Chapter No. 04 Milk Production, Processing, Packaging...
Transcript of Chapter No. 04 Milk Production, Processing, Packaging...
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Chapter No. 04
• Introduction.
• Milk Production.
• Milk Processing.
• Dairy by-Products.
• Milk Packaging.
• Milk Storage.
• Milk Distribution.
• Marketing of Milk.
• Cooperative Marketing.
• Background Of Milk Marketing.
• Marketing Environment.
• Shifting from one marketing system to another.
• Role of Cooperative In Dairy Industry.
• Milk Trade.
• Dairy Technology.
• Dairy Education and Training.
• Impact on Rural Environment.
• An Overview of Beed District.
Milk Production, Processing, Packaging,
Storage, Distribution and Marketing.
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Introduction:
Most of the dairy plants in the Government, Cooperatives and
Private Sector produce almost similar dairy products like varieties of
milk, butter, ghee, skimmed milk powder and whole milk powder.
There is immense scope for the broadening of the products range and
some of the products, which are likely to have considerable demand
in the coming decade, have been identified. The cheese market,
presently valued at about Rs.80 crore is growing at about 9 per cent
annually. There are more than thousands of varieties of cheese,
which have been listed out of which cheddar; mozzarella, gouda and
processed cheeses are being manufactured in India. This segment
alone commands 5 per cent of the share in the cheese market and
other area is fermented milk products. Dahi even though is Rs.15,000
crore markets, the share of the organized sector is only around 10
per cent.1 This product has immense potential for growth. Varieties
of milk shakes are also increasing wherein milk and fruit pulp are
mixed in different proportions to produce different beverages. Some
of the milk and fruit based beverages which are likely to have
demand are a combination of milk with mango, banana, sapota,
strawberry, papaya, etc. Some of these beverages can also be
produced in dehydrated form and can be an excellent health food.
There are varieties in traditional milk based sweets,
manufactured in the country. The market size is around
Rs.12,000crore. However, there are very few nationally known
brands in this category. Many of the organized dairies are involved in
the manufacture of varieties of milk based sweets: pedha, paneer,
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shirkhand, etc. These are now restricted to certain areas only but can
go national. As the world is getting integrated into one market,
quality certification is becoming essential in the market. There is
scope for introducing newer plants adopting newer processes by the
dairy industry in the country. Packaging of dairy products is also
another very promising area. Foreign investments can take place in
manufacturing dairy processing equipment, fruit packaging
equipment and equipment for biotechnology related dairy industry.2
Dairy industry in India is also unique with regard to availability
of large proportion of buffalo milk. Thus, India can focus on buffalo
milk based specialty products, like Mozzarella cheese, tailored to
meet the needs of the target consumers. If India has to emerge as an
exporting country, it is imperative that we should develop proper
production, processing and marketing infrastructure, which is capable
of meeting international quality requirements. With the trade
liberalization, despite the attempts of Indian companies to develop
their product range, it could well be that in the future, more value-
added products will be imported and lower value products will be
exported.3The industry has to prepare themselves to meet the
challenges. A comprehensive strategy for producing quality and safe
dairy products should be formulated with suitable legal backup.
Some areas of Indian dairy industry can be toned up by the evocation
of differentiated technologies and equipment from overseas. These
include:
1. Raw Milk Handling: The raw milk handling needs to be
elevated in terms of physicochemical and microbiological
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properties of the milk in a combined manner. The use of
clarification and bacto-fugation in raw milk processing can aid
better the quality of the milk products.
2. 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 good manufacturing
practices and Hazard Analysis Critical Control Points would
help produce milk products adapting to the international
standards.
3. 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.
4. 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.
Packaging is the technique of using the most appropriate
containers and components to protect, carry, identify and
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merchandise any product. It constitutes a vital link between the
manufacturer and eventual consumer for the safe delivery of the
product through the various stages of manufacture, storage,
transport, distribution and marketing. In spite of all the efforts taken
to produce high grade processed milks or manufactured dairy
products, unless they are delivered in a fresh, sound and convenient
form to the consumer, they are likely to be rejected, thus causing
enormous wastage. This loss can be minimized to a great extent by
adequate protective packaging to withstand the hazards of climatic
changes, transportation, handling, etc.
Milk Production:
In India near about 70 million households are involved in the
production of milk. These are mainly small and even marginal cattle
farmers, but also labourers without land, who have at most two milch
cows or buffaloes. Of these households, 11 million can be
characterized as cattle farmers. These are dairy cattle farmers with
an average of two cows or buffaloes producing between 10 and 12
liters of milk per day. They are organized into no fewer than 1.10
lakh village dairy co-operatives or Dairy Co-operative Societies
(DCSs).4 These co-operatives set up across India following the Anand
Model collect the milk from their dairy farmers and cool it at 4-6
degrees Celsius. Some of this unpasteurized milk they sell to the
village residents. The rest is collected by the travelling milk
collectors, who take the milk to the Co-operative Milk Unions for
processing. This industry is organized on a state by state basis. This
approach connects the predominately small dairy farmers via their
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co-operative system directly with the many hundreds of big cities in
India. India also has various privately owned dairy companies. They
procure their milk from both milk collection centers in the villages.
