Milk Supply Chain Management_ Upstream & Downstream Issues

8/10/2019 Milk Supply Chain Management_ Upstream & Downstream Issues

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11/19/2014 Mrunal Milk Supply Chain Management: Upstream & Downstream issues

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- Mrunal - http://mrunal.org -

[Food Processing] Milk Dairy Sector, Supply Chain,upstream downstream issues, Amul Model, Operation

Flood

Posted By On 19/09/2013 @ 2:47 pm In Economy | 37 Comments

1. Prologue

2. Scope-Significance of Dairy Sector

3. Location: Dairy cooperatives

4. Milk Supply Chain: Upstream Issues1. Low productivity of milch animals

2. #1: Veterinary problems

3. #2: Breeding issues

4. #3: Fodderproblems

5. Azolla fern

6. Milk Quality

5. Milk Supply Chain: Processing Issues

1. Regional imbalance2. Anand/Amul Model/dairy cooperative model

3. Amul Supply Chain

4. Cooperative sector limitations

6. Milk Supply Chain: Downstream Issues

1. #1: MRP and adulteration

2. Synthetic Milk

3. #2: Ethnic products: untapped potential

4. #3: Export issues5. Fonterra crisis

6. #4: Tax on inputs

7. NDDB

8. Operation Flood

9. Government Schemes

10. National Dairy Plan (NDP)

11. Mock Questions on Milk Supply Chain Management

Prologue

First, regarding Write Articles, Win Books competition: so far 34
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entries received. And last date to submit is 25thSept 2013. Click me for

more details.

For UPSC General Studies Mains Paper III, we were looking at the Food

processing and related industries in India. So far we saw following

topics

1. Food processing industry: Awesomeness and Obstacles

2. Food processing industry: Truckload of Government Schemes and bodies

3. Marketing of agricultural produce: issues and constrains, Nuisance of APMC Acts

and Commission Agents

4. Agro/Food Processing: Export, Dumping, FDI, Finance, Taxation, Budget

Provisions, CODEX, NWR, BRGF, RKVY

5. Supply Chain Management, Upstream Downstream requirements for Fruit &

Vegetables, Confectionery industries

Then I got bored with food processing, hence made three compilations

on Hindu Sci-tech(and some posts about results, answer keys etc.)

Anyways, back to where we had left in [Food processing]: fruits veggies

SCM-updream downstream. Now time for Dairy & Milk Supply Chain

Management SCM-upstream downstream issues.

UPSC syllabus topic in this

article

prelims Paper I

Chemistry:

components

of synthetic

milk

Agro-tech:

azolla fern.

Biology:Food and

Mouth

disease

(GS1) location of primary, secondary, and tertiary

sector industries in various parts of the world

(including India)

Dairy industry in

India.

(GS2) Effect of policies and politics of developedand developing countries on Indias interests,

How the Fonterracrisis will help

Indian dairy biz.

(GS3) economics of animal-rearingLot fodder
http://mrunal.org/snthttp://mrunal.org/2013/08/food-processing-supply-chain-management-upstream-downstream-requirements-for-fruit-vegetables-confectionery-industries.htmlhttp://mrunal.org/2013/08/agrofood-processing-export-dumping-fdi-finance-taxation-budget-provisions-codex-nwr-brgf-rkvy.htmlhttp://mrunal.org/2013/08/food-processing-nuisance-of-apmc-acts-commission-agents-marketing-of-agricultural-produce-issues-and-constrains-for-gs-mains.htmlhttp://mrunal.org/2013/08/food-processing-mega-food-parks-agri-export-zonesaez-cold-chains-and-truckload-of-government-schemes.htmlhttp://mrunal.org/2013/08/food-processing-introduction-scope-significance-awesomeness-hardly-obstacles-truckload-of-for-gs-mains.htmlhttp://mrunal.org/2013/09/write-articles-win-books-and-free-notes-as-consolation-prize-for-everyone.html


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material.

