Milk Industry

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Analysis of Milk Industry

1.1

INTRODUCTION TO THE DAIRY

REVOLUTION

It was in 1904 when the seed of cooperation was sown in India with the

passage of first Cooperative Act. Since then, the cooperative movement has

made rapid strides in all fields of socio-economic activities. In the fields of

agriculture credit, fertilizer disbursement, sugar production, handloom, etc,

the cooperatives have created a strong niche. However, the contribution of

cooperatives to India’s dairy industry is enormous. The cooperatives have

ushered in milk revolution in the country.

The highest milk producer in the entire globe – India boasts of that status.

India is otherwise known as the ‘Oyster’ of the global dairy industry, with

opportunities galore to the entrepreneurs globally. Anyone might want to

capitalize on the largest and fastest growing milk and mil products' market.

The dairy industry in India has been witnessing rapid growth. The

liberalized economy provides more opportunities for MNCs and foreign

investors to release the full potential of this industry. The main aim of the

Indian dairy industry is only to better manage the national resources to

http://www.thecheers.org/World/article_290_DAIRY-COOPERATIVES-IN-INDIA.html

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enhance milk production and upgrade milk processing using innovative

technologies

Traditionally, in India dairying has been a rural cottage industry. Semi-

commercial dairying started with the establishment of military dairy farms

and co-operative milk unions throughout the country towards the end of the

nineteenth century.

In earlier years, many households owned their own ‘family cow’ or secured

milk from a neighbor who had one. With the increase in urban population

fewer households could afford to keep a cow for private use & moreover

there were other problems also like the high cost of milk production,

problems of sanitation etc. restricted the practice; and gradually the family

cow in the city was eliminated and city cattle were all sent back to the rural

areas.

Gradually farmers living near the cities took advantage of their proximity to

the cities & began supplying milk to the urban population; this gave rise to

the fluid milk-sheds we see today in every city of our country.

Prior to the 1850s most milk was necessarily produced within a short

distance of the place of consumption because of lack of suitable means of

transportation and refrigeration.

The Indian Dairy Industry has made rapid progress since

Independence. A large number of modern milk plants and product factories

have since been established. These organised dairies have been successfully

engaged in the routine commercial production of pasteurized bottled milk

and various Western and Indian dairy products. With modern knowledge of

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the protection of milk during transportation, it became possible to locate

dairies where land was less expensive and crops could be grown more

economically. In India, the market milk technology may be considered to

have commenced in 1950, with the functioning of the Central Dairy of

Aarey Milk Colony, and milk product technology in 1956 with the

establishment of AMUL Dairy, Anand. Indian dairy sector is still mainly an

unorganised sector as barely 10% of our total milk production undergoes

organised handling.Before the cooperative movement began, the dairy

industry in the Kaira District was being exploited by middlemen who

supplied milk to the consumer. It began as a response to this exploitation and

put a end to it. It grew because it responded to the farmers financially as well

as with services. It has thrived because it is owned by farmers who have a

stake in its success. And because it has been managed by capable

professionals and strengthened by dedicated scientists, technologists and

workers, it has forged ahead. Today in India, there are 75,000 dairy

cooperative societies, spread all over the country with a membership of 10

million. The farmer in the village is now assured of a better future thanks to

these cooperatives. Recently one of the European Embassies in Delhi

requested us for information on the five biggest "companies" in the dairy

business. The first three are in the cooperative sector - The Gujarat

Cooperative Milk Marketing Federation (GCMMF). The Kaira District

Cooperative Milk Producers' Union Limited and The Mehsana District

Cooperative Milk Producers' Union. The Kaira District Cooperative is the

second best in the country. It helped to create GCMMF, the apex body of all

cooperatives in Gujarat.

1.2

http://www.amul.com/gcmmf.html

http://www.amul.com/gcmmf.html

http://www.indiadairy.com/tech_list_dairyplants_cooperatives.html

http://www.indiadairy.com/tech_list_dairyplants_cooperatives.html

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THE BIRTH

In the forties the dairy industry was dominated by one firm -

POLSON. Established by a rather enterprising gentleman who discovered

that Kaira District, of what was then Bombay Presidency, produced a good

deal of milk. He established a creamery and for a while the name Polsons

was synonymous with butter - much as Amul is today.

One of Polson's business was to supply milk to Bombay. As Kaira district

was an abundant source of the commodity, Polson was chosen to procure it

from there. He in turn, entered into an arrangement with a number of

contractors who actually went to the villages and collected the milk.

Everyone was happy. Bombay received reasonably good quality milk and

Polson made a handsome profit. The contractors too managed to earn large

margins by overquoting the farmers. It was only the poor farmers who were

unhappy for it. They invested in the animal feed and fodder and they put in

their labor. Yet, it was they who received the smallest share of the Bombay

consumers' rupee. The arrangement benefited everyone but them

The First step: formation of Kaira union

Realizing that something needed to be done about the unequal balance

of wealth, they turned to Sardar Vallabhbhai Patel for advice. Sardar Patel

knew that their only chance of earning a decent income was when they

themselves gained control over the resources they created. He also knew that

the cooperatives offered them the best chance of gaining that control. So he

advised them to

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stop selling milk to Polson and form a cooperative of their own. In his

opinion they were to own their own dairy unit. He said, "Throw out Polson

and his milk contractors". They followed his advice and the Kaira District

Cooperative Milk Producers' Union (AMUL) was born, in 1946. By good

fortune, they could get as Chairman - Shri Tribhuvandas Patel, an equally

remarkable man. He understood the concept of cooperation and he

understood people. His integrity was absolute. Because the farmers of Kaira

district trusted and respected Tribhuvandas Patel, the cooperative was able to

pass through some very difficult times and eventually become a model of

cooperative dairying throughout the world.

The Kaira Union began with a clear goal, to ensure that its producer

members received the highest possible share of the consumers' rupee. This

goal itself defined their direction. The focus was on production by the

masses, not mass production. By the early 'sixties, the modest experiment in

Kaira had not only become a success, people began to recognize it as such.

Farmers came from all parts of Gujarat to learn. They went back to their own

districts and started their own cooperatives. The result - Together, the district

milk producers unions of Gujarat own the Gujarat Cooperative Milk

Marketing Federation which markets the milk and milk products

manufactured by its owners. Last year the Federation's turnover was over

Rs. 1700 crore making it the largest in the food industry.

In 1964, the then Prime Minister Shri Lal Bahadur Shastri came to

inaugurate a cattle feed factory owned by Amul near Anand. Impressed by

the cooperative's success, he expressed his wish to "transplant the spirit of

Anand in many other places". He wanted the Anand model of dairy

development replicated in other parts of the country. With institutions

http://www.indiadairy.com/cont_highest_milkproducer_amulorigin.html

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owned by rural producers which were sensitive to their needs and responsive

to their demands, it was an ideal tool for progress. The National Dairy

Development Board was created in 1965 in response to this call.

The next achievement: Operation Flood

In the late sixties, the Board drew up a project called Operation Flood

(OF) - meant to create a flood of milk in India's villages with funds

mobilized from foreign donations. Producers' cooperatives, which sought to

link dairy development with milk marketing, were the central plank of this

project. Operation Flood which started in 1970, concluded its third phase in

1996 and has to its credit these significant results:

The enormous urban market stimulus has led to sustained production

increases, raising per capita availability of milk to nearly 200 grams

per day.

The dependence on commercial imports of milk solids are done away

with.

Modernization and expansion of the dairy industry and its

infrastructure, activating a milk grid.

Marketing expanded to supply hygienic and fair priced milk to some

300 million consumers in 550 cities and towns.

A nationwide network of multi-tier producers' cooperatives, democratic in

structure and professionally managed, has come into existence. Millions of

small producers participate in an economic enterprise and

http://www.indiadairy.com/ind_operationflood_nddb.html

http://www.indiadairy.com/ind_operationflood_nddb.html

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Effect on Rural Development

A number of field studies conducted by independent

researchers emphatically confirm the role played by milk cooperatives the

progress of the dairy industry. Millions of small farmers isolated in various

parts of the country have gained the strength to sustain their livelihood. The

cooperatives have provided gainful employment and brought them close to

the market. When cooperative dairying started in Gujarat, the dairy industry

was in the doldrums. Production had stagnated and per capita consumption

was falling. Farmers were at the mercy of the middlemen. Today, with about

100 lakh farmer producers, Indian dairy farmers have been shown the way to

prosperity and health. The ideal conditions for long term growth in

procurement have been created.

Modern technologies in animal breeding and feeding have been

adopted by a significant number of farmers.

Modern consumer processing and marketing facilities have been

created all over the country.

Technical input services including animal insemination, balanced

cattle feed / bypass proteins feed, better fodder varieties and

emergency veterinary health services - have not only helped in

raising and sustaining milk production but have also ensured a better

quality of life in the villages.

Besides creating urban employment in dairy plants, marketing,

transport and distribution, these dairy cooperatives have helped to provide

farmers with a sustainable rural employment program. A majority of the

cooperative members are landless, marginal or small farmers who contribute

their produce of milk at the cooperatives. For these contributors, the income

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derived from milk provides their only regular cash flow, transforming

dairying into an economic activity.

The village cooperative is a clean well lit and orderly place. The villages

have gone through a similar transformation ever since the cooperatives

began to operate. When the people of a village see cleanliness, sanitation,

hard work and discipline in the cooperative. When they know that the

cooperative serves them well. It probably inspires them to bring more of

these qualities into their own lives.

The women members of out dairy cooperatives visit our dairies. They are

shown the mysteries of artificial insemination under a microscope. Does not

their knowledge of conception in animals help them to better understand

their own lives and to begin to control what was simply assumed as a matter

of fate?

When out villages people see a veterinarian cure an animal that would

have otherwise died, they learn about the efficacy of the modern medicine.

