1

A

Global Country Study Report

On

“A STEEPLED Analysis of Dairy Industry of Bangladesh for

Business Opportunities for Gujarat/India”

Submitted to

Institute Code-769

SHRI JAIRAMBHAI PATEL INSTITUTE OF BUSINESS MANAGEMENT & COMPUTER

APPLICATIONS

Under the Guidance of

Prof. (Dr.) Mamta Bharmabhatt

(Associate Professor MBA-SJPI)

In the partial fulfilment of the requirement of the award of the degree of

Master of Business Administration (MBA)

Offered By

Gujarat Technological University-Ahmadabad

Prepared By:

Student Of MBA Sem.-III

Group No: - 4

2

3

Declaration

We, following students, hereby declare that the Global/ Country Study Report titled “Global Country

Study Report” in Bangladesh is a result of our own work and our indebtedness to other work

publications, references, if any, have been duly acknowledged. If we are found guilty of copying any

other report or published information and showing as my/our original work, or extending plagiarism

limit, we understand that we shall be liable and punishable by GTU, which may include ‘Fail’ in

examination, ‘Repeat study & re- submission of the report’ or any other punishment that GTU may

decide.

Enrollment No. Name Student’s Sign

137690592019 NehaChoudhary

137690592024 KrunalDhanani

137690592073 Chetak Patel

137690592105 Bonnie Shah

137690592116 HardikSorathiya

137690592121 Pratik Vaghasiya

Place: Gandhinagar

Date: 12 / 12 / 2014

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Plagiarism Report

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PREFACE

In today’s world of globalization, opportunities are plenty and they keep knocking at your doors all

times. World is becoming very small. The work of success is always open to the dynamic, confident,

and courageous youth. All we need is the positive attitude and forceful personality to break the myth of

bad luck. All over the world the demand for managerial and administrative person has increased. To

survive in this highly competitive market practical knowledge and experience is as important as

theoretical. As a student of M.B.A., we are supposed to have practical knowledge and experience of

business and management.

Due to globalization there has been a rush of multinational companies in India. Keeping these entire

things in mind the M.B.A. courses have introduced practical studies as one of its subjects. In this, the

students are given the opportunity to work in industry and are required to know, how practically the

work is performed. This also teaches the students, how to present themselves in front of different

people, their attitude, and their way of communicating and working in a team.

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ACKNOWLEDGEMENT

We would take the pleasure of thanking all the people, without their support and help, it would not

have been possible to prepare this project.

We take this opportunity to thank Gujarat Technological University by providing an opportunity to

learn and understand a particular industry in a foreign nation.

We would like to express our sincere thanks to Prof. (Dr.) S. O. Junare (Director Of Technical

Campus ) for his constant support and motivation.

Our Heartily thanks go to our project guide Prof. (Dr.)Mamta Brahmbhatt, without whose guidance

and encouragement the project study wouldn’t have been possible.

Finally, thanks to our beloved family, whose devotion and candid dedication always inspired us and

encourage us to achieve better off.

Date: 12 / 12 / 2014

Place: Gandhinagar.

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INDEX

Content P.N0

1. Introduction

1.1 Executive Summary

1.2 Over View Of Bangladesh

08- 12

2. Industry Overview

2.1 Over View Of Selected Industry In Bangladesh

2.2 Over View Of Selected Industry In Gujarat

2.3 Over View Of Selected Industry In West Bengal

13-25

3. Steepled Analysis

Steepled Analysis of Dairy in Bangladesh

Steepled Analysis of Dairy in West Bengal

Steepled Analysis of Dairy in Gujarat

26-54

4. SWOT Analysis

4.1. Over all Analysis Of Steepled Analysis 94-100

5. Conclusion

5.1 Business opportunities in future

5.2 Impact of this Business

101-105

6. Bibliography

106-109

55-73

74-93

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CHAPTER:- 1

INTRODUCTION

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1.1 EXECUTIVE SUMMARY

“The cow is a domestic quadruped animal”.

That’s the first line of the first essay in all Dairy in Bangladesh. The importance of a cow in the popular psyche cannot be over estimated. Even in matter so national policy the cow’s importance

is emphasized. How ever despite the intention the policy makers and the business community, the dairy industry has not developed as rapidly as one would like.

Ho w ever ,unlike poultry, and other sectors dairy has not sho wn signif icant growth.In fact per capita consumption of milk which was ho w in ganups wing in the 90’s has gone do wn in the

last.While there has been some private sector investment in post harvest storage and processing, the overall number of head of cattle has not shown significant increases.The growth of the cattle population as well as private sector investment has been concentrated in the Baghabari, S irajganj

area.

Dairy industry is one of the best suited sectors for the generation of employment and thus ameliorating poverty in rural area so Bangladesh providing jobs to the whole family, ie men,

women & children a like.It is a most profitable occupation to part of the bovine is wasted live or dead.Support to the dairy industry lacks appropriate focus in our PRSP strategy primarily due to

aggressive lobby in importer so subsidized milk powder on the one han dand skewed price structure of locally market milk by Bangladesh Milk Producers Cooperative Union Limited (BMPCUL) Milk Vita holding a command in market shared support from the Government.

BMPCUL trade name is Milk Vita.

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1.2 Overview Of Bangladesh

The history of Bangladesh is an eventful combination of four parts of Combination of turmoil and

peace, as well as prosperity and destitution. It has thrived under the glow of cultural splendour and

suffered under the ravages of war. The territory now constituting Bangladesh was under the Muslim

rule for over five and a half centuries from 1201 to 1757 A.D. Then, it was ruled by the British, after

the defeat of the last sovereign ruler of Bengal, Nawab Sirajuddowla, at the Battle of Palashi on the

fateful day of June 23, 175

The British ruled over the entire Indian sub-continent including this territory for nearly 190 years from

1757 to 1947. During that period Bangladesh was a part of the British Indian provinces of Bengal and

Assam. With the termination of the British rule in August, 1947 the sub-continent was partitioned into

India and Pakistan. Bangladesh then became part of Pakistan and was known as East Pakistan. It

remained so for about 24 years from August 14, 1947 to March 25, 1971. It appeared on the world map

as an independent and sovereign state on December 16, 1971 following victory at the War of

Liberation (from March 25 to December 16, 1971).

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Geographic Location

Bangladesh lies in the north eastern part of South Asia between 20o 34' and 26o 38' north latitude and

88o 01' and 92o 41' east longitude. The country is bounded by India on the west, north and northeast

while Myanmar on the south-east and the Bay of Bengal on the south. The area of the country is 56,977

sq. miles or 1, 47,570 sq. Kilometre. The limits of territorial waters of Bangladesh are 12 nautical miles

and the area of the high seas extending to 200 nautical miles measured from the base lines constitutes

the economic zone of the country.

Bangladesh enjoys generally a sub-tropical monsoon climate. While there are six seasons in a year,

three namely, winter, summer and Monsoon are prominent. Winter which is quite pleasant begins in

November and ends in February. In winter there is not usually much fluctuation in temperature which

ranges from minimum of 7oC—13oC (45oF—55oF) to maximum of 24oC—31oC (75oF—85oF). The

maximum temperature recorded in summer months is 37oC (98oF) although in some places this

occasionally rises up to 41oC (105oF) or more. Monsoon starts in July and stays up to October. This

period accounts for 80% of the total rainfall. The average annual rainfall varies from 1429 to 4338

millimetres. The maximum rainfall is recorded in the coastal areas of Chittagong and northern part of

Sylhet district, while the minimum is observed in the western and northern parts of the country.

Population

In the Bangladesh Bureau of Statistics conducted the Fifth decennial population census in the country

on March 15-19, 2011. As per preliminary report the population of the country stood at 142.3 million

in2011. The male population was 71.2 million and female 71.1 million. The inter growth rate of

population 2011 census was 1.3 per annum. This preliminary report is based in the tally sheet and may

increase after processing all the questionnaire and adjusting the under enumeration The density of

population was 843 per sq.km. in 2001which increased to 964 per sq.km. in 2011.

Official Languages

Official language is Bangla (Bengali).

English is widely used in Government, Business and Universities.

Education and Culture

The education system of Bangladesh is divided into three levels

(i) Primary (from grades 1 to 8),

(ii) Secondary (from grades 9 to 12),

(iii) Higher education (from grades 11 to 12) and Tertiary.

Besides, there are some private institutions providing English medium education. They offer 'A' level

and 'O' level courses.

In the whole country budget, the highest allocation in the education exposes that Government of

Bangladesh is very much keen for human resources and development through education. Education

System in Bangladesh has also Madrasa system of education which emphasizes on Arabic medium

Islam-based education.

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This system is supervised by the Madrasa Board of the country. Bangla is the mother language of

Bangladesh, but to establish Bangla as the mother language,Bangalees has to sacrifice their lives;a

number of People were martyr zed in February 21, 1952 to establish the rights of mother language. In

recognition of their supreme sacrifice, UNESCO declared 21st February as the” International Mother

Language Day” throughout the world.

National Anthem

The national anthem of the Republic is the first ten lines of "Amar Sonar Bangla".

CONTRIBUTION OF DAIRY, INDUSTRIES AND SERVICE SECTORTO GDP

IN BANGLADESH FROM LATE 1950 TO TILL NOW

Gross domestic product refers to the market value of all officially recognized final goods and services

produced within a country in a given period. GDP per capita is often considered an indicator of a

country’s standard living.

Economy of Bangladesh is composed of three main sectors 1) Dairy, 2) Industry, 3) Service.

Sector Wise GDP change in percentage:

Year Sector Wise GDP Change in percentage

Dairy Industry Service Total

1941-1950 70 4 26 100

1951-1960 62 5 33 100

1961-1970 55 10 35 100

1971-1980 44 11 45 100

1981-1990 32 12 56 100

1991-2000 25 15 60 100

2001- 2011 18 30 52 100

[Source: www.worldbank.org&https://www.cia.gov/library/publications/the-world-

factbook/fields/2012.html ]

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CHAPTER:- 2

Industry Overview

14

2.1 Dairy Industries in Bangladesh

Report Highlights:

Bangladesh dairy consumption is growing, albeit from relatively low precipitate levels. While

local milk production has increased, from 1.78 million metric tons in 2001/02 to 3.46 million

metric tons in2011/12, domestic supplies are still lagging, and as a result Bangladesh is

importing more dairy products. Dairy imports are regulated by the Bangladesh Import Policy

Order 2009-2012.

General Information:

Market Overview

Bangladesh dairy consumption is growing, albeit from relatively low per capita levels (an estimated

44 milliliters of milk per day). When measured against the World Health Organization recommended

minimum level of 250 milliliters a day, Bangladesh dairy consumption should increase five-fold.

While local milk production has increased, from 1.78 million metric tons in 2001/02 to 3.46 million

metric tons in 2011/12, domestic supplies are still lagging, and as a result Bangladesh is importing

more dairy products.

In rural Bangladesh, almost two out of every three households rear cattle to produce milk for personal

consumption. Surplus milk can be sold directly to neighbors or in the local market. The average dairy

farm has 3.5 head of cattle, with very low average yields of 200-250 liters per 305-day lactation.

Low herd yields generally reflect poor management practices and inadequate investment in genetics

and veterinary services. In Bangladesh, dairy farming is generally considered to be a “subsidiary”

profession, as male farmers are often more inclined toward field crop agriculture. Traditionally, the

Bangladesh dairy sector has been dominated by the Doodhwala and Ghosh communities consisting of

small-scale intermediaries who collect fresh milk for processing into ghee, curds, sweets and other

products. In the absence of refrigeration, fresh fluid milk typically represents a very small portion of

the market.

Fresh milk processing and marketing in Bangladesh began in 1952, with the establishment of

Eastern Milk Products Limited, a private company, which sold products under the trade name

of Milk Vita. In

1965, the company’s ownership was transferred to the Eastern Milk Producers' Cooperative

Union Ltd., the first milk cooperative in what was then East Pakistan. After independence,

the cooperative was renamed the Bangladesh Milk Producers Cooperative Union Limited

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(BMPCUL), and is best known today by its popular brand name, Milk Vita. Milk Vita is

Bangladesh’s largest dairy, and currently represents almost half of country’s total processed

milk production. Members of the Milk Vita marketing cooperative deliver milk to collection

points, where it is then transported to a chilling plant before processing. Milk Vita members

receive technical training, livestock genetics, veterinary and extension services, and various

other production input.

Regulations of Milk and Milk product Imports

The relevant sections and sub-sections of Bangladesh Import Policy Order 2009-2012 are

reproduced below for ready reference:

In case of the importation of milk, milk food, milk products, edible oil and other food items

produced in any country, test of radioactivity levels present in those items is mandatory. In

this case, a certificate from a competent authority recognized by the government of the

exporting country is to be submitted to the custom authority with other import documents. In

case of the importation of milk & milk product, a melamine-free certificate from the

competent authority recognized by the exporting country must be submitted to the custom

authority. It is to be noted that testing of radioactivity levels of vegetables and seeds, which

may be used as food directly, is also mandatory.

In case of the importation of food items from any country, the shipping documents must be

accompanied by radioactivity test reports from the concerned authority of the exporting

country indicating the level of CS 137 found in such radioactivity tests in each kilogram of

food items shipped. In addition, a certificate to the effect that the items are fit for human

consumption shall also be required: Provided that, in such cases, collection of representative

samples of such food items from on board ships at the port of loading and dispatch thereof

shall not be necessary.

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The following procedure shall be applicable in the matters of radioactivity testing of food

items to be imported from any country, as:

Prior to shipment of the aforesaid item(s), the inspection agents of the supplier or

buyer/consignee shall make necessary arrangement for the test of radioactivity levels for such

items;

Prior to the arrival of a ship carrying such items at a Bangladeshi port, the buyer or

consignee or his inspection agent shall make necessary arrangements for sending by

courier the certificate regarding radioactivity-test to the concerned Customs

Authority: No goods in which the radioactivity level of which is above the acceptable

limit shall be shipped;

In case of importation of food items that were produced neither in any European

country nor packed/ tinned in or shipped from the third country submission of the

aforesaid certificate about radioactivity-test to the Customs Authority shall not be

required: Provided that, a report on radioactivity testing of importable food items (The

report is to include the level of CS 137 found per kilogram of the item concerned);

On arrival of a ship carrying the aforesaid items at a Bangladesh Port

The Customs Authority shall collect the required number of samples of the items carried by

the ship in presence of the importer’s representative and the port authority (samples are to be

collected from the port area) or the master of the ship (in case special appraisement is to be

made while the ship is still at the outer anchorage or mooring) and shall properly pack the

samples and attach to it a tag made of hardboard as per perform given by the Bangladesh

Atomic Energy Commission;

The tag so attached shall bear the signatures of all those who were involved in the collection

of the sample i.e. the representative of the customs authority, the importer’s representative

and the representative of port authority and the master of the ship;

After packing and tagging the samples as mentioned above, the Customs Officer concerned

shall send it to the customs samples room;

The Custom officer in charge of the sample room shall keep proper record of the samples and

hand over the same to the Officer/ Staff of Bangladesh Atomic Energy Commission against

appropriate record and signature;

After receipt of the samples in the Laboratory, Bangladesh Atomic Energy Commission shall

within twenty-four hours, send to the Customs Sample Room their report on the result of

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examination of the samples: Provided that, in case of collection of samples after office hours

the customs officer concerned shall keep the same in his own custody and hand it over to the

samples room the next day immediately after the opening of office;

The representative of Bangladesh Atomic Energy Commission shall on receipt of

information, collect such sample from the Sample Room on the same morning and shall make

arrangement for sending reports to the Sample Room after proper examination of the

samples;

The representative of Bangladesh Atomic Energy Commission shall collect samples from the

sample room twice a day i.e. once in the morning and again in the afternoon.

If on test of sample(s) of the consignment by the Bangladesh Atomic Energy Commission, it

is found that the consignment contains radioactivity level above the acceptable limit, the

consignment shall not be released and the concerned exporter/supplier shall be bound to take

it back at his own expense.

The testing procedures described at sub-paragraphs (3), (4) and (5) above shall also be

applicable in case of import of milk, milk food, milk products, fish feed, edible oil and other

food items, even when these have been produced in any country and packed/ tinned in or

shipped from another count.

The Customs Authority shall, in the usual course, release the goods, only after getting the

Clearance Certificate(s) from the Bangladesh Atomic Energy Commission certifying that the

radioactivity level found in the imported food-stuff is within the acceptable limit.

These procedures shall not apply to the food items imported or to be imported, for which

separate procedure has been prescribed by the Ministry of Food for testing radioactivity level.

In these cases, the procedure prescribed by Ministry of Food shall be followed.

Acceptable limits of radioactivity for milk powder, milk food and milk products is 95 bq of

CS- 137 per kilogram and that for other food items is 50bq of CS-137 per kilogram. The level

of CS- 137 in an item shall be calculated in the state it reaches the port without being

liquefied, concentrated or processed. In case of local items, the level of CS-137 in an item

shall be calculated in the state it is marketed. The highest acceptable limit of radioactivity

levels may be revised by the government from time to time.