(GS3) Food processing and related industries in

India-scope and significance, location, upstream

and downstream requirements, supply chain

management.

for Milk/Dairy

business.

Next time well see [Food processing] meat, poultry and fisheries.

Scope-Significance of Dairy Sector

HIGHEST

PRODUCTION

Top five Milk producers (World)

1. India

2. United States of America

3. China

4. Pakistan (as per NDDB, but Im bafflednonetheless.)

5. Russian Federation

LARGEST

POPULATION

India has the worlds largest livestock

population

half the world population of buffaloes

1/6th of the world goat population

CONTRIBUTION

TO GDP

Livestock sector (milk, meat, eggs) contributes 3.6%

of GDP. (2010s data)

Availability

Per capita milk availability All India: ~290 gm;

Punjab (highest): >900gm.

still per capita milk availability in India less

than world average

EMPOWERMENTTo Farmers, Women And Consumers

more details under operation flood

India has proximity to milk deficit countries e.g.

1. Bangladesh

2. Indonesia

3. Malaysia

4. Philippines

5. South

6. Korea

7. Sri-Lanka

8. 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.

SOME STUPID NUMBERS FROM ECONOMIC SURVEY:

Year Milk (Million Tonnes) Eggs(Million Nos.) Fish(Million Tonnes)

2011-

12>120 >60,000 >8500

Location: Dairy cooperatives

STATE Brand Name official name

GUJARAT AmulGujarat Cooperative Milk

Marketing Federation (GCMMF)

ANDHRA Vijaya

Andhra Pradesh Dairy

Development Cooperative

Federation (APDDCF)

KARNATAKA NandiniKarnataka Cooperative Milk

Producers Federation (KMF)

MAHARASHTRA

Mahanand, Gokul,

Dhawal, Dudh

Pandri

Maharashtra Rajya Sahakari

Maryadit Dugdh Mahasangh

(Mahasangh)

PUNJAB VerkaPunjab 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 Indias total milkproduction. Ironically, only one percent is procured by co-operatives,

remaining milk goes to private-dairy players, who exploit farmers, and

do adulteration.


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Ranking: Top Five States

NO. COWS N

BUFFALOS

MILK

PRODUCTION

PER CAPITA MILK

AVAILABILITY

1. Uttar Pradesh

2. Madhya

Pradesh

3. Rajasthan4. Andhra

Pradesh

5. Maharashtra

1. Uttar Pradesh

2. Rajasthan

3. Andhra

Pradesh

4. Punjab

5. Gujarat

1. Punjab

2. Haryana

3. Rajasthan4. Himachal Pradesh

5. Gujarat

Bottom in all of above:North Eastern States, Delhi, Goa and UT.

Milk production =directly related to fodder availability.

Fodder=need irrigation.Therefore, states with good irrigation facilities and / or rich farmers

that can afford tubewells= milk production is high.
http://www.flickr.com/photos/97816112@N02/9815369933/


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For these reasons, you can see how MP is in top-5, for number of cows

and buffalos BUT still MP doesnt figure in top-5 in milk production due

to fodder shortage. (Rankings taken from NDDB website)

Milk Supply Chain: Upstream Issues

Low productivity of milch animals

Country Avg. Cow Milk Kg Per Year

Australia >4000

EU >5500

USA >8000

World Average 3100

India 800

India has worlds largest cow population, but the average productivity of

Indian cows is among the lowest in the world. WHY?

1. Veterinary service problems

2. Breeding problems

3. Fodder problems

Lets see them one by one:

#1: Veterinary problems

1. Manpower

To support health programmes for the

massive livestock population, we need more

than 60000 veterinary doctors in the rural

areas. (right now we only have ~25000)

Need to strengthen the mobile veterinary

services to ensure door-step veterinary

support, particularly in inaccessible areas.Veterinary hospitals, dispensaries are

inadequate in rural areas.

2. information

The disease reporting is neither timely nor

complete which delays proper interventions.

