Centrally Sponsored Scheme
NATIONAL PROGRAMME FOR
BOVINE BREEDING AND DAIRY
DEVELOPMENT
Benchmark Survey Report
Sponsored by
Department of Animal Husbandry, Dairying and Fisheries
Government of India
Implemented by
Malabar Regional Cooperative
Milk Producers Union Ltd.
Report from
Dr N.R. Unnithan
2014
ACKNOWLEDGEMENT
I
am
immensely
grateful
to
Sri.
P.T.
Sri. P.K. Pathak, Managing Director and
Gopalakurup,
Chairman,
other Board of Directors of
and
Kerala
Cooperative Milk Marketing Federation Ltd. (KCMMF) for initiating the
Benchmark Survey for the ‘National Programme for Bovine Breeding and
Dairy Development,’ a centrally sponsored scheme. I am also indebted to
Sri.
K.N. Surendran Nair, Chairman, Sri. K.T. Thomas, Managing Director and other
Board of Directors of Malabar Regional Cooperative Milk Producers Union Ltd.
(MRCMPU) for commissioning the study in Malabar and for their confidence in
entrusting the study with me. During the course of study, I received
considerable support and assistance from several officers and employees of
KCMMF and MRCMPU who were kind enough to spend their time to share
their valuable experience and in providing the required information. They are
too many to be mentioned here. My sincere thanks to all of them especially to
Sri. Jimmy Abraham, General Manager (P&P) and Sri. K.G. Satheesh, Senior
Manager (Mktg & HR) from KCMMF and
(PP) from MRCMPU.
Sri. Babu Varghese, Manager
My thanks are also due to Sri. G. Selvakumar, Sr.
Manager (P&I) and Sri. P.A. Ramesan, Manager (Mktg) for helping me in
carrying out
the household survey in six districts of Malabar. My sincere
thanks to all the respondents of household survey who were kind enough to
spend their valuable time to provide the required information. My sincere
gratitude is also due to Sri. N.P. Roopesh, Technical Officer, Head Office,
MRCMPU for helping me with the data management and for assisting me in
writing up the report.
Thanking all once again,
Thiruvananthapuram
Dr Unnithan N.R.
June 2014
Acronyms
AHD/DAH
AMCU
APCOS
BMC
CFU
CMP
DCS
DDD
EMT
FRMS
FSMS
FSSA
GOI
GOK
HACCP
KCMMF
Kg
LPD
LLPD
LR
LSG
MBRT
MCP
Milma
MoAH&D
MRCMPU
MRDF
MT
NA
NDDB
P&I
PFA
PUF
QA
QC
Consultant (Dairy & Livestock)
Former MD, KLD Board
Animal Husbandry Department
Automatic Milk Collection Unit
Anand Pattern Cooperative Society
Bulk Milk Cooler
Colony Forming Units
Clean Milk Production
Dairy Cooperative Society
Department of Dairy Development
Electronic Milk Tester
Fund Release Monitoring System
Food Safety Management System
Food Security and Standards Act
Govt of India
Govt of Kerala
Hazard Analysis and Critical Control Procedure
Kerala Cooperative Milk Marketing Federation
Kilogram
Liter Per Day
Lakh Liter per Day
Lactometer Reading
Local Self Government
Methylene Blue Reduction Time
Milk Chilling Plant
Kerala Cooperative Milk Marketing Federation
Ministry of Animal Husbandry and Dairying
Malabar Regional Cooperative Milk Producers Union
Malabar Rural Development Foundation
Metric Ton
Not Available
National Dairy Development Board
Procurement and Input
Prevention of Food Adulteration
Poly Urethane Foam
Quality Assurance
Quality Control
QCA
RC
RKVY
RSVY
SC
SCC
SIQCMP
SNF
SPC
ST
TMC
TCS
TOR
Quality as Competitive Advantage
Reconstitution
Rashtriya Krishi Vikas Yojana
Rastriya Swayam Vikas Yojana
Scheduled Caste
Somatic Cell Count
Strengthening Infrastructure for Quality and Clean Milk
Production
Solid Non Fat
Standard Plate Count
Scheduled Tribe
Technical Management Committee
Traditional Cooperative Society
Terms of Reference
CONTENTS
No.
Topic
Page
No.
1
Introduction
2
Palakkad District
11
3
Malappuram District
57
4
Kozhikode District
99
5
Wayanad District
141
6
Kannur District
186
7
Kasaragod District
227
1
Annex.
Information and Communication System NPDD
1
List of Tables
Table
No.
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
2.11
2.12
2.13
2.14
2.15
2.16
2.17
2.18
2.19
2.20
2.21
2.22
2.23
2.24
3.1
3.2
3.3
3.4
3.5
3.6
Table
Chilling Facility in Palakkad District during March 2014
Amount Spent and Infrastructure Created under CSS in
Palakkad Dairy
Processing Equipments and Machineries in Palakkad Dairy
Infrastructure for Ghee Production Palakkad Dairy
Additional Facilities Suggested for Palakkad Dairy under
NPDD
Milk and Milk Products Sale Palakkad District
Market Size for Milk and Market Share in Palakkad District
2013-14
Marketing Facilities Available under MRCMPU in Palakkad
District March 2014
List of Activities and Equipments Suggested for Market
Development in Palakkad District 2014-15 to 2016-17
Profile of DCS in Palakkad District 2013-14
Palakkad District Av. Milk Quality 2013-14
Components Suggested under NPDD for Strengthening the
Milk Procurement in Palakkad District 2014-15 to 2016-17
Farm Equipments Supplied to Farmers in Palakkad District
Cattle Sheds and Farm Machineries Suggested under NPDD
Palakkad District
Cattle Induction Program Proposed for Palakkad District
Equipments and Facilities Suggested for Quality Control Lab
Palakkad Dairy under NPDD (2014-17)
Assistance under SIQCMP in Palakkad District
CMP Kits Suggested under NPDD in Palakkad District (201417)
Technical Input Services Components and Achievements
Palakkad District
Technical Input Services for Palakkad District
Information and Communication Technology NetworkingPalakkad District
Farmers and DCS Employees Trained under IDDP/SIQCMP in
Palakkad District during the Last Five Years
Training Suggested under NPDD 2014-15 to 2016-17
The Amount Required to Pay Milk Value for 21 Days in
Palakkad District
Chilling Facility in Malappuram 2013-14
Existing Equipments in Nilambur Milk Chilling Plant
Equipments Suggested under NPDD for Milk Processing in
Malappuram District
Milk and Milk Products Sold in Malappuram District
Supply Demand Position in Malappuram District 2014
Existing Marketing Facility Malappuram District 2013-14
Page
No.
21
24
24
27
28
30
31
32
34
40
42
43
46
46
47
48
48
49
50
50
52
53
54
56
67
69
70
72
73
74
Introduction
3.7
3.8
3.9
3.10
3.11
3.12
3.13
3.14
3.15
3.16
3.17
3.18
3.19
3.20
3.21
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
4.14
Marketing Infrastructure Proposed for Malappuram District
under NPDD Programme
Profile of DCS in Malappuram District March 2014
Average Quality of Milk in Malappuram, 2013-14
Suggested Support for Milk Procurement under NPDD
Malappuram District
Farm Equipments Supplied from MRCMPU and MRDF to
Farmers in Malappuram District
Cattle Shed and Farm Machineries Proposed under NPDD for
Malappuram District
Cattle induction Program Proposed in Malappuram District
Establishment of Laboratories under NPDD in Malappuram
CMP Kits Supplied under SIQCMP Scheme in Malappuram
District
CMP Kits and Milking Machines Suggested under NPDD for
Malappuram District
Technical Input Services Suggested in Malappuram District
under NPDD
Information and Communication Technology NetworkingMalappuram District
Employees and Elected Members Trained from
Malappuram District
Proposed Training Program under NPDD
Malappuram District
The Milk value due for 21 Days in Malappuram District to
Farmers
Milk Chilling Facility in Kozhikode District 2013-14
Quality Comparison of BMC and Dock Collected Milk
Kozhikode Dairy Existing Facilities and Equipments
Equipments Suggested for Kozhikode Dairy
Progress of Milk and Milk Products sale in Kozhikode District
Existing Marketing Infrastructure Kozhikode District March
2014
Estimation of Market Size and Market Share of Milma in
Kozhikode District 2014
Additional Marketing Infrastructure Suggested for Kozhikode
District
Profile of DCS Kozhikode District 2013-14
Kozhikode District Milk Quality (average) 2013-14
Milk Procurement Activities Suggested under NPDD
Kozhikode District
Farm Equipments Supplied to Farmers in Kozhikode District
Cattle Sheds and Farm Machineries Suggested under NPDD
for Kozhikode District
Cattle Induction Program Suggested under NPDD Kozhikode
District
74
81
82
84
86
87
88
89
91
92
93
94
95
97
98
108
108
111
112
114
115
115
117
122
124
126
128
129
130
6
Introduction
4.15
4.16
4.17
4.18
4.19
4.20
4.21
4.22
4.23
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
5.10
5.11
5.12
5.13
5.14
5.15
5.16
5.17
5.18
5.19
Establishment of Laboratories in Kozhikode District under
NPDD
CMP Kits Supplied under SIQCMP Scheme in Kozhikode
District
CMP Kits and Milking Machines Suggested for Kozhikode
District under NPDD
Technical Input Services Achievements in Kozhikode District
under Earlier Schemes
Technical Input Services Suggested in Kozhikode District
under NPDD
Information and Communication Technology NetworkingKozhikode District
Employees and Elected Members Trained from
Kozhikode District
Proposed Training Program under NPDD – Kozhikode District
Amount Required to Pay Milk Value for 21 Days in
Kozhikode District
Milk Chilling Facility in Wayanad District March 2014
Details of Investments in Wayanad Dairy after Commissioning
Milk and Milk Products Manufactured in Wayanad Dairy
during 2013-14
Wayanad Dairy Existing Facilities and Equipments
Additional Equipments Suggested for Wayanad Dairy under
NPDD (2014-17)
Milk Marketing Activities Carried Out in Wayanad District
under CSS
Milk and Milk Products Sold from Wayanad Dairy
Calculated Market Share in Wayanad District 2013-14
Existing Market Promotion Amenities in Wayanad
as on 31-3-2014
The Suggested Infrastructure under NPDD for Marketing in
Wayanad District
The Profile of DCSs in Wayanad District
Quality of Milk Collected from Farmers
in Wayanad District 2013-14
Support for Milk Procurement Suggested for Wayanad District
under NPDD
Farm Equipments Supplied to the Farmers in Wayanad
District
Cattle Sheds and Farm Machineries Suggested under NPDD
for Wayanad District
Cattle Induction Program Suggested in Wayanad District
Establishment of Laboratories in Wayanad District
CMP Kits Supplied under SIQCMP Scheme in Wayanad
District
CMP Kits and Milking Machines Suggested for
Wayanad District under NPDD
131
133
133
134
135
137
137
139
140
149
150
150
151
153
154
155
157
158
161
167
168
170
172
174
175
176
177
177
7
Introduction
5.20
5.21
5.22
5.23
5.24
5.25
5.26
6.1
6.2
6.3
6.4
6.5
6.6
6.7
6.8
6.9
6.10
6.11
6.12
6.13
6.14
6.15
6.16
6.17
6.18
6.19
6.20
6.21
6.22
6.23
7.1
7.2
Technical Input Services Components and Achievements in
Wayanad District
Wayanad District Technical Input Services
Suggested under NPDD
Information and Communication Technology Networking
Wayanad District
Employees and the Elected Members Trained in Wayanad
District
Proposed Training Program under NPDD – Wayanad District
Value of Milk Procured in 21 Days from Wayanad District
Working Capital Required in Wayanad District 2014-15 to
2016-17
Milk Chilling Facility in Kannur District 2013-14
Kannur Dairy: Existing Facilities and Equipments
Equipments and Machineries Proposed for Kannur Dairy
under NPDD (2014-2017)
Milk and Milk Products Sold in Kannur District
Estimation of Market Size for Milk Kannur District 2014
Status of Marketing Infrastructure in Kannur District
March 2014
The Suggested Infrastructure under Marketing in Kannur
District
Profile of DCSs in Kannur District 2013-14
Kannur District Av. Milk Quality 2013-14
Suggested Milk Procurement Activities in Kannur District
Farm Equipments Supplied to Farmers in Kannur District
Cattle Sheds and Farm Machineries Proposed under NPDD for
Kannur District
Cattle Induction Program Suggested under NPDD for
Kannur District
Establishment of Laboratories under NPDD in Kannur District
CMP Kits Supplied under SIQCMP Scheme in Kannur District
CMP Kits and Milking Machines suggested under NPDD for
Kannur District
Technical Input Services: Components and Achievements in
Kannur District
Technical Input Services Proposed in Kannur District under
NPDD
Information and Communication Technology NetworkingKannur District
Employees and Elected Members Trained in Kannur District
NPDD HR Kannur District 2014-15 to 2016-17
Milk Collected from Kannur District, Milk Value for 21 Days
Working Capital Requirement for Kannur District
Status of Milk Chilling Facility Kasaragod District, 2013-14
Amount Spent and Infrastructure Created under CSS in
Kasaragod Dairy
178
179
181
182
184
184
185
195
196
198
200
201
202
205
210
211
213
216
217
217
218
219
220
220
221
222
223
225
226
226
235
237
8
Introduction
7.3
7.4
7.5
7.6
7.7
7.8
7.9
7.10
7.11
7.12
7.13
7.14
7.15
7.16
7.17
7.18
7.19
7.20
7.21
7.22
7.23
7.24
Processing and Allied Equipments and Machineries Installed
in Kasaragod Dairy
Equipments and Machineries Suggested for Kasaragod
District under NPDD
Progress in Sale of Milk and Milk Products in Kasaragod,
2013-14
Estimated Market Size of Milk in Kasaragod District, 2014
Existing Milk Marketing Facilities in Kasaragod, 2013-14
Marketing Infrastructure Suggested for Kasaragod District
Profile of DCS in Kasaragod District March 2014
Kasaragod District Av. Milk Quality 2013-14
Kasaragod District Suggested Milk Procurement Facilities
under NPDD 2014-17
Farm Equipments Supplied to Farmers in Kasaragod District
Kasaragod District Cattle Shed and Farm Machineries
Suggested under NPDD 2013-17
Cattle Induction Program Suggested in Kasaragod District
under NPDD 2014-2017
Kasaragod Dairy Laboratory Facilities Requested under NPDD
2014-17
CMP Kits Supplied under SIQCMP Scheme in Kasaragod
District
CMP Kits and Milking Machines Suggested for Kasaragod
District under NPDD
Technical Input Services Components and Achievements
Kasaragod District
Technical Input Services for Kasaragod District
Information and Communication Technology NetworkingKasaragod
Training of Employees and Elected Members in Kasaragod
District
Manpower Development Kasaragod District Suggested
Programs under NPDD 2014-15 to 2016-17
Actual and Calculated Milk Value for 21 Days in Kasaragod
District
Working Capital Requirement for Three Years from 2014-15
for Kasaragod District
238
240
243
244
245
248
253
254
256
259
260
260
261
263
263
264
264
266
267
269
270
271
9
Introduction
1. NATIONAL PROGRAMME FOR BOVINE BREEDING
AND DAIRY DEVELOPMENT (NPBBDD)
Contents
1.1 The Programme
2
1.2 Objectives
3
1.3 Funding Pattern
3
1.4 Funding Limit
4
1.5 Implementing Agencies
4
1.6 Project Preparation and Submission
5
1.7 Benchmark Study
5
1.8 Organization of the Report
10
10
Introduction
1.1 The Programme
during the 12th Five Year Plan. It
The Centrally Sponsored Scheme
has two components, (a) National
‘National Programme for Bovine
Programme for Bovine Breeding
Breeding and Dairy Development’
(NPBB),
(NPBBD)
implemented
Programme for Dairy Development
nationwide by the Government of
(NPDD). NPBB will focus amongst
India. The current phase of the
other things on extension of the
programme is from 2014-15 to
Field Artificial Insemination (Al)
2016-17
Network,
is
being
and
is
likely
to
be
and
(b)
National
monitoring
of
continued in subsequent Plans.
programme,
The NPBBDD has been formulated
conservation of indigenous breeds
by merging four ongoing schemes
and
of the Department of AHD Dairying
associations
and
encourage
Fisheries.
These
are
the
development
Al
establishment
and
of
and
breeders'
societies
conservation
to
and
National Project for Cattle and
development of recognized native
Buffalo
breeds of cattle and buffalo.
Intensive
Breeding
Dairy
(NPCBB),
Development
Programme (IDDP), Strengthening
Infrastructure
for
Quality
and
Clean Milk Production (SIQ and
CMP)
and
assistance
to
cooperatives. This has been done
to integrate milk production and
The NPDD component of NPBBDD
scheme
has
been
designed
to
develop infrastructure from the
grass
root
level
by
providing
financial and technical assistance
for dairy development. NPDD will
dairying activities in a scientific
focus on creating infrastructure
and holistic manner for attaining
related to production, procurement,
higher levels of milk production
processing and marketing of milk
and
the
by milk unions/federations and
increasing demand for milk in the
also extension activities including
country.
training of farmers. The major
productivity,
to
meet
objectives
The scheme will be implemented
with an allocation of Rs 1800 crore
of
NPDD
can
be
summarized as follows.
11
Introduction
1. Milk
1.2 Objectives
1. Create
and
strengthen
infrastructure for production
chilling
Village,
Block
2. Civil works.
chain infrastructure linking
3. Equipment
farmers
to
the
2. Create
and
strengthen
infrastructure for procurement,
for
Bulk
Processing
milk.
7. Cattle Induction.
for
Testing Laboratories.
4. Strengthen dairy cooperatives/
companies
in
villages.
9. Clean Milk Production Kits.
10. Technical Input Services.
11. Information
5. Increase milk production by
providing
Technical
Services
like
cattle
Input
feed,
minerals and so on.
6. Assist
8. Construction/Establishment
of Milk and Milk Product
training of dairy farmers.
Producers’
and
5. Milk Procurement.
6. Cattle Shed.
infrastructure
viable
and
Communication Technology.
12. Manpower
and
Skill
Development.
13. Working Capital for DCS and
rehabilitation
potentially
Milk
Marketing.
processing and marketing of
3. Create
District
Coolers and Chilling Centers.
4. Milk
consumers.
and
at
levels.
of quality milk including cold
the
facilities
of
Milk
Federations/ Milk Unions.
Milk Union.
14. Rehabilitation
of
Defunct/
Sick.
15. Planning and Monitoring.
1.3 Funding Pattern
The major components that will
16. Centralized MIS Facility for
DADF.
be funded under the NPDD are:
In districts where the National
Dairy Plan (NDP) is in operation,
12
Introduction
the NPDD will support only those
components
components that are not included
district. However, in the case of
in the former.
Milk
The pattern of funding for all
components under NPDD will be
100 per cent grant-in-aid except
for:
put
Unions
together
and
in
a
Federations
operating in more than one district
the
funds
can
be
pooled
for
creating centralized facilities like
Milk Powder Plant, Central lab and
so on. However, the maximum
a. Installation of BMC;
assistance will be limited to Rs
b. Milk processing plants;
25.0 crore for processing capacity
c. Milk powder plants; and
d. Rehabilitation of milk unions
and federations
one LLPD and more, Rs 15.0 crore
for
processing
capacity
up
to
50,000 LPD and Rs 10.0 crore for
In the case of components a, b and
processing capacity up to 20,000
c above, the funds will be limited
LPD.
to 50 per cent of approved cost (90
per cent for North Eastern states
1.5 Implementing Agencies
and
The State Implementing Agency
hilly
districts)
in
NDP
implemented states. In non NDP
(SIA)
states the assistance will be 75 per
Federation for states like Kerala
cent
for
profit
making
Unions
(profit of Rs 1 crore and above) and
90 per cent if the profit is less than
Rs
1
crore.
component
In
(d)
the
the
case
of
maximum
assistance will only be 50 per cent
of the project cost.
central
assistance
be
17
the
other
State
states
Dairy
(see
administrative approval for specific
states) and Milk Unions in other
cases.
The
End
Implementing
Agencies EIAs are the District Milk
Unions,
New
Generation
Milk
Producer Companies and District
Rural
1.4 Funding Limit
The
and
will
Development
Authority
where District Milk Unions do not
will
be
limited to Rs 15.0 crore for all
exist.
The
other
agencies
like
Universities, Colleges and ICAR
13
Introduction
institutions
are
classified
as
Participating Agencies and eligible
for financial support (PIAs) if they
current study. With the following
Terms of Reference (TOR):
1. The
Bench
Mark
of
Milk
are associated or affiliated to SIAs
production, Milk Procurement,
or EIAs.
Technical
Input
Services
(including
Cattle
breeding,
1.6 Project Preparation and
Fodder
development,
Transport of cattle feed and
Submission
A single comprehensive proposal
Fodder, Health care, Clean
covering the requirements of all
milk production Inputs, Other
EIAs in the state shall be prepared
Extensions
by the SIA and submitted for
Milk
consideration
Marketing,
of
the
GOI.
The
proposal shall be prepared on the
basis of a Baseline Survey to be
carried out by an independent
agency.
Activities
Processing
etc.),
and
Milk
Manpower
development
(Cooperative
Development,
Training
of
Farmers/Officials of DCS and
Milk
Union)
and
Working
capital position of MRCMPU
during the year 2013-14.
1.7 Benchmark Study
The guidelines on NPDD mandate
2. The Bench Mark
on Milk
a situation analysis. The situation
Production
and
Milk
analysis
Procurement
should
also
shall include, a) Pre-
project Baseline survey
by an
independent agency, b)
funding
include number of functional
dairy
cooperative
societies,
under earlier programs, c) role and
milk suppliers, and average
capabilities of different players,
daily milk procurement per
and d) and areas of operation.
dairy co-operative society and
Accordingly, the Malabar Regional
for MRCMPU for the year
Cooperative Milk Producers Union
2013-14.
Ltd. (MRCMPU) commissioned the
3. Bench
Mark
assessment
the
quality
procedures
in
14
Introduction
Dairy
cooperative
societies
discussions, FGD and direct
and assess the current values
observation
of FAT, SNF and MBRT at the
Consultant.
DCS and Dairy levels.
4. Suggest
key
8. Current
by
status,
the
adequacy/
components
inadequacy with reasons in
under Milk Processing and
each component (current and
Marketing, Milk Procurement,
EOP) and the suggestions for
Technical Inputs, Manpower
inclusion under NPDD shall
Development
be highlighted.
and
Working
capital in the NPDD Project
for
MRCMPU
with
justification for the same.
5. Report
and
validate
the
9. All the Bench Mark values/
data
shall
be
district-wise
and
provided
at
Union
level for the year 2013-14.
Annexure from I to VII and
provide data for Annexure VIII
1.7.1 Study Team
to X. which is given along
A single man study team of Dr. N.
with this order.
Ramachandran Unnithan (Dr N.R.
6. The secondary data can be
gathered on each component
from the available/published
sources including the reports,
records
and
MIS
of
Milk
Unions under the KCMMF.
7. Primary data can be collected
from
randomly
selected
sources like DCS, farmers,
sales outlets, distributors and
other agencies and from all
Processing Dairies under the
Unions through surveys, in
depth
interviews
and
Unnithan),
Director
former
of
undertaken
Managing
KLD
Board
has
the
study.
Dr
Unnithan graduated from Kerala
University in 1968 (BVSc) and is a
Master of Science (Animal Genetics
and Breeding) from the prestigious
Institute of Animal Genetics and
Breeding, University of Edinburgh,
UK. He has more than forty three
years of experience in livestock
production. Core skills are in the
design,
development
and
management of cattle farms and
large scale Artificial Insemination
15
Introduction
(AI)
programs,
impact
evaluation
studies
and
and
2010-11,’ ‘Bench Mark – Centrally
applied
Sponsored Scheme Strengthening
research.
Dr
Infrastructure
Unnithan
has
executed
a
number of evaluation studies and
field research. Recently concluded
study (2010) on ‘Cost of Production
of Milk in Kerala’ is a landmark
study on the economics of milk
production and marketing in the
State. He spearheaded two major
national studies – ‘Evaluation of
Central
Fodder
Organization’
Development
and ‘Strengthening
Infrastructure for Quality and Clean
Milk Production.’
Among the
several other studies conducted by
him, the ‘Benchmark Survey for
Centrally Sponsored Scheme IDDP
–
Idukki
District’
2011,
‘Benchmark Survey for Centrally
Sponsored
Scheme
IDDP
–
Palakkad, Malappuram, Kozhikode,
Wayanad, Kannur and Kasaragod
Districts’ 2011, ‘Benchmark Study,
Pathanamthitta District Centrally
Sponsored Scheme IDDP 2010-11,’
‘Bench Mark Survey, Ernakulam,
Kottayam and Thrissur Districts –
Centrally
Sponsored
Strengthening
Scheme
Infrastructure
for
Quality and Clean Milk Production
Clean
for
Milk
Quality
Production
Thiruvananthapuram,
Alappuzha
and
and
–
Kollam,
Pathanamthitta
Districts 2011 -12,’ ‘Baseline Study
on Establishment of a Dairy Plant
in Malappuram District – 2012,’
‘Baseline Study on Malabar Rural
Development Foundation – 2012,’
‘Bench
Mark
Study
on
Special
Package for Mitigation of Agrarian
Distress
of
Farmers
in
Idukki
District’ are some of them. The
‘Evaluation Study on Intensive
Dairy
Development
(IDDP)
2013’
Program
implemented
by
MRCMPU and ‘Evaluation Study
on Strengthening Infrastructure
for
Quality
and
Clean
Milk
Production (CMP) 2013’ are the
recent
ones.
He
has
also
functioned as Chairman Research
Advisory
Council,
Directorate
on
Meerut,
UP
Working
Project
Cattle,
and
Group
ICAR,
member
on
of
Animal
Husbandry & Dairying – National
Dairy Plan, 12th FYP, National
Planning
Unnithan’s
Commission.
vast
Dr
experience
16
Introduction
spanning over forty three years in
feed and fodder, milk price, CMP
livestock
production
the
procedures and so on). The same
insights
gained
through
DCS were studied for gathering
monitoring
and
and
evaluations
of
information on milk procurement
dairy development programs have
procedures
and
enriched
administration.
Structured
the
outcome
of
this
study.
pre-tested
quality
questionnaire
and
were
administered to elicit information
1.7.2 Study Method
at
The study has been accomplished
Union/DCS) besides Focus Group
through a combination of different
Discussion
methods and tools. In order to
interviews of farmers in villages.
identify the areas uncovered under
The
milk procurement and to study the
analyzed
potential for milk collection a list
judgments and draw conclusions.
of
The details of sample size are
such
wards
villages
Panchayats/Panchayat
were
prepared
and
and
households
two
To gather data from the existing
district were stratified into three
categories – BMC DCS (having inhouse
BMC),
(supplying
milk
Cluster
to
BMC)
DCS
and
Direct DCS (supplying in Dairy). At
least one DCS from each stratum
and 15 farmers from each DCS
was interviewed at random for
chosen
production,
parameters
milk
(milk
procurement,
and
generated
to
(Milk
personal
has
make
been
informed
Table 1.1 Sample DCS and
households - Milk Production and
Disposal Survey
DCS area random sampling model
has been adopted. All DCS in the
data
levels
presented in table 1.
were
selected at random and surveyed.
different
Sl.
No.
1
2
3
4
5
6
DCS Households
Studied Surveyed
Palakkad
6
305
Malappuram
3
300
Kozhikode
4
300
Wayanad
3
299
Kannur
6
300
Kasaragod
6
300
Total
28
1804
District
In addition to the milk production
survey an independent consumer
survey has been carried out to
understand milk consumption in
17
Introduction
all the six districts. The district
collected from several sources -
has been stratified in to costal,
available/
midland and high land and further
including the reports, records and
sub stratified as urban and rural
MIS of Milk Union, reports from
based on the revenue classification
ISS of AHD, and Economic Review
(Municipality
published by the State Planning
as
urban
and
published
sources
Panchayat as rural). At least one
Board,
village each has been randomly
Also, directed questionnaire were
selected from among the urban
developed to gather information on
and rural villages and fifty house
qualitative
dimensions
holds studied to understand the
collection
procedure,
milk and milk powder consumed.
testing,
The sample size for the consumer
quality of input delivery system,
study can be found from table 1.2.
etc.
The data has been analyzed and
studied to under stand the milk
production and disposal pattern
in
villages,
and
household
consumption of milk in rural and
urban areas. The secondary data
on
each
component
has
been
Government
milk
of
price
Personal
Kerala.
–
milk
quality
payment,
interviews
and
discussion with field staff, staff
members of DCS, executives of the
Milk
Union
yielded
enormous
volume of information on systems
and procedures followed in the
Field as well as in the Dairy. The
market information was gathered
through interviewing retail dealers
Table 1.2 Sample DCS and Households - Milk Consumption Survey
Sl.
No.
District
Rural
Urban
Total
Villages
2
Houses
100
Villages
4
Houses
200
Villages
6
Houses
300
1
Palakkad
2
Malappuram
2
100
4
200
6
300
3
Kozhikode
3
148
3
150
6
298
4
Wayanad
5
250
1
55
6
305
5
Kannur
3
150
3
150
6
300
6
Kasaragod
4
200
2
100
6
300
19
948
17
855
36
1803
Total
18
Introduction
and customers. The information
overview
gained
suggested.
from
consumption
the
market
survey
has
and
of
the
programs
been
extrapolated to deduce the market
size, market share and supply
demand position.
The
primary
and
data
collected
with
officials/farmers/consumers
and
secondary
interactions
formed the basis for developing
this report.
1.8 Organization of the Report
The report is organized in seven
Chapters. The first chapter deals
on the contents of NPDD, the
context of the study and method.
The chapters two to seven deals on
milk
processing,
procurement,
farm
cattle
marketing,
sheds
mechanization,
and
cattle
induction, milk testing lab, facility
for
clean
milk
production
in
villages, technical input services,
application
technology
of
in
dairy
information
business,
training and working capital for
Milk Union in each district. The
chapters are district wise and an
executive
summary
beginning
provides
in
a
the
quick
19
2. PALAKKAD DISTRICT
Contents
Executive Summary ..........................................................................13
2.1 General Features .........................................................................17
2.2 Trend in Cattle Population ...........................................................19
2.3 Trend in Milk Production .............................................................19
2.4 Milk Chilling ...............................................................................20
2.5 Milk Processing ...........................................................................21
2.6 Milk Marketing ............................................................................29
2.7 Milk Procurement ........................................................................38
2.8 Cattle Shed and Farm Machineries ..............................................45
2.9 Cattle Induction ..........................................................................47
2.10 Establishment of Laboratories ...................................................47
2.11 Clean Milk Production ...............................................................48
2.12 Technical Input Services (TIS) ....................................................49
2.13 Information and Communication Technology Networking ..........51
2.14 Manpower Development.............................................................52
2.15 Working Capital – Palakkad District ..........................................55
Introduction
Palakkad District
Palakkad
District
12
Introduction
Executive Summary
The Palakkad district is one of the
dairy.
Also
the
product
frontline dairy districts in Kerala.
manufacturing
line
requires
Livestock farming is germane to
certain additions on account of the
the vast majority of the farmers in
export regulations. In addition, the
the district. The official statistics,
dairy
however,
equipments, some as standby and
sector,
show
both
that
in
the
cattle
numbers
and
requires
some
as
certain
critical
replacement.
The
output, suffered setbacks since
suggested
late nineties. The cattle numbers
replacements are estimated to cost
declined by 44 per cent from 1996
Rs 126.00 lakh.
to 2012. On the contrary the inmilk cows by increased by 44 per
cent
during
the
same
period.
Concurrent with the increase of
cows in milk, the annual milk
production has shown an increase
from 242 thousand MT (2001-02)
to 384 MT (2012-13).
additions
and
The market survey shows that the
supply-demand gap of milk in
Palakkad district is 80,600 LPD.
The market share of MRCMPU in
the
liquid
milk
segment
in
Palakkad district is 47 per cent,
the highest among all the districts
in Malabar. The Milk Union is
The MRCMPU has a processing
facing fierce competition from the
dairy at Palakkad. The installed
competitors, mainly from outside
capacity of the dairy is 1.0 LLPD.
state and also from within the
During
2013-14,
processed
LLPD,
79
on
per
an
the
dairy
district to a smaller level. But the
average
1.79
market analysis reveals that this is
cent
above
the
not
a
restricting
factor
to
installed capacity. At the peak
command a better market share.
procurement level during the year,
The
the dairy’s capacity utilization was
infrastructure
200
is
reasons for the low market share.
the
The dairy’s business plan may also
processing capacity of Palakkad
require some revision. Hence an
per
urgency
cent.
in
Hence
there
expanding
inadequate
is
one
market
of
the
13
Palakkad District
aggressive
marketing
supported
strategy
by
adequate
infrastructure is required.
To
milk production
and support for
cattle feed transport. The support
suggested
for
procurement
begin with, new milk parlors and
activities in Palakkad district is
Shoppe are suggested to be opened
expected to cost Rs 500.35 lakh.
in prominent public places. Wide
publicity through print and visual
media is also suggested. Periodic
market
surveys
and
R&D
on
consumer likes and preferences
(example
attractive
packing
for
flavored milk, ice cream, peda,
etc.)
are
also
estimated
suggested.
cost
on
The
market
promotion works out to Rs 382.20
lakh.
The MRCMPU has built up an
extensive net work of DCSs and
BMCs for milk procurement from
farmers.
All
reasonably
the
good
DCSs
milk
have
testing
facilities. All the BMC DCSs have
facility for MBRT estimation. The
field level milk testing, however,
requires further refinement. The
The lack of good cattle sheds and
farm machineries are identified as
the major constraints in dairy
production in Palakkad district.
Financial
support
strengthening
of
for
old
cattle
sheds/construction of new ones
and supply of farm machineries
and equipments are proposed at a
total cost of Rs 82.50 lakh.
In order to promote cattle keeping
among the below poverty line (BPL)
and the SC/ ST families, a cattle
induction program is suggested in
Palakkad district. The NABARD
norms
shall
be
followed
for
administering the subsidies. The
overall support for 240 animals is
estimated to be Rs 92.55 lakh.
major constraints identified in the
It is suggested to establish a
expansion of milk procurement
central
and clean milk production are lack
Kozhikode dairy by pooling the
of convenient buildings for DCSs,
funds from all the districts. This
absence
will
of
good
quality
water
supply facilities with some DCSs
milk
eliminate
testing
the
lab
need
at
for
replication of the same facilities
and lack of incentives for clean
14
Palakkad District
and expenses in all the districts.
Wayanad, Kannur, Kasaragod) and
Some additional equipments and
a central server system linking all
furniture
these six centers.
are
also
required
Palakkad dairy lab.
in
The data and
All these
information will be made available
together are estimated to cost Rs
to all the districts and DCSs. The
32.00 lakh.
estimated
The
other
farmer
programs
beneficiary
suggested
distribution
of
are
stainless
steel
cost
of
these
in
Palakkad district is Rs 149.35
lakh.
The HRD through training and
utensils, milking machines, etc. at
skill
a cost of Rs 17.49 lakh.
activity of MRCMPU in Palakkad
The
technical
include
input
services
for
animal
support
breeding, animal health care and
prophylaxis, fodder
development
and other associated activities for
the benefit of participating farmer
development
district.
Several
is
a
routine
programs
were
running for the past few years. It is
suggested to scale up some of
these
programs.
The
suggested
programs would cost Rs 57.45
lakh.
members. The activities suggested
The business plan of MRCMPU
except those being attended by the
suggests substantial increase in
line
milk
departments
will
cost
Rs
48.20 lakh.
Palakkad
The Palakkad district needs to
network with the various units and
the
DCSs
under
MRCMPU
for
effective information sharing and
communication.
system
is
architecture
centers,
procurement
one
The
a
client
network
in
suggested
server
with
each
six
district
(Palakkad, Malappuram, Kozhikode,
and
sale
in
district. The milk
prices are to be paid to the farmers
regularly which alone cost Rs 1261
lakh or more every 21 days.
In
addition, keeping a buffer stock of
raw and finished goods is essential
to
safeguard
an
uninterrupted
business. This, as also several
other requirements force the Milk
Union to borrow money from the
open market which causes extra
15
Palakkad District
burden to the Union and the
The
suggested
programs
for
farmers. Hence it is suggested that
Palakkad shall be summed up as
an amount of Rs 110 lakh shall
follows.
be paid to the milk Union as a
one-time assistance for Working
Capital.
Component
Amount
(Rs in Lakh)
Milk processing and packaging
126.00
Milk marketing
382.20
Milk procurement
500.35
Cattle sheds and farm machineries
82.50
Cattle induction
92.55
Central testing laboratory
32.00
CMP kits and milking machines to farmers
17.49
Technical inputs services
48.20
Information and communication technology
Human resource development
Working capital
Total
149.35
57.45
110.00
1598.09
16
Palakkad District
2.1 General Features
holding size is 0.39 ha/household.
Palakkad district measuring 4480
The principal farming system is
sq.km. belongs to the Malabar
mixed crop livestock farming. The
region.
According to the 2011
district contributes to the bulk of
Census, the district population is
rice production (40 per cent of the
28.10 lakh and population density
State’s production) in the State.
627/sq.km. which is far below the
The much needed roughage, paddy
state
859/sq.km.
straw, for ruminant nutrition and
Palakkad is surrounded on the
milk production is a byproduct of
northwest by Malappuram district
paddy production. Like in the rest
on
of
average
the
district
of
southwest
and
on
by Thrissur
the
east
the
State,
dominant
bovine
species
of
is
the
livestock.
of Tamil
Nearly two decades ago the district
Nadu. The district is sub divided
had the highest draught animal
into 5 Taluks and 166 revenue
population
Villages.
LSG
draught animal population started
include one District Panchayat,
declining towards the later part of
thirteen
and
the last century and the cattle
ninety three Grama Panchayats.
composition changed in favor of
The climate is hot and humid, the
cross
hottest months being March to
production is extremely livelihood
June. The South West Monsoon
intensive to almost all sections of
from June to September provides
farming community, more so in
the bulk of the rain. The average
the case of marginal, sub marginal
recorded annual rainfall is 2111
and land less groups.
by Coimbatore
district
The
Block
three-tier
Panchayats
mm (Wikipedia).
Agriculture
is
in
bred
the
dairy
State.
cattle.
The
Milk
Livestock development and milk
the
predominant
marketing
in
in Palakkad. The vast majority of
institutions. The AHD is in charge
the farmers belong to the marginal
of the health care and breeding
group
services.
average
land
The
a
number
are
looked
the
by
district
income and employment provider
and
after
the
of
important
institutions under the Department
17
Palakkad District
include one district office, one
dairy and two milk chilling centers
District
4
apart from the two Procurement &
15
Input services Units – one each at
78
Palakkad and Pattambi – and one
Veterinary Dispensaries, 3 Mobile
straw based cattle feed unit. The
Farm
district houses the largest cattle
Veterinary
Veterinary
Poly
Veterinary
Clinics,
Hospitals,
Aid
Veterinary
Center,
Units,
one
Dispensary
Mobile
and
72
feed
plant
under
Milma
at
ICDP Sub Centers for AI in cattle.
Malampuzha, 8 km away from
The
Dairy
Palakkad
town.
The
Kerala
Development is in charge of the
Livestock
Development
Board
livestock extension services and
responsible for the frozen semen
administration
production
Department
of
of
milk
and
genetic
cooperatives. The Department has
improvement of dairy cattle in the
one
Dairy
state has one bull station, one
one
training center and one fodder
district
Extension
office,
Service
13
Centers,
quality control center and one
seed
Dairy
Palakkad district.
Training
Center.
The
testing
lab
at
Dhoni
in
MRCMPU has one milk processing
Fig 2.1 Trend in Cattle population Palakkad District
( source Cattle census Reports DAH GOK)
350000
300000
Nu mb ers
250000
200000
150000
100000
50000
0
1996
2000
2003
2007
2012
Total Cattle
303935 272981 263763 215095 169208
Cows in milk
82378
98034
84787
73986
118900
Buffalo in milk
10646
2198
1506
1379
5400
18
Palakkad District
2.2 Trends in Cattle
little known. However, the vertical
Population
drop in productive animals did not
Palakkad district has the highest
impact the milk production in the
number of cattle, 12 per cent of
district.
the total in the State. Cattle make
significant
contribution
to
the
rural economy in the district. The
2.3
Trends in Milk
Production
official statistics, however, shows
The annual milk production (cattle
that the cattle sector registered
and buffalo) increased from 2.43
severe setbacks both in numbers
lakh MT during 2001-02 to 3.84
and outputs during the last one
lakh MT during 2012-13 (See fig.
decade. The total cattle numbers
went
down
by
Surprisingly,
census
(2012)
44
the
per
latest
shows
cent.
cattle
that
the
proportion of cows in milk in the
total cattle has increased from 27
per cent to 70 per cent during the
period.
The
only
possible
explanation is that the there is
tremendous sex bias in favor of
dairy cows than bull/bullocks and
that the milk cows are purchased
and not home bred and reared
thereby eliminating the dry cows
2.2). The increase is phenomenal.
However,
the
spurt
in
milk
production from 2008-09 to 201213 (74%) in less than four years is
incredible.
The
only
possible
explanation is the vertical increase
in number of cows in milk. The
daily milk yield works out to 8.85
LPD per cow which indeed is
realistic.
The accuracy of ISS
production estimates is debatable.