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Milk food: All kinds of milk food products including baby food with fat contents covered

under H.S. Heading 04.02 or 19.01 and all H.S. Code classifiable there under shall be

importable subject to the following conditions, as:

a. Baby food produced from milk shall be imported in tin containers up to 2.5 kgs only;

b. Milk food with cream shall be imported in the tin containers or bags in box up to 2.5 kg;

c. The Industrial enterprises, which are approved by the packing or caning Sector of Board of

Investment, Bangladesh Small & Cottage Industries Corporation or Director, Institute of

Public Health & Nutrition , shall import milk food with cream or baby food in big airtight

Hermitic Container for packing locally ( retail);

d. The words: “There is no alternative to breast-feeding” shall be printed clearly in relatively

larger letters in Bangla (Bengali language) in a visible space on each tin, airtight package or

bag in box of baby food with cream;

Composition and percentages of various ingredients shall be printed in Bangla on the tin

containers, airtight packages or bag in boxes of milk food;

The date of manufacture and the date of expiry (for human consumption) shall be embossed

or shall be computer printed in permanent ink either in Bangla or in English on each tin

container, airtight package or bag in box of milk food;

The net weight of milk food shall be clearly indicated on each container in Bangla or in

English; apart from this, in case of import of milk and milk product baby food, the

registration number given by the Director, Institute of Public Health & Nutrition (IPHN) shall

be printed on every tin, airtight package or bag in box clearly;

The condition mentioned at clauses (d), (e), (f) and (g) above must be embossed on the tin

container. Separate printed labels shall, in no way, be pasted on the tin container;

Measuring spoon shall be supplied in tin containers of baby food i.e. milk food having fat

contents up to 19 percent.

Import of non-fat dried milk shall be made subject to the following conditions, such as:

Import of non-fat dried milk, packed in bag/ tin, shall be allowed;

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The importer shall produce an analysis certificate duly authenticated by the competent

authority of the exporting country and the certificate shall contain a declaration to the effect

that the milk food is fit for human consumption;

The date of manufacture and date of expiry of fitness of the contents for human consumption

shall be printed on each container, tin or bag;

In case of import of milk food products and powder milk, pre-shipment inspections shall be

mandatory for determination of radioactivity level and the goods may be shipped only if in

such test the radioactivity level is found within the acceptable limits approved by the

Government. Such testing reports shall be sent to all concerned authorities as one of the

shipping documents;

On arrival of milk foods and dried milk in the country, the consignment shall be subject to

radioactivity test for the second time before release of the goods and the goods shall be

released only if the radioactivity level is found within the acceptable as well as approved.

The date of manufacture and the date of expiry for import of Food and beverage: For

importation of all kinds of food and beverages, the date of manufacture and the date of expiry

shall clearly be embossed on each tin container or package and printed label shall not be paste

don the tin, container or package separately: Provided that, no food items will be allowed to

import after the expiry date.

In case of wine/liquor, the dates of expiry need not to be mentioned.

The quantity and description of ingredients and colors used in preserved food must be printed

on pot, container or package and no separate label will be pasted on it. In this case,

embossing is a must.

Date of manufacture and the date of expiry shall have to be written / printed on the

container/package of those raw materials used in preparation of food and beverages that are

to be unusable after certain period of time.

For importation of all food products, (directly consumed/drunk or consumed/drunk a fter

processing) the importer shall require to submit along with other shipping documents a

cautionary certificate from the government of the exporting country or from appropriate

approved agency to the effect that the item is “fit for human consumption”, “that it does not

contain harmful ingredients”, or that “it is free from all kinds of harmful germs.” Such a

certificate shall mention the age group for which the item is eligible for consumption.

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2.2 Overview of selected industry in Gujarat:-

Sector Overview

India contributes to 15% of the global milk production and stands as the largest producer of

milk in the world with a production of 122 MMT in 2011. The largest size of Indian Dairy

Industry is estimated at around USD 60 billion (INR 2,662 billion) with an annual growth

rate of percent in volume terms. The production & demand for a milk is expected to continue

and rise due to various factors including population growth, rise in income & changing life

style.

Milk Map of Gujarat

Gujarat is one of the largest milk producing states in India with the contribution of 7.75%

share in the total milk production of India. The state having 17 Cooperative dairy milk unions

& 25 private dairy plants has a milk collection of 3.45 billion litres with over 30 lakhs milk

producers, affiliated to more than 15,000 Primary Milk Cooperative Societies.

Milk contributes to 22% to the Agricultural GDP of Gujarat and is one of the biggest sectors

for supporting livelihood in the state. As per state census data, out of about 102 lakhs total

household of Gujarat, 42.6 lakhs households are engaged in Dairy and Animal Husbandry

sectors as a primary or secondary source of their income. Though the dairy sector is active in

most of the districts, some of the districts still needs to be brought in the active dairy network.

Dairy Sector - District wise

21

Major Milk Production Districts Moderate

Milk Production Districts Potential

"Districts for Dairy Development"

GLPC associations in the Dairy Sector

GLPC is involved in promoting livelihood in the dairy sector by facilitating technical and

financial assistance to the beneficiaries through various Central and State sponsored schemes.

During the year 2011-12, GLPC facilitated in identification and financing of milk animals to

around 30,000 households in the state contributing to an additional production of about 540

lakh litres of milk annually.

Select Success Story

Under Van Bandhu Kalyan Yojana over 14,000 SHG members (primarily tribal) were

identified for dairy farming. Through GLPC facilitation, they were able to purchase improved

breeds of cattle and buffaloes and were linked to respective districts milk unions. The

initiative resulted in the additional milk production of around 84,000 litres per day with an

income generation of around INR 25 lakhs per day. The project exhibited a winning

proposition for all the stakeholders. On one hand, it provided sustainable livelihood

opportunities to more than 14,000 households with an estimated additional income of INR

3,000 per month and on the other hand, it created a dependable procurement source for the

Cooperative Dairies.

Sources : Census report of Directorate for Animal Husbandry, Government of Gujarat

22

2.3 Overview Of Dairy Industry In West Bengal :-

The West Bengal Milk Cooperatives play a major role in the dairy development program in

the state of West Bengal. There are a number of primary milk producers cooperative societies

at the village level that, in conjugation, form milk union in the district level. These West

Bengal Milk Cooperative unions carry out several activities, beneficial and necessary for

milk producers' socio-economic development. The West Bengal mil cooperatives procure

process and market milk and milk products and help the milk producers to develop and grow.

All the district cooperative milk producers unions in West Bengal are affiliated to the West

Bengal Milk Federation. It guides and monitors the milk unions to implement the Operation

Flood Project.

The Dairy Cooperative Structure in West Bengal

It's the Animal Resources Development Department (ARDD) of the government of West

Bengal that controls and administers West Bengal milk cooperatives through the State

Cooperative Act. The Minister, ARDD, Government of West Bengal has the complete

control over the functioning of West Bengal Milk Federation.

Government of West Bengal holds 82.5% equity in the milk federation. However, state

government doesn't have any equity in milk unions

Primary Milk Society

The goal of the primary milk societies in West Bengal is to promote the economic interests of

the members. It works towards improving the quality as well as increasing the quantity of the

milk production. It follows the structure of ‘Anand Pattern’ of Gujarat

Following chart will showcase the growth of primary milk societies in West Bengal.

Year 2003-04 2004-05 2005-06

Society Organized 2,570 2,647 2,837

Farmer Members 1,85,959 1,94,750 2,08,473

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Activities of West Bengal Milk Cooperative Unions

The milk cooperatives in West Bengal play a major role in the development of this sector

through their various activities. Following are the activities undertaken by the West Bengal

Milk Cooperative Unions:

Procure, process and market milk and milk products.

Provide inputs to producer members.

List of West Bengal Milk Cooperative Unions

There are 14 milk co operative unions in West Bengal, which procure an average of 3.91 llpd

milk from 3,028 societies with 2,26,837 members. Most of the procured milk goes to the

Government dairy plants, Metro Dairy and Mother Dairy.

Name Location

Bardhaman Cooperative Milk Union Burdwan

Bhagirathi Cooperative Milk Union Murshidabad

Coochbehar Cooperative Milk Union Coochbehar

Damodar Cooperative Milk Union Hooghly

Himalaya Cooperative Milk Union Darjeeling

Ichhamati Cooperative Milk Union 24 Parganas (North)

Jalpaiguri Cooperative Milk Union Jalpaiguri

Kangsabati Cooperative Milk Union Bankura

Kishan Cooperative Milk Union Nadia

Kulick Cooperative Milk Union North Dinajpur

Manbhum Cooperative Milk Union Purulia

Mayurakshi Cooperative Milk Union Birbhum

Midnapore Cooperative Milk Union Midnapore

Sunderban Cooperative Milk Union 24 Parganas (South)

24

Cooperative Dairying: 2021-22 – Projections

2004-05 2021-22 CAGR (%)

Milk Production (LKGPD) 103.7 157.8 2.5

Milk Procurement (LKGPD) 3.35 25.63 12.7

Milk Procurement

(% of Marketable Surplus) 5 27

Village Coverage (No.) 1746 10767 11.3

- See more at: http://business.mapsofindia.com/milk-co-

operatives/westbengal.html#sthash.tSF4AOfy.dpuf

25

CHAPTER:- 3

Steepled Analysis

of

Dairy in Bangladesh

26

BANGLADESH

Social Analysis :-

INCOME DISTRIBUTION

Bangladesh is presently fulfilling its milk and dairy products’ demand by importing 67% of

the requirements, spending US$44.52 billion annually. Milk production of the country in

2012-13 was 3.46 million tons against the demand of 12.8 million tons. On an average

consumption demand has beenincreasing9%annually.

Being one of the thrust off- farm agriculture sectors, dairy farms of the country are still facing

hindrances due to lack of policy and patronization from the state. 3.6 million people

households with supplementary income from dairy sector in Bangladesh.

Ninety percent dairy farms are constituted by 1-3 cows, 6% constituted by 3-10 cows and

only 4% farms have more than 10 cows. The dairy system in Bangladesh is characterized by

small-scale operations, coupled with crops and other off- farm activities. Several government,

non-government and private sector initiatives have made progress in transforming dairy into a

more value-driven and market-oriented sector.

Milk production in Bangladesh annually grew by 6.2% on an average by an increasing

number of cross-bred dairy cows, more institutional investment in dairy, rising market

demand for processed dairy products and the implementation of other similar dairy

development programs.

DEMOGRAPHIC POPULATION GROWTH RATES AGE

DISTRIBUTION :-

The 2010 UN global population projections show for the first time the Bangladesh population peaking

below 200 million. The maximum of 194 million (19.4 Crore) will be reached in 2050 then fall to 155

m by 2100. This will occur even with the total fertility rate (TFR) falling to 1.58 children per woman

by mid century then rising slowly to 1.9 by 2100.

In order to achieve population stability by mid century the fertility decline must continue for the next

four decades until the national TFR, currently at 2.3, levels off at around 1.6. This is lower than the

current fertility target of 1.8 in the National Strategic Plan

27

Geographic differences in fertility:

The east-west fertility divide persists, with Chittagong and Sylhet well above the national

average of 2.3, and Khulna, Rajshahi and Rangpur below the average (Figure 1).

•Dhaka and Chittagong divisions combined account for half the Bangladesh population, so

their fertility levels have a large impact on the national TFR (Figure 2)

•There have been encouragingly large fertility declines recently in Chittagong, Sylhet and

Dhaka. The Family Planning (FP) Program needs to continue focusing on these three

divisions to ensure that the declines continue.

•The different population sizes across divisions means that a TFR reduction of 0.2 children in

Dhaka has an impact on the national TFR equivalent to a decline by a full child in Sylhet.

•Birth Intervals: Fertility has declined mostly among women older than 30 years, reflected in

longer birth intervals due to use of FP. While birth intervals have increased over the last 2

decades by two years (from 3 to 5 years) among women in the 30s, and one year (from 3 to

almost 4 years) among women in the 20s, there has been no increase in birth intervals among

teenagers (Figure 3). The proportion of teenagers who begin childbearing (pregnant or

mother) by age 20 remains high at 30 percent and is only declining very slowly. This teenage

cohort is where major future FP efforts must be directed along with interventions to raise age

at marriage

Labour And Social Mobility

The garment and textile industry provides Bangladesh with much needed jobs and export

earnings as foreign manufacturers have rushed to the impoverished South Asian nation to

take advantage of cheap labor, low production costs and a huge eager workforce.

In recent years, however, the sub-standard, even dangerous, work conditions and low pay

found in Bangladeshi garment factories have come under severe criticism from voices both

within Bangladesh and in the west.

Bangladesh is home to more than 5,600 garment factories, making it the world’s second

largest apparel manufacturer behind only China. About 60 percent of clothes made in

Bangladesh end up in European markets – on the whole, apparel exports generates at least

$20 billion in annual revenues and is the largest source of foreign exchange earnings.

Without textiles, Bangladesh, already burdened by immense poverty, would see its economy

collapse. As such, give the dire need for such jobs, for years, many western companies and

Bangladeshi businessmen have conspired to cut costs by keeping wages depressed and safety

almost non-existent.

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Lifestyle Changes

The world is set for a decade- long boom in milk consumption, with demand for Liquid Dairy

Products (LDP) set to surge by around 30% from 2010 to 2020, driven by economic growth,

Urban is action and the rising purchasing power of Asia’s middle class, according to research

by Tetra Pak.

The research also forecasts that by 2014 packaged milk will outsell “loose” milk in the

developing world for the first time, as economic growth and city living spur demand for

healthy and convenient products. This shift is expected to mark a turning point in white milk

consumption for millions from Delhi to Dhaka.

Global demand for all forms of LDP will grow from some 270 b illion litres in 2010 to

around350 billion litres by 2020, according to the Tetra Pak research, which represents one of the

world’s most comprehensive liquid dairy forecasts.

Work Career & Leisure Attitude :-

Diversity issues, which include employee concerns about relationships with co-workers, need

to be understood. According to Sonnenschein (1997:14) the general issues workers most

commonly mentioned in focus groups and questionnaires pertain to how people relate with

each other in the workplace, which include;

Respect – understanding respect and respecting each other;

Misunderstandings because of style differences;

Lack of understanding of religious beliefs and their effects on the workplace;

Not enough information on cultural backgrounds and differences;

Too many cliques;

Offensive jokes;

No safe haven to discuss diversity issues;

Too much emphasis placed on diversity; and

Not enough emphasis placed on diversity.

29

Entreneunial spirit :-

The challenge here is that while high growth may be relatively easy to define, it is extremely

hard to achieve. Fewer than 5% of US businesses achieved high growth rates in the early

years of this decade, for example, and although a great deal of academic and practical work

has been done to analyze how successful innovation actually occurs, there is no simple

formula and no foolproof method to replicate it. Moreover, ‘innovation ’now encompasses

Both conventional concepts of R&D, and the less tangible and more informal approaches to

developing new ideas that can lead to some of the most profitable ideas and ways of working.

The new product development now being done by Rhodia, one of our case studies in this

section, shows both aspects of the innovation process coming together to generate real growth

and competitive advantage.

Rhodia is a major international business as well as an innovative one, but in some ways

this makes it an exception: small dynamic enterprises are often much better than large

corporations when it comes to innovation.

Education

A new breed, especially highly productive breeds, need very precise management for

optimum output. They also need a nutritionally complete food. Thus with the creation and

dissemination of a new breed of bovine farmers also have to be educated on the care and

management of the animals. A private-public joint effort to educate farmers on nutrition and

management is essential to break out of the vicious cycle of poor

feed and poor output.

Living Condition

Developments of Milk Production in Bangladesh From 1996 to 2002 milk production in

Bangladesh increased by merely 3 percent. Over 62 percent of the country’s milk is goat milk

whereas cattle contribute 36 percent. Buffalo contribute about 1 percent to national milk

production, comparable to the contribution made by sheep (under ‘others’ in the graph).

Regional Shares of Bangladesh Milk Production Nearly half of the milk in Bangladesh is

produced on the northern region, where Sirajganj district is located. Good availability of

fodder and multiple dairy development programs are main reasons for the higher share of

milk production from this area.

30

Development of Milk Yields

Bangladesh has seen a slight improvement in milk yields in the period 1996 to 2002. The

majority of animals, which are local cattle breeds, increased milk yield by around 5 percent,

while milk yield of crossbred cows and buffaloes increased by 4 to 8 percent.

Development of the Numbers of ‘Live Animals’

Between 1996 and 2002, the number of bovines in Bangladesh has increased by no more than

1 percent. The buffalo population increased by about 4 percent in this period, while the

number of cattle increased by less than 1 percent. The main reasons for the stronger increase

in buffaloes are the establishment of the Rampal Artificial Insemination Centre in Bagarhat

Districtand a loan program for buffalo rearing

.

31

Technological Analysis :-

Goverment Research Spending :-

Prior to 1970 there was no organised dairying in Bangladesh. Acute scarcity of milk

following independence from Pakistan in 1971 prompted the Government to plan a dairy

project modelled on the world-renowned Indian Anand pattern dairy cooperative. Set up with

support from FAO, UNDP and DANIDA, the Bangladesh Milk Producers’ Cooperative

Union Limited (Milk Vita) today collects milk from over 150,000 smallholder milk producers

through a network of 1,200 village cooperatives. Milk Vita almost collapsed in the early

1980s because it could not compete with imported subsidized milk powder, donated and

commercial, mainly from the European Union. By the early 1990s the business had been

turned around when Government withdrew from day-to day management and allowed Milk

Vita to recruit professional managers. At the same time milk powder stocks around the world

started to drop as western Governments began to withdraw subsidies to their dairy farmers

and exporters. A number of private sector investors and NGOs copied parts of the Milk Vita

model and by 2005, there were 20 or so dairy enterprises, including three large companies

producing sweetened condensed milk from imported skimmed milk powder and vegetable

oil. Milk Vita recently invested more than USD 10 million in an expansion programme,

which is facing teething problems related mainly to inappropriate equipment selection.

FAO and UNDP also provided support to set up a vocational Dairy Training Centre to

support the dairy expansion programme and to prepare an updated National Livestock Policy

(NLP) in 2006. The National Strategy for Accelerated Poverty Reduction (NSAPR),

published in October 2005, sets out ways and means for achieving the Millennium

Development Goals (MDG) of halving poverty and under-nutrition by 2015. It indicates that

while the livestock sector as a whole grew 2.6 percent per annum since the 1970s, poultry and

milk production grew at around 10 percent per annum, reflecting the significant support for

the two sectors. Not surprisingly both the NLP and NSAPR single out smallholder dairying

for early adoption and replication. While milk production by smallholders is now generally

recognised in Government development strategy, the absence of a comprehensive national

dairy programme is thought by dairy sector insiders to have limited growth.

