Enteprenureship in Dairy Product

8/13/2019 Enteprenureship in Dairy Product

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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

Enteprenureship in Dairy Product

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