When they see their income from milk increase as their animals improve, an

the farmer produces better feeds as they ensure better housing and care, they

learn hope. And they learn that it is not fate that determines their future, but

they can take control of their own destinies. In a nation like ours, democracy

whether it be in Delhi or in State capitals rests on a fragile foundation. We

must underpin that democracy with a plurality of rural institutions that

involves direct control of individuals over matters that have immediate

effect on their own lives. They dairy cooperatives of India are such

institutions.

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Dairy cooperatives are giving a fresh lease of life to farmers in drought-

prone areas. Milk production and unexploitative marketing through the

cooperatives is providing an assured source of income to farmers helping

them sustain themselves against recurring drought. The migrating population

is settling down. About Rs 2,000 crores is being paid to the farmers in their

villages daily -- morning and evening -- which constitutes a large portion of

their income. Operation Flood has, therefore, emerged in India as the largest

rural employment scheme. It has been able to modernize the dairy sector to a

level from where it can take off to meet not only the country's demand for

milk and milk products in the next century but can alsoexploit global market

opportunities. Thereby capitalizing on the inherent production advantages

that India has, provided that the right policy options are exercised to

overcome some already visible signs of market disorder in the post-

liberalization period. Among them are:

Over-capitalization in the private dairy sector

Ineffective enforcement of standards of processing, hygiene and

quality

A near absence of any monitoring mechanism to enforce market

discipline.

These threats need to be countered to protect the long-term interests of

milk producers, their organizations, as well as of the consumer.

When producers have such structures at their command, they have the

means to ensure that the fruits of science and technology reach all those who

benefit. It is only when such structures exist that farmers develop confidence

in getting an assured remunerative price for their produce. This, in turn

stimulates investment in productivity. Further, farmers also demand the

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delivery of services and inputs they need to realize returns on their

investments. Such structures can perhaps educate farmers to the fragile

nature of the environment and the need to conserve it.

One big lesson learnt is that farmers must be respected and trusted. They

may not be educated, or even literate, but they possess common sense and

even wisdom. Frequently, they have shown the ability to rise above narrow

self-interest to act together in pursuit of long-term goals and the common

good

1.3

POTENTIAL FOR INVESTING IN THE DAIRY SECTOR

Some areas of Indian dairy industry can be toned up by the evocation

of differentiated technologies and equipment from overseas.

These include:

Raw milk handling: The raw milk handling needs to be elevated in

terms of physicochemical and microbiological properties of the milk in a

combined manner. The use of clarification and bactofugation in raw milk

processing can aid better the quality of the milk products.

Milk processing: Better operational ratios are required to amend the

yields and abridge wastage, lessen fat/protein losses during processing,

control production costs, save energy and broaden shelf life.The adoption of

GMP (Good Manufacturing Practices) and HACCP (Hazard Analysis

Critical Control Points) would help produce milk products adapting to the

international standards.

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Packaging: Another area that can be improved is the range of packing

machines for the manufacture of butter, cheese and alike. Better packaging

can assist in retaining the nutritive value of products packed and thus

broaden the shelf life. A cold chain distribution system is required for proper

storage and transfer of dairy products.

Value-added products: There's vast scope for value-added products

like desserts, puddings, custards, sauces, mousse, stirred yoghurt, nectars

and sherbets to capture the dairy market in India.

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2.CHAPTER

Analyzing the product - Milk

2.1

Milk- The almost complete food

Milk is not only an excellent source of Calcium, which is vital for strong

bones and teeth; it also contains many other vital nutrients like:

Protein: For growth and repair of body tissues.

Carbohydrates: In the form of lactose.

Fat: For energy.

It also contains Vitamins needed for good health; Vitamin A, B1, B2,

B3, B12, FOLIC ACID and Vitamin D are all found in significant quantities

in milk.

A glass of milk provides 50% of the daily intake of calcium required

by teenagers.

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2.2

India's Milk Product Mix

Fluid Milk 46.0%

Ghee 27.5%

Butter6.5%

Curd 7.0%

Khoa (Partially Dehydrated Condensed Milk) 6.5%

Milk Powders, including IMF 3.5%

Paneer & Chhana (Cottage Cheese) 2.0%

Others, including Cream, Ice Cream 1.0%

Supply:

Supply of milk is affected by the seasonal influences, in summers the milk

supplies dip & in winters it soars. Therefore, dairies generally make use of

the surplus milk available with them during winters for manufacturing milk

powder so that they can meet the increased demand during summers.

Demand:

Demand for milk is not very stable either, during festivals its demand

increases exponentially .In 2003,for example, the demand during festivals

surpassed certain projections & its booth had to encounter a rare problem of

being out of stock, a blot indeed on an otherwise impeccable distribution

system. Since then, to its credit Mother Dairy brought efficiency in the

system & reevaluated its strategy to encounter this problem & to be fair to

them they have lived to the expectations of its consumers by making milk

easily available.

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3.

National Dairy Development Board

The National Dairy Development Board was created to promote,

finance and support producer-owned and controlled organizations. NDDB's

programmes and activities seek to strengthen farmer cooperatives and

support national policies that are favourable to the growth of such

institutions. Fundamental to NDDB's efforts are cooperative principles and

the Anand Pattern of Cooperation.

A commitment to help rural producers help themselves has guided the

Dairy Board's work for more than 30 years. This commitment has been

rewarded with achievements made by cooperative dairies in milk

production, employment generation, per capita availability of milk, foreign

exchange savings and increased farmer incomes.

The National Dairy Development Board (NDDB) has replaced

exploitation with empowerment, convention with modernity, stagnation with

growth and transformed dairying into an instrument for the development of

Indian farmers.

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The National Dairy Development Board was created in 1964 in

response to the Prime Minister Lal Bahadur Shastri's call to "transplant the

spirit of Anand in many other places". He wanted the Anand model of dairy

development - with institutions owned by rural producers, which were

sensitive to their needs and responsive to their demands - replicated in other

parts of the country.

The Board's creation was routed in the conviction that our nation's

socio-economic progress lies largely on the development of rural India.Thus

NDDB's mandate is to promote, finance and support producer-owned and

controlled organizations. NDDB's programmes and activities seek to

strengthen farmer cooperatives and support national policies that are

favourable to the growth of such institutions.

NDDB believes that the Rs 7,000-crore (Rs 70-billion) milk

cooperative market is getting much more competitive and wants to

strengthen the position of cooperatives through a multi-pronged action plan

with an outlay of Rs 800 crore (Rs 8-billion). This includes using MDFL to

enter into 51:49 joint venture companies with state cooperative federations

to assist them with marketing value added products and to help them in other

ways to become self-reliant enterprises.

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4.

Indian Dairy Industry –Facts & Figures

Beginning in organized milk handling was made in India with the

establishment of Military Dairy Farms. Handling of milk in Co-operative

Milk Unions established all over the country on a small scale in the early

stages.Long distance refrigerated rail-transport of milk from Anand to

Bombay since 1945.

Pasteurization and bottling of milk on a large scale for organized

distribution was started at Aarey (1950), Calcutta (Haringhata, 1959), Delhi

(1959), Worli (1961), Madras (1963) etc.

Establishment of Milk Plants under the Five-Year Plans for Dairy

Development all over India. These were taken up with the dual object of

increasing the national level of milk consumption and ensuing better returns

to the primary milk producer. Their main aim was to produce more, better

and cheaper milk.

Milk Production

India's milk production increased from 21.2 million MT in 1968 to

88.1 million MT in 2003-04.

India is the largest producer of Milk in the World (replacing USA)

Per capita availability of milk presently is 231 grams per day, up from

112 grams per day in 1968-69.

India's 3.8 percent annual growth of milk production surpasses the 2

per cent growth in population; the net increase in availability is

around 2 per cent per year.

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Marketing

In 2004-05, average daily cooperative milk marketing stood at 155

lakh litres, registering a growth of 4.2 percent over 148.75 lakh litres in

2003-04.

Dairy Cooperatives now market milk in about 200 class cities

including metros and some 550 smaller towns.

During the last decade, the daily milk supply to each 1,000 urban

consumers has increased from 17.5 to 52.0 litres.

Innovation

Bulk-vending - saving money and the environment.

Milk travels as far as 2,200 kilometers to deficit areas, carried by

innovative rail and road milk tankers.

Ninety-five percent of dairy equipment is produced in India, saving

valuable foreign exchange.

Macro Impact

The annual value of India's milk production amounts to about Rs. 880

billion.

Dairy cooperatives generate employment opportunities for some 12

million farm families.

Dairy Farming is the single largest contributor to the economy(5% of

GDP &13% of employment)

Dairy industry represents a huge opportunity being the largest single

FMCG Market: Urban Mkt size Rs 33000 Crores and organized sector

Rs 11000 Crores representing a huge opportunity for conversion and

growth.

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Key challenges before Indian Dairy Industry are as follows:

• Ensuring Quality

• Procurement and efficiencies in supply chain

• Product differentiation and value addition

Per Capita Monthly Consumption Expenditure on Broad Groups of Items (in Rs.)

NSS Round

Milk and

Milk

Products

Meat,

Egg,

Fish

Total

Food

Total

Non-

Food

Total

Exp.