However, in the absence of any
other reliable estimate, the annual
and young ones (See fig. 2.1).
milk production from bovines in
Buffalo in the district was on the
Palakkad District is taken as 3.84
verge of extinction, declined by 90
lakh MT and daily production as
per cent from 1996 to 2007 and
1083.04
showed a marginal gain thereafter.
question is does the spiraling milk
The reasons for the drastic fall in
production show a corresponding
cattle and buffalo numbers are
trend in milk procurement.
MT.
The
pertinent
19
Palakkad District
Fig 2.2 Trend in Bovine Milk Production Palakkad District
(source ISS,DAH Kerala)
384.36
450
400
220.75
207.67
205.23
250
216.19
242.49
Milk '000 MT
300
228.98
350
200
150
100
50
0
2001-02 2002-03 2003-04 2004-05 2005-06 2008-09 2012-13
2.4 Milk Chilling
ƒ
low risk
The milk chilling facilities are the
ƒ
better microbial quality
BMCs installed in DCS and the
ƒ
better
and
the
other
at
ƒ
ƒ
village
based
decentralized
chilling in BMCs is preferred over
the centralized chilling because:
ƒ
less expensive
no milk holidays on bandh
days
March 2014 is shown in table 2.1.
The
higher consumer preference
(flavor and taste)
Pattambi. The position of milk
chilling in Palakkad district until
product
manufacturing
two Milk chilling plants - one at
Attappadi
for
milk
Since
chilling
the
district
capacity
has
among
unused
BMCs
additional BMCs are not proposed
in Palakkad district during the
next two to three years.
20
Palakkad District
Table 2.1 Chilling Facility in Palakkad District during March 2014
Sl.
No.
1
Description
No. of BMCs commissioned up to March 2014
37
2
No. of DCS in which BMCs are positioned (BMC DCS)
33
3
No. of cluster DCS attached to BMCs
Total installed capacity of BMCs ltr. (TLPD)
5
Av. milk collected through BMC 2013-14 LPD
6
% capacity utilization
150
7
Av. MBRT of BMC collected milk (minutes)
8
Av. SPC of BMC collected milk CFU/ml (lakh)
36
9
Av. Coliforms of BMC collected milk CFU/ml
3
93000
62
185
2
No. of milk chilling plants
11
Installed capacity of MCP LPD
45000
12
Av. daily collection in MCPs LPD
46700
13
% capacity utilization
103
14
Av. MBRT from MCP collected milk
NA
15
Av. SPC of MCP collected milk
NA
16
Av. Coliforms of collected milk
NA
17
No. of DCS supplying milk to MCP Attappadi
NA
2.5 Milk Processing
The
Palakkad is one of the frontline
dairy districts in the State. The
district is not only self-sufficient in
production
surplus
but
especially
also
has
during
the
‘Flush Period’ (June to September).
Palakkad
Dairy
procures
milk
from
Palakkad district only while the
2.5.1 Current Status
The
82
4
10
milk
Quantity
Dairy
is
the
exclusive station to process the
milk procured from the district.
This dairy is located at Kalleppully,
5 km away from Palakkad town.
processed milk and milk products
are marketed in Palakkad as well
as in parts of Malappuram district.
The average daily procurement of
milk during 2013-14 was 1.79
LLPD of which nearly 78 per cent
is received as chilled milk (chilling
plants and BMC put together). The
remaining 22 per cent of nonchilled milk is chilled in the Dairy
and stored.
21
Palakkad District
2.5.2 Milk Processing Capacity
milk
procurement
in
other
districts, Kozhikode and Kannur,
and Capacity Utilization
The composite processing capacity
too peaks with little scope for
of Palakkad Dairy as decided by
transferring
the
Pasteurizer,
Therefore, the Palakkad Dairy is
and
Boiler
often compelled to make distress
comes to one LLPD. As against
sale or convert to SMP sustaining
this,
heavy loss.
capacity
Refrigeration
the
of
Plant
Dairy
processed
an
average 79 per cent above the
processing capacity.
the
surplus
milk.
The dairy development activities
from
government,
central,
milk is shown as fig. 2.3. As is
expected to further push up the
evident
milk
procurement
LPD
touched
exceeding
capacity
the
almost
the
100
figure,
two
lakh
handling
per
cent
during Flush period – June to
Milk
production
procurement
in
Union
and
The month-wise procurement of
from
and
state
and
the
is
milk
district.
Therefore, the procurement and
processing capacity of the dairy
calls for expansion.
August. During this period the
22
Palakkad District
Fig2.3 Month wise Mlk Procured
Palakkad Dairy 2013-14 (Source MRCMPU)
250000
Milk LPD
200000
150000
100000
50000
2.5.3 Milk
Processing
Ju
l
Au y
Se gus
t
pt
em
be
r
O
ct
ob
N
o v er
em
D
e c be r
em
be
r
Ja
nu
ar
Fe
y
br
ua
ry
M
ar
ch
A
pr
il
M
ay
Ju
ne
0
Infra-
been enhanced from 9000 LPD to
structure – Palakkad Dairy
the current level of one LLPD. This
As mentioned above the process
was made possible because of the
capacity of Palakkad Dairy has
financial support from GOI under
Process hall Palakkad Dairy
23
Palakkad District
Table 2.2 Amount Spent and Infrastructure Created under CSS in
Palakkad Dairy
Sl.
No.
1
Financial
(Rs in Lakh)
IDDP
CMP
Phase
Phase
I & II
I & II
40.8
Nil
Description
Civil structure
(RMRD, production
block, cold store, etc.)
Processing
equipments &
machineries added
2
82.88
Total
Nil
Physical Facility
Production block, general godown
Pasteurizer, Milk silos,
boiler, refrigeration
equipments, Homogeniser
ETP, etc.
123.68
the IDDP and SIQCMP schemes as
Palakkad Dairy are shown in table
well as the investment made by
2.2.
the MRCMPU from own resources.
The amount spent under the CSS
and
the
created
major
for
Milk
infrastructure
Processing
in
The
important
equipments
and
machineries available in Palakkad
Dairy are listed in table 2.3.
Table 2.3 Processing Equipments and Machineries in Palakkad Dairy
Sl.
No.
1
Milk Reception
1.1
Specification
Units
Can roller conveyor
600 cans/hr
1
1.2
Can washer
600 cans/hr
0
1.3
Dump tank
2 Kl
1
1.4
Can scrubber (SS 304)
500 L
2
1.5
Can steaming block
Processing/Storage Equipment
Single can
1
2
Name
2.1
Milk chillers
20 KLPH
1
2.2
Separator
10 KLPH
0
2.3
Tri-purpose centrifuge
10 KLPH
2
2.4
Milk pump
10 KLPH
4
2.5
Un-insulated milk tank
5 KLPH
1
2.6
Horizontal milk storage tank
15 KLPH
3
2.7
Vertical milk storage tank
10 KLPH
1
2.8
Vertical milk storage tank
15KLPH
24
Palakkad District
Sl.
No.
2.9
2.10
2.11
Milk silo
Pouch filling machine DHG
mechanical
Pouch filling machine auto SH
mechanical
2.14
2.15
2.12
2.13
2.16
3
Name
Specification
Units
CIP system- Double circuit
20 KLPH
1
Pasteurizer
10 KLPH
2
60 KL
2
5000 PPH
8
2500 PPH
1
Milk pumps
10000 LPH
4
Cold store conveyor
Date coding device for pouch filling
machines
Fat Handling
1200 cr/hr
1
60 IMP/Mnt
10
3.1
Sour milk separator
500 LPH
1
3.2
Cream storage tank
2000 LTS
3
3.3
Cream pump
5000 LPH
1
3.4
Ghee boiler
2000 LTS
2
3.5
Ghee settling tank
3000 LTS
3
3.6
Ghee storage tank
3000 LTS
3
3.7
Ghee pump
3000 LPH
1
3.8
Ghee clarifier
2000 LPH
1
3.9
Emulsifying tank
5000 LTS
Homogenizer
Service Equipment
10 KLPH
1
30 TR
3
90 KLPH
2
3.10
4
4.1
Refrigeration compressors
4.2
Chilled water pump
4.3
Chilled water agitator
5 HP
3
4.4
Air handling unit for cold storage/
deep freezer (make/model/cap)
Steam Raising Plant
3 TR
4
5.1
Boiler (oil/coal)
1 MT
1
5.2
Water softening plant
Compressed Air System
2 KLPH
1
Air compressors
Industrial Electrical
50 CFM
2
7.1
DG set
250 KVA
1
7.2
Transformer
Water Supply System
315 KVA
1
50 KL
1
5
6
6.1
7
8
8.1
Water storage tank
25
Palakkad District
The equipments and accessories in
conventional/standard
Palakkad are inadequate to carry
for
on the present level of operations.
infrastructure available are Curd
Some of them are also due for
Pasteurizer, Fill pack machine and
replacement owing to the usual
incubation facility. The Milk Union
wear and tear while some others
is
are to be scaled up considering the
expansion in the next three years
rising procurement and market
and hence minimum additional
demand.
facilities are requested.
Dairy
planning
production.
only
a
The
nominal
b. Ghee Production
2.5.4 Product Manufacturing
Palakkad
curd
procedure
manufactures
three products namely Curd, Ghee
and Sambharam (Butter Milk).
Palakkad has immense potential to
produce and market ghee. Ghee
market, however, in this part of
the state is fiercely competitive due
a. Curd Production
to its proximity to the state of
During the year 2013-14 Palakkad
Tamil
dairy produced and marketed on
Palakkad dairy produced 45,659
an average 7056 Kg of Curd. The
Kg of ghee per month during 2013-
Palakkad
14. The infrastructure available is
Dairy
follows
the
Nadu.
Nevertheless,
26
Palakkad District
shown in table 2.4. The facility for
production facilities (Table 2.5) be
ghee
strengthened/added on priority.
production
is
scale
inadequate to meet the current
and future level of
production
which needs to be scaled up in the
immediate future.
a.
Additional Processing
Capacity for Palakkad Dairy
The additional processing capacity
for Palakkad Dairy is examined on
Table 2.4 Infrastructure for Ghee
the basis of:
Production Palakkad Dairy
ƒ
growth in milk procurement
Name
Specification
Units
ƒ
peak period procurement
Cream pump
5000 LPH
1
ƒ
demand supply gap in the
Ghee boiler
Ghee settling
tank
Ghee storage
tank
2000 LTR
2
3000 LTR
3
3000 LTR
3
Ghee pump
3000 LPH
1
Ghee clarifier
2000 LPH
1
market
ƒ
potential
for
market
expansion
ƒ
available
infrastructure
for
processing
The past experience suggests that
2.5.5
Key Issues and
the milk procurement in Palakkad
Recommendations
will grow at the rate of 8 per cent
The installed capacity of the dairy
per annum and peaking three to
is scale inadequate for the current
four months at the rate of 11 per
scale of operation.
cent.
It is not
Hence,
the
current
difficult to foresee that the demand
procurement,
for
and
expected to reach 2.25 lakh in the
Sambharam will increase in the
next three years. And there is little
near future and the Union needs
scope to divert the milk until the
to strengthen the curd and ghee
newly planned Malappuram dairy
production apart from the facilities
is commissioned. Moreover, the
for milk processing to enable the
supply
dairy to generate extra income on
Palakkad district is in favour of
minimal investment. Therefore, it
market expansion and heightened
milk,
curd,
ghee
1.79
demand
LLPD,
position
is
in
is recommended that the following
27
Palakkad District
Table 2.5 Additional Facilities Suggested for Palakkad Dairy under NPDD
Equipment & Machineries
Specification
No.
of
Units
Unit
Cost (Rs)
Total
Cost (Rs
in Lakh)
Milk pump
SS pipes and fittings
Milk silo
Cream storage tanks
Cream pumps
Ghee boiler
Ghee storage tank
Ghee clarifier
Pouch filling machines
Date coding devices for pouch
filling machines
PHE condenser and cooling tower
Total
10 KLPH
Lot
60 KL
3 KL
5 KL
2 KL
3 KL
2 KLPH
5000 PPH
60 imp/mnt
4
1
1
1
1
1
1
1
1
4
50000
500000
2500000
800000
300000
500000
700000
1500000
1000000
150000
2.00
5.00
25.00
8.00
3.00
5.00
7.00
15.00
10.00
6.00
120 TR
1
4000000
40.00
126.00
Sl.
No.
1
2
3
4
5
6
7
8
9
10
11
coverage. Considering the above
production from Palakkad from
requirement, it is suggested to
2014-15 onwards.
enhance the processing capacity to
two LLPD in a phased manner.
b.
The
c. Milk Silo
The milk procurement in Palakkad
Strengthening Ghee
is showing an increasing trend and
Production
has crossed 2 lakh LPD. The sale
Palakkad
dairy
will
have
has also crossed 1 lakh LPD. To
surplus fat and the best choice is
handle the increasing volume of
to convert the surplus fat into
milk
ghee. The ghee market is gradually
purchased.
but steadily increasing and the
Milk Union plans to export more
ghee
to
countries.
equipments
the
neighbouring
The
(Table
Following
2.5)
are
suggested to be inducted to the
production line to expand ghee
one
more
silo
is
to
be
d. Cream Storage Tank, Cream
Pump,
Ghee
Boiler,
Ghee
Storage Tank, Ghee Clarifier
Most of the surplus milk in the
Union is diverted from Palakkad
Dairy
to
other
unions/powder
plants in the form of skim milk.
28
Palakkad District
Hence the fat handling in the dairy
dairy to handle the surplus fat in a
is very high compared to other
manner to facilitate the export
dairies. So, the above equipments
approval separate equipment and
are to be purchased in view of the
fittings as shown in table 2.5 are
increasing milk procurement in
absolutely essential.
the union.
2.6 Milk Marketing
e. PHE Condenser
We have already increased the
2.6.1 Introduction
capacity of ammonia compressors
Milk marketing is one of the major
in the refrigeration plant. Now the
functions
capacity of condensers is to be
Palakkad has marketable surplus
increased
with
of milk, the other four districts
compressors so as to utilise the
under the Union are perpetually
increased capacity for which Plate
deficit in milk. The Union therefore
Heat Exchanger with cooling tower
is now comfortably placed at the
is to be installed.
marketing
Since
to
match
Palakkad
dairy
reports
having surplus milk throughout
the year and especially during the
rainy season the Dairy sends skim
milk
to
other
unions
or
for
conversion sustaining loss. To save
the situation and to generate extra
profit for milk producers, the Dairy
plans to export ghee made from
fresh
cream.
procurement,
Traceability
from
production
and
despatch is a must in the case of
export consignments. Mixing with
normal batches for local supply is
not allowed. Hence to equip the
provides
of
front.
an
marketing
MRCMPU
MRCMPU.
This
overview
While
chapter
of
organization
in
Palakkad
infrastructure
the
of
district,
available,
sales
achievements of liquid milk and
major milk products during 201314, and identifies the key issues
and
problems
and
recommendations
to
makes
address
them.
2.6.2 Organization of Marketing
The marketing wing under the
Palakkad
marketing
marketing
Dairy
organizes
functions.
area
of
the
the
The
Dairy
29
Palakkad District
includes the entire Palakkad and
The milk and the milk products
part
reach the consumers from the
of
Malappuram
districts,
which is divided into two zones,
processing
Palakkad and Pattambi. Each zone
retailers
is under a Marketing Officer. Yet
The liquid milk is directly supplied
another Marketing Officer looks
from the Dairy to the dealers and
after
the
the
market
development
units
through
designated
products
as
the
dealers.
through
the
function. Four field staff look after
wholesalers. There were 924 retail
the field level activities.
outlets
and
29
wholesalers
in
Palakkad at the close of March
The
milk
and
manufactured in
Kozhikode
milk
products
2014. Also, a small portion of the
Palakkad and
products is directly supplied to the
Product
Dairies
are
dealers on cash and carry basis. A
marketed through a well-defined
well
supply chain and clearly defined
distribution
routes for the distribution of milk
liquid milk and the products are
and
sold to the dealers on advance
milk
products
to
the
developed
payment.
consumers.
extended
system
Credit
to
limited scale.
2.6.3 Supply Chain
The Union has more or less similar
supply chain in all the districts.
intending
the
exists.
and
The
facilities
dealers
are
on
a
The milk and milk
products sold during 2013-14 is
shown in table 2.6.
Table 2.6 Milk and Milk Products Sale Palakkad District
Sl.
No.
1
2
3
4
5
6
7
8
9
Milk/Product
Quantity
2009-10*
2013-14
Liquid milk (LPD)
71832
Curd (Liter/day)
6270
Ghee (Kg/month)
27318
Ice cream (Liter/month)
2429
Butter milk (200 ml pkts./day)
4692
Milk peda (Kg/month)
1505
Sip up (Pkts./month)
60000
Palada (Kg/month)
122
Milma plus (Bottles/month)
2613
*Previous benchmark
90300
7056
31725
9497
7911
2761
41450
395
9591
30
Palakkad District
As is evident from table 2.6, there
LLPD
is substantial growth in the sale of
competitors). This indeed is a very
liquid milk and milk products. But
conservative figure and pertains
Palakkad
mostly to the urban market. Added
is
not
among
the
strongholds of MRCMPU for selling
milk and milk products. It has
only the fourth position for milk
sales and sales of major products
like ghee and curd.
(Milma
plus
the
to this is the rural consumption.
Yet another way of arriving at the
market size is by understanding
the end user purchases as shown
in table 2.7.
2.6.4 Market Size and Market
Share
The MRCMPU marketed milk at
the rate of 90,300 LPD amounting
Market size is the measurement of
to just 47 per cent of the market
the total volume of a given market.
size which indeed is low. Hence
Market
support under the NPDD should
size
standard
sales
calculated
practice,
approach
on
a
competitive
(bottom
up
approach), shows that the market
be
geared
market
up
to
improve
coverage
in
the
Palakkad
district.
for liquid milk in 2013-14 is 1.12
Table 2.7 Market Size for Milk and Market Share in Palakkad District 2013-14
Sl.
No.
1
Description
Population (census 2011) Numbers
2
Cattle holdings % (HH survey)
3
Potential consumers (1* 0.7 rural)
4
Actual consumer % (HH survey)
5
Actual consumers (3*4/100) Numbers
6
Per capita cons. ml (HH survey)
7
Consumer demand LPD
8
Inst. demand LPD
9
Total demand LPD
10
Milma supply LPD
11
Market share % (total 10/9*100)
Supply demand gap LPD (Total
demand minus Milma + competitors)
12
Rural
Urban
Total
2133124
676810
2809934
676810
2169997
30
1493187
50
95
746593
642970
56
195
41809
125379
1389563
167188
25076
41809
150455
192264
90300
47
80264
31
Palakkad District
2.6.5
Milk Marketing
available to the marketing wing in
Infrastructure – Current
Palakkad district.
Status
Table
2.8
shows
the
various
support equipment and facilities
The
wide
spread
marketing
network created by MRCMPU is
delivering quality service to the
Table 2.8 Marketing Facilities Available under MRCMPU in Palakkad
District March 2014
Sl.
No.
Component
Quantity
1
Wholesalers for milk (No.)
Nil
2
Wholesalers for product (No.)
29
3
Distributors for milk (No.)
0
4
Distributors for milk products (No.)
0
5
Retail outlets milk and products (No.)
6
Milk parlors (No.)
4
7
Milma shoppe (No.)
2
8
Marketing depots/Hub (Mobile cold storage) (No.)
1
9
PUF vehicle container (5 MT) (No.)
1
10
PUF vehicle container (3 MT) (No.)
25
11
12
13
PUF vehicle container (1.5 MT) (No.)
% milk routes using PUF vehicles for milk
distribution to retail outlets
PUF box 50 Liter (No.)
299
14
PUF box 100 Liter (No.)
192
15
PUF box 150 Liter (No.)
90
16
PUF box 25 Liter (No.)
28
17
PUF box 460 Liter (No.)
8
18
Shipper box for ice-cream
27
19
200 liter freezers for dealers (No.)
80
20
200 liter freezers glass top for dealers (No.)
10
21
120 LTR freezer (No.)
40
22
500 Liter freezer for dairy (No.)
33
23
Deep freezer 320 (Liter) (No.)
54
24
Deep freezer 320 (Liter) Glass top (No.)
18
25
Visi-cooler 220 Liter (No.)
26
26
Visi-cooler 320 Liter (No.)
16
924
1
100
32
Palakkad District
consumers. The market survey has
marginal
demonstrated
farmers in Palakkad district. The
that
the
market
and
sub
marginal
share of MRCMPU for liquid milk
MRCMPU
is close to 50 per cent only. The
unexploited
demand for milk products is also
particularly the ever expanding
vertically expanding. In order to
semi urban and rural market.
command a higher market share
Hence, MRCMPU has to tone up
and to facilitate the position of
their marketing activities.
market leader in dairy business
crux of the issues is that the
the MRCMPU need to expand its
marketing
marketing functions in Palakkad
MRCMPU is inadequate to meet
district.
But
the
product
sales
competitive
requires
milk
and
are
and
to
fiercely
keep
aggressive
milk
facilities
and
tap
market
the
potential
The
infrastructure
growing
counter
to
demand
their
in
and
to
competitors
in
going
Palakkad district for which few
marketing
suggestions are placed as table
strategies, continuous upgrading
of
has
promotional
activities.
2.9.
The list of activities and supports
are listed in table 2.9. The list is
more or less self explanatory. Few
2.6.6 Key Issues and
items deserving special mention
Recommendations
Palakkad
district
is
under
are explained below.
perpetual threat of invasion of
a. Milk Parlors
cheap
Nadu.
The milk parlors will be positioned
price
in strategic positions to attract
milk
Whenever
from
the
Tamil
consumer
equilibrium changes, the inflow of
more
milk from Tamil Nadu increases.
products. Apart from selling the
The institutional segment is largely
Milma products they also act as a
within the hands of private traders
media to improve the visibility of
from Tamil Nadu. At the same time
milk
milk
Milma products will be served in a
production
is
livelihood
intensive to a vast majority of
consumers
and
milk
to
Milma
products.
The
customer friendly environment.
33
Palakkad District
Table 2.9 List of Activities and Equipments Suggested for Market
Development in Palakkad District 2014-15 to 2016-17
1
Depot/Parlor
No. of
Units
Unit Cost
(Rs)
Total
Cost (Rs
Lakh)
1.1
Milk parlor civil
9
50000
4.5
1.2
Milk parlor equipments
9
10000
0.9
1.3
Shoppe support
3
500000
15
1.4
Marketing depot/HUB
0
1200000
0
1.5
Space in super market
15
20000
3
1.6
2
Decorated mobile product vehicle
Marketing Infrastructure for Preserving/
Maintaining Quality of Milk
3
50000
1.5
2.1
PUF vehicle container (5 MT)
0
460000
0
2.2
PUF vehicle container (3 MT)
9
250000
22.5
2.3
PUF box 50 ltr.
60
2000
14
2.4
Shipper box for ice cream
90
6000
5.4
2.5
200 liter freezers for dealers
90
13000
11.7
2.6
200 liter freezers glass top for dealers
60
17000
10.2
2.7
120 LTR freezer
90
11000
9.9
2.8
500 ltr. freezer for dairy
10
23000
2.3
2.9
Deep freezer 320 ltr.
90
17000
15.3
2.10
Deep freezer 320 ltr. (Glass top)
90
20000
18
2.11
Visi-cooler 220 ltr.
120
20000
24
2.12
Visi-cooler 320 ltr.
90
30000
27.00
3
Awareness Programme for Consumers
3.1
Consumer awareness programme
LS
134.00
3.2
Canopy with eutectic freezer subsidy
17
100000
17
3.3
Hoarding/traffic circle/wall painting
18
100000
18
3.4
Support to milk stockists (RD)
14
200000
28
Total
All
the
parlors
382.2
started
during
parlors are suggested in new areas
Phase I, are functioning well and
to
they
Therefore nine more parlors are
provide
the
necessary
impetus for higher sales of Milma
attract
more
consumers.
recommended in the district.
milk and milk products. Additional
34
Palakkad District
b. Milma Shoppe
be started in three more towns
Improving the visibility of Milma is
during the project period.
important for its business and
more
importantly
sustain
milk
crucial
production
to
and
livelihood support to the resource
poor
milk
producers
operating
under hard conditions. Keeping
this in mind MRCMPU started
‘Milma
Shoppe’
in
Palakkad
district. Shoppes are brand shops
of Milma with all Milma products
available at the outlet and it works
round the clock. It has won the
appreciation of one and all and is
found to be an effective tool to
publicize
its
products.
It
is
suggested that similar shops shall
c. PUF Bodies
Among
the
various
infrastructure
introduction
marketing
provided,
of
PUF
insulated
vehicles for milk distribution and
PUF boxes in the retail outlets are
worth
mentioning.
With
the
addition of the two PUF containers
under the IDDP scheme during
last year, the entire milk transport
from Palakkad dairy has been
switched over to PUF insulated
vehicles.
However,
additional
supply routes are to be operated in
the coming years and more PUF
35
Palakkad District
bodies are required. Also, few of
Visi-coolers
the PUF bodies in use are to be
equipment to keep products like
replaced. Hence, nine more PUF
flavored milk in cool environment.
bodies
Hence, few of them are suggested
shall
be
added,
it
is
are
excellent
suggested.
as part of market promotion.
d. PUF Boxes/Visi-Coolers
e. Ice Cream Promotion
The freezers are uneconomical for
MRCMPU is selling products like
small volume milk storage. The
ghee, curd, butter milk, Milk Peda,
PUF boxes of varying sizes, 50-150
Palada Mix, Flavored milk and ice
liter
cent
cream. The share of milk products
outlets
in the total turnover of the Union
bodies
is around 24 per cent and is
provided
at
subsidy
in
the
coupled
with
ensure
perfect
50
per
retail
the
PUF
cold
crucial in its financial security and
chain, namely from the dairy to
liquidity. Among all the products,
the consumer. Our field exposure
ice cream is the most promising
visits revealed that the retailers
one.
wholeheartedly welcome the PUF
has only less than 5 per cent
boxes because they were accepted
market share in the ice cream
as
the
segment.
The
energy consuming freezers. They
identified
against
occupy
easily
expansion is the absence of user
movable and easy to clean. The
friendly and energy saving freezers
boxes retain low temperatures for
at
about 3-4 hours during which the
Phase I, SIQCMP the Milk Union
entire milk generally get sold out.
invested in freezers at the level of
It is proposed that all retailers
retailers and as a result the sales
shall be provided with new or
of ice cream have increased from
additional PUF boxes to achieve
2400
viable
end-to-end
alternatives
less
space,
for
are
retail
points.
Liters
per
Milma
now
major
hurdle
the
market
During
month
IDDP
during
chain
2010-11 to 9500 liter per month
maintenance. The estimated cost
during 2013-14. A three pronged
comes to Rs 15.0 lakh.
market
100
per
cent
cold
Unfortunately,
intervention
–
appoint
more whole sale dealers, equip all
36
Palakkad District
retail points with suitable size
distribution from 14 points for the
freezers
next three years will be Rs 28.0
and
wide
publicity
through TV channels is suggested.
In
addition,
vehicles
17
are
canopy
fitted
recommended
for
special sales in tourist spots and
prominent on road places.
lakh.
g.
Consumer Awareness
Programs
Consumer awareness camps are
being
held
and
dairy
visits
f. Redistribution of Milk
organized to explain the chain of
As pointed out in the forgoing
activities taken up by the Dairy,
sections the milk distribution in
starting from milk reception to
rural and interiors of urban and
sales through the retail outlets.
semi urban areas requires to be
The
increased. Proper and timely reach
opportunity to gather firsthand
is the issue. Because of narrow
information on quality assurance
roads the 3 MT vehicles often
cannot reach the sale points. In
such
situations
the
milk
is
transported in large truck and
stored with a milk dealer (retail
outlet). The milk from the dealer is
transported to interior and difficult
to
reach
vehicles
places
(Ape
using
type)
smaller
thereby
ensuring higher penetration and
wider reach for the milk. The other
advantages include timely supply
to
the
retail
outlets
and
elimination of milk outs during
consumers
also
get
an
followed at various stages of milk
reception,
processing
and
marketing. Advertisement boards
and banners are exhibited in busy
places for publicity on the milk
and milk products. The awareness
activities are scale inadequate and
are not reaching a large segment of
general
public
particularly
the
rural segment. Considering
the
ever expanding rural segment a
better focused and well directed
publicity and awareness campaign
early mornings and late evenings.
is to be launched. Apart from the
The dealer is compensated for the
food
extra
The
importance of milk production and
re-
consumption the importance of
effort
estimated
and
cost
expense.
for
the
security
and
nutritional
37
Palakkad District
milk as an instrument of livelihood
support for thousands of poor milk
producers and as a safe food for
2.7 Milk Procurement
2.7.1 Organization of Milk
Procurement – Palakkad
millions of consumers needs to be
highlighted
to
attract
more
consumes in to the Milma fold.
Hence,
it
consumer
is
suggested
awareness
that
programs
should cross the usual styles and
enter into newer frontiers.
estimated
cost
for
The
District
Milk procurement is one of the key
functions of MRCMPU. MRCMPU
has established a network of village
level DCSs to procure milk from
dairy farmers in Palakkad district.
Milk
procurement
activities
in
awareness
Palakkad are coordinated from two
camps and publicity during the
places, the P&I Unit in Palakkad
next three years will be Rs 134.0
dairy
lakh.
organization of milk procurement is
and
Pattambi.
The
illustrated in fig. 2.4.
Fig. 2.4 Organization of Milk Procurement, Palakkad District
Milk
Producers
BMC DCS
Cluster
DCS
Non BMC DCS
Direct
DCS
Milk Chilling
Plants (2)
PGT DAIRY
Key words: BMC DCS – Dairy Cooperative Society having Bulk Milk Cooler;
Cluster DCS: DCS attached to BMC for milk supply; PGT: Palakkad
38
Palakkad District
The DCSs procure surplus milk
among the 74,081 registered milk
from framers and deliver it to the
producers
Palakkad
average 24,501 poured milk in the
Dairy or to either of the
two Milk Chilling Plants.
in
the
district
on
Milk
DCS. The proportion pouring milk
from BMC DCSs/MCPs is chilled
is low because the non-producers
(4 0C) and delivered while the milk
are not removed from the DCS roll
from other DCS (Direct DCS) is
due to the cumbersome mandatory
supplied at room temperature. The
procedures.
Dairy
and
procurement per DCS was 626
markets the milk in towns and
LPD and per supplier 7.94 LPD
other urban agglomerations within
during 2013-14. The local sale,
and outside the District. The whole
27,541 LPD, accounts for 14 per
chain of activities - procurement,
cent
processing and marketing - is well
indicating
orchestrated and well executed.
trend in the rural areas. The rate
in
turn
processes
of
The
the
average
daily
procurement
healthy
production
of procurement is appreciable in
2.7.2 Profile of DCS in Palakkad
District
A
majority
Palakkad
Pattern
(APCOS).
standards.
of
the
district
They
However,
the
the
Kerala
DCS
classified according to the daily
Anand
procurement shows that 19 DCS
Societies
were collecting less than 100 LPD
producer
and yet another 42 DCS daily
are
are
with
in
DCSs
Cooperative
cooperatives
comparison
managed
by
collected between 100 and 200
democratically elected Board of
LPD. The study shows that those
Directors. At the close of March
DCS are not economically viable.
2014 Palakkad district had 305
The reasons for poor procurement
functional
rate are that they are not in ideal
APCOS.
In
addition
there were 18 non-APCOS directly
under the Department of Dairy
Development.
locations, non-potential suppliers
are inducted as members and the
farmers have better option for
Table 2.10 shows the profile of the
selling milk.
The relocation of
DCS in Palakkad district. From
those DCS needs to be considered.
39
Palakkad District
Table 2.10 Profile of DCS in Palakkad District 2013-14
Sl.
Description
Quantity
No.
1
Functional APCOS av. 2013-14
305
2
Non APCOs
18
3
No. of farmer members/DCS
(243) 74081
4
Av. number of suppliers/DCS
(79) 24051
5
Milk farmer procured (LPD)
190964
6
Local sales (LPD)
27541
7
Milk supplied to milk union (LPD)
163423*
8
Av. farmer procurement of milk/DCS (LPD)
626
9
Av. farmer procurement/supplier (LPD)
7.94
10
Av. procurement price paid to DCS (Rs/Kg)
29.38
11
Av. price - Local sales (Rs/liter)
12
No. of DCS collected <100 LPD
19
13
No. of DCS collected 101 - 200 LPD
42
14
No. of DCS collected 201 - 300 LPD
59
15
No. of DCS collected 301 - 500 LPD
167
16
No. of DCS collected >500 LPD
18
17
No. of DCS making one time milk collection from farmers
18
Av. fat%
4.23
19
Av. SNF%
8.4
20
No. of BMC DCS
33
21
No. of BMCs
36
22
Installed capacity
145000
23
Av. collection through BMC (LPD)
90800
24
No. of DCS making supply at dairy dock
111
25
No. of DCS provided AMCU (including DDD)
136
26
No. of DCS provided analyzer only (including DDD)
12
27
No. of DCS provided EMT
12
28
No. of DCS provided EMT only (no analyzer)
12
29
No. of DCS provided Gerbers test equipment only
5
30
No. of Panchayat wards in the district
31
% coverage under milk procurement
32
% wards having potential for milk collection
33
No. of DCS in own building
186
34
No. of DCS having adequate water supply arrangements
52
35
No. of DCS having standby generators
2
36
No. of DCS having Electricity
186
37
No. of Milk cans supplied during last five years
2409
38
Milk spoiled (LPD)
39
39
Av. MBRT - milk supplied through BMC
158
40
Av. MBRT - milk supplied at dairy dock
62
* In addition, the traditional DCS in Palakkad district supplied on an average
15617 LPD to the milk Union adding up the total procurement in dairy to
179040
40
Palakkad District
Out of the 305 DCS, 111 DCS was
improve the dairy development in
supplying milk direct to the Dairy
the area, needs to be examined
during 2013-14. All others supplied
under the next phase of IDDP.
milk either to the village BMCs or
to those DCS supplying to MCP.
2.7.4 Milk Quality and Quality
The number of DCS functioning in
Administration
own buildings was 166 (61 per cent
The MRCMPU follows two axis
of the total) with the rest located in
pricing ie, farmers are paid on the
rented buildings. Almost all of them
basis of milk fat and SNF content.
have electricity. But only 52 DCS
The
have adequate and proper water
equipped to determine the fat and
supply arrangement which is a
SNF. Few DCS are also equipped
major hurdle in maintaining good
to
hygiene standards. In 136 out of
adulterants and neutralizers apart
305 (45 per cent) AMCU are used
from MBRT estimations.
for
milk
collection
and
quality
determination.
District
Panchayats
has
with
90
Grama
1451
wards,
apart from 139 Municipal wards.
The data available with the Union
shows that 873 wards are covered
under DCS which works out to
almost 60 per cent of the total
wards,
still
detect
cooperatives
added
Because
of
the
pricing
system,
are
preservatives,
quality
based
the
quality
assessment in DCS is crucial in
2.7.3 Coverage
The
village
leaving
out
a
significant proportion of them to
be brought under the procurement
network. Opening new DCS as an
effort to improve the procurement
volume, which indirectly would
determining the price to be paid to
the
farmer
and
winning
their
confidence. The cooperatives in
Palakkad follow any of the three
known
procedures
for
quality
assessment - conventional milk
testing (Gerber’s test for fat and LR
for SNF determination), Milk O
Tester for fat and LR for SNF and
Automatic Milk Collection Units
(AMCU)
for
quality
and
price
determination. The AMCU would
be the most desirable because it is
convenient, error proof, quick and
41
Palakkad District
transparent. Table 2.10 shows that
better attention for improving the
62 out of the 264 APCOS (23 per
bacterial quality.
cent) in Palakkad use AMCU.
2.7.5 Key Issues and
On the quality front, the procured
Suggestions
milk has 4.23 per cent fat, and
Milk
8.40
is
district is well organized. Under
acceptable for all practical reasons
IDDP and SMP Rs 537.54 lakh has
(Table
education
been invested for a number of
and introduction of AMCU can
components ranging from BMC to
further improve the quality. The
milking
average MBRT of milk supplied
building of farmers, DCS employees
through BMC DCS is good while
and elected members. The IDDP
that of non BMC DCS, 62 minutes,
support
indicates
quality
(2014-15) and will continue for one
(Table 2.11). In the years to come
more year (2015-16). Therefore, the
both compositional and bacterial
support suggested here (Table 2.12)
quality will have a telling influence
are intended to stabilize and carry
on the marketability of milk and
forward the achievements already
therefore the Union needs to pay
made.
per
cent
2.11).
poor
SNF
Farmer
which
bacterial
procurement
vessels
is
in
and
currently
Palakkad
capacity
available
Table 2.11 Palakkad District Av. Milk Quality 2013-14
Parameter
Fat % APCOS
Fat % non APCOS
SNF % APCOS
2009-10
4.23
NA
8.40
SNF % non APCOS
NA
Av. MBR time BMC DCS (Mts)
158
Av. MBR time direct DCS (Mts)
62
No. of APCOS using/supplied AMCU
No. of APCOS using/supplied Milk O
tester & LR
No. of APCOS using/supplied
Gerber’s test & LR
136
244
5
42
Palakkad District
Table 2.12 Components Suggested under NPDD for Strengthening the Milk
Procurement in Palakkad District 2014-15 to 2016-17
Sl.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Component
Buildings for DCS
Water supply system
Bore well
Open well
Working capital assistance
Aluminium cans
Automatic milk collection
units
Electronic milk tester
Electric centrifuge
Weighing scale
Hand held billing device
Management grant to DCS
Subsidy to milk transport
Subsidy to cattle feed
transport
Incentive to better quality
milk
Total (3.0.0)
No. of
Units
Unit
Cost (Rs)
18
9
9
15
3
300
100000
60000
25000
10000
30000
2500
Total Cost
(Rs in
Lakh)
18.00
5.40
2.25
1.50
0.90
7.50
3
4
8
3
8
8
370000
100000
MT
10000
LPD
125000
15000
2500
15000
10000
30000
0.5
3.75
0.60
0.20
0.45
0.80
2.40
1.85
400/MT
400.00
0.5
54.75
500.35
a. Buildings
are identified to have the land and
As pointed out in the forgoing
financial capacity to do this during
sections, a sizeable number of
the project period.
DCS function in rented buildings.
Most of them do not have the
minimum facilities for hassle free
milk collection and dispatch. BMC
installation is virtually impossible
and effluent treatment is a serious
issue. Therefore it is suggested to
include provision for subsidizing
new DCS building at the rate of Rs
one lakh per DCS. The buildings
will cost almost four times the
suggested amount. Eighteen DCS
b. Water Supply System
Developing water source and water
supply is becoming increasingly
important
for
the
DCS.
Water
harvesting, installing water tanks
and pumping facilities are the keys
to a well-established water supply
system.
Most of the DCS find it
difficult
to
mobilize
adequate
capital for investment. Hence, a
subsidy of Rs 60,000 per unit is
43
Palakkad District
suggested for an estimated nine
of the district
numbers at a total cost of 5.4
suggested
lakh. Also digging nine bore wells
subsidize the cattle feed transport.
at the rate of Rs 25,000 per unit
The estimated quantity sold in
and open well at the rate of Rs
Palakkad district comes to one
10,000
fifteen
lakh MT in three years. An amount
for
of Rs 400 lakh at the rate of Rs
per
numbers
unit
are
for
suggested
Palakkad district.
entails a cost. It is
to
support
and
0.4/kg is the average transport
cost. This may be provided as a
c. Automatic Milk Collection
subsidy to the KCMMF so that the
Units
About 136 DCS use AMCU for milk
collection and quality checking.
price of cattle feed is kept low.
e. Incentives for Good Quality
Those Units can develop problems.
Milk
It is important to have spare units
The
for replacement. It is suggested to
considerable
add three units for replacing the
the dairy farmers to produce good
defective ones. They can also be
quality milk. The bacterial load of
used as service units to provide
raw
temporary
significantly improving the quality,
service
in
case
of
SIQCMP
milk
has
instilled
enthusiasm
has
been
among
reduced
breakdown. The estimated cost is
especially
Rs 3.75 lakh.
properties (taste and flavor) of the
d.
and longer shelf life. The farmers
Transport
Cattle feed is being sold through
DCS.
The
farmers
wholeheartedly welcome the sale of
cattle
feed
through
the
DCS
because of the convenience, easy
access
and
credit
organoleptic
milk, apart from high heat stability
Subsidy for Cattle Feed
the
the
facility.
Transport of cattle feed from feed
plant to the DCS in various parts
are
extra
not
compensated
effort
in
for
their
producing
good
quality milk. As a beginning it is
proposed that the top 5 per cent of
the milk may be paid an incentive
of 50 ps. per liter of milk. The daily
procurement is close to 2 LLPD
and
the
incentives
at
the
suggested rate works out to Rs
44
Palakkad District
5000 per day and Rs 18.25 lakh
arrangements. The cows remain in
per year (Total Rs 54.75).
this shelter most of the time (no
grazing). The hind quarters and
the udder often remain soiled by
2.8 Cattle Shed and Farm
dung and mud. Udder and teat
Machineries
Clean and hygienic cattle sheds
are a precondition for clean milk
production. A dirty cattle shed
contributes substantially towards
external contamination of milk and
entry of microbes into the udder
causing
sub-clinical
or
clinical
mastitis. A well-made cattle shed
should
also
provide
ease
of
operation and animal comfort. The
shed should have adequate space
for the animal, manger, feeding
alley, urine and dung channel. The
shed must be well ventilated, easy
to
clean
and
transparent
should
have
roofing
sheets
interspersed with opaque ones to
permit sunlight, and facility for
continuous water Sheds of those
standards
are
not
Palakkad district.
sheds
are
shelter
a
with
existing
Most of the
mere
make
mud/wood
tile/asbestos/PVC/Silpaulin
shift
floor,
roof,
dark and musky, all in one floor
(no
and
urine
or
without
dung
channel)
any
watering
injury is common. Feeding of water
is only occasional. Therefore, any
support for good cattle shed is the
most
welcome
support
for
the
dairy farmers in Palakkad district
who belong to the poorest of the
poor
in
the
community.