These traders are responsible for the quality of the milk they supply.
The state of Maharashtra is a case apart because milk production
there is subsidized by the Government and the government is
responsible for the milk collection. The state pays the dairy farmers a
higher price than is paid by the state’s processing industry. Efficiency
is a very important factor of productivity growth especially in
developing economies like India, where resources are scarce and
opportunities for developing and adapting better technologies have
lately started dwindling. It is still possible to increase production and
productivity of milk in Maharashtra and even in India by improving
efficiency. Efficiency of any dairy firms is measured in terms of its
relative performance.
Of India’s total milk production, no less than 65 per cent is
consumed unpasteurized. Of this percentage, 44 per cent is
consumed in the rural area in which it is produced, meeting the
needs of cattle farmers and their families and sold, through the
village co-operatives, to others with no cows or buffalo. The
remaining 21 per cent of the unpasteurized milk is sold to urban
consumers. Of the 35 per cent of the milk production that is
pasteurized, 22 per cent is processed by the unorganized dairy
sector.5Most of this milk is used to make sweets. This is done in
‘halwai’ workshops that are usually located beside a shop. Here,
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sweetened condensed milk, with various additives is produced in
accordance with the region’s traditions, religion and flavors.
In India’s predominately tropical and subtropical temperatures
sweets like chocolate are highly perishable. Thanks to the rich
culture of festivities, the consumption of condensed milk sweets,
which are usually eaten fresh and are also perishable, has surged.
This means that only 13 per cent of the Indian milk procurement is
processed in the co-operative and privately owned dairy industry.
The majority of this, 8 per cent of the total milk procurement, is
processed into packaged or loose pasteurized drinking milk for
consumers in the major cities. The other 5 per cent is used to make
products with added value, such as milk powder, ghee, ice cream,
cheese and fresh milk products.6
The demand for quality dairy products is rising and production
is also increasing in many developing countries. The countries which
are expected to benefit most from any increase in world demand for
dairy products are those which have low cost of production.
Therefore, in order to increase the competitiveness of Indian dairy
industry, efforts should be made to reduce cost of production.
Increasing productivity of animals, better health care and breeding
facilities and management of dairy animals can reduce the cost of
milk production. The Government and dairy industry can play a vital
role in this direction.7
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Milk Processing:
The milk processing industry is small compared to the huge
amount of milk produced every year. Only 10 per cent of all the milk
is delivered to some of the dairy plants. A specific Indian
phenomenon is the unorganized sector of milkmen, vendors who
collect the milk from local producers and sell the milk in both, urban
and non-urban areas, which handles around 65-70 per cent of the
national milk production. In the organized dairy industry, the
cooperative milk processors have a 60 per cent market share. The
cooperative dairies process 90 per cent of the collected milk as liquid
milk whereas the private dairies process and sell only 20 per cent of
the milk collected as liquid milk and 80 per cent for other dairy
products with a focus on value-added products.8The main concern
with milk powder is that it is largely affected by the atmospheric
conditions and hence has to be stored / packed carefully. There are
some techniques that can be employed to achieve a higher level of
safety of the product at reasonable cost.
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Flow diagram of milk processing
RAW MATERIAL (Milk)
Dump Tank
Clarification
Cooling and storing
Preheating
Standardization
Liquid milk (Optional)
Cream Butter
Homogenization
Ghee
Pasteurization Packing Cold storage Distribution Whole milk (6%fat) Standard Milk (4.5% fat) Toned Milk (3% fat)
Double toned milk (1.5%
fat)
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Dairy by-Products:
A dairy by-product may be defined as a product of commercial
value produced during the manufacture of a main product. In recent
years there has been wide spread and increasing interest throughout
the world in creating newer channels of utilization for the by-
products of the dairy industry. Conversion of edible substances into
non-food items is not ordinarily justifiable especially in countries
where there is an overall shortage of milk supplies. It has always
been realized that economic disposal of by-products is an essential
perquisite to profitable dairying.9
Main product By-product
Cream Skim milk
Butter Butter milk
Ghee Lassi, Ghee residue
Chhana/Paneer, Cheese, Casein Whey
By-products and names of food products made are given below:
By-product Food products made
Skim milk Flavored milks
Sterilized flavored milk
Cultured butter milk
Acidophilus milk
Bulgarian buttermilk
Concentrated sour skim milk
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Plain condensed skim milk
Sweetened condensed skim milk
Low-lactose condensed skim milks
(Frozen condensed skim milk)
Dried skim milk
Cottage cheese/Bakers' cheese/Quarg
Gammelost /Sapsago
Casein (edible)
Buttermilk Condensed buttermilk
Whey Whey beverage
Yeast whey
Sweetened condensed milk
Whey paste
Lassi Beverage
Ghee - residue Toffee or paste
Ghee: Ghee is a clarified butter fat prepared from cow or buffalo milk.
The largest ghee producing states are U.P, A.P, Punjab, Rajasthan,
M.P, Bihar, Hariyana etc. The production of ghee is higher in winter
and lower in summer. Cream accumulated after few days is usually
taken in a suitable vessel and heated and stirred on a low flame to
remove the moisture contain. After removing moisture contain
further heating is stopped then cooling is done. On cooling, when the
residue has settled down the clear fat is decanted into suitable
containers.