NIC developing software for computerized

National Animal Disease Reporting System

(NADRS)Itll link taluka, Block, District and State

Headquarters to a Central Disease Reporting

and Monitoring Unit at the Department of


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Animal Husbandry, Dairying & Fisheries (DADF)

This will ensure faster and reliable disease

reporting

3. Inadequate availability of vaccines vs. High prevalence of FMD,

theileriosis and brucellosis amongst cattle4. FMD alone causes economic loss of ~Rs.20,000 crore per year to

India. lets check more details about FMD for MCQs.

Foot and mouth Disease (FMD)

FMD is a viral disease that spreads rapidly between animals.

high prevalence in Africa, the Middle East and Asia

FMD affects cloven-hoofed animals (those with divided hoofs),

including cattle, buffalo, camels, sheep, goats, deer and pigs.It can even affect wild animals e.g. Deer, wild pigs and buffalos.

Pigs are regarded as amplifying hosts because they can excrete

very large quantities of the virus in their exhaled breath.

Cattle are very susceptible to FMD. They get infected by breathing

even small quantities of the virus.

FMD spreads rapidly from one animal to another, especially in

cool, damp climates and/or when animals are housed closely

together.Although FMD is not very lethal in adult animals, it can kill young

animals and cause serious production losses.

Animal suffering from FMD :

Becomes lame and unable to walk to feed or water.

Stops eating because its tongue and mouth gets blister- very

painful to chew anything. =Adult animal can survive a few

days of starvation but young animal will die.

Its mammary glands are damaged=milk production loss.FMD has serious ramifications in international trade of milk and

meat. Because countries that are free of the FMD disease= they

ban or restricting imports from FMD affected countries.

There is no cure for FMD. The Affected animals will recover with

time. Although Vaccines can protect against the disease.

Department of Animal Husbandry, Dairying & Fisheries (DADF) has

initiated National Programmes for prevention and control of FMD, with

help of State government.

#2: Breeding issues


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CLIMATE

The cattle from temperate region have higher milk

production. (e.g. Denmark)

But India: tropical, sub-tropical, hot-humid type

climate

So even when we import foreign cattle breeds, they

give less milk because of climatic factor.

BREEDING

RESEARCH

Present breeding strategy focuses on high yielding

cows/buffalos rather than developing breeds that

are tolerant to adverse climate/fodder conditions.

Crossbred animals are sent to areas poor in feed

resources=they dont survive/dont produce

optimum amount of milk.

Limited availability of quality breeding bulls and

semen.

Notable

breeds

Cow: Sahiwal, Gir, Rathi and Kankrej

Buffalo: Murrah, Mehsana and Jaffarbadi

Solution?

BREED promote in ___ area

HOLSTEIN FRIESIAN in feed-fodder rich states

JERSEY in states poor in feed/fodder resources.

Government started National Project for Cattle and Buffalo

Breeding (NPCBB) is to promote genetic upgradation of Indian

cattle livestock through Artificial Insemination.

NGOs like BAIF and JK trust are operating about 6,000 mobile

artificial insemination centres.

#3: Fodder problems

1. Rich farmers=irrigation /tubewell =can grow fodder=>higher milk

yields

2. But majority are poor farmers= rely on common pastures

=>underfed cattle= less milk yields.

3. For the same reason: MP is in top 5 for cattle population but not intop 5 for milk production

4. While the number of livestock is increasing, the grazing lands are

diminishing, because


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Real-estate mafias and National Son-in-law encroaching on

such land

Farmers prefer growing food grains, oil seeds, and pulses

hence fodder production generally gets lower priority.

5. At present, fodder is being cultivated only on 4% of gross cropped

area= insufficient to meet requirement.

6. High quality fodder seeds =not available.7. Agriculture crop residues are sold to paper industry, packaging,

etc. rather than using as animal feed.

8. We dont have specific extension machinery with specialized

manpower for popularization of good fodder varieties.