Considering those aspects the Milk
Union
funded
cattle
shed
modifications and building new
cattle sheds under the IDDP and
SIQCMP schemes.
During the
course of the field work we found
that the floor of cattle shed are
well made using the fund allotted.
However,
construction
of
new
cattle sheds is very expensive in
Kerala due to the high labor cost
and the cost of materials. The
budget provision of Rs 10,000 is
thoroughly inadequate and will not
meet even 10 per cent of the
overall cost. Therefore, it would be
more sensible if the support could
be extended for renovation and
modification of the sheds with
45
Palakkad District
watering
facility
rather
than
insisting on a new cattle shed.
channeling support since few years.
Table 2.13 shows the physical
On the face of shrinking family size,
attainments in the immediate past.
changing status of women in the
society,
and
increasing
Table 2.13 Farm Equipments
Supplied to Farmers in Palakkad
opportunities for employment in
other sectors of the economy, the
District
Sl.
No.
Item
Quantity
1
Cattle sheds modified
262
2
Milking machines
labor for dairy farm activity except
3
Rubber mats
for
4
Pressure washers
5
Gen sets
6
Cow drinker
40
7
Chaff cutter- Motorized
20
availability
of
labor
for
dairy
farming is fast declining. Hired
milking
is
uncommon
in
Palakkad district. Hence reducing
the labor input and making the
62
1160
84
4
daily chores as pleasant as possible
is crucial for the very sustenance of
It
dairy
assistance may be continued and
farming.
Considering
the
is
suggested
that
the
economic and social significance of
funded
dairying,
has
components suggested, quantity
financial
and the estimated cost can be
initiated
the
MRCMPU
providing
support for farm mechanization.
under
NPBBDD.
The
found table 2.14.
The Union has been providing and
Table 2.14 Cattle Sheds and Farm Machineries Suggested under NPDD
Palakkad District
A
Cattle Shed
1
Strengthening of old sheds/
constructing new sheds
Auto watering system
Cattle Farm
Mechanization
Gen set
Pressure washers
Rubber mats
Total (4.0)
2
B
3
4
5
No. of
Units
Unit Cost
(Rs)
Total Cost
(Rs in
Lakh)
150
15000
22.5
150
5000
7.50
30
150
750
75000
7500
2500
22.50
11.25
18.75
82.5
46
Palakkad District
2.9 Cattle Induction
ƒ
included for cattle induction
Cattle induction is an effective way
of
asset
re-distribution.
activity.
The
absence of easily accessible loan at
ƒ
has
been
resorted
by
several
women.
ƒ
MRCMPU
heifers
to
promote
too
Women
cattle
rearing
in
to
the
District.
ƒ
the
economically
poor
hands
people
75
per
cent
amount
shall
balance
(BPL
of
insurance
be
included
as
beneficiary
contribution.
families). It continues to be a
especially women. Therefore the
Transportation cost shall be
under the scheme and the
of
major source of their livelihood,
be
met in full under the scheme.
ƒ
in
will
cent of purchase price.
Cattle keeping in the district are
largely
members
subsidy and others 50 per
distributed
farmers
Women
allowed 75 per cent of price
development agencies in the state.
The
50 per cent of cows and
heifers will be reserved for
reasonable interest rate is a major
hurdle. Therefore cattle induction
Only the BPL families will be
2.10 Establishment of
Laboratories
following number of cattle (Table
be
An amount of Rs 38.59 lakh had
supported under NPDD with the
been invested under phase I & II
following conditions:
IDDP and SIQCMP and Rs 16.5
2.15)
is
recommended
to
Table 2.15 Cattle Induction Program Proposed for Palakkad District
Sl.
No.
1
2
3
4
Cattle Induction
Capital expenditure
Purchase of animals
Purchase of heifers
Transportation cost of
animals
Cattle/Heifer insurance
Total
No. of Unit Cost
(Rs)
Units
Total Cost
(Rs in
Lakh)
120
120
40000
30000
48.00
36.00
240
150
2000
2500
4.80
3.75
92.55
47
Palakkad District
lakh by Milk Union in upgrading
Although
the lab. Palakkad Dairy has a
equipped to carry out the MBRT a
reasonably well equipped lab. It
system to carry out the test by the
should aspire to add more modern
DCS staff and to on line link with
gadgets
the
after
standardizing
the
recently procured equipments and
laying out
the ground level
testing on a routine. However the
lab has to go a long way in
the
central
DCS
lab
is
labs
yet
are
to
be
developed and implemented.
2.11 Clean Milk Production
equipping and testing procedures
Under
the
CMP
scheme
the
to meet the FSSA/ISO: 22000-
MRCMPU supplied the following
2005 requirements. The following
articles to the farmers in Palakkad
suggestions (Table 2.16) are meant
(Table 2.17).
as a first step towards this.
Table 2.16 Equipments and Facilities Suggested for Quality Control Lab
Palakkad Dairy under NPDD (2014-17)
Sl.
No.
1
2
3
4
5
Component
No. of
Units
Unit
Cost (Rs)
1
1
1
1
0
500000
100000
100000
1
500000
Central milk testing lab
Purchase of laboratory furniture
High capacity pressure jet
FSMS monitoring software
Accreditation and certification of
dairy establishments under
HACCP/ISO
Total
Total
Cost (Rs
in Lakh)
20.00
5.00
1.00
1.00
5.00
32.00
Table 2.17 Assistance under SIQCMP in Palakkad District
Sl.
No.
CMP Kits to Farmers
Physical
Financial
(Rs in Lakh)
1
Detergents & chemicals to DCS
Lot
15.35
2
Stainless steel utensils to beneficiaries
874
23.04
3
Milking machines
50
25.00
48
Palakkad District
Distribution of CMP kits to farmers
all farmers who have acquired
had the least impact on milk quality
machines use them. The service
because the farmers discontinued
back up and knowledge sharing
the use of chemicals and detergents
remain to be improved. It is also
once the free supply is stopped.
understood from the field study
Hence, this component may be
that many farmers opt out of
dropped from NPDD. The stainless
dairying because of the difficulties
steel utensils (the milking vessels
in
and carrying utensils) on the other
suggested that 15 numbers of
hand are being used by the farmers
milking machines may be supplied
and they wholeheartedly welcome
to the farmers at subsidized (75%)
the component. It is suggested that
rate under NPDD.
those equipment may be supplied to
suggested that few hand operated
the
machines shall be supplied to the
farmers
under
the
NPDD
milking
cows.
Hence,
it
is
It is also
through the DCS. The numbers
needy
suggested
scientific and methodical field trial
and
the
financial
requirements are given as table
farmers
after
making
a
in association with KVASU.
2.18.
On the face of the shrinking family
2.12 Technical Input Services
(TIS)
labor and exorbitant wages for
unskilled labor in Kerala, milking
Technical input services are meant
machines are extremely beneficial
for
to the dairy farmers. Our field
exposure visits shows that almost
the
participating
members.
The
farmer
component
encompasses a variety of farm
Table 2.18 CMP Kits Suggested under NPDD in Palakkad District (2014-17)
Sl.
No.
1
2
Components
Stainless steel utensil kit/
accessories
Electricity operated milking
machine
Total
No. of
Units
Unit
Cost (Rs)
Total Cost
(Rs in
Lakh)
1560
400
6.24
15
55000
8.25
1575
14.49
49
Palakkad District
level activities and assistance. TIS
This is covered under the NPBB
was a major component of the
and hence not recommended. The
IDDP and SIQCMP implemented in
animal health and breeding input
the
major
camps include a pilot program for
and
fertility management of dairy cows
district.
components,
The
financial
physical attainments in Palakkad
among
can be found from table 2.19.
envisages identification of infertile
veterinary
production incentives to farmers
aids
for
cost
most
program
to
disorders
correct
if
any,
standardization and documentation
of the procedures for adoption
included under NPDD as a priority
The
support
reproductive
reduction.
Therefore they are suggested to be
component.
The
cows, providing management and
The Technical input services are
and
farmers.
elsewhere in the State. It is a DCS
essential
based program centrally controlled
components are listed in table 2.20.
and
monitored
from
HO
of
MRCMPU.
The LN containers are for the
replacement of the ones in use.
Table 2.19 Technical Input Services Components and Achievements
Palakkad District
Component
Physical
Achievement
Financial
IDDP/
SIQCMP
Union/
Beneficiary
(Rs in Lakh)
Total
(Rs in
Lakh)
Technical
input services
297
42.3
18.12
60.42
Table 2.20 Technical Input Services for Palakkad District
Sl.
No.
1
2
3
4
5
Components
Liquid nitrogen plant & containers
Audio visual kits etc.
Animal health & breeding input
camps
Chaff cutter
Commercial fodder production
Total
No. of
Units
Unit
Cost (Rs)
6
1
30000
200000
Total Cost
(Rs in
Lakh)
0
2.00
180
5000
9.00
36
20000
7.20
30
100000
30.00
48.20
50
Palakkad District
Fodder is getting scarcer than
2.13 Information and
before in Palakkad with the decline
Communication
in
Technology Networking
paddy
production.
Fodder
continues to be one of the major
contributors to the extremely high
cost
of
Kerala.
production
Several
promotion
of
milk
isolated
in
fodder
activities
were
implemented in the district. But
none of them could influence the
scale of fodder scarcity. One of
them, the conventional homestead
fodder production, is a tried and
failed
attempt
reasons
are
important
in
Kerala.
many,
the
being
the
The
most
land
fragmentation and the declining
farming activities. On the other
hand, large land holdings and
fallow land are potential source for
fodder production – fodder as a
value added crop in irrigated land.
The fodder so produced shall be
marketed
among
the
DCS
members at cost price. Therefore
this component is suggested as a
flagship program of NPDD with 30
farmers supported at an estimated
cost of Rs 30 lakh. The amount is
meant
for
land
preparation,
planting and developing irrigation
source.
MRCMPU
apart
from
being
a
farmers’ organization is a multicrore
business
concern.
Its’
business units are far flung and
widely distributed. To keep abreast
of the speed and perfection of
modern business full utilization of
information
and
communication
technology is essential. It is also
essential that the whole business
is transparent to its stakeholders,
the
farmers.
Unfortunately
the
Milk Union is only in the nursery
stage of IC technology mainly due
to the lack of adequate funds. At
present
the
dairy
business
partially
computerized
networked
(intranet).
is
and
The
milk
Union proposes to expand the IC
network so that the system will
function
as
architecture
a
client
network
server
with
one
center at each district (Palakkad,
Malappuram, Kozhikode, Wayanad,
Kannur, Kasaragod) and a central
server system linking all these six
centers. Data and information will
be
made
available
to
all
the
districts and DCS. The details of
51
Palakkad District
the proposed system are giving as
reduction,
annex-1. The expenditure is to be
product improvement and so on.
shared
district
Apart from Union employees, the
projects. The part required to be
staff and elected members of DCS
completed in Palakkad is shown in
and Board are also trained on
table 2.21.
appropriate subjects.
2.14 Manpower Development
MRCMU
Training
training programs as a part of
between
the
and
development
energy
has
conservation,
designed
several
program of MRCMPU were used as
Manpower
the
for
2.22 shows the numbers trained
organizational development and to
in various categories. The DCS
make
staff have been trained at the HRD
main
strides
standards
instrument
in
productivity
including
cost
Development.
Table
centre, Kozhikode under MRCMPU
Table 2.21 Information and Communication Technology NetworkingPalakkad District
Sl.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Component
A4 size network laser printer
A4 size flat bed scanner
Data server
Server storage device
Server UPS backup
42 U server rack
Foldable TFT console
8 port KVM switch
Layer 3 switch 24 port
Layer 2 switch 24 port
Weblogic server and suite
Oracle application server
Antivirus software
Software consultation charges
Sub total (9.1.3)
Leased line communication
cost
Total
No. of
Units
Unit Cost
(Rs)
2
4
4
2
2
1
1
1
1
2
2
2
1
1
6
20000
5000
900000
800000
700000
100000
45000
30000
250000
125000
1500000
1500000
100000
500000
0
Total Cost
(Rs in
Lakh)
0.40
0.20
36.00
16.00
14.00
1.00
0.45
0.30
2.50
2.50
30.00
30.00
1.00
5.00
66.00
1
1000000
10.00
149.35
52
Palakkad District
Table 2.22 Farmers and DCS Employees Trained under IDDP/SIQCMP in
Palakkad District during the Last Five Years
Sl.
No.
1
C D program
a
No. of programmes
11
b
No. farmers trained
1543
c
FIP - Local farmers attended
1135
2
Training of BMC/DCS/MCC staff
3
Training of DCS secretary
227
4
Training of DCS employees
178
5
Training on AI
6
Training of farmers on GMP/GHP
7
Training of farmers on AH practices
218
8
FIP
111
10
11
on
the
Number of
Persons
Trained
Name of Programme
44
26
5801
Training on marketing
Training of management committee
members
relevant
83
The
visit to a few well run farms. The
trainers were mostly from within
farmers were given opportunities
the organization and also experts
to see for themselves the success
invited from other organizations.
and failure stories. The training for
The duration ranged from one to
MRCMPU employees is arranged
three
by
days
subjects.
29
and
the
subjects
the
Head
Office
in
the
handled were those relevant to the
institutions of repute in India,
concerned groups.
both inside and outside the state.
The farmers’ induction program is
normally carried out in the HRD
Centre,
Kozhikode.
The
Dairy
Animal Management Training to
the farmers has been undertaken
in
APCOS
DCS.
The
training
included lectures by experts and
An interaction with a test group
showed that the trainings were
useful for upgrading their skill and
knowledge. An amount of Rs 54.62
lakh had been spent on HRD IDDP
and
CMP
Phase
I
and
II
in
Palakkad district.
53
Palakkad District
2.14.1 Key Issues and
Marketing
Suggestions
staff
should
be
exposed to higher levels of
Future training especially those for
knowledge on production and
the middle level employees starting
marketing management. They
from Supervisors should be hand
should
on training exclusively on subjects
opportunity to visit centers of
and skills relevant to them.
excellence outside the State.
a. Farmers training should be
d. The
be
provided
thrust
of
capacity
organized in villages with the
building
support of LSG and Village
employees
Extension
modern Management Systems
Workers
under
MRCMPU.
rather
on
Eradication,
Production
Village
for
Extension
country
farmers,
Dynamix)
Workers
Dairy
Production
technical
should
be
(eg.
to
Schreiber
widen
their
e. The FIP must be gradually
and results closely watched
c. The
on
vision and outlook.
and DCS employees should
and monitored.
They
be
dairy sector elsewhere in the
Milk
be initiated on a project mode
on
level
exposed to what happens in
Mastitis
Clean
higher
should
than
subjects.
b. All out and comprehensive
training
of
toned down and tapered out.
The courses suggested and the
Managers,
Officers
and
estimated costs are given in table
2.23.
Table 2.23 Training Suggested under NPDD 2014-15 to 2016-17
Sl.
No.
1
2
3
4
5
Name of Course
Units
No. of
Units
CD programme
Training on mastitis
Training DCS employees &
elected members
MRCMPU employees
Institutional skill development
Total
Numbers
Person
6
600
Lot
Person
Lot
125
Unit Total Cost
(Rs in
Cost
Lakh)
(Rs)
80000
4.80
300
1.80
3000
20.00
11.00
20.00
57.6
54
Palakkad District
During
2.15 Working Capital –
lean
season
union
is
procuring milk from other states
Palakkad District
large
for which payments are made in
amount towards Working Capital
advance. SMP is also to be stored
in
the
to take care of any possible short
payment of milk price, purchase of
supply of liquid milk from outside
SMP, cattle feed, packing materials
state.
The
MRCMPU
Palakkad
require
district
for
and other expenses. The Dairy has
to maintain minimum quantity of
finished products at all times to
ensure
uninterrupted
Minimum
quantity
of
materials,
consumables
sales.
all
raw
packing
materials, stores and spares etc.
are
also
smooth
required
to
Union
is
fluctuating
of
the
Union
between the flush and
season.
to
During
May)
the
Flush
working
capital buffer the timely payment
of milk value to the farmers even
while the money is held up in the
form
of
skimmed
600 MT per month.
procurement and price. This alone
procurement
(January
cattle feed to societies is more than
to Rs 1085.6 at the current rate of
local milk procurement. The milk
lean
on credit basis. Present supply of
processing/production
throughout the year depending on
fluctuates
and other inputs to the societies
The milk value for 21 days comes
The working Capital requirement
the
Milk Union is supplying cattle feed
maintain
operation.
of
In both, flush and lean, period the
inventory
milk
like
ghee,
powder,
consumables, and cattle feed etc.
is expected to grow at 8 per cent
per annum and at the end of
2016-17 will be 1261 lakh. In
addition
to
this
comes
the
aforesaid inevitable payments. The
Milk Union does not have the
adequate cash reserve to meet all
the expenses mentioned above.
The Union resorts to soft loans
and over drafts to avoid disruption
of milk value payments to farmers
and
to
maintain
supplies
and
services to DCS. The borrowings
attract
interest
limits
the
which
farmer
in
turn
beneficiary
55
Palakkad District
programs
and
investments
in
dairy. In coming years the burden
is poised for increase. Hence it is
requested that an amount of Rs.
110.0 lakh may be paid as a onetime assistance towards working
capital
assistance
for
Palakkad
district. The amount suggested is
far below the milk value for 21
days as shown in table 2.24.
56
Table 2.24 The Amount Required to Pay Milk Value for 21 Days in
Palakkad District
Average
Milk
Days
2013-14
2014-15 2015-16 2016-17 Price/Liter
(Actual)
(Rs)
1.79
1.9332 2.08786 2.25488
28.88
21
45
Milk Procurement (Llpd)
Total Milk
Total Milk
Value (Base Value (EOP)
Year) (Lakh)
(Lakh)
1085.6
1261.5
3. MALAPPURAM DISTRICT
Contents
Executive Summary ..........................................................................59
3.1 General Features .........................................................................63
3.2 Trend in Cattle Population ...........................................................65
3.3 Trend in Milk Production from Bovines ........................................66
3.4 Milk Chilling 66
3.5 Milk Processing
67
3.6 Milk Marketing 70
3.7 Milk Procurement
78
3.8 Cattle Shed and Farm Machineries
86
3.9 Cattle Induction88
3.10 Establishment of Laboratory in Malappuram/Kozhikode Dairy and MCP
Nilambur 89
3.11 Clean Milk Production
91
3.12 Technical Input Services (TIS)
92
3.13
Information and Communication Technology Networking 94
3.14 Manpower Development
965
3.15 Working Capital - Malappuram District
97
Palakkad District
Malappuram District
Malappuram
District
58
Palakkad District
Executive Summary
The Malappuram district is not
Nilambur. The cost comes to Rs
among the frontline dairy districts
87.00 lakh.
of the state. The cattle farming are
at a subsistence level. The official
statistics shows that the cattle
numbers declined by 63 per cent
from 1996 to 2012 and in milk
cows by 29 per cent. The annual
milk production from bovines also
declined from 142.29 thousand MT
(1997-98) to 98.46 (2011-12).
The
MRCMPU
The market share of MRCMPU in
the liquid milk segment is just
under 15 per cent which is not
impressive. In milk consumption
Malappuram was far behind the
other districts in Malabar, several
processing dairy in Malappuram
had a special liking for curd and
district. The milk procured from
milk powder.
the
to
powder consumption is gradually
Kozhikode dairy for processing and
changing in favor of liquid milk.
the processed milk is transported
The
back to the district and marketed.
infrastructure
These crisscross transports not
reason for the low market share of
only attract additional cost but
liquid milk in Malappuram district.
also cause quality deterioration
Hence
and inconsistent supplies to the
strategy supported by adequate
dealers and consumers. Therefore
infrastructure
a new Dairy will soon come up in
canvassing is required.
Malappuram
understood.
have
Malappuram district is 3.9 LLPD.
studies have shown. Malappuram
is
not
supply demand gap for milk in
a
district
do
The market survey shows that
transported
district,
Until
This trend in milk
inadequate
an
is
market
yet
aggressive
and
another
marketing
consumer
New milk
it
is
parlors and Shoppe are suggested
then
the
to be opened in prominent public
present arrangement will continue.
places.
The investments suggested one
print and visual media is also
cold store, one compressor and
suggested. Periodic market survey
one DG set are for the MCP,
and R&D on consumer preferences
Wide
publicity
through
59
Malappuram District
likes
and
preferences
(example
sheds
niche products, attractive packing
sheds
for curd, flavored milk ice cream,
machineries and equipments on
Peda, etc.) are also suggested. The
subsidy price are suggested at a
estimated
total cost of Rs 63.0 lakh.
cost
on
market
promotion in Malappuram district
works out to Rs 394.85 lakh.
constructing
and
new
cattle
supplying
farm
In order to motivate and attract
cattle keeping among the below
The MRCMPU has built up an
poverty line (BPL) families, women
extensive net work of DCS and
and SC/ST communities a cattle
BMCs for milk procurement from
induction program is suggested.
farmers. Most of the DCS have
NABARD norms shall be followed
reasonably
testing
for administering the subsidies.
have
The overall expenditure for 240
facility for MBRT estimation. The
animals is estimated to be Rs
field level milk testing, however,
92.55 lakh.
facilities.
good
All
milk
BMC
DCS
requires further refinement. The
major
milk
constraints
procurement
convenient
identified
in
are
of
buildings
lack
for
DCS,
inadequacy of good quality water,
incentives
for
clean
milk
production and support for cattle
feed
transport.
procurement
The
suggested
activities
in
Malappuram district will cost Rs
137.95 lakh.
It is suggested to establish a
central
milk
testing
lab
at
Kozhikode by pooling the funds
from all the districts. This will
eliminate duplication of expense in
all other labs. Malappuram district
also can avail this facility. All this
and certain additional equipments
and
furniture
required
for
Malappuram are estimated to cost
is Rs 104.00 lakh.
The lack of good cattle sheds and
The
farm machineries are identified to
programs
be a major constraint in dairy
distribution
production
utensils, milking machines, etc. at
in
Malappuram
district. Strengthening of old cattle
other
farmer
beneficiary
suggested
of
stainless
are
steel
a cost of Rs 17.25 lakh.
60
Malappuram District
The
technical
include
input
services
for
animal
support
breeding,
health
care
prophylaxis, fodder
and
development
and other associated activities for
the benefit of participating farmer
members. The activities suggested
except those being attended by the
line
departments
will
cost
Rs
46.00 lakh.
programs would cost Rs 107.0
lakh.
The business plan of MRCMPU
suggests substantial increase in
milk
procurement
Malappuram
and
district.
sale
The
in
milk
prices are to be paid to the farmers
regularly which alone cost Rupees
224 lakh now and is expected to
progress to Rupees 285 lakh at the
The Malappuram district needs to
current rate of growth (8%) in
network the various units and
procurement in the next three
DCS
years (Table 3.21).
for
effective
information
In addition,
sharing and communication. The
keeping a buffer stock of raw and
suggested system is a client server
finished
architecture
safeguard
network
with
six
goods
is
against
essential
any
to
possible
centers at each district (Palakkad,
contingencies in milk business.
Malappuram, Kozhikode, Wayanad,
This,
Kannur, and Kasaragod) and a
requirements force the Milk Union
central server system linking all
to borrow money from the open
these six centers
the data and
market which causes extra burden
information will be made available
to the Union and the farmers.
to all the districts and DCS. The
Hence it is suggested that an
estimated cost is Rs 150.60 lakh.
amount of Rs 285 lakh shall be
The HRD through training and
skill
development
activity
of
is
a
MRCMPU.
routine
Several
as
also
several
other
paid to the milk Union as a
onetime assistance for Working
Capital.
programs were running since few
The
years. It is suggested to scale down
Malappuram district and the cost
certain programs. The suggested
shall be summed up as follows.
suggested
programs
for
61
Malappuram District
Component
Milk processing and packaging
Amount
Rs in Lakh
87.00
Milk marketing
394.85
Milk procurement
137.95
Cattle shed and farm machineries
63.00
Cattle induction
92.55
Constructing laboratories
104.00
CMP kits to farmers
17.25
Technical input services
46.00
Information and communication technology
150.60
Human resource development
107.00
Working capital
285.00
Total
1485.20
62
Malappuram District
3.1 General Features
Panchayats.
Malappuram District, formed in
Municipal wards and 1843 Gram
1969, is surrounded by Nilgiris of
Panchayat wards in Malappuram
Tamil Nadu in the east, Arabian
district.
Sea in the west, Kozhikode and
Wayanad districts in the north and
Palakkad and Thrissur districts in
the south. The district has an area
of 3350 sq.km. which is 9.13 per
cent of total area of the State. Like
most other districts of the State,
Malappuram district consists of
three natural divisions – low land,
midland
and
high
land.
The
topography of the district is highly
undulating
starting
from
the
hilltops covered with thick forests
on the east along the Nilgiris. It
gradually
slopes
down
to
the
valleys and the small hills, before
finally ending on the sandy flat
surface
of
luxuriant
coconut
groves in the west.
There
are
278
The official census 2011 shows
that Malappuram district
has a
population of 41.10 lakh of which
19.61 lakh are male and 21.49
lakh female and a sex ratio of 1096
per
1000
males.
Malappuram
accounts for 12.31 per cent of the
total population of the State. The
decadal growth in population is
13.39 per cent in comparison to
the State average of 4.86 per cent
and national average of 17.64 per
cent. The density of population as
per 2011 census is 1158/sq. km.
in comparison to 1021 during
2001.
The
literacy
rate
in
Malappuram is 93.55 per cent
(2011 census). The 2011 Census
shows that 55.81 per cent of total
Malappuram district consists of six
population lives in rural areas and
Taluks
44.19
(Nilambur,
Ernad,
Tirurangadi, Tirur, Perinthalmanna
and Ponnani), seven Municipalities
(Malappuram,
Perinthalmanna,
Manjeri, Ponnani, Tirur, Kottakkal
and
Nilambur)
Panchayats
and
fifteen
100
Block
Grama
percent
in
urban
agglomerations.
The district has more or less the
same climatic conditions prevalent
else-where in the state, viz., dry
season
from
December
to
February, hot season from March
63
Malappuram District
to
May,
and
Monsoon
the
South
from
November.
West
October
hectares.
Another
important cash crop is arecanut.
Monsoon is usually very heavy and
Despite the support of government
nearly 75 per cent of the annual
with subsidy and services, with the
rainfall is received during this
exception
season. The climate is generally
production is declining.
and
humid;
South
26305
West
hot
The
to
in the district, has got coverage of
the
range
of
temperature varying between 30
0C
and 20 0C. The Average annual
rainfall is 2900 mm (Farm Guide,
2012).
The
of
rubber,
livelihood
marginal
and
crop
support
landless
of
the
farmers
(small income group) is livestock.
The
surging
from
household
foreign
income
remittances
and
Agriculture continues to be the
plantation crops like rubber has
mainstay
sidelined
of
the
population,
livestock
production.
involving 75 per cent of the people,
Less
directly or indirectly and is the
households own some form of
endeavor of small holders. The
livestock.
vast majority of the peasants are
prominent species and milk the
small
major livestock output.
land
holders.
2.36
lakh
hectares are holdings below one
hectare. Only 16,107 hectares of
holdings are above 2 hectares. The
main
crops
Coconut,
Cashew
raised
are
Tapioca,
nut,
Banana,
Paddy,
Arecanut,
Rubber,
Pulses, Ginger, Pepper and Betel
vine. Coconut tops with a total
area of one lakh hectares. Paddy is
cultivated
Paddy
in
has
31,098
lost
hectares.
predominance
among crops during the last two
decades. Rubber, a main cash crop
than
20
Cattle
per
are
cent
the
of
most
The vast network of institutions
under the state Animal Husbandry
Department services the livestock
farmers
in
the
district.
The
important institutions include one
District Veterinary Center, ninety
four
Veterinary
Dispensaries,
eleven Veterinary Hospitals four
Veterinary
hundred
Poly
and
Insemination
district
Clinics,
sixteen
Units
poultry
one
Artificial
and
farm.
one
The
64
Malappuram District
department of Dairy Development
3.2 Trend in Cattle
has a district office and fourteen
Population
Dairy Extension Service Units in
various parts of the district and
look
after
the
dairy
extension
services. The MRCMPU has one
chilling plant, one P&I Unit at
Nilambur
and
two
marketing
depots at Kottakkal and Nilambur
for milk procurement and sale.
One hundred and seventy nine
The
cattle
Malappuram
population
declined
in
sharply
between 1996 and 2012 (Fig. 3.1)
both the total (63 per cent) and
cows
in
milk
(29
per
cent)
showed similar trends from 1996
to 2007 but animals in milk
substantially increased between
DCS functioning in villages collect,
2007 and 2012.
test the quality and dispatch milk
buffalo had mixed fortune. The
to the processing Dairies, pay the
numbers sharply declined from
price of milk at regular intervals to
9615 to 1821 between 1996 and
the dairy farmers and channel the
2007 and thereafter substantially
support and services from the line
gained till 2012.
departments and the milk Union.
accuracy
of
The in milk
Although the
data
on
cattle
Fig 3.1 Cattle population Malappuram District
(source Cattle Census AHD GOK)
250000
Nu m b ers
200000
150000
100000
50000
0
1996
2003
2007
2012
Total Cattle
229765
134703
105329
84131
Cows in milk
62206
40742
33543
57000
Buffalo in milk
9615
1857
1821
4200
65
Malappuram District
numbers is questionable, it is
witnessed
certain
increase
that
the
many
dairy
sharp
in
to
milk
production.
farmers in Malappuram district
Surprisingly,
opted out of dairying after 1996
animals in milk went up but milk
due to economic and other factors.
production
difficult
3.3 Trend in Milk Production
According to the ISS estimates
3.2)
the
production
in
annual
milk
Malappuram
increased from 142 thousand MT
in 1997-98 to 174 thousand MT in
2001-02 and declined to 98.46
thousand MT in 2011-12. The
trend in Malappuram
district is
contrary to that observed in other
districts.
In
declined
situation
Malappuram,
that
to
is
a
explain.
Although the accuracy of the data
is questionable, we have to accept
from Bovines
(Fig.
in
moderate
almost
all
other
districts the last two to three years
these figures as we do not have
any alternate estimates.
3.4 Milk Chilling
The milk chilling capacity within
Malappuram during 2013-14 is
shown in table 3.1.
During the year the volume of milk
chilled and supplied to Kozhikode
Dairy was 23,700 liter (53 per cent
of installed chilling capacity). The
Fig 3.2 Milk Production Malappuram district from Bovine
(source ISS AHD GOK)
200
180
160
Milk '000MT
140
120
100
80
60
40
20
0
97-98
2001-02
2004-05
2008-09
2011-12
142.29
173.59
111.43
124.73
98.46
66
Malappuram District
Table 3.1 Chilling Facility in
marketable surplus of milk. The
Malappuram 2013-14
milk procured from the district is
Sl.
No.
1
2
Capacity
being transported to Kozhikode
BMC DCS (5)
14000 liter
Dairy, processed and transported
Milk chilling plant,
Nilambur
30000 liter
back
Source
Total
44000 liter
to
Malappuram
and
marketed. Such two-way movement
of
milk
incurs
additional
vast majority of DCS (172 out of
transportation cost with the Union
219) in Malappuram district are
and the milk producers bearing it.
not linked to the BMC system of
Now the Union is selling 67,825
milk
liter of milk daily in the district. In
procurement
and
instead
and
addition to the Kozhikode Dairy,
transport to dairy dock/MCP. The
where the Malappuram milk is
lack of sufficient volume of milk is
processed,
the reason cited for not installing
Palakkad Dairies also market milk
more number of BMCs. A policy
in the district from different entry
decision to start a processing dairy
points. The supplies to the retail
in
has
outlets are made through direct
will
routes as well as the Marketing
dairy
Depots (Cold Store Units) newly
the
district.
established at Kottakkal, Pattambi
additional
chilling
and
resort
to
can
collection
Malappuram
district
already
been
taken
which
change
the
scenario
of
production
Therefore,
in
the
Wayanad
Nilambur.
and
Kozhikode,
capacity is not recommended at
Palakkad and Kannur Dairies, the
this stage.
feeder
district, have limitations to take
3.5 Milk Processing
additional load and for further
Malappuram is the only district
under MRCMPU without a milk
processing facility as the growth in
milk sales was not impressive and
the
district
had
very
small
Dairies
expansion.
for
The
Malappuram
long
distance
transport causes quality issues as
well. In the wake of the recently
introduced
Food
Safety
and
Standards Act (FSSA), quality will
67
Malappuram District
be a major factor in deciding the
farmers
future marketability of milk. The
processing facility in Kozhikode/
absence
the
Palakkad
dairies
points
enhanced
for
of
a
dairy
near
market/consumption
in
Malappuram
are
the
to
be
which
the
causes hardships to the retail
installation of equipments shown
outlets and customers. From the
in table 3.3 are suggested. These
marketing and customer point of
equipments could eventually be
view, the dairy should be as near
shifted
to the customer as possible. The
Malappuram dairy.
Dealers are not satisfied by the
morning
alone.
and
evening
deliveries
They
prefer
multiple
deliveries every day. Under this
compelling situation, it became
imperative to have the processing
facility in Malappuram compelling
the
Milk
Union
and
the
Government of Kerala to take a
decision.
Storage/Deep
Freezer
A depot has been established in
the existing Milk Chilling plant at
Nilambur.
The
available
cold
storage facility is inadequate to
cater to the demand for milk and
ice
cream
products
distributed
through the depot. Hence it is
and
the
proposed
inventory
chilling
store,
deep
freezers
and
refrigeration compressor.
Tables 3.2 and 3.3 present the
Nilambur
upcoming
and Refrigeration Compressor
cold
Nilambur
equipment
the
suggested to install additional new
3.5.1 Milk Chilling Plant,
existing
a. Cold
to
at
the
plant
and
Malappuram respectively. In the
wake of the decision to establish a
b. DG Set
The existing DG set capacity will
be in adequate after installing
the cold store, deep freezers and
refrigeration compressor. Hence,
new dairy, major upgrading is not
the DG set is to be replaced with
suggested. However, to ensure the
a 320 kVA DG set.
continued milk procurement from
68
Malappuram District
Table 3.2 Existing Equipments in Nilambur Milk Chilling Plant
Sl. No.
1
Equipment/Facility
Capacity
Quantity
Reception
1.1
Can roller conveyor
600 cans/hr
1
1.2
Can tipping bar
600 cans/hr
1
1.3
Can drip saver
600 cans/hr
1
1.4
Dump tank
2 Kl
1
1.5
Weigh bowl (SS 304)
600 Kg
1
1.6
Scale for weigh bowl
600 kg
1
1.7
Can scrubber (SS 304)
500 L
2
1.8
2
Can steaming block
Processing/Storage Equipment
Single can
1
2.1
Milk chillers
10 KLPH
1
2.2
Milk pump
10 KLPH
2
2.3
Vertical milk storage tank
10 KLPH
2
2.4
Ghee pump
3000 LPH
1
2.5
Ghee clarifier
2000 LPH
1
2.6
Milk pumps
10000 LPH
2
2.7
12 TR
2
2.8
Refrigeration compressors
(make/model/type/cap.)
Ice bank tank
100 KL
1
2.9
IBT coil
2000 Mtr
1
90 Tr
1
2.10
ATN condenser coil
2.11
Condenser pump
30 KLPH
3
2.12
Chilled water pump
30 KLPH
2
2.13
Chilled water agitator
5 HP
2
2.14
DG set
150 KVA
1
2.15
Transformer
200 KVA
1
2.16
HT protection gear
600 A
1
2.17
LT panel
415 V
1
2.18
Motor control centres
415 V
1
2.19
Push button stations
6 Buttons
1
2.20
Water storage tank
50 KL
1
2.21
Water pumps
20 KLPH
2
69
Malappuram District
Table 3.3 Equipments Suggested under NPDD for Milk Processing in
Malappuram District
Sl.
No.
Component
1
Milk pump
2
SS pipes and fittings
3
Refrigeration compressors
with accessories
Cold store (including
equipments)
DG set
4
5
Specification
No. of
Units
10 KLPH
4
50000
Total
Cost (Rs
in Lakh)
2.00
Lot
1
500000
5.00
30 TR
1
3000000
30.00
5 TR
1
2500000
25.00
320 KVA
1
2500000
25.00
Unit Cost
(Rs)
Total
87.00
3.6 Milk Marketing
Dairies (Kozhikode, Wayanad and
3.6.1
Palakkad), one Product Dairy at
Organization of Milk
Kozhikode and three milk depots
Marketing
(Kottakkal,
The organization of milk marketing
activities
in
Malappuram
illustrated
as
fig.
3.3
In
is
the
three
Pattambi)
together
marketing
of
and
share
milk
and
the
milk
products in the district.
absence of a dedicated Dairy for
Malappuram,
Nilambur
processing
Fig. 3.3 Organization of Milk Marketing Activities in Malappuram District
Prod. Dairy
Ghee, Peda,
Palada, Flv
Milk
WYND Dairy
Milk, Curd,
Ghee, Butter
Milk
Kottakkal Depot
PKD Dairy
Milk, Curd,
Ghee, Butter
Milk
Pattambi Depot
Wholesalers
Retailers
KKD Dairy,
Milk, Curd
Ice cream,
Butter Milk
Nilambur Depot
70
Malappuram District
The
milk
depot
is
a
recent
district
is
partially
serving
marketing concept introduced in
Malappuram. The Kottakkal depot
MRCMPU. Each depot will have
receives the major supplies from
one or more portable cold rooms to
Wayanad
store milk and products apart from
product
the freezers for ice cream. The
Depot receives the bulk of the
processed milk and milk products
supplies
are bulk transported from the
processing
processing centers, stored and re-
and
distributed to the retailers. The
Wayanad Dairy. Pattambi receives
interior
supplies from Palakkad Dairy and
and
difficult
to
reach
places are reached using small
transport
vehicles
system
offers
(Ape).
Dairy
and
Kozhikode
Dairy.
The
Nilambur
from
and
small
Kozhikode
product
dairies
consignment
from
Kozhikode Product Dairy.
The
flexibility
in
3.6.2 Supply Chain and Sales of
distribution of liquid milk. The
Milk and Products
retailers can afford to make late
In general milk, curd and butter
indent
the
milk are directly distributed from
and
the
after
requirement.
assessing
The
quick
depots/dairy
to
the
retail
prompt supplies ensure cold chain
outlets using PUF insulated mini
maintenance.
trucks. The milk products reach
The
remote
and
interior
consumers are better served this
way apart from saving the retailers
from
the
waiting
uncertainty
for
the
milk
of
long
truck.
Malappuram has two depots, one
at Kottakkal and the other at
Nilambur. A third one situated in
Pattambi
of
the
neighboring
the
retail
points
through
the
wholesalers. In addition, the retail
outlets adjacent to the processing
Dairies are directly served by the
Dairies as shown in fig. 3.3. This
being
the
sometimes
through
general
milk
the
is
practice,
distributed
wholesalers
and
products through the milk depots
in Malappuram district depending
71
Malappuram District
on the ease of operation and
that the market for liquid milk in
economy.
Malappuram district during 2013-
Milk and milk products sold in
Malappuram are shown in table
3.4. It may be seen that milk sales
reported a quantum jump from
2009-10
to
2013-14.
Similar
increases are seen in almost all
milk products as well, except Sip
Up. The observed spurt is partially
due
to
the
re-organization
14 was 85,825 LPD (Milma 67,825
plus 18,000 by the competitors). In
this
method
the
sales
of
competitors are assessed through
a series
of interviews and its
accuracy generally is moderate.
The sales in this case pertain
mostly to urban areas.
of
Yet another way of calculating the
marketing area and consequent
market is by understanding the
addition of depots (earlier booked in
end user purchases. The sample
neighboring districts – Kozhikode,
survey conducted by the study
Palakkad
group (June 2014) shows that the
and
Nevertheless
Wayanad).
the
recent
re-
per
capita
consumption
among
organization of marketing function
rural people is 105 ml and urban
in Malappuram has yielded results
77
in terms of hike in sales.
calculated as shown in table 3.5.
ml.
The
market
size
is
3.6.3 Market Size and Market
Share
Market size is the total volume of a
given
market.
Market
size
calculated on a standard practice,
competitive
sales
approach
(bottom up approach), and shows
Table 3.4 Milk and Milk Products Sold in Malappuram District
Milk/Product
2009-10
2013-14
Liquid milk (LPD)
32356
67825
Curd (Liter/day)
9710
14672
72
Malappuram District
Ghee (Kg/month)
30000
40502
Ice cream (Liter/month)
5200
20332
Butter milk (200 ml Pkts./day)
3927
5683
Milk peda (Kg/month)
2400
4404
Sip up (Pkts./month)
125000
86354
300
972
4600
16885
Palada (Kg/month)
Milma plus (Bottles/month)
73
Malappuram District
Table 3.5 Supply Demand Position in Malappuram District 2014
Sl.