Average

Size of

Household

25th (1970 - 1971)

Rural 3.03 1.02 25.98 9.33 35.31

Urban 5.01 1.9 34.04 18.81 52.85

27th (1972 - 1973)

Rural 3.22 1.09 32.16 12.01 44.17 5.22

Urban 5.91 2.07 40.84 22.49 63.33 4.72

32nd (1977 - 1978)

Rural 5.29 1.84 44.33 24.56 68.89 5.22

Urban 9.16 3.33 57.67 38.48 96.15 4.89

38th (1982)

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Rural 8.45 3.40 73.73 38.71 112.45 5.20

Urban 15.15 5.92 96.97 67.06 164.03 4.85

42nd(1986 - 1987)

Rural 13.48 5.25 92.55 48.38 140.93 5.26

Urban 23.32 9.25 128.99 93.66 222.65 4.79

43rd(1987 - 1988)

Rural 13.63 5.11 100.82 57.28 158.10 5.08

Urban 23.83 8.85 139.75 110.18 249.93 4.71

44th(1988 - 1989)

Rural 15.65 6.12 111.80 63.30 175.10 5.17

Urban 26.74 10.59 152.49 114.36 266.85 4.87

45th(1989 - 1990)

Rural 18.35 6.84 121.78 67.68 189.46 4.96

Urban 29.53 11.42 165.46 132.54 298 4.66

46th (1990 - 1991)

Rural 19.04 7.08 133.34 68.78 202.12 4.81

Urban 32.37 12.27 185.77 140.00 326.75 4.55

47th (July - Dec. 1991)

Rural 21.90 8.20 153.59 89.91 243.50 5.00

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Urban 37.21 13.49 207.77 162.57 370.34 4.73

48th (Jan. - Dec. 1992)

Rural 23.00 8.00 161.00 87.00 247.00 5.20

Urban 42.00 14.00 224.00 175.00 399.00 4.80

49th(Jan. - June 1993)

Rural 23.00 9.00 159.00 85.00 244.00 5.10

Urban 41.00 14.00 221.00 162.00 382.00 4.60

50th(July 1993 - June 1994)

Rural 27.00 9.40 178.00 104.00 281.00 4.90

Urban 45.00 15.50 250.00 208.00 458.00 4.50

51st (July 1994 ? June 1995)

Rural 27.00 10.00 189.00 121.00 309.00 4.90

Urban 49.00 17.00 271.00 237.00 508.00 4.60

52nd (July 1995 ? June 1996)

Rural 32.38 10.94 207.75 136.53 344.29 5.00

Urban 56.45 19.11 299.98 299.28 599.26 4.60

53rd (Jan-Dec 1997)

Rural 39.31 11.79 231.99 163.02 395.01 5.00

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Urban 62.75 19.58 320.26 325.19 645.44 4.60

54th (Jan-? June 1998)

Rural 36.54 12.65 232.40 149.67 382.07 5.00

Urban 64.63 21.94 339.71 344.57 684.27 4.70

55th (July 1999 ? June 2000)

Rural 42.56 16.14 288.80 197.28 486.07 5.00

Urban 74.18 26.77 410.10 444.10 854.96 5.00

Source : Basic Animal Husbandry Statistics,2004, GOI.

Share of Agriculture and Livestock Sector in GDP

(At current prices in Rs. Billion)

Year GDP

(Total)

GDP (Agriculture) GDP (Livestock Sector)

Rs. % Share Rs. %

Share

1980-81 1,224 425 34.72 59 4.82

1985-86 2,338 700 29.94 139 5.95

1986-87 2,600 744 28.62 156 6.00

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1987-88 2,949 835 28.31 183 6.21

1988-89 3,527 1,041 29.52 217 6.15

1989-90 4,087 1,154 28.24 275 6.73

1990-91 4,778 1,352 28.30 308 6.45

1991-92 5,528 1,593 28.82 375 6.78

1992-93 6,307 1,779 28.21 432 6.85

1993-94 7,813 2,218 28.39 507 6.49

1994-95 9,170 2,552 27.83 577 6.29

1995-96 10,733 2,778 25.88 650 6.06

1996-97 12,435 3,340 26.86 747 6.01

1997-98 13,901 3,535 25.43 819 5.89

1998-99 15,981 4,064 25.43 911 5.70

1999-00 17,618 4,224 23.98 992 5.63

2000-01 19,030 4,235 22.25 1093 5.74

2001-02 20,910 4,730 22.62 1187 5.68

2002-03 22,495 4,560 20.27 1209 5.37

* Provisional; ** Quick Estimate; Source : Central Statistical Organisation,

Dept. of Statistics, GOI

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Dairy cooperatives all over the country are allowing the small dairy farmers

to take initiative in moulding their own destiny. They serve more than 10

million farmers in over 80,000 villages. Here is a list of Dairy Cooperatives

in India, arranged statewise.

Dairy Cooperatives- Progress on Key Parameters during 2003-04 *

States/UT DCS #

(Nos)

Farmer

Members

('000)

Women

Members

('000)

Procurement

(TKGPD) $

Marketing

(TLPD) $

Andhra Pradesh 5072 756 143 950 898

Assam 65 3 0 4 8

Bihar 4657 240 36 396 288

Chhattisgarh 424 19 4 18 28

DELHI 1937

Goa 169 19 3 43 89

Gujarat 11400 2360 540 5102 2101

Haryana 4219 230 30 331 153

Himachal

Pradesh283 21 6 25 15

Jammu &

Kashmir** ** ** **

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Jharkhand 80 2 0 6 163

Karnataka 9293 1737 444 2243 1518

Kerala 3208 706 125 614 738

Madhya Pradesh 4699 231 33 294 296

Maharashtra 18349 1582 366 2680 2629

Nagaland 76 3 0 2 4

Orissa 1654 122 54 127 132

Pondicherry 96 32 14 54 53

Punjab 6892 402 42 745 496

Rajasthan 9643 534 111 1036 855

Sikkim 189 7 0 9 7

Tamil Nadu 7631 1988 717 1664 1206

Tripura 84 4 1 2 9

Uttar Pradesh 18104 824 237 814 436

West Bengal 2287 172 59 324 816

All - India Total 108574 11994 2963 17483 14875

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5

MAHARASHTRA DAIRY COOPERATIVES

5.1

MRSDMM

During Second World War to prevent of malnutrition pregnant ladies

and children due to food shortage, Municipal Corporation of Mumbai started

milk distribution system. Each female used to get half litre of milk. This

scheme was operational till 1946. After that civil supply department was

operating this scheme.

As there were no facilities for boiling the milk, raw milk was supplied

to British soldiers, officers, and employees. They were not used to drink raw

milk which created health problem for them. The cattle sheds of Mumbai

were in unhygienic conditions and rearing/nursing of cattle was done in

unscientific ways. Due to this health problems surfaced in the nearby

locality. To rehabilitate cattle shed of Mumbai in a more scientific way and

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to encourage clean milk production, in the year 1947, Aarey Milk Colony

was established.

A total of 16,000 buffaloes from Mumbai were shifted in 32 cattle

farms at Aarey Milk Colony. To enable the citizens to get the pasteurized

milk, in the year 1952 Asia’s first dairy at Aarey was established. The head

of Dairy Development Department was the Milk Commissioner. To ensure

the steady progress of Dairying, the Government established Dairy

Development Department in the year 1958. From 1960, milk from rural

areas was collected and supplied to the urban areas to process this milk other

Worli Dairy established in the year 1963 and Kurla Dairy was established in

the year 1975. On the same note, Government Chilling Centres and

Government Milk schemes were established in other districts. In the year

1960, about 1 LLPD(lakh ltrs. per day) of milk was procured and today the

figure goes up to 55 to 60 LLPD

Maharashtra Rajya Sahakari Dudh Mahasangh, Maryadit

(MRSDMM)

MRSDMM is an Apex Federation of District / Taluka milk unions

established to implement the Operation Flood programme in the state of

Maharashtra. The main objectives of MRSDMM is to procure milk from the

member milk unions at remunerative rates and distribute the same to the

consumers at reasonable rates.

P a g e | 27

MRSDMM is thus working as a vital link between the milk producers

and consumers and working for the economic development and upliftment

of the farmers in the rural areas.

MRSDMM was established on 09th June, 1967.

At present MRSDMM have 86 member unions (25 District † 49 Taluka† 11

Multi-state unions) with more than 20000 primary milk societies & 23 lacs

which includes appx. 27000 women members.

P a g e | 28

5.2

AAREY MILK COLONY

Aarey Milk Colony was established in year 1949. On 4.3.1951 Central

Dairy, Aarey was inaugurated by auspicious hand of then Prime Minister of

India Shri. Pandit Jawaharlal Nehru. The Central Dairy, Aarey was

constructed for processing and packing of milk which was collected from

Aarey Milk Colony and to supply same to consumer of Mumbai city. This

Dairy is pioneer of it's kind in entire Asia. After 1970 milk produced in

mofussil area was also received in this dairy. It distribute milk in western

suburbs of Mumbai City.

P a g e | 29

Designation & name of incharge P.K.Rajput, Dairy Manager (Incharge)

Address of the Office Central Dairy, Aarey Milk Colony,

Mumbai-400065

Telephone No. 26858705,26858730

Fax No. 26858117

E-mail Address [email protected]

Processing

Distribution

( Litres per day)

Actual processing

milk

Distribution of Milk

53900 53900

Types of

Centres Allotted to

above mentioned

category

Edu.Un

Employ.

S.C. Physicaly

Handicap

Ex-

servicema

n

Co-Op

Society

Ladies

X-Dairy Centre 33 - - 05 34 -

Z - Centre 254 85 02 02 08 194

Aarey Sarita 24 03 01 - 12 07

Energee Centre 14 07 01 - 02 27

Part time Energee

Centre

150 55 04 - - 59

Total Centres =983 475 150 08 7 56 287

Staff Position Dairy Chilling Centre

Sr, class I - -

Jr. Class I 2 -

Class II 4 -

Class III 224 -

Class IV 687 -

mailto:[email protected]

P a g e | 30

5.3

WORLI DAIRY

Worli Dairy is established in 1961 situated at Worli Seaface,

Worli ,Mumbai. The project cost of plan was Rs.420 lakhs of which an

amount of Rs. 80 Lakhs was provided by UNICEF in foreign currency.

Dairy was inaugurated by Smt. Vijayalaxmi Pandit, Governor of

Maharashtra. Dairy has processing and packaging capacity of Rs.4.50 lakhs

litres of milk handling per day. Milk product like Energee , Lassi, Dahi and

Masala Milk are also daily manufactured in the plant. Dairy helps to meet

the need of consumers in the Central and Southern part of Mumbai city.