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Industry Focused On Technological Affect :-

Participants along the dairy chain often have conflicting interests and objectives.

Consequently, the planning process needs to be supported by considerable knowledge about

stakeholder concerns as well as a broad understanding of available tools and their ability to

achieve policy objectives.

An assessment of stakeholder priorities generates a series of policy objectives. These are

specific statements detailing the desired accomplishments or outcomes of a development

plan. Whereas the goal of a dairy development plan might be to “contribute to national

economic development by commercially, qualitatively and competitively developing the

dairy sector for employment generation and poverty reduction with the participation of

government, cooperatives and private sector” (Nepal, 2007), the development objectives

would be more specific.

Specific examples of development objectives for the dairy sector could include: i) a reduction

of imports; ii) increasing on-farm productivity and ensuring food safety; iii) enhancing

nutritional status of children through milk consumption; iv) raising on-farm incomes; v)

reducing post-harvest losses; and vi) ensuring fair prices for quality milk products. The

effectiveness of plans that incorporate these types of objectives, assuming the availability of

well-designed baseline studies, can be measured. This contrasts to more vaguely worded goal

statements, such as enhanced food security, sustainable development, poverty alleviation, etc.

The key distinction: the goal is a statement of intent and an objective describes an achievable

and quantifiable target or deliverable. Good objectives should:

be impact-oriented, measurable, time-defined, specific and practical;

relate to the expectations and requirements of all major stakeholders;

cover a balanced variety of expectations – economic, social, cultural and

environmental.

When assessing the objectives to be achieved through a dairy plan, the menu of options for

implementation or the policy tools/measures need to be considered. In most developed

countries, the policy objectives of very complex programmes and plans are quite simple: to

support milk producer prices and/or incomes. The mechanisms for achieving these objectives,

however, can be extremely diverse, with the selection of policy measures having i)

differential impacts on the many stakeholders along a chain; and ii) cost implications,

particularly as consumers and the government typically finance these interventions.

33

New Invention And Devlopment :

The demand for milk and other liquid dairy products is expected to increase by around 30%

from 2010 to 2020, meeting the demands of a growing population. Tetra Pak is committed to

increase local milk production in developing countries by working together with small holder

farmers and processors.

In 2008, the world faced a food crisis paradox. On the one hand, a limited supply of milk

powder on global markets pressuring dairy processors and causing prices to double. On the

other, substantial quantities of milk being produced by smallholder farmers in developing

countries, but production was scattered and quality was mixed.

Rate Of Technology Transfer :-

Milk production in Bangladesh is reported to have increased from 14.9 thousand tonnes in the

year 1993–94 to 16.2 thousand tonnes in the year 1997–98 (Ahmed 2000). This increase was

due to recent government policy and to NGOs involvement (e.g. subsidies to establish small

dairy farms, soft fund loans from the government as well as NGOs and improved veterinary

health care) in dairy development activities. The same report also indicated that milk, milk

products and meat from cattle contribute 58% of total available animal protein followed by

28% from poultry meat and eggs, 8% from goats, 5% from edible meat offal and 5% from

sheep and buffalo.

Estimated total milk production (based on the average milk production of local and crossbred

milking cows), demand and deficit in the country are shown in Figure 2 (Ahmed 2000). Data

indicate that there is a shortfall between production and demand for milk in Bangladesh.

34

Source: Ahmed (2000)

Figure 2. Production, demand and deficit of milk in Bangladesh.

Compared with the number of dairy cows in the country the estimated total milk production

is low due to low milk yields and feed constraints. Per capita need was assumed to be 250 ml

of milk/day but availability of milk is only 32.6 ml/day. However, one should be careful

when using the term ‘demand’ for milk because total requirement does not represent the

market demand for milk. Ahmed (2000) suggested that for the development of demand, the

market segment must have the willingness and economic ability to buy the product. In this

sense, the demand for milk will be lower than the estimated amount (11.04 millionstonnes) as

the majority of people do not have adequate buying ability. Nevertheless, the gap between

availability and demand is very pronounced because of the low levels of milk yields and the

increasing human population. This indicates a strong need for increased milk production in

the country through an appropriate breeding programme and optimum utilisation of local feed

resources.

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Life Cycle & Speed Of Technological Obsolesence :-

A cow typically remains in the dairy herd until about 5 years of age, although many cows are

capable of remaining productive in the herd for 12 to 15 years. Following birth, the calf is

usually removed from her dam after only a few hours. The newborn calf is fed milk or milk

replacer until weaning at 6 to 8 weeks of age. The calf will then be raised until it reaches

appropriate breeding weight at about 15 months of age. Heifers are then maintained and

continue to grow through their gestation. They usually calve, or give birth, at about 24

months of age. However, they do not reach mature size until at least 4 years of age.

Normally cows begin to produce milk only after calving, but some heifers may be milked

early to reduce stress and udder edema. Each period of production or lactation lasts for 12 to

14 months or longer and spans the time period from calving to dry-off, which is when

milking is terminated about 60 days before the next anticipated calving. Thus, cows are bred

while they are producing milk, usually beginning at about 60 days after calving to maintain a

yearly calving schedule. Indeed, dairy producers attempt to get cows bred precisely during

36

the time they are producing the most milk, which has negative implications for cow fertility.

Following the 2-month dry period, the cow calves again and lactation cycle begins anew.

Cows average about 2.5 lactations, although many remain productive considerably longer.

Cows tend to survive longer in less-intensive pasture systems than when on concrete all of

the time. The leading reasons cows leave the dairy herd are low production, infertility,

mastitis (inflammation of the udder), and lameness.

Energy Cost And Used :-

Opportunities, Challenges & Strategies for Renewable Energy Potential in the Dairy Industry

Dairy Process & Thermal Energy

•Low temperature processes <80oC–Pasteurization–Washing

and Cleaning–CIP (Cleaning- in-place)•Medium temperature processes 100

-250 C–Bottles sterilization, Ultra High Temperature treatment–Multiple stage evaporation–

Spray drying•Chilled water for cooling and cold storage .

Change In It:-

Most dairying models are based on the needs of small-holders because they play a key role in

both the formal and informal dairy markets of Bangladesh (Haque, 2009).Of 25.3 million

households, 15 million (60%) are small-holders (Ser-Od e t a 2008). They supply 100% of

the domestic milk for the informal market and 75% for the formal or organized market

(Haque,2009).

Traditional informal dairy market models

The traditional dairying model (Figure 4) is characterized by high variability in milk price,

low milk quality, poor market access, and poor access to veterinary services and extension as

well as to artificial insemination services. In the traditional milk market model, smallholder

milk producers sell their milk directly to spot markets, Gosh(middlemen), sweetmeat shops,

tea stalls, consumers or neighbours without written contracts. Usually, in this kind of market,

a very small volume of milk (less than 100litres per day) is traded (Staal, 2006). Farmers in

there mote areas obtain approximately 60% lower prices than urban farmers. Middlemen may

provide loans to small-holders in some areas, at interest rates of up to 20% per month (Haque,

2009), and in some cases middlemen will pay the smallholders in advance

Change In Mobile Technology :-

It is evident, from the research, that mobile technologies offer increased opportunities by

providing more choice in when, where, and how teachers teach and how pupils learn (for

example see Naismith et al., 2004). Technology-enhanced teacher-professional development

on mobile phones in emerging economies, like Bangladesh, is promising field whose

applications are context specific and largely absent from the literature. Unlike many other

funded development projects specific to mobile phones and often driven on making the

37

various technologies work to ensure learning happens and satisfies funding conditions in the

present (SAIDE, 2008), EIA—a 9-year project—intentionally addresses issues of scale,

embedding and quality for the present and future across rural and urban contexts. Largely,

research on mobile technologies in emerging economies generally focuses only on the use

of mobile phones and/or internet-based interventions. This research tends to provide

anecdotal, rather than qualitative evidence of the technologies impact on teaching and

learning (see SAIDE (2008) for examples from South Africa &ADB (2010) for examples

from Asia & South East Asia). EIA is different as its mobile resources are primarily audio

files designed to assist both teachers and pupils in acquiring English on low cost mobile

phones in its second and third phases. In what follows, the paper describes current techno logy

based initiatives in Bangladesh. Then It presents EIA’s model of ICT-enhanced teacher

professional development; an initial mobile technologies kit pilot, resulting critical issues and

how we are currently addressing those issues. We also illustrate how EIA’s use of mobile

technologies presented new opportunities for teachers and pupils to use communicative

English.

Mobile technologies and development in Bangladesh

Currently there are a number of relevant initiatives, studies and research where ICT and

mobile technologies are being leveraged to improve people’s lives and their acquisition of

English in Bangladesh. These include large-scale government initiatives as well as innovative

community based efforts

38

ECONOMIC ANALYSIS :-

ECONOMIC GROWTH : -

Energy security is a fundamental need for development of Bangladesh for eliminating

poverty, ensuring the quality of life of its people and enhancing economic growth. Although

Bangladesh has not received expected support from the international community, the country

has thus been taking actions to the extent possible with its own limited resources to address

the problems of climate change. The country has demonstrated exemplary commitment to

managing climate change impacts and is also committed to following a low carbon

development path provided its economic growth and poverty reduction goals and prospects

are not compromised and adequate financial and technological support is available from the

international community. In the international arena, Bangladesh actively participates in global

climate change negotiations and is a leading voice also on behalf of LDCs and other climate

vulnerable countries.

INTEREST RATE & MONETARY POLICY : -

The country has posted an average annual GDP growth rate of about 4.8% in the 1990s which improved to over 5% on average during 2000-2008 and to over 6% during the past few years.

In spite of frequent natural disasters, particularly the mega cyclones Sid and Aila in 2007 and 2009

respectively, which have wrought losses and damages to the tune of billions of dollars, the country has shown a tremendous resilience and, through focused policy interventions,

particularly in agriculture and other sectors, and in rural and industrial sectors, the GDP growth could be maintained at as high a rate as over 6% in recent years, in fact attaining 6.7% in FY 2011.

Average tariff rate imposed by developed countries on agricultural, textile and clothing from

Bangladesh was 12% in 2005 and 15.3% in 2009. The Total debt service as a percentage of

export of goods and services was 5.7% in 2010. The international community needs to

facilitate Bangladesh’s exports by allowing duty free imports of all items from Bangladesh, a

least developed country, so that its foreign exchange earnings and debt servicing ratio can

improve.

GOVERNMENT SPENDING : -

The government has already invested US $ 10 billion over the last 3 decades to make the

country’s climate resilient and less vulnerable to disasters. Recently the government has

created a US $ 300 million Bangladesh Climate Change Trust Fund (BCCTF) with its own

resources and is going ahead with adaptation activities by GOs and NGOs. Another Fund,

namely Bangladesh Climate Change Resilience Fund (BCCRF) has been established by the

39

government with contributions from development partners. So far US$125 million has been

received in BCCRF ,and another US$113 million has been pledged. Managed by a committee

headed by the Minister of Environment and Forest, Government of the People’s Republic of

Bangladesh, the fiduciary responsibility is performed by the World Bank. Projects have

started to be implemented with allocations from this Fund.

UNEMPLOYMENT POLICIES : -

The new job creation in the rural sectors remains short of the number of people joining the

labour force annually so that there is high rural unemployment, particularly

underemployment.

This is one reason of rural-urban migration, in addition to natural disasters-related reasons.

The government focuses on the strengthening of the rural economy, which has already started

paying dividends in terms of both increased employment and production and increased wage

rates in rural areas.

Bangladesh’s current demographic reality consists of a high proportion of people in the

working age group. Also, more women are now entering the job market than before.

40

TAXATION : -

A more rational and balanced growth of rural areas and urban centres is emphasized in order

to address to the issues to remove regional disparities, uneven regional growth and

concentration of wealth and income. Reforms will be made on property tax, based on income

level, to augment the governments’ revenue earnings and other steps will be taken to check

the spiralling cost of property and make housing affordable for the poor.

The government has taken some measures to bring down the inflation. It has followed a

contractionary monetary policy and has sought to curb some non-essential imports and

increased taxes on luxury goods like cars and others. This together with bumper harvest of

crops has helped

in checking the inflation. In May 2012, the trend seems to be reversing as inflation has come

down to a single digit. The challenge will be maintain the lower trend `.The Government is committed to ensuring better health care and enhancing social welfare of women. It is further committed not only to enrol but also retain more girls in schools in future ,reduce tax burden

on women and encourage the banks to provide more loans to women for entrepreneurship development.

EXCHANGE RATES : -

Agriculture including crop cultivation, livestock and poultry rearing and fishery, despite its relative decline in terms of contribution to GDP, remains the mainstay of the economy of

Bangladesh.

Forestry is also a part of agriculture but is addressed separately due to its major interface with other environmental issues including climate change. Agriculture provides employment to just under one-half of the local labour force, supplies raw materials to some of

the major agro-processing industries and earns foreign exchange from its exports. For many years, readymade garments (RMG) exports have been accounting for nearly two-thirds of

total annual export earnings. The remittances substantially contribute to the enhancement of the foreign exchange reserve and also support imports as well as economic activities in rural areas. In the recent years, Bangladesh has been receiving annually US$ 12 billion or more

inremittances from expatriate Bangladeshi workers. The foreign currency reserve of t he country is over US$ 10 billion as of first quarter of 2012.

INFLATION RATES : -

There has been a depreciation of the Taka against the US Dollar, which inflated the cost of imported goods. The economy has been facing a double-digit inflation for a year. Yet and despitea global financial meltdown and recession, the Bangladesh economy performed well

in the last fiscal year, registering a 6.7% growth in GDP and 41% growth in its exports, compared to there cession in most of the developed world. The GDP growth is attributed to

growth in agriculture, industries and service sectors and accumulation of capital and increase

41

in effective labour (total factor productivity-TFP growth). The future challenge is to sustain the increasing trend in growth in the face of domestic and external shocks.

STAGE OF BUSINESS CYCLE : -

In order to offset the risks threatening global prosperity and political and economic stability,

the World Economic Forum (WEF) has highlighted that the response to the resource

constraints should be made through action towards global green growth. The WEF has

emphasized that increasing demand for food, water, energy and other products are met by

green production processes and businesses. The WEF contends that this will entail scaling up

of green industries, creation more green jobs, and driving down the cost of technologies

through more competition.

It is expected that modernization will create paperless offices in the near future and reduce

cost of doing business. It will also bring about transparency in administration and record keeping. Already many offices have started e-tendering to facilitate fair participation and outcome.

This process will be extended.

CONSUMER CONFIDENCE : -

The stock market went through some free falls, which have some destabilizing effects on the

financial market and the lives of the people who invest, particularly the small investors, in the

stock market as well. This has several the confidence of the investors in the stock market. The

government has lately carried out some reforms in the banking sector and stock exchange in

order to bring stability. It remains to be seen how effective the reforms are over medium and

long run. The recent opening of nine new banks is based on the argument that the expanding

economy will be better served with the addition of the new banks. It remains to be seen how

things shape up.

All leveals :-

Bangladesh’s current governance situation is deeply rooted in its recent history and political

situation. The country gained its independence from Pakistan

42

ENVIRONMENTAL ANALYSIS :-

NATURAL RESOURCES: - Though small in size, Bangladesh can boast of a unique stock of floral and faunal biodiversity. According to IUCN, the country has 895 varieties of vertebrates of which 13 species are 201 are under threat; 702 marine and migratory vertebrates of which 18 species are under threat; 265 fresh water fish and 24 prawn inland species of which 54 are threatened and 12 are critically endangered; 475 marine fish and 38 salt water shrimp species of which 4 are under threat. The IUCN Red Book lists the species under threat and those which are critically endangered. Bangladesh had over 12,000 varieties of rice. The number has dwindled over the last 50 years to about 5,000. The International Rice Research Institute has recovered 28 species of lost Bangladeshi rice. There are over 5,000 plus terrestrial trees and plants and 400-500 aquatic plants. The Bangladesh Agriculture Research Council (BARC) reported in 2001 That 106 species of vascular plants were threatened species, in addition to severe depletion of Other agricultural species. Local birds account for 400 plus species and 201 species are migratory. The birds, specially the Migratory ones are subject to poaching and indiscriminate hunting though there are laws to Prevent such action. Poverty is the main reason for violation of this law and lack of awareness Also contributes to it and it is compounded by lack of resources to prevent the enforcement of the Laws in this regard. Forests in Bangladesh are home to many species of indigenous tress, plants, insects, birds and animals, some of them are rare. Almost 80% of terrestrial biodiversity finds refuge in forests.

GLOBAL WARMING : - Health experts around the world warn that with rise in temperature, due to global warming, the Vector-borne diseases will increase. Therefore, climate change poses a big health risk for the population. Although it is too early to predict the nature and extent of increase in infectious Diseases, experts believe that malaria, kalajar, influenza, various skin diseases, and other new or emerging diseases may affect the health of the population, bringing immense sufferings and increasing the economic burden of health cost. More emphasis on research and research- based adaptation programming and action should be in place.

It is recognized that like water and air, the forest acts as a sustaining source of life by regulating the water in the air and helping to create rains and fresh water catchments. In the context of Climate change, it is the most important function is to act as a carbon sink. To counter the effects Of global warming, creating forests is a very good option as they temper climate change by reducing the temperature, absorbing carbon dioxide, capturing water and causing precipitation. However, in a small country like Bangladesh with high population density and majority of the Population living on less than PPP US $ 2 a day, protecting and regenerating forests will not work Unless strong incentives and alternative livelihoods are provided to communities to protect them.