No.
1
Description
Population number
2
Cattle holdings %
3
Potential consumers (1 x 0.8)
4
Actual % consumers as per HH survey
5
Actual consumers (3 x 4/100)
6
8
Per capita cons – survey result (ml per day)
Household consumer demand LPD
(6 x 5/1000)
Inst. demand 20% of urban consumption
9
Total demand (7+8)
7
10
Milma supply
11
Market share %
The
total
Rural
Urban
Total
1013721
2072572
3086293
20
0
NA
810977
2072572
2883549
93
77
754208
1595880
105
77
79192
122883
202075
0
24577
24577
79192
147459
226651
2350089
67825
30
estimated
market
in
that the supports under the NPDD
Malappuram district is huge, 2.26
and
LLPD
should be geared up to improve
while
the
MRCMPU
the
marketing
marketed 67,825 LPD and their
the
competitors 18,000 LPD adding up
Malappuram district.
market
strategies
coverage
in
to 85,825 LPD leaving a gap of
1.41 LLPD. The market share of
3.6.4 Marketing Infrastructure-
Milma competitors seems to be
under
estimated.
survey
Table 3.6 shows the current status
shows that a sizeable section of
of marketing facilities available for
Malappuram population, 35 per
milk
cent, continues to consume milk
Malappuram district. Malappuram
powder.
has
The
The
Current Status
market
share
of
and
a
milk
moderate
products
in
network
of
Milma is just 30 per cent of the
institutions, wholesalers and retail
market
entire
outlets, set up for marketing milk
institutional segment is catered to
and milk products in the district.
by the private dealers from within
The
and outside the state. The market
shows
exploitation
potential waiting to be exploited
size.
by
The
Milma
suggests
market
that
analysis,
however,
there
a
is
huge
74
Malappuram District
especially because the rural sector
market
is opening up for milk and milk
infrastructure
products and the use of milk
strengthened.
powder is gradually but steadily
giving way to liquid milk. Also, the
changing food habits are moving in
favor of milk and products like
curd and ghee. To exploit the
potential
in
full,
the
needs
to
be
3.6.5 Key Issues and
Recommendations
Table 3.7 is self-explanatory. Few
items deserving special mention
are explained below.
Table 3.6 Existing Marketing Facility Malappuram District 2013-14
Sl.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Facility/Equipment
Quantity
Wholesalers for product (No.)
Retail outlets milk and products (No.)
Milk parlors (No.)
Milma shoppe (No.)
Marketing depots/Hub (Mobile cold storage) (No.)
PUF vehicle container (3 MT) (No.)
PUF Vehicle Container (1.5 MT) (No.)
% milk routes using PUF vehicles for milk distribution
34
279
2
6
2
25
1
100
393
191
54
154
99
20
30
25
PUF box 50 ltr. (No.)
PUF box 100 ltr. (No.)
PUF box 150 ltr. (No.)
PUF box 25 ltr. (No.)
200 liter freezers for dealers (No.)
200 liter freezers glass top for dealers (No.)
120 LTR. freezer (No.)
Deep freezer 320 ltr. (No.)
Table 3.7 Marketing Infrastructure Proposed for Malappuram District
under NPDD Programme
No.
Description
1
1.1
1.2
1.3
1.4
1.5
Depot/Parlor
Milk parlor civil
Milk parlor equipments
Shoppe support
Space in super market
Decorated mobile product vehicle
No. of
Units
Unit
Cost (Rs)
Total
Cost (Rs
in Lakh)
12
12
6
15
3
50000
10000
500000
20000
50000
6
1.2
30
3
1.5
75
Malappuram District
No.
Description
2
Marketing Infrastructure for
Preserving/Maintaining Quality
of Milk
PUF vehicle container (3 MT)
PUF box 25-4600 ltr.
Shipper box for ice cream
200 liter freezers for dealers
200 liter freezers glass top for
dealers
120 LTR freezer
500 ltr. freezer for dairy
Deep freezer 320 ltr.
Deep freezer 320 ltr. (Glass top)
Visi-cooler 220 ltr.
Freezer subsidy
Refrigerator subsidy
Visi-cooler 320 ltr.
Canopy with eutectic freezer
subsidy
Awareness Programme for
Consumers
Consumer awareness programme
& publicity
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
2.11
2.12
2.13
2.14
3
3.1
No. of
Units
Unit
Cost (Rs)
Total
Cost (Rs
in Lakh)
3
375
30
90
250000
LS
6000
13000
7.5
12.75
1.8
11.7
120
90
10
120
90
120
30
30
90
17000
11000
23000
17000
20000
20000
5000
3000
30000
20.4
9.9
2.3
20.4
18
24
1.5
0.9
27.00
15
100000
15
90
50000
180.00
394.85
Total
a. Milk Parlors
provide
The milk parlors will be positioned
stimulus for higher sales of Milma
in strategic locations to attract
milk and milk products in the
more
Milma
district. Therefore 12 more parlors
products. Apart from selling the
are suggested to be established
Milma products the Parlors will
in
also act as a media to improve the
civil
visibility
equipments are suggested at a cost
consumers
of
to
Milma
products.
Buyers will be served milk and
milk
products
friendly
in
a
environment.
consumer
All
the
parlors started during Phase I
IDDP are performing well and they
the
the
necessary
district.
structure,
market
Support
for
furnishing
and
of Rs 50,000 per parlor.
b. Milma Shoppe
The Milma Shoppe in towns can be
considered as a bigger version of
76
Malappuram District
milk
parlors
to
the
IDDP scheme during the yester
visibility of the products and to
years, the entire milk transport
increase the sales. Improving the
from
visibility
Palakkad dairies, the feeder dairies
of
increase
Milma
milk
and
Kozhikode/
Wayanad/
products is important to scale up
to
its
the
switched over to PUF insulated
business is crucial to sustain milk
vehicles. The PUF boxes of varying
production
livelihood
sizes, 50-150 liter provided at 50
support to the resource poor milk
per cent subsidy, in the retail
producers
outlets
business.
and
Improving
the
operating
under
the
Malappuram
district,
together
with
the
has
PUF
hard conditions of Malappuram
bodied transport vehicles ensure
district. Keeping this in mind, the
perfect end-to-end cold chain and
MRCMPU started ‘Milma Shoppe’
quality supply of dairy products to
in Malappuram district. Shoppe is
consumers.
a brand shop of Milma with all the
body
Milma products available at the
for
outlet and it works round the
unserviceable ones and to operate
clock. It has won the appreciation
new routes.
of one and all and is found to be
an effective tool to publicize its
products. It is suggested that six
more shops may be started in
towns during the project period.
c. PUF Bodies
Among
the
is
Three
more
suggested
replacement
as
of
PUF
standby
old
and
d. PUF Boxes/Visi-Coolers
MRCMPU
has
effectively
demonstrated that PUF Boxes is
the most suited and the cheapest
method to maintain uninterrupted
cold chain from the point of origin
various
marketing
to
the
point
of
consumption.
infrastructures provided under the
Freezers
CSS,
PUF
preserve small volume milk. The
milk
PUF boxes supplied under the
distribution routes and PUF boxes
IDDP/SIQCMP are providing good
in the retail outlets are worth
service
mentioning. With the addition of
exposure visits revealed that the
the
retailers wholeheartedly welcome
the
insulated
PUF
introduction
vehicles
containers
of
in
under
the
are
to
this
uneconomical
end.
Our
to
field
77
Malappuram District
the PUF boxes because they are
market share in the ice cream
viable alternatives for the energy
segment.
The
consuming freezers. They occupy
identified
against
less space, easily movable and
expansion in Malappuram district
easy to clean. The boxes maintain
is the lack of user friendly and
the temperature cold for about 3-4
energy saving freezers at retail
hours during which the milk is
points.
generally sold out. It is proposed
SIQCMP the Milk Union invested
that all retailers shall be provided
in retailer level freezers and as a
with new or additional PUF boxes
to achieve 100 per cent cold chain
maintenance.
Visi-coolers
During
major
hurdle
the
market
IDDP
Phase
I,
result the sales of ice cream have
increased from 5200 liter/month
in 2010-11 to 20,332 liter/month
in 2013-14. Yet there is more to be
are
excellent
achieved. A three pronged market
equipment to keep the cold of
intervention
products like flavored milk. Hence
wholesale dealers, equip all retail
they (the PUF boxes and Visi-
points with suitable size freezers
coolers) are suggested as part of
and wide publicity through TV
market promotion.
channels is suggested. Freezers of
varying
e.
–
sizes
appoint
are
more
additionally
Freezers for Ice Cream
required. In addition canopy fitted
Promotion
vehicles
are
recommended
for
MRCMPU markets milk products
special sales in tourist spots and
such as ghee, curd, butter milk,
prominent on road locations.
milk peda, palada mix, flavored
milk and ice cream. The share of
f. Consumer Awareness and
Publicity
milk products in the total turnover
of the Union is around 24 per cent
Consumer awareness camps are
and is crucial for its financial
being
security and liquidity. Among all
organized to explain the chain of
the products, ice cream is the
activities
most
Unfortunately,
procurement from farmers to sales
Milma has less than 5 per cent
at retail outlets. The consumers
promising.
get
an
held
and
involved
opportunity
dairy
in
to
visits
milk
gather
78
Malappuram District
firsthand information on quality
Malappuram, it is being looked
assurance
various
after by the P&I Unit functioning
reception,
at MCP Nilambur. The Unit has
marketing.
established a network of village
followed
stages
of
at
milk
processing
and
Advertisement boards and banners
are exhibited in busy places for the
publicity of the milk and milk
products. Awareness activities are
inadequate to reach all segments
of consumers and general public.
Also Malappuram district has its
specificities in food habits. Hence,
it
is
suggested
awareness
that
programs
consumer
should
go
beyond the usual styles and enter
into newer frontiers to attract more
consumers into the fold of Milma.
An aggressive consumer education
cum
advertisement
program
through all channels of media
shall be launched in Malappuram
for
two
purposes
–
creation among all
awareness
sections of
level
DCS
in
the
district
to
procure milk from dairy farmers.
The
organization
of
milk
procurement is explained in fig.
3.4.
BMC DCS means a DCS in which
the BMC is installed, Cluster DCS
means a DCS which supplies milk
to the BMC, and the direct DCS
means a DCS which supplies milk
directly in the Dairy/MCP. The
milk
producer
delivers
the
household surplus milk either in
the BMC DCS, Cluster DCS or
Direct DCS.
turn
The Cluster DCS in
delivers
nearest
the
BMC.
The
milk
to
direct
the
DCS
people and market promotion - as
supply milk direct to dairy dock.
a
economic
32 DCS dispatch milk direct to the
improvement for which an amount
Dairy in Kozhikode. The Pattambi
of Rs125 lakh is suggested.
milk chilling plant collects milk
tool
for
socio
from 28 DCS in Malappuram apart
3.7 Milk Procurement
3.7.1
Organization of Milk
Procurement
Milk procurement is one of the
key functions of MRCMPU and in
from the 74 from Palakkad district.
Kottakkal MCP collects milk from
22
DCS.
The
Nilambur
milk
chilling plant collects milk from
122 DCS all in Malappuram. Both
79
Malappuram District
Fig. 3.4 Organization of Milk Procurement – Malappuram
KKD DAIRY
NMBR MCP
PTMB MCP
BMC DCS
Cluster DCS
Milk
Producers
Direct DCS
Direct DCS
Key words: NMBR MCP – Nilambur Milk Chilling Plant; KKD –
Kozhikode; PTMB MCP – Pattambi Milk Chilling Plant
chilling
plants
and
Although the Milk Union takes
to
every possible step to collect the
Kozhikode Dairy. The district has
entire milk from the producers,
six BMCs functioning in five DCS.
flush season stresses and long
BMC DCS chill the milk before
distance
transporting to Kozhikode Dairy.
Malappuram to Kozhikode often
The Dairy in turn processes and
creates
markets the milk in towns and
disruption of procurement. The
other
past experience of MRCMPU in
Nilambur)
are
urban
(Pattambi
feeder
areas
units
within
and
transport
operational
from
issues
and
outside the district. The whole
other
chain of activities - procurement,
demand created by a steady and
processing and marketing - is well
progressive milk collection coupled
orchestrated and well executed.
with remunerative milk price and
districts
shows
that
the
80
Malappuram District
regular payment stimulate local
The DCS classified according to
milk
daily procurement shows that 20
production.
strategy
can
Malappuram
the
The
be
same
adopted
district
pre-requisite
is
in
per cent were collecting less than
and
100 LPD and yet another 28 per
central
cent between 100 and 200 LPD.
too
a
processing Dairy.
The study shows that those DCS
are not economically viable. The
3.7.2 Profile of DCS in
reasons for the poor procurement
Malappuram
rate
can
be
attributed
to
the
Table 3.8 shows the profile of the
location of DCS in non-farming
DCS in Malappuram district. From
area, induction of non-producers
among the 43,854 registered milk
as members and other options for
producers in the district, on an
selling milk.
average
those DCS needs to be considered.
8700
(19.8%)
alone
supplied milk during 2013-14. The
low proportion of suppliers is due
to
non-removal
producers
from
because
of
of
the
the
DCS
the
nonroll
cumbersome
statutory procedures. The average
procurement per DCS was 214
LPD and per supplier 4.83 LPD
during 2013-14. The local sale,
11243 LPD, accounted for 24 per
cent
of
the
daily
procurement
indicating fair demand for milk
from the locality due to falling milk
production.
The
rate
of
procurement per DCS is poor in
comparison with other districts of
the region.
The relocation of
Out of 219 DCS, 69 (31%) function
in own building; 121 (55%) have
electricity
and
water
arrangements. The absence of own
building, lack of electricity and
lack
of
good
quality
water
in
adequate quantity are identified to
be the reasons for poor hygiene
and poor microbial quality of milk.
The average MBRT of milk from
majority number of DCS is 65
minutes (Table 3.8).
3.7.3
Milk Procurement
Coverage
Malappuram has 1845 Panchayat
wards of which 50 per cent are
under milk procurement coverage.
81
Malappuram District
Table 3.8 Profile of DCS in Malappuram District March 2014
Sl.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Description
Quantity
219
200 (43854)
39 (8700)
46820
11243
35577
214
5.38
28.69
NA
46
61
42
53
17
3.95
8.3
5
14000
12500
27
28
29
No. of functional APCOS (31-3-2014)
No. of farmer members/DCS
Av. number of suppliers/DCS
Milk procured from farmers in DCS (LPD)
Local sales (LPD)
Milk supplied to milk union (LPD)
Av. farmer procurement/DCS (LPD)
Av. procurement/supplier (LPD)
Av. procurement price paid to DCS (Rs/Kg)
Av. price - Local sales (Rs/liter)
No. of DCs collected <100 LPD
No. of DCS collected 101 - 200 LPD
No. of DCS collected 201 - 300 LPD
No. of DCS collected 301 - 500 LPD
No. of DCS collected >500 LPD
Av. fat%
Av. SNF%
No. of BMCs
Installed capacity
Av. collection through BMC in MPM district
(LPD)
No. of DCS making supply at dairy dock & MCP
No. of DCS provided AMCU (including DDD)
No. of DCS provided analyzer only (including
DDD)
No. of DCS provided EMT
No. of DCS provided EMT only (no analyzer)
No. of DCS provided Gerbers test equipment
only
No. of Panchayat wards in the district
% coverage under milk procurement
% wards having potential for milk collection
30
No. of DCS in own building
31
No. of DCS having adequate water supply
arrangements
No. of DCS having standby generators
No. of DCS having electricity
No. of milk cans supplied during last five years
Milk spoiled (LPD)
Av. MBRT - milk supplied through BMC
Av. MBRT - milk supplied at dairy dock
21
22
23
24
25
26
32
33
34
35
36
37
13
56
19
85
29
135
100
70
15
69
123
2
121
470
15
120
65
82
Malappuram District
As nearly 25 per cent of the
As the price paid to the dairy
geographical area is forest and as
farmer is based on the quality of
the costal belt has few cattle, only
the milk, facility for assessing it at
about 15 per cent of the left out
the
wards
cooperatives in Malappuram follow
have
the
potential
for
starting new DCS.
DCS
is
crucial.
The
any of the three known procedures
of
3.7.4 Milk Quality and Quality
Administration in DCS
quality
assessment,
namely
conventional milk testing (Gerber’s
test
for
fat
and
LR
for
SNF
The MRCMPU follows two axes
determination), Milk-O-Tester for
pricing i.e., farmers are paid on
fat and LR for SNF and Automatic
the basis of milk fat and SNF in
Milk Collection Units (AMCU) for
the milk. The village cooperatives
quality and price determination.
are equipped to determine the fat
The AMCU is the most desirable
and SNF. Few DCS are equipped to
because it is convenient, error
detect
proof,
added
preservatives,
quick
and
transparent.
adulterants and neutralizers as
Table 3.9 shows that 56 out of 217
well.
APCOS possess AMCU.
Table 3.9 Average Quality of Milk in Malappuram, 2013-14
Parameter
Fat % APCOS
Fat % non-APCOS
SNF % APCOS
Values
3.95
NA
8.30
SNF % non APCOS
NA
Av. MBR time BMC DCS (Mts)
93
Av. MBR time direct DCS (Mts)
60
No. of APCOS using/ supplied
AMCU
No. of APCOS using/ supplied
Milk O tester & LR
No. of APCOS using/ supplied
Gerber’s test & LR
56
85
18
83
Malappuram District
Although
most
of
DCS
we are of the opinion that the
possessing AMCU use them for
analyzers need to be re-introduced
milk collection very few use the
after rectifying the practical issues
auto
in
analyzer
the
(one
of
the
consultation
with
the
instruments of AMCU) reportedly
manufacturers
due to the slowness in testing.
Almost
Some units are reported to be
equipments for MBRT estimation.
erratic in fat and SNF estimation
But not all of them have started
while
using them.
some
others
inconsistent
results.
performance
of
The
the
have
poor
analyzers
causes hardships to the farmers
and
DCS
and
the
DCS
have
discontinued its usage or changed
the configuration of the system by
substituting
EMT
instead
of
analyzer. The EMT test fat only
and SNF has to be calculated after
taking
manual
lactometer.
In
reading
such
cases
of
the
farmer cannot understand the fat
and
SNF
content
in
the milk
supplied and cannot get an instant
print out from the AMCU thus
defeating
the
introducing
very
purpose
AMCU
of
and
automation. AMCUs are excellent
gadgets to ensure transparency in
milk procurement in village DCS.
It avoids the hassles of quality
checking,
volume
measurement
and payment of milk price. Hence
all
and
BMC
suppliers.
DCS
possess
About the quality of milk procured
from Malappuram district, the fat
content averaged 3.95 per cent,
and SNF 8.3 per cent which needs
improvement. The average MBRT
of milk from BMC is 95 minutes
and that of dock supplied milk is
60 minutes which again is not
appreciable. In the years to come
both compositional and bacterial
quality will have a telling influence
on
the
Farmer
marketability
education
of
and
milk.
use
of
AMCU can further improve the
compositional quality while the
best way to usher in microbial
quality is to incorporate this as a
third
parameter
in
the
price
formula. Towards this end, it is
suggested
incentive
to
for
introduce
the
good
an
quality
(microbial) milk under the NPDD
as a beginning.
84
Malappuram District
3.7.5 Key Issues and Suggestions
a. Buildings
The key issue in Malappuram is the
As pointed out in the forgoing
low rate of procurement per DCS
sections a sizeable number of DCS
and supplier and the burgeoning
function in rented buildings. Most
mismatch between demand and
of them do not have the minimum
supply. To address this, Rs 487.89
facilities
lakh
collection
has
been
for
and
hassle
free
dispatch.
milk
BMC
invested
in
under
the
installation is virtually impossible
IDDP and SIQCMP schemes. The
and effluent disposal is a serious
IDDP support is available for two
issue. Therefore, it is suggested to
more years (2014-15 and 2015-16).
include provision for subsidizing
After considering all those facts and
new DCS buildings at the rate of
the
milk
Rs one lakh per DCS. Eighteen
production further in Malappuram
DCS are identified to have the land
the
and financial capacity to do this
Malappuram
need
district
to
push
following
3.10)
are
the
suggestions
put
forward
(Table
for
the
during the project period.
consideration of NPDD.
Table 3.10 Suggested Support for Milk Procurement under NPDD
Malappuram District
Sl.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Milk Procurement
Building construction
Water supply system
Bore well
Open well
Working capital assistance
Aluminium cans
Automatic milk collection units
Electronic milk tester
Electric centrifuge
Weighing scale
Hand held billing device
Management grant to DCS
Subsidy to milk transport
Subsidy to cattle feed transport
Incentive to better quality milk
Total
No. of
Units
18
10
10
15
3
300
3
4
8
3
8
8
370000
21500
1000 LPD
Unit
Total Cost
Cost (Rs) (Rs in Lakh)
100000
18.00
60000
6.00
25000
2.50
10000
1.50
30000
0.90
2500
7.50
125000
3.75
15000
0.60
2500
0.20
15000
0.45
10000
0.80
30000
2.40
0.5
1.85
400
86.00
0.5
5.50
137.95
85
Malappuram District
quantity that will be sold in
b. Water Supply System
Developing
water
water
supply
source
is
becoming
Malappuram
district
in
three
years comes to 21,500 MT. An
in
amount of Rs 0.4/kg is the
Most of the DCS
suggested subsidy for transport
increasingly
important
Malappuram.
and
mobilize
cost. The total for three years
adequate capital for investment.
works out to Rs 86 lakh. The
Hence, a subsidy of Rs 60,000
amount
per unit is suggested for 10
subsidy so that the price of cattle
numbers at an estimated cost of
feed can be kept low.
find
it
difficult
to
Rs 6.0 lakh. Water harvesting,
installing
water
tanks
and
pumping facilities are envisaged.
In addition digging 10 bore wells
at the rate of Rs 25,000 per unit
and 15 open wells at the rate of
Rs 10,000 per unit are also
suggested for the district.
may
be
provided
as
d. Incentives for Good Quality
Milk
Consequent to the implementation
of SIQCMP the bacterial content
in
raw
milk
has
been
significantly reduced. The low
bacterial content improves the
organoleptic properties (taste and
flavor) of the milk apart from
c. Subsidy for Cattle Feed
heat stability and longer shelf
Transport
Milma cattle feed is being sold
life. The products made from
through the DCS. The farmers
fresh milk (low bacterial milk) are
wholeheartedly
the
specially liked by the consumers.
of
the
Both the consumer and the Milk
access
and
Union is benefited from clean
credit facility. The transport of
milk but not the producer. The
cattle
producer
farmers are not compensated for
company to the DCS entails cost.
their extra effort to produce good
It is suggested to subsidize the
quality milk. As a beginning it is
transport
proposed that the top two per
welcome
arrangement
because
convenience,
easy
feed
cost.
from
The
estimated
86
Malappuram District
cent of the milk may be paid an
operational
incentive of Re 0.50 per liter. The
comfort. Most of the cattle sheds
estimated daily procurement is
in Malappuram are a mere make
50,000 LPD and the outlay at the
shift shelter with mud/wood floor,
suggested rate works out to Rs
tile/asbestos/PVC/Silpaulin
5.5 lakh for three years.
dark and musky, all in one floor
(no
urine
and
3.8 Cattle Shed and Farm
ease
and
or
without
animal
roof,
dung
channel)
any
watering
arrangements. The cows remain in
Machineries
this shelter most of the time (no
Table 3.11 Farm Equipments
grazing). The hind quarters and
Supplied from MRCMPU and
the udder often remain soiled by
MRDF to Farmers in Malappuram
dung and mud. Udder and teat
District
injury is common. Feeding of water
Sl.
No.
Item
Quantity
228
is only occasional.
Considering
the importance of god cattle sheds,
1
Cattle sheds modified
2
Milking machines
3
Rubber mats
673
cattle
4
Pressure washers
16
construction of new cattle sheds
5
Gen sets
6
Cow drinker
7
Chaff cutter - Motorized
41
2
12
2
the Milk Union procured funds for
under
shed
the
modifications
IDDP
and
and
SIQCMP
schemes. In the past, 228 cattle
sheds have been funded under the
Well-constructed cattle sheds are a
IDDP/SIQCMP
pre-requisite
milk
the course of the field work we
production. A dirty cattle shed
found that the floor of cattle sheds
contributes substantially towards
are well made using the allotted
external contamination of milk and
fund.
entry of microbes in to the udder
new cattle sheds is very expensive
causing
sub-clinical/clinical
in Kerala due to the high labor
mastitis. A well-constructed cattle
cost and the cost of materials. The
shed
budget provision of Rs 10,000/- is
for
should
clean
also
provide
However,
schemes.
During
construction
of
87
Malappuram District
thoroughly inadequate and will not
cattle keeping and making the
meet even 10 per cent of the
daily
overall cost. Therefore, it would be
crucial for the very sustenance of
more sensible if the support could
dairy
be extended for renovation and
economic and social significance of
modification of the cattle sheds
dairying,
with watering facility rather than
initiated financial support for farm
insisting on a new cattle shed. The
mechanization.
numbers suggested are given as
been
table 3.12.
support since the last few years.
and
Hired labor for dairy farm activity
the
Union
and
has
has
channeling
the
NPBBDD.
suggested,
estimated
The
quantity
cost
are
presented in table 3.12.
district.
labor
The
under
components
for dairy farming is fast declining.
reducing
MRCMPU
providing
funded
economy the availability of labor
Hence,
the
the
assistance may be continued and
employment in other sectors of the
the
Considering
is
are waiting. It is suggested that
the society, and opportunities for
in
farming.
arduous
be funded so far and many more
size, changing status of women in
uncommon
less
However, only few farmers could
On the face of shrinking family
is
chores
for
Table 3.12 Cattle Shed and Farm Machineries Proposed under NPDD for
Malappuram District
No. of
Units
Unit Cost
(Rs)
Total Cost
(Rs in
Lakh)
150
15000
22.50
No.
75
5000
3.75
3
Cattle Farm
Mechanization
Gen set
No.
9
75000
6.75
4
Pressure washers
No.
150
7500
11.25
5
Rubber mats
No.
750
2500
18.75
Sl.
No.
Component
Units
No.
2
Strengthening of old sheds
and constructing new sheds
Auto watering system
1
Total (4.0)
1155
63.00
88
Malappuram District
3.9 Cattle Induction
recommended
The lack of easy access to bank
under NPDD.
loan at affordable interest remains
a
major
obstacle
for
the
new
ƒ
this
induction
issue,
schemes
implemented
by
been
ƒ
to
370
Malappuram
to
farmers
promote
ƒ
Women
members
will
be
in
allowed 75 per cent price
cattle
subsidy and others 50 per
rearing.
cent of purchase price.
Cattle keeping in the district are a
job
Fifty percent of cows and
reserved for women.
development agencies in the State.
heifers
Only BPL families will be
fifty percent of heifers are
several
The MRCMPU too distributed 1700
supported
activity.
cattle
have
be
included for cattle induction
entrants into the cattle farming. To
overcome
to
of
economically
ƒ
met
weaker
in
full
under
the
scheme.
sections of people (BPL families)
and women. It continues to be a
Transportation cost shall be
ƒ
Seventy five percent of the
major source of securing daily
insurance amount shall be
livelihood
included under the scheme
women.
to
them,
especially
Therefore the following
and
numbers of cattle (Table 3.13) are
the
balance
as
beneficiary contribution.
Table 3.13 Cattle induction Program Proposed in Malappuram District
1
Purchase of animals
120
40000
Total Cost
(Rs in
Lakh)
48.00
2
Purchase of heifers
120
30000
36.00
3
Transportation cost of
animals
Cattle/Heifer insurance
240
2000
4.80
150
2500
3.75
Sl.
No.
4
Cattle Induction
Total
No. of
Units
Unit Cost
(Rs)
92.55
89
Malappuram District
necessity to have a central lab by
3.10 Establishment of
Laboratory in
resource
Malappuram/Kozhikode
because:
Dairy and MCP
justifiable
hygienic systems in the Dairy,
An amount of Rs 51.58 lakh had
been invested under phase I & II of
IDDP and SIQCMP schemes and
Rs 22.1 lakh by Milk Union in
the
is
1. As part of modernizing the
Nilambur
upgrading
pooling
Kozhikode/MCP
automatic
system,
data
software
capturing
for
easy
monitoring of FSMs and a
high capacity pressure jet is
proposed in the Project.
Nilambur dairy lab. The lab has
2. While the Kozhikode dairy
facilities including equipment for
has ISO: 22000 certification,
routine
recertification
tests.
However,
the
and
provision requested for the central
surveillance
lab is to develop and equip it. The
certain
suggestion is to turn the Milk
software for the maintenance
Testing Lab in Kozhikode dairy
of these systems are to be
into a ‘state of the art’ lab capable
acquired.
of carrying out all the mandatory
suggested
and extra mandatory tests. The
end.
audits
and
equipment
and
The
is
amount
towards
this
Table 3.14 Establishment of Laboratories under NPDD in Malappuram
Sl.
No.
Item of Expenditure
No. of
Units
Unit Cost
(Rs)
Total Cost
(Rs in
Lakh)
A
1
2
Capital Expenditure
Central milk testing lab
Purchase of laboratory furniture
1
1
LS
500000
70.00
5.00
3
Automatic data capturing system
1
2200000
22.00
4
5
B
1
High capacity pressure jet
FSMS monitoring software
Recurring Expenditure
Accreditation and certification of
dairy establishments under
HACCP/ISO
Total
1
1
100000
100000
1.00
1.00
1
500000
5.00
104.00
90
Malappuram District
3. Certification
subsequent
audits
yearly
and
all the samples for antibiotic,
survival
pesticide
audits by the officials from
analysed
the accreditation body are to
laboratories outside. The lab
be
once
conducted
in
the
residues
in
the
are
approved
completed
can
organization to evaluate the
undertake
food safety system. A number
bacterial
of hygiene systems, trainings,
screening for pesticide and
and other capital investments
antibiotic residues, and many
are
more.
needed
for
the
above
process.
safety laws like Food Safety
and Standards Act, 2011 and
increasing awareness of the
consumers about food safety
and consumer rights, it is
essential
that
the
organization acquires FSMS
Certification
unit
for
products
for
the
entire
supplying
with
safe
consistent
5. The MRCMPU is upgrading
the Kozhikode dairy lab as
Central Milk Testing Lab for
union,
enumeration,
tested
products
can
monthly.
be
Internal
regulatory action can also be
taken in instances of noncompliance
with
quality
standards. This lab can also
examine
consumer
complaints regarding quality
of
dairy
supply
in
processing
screened
products. Water
the
farms
plant
can
for
and
be
coliform
bacteria. The processing and
quality.
the
like
Both raw milk and
finished
4. In the light of stringent food
analysis
with
modern
testing facilities so that the
dairies in the all the six
districts can do the costly
analysis of their milk samples
at a central point. At present
cooling water in the dairy
processing
plants
are
required to be tested on a
monthly basis, which can be
carried out in the proposed
lab. The Central Dairy lab
assists in ensuring that all
dairy products produced in
the
units
meet
the
high
91
Malappuram District
quality standards that the
facilitate
consumers
quality of milk. Only few farmers
expect
from
MILMA.
in
supplied
the
following articles to the farmers in
Malappuram district (Table 3.15).
Supplying
cleaning
agents
and
sanitizers to farmers had little
impact on clean milk production.
In practice the farmers discontinue
the
use
of
chemicals
and
disinfectants once the free supply
is stopped. Hence the supply of
free detergent/chemicals for udder
/utensil
cleaning
is
district
are
of
the
and many more are waiting for
Under the SIQCMP scheme the
had
improvement
beneficiaries of this component
3.11 Clean Milk Production
MRCMPU
the
the
not
recommended.
the
benefits.
utensils
and
Therefore
vessels
the
may
be
supplied through the DCS free of
cost under the NPDD to those
farmers who are yet to receive
them. The numbers suggested
and the financial requirement is
provided in table 3.16.
Milking machines are relevant in
today’s context as the family
labor
for
steadily
farmstead
declining.
jobs
Our
are
field
exposure visits show that almost
Supplying stainless steel utensils
all the beneficiary farmers of
(the
earlier
milking
utensils
and
schemes
use
the
carrying vessels) are of use to the
machines although continuous
farmers and they wholeheartedly
service back up is essential. It is
welcome
suggested
it.
These
utensils
that
twenty
farm
Table 3.15 CMP Kits Supplied under SIQCMP Scheme in Malappuram
District
Sl.
No.
Description
Physical
Financial
(Rs in Lakh)
1
Detergents & chemicals to DCS/farmers
lot
8.32
2
Stainless steel utensils to beneficiaries
3
Milking machines
39.01
93
27.9
92
Malappuram District
Table 3.16 CMP Kits and Milking Machines Suggested under NPDD for
Malappuram District
Sl.
No.
1
2
3
Components
Stainless steel utensil kit/
accessories
Electricity operated milking
machine & other equipments
for hygienic milk handling at
Village/Farmer level
Manual milking machines
No. of
Units
Unit Cost
(Rs)
Total Cost
(Rs in Lakh)
1500
400
6.0
20
55000
11.0
50
6000
3.00
Total (7.0)
owners
owning
17.25
five
or
more
SIQCMP
schemes
earlier
milking cows shall be supplied
implemented in the district. An
milking machines at subsidized
amount of Rs 55.40 lakh have
(75 per cent) rate under NPDD.
been spent for providing various
It is also suggested that 50 hand
support inputs and services under
operated
the IDDP/SIQCMP schemes.
machines
shall
be
supplied to the needy farmers
after making a scientific and
methodical
field
trial
in
association with KVASU.
The
TIS
are
under
the
state
domain and the line departments
have a plethora of schemes for
supporting the farm level activities.
However, as the household survey
3.12 Technical Input Services
(TIS)
The
technical
shows the efficacy of these services
especially the AI and health care
input
services
delivery at farm gates remain poor.
for
animal
Since those services are in the
breeding, health care including
domain of the State, the change in
prophylaxis, fodder
service
include
support
development
delivery
requires
policy
and other associated activities for
decisions.
the benefit of participating farmer
duplication of such services (AI,
members. The TIS was a major
health
component under the IDDP and
production)
In
care,
order
to
homestead
are
not
avoid
fodder
suggested
93
Malappuram District
under the NPDD. The components
based program centrally controlled
suggested for Malappuram (Table
and
3.17) are those not covered by the
MRCMPU.
line departments and are the most
essential.
The
LN
monitored
The
from
conventional
HO
of
homestead
fodder production is a tried and
containers
are
for
failed
program
in
Kerala.
many,
the
The
replacement of the ones in use. As
reasons
this component is covered under
important
the NPBB, separate provision is
fragmentation and the declining
not requested. The animal health
farming activities. On the other
and breeding input camps include
hand
a
fertility
fallow land are potential sources
management of dairy cows among
for fodder production – fodder as a
farmers. The programs envisage
value added crop in irrigated land.
identification
The fodder so produced shall be
pilot
program
providing
veterinary
of
for
infertile
cows,
management
and
support
being
large
marketed
land
land
holdings
among
most
the
and
DCS
correct
members at cost price. The scheme
reproductive problems if any, and
shall be a flagship program of
documenting the information for
NPDD.
adoption elsewhere.
to
are
It is a DCS
Table 3.17 Technical Input Services Suggested in Malappuram District
under NPDD
Sl.
No.
Component
No. of
Units
Unit
Cost (Rs)
1
Liquid nitrogen containers
6
0
Total Cost
(Rs in
Lakh)
0
2
Audio visual kits etc.
1
200000
2.00
3
Animal health & breeding
input camps
Chaff cutter
Commercial fodder
production
Total
LS
25.00
36
20000
7.20
10
100000
10.00
4
5
46.00
94
Malappuram District
3.13 Information and
the Milk Union is in the infant
Communication
stages of exploiting the benefits of
Technology Networking
IC technology.
The MRCMPU apart from being a
farmers’ organization is also a
multi-crore business concern. Its
business units are far flung and
widely distributed. The application
and full utilization of information
and
communication
technology
alone will enable the MRCMPU to
modernize their units and keep
abreast of their competitors. It is
also
essential
business
of
that
the
whole
MRCMPU
is
transparent to their stakeholders,
the dairy farmers. Unfortunately,
The
current
status
of
IC
technology use is that the dairies
are computerized and internally
networked (intranet). Few DCS are
also
computerized
networked.
The
but
milk
not
Union
proposes to expand the IC so that
the system will function as a client
server architecture network with a
center in each district (Palakkad,
Malappuram, Kozhikode, Wayanad,
Kannur, and Kasaragod) and a
central server system linking all
Table 3.18 Information and Communication Technology NetworkingMalappuram District
Sl.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Purchase of Computer/HHB
Desktop
Laptop & Netbook
Hand held range of computers
Rack server
42 U server rack
Foldable TFT console
Server storage device
Tape backup
UPS for server
Weblogic server suite purchase
Oracle database 12C
Antivirus software
Hardware & networking
Software consultation charges (AMC)
Total
Unit
Rate (Rs
in Lakh)
0.50
0.60
0.30
9.00
1.00
0.45
8.00
8.00
7.00
15.00
15.00
1.00
10.00
5.00
Units
16
11
30
3
1
1
1
1
3
1
1
1
1
Amount
(Rs in
Lakh)
8.00
6.60
9.00
27.00
1.00
0.00
8.00
8.00
7.00
45.00
15.00
1.00
10.00
5.00
150.60
95
Malappuram District
these six centers. The data and
reduction,
information will be made available
and
to all the districts and DCS. The
MRCMPU. Apart from the Union
details of the proposed system are
employees, the staff and elected
given as annex-1. The expenditure
members of the DCS and the
is to be shared between the district
Board
projects. The share of Malappuram
appropriate subjects. Table 3.19
district is illustrated as table 3.18.
shows the numbers trained in
product
are
various
3.14 Manpower Development
The
training
and
development
program is adopted as a tool for
organizational development and to
make
strides
standards
in
productivity
including
cost
energy
conservation
improvement
also
trained
categories
in
on
from
Malappuram district.
The DCS staff has been trained
at the HRD Centre, Kozhikode
under MRCMPU on the relevant
subjects. The trainers included
Table 3.19 Employees and Elected Members Trained from
Malappuram District
Sl.
No.
1
Training Course
Number of
Persons
Trained
C D program
a
No. of programmes
10
b
No. farmers trained
1260
c
FIP- local farmers attended
d
Management orientation (MCMOP)
927
80
2
Training of BMC/DCS/MCC staff
3
Training of DCS secretary
143
4
Training of DCS employees
119
5
Training on AI
6
Training of farmers on GMP/GHP
873
7
Training of farmers on AH practices
124
8
FIP
543
9
Training on marketing
22
Training of management committee members
83
10
6
12
96
Malappuram District
those
from
within
the
upgrading
their
skill
and
experts
knowledge. An amount of Rs 54.4
invited from other organizations.
lakh has been spent for various
The duration ranged from one to
training
three
Malappuram district under the
organization
days
and
and
also
the
subjects
handled were those relevant to
programs
in
IDDP and CMP Phase I and II.
the concerned groups.
3.14.1 Key Issues and
The
CD
program
includes
training in village cooperatives
Suggestions
1. Future
training
especially
followed by a visit to processing
those for the middle level
Dairy/cattle feed plant. Farmers
employees starting from the
are the trainees. The farmers
level of Supervisors should
Induction program is normally
be
carried out in the HRD Centre,
exclusively on subjects and
Kozhikode.
skills relevant to them.
The
Management
Dairy
Training
Animal
to
the
farmers has been undertaken in
APCOS
DCS.
The
training
included lectures by experts and
visit to a few well run farms. The
farmers were given opportunities
to see for themselves the success
hand
on
2. Farmers training should be
organized
in
training
for
MRCMPU
villages
Village Extension Workers
under MRCMPU.
3. All out and comprehensive
Eradication,
The
the
with the support of LSG and
training
and failure stories.
training
Production
on
Mastitis
Clean
for
Milk
farmers,
employees is arranged by the
Village Extension Workers
Head Office in the institutions of
and DCS employees should
repute in India, both inside and
outside the State. An interaction
with a test group showed that the
trainings were partially useful for
be initiated on a project
mode
and
results
closely
watched and monitored.
97
Malappuram District
4. The
Dairy
Production
Managers,
Officers
exposed to higher levels of
on
phased out.
and
Marketing staff should be
knowledge
6. The FIP must be gradually
production
The courses suggested and the
estimated cost is given in table
3.20.
and marketing management.
They
should
be
provided
3.15
Working Capital –
opportunity to visit centers
of
excellence
outside
the
state.
5. The
Malappuram District
Large amount of Working Capital
are needed to ensure smooth and
thrust
building
of
employees
of
capacity
higher
should
modern
level
be
on
Management
Systems
rather
technical
than
subjects.
on
They
uninterrupted
supply
of
raw
materials, consumables, etc. for its
manufacturing
and
sales
operations.
Each
unit
minimum
shall
quantity
maintain
of
finished
should be exposed to what
products at all times to ensure
happens
uninterrupted
in
dairy
sector
elsewhere in the country (eg:
Schreiber
widen
their
Dynamix)
vision
to
and
outlook.
quantity
of
sales.
raw
materials,
consumables
packing
materials,
stores
spares,
etc.
and
required
to
all
Minimum
maintain
processing/production
are
smooth
operation.
Table 3.20 Proposed Training Program under NPDD
Malappuram District
Sl.
