Scope-Significance of Dairy Sector
HIGHEST PRODUCTION | Top five Milk producers (World) - India
- United States of America
- China
- Pakistan (as per NDDB, but I’m baffled nonetheless.)
- Russian Federation
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LARGEST POPULATION | - India has the world’s largest livestock population
- half the world population of buffaloes
- 1/6th of the world goat population
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CONTRIBUTION TO GDP | Livestock sector (milk, meat, eggs) contributes 3.6% of GDP. (2010’s data) |
Availability | - Per capita milk availability All India: ~290 gm; Punjab (highest): >900gm.
- still per capita milk availability in India less than world average
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EMPOWERMENT | - To Farmers, Women And Consumers
- more details under “operation flood”
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India has proximity to milk deficit countries e.g.
- Bangladesh
- Indonesia
- Malaysia
- Philippines
| - South
- Korea
- Sri-Lanka
- Thailand
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Hence Indian dairy production could be utilized to earn good foreign exchange by targeting those markets. More under “Downstream=>Export”.
Location: Dairy cooperatives
STATE | Brand Name | official name |
GUJARAT | Amul | Gujarat Cooperative Milk Marketing Federation (GCMMF) |
ANDHRA | Vijaya | Andhra Pradesh Dairy Development Cooperative Federation (APDDCF) |
KARNATAKA | Nandini | Karnataka Cooperative Milk Producers’ Federation (KMF) |
MAHARASHTRA | Mahanand, Gokul, Dhawal, Dudh Pandri | Maharashtra Rajya Sahakari Maryadit Dugdh Mahasangh (Mahasangh) |
PUNJAB | Verka | Punjab State Cooperative Milk Producers’ Federation (MILKFED) |
TN | Aavain | Tamilnadu Cooperative Milk Producers’ Federation Ltd (TCMPF) |
Issue: there is a regional imbalance in production and processing capabilities. e.g. UP contributes over 17 percent of India’s total milk production. Ironically, only one percent is procured by co-operatives, remaining milk goes to private-dairy players, who exploit farmers, and do adulteration.
Anand/Amul Model/dairy cooperative model
[pic 1]
946 | Sardar Patel encourage the farmers of Anand region in Gujarat, to form their own milk cooperative, to protect themselves from exploitation from private milk traders |
1965 | National Dairy development board setup @Anand, to replicate the dairy cooperative model throughout country. (PM Lal Bahadur Shashtri) |
1971 | Gujarat Cooperative Milk marketing federation setup (GCMMF) |
1974 | GCMMF starts maketing milk products under single brand name Amul (Anand Milk Union Limited) |
Amul Supply Chain
VILLAGE | - In the given village, a dairy Cooperative Society (DCS) is formed.
- Every dairy cooperative society has ~110 farmers.
- Combined, all DCS together handle more than 18 million kg milk / day.
- they’re equipped with Automatic milk collection unit (AMCUS): computer analyses fat content of milk, automatic printing of receipts etc.
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DISTRICT MARKETING COOP.UNION | - they process milk=> butter, ghee, milk powder, cheese, ice cream etc.
- E.g. Banaskantha District Cooperative Milk Producers’ Union Limited known as Banas Dairy. They manufacture a large number of dairy products under AMUL, SAGAR and BANAS brands. Usually “Banas” products sold locally, and Amul products sent to other states.
- similarly Gandhinagar District Co-operative Milk Producers’ Union Ltd.=Madhur dairy.
- Surat= Sumul Dairy
- Surendranagar District Co =Sursagar Dairy.
- They can sell their products under the brand name “Amul” as long as they meet the requirements of GCMMF. (e.g. must collect 30,000 litres milk daily for a period of three years)
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STATE MILK COOP. FEDERATION | - The main “boss” is Gujarat Cooperative Milk marketing federation (GCMMF).
- All of above district cooperative unions (Banas, Madhur, Sumul Sursagar) etc. fall under GCMMF umbrella.
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RETAIL | - Amul has more than 5000 outlets of own- at high streets, residential areas, Railway Stations, Bus Stations, Educational Institutions, across India.
- 2012: Amul planned to setup 10000 retail outlets across India.
- Other than that, even private shops, hotels, restaurants etc. too sell Amul products.
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- this “Amul Model” eliminates middlemen and directly engages farmer with the processor (dairy)
- These cooperatives form part of a national milk grid which links the milk producers throughout India with consumers in more than 700 towns and cities
] Cooperative sector limitations
Reach | - While dairy Cooperatives have played an important role in Indian milk industry’s development, but still dairy cooperatives reach barely ~20% of the Indian farmers.
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Competition | - Dairy cooperatives face increasing competition from private dairies: both in procurement + retailing of milk.
- Private players are more agile, offering better incentives to farmers compared to the cooperative.
- Even the largest Indian dairy player (Amul)’s annual turnover is quite lower than a large MNC dairy company like Nestle.
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Management | - Dairy cooperatives are subject to state laws /regulations. But often, the elections in dairy cooperatives are won using money and caste equations.
- When such fraudsters get key positions in the dairy board, all they care is how to recover their ‘investment’ by taking bribes in appoint of dairy staff=> inefficiency + lack of new initiatives.
- Hence, State governments need to make these dairy cooperatives more accountable, democratic and professional in their functioning.
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http://mrunal.org/2013/09/food-processing-milk-dairy-sector-supply-chain-upstream-downstream-issues-amul-model-operation-flood.html#1043
PROBLEM | SOLUTION |
- Most of the ethnic milk products are made by local halwaii / sweet shop= unbranded, unorganized. Can’t compete in foreign market. You need to create a brand first to earn the respect and trust of foreign customers.
- Since this is done on small scale = they use cheap quality packaging material, even harmful colors and preservatives used, =Doesn’t meet quality norm in US/EU market.
- To make Indian ethnic milk products famous like cakes, pastries, pastas and noodles => have to invest a lot in marketing promotions abroad. Small scale firms can’t do that.
| - Train small manufacturers of ethic dairy products, such as halwaiis: make them to adopt hygienic practices, use state / district level bodies, cooperatives, ITI’s can be involved in such efforts
- Catalyze R & D for commercialization of ethnic dairy products
- The Ministry of Food Processing, in conjunction with the NDDB, needs to undertake generic promotional campaigns to enhance the image of Indian ethnic dairy-based products in US/EU markets.
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