43

WASTE DISPOSAL: - The result of exodus from rural areas to major urban centres, in particular in Dhaka, has overstressed the volume of old water supply and affected the sanitation systems in the Cities. Municipal waste disposal is a constant challenge as the population keeps increasing and immediate measures should b taken to dispose waste. During the last decade, a section of the private sector has taken up programmes for door to door Waste collection and disposal from centralized points. Advocacy and awareness raising on the value of waste as a recyclable resource and successful piloting by private sector bodies/NGOs have succeeded to motivate people to a large scale in the activities of non-formal waste. The Government struggles to provide safe drinking water. Supplies from deep tube wells are considered safe while water treated from the river is not. People in urban areas take boiled water to avoid diarrhoeal diseases thus adding to energy consumption. In the rural areas, people take water from tube wells.

44

CARBON FOOD PRINT: -

Recent study made under the MoEF on Investment & Financial Flows (IFF) in the energy sector for addressing climate change shows that Bangladesh will require an investment of US $ 26.6 billion, in the coming years up to 2030, to cut carbon emissions in such sector as coal production, generation of electricity from coal and gas, installation and upgrading of transmission and distribution systems, transport, brick kilns and industries that use boilers and motors. The IFF study predicts that the demand for domestic coal will rise as the government aims to generate electricity from coal since gas supplies are not adequate to meet electricity demand from gas-based electricity and increased use of coal by the brick kilns. However, in order to reduce emissions from coal-based fixed chimney brick kiln, the study recommends use of Hybrid Hoffman Kiln (HKK) which cuts emissions down by 50%. With increase in the use of coal, the carbon emissions may increase by up to 32% by 2030 from the current level of 17 %. On the 62other hand, emissions will drop from current level of 62% to 53% by 2030 in case of natural gas as its use is likely to expand.

SUSTAINABLE ENERGY: - The world’s most densely populated country ( except for few tiny city states), Bangladesh has been experiencing degradation of the natural environment for decades in terms of deforestation, river erosion soil quality depletion, water and air pollution, poor solid waste disposal, pollution from chemical fertilizer and pesticides, biodiversity loss and urban congestion. On top of all these, more recently climate change impacts consequent upon more frequent and devastating extreme climatic events and vagaries of nature caused by global warming are playing havoc both to natural and human systems. The government and the civil society and other actors in Bangladesh are becoming increasingly aware of the looming environmental rise due to the growing intense climate change and an even otherwise degradation of environment, particularly since the 1992 Rio Earth Summit. Environment being one of the three pillars of sustainable development along with social and economic pillars, must achieve appropriate attention in relation to environmental protection and response to the climate change.

THREATS FROM NATURAL CAUSES: -

Bangladesh is mostly a flat land with hills in the Chittagong Hill Tracts in the Southeast ,Moinamoti

in the Comilla, Barind and Garo Tracts in the upper reaches and hills in Sylhet. The seplaces have

extremely rich pools of biodiversity and also are identified as “biodiversity hot spots”in terms of

threats to biodiversity. Therefore the hill areas and hill forests need to be protected to ensure

ecological and biodiversity security. This challenge needs to be addressed more resolutely in future,

and the government is aware of this urgency.

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INFRASTRUCTURE : -

Demolition of hills is a key retardant in the growth of sustainable land and environment in

Bangladesh. Development of infrastructure, housing and brickfields in hilly areas cause immense

damage. Loss of hills and wood extraction has already taken a severe toll on the biodiversity of the

country. Environmental laws exist for the protection of hills, but since land management is under the

ambit of the Land Ministry and there are deficits in coordination between two ministries, the

implementation of laws becomes difficult.

Increased coordination is highly desirable and shared act to bring about the much needed co-

ordination.These call for large scale investments in technological innovation or adaptation in water

management, infrastructure development, cropping system and varietal improvement and

development, modelling of climate change and its impact (natural as well as socio-economic) and will

affect.

46

POLITICAL ANALYSIS :-

Recent livestock development activities of the Bangladeshi Government’s DLS have

attracted the attention of development partners, international organisations and NGOs.

The livestock subsector has emerged as an important source of gainful employment

and income for the vast majority of the rural poor for their poverty alleviation.

Important features of government policies towards the livestock subsector include (i)

the non- involvement of the government in production, processing and marketing

activities, (ii) support of the private sector and NGOs in dairy development activities

through research, extension, training, credit and the development of appropriate

infrastructure, (iii) reduction of import tariffs on equipment, animals, raw materials

and other inputs, and (iv) reduction and eventual elimination of subsidies on inputs,

including veterinary drugs, vaccines and AI services.

The government has been providing subsidies for mini dairy farms since 1993. This

policy resulted in an increase in milk production from 1.49 million tonnes in 1993–94

to 1.62 million tonnes in 1997–98 indicating a growth rate of 9%. In contrast, the

annual growth rate was only 1.26% during the period prior to this policy (from 1987

to 1994). Due to increasing domestic milk production importation of milk decreased

from taka 450 million in 1989–90 to taka 146 million in 1995 (Ahmed 2000). There

were only 2490 dairy farms in 1990–91 but this number increased to 29.6 thousand by

1997–98 (DLS 2000).

The government policy influence laws that regulate or tax are strongly affected the

business in Bangladesh. The government here is the very powerful agent for

establishing the rules and regulation. For that reason the company’s business are

affected. The milk vita company is also fall in this region.

The government's position on marketing ethics is very influential in Bangladesh.

Government have no such kind of marketing rules about the advertising and

marketing activities. The company can create any kind of advertisement and can

circulate it rather than only the political issue. The government's policy on the

economy is only in the boundary of the government issue. The company is running in

the independent way. Government only ask for the tax and the others cha rges. The

government also try to provide the infrastructural facilities for developing and rapidly

47

Legal Analysis :-

Environmental regulation

Environmental degradation and depletion of natural resources are often observed in Bangladesh due to poverty, over-population and lack of awareness on the subject. It is

manifested by deforestation, destruction of wetlands, depletion of soil nutrients, etc. Natural calamities like floods, cyclones and tidal-bores also result in severe socio-

economic andenvironmentaldamage. Waterborne diseases such as cholera are a serious threat to public health in

Bangladesh. Until the 1970s, many of Bangladesh's people became sick from drinking polluted water drawn from surface rivers. Aid agencies such as the United Nations

Children's Fund (UNICEF) built shallow wells throughout the country to help provide a safe source of drinking water to Bangladesh's poor.

In the 1990s, however, it was discovered that many of these wells were contaminated by arsenic, a poison that occurs naturally in Bangladesh's alluvial soils. The World

Bank estimates that 25 percent of the country's 4 million wells may be contaminated by arsenic. In 1998 the World Bank granted Bangladesh a $32.4 million credit to identify contaminated wells and develop alternative sources of safe drinking water.

In recent years, the government has taken some important steps towards protection of

the environment, environmentally sound use of natural resources and pollution control, Adoption of National Environment Policy and formulation of National Conservation Strategy and the National Environment Management Action Plan are

some of the measures undertaken by the government to integrated..

To take prompt legal action against environmental pollution, the government has recently set up Environment courts. The Environment Conservation Rules 1997 has also been passed by the Parliament. The Department of Environment is taking

measures to carry out surveys on identification and control of polluting industries, river pollution and automobile pollution.

Contract laws

Dairy farmers work hard every day to bring you fresh, great tasting, wholesome milk products. Almost all dairies are family-owned, and as active members of their communities,

farm families take pride in feeding our country and maintaining natural resources. That means preserving the land where they live and work, protecting the air and water they share

with neighbors, and providing the best care for their cows—the lifeblood of their business.

48

Consumer protection

This note on the Consumer Protection Act and its implications for the dairy industry has been

written by an engineer with experience in the food and dairy industry, having been involved

in various dairy projects as an engineer at APV, and who is now an attorney and a patent

attorney specializing in the Consumer Protection Act (from the supplier’s perspective),

product liability, and other aspects of technology related law.

Trade union

Bangladesh's government agreed on Monday to allow the country's 4 million garment

workers to form trade unions without prior permission from factory owners, a major concession to campaigners lobbying for widespread reforms to the industry following a

building collapse last month that killed more than 1,100 people.

The cabinet decision came a day after the government announced a plan to raise the minimum wage for garment workers, who are paid some of the lowest wages in the world to sew clothing bound for global retailers.

Corporate government

The report provides an in-depth analysis of the Global Market of Milk. It presents the latest

data of the market value, consumption, domestic production, exports and imports, price

dynamics and food balance. The report shows the sales data, allowing you to identify the key

drivers and restraints. You can find here a strategic analysis of key factors influencing the

market. Forecasts illustrate how the market will be transformed in the medium term.

49

Ethical Analysis :-

In 1971 and has, since then, seen an alternation of civilian and military regimes. The success

of the elections that brought current government to power in December2008 can be partly

attributed to the many institutional reforms initiated during the military-backed “care taker

regime” that lasted from 2007 to 2008. The technocratic “caretaker government” was

established after months of violence and instability due to the deterioration of the rapport

between the leading parties and their incapacity to reach an agreement on the formation of the

government.

During those two years civil liberties were significant in the context of the declared state of

emergency. On a somewhat more positive note, the government also engaged in the fight

against corruption with a host of measures including the ratification the UNCAC, undertook a

series of institutional reforms including the reconstitution of the Anti-Corruption

Commission, of the Electoral Commission and these of powers. In what turned out to be a

high speed and high profile anti-corruption drive a large number of high profile officials,

businesspersons and politicians.

Business Ethics :-

To be a subsidiary profession, as male farmers are often more inclined toward field crop

agriculture. Traditionally, the Bangladesh dairy sector has been dominated by the Doodh

wala and Ghosh communities Bangladesh dairy consumption is growing, albeit from

relatively low per capita levels (an estimated 44 milliliters of milk per day). When measured

against the World Health Organization recommended minimum level of 250 milliliters a day,

Bangladesh dairy consumption should increase five-fold. While local milk production has

increased, from 1.78 million metric tons in 2001/02 to 3.46 million metric tons in 2011/12,

domestic supplies are still lagging, and as a result Bangladesh is importing more dairy

products.

In rural Bangladesh, almost two out of every three households rear cattle to produce milk for

personal consumption. Surplus milk can be sold directly to neighbors or in the local market.

The average dairy farm has 3.5 head of cattle, with very low average yields of 200-250 liters

per 305-day lactation. Low herd yields generally reflect poor management practices and

inadequate investment in genetics and veterinary services. In Bangladesh, dairy farming is

generally considered consisting of small-scale intermediaries who collect fresh milk for

processing into ghee, curds, sweets and other products. In the absence of refrigeration, fresh

fluid milk typically represents a very small portion of the market.

50

Fresh milk processing and marketing in Bangladesh began in 1952, with the establishment of

Eastern Milk Products Limited, a private company, which sold products under the trade name

of Milk Vita. In1965, the company’s ownership was transferred to the Eastern Milk

Producers' Cooperative Union Ltd.,the first milk cooperative in what was then East Pakistan.

After independence, the cooperative was renamed the Bangladesh Milk Producers

Cooperative Union Limited (BMPCUL), and is best known today by its popular brand name,

Milk Vita. Milk Vita is Bangladesh's largest dairy, and currently represents almost half of

country’s total processed milk production. Members of the Milk Vita marketing cooperative

deliver milk to collection points, where it is then transported to a chilling plant before

processing. Milk Vita members receive technical training, livestock genetics, veterinary

and extension services, and various other production inputs.

51

DEMOGRAPHICS ANALYSIS :-

Overview :

The population of Bangladesh as of 15 March 2011 is 142.3 million (census 2011 result),

much less than recent (2007–2010) estimates of Bangladesh's population ranging from 150 to

170 million and it is the 8th most populous nation in the world. In 1951, the population was

44 million. It is also the most densely populated large country in the world, and it ranks 11th

in population density, when very small countries and city-states are included.

No Details Statistical Data

01 Population 166,280,712 (July 2014)

02 Age structure (0-14 years) 32.3%

03 Population growth rate 1.6% (2014)

04 Birth rate 21.61 births/1,000 population (2014)

05 Death rate 5.64 deaths/1,000 population (2014)

06 Life expectancy at birth 70 years (in 2012)

52

Historical populations in millions :-

Year Pop. ±% p.a.

1971 67.8 —

1980 80.6 +1.94%

1990 105.3 +2.71%

2000 129.6 +2.10%

2010 148.7 +1.38%

2012 161.1 +4.09%

Source: OECD/World Bank

53

CHAPTER:- 3

Steepled Analysis

of

Dairy in West Bengal

54

WEST BENGAL

SOCIAL ANALYSIS :-

INCOME DISTRIBUTION

West Bengal has been recognised as one of the important investment destinations in the

country. It has major locational advantages with ports at Kolkata and Haldia, efficient

network of railways, roadways and airways; stable power situation; as well as improved

telecommunication system. It also has a very large number of skilled and qualified technical

persons at different levels. Due to favourable agro-climatic conditions of the State,

innumerable opportunities exists in the areas of agriculture, horticulture, sericulture, tissue

culture and floriculture. The major industrial units in the State include tea, petrochemicals,

electronics, leather, information technology, automobiles, etc. In addition, magnific ent

landscapes makes the State a tourist hotspot.

Demographics

In 1901, Birbhum had a population of 902,280, which by 1981 rose to 2,095,829. According

to the 2001 census data, the total population has further risen to 3,015,422. The following

table summarises the population distribution:[30]

Rural/Urban Persons Males Females

Total 3,015,422 1,546,633 1,468,789

Rural 2,757,002 1,414,097 1,342,905

Urban 258,420 132,536 125,884

Hindus form around 65% of the population according to 2001 census. Muslims are about

33% of the population. There is a sprinkling of other religious groups in the population.

According to the 2001 census, 29.5% of the population belong to the scheduled castes and

6.7% to the scheduled tribes. Other than the those speaking the local dialect of Bengali, there

are tribal Santhals and ten other tribal communities in Birbhum with some presence, amongst

whom Koda, Mahali and Oraons are more common.

According to the 2011 censusBirbhum district has a population of 3,502,387, roughly equal

to the nation of Lithuania or the US state of Connecticut. This gives it a ranking of 84th in

India (out of a total of 640). The district has a population density of 771 inhabitants per

55

square kilometre (2,000/sq mi) . Its population growth rate over the decade 2001-2011 was

16.15%.Birbhum has a sex ratio of 956 females for every 1000 males, and a literacy rate of

70.9%.

Labour And Social Mobility

One of the main features of labour law in India is their multiplicity. Legislation can be

framed by both the centre and the states, since labour is in the Concurrent List of the Indian

constitution. These laws cover both organized industry as well as the unorganized sector.

Laws meant for the

Organized sector can be classified into three main categories—laws on labour management

relations ,laws on establishments and working conditions, and laws on welfare and social

security.

Laws on labour management relations include:

1. Industrial Disputes Act, 1947 which is applicable for any business, trade, service,

employment, occupation other than agricultural operation, hospitals, educational institutions,

certain government departments like defence, domestic service, cooperatives, and group

activities involving less than 10 persons.

2. Industrial Employment (Standing Orders) Act, 1946 for establishments employing 100 or

more persons.

3. Trade Unions Act, 1926 and the Amendment Act, 2001 for establishments with any seven

persons or 10 per cent of the workers, whichever is more, in a trade, employment or

occupation.

Laws on establishments and working conditions include:

4. Factories Act, 1948 for establishments employing 10 persons or more working with aid of

power, or 20 or more persons working without the aid of power.

5. Mines Act, 1952 for all mines, bore holes, oil wells, quarries, open cast workings, and

related activities.

6. Plantations Labour Act, 1951 for all plantations of 5 hectares or more employing 15 per

sons or more.

7. Contract Labour Act, 1970 for organizations or contractors employing 20 persons or more.

8. Payment of Wages Act, 1936 for all non-executives in all establishments earning below a

certain level.

9. Minimum Wages Act, 1948for all occupations and factory establishments, service

establishments, etc., notified in government schedules.

10. Payment of Bonus Act, 1965for establishments employing 20 persons or more.

56

11. Equal Remuneration Act, 1976 for all establishments, occupations, jobs.Laws on welfare

and social security include:

12. Employees’ Provident Fund Act, 1948 for all organizations employing 20 persons or

more.

13. Employees’ State Insurance Act, 1948 for all registered non-seasonal factories not

enjoying government benefits already.

14. Workmen’s Compensation Act, 1936 for any non-casual worker or those employed other

than for a business.

15. Maternity Benefit Act, 1972 for all factories, mines, plantations, establishments

employing

10 persons or more, in which women are work in

Life Style Change:-

Suddenly, SME sector in West Bengal has a reason to smile. The UK Government’s

Department for International Development (DFID) would provide an assistance of UK

Pounds 230 million (about Rs 2,400 Crore) in the form of loans for providing finance to the

SME sector in West Bengal.

Greg Barker, minister of state for energy, climate change and business engagement with

India, Government of UK announced that the money would be routed through institutions

like SIDBI and nationalized banks which in turn would extend funds to the SME sector.

Business ties between UK and India are quite strong. UK is the third largest investor in India,

while India is the fifth largest investor in the UK. However, this is first time that Government

of UK has formed DFID which will be responsible for improving business ties with India.

While addressing a seminar on ‘UK and West Bengal in Partnership’ here last week, the

minister said the two-way trade between UK and India is likely to double by 2015 while

investment both way was growing too.

Barker, who visited Kolkata with British Prime Minister David Cameron in November last

year, said, there were visible changes happening in the city and state. “The West Bengal

government is also supportive in nature,” he said.

In his last visit to the city, Barker had signed an agreement with the Kolkata Municipal

Corporation to collaborate in the development of sustainable, low carbon and climate change

resilient metropolis. The UK government would provide funds to the corporation through the

DFID.