Solutions?

FODDER

BANKS

to procure surplus fodder from the farmers in

areas with good rainfall / irrigation.

Convert this fodder into silage or fodder blocks

for storage

Supply this packed fodder to the deficient areas.

FOREST

the degraded forest areas, mostly under the Joint

Forest Management Committees (JFMCs), can beused for assisting growth of indigenous

improved fodder varieties of grasses, legumes,

and trees under area-specific silvi-pastoral

systems.

Dovetail the ongoing schemes like MGNREGA

and RKVY for ^this purpose.

AZOLLA

PRODUCTION

to improve quality of nutrition for the livestockLets see Azolla in detail, for UPSC is nowadays

obsessed with asking minimum one MCQ from

some random agro related plant/organism thing

E.g. Mycorrhizal biotechnology and Nostoc algae in CSAT

2013.

Azolla fern

Azolla is a floating fern. It resembles algae, Multiplies very rapidly.

widely distributed in tropical belt of India.
http://mrunal.org/2013/06/answerkey-csat-2013-environment-biodiversity-enb-questions-solved-with-explanation-reference-all-four-sets-abcd.html/comment-page-1#329


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Grows in paddy fields or shallow water bodies.

Benefits of Azolla fern?

FOR

CROPPING

Azolla is a Nitrogen fixing fern= aids in the growth of

rice.

Azolla reduces evaporation from water surface andincreases water use efficiency in rice.

Suppresses the weed growth.

FOR

LIVESTOCK

FEED

Azolla has 50-60% protein on dry weight basis, rich

in almost all essential amino acids, vitamin A,

vitamin B-complex and minerals

Livestock easily digest it.

Dry Azolla can be mixed with other fodder, or can begiven directly to cattle, poultry, sheep, goats, pigs

and rabbits.

Green Azolla is also a good feed for fishes.

Milk Quality

From farm to dairy, there is significant deterioration in milk quality.

Because of two reasons:

Factors affecting quality of Milk Supply

1. BOGUS

INFRASTRUCTURE

1. lack of all-weather roads in many

villages

2. Electrical problems in rural areas=

cooling centers dont work 24/7 basis.

3. lack of potable water and supplysewage disposal => animals kept in

unhygienic condition=milk gets

contaminated.

1. Contamination through equipment.

Because lack of potable water=> milk-

cans, buckets, tankers are not regularly

washed.

2. Bad roads=more transport time=more

bacterial growth in milk.


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2. BOGUS

HANDLING

3. Careless attitude of cooperative-staff.

They dont keep the prescribed low-

temperature during collection and

transport of milk.

4. ^Why careless attitude? Because Dairy

cooperative elections won through

money power and then such office-bearers recruit any swinging dude in

dairy as long as he is payin bribes for

getting the job.

Result: following properties of milk get affected

SENSORY PROPERTIES color, taste, odour

COMPOSITION fat, protein etc.

HYGIENE bacteriological growth

Solution?

1. Currently, when farmer supplies milk @dairy cooperative society

(DCS) of his village, they only test one thing: fat content.

Therefore, farmer has no incentive to maintain any other qualities

of milk.2. Setup quality testing facilities @collection center to test bacteria

count, acidity, smell/taste, bacterial count, heavy metals, pesticides

residue etc. and not just fat-content alone.

3. Train farmers on hygiene habits for milk collection.

4. Pay farmers more money if they supply quality milk

5. Supply of Hygiene Kits+ Training to DCS staff. Impose penalty if

they dont comply with the standards.

6. Less manual handling, use more machines: Bucket Milkingmachines, Feed racks, water bowls and partitions etc.

Milk Supply Chain: Processing Issues

A typical supply chain of milk sector:

Regional imbalance

Bulk of new capacity in the period in last decade, has beenestablished in the Northern states, Maharashtra and Tamil Nadu.

Remaining states are lagging in dairy growth.