( Colaba to Mahim &Sion)

P a g e | 31

Processing

Distribution (Lakhs /day)

Actual processing

milk

Distribution of Milk

1.30 1.30

Production of Milk &

Milk Products

(Lakhs/day)

Type of Milk -

Quantity

(Lakhs/day)

Type of Products-Quantity /day

Cow milk 0.95

Energee 22000

bottles

Aarey Spl. 0.35 Longlife C/M -

Total 1.30

Lassi 20000

bottles

Masala milk 1000 bottles

Dahi 100 gms

200 gms

300 Cups

100 Cups

Types of Centres

Allotted to above

mentioned category

Edu.Un

Employ.

S.C. Physicaly

Handicap.

Ex-

servicema

n

Co-Op

Society

Others

Aarey Sarita 35 8 3 2 18 18

Milk Centre 380 215 35 0 213 390

Energee Centre 12 6 4 0 0 8

Part time Energee

Centre

185 81 39 0 0 97

Other 214 - - - - -

Total 826 310 81 2 231 513

P a g e | 32

Staff Position Dairy Chilling Centre

Sr, class I 2 -

Jr. Class I 4 -

Class II 5 -

Class III 304 -

Class IV 647 -

Total- 962

5.4

MAHANAND DAIRY

MAHANAND DAIRY is the unit run by the MRSDMM, Mahanand

Dairy has made significant growth and progress in the field of productivity

P a g e | 33

improvement, quality improvement, energy conservation, cost control etc.

due to sincere and dedicated efforts put at all the levels.

The initial outcome of a socially-oriented programme, support to

training and employment programme for women (step), launched by the

union government in 1986, and adopted by the Maharashtra Rajya Sahakari

Dudhsangh (popularly called Mahananda dairy) across 16 districts of the

state. so far, Mahananda has formed 150 women's dairy cooperatives and

many more are expected to come up in the near future.

``The response to our effort is very good from every part of Maharashtra. we

want to send this positive message across,'' a spokesman of Mahananda told

tnn while describing the success of the novel experiment.

step covers eight traditional villages activities. they are: agriculture, animal

husbandry, dairy, fisheries, handlooms, handicraft, khadi and sericulture. in

subsequent years, social forestry and wasteland development were added to

the list. as dairy is an additional activity for most farmers and landless

labourers, a large number of women are automatically involved in the sector.

taking this into account, Mahananda submitted a phased proposal to the

union government in regard to formation of women's dairy cooperatives all

over the state.

the proposal, ratified by the Maharashtra government, covers 16 districts and

benefits 30,000 rural women, most of them from backward sections and

those belonging to the below poverty line (bpl) strata. the districts are

nashik, dhule, nandurbar, sangli, satara, solapur, pune, osmanabad, latur,

nanded, beed, aurangabad, ahmednagar, buldana, wardha and bhandara.

the main objective of the programme is to involve women in the process of

decision making, to upgrade their technical and managerial skills and to

http://timesofindia.indiatimes.com/city/mumbai/Mahananda-reaches-out-to-rural-women/articleshow/1403394785.cms

P a g e | 34

build up their capacity by imparting training in personality and leadership

development. the programme has other topics which cover educating women

on gender equality, health and nutrition, legal literacy and women's welfare

legislations. reputed ngos and individuals teach the beneficiaries, who are

selected through a careful method. the women's dairy cooperatives have a

well thought of structure. every unit has a secretary, who is its focal person.

extensive and intensive training is given to the secretary on running and

managing a dairy cooperative so that economic viability remains the

important objective of the whole effort. realising the importance of a

secretary's crucial position, a special training programme has been designed.

training is imparted at kolhapur, where a centre for this purpose has been

established by the national dairy development board.

besides enriching the members financially, the society has to look after their

overall development by taking care of the general hygiene, improving civic

amenities and attendant social services in a given village. the members are

encouraged to take up additional income __ generation activities, of course,

in addition to dairy and animal husbandry. artificial insemination and first

aid (ai&fa) is another skill taught to them. they can make available this

knowledge at nominal honorariums to others. first aid boxes are provided at

each society for treating sick milch cattle. gender sensitisation, health and

nutrition as well as legal literacy are the three issues on which training

sessions would be held in every village having a dairy cooperative.

mahananda has developed an audio-visual van which will be equipped with

necessary literature.

The details of significant growth, high lights and achievements of

MRSDMM / MAHANAND DAIRY are as under :

http://timesofindia.indiatimes.com/city/mumbai/Mahananda-reaches-out-to-rural-women/articleshow/1403394785.cms

P a g e | 35

ENHANCEMENT IN MILK HANDLING

MAHANAND DAIRY was established on 18th Aug.1983 with a milk

handling capacity of 4 LLPD and the capacity was expanded up to 6 LLPD

during the year 1997-98.

At present,Mahanand Dairy is distributing 6.5 Lacs litres milk per day in

Mumbai with the help of two packing depots strategically located at New

Mumbai ( Capacity 3.00 LLPD) & Byculla

(Capacity 1.00 LLPD).

The total sale of milk under Mahanand Brand name in the state is 8.5 LLPD

including the sale of milk in Konkan, Pune & Nagpur region.

6.

GUJARAT DAIRY COOPERATIVES

P a g e | 36

The Gujarat Cooperative Milk Marketing Federation Ltd, Anand (GCMMF)

is the largest food products marketing organisation of India. It is the apex

organization of the Dairy Cooperatives of Gujarat. This State has been a

pioneer in organizing dairy cooperatives and our success has not only been

emulated in India but serves as a model for rest of the World. Over the last

five and a half decades, Dairy Cooperatives in Gujarat have created an

economic network that links more than 2.8 million village milk producers

with millions of consumers in India and abroad through a cooperative

system that includes 13,141 Village Dairy Cooperative Societies (VDCS) at

the village level, affiliated to 13 District Cooperative Milk Producers’

Unions at the District level and GCMMF at the State level. These

cooperatives collect on an average 7.5 million litres of milk per day from

their producer members, more than 70% of whom are small, marginal

farmers and landless labourers and include a sizeable population of tribal

folk and people belonging to the scheduled castes.

P a g e | 37

The turnover of GCMMF during 2008-09 was Rs. 67.11 billion. It markets

the products, produced by the district milk unions in 30 dairy plants, under

the renowned AMUL brand name. The combined processing capacity of

these plants is 11.6 million litres per day, with four dairy plants having

processing capacity in excess of 1 million Litres per day. The farmers of

Gujarat own the largest state of the art dairy plant in Asia – Mother Dairy,

Gandhinagar, Gujarat - which can handle 2.5 million litres of milk per day

and process 100 MTs of milk powder daily. During the last year, 3.1 billion

litres of milk was collected by Member Unions of GCMMF. Huge capacities

for milk drying, product manufacture and cattle feed manufacture have been

installed. All its products are manufactured under the most hygienic

conditions. All dairy plants of the unions are ISO 9001-2000, ISO 22000 and

HACCP certified. GCMMF (AMUL)’s Total Quality Management ensures

the quality of products right from the starting point (milk producer) through

the value chain until it reaches the consumer.

Ever since the movement was launched fifty-five years ago, Gujarat’s Dairy

Cooperatives have brought about a significant social and economic change

to our rural people. The Dairy Cooperatives have helped in ending the

exploitation of farmers and demonstrated that when our rural producers

benefit, the community and nation benefits as well.

6.1

AMUL

P a g e | 38

"Anyone who has seen ... the dairy cooperatives in the state of Gujarat,

especially the highly successful one known as AMUL, will naturally wonder

what combination of influences and incentives is needed to multiply such a

model a thousand times over in developing regions everywhere."

Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative

in India. It is a brand name managed by an apex cooperative organisation,

Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which

today is jointly owned by some 2.8 million milk producers in Gujarat, India.

AMUL is based in Anand, Gujarat and has been an example of a co-

operative organization's success in the long term. It is one of the best

examples of co-operative achievement in the developing economy.

The Amul Pattern has established itself as a uniquely appropriate model for

rural development. Amul has spurred the White Revolution of India, which

has made India the largest producer of milk and milk products in the world.

It is also the world's biggest vegetarian cheese brand .

P a g e | 39

Amul is the largest food brand in India and world's Largest Pouched Milk

Brand with an annual turnover of US $1050 million (2006-07). Currently

Unions making up GCMMF have 2.8 million producer members with milk

collection average of 10.16 million litres per day. Besides India, Amul has

entered overseas markets such as Mauritius, UAE, USA, Bangladesh,

Australia, China, Singapore, Hong Kong and a few South African countries.

Its bid to enter Japanese market in 1994 did not succeeded, but now it has

fresh plans entering the Japanese markets. Other potential markets being

considered include Sri Lanka.

AMUL stands for,

A = Anand

M = Milk

U = Union

L = Limited.

M ilestone of A mul:

Name Karia district co-operative milk producer’s ltd, widely known

as “Amul”

From Co-operative sector registered under the co-operative society

act

P a g e | 40

Location Amul dairy, nr, railway station, Amul dairy road, Anand

Gujarat , India

Registration 14th December, 1946

Registered Kaira district co-operative milk producer’s ltd, Anand -388

001. Gujarat

Size Production of different products on large scale, collecting 9 to

15 lakh liters milk everyday & producing milk products.

Plant There are 4 plants

1) Amul Plant 2) Kanjari Plant

3) Mogar Plant 4) Khatraj Plant

Banker 1. The Kaire District Center Co-Operative Bank Ltd.

2. UTI bank 4. Bank of Baroda

3. SBI 5. Corporation bank 6. Bank of

Maharashtra

Working 10:45 am to 5:45 pm

Founders 1. Shri Tribhuvandas K. Patel

2. Shri Sadar Vallabhbhi Patel

3. Shri Morarji Desai

4. Shri Verghese Kurien

5. Shri Harichand M. Dalaya

Amul's Secret of Success

The system succeeded mainly because it provides an assured market at

remunerative prices for producers' milk besides acting as a channel to

market the production enhancement package. What's more, it does not

P a g e | 41

disturb the agro-system of the farmers. It also enables the consumer an

access to high quality milk and milk products. Contrary to the traditional

system, when the profit of the business was cornered by the middlemen, the

system ensured that the profit goes to the participants for their socio-

economic upliftment and common good.