57

Work Career & Leisure Attitude :

Employment is clearly one of the most significant issues in terms of the living conditions of

the people in West Bengal today. Quite simply, there are not enough jobs for all the people

who are willing r forced to work. The rate of employment generation in terms of aggregate

main work has been lower than the rate of expansion of the population, and substantially

lower than the rate of income growth. As a result, the pattern of job creation has shifted

towards, more casual, marginal, part-time and insecure contracts or self-employment .In this

respect, the state‘s experience has been similar to the rest of the country, although slightly

better than the all-India average .All over India, the period since the early 1990s has been

quite dismal from the point of view of employment generation, with sharp, and even startling,

decreases in the rate of employment generation in both rural and urban areas. For India as a

whole, the collapse in rural employment has been the most marked, with all forms of rural

employment ( principal as well as subsidiary activities) increasing by less than 0.6 per cent

per year over the period 1993-94 to 1999-2000, that is around one-third the rate of growth of

rural population. Most of this poor employment generation was because of the decline in

absolute employment in agriculture for India as a whole; non-agricultural employment in the

rural areas did not increase fast enough to make up for this decline. Even in the urban areas,

aggregate employment grew less lowly than before, although the deceleration was less

marked than for rural areas

Entreneunial spirit :-

The green revolution has been the dominant orientation for rural development programmes in

India for over two decades now. As a strategy it implied the introduction of high yielding

varieties, extensive use of farm machinery, energized well- irrigation, use of high doses of fer-

tilizers and pesticides directed at improving farm production. It was optimistically reckoned

that from this would emerge lasting solutions to the perpetual problem of rural poverty and

hunger.

This paper examines the extensive literature which has accumulated about the green

revolution with a view to determine the nature of impact of the developmental strategy on

different sections of rural society. Has the green revolution succeeded in reducing socio-

economic inequalities in rural India? Since 1967 when the High Yielding Varieties (of seeds)

Programmer (HYVP) was consciously introduced in Indian agriculture, a lot has been written

for and against the green revolution. It would, however, be erro neous to equate the green

revolution with HYVP alone.

58

Education

Employment opportunities exist in both government and private sectors. The National Dairy

Development Board (NDDB), a multi- locational organisation involved in planning,

implementing, financing and supporting farmer-owned professional agri-business enterprises

is the core PSU in this field. However, with almost every state aping Amul’s ‘cooperative’

success, employment opportunities have increased manifold for technologists and managers,

both in production and marketing.

With the entry of multinational giants like Nestle, Cadburys, Britannia, Kellogg's, Heritage

Foods, KFC, HLL, etc. into the Indian market, employment opportunities as well as salaries

have received a further boost.

Living Condition:-

Food Processing Industries Survey, West Bengal Dairy During the year 2010-11 on and

average 385.19 TKPD milk was procured from various District Milk Unions covering 1869

functional societies and 2.57 lac farmer members. Major portion of the procured milk was

supplied to different urban dairies and part of the milk was marketed in local towns and

Kolkata as processed milk and milk products. The Federation is also implementing Women

Dairy Cooperative Project (WDCP) funded by the Ministry of HRD, Govt. of India and

thereby empower ring the women economically and socially. Already 599 Societies have

been organized with 57,591 women members pouring on an average 39361 kgs. of milk per

day.

Goverment Research Spending :-

The State of West Bengal has a long tradition of backyard poultry keeping and poultry-related policies – it ranks third in India in terms of poultry population (61 millions), records

the highest poultry density (683 birds/sqkm) and boasts the highest per-capita consumption of eggs in the country (34 eggs/year) (FAO, 2008; GoWB, 2004). In particular, since 2005 the

Directorate of Animal Resources and Animal Health of the Government of West Bengal has been implementing a State sponsored Family-based Scheme, whereby the 22 State Poultry Farms distribute poultry birds to rural households with the objective to

establish small-scale, self-sustainable poultry production units, which can provide a small but steady income to rural dwellers. Between 2005 and 2008, about 5 million birds have been

distributed to around 500,000 households, which allegedly makes the Poultry Distribution Scheme the largest poultry programme in India, if not worldwide.

59

Technology Analysis :-

Industry Focused On Technological Affect :-

Post 1991, milk processing in large-scale plants was de-licensed and opened for domestic and private

players to participate. The Indian Dairy sector, at the time of liberalisation, was replete with many

inefficient, obsolete and sub-scale units, which faced direct threat from domestic and foreign

competition .Keeping in mind the employment and livelihoods contribution of these small and

cottage dairy processing units, the Government of India announced the Milk and Milk Products

Order (MMPO) in 1992, under the provisions of the Essential Commodities Act, 1955. The operation

of MMPO was largely limited to registration of dairy firms in the organised sector, though as a policy,

it had three major objectives: Augment the supply of milk in milk deficient regions of the country,

and ensure a certain minimum quality standard. Inspection and certification of dairy units for quality

control, health and hygiene. Maintain a database on the status of the organised dairy sector in the

country.

New Invention And Devlopment :

West Bengal is a state in the eastern region of India and is the nation's fourth-most populous

state, with over 91 million inhabitants. Spread over 34,267 sq mi (88,750 km2), it is bordered by the countries of Bangladesh, Nepal and Bhutan, and the Indian states of Odisha, Jharkhand, Bihar, Sikkim, and Assam. The state capital is Kolkata. Together with the

neighboring nation of Bangladesh and parts of the state of Tripura, it makes up the ethno-linguistic region of Bengal.

Ancient Bengal was the site of several major Vedic kingdoms. It was part of large Indian

empires such as the Maurya empire (second century BC) and Gupta Empire (fourth century AD); and part of the regional Pala Empire (eighth to 11th century) and Sena dynasty (11th–12th century). From the 13th century onward, the region was ruled by several sultans, Hindu

kings and Baro-Bhuyan landlords, until the beginning of British rule in the 18th century. The British East India Company cemented their hold on the region following the Battle of Plassey

in 1757, and Calcutta served for many years as the cap ital of British India. The early and prolonged exposure to British administration resulted in expansion of Western education, culminating in development in science, institutional education, and social reforms of the

region, including what became known as the Bengal Renaissance. A hotbed of the Indian independence movement through the early 20th century, Bengal was divided during India's

independence in 1947 along religious lines into two separate entities: West Bengal—a state of India—and East Bengal—a part of the newly created Pakistani Dominion—later becoming the independent nation of Bangladesh in 1971.

60

Rate Of Technology Transfer :-

Installation of New Plant & machinery

Thorough Renovation of existing plants

Redefining the Raw Milk Procurement system

Reframing the Packaged milk and milk products distribution system

Diversification to value-added dairy products.

Life Cycle & Speed Of Technological Obsolesence :-

the largest cattle and buffalo population in the world but average milk production per cow or buffalo is very low in comparison with advanced countries. Low milk production in India is

probably due to low genetic potential for milk production, poor nutrition, management and adverse agro climatic conditions. The state of West Bengal is also blessed with a high cattle and buffalo population but in relation to milk production the problem is the same. To cope

with the problem, various breeding strategies are in vogue with adoption of exotic germ plasm for higher milk production since 1960.

The present study was conducted with the object to study the adaptation of exotic germ plasm

in the tropical agro-climates of West Bengal with the aim to reduce the age of first calving, calving interval, and extend lactation length as well as 300 days' milk yield and thus to get a more economic return from dairy farming. The Hariana breed was taken as a base population

with exotic germ plasm drawn from Jersey, Holstein Friesian and Brown Swiss. Apart from the different genetic groups, production effects were also studied in different seasons viz.

winter, summer and monsoon. Genetic parameters were related to all the productive, reproductive and economic traits.

The present study includes age at first, second and third calving, lactation length and 300

days' lactation yield of three consecutive lactations in Jersey X Hariana (J X H), Holstein Friesian X Hariana (F X H) and Brown Swiss X Hariana (B X H) half bred cows in a organized farm of West Bengal.

Energy Cost And Used :-

Petroleum Conservation & Research Association (PCRA) is executing BEE-SME program in

Gujarat Dairy Cluster, supported by Bureau of Energy Efficiency (BEE) with an overall objective of improving the energy efficiency in cluster units. Gujarat Dairy cluster is one of

the very important clusters in India. Gujarat is 5thlargest milk producer state in India. This itself explains the importance of dairy cluster in Gujarat State. Accordingly this cluster was chosen for energy efficiency improvements by implementing energy efficient

measures/technological up gradation, so as to facilitate maximum replication in other dairy clusters in India. The main energy forms used in the cluster units are grid electricity, Natural

gas and small quantity of diesel oil.

61

change In It:-

Dairying, as a part of integrated agriculture, plays a tremendous role in uplifting the rural economy and reducing poverty. The increased demand (on an average 4% per year from

1996-2012) for milk and milk products, mainly driven by rapid population growth, growing urbanisation and rise in absolute income, opens significant market opportunity for the dairy farmers to increase income and improve livelihoods (Delgado et al 1999; Uddin et al 2010a;

Hemme 2012). The livestock sub-sector currently accounts for about 3% of the national Gross Domestic Products (GDP) and 15% of employment (Jabbar 2010). The high income

(1.62) and expenditure elasticity (0.95) of milk indicates a real market driven demand for milk (Islam and Jabbar 2009). This indicates a signal of structural change from more traditional and family-oriented dairy production systems to more market-oriented dairy

production systems resulting a substantial higher income and entrepreneur’s profit per unit of milk production (Uddin et al 2010b).

To respond to the rapid structural changes, there might need a clear and target-oriented

development programme. The success in dairy development, however, depends on the rate of adoption of different development intervention and the farmer’s positive perception on

specific technology or development programme (Batz et al 2003). Given with such background, the country has been continuously striving to implement several interventions to improve dairy farmer’s income and livelihoods (Haque 2009). But with few exceptions, the

research findings and dairy development programmes were adopted at a low rate by the majority of the farmers because either the innovations did not fit with the perceived needs or

there is a lack of direct participation of the farmers (Shamsuddin et al 2007).

Change In Mobile Technology :-

The Government of West Bengal set up an expert Committee on December 31, 1998, under the chairmanship of Ashesh Prasad Mitra to explore the necessity and scope for the

establishment of an 'Engineering and Technology' university in the state of West Bengal. Following their review, they decided that existing and forthcoming engineering and

technology colleges needed the guidance of a technological university for the growth and improvement of technological education.

The West Bengal University of Technology (WBUT) came into existence on August 5, 2000. It started functioning with the assumption of office of the first vice chancellor on January 15,

2001 as a sequel to the promulgation of the West Bengal University of Technology Act 2000, under the West Bengal Act XV of 2000 passed by the West Bengalleg is lature and published

in the Calcutta Gazette (Extraordinary) vide Publication dated July 20, 2000. The Act contemplates a General Council, an Executive Council, an Academic Council, Finance Committee and an Advisory Council as its regulatory and advisory bodies. The University in-

house department first started with formerly IIIT-C (Indian Institute of Information Technology-Calcutta) and used to offer BE in Information Technology (Reference: School

Of IT,WBUT.)

62

Environmental Analysis :-

Natural Resources:-

West Bengal stands third in the country in terms of mineral production. The state contributes about

one-fifth to the total production of minerals in the country. Coal constitutes 99% of the minerals

extracted in West Bengal; fireclay, china clay, limestone, copper, iron, wolfram, manganese and

dolomite are mined in small quantities. There are good possibilities of obtaining mineral oil and :-

natural gas in the areas near the Bay of Bengal.

West Bengal is the third largest state for coal production, accounting for about half of India's total.

Lignite mined in Darjeeling is used to make briquettes. West Bengal ranks next to Bihar and Madhya

Pradesh in production of fireclay. China clay used in the pottery, paper, textile, rubber and paint

industries are unearthed at Mohammad Bazar in Birbhum and Mejia in Bankura. Limestone which is

used in cement industry is mined in Bankura, Purulia, Darjeeling and Jalpaiguri. There are copper

mines in Jalpaiguri and Darjeeling. Small quantities of low quality iron-ore are mined in Bardhaman,

Purulia, Birbhum and Darjeeling. There are manganese in the Jhargram region of PaschimMedinipur,

Purulia and Bardhaman. The state’s production of dolomite comes from the Dooars region of

Jalpaiguri.

Global Warming:-

Present systems of livestock production have both positive (enhancing soil fertility through

application of manure) and negative (water pollution and air pollution due to improper

disposal of effluent from processing plants, global warming and climatic change)

consequences for the environment at local, regional, and international levels. The main

negative environmental effect of livestock production systems, which came into prominence

during the early 1990s, relates to global warming and climate change. Ruminants, especially

cattle and buffaloes, are a major source of methane (CH4) emissions. Methane is a

greenhouse gas that has many times more weather warming potential than carbon dioxide

(CO2). The major sources of methane within livestock production system are:From digestive

processes in animals (enteric fermentation),From anaerobic decomposition processes in

animal manure, From anaerobic decomposition processes of waste products from livestock

processing

Waste Disposal:-

Waste management is the collection, transport, processing or disposal, managing and

monitoring of waste materials. The term usually relates to materials produced by human

activity, and the process is generally undertaken to reduce their effect on health, the

environment or aesthetics. Waste management is a distinct practice from resource recovery

which focuses on delaying the rate of consumption of natural resources. The management of

63

wastes treats all materials as a single class, whether solid, liquid, gaseous or radioactive

substances, and tried to reduce the harmful environmental impacts of each through different

methods.

There are 609 hazardous waste generating units in West Bengal. Amongst the nineteen

districts of the state, two districts (Darjeeling and South Dinajpur) do not generate hazardous

waste. The total quantum of hazardous waste generation from West Bengal is 2,59,776.24

metric tonnes per annum. (MTPA), out of which 46 per cent (1,20,596.41 MTPA) is

landfillable, 49 per cent (1,26,596.38 MTPA) is recyclable and the remaining 5 per cent

(12,583.45 MTPA) is incinerable by nature. Interestingly, it was observed that the majority of

hazardous waste generating units in the state is small and is generating meagre quantity of

waste, whereas the units generating substantial amount of hazardous wastes are limited in

number.

Carbon Foot Print

Resources Risks (-) Underlying factors

Water Pollution of ground and surface water with

organic material

Poor management of

processing waste

Depletion of water resources Increased use of fresh water

Air Dust Dust from milk powder

processing

Greenhouse gases Increased greenhouse gases

emissions

Bad odor Bad odor from waste and

processing

SUSTAINABLE ENERGY : -

Pollution from livestock systems can affect water supplies, the atmosphere, and the food

chain directly, by the transmission of toxins and diseases through animal products. It is not

surprising that developed countries are experiencing serious problems of livestock pollution,

while in developing countries, pollution is less of a problem because of the small units, low

stocking rates, and subsistence nature of production systems. In developed countries,

nutrients are generally in oversupply; but in most areas of developing countries there exist

chronic nutrient and energy shortages.

64

THREATS FROM NATURAL CAUSES : -

Notwithstanding constraints and threats posed by the growth of peri-urban dairy production

centers, there are many qualitative and quantitative benefits of this structural change in that

huge dietary improvements are observed from the regular and cheap supply of high quality

milk and dairy products to urban people. In addition, benefits include the generation of

employment and the provision of a profitable business to people engaged in the profession.

The threats, weaknesses, strengths, and opportunities associated with peri-urban dairy farms

calls for a comprehensive analysis and subsequent actions to be taken by planners and policy-

makers. Recently, the Government of India decided to relocate dairy farms from the urban

centers (Delhi) to

rural areas to alleviate the problem of environmental pollution and waste disposal. However,

weak infrastructure and processing facilities, poor hygienic conditions, and lack of regulatory

mechanisms in rural areas are limiting factors for the orderly growth of dairy industry

INFRASTRUCTURE :

The Eastern regional station of National Dairy Research institute has infrastructure facilities

like well equipped laboratories, Cattle Herd, Fodder Production Farm, Library, Guest House

etc. There are five sections namely (1) Animal Nutrition, (2) Livestock Production &

Management, (3) Dairy Economics, (4) Dairy Extension, (5) Dairy Biotechnology which are

actively engaged in research training and extension work. This station has good laboratory

facilities for the research work of M.Sc. and Ph. D. Scholars.

65

ECONOMICAL ANALYSIS :-

ECONOMIC GROWTH : -

West Bengal has established12678 organized district cooperative societies(cumulative)-2.08

percent of all India figure- and has marketed 673 TLPD-3.56 percent of all India figure- by

incorporating 66000 farmers(about 0.5 percent of India’s figure) as their members during

2007- 08(NDDB:2007-08). But per capita availability of milk (128 gr. /day) for West Bengal

is much lower than all India figure (252 gr. /day). Thus the analysis of relative cost, return

and profitability of both cooperative and non-cooperative dairying in the area of West Bengal

is expected to provide a synoptic view of

the economics of production of dairying industry and thereby contribute to higher

employment potential and greater value addition in agriculture.

INTEREST RATE & MONETARY POLICY : -

Interest on capital (includeing mili chanimal) is evaluated at the rate of 10% per annum on

the present value of fixed assets. The interest on working capital was not computed as there

was regular flow of income from milk, which was utilized for the working expanses (

GOVERNMENT SPENDING : -

So, in order to make dairy farms more profitable and higher value addition in agricultural

sector with higher employment generation, government and other institutional sources should

provide special packages immediately to the non cooperative farms and bad cooperative

farms in general and all dairy farms of BPL category in particular.

UNEMPLOYMENT POLICIES : -

The Greater Calcutta Milk Supply Scheme had provided direct employment to a very large

number of staff and workers (including daily paid workers) of this State. Besides full-time

employment, the GCMSS offered part-time employment to girl students to enable them

defray their educational expenses. With the increase in output the number of Milk Booths had

also increased proportionately and the part-time employment potentiality also increased.