Capacity utilization of dairy plants is about 60% (assuming 300


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working days in a year). Due to Lack of milk availability in the lean

season.

For e.g. Rajasthan has 8% share in milk production and 11% share

in consumption of milk products, however the share in dairy

processing capacity is 4%. Meaning much of the milk escapes from

the value-addition in dairy supply chain. A similar situation

prevails in Bihar.

Anand/Amul Model/dairy cooperative model

1946

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.


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(PM Lal Bahadur Shashtri)

1971 Gujarat Cooperative Milk marketing federation setup (GCMMF)

1974GCMMF 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.

theyre equipped with Automatic milk collection

unit (AMCUS): computer analyses fat content ofmilk, automatic printing of receipts etc.

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 therequirements of GCMMF. (e.g. must collect 30,000

litres milk daily for a period of three years)

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 GCMMFumbrella.

Amul has more than 5000 outlets of own- at high


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RETAIL

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.

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

here is one more supply chain diagram: click to enlarge

Cooperative sector limitations

Reach

While dairy Cooperatives have played an

important role in Indian milk industrys

development, but still dairy cooperatives reach

barely ~20% of the Indian farmers.

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 thecooperative.

Even the largest Indian dairy player (Amul)s

annual turnover is quite lower than a large MNC


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dairy company like Nestle.

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.

Milk Supply Chain: Downstream Issues

#1: MRP and adulteration

WPI for Milk product= more than 190 (for 2012)

Meaning there is 90% increase in the wholesale price of Milk,

compared to base year 2004.

This type of killer price rise=> has led to adulteration, fake milk

from urea, Nakli-Maawaa etc. once in a while, youve seen reports

about this, particularly in Delhi-UP region.

Such fake milk products are extremely hazardous to health.

In long term, theyll destroy Indias name in foreign market, just like

Chinese milk products lost business internationally, after news

reports of Melamine adulteration in 2008.

Synthetic Milk

Synthetic milk is prepared by mixing urea, caustic soda, refined oil

(cheap cooking oil) and common detergents.

Ingredients of Synethic/artificial milk

INGREDIENT Why added in synthetic milk?

REFINED

OILAs a substitute for milk fat.

Detergent acts as an emulsifying agent. Meaning

it helps above refined oil to get mixed in water and

give a frothy white solution that looks like milk.


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DETERGENT Even in legit (real) milk, the traces of detergent are

found because farmers and dairy staff use cheap

detergents to clean vessels, buckets etc. but dont

thoroughly wash them.

CAUSTICSODA

To neutralize the acidic PH of other ingredients and

thus prevents fake-milk from turning sour duringtransport.

UREA

To increase solid-not-fat (SNF) content.

Higher the SNF=better the milk-quality, fetches

more price when sold to dairy.

it also increases viscosity (thickness) of the liquid

so you feel youve bought premium quality milk .

STARCH Prevents curdling in fake-milk.

Heath hazards of Synthetic milk: damages kidney, heart problems,

cancer and even death

National Survey on Milk Adulteration 2011

Was conducted by FSSAI. click me to learn more about FSSAI

Bihar, Chhattisgarh, Odisha, West Bengal, Mizoram, Jharkhand andDaman & Diu= their milk failed in all tests.

only Goa and Puducherrys milk passed all the test.

~70% of Indian milk doesnt meet the standards set by set by the

Food Safety and Standards Authority of India (FSSAI)

Last year, Union government quoted ^this report, while filling affidavit

in SC about milk adulteration. Union also said that it Is state

governments responsibility to act on milk adulteration problem. LaterSC asked state governments to file affidavit about what action theyve

taken.