Looking back on the path traversed by Amul, the following features make it

a pattern and model for emulation elsewhere. Amul has been able to:

Provide a support system to the milk producers without disturbing

their agro-economic systems

Even though, growing with time and on scale, it has remained with the

smallest producer members. In that sense, Amul is an example par

excellence, of an intervention for rural change.

Bring at the command of the rural milk producers the best of the

technology and harness its fruit for betterment

Produce an appropriate blend of the policy makers farmers board of

management and the professionals: each group appreciating its roles

and limitations

Plough back the profits, by prudent use of men, material and

machines, in the rural sector for the common good and betterment of

the member producers.

7

GUJARAT COOPERATIVE MILK MARKETING FEDERATION

7.1

P a g e | 42

GCMMF: An Overview

Milk collection(daily avg 2008-09) 8.4 million litres

Milk drying capacity 626 mts per day

Cattlefeed manufacturing capacity 3500 mts per day

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest

food products marketing organisation. It is a state level apex body of milk

cooperatives in Gujarat which aims to provide remunerative returns to the

farmers and also serve the interest of consumers by providing quality

products which are good value for money.

CRISIL, India's leading Ratings, Research, Risk and Policy Advisory

company, has assigned its highest ratings of "AAA/Stable/P1+" to the

various bank facilities of GCMMF.

Members 13 district cooperative milk Union

No.of producer members 2.79 million

No. of village societies 13,328

Total milk handling capacity 11.22 million litres per day

Milk collection(total 2008-09) 3.05 billion litres

8

LIST OF DAIRY OUTLETS IN MAHARASHTRA AND GUJARAT

P a g e | 43

KEEPING IN MIND THE INITIAL EXISTENCE AND THE ONGOING

COMPETITION BETWEEN THE TWO MOST FIERCE STATES,

MAHARASHTRA AND GUJARAT, GIVEN BELOW ARE THE LIST OF

ALL DAIRY OUTLETS HELD IN THESE TWO MAJOR STATES

8.1

MAHARASHTRA

Adivasi Taluka Dudh Utpadak Va Krishipurak Udyog

Sahakari Sangh, Dhule.

Ahmednagar Zilha Sahakari Dudh Vyavsayik Sangh

Ltd, Ahmednagar. Soc: 487. Av Milk Proc: 250,000 lpd.

Akola Zilha Dudh Utpadak Sahakari Sanstha Sangh

Maryadit, Akola.

Amravati Zilha Sahakari Dudh Utapadak Sahakari

Sangh Maryadit, Amravati.

Amrutsagar Sahakari Dudh Vyavasayik Sangh

Maryadit, Akole.

Aurangabad Dist Coop Milk Producers’ Union Ltd,

Aurangabad. Soc: 375, Mems: 352. Av Milk Proc: 70,000 lpd.

Baramati Taluka Sahakari Dudh Utpadak Sangh Ltd,

Baramati.

P a g e | 44

Beed Zilla Madhyavarti Sahakari Dudh Utpadak Va

Purvatha Sangh Maryadit, Beed.

Bhandara Dist Coop Milk Producers’ Union Ltd,

Bhandara

Bhoom Taluka Sahakari Dudh Utpadak Va Purvatha

Sangh Maryadit, Bhoom

Buldana Jilla Sahakari Dudh Utpadak Sangh Maryadit,

Buldana. Soc: 167, Mems: 21,502. Av Milk Proc: 24,313 lpd.

Chalisgaon Taluka Sahakari Dudh Utpadak Sangh Ltd,

Chalisgaon. Soc: 91, Mems: 15,000. Av Milk Proc: 13,000 lpd.

Chandrapur Zilla Dudh Utapadak Sahakari Sangh

Maryadit, Chandrapur.

Dhule Taluka Dudh Utpadak Krishipurak Udyog

Sahakari Sangh Ltd, Dhule

Godavari Khore Sahakari Dudh Utpadak Sangh Ltd,

Shingnapur, Dist Ahmednagar. Soc:110, Mems: 18,000. Av Milk

Proc:135,000 lpd.

Jalgaon Jilha Sahakari Dudh Utpadak Sangh Ltd,

Jalgaon.Soc: 935, Mems: 85,000. Av Milk Proc: 70,827 lpd

Jalna Zilla Dudh Utpadak Sahakari Sangh Ltd, Jalna.

P a g e | 45

Jawli Taluka Sahakari Dudh Purvatha Sangh Ltd,

Medha.

Kej Taluka Sundar Sahakari Dudh Vyavasaik Purvatha

Sangh Ltd, Kej, Dist Dhule.

Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd,

GokulDairy, Kolhapur. Soc: 1,826, Mems: 316,561. Av Milk Proc: 465,361

lpd

Koyana Sahakari Dudh Utpadak Prakriya Sangh Ltd,

Khodashi. Soc: 270. Av Milk Proc: 60,000 lpd.

Krishna Khore Sahakari Dudh Utpadak Va Purvatha

Sangh Ltd, Miraj.

Krishna Valley Sahakari Dudh Purvatha Sangh Ltd,

Wai.

Latur Zilla Sahakari Dudh Utpadak Va Purvatha Sangh

Maryadit, Udgir.Soc: 339, Mems: 31,188. Av Milk Proc: 34,069 lpd.

Mayur Coop Milk Producers' Ltd, Kolhapur.

Nagpur Zilha Nootan Dudh Utpadak Sahakari Sangh

Maryadit, Nagpur.

Nanded Zilha Sahakari Dudh Utpadak Sangh Maryadit,

Nanded.

Nasik Dist Coop Milk Producers’ Union Ltd, Nasik.

P a g e | 46

Pune Zillha Sahakari Dudh Utpadak Sangh Maryadit,

Katraj Dairy, Pune.Soc: 2,075. Av Milk Proc: 400,000 lpd.

Sangamner Taluka Sahakari Dudh Utpadak Sangh Ltd,

Sangamner.Soc:137. Av Milk Proc: 75,000 lpd.

8.2

GUJARAT

Ahmedabad Dist Coop Milk Producers’ Union Ltd,

Ahmedabad. Soc: 433, Mems: 52,428. Av Milk Proc: 90,000 lpd.

Banaskantha Dist Coop Milk Producers’ Union Ltd, Palanpur.

Soc: 1,130, Mems: 97,251. Av Milk Proc: 295,000 lpd.

Baroda Dist Coop Milk Producers’ Union Ltd, Baroda. Soc:

783, Mems: 156,691. Av Milk Proc: 225,000 lpd

Bharuch Dist Coop Milk Producers’ Union Ltd, Bharuch. Soc:

289, Mems: 37,900. Av Milk Proc: 38,000 lpd.

Bhavnagar Dist Coop Milk Producers’ Union Ltd, Bhavnagar.

Soc: 190, Mems: 25,532. Av Milk Proc: 23,000 lpd.

Gandhinagar Dist Coop Milk Producers’ Union Ltd,

Gandhinagar. Soc: 56, Mems: 13,000. Av Milk Proc: 46,500 lpd.

Junagadh Dist Coop Milk Producers’ Union Ltd, Junagadh.

Soc: 400, Mems: 41,500. Av Milk Proc: 73,000 lpd

P a g e | 47

Kaira Dist Coop Milk Producers’ Union Ltd, Amul Dairy,

Anand. Soc: 943, Mems: 513,280. Av Milk Proc: 740,000 lpd

Kutch Dist Coop Milk Producers’ Union Ltd, Kutch Dairy,

Madhapar. Av Milk Proc: 25,000 lpd.

Mehsana Dist Coop Milk Producers’ Union Ltd, Dudhsagar

Dairy, Mehsana. Soc: 1,020, Mems: 292,800. Av Milk Proc: 704,402 lpd.

Panchmahal Dist Coop Milk Producers’ Union Ltd, Godhra.

Soc: 1,133, Mems: 126,510. Av Milk Proc: 112,000 lpd.

Rajkot Dist Coop Milk Producers’ Union Ltd, Rajkot. Soc: 193,

Mems: 29,620. Av Milk Proc: 50,000 lpd.

Sabarkantha Dist Coop Milk Producers’ Union Ltd, Sabar

Dairy, Himatnagar. Soc: 1,315, Mems: 200,482

Av Milk Proc: 322,346 lpd.

Surat Dist Coop Milk Producers’ Union Ltd, Sumul Dairy,

Surat. Soc: 864, Mems: 160,000. Av Milk Proc: 300,000 lpd.

Surendranagar Dist Coop Milk Producers’ Union Ltd,

Surendranagar. Soc: 486, Mems: 31,000. Av Milk Proc: 30,000

lpd

P a g e | 48

9

DAIRY DEVELOPMENT IN MAHARASHTRA

AND

GUJARAT

9.1

Dairy Development in Maharashtra and National Perspective

DV Ghanekar

Managing Director – National Cooperative Dairy Federation of India Ltd,

Anand

Today, India has emerged as the World’s largest producer of milk,

and it is because of our milk producers, who have proved that given required

technical support and encouragement they are capable of producing

miracles. According to Food and Agriculture Organization of the United

Nations (FAO), the worldwide milk production in 2007 is estimated at 678

P a g e | 49

million tonnes out of which India’s production is estimated at 106 million

tonnes (FAO Food Out Look June 2008).

During the year 2003-04, Maharashtra’s milk production was 6.38

million tonnes compared to Uttar Pradesh’s 15.94 million tonnes, Punjab’s

8.39 million tonnes, Rajasthan’s 8.05 million tonnes, Andhra Pradesh’s 6.96

million tonnes and Gujarat’s 6.42 million tonnes.

A rough approximation indicates that there are an estimated 60 lakh

rural milch animal households in Maharashtra. The average per capita

availability of milk in the state is around 187 grams per day. The average

daily milk production density in the state during 2004-05 was about 59

kilogram per square kilometre and the average milk production per village

was estimated at about 438 kilograms per day. Milk production in

Maharashtra has grown between 5.7 percent per annum and 4 percent per

annum in the Eighth and Ninth Plans respectively. A Report of the Planning

Commission ‘Food Security and Nutrition – Vision 2020’ authored by

Radhakrishna and Reddy projects milk demand in India to be 166 million

tons in 2020. Commensurate with this goal, it may be reasonable to project

that Maharashtra’s milk production should grow from 6.57 million tonnes in

2004-05 to around 13 million tonnes by 2020. If this is indeed to be so, milk

production in Maharashtra should grow at a secular rate of 4 percent per

annum across the next three Five Year Plans.

