. %ilk competitions5 "ull competitions5 calves and other groups o
animal competition regularly is the village !ill also increase the faith in the
villagers.
In addition to the a"ove encouragement points5 the processors collection
centre people should not do the follo!ing things.
a3 cheating the producers "y taking etra quantity "y manipulating the
!eights and measures.
"3 &ho!ing less readings of fat and &9F levels in the milk.
c3 8rong calculation in the price fiation of milk.d3 ?tili4ation of money for personal use and delaying the payments to the
producers.
e3 9ot paying the "onus after the year.
f3 9ot "othering a"out the collection of milk during flush season.
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It !as taken up in August5 *N,. ?nder the scheme a Okey village "lock
consists of one AI centre along !ith four key village units attached to it.Each
key village unit is a compact area of contiguous village having a population o
a"out -- co!s and or she "uffaloes fit for "reeding and milk supply. &election
of pedigree "ulls5 proper administration and technical organisation consisting o
one A&5 one milk recorder and three stockmen had "een provided for every
centre.3
6uring the third five year plan the '& !as considered to "e the main
programme for I6CP. #he main activities are
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*. #o intensify the construction programme in the key village area
,.
Etending the P#& to the 1ngole "reed inAndhra
Pradesh
and
'ankrej "reed in Dujarath. 2P#& ) Primary #esting
&cheme3
0. Esta"lishing "ull)rearing farms
+. 6evelopment of gra4ing areas "y setting up t!o fodder "anks and
also a grass land and Research Institute.
I#2i Ca##* D*!0+# P%!#2 ;ICDP2)
6uring the third and fourth five year plan it gained its significance "y its
activities such as
2i3 Formation of 966(
2ii3 Esta"lishing progeny testing farms )I plan
2iii3 Esta"lishing fro4en semen stations ) I plan
2iv3 Institute for (uffalo Research ) I plan
2v3 Em"ryo transfer technology). II plan.
P%!/%22 Ri7
(y the end of *N/5 there !as an a!areness a"out the success and failures of
the DovernmentHs o!n programme. #he revie! of a"ove revealed the follo!ing.
P%!/%22 Ma& U&% - Ya% 0*a2.
) 6airying acquired national)level recognition.
) Concept of planned approach !as introduced at all the levels.) 1rgani4ed marketing !as adopted "y private5 pu"lic and cooperative
sectors.
) #he multi)national introduced ne! milk products.
) #o overcome the economic "arriers5 toned milk5 !ith less fat and at
comparatively cheaper price5 !as formulated.
) India started developing its o!n cadre of trained technical personnel
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#he concept of intensive cattle development !as introduced.
U"!%#3a# T%&2
(esides a"ove contri"utions5 some negative effects !ere also o"served aslisted "elo!.
) moderni4ation and planning of dairy industry !as consumer oriented.
) the package of inputs required for enhancing milk production !as 5 lef
in the hands of &tate Animal Gus"andry 6epartment !ithout :illy correlation
!ith milk industry. #hose inputs hardly reached the producer. #his made dairy
fanning an unattractive preposition for rural milk J producers as they !ere to
"ear entire "urden of maintaining the milch animal.
) the private city d!ellersduhias eploited the consumer due to
increased demand as a result of industrial development.
) Cattle colonies5 housing large num"er of good cattle and "uffaloes
"rought from the home tracts got esta"lished to meet cities demands.
%aintenance of these animals in "ig cities !as a pro"lem5 especially in dry
periods. #he "est animals thus started finding !ay to slaughter @ houses5 once
these !ere found uneconomical. 1ld stocks !ere replaced < "y the ne! ones
from villages. #his anti)dairy cycle perpetuated.
. O0%a#i! F*!!&
1peration flood ) the Indian !hite revolution !as launched to over come
the a"ove mentioned unhealthy trends. It is designed to raise milk L producerH
income "y organi4ing them into cooperatives and eliminating f middlemenJ to
increase milk production in rural areas creating a flood of milk to meet demand
on a regular year)round "asisJ and to create a. self)sufficient dairy industry in
India.