A portion of the processed milk of Haringhata Dairy was also being sold to the consumers of

Ranaghat&Krishnagar townships through the unemployed youth as a measure of providing

them with partial employment

66

EXCHANGE RATES : -

Commercial imports of dairy commodities were significant until the early 1970s, comprising

of about 50% to 60% of throughput, but declined significantly in the 1980s and 1990s.

However, the imports of milk powders and butter/butter oil increased substantially in the late

1990s, mainly due to low import duties on these two products as a commitment under the

WTO Agreement. India is among the few countries who has low bound rates of duty for

major dairy products like milk powders, butter, butter oil, and cheese (15-40%) as opposed to

relatively high tariffs (100-150%) on less sensitive products like milk, cream, butter milk, and

yoghurt (Figure 1.22). The small flow of cheap imports in the second half of the 1990s,

mainly due to low import tariffs on the milk powders and other major dairy products, may

have hurt some segments of the domestic industry, but was negligible in scale compared to

the overall domestic market. Although imports of cheese are still low, they grew at a rapid

rate during the 1990s.

INFLATION RATES : -

Dairying being a relatively scale neutral activity when opportunity costs of labor are low,

animal rearing assumes particular importance in the context of small, marginal, and landless

households for whom animal rearing ensures nutrition, fluid cash, and sustainable

employment, as well as a means to increase inflation-resistant assets. Furthermore, gains

from dairying may be distributed more equitably than crop production, since landholding is

not a prerequisite to dairy production where feeds can be bought or bartered for manure or

labor. Recognizing this fact, governments at national and state levels have included the

livestock sector as a vital component in poverty alleviation and rural development

programs, yielding good results. Of course, much more is desired in this direction, since the

constraints facing this category of households are not comprehended properly, or attempts to

redress the problems are not taken up properly.

67

STAGE OF BUSSINESS CYCLE : -

Establishment of commercial dairy farms adjoining urban areas may create several social

problems. The growth stimulus coming from strong demand for livestock products is not

transmitted to the rural areas, where it could encourage broader development and more

equitable wealth distribution. Small producers find it difficult to compete with large

commercial units. Milk production in rural areas generates supplementary income and

employment opportunities, which are adversely affected by the growth of urban dairy farms.

Notwithstanding constraints and threats posed by the growth urban dairy production centers,

there are many qualitative and quantitative benefits of this structural change in that huge

dietary improvements are observed from the regular and cheap supply of high quality milk

and dairy products to urban people. In addition, benefits include the generation o f

employment and the provision of a profitable business to people engaged in the profession.

CONSUMER CONFIDENCE : -

Seasonality in milk production is well known in the Indian dairy sector and is more

pronounced for buffaloes. Such fluctuations in supply and demand result in fluctuations in

prices (producer and consumer), thus subjecting milk producers and consumers to large

variations in prices during a year. The procurement prices are marginally higher during the

lean season compared with the flush period. The WPI of milk relative to the WPI of food

articles and all commodities decreased during 1990s, which indicates increased production of

milk and/or imports of dairy products in the post-reforms era. Milk prices relative to milk

input prices such as oil cakes, fodder, and cattle feed show that input prices have increased

faster than milk prices in the 1990s. These trends in input prices indicate that increased milk

production should come from productivity enhancement; otherwise, increases in costs will

make milk and dairy products costly and unaffordable to the masses.

68

Political Analysis :-

West Bengal Milk Federation is a state level apex body implementing dairy development

activities in West Bengal.

The overall picture of the 15 milk unions in West Bengal showed that an average 3.34 TKPD milk (including 1.30 TKPD from other sources) is being

procured from 3,998 Societies with 2,67,124 members. Most of this quantum of milk finds its way into the

Government dairy plants, Mother dairy and Metro dairy.

The Federation is also implementing Women Dairy Cooperative Project (WDCP)

funded by the Ministry of HRD, Govt. of India and thereby empowering the women economically and

socially. Already 599 Societies have been organized with 57,709 women members.

We are also implementing Integrated Dairy

Development Project (IDDP) in the hilly, non-OF and backward areas of West Bengal - 650 Primary Societies have been organized with 36,564 members.

The Federation is also holding 28% equity share capital

of M/s Bengal Nestors limited. 25,000 LPD dairyat Ausgram, Burdwan; 34% of the equity share capital of

M/s Bengal Dairy at Midnapore of a capacity of 50,000 LPD.

The Federation is assisting the Milk Unions in infrastructure development under Technical Support

Scheme. For the last fifteen years, 8th December is being organized by the federation as the State Milk Day.

Federation is offering awards to the best milk unions, primary societies in respect of milk procurement, best farmers in the state, etc. It facilitates recognition of their performance during the year which gives a boost to the dairy development activities of the state.

69

Legal Analysis:-

Employment laws

The West Bengal Milk Federation will tie up with the dairy major Amul and National

Dairy Development Board to produce cheese and chocolates."It is expected that within

six months we will go for production of cheese and chocolates and I have asked the

state government to sanction Rs 20 crore for the project,' said MrParashDutta, chairman

West Bengal Milk Federation.

He said West Bengal Milk Federation in collaboration with National Dairy

Development Board is trying to revive Himul in North Bengal which went into decline

during Left Front rule.

Consumer protection

According to sources, the cooperative colossus GCMMF that owns the popular dairy brand

Amul will soon have a foothold in the dairy market of West Bengal as well.

The cooperative will invest about Rs. 200 crore in beginning a unit in the state. The plant will

be located in the Sankrail Food Park in Howrah district of West Bengal.

Govt officials say the GCMMF plant will act as the main business unit that will attract other businesses to the Food Park.

It is worth repeating that Amul has lately been working hard to expand its business further

afield. The new plant in West Bengal will only be an important step towards its goal of transforming itself into a powerful dairy cooperative across the country. Many of its units outside Gujarat are already rated quite successful.

Trade union

We are one of the leading to manufacture and supply Dairy Plants from capacities of 500

LPD tp 5000 LPD. The machines are made under the strict guidance of shop specialists and engineers. These plants include designing and fabrication of different equipment. We make

this machine from high quality stainless steel and customized according to the customer's specific specifications and demands. These are available at cost effective prices.

70

Corporate governance

The Federation registered on 06.06.1983 currently with 93% of its share held by the State

Govt., provided shares worth Rs.383.49 lakes and Rs.29.38 lakes from Milk Unions. It has a Board of Directors with Chairpersons of the Milk Unions, Govt. nominees and others on it.

Objectives:

1. To provide assured and remunerative market for the milk produced by the farmer members.

2. To provide quality milk to urban consumer. 3. To built village level institution in co-operative sector to manage the dairy activities.

4. To ensure provision of milk production inputs, processing facilities and dissemination of know how.

5. To facilitate rural development by providing opportunities for self-employment at village level, preventing migration to urban areas, introducing cash economy and

opportunities for steady income.

71

Ethical Analysis :-

All leveals :-

West Bengal is a state in the eastern region of India and is the nation's fourth-most populous

state, with over 91 million inhabitants. Spread over 34,267 sq mi (88,750 km2), it is bordered

by the countries of Bangladesh, Nepal and Bhutan, and the Indian states of Odisha,

Jharkhand, Bihar, Sikkim, and Assam. The state capital is Kolkata. Together with the

neighboring nation of Bangladesh and parts of the state of Tripura, it makes up the ethno-

linguistic region of Bengal.

Ancient Bengal was the site of several major Vedic kingdoms. It was part of large Indian

empires such as the Maurya empire (second century BC) and Gupta Empire (fourth century

AD); and part of the regional Pala Empire (eighth to 11th century) and Sena dynasty (11th–

12th century). From the 13th century onward, the region was ruled by several sultans, Hindu

kings and Baro-Bhuyan landlords, until the beginning of British rule in the 18th century. The

British East India Company cemented their hold on the region following the Battle of Plassey

in 1757, and Calcutta served for many years as the capital of British India. The early and

prolonged exposure to British administration resulted in expansion of Western education,

culminating in development in science, institutional education, and social reforms of the

region, including what became known as the Bengal Renaissance. A hotbed of the Indian

independence movement through the early 20th century, Bengal was divided during India's

independence in 1947 along religious lines into two separate entitie s: West Bengal—a state

of India—and East Bengal—a part of the newly created Pakistani Dominion—later becoming

the independent nation of Bangladesh in 1971.

A major agricultural producer, West Bengal is the sixth- largest contributor to India's net

domestic product.[4] Noted for its political activism, the state was ruled by democratically

elected communist government for 34 years, starting from 1977. It is noted for its cultural

activities and presence of cultural and educational institutions; the state capital Kolkata is

known as the "cultural capital of India". The state's cultural heritage, besides varied folk

traditions, ranges from stalwarts in literature including Nobel- laureate Rabindranath Tagore

to scores of musicians, film-makers and artists. West Bengal is also distinct from most other

Indian states in its appreciation and practice of playing football besides the national favourite

sport cricket

72

Reputation :-

West Bengal schools are run by the state government or by private organisations, including

religious institutions. Instruction is mainly in English or Bengali, though Urdu is also used,

especially in Central Kolkata. The secondary schools are affiliated with the Council for the

Indian School Certificate Examinations (CISCE), the Central Board for Secondary Education

(CBSE), the National Institute of Open School (NIOS) or the West Bengal Board of

Secondary Education. Under the 10+2+3 plan, after completing secondary school, students

typically enroll for 2 years in a junior college, also known as pre-university, or in schools

with a higher secondary facility affiliated with the West Bengal Council of Higher Secondary

Education or any central board. Students choose from one of three streams, namely liberal

arts, commerce or science. Upon completing the required coursework, students may enroll in

general or professional degree programs.

West Bengal has eighteen universities. The University of Calcutta, the oldest public

university in India, has 136 affiliated colleges. Kolkata has played a pioneering role in the

development of the modern education system in India. It is the gateway to the revolution of

European education. Sir William Jones (philologist) established the Asiatic Society in 1794

for promoting oriental studies. People like Ram Mohan Roy, David Hare, Ishwar Chandra

Vidyasagar, Alexander Duff and William Carey played a leading role in the setting up of

modern schools and colleges in the city. The Fort William College was established in 1810.

The Hindu College was established in 1817. The Scottish Church College, which is the oldest

Christian liberal arts college in South Asia, started its journey in 1830. In 1855 the Hindu

College was renamed as the Presidency College.

Business Ethics :-

Assessment of Automotive Industry in West Bengal - Vision 2022 About Confederation of

Indian Industry (CII) The Confederation of Indian Industry (CII) works to create and sustain

an environment conducive to the growth of industry in India, partnering industry and

government alike through advisory and consultative processes. CII is a non-government, not-

for-profit, industry led and industry managed organization, playing a proactive role in India's

development process. Founded over 114 years ago, it is India's premier business association,

with a direct membership of over 7800 organizations from the private as well as public

sectors, including SME’s and MNC’s, and an indirect membership of over 90,000 companies

from around 385 national and regional sectoral associations. CII catalyses change by working

closely with government on policy issues, enhancing efficiency, competitiveness and

expanding business opportunities for industry through a range of specialized services and

global linkages. It also provides a platform for sectoral consensus building and networking.

73

CHAPTER:- 3

Steepled Analysis

of

Dairy in Gujarat / India

74

GUJARAT

Social Analysis:-

INCOME DISTRIBUTION

During the pre- independence era, public and private agencies dominated the dairy industry,

although government policy did not favour any one organizational form. Early efforts to

organize dairying along cooperative lines were made immediately after the enactment of the

Cooperative Societies Act, 1912. The present day Anand Pattern dairy cooperatives trace its

origin to the establishment of a dairy cooperative at Anand in 1946 under the direction and

guidance of Sardar Vallabhbhai Patel. The dairy farmers of the then Kheda District of Gujarat

organized themselves to form a dairy cooperative in order to directly undertake sale and

processing of milk collected from member dairy farmers of the district.

The government of India took some steps to improve the quality of milch animals and their

productivity through the Key Village Scheme, launched as part of the First Five-Year Plan

(1951-56) and the Intensive Cattle Development Plan, launched under the Third Five-Year

plan (1961-66). However, in the absence of a stable and remunerative market for milk,

production remained more or less stagnant. During the two decades between 1951 and 1970,

milk production grew by barely 1 per cent annually, while per capita milk availability

declined by an equivalent amount.

During the 1960s, various state governments tried different strategies to develop dairying,

including establishing dairies run by their own departments, setting up cattle colonies in

urban areas, and organizing milk schemes. Almost invariably, dairy processing plants were

built in cities rather than in the milk sheds where milk was produced. This urban orientation

to milk production led to the establishment of cattle colonies in Mumbai, Calcutta, and

Madras. The objective was to meet the demand for milk and milk products in big cities

through improvements in milk collection, processing, and distribution.

The Operation Flood (OF) programme implemented by the National Dairy Development

Board (NDDB) from 1970 to 1996 played the key role in bringing about the transformation in

dairy development in the country. The OF programme established milk producers

cooperatives in villages and made modern technology available to them.

The importance of Operation Flood lies in its focus on small rural producers. Lucrative

alternate employment opportunities are often not available in Indian villages, making

dairying an attractive option for many villagers. Low capital intensity, a short operating

75

cycle, and steady returns make dairying a preferred activity among marginal (less than one

hectare of land holding) and small farmers (those having 1-2 hectares of land holding), who

make up about 57 per cent of rural households in India. Dairying is feasible even for the

landless, who depend for fodder on common grazing and forest lands. Nearly 70 million

Indian households hold a total of 98 million cows and buffaloes.

Labour And Social Mobility

The recent economic growth process in India exhibits a problem which is increasingly

common throughout the developing world: the apparent inability of even high rates of

even high rates of output growth to generate sufficient opportunities for “decent work” to

meet the needs of the growing labour force. This reflects two general tendencies: a shift in

production structure across and within sectors, whereby income expansion is associated with

demand for goods and services produced in more capital- intensive conditions without

generating demand for labour-intensive goods and services; and the associated technological

and organisational changes that improve labour productivity.

The economic strategy that depended on export markets and credit-driven bubbles to

provide the stimulus for growth has been flawed because it did not generate better living

conditions for the bulk of the population, and poor employment generation was a central

feature of this. Both external and domestic economic conditions require change in this

strategy. It is argued that this is possible with a shift in emphasis towards wage-led growth,

driven not only by direct employment schemes but also greater public provision of basic

goods and services that have strong multiplier effects. The focus must be not on preventing

labour-saving technological progress from occurring, but rather on ensuring that the surpluses

from such activities are mobilised (directly through taxation or indirectly through provision

of incentives) and transferred to demand other activities that employ more labour, even as

they improve the quality of life. Investment must also be directed towards activities that lift

any possible wage goods constraints on full employment, and especially one ensuring the

viability of cultivation. In such cases full employment can become a growth strategy in itself

76

Work Career & Leisure Attitude :-

Understanding the culture of the recent immigrants to the United States is critical for

rehabilitation service providers to work effectively with people with disabilities from these

cultures. This monograph seeks to give rehabilitation professionals an overview of what can

be described as a complex and diverse culture: the Indian way of life. Recent demographics

show that India is one of the top ten countries of origin for immigration to the U.S.

(Schmidley and Campbell, 1999). Thus, it is likely that rehabilitation service providers will

be interacting more and more with people with disabilities from this culture, as well as their

families.

Few countries can claim of such a rich and complex history as India. India was inhabited by a

group of people called Dravidians three thousand years before Christ. The Dravidians were

followed by the Indo–Aryans and Muslim sultans and kings, among others. Vasco Da Gama

introduced colonialism in the fifteenth century. Many groups of people including the

Portuguese, Dutch, French and British fought for trade rights throughout much of the

sixteenth century, with the British East India Company emerging supreme by the latter half of

the eighteenth century. In 1859, India was formally annexed as part of the British Empire.

After India fought for her freedom and became independent from the British on August 15,

1947, the country was divided into India and Pakistan. In 1971 the eastern wing of Pakistan

became the independent nation–state of Bangladesh (Joshi, 1997)

India is expected to become the most populated country of the world within the next two

decades. For the present, it ranks second to China. Population crossed the one billion mark in

May 2000. Probably one of the first impressions a new visitor to the country has is the

teeming masses of people. It is rare to find a deserted street in India. To make matters more

colorful and interesting, India's population is a bewildering mix of ethnic, religious and

linguistic groups further sub–divided by the caste system. Although potentially

overwhelming for the new visitor to the country, to the people of India, the numbers of

people that comprise its population add up to a feeling of being surrounded and connected,

rather than one of suffocation or over crowding. There are always people coming and going,

an air of activity, and the hustle and bustle of daily life lend a feeling of energy to the

atmosphere. Probably one of the first struggles of the newly re–located Indian is to try to

recreate that same feeling of being connected and supported by a larger network. In a quiet

U.S. suburban setting, that feeling may be hard to come by.

Climate in India is extremely diverse. When you speak of India's climate, you generally

conjure up images of hot and hotter. However, parts of the northernmost regions of India

(like Kashmir) are among the coldest inhabited places on earth. On the northern plains and

the western deserts, temperatures can reach 120 degrees or more between May and June.

77

Entreneunial spirit :-

India is emerging as a global economic power and the economy is growing at an average of

8- 9 per cent for last couple of years. The Dairy sector is contributing significantly to the

national economy and with 112 MMT milk productions during 2009-10; it ranks first in the

World.

It provides gainful employment and supplementary income to large number of people. Dairy

sector contribute significantly on poverty reduction in rural areas as income from milk in the

total income of underprivileged family is as high as 75 to 80% during drought and the

employment generated is relatively high.

Dairy entrepreneurs can effectively contribute to the society in the areas

mentioned below:

1. Creates jobs for the large section of unemployed educated youth.

2. Creates market opportunities for the indigenous products through product diversification

and innovative marketing.