To achieve this, Government of Maharashtra (GoM) has to take more

initiatives. Dairy cooperatives would have to be staffed with competent

professionals in all key functional areas i.e. marketing, quality assurance,

P a g e | 50

processing and procurement. Recruitment and career advancement would

have to be based on merit and performance. It is a welcome move that

election to the Board of MRSDMM was held in 2006 for the first time, since

its inception in 1973.

This should provide strategic leadership capable of professional

management of dairy cooperatives in Maharashtra. Further, GoM need to

take initiatives to rationalize the price of cow and buffalo milk (which is

more in favor of cow milk and is not based on scientific consideration); to

take an appropriate decision of handing over of Government dairies to dairy

cooperatives, through amendments in the present GR issued by the

Government. This action would reduce strain on Government budget (about

Rs.200 crore losses per annum) and also pressure on Government almost

every year to increase milk purchase price on one side and face the anger of

consumers for rise in milk prices. Even in Europe and America the

respective Governments are increasingly coming under pressure to withdraw

subsidies of any nature for dairy farming. The best way to help farmers is to

provide for funds to apex cooperative for development and expansion of the

dairy business.

Procurement share of the marketable surplus of cooperatives in

Maharashtra is about 21 percent. We need to make efforts to increase this

share and to launch appropriate productivity enhancement measures focused

on breeding, nutrition and disease control through delivery mechanisms that

could be both implemented and measured. One of the major concerns in

Maharashtra state is functioning of too many cooperative unions and

competition among themselves. At present there are 16,410 primary dairy

societies, 42 taluka and 23 district level functional unions and these unions

P a g e | 51

are marketing their produce under various brand names. Neighbouring state,

Gujarat, is procuring an average of 75.9 lakh kgs per day and the milk is

processed by 13 district unions and Gandhinagar Dairy. This milk is

marketed under a common brand name of ‘Amul’.

Fonterra, a Newzealand based Cooperative, having presence all over

the World is another example of successful dairy cooperative. Fonterra could

achieve this by entering into agreements with the local cooperatives/MNCs.

MRSDMM need to find an appropriate solution to have proper coordination

between unions for procurement and marketing of their produce and

consider marketing under a common brand. This will reduce the cost of

procurement and marketing.

Liquid milk marketing in Mumbai is about 42 lakh litres per day.

Three government dairies in Mumbai with an aggregate capacity of 10.5

lakh litres per day have grown old and would soon become obsolete. It is

necessary to plan and commission a new and modern metro dairy of around

20 lakh litres per day capacity, which should be autonomous and

professionally managed dairy.

More efforts and investment is required for production of clean milk.

This is possible if milk is pooled, collected and chilled in the villages

through bulk milk coolers (BMCs). Hence every fifth village needs to have a

BMC and all the milk societies need to have automatic weighing and testing

machines. To maintain the quality and retain the faith of producers and

customers following ultra modern initiatives need to be taken: Payment

through smart cards.

P a g e | 52

Establishment of cold chain from farmer to consumer; Price based on

microbial quality by implementing CMP programme; Fully automatic and

computerized milk processing facilities.

Milk marketing through automatic vending machines (not only in Mumbai

but even in smallest towns in the state); and, Enforcement of stringent

quality norms.

States such as Andhra, Karnataka, MP, Orissa, Bihar, Jharkhand,

Uttarakhand and J&K have adopted parallel cooperative law which is

progressive and provides level playing field for cooperatives. In 2003,

parliament has passed a “Producer Company Bill” which gives total

autonomy to the cooperatives so as to function at par with international

cooperatives. Maharashtra is yet to change its cooperative law and make it

more progressive.

Maharashtra has been in the fore front of cooperative development.

However, after liberalisation of economy in 1991, the cooperative sector has

suffered almost in every state and Maharashtra is no exception. The situation

could be rescued by making the cooperatives autonomous and therefore,

cooperative leadership need to take initiatives without further delay.

The Perspective 2010 plan of the Dairy Board maps the future of

dairying in India, setting realistic goals for Strengthening Cooperative

Business, Production Enhancement, Assuring Quality, and creating a

Sectoral Analysis and Studies. The plan was realised with the successful

completion of the Operation Flood Programme and has been developed by

the State Milk Marketing Federations and the Milk Producers' Cooperative

Unions in consultation with the Dairy Board. The Perspective 2010 goals

P a g e | 53

and strategies to meet them have been drawn by its actual implementers -

Federation and Unions and supported by NDDB.

9.2

DIARY DEVELOPMENT IN GUJARAT

RISE OF GCMMF:

After achieving the group turnover of Rs 9,600 crore this year, 13

unions of the Gujarat Co-operative Milk Marketing Federation (GCMMF)

which market Amul brand of products have planned to increase the group

turnover to Rs 27,000 crore by 2020.

“Mission 2020,” as the GCMMF calls it, focuses on cattle feed

manufacturing capacity. The GCMMF, at current price, will require an

investment of Rs 2,600 crore to ready the infrastructure required for such a

facility. “We want to expand the manufacturing capacity of the cattle feed

P a g e | 54

more than four times to 12,000 MTs per day by 2020,” said Parthi Bhatol,

chairman, GCMMF.

“All the 13 unions are in expansion mode. For instance, Anand dairy

is expanding its cattle feed plant capacity to 1,000 tonnes per day,” he said.

Last year, poor monsoon and odd winter hit the quantum of fodder in the

state. “The prices of green fodder and cattle feed have increased. With the

help of the expansion in the capacity, we will be able to bring the prices of

cattle feed down. For green fodder, we can only expect good rains this

time,” said Bhatol.

10

DISTRIBUTION NETWORK AND PROJECTS IN

MAHARASHTRA AND GUJARAT

10.1

MAHARASHTRA

DISTRIBUTION NETWORK:

• Ex- Dairy Distributors :

They distribute milk in their own vehicles to the customers in the specific

areas allotted to them. They operate on commission basis. They have signed

P a g e | 55

an agreement with Dudh Mahasangh which is to be renewed annually. This

is the major distribution system and over 75% of the milk is distributed

through this system.

They sell milk only through pouches. They have to pay the price of milk

before accepting the delivery of milk.

• Shop Distribution :

This system has been designed to ensure in built price control and as a

counter check to the Ex- Dairy Distribution system. In this case, the shop

identified is owned by the party and delivery of packed milk is undertaken

by the Mahasangh. The party has to sell at the prescribed price only. Such

shops have been purposefully located in the areas of the Ex- Dairy

Distributors. This helps to ensure supply of milk at the prescribed price to

the customers.

• Supply to Bulk Customers :

Institutional buyers like hotels, canteen, hospitals are supplied milk in loose.

In this case, the institution has to pay deposit equivalent to the price of milk

for 1 ½ months as advance and pay the bills on monthly basis.

PROJECTS:

• Automatic Bulk Vending

TMRSDMM has started milk distribution through automatic bulk vending

system to cater the need of middle class family with the name ATM (Any

Time Milk) at Gokuldham.

• Tetra pack Project

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MRSDMM has planned to start marketing and distribution of long life milk

& milk products in Tetrapak such as plain cow milk, skim milk and

flavoured milk. Tetrapak milk & milk products shall be marketed throughout

the country with well knitted marketing & distribution network.

• Solar Project at Latur

At MRSDMM, the work of prestigious "Solar Project" is going on with the

assistance of MNES, New Delhi and I.I.T., Mumbai. The project work is at

advance stage of completion and after completion of this project, milk

pasteurize shall be run without using fuel (furnace oil, Diesel etc.) which

shall be proved as boon to Dairy Industry.

• Computerization

Modernization of Mahanand dairy is future plan and as a part of it

computerization is considered as a first step. Training is being given to staff.

• Josh Milk on Railway Stations

Mahanand has introduced Josh Milk (Flavour Milk) on Railway platforms

from 10th January 2006.

• Intensive dairy development project

This is 100% centrally financed scheme, which is planned to be

implemented by Dudh Mahasangh App. Rs. 3.00 Crores would be available

to the Backward Hill area district of Nandurbar, Nanded, Nagpur, Latur &

Amravati District

P a g e | 57

10.2

GUJARAT

(GCMMF)

Distribution Network

Most producers work with marketing intermediaries to bring

their products to market. The marketing intermediaries make up a

marketing channel also called distribution cannel. Distribution

channels are sets of interdependent organizations involved in the

P a g e | 58

process of making a product or service available for use or

consumption.

The Head Office of GCMMF is located at Anand. The entire

market is divided in 5 zones. The zonal offices are located at

Ahmedabad, Mumbai, New Delhi, Kolkata and Chennai. Moreover

there are 49 Depots located across the country and GCMMF caters to

13 Export markets.

A zero level of channel also called a direct marketing channel

consists of a manufacturer selling directly to the final customers. A

one level channel; contains one selling intermediary such as retailer to

the final customers. A two level channel two intermediaries are

typically wholesaler and retailer. A three level channel are typically

wholesaler, retailer and jobber in between.

GCMMF has an excellent distribution. It is its distribution

channel, which has made it so popular. GCMMF’s products like milk

and milk products are perishable. It becomes that much important for

them to have a good distribution.

Distribution Chart

Products

Agents

P a g e | 59

We can see from above figure that GCMMF distribution

channel is simple and clear. The products change hands for three

times before it reaches to the final consumer. First of all the products

are stored at the Agents end who are mere facilitators in the network.

Then the products are sold to wholesale dealers who then sell to

retailers and then the product finally reaches the consumers.