1peration Flood I !as launched in *N;-5 follo!ing an agreement !ith the
?nited 9ations 8orld Food programme. #he European Economic L Community
!as also closely associated !ith 1peration Flood I provided much of the food
aid to the 8orld Food Programme.
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#o launch 1peration Flood I and finance projects undertaken !ithin its
frarne!ork5 the 6elhi Dovernment set up the Indian 6airy Corporation M 2I6C3
in *N;-. #he actual implementation of the various projects is left to . the village
cooperative societies and milk unions !hich o!n dairies at 5 district level.
O(#i2 !" O0%a#i! F*!!& I
a. #o increase the capacity of milk processing facilities.
". #o change ur"an markets from traditional milk supplies to modern dairy
milk supplies.
c. #o make provision for the resettlement of city "ased cattle in rural areas.
.
d. #o develop long distance milk transport and storage facilities.
e. #o develop Anand pattern of milk procurement system.
f #o improve dairy farming standards.
O0%a#i! F*!!& II
1peration flood II !as started in April *N=* and ended in %arch *N= !ith the
epressed intention of creating a via"le dairy industry to meet IndiaHs needs in
milk and milk products.
IndiaHs 8hite Revolution has not only received support from the European
Community and the 8orld "ank5 "ut also from a num"er of 8estern Dovernments
the ?nited 9ations food and Agriculture 1rganisation 2F.A.135 the ?nited 9ations
ChildrenHs Fund 2?9ICEF3 and European 9D1s such as the (ritish Relie
Agency 1SFA%. It has also "een regularly evaluated over the years.
:. IDA A22i2#& Dai% P%!#2
#he !orld "ankHs assistance to dairy development started !ith the coverage of
'arnataka5 %adhya pradesh and Rajasthan. #he project comprises of
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i. esta"lishment of a"out ;,-- 6C& and *, milk producerHs unions.
ii. Important and multiplication of pure "red eotic "reeding stock and an
associated A.I. programme of cross"reeding native cattle !ith high producingeotic "reeds. Provisions of etension programme to encourage production o
fodder5 mied farming and improved animal hus"andry practice.
iii. Construction of *, dairy plants and cattle feed mills.
iv. Esta"lishment of one regional diagnostic la"oratory and a plant fo
production of "iological veterinary vaccines.
v. Provisions of a training centre for each union.
O(#i2 !" O0%a#i! F*!!& II
a3 #o cover *- million milk producer families in rural areas.
"3 #o create 9ational %ilk Gerd of *+ million cross)"red graded
"uffaloes
c3 #o strengthen national %ilk and "y linking milk supply and demand
centres.
co!s and
d3 #o construct a "ase structure for 9ational 6airy Industry.
e3 #o increase percapita consumption of milk products at *++ gms day
O0%a#i! F*!!& III
1peration Flood III !as launched in April *N= to run until %arch *NN-.
#he results achieved in 1peration Flood ** justified the confidence faced "ythe Dovernment in farmerHs o!n organisations as instruments of dairy
development and led to the initiation of 1peration Flood III !hich !a
implemented5 covering most of the Anand pattern milk sheds of the country.
O(#i2 !" O0%a#i! F*!!& III
a3 #o increase the coverage of milk producers.
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#o esta"lish an additional *5-- village %ilk co)operative
societies in *;0 Anand pattern milk sheds as constituents of
the
c3 #o increase milch animals in co)operative am"it.
d3 #o strengthen 9ational milk Drid.
e3 #o "etter utili4ation of technical inputs in co)
operation !ith state governments.
f3 #o develop dairy co)operatives o!n system of
improving health5 environmental sanitation5 nutrition etc.5
Na#i!a* Dai% D*!0+# B!a%& ;NDDB)
#o replicate the Anand pattern throughout the country
9ational 6airy 6evelopment (oard 2966(3 !as esta"lished in
*N/. #he dairy development programmes are "eing
implemented through a net!ork of milk co)operatives organised
on the model eisting in Dujrat state namely A9A96 pattern
dairy cooperatives. #he three tier structure of the dairydevelopment
programme are