3. Utilizes the non-conventional resources like solar energy, rain water, agricultural by

products and other locally available resources.

4. Entrepreneurs introduce new technologies and new products through entrepreneurial spirit.

5. Reducing Poverty, nutritional hunger through dairy development (Increase income and

equity).

6. Export orientation of the dairy products (food safety and quality). Export of animals, milk

products.

7. Surveillance and monitoring of emerging livestock disease due to decline in genetic

diversity.

8. Developing breeding policy/conservation of elite indigenous germplasm.

9. Integrating small holder dairy production in value chain.

10. Adapting dairy production to climate change (methane mitigation, housing scheme).

11. Sustainability of commercial dairy production

78

Education :-

Prior to their arrival in the U.S., most Indian immigrants were of upper middle class

professional backgrounds. Foreign–born Indians have had the highest levels of education in

all categories in any time period in the history of immigration in the U.S. Based on the 1990

census, the percentages of Indians who had bachelor's and master's degrees was 71 percent,

the highest of any group in the country (Sheth, 1997). The educational achievements of the

Indian group in the U.S. is due to a large percentage of select immigrant professionals, who

chose to leave India and come to the U.S. for better opportunities for themselves and their

children. For Indian parents, the single most important reason to immigrate is career and their

own professional advancement, as well as opportunities for their children.

A majority of Indian immigrants work in professions similar to those they worked in India. In

recent years, many have changed professions due to changes in the labor market and to avo id

discrimination by American employers. Hundreds of Asians own and repair taxi–cabs in the

nation's large metropolitan cities, especially New York. Many news–stands and small

businesses are run by this same group. Many new Indians immigrants work very hard in low

capital, low financial and high risk small businesses in order to make a living.

Living Condition:-

India’s Current Standards

The following are the standards for cities or towns with populations greater than

lakh people:

• Every person with more than five cattle kept for the purpose of profit must be reg

-is tered with the veterinary department of the state government or a local authority specified

by the state government.

• Every registration application must supply full information about the number and

types of animals to be kept, the size of the area in which they will be kept, flooring and

ventilation, food and water supply, disinfection, drainage, waste disposal and any other

relevant details.

• If the registering authority is satisfied about the welfare of the animals, the registration

certificate will be issued.

• Every registration certificate is valid for three years, after which an application for

renewal must be made.

79

Technology Analysis :-

Goverment Research Spending :-

The survey was administered in seven villages: Navli, Napad, Chikodhra, Valasan, Sandesar,

Vadod, and Bedva between December 30, 2011 and January 3, 2012.These villages were

recommended by Amul to me based on my criteria of close proximity to Anand. The close

proximity of these villages ensured that the milk producers either provided their milk to the

local collection center or kept for domestic consumption. All of these villages are within a ten

kilometer radius of Anand, and as such, fall under the Kaira District Co-operative Milk

Producers’ union collection facilities. All of the milk collected in these villages flows to

Anand’sAmul dairy, and as a result, all the milk producers are reimbursed based on the same

pricing scale. Ihad conducted a similar survey in Navli back in May 2011. Based on my

interaction with farmers in Navli and feedback from the professors at Institute of Rural

Management at Anand, I constructed a more detailed questionnaire to be administered to the

farmers.

New Invention And Devlopment :

he growth in urban population coupled with the expansion of the railway network in the mid

19th century, brought about a revolution in milk production and supply. Individual railway

firms began transporting milk from rural areas to London from the 1840s and 1850s. Possibly

the first such instance was in 1846, when St Thomas’s Hospital in South wark contracted

with milk suppliers outside London to provide milk by rail.[42] The Great Western Railway

was an early and enthusiastic adopter, and began to transport milk into London from

Maidenhead in 1860, despite much criticism. By 1900, the Company was transpor ting over

25 million gallons annually.[43] The milk trade grew slowly through the 1860s, but went

through a period of extensive, structural change in the 1870s and 1880s.

Urban demand began to grow, as consumer purchasing power increased and milk became

regarded as a required daily commodity. Over the last three decades of the 19th century,

demand for milk in most parts of the country doubled, or in some cases, tripled. Legislation

in 1875 made the adulteration of milk illegal - this combined with a marketing campaign to

change the image of milk. The proportion of rural imports by rail as a percentage of total milk

consumption in London grew from under 5% in the 1860s to over 96% by the early 20th

century. By that point, the supply system for milk was the most highly organized and

integrated of any food product.[42]

80

.

The first glass bottle packaging for milk was used in the 1870s. The first company to do so

may have been the New York Dairy Company in 1877. The Express Dairy Company in

England began glass bottle production in 1880. In 1884, Hervey Thatcher, an American

inventor from New York, invented a glass milk bottle, called 'Thatcher's Common Sense

Milk Jar', which was sealed with a waxed paper disk.[44] Later, in 1932, plastic-coated paper

milk cartons were introduced commercially.

In 1863, French chemist and biologist Louis Pasteur invented pasteurization, a method of

killing harmful bacteria in beverages and food products. He developed this method while on

summer vacation in Arbois, to remedy the frequent acidity of the local wines. He found out

experimentally that it is sufficient to heat a young wine to only about 50–60 °C (122–140 °F)

for a brief time to kill the microbes, and that the wine could be nevertheless properly aged

without sacrificing the final quality. In honor of Pasteur, the process became known as

"pasteurization". Pasteurization was originally used as a way of preventing wine and beer

from souring.[46] Commercial pasteurizing equipment was produced in Germany in the 1880s,

and the process had been adopted in Copenhagen and Stockholm by 1885.

Rate Of Technology Transfer :-

To implement these objectives, some very specific procedures were used. The first step used agro-

ecological zoning and transects while the second step used Rapid Rural Appraisal (RRA) methods.

These methods were backed up by secondary data and existing surveys, as well as group knowledge

gained while discussing information from zoning and transects. The third and fourth steps used

roundtable discussions from the research group as well as extension personnel and industry leaders.

These comprised the diagnostic and design stages, which led to a series of constraint analysis and

carefully formulated on-farm trials. They also led to the testing stage. Some advanced technologies

that showed potential widespread application were used in Pilot Development Programmes prior to

the development of extension and dissemination campaigns directed specifically at target areas and

target groups defined under the Farming System groupings developed in stages I and II. Various

methods for screening potential technologies represented a convenient.

81

Life Cycle & Speed Of Technological Obsolesence :-

India had tremendous milk production in 40 years and has become the world's largest milk-

producing nation with a gross output of 84.6 million tons in 2001. The Indian Dairy Industry

has achieved this strength of a producer-owned and professionally-managed cooperative

system, despite the facts that a majority of dairy farmers are illiterate and run small, marginal

operations and for many farmers, selling milk is their sole source of income. More than 10

million dairy farmers belong to 96,000 local dairy cooperatives, who sell their products to

one of 170 milk producers' cooperative unions who in turn are supported by 15 state

cooperative milk marketing federations.

In India dairy business has been practiced as rural cottage industry over the years. Semi-

commercial dairy started with the establishment of military dairy farms and co-operative milk

unions throughout the country towards the end of the 19th century. Since Independence this

Industry has made rapid progress. A large number of modern milk and milk product factories

have since been established.The organized dairies in India have been successfully engaged in

the routine commercial production of pasteurized bottled milk for Indian dairy products.

The growth of Indian Dairy Industry during the last three decades has been impressive, at

more than 5% per annum; and in the 90's the country has emerged as the largest producer of

milk. This is not a small achievement when we consider the fact that dairying in India is

largely stringent that farmers in general keep dairy animals in proportion to their free crop

and also are available for family labor with little or no purchased inputs and a minimum of

marketed outputs. The existence of restrictive trade policy milk in the Diary Industry and the

emergence of Amul type cooperatives have changed the dairy farming practices in the

country. Farmers have gained the favorable price for their milk and for their production

which was essentially a self-reliant one is which is now being transformed into a commercial

proposition.

Energy Cost And Used :-

• Gujarat is a leading state for milk production in the country. It has got a major hubs in

milk processing. Asia’s second largest dairy ‘Dudhsagar Milk Cooperative Dairy’ is

one of them.

• More than 12000 Village level co-operating society are functioning.

• Average Daily Milk collection is to the tune of 80 lakh litres.

• Raw material used and product types:

Milk, Ghee, Butter, Butter Milk, Paneer, Shrikhand, Milk Powder, etc.

82

• Major energy consuming equipments: Milk Pasteurizer, Cream Pasteurizer, Wash

Water Pasteurizer, Refrigeration System, Incubator Room having electrical heaters,

Spray Dryers, Blowers, DG Sets, Air Compressors, Lightings, Pumps, Motors,

Boilers.

• Types of fuels used:

Mainly Electricity, but also HSD, FO.

• %Share of energy in cost basket: 5 to 7

Possible areas of energy conservation: Refrigeration System, Powder Plants, Air

Compressors, Dryers, Building, Boiler Service, Lighting, Powder Pckg, Maximum

Demand, etc.

Likely energy saving potential:

• 10 % to 15 % of total energy consumption.

Likely technologies for energy efficiency improvement:

(i) Solar Water Heating System,

(ii) Trigeneration system / VAM

(iii) Installation of De-super heater for refrigerant.

(iv) Installing hot water fan coil unit in place of electrical heaters & ceiling fans,

Chnage in it :-

e mobile subscriber base contracted by 3% in 2012 and growth was only marginal in

2013;

espite this, with mobile penetration of 72%, there was room for further growth;

obile ARPUs appeared to be stabilising and even growing by 2012/2013 as operators

cleared out their subscriber databases and data services became more significant;

number of operators had exited the market following the so-called 2G scandal and

further fall-out was anticipated;

83

he re-auction of 2G licences took place in three steps (November 2012, March 2013,

February 2014);

he initial outcome of the re-auction process was judged to be a major failure for the

government but the third auction in February 2014 was a resounding success;

steadily, but certainly not as fast as expected;

he regulator and the operators continued to argue over 3G roaming rights until a ruling

by the TDSAT in early 2014 resolved the issue in favour of the operators;

world’s third largest smartphone market;

government;

84

ENVIRONMENTAL ANALYSIS :-

NATURAL RESOURCES : -

The changes in milk production to new labour- and resource- saving capital-intensive technologies

raise questions regarding determination of the economically and environmentally optimal animal

concentration level agriculture as a whole and on individual farms. Non-critical transfer of

experiences from large farms (mega-farms) without taking into account regional aspects can create

additional problems, which could considerably impair aspects of milk production, including its

environmental safety.

Concentration of animals on large complexes with loose-housing systems (untied housing systems)

and milking in milking parlours has a number of advantages in comparison with geographically

dispersed cattle farms, in particular:

• Increased management efficiency.

• Reduced production costs (labour costs reduced 2.5-3-fold).

• Improved feed conversion efficiency, due to group feeding with the help of mixer-feed

distributors, to 80 kg feed units per 100 kg of milk.

• Improved milk quality.

GLOBAL WARMING : -

Milk being a very nutritious medium to almost all kinds of microorganism, gets spoiled very quickly

when it is exposed to outside environment. With summers becoming increasingly warmer, the

collection of milk of good quality is a great challenge

WASTE DISPOSAL : - The increase in environmental problems on farms (first of all water

pollution by manure and slurry) becomes the determining factor of further livestock concentration. A

high concentration of dairy cattle on the land leads to a sharp increase in manure output from the farm

in connection with the change to new technologies. International studies of the agricultural load on the

environment have revealed that a farm with 3,000 livestock units produces the same amount of waste

85

a

SUSTAINABLE ENERGY : -

Milk is one of those natural products consumed by people all around the world in one form or

another. Milk is rich in calcium. Milk contains carbohydrates which are the most important

source of energy in our diet. Milk and dairy products have become an inseparable part of our

daily lives. Milk and milk products, such as cheese and butter are the main source of calcium

in the diet of people in western and non – western countries. Milk also contains fats which are

also an important constituent of human cell walls. Milk has extraordinary nutritional value

and is called a balanced diet.

THREATS FROM NATURAL CAUSES : -

It is critical to use well cleaned, sanitized buckets and equipment to handle raw milk.

Minimising the initial bacteria numbers in raw milk helps limit the total number of bacteria

that may grow after harvest. Once milking is completed the milk should be transferred as

soon as possible to the collecting centre’s cooling tank.

Milking centres have the same obligation. They should use only clean, sanitary equipment

and keep milk as cold as possible. Bacteria growth in raw milk produces different forms of

spoilage depending on the type of bacteria involved. Many milk spoilage bacteria produce

enzymes that damage the milk fat or proteins. This damage results in inferior product yields

.Microbial quality of milk Milk is a perishable food item containing water, fat, protein and

minerals –essential components of human diet.

These components also promote rapid bacterial growth. In warm raw milk, bacteria numbers

may double every20 to 30 minutes – leading to very high bacteria counts in a few hours. For

example 1000 bacteria in the milk will become 40,96,000 bacteria within a period of six

hours and will become 1,04,85,76,000 in 10 hours.

86

INFRASTRUCTURE : -

An area of 1,000 ha arable land is a necessary minimum amount to be able to spread 30,000

tons of manure. This increases the costs of transport and the number of work hours to spread

the manure on the small-sized fields in the Leningrad Oblast. At the same time, the decrease

in the dry matter content of the manure makes it impossible to store slurry in the field during

winter

87

ECONOMICAL ANALYSIS :-

ECONOMIC GROWTH : -

With an annual dairy output worth over Rs 12,500 crore, Gujarat has acquired highest share of about

21 per cent in terms of total dairy output worth over Rs 60,000 crore across top 20 states in India,

according to an ASSOCHAM study on dairy sector.

“However with 12 per cent share, Gujarat has ranked third in terms of generating direct employment

in the dairy sector, besides, the state is ranked fourth with a share of about 7.5 per cent in 1493 dairy

factories across India,” noted a study titled ‘Unlocking Growth of Potential of Indian Dairy Industry,’

conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

In terms of milk production, Gujarat is ranked fifth with about eight per cent share across India in

total milk production of over 120 MT. Besides, Gujarat has recorded fifth highest growth rate of about

24 per cent in milk production which is above the all-India growth rate of about 19 per cent,

highlighted the study prepared by the ASSOCHAM Economic Research Bureau (AERB).

In terms of per-capita milk availability, the state has ranked fifth and the state has clocked a growth

rate of about 17 per cent in this regard which is well above all-India growth rate of 12 per cent.

INTEREST RATE & MONETARY POLICY : -

Gujarat achieved as much as 35% of augmentation in its power generation capacity during the period

1995–96 and 2000–01. The producers (IPPs) have contributed significantly in this addition. As a

matter of fact Gujarat is one of the first few states in India to have encouraged private sector

investment and are already in operation. In addition the liquid cargo (chemicals) handling port at

Dahej is also set up in joint sector and made operational. At an investor's summit entitled Vibrant

Gujarat arranged between January 10, 2007 to January 13, 2007, at Science City, Ahmedabad, the

state government signed 104 Memorandum of Understandings for Special Economic Zones totaling

worth Rs 2.5 lakh crore

GOVERNMENT SPENDING : -

After making the provisions for the proposed tax relief, the state budget for the year 2012-13 shows

an estimated overall surplus of Rs 317.22 crore.

Commenting on the budget, chief minister, Mr. Narendra Modi termed it as 'ambitious and farsighted

for inclusive growth of the state.'

"Over the last ten years Gujarat has attained greater prosperity and equitable development through

fiscal discipline and management, coupled with optimum utilization of monetary, natural and human

resources," he said.

"This budget has several welfare projects for every family. There is something for everyone, be it

poor, backward, have-nots, youth, labour, young or old, children or women, trader or entrepreneur,

providing everybody an opportunity to take part in the state's development,"

88

UNEMPLOYMENT POLICIES : -

YOUTH unemployment in the region is at record levels yet the dairy industry is struggling to find

workers. Frustrated farmers have even offered free housing as well as training and other perks but still

can’t find a reliable workforce.

If we want to get our cows milked we have to employ overseas workers. It’s a shame because we get a

bad name, but we just can’t run our farm on local labour because we can’t get enough people to come

and work for us.”

TAXATION : -

The people of Gujarat has reason to cheer as the state government has proposed tax reduction and

exemption on number of items including a long awaited cut in electricity duty in its budget for the

fiscal 2012-13. Much to the relief of consumers and industry this year when Gujarat is slated to go for

assembly elections, the finance minister of the state VajubhaiVala, who presented the budget on

Friday in the state assembly, avoided imposing new taxes and hike in any other levies.

As per the government estimates, the tax sops offered are to the tune of Rs 410 crore, which includes

Rs 200 crore each for slashing of electricity duty and value added tax (VAT) rates

EXCHANGE RATES : -

The state government on Friday proposed to bring down electricity duty in case of residential and

education institute categories by 25 per cent. With this, the electricity duty for residential would stand

at 15 per cent from 20 per cent earlier and 7.75 per cent for educational institutions and hostels from

from 10 per cent.

As a result, consumers in residential category would be able to save about 24 paise per unit from the

electricity duty charged at around 96 paise per unit at present. Nearly 10 million electricity consumers

including residential, rural and educational establishments of the state will get a benefit of lower duty.

89

INFLATION RATES : -

If a farmer has a choice between either earning 9% (fixed deposit rates in India) on the money he has

received by selling the land or milking, it will depend on the rate of return. In the sensitivity table, the

rates of return were calculated only for an annual year. In the following example, I calculate a return

for a piece of land that the farmer could use for his milking enterprise. The cost of construction of a

shed would Rs. 1 Million and purchasing 10 cows would cost anywhere between Rs. 250,000 – Rs.