#2: Ethnic products: untapped potential

Examples of ethnic milk products: Paneer, Rasogolla, Sandesh,

Pantua, Rasomalai, Cham, Rajbhog, Kulfi, Rabri, Basundi, Burfi,

peda, Gulabjamun, Kalakand, Dahi, Mishti Doi, Lassi, Chhach /

Mattha, Srikhand etc.Scope: For ethnic milk products, profit level is ~12-38% of the input

cost.
http://mrunal.org/2013/08/food-processing-nuisance-of-apmc-acts-commission-agents-marketing-of-agricultural-produce-issues-and-constrains-for-gs-mains.html#861


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PROBLEM SOLUTION

1. Most of the ethnic milk

products are made by local

halwaii / sweet shop=

unbranded, unorganized. Cant

compete in foreign market.You need to create a brand

first to earn the respect and

trust of foreign customers.

2. Since this is done on small

scale = they use cheap quality

packaging material, even

harmful colors and

preservatives used, =Doesntmeet quality norm in US/EU

market.

3. 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 cant do that.

1. Train small manufacturers

of ethic dairy products,

such as halwaiis: make

them to adopt hygienicpractices, use state /

district level bodies,

cooperatives, ITIs can be

involved in such efforts

2. Catalyze R & D for

commercialization of ethnic

dairy products

3. The Ministry of FoodProcessing, 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.

#3: Export issues

Import export

of milk

products

(2012-13) in

crore Rs.

exportimport

>700 >100

Earlier we saw India is located close to the milk deficit countries, but still

India hasnt capitalized on this location advantage due to the following

reasons:

1. Low quality and hygiene standards.

2. Only ~35% of milk produced in India is processed. Rest is sold bylocal doodhwalla= not enough milk available for export.

3. Domestic consumption of milk has increased => less surplus left

for exports


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4. Lack of experience in marketing products in international markets,

particularly for ethnic milk products.

5. Low productivity and quality are the key reasons due to which

processors in India, are not able to achieve the scale of operations

of their counterparts in New Zealand or Australia.

Ban

2011

Export of milk powders (Skimmed Milk Powders, Whole Milk

Powders, Dairy Whitener, Infant Milk Foods etc.), Casein and

Casein Derivative was prohibited

2012ban lifted, these milk/casein products export given under

Vishesh Krishi and Gram Udyog Yojana(VKGUY)

Fonterra crisis

New Zealand = one of the biggest dairy exporter of the world.

Fonterra= New Zealands biggest dairy company

2013: News report came that Fonterras milk powder could have

been contaminated with the Clostridium bacteria. It can cause fatal

botulism.

After this news report, China and Sri Lanka banned Fonterras

products.

Fonterra CEO says: it was a false alarm, the bacteria variety found

in our milk powder is not capable of causing botulism, but

nonetheless we have recalled all the batches exported. So dont

worry

Anyways, all this negative publicity and banning of New Zealand dairy

products= gives opportunity for Amul to tap those export markets.

#4: Tax on inputs

In earlier times, dairy industry had been subjected to octroi and

sales tax etc. creating a non-level playing field with the

unorganized sector.

There had been high level of taxation on dairy equipment and

machinery (excise, sales tax, octroi) Even the excise duty on

polyethylene film, aseptic packaging machines, milk vending

machines, pouch filling machines, used in packing and distribution.

This has hampered the growth of dairy industry. Althoughnowadays, taxes on most of these items have been reduced /

abolished.

Necessary Reform: Speedy implementation of GST.


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Enough of supply chain, lets look at some allied topics: NDDB,

Operation Flood, Government schemes related to dairy sector.

NDDB

National Dairy Development Board

Statutory body (1965)apex organization of dairy cooperatives in the country

Chairman: Amrita Patel

HQ: Anand, Gujarat

2013: NDDB been in news because

AWARD

NDDB has Won Indira Gandhi Rajbhasha Award for

the financial year 2011-12. (But declared in 2013).Rajbhasha awards are presented to institutions for

outstanding achievements in the use of Hindi

language to ministries/departments, banks and

financial institutions, public sector undertakings and

employees.

CHAIRMAN

(PERSON

IN NEWS)

Dr. Amrita Patel: Chairman National Dairy

Development Board.