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Lassi: Lassi, also called chhas or matha, refers to desi buttermilk,
which is the by-product obtained when churning curdled whole milk
with crude indigenous devices for the production of desi butter
(makkhan). It appears that 50-60kg. of lassi are produced for every
kg of ghee. Lassi contains appreciable amounts of milk proteins and
phospholipids.
Buttermilk:
a. Condensed buttermilk: Also known as semi-solid buttermilk,
this is usually sweet cream buttermilk which has been ripened
and condensed in much the same way as concentrated sour
skim milk. Alternatively, sour-cream buttermilk may be used
without ripening it, but the acidity (lactic) of the buttermilk
prior to its being condensed should be greater than 1.6 per
cent. This will ensure in the finished product 5-6 per cent
acidity, which is necessary for long keeping quality. Either sour
whey or an organic acid (such as lactic, acetic, citric or tartaric)
may be used to increase the acidity of buttermilk.
b. Soft cheese from buttermilk: The production of soft cheese
from creamery buttermilk may be outlined as – fresh
buttermilk, obtained by churning sweet-cream butter, is
admixed with fresh skim milk in the proportion of 1:1. The
mixture is pasteurized at 650C for 20 minutes, cooled to 350C,
inoculated with lactic starter @ 10 per cent and allowed setting
for 3 hours. The curd is cut with standard cheese knives and
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the curd cubes subjected to a cooking process during which a
maximum of 400C is reached in 15-20 minutes. The curd cubes
are then collected in a muslin cloth and pressed overnight,
preferably inside cold store (5-100C), to remove excess
moisture. The pressed curd, which has a rather low keeping
quality, can be utilized either for direct consumption after the
addition of sugar @ 15 per cent, or in the manufacture of
processed cheese up to 10 per cent of raw cheese.
Milk Packaging:
Packaging means placing a commodity into a protective
wrapper or container for transport or storage. The main function of
packaging is to protect the product from physical damage and
environmental changes during transit. The packaging materials
should also present deterioration of the product quality as a result of
exposure to sunlight. In most cases, the package should be non-
flexible and firm enough to protect to product and withstand
rigorous of transportation and distribution. Aseptic technology is the
biggest breakthrough in the field of food processing since
pasteurization. Aseptic packaging offers benefits no other kind of
packaging does. The Reputed institute of food technologist considers
the aseptic processing and packaging of liquid foods to be the most
important food science advancement.10
The importance of packaging as a means of promoting exports
has been well recognized in recent times. Packaging is today an
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essential part of any industrial activity and an integral part of the
modern marketing complex.11As a result of socio-economic changes,
packaging has become increasingly important in the scheme of
distribution. The criteria by which a package is judged are usually the
following –
• It must protect and preserve the commodity from the time it is
packed to the point of consumption;
• It must be suitable for the chosen selling and distribution
system;
• It must be attractive to the consumer, easy to open, store and
dispose;
• It must cost no more than the market can bear.
The glass bottle still continues to be the most frequently used
package for milk in the world. Rigid plastic bottles are also in use for
milk and liquid milk products. Although the glass milk bottle is still
the traditional packaging medium for retail milk distribution, single-
service paper/plastic containers are increasingly being adopted for
the same purpose. A survey has shown that in some European
countries they have captured two-thirds of the market. A beginning
in this field has also lately been made in India. As far as milk
packaging is concerned, paper is a carrier for a water-proof layer of
either polyethylene or wax. The provision for 5 to 10 per cent of
synthetic fibers is said not to influence the printing or folding
capacity of the paper, but rather to provide better wet strength.
Dominated, in milk packing, by polylefines, used singly or blended to
offer a wide range of materials, plastics have superseded paper in
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recent times. The polyolefines of interest are coating grades for
cartons, film grades for sachets and extrusion/blowing grades for
bottles.
Cartons:
This is a common package for milk; also used for liquid, frozen
and coagulated milk products. They are made of combinations of food
grade paper and wax or plastics. The distribution advantages of
cartons are: maximum space utilization in vehicles and storage,
ability to carry attractive printing, and convenience for the purpose
of stacking milk on super-market shelves. The carton systems in
common use are: Perga (U.K); Pure Pak (USA); Zupack, Blockpack
(Germany); and Tetra Pack (Sweden).12 When filling the cartons,
either pre-formed or pre-cut blanks may be used. Pre-formed cartons
are supplied in a fully erect form ready for filling; in the pre-cut
system the blanks are supplied in a knocked down shape and the
final carton is set up, formed, filled and sealed on one machine.
Sachets:
Since it is difficult to pour from sachets, they are usually
equipped with a jug. The sachet systems in common uses are: Poly-
pack, Berto-pack (Switzerland); Finn-pack (Finland); Milk Pack, Rota-
pack (Germany); and Pre-pac (France). Sachet filling of milk usually
follows a form/fill/seal system. The sachets are formed from a reeled
film over a shoulder and tube-forming sealer. Their size is changed
simply by pushing a button without stopping the machine. The
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relative advantage and disadvantages of paper/film packaging of
milk over bottling are given below:
Advantages:
• Light in weight, easy to handle and no danger of breakage.
• Distribution costs lower.