400,000. Let us use the market price that we used earlier which is Rs. 25, 000 for an animal. We will

peg the monthly net income earned from an animal at Rs. 2500, and multiplied by 10 each month will

result in amonthly income of the farm of Rs. 250,000. We realize that the rate of return is a

comfortable20%, and the farmer would be happy to pursue such an activity. The rate of return

calculated in this instance is an internal rate of return. However, we must not forget the fact that this

would elevate milking from a secondary source of income to a primary source of income. We must

also remember that milking would experience higher volatility than placing one’s money in a fixed 22

deposit account. However, the differential is large enough that the farmer would be tempted to enter

the milking industry.

STAGE OF BUSSINESS CYCLE : -

The dairy industry is riding high. Milk prices are strong, feed costs are moderating, fertilizer costs

have come down, and interest rates are low. "We are definitely in the top of the cycle," Kohl said,

with expectations, exports and trade with China bringing the markets to a boil.

What should a dairy producer's strategies be? To start with, pay all expenses and get payables current.

"This is the time to get your balance sheet and income statement in order," Kohl said. "If you aren't

paying all expenses and have payables current now, you have a problem."

Build working capital (current assets minus current liabilities) to 33 percent of revenue or expenses.

"Your goal should be to self finance, if you had to, at least a third of your operating expenses," Kohl

explained

CONSUMER CONFIDENCE : -

“Concentration of milk production in some pockets together with high cost of transportation has led to

rising disparity amid states in terms of per-capita milk availability,” noted the ASSOCHAM study.

There is an urgent need to build up strategies to increase competitiveness in all segments of dairy

chain, input supply, milk production, processing, distribution and retailing, recommended the

ASSOCHAM study. “For promotion of dairy sector in India, emphasis now needs to be more on how

to involve and encourage the village population into proactively adopting dairy industry.

Promoting dairy entrepreneurship, strengthening economic viability of dairy farms, increasing the link

between rural production areas and urban markets and promotion of small quantity packaging to meet

the needs of poor are certain key areas highlighted by the ASSOCHAM study with a view to

formulate a long-term growth strategy for the dairy sector.

90

Legal Analysis :-

Environment regulation

India ranks first in milk production with total volume of 115 million tons. Driven by steady population growth and rising income, milk consumption continues to rise in India. World

milk production declined by 2 per cent in the last three years, according to FAO estimates, Indian production has increased by 4 per cent. The milk production in India accounts for more than 13% of the total world output and 57% of total Asia's production. The top five

milk producing nations in the world are India, USA, Russia, Germany and France

Rural households consume almost 50 percent of total milk production. The remaining 50 percent is sold in the domestic market. Of the share of milk sold in the domestic market, almost 50 percent is consumed in fluid form, 35 percent is consumed as traditional products

(cheese, yoghurt and milk based sweets), and 15 percent is consumed for the production of butter, ghee, milk powder and other processed dairy products (including baby foods, ice

cream, whey powder, casein, and milk albumin).

Most dairy products are consumed in the fresh form and only a small quantity is processed for value addition. In recent years, however, the market for branded processed food products

has expanded. Although only around 2 per cent food is processed in India, still the highest processing happens in the dairy sector, where 50 per cent of the total produce is processed, of which only 13 per cent is processed by the organized sector.

Employment laws

With an annual dairy output worth over Rs. 12,500 crore, Gujarat, which heralded the White Revolution in the 1960s-70s, has acquired the highest share of about 21 per cent in terms of

the total dairy output worth around ₹60,000 crore across the top 20 States in India, according to an Assocham study on the dairy sector.

“However, with 12 per cent share, Gujarat ranks third in terms of generating direct

employment in the dairy sector. Besides, the State ranks fourth with a share of about 7.5 per cent in 1,493 dairy factories across India,” a study titled ‘Unlocking growth potential of Indian dairy industry,’ conducted by The Associated Chambers of Commerce and Industry of

India (Assocham), said on Friday.

In terms of milk production, Gujarat is ranked fifth with about eight per cent share across India in total milk production of over 120 million tonnes (mt). Besides, Gujarat has recorded

the fifth highest growth rate of about 24 per cent in milk production, which is above the all-

91

India growth rate of about 19 per cent, the study prepared by the Assocham Economic Research Bureau (AERB) said.

The State ranks fifth in terms of per-capita milk availability and has clocked a growth rate of

about 17 per cent in this regard, well above the all-India growth rate of 12 per cent.

Consumer protection

India's dairy food major Gujarat Cooperative Milk Marketing Federation (GCMMF), better

known as Amul, seems all set to enter the Japanese market after setbacks of a decade ago.

The breakthrough follows a positive response from a delegation of Japan's Agriculture and

Livestock Industry Corp (ALIC), which visited GCMMF's facilities including process..

Amul products are currently processed and packaged for marketing within the country

through 24 factories either owned by GCMMF or its 22 member cooperative dairies.

GCMMF is in the process of further raising the handling capacity to keep pace.

For several years India has been the largest milk producer. Its current output is 91.5 million

tonnes, growing at four to five percent annually. Milk product exports have been rising

steadily and are set to reach 30,000 tonnes this year, up from 25,000 tonnes last year.

Export import

Dairy activities have traditionally been integral to India’s rural economy. The country is the

world’s largest producer of dairy products and also their largest consumer. Almost its entire produce is consumed in the domestic market and the country is neither an importer nor an

exporter, except in a marginal sense.

Despite being the world’s largest producer, the dairy sector is by and large in the primitive stage of development and modernization. Though India may boast of a 200 million cattle population, the average output of an Indian cow is only one seventh of its American

counterpart. Indian breeds of cows are considered inferior in terms of productivity. Moreover, the sector is plagued with various other impediments like shortage of fodder, its poor quality,

dismal transportation facilities and a poorly developed cold chain infrastructure.

As a result, the supply side lacks in elasticity that is expected of it. On the demand side, the situation is buoyant. With the sustained growth of the Indian economy and a consequent rise in the purchasing power during the last two decades, more and more people today are able to

afford milk and various other dairy products. This trend is expected to continue with the sector experiencing a robust growth in demand in the short and medium run. If the

impediments in the way of growth and development are left unaddressed,

92

Ethical Analysis:-

All leveals :-

Corruption in India is a major issue that adversely affects its economy. A study conducted by

Transparency International in year 2005 found that more than 62% of Indians had firsthand

experience of paying bribes or influence peddling to get jobs done in public offices

successfully. In its study conducted in year 2008, Transparency International reports about

40% of Indians had firsthand experience of paying bribes or using a contact to get a job done

in public office.

Reputation :-

After the government had lifted the ban on export of milk powder in June last year, India exported

about 60,000 tonnes of SMP. Industry sources said if there was no cap, the country could export

about100,000tonneyear.

In the last five years, SMP export had been banned twice .

India processes about 370,000 tonnes of SMP a year. This year, owing to depressed domestic

demand and good milk production, there is surplus stock. The oversupply resulted in SMP pri

falling Rs 180-200 a kg in 2011-12 to Rs 140-150 a kg in the last few months of 2012.

93

CHAPTER:- 4

Swot Analysis

94

95

4.1. COMPARISON OF STEEPLED ANALYSIS Dairy Industry

STEELPLED

INDIA

(with special emphasis on

Gujarat)

BANGALADESH

Social

Consumption of Milk:

About 45% of milk production

is consumed as fluid milk.

There is huge demand of milk

sweets on festival time.

Health Consciousness:

The growing numbers of

educated consumers and

increasing awareness among

consumers about healthy milk

products has emerged as an

important driver for

development and introduction

of new functional, pro-biotic

and healthy products in dairy

sector.

Consumption Pattern:

• Powdered milk has since been

imported to feed the increasing

number of growing children and

the demands of an increasing

population affect imports.

• They are consuming ghee,

curds, sweets and other

products.

Health

• 46% of the children suffers

from moderate to severe

underweight problem.

• 43% of children under 5 years

old are stunted.

• 45 % of rural families

and 76 % of urban families were

below the acceptable caloric

intake level. World Health

Organization recommended

minimum level of 250 milliliters

96

Vegetarian culture a day, Bangladesh milk and milk

product consumption should

increase five-fold.

.

Technology

Crossbreeding technologies:

it produced two new cross

breeds namely Karan Fries

and Karan Swiss at NDRI by

the scientists.

Quality Control :

Indian standards in the

processed foods sector and

the implementation of quality

standards

These standards cover raw

materials permitted and their

quality parameters

Eg: Food colors/additives,

containers for packing, milk

powder and condensed milk,

for compulsory certification.

Improved genetic material

achieved primarily through

cross breeding of cattle.

Gujarat Cooperative Milk

• The USD technology is very

useful for the preserving the

milk without the refreezing.

• New technologies in the

innovation in freezing system.

• Mostly machinery and others

parts are imported from other

country for processing the milk.

So high cost of milk production.

• Due to this reason local milk

product’s prices are higher

than the imported milk

product’s price.

97

Marketing Federation

develop the technology to

make cheese from buffalo

milk. World over it is made

from cow milk

Economic

India is one of world’s

large producer of milk.

2015 milk production is

expected to rise 5% to touch

133 million tones.

India’s milk production has

gone up by 25 million tones

over the last five years,

The country processes

nearly 400,000 tones of

Skimmed milk powder

and the industry is

confident of exports topping

120,000 tones a year.

Indian SMP prices are also

lower than the price of milk

powder from New Zealand.

Pakistan, Afghanistan and

Bangladesh are among the

Milk Production

2011/12 3,463 (Thousand

Metric Tons)

Importing non fat dry milk (NFDM) powder.

In 2011/12, Bangladesh imports of dairy and cream

(HS code 0402) reached are cord $221 million.

The annual per capita milk

consumption increased from 16 kg in 1981 to 32 kg in

2005.

98

major markets for Indian

skimmed milk powder.

Environment

• India has been put

under pressure time and

again, but India can not

effort to assume

responsibility for reduction

in green house gases, is

such an issue that has

potential to affect as a factor

to milk industry.

• Laws

1. Environment protection

Act 1986

2. The water prevention and

control of pollution Act ,

1974, 1988

Season

• Winter :October to March

• Hot, humid summer:

March to June

• Rainy monsoon :

June to October

Natural disasters :

Cyclones, Droughts,

Earthquakes, Floods, and

Landslides.

Law

The Environment pollution

control ordinance 1977.

Political

The Intensive Dairy

Development Programme,

strengthening infrastructure

for quality and clean milk

production,

Assistance to Cooperatives,

and Dairy Entrepreneurship

Development Scheme are

some of the Indian

Government’s important

schemes/programmes for

Bangladesh political

environment is not so stable.

Every Business has affected by

the unstable government and

the political issues.

The government also try to

99

meeting the growing

demand for milk.

MoFPI also provide

assistance under NMFP for

setting up/upgradation of

milk processing unit and

setting up of cold storage

for dairy products.

provide the infrastructure

facilities to improve the milk

production in Bangladesh.

Legal

Powder milk (skimmed or

full Cream) whole and

infant milk food, pure milk

Ghee and Butter, except

when exported as branded

products in consumer packs,

not exceeding 5 kgs in

weight, will be exempted

from the following

conditions :

• Quantitative ceiling

as may be notified by the

DGFT from time to time.

• Registration-cum-

allocation certificate issued

by agricultural and

processed Food Products

Export Development

Authority (APEDA).

• The Director

General of Foreign Trade

has removed the

quantitative ceiling for

Imports of milk and dairy

products in Bangladesh are

regulated by the Bangladesh

Import Policy Order 2009-2012,

which sets several

requirements, including:

(1) A certificate attesting that

the product is below the

acceptable level of radioactivity

(for milk, milk powder and milk

products it is 95 bq of CS-137

per kilogram),

(2) A certificate indicating that

the product is fit for human

consumption, and

(3) A certificate indicating that

the product is free of melamine

(the acceptable limit is 1 mg per

kilogram). While there are no

quantitative restrictions on

imports of dairy products,

100

export of powder milk and

ghee and their exports now

freely allowed. If exported

in packaging exceeding 5

kg. in weight, continues to

be under the quantitative

ceilings.

For Local

• Prevention of Food

Adulteration Act, 1954

• Milk and Milk

Product Order (MMPO)

1992

Standards on Weights and

Measures (Packaged

Commodities) Rules, 1977

several border charges like

supplementary duties,

regulatory duties, and value

added tax (VAT) are added to

the 25-percent (highest level)

customs duty for import of

these products.

The organization, in which

environment is playing should

comply the rules and regulation

of that government. Milk

product industry get the

crepitate

from the Bangladesh Standard

Testing Institute for operating

in the country. They also give

the tax and other charges to the

government

Ethical

Customer Behaviour:

• higher disposable

income, consumers today

demand for quality and

healthy food that is offered as

per their convenience and

changing needs.

Television advertisement

has an important role in

promoting unhealthy dietary

Customer Behaviour:

They also highly recognize

discounts, taste, quality .

Advertisement :

The government's position on

marketing ethics is very

influential in Bangladesh.

Government have no such kind

of marketing rules about the

advertising and marketing

101

practices among children,

including diets which are

high in fat, sodium or added

sugar

activities. The company can

create any kind of

advertisement

Demography

India

• Population

1210,193,422

• India is the second

largest populous country in

the world.

• It has majority of

young population which

create huge market and

demand for milk and milk

products.

• Population

166,280,712

• Age structure

• 0-14 years: 32.3%

• Population growth rate

:1.6%

• Birth rate :21.61

• Death rate :5.64

45 % of rural families and 76 %

of urban families were below

the acceptable caloric intake

level.

102

Chapter - 5

Conclusion

103

5.1 THE IMPORTANCE OF INDIA IN BANGLADESH’S TRADE

India plays an important role in Bangladesh’s trade since the independence, and recently,

especially in 1990s, Bangladesh’s trade with India increased tremendously. The . It is

observed from the table that the average annual growth rates of Bangladesh’s trade with

India, during 1980 to 1995, were much higher than those with the SAARC and the world. For

example, during 1980- 85, while average annual growth rates of Bangladesh’s trade with the

World and SAARC countries, were 2.46 per cent and –0.11 per cent respectively, this figure

was 9.72 per cent with India. During 1985-90 the growth rates with the world, SAARC

countries and India were 7.94, 18.68 and 20.63 per cent respectively. The growth rate of

trade with India increased very significantly during 1990-95. While the growth rates with the

world and SAARC countries were 16.70 and 57.85 percent respectively, the growth rate with

India was 87.29 per cent. Though the growth rates with SAARC countries and India were

slightly negative during 1995-2000, those figures turns into convincingly positive in 2001.

The overall growth performance was negative in 2002 following the September 11 incident

in 2001 in the USA. However, Bangladesh’s trade got momentum in 2003 with all noted

destinations.

In the context of Bangladesh’s global trade though India’s share is not convincingly high, it

may be mentioned that the influence of India on Bangladesh’s trade has been increasing over

the years. From the Table 5, it is observed that India’s share in Bangladesh’s global trade has

increased to 10.7 percent in 1995 from 3.6 percent in 1990. Though this share has slightly

decreased in recent years, it is still almost 10 percent.

104

The important feature is that though India’s share in Bangladesh’s global import has been

increasing over the years, India’s contribution in Bangladesh’s global exports has been

shrinking. For example, India’s share in Bangladesh’s global import increased to 15.5

percent in 2003 from 4.7 percent in 1990. On the other hand, with regard to exports, this

share decreased to 0.7 percent from 1.3 percent during the same period.

As per as Bangladesh’s trade with the SAARC countries is concerned, India certainly holds

an important position, and over the years its dominance has been increasing. India provided

with the 94.1 percent of Bangladesh’s imports from the SAARC countries in 2003.

India’s contribution to Bangladesh’s exports to SAARC countries increased to 53.5 percent

in 2003 from 36.6 percent in 1990. India’s share in Bangladesh’s total trade with the SAARC

countries increased from 60.6 percent to 91.7 percent during the same period of time.

Based on official trade data only, India was the fourth largest importing source for

Bangladesh in 1990 just after Japan, Singapore and the USA. If unofficial trade were taken

into account, India’s position would be higher. The table also reveals that India topped the

list for Bangladesh’s imports in 1995, and since then India continued to maintain the largest

importing source for Bangladesh.

105

5.2 BUSINESS OPPORTUNITIES AND IMPACT IN FUTURE

General findings:

Bangaladesh:

1. When measured against the World Health Organization recommended minimum level of

250 milliliters a day, Bangladesh milk and milk product consumption should increase

five-fold.

2. While local milk production has increased, from 1.78 million metric tons in 2001/02 to

3.46 million metric tons in 2011/12, domestic supplies are still lagging, and as a result

Bangladesh is importing more milk and milk product products.

3. Between 2001 and 2011 Bangladeshi milk consumption doubled.Bangladesh milk and

milk product consumption is growing, albeit from relatively low per capita levels (an

estimated 44 milliliters of milk per day).

India :

1. THE continued growth in milk production has also resulted in India emerging as a

leading exporter of skimmed milk powder (SMP). While India is expected to produce

about 133 million tonnes of milk this fiscal,

2. The country processes nearly 400,000 tonnes of SMP and the industry is confident of

exports topping 120,000 tonnes a year. Pakistan, Afghanistan and Bangladesh are among

the major markets for Indian skimmed milk powder.

3. Gujarat has high production of milk and well developed infrastructure. Technological all

has enough improvement.

4. As per above possible implication we can establish a Milk Processing Factory in Gujarat

and we are planning export milk and milk products to Bangladesh.

106

5.3. IMPACT OF THIS BUSINESS

1. As an entrepreneur our manufacturing plant will be in Gujarat. We can create new

employment opportunity and increase utilization of local resources properly.

2. Contribution to the GDP and earn foreign income.

3. Improvement of the Bangladesh – Gujarat international trade relation.

107

Chapter – 6

BIBLIOGRAPHY

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BIBLIOGRAPHY

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