Recently decided to resign.(although Mohan wanted

her to continue).

After Vergese Kurien, the father of white revolution,

she has been managing NDDB.

Operation Flood

Timeline of Operation Flood

1965 NDDB setup.

1970 NDDB launches Operation flood.

1996 The End of Operation flood.

Operation flood had three objectives:

1. Increase milk production (a flood of milk)

2. Increase farmers income.3. Reasonable milk prices for consumers

Op.Flood setup following hierarchy of dairy cooperatives


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LEVEL Org.

VILLAGE Primary Village Cooperative Society

DISTRICT District Union

STATE State Federations

NATIONAL NDDB

Operation flood worked in three phases from 1970 to 1996:

PHASE-

1

Setup dairy cooperatives in 10 states and link them with

four metropolitan cities: Mumbai, Delhi, Kolkata and

Chennai.

Finance: by the sale of skimmed milk powder and butter

oil gifted by the European Union

PHASE-

2

Karnataka, Rajasthan, MP

Connected more than 40,000 villages and 4 million

farmers in the dairy cooperative umbrella.

finance: by World bank loan

PHASE-3

To consolidate the gains made from previous phases.

Vaccination, Breeding research, artificial insemination,farmers training etc.

The end: 1996

Result of Operation Flood

Made India the largest Milk producer of the world.

Imports of milk solids ended. Our milk requirements now met

through desi-dairies. (Otherwise imagine, if we were still relying onimported milk, like imported crude oil than what will be the

current account deficit and rupees downfall!)

How Dairy cooperatives lead to EMPOWERMENT?

CONSUMER

EMPOWERMENT

1. Per capita milk availability increased.

2. Reduced the regional imbalance in milk

availability.

3. Reduced the seasonal variation in milk prices.

4. Farmers connected in cooperative dairy


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ECONOMIC

EMPOWERMENT

grid=no exploitation, increased income.

5. Village dairy cooperatives= less nuisance than

APMC / food grain middlemen.

SOCIAL

EMPOWERMENT

6. Milk production doesnt require much land.

Even landless poor can participate.7. Village Milk Cooperatives bypassed the feudal

power structure associated with

cropping/foodgrains in villages. It covered

farmers from all castes and religion.

8. In that way, operation flood was more

successful in Social empowerment than land

reforms and Panchayati raj.

WOMEN

EMPOWERMENT

9. Many women dairy cooperatives were setup.

(Particularly during and after phase III)

10. Women became direct members and office

bearers of such cooperatives and started

earning.

11. You may have seen in the latest Amul ad

Maari bairi sethani thai gayi che: translated

my wife has become a Sethani (thanks todairy income from Amul.)

Government Schemes

(Although given in previous article, but copy pasting again for the sake

of continuity during reading-revision)

Department of Animal Husbandry, Dairying & Fisheries

They run following schemes:

1. install Bulk Milk Coolers at village level close to the area of milk

production

2. for installation of bulk milk cooler

Intensive Dairy

100 per cent grants in aid given toprovided to Dairy Milk

Unions/Federations:

for Dairy processing and marketing


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Development Scheme

(IDDS)

for milk equipment for bulk milk

coolers, chilling centers, refrigerated

tankers and cold storage

for developing dairy infrastructure at

the village and district level.

Dairy

Entrepreneurship

Development Scheme

(DEDS)

to encourage entrepreneurs in setting

up modern dairy infrastructure for

clean milk production

helps in bulk milk coolers,

transportation facilities including

refrigerated vans, cold storage facility

fodderCentrally Sponsored Fodder and FeedDevelopment Scheme (CSFFDS)

with help of state governments

clean milk

Official name: Strengthening

Infrastructure for Quality & Clean Milk

Production

trains of farmers on good milkingpractices

Fund to setup Bulk Milk Cooler (BMC)

@village level.

fund to setup laboratories for testing of

milk

National Dairy Plan (NDP)

By National dairy development board (NDDB), with support from

International Development Association (IDA)

Phase-1 (2012-17) was launched at Anand, Gujarat.