No.
1
2
3
4
Name of Course
CD programme
Training DCS employees & elected
members
MRCMPU employees
Institutional skill development
Total
Units
Person
No. of
Units
Unit
Cost (Rs)
15
80000
Lot
125
3000
Total Cost
(Rs in
Lakh)
12.0
15.00
10.00
70.00
107.0
98
Malappuram District
The working capital requirement of
The
the
fluctuating
adequate cash reserve to meet the
throughout the year depending on
expenses mentioned above. The
local milk procurement. The milk
Union resorts to soft loans and
procurement
Union
over drafts to avoid disruption of
fluctuates drastically between the
milk value payments to farmers
flush
and
Union
and
is
of
lean
the
season.
Union
Milk
to
Union
do
maintain
not
have
supplied
and
needs huge amount of Working
services to DCS. The borrowings
Capital
attract
interest
(January to May) and flush season
limits
the
(June, July, October, November).
programs
This is to ensure timely milk value
dairy. In coming years the burden
to the farmers even when money is
is poised for increase. Hence it is
held up in the form of inventory
requested that an amount of Rs
like ghee, skimmed milk powder,
285 lakh may be paid as a onetime
consumables, and cattle feed etc.
assistance towards working capital
During
during
lean
lean
season
season
union
is
procuring milk from other states for
which
payments
are
made
in
advance. SMP is also to be stored to
assistance
which
farmer
and
in
beneficiary
investments
for
turn
in
Malappuram
district. The amount requested is
equal to milk value for 21 days as
shown in table 3.21.
take care of any possible short
supply from outside state. During
flush season funds are needed to
stock ghee, converted SMP, cream,
etc. which are produced in excess of
normal market requirements.
In
addition the Milk Union is supplying
cattle feed and other inputs to the
societies on credit basis. Present
supply of cattle feed to societies is
more than 600 MT per month.
99
Table 3.21 The Milk value due for 21 Days in Malappuram District to
Farmers
Milk Procurement (LPD)
2013-14
(Actual)
201415
201516
201617
0.37
0.40
0.43
0.47
Average
Milk Price
(Rs.)
Days
Total Milk
value (Base
Year) (Lakh)
Total Milk
Value(EOP)
(Lakh)
28.88
21
224.40
285.05
4. KOZHIKODE DISTRICT
Contents
Executive Summary ........................................................................101
4.1 General Features .......................................................................105
4.2 Trend in Cattle Population .........................................................106
4.3 Trend in Milk Production from Bovines ......................................107
4.4 Milk Chilling Facilities in Kozhikode District ..............................107
4.5 Milk Processing .........................................................................109
4.6 Milk Marketing ..........................................................................113
4.7 Milk Procurement ......................................................................120
4.8 Cattle Shed and Farm Machineries ............................................127
4.9 Cattle Induction ........................................................................129
4.10 ........................... Establishment of Laboratory in Kozhikode Dairy
.......................................................................................................130
4.11 Clean Milk Production ............................................................132
4.12 Technical Input Services (TIS) ..................................................134
4.13 Information and Communication Technology Networking .........135
4.14 Manpower Development...........................................................136
4.15 Working Capital - Kozhikode District .......................................139
Malappuram District
Kozhikode District
Kozhikkode District
100
Malappuram District
Executive Summary
The
Kozhikode
district
is
not
processing capacity of Kozhikode
among the frontline dairy districts
dairy.
in Kerala. Yet livestock farming is
certain critical equipments, some
germane to the vast majority of the
as
farmers in the district. The official
replacement.
statistics, however, show that the
additions and replacements are
Animal Husbandry sector, both in
estimated to cost Rs 164.00 lakh.
numbers
and
output,
suffered
setbacks since late nineties. The
cattle numbers declined by 68 per
cent from 1996 to 2012 and inmilk
cows
by
29
per
cent.
Concurrent with the changes in
cattle numbers the annual milk
production also declined from 197
thousand MT in 2001-02 to 86
thousand MT in 2012-13.
The
MRCMPU
has
one
But the dairy requires
standby
and
some
The
as
suggested
The market survey shows that the
supply-demand gap of milk in
Kozhikode
district is 3.25 LLPD.
The market share of MRCMPU in
the liquid milk segment is just 25
per cent which is not encouraging.
The Milk Union is facing fierce
competition from the competitors,
mainly from within the district,
but also from outside to a smaller
milk
level.
But the market analysis
processing dairy and a Product
reveals that this is not a restricting
Dairy at Kozhikode The installed
factor to command a better market
capacity of the Processing Dairy at
share.
Kozhikode is 1.5 LLPD. During
infrastructure
2013-14, the dairy processed on
reasons for the low market share.
an average 1.0 LLPD, 34 per cent
The dairy’s business plan may also
below the installed capacity. Even
require some revision.
at the peak procurement level
aggressive
during
supported
the
year,
the
dairy’s
The
inadequate
is
one
marketing
by
market
of
the
Hence an
strategy
adequate
capacity utilization has only been
infrastructure is required.
71 per cent. Hence there is no
begin with, new milk parlors and
urgency
Shoppe are suggested to be opened
in
expanding
the
To
101
Kozhikode District
in prominent public places. Wide
The lack of good cattle sheds and
publicity through print and visual
farm machineries are identified as
media is also suggested. Periodic
one of the
market
production in Kozhikode district.
surveys
and
R&D
on
constraints in dairy
consumer likes and preferences
Financial
(example
strengthening of old cattle sheds/
attractive
packing
for
support
for
flavored milk, ice cream, peda etc)
construction
are also suggested. The estimated
supply of farm machineries and
cost on market promotion works
equipments are proposed at a total
out to Rs 393.4 lakh.
cost of Rs 81.25 lakh.
The MRCMPU has built up an
In order to promote cattle keeping
extensive net work of DCSs and
among the below poverty line (BPL)
BMCs for milk procurement from
and the SC/ST women, a cattle
farmers in Kozhikode district. All
induction program is suggested.
the DCSs have reasonably good
The
milk testing facilities. All the BMC
followed
DCSs
MBRT
subsidies. The overall support for
estimation. The field level milk
240 animals is estimated to be Rs
testing, however, requires further
92.55 lakh.
have
facility
for
refinement. The major constraints
identified in the expansion of milk
procurement
and
clean
milk
production are lack of convenient
buildings for DCSs, absence of
good quality water supply facilities
with
some
incentives
DCSs
and
lack
for
clean
of
milk
production and support for cattle
feed
transport.
suggested
for
The
support
procurement
activities in Kozhikode
district is
expected to cost Rs 224.55 lakh.
of
NABARD
for
new
ones
norms
shall
administering
and
be
the
It is suggested to establish a
central
milk
testing
lab
at
Kozhikode dairy by pooling the
funds from all the districts. This
will
eliminate
the
need
for
replication of the same facilities
and expenses in all the districts.
Some additional equipments and
furniture
are
also
Kozhikode dairy lab.
required
in
All these
together are estimated to cost Rs
32.00 lakh.
102
Kozhikode District
The farmer beneficiary programs
scale up some of these programs.
proposed
are
productivity
aimed
at
milk
The
enhancement
and
cost Rs 57.36 lakh.
clean milk production. The current
proposals include animal breeding
and health cover, distribution of
stainless steel utensils, milking
machines, and commercial fodder
production for which the estimated
cost works out to Rs 61.45 lakh.
suggested
programs
would
The business plan of MRCMPU
suggests substantial increase in
milk
procurement
and
sale
in
Kozhikode district. The milk prices
are to be paid to the farmers
regularly which alone cost rupees
643 lakh or more every 21 days.
The Kozhikode needs to network
In addition, keeping a buffer stock
with the various units and the
of
DCSs
essential
for
effective
information
raw
and
finished
to
goods
safeguard
is
an
sharing and communication. The
uninterrupted business. This as
suggested system is a client server
also several other requirements
architecture
network
with
force the milk Union to borrow
six
one
each
money
centers,
district
(Palakkad,
in
from
the
open
market
Malappuram,
which causes extra burden to the
Kozhikode, Wayanad, Kannur and
Union and the farmers. Hence it is
Kasaragod) and a central server
suggested that an amount of Rs
system
six
275 lakh shall be paid to the milk
and
Union as a one-time assistance for
linking
centers.
all
The
these
data
information will be made available
Working
to all the districts and DCSs. The
district.
estimated cost of these is Rs 143.6
lakh.
Capital
for
Kozhikode
Abstract of suggested programmes
is as follows:
The HRD through training and
skill
development
activity
of
is
a
MRCMPU.
routine
Several
programs were running for the
past few years. It is suggested to
103
Kozhikode District
Component
Amount
(Rs in Lakh)
Milk processing and packaging
164.00
Milk marketing
393.40
Milk procurement
224.55
Cattle sheds and farm machineries
81.25
Cattle induction
92.55
Central testing laboratory
32.00
CMP kits to farmers & tech inputs to farmers
61.45
Information and communication sharing
Human resource development
Working capital
Total
143.60
57.36
275.00
1525.16
104
Kozhikode District
4.1 General Features
coconut, paddy, banana, tubers,
The Kozhikode district came into
spices and tree crops. After crop
existence in 1957. The district
production
situated on the south west coast of
provides
India is surrounded on the north
support for farming community.
by
livestock
the
vital
livelihood
east
by
The
south
by
activities are supported both by
Malappuram districts and on the
the government departments and
west
sea.
local self governments apart from
Topographically the district has
Milma. The department of Animal
three distinct regions-the sandy
Husbandry under GOK provide
coastal belt, the rocky highlands
breeding and heath care services
formed by the hilly portion of the
through one district center, two
Western
poly
Kannur,
Wayanad,
on
on
by
the
the
the
Ghats
Arabian
and
lateritic
livestock
sector
clinics,
development
13
hospitals,
71
midland. The total geographical
dispensaries and 109 insemination
area of the district is 2,33,330
centers apart from a multitude of
hectare (2344 km2) with 30.86
other
lakh people (2011 census) and
a
lab, RP eradication units etc. The
1317
department of Dairy Development
persons/sq.km. Nearly 20.73 lakh
under GOK provides the extension
people live in urban area and half
services,
of that only, 10.13 lakh, in rural
development and administers the
area (2011 census). The district is
milk co-operatives, both APCOS
subdivided in to three Taluks and
and others. The department has
117
Grama
12 dairy extension units in the
Municipalities
district. The district houses the
population
density
Villages,
Panchayats,
two
75
of
and one Municipal Corporation.
HQ
functionaries
of
promotes
Regional
MRCMPU,
Agriculture is the major income
and employment provider in rural
sector. The major crops raised are
like
Milk
Kozhikode
clinical
fodder
Union
-
Dairy
a
capacity of 1.5 lakh LPD, one
product dairy for the manufacture
of special milk products and a
105
Kozhikode District
training
center.
The
MRCMPU
district
declined
during
this
apart from collection, processing
period. The total cattle declined by
and marketing of milk and milk
58 per cent and cows in milk by 29
products
cattle
per cent between 1996 and 2012.
breeding and extension support
The in-milk buffaloes had mixed
through
fortune,
also
provides
the
village
dairy
the
numbers
sharply
cooperatives. Few private agencies
declined from 2524 to 156 between
are also marketing milk in the
1996 and 2007 and there after
district.
substantially gained between 2003
and 2012. Although the accuracy
4.2 Trend in Cattle
of the data on cattle numbers is
Population
questionable, it is certain that in
The cattle population in Kozhikode
the
district declined between 1996 and
farmers
2012, the official statistics shows.
dropped out of dairying due to
As is evident from fig. 4.1,
economic and other factors.
both
recent
in
past
many
Kozhikode
dairy
district
the total and in milk cows in the
Fig 4.1 Cattle population Kozhikode District
(source Cattle Census AHD GOK)
300000
N u m b ers
250000
200000
150000
100000
50000
0
1996
2003
2007
2012
Total Cattle
262497
169404
133494
109500
Cows in milk
48835
38218
20289
34800
Buffalo in milk
2524
188
156
2600
106
Kozhikode District
4.3 Trend in Milk Production
milk
went
production
from Bovines
up
but
declined,
the
a
milk
difficult
According to the ISS estimates
situation to explain. Although the
(Fig.
accuracy
4.2)
the
annual
milk
of
the
data
is
production in Kozhikode district
questionable, we have to accept
increased from 128 thousand MT
these figures as we don’t have any
in 1997-98 to 196.8 thousand MT
other
in 2001-02 and declined to 86.2
production.
authentic
data
on
milk
thousand MT in 2011-12. The
trend
in
Kozhikode
district
is
4.4 Milk Chilling Facilities in
Kozhikode District
contrary to that observed in other
districts.
In
almost
all
other
The
milk
chilling
facility
in
districts the last two to three years
Kozhikode district during 2013-14
witnessed
(other than Kozhikode dairy) was
sharp
to
moderate
increase in milk production. In
as shown in table 4.1.
Kozhikode district the animals in
Fig 4.2 Milk Production Kozhikode district from Bovine
( source ISS AHD GOK)
250
M ilk '000M T
200
150
100
50
0
97-98
2001-02
2004-05
2008-09
2011-12
128
196.8
115.5
104.1
86.2
107
Kozhikode District
Table 4.1 Milk Chilling Facility in
justifiable from the point of view of
Kozhikode District 2013-14
proximity, from the quality point of
Sl.
No.
Volume
(Liter)
Description
1
BMC DCS (21)
2
Milk chilling centre,
Mukkom
Milk chilling centre,
Vadakara
Total
3
47000
5000
view is indefensible. The quality
comparison of BMC supplied and
dock
supplied
milk
(table
4.2)
suggest that the microbial quality
15000
of
67000
significantly poor. The FSSA rules
the
do
dock
not
supplied
permit
milk
bacterial
is
load
During 2013-14 the above facility
beyond certain level. Therefore it is
together
only
chilled
and
supplied
prudent
that
Kozhikode
55,400 liter of milk as against the
switch over to BMC system of
installed capacity of 67,000 liter,
collection
(83 per cent of installed capacity),
sooner
to Dairy Kozhikode.
considering that the implementation
from
than
can
later.
collection
Nevertheless
of the SIQCMP is in progress and
A
large
number
of
DCS
in
Kozhikode district, 70 in March
2014, are yet to be linked to the
BMC system of milk procurement
and chilling and instead supply
DCS are yet to come forward to
install
BMC,
additional
chilling
facility is not proposed under the
current
phase
of
NPDD
in
Kozhikode district.
milk at the Dairy. Although this is
Table 4.2 Quality Comparison of BMC and Dock Collected Milk
Sl.
No.
1
2
3
4
5
6
Quality Description
Av. MBRT of BMC collected milk Minutes
Av. MBRT of milk collected at
dairy dock - Minutes
Av. SPC of BMC collected milk –
CFU per ml
Av. SPC of dairy dock collected
milk – CFU per ml
Av. Coliforms of BMC collected
milk – CFU per ml
Av. Coliforms of BMC collected
milk – CFU per ml
Values
115
60
33 lakh
55 lakh
39000
45000
108
Kozhikode District
4.5 Milk Processing
dairy dock. The internal (home
4.5.1 Processing Capacity and
Capacity Utilization
MRCMPU
have
two
dairies
in
Kozhikode district – the Kozhikode
Dairy and Product Dairy. The 150
KL Kozhikode dairy is functioning
at Kunnamangalam, 15 Km away
from
Kozhikode
dairies
are
city.
ISO:
Both
the
22000:2005
certified.
district)
procurement
thus
averaged 65,503 LPD during 201314.
In
addition
procurement,
the
to
Milk
home
Chilling
Centre Kottakkal in Malappuram
district supplied on an average
3000
LPD
and
MCP
Nilambur
supplied yet another 22,700 LPD.
The dairy outsourced milk during
Vishu and Onam festival periods
and also during the lean period
The Kozhikode Dairy procured at
during
an average 55,400 liter of milk
averaged 4295 LPD. Hence the
from BMCs during 2013-14.
internal procurement from within
In
2013-14.
the
directly supplied 10,103 liters of
procurement
room
district (25,700 LPD) and 4295
milk
to
the
(65,503
quantity
addition the nearby seventy DCS
temperature
district
The
from
liter),
Malappuram
Kozhikode Processing dairy
109
Kozhikode District
from outside state adds up to
equipments and civil structure can
95,498
be found from table 4.3.
liter
LPD.
That
is
equivalent to 63 per cent of the
installed
the
capacity.
Kozhikode
Theoretically
Dairy
is
underutilized.
4.5.2
Kozhikode
dairy
Dairy
sufficient. At present the dairy is
Malappuram,
received
this dairy. The table 4.4 shows the
equipments
suggested
under
NPDD 2014-2017.
processing
Milk pumps and cream pumps are
capacity. Over the years, utilising
proposed for spare to the original
this and other sources the dairy
ones. One pouch filling machine is
has
also
added
structure,
its;
self
and will take off some load from
lakh from central sector schemes
up
is
dairy, soon will have a new dairy,
financial support of Rs 364.86
scaling
Kozhikode
the feeder district to Kozhikode
Milk Processing
Kozhikode Dairy
for
the
working below par.
Infrastructure –
The
For the current level of production
several
facilities
equipments
in
and
machineries. The current status of
proposed
in
the
light
of
increased sales and to use as spare
in
case
of
some
maintenance.
110
Kozhikode District
Table 4.3 Kozhikode Dairy Existing Facilities and Equipments
Sl.
No.
1
Facility/Equipment
Production Block (Carpet Area All Floor.)
1.1
1.2
1.3
1.4
1.5
1.6
1.7
2
2.1
2.2
2.3
2.4
2.5
3
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
4
4.1
4.2
5
5.1
6
6.1
Service block
General go-down (including SMP stores)
Milk/curd cold storage
Butter deep freeze
Administration block (Total carpet area )
Tray washing block
Effluent treatment plant
Reception
Can roller conveyor
Can washer
Dump tank
Can scrubber (SS 304)
Can steaming block
Processing/Storage Equipment
Milk chillers
Tri-purpose centrifuge
Milk pump
Un-insulated milk tank
Horizontal milk storage tank
Vertical milk storage tank
CIP system - Double circuit
Pasteuriser
Milk silo
Fat Handling
Cream storage tank
Cream pump
Recombination
Un-insulated tank
Milk Marketing
Pouch filling machine DHG mechanical
6.2
6.4
7.0
7.1
Pouch filling machine auto SH mechanical
Pouch crates
Service Equipment
Refrigeration compressors
(make/model/type/cap.)
Motor for refrigeration compressors (KV)
Ice bank tank
Condenser pump
Air handling unit for cold storage/deep freezer
(make/model/cap)
Deep freezer room
7.2
7.3
7.4
7.5
7.6
Unit
Quantity
Area
Numbers
240
350
260
50
220
160
600
Capacity
600 cans/hr
600 cans/hr
2 Kl
500 L
Single can
Capacity
20 KLPH
10 KLPH
10 KLPH
5 KLPH
15 KLPH
15KLPH
20 KLPH
10 KLPH
60 KL
Capacity
2000 LTS
5000 LPH
Capacity
Capacity
5000 PPH
1
1
1
1
1
1
1
Quantity
1
1
1
1
1
Quantity
1
2
4
1
3
1
1
2
2
Quantity
2
1
Quantity
1
Quantity
8
2500 PPH
10 LTR
Capacity
1
10000
Quantity
30 TR
60 HP
100 KL
30 KLPH
4
4
1
2
3 TR
6 TR
6
1
111
Kozhikode District
Sl.
No.
8
8.1
8.2
9
91
10
10.1
10.2
11
11.1
11.2
Facility/Equipment
Steam Raising Plant
Boiler (oil/coal)
Water softening plant
Compressed Air System
Air compressors
Industrial Electrical
DG set
Transformer
Water Supply System
Water storage tank
Water pumps
Unit
Quantity
Capacity
1 MT
2 KLPH
Capacity
50 CFM
Capacity
320 KVA
315 KVA
Capacity
50 KL
20 KLPH
Quantity
1
1
Quantity
3
Quantity
2
2
Quantity
1
1
Table 4.4 Equipments Suggested for Kozhikode Dairy
Sl.
No.
Machinery/Equipment
1
Milk pump
2
SS pipes and fittings
3
Cream pumps
4
Pouch filling machines
5
6
Boiler
Refrigeration compressors with
accessories
Deep freezer room
Date coding devices for pouch
filling machines
Pet bottle sterilizer
Heat desiccation units for CPD
7
8
9
10
Specification
No. of
Units
Unit Cost
(Rs)
Total
Cost (Rs
in Lakh)
10 KLPH
4
50000
2
Lot
1
500000
5
5 KL
1
300000
3
5000 PPH
1
1000000
10
2 TON
1
3500000
35
30 TR
1
3000000
30
8 TR
1
3500000
35
60 imp/mnt
6
150000
9
50 btls/hr
300 Kg
1
1
3000000
500000
30
5
Total
164.00
Date coding machines is proposed
bottling and packaging of sterilised
as an accessory to the packing
flavoured
machines
desiccated products like peda and
since
as
per
FSSA
Labelling requirements, clear date
coding in sachets is a necessity.
Pet
bottle
steriliser
and
heat
milk
and
other
heat
Palada mix.
By considering the sales growth in
ice cream, we have proposed a
desiccation units are for Products
deep
freezer
room
and
dairy in order to improve the
compressors in order to handle
112
Kozhikode District
large volumes of ice cream with
The liquid milk is directly supplied
out quality deterioration.
from the Dairy to the dealers and
the
4.6 Milk Marketing
for milk and 51 wholesalers for
milk
District
The marketing wing attached to
Dairy
organizes
the
marketing
activities
in
Kozhikode district. The Kozhikode
marketing
wing
is
under
a
Marketing Manger. He is assisted
by a Marketing Organizer who
looks
after
the
supply
management. A Marketing Asst
looks
after
product
distribution
from
Kozhikode Dairy. A well developed
intending and distribution system
exist. The liquid milk and the
products are sold to the dealers on
advance payment. Credit facilities
were extended to the dealers on a
limited scale.
The milk and milk
products sold during 2013-14 is
shown as table 4.5.
market
There is marginal (4 per cent in
development activities. Four Field
three years) growth in sales of milk
Staff
while
supervise
the
the
2014 there were 1561 retail outlets
Marketing – Kozhikode
milk
through
wholesalers. At the close of March
4.6.1 Organization of Milk
Kozhikode
products
the
filed
level
the
growth
of
certain
activities among the retail outlets.
products curd, ice cream and ghee
The
Kozhikode
markets
liquid
marketing
wing
are
milk
milk
area of Kozhikode dairy has been
and
substantial.
The
marketing
products made in Kozhikode Dairy
recently
and Product dairies.
organized under the other dairies
downsized
(Wayanad
and
and
re-
Palakkad)
4.6.2 Supply Chain
consequent
The MRCMPU has more or less
production, establishment of Milk
similar supply chain in all the
Depots
districts. The milk and the milk
supply routes and that makes the
products
growth
reach
the
consumers
from the processing units through
and
in
to
to
milk
expansion
economize
sales
of
the
under
Kozhikode dairy look smaller.
the retailers designated as dealers.
113
Kozhikode District
Table 4.5 Progress of Milk and Milk Products sale in Kozhikode District
Milk/Product
2009-10*
2013-14
Liquid milk (LPD)
88692
92246
Curd (Liter/day)
9362
14060
Ghee (Kg/month)
43161
41069
Ice cream (Liter/month)
3840
15014
Butter milk (200 ml Pkts./day)
3696
11755
Mik peda (Kg/month)
2502
4591
Sip up (Pkts./month)
213924
147785
304
985
Palada (Kg/month)
Milma plus (Bottles/month)
7309
* Previous bench mark
4.6.3
26828
Milk Marketing
in Kozhikode district was 1.26
Infrastructure – Current
LLPD (Milma 1.10 plus 0.16 of the
Status
competitors).
The table 4.6 shows the various
support
equipments
logistics
available
in
and
other
Kozhikode
district for market promotion. The
available infrastructure is in full
use.
The
sales
of
competitors are assessed through
a series
of interviews and its
accuracy cannot be vouched. The
sales pertain mostly to the urban
area
and
therefore
the
rural
consumption is extra.
Yet another way of calculating the
4.6.4 Market Size and Market
Share of MRCMPU
market is by understanding the
end user purchases. The sample
Market size is the measurement of
survey conducted by the study
the total volume of a given market.
group shows that the per capita
Market
consumption among rural people
size
standard
sales
calculated
on
a
practice/competitive
approach
(bottom
up
approach) shows that the market
is 82 ml and urban 95 ml.
The
market size is calculated as shown
in table 4.7.
for liquid milk in 2013-14 period
114
Kozhikode District
Table 4.6 Existing Marketing Infrastructure Kozhikode District March 2014
Sl.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Particulars
Quantity
Wholesalers for product (No.)
Retail outlets milk and products (No.)
Milk parlors (No.)
Milma shoppe (No.)
Marketing depots/Hub (Mobile cold storage) (No.)
PUF vehicle container (3 MT) (No.)
PUF vehicle container (1.5 MT) (No.)
% milk routes using PUF vehicles for milk
distribution to retail outlets
PUF box 50 ltr. (No.)
PUF box 100 ltr. (No.)
PUF box 150 ltr. (No.)
PUF box 25 ltr. (No.)
PUF box 460 ltr. (No.)
Shipper box for ice-cream
200 liter freezers for dealers (No.)
200 liter freezers glass top for dealers (No.)
120 LTR freezer (No.)
500 ltr. freezer for dairy (No.)
Deep freezer 320 ltr. (No.)
Deep freezer 320 ltr. (Glass top) (No.)
Visi-cooler 220 ltr. (No.)
Visi-cooler 320 ltr. (No.)
51
1561
6
11
1
30
11
100
500
278
81
148
11
125
210
15
60
15
160
102
180
139
Table 4.7 Estimation of Market Size and Market Share of Milma in
Kozhikode District 2014
Sl.
No.
1
Parameter
Population Kozhikode district
2
Cattle holdings %
3
Potential consumers (1 x 0.82)
Proportion of people consuming milk in
Kozhikode district- as per HH survey (%)
Actual consumers (3 x 4/100)
4
5
Rural
Urban
Total
1013721
2072572
3086293
831251
2072572
2903823
82
95
18
681626
1968943
2650569
7
8
Per capita consumption HH survey
Household demand LPD (5 x 6/1000)
Inst. demand (20% of urban demand)
108
73616
157
309124
382740
0
61825
61825
9
Total demand (7+8)
73616
370949
444565
6
10
Milma supply
Supply demand gap 2013-14 LLPD
11
Market share %
110000
3.25
25
115
Kozhikode District
The
total
estimated
in
perpetual threat from the private
Kozhikode district is huge, 4.45
dealers. The institutional segment
LLPD
is largely within the hands of
while
marketed
market
the
1.1
MRCMPU
their
private traders. Because of falling
competitors 18,000 LPD adding up
milk production in rural areas the
to 1.3 LLPD leaving a gap of 3.15
market for milk and milk products
LLPD. The survey also showed that
is vertically expanding. Also the
few,
of
market analysis shows that there
Kozhikode population continues to
is wide gap in supply demand
consume milk powder. The market
position. At the same time milk
share of Milma is just 25 per cent
production is livelihood intensive
of the market size. The entire
to a vast majority of marginal and
institutional segment is with the
sub marginal farmers in Kozhikode
private dealers from within and
district who largely depend on
outside
market
Milma to market their milk. To
situation in Kozhikode suggests
take advantage of these favorable
that the marketing strategies must
factors
be
the
interest of the milk producers in
Kozhikode
the district further expansion of
about
market
20
the
geared
LLPD
per
state.
up
cent,
The
to
coverage
and
improve
in
district.
and
to
safeguard
the
marketing outlets and developing
an aggressive marketing strategy is
4.6.5 Key Issues and
essential to protect the interest of
Recommendations
The
crux
Kozhikode
of
the
district
issues
is
that
the milk producers in the district
in
the
market coverage by Milma appears
to be very low. One of the reasons
is
marketing
infrastructure
in
Kozhikode district is inadequate to
for
which
the
components
suggested are shown as table 4.8.
The table is more or less self
explanatory. Few deserving special
mention are explained below.
meet the growing demand and to
a. Milk Parlors
counter
The
The milk parlors will be positioned
Kozhikode district is under the
in strategic positions to attract
their
competitors.
116
Kozhikode District
Table 4.8 Additional Marketing Infrastructure Suggested for Kozhikode
District
1
Depot/Parlor
1.1
1.2
1.3
1.4
2
Milk parlor civil
Shoppe support
Space in super market
Decorated mobile product vehicle
Marketing Infrastructure for
Preserving/Maintaining Quality
of Milk
PUF vehicle container (3 MT)
PUF box 25 - 460 ltr.
Shipper box for ice-cream
200 liter freezers for dealers
200 liter freezers glass top for
dealers
120 LTR freezer
500 ltr. freezer for dairy
Deep freezer 320 ltr.
Deep freezer 320 ltr. (Glass top)
Visi-cooler 220 ltr.
Visi-cooler 320 ltr.
Awareness Programme for
Consumers
Consumer awareness Programme &
Publicity materials (Stand board,
POP material, banners, etc.)
Freezer subsidy
Refrigerator subsidy
Support for milk stockists
Canopy with eutectic freezer
subsidy
Total
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
2.11
3
3.1
3.2
3.3
3.4
more
consumers
to
Milma
will
No. of
Units
Unit
Cost (Rs)
Total
Cost (Rs
in Lakh)
15
6
18
3
60000
500000
20000
50000
9.00
30.00
3.60
1.50
3
250
30
90
250000
LS
6000
13000
7.50
11.00
1.80
11.70
90
120
10
90
120
90
90
17000
11000
23000
17000
20000
20000
30000
15.30
13.20
2.30
15.30
24.00
18.00
27.00
15
15
11
LS
5000
3000
200000
161.00
0.75
0.45
22.00
18
100000
18.00
393.40
be
served
milk
and
milk
products. Apart from selling the
products in a consumer friendly
Milma products they also will act
environment.
as a media to improve the visibility
started during Phase I IDDP are
of milk and milk products. Buyers
functioning well and they provide
All
the
parlors
117
Kozhikode District
the necessary stimulus for higher
c. PUF Bodies
sales of Milma milk and milk
Among
products in the district. Therefore
infrastructures provided under the
10 more parlors are suggested to
CSS,
be established in the district.
insulated
The Milma Shoppe in towns can be
considered as a bigger version of
parlors
to
increase
the
visibility of the products and to
increase the sales. Improving the
visibility
of
Milma
milk
and
products is important to scale up
its
business.
Improving
the
business is very crucial to sustain
the
milk
production
and
the
livelihood support to the resource
poor
milk
under
producers
the
hard
operating
conditions
of
Kozhikode district. Keeping this in
mind,
MRCMPU
Shoppe’
in
various
marketing
the introduction of PUF
vehicles
in
milk
distribution routes and PUF boxes
b. Milma Shoppe
milk
the
started
Kozhikode
‘Milma
district.
Shoppe works as a brand shop of
Milma with all Milma products
available at the outlet and it works
in the retail outlets are worth
mentioning. With the addition of
the
PUF
containers
under
the
IDDP scheme during the yester
years, the entire milk transport
from Kozhikode dairy has been
switched over to PUF insulated
vehicles. The PUF boxes of varying
sizes, 50-150 liter provided at 50
per cent subsidy in the retail
outlets
together
with
the
PUF
bodied transport vehicle ensure
perfect end-to-end cold chain and
quality
assurance
–
dairy
to
consumer. Three more PUF body is
suggested
replacement
as
standby
of
old
for
and
unserviceable ones and to operate
new routes.
round the clock. It has won the
d. PUF Boxes/Visi-Coolers
appreciation of one and all and is
MRCMPU
found to be an effective tool to
demonstrated that PUF Boxes is
publicize
is
the most suited and the cheapest
suggested that three more shops
method to keep the cold chain
shall be started in towns during
uninterrupted from the point of
the project period.
origin to the point of consumption.
its
products.
It
have
effectively
118
Kozhikode District
Freezers
are
to
the Union is around 24 per cent
preserve
milk.
boxes
and is very crucial in its financial
supplied under the IDDP/SIQCMP
security and liquidity. Among all
are doing good service to this end.
the products, ice cream is the
Our field exposure visits revealed
most promising one. Unfortunately
that the retailers wholeheartedly
Milma now has only less than 5
welcome the PUF boxes because
per cent market share in the ice
they are viable alternatives for the
cream segment. The major hurdle
energy consuming freezers. They
identified
occupy
easily
expansion in Kozhikode district is
movable and are easy to clean. The
the absence of user friendly and
boxes retain the cold for about 3-4
energy saving freezers at retail
hours during which the milk is
points.
generally sold out. It is proposed
SIQCMP the Milk Union invested
that all retailers shall be provided
for retailer level freezers and as a
with new or additional PUF boxes
result the sales of ice cream have
to achieve 100 per cent cold chain
increased from 3840 liter/month
maintenance.
in 2010-11 to 15,014/month in
less
uneconomical
The
space,
Visi-coolers
are
PUF
are
excellent
equipment to keep the cold of
products like flavored milk. Hence
they (the PUF boxes and Visicoolers) are suggested as part of
market promotion.
e.
against
During
the
IDDP
market
Phase
I,
2013-14. Yet there is much more
to be achieved. A three pronged
market
intervention
–
appoint
more whole sale dealers, equip all
retail points with suitable size
freezers
and
wide
publicity
through TV channels is suggested.
Freezers for Ice Cream
The freezers of varying sizes are
Promotion
additionally required. In addition
MRCMPU LTD is selling products
canopy
fitted
vehicles
are
like ghee, curd, Butter milk, Milk
recommended for special sales in
Peda, Palada Mix, Flavored milk
tourist spots and prominent on
and ice cream. The share of milk
road places (table 4.8).
products in the total turnover of
119
Kozhikode District
f.
Consumer
Awareness
and
Publicity
in
to
the
aggressive
fold
of
Milma.
An
consumer
education
advertisement
program
Consumer awareness camps are
cum
being
visits
through all channels of media
organized to explain the chain of
shall be launched in Kozhikode
activities
district to serve two purposes –
held
and
dairy
involved
in
milk
procurement from farmers to sales
awareness
from retail outlets. The consumers
sections of people and market
get an opportunity to gather first
promotion - as a tool for socio
hand
information
assurance
stages
economic improvement for which
at
various
an amount of Rs 161 lakh is
reception,
and
are exhibited in busy places for the
publicity of the milk and milk
products. The awareness activities
are scale inadequate and are not
reaching a large segment of public
particularly those in rural areas.
facing
the
Kozhikode
fierce
district
competition
is
from
private dealers, from within and
outside the state. Sustaining and
further developing the market is
crucial to the very sustenance of
dairy production in the district.
Hence it is suggested that the
consumer
suggested.
marketing.
Advertisement boards and banners
Also
all
quality
milk
processing
among
on
followed
of
creation
awareness
programs
4.7 Milk Procurement
4.7.1 Organization of Milk
Procurement
Milk procurement is one of the key
functions of MRCMPU. The milk
procurement in Kozhikode district
is looked after by the P&I Unit
functioning
at
Kozhikode.
The
Peringolam
Unit
has
established a network of village
level DCS in the district to procure
milk
from
dairy
farmers.
The
organization of milk procurement
is explained as fig. 4.3.
The
BMC
DCS
chill
the
milk
should cross the usual styles and
collected in the society and the
enter
to
milk brought from Cluster DCS
attract more and more consumers
before transporting to Kozhikode
into
newer
frontiers
120
Kozhikode District
Fig. 4.3 Organization of Milk Procurement in Kozhikode District
Milk
Producers
BMC DCS
(23)
Cluster
DCS (151)
Non BMC DCS
(201)
(50)
KKD DAIRY
Key words: BMC DCS – Dairy Cooperative Society having Bulk Milk Cooler;
Cluster DCS: DCS attached to BMC for milk supply; KKD: Kozhikode
Figures in brackets - No. of DC
dairy in insulated road tankers.
(APCOS).
They
are
producer
The Dairy in turn process and
cooperatives
market the milk in towns and
democratically elected Board of
other urban agglomerations within
Directors. At the close of March
and outside the district. The whole
2014 the district had 222 of them
chain of activities - procurement,
as functional APCOS. In addition
processing and marketing - is well
there were seven
orchestrated and well executed.
directly under
managed
by
a
non-APCOS
the department
of Dairy Development.
4.7.2 Profile of DCS in
The table 4.9 shows the profile of
Kozhikode District
A
majority
Kozhikode
Pattern
of
the
district
Cooperative
DCSs
are
in
Anand
the DCS in Kozhikode district.
From among the 78,973 registered
Societies
121
Kozhikode District
Table 4.9 Profile of DCS Kozhikode District 2013-14
Sl.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Description
Quantity
No. of functional APCOS (31-3-2014)
No. of farmer members/DCS
Av. number of suppliers/DCS
Milk procured by DCS from farmers (LPD)
Local sales (LPD)
Milk supplied to milk union (LPD)
Milk procured by DCS from farmers /DCS (LPD)
Av. procurement/supplier (LPD)
Av. procurement price paid to DCS (Rs/Kg)
Av. price - local sales (Rs/liter)
No. of DCs collected <100 LPD
No. of DCS collected 101 - 200 LPD
No. of DCS collected 201 - 300 LPD
No. of DCS collected 301 - 500 LPD
No. of DCS collected >500 LPD
No. of DCS making one time milk collection from farmers
Av. fat%
Av. SNF%
No. of BMC DCS (31-3-2014)
No. of BMCs
Installed capacity
Av. collection through BMC in KKD. district (LPD)
No. of DCS making supply at dairy dock
No. of DCS provided AMCU (including DDD)
No. of DCS provided analyzer only (including DDD)
222
356 (78973)
81.6 (18112)
84204
18701
65503
379.29
4.65
28.39
26
27
28
29
30
31
32
33
34
35
36
37
38
39
No. of DCS provided EMT
No. of DCS provided EMT only (no analyzer)
No. of DCS provided Gerbers test equipment only
No. of Panchayat wards in the district
% coverage under milk procurement
% wards having potential for milk collection
No. of DCS in own building
No. of DCS having adequate water supply arrangements
No. of DCS having standby generators
No. of DCS having Electricity
No. of Milk cans supplied during last five years
Milk spoiled (LPD)
Av. MBRT - milk supplied through BMC
Av. MBRT - milk supplied at dairy dock
121
80
135
1378
95
5
78
108
25
170
500
20
115
60
8
50
48
98
20
NA
3.87
8.29
21
23
67000
55400
70
96
99
122
Kozhikode District
milk producers in the district at an
Out of the 222 DCS, 50 DCS
average 18,112 (23%) alone poured
(average) supplied milk direct to
milk during 2013-14.
The low
dairy during 2013-14. All others
proportion is due to that the non-
supplied milk to the BMC DCS or
producers are not removed from
Cluster DCS. Seventy eight DCS,
the DCS roll because cumbersome
35 per cent of total DCS, only
statutory procedures. The average
functions in own building. Others
procurement per DCS was 379.29
are
LPD and per supplier 4.64 LPD
hundred
during 2013-14. The local sale,
have
18,701 LPD, account for 21 per
arrangements. The absence of own
cent
procurement
building, lack of electricity and
indicating falling milk production
adequate water is identified to be
and increasing demand in local
one of the major constraints in
area. The rate of procurement per
maintaining
DCS is reasonable in comparison
standards of milk.
to
of
the
other
However
daily
districts
the
DCS
in
Kerala.
classified
according to the daily procurement
shows
that
4
per
cent
were
collecting less than 100 LPD and
yet another 25 per cent between
100 and 200 LPD. The study
shows that those DCS are not
economically viable. The reasons
for poor procurement rate are that
they are not in ideal location, nonpotential suppliers are inducted as
members and the farmers have
other option for selling milk. The
relocation of those DCS needs to
be considered.
in
Unlike
rented
buildings.
and
seventy
(76%)
and
water
electricity
in
One
good
other
hygiene
districts
of
Malabar, 43 per cent of DCS alone
possess AMCU. Large numbers off
DCS employ EMT and LR for
quality determination.
4.7.3 Coverage
The Kozhikode district has 1378
Panchayat wards of which almost
95 per cent are under the milk
procurement coverage, the recent
survey shows. Only the 5 per cent
of the left out wards have the
potential for starting new DCS. It
is assessed.
123
Kozhikode District
4.7.4 Milk Quality and Quality
Administration among DCS
The MRCMPU follows two axis
pricing ie, farmers are paid on the
basis milk fat and SNF in the milk.
The
village
equipped
to
compositional
cooperatives
are
determine
the
quality,
fat
and
SNF. Few DCS are also equipped
to
detect
added
preservatives,
adulterants and neutralizers apart
from MBRT estimations.
The quality assessment in DCS is
crucial in determining the milk
price for the farmer, in winning
their
confidence
and
overall
sustenance of dairy production.
The
different
cooperatives
in
Kozhikode district follow either of
the three known procedures of
quality
assessment
namely
conventional milk testing (Gerber’s
test
for
fat
and
LR
for
SNF
determination), Milk-O-tester for
fat and LR for SNF and Automatic
Milk Collection Units (AMCU) for
quality and price determination.
The AMCU is the most desirable
because it is convenient, error
proof, quick and transparent. The
table 4.10 shows that 96 out of
224 APCOS possess AMCU.
Although all the majority of DCS
use
AMCU
for
quality
determination very few DCS use
the auto analyzer (one of the
instruments of AMCU) reportedly
due to the reason that they are
slow to test.