• Occupies less space, lower pay-load due to light weight, no
collection of empties.
• Bottle-washing costs eliminated (Saving in equipment,
detergents, steam, etc.).
• Tamper-proof,
• Effective sales message can be printed.
• Less noisy (during filling, sealing and transportation).
• No exposure to sunlight.
• Filling machinery compact and occupies much less space.
Disadvantages:
• Costs higher per unit milk distributed.
• Product not visible.
• Difficult to remove cream.
• Inspection of milk not possible.
• Regular supply of special paper/film essential.
• Not so easy to open.
• Some cases of leakage may occur.
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The packaging industry in developed countries has made
tremendous advances. In contrast, the packaging industry in many
developing countries such as India is still in its infancy. The benefits
of adequate and functional packaging seem to have touched only the
fringe of the population.
Milk Storage:
Modern milk plants hold both raw and pasteurized milks for a
much longer period than before. Normally the milk storage capacity
is equal to one day’s intake. This allows a more nearly uniform work-
day for processing and bottling operations with less dependence on
the time for receiving raw milk. Storage tanks are used in Milk Plants
for the storage of raw, pasteurized, or processed products, often in
very large volumes. Because of the longer periods of holding, storage
tanks are among the most important items of equipment. They must
be designed for ease in sanitation, preferably by the circulation-
cleaning method. In addition, the tanks should be insulated or
refrigerated, so that they can maintain the required temperature
throughout the holding period. Agitation should be adequate for
homogeneous mixing, but gentle enough to prevent churning and
incorporation of air. The Objectives of storage are to maintain milk at
a low temperature so as to prevent any deterioration in quality prior
to processing/product manufacture; to facilitate bulking of the raw
milk supply, which will ensure uniform composition; to allow for
uninterrupted operation during processing and bottling; to facilitate
standardization of the milk.
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Types of Storage:
I. Insulated or Refrigerated: In the former, there are 5 to 7.5 cm.
of insulating material between the inner and outer linings; in
the latter, the space between the two linings is used for
circulation of the cooling medium. Another variation of the
refrigerated type is the cold-wall tank.
II. Horizontal or Vertical: While the former requires more floor
space and less headspace, the latter requires less floor space
and more headspace. Modern circulation cleaning methods
have made very large vertical storage tanks practical.
III. Rectangular, Cylindrical or Oval: Of these, the first suffers
from the disadvantage of having dead corners during agitation,
while the other two do not.
IV. Built for gravity flow, air-pressure or vacuum operation:
The first is the most common. However, air pressure is
sometimes used to evacuate the product. This requires special
construction of the storage tank for greater strength than
necessary for normally operations under gravity flow.
V. Location: In one system, the storage tanks are located on an
upper floor. The milk is pumped from the receiving room to the
floor above. It then flows by gravity to the pre-heater, filter or
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clarifier, pasteurizer, cooler and bottling machine. In another
system, the milk is pumped from the storage tanks through a
pre heater and filter into the pasteurizer. Hence it may flow by
gravity to the cooler, or it may be pumped to the cooler while
hot.
Milk Distribution:
Milk is procured from the farmers at the village cooperative
societies and is then sent to the taluka/district cooperative dairy
union by trucks in cans or by tankers from the bulk coolers located at
the villages. It is weighed and tested for fat at the dairy docks and
then the milk is pasteurized. The dairy then converts the milk into
liquid milk for sale and various milk products as per the product mix
provided by the state-level Dairy Federation which markets the
products of all the dairies in the state. Surplus milk from the dairies,
after meeting the local liquid milk requirement and converting into
various products, is then sent to the Mother Dairies situated in metro
cities by road milk tankers or rail milk tankers. Liquid milk is
generally sold in urban centers in plastic pouches, which is packed at
the district dairies. In metros, milk is also sold through bulk vending
booths, where consumers can obtain a measured quantity of milk by
inserting a coin in an automatic machine.
Distribution of milk is the last or final stage of the market milk
industry. Others are preparatory to placing the product into the
hands of the consumer.13 The quality of the product alone will not
assure its wide distribution, which should be planned and executed
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intelligently. Distribution facilities consist of; the physical equipment
and personnel required for transporting the product from the milk
storage rooms to the consumer/retailer, sales promotion personnel
and advertising. A successful distribution programme requires;
• A product of high quality.
• An attractive package.
• Neat and courteous route salesmen.
• Delivery equipment of pleasing appearance.
• Efficient use of men and equipment.
• Effective advertising.
Organization: This varies with the size and the type of business. In a
small plant, the same drivers and trucks may deliver both wholesale
and retail goods. In larger organizations, wholesale and retail
distributions are usually handled by separate personnel and
equipment. Wholesale routes handle larger volumes and have fewer
stops than do retail routes. For economical operation, the truck
should be utilized for a maximum number of hours per day for milk
distribution.
Payment of salesmen: Three different methods are in use:
• Flat salary. Gives no incentive to sell more products, secure
new customers.
• Salary plus commission. Most satisfactory.
• Straight commission. Used when the driver owns the route and
equipment.
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Checking out: Different systems may be used for loading the trucks
in checking out the routes. The trucks must be loaded rapidly so that
the drivers are not delayed at loading stations. The principal systems
are:
• Loading directly from the storage rooms through one or more
doors.