Scheme will run in 14 states Uttar Pradesh, Punjab, Haryana,

Gujarat, Rajasthan, Madhya Pradesh, Bihar, West Bengal,

Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Orissa and

Kerala.^These states collectively account for over 90% of countrys milk

production.


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National Dairy plan will do following:

1. Breed improvement + animal nutrition=> increase milk production,

reduce methane emission.

2. Strengthen of village based milk procurement system= Rural milk

producers to get greater access to the organized dairy sector.

3. Use of ICT technology: Internet Based Dairy Information System (i-DIS), Data warehousing System along with Business Intelligence

tool etc.

4. HRD, management, knowledge sharing, R&D and other fancy stuff

Funding pattern

ca$h

comes

from

1. International Development Association (IDA) of the

World Bank2. Central government (Department of Animal

Husbandry, Dairying and Fisheries)

toNDDB: National Dairy Development Board (a statutory

body)

ultimately

to

End Implementing Agencies (EIAs):

State GovernmentCooperative dairy federations

Milk Producers Unions

ICAR institutes, and veterinary/dairy institutes and

universities

Mock Questions on Milk Supply Chain Management

MCQs

1. Correct Statements about Foot and mouth disease(FMD)

a. It is caused by brucellosis bacteria

b. Wild animals are immune to FMD

c. FMD is usually lethal to Adult buffalo

d. None of above

2. Incorrect Statement about Foot and Mouth disease (FMD)

a. Pigs are considered amplifying hosts for FMD

b. Pigs themselves are immune to FMD

c. Both

d. None


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3. Find odd term

a. Sahiwal

b. Murrah

c. Gir

d. Kankrej

4. Correct statement about Azolla fern

a. It is a weed that negatively affects paddy cultivation.b. If Azolla fern is mixed with fodder, it improves the health of

cattle.

c. both

d. none

5. Why is caustic soda used in manufacturing of synthetic milk?

a. To act as an emulsifying agent and give frothy appearance to

the liquid.

b. To neutralize the acidity of other ingredients and stops milkfrom turning sour

c. To increase the milk fat content

d. None of above

6. Correct statements about National Dairy plan

a. Itll be uniformly applied to all 28 states of India, in its first

phase.

b. International Development Association will finance part of

this project.c. Both

d. None

Descriptive

2m

1. NDDB

2. Intensive Dairy Development Scheme (IDDS)

3. Dairy Entrepreneurship Development Scheme (DEDS)

12m

1. Write a note on NDDB and its contribution in white

revolution.

2. National Dairy Plan (NDP) is a scientifically planned multi-

state initiative to improve milch animal productivity.

Comment

3. Write a note on the functions of Department of Animal

Husbandry, Dairying and Fisheries.25m

1. The destruction of Indias village system was the greatest of

Englands blunders.


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2. Government initiatives to boost the milk productivity in India.

3. Dairy cooperatives have played an important role in the

women empowerment and social transformation of rural

India. Comment

4. Write a note on the upstream and Milk Supply Chain:

Downstream Issues in the dairy sector of India.

Essay (200m)1. Education remains the key to both economic and political

empowerment.

2. There is more potential for economic growth in rural India

than at any time in decades.

3. The Internet is becoming the town square for the global

village of tomorrow.

4. Emigration, forced or chosen, is the quintessential experience

of our time.5. The notion of the world as a village is becoming a reality.

6. A nation that continues year after year to spend more money

on military defense than on programs of social uplift is

approaching spiritual doom.

Article printed from Mrunal: http://mrunal.org

URL to article: http://mrunal.org/2013/09/food-processing-milk-dairy-

sector-supply-chain-upstream-downstream-issues-amul-model-

operation-flood.html

Copyright 2014 Mrunal. All rights reserved.

Milk Supply Chain Management_ Upstream & Downstream Issues

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