Some of units are
also reported to be erratic in fat
Table 4.10 Kozhikode District Milk Quality (average) 2013-14
Parameter
Fat % APCOS
Fat % non-APCOS
SNF % APCOS
Value
3.87
NA
8.29
SNF % non-APCOS
NA
Av. MBR time BMC DCS (Mts)
115
Av. MBR time direct DCS (Mts
60
No. of APCOS using/supplied AMCU
96
No. of APCOS using/supplied Milk O
tester & LR
No. of APCOS using/supplied Gerber’s
test & LR
121
135
124
Kozhikode District
and SNF estimation while some
8.29
others have inconsistent results.
lower than in other districts of
The inappropriate performing of
Malabar. Farmer education and
the analyzers cause hardships to
introduction of AMCU can further
the farmers and DCS and the DCS
improve the quality. The MBRT of
have discontinued its usage. Few
milk supplied through BMC DCS
have changed the configuration of
averages 115 minutes (tested in
the AMCU by substituting EMT
Kozhikode Dairy). In the years to
instead of analyzer. But EMT can
come
test only fat and not SNF for which
bacterial quality will have a telling
again
be
influence on the marketability of
depended thus partially defeating
milk. The best way to usher in
the
microbial quality is to pay for
lactometer
purpose
must
of
AMCU,
the
per
cent
both
SNF
which
compositional
is
and
automation, transparency in milk
bacterial
collection and instant print out to
suggested that an incentive for
farmers.
excellent
good microbial quality may be
gadgets to ensure transparency in
introduced as a beginning towards
milk procurement in village DCS.
this end.
AMCUs
are
quality
also.
It
is
It avoids the hassles of quality
checking,
volume
measurement
4.7.5 Key Issues and
and payment of milk price. Hence
Suggestions
we are of the opinion that the
Under
analyzers need to be re-introduced
schemes an amount of Rs 376.75
after rectifying the practical issues
has been invested for procurement
in
activities ranging from BMC to
consultation
manufacturers
and
with
the
suppliers.
milking
the
IDDP
vessels
and
and
SIQCMP
capacity
Almost all BMC DCS possess the
building of farmers and elected
equipments for MBRT estimation.
members in Kozhikode district.
But not all of them have started
The IDDP support is available for
using.
two
About the quality, the procured
milk has 3.87 per cent fat, and
more
years
(2014-15
and
2015-16). Therefore the support
suggested for milk procurement
125
Kozhikode District
under the NPDD is meant
to
issue. Therefore it is suggested to
stabilize and carry forward the
include provision for subsidizing
achievements already made. The
new DCS building at the rate of Rs
suggested
the
one lakh per DCS. Eighteen DCS
estimated cost can be found from
are identified to have the land and
table 4.11.
financial capacity to do this during
components
and
the project period.
a. Buildings
As pointed out in the forgoing
b. Water Supply System
sections a sizeable number of DCS
Developing water source and water
function in rented buildings. Most
supply is becoming increasingly
of them do not have the minimum
important in Kozhikode district.
facilities
milk
Most of the DCS find it difficult to
BMC
mobilize
collection
for
hassle
and
free
dispatch.
adequate
capital
for
installation is virtually impossible
investment. Hence a subsidy of
and effluent disposal is a serious
rupees sixty thousand per unit is
Table 4.11 Milk Procurement Activities Suggested under NPDD Kozhikode
District
Sl.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Component
Building construction
Water supply system
Bore well
Open well
Working capital assistance
Aluminium cans
Electronic milk tester
Electric centrifuge
Weighing scale
Hand held billing device
Management grant to DCS
Subsidy to milk transport
Subsidy to cattle feed transport
Incentive to better quality milk
Total
Unit
1500
sq.ft.
No.
No.
No.
No.
No.
No.
No.
No.
No.
KG
MT
LPD
No. of
Units
Unit
Cost (Rs)
Total
Cost (Rs
in Lakh)
18
100000
18.00
10
10
15
3
300
4
8
3
8
8
370000
43000
1800
60000
25000
10000
30000
2500
15000
2500
15000
10000
30000
0.5
400
0.5
6.00
2.50
1.50
0.90
7.5
0.6
0.2
0.45
0.8
2.4
1.85
172
9.85
224.55
126
Kozhikode District
suggested for ten numbers at an
estimated cost of 6.0 lakh. Water
d. Incentives for Good Quality
Milk
harvesting, installing water tanks
Consequent to the implementation
and
of SIQCMP the bacterial load of
pumping
facilities
are
envisaged. In addition digging ten
raw
bore wells at the rate of rupees
significantly.
twenty five thousand per unit and
count
fifteen open wells at the rate of
especially
rupees ten thousand per unit are
properties (taste and flavor) of the
also
milk apart from heat stability and
suggested
for
Kozhikode
district.
been
reduced
The
low
bacterial
improves
the
quality
the
organoleptic
not compensated for their extra
effort to reduce good quality milk.
Transport
Cattle feed is being sold through
DCS.
The
wholeheartedly
farmers
welcome
arrangement
because
convenience,
easy
the
of
the
access
and
credit facility. The transport of
cattle
feed
from
producer
companies to the DCS entails cost.
It is suggested to subsidize the
transport
cost.
The
estimated
quantity
sold
in
Kozhikode
district comes to 43,000 MT in
three years. An amount of Rs
0.4/kg is the average transport
cost. The total for three years
works out to Rs 172 lakh. The
amount
has
longer shelf life. The farmers are
c. Subsidy for Cattle Feed
the
milk
may
be
provided
as
subsidy so that the price of cattle
feed can be kept low.
As a beginning it is proposed that
the top 2 per cent of the milk may
be paid an incentive of Re 0.50
per liter of milk. The estimated
daily procurement is 90,000 LPD
and
the
incentives
at
the
suggested rate works out to Rs
9.85 lakh in three years.
4.8 Cattle Shed and Farm
Machineries
Well constructed cattle sheds are a
pre-requisite
for
clean
milk
production. A dirty cattle shed
contributes substantially towards
external contamination of milk and
entry of microbes in to the udder
causing
sub-clinical/clinical
mastitis. A well constructed cattle
127
Kozhikode District
Table 4.12 Farm Equipments
past 289 cattle sheds were funded
Supplied to Farmers in Kozhikode
under the IDDP/SIQCMP schemes.
District
During the course of the field work
Sl.
No.
Item
Quantity
1
Cattle sheds modified
289
2
Milking machines
3
Rubber mats
4
Pressure washers
5
Gen sets
10
6
Cow drinker
72
7
Chaff cutter - Motorised
12
64
we found that the floor of cattle
sheds are well made using the
allotted
should
also
However,
1275
construction of new cattle sheds is
112
very expensive in Kerala due to the
high labor cost and the cost of
materials. The budget provision of
Rs
shed
fund.
10,000/-
is
thoroughly
provide
inadequate and will not meet even
operational easiness and animal
10 per cent of the overall cost.
comfort. Most of the cattle sheds
Therefore,
are a mere make shift shelter with
sensible if the support could be
mud/wood
extended
floor,
PVC/Silpaulin
tile/asbestos/
be
more
renovation
and
modification of the cattle sheds
musky, all in one floor (no urine or
with watering facility rather than
dung channel) and without any
insisting for a new cattle shed. The
watering arrangements. The cows
numbers suggested are given as
remain in this shelter most of the
table 4.13.
(no
quarters
dark
for
would
and
time
roof,
it
grazing).
and
the
The
hind
udder
often
remain soiled by dung and mud.
Udder and teat injury is common.
Feeding
of
occasional.
water
is
Considering
only
the
importance of god cattle sheds, the
Milk Union roped in funds for
cattle
shed
modifications
and
making new cattle sheds under the
IDDP and SIQCMP schemes. In the
On the face of shrinking family
size, changing status of women in
the
society,
opportunities
for
employment in other sectors of the
economy the availability of labor
for dairy farming is fast declining.
Hired labor for dairy farm activity
is
uncommon
in
Kozhikode
district. Hence reducing the labor
for cattle keeping and making the
daily
chores
less
arduous
is
128
Kozhikode District
Table 4.13 Cattle Sheds and Farm Machineries Suggested under NPDD for
Kozhikode District
A
Cattle Shed
1
Strengthening of old
sheds/constructing new
Auto watering system
Cattle Farm
Mechanization
Gen set
Pressure washers
Rubber mats
Total (4.0)
2
B
3
4
5
No. of
Units
Unit
Cost (Rs)
Total Cost
(Rs in
Lakh)
150
100
15000
5000
22.5
5.00
30
100
800
75000
7500
2500
22.5
11.25
20.00
81.25
crucial for the very sustenance of
major
dairy
the
entrants to enter in to the cattle
economic and social significance of
farming. To overcome this issue,
dairying,
the
farming.
Considering
the
MRCMPU
has
obstacle
cattle
for
induction
the
has
new
been
financial
resorted by several development
support for farm mechanization.
agencies in the state as a support
The Union has been providing and
scheme.
channeling
few
distributed 900 heifers to 180
years. However only few farmers
farmers in Kozhikode district to
could be funded so far and many
promote cattle rearing.
initiated
providing
support
since
more are on the queue. It is
suggested that the assistance may
be continued and funded under
NPBBDD.
suggested,
The
components
quantity
and
the
estimated cost can be found from
the table 4.13.
4.9 Cattle Induction
The lack of easy access to bank
loan at low interest remains as a
The
MRCMPU
too
The cattle keeping in the district is
a
job
of
economically
weaker
sections of people (BPL families)
and women. It continues to be a
major source of securing daily
livelihood
to
them
especially
women. Therefore the following
number of cattle (table 4.14) is
recommended
to
be
supported
under NPDD.
129
Kozhikode District
Table 4.14 Cattle Induction Program Suggested under NPDD
Kozhikode District
Sl.
No.
Cattle Induction
No. of
Units
Unit Cost
(Rs)
Total
Cost (Rs
in Lakh)
1
Purchase of animals
120
40000
48.00
2
3
Purchase of heifers
Transportation cost of
animals
Cattle/Heifer insurance
120
30000
36.00
240
2000
4.80
150
2500
3.75
4
Total
ƒ
ƒ
ƒ
92.55
Only the BPL families will be
IDDP and SIQCMP schemes for
included for cattle induction
upgrading the Kozhikode dairy lab.
activity.
The lab has facilities including
Fifty percent of cows and fifty
equipments
percent of heifers are reserved
However
for women.
activities shown in table 4.15 are
Women
members
will
be
allowed 75 per cent of price
subsidy and others 50 per
cent of purchase price.
ƒ
Transportation cost shall be
met in full under the scheme.
ƒ
Seventy
five
percent
of
insurance amount shall be
included under the scheme
and
the
balance
as
beneficiary contribution.
for
routine
tests.
the equipments and
required to be added in Kozhikode
dairy for the following reasons.
6. As part of modernizing the
hygienic systems in the dairy
automatic
system,
data
software
capturing
for
easy
monitoring of FSMs and a
high capacity pressure jet is
proposed in the Project.
7. The
Kozhikode
dairy
is
already ISO: 22000 certified
4.10 Establishment of
Laboratory in
Kozhikode Dairy
An amount of Rs 85.88 lakh had
been invested under phase I&II of
dairy
by
DNV.
recertification
surveillance
certain
The
and
audits
and
equipments
and
software for the maintenance
130
Kozhikode District
Table 4.15 Establishment of Laboratories in Kozhikode District under NPDD
Sl.
No.
A
1
2
3
4
5
B
1
Establishment Laboratories
No. of
Units
Unit
Cost (Rs)
Total
Cost (Rs
in Lakh)
1
1
LS
500000
20.00
5.00
1
1
0
100000
100000
0.00
1.00
1.00
1
500000
5.00
32
Capital Expenditure
Central milk testing lab
Purchase of laboratory furniture
System for quality assurance
(HACCP/ISO) including equipment/
computer hardware and software, etc.
High capacity pressure jet
FSMS monitoring software
Recurring Expenditure
Accreditation and certification of dairy
establishments under HACCP/ISO
Total
of these systems are to be
be
acquired.
organization to evaluate the
The
amount
suggested is towards this end.
8. Certification
subsequent
audits
yearly
and
survival
audits by the officials from
the accreditation body are to
conducted
in
the
food safety system. A lot of
Hygiene systems, trainings,
and other capital investments
are
needed
for
the
above
process.
Laboratory Kozhikode
131
Kozhikode District
9. In the light of stringent food
products
can
be
tested
safety laws like Food Safety
monthly. Internal
and Standards Act, 2011 and
action can also be taken in
increasing awareness of the
instances of non-compliance
consumers about food safety
with quality standards. This
and consumer rights, it is
lab
very
the
consumer
organization acquires FSMS
regarding
Certification
products.
Farms
processing
plant
essential
units
for
for
products
that
the
entire
supplying
with
safe
consistent
quality.
the Kozhikode dairy lab as
Central Milk Testing Lab for
union,
with
modern
testing facilities so that the
dairies in the all the six
districts can do the costly
analysis of their milk samples
in a central point. At present
the
samples
pesticide
analysed
also
for
antibiotic,
residues
in
the
are
outside
examine
complaints
quality
of
dairy
and
water
supplies can be screened for
coliform
10. The MRCMPU is upgrading
the
can
regulatory
bacteria.
The
processing and cooling water
in the dairy processing plants
are required to be tested in
monthly basis, which can be
carried out in the proposed
lab. The Central Dairy lab
assists in ensuring all dairy
products
produced
in
the
units meet the high quality
standards
that
consumers
expect
the
from
MILMA.
approved labs. The lab once
completed
can
undertake
analysis
like
bacterial
enumeration,
pesticide
screening
and
for
antibiotic
residues, etc and more. Both
raw
milk
and
4.11 Clean Milk Production
Under
the
CMP
scheme
the
MRCMPU supplied the following
articles
to
the
farmers
in
Kozhikode district (Table 4.16).
finished
132
Kozhikode District
Table 4.16 CMP Kits Supplied under SIQCMP Scheme in Kozhikode
District
Sl.
No.
1
Article
Physical
Detergents & chemicals to DCS/farmers
lot
Financial
(Rs in Lakh)
12.92
2
Stainless steel utensils to beneficiaries
lot
53.41
3
Milking machines
50
25.00
The distribution of detergents and
and they whole heartedly welcome
chemicals to farmers had little
the
impact on clean milk production.
facilitate to improve the initial
In practice the farmers discontinue
quality of milk. Only few farmers
the
and
in the district are the beneficiaries
disinfectants once the free supply
of this component and many more
is stopped. Hence the supply of
are on the queue. Therefore the
free
for
utensils
not
supplied through the DCS free of
use
of
chemicals
detergent/chemicals
udder/utensil
cleaning
is
recommended.
utensils
and
These
vessels
utensils
may
be
cost under the NPDD to those
The stainless steel utensils (the
milking
component.
and
carrying
vessels) are of use to the farmers
farmers who are yet to receive
them. The numbers suggested and
the
financial
requirements
are
given as table 4.17.
Table 4.17 CMP Kits and Milking Machines Suggested for Kozhikode
District under NPDD
Sl.
No.
1
2
3
Component
Stainless steel utensil kit/
accessories
Electricity operated milking
machine & other equipments for
hygienic milk handling at
village/farmer level
Manual milking machines
Total (7.0)
No. of
Units
Unit
Cost (Rs)
Total
Cost (Rs
in Lakh)
1500
400
6.0
20
55000
11.0
50
6000
3.00
17.25
133
Kozhikode District
Milking machines are relevant in
participating farmer members. The
today’s context as the family labor
TIS was a major component under
for farmstead jobs are steadily
the IDDP and SIQCMP schemes
declining. Our field exposure visits
earlier implemented in the district.
shows
The major components, financial
that
beneficiary
almost
all
farmers
schemes
carry
milking
although
of
out
the
earlier
machine
continuous
service back up is essential. It is
suggested that twenty farm owners
owning five or more milking cows
shall
be
supplied
milking
machines at subsidized (75%) rate
under NPDD. It is also suggested
that fifty hand operated machines
shall be supplied to the needy
farmers after making a scientific
and
methodical
field
trial
in
association with KVASU.
(TIS)
The technical input services include
support for animal breeding, health
and
prophylaxis,
fodder
development and other associated
activities
for
the
physical
attainments
in
Kozhikode district can be found
from table 4.18.
Those services are under the state
domain and the line departments
have a variety of schemes for
supporting those activities. The
efficacy of AI and health care
services at farm points, however,
are
debatable,
shows.
Since
the
some
HH
survey
of
those
services are in the state domains,
a change in the service delivery
systems requires policy decisions.
4.12 Technical Input Services
care
and
benefit
of
To avoid duplication, such services
(AI, health care, home stead fodder
production, etc.) are not suggested
to be included under the NPDD.
The components suggested, the
most essential ones, on a priority
basis can be found in table 4.19.
Table 4.18 Technical Input Services Achievements in Kozhikode District
under Earlier Schemes
Component
Technical input
services
Physical
Achievement
Financial
IDDP/
SIQCMP
Union/
Beneficiary
Total
Lot
41.4
17.65
59.05
134
Kozhikode District
Table 4.19 Technical Input Services Suggested in Kozhikode District under
NPDD
Component
No. of
Units
Unit Cost
(Rs)
1
2
3
Liquid nitrogen containers
Audio visual kits etc.
6
1
200000
Total
Cost (Rs
in Lakh)
0
2.00
4
5
Chaff cutter
180
36
5000
20000
25.00
7.20
10
100000
10.00
Sl.
No.
Animal health & breeding
input camps
Commercial fodder
production
Total
The
LN
44.2
containers
for
program in Kerala. The reasons are
replacement of the ones in use. As
many, the most important being
this component is covered under
the land fragmentation and the
the NPBB separate provision is not
declining farming activities. On the
suggested. The animal health and
other hand large land holdings and
breeding input camps include a
fallow land are potential source for
pilot
fertility
fodder production – fodder as a
management of dairy cows among
value added crop in irrigated land.
farmers. The program envisages
The fodder so produced shall be
identification
program
providing
veterinary
reproductive
of
are
for
infertile
cows,
marketed among the DCS members
management
and
at cost price. The scheme shall be a
support
to
problems
correct
if
flagship program of NPDD.
any,
documenting the information for
4.13 Information and
adoption elsewhere. It is a DCS
Communication
based program centrally controlled
Technology Networking
and
monitored
from
HO
of
MRCMPU.
The conventional homestead fodder
production is a tried and failed
The MRCMPU apart from being a
farmers’ organization is also a
multi crore business concern. Its’
business units are far flung and
135
Kozhikode District
widely distributed. The application
shared
and full utilization of information
projects. The share of Kozhikode
and
district is illustrated as table 4.20.
communication
technology
between
the
district
alone will enable the MRCMPU to
modernize their units and keep
abreast with their competitors. It
is also essential that the whole
business
of
MRCMPU
is
transparent to their stakeholders,
the dairy farmers. Unfortunately
the Milk Union is in the infant
stage in exploiting the benefits of
I&C technology.
4.14 Manpower Development
The
training
and
development
program is adopted as a tool for
organizational development and to
make
strides
standards
reduction,
and
in
productivity
including
energy
product
cost
conservation
improvement
in
MRCMPU. Apart from the Union
The current status is that the
employees, the staff and elected
dairies
members of the DCS and the
are
internally
computerized
networked
and
(intranet).
Board
are
also
trained
Few DCS are also computerized
appropriate
but not networked.
The milk
4.21 shows the numbers trained in
Union proposes to expand the I&C
various categories from Kozhikode
so that the system will function as
district.
a
client
server
architecture
network with Six centers at each
district
(Palakkad,
Kozhikode,
Malappuram,
Wayanad,
Kannur,
Kasaragod) and a central server
system
linking
all
these
six
centers. The data and information
will be made available to all the
districts and DCS. The details of
the proposed system are given as
annex-1. The expenditure is to be
subjects.
The
on
table
The DCS staff has been trained at
the HRD centre, Kozhikode under
MRCMPU on the relevant subjects.
The trainers included those from
within the organization and also
invited from other organizations.
The duration ranged from one to
three
days
and
the
subjects
handled were those relevant to the
concerned groups.
136
Kozhikode District
Table 4.20 Information and Communication Technology NetworkingKozhikode District
Sl.
No.
1
1.1
1.2
1.3
2
2.1
2.2
2.3
2.4
2.5
3
3.1
3.2
3.3
3.4
3.5
3.6
3.7
Components
Capital Expenditure
Purchase of Computer/HHB
Desktop
Laptop & Netbook
Hand held range of computers
Purchase of Servers
Rack server
42 U server rack
Server storage device
Tape backup
UPS for server
Purchase/Installation of Software Systems
Weblogic server suite purchase
Oracle database 12C
Antivirus software
Software consultation charges (AMC)
Onsite software analysis and evaluation for
Union and DCS purchase
Software purchase & up-gradation charges
Leased line communication cost
Total
Unit Rate
Units
(Rs in
Lakh)
Amt.
(Rs in
Lakh)
0.50
0.60
0.30
14
11
30
7.00
6.60
9.00
9.00
1.00
8.00
8.00
7.00
1
1
1
1
2
9.00
1.00
8.00
8.00
14.00
15.00
15.00
1.00
5.00
1
1
1
1
15.00
15.00
1.00
5.00
5.00
30.00
10.00
1
1
1
5.00
30.00
10.00
143.60
Table 4.21 Employees and Elected Members Trained from
Kozhikode District
Sl.
No.
1
a
b
c
d
2
3
4
5
6
7
8
9
10
Training Course
C D Program
No. of programmes
No. farmers trained
FIP - Local farmers attended
Management orientation (MCMOP)
Training of BMC/DCS/MCC staff
Training of DCS Secretary
Training of DCS Employees
Training on AI
Training of farmers on GMP/ GHP
Training of farmers on AH practices
FIP
Training on marketing
Training of management committee members
Number of
Persons
Trained
13
1716
1176
73
31
179
140
20
3513
129
346
16
90
137
Kozhikode District
The CD program includes training
4.14.1 Key Issues and
Suggestions
in village cooperatives followed by
a visit to processing Dairy/cattle
feed
plant.
Farmers
are
the
7. Future
training
especially
those for the middle level
trainees. The farmers Induction
employees
program is normally carried out in
Supervisors should be hand
the HRD Centre Kozhikode. The
on
Dairy
subjects and skills relevant to
Animal
Management
Training to the farmers has been
under taken in APCOS DCS. The
training
included
lectures
by
starting
training
from
exclusively
on
them.
8. Farmers training should be
organized
in
villages
itself
experts and visit to a few well run
with the support of LSG and
farms. The farmers were given
Village
opportunities to see for themselves
under MRCMPU.
the success and failure stories.
The
training
for
MRCMPU
Office in the institutions of repute
in India, both inside and outside
the state. An interaction with a
group
showed
that
the
trainings were partially useful for
upgrading
their
skill
Workers
9. All out and comprehensive
employees is arranged by the Head
test
Extension
and
knowledge.
training
on
Eradication,
Clean
Production
Village
Mastitis
for
Milk
farmers,
Extension
Workers
and DCS employees should
be initiated on a project mode
and results closely watched
and monitored.
10. The
Dairy
Production
Managers,
Officers
An amount of Rs 62.16 lakh had
Marketing
been spent for various training
exposed to higher levels of
programs
district
knowledge on production and
under the IDDP and CMP Phase I
marketing management. They
and II.
should
in
Kozhikode
staff
be
should
and
be
provided
138
Kozhikode District
opportunity to visit centers of
purchase
of
excellence outside the state.
packing
materials
11. The
thrust
building
of
of
employees
higher
should
modern
Systems
capacity
level
be
on
Management
rather
technical
than
subjects.
expenses.
maintain
SMP,
The
cattle
feed,
and
other
Dairy
minimum
has
to
quantity
of
finished products at all times to
ensure
uninterrupted
on
Minimum
quantity
of
They
materials,
consumables
sales.
all
raw
packing
should be exposed to what
materials, stores and spares, etc.
happens
are also required to sustain smooth
in
dairy
sector
elsewhere in the country (eg.
Schreiber Dynamix) to widen
their vision and outlook.
processing/production operation.
The working Capital requirement
of
12. The FIP must be gradually
phased out.
the
Union
is
fluctuating
throughout the year depending on
local milk procurement. The milk
The courses suggested and the
procurement
estimated costs are given as table
fluctuates
4.22.
lean
of
Union
between the flush and
season.
(January
the
to
During
May)
the
Flush
working
capital buffer the timely payment
4.15 Working Capital –
of milk value to the farmers even
Kozhikode District
The MRCMPU require large amount
towards
Working
Capital
in
Kozhikode district for the payment
of
milk
value
to
producers,
Table 4.22 Proposed Training Program under NPDD – Kozhikode District
Sl.
No.
Course
1
CD Programme
2
FIP
3
4
Training of DCS/BMC/MCC
Training of MRCMPU
Unit
No. of
Units
Unit
Cost (Rs)
Total
Cost (Rs
in Lakh)
Prog.
15
80000
12.00
Person
600
300
8.10
0
7.86
3000
9.40
Person
45
139
Kozhikode District
employees
5
Institutional skill development
Person
45
3000
20.00
Total
57.36
while the money is held up in the
The Milk Union does not have the
form
ghee,
adequate cash reserve to meet all
powder,
the expenses mentioned above.
consumables, and cattle feed, etc.
The Union resorts to soft loans
During
is
and over drafts to avoid disruption
procuring milk from other states
of milk value payments to farmers
for which payments are made in
and
advance.
services
of
inventory
skimmed
like
milk
lean
season
During
union
this
period
sufficient stock of SMP is to be
stored to take care of any possible
short supply of liquid milk from
outside state.
to
maintain
to
the
supplies
and
DCS.
The
borrowings attract interest which
in
turn
limits
beneficiary
the
programs
farmer
and
investments in dairy. In coming
In both, flush and lean, period the
years the burden is poised for
Milk Union is supplying cattle feed
increase.
and other inputs to the societies
that an amount of Rs 275.0 lakh
on credit basis. Present supply of
may
cattle
in
assistance towards working capital
Kozhikode district is more than
assistance for Kozhikode district.
600 MT per month.
The amount suggested is far below
feed
to
societies
be
Hence it is requested
paid
as
a
one-time
the milk value for 21 days as
The milk value for 21 days in base
shown in table 4.23.
year (2013-14) comes to Rs 510.7
lakh
at
the
current
rate
of
procurement and price. This alone
is expected to grow at 8 per cent
per annum and at the end of
2016-17
will be
643 lakh. In
addition the aforesaid inevitable
payments like that for cattle feed
and consumable are to be made.
140
Table 4.23 The Amount Required to Pay Milk Value for 21 Days in
Kozhikode District
2013-14
(Actual)
201415
201516
201617
Average
Milk
Price/liter
(Rs)
84200
90936
98211
106068
28.88
Milk Procurement (LPD)
Total Milk Total Milk
Value
Value
Days
(Base Year)
(EOP)
(Lakh)
(Lakh)
21.00
510.66
643.28
5. WAYANAD DISTRICT
Contents
Executive Summary ........................................................................143
5.1 General Features .......................................................................146
5.2 Trend in Cattle Population .........................................................147
5.3 Trend in Milk Production from Bovines ......................................148
5.4 Milk Chilling Facilities in Wayanad District ................................148
5.5 Milk Processing .........................................................................149
5.6 Milk Marketing ..........................................................................153
5.7 Milk Procurement ......................................................................165
5.8 Cattle Shed and Farm Machineries ............................................172
5.9 Cattle Induction ........................................................................174
5.10 Establishment of Laboratories .................................................176
5.11 Clean Milk Production .............................................................176
5.12 Technical Input Services (TIS) ..................................................178
5.13 Information and Communication Technology Networking ........179
5.14 Manpower Development...........................................................181
5.15 Working Capital – Wayand District...........................................184
Kozhikode District
Wayanad District
Wayanad
District
142
Kozhikode District
Executive Summary
Wayanad is one of the prominent
suggested
dairy
replacement will cost Rs 55.00
districts
Agriculture
of
is
Kerala.
the
major
employment and income provider
and cattle rearing are germane to
the vast majority of farmers in the
district.
have
However,
shown
recent
that
the
years
cattle
numbers have declined by 37 per
cent from 1996 to 2012 and cows’
in-milk
by
Surprisingly,
32
the
per
cent.
annual
milk
production has shown an increase
from 83 thousand MT (1997-98) to
114 thousand MT (2011-12).
additions
lakh.
The market survey shows that
supply demand gap of milk in
Wayanad
district is 24,027 LPD
during 2013-14. The market share
of MRCMPU in the liquid milk
segment is low at 22 per cent
which
is
not
market share in Wayanad. Hence,
an aggressive marketing strategy
supported
by
dairy
improve
in
Wayanad
The
is one of the reasons for the low
infrastructure
Kalpetta
satisfactory.
inadequate market infrastructure
The MRCMPU has a processing
at
and
the
an
is
adequate
required
market
share
to
of
district. The installed capacity of
MRCMPU.
the dairy is fifty thousand LPD.
parlors and Shoppe are suggested
During
Dairy
in prominent public places. Wide
processed milk at an average 1.18
publicity through print and visual
LLPD that is 118 per cent above
media is also suggested. Periodic
the installed capacity. Hence, there
market
is an urgent need for expanding
consumer
the
of
niche products, attractive packing
But considering
for flavored milk ice cream, peda,
2013-14
processing
Wayanad dairy.
the
capacity
Opening of new milk
surveys
and
preferences
R&D
on
(example
the expansion works in hand, the
etc.)
major expansion is kept on hold
estimated
and only the unavoidable additions
promotion works out to Rs 406.95
are
lakh.
considered
now.
The
are
also
cost
suggested.
of
The
market
143
Wayanad District
The MRCMPU has built up an
induction program is suggested.
extensive net work of DCS and
NABARD norms shall be followed
BMCs for milk procurement from
for administering the subsidies.
farmers. All DCS have reasonably
The overall expenditure for 240
good milk testing facilities. All
animals is estimated to be Rs
BMC DCS have facility for MBRT
92.55 lakh.
estimation. The field level milk
testing, however, requires further
refinement. The major constraints
identified are lack of convenient
buildings for DCS, inadequacy of
good quality water, incentives for
clean milk production and support
for
cattle
feed
transport.
The
suggested procurement activities
in Wayanad district will cost Rs
144.73 lakh.
The lack of good cattle sheds and
farm machineries are identified to
be a major constraint in milk
production
in
the
district.
Strengthening of old cattle sheds,
It is suggested to establish a
central
milk
testing
lab
at
Kozhikode dairy by pooling the
funds from all the districts. This
will
eliminate
duplication
of
expense in all the labs. Additional
equipments and furniture are also
required in Wayanad dairy lab.
The estimated cost is Rs 54.00
lakh.
The
other
farmer
programs
beneficiary
suggested
distribution
of
are
stainless
steel
utensils, milking machines, etc at
a cost of Rs 17.25 lakh.
constructing new cattle sheds and
The
supplying farm machineries and
include
equipments at subsidized prices
breeding,
are suggested at a total cost of Rs
prophylaxis, fodder
46.25 lakh.
and other associated activities for
In order to motivate and attract
cattle keeping among the below
poverty line (BPL) families, and
SC/ST
communities
a
cattle
technical
input
services
for
animal
support
health
care
and
development
the benefit of participating farmer
members. The activities suggested
except those being attended by the
line departments will cost Rs 46.0
lakh.
144
Wayanad District
The MRCMPU needs to network
activity
the various units and DCS for
programs have been running for
effective information sharing and
the last few years. It is suggested
communication.
to scale down certain programs.
system
is
architecture
centers
a
The
suggested
client
network
one
in
server
with
each
six
district
(Palakkad, Malappuram, Kozhikode,
Wayanad, Kannur, Kasaragod) and
a central server system linking all
the six centers. The data and
information will be made available
to all the districts and DCS. The
estimated cost is Rs 149.40 lakh.
The HRD through training and
skill
development
is
a
routine
of
MRCMPU.
The scaled down programs would
cost Rs 33.45 lakh.
The Union is often on loan either
to pay the milk price or to meet the
daily expense. In order to avoid
loans/OD an amount of Rs 443.7
lakh is suggested as Working
Capital.
The
suggested
programs
follows.
Milk processing and packaging
Amount
(Rs in Lakh)
55.00
Milk marketing
406.95
Milk procurement
144.73
Cattle shed and farm machineries
79.50
Cattle induction
92.55
Constructing laboratories
54.00
CMP kits to farmers
17.25
Technical input services
46.00
Information and communication technology
Working capital
Total
for
Wayanad shall be summed up as
Component
Human resource development
Several
149.40
33.45
443.70
1522.53
145
Wayanad District
5.1 General Features
provider. About 83 per cent of the
Wayanad district formed on 1st
farmers are marginal, 11 per cent
November 1980 is in the mountain
small, 5 per cent semi medium
plateau
in
and the rest 1 per cent medium
Kerala. It is located in the Nilgiris
and large. The paddy cultivation in
biosphere adjoining Tamil Nadu
the district has declined over the
and
an
years and today much of the
altitude of 700-2100 above MSL.
cultivable dry land is under high
The district is surrounded on the
value plantation crops; coffee and
east
pepper. Dairy farming is germane
of
Western
Karnataka
by
districts
states
Nilgiris
of
Karnataka
Ghats
and
Tamil
at
Mysore
Nadu
to the farming system in Wayanad
complementing
the
crop
on
the
district
of
production and subsisting on the
south
by
natural grass, weeds, residues and
Malappuram and on the west by
bye-products of crop production
Kozhikode and Kannur districts of
and in turn enriching the soil
Kerala. Wayanad is the smallest
through
district in the state with an area of
retention. Wayanad is one of the
2131 sq.km., 5.5 per cent of the
very few districts in the state with
total geographical area of the state.
some special attributes for dairy
The district is subdivided into
production.
north
by
Karnataka,
three
respectively,
and
Coorg
on
the
Taluks/blocks,
has
25
Panchayats, 49 revenue Villages
and one Municipality. The district
inhabits 8.17 lakh people with a
perfectly well balanced sex ratio of
1:1 (2011 census). The density of
population
384/sq.km.,
against
the state average of 819/sq.km. is
The
manure
Department
and
of
water
Animal
Husbandry provides the animal
health and breeding services. The
department
has
one
District
Veterinary Center, two Veterinary
Poly Clinics, one Regional Artificial
Insemination
Veterinary
Center,
Hospitals,
six
seventeen
one of the lowest. Agriculture is
Veterinary
the
seventy four ICDP Sub Centers
major
contributor
to
the
district economy and employment
apart
from
Dispensaries
the
District
and
Office
146
Wayanad District
functioning at Kalpetta. The DDD
1996 and 2007 and then made a
provides the dairy extension and
marginal gain from 2007 to 2012.
statutory support like auditing of
As is evident from the fig. 5.1 both
DCS.
The department has the
the total and in-milk cows showed
district office at Kalpetta, three
similar trend during this period.
dairy extension service units and
The total cattle declined by 37.2
one
The
per cent and cows in milk by 31
MRCMPU has one Dairy Plant of
per cent. The in milk buffalo had
50,000 LPD and one P&I unit at
mixed
Kalpetta
quality
control
unit.
fortune.
The
numbers
and
one
MCP
at
sharply declined from 2252 to 248
Mananthavady.
The
Veterinary
between 1996 and 2003 and there
college at Pookkott, apart from
after marginally gained between
Veterinary education, also provides
2003 and 2012.
animal
accuracy of the data on cattle
health
and
extension
support.
numbers
is
Although the
questionable,
it
is
certain that many dairy farmers in
5.2 Trend in Cattle Population
Wayanad district dropped out of
The official statistics show that the
dairying
cattle
economic and other factors.
population
in
Wayanad
after
1996
due
to
district declined sharply between
Fig 5.1 Cattle population Wayanad District
(source Cattle Census AHD GOK)
140000
120000
N u m b ers
100000
80000
60000
40000
20000
0
1996
2003
2007
2012
Total Cattle
122303
103694
65459
76777
Cows in milk
29453
30659
20289
33100
Buffalo in milk
2252
248
463
1900
147
Wayanad District
5.3 Trend in Milk Production
from the MCP at Mananthavadi
and the Wayanad Dairy at Kalpetta
from Bovines
According to the ISS estimates (Fig.
provide the milk chilling facility in
5.2) the annual milk production in
the district. The position of milk
Wayanad district
chilling facility in Wayanad during
increased from
82.74 thousand MT in 1997-98 to
114.25 thousand MT in 2011-12 in
spite of an immense fall in the total
cattle
population.
Although
the
accuracy of the data is questionable,
we have no other option but to
accept the same because no other
authentic data exists.
Since most of the milk collected
from
the
BMC’s
Mananthavadi
area
in
is
the
being
transferred to Kannur dairy, the
Manathavadi
now
chilling
functioning
as
station
a
is
pooling
station for the chilled milk from
5.4 Milk Chilling Facilities in
Wayanad District
The BMCs installed in various
DCSs of Wayanad district, apart
120
March 2014 is shown as table 5.1.
the neighboring BMCs in order to
reduce the transportation cost and
other over heads. Wayanad is the
only district among all the districts
Fig 5.2 Milk Production from Bovines in
Wayanad district ( source ISS AHD GOK)
100
M ilk '0 0 0 M T
80
60
40
20
0
97-98
2001-02
2004-05
2008-09
2011-12
82.74
92.36
71.02
101.43
114.25
148
Wayanad District
in Malabar, collecting chilled milk
capacity of 50,000 LPD. This dairy
exclusively through BMCs. Also
is located at Chuzhali, about 3 Km
there are only a few cluster DCSs
away from Kalpetta town. The
in comparison to other districts.
procurement area of the Dairy is
As
Wayanad district.
there
is
unused
installed
The average
capacity among BMCs in Wayanad
milk procurement in 2013-14 was
district, the addition of chilling
1,20,900 LPD, 242 per cent of the
capacity during the current phase
installed
of NPDD is not recommended.
1,20,900 litre of procured milk in
capacity.
Wayanad
Dairy,
Out
of
1,20,000
the
litre,
almost 100 per cent was collected
5.5 Milk Processing
through BMCs in chilled form.
5.5.1 Processing Capacity and
The major products of Wayanad
Capacity Utilization
Wayanad is one of the frontline
Dairy
are
liquid
milk
(three
dairy districts in the state. The
variants), curd, ghee and butter.
surplus milk from the district is
processed in Wayanad Dairy and
sold
in
Kozhikode
districts.
Wayanad,
and
The
5.5.2 Milk Processing
Infrastructure – Wayanad
Kannur,
Dairy
Malappuram
Dairy
started
functioning in April 2009 with a
AS
stated
above
the
Wayanad
dairy is one of the show pieces of
Table 5.1 Milk Chilling Facility in Wayanad District March 2014
Sl.
No.
1
2
Description
Value
No. of BMCs commissioned up to March 2014
No. of DCS in which BMCs are positioned (BMC DCS)
45
32
3
No. of cluster DCS attached to BMCs
4
Total installed capacity of BMCs ltr.
5
Av. milk collected through BMC 2013-14 LPD
6
% capacity utilization
7
Av. MBRT of BMC collected milk - Minutes
8
Av. SPC of BMC collected milk – CFU per ml
9
Av. Coliforms of BMC collected milk – CFU per ml
10
No. of milk chilling plants (Mananthavadi)
14
1, 81, 000
1, 07, 500
59
176
302813
3100
1
149
Wayanad District
Table 5.2 Details of Investments in Wayanad Dairy after Commissioning
Sl.
No.
Scheme
Amount
(Rs in Lakh)
1
IDDP I & II
167.83
Production and service block
expansion
2
RSVY
738.139
Wayanad dairy expansion +
butter project
MRCMPU.
Wayanad
The
dairy
facilities
were
in
upgraded
Major Additions
Table 5.3 Milk and Milk Products
Manufactured in Wayanad Dairy
after commissioning utilizing the
funds as shown in table 5.2.
during 2013-14
Sl.
No.
Product
Av. Qty.
2013-14
The Wayanad Dairy is making a
1
Liquid milk LPD
83374
variety of products apart from
2
Curd Kg PD
15754
3
Ghee Kg/month
1079
4
9010
6
Butter Kg/month
(March only)
Butter milk
packets/month
Sip up No./month
7
Paneer Kg/month
715
processing milk. This dairy is the
second biggest ‘Profit Centre’ of
MRCMPU.
The
processing
achievements during 2014-15 from
Wayanad Dairy are shown in table
5
8147
4193
5.3.
150
Wayanad District
In addition to the above standard
equipments requiring addition are
products and packing, the dairy
shown in table 5.5.
also made ‘Frozen Milk’ for Cool
Bars and Five liter curd and Five
liter Standard milk (4.5% Fat,
8.5% SNF) for bulk consumers
mainly hotels and institutions.
The status of major processing
equipments can be found in table
5.4.
Milk pumps and cream pumps are
proposed as spare to the original
ones since the dairy is handling
more than its processing capacity.
One pouch filling machine is also
proposed in the light of increased
sales and to use as spare during
maintenance.
The
study
shows
that
the
equipments and the space are
adequate for the present level of
activities.
All the equipments are
in
use.
full
A
few
critical
Recently
Wayanad
dairy
has
started butter production. In order
to handle butter in large volumes,
a deep freezer room is essential.
Table 5.4 Wayanad Dairy Existing Facilities and Equipments
Sl.
No.