• Using a long loading platform with conveyors from the milk-
storage rooms.
• Loading platform-trolleys in the storage room with orders for
the different routes. The platform trolleys are the wheeled onto
the loading platform and finally loaded into the delivery trucks.
(The first two systems are suitable for medium size and large
plants, the third for small ones).
This consists of verifying the driver’s count of empty bottles and
unsold goods and conveying the bottles to the washers or to storage.
The driver usually places the bottles on the platform, conveyor or
platform-trolley.
Sales outlets: These include (for both wholesale and retail sales) the
following:
o Home delivery.
o Milk booths or distribution depots.
o Stores.
o Soda fountains.
o Coin vending machines.
o Automatic dispensers.
o Factories, hospitals, jails, restaurants, schools, etc.
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o Lunch counters.
This is usually based on past experience, taking into
consideration holidays, fairs and festivals, special events, etc.
Frequency of distribution: Due to highly changeable temperatures
during most seasons and the lack of refrigeration facilities at the
average customer’s home in India the milk has to be distributed twice
daily- morning and evening. In cold countries, one-time delivery is
usual.
Utilization of returned milk: Unsold milk presents a problem of
economic disposal. Under tropical conditions, as in India, the
returned milk should not be sent again for sale as liquid milk since
exposure to high temperatures during its inward and outward
journeys subject it to quality deterioration and hence may cause
consumer complaints. The unsold milk can be given for separation or
utilized for preparation of dahi, etc.
Systems of collection for the payment of milk: These are credit, cash
or advance payment (coupon/ monthly card).
Marketing of Milk:
Marketing is an integral functional activity of all human being
in their day to day life. It is a body of knowledge capable of
influencing the development of individuals and also organization.
Presently marketing has occupied a predominant role in the process
of industrialization and in-turn emerged as a concept for the
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economic development of a country. Even in these days mostly
unorganized traders who turned milk trading into an exploitative
market, represent milk marketing. As the marketing innovation
evolved over time it lead to improvement of milk testing, increased
its staff, and developed a sense of competition and financial gain. At
farm and village level the technology, which developed, was the milk
testing units available with the agents.14 The changes in technology
such as establishment of milk testing units at agent’s level lead to
reduction of adulteration in the milk by the producers/suppliers.
Ultimately, the small holders developed confidence in the system as a
sustained milk supply to the agents. The micro credit system
developed informally, by the agents themselves, forced small holders
to remain in the system. The form of inclusion of small holders found
in the system was Chain segment meaning thereby that the role of
milk producers was primarily the milk production. There was no
formal participation in post-farm activities. However, there were
some informal activities such as informal interactions between the
producers and staff regarding training/guidance/information. The
milk producers were not participating in the management of the
supply chain.
The evolutions of the supply chain lead to the sustained
inclusion of small farmers. The establishment of quality standards
ensured better marketing of the processed milk. The small holders
had no problem of selling milk especially in winter season when
enough milk is produced. The major attribute that explains the
inclusions of small holders is the price that they receive from the
VMCC agents. The private agent pays at least Rs 0.50/liter more than
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the price agents/staff of other milk processing companies’ pay to
small-scale dairy farmers. Private Dairy owners do not provide any
technical or other assistance to the farmers, especially the small
farmers. This has serious limiting effect on the growth of small
farmers, as it seems that they will continue to remain small
subsistence farmers and would not have any chances or upward
growth in the chain. They might even be excluded as the concept of
VMCC is problematic. Since VMCC agent is not on the company’s
payroll, he is another intermediary who is content with his
commission and tries to meet his collection targets. On the face
value, the VMCC agents only get 0.50 to 0.75 Paisa per liter on the
milk collected. But since the farmers are not in direct contact with
the company, they might get cheated in terms of the price of milk that
they sell to the VMCC agents.
Cooperative Marketing:
The farmers take their produce to their village level Sale-
Purchase Co-operative Society. These societies ensure that the
produce is weighed correctly and the farmer gets a fair price for his
goods. These societies also ensure that deductions of loans extended
to the farmer under various schemes are made and the farmer
receives the balance amount speedily. There are also similar co-
operative sale-purchase unions at the Taluka level and the District
level. The District level co-operative unions join in the Maharashtra
State Co-operative Marketing Federation. Thus there is an elaborate
marketing set-up for marketing of agricultural produce of the
farmers.
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Background Of Milk Marketing:
In the study area predominantly three marketing options were
available for the dairy farmers. In the unorganized sector, private
vendors, and in the organized sector the dairy cooperatives and
integrated contract system were the options. The private system
refers to the system where an individual middleman purchases milk
from dairy farmers and in turn sells it to consumers. The system
works on an informal agreement with the farmers. On the other hand
cooperatives were organized such that dairy farmers voluntarily
associate themselves as members of the cooperative, on the basis of
equality for the promotion of their socio-economic wellbeing, i.e. Milk
Producers Co-operative Society (MPCS). While in the Integrated
contract system there is the association, co-ordination and
amalgamation of companies engaged in various stages of production
of a particular product or related products, so that there will be a
smooth flow of inputs and outputs, from one unit to other, leading to
an overall reduction in the cost of production of the final product. In
this study, integrated contract system means the association of
resources, co-ordination of dairy related activities, and amalgamation
of dairy production at varying levels in various stages of the
production up to marketing by a private firm. This system is also
referred to as "contract farming" and the farmer is referred to as
contract farmer.15
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Marketing Environment:
Marketing services are presently provided by the
Agricultural Marketing Boards, Milk Cooperatives and Federations
which are inefficient and politically oriented.16Many of these
cooperatives are not competent and are outdated. Very often they
end up in losses because of miss-management and ignorance. In this
process, the innocent farmers suffer heavily. Presently, only a few
Farmer’s Organizations are fairly successful because of their
professional approach in operating the business. The strength
of these organizations can be extended to other crops in different
regions. Development of village level farmers organizations which
can directly deal with reliable business houses or trade outlets
should also be encouraged. Private Industries can play a significant
role in strengthening such market oriented village level
organizations. In the district, several farmers groups involved in
milk marketing are able to independently hire the services of
veterinarians to avail of livestock breeding and health care
services, while the farmers in many other states are still dependent
on Government assistance for similar services. Such group activities
are able to sustain the development programme without external
assistance. Thus, motivation and training of the target groups to build
leadership through local organizations can play a vital role in poverty
alleviation and sustainable development in India.
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Shifting from one marketing system to another:
In the study area predominantly three marketing options were
available for the dairy farmers; unorganized private vendors, formal
/ organized dairy cooperatives and integrated contract system. A
majority of dairy farmers had shifted from one marketing option to
another. The rest of dairy farmers remained in the same marketing
option from the day they began commercial milk production. A major
shift from vendors to contract, followed by vendor to co-operative
and co-operative to vendor was noticed. Irregularity in payment and
stoppage of procurement by vendor system made dairy farmers shift
from vendor system to others. After the weakening of vendor- farmer
relationship and initiation of Milk Producer Cooperatives at the
village level, there has been a shift from vendor to co-operative
system.17 When the dairy sector opened for private investment
coupled with poor performance of cooperatives, farmers shifted
towards new marketing option the 'integrated contract system'.
Irregularity in payment, distant location of collection center and
inability to milk the animals were reasons for shifting back to vendor
from other marketing options. Prompt payments, sustainability of
marketing systems in business were major factors responsible for
retaining members and attracting new dairy farmers. Dairy farmers
with the experiences of various marketing options gave more value
to the prompt payment for the milk sold on comparing to milk prices.
Role of Cooperative In Dairy Industry:
Cooperative is an old human society. Cooperation in dairy
sector occupies prominent place in India as well as in Maharashtra.
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Dairy cooperative has completely changed the scenario of dairy
farming despite its complete failure in other sectors. Cooperation is
one of the economic miracles of the last century. In Denmark, the
cooperative movement entered the dairy Industry for the first time.
In 1982, when the Danish dairy farmers founded their first
cooperative dairy. In most parts of Holland, the cooperative
movement is traditionally very strong in the dairy sector. In USA
considerable section of the dairy industry is organized along
cooperative lines. In Norway, practically all dairies are owned by
producer cooperative organization. According to a study, New
Zealand, Sweden, Germany and U.S. where dairying is well advanced,
more than three fourth of the milk produced is sold through
producers cooperative.18
In India – in 1950 our cooperative dairies handled only 17 per
cent of the milk consumed in towns. In our country where majority of
the dairy plants are in the private sector, although our Government of
India as well as Planning Commission have laid down that dairying
should be developed along cooperative lines in preference to all
other systems. In fact, the field of Indian dairying is sufficiently
fertile, for cooperative principles to grow and flourish. The small
scale milk production on hundreds of scattered holdings situated for
from marketing centers, absence of good roads, the presence of a
large number of middlemen in the long chain of marketing, low
purchase price all these factors cry for cooperative movement in the
dairy field. Under the present system of exploitation by middlemen, a
farmer does not develop the financial interest in the whole business
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of production, processing and marketing of milk twice a day and
every day of the year.
Before rural dairy co-operative societies came into existence,
the milk business was being done by private traders only and there
was no money guarantee for the farmers. But after formation of co-
operative societies, when District Milk federation has started the milk
marketing in the cities like Mumbai, Pune, Kolhapur, Ratnagiri, the
farmers got assured of this milk business and have opted it as a
prime business. Today at village level, the milk business is flourishing
through co-operatives. In the districts of Maharashtra, there are
more than two or three dairy co-operatives. In Gujarat there is
one village-one society norm, which is not in Maharashtra. So there
are many small societies have grown up in villages of Maharashtra.
In India, the cooperative movement entered the dairy field in
the latter half of the 19th century with the formation of cattle
breeding cooperative societies. The societies maintained pedigree
bulls and pasture lands and advance loans for the purchase of good
milch animas. In the first half of the 20th century, three types of
cooperative organizations came up in the dairy sector. They were:
• Milk Producers Cooperative Societies.
• Milk distributors Cooperative Societies.
• Milk Consumers Cooperative Societies.
These cooperative are known to render valuable service to the
citizen. They checked pricing and maintained the quality of milk and
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milk products. The progress of Cooperative Dairy Union and
Cooperative Dairy Societies in Maharashtra shows in Table No. 4.01
and 4.02.
Table No. 4.01:
The Maharashtra State Co-operative Dairy Unions. (Rs. In Lakhs)
Sr. Item 1961 1971 1981 1991 2001 2003 2005 2006 2007
1 No. of Unions 19 46 90 71 65 67 85 87 95
2 Members (000) 20 96 161 243 46835 48661 48197 47195 51917
3 Share Capital 1 55 391 1166 4725 5637 8820 9028 9931
of which Govt. - 8 42 159 59 4810 32 37 41
4 Owned Fund 1 123 1150 4272 129980 22132 9833 10065 11072
5 Borrowing O/s 7 121 1007 3868 22709 13326 10018 10254 10254
6 Working Capital 10 345 2103 22663 1028514 133894 68808 70427 77471
7
Milk
Procured(Value 7 784 8541 20175 128578 303862 138020 141268 153395
8
Milk & Milk
Product
Sold (Value) 8 904 8831 35143 131110 207905 59687 65397 71937
9 Union in Profit 6 23 51 36 42 46 45 47 51
10
Amount of
Profit 0 12 29 148 13019 818 1266 1152 1270
(Source: Co-operative Movement at a glance - Co-operation & Registrar of
Co-operative Societies, Maharashtra State Pune.)
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Table No. 4.02:
The Maharashtra State Co-operative Dairy Societies.
(Rs. In Lakhs)
Sr. Item 1971 1981 1991 2001 2002 2005 2006 2007
1 No. of Societies 2021 7819 14284 22466 22782 26499 26881 30913
2 Members (00) 1263 7030 13101 15182 16359 1815861 1842038 2118343
3 Share Capital 62 288 3131 6594 12098 2416 2451 2820
of which Govt. 2 2 8 7 7 - 0.93 1
4 Owned Fund 76 598 6614 116119 15737 2585 2623 2885
5 Borrowing O/s 1 289 1827 13426 3468 3888 3944 3944
6
Working
Capital 314 1992 12950 1241321 127530 24897 25256 27782
7
Milk Procured
(Value 810 8531 35052 3234941 431816 109946 111531 128260
8
Milk & Milk
Product
Sold (Value) 841 9132 29914 3403403 184386 64954 67081 77143
9
Societies in
Profit 833 4091 6762 12267 12679 12617 14432 13710
10
Amount of
Profit 13 197 895 10758 2457 1231 1702 1616
(Source: Co-operative Movement at a glance - 41st Publications of Commissioner
for Co-operation & Registrar of Co-operative Societies, Maharashtra State Pune.)
Milk Trade:
The huge volume of milk produced in India is consumed almost
entirely by the Indian population itself, in a 50-50 division between
urban and non-urban areas. Increasingly, important consumers of the
dairy industry are fast-food chains and food and non-food industries
using dairy ingredients in a wide range of products. In spite of having
largest milk production, India is a very minor player in the world
market. India was primarily an import dependent country till early
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seventies. Most of the demand-supply gaps of liquid milk
requirements for urban consumers were met by importing
anhydrous milk fat / butter and dry milk powders. But with the onset
of Operation Flood Programme, the scenario dramatically changed
and commercial imports of dairy products came to a halt except
occasional imports of very small quantities. In the 1990s, India
started exporting surplus dairy commodities, such as SMP., butter
and ghee. The Agricultural and Processed Food Products Export
Development Authority (APEDA) regulated the export and import of
dairy products till early 1990s. However, in the new EXIM Policy the
Union Government has allowed free import and export of most dairy
products.
The major destinations for Indian dairy products are
Bangladesh (23.1%), UAE (15.4%), US (15.6%) and Philippines
(8.9%). In terms of products, SMP is the most important product
accounting for about 63% of total export volume, followed by ghee
and butter (11.7%) and WMP. Export figures clearly demonstrate
that the Indian dairy export is still in its infancy and the surpluses are
occasional. Indigenous milk products and desserts are becoming
popular with the ethnic population spread all over the world.
Therefore, the export demand for these products will increase and
hence, there is a great potential for export. On the other hand, there
has been a sharp increase in import of dairy products (especially milk
powders) after trade liberalization. India has recently concluded a
tariff rate quota to deal with US, EU and Australia on imposing
custom duty of 15 per cent on imports of SMP and WMP upto 10,000
tonnes and 60 per cent on imports beyond this level.19
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Dairy Technology:
Dairy farmers have achieved quantum jump in raising their
living standards through the use of dairy technologies the world over.
Technology has been a major factor for bringing changes in
agriculture, dairy, communication and other fields. The world is
being reshaped by technologies and telecommunication speed up
communication.20 Therefore day by day the world is shrinking into
global village. Technology is a tool or technique or method of doing
or marketing. As a method of increase the capacity of milch animal to
produce more milk by judicious application of following recognized
techniques of dairying are needed such as:
• Breeding: Mating animals of desired characters and selecting
male and female offspring’s.
• Weeding: Removing uneconomic, unhealthy and unwanted
ones.
• Feeding: In proportion to body requirements and production of
animals.
• Heading: Day to day care and management.
• Exposure: Temperature, relative humidity and precipitation.
To increase the productivity of cattle considerable quantum of work
has been done by the scientists in past two decades. With the
available technical know-how the scientists, Central Government and
various State Governments have sponsored several livestock projects
in the country.
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Dairy Education and Training:
The dairy education is not only to seek or cultivate knowledge,
but has to provide a veterinarian with skills and competence to lead
society towards progress.21 Dairy education is the science of
breeding; feeding and tending domestic animals especially farm
animals, while dairying science deals with the study, prevention and
treatment of diseases in animals. Dairying is yet another area where
biotechnology can make a great impact. In a developing country like
India, improvement in the productivity of the milch animals in terms
of high milk yield as well as production of clean milk and processing
of the milk into dairy products of high quality can influence the
economic status of our farmers, dairymen as well as dairy industry.
The analysis of strength, weakness, opportunities and loopholes of
Dairy Technology, allows the evaluation of the prevailing system with
a aim of developing strengths, overcoming weaknesses and
exploiting opportunities available in the dairy world.
The stock of milk yielding animals such as cattle, buffaloes and
goats in our country are genetically far inferior to those in western
countries. Genetic improvement of these animals by traditional
methods of breeding will take many decades. However, cross
breeding programme will quick results. The recent developments in
animal’s reproductive biology and genetic basis of traits have
fostered new animals breeding technology. In future animal breeding
programme may be augmented to achieve desired changes with great
speed and selection. The use of biotechnology to improve animal feed
and nutrition promises to improve the animal productivity.
175
Impact on Rural Environment:
Dairying has been recognized as an instrument for the up-
liftment of socio-economic status at rural level. The impact of Mini
dairy on the sustainability of livelihood, employment and women
empowerment has been widely acknowledged. Dairying has a
prominent role in strengthening India’s rural economy. It has the
potential to act as an instrument to bring about social-economic
transformation at rural level. If the dairy sector is to develop
sustainable practices in the context of changing paradigms of
development in the new millennium, there has to be more emphasis
on HRD to address this need Indian dairy industry must move away
from traditional approach to innovative product formulations and
business practices. It should our prime objective to evolve new
technologies in livestock rearing practices which will really fit with
the existing situation of our dairy products and thereby helping to
maintain them in a productive and sustained condition to sustain the
livelihood of our millions and millions of rural poor and their stock
on a sustainable basis.
An Overview of Beed District:
Beed Zillha DudhUtpadakSangh collects more than one lakh
liters of milk daily through societies and its payment which is almost
lakh of Rs. goes directly to the farmers' bank account. Now the
farmers are earning their livelihood properly and their financial
condition is improving day by day. Apart from collection of milk there
are other welfare activities being taken up by the co- operatives as
farmers' training program, women's training, women's leadership
training program, educational programme and cleanliness program,
176
etc. In the villages where the women are doing mostly milk
concerned job, be it from cattle rearing to milk-supply, it is our
utmost effort that its payment should be got to women so that their
family may meet their needs properly. In the district, newly started
Mahila Bachat Gat (SHGs) in which the national bank gives them
financial support for the cottage industry in milk matter. Thus, Self
Help Groups is performing the role of a facilitator for the social
and economic changes at village level.
Through cooperatives, the women are getting an opportunity of
outdoor activities and thereby enhancing their inner strength
successfully to be a part of the cooperatives.22 Women have got
innate trait of managing skills, so they should be given proper and
due representations in this field and more women dairy cooperatives
should be opened for the up-liftment of the village women for the
improvement of their social and financial status. In this district,
irrigation is possible only for 30 per cent to 40 per cent of agricultural
field, while rest almost 60-70 per cent of land is completely
dependent on monsoon rains. In this situation, farmer is directly
dependent on dairy activity, getting no other option left to earn.
Collective efforts with the farmers from the root levels to grow and
develop in dairy sector. Technologically the dairy sector should also
be subsidized in the form of milk subsidy. The given subsidy will
reach directly to the farmers with the procurement rates. The
innovations & new technologies to be implemented in dairy farming,
should, somehow, reach to the farmers through proper planning at
the central and the state level. The price of fodder is high, nutrition in
animal fodder is lacking, even the basic supplement; clean
177
drinking water for the cattle is not easily available. So, emphasis
should be mainly upon fodder's nutrition for the quality milk
production.
References:
1. Ms. Geeta Patel, Role of Women in Dairy Cooperative - Dairy
Industry Conference Chairperson, Udaipur Milk Union.
2. Karmakar K.G. and Dr .D. Banerjee Opportunities And
Challenges in The Indian Dairy Industry.
3. Prabhat, 2005. Animal husbandry and dairying. Kurukshetra.
4. Mr. Ravindra Apte, - Role Of Dairy Co-Operatives In Social
Transformation- Dairy Industry Conference Chairman, Gokul,
Kolhapur, Maharashtra.
5. Sukumar De -–Outlines of Dairy Technology – Oxford
University Press, New Delhi.
6. Tiny Brouwers India report Part 1: dairy giant walking
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7. http://www.indiaagronet.com
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12. Sukumar De – Outlines of Dairy Technology –Oxford
University Press, New Delhi.
178
13. Rao A. R. – Social Cost of Employment in Dairying – Eastern
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15. Ghose, A.K. and K.L. Maharajan, 2002. Milk Marketing
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