Amul Parlors

Amul has come out with a unique concept of Amul Parlours. They

have classified them under four types namely:

Center for excellence

On the Move

Amul Parlours

Amul Preferred Outlets

Center for Excellence: These Amul Parlours are specifically at a

place, which has a class of excellence of its own. We can find such

parlors at the Infosys, IIMA, NID Ahmedabad etc.

Wholesaler

Retailer

Consumer

P a g e | 60

On the Move: These parlors are at the railway stations and at

different state bus depots across different cities.

Amul Parlours: These parlors can be seen at different gardens across

different cities. These are fully owned by Amul.

Amul Preferred Outlets: These are the private shops that keep the

entire of product range of Amul. They also agree not to keep any

competitor brands in the outlets. They can keep other brands that are

in the non-competitor category.

Amul has more than 200 such outlets right now. It wants to have

1,00,000 parlors by the end of the year 2010.

11.

PROCESS OF PROCUREMENT

11.1

MAHARASHTRA

Farmers and the Milk Co-operative Society

The Operation Flood programme helps both farmers as well as the

city consumers. The programme ensures that the farmers get a fair price for

their cow & buffalo milk and the consumers get best quality milk at

reasonable prices.

In order to maintain freshness, this milk is chilled and then

P a g e | 61

transported to Mother Diary in insulated milk tankers by road and by rail.

Checking the quality of milk

At the Dairy stringent hygienic standards are maintained. The

milk in the tankers is first checked for quality and freshness and then

unloaded into huge insulated stainless steel storage tanks. These tanks have a

capacity of 1 lakh liters each. The presence of adulterants (impurities) like

urea, neutralisers, preservatives and germs like bacteria are checked. All

these tests ensure that only good quality milk is accepted. Once empty, the

tankers are thoroughly cleaned and sanitized using acid and alkali. The

tankers are then finally rinsed with water.

Processing of milk

Unprocessed milk may contain small dirt particles invisible to

the naked eye. In order to remove these particles the milk has to be

processed.

To process milk at Mother Dairy, the milk is first clarified. This

is done in a clarifier which spins the milk at a very high speed, as a result of

which the dirt particles are thrown out and drained.

The milk is then pasteurized to make it safe for human

consumption. This process destroys any disease causing bacteria and also

increases the shelf life of the milk. During pasteurization the milk is heated

to 72 degree Celsius for 15 seconds and then rapidly cooled down to 7

degree celsius. This process, unlike boiling, does not affect the nutritional

value of the milk. Pasteurized milk is safe to drink without boiling as long as

P a g e | 62

it is kept cool at all times.

Fortification with Vitamin A

Toned milk during processing is fortified with Vitamin A. The

deficiency of Vitamin A can lead to night blindness and skin horning.

Homogenisation

At Mother Dairy the milk is also homogenised. This ensures that

the customers get uniform amount of cream in their milk.

In this process the milk is pumped at a very high pressure turning the cream

into tiny droplets thus distributing the fat through out the milk. These

droplets do not float to the surface to form a creamy layer. That is why no

creamy layer appears when Mother Dairy milk is boiled at home.

Mother Dairy shops sell homogenised toned milk which contains minimum

3% fat even though you cannot notice it.

Dispatching of milk

After processing, the milk is chilled and stored in silos and

further chilled to about 2 C. by the glycol chilling system, and then

dispatched to the Milk Shops in insulated road milk tankers. Prior to the

milk being dispatched in tankers, it is tested for quality to make sure that it

meets the quality standards. When the tanker arrives at the shop the milk is

transferred into a large refrigerated tank.

Making the milk available

The control room is very vital to the efficient distribution of

milk to the 900 shops across the city. It organizes the tanker routes and its

staff is responsible for ensuring that shops do not run out of milk. Each milk

tanker is fitted with a wireless set. As soon as the incharge at the control

P a g e | 63

room learns that a particular shop is running out of milk, he contacts the

tanker nearest to the shop on the wireless which then delivers the extra milk

to it.

Quality control all the way

A final quality check of the mill is also made at the shop

itself. This ensures that milk reaching the customers is of same quality as

dispatched from the Dairy.

Consumer Information

To raise the consumers awareness regarding Adulteration of

milk, Mother Dairy has thrown open its testing facilities. In its laboratories

consumers can see for themselves how impurities and adulterants are easily

detected. Mother Dairy also has two "mobile labs" that can test milk in the

residential colonies. All this is part of a commitment to provide the

consumers with the purest milk nature has to offer.

Keeping milk cool

Mother Dairy takes care to keep milk cool at every stage-it is chilled before

transporting in insulated tankers, it is stored in insulated silos and kept in

refrigerated tanks at the shops.

Keeping milk cool slows down the rate at which bacteria multiply. This also

increases its shelf life.

Caring for the environment

Solar Panels:

In an effort to conserve fuel, Mother Dairy utilises the abundant solar energy

to preheat the water going into the boilers. This also minimizes the pollution

caused by burning of fuels like coal, oil etc.

P a g e | 64

Effluent treatment plant:

The water used for cleaning equipment and tankers is treated at the effluent

treatment plant in the Dairy before being discharged into the sewege system.

11.2

GUJARAT

.Milk Processing Chart:

Collection of Raw-Milk

Electronic Milk Test

Methyline Blue

Reduction

Purchasing And Standardizing Process

P a g e | 65

Separation Process

Quality Check

Packaging Process

Cold Storage

Steps in Production Process

1. Collection of Raw Milk

Raw milk is collected from different co-operative societies of Gujarat.

About 122000 liters of raw milk is collected per day. Before this milk

is sent to the laboratory for testing the ‘FAT & SNF’ proportion, the

milk is separated from the raw milk. The milk is taken from the

chilling centers to Ahmedabad with the help of trucks.

After collecting the samples of milk, they are taken to the

laboratory ,where two types of tests are conducted.

Electronic milk test

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Methyline blue reduction test

Electronic Milk Test

Before pasteurizing the milk the samples are taken to the laboratory.

In the laboratory with the help of machine called electronic milk

tester, the proportion of SNF & FAT is checked with phosphate

solution. When the colour of the milk becomes yellow, it is sent for

pasteurisation.

Methyline blue reduction test

Another test, which is taken in the laboratory, is called Methyline

blue reduction test. This test is conducted for checking for how long

the milk will remain fresh. To check this, 10 ml of milk is taken and 1

ml of methyline blue solution is added to it. It is then kept under water

at 57-degree C. After one hour, if the solution losses its colour than it

is called raw milk. If the solution remains the same even after 5 hours

than it is considered as fresh milk, which remains constant for a long

period of time.

The dairy fixes the proportion of FAT & SAF.

MILK SNF FAT

Buffalo 9% 6%

Cow 8.5% 4.5%

After laboratory gives green signal and confirming the raw milk at the

reception dock is brought in to the house connected with the pump is

sent to the milk processing plant. This is than chilled below 4 degree

C. and then stored in milk silos. After that milk is processed which

has two steps i.e. pasteurising and standardizing.

P a g e | 67

2. Pasteurising & standardizing

After collecting and checking and conducting laboratory tests, the

pasteurising process is conducted. To pasteurized the milk means to kill all

the germs in the milk by a particular method which was invented by a

scientist called James Pasteur and so the name pasteurisation.

In pasteurizing, the milk is first heated at 72 C to 76 C for 15 seconds

and then it is immediately cooled below 4 C. By this method they destroy

the pathogenic bacteria present in the raw milk. But if the right degree of

temperature is not provided there are chances that the milk might still

contain germs. After this process some milk goes to separator machine and

remaining is proportionately sent for standardization.

Standardization process is known such as it bifurcates the milk in 3

categories varying according to that FAT & SNF contents. The equipment

named OSTA. Auto standardization adjusts the fat directly. The computer is

just ordered whether gold or standard milk is to be rationed and the same

will be received with appropriate contents.

Ready Milk = Pasteurised + Standardized.

3. Separation process

Separator machine separates two kinds of products, skimmed

milk & cream, through channels. There are 100 disks fixed in

separator machines, which revolve at 5000 rpm (revolution per

minute). It is taken to the tanks, which has the capacity of 20000

litres. Whenever the milk is needed from the tank, it is tested in the

P a g e | 68

laboratory and the deficit proportion fat is added by mixing cream.

This process continues for 24 hours.

4. Quality Check

Pasteurized milk is sent for a quality check in the Quality

Assurance laboratory of the dairy plant. Within 14 seconds FAT and

SNF proportion is received regarding 30 lack litres of milk. The total

investment put into the lab by the Dairy plant is of Rs. 6 crores.

This laboratory only checks and analyses the powder, milk and ghee.

There is a separate ice-cream analysing laboratory.

Packing Process

After this the milk is sent for packing to the milk packing station

in the dairy plant. In the milk packaging station there are huge

pipelines and behind each of them there is polyfill machine from

which the material to pack milk comes out. There are 12 such polyfill

machines in the packaging station from which the materials to pack

milk comes out. From each of these 12 machines 100 pouches are

packed in one single minute.

6. Storage

Then the milk is sent to the cold storage of the dairy where the milk is

stored until it is dispatched. Here the milk is stored at temperature

ranging from 5 C to 10 C, it is maintained with the help of exhaust

fans having silicon chips. About 40000 litres of milk is dispatched

from the cold storage of the dairy plant everyday. The damaged

pouches are kept a side and the milk is once again put to the tank.

P a g e | 69

12.

Major Players

AMUL

Amul is the latest entrant in the highly competitive milk market of NCR

where Mother Dairy had an almost monopoly.

Amul is the brand owned by GCMMF is handling almost 80 lakh litres of

milk daily.

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PARAS Dairy

It sells 3 lakh LPD

DMS

12.1

COMPARITIVE ANALYSIS OF MAJOR MILK BRANDS

MILK

BRANDS

Mother

Dairy

Amul Delhi

Milk

Scheme

Gopaljee Paras

Full Cream 19 19 19 19 19

Toned 15 15 15 15 15

Double

Toned

13 NA NA NA NA

P a g e | 71

Standard 17 NA NA NA NA

Skimmed 11 NA NA NA NA

P a g e | 72

13

OBJECTIVES OF THE RESEARCH

1)Assessing the population of MAHARASHTRA AND GUJARAT.

2)Assessing the milk market of MAHARASHTRA AND GUJARAT.

3)Assessing’s THE COMPETITION in the dairy sector territory .

4)Assessing the reasons of high and low sales volume ofMAHARASHTRA

AND GUAJRAT milk.

5)Suggesting remedial course of action for THE PROBLEMS

P a g e | 73

14

FINDINGS OF THE RESEARCH

14.1

Analysis: PROBLEMS

The Pie shows the PROBLEMS faced by Retailers.

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Findings:

Major problem being faced by Retailers was due to SUPPLY PROBLEM.

The distribution channel is not at all satisfying.

14.2

INTITUTIONAL

Analysis:

The graph shows the only important parameter i.e. TASTE for the

institutional consumers.

Findings:

P a g e | 75

According to the institutional consumers, who consume milk as an

Input for their production of sweets (like sweet shops, restaurants etc)

consider TASTE as the only and the most important parameter that effects

their buying decision. Out of total sample size of 50 only 16 consume

packed milk rest 34 consume loose milk as they perceive it to be fresh and of

better taste.

P a g e | 76

14.3

MAHARASHTRA

SWOT

STRENGTHS

The major strength of the

Mother Dairy is the different

variety of Milks and a

recognized BRAND name.

The increasing demand for

these products presents a

great opportunity for the

Mother Diary to increase and

scale up the production.

WEAKNESS

Scarce Mother Dairy

Outlets.

Less Margin given to the

Outlet owners to match the

existing competitors.

OPPORTUNITIES

There is a scope of business

as there is a demand for dairy

products.

Mother Dairy should open

more outlets to get the

maximum advantage of the

demand.

Need to put more stress in the

face-to-face direct marketing

THREATS

Increasing competition from

the other brands.

Strong supply chain

management by the

competitors.

Strong marketing strategy by

competitors by offering the

discount coupons to

consumers and providing

P a g e | 77

to reach to the customers.

The increasing demand for

these products presents a

great opportunity for the

Mother Diary to increase and

scale up the production.

healthy commissions to the

retailers.

14.4

GUJARAT

SWOT

Strengths

Demand profile: Absolutely optimistic. Milk being a necessity

product, the demand will stay and the sales at GCMMF are bound to

increase over a period of time.

Margins: Quite reasonable, even on packed liquid milk. The

margins are enough to limit the entry of potential entrants.

Flexibility of product mix: Tremendous. With balancing

equipment, GCMMF has kept adding a wide array of products to its

product line.

Availability of raw material: Abundant. Presently, more than 80

per cent of milk produced is flowing into the unorganized sector,

which requires proper channelization. Amul & GCMMF have

leveraged this and has got itself a strong base of suppliers who

provide them milk throughout the year. Large number of dairy plants

in public and cooperative sectors besides several others coming up in

P a g e | 78

the private sector would result in competition. Because of this the end

consumer would benefit and a good product mix would emerge.

Technical manpower: Professionally trained, technical human

resource pool, built over last 30 years is the strength that GCMMF

has. The employees of GCCMF are highly recognized in the industry

and have earned name for themselves as well as the federation.

Enhanced Milk Production: Increase in the milk production with

consequently increased availability of milk processing has led to

increase in consumption and faster access to the consumers through

effective distribution. The technology is brought from Denmark and

the production of milk has benefited from that.

Transportation: The transportation facilities and the easy

availability of the special trucks have provided a boost. Cold

refrigerated trucks are there in place and the warehouses also have the

cold storage facilities that facilitate the transportation.

Vast resources: Country has vast natural resources which offer

immense potential growth and development for dairying. Moreover

the financial resources available with the federation are immense and

the reputation is such that in case of any further requirements, it can

approach any institution and raise any form of capital.

Increasing purchase power and changing tastes of the

consumers: The purchasing power of the residents is increasing. As a

result a lot of products are being consumed. Moreover, the consuming

habits are changing. As a result, the demand for products such as

butter and cheese is increasing at a very rapid rate.

P a g e | 79

Weaknesses

Perishability: Pasteurization has overcome this weakness

partially. UHT gives milk long life. Still perishability is there at the

milk vendors end. This does result in loss of some production. But

Amul Dairy is taking steps to store milk at the vendors end. Surely,

many new processes will follow to improve milk quality and extend

its shelf life.

Lack of control over yield: Theoretically, there is little control

over milk yield. A lot depends upon the monsoon in the country. This

is because of the quality of cattle feed that would be available will not

have the required nutritional content. Steps are taken to provide

awareness regarding these and the penetration of quality feed is being

increased. Moreover, increased awareness of developments like

embryo transplant, artificial insemination and properly managed

animal husbandry practices, coupled with higher income to rural milk

producers should automatically lead to improvement in milk yields.

Logistics of procurement: Woes of bad roads and inadequate

transportation facility make milk procurement problematic. All these

factors lead to perishability of the procured milk. But with the overall

economic improvement in India, these problems would also get

solved.

Erratic power supply: The erratic power supply would cause

harm in the processing of milk.

Underdeveloped systems: There still exist underdeveloped raw

milk collection systems in some parts of the country. However steps

P a g e | 80

are being taken such as setting up of cold storage points at key

collection centers to combat the situation.

Lack of proper implementation: Dairy development programmes

have not been fully implemented as per the needs of the region in

different agro-climatic zones.

Infrastructure: The infrastructure that is available is not up to the

current world standards. Also lack of infrastructure for offering dairy

business management programmes to the trained personnel is creating

a hindrance.

Opportunities

"Failure is never final, and success never ending”. Dr Kurien

bears out this statement perfectly. He entered the industry when there

were only threats. He met failure head-on, and now he clearly is an

example of ‘never ending success’! If dairy entrepreneurs are looking

for opportunities in India, the following areas must be tapped:

Competition: With so many newcomers entering this industry,

competition is becoming tougher day by day. But then competition

has to be faced as a ground reality. The market is large enough for

many to carve out their niche. Moreover due to competition, there is a

chance to better serve the market with innovative products.

Value addition: There is a phenomenal scope for innovations in

product development, packaging and presentation. Given below are

potential areas of value addition:

o Steps should be taken to introduce value-added products like

shrikhand, ice creams, paneer, khoa, flavored milk, dairy

P a g e | 81

sweets, etc. This will lead to a greater presence and flexibility

in the market place along with opportunities in the field of

brand building.

o Addition of cultured products like yoghurt and cheese lend

further strength - both in terms of utilization of resources and

presence in the market place.

o Yet another aspect can be the addition of infant foods, geriatric

foods and nutritional.

Export potential: Efforts to exploit export potential are already

on. Amul is exporting to Bangladesh, Sri Lanka, Nigeria, and the

Middle East. Following the new GATT treaty, opportunities will

increase tremendously for the export of agri-products in general and

dairy products in particular. There is a strong basis of cost efficiency,

which GCMMF can leverage in the world market.

Markets: The market for the traditional as wells as processed

dairy products is expanding both at the domestic and international

front.

IT support: Software is now available for project formulation for

dairy enterprise. It has also computerized its production processes.

Mother Dairy was the first fully computerized dairy in India. In its

Anand plant all products are processed computerized, which does not

have any hand touch during any stage of process.

Threats

Milk vendors, the un-organized sector: Today milk vendors are

occupying the pride of place in the industry. Organized dissemination

P a g e | 82

of information about the harm that they are doing to producers and

consumers should see a steady decline in their importance.

Infestation: There are increasing incidents of chemical

contaminants as well as residual antibiotics in milk.

Quality: The quality of the milk is found to be poor as compared to

the international standards. One of the reasons for these according to

the EU and America is the method of milching the milk. In these

nations the milk is hands by the farmers owning the cattle do milched

with the help of machines, while in India.

Exploitation: The liberalization of the Dairy Industry is likely to be

exploited by the multinationals. They will be interested manufacturing

the milk products, which yield high profits. It will create milk

shortage in the country adversely affecting the consumers.

Subsidy by Western Nations: There have been incidences wherein

the Western nations subsidizing the dairy products by a few means

like transportation. Because of such reasons the final price of the

product goes below the prices prevailing in the Indian Market. Hence

it proves a threat to GCMMF’s and other Indian dairy products.

Creation of Non Tariff Barriers by Developed Nations: The

Developed Nations have created Non Tariff Barriers related to Quality

of the milk specifically. They want that the milk be processed with

potable Air and Water. They also want that the milching of cattle be

done with the help of machines. However this type if system is yet to

evolve in India. Because of these reasons they are reducing the market

potential of Indian made products, where GCMMF holds a lions

share.

P a g e | 83

The study of this SWOT analysis shows that the ‘strengths’ and

‘opportunities’ far outweigh ‘weaknesses’ and ‘threats’. Strengths and

opportunities are fundamental and weaknesses and threats are

transitory. Any investment idea can do well only when you have three

essential ingredients: entrepreneurship (the ability to take risks),

innovative approach (in product lines and marketing) and values (of

quality/ethics).

15

BIBLIOGRAPHY

BOOKS

COOPERATIVES AND RURAL DEVELOPMENT- BY AR

REDDY Y & SURESH REDDY

P a g e | 84

DAIRY DEVELOPMENT AND TRIBAL DEVELOPMENT - BY

RV SINGH

WOMEN IN DAIRY DEVELOPMENT - BY SHAGUFTA JAMAL

VILLAGES, WOMEN AND THE SUCCESS OF DAIRY

COOPERATIVES IN INDIA MAKIN PLACE FOR RURAL

DEVELOPMENT - BY PRATYUSHA BASU

DAIRY TECHNOLOGY BY YOSHI TAKESHI

WEBSITES

www.google.com

www.aarey.com

www.amul.com

www.nddb.org

www.indiadairy.com

www.financialexpress.com

http://www.indiadairy.com/

http://www.amul.com/

http://www.aarey.com/

http://www.google.com/

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