1
Facility/Equipment
Specification
Quantity
Production Block (Carpet Area)
1.1
Service block
100
1
1.2
General go-down (including SMP stores)
160
1
1.3
Milk/Curd cold storage
200
1
1.4
Butter deep freeze
0
1
1.5
Administration block (Total carpet area)
120
1
1.6
Workers amenities block
100
1
1.7
Tray washing block
160
1
1.8
Effluent treatment plant
600
1
Capacity
Quantity
600 cans/hr
1
500/hr
2
Single can
1
2
Reception
2.1
Can roller conveyor
2.2
Can scrubber (SS 304)
2.3
Can steaming block
151
Wayanad District
Sl.
No.
3
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
4
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
5
5.1
6
6.1
6.2
6.3
6.4
7
7.1
7.2
8
8.1
9
Facility/Equipment
Specification
Quantity
Processing/Storage Equipment
Milk chillers
Tri-purpose centrifuge
Milk pump
Un-insulated milk tank
Horizontal milk storage tank
Vertical milk storage tank
CIP system- Double circuit
Pasteurizer
Milk silo
Fat Handling
Sour milk separator
Cream storage tank
Cream pump
Ghee boiler
Ghee settling tank
Ghee storage tank
Ghee pump
Ghee clarifier
Cream transfer tank
Recombination
Homogeniser
Milk Marketing
Pouch filling machine dhg. mechanical
Pouch filling machine auto sh. mechanical
Milk pumps
Date coding device for pouch filling
machines
Capacity
20 KLPH
10 KLPH
10 KLPH
5 KLPH
15 KLPH
10 KLPH
20 KLPH
10 KLPH
60 KL
Capacity
500 LPH
2000 LTR
5000 LPH
2000 LTR
3000 LTR
3000 LTR
3000 LPH
2000 LPH
1000 LTR
Capacity
10 KLPH
Quantity
1
1
4
1
3
1
1
1
1
Quantity
1
3
1
1
3
3
1
1
2
Quantity
1
5000 PPH
2500 PPH
10000 LPH
8
1
4
60 IMP/Mnt
Capacity
10
Quantity
20 TR
3
100 KL
Capacity
1
Quantity
1 MT
Capacity
1
Quantity
50 CFM
2
Service Equipment
Refrigeration compressors
(Make/Model/Type/Cap.)
Ice bank tank
Steam Raising Plant
Boiler (Oil/Coal)
Compressed Air System
9.1
Air compressors
9.2
Industrial electrical
9.3
DG set
250 KVA
2
9.4
Transformer
315 KVA
1
152
Wayanad District
Table 5.5 Additional Equipments Suggested for Wayanad Dairy under
NPDD (2014-17)
Sl.
No.
Equipments
1
Milk pump
2
SS pipes and fittings
3
Cream pumps
4
Pouch filling machines
5
Deep freezer room
Specification
No. of
Units
Unit
Cost (Rs)
Total
Cost (Rs
in Lakh)
10 KLPH
4
50000
2.00
Lot
1
500000
5.00
5 KL
1
300000
3.00
5000 PPH
1
1000000
10.00
8 TR
1
3500000
35.00
Total
55.00
5.6 Milk Marketing
production and the local market
being
5.6.1 Introduction
Milk marketing is one of the major
functions
of
MRCMPU.
This
chapter provides an overview of
the
organization
of
marketing
activities of MRCMPU in Wayanad
district,
the
limited,
depends
on
the
neighboring districts to sell milk.
The
Dairy
(refrigerated
have
three
Reefers)
as
depots
shown
below.
1. Koothuparamb
in
Kannur
District
infrastructure
available, the sales achievements
2. Ulliyeri in Kozhikode District
of liquid milk and milk products
3. Kottackal
during
2013-14,
issues,
and
problems
recommendations
to
the
key
Malappuram
District
and
Each
address
reefer
them.
in
depot
has
managed
a
by
refrigerated
a
Depot
Manager and assisted by two field
staff. The depot receives packed
5.6.2 Organization of Marketing
milk from Wayanad dairy in bulk
The milk marketing in Wayanad
vehicles capable of transporting
district is looked after by the
12000 liter in one trip. The depots
marketing wing in Wayanad dairy
operate
headed
Manager
smaller vehicles to link the sales
district
outlets. This calls for additional
being perpetually surplus in milk
effort and extra expense, but is
by
an
Asst
(Marketing). Wayanad
supply
routes
using
153
Wayanad District
rewarding.
The depot-wise sales
awareness build up. To this end,
figures are shown in table 5.6.
The
Wayanad
district
several programs were carried out.
The
faces
amount
spent
on
milk
marketing in Wayanad on these
constant threat of influx of milk
programs can be seen in table 5.6.
from the neighboring states of
Karnataka and Tamil Nadu where
The IDDP phase II is continuing
the procurement and selling prices
and will be completed only in
of milk are lower. In addition,
2015-16.
several DCSs in the district make
direct
milk
marketing
locally.
5.6.3 Supply Chain
Hence the marketing of milk from
The MRCMPU has more or less
Wayanad district demands extra
similar supply chain in all the
care and attention.
districts. The milk and the milk
products
Among other factors that would
availability
of
The liquid milk is directly supplied
personnel,
from the Dairy to the dealers and
infrastructure, advertisement and
publicity.
schemes
Earlier,
IDDP
the
and
the
CSS
structure
consumer
creation
canvassing
products
through
the
wholesalers. At the close of March
SIQCMP
2014,
provided financial support for both
infra
consumers
the retailers designated as dealers.
adequate
marketing
the
from the processing units through
help successful milk marketing are
the
reach
there
were
1517
retail
outlets and 21 wholesalers for milk
and
Products and one distributor for
through
milk in Wayanad district. A well
Table 5.6 Milk Marketing Activities Carried Out in Wayanad District under
CSS
Sl.
No.
Scheme
1
IDDP
2
SIQ CMP
Period
Amount spent
(Rs in Lakh)
Phase
I &II
71.08
Phase II
43
Major Physical Sectors
Puff boxes, outlet
renovation, freezers, cold
storage at towns.
Strengthening of
marketing infrastructure
154
Wayanad District
developed
intending
and
is much smaller than the off take
The
by the Depots (table 5.7). The
liquid milk and the products are
Dairy sends processed milk to
sold to the dealers on advance
Koothuparamba depot in Kannur
payment.
Credit
facilities
district,
extended
to
dealers
distribution
system
the
limited scale.
exist.
were
on
a
The details of milk
Ulliyery
and
Kottakkal
Malappuram
2013-14 are shown in table 5.7.
trucks.
products sold in Wayanad district
in
Kozhikode District and Nilambur
and milk products sold during
The volume of milk and milk
depot
As
depots
district
in
mentioned
in
large
in
the
forgoing paragraphs, the Depots
organize re-distribution.
Table 5.7 Milk and Milk Products Sold from Wayanad Dairy
Sl.
No.
Item
Dairy Total
Wayanad
Average
Kottakkal
Koothuparamba
Ulliyeri
1
Milk (LPD)
78378
8327
22636
29265
18151
2
Curd (LPD)
15501
1802
5628
2988
5082
3
Cup curd (Kg) Month
694
75
479
60
80
4
B. milk (LPD)
1559
219
577
472
290
5
Ghee (Kg) Month
28728
20510
1093
2959
4166
6
7
2458
438
831
636
554
6888
1130
2901
766
2092
8
Peda (Kg) Month
Milma plus
(Bottles)/Month
Ice cream (LTRS) Month
10001
2552
2685
2388
2376
9
Butter (KG) Month
2416
836
898
408
274
10
Water (Bottles) Month
3010
1116
537
592
766
11
Sip up (LTRS) Month
2305
973
347
435
550
12
13
1406
438
305
339
324
504
290
178
8
28
14
Chocolate (KG) Month
Dairy whitener (KG)
Month
Mango drink (ltr.) Month
3308
1112
818
635
743
15
Palada mix (Kg) Month
367
70
82
32
184
16
17
Paneer (KG) Month
Gulab jamun tub (Kg)
Month
Cream (Month)
113
58
22
12
20
51
5
23
8
15
6429
6429
0
0
0
18
155
Wayanad District
5.6.4 Market Size and Market
Share of MRCMPU
in Wayanad district.
Market size is the measurement of
the total volume of a gien market.
Market
size
standard
sales
calculated
practice,
approach
folds more than the urban market
on
a
competitive
(bottom
up
Yet another way of understanding
the market is by the end user
purchase
method.
The
latest
Census (2011) shows the following.
Urban population
Wayanad district
- 31580
was 13,000 LPD (Milma plus the
Rural population
- 785840
competitors). This indeed is a very
The HH survey conducted as a
conservative figure and pertains
part of this study shows that 88
mostly to the urban market. Added
per cent of the urban population
to this is the rural consumption.
and 78 per cent of the rural
With
cattle
population in Wayanad consume
numbers and cattle holdings in
milk daily. The average per capita
rural areas, the rural market for
consumption in rural areas is 110
milk is fast expanding. The market
ml and that in urban area is 120
size in rural areas will be several
ml. The survey shows that nearly
approach), shows that the market
for liquid milk in 2013-14 period
the
sharp
fall
in
156
Wayanad District
50 per cent households in the
The milk parlors are positioned in
rural areas own cows and they do
strategic positions to attract more
not buy any milk especially if they
consumers
have a lactating cow in the house.
Apart
Hence the market size calculated
products they also act as a media
is shown as table 5.8.
to improve the visibility of milk
The MRCMPU marketed milk at
the rate of 8327 LPD. This works
out to 22 per cent of the market
size which indeed is low. Hence
to
from
Milma
selling
products.
the
Milma
and milk products. The Milma
Shoppe
in
towns
can
be
considered as a bigger version of
milk
parlors
to
increase
the
the supports under the NPDD
visibility of the products and to
should all be geared up to improve
increase the sales.
the market coverage.
Among
the
various
marketing
infrastructure provided under the
5.6.5
Milk Marketing
CSS,
Infrastructure – Current
insulated
Status
distribution routes and PUF boxes
The table 5.9 shows the facilities
available in Wayanad district for
the introduction of PUF
vehicles
in
milk
in the retail outlets are worth
mentioning. With the addition of
market promotion.
Table 5.8 Calculated Market Share in Wayanad District 2013-14
Sl.
No.
1
Particulars
Population Wayanad district
2
Cattle holdings %
3
Potential consumers (1/0.5)
4
Actual consumers as per HH survey (%)
5
Actual consumers (3x4/100)
6
Per capita consumption HH survey
7
Household demand LPD (5 x 6)
8
Inst Demand (20% of urban demand)
9
Total demand (7 + 8)
10
Milma supply
11
Market share %
Rural
Urban
Total
785840
31580
817420
50
0
50
392920
31580
424500
78
88
306478
27790
110
120
33713
3335
334268
37047
0
667
667
33713
4002
37714
8327
22
157
Wayanad District
Table 5.9 Existing Market Promotion Amenities in Wayanad
as on 31-3-2014
Sl.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
the
PUF
Facility/Accessories
Quantity
Wholesalers for milk (No.)
Wholesalers for product (No.)
Distributors for milk (No.)
Retail outlets milk and products (No.)
Milk parlors (No.)
Milma shoppe (No.)
% milk routes using PUF vehicles for milk
distribution to retail outlets
PUF box 50 ltr. (No.)
PUF box 100 ltr. (No.)
PUF box 150 ltr. (No.)
PUF box 25 ltr. (No.)
PUF box 460 ltr. (No.)
Shipper box for ice cream
200 liter freezers for dealers (No.)
200 liter freezers Glass top for dealers (No.)
120 LTR freezer (No.)
500 ltr. freezer for dairy (No.)
Deep freezer 320 ltr. (No.)
Deep freezer 320 ltr. (Glass top) (No.)
Visi-cooler 220 ltr. (No.)
Visi-cooler 320 ltr. (No.)
containers
100
205
107
24
152
9
40
110
5
75
53
124
0
108
31
the
Our field exposure visits revealed
IDDP scheme during the yester
that the retailers wholeheartedly
years, the entire milk transport
welcomed the PUF boxes because
from Wayanad dairy was switched
they were proved to be viable
over to PUF insulated vehicles. The
alternatives
PUF boxes of varying sizes, 50-150
consuming freezers. They occupy
liter
cent
less space, are easily movable and
retail
outlets
are easy to clean. The boxes retain
PUF
bodied
low temperatures for about 3-4
transport vehicles ensured perfect
hours during which the milk is
end-to-end cold chain and quality
generally sold out.
provided
subsidy
in
together
with
at
the
the
under
Nil
21
1
1517
2
1
50
per
for
the
energy
assurance – dairy to consumer.
158
Wayanad District
Freezers,
200
capacity,
are
and
120
provided
to
liter
within and outside the district.
the
The market analysis shows that
retailers at a subsidized price of Rs
there
5000/- a piece for storing frozen
demand
Milma products. Apart from ice
advantage
cream, milk is also sometimes
factors
stored in freezer cabins. There are
interest of the milk producers in
many takers for the freezers and
the district, further expansion of
almost all of them are in use, field
the
exposure visits and surveys reveal.
developing
The Visi-coolers are provided at
marketing strategy are essential to
subsidized price to store products
protect the interest of the milk
like flavored milk, cup curd, etc.
producers in the district (sales
The market in Wayanad district is
under the perpetual threat from
private dealers. Also, some of the
DCSs in Wayanad market sell milk
is
a
wide
and
and
gap
supply.
of
these
to
marketing
an
between
To
take
favorable
safeguard
outlets
the
and
aggressive
outlets in border areas, out side
state parlors, parlors in Various
tourist spots, ice cream Canopy
vehicles in interior routes, etc.).
159
Wayanad District
5.6.6 Consumer Awareness
and consumes less. Hence the
Programs
MRCMPU has to market the milk
Consumer awareness camps are
in
being
Malappuram,
held
and
dairy
visits
the
neighboring
organized to explain the chain of
Kannur.
activities
transport,
involved
in
milk
districts
Kozhikode
The
long
–
and
distance
multi-point
stocking
procurement from farmers to sales
and
from retail outlets. The consumers
supply
also get an opportunity to gather
losing the quality are not only
first hand information on quality
challenging but also invite extra
assurance
expenses. Added to that is the
followed
at
various
re-distribution
to
and
consumers
timely
without
stages of milk reception, processing
competition
and
Advertisement
agencies who do not have any long
boards and banners are exhibited
term bondage with to the farmers.
in busy places for popularising the
The private dealers and certain
milk and milk products.
These
cooperative organizations are the
are
real threats to Milma. They always
however scale inadequate and are
try to spread rumors about the
not reaching a large segment of the
quality of Milma milk, provide
public, particularly those in rural
higher
areas. Hence it is suggested that
incentives to the dealers and even
the consumer awareness programs
provide flexible credit. At the same
and the publicity methods should
time, milk production in Wayanad
cross the usual styles and enter
is livelihood intensive to a vast
into newer frontiers to attract more
majority
and more consumers in to the fold
marginal farmers who depend on
of Milma.
Milma to market their milk. Hence
marketing.
popularization
activities
the
5.6.7
sales
of
from
marketing
commission
marginal
marketing
and
activities
and
sub
in
Key Issues and
Wayanad are very crucial to the
Recommendations
Milk Union as well as the farmers.
The crux of the issues in Wayanad
The
is that the district produces more
infrastructure
existing
of
marketing
MRCMPU
is
160
Wayanad District
inadequate to meet the challenge.
Wayanad district for which the
Hence MRCMPU has to scale up
facilities
their
suggested are shown in table 5.10.
marketing
activities
in
and
equipments
Table 5.10 The Suggested Infrastructure under NPDD for Marketing in
Wayanad District
1
Depot/Parlor
1.1
1.2
1.3
1.4
1.5
2
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
Milk parlor civil
Milk parlor equipments
Shoppe support
Space in super market
Decorated mobile product vehicle
Market Infrastructure
PUF vehicle container (3 MT)
PUF box 50 ltr.
PUF box 100 ltr.
PUF box 150 ltr.
PUF box 25 ltr.
PUF box 460 ltr.
Shipper box for ice cream
200 liter freezers for dealers
200 liter freezers glass top for
dealers
120 LTR freezer
500 liter freezer for dairy
Deep freezer 320 liter
Deep freezer 320 ltr. (Glass top)
Visi-cooler 220 liter
Visi-cooler 320 liter
Canopy with eutectic freezer
subsidy
Consumer Awareness Programme
and Publicity Materials
ACP with LED board
Freezer subsidy
Refrigerator subsidy
Rain coats
Support to milk stockists (RD)
Dealer club meet/orientation/
incentive
Market research
Total (2.0.0)
2.10
2.11
2.12
2.13
2.14
2.15
2.16
3
3.1
4
5
6
7
8
9
No. of
Units
Unit Cost
(Rs)
6
6
1
9
3
50000
10000
500000
20000
50000
Total Cost
(Rs in
Lakh)
3.00
0.60
5.00
1.80
1.50
6
210
120
120
30
30
30
90
250000
2000
4000
6500
1300
15000
6000
13000
15.00
4.20
4.80
7.80
0.39
4.50
1.80
11.70
90
120
12
90
150
120
90
17000
11000
23000
17000
20000
20000
30000
15.30
13.20
2.76
15.30
30.00
24.00
27.00
15
100000
15.00
LS
125.00
120
15
15
300
9
20000
5000
3000
700
200000
24.00
0.75
0.45
2.10
18.00
8
25000
30
2.00
30.00
406.95
161
Wayanad District
Most of the suggested articles are
established in Wayanad district at
commonly
an estimated cost of 3.6 lakh.
used
for
market
promotion. A few deserving special
mention are:
b. Milma Shoppe
The purpose of Milma Shoppe is to
a. Milk Parlors
increase the sale of milk and milk
Milk Parlors were established in
and products apart from improving
prominent public places during
their visibility to generate income
the first Phase of IDDP to promote
for
the sale of milk and milk products.
producers
Buyers are served milk and milk
Keeping this in mind, MRCMPU
products in a consumer friendly
started
environment.
in
Wayanad district. Shoppe sells all
Wayanad are functioning well and
Milma products and they work
publicize the Milma milk and milk
round
products in the district. But the
already established is found to be
existing
scale
an effective tool to publicize milk
Therefore six more
and milk products. It is suggested
parlors are recommended to be
that one more Milma Shoppe be
All
numbers
inadequate.
parlors
are
the
resource
in
Wayanad
‘Milma
the
poor
clock.
milk
district.
Shoppe’
The
in
shoppe
162
Wayanad District
started in one of the towns in
be provided with new or additional
Wayanad
PUF boxes to achieve 100 per cent
district
during
the
project period (cost Rs 5.0 lakh).
cold chain maintenance (Cost Rs
21.69 lakh).
c. PUF Bodies
In order to give good quality milk
Visi-coolers
and
the
equipment to keep the quality of
consumers, MRCMPU Ltd started
products like flavored milk. Hence,
investing in PUF insulated vehicles
a few of them are suggested as
and PUF Boxes. At present the
part of market promotion.
milk
entire
products
processed
transported
in
to
milk
PUF
is
insulated
vehicles. Six more PUF bodies are
suggested
as
standby
for
replacement of that in use and for
operation of new routes (Cost Rs
15.0 lakh).
are
e. Freezers
for
excellent
Ice
Cream
Promotion
MRCMPU Ltd. is selling products
like ghee, curd, Butter milk, Milk
peda, Palada mix, Flavored milk
and Ice cream. The share of milk
products in the total turnover of
d. PUF Boxes/Visi-Coolers
the Union is around 24 per cent
MRCMPU
effectively
and is very crucial in its financial
demonstrated that PUF Boxes are
security and liquidity. Among all
the most suited and the cheapest
the products, ice cream is the
method to keep the cold chain
most promising one. Unfortunately
uninterrupted from the point of
Milma now commands only less
origin to the point of consumption.
than 5 per cent market share in
Freezers
the ice cream segment. The major
has
are
uneconomical
to
preserve milk. Moreover freezers
hurdle
identified
against
are capital intensive. The PUF
market
expansion
in
boxes
the
district is the absence of user
to
friendly and energy saving freezers
supplied
IDDP/SIQCMP
are
under
found
the
Wayanad
substitute the freezers for cold
at
preservation of milk. Hence it is
Phase I and SIQCMP, the Milk
proposed that all the retailers shall
Union supplied few freezers at
retail
points.
During
IDDP
163
Wayanad District
subsidized price and the sales of
channels
ice cream increased from 996 LPD
launched in Wayanad district to
in 2010-11 to 3894 liter/month in
serve two purposes – awareness
2013-14. A three pronged market
creation among all
intervention – appoint more whole
people and market promotion. An
sale dealers, equip all retail points
amount
with freezers and wide publicity
suggested
through TV channels, is suggested.
Wayanad district (Cost Rs 125
In addition, canopy fitted vehicles
lakh).
are recommended for special sales
in tourist spots and prominent on
road places (Cost Rs 85.5 lakh).
f. Consumer
Awareness
of
of
media
Rs
for
shall
be
sections of
125
this
lakh
is
activity
in
g. Market Research
Market
research
supported
by
market survey should form an
and
Publicity
integral
part
of
the
market
development. The surveys should
Wayanad district is a hot spot for
bring
tourism.
preferences and perceptions and
and
Effective
building
awareness
on
advertisement
up
consumer
milk
and
milk
the
forward
the
dairy/market
make
suitable
consumer
wing
should
adjustments
in
consumption can promote the sale
production line and marketing. It
of
the
is
and
changes are the key to capture
Milma
general
products
public.
among
Sustaining
well
known
that
innovative
further developing the market is
new
crucial to the very sustenance of
positioning
milk production in the district as
products can go a long way in
well as the state – for food security
market promotion. Unfortunately
and for livelihood support. Due to
this is not given due attention in
inadequate finance, much more is
MRCMPU. It is suggested that a
needed
small
to
be
done
in
this
markets.
the
provision
Packing
milk
be
and
made
and
milk
for
direction. Therefore it is strongly
market research, Rs 30 lakh in the
recommended that an aggressive
proposed NPDD project (Rs 30
consumer
lakh).
education
cum
popularization program through all
164
Wayanad District
The BMC DCS means a DCS in
5.7 Milk Procurement
which
5.7.1 Organization
Milk procurement is one of the key
functions of MRCMPU. The milk
procurement in Wayanad district
is being looked after by the P&I
Unit
functioning
dairy.
The
in
Milk
Wayanad
Union
has
established a network of village
level
DCSs
in
the
district
to
procure the surplus milk from
dairy farmers. The organization of
milk procurement is explained in
fig. 5.3.
the
BMC
is
installed,
Cluster DCS supplies milk to a
BMC, and the direct DCS means a
DCS which supplies milk directly
to the processing dairy. The milk
producer delivers the household
surplus milk either in the BMC
DCS, Cluster DCS or the Direct
DCS
depending
on
his
accessibility. The Cluster DCS in
turn
delivers
nearest
BMC.
the
milk
The
to
direct
the
DCS
supplies milk direct to the dairy
Fig. 5.3 Organization of Milk Procurement in Wayanad District
Milk
Producers
BMC DCS (32)
Cluster
DCS
Non BMC DCS
Non cluster
DCS
Milk Chilling Plants
(2)
WYND DAIRY
Key words: BMC DCS – Dairy Cooperative Society having Bulk
Milk Cooler; Cluster DCS: DCS attached to BMC for milk supply;
WYND: Wayanad.
Figures in brackets – number of DCS
165
Wayanad District
dock. BMC DCS chills the milk
proportion supplying milk is low
before transporting to Wayanad
because the non-producers are not
dairy in insulated road tankers.
removed from the DCS roll due to
The Dairy in turn processes the
the
milk and markets in towns and
procedures.
other urban agglomerations within
procurement per DCS was 2645
and outside the district. The whole
LPD and per supplier 7.6 LPD
chain of activities - procurement,
during 2013-14. The local sale,
processing and marketing - is well
19,217 LPD, accounted for 14 per
orchestrated and executed.
cent
cumbersome
of
the
mandatory
The
daily
average
procurement
indicating that a majority of the
5.7.2 Profile of DCSs in
farmers are producers and the
Wayanad District
A
majority
of
DCSs
are only a few. The
in
rate of procurement per DCS is
Wayanad district is Anand Pattern
excellent in comparison to the
Co-operative
(APCOS).
other districts in Kerala. The DCSs
They are producer cooperatives
classified according to the daily
managed
democratically
collection shows that a majority of
elected Management Committee.
the DCSs collect more than 500
At the close of March 2014 the
LPD and are extremely viable. The
district had 53 functional APCOS.
DCSs in Wayanad, unlike in other
In
non-APCOS
districts, command larger areas
existed directly under the control
and have several sub centers to
of
collect milk. Out of the 53 DCSs,
Societies
by
a
addition,
the
the
milk buyers
one
department
of
Dairy
Development.
none supplied milk direct to the
Table 5.11 shows the profile of the
DCSs in Wayanad district. From
amongst
the
53,040
registered
milk producers in the district, on
an average 18,313 (34.5%) alone
supplied milk to the DCS in the
district
during
2013-14.
dairy during 2013-14. Eighty five
percent of the DCSs function in
own
buildings.
Others
are
in
rented buildings. Almost all of
them have electricity and water
supply arrangements.
The
166
Wayanad District
Table 5.11 The Profile of DCSs in Wayanad District
Sl.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
Description
Quantity
No. of functional APCOS (31-3-2014)
No. of farmer members/DCS
Av. number of suppliers/DCS
Milk procured from farmers in DCS (LPD)
Local sales (LPD)
Milk supplied to milk union from DCS (LPD)
Av. procurement/DCS (LPD)
Av. procurement/supplier (LPD)
Av. procurement price paid to DCS (Rs/Kg)
No. of DCs collected <100 LPD
No. of DCS collected 101 - 200 LPD
No. of DCS collected 201 - 300 LPD
No. of DCS collected 301 - 500 LPD
No. of DCS collected >500 LPD
Av. fat%
Av. SNF%
No. of BMC DCS (31-3-2014)
No. of BMCs
Installed capacity
Av. collection through BMCs (LPD)
No. of DCSs which supplied at dairy dock
No. of DCSs provided AMCUs (including DDD)
53
1000 (53040)
345 (18313)
140206
19217
120989
2645
7.6
28.48
0
1
0
2
50
3.9
8.29
32
45
181000
120000
0
53
No. of DCSs provided analyzer only (including
DDD)
No. of DCSs provided EMTs
No. of DCSs provided EMT only ( no analyzer)
15
53
53
No. of DCS provided Gerbers test equipment
only
No. of Panchayat wards in the district
% coverage under milk procurement
NA
459
75
% wards having potential for milk collection
No. of DCSs having own building
NA
45
No. of DCSs having adequate water supply
arrangements
No. of DCSs having standby generators
No. of DCSs having Electricity
No. of milk cans supplied during last five years
Quantity of milk spoiled (LPD)
Av. MBRT - milk supplied through BMC
Av. MBRT - milk supplied at dairy dock
53
30
51
395
4
176
0
167
Wayanad District
Unlike
in
other
districts
of
on the basis milk fat and SNF in
Malabar, all the DCSs possess
the milk. The table 5.12 shows the
AMCUs for milk procurement and
average fat and SNF value of milk
quality determination.
collected
from
the
farmers
in
Wayanad district during 2013-14.
5.7.3 Coverage
The recent survey shows that the
Wayanad
district
has
459
Panchayat wards in 53 Panchayats
of which almost 75 per cent are
under milk procurement coverage.
The
village
equipped
cooperatives
are
determine
the
to
compositional
quality,
fat
and
SNF. Milk from each supplier is
tested for fat and SNF.
A few
DCSs are also equipped to detect
The assessment shows that only
added preservatives, adulterants
less than 5 per cent of the left out
and neutralizers apart from MBRT
wards
estimations.
have
the
potential
for
starting new DCSs.
The
DCSs
have
AMCUs, Milk Analyzers, EMTs and
also Gerber’s fat test equipment.
5.7.4 Milk Quality and Quality
Administration of Raw Milk
Different
DCSs
equipments
use
for
different
quality
The MRCMPU follows the two axis
determination. AMCUs are the best
pricing system ie, farmers are paid
of all.
Table 5.12 Quality of Milk Collected from Farmers
in Wayanad District 2013-14
Parameter
Fat % APCOS
Fat % non-APCOS
Values
3.99
NA
SNF % APCOS
SNF % non-APCOS
8.3
NA
Av. MBR time BMC DCS (Mts)
Av. MBR time direct DCS (Mts)
No. of APCOS using/ supplied AMCU
176
NA
53
No. of APCOS using/ supplied Milk O
tester & LR
No. of APCOS using/ supplied
Gerber’s test & LR
53
53
168
Wayanad District
Although all the DCSs in Wayanad
Almost all the BMC DCSs possess
use
the
AMCUs
for
quality
equipments
for
MBRT
determination, only a very few
estimation. But not all of them use
DCSs make use of one of the
this provision.
components, the auto analyzer,
reportedly due to the reason that
they
are
slow
in
performance.
Also, some of the analyzers were
found to be erratic in fat and SNF
estimation
have
while
some
inconsistent
others
The milk procured from among the
farmers has 3.9 per cent fat and
8.3 per cent SNF which are lower
than those in other districts of
Malabar. Farmer education and
introduction of AMCUs can further
results.
improve the quality. The MBRT of
Malfunctioning of the analyzers
milk supplied through BMC DCSs
cause hardships to the farmers
averages 176 minutes (tested in
and
Wayanad
the
DCSs
and
hence
Dairy).
The
microbial
discontinued. Some have changed
quality of milk in Wayanad is
the configuration of the AMCUs by
better than that in other districts.
hooking
of
In the years to come, estimation of
analyzers. Using EMT defeats the
both compositional and bacterial
very
AMCUs,
quality will have a telling influence
automation and instant print out
on the marketability of milk. The
to farmers.
AMCUs are excellent
best way to usher in microbial
gadgets to ensure transparency in
quality monitoring is to pay for
milk procurement in village DCSs.
bacterial quality also. To begin
It avoids the hassles of quality
with, it is suggested that the top 2
checking,
per
EMTs
purpose
volume
instead
of
measurement
cent
of
milk
producers
and payment of milk price. Hence
supplying high quality milk may
we are of the opinion that the
be paid an incentive.
analyzers need to be re-introduced
after
rectifying
the
practical
difficulties in consultation with the
manufacturers and suppliers.
5.7.5 Key Issues and
Suggestions
Under
the
IDDP
and
SIQCMP
schemes Rs 515.79 lakh has been
169
Wayanad District
invested for promoting the milk
a. Buildings
procurement
ranging
As pointed out in the forgoing
from supply of BMCs to DCSs,
sections, a few DCSs function in
milking vessels to farmers and
rented buildings. Most of them do
capacity building of farmers and
not have the minimum facilities for
elected
members
hassle free milk collection and
district.
The
activities
in
IDDP
Wayanad
support
is
dispatch.
BMC
installation
is
available for the next two more
virtually impossible and effluent
years
treatment is a serious problem in
(2014-15
and
2015-16).
Therefore the support requested
these
under
milk
suggested to include provision for
procurement is meant to stabilize,
subsidizing new DCS buildings at
sustain and carry forward the
the rate of Rs. one lakhs per DCS.
achievements already made. The
Eight DCSs are identified to have
suggested
the
the land and financial capacity to
estimated costs can be found in
part fund this during the project
table 5.13.
period.
the
NPDD
components
for
and
DCSs.
Therefore,
it
is
Table 5.13 Support for Milk Procurement Suggested for Wayanad District
under NPDD
Sl.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
Milk Procurement
Building construction
Water supply system
Bore well
Open well
Aluminium cans
Electronic milk tester
Electric centrifuge
Weighing scale
Hand held billing device
Management grant to DCS
Subsidy to milk transport
Subsidy to cattle feed
transport
Incentive to better quality
milk
Total
8
10
10
15
300
4
8
3
8
8
370000
Unit
Cost
(Rs)
100000
60000
25000
10000
2500
15000
2500
15000
10000
30000
0.5
Total
Cost (Rs
in Lakh)
8.00
6.00
2.50
1.50
7.5
0.6
0.2
0.45
0.8
2.4
1.85
24128
400
96.512
900000
0.5
16.42
144.73
No. of
Units
170
Wayanad District
b. Water Supply System
estimated
Developing water source and water
Wayanad district comes to 24,000
supply is becoming increasingly
MT in three years. An amount of
important in Wayanad
district.
Rs 0.4/kg is the average transport
Most of the DCSs find it difficult to
cost and the total funds required
mobilize
for
come to Rs 96.5 lakh. The amount
investment. Hence a subsidy of
may be provided as a subsidy so
rupees sixty thousand per unit is
that the price of cattle feed can be
suggested for ten DCSs at an
kept low.
adequate
capital
estimated cost of 6.0 lakh. Water
harvesting, installing water tanks
and
pumping
facilities
are
envisaged. In addition, digging of
ten bore wells at the rate of rupees
twenty five thousand per unit and
fifteen open wells at the rate of
rupees ten thousand per unit are
also
suggested
in
Wayanad
district.
for
Cattle
Feed
Transport
sold
in
d. Incentives for Good Quality
Milk
The
SIQCMP
considerable
has
instilled
enthusiasm
among
the dairy farmers to produce good
quality milk. As a result, the
bacterial content of the raw milk
collected from farmers has reduced
significantly.
count
c. Subsidy
quantity
The
immensely
low
bacterial
improves
the
quality, especially the organoleptic
properties (taste and flavor) of the
Cattle feed is being sold through
milk apart from heat stability and
the DCSs. The farmers in Wayanad
longer shelf life. Such milk is
district
ideally
(hilly
wholeheartedly
arrangement
district)
welcome
because
of
suited
for
product
the
manufacturing. It is beneficial to
the
the consumers also. The farmers
convenience, easy access and the
are
credit
the
extra effort in producing such
DCS. The transport of cattle feed
clean milk. As a beginning, it is
from
DCSs
proposed that the top 2 per cent of
entails cost. It is suggested to
the milk may be paid an incentive
subsidize the transport cost. The
of 50 ps. per liter of milk. The daily
facility
the
extended
plants
to
the
by
not
compensated
for
their
171
Wayanad District
procurement is near to 1.5 LLPD
dung. The shed must be well
and the incentive at the suggested
ventilated,
rate works out to Rs 16.42 lakh.
should have transparent roofing
easy
to
clean
and
sheets interspersed with opaque
5.8 Cattle
Shed
and
Farm
ones
to
permit
sunlight,
and
facility for continuous feeding of
Machineries
water. Not many cattle sheds of
Table 5.14 Farm Equipments
the
standard
mentioned
above
Supplied to the Farmers in
exist in Wayanad district. Some of
Wayanad District
the sheds are a mere make shift
Sl.
No.
Item
Quantity
1
Cattle sheds modified
1
Milking machines
2
Rubber mats
3
Pressure washers
4
Gen sets
5
Cow drinker
6
Chaff cutter - Motorised
235
shelter with mud/wooden floor,
tiles/asbestos/PVC/Silpaulin roof,
dark and musky, all in one floor
26
833
28
(no
urine
and
5
or
without
dung
channel)
any
watering
arrangements. The cows remain in
10
this shelter most of the time (no
2
grazing). The hind quarters and
Well constructed cattle sheds are a
the udder often remain soiled with
pre-requisite
milk
dung, urine and mud. Udder and
production. A dirty cattle shed
teat injuries are common. Feeding
contributes substantially towards
of
prevention
external
Therefore, any support for good
contamination of milk and entry of
cattle sheds is a welcome gesture
microbes in to the udder causing
towards
sub-clinical/clinical
A
production in Wayanad district.
shed
Considering the above aspects, the
should also provide operational
Milk Union could rope in funds for
easiness and animal comfort. The
cattle
shed should have adequate space
making of new cattle sheds under
for the animal, manger, feeding
the IDDP and SIQCMP schemes. In
alley and channels for urine and
the past, 294 cattle sheds were
well
for
of
constructed
clean
mastitis.
cattle
water
is
only
occasional.
promotion of
shed
modification
dairy
and
172
Wayanad District
funded under the IDDP/SIQCMP
with watering facility rather than
schemes
insisting on a new cattle shed.
in
Wayanad
district.
During the course of the field
work, we observed that the funds
provided are utilized properly and
the floor of the cattle sheds is
well
constructed.
However,
construction of new cattle sheds is
very expensive in Kerala due to the
high
cost
of
labor
and
the
materials. The budget provision of
Rs
10,000/-
is
thoroughly
inadequate and will not meet even
10 per cent of the overall cost.
Therefore,
it
would
be
more
sensible if the support could be
extended
for
renovation
and
modification of the cattle sheds
On the face of the shrinking family
size, the changing status of women
in
the
society
and
the
opportunities for employment in
other sectors of the economy, the
availability
of
labor
for
dairy
farming is fast declining. Hired
labor for dairy farm activity is
uncommon in Wayanad district.
Hence making the daily chores less
arduous and reducing the daily
labor requirement are crucial for
the
very
sustenance
of
dairy
farming. Considering the economic
and
social
significance,
the
173
Wayanad District
MRCMPU has initiated providing
new entrants of cattle farming. To
financial
overcome
support
mechanization.
for
issue,
cattle
induction has been resorted to by
channeling
several development agencies in
support for these activities for the
the state as a support scheme. The
past
MRCMPU
providing
few
Union
this
has
been
The
farm
and
years.
However,
the
too
distributed
250
support is scale inadequate and
heifers to 50 farmers in Wayanad
many more are on queue. It is
district to promote cattle rearing.
suggested that the assistance may
be continued and funded under
Cattle keeping in the district has
NPBBDD.
become
The
components
largely
a
job
of
suggested, the quantity and the
economically weaker sections of
estimated costs can be found in
people (BPL families) and women.
table 5.15.
It continues to be a major means
livelihood especially for women.
5.9 Cattle Induction
Therefore,
The absence of easy access to loan
purchasing the following number
facility at low interest from banks
of cattle is recommended under
remains a serious obstacle to the
NPDD (table 5.16).
a
support
for
Table 5.15 Cattle Sheds and Farm Machineries Suggested under NPDD for
Wayanad District
A
Cattle Shed
1
Strengthening of old
sheds/constructing new
2
No. of
Units
Unit Cost
(Rs)
Total
Cost (Rs
in Lakh)
150
15000
22.5
100
5000
5.00
30
75000
22.5
B
Auto watering system
Cattle Farm
Mechanization
3
Gen set
4
Pressure washers
150
7500
11.25
5
Rubber mats
500
2500
18.75
Total (4.0)
79.5
174
Wayanad District
Table 5.16 Cattle Induction Program Suggested in Wayanad District
Sl.
No.
Cattle Induction
No. of
Units
Unit
Cost
(Rs)
1
Purchase of cows
120
40000
48.00
2
3
Purchase of heifers
Transportation cost of
animals
120
30000
36.00
240
2000
4.80
4
Cattle/Heifer insurance
150
2500
3.75
Total
ƒ
92.55
Only the BPL families will be
ƒ
included for cattle induction.
ƒ
ƒ
Total Cost
(Rs in
Lakh)
Fifty percent of cows and fifty
Transportation cost shall be
met in full under the scheme.
ƒ
Seventy five percent of the
percent of heifers are reserved
Insurance premium shall be
for women.
included under the scheme
Women
members
will
be
allowed 75 per cent subsidy
and
the
balance
as
beneficiary contribution.
on the purchase price and the
others 50 per cent.
175
Wayanad District
5.10 Establishment of Central
audits and certain equipments and
software for the maintenance of
Laboratory
An amount of Rs 91.82 lakh had
these systems are to be acquired.
been invested under phase I & II of
The amount suggested is towards
IDDP and SIQCMP schemes and
these items.
Rs 39.32 by the Milk Union in
upgrading the Wayanad dairy lab.
The lab has reasonable facilities
including equipments for routine
tests.
Hence no additional lab
equipments are proposed under
NPDD.
Although
the
DCS
labs
are
equipped to carry out the MBRT, a
system to carry out the tests by
the DCS staff and to link the
results on line with the central lab
are yet to be implemented in full.
Any further upgradation of the
But as part of modernizing the
DCS labs needs to be considered
automatic data capturing system
only
in the hygienic systems in the
requirements.
after
fulfilling
these
dairy software for easy monitoring
of FSMS and a high capacity
5.11 Clean
Production
Kits for Beneficiaries
pressure jet are proposed in the
Under
Project.
Milk
the
CMP
scheme,
the
MRCMPU supplied the following
The
Wayanad
dairy
is
already
ISO:22000 certified dairy by DNV.
articles to the farmers in Wayanad
district (table 5.18).
The recertification and surveillance
Table 5.17 Establishment of Laboratories in Wayanad District
Sl.
No.
1
2
3
4
5
6
Unit
Price
(Rs)
Components
Units
Central milk testing lab
Purchase of laboratory furniture
High capacity pressure jet
FSMS monitoring software
Automatic data capturing system
Accreditation and certification of
dairy establishments under
HACCP/ISO
Total
LS
1
1
1
1
500000
100000
100000
2200000
1
500000
Amount
(Rs in
Lakh)
20.00
5.00
1.00
1.00
22.00
5.00
54.00
176
Wayanad District
Table 5.18 CMP Kits Supplied under SIQCMP Scheme in Wayanad District
Sl.
No.
Component
1
Detergents & chemicals to DCS
2
Stainless steel utensils to beneficiaries
Physical
Financial
(Rs in Lakh)
lot
16.02
5725
28.49
The distribution of CMP kits to
quality of milk. Many more farmers
farmers had little impact on clean
are
milk
Wayanad district. Therefore the
production.
The
farmers
to
receive
the
vessels
in
discontinue the use of chemicals
utensils
and disinfectants once the free
supplied through the DCSs free of
supply
a
cost under the NPDD to those
free
farmers who are yet to receive
detergents/chemicals for udder/
them. The numbers suggested and
utensil cleaning is not desirable.
the
is
stopped.
continuous
supply
Hence,
of
On the other hand, the stainless
and
financial
vessels
may
requirements
be
are
given in table 5.19.
steel utensils (the milking vessels
Milking machines are relevant in
and carrying utensils) are of use to
today’s context as the availability
the
whole
of family labor for farmstead jobs
heartedly welcome the component.
are steadily declining. Our field
It has helped to improve the initial
exposure visits shows that almost
farmers
and
they
Table 5.19 CMP Kits and Milking Machines Suggested for
Wayanad District under NPDD
Sl.
No.
1
2
3
Component
Stainless steel utensil kit/
accessories
Electrically operated milking
machines & other equipments for
hygienic milk handling at village/
farmer level
Manual milking machines
Total (7.0)
No. of
Units
Unit
Cost (Rs)
Total Cost
(Rs in
Lakh)
1500
400
6.0
15
55000
8.25
50
6000
3.00
17.25
177
Wayanad District
all the beneficiary farmers of the
SIQCMP schemes implemented in
earlier schemes use the machines
the district. The major components
although continuous service back
and the financial and physical
up is essential. It is suggested that
attainments in Wayanad district
fifteen more milking machines may
can be found in table 5.20.
be supplied to the farmers at
subsidized
(75%)
rate
under
NPDD. It is also suggested that a
few hand operated machines may
be supplied for a scientific and
methodical field trial in association
with KVASU.
(TIS)
technical
include
breeding,
domain and the line departments
have a variety of schemes for
supporting those activities. The
efficacy of AI and health care
delivery at farm gates, however,
remain
5.12 Technical Input Services
The
Those services are under the state
input
services
for
animal
support
health
prophylaxis, fodder
care
and
development
and other associated activities for
the benefit of participating farmer
members. The TIS was a major
component under the IDDP and
poor,
the
HH
survey
shows. Since those services are of
state
domains,
service
delivery
the
change
requires
in
policy
decisions and to avoid duplication
of such services (AI, health care,
home stead fodder production etc)
are
not
suggested
NPDD.
The
components
under
most
suggested
the
essential
on
a
priority basis can be found in table
5.21.
Table 5.20 Technical Input Services Components and Achievements in
Wayanad District
Component
Technical input
services
Physical
Achievement
Financial
IDDP/
SIQCMP
Union/
Beneficiary
Total (Rs
in Lakh)
294 farmers
41.5 lakh
17.78
59.28
178
Wayanad District
Table 5.21 Wayanad District Technical Input Services
Suggested under NPDD
Component
No. of
Units
Unit
Cost (Rs)
1
2
3
Liquid nitrogen containers
Audio visual kits etc.
6
1
30000
200000
Total
Cost (Rs
in Lakh)
1.80
2.00
4
5
Chaff cutter
180
36
5000
20000
25.00
7.20
10
100000
10.00
46.00
Sl.
No.
Animal health & breeding
input camps
Commercial fodder
production
Total
The
LN
containers
are
for
other hand, large land holdings
replacement of the ones in use.
and
The animal health and breeding
sources for fodder production –
input
fodder as a value added crop in
camps
include
a
pilot
fallow
lands
are
potential
program for fertility management
irrigated
of dairy cows among farmers. The
produced
program envisages identification of
amongst the DCS members at the
infertile
cost plus price. The scheme shall
cows,
management
providing
and
Veterinary
land.
The
shall
fodder
be
so
marketed
be a flagship program of NPDD.
support to correct the reproductive
problem, if any, documenting the
information
elsewhere.
for
adoption
Communication
It is a DCS based
program centrally controlled and
monitored from HO of MRCMPU.
The
5.13 Information and
conventional
homestead
Technology Networking
The MRCMPU, apart from being a
farmers’ organization, is also a
multi- crore business concern. Its’
failed
business units are far flung and
attempt in Kerala. The reasons are
widely distributed. The application
many, the most important being
and full utilization of Information
the land fragmentation and the
and
declining farming activities. On the
(ICT)
fodder
production
is
a
Communication
alone
will
Technology
enable
the
179
Wayanad District
MRCMPU to modernize their units
functions
and
architecture
keep
abreast
with
their
as
a
client
network
server
with
Six
competitors. It is also essential
centers, one each in each district
that
of
(Palakkad,
MRCMPU remains transparent to
Kozhikode,
their
Kasaragod) and a central server
the
whole
stakeholders,
business
the
dairy
Malappuram,
Wayanad,
Kannur,
farmers. Unfortunately the Milk
system
Union is in the infant stage in
centers. The information will be
exploiting the benefits of ICT.
made available to all the districts
The current status is that the
dairy operations are computerized
and
internally
networked
(intranet). A few DCSs are also
computerized but not networked.
The
milk
Union
proposes
to
expand the ICT so that the system
linking
all
these
six
and DCSs. The details of the
proposed
system
annex-1.
The
are
given
as
expenditure
is
proposed to be shared among the
district
projects.
The
share
of
Wayanad district is illustrated in
table 5.22.
180
Wayanad District
Table 5.22 Information and Communication Technology Networking
Wayanad District
Sl.
No.
1
1.1
1.2
1.3
1.4
1.5
1.6
2
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
2.11
2.12
3
3.1
3.2
Purchase of Computer/HHB
Desktop
Laptop & Netbook
Hand held range of computers
1000 LPM line printer
132 col DMP printer
A4 size net work laser printer
Purchase of Servers
Rack server
42 U server rack
Server storage device
Tape backup
UPS for server
Server OS & training
Weblogic server suite purchase
Oracle database 12C
Antivirus software
Hardware & networking
Software consultation charges (AMC)
Onsite software analysis and evaluation
for Union and DCS purchase
Software Purchase & Up-gradation
Charges
Software consultancy & database
administration
Leased line communication cost
Total
5.14 Manpower Development
training
and
development
program is adopted as a tool for
organizational development and to
make
strides
standards
in
productivity
including
cost
Units
Amt.
0.50
0.60
0.30
0.00
0.30
0.20
13
10
38
6.50
6.00
11.40
1
1
0.30
0.20
9.00
1.00
8.00
8.00
7.00
3.00
15.00
15.00
1.00
10.00
5.00
2
1
1
1
2
1
1
1
3
1
1
18.00
1.00
8.00
8.00
14.00
3.00
15.00
15.00
3.00
10.00
5.00
5.00
1
5.00
1
1
10.00
10.00
149.40
30.00
10.00
10.00
reduction,
and
5.14.1 Current Status
The
Unit Rate
(Rs in
Lakh)
Details
energy
product
conservation
improvement
in
MRCMPU. Apart from the Union
employees,
the
staff
and
the
elected representatives of the DCS
and the Board are also trained on
appropriate subjects.
181
Wayanad District
Table 5.23 Employees and the Elected Members Trained in Wayanad
District
Sl.
No.
1
Number of
Persons
Trained
Course
Cooperative development program
a
No. of programmes
15
b
No. farmers trained
2102
c
FIP- Local farmers attended
1407
Management orientation
85
2
d
Training of BMC/DCS/MCC staff
16
3
Training of DCS secretary
113
4
Training of DCS employees
85
5
Training on AI
6
Training of farmers on GMP/GHP
7
Training of farmers on AH practices
8
FIP
17
3838
96
735
10
Training on marketing
20
11
Training of management committee members
39
Table 5.23 shows the numbers
Dairy/cattle feed plant. Farmers
trained in various categories from
are
Wayanad district. The DCS staff
Induction
has been trained at the HRD
carried out in the HRD Centre,
centre, Kozhikode under MRCMPU
Kozhikode.
on
Management
the
relevant
trainers
subjects.
The
those
from
included
the
trainees.
The
farmers
is
normally
program
The
Dairy
Training
Animal
to
the
farmers has been undertaken in
within the organization and also
APCOS
invited from other organizations.
included lectures by experts and
The duration ranged from one to
visit to a few well run farms. The
three
subjects
farmers were given opportunities
handled were those relevant to the
to see for themselves the success
concerned groups.
and failure stories.
The CD program includes training
The
in
village
followed
employees is arranged by the Head
by
a
processing
Office in the institutions of repute
days
visit
and
the
cooperatives
to
the
DCSs.
training
The
for
training
MRCMPU
182
Wayanad District
in India, both inside and outside
and DCS employees should
the state. An interaction with a
be initiated on a project mode
test
and results closely monitored
group
showed
that
the
trainings were partially useful for
upgrading their knowledge, skills
and attitude.
16. The
Dairy
Production
An amount of Rs 22.58 lakh had
been spent on various training
programs
and evaluated.
in
Wayanad
district
under the IDDP and CMP Phase I
Officers
Marketing
staff
and
should
be
exposed to higher levels of
knowledge on production and
marketing management. They
should
and II.
Managers,
be
provided
opportunity to visit centers of
excellence
5.14.2 Key Issues and
the
state/country.
Suggestions
13. The
outside
future
training
17. The
thrust
of
capacity
programmes especially those
building
for the middle level employees
employees
starting
modern Management Systems
from
Supervisors
of
higher
should
be
level
on
should be hand on training
rather
exclusively on subjects and
technical
skills relevant to them.
should be exposed to the
14. Farmers training should be
organized
in
villages
themselves with the support
of LSG and Village Extension
15. All out and comprehensive
on
Eradication,
Production
Village
Mastitis
Extension
in
country
to
in
dairy
the
Schreiber
(eg:
Dynamix)
They
the
elsewhere
to
widen
their
18. The FIP must be gradually
phased out.
Milk
The courses suggested and the
farmers,
estimated costs are given in table
Workers
5.24.
Clean
for
subjects.
happenings
sector
limiting
vision and outlook.
Workers under MRCMPU.
training
than
183
Wayanad District
Table 5.24 Proposed Training Program under NPDD – Wayanad District
Sl.
No.
Course
Unit
No. of
Units
Unit
Cost (Rs)
Total
Cost (Rs
in Lakh)
Prog.
15
80000
12.00
1
CD programme
2
FIP
Person
200
300
0.6
3
Secretary
Person
125
3000
3.75
4
5
6
Tester/Helper
Training of farmers in GMP/GHP
Training of farmers in animal
husbandry
Person
Person
125
250
3000
2000
3.75
5.00
Person
66
2000
1.32
7
Dairy manager
Person
2
20000
0.40
8
9
Production officers
Dairy plant supervisors
Person
Person
8
9
20000
20000
1.60
1.80
10
Technicians/Operators
Person
7
20000
1.40
11
Milk marketing officers
Person
7
20000
1.40
12
Training of MC members
Person
3
12000
0.36
13
Dairy extension activities
Prog.
7
1000
0.07
Total (10.0)
5.15
1256
33.45
Working Capital –
The working Capital requirement
Wayanad District
is fluctuating throughout the year
depending on local milk
The Dairy shall maintain
procurement. During lean season
minimum quantity of finished
during which the procurement
products at all times to ensure
from the district declines, union is
uninterrupted sales. Minimum
procuring large quantity milk from
quantity of all raw materials,
other states for which payments
consumables packing materials,
are made in advance. Large
stores and spares etc. are also
quantity of SMP shall also be
required to maintain smooth
processing/production operation.
stocked to meet any contingencies.
Table 5.25 Value of Milk Procured in 21 Days from Wayanad District
Milk Procurement (LLPD)
District 2013-14 2014(Actual)
15
201516
201617
Average
Milk
Price
(Rs)
Days
Total Milk Total Milk
Value
Value (Base
(EOP)
Year)
(Lakh)
(Lakh)
184
Wayanad District
Wayanad
1.22
1.15
1.34
1.44
28.88
21
739.9056
873.3312
During flush season funds are
district comes to Rs 740 lakh in
needed to stock ghee, converted
2013-14 which is expected to go as
SMP, cream, etc. which are
high as 873 lakh in 2016-17 (table
produced in excess of normal
5.25). The Union proposes to meet
market requirements. Union is
this amount from the internal
supplying cattle feed and other
reserves while the amount for the
inputs to the societies on credit
purchase of milk powder, cattle
basis. Present supply of cattle feed
feed and packing material has to
to societies is more than 1200 MT
be found from other sources. This
per month. It is expected to
amount works out to Rs 443.7 as
increase significantly in the
shown in table 5.26.
coming years.
It is suggested that an amount of
At the current procurement price,
443.7 lakh may be provided as
the value of 21 days milk collected
working
from the societies in Wayanad
district under the NPDD.
capital
for
Wayanad
Table 5.26 Working Capital Required in Wayanad District 2014-15 to
2016-17
Working
Capital
Purchase of milk
powder
Purchase of
packing material
Purchase of
cattle feed
Total
Unit
No. of
Units
Unit
Cost
(Rs)
201415 (Rs
Lakh)
201516 (Rs
Lakh)
201617 (Rs
Lakh)
Total
Cost (Rs
Lakh)
KG
80000
300
60.00
90.00
90.00
240
KG
7000
210
4.20
4.20
6.30
14.7
MT
1050
18000
63.00
63.00
63.00
189
127.2
157.2
159.3
443.7
185
6. KANNUR DISTRICT
Contents
Executive Summary..........................................................................188
6.1 General Features ........................................................................192
6.2 Trend in Cattle Population ..........................................................193
6.3 Trend in Milk Production from Bovines .......................................194
6.4 Milk Chilling 194
6.5 Milk Processing
195
6.6 Milk Marketing
199
6.7 Milk Procurement
208
6.8 Cattle Shed and Farm Machineries
6.9 Cattle Induction
215
216
6.10 Establishment of Laboratory
218
6.11 Clean Milk Production Kits for Beneficiaries
6.12 Technical Input Services (TIS)
219
220
6.13 Information and Communication Technology Networking
6.14 Manpower Development 223
6.15 Working Capital - Kannur District
225
221
Wayanad District
Kannur District
Kannur District
187
Wayanad District
Executive Summary
The Kannur district is not among
export regulations. In addition, the
the
dairy
frontline
dairy
districts
in
requires
certain
critical
Kerala. Yet livestock farming is
equipments, some as standby and
germane to the vast majority of the
some
farmers in the district. The official
suggested
statistics, however, show that the
replacements are estimated to cost
cattle sector, both in numbers and
Rs 273.00 lakh.
output, suffered setbacks since
late nineties. The cattle numbers
declined by 61 per cent from 1996
to 2012 and in-milk cows by 34
per cent. Surprisingly the annual
milk
production
fell
only
marginally in spite of the sharp fall
in cattle numbers.
as
replacement.
additions
The
and
The market survey shows that the
supply-demand gap of milk in
Kannur district is 2.67 LLPD. The
market share of MRCMPU in the
liquid milk segment in Kannur
district is just 30 per cent which is
not satisfying. The Milk Union is
facing fierce competition from the
The MRCMPU has a processing
competitors, mainly from within
dairy at Kannur. The installed
the district, but also from outside
capacity of the dairy is 1.5 LLPD.
to a smaller level.
During
2013-14,
processed
on
an
But the market
the
dairy
analysis reveals that this is not a
average
1.04
restricting factor to command a
LLPD, almost 20 per cent below
better
the installed capacity. Even at the
inadequate market infrastructure
peak procurement level during the
is one of the reasons for the low
year,
market share. The dairy’s business
the
dairy’s
capacity
market
share.
The
utilization has only been 75 per
plan
cent. Hence there is no urgency in
revision.
expanding the processing capacity
marketing strategy supported by
of Kannur dairy. But the product
adequate
manufacturing
requires
required. To begin with, new milk
certain additions on account of the
parlors and Shoppe are suggested
line
may
also
Hence
require
an
some
aggressive
infrastructure
is
188
Kannur District
to be opened in prominent public
The lack of good cattle sheds and
places.
through
farm machineries are identified as
print and visual media is also
the major constraints in dairy
suggested. Periodic market surveys
production
and R&D on consumer likes and
preferences
Wide
publicity
(example
packing
for
flavored
cream,
peda,
attractive
Kannur
district.
Financial
support
for
strengthening
of
old
cattle
ice
sheds/construction of new ones
also
and supply of farm machineries
suggested. The estimated cost on
and equipments are proposed at a
market promotion works out to Rs
total cost of Rs 80.00 lakh.
etc.)
milk,
in
are
437.5 lakh.
In order to promote cattle keeping
The MRCMPU has built up an
among the below poverty line (BPL)
extensive net work of DCSs and
and the SC/ST families, a cattle
BMCs for milk procurement from
induction program is suggested.
farmers.
The
All
reasonably
the
good
DCSs
milk
have
testing
NABARD
followed
for
norms
shall
administering
be
the
facilities. All the BMC DCSs have
subsidies. The overall support for
facility for MBRT estimation. The
240 animals is estimated to be Rs
field level milk testing, however,
92.55 lakh.
requires further refinement. The
major constraints identified in the
expansion of milk procurement
and clean milk production are lack
of convenient buildings for DCSs,
absence
of
good
quality
water
supply facilities with some DCSs
and lack of incentives for clean
milk production
and support for
cattle feed transport. The support
suggested
for
procurement
activities in Kannur district is
expected to cost Rs 233.2 lakh.
It is suggested to establish a
central
milk
testing
lab
at
Kozhikode dairy by pooling the
funds from all the districts. This
will
eliminate
the
need
for
replication of the same facilities
and expenses in all the districts.
Some additional equipments and
furniture
Kannur
are
also
required
dairy
lab.
All
in
these
together are estimated to cost Rs
54.00 lakh.
189
Kannur District
The farmer beneficiary programs
running for the past few years. It is
proposed
are
productivity
clean
milk
aimed
at
milk
suggested to scale up some of
enhancement
and
these
production.
They
include distribution of stainless
steel utensils, milking machines,
animal breeding and health cover
and commercial fodder production
for which at the estimated cost
works out to Rs 38.65 lakh.
programs.
The
suggested
programs would cost Rs 57.6 lakh.
The business plan of MRCMPU
suggests substantial increase in
milk
procurement
and
sale
in
Kannur district. The milk prices
are to be paid to the farmers
regularly which alone cost rupees
The MRCMPU needs to network
300 lakh or more every 21 days. In
with the various units and the
addition, keeping a buffer stock of
DCSs
raw and finished goods is essential
for
effective
information
sharing and communication. The
to
suggested system is a client server
business. This, as also several
architecture
six
other requirements force the Milk
district
Union to borrow money from the
(Palakkad, Malappuram, Kozhikode,
open market which causes extra
Wayanad, Kannur, Kasaragod) and
burden to the Union and the
a central server system linking all
farmers. Hence it is suggested that
these six centers.
The data and
an amount of Rs 117 lakh shall be
information will be made available
paid to the milk Union as a one-
to all the districts and DCSs. The
time
estimated cost of these in Kannur
Capital.
centers,
one
network
in
with
each
district is Rs 123.0 lakh.
The
safeguard
an
assistance
Suggestions
uninterrupted
for
for
Working
Kannur
The HRD through training and
district abstract of the proposed
skill
program is as follows:
development
is
a
routine
The
activity of MRCMPU in Kannur
suggested programs for Wayanad
district.
shall be summed up as follows.
Several
programs
were
190
Kannur District
Component
Milk processing and packaging
Amount
(Rs in Lakh)
273.00
Milk marketing
437.55
Milk procurement
233.20
Cattle sheds and farm machineries
80.00
Cattle induction
92.55
Central testing laboratory
54.00
CMP kits and milking machines to farmers
17.25
Technical inputs services
30.00
Information and communication technology
Human resource development
Working Capital
Total
123.00
57.60
117.30
1515.40
191
Kannur District
the
6.1 General Features
2011
census,
the
district
into
population is 25.23 lakh of people,
existence on first January 1957.
8.82 lakh in rural and 16.41 in
The district is surrounded by the
urban
Coorg
density
Kannur
district
district
came
of
Karnataka
areas
with
of
an
average
population
of
Agriculture
is
(Western Ghats) in the East, the
850/sq.km.
Kozhikode and Wayanad districts
livelihood intensive to majority of
in the South, the Lakshadweep sea
people. The main crops grown in
in the West and the Kasaragod
the district are paddy, coconut,
district in the North. The district
pepper, cashew, tapioca, areca nut
occupies 2966 sq.km. of the state
and plantation crops like rubber
in three geographical regions -
and spices.
highlands, midlands and lowlands.
The
highland
region
comprises
mainly of mountains and major
plantations of rubber. The midland
region,
lying
between
the
mountains and the low lands, is
made up of undulating hills and
valleys. This is an area of intense
agricultural activity. The lowland
is
comparatively
narrow
and
comprises of rivers, deltas and
seashore.
This
is
a
region
of
coconut and paddy cultivation.
Dairy cattle are germane to the
farming systems in the district. The
livestock population in the district
comprises of 1,06,237 heads of
cattle, 765 buffalo, 55,262 goats
and 4534 pigs as per the latest
cattle census (2012). The census
figures
suggest
population
in
that
the
the
cattle
district
is
continuously declining. The state
departments, AHD and DDD, are
the
major
service
providers
in
livestock sector. Under the AHD, the
Kannur district has three Taluks,
district has 12 Veterinary hospitals,
129
Villages,
Grama
Municipal
nine
Panchayats
Towns
Blocks,
81
68 dispensaries, five poly clinics,
and
six
one mobile dispensary, two mobile
(Thaliparamba,
farm-aid
units,
one
District
Kannur, Thalassery, Kuthuparamba
Veterinary Centre, four Regional
Payyannur and Mattannur). As per
Artificial Insemination centers and
one hundred and fifty one AI sub
192
Kannur District
centers. The DDD has one Dy.
district
declined
Director Office (District Office), nine
period. The total cattle declined by
Dairy Extension Offices and one
61 per cent and cows in milk by 34
quality control office in the district.
per cent between 1996 and 2012.
MRCMPU has a processing dairy
The in-milk buffaloes had mixed
here with a capacity of 1,00,000
fortune,
LPD of milk. Traditionally, milk and
declined from 4519 to 146 between
curd are being brought in from
1996
Tamil Nadu to this region.
marginally gained between 2007
the
and
during
numbers
2007
and
this
sharply
then
and 2012. Although the accuracy
6.2 Trend in Cattle Population
of the data on cattle numbers is
The cattle population in Kannur
questionable, it is certain that in
district declined between 1996 and
the
2012, the official statistics shows.
farmers in Kannur district dropped
As is evident from fig. 6.1, both the
out of dairying due to economic
total and in milk cows in the
and other factors.
recent
past
many
dairy
Fig 6.1 Cattle population Kannur District
( source Cattle census reports, DAH, GOK)
300000
Cattle/Buffalo Num ber
250000
200000
150000
100000
50000
0
1996
2003
2007
2012
Total Cattle
272011
159858
119144
106237
Cow s in Milk
75890
52111
43203
50200
Buffalo in milk
4519
269
146
2100
193
Kannur District
6.3 Trend in Milk Production
from Bovines
6.4 Milk Chilling
The BMCs installed in DCSs, apart
According to the ISS estimates
from the dairy at Kannur, provide
(Fig.
the milk chilling facility in Kannur
6.2)
production
the
in
annual
Kannur
milk
district
district.
The
position
of
milk
increased from 140.8 thousand MT
chilling in Kannur district (other
in 1997-98 to 147.3 thousand MT
than Dairy) during March 2014 is
during
given in table 6.1.
2001-02,
declined
during
made
to
then
105
2004-05
sharply
thousand
and
spectacular
MT
thereafter
recovery
to
139.3 thousand MT during 201112. Although the accuracy of the
data is questionable, we have to
accept these figures as we don’t
have any other authentic data on
The Kannur district has unused
chilling capacity. More over a new
Dairy
is
soon
coming
up
in
Kannur. Therefore, at this stage,
there
is
no
additional
need
chilling
to
create
capacity
for
milk in Kannur district.
milk production.
Fig 6.2 Milk Production Kannur District
105
140
120
M ilk in '000M T
1 3 9 .3
1 2 2 .4
1 4 7 .3
160
1 4 0 .8
(Source ISS AHD GOK)
100
80
60
40
20
0
1997-98
2001-02
2004-05
2008-09
2011-12
194
Kannur District
Table 6.1 Milk Chilling Facility in Kannur District 2013-14
Sl.
No.
1
Description
Quantity
No. of BMCs commissioned up to March 2014
23
2
No. of DCSs in which BMCs are positioned (BMC DCSs)
3
No. of cluster DCSs attached to BMCs
4
Total installed capacity of BMCs ltr.
52000
5
Av. milk collected through BMCs 2013-14 LPD
41100
6
% capacity utilization
7
Av. MBRT of BMC collected milk - Minutes
8
Av. SPC of BMC collected milk – CFU per ml
9
Av. Coliforms of BMC collected milk – CFU per ml
10
23
126
79
150
180000
No. of milk chilling plants
6.5 Milk Processing
40000
Nil
The capacity of the dairy was
expanded from 60,000 LPD to
6.5.1 Processing Capacity and
1,00,000 LPD during 2002-03 and
Capacity Utilization
further upgraded to 1,50,000 LPD
The Kannur district has one dairy
during 2009-10. The sources of
at
milk for Kannur dairy are the milk
Pallikkunnu,
six
kilometers
from Kannur town near NH 47.
procured
from
farmers
in
the
Kannur Dairy
195
Kannur District
district and that supplied from
the Kannur dairy also produces
Wayanad Dairy/Chilling Plant. The
curd,
average procurement of milk from
(Sambharam). They export ghee to
Kannur district during 2013-14
the Middle-East countries.
ghee
and
buttermilk
was 50,700 LPD of which 41,110
liter (81%) was received as chilled
6.5.2
milk from BMCs.
Infrastructure – Kannur
In addition 40,061 liter (average) of
pre-chilled milk was received from
other units of the Milk Union. The
dairy also imported 13,250 LPD
(average)
chilled/processed
Milk Processing
milk
during summer/festival times from
other states. The total inflow of
milk during 2013-14 was 1,04,011
LPD which works out to 69 per
cent of the installed capacity.
Dairy
As stated above, the Kannur dairy
has undergone major upgradation
during the last decade. The dairy
is one of the show pieces of
MRCMPU
and
professionally.
it
is
managed
In the process of
upgradation, the civil structures
were
modified
and
expanded.
Several equipments were added in
the process line, and the quality
The Kannur Dairy processes three
checking
and
monitoring.
The
variants of liquid milk. In addition
current stays of major equipments
can be found from table 6.2.
Table 6.2 Kannur Dairy: Existing Facilities and Equipments
Sl. No.
1
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
2
2.1
2.2
2.3
2.4
2.5
Facility
Production Block (Carpet area all floors)
Service block
General go-down (including SMP stores)
Milk/Curd cold storage
Butter deep freeze
Administration block (Total carpet area )
Workers amenities block
Tray washing block
Effluent treatment plant
Reception
Can roller conveyor
Can washer
Dump tank
Can scrubber (SS 304)
Can steaming block
Unit
Numbers
100
160
200
0
120
100
160
600
1
1
1
1
1
1
1
1
600 cans/hr
600 cans/hr
2 Kl
500 L
Single can
1
0
1
2
1
196
Kannur District
Sl. No.
3
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
4
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
5
5.1
5.2
6
6.1
6.2
6.3
6.4
6.5
6.6
6.7
7
7.1
7.2
7.3
7.4
7.5
7.6
8
8.1
9
9.1
10
10.1
10.2
10.3
11
11.1
11.2
Facility
Processing/Storage Equipment
Milk chillers
Tri-purpose centrifuge
Milk pump
Horizontal milk storage tank
Vertical milk storage tank
CIP system - Double circuit
Pasteurizer
Milk silo
Fat Handling
Sour milk separator
Cream storage tank
Cream pump
Ghee boiler
Ghee settling tank
Ghee storage tank
Ghee pump
Ghee clarifier
Cream transfer tank
Recombination
Emulsifying tank
Homogenizer
Milk Marketing
Pouch filling machine DHG mechanical
Pouch filling machine auto SH mechanical
Voltage stabiliser
Milk pumps
Cold store conveyor
Pouch crate washer
Date coding device for pouch filling machines
Service Equipment
Refrigeration compressors
(make/model/type/cap.)
Motor for refrigeration compressors (KV)
Ice bank tank
Chilled water pump
Chilled water agitator
Air handling unit for cold storage/deep
freezer (make/model/cap)
Steam Raising Plant
Boiler (oil/coal)
Compressed Air System
Air compressors
Industrial Electrical
DG set
Transformer
LT panel
Water Supply System
Water storage tank
Water pumps
Unit
Numbers
20 KLPH
10 KLPH
10 KLPH
15 KLPH
10 KLPH
20 KLPH
10 KLPH
60 KL
1
1
4
3
1
1
1
1
500 LPH
2000 LTR
5000 LPH
2000 LTR
3000 LTR
3000 LTR
3000 LPH
2000 LPH
1000 LTR
1
3
1
1
3
3
1
1
2
5000 LTR
10 KLPH
1
5000 PPH
2500 PPH
25 KVA
10000 LPH
1200 cr/hr
1200 cr/hr
60 IMP/Mnt
Capacity
8
1
1
4
1
1
Quantity
20 TR
40 HP
100 KL
90 KLPH
5 HP
3
3
1
2
2
3 TR
Capacity
1 MT
Capacity
50 CFM
Capacity
250 KVA
315 KVA
415 V
Capacity
50 KL
20 KLPH
3
Quantity
1
Quantity
2
Quantity
2
1
1
Quantity
1
1
197
Kannur District
All the equipments are in full use.
Traceability is a must in the case
The evaluation of current status
of export consignments during the
and the need assessment shows
procurement,
that
despatch.
some
of
the
critical
production
Mixing
with
and
normal
equipments require replacement.
batches for local supply is not at
Taking in to consideration these
all allowed. Hence a separate silo
aspects, the following equipments
and fat handling equipments are
are suggested to be included under
suggested for Kannur dairy under
NPDD (table 6.3).
NPDD. All the other equipments
The Kannur dairy has recently got
export
approval
for
ghee.
like milk pumps are proposed as
spare to the existing ones.
Table 6.3 Equipments and Machineries Proposed for Kannur Dairy under
NPDD (2014-2017)
Sl.
No.
Milk Processing &
Marketing
1
2
3
4
5
6
7
8
9
10
11
12
13
Milk pump
SS pipes and fittings
Tri-purpose centrifuge
Milk silo
Cream storage tanks
Cream pumps
Ghee boiler
Ghee storage tank
Ghee clarifier
Pouch filling machines
Crate washer
Boiler
Refrigeration compressors
with accessories
Cold store (including
equipments)
Date coding devices for pouch
filling machines
LT electrical
DG set
Total
14
15
16
17
Total
Unit Cost
Cost (Rs
(Rs)
in Lakh)
Speciation
No. of
Units
10 KLPH
Lot
10 KLPH
60 KL
3 KL
5 KL
2 KL
3 KL
2 KLPH
5000 PPH
1200 TPH
2 TON
4
1
1
1
1
1
1
1
1
1
1
1
50000
500000
3500000
2500000
800000
300000
500000
700000
1500000
1000000
1000000
3500000
2.00
5.00
35.00
25.00
8.00
3.00
5.00
7.00
15.00
10.00
10.00
35.00
30 TR
1
3000000
30.00
5 TR
1
2500000
25.00
2
150000
3.00
1
1
3000000
2500000
30.00
25.00
273.00
60
imp/mnt
0
320 KVA
198
Kannur District
As per the FSSA, the cold store
0C
temp must be below 5
for
marketing
wing
has
an
Asst.
Manager, Asst. Marketing Officer
storage of milk. Since the cold
and
store in Kannur dairy is very old,
Koothuparamba Depot is under a
an additional cold store is needed
Marketing Organizer assisted by
along
two field staff. The Kannur Dairy
with
refrigeration
strengthening
by
adding
of
high
four
markets
field
liquid
staff.
milk
The
and
milk
efficiency compressors. Hence they
products
are
dairy plus the products procured
also
suggested
under
the
NPDD.
from
manufactured
the
Product
in
the
Dairy
at
Kozhikode.
6.6 Milk Marketing
6.6.1 Introduction
6.6.3 Supply Chain
Milk marketing is one of the major
The MRCMPU has more or less
functions
The
similar supply chain in all the
Marketing
districts. The milk and the milk
of
chapter
on
provides
an
MRCMPU.
Milk
overview
of
the
products
reach
the
consumers
of
from the processing units through
MRCMPU in Kannur district, the
the retailers designated as dealers.
infrastructure available and the
The liquid milk is directly supplied
sales achievements of liquid milk
from the Dairy to the dealers and
and major milk products during
the
2013-14.
also
wholesalers. At the close of March
and
2014,
marketing
identifies
organization
The
the
chapter
key
issues
products
there
through
were
1344
the
retail
provides
outlets and 19 wholesalers for milk
recommendations to address them.
and milk products distribution in
problems
and
Kannur
district. A well developed
6.6.2 Marketing Organization
intending and distribution system
The marketing wings attached to
exists. The liquid milk and the
Kannur Dairy and Koothuparamba
products are sold to the dealers on
Depot (Cold Storage) organize the
advance payment. Credit facilities
marketing activities. The Kannur
were extended to the dealers on a
199
Kannur District
limited scale.
The milk and milk
in Kannur district was 1.36 LLPD
products sold during 2013-14 are
(Milma
shown in table 6.4.
competitors).
The table shows that there is a
marginal
(12%
in
three
years)
growth in sale of milk while the
growth in certain products- curd,
ice
cream
and
ghee-
are
substantial.
1.20
plus
0.16 of
the
sales
of
The
competitors are assessed through
a series
of interviews and its
accuracy cannot be vouched. The
sales pertain mostly to the urban
area
and
therefore
the
rural
consumption is extra.
Yet another way of calculating the
6.6.4 Market Size and Market
Share of MRCMPU
market is by understanding the
end user purchases. The sample
Market size is the measurement of
survey conducted by the study
the total volume of a given market.
group shows that the per capita
Market
consumption
size
standard
sales
calculated
practice/
approach
on
a
competitive
(bottom
up
approach) shows that the market
among
the
rural
people is 150 ml and that of urban
173 ml.
The market size is
calculated as shown in table 6.5.
for liquid milk in 2013-14 period
Table 6.4 Milk and Milk Products Sold in Kannur District
Sl. No.
Milk/Products
1
Liquid milk (LPD)
2
Curd (Liter/day)
3
Ghee (Kg/month)
4
2009-10*
2013-14
108062
120450
9784
10855
28415
30007
Ice cream (Liter/month)
3684
14404
5
Butter milk (200 ml Pkts./day)
6979
8435
6
Milk peda (Kg/month)
2200
4037
7
Sip up (Pkts./month)
72340
49975
8
Palada (Kg/month)
261
846
9
Milma plus (Bottles/month)
2500
9176
* Previous bench mark figures
200
Kannur District
Table 6.5 Estimation of Market Size for Milk Kannur District 2014
Sl. No.
Description
Rural
Urban
Total
882017
1640986
2523003
1
Population Kannur district
2
Cattle holdings %
3
Potential consumers (1/0.82)
Proportion of population that consume
milk in Kannur (HH survey) (%)
723254
1640986
80
93
5
Actual consumers (3 x 4/100)
578603
1526117
2104720
6
Per capita consumption HH survey
Household demand LPD (5 x 6)
150
86790
173
264018
350809
0
52804
52804
86790
316822
403612
4
7
8
18
Inst. demand (20% of urban demand)
9
Total demand (7 + 8)
10
Milma supply
11
Market share %
50
2364240
120000
30
The MRCMPU marketed milk at
products, they also act as a media
the rate of 1.2 LLPD. This works
for improving the visibility of milk
out to 25 per cent of the market
and milk products. The Milma
size which indeed is low. Hence
Shoppe
supports under the NPDD should
considered as a bigger version of
all be geared up to improve the
milk
market coverage.
visibility of the products and to
in
towns
parlors
to
can
increase
be
the
increase the sales.
6.6.5 Milk Marketing
Infrastructure – Current
Status
The table 6.6 shows the various
support
equipments
logistics
available
and
in
other
Kannur
district for market promotion.
Among
the
various
marketing
infrastructure provided under the
CSS,
the introduction of PUF
insulated
vehicles
in
milk
distribution routes and PUF boxes
in the retail outlets are worth
mentioning. With the addition of
The milk parlors are positioned in
the
strategic locations to attract more
IDDP scheme during yester years,
consumers
the entire milk transport from
Apart
from
to
Milma
selling
products.
the
Milma
PUF
containers
under
the
Kasaragod dairy has switched over
201
Kannur District
to PUF insulated vehicles.
The
energy consuming freezers. They
PUF boxes of varying sizes, 50-150
occupy
liter, provided at 50 per cent
movable and are easy to clean. The
subsidy
in
together
with
the
the
less
space,
are
easily
retail
outlets
boxes retain the low temperatures
PUF
bodied
for about 3-4 hours during which
transport vehicles, ensure perfect
end-to-end cold chain and quality
assurance – dairy to consumer.
Our field exposure visits revealed
that the retailers wholeheartedly
welcome the PUF boxes because
they are viable alternatives for the
the milk is generally sold out.
Freezers,
200
capacity,
are
and
120
provided
to
liter
the
retailers at a subsidized price of Rs
5000/- a piece for storing frozen
Milma products. Apart from ice
Table 6.6 Status of Marketing Infrastructure in Kannur District
March 2014
Sl. No.
Facility/Equipment
Quantity
1
Wholesalers for milk (No.)
Nil
2
Wholesalers for products (No.)
19
3
Retail outlets of milk and products (No.)
4
Milk parlors (No.)
8
5
6
Milma shoppe (No.)
6
Marketing depots/Hub (Mobile cold storage) (No.)
1
7
PUF vehicle containers (3 MT) (No.)
8
9
10
PUF vehicle containers (1.5 MT) (No.)
% milk routes using PUF vehicles for milk
distribution to retail outlets
PUF boxes 50 liter (No.)
11
PUF boxes 100 liter (No.)
141
12
PUF boxes 150 liter (No.)
66
13
PUF boxes 25 liter (No.)
14
PUF boxes 460 liter (No.)
15
Shipper box for ice cream
16
200 liter freezers for dealers (No.)
17
200 liter freezers glass top for dealers (No.)
18
120 LTR freezers (No.)
75
19
500 liter freezers
24
1344
34
3
100
524
254
7
33
100
4
202
Kannur District
cream, milk is also sometimes
is a wide gap between supply-
stored in freezer cabins. The takers
demand. To take advantage of
for the freezers are many and
these
almost all the freezers are in use,
safeguard the interests of the milk
field exposure visits and surveys
producers in the district, a further
reveal.
are
expansion of the marketing outlets
provided at subsidized price to
and development of an aggressive
store products like flavored milk,
marketing strategy are essential to
cup curd etc.
protect the interests of the milk
The
The
Kannur
Visi-coolers
district
is
under
favorable
factors
and
to
producers in the district.
perpetual threat from the private
Consumer awareness camps are
dealers. On the one hand, the milk
being
production is declining in the rural
organized to explain the chain of
areas and on the other, the market
activities
for milk and milk products are
procurement from farmers to sales
vertically
the
from retail outlets. The consumers
market analysis shows that there
also get an opportunity to gather
expanding.
Also
held
and
involved
dairy
from
visits
milk
Milk Parlor Kannur Dairy
203
Kannur District
first
hand
quality
information
assurance
on
followed
the
cooperative organizations are the
at
real threat to Milma. They provide
various stages of milk reception,
higher
processing
incentives to the dealers and even
and
marketing.
sales
commission
and
Advertisement boards and banners
provide
are exhibited in busy places for
institutional
publicity of the milk and milk
within the hands of the private
products.
advertisement
traders. At the same time, milk
activities are scale inadequate and
production is livelihood intensive
are not reaching a large segment of
to a vast majority of the marginal
the public particularly those in
and
rural areas. The milk marketing in
Kannur district who depend on
Kannur
Milma to market their milk. The
The
district
is
increasingly
flexible
sub
credit.
segment
marginal
is
The
largely
farmers
of
becoming competitive. The market
MRCMPU
study reveals that a huge part of
unexploited
the market remains unexploited
particularly the rural market to
(see 6.5).
Hence it is suggested
increase the market share and to
that
consumer
net
the
programs
and
awareness
to
tap
market
income
the
potential
for
dairy
publicity
development in the district. Hence
measures should cross the usual
MRCMPU has to scale up their
styles and explore newer frontiers
marketing
to
district for which a few suggestions
attract
the
extra
has
more
and
more
consumers in to the fold of Milma.
The crux of the issues in Kannur
is that the marketing organization
unsaturated
to
exploit
potential
counter
the
private
dealers
Kannur
are placed below (table 6.7).
explanatory. A few items deserving
Recommendations
inadequate
in
The table is more or less self
6.6.6 Key Issues and
is
activities
and
mention
are
explained
below.
a. Milk Parlors
to
Milk Parlors were established in
The
prominent public places during
certain
the first Phase of IDDP to promote
competitors.
and
the
special
204
Kannur District
Table 6.7 The Suggested Infrastructure under Marketing in Kannur District
Sl.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Depot/Parlor
Milk parlor civil
Milk parlor equipments
Shoppe support
Space in super markets
Decorated mobile product vehicle
PUF vehicle containers (3 MT)
PUF boxes 25 460 liter
Shipper boxes for ice cream
200 liter freezers for dealers
200 liter freezers glass top for
dealers
120 LTR freezers
500 liter freezers for dairy
Deep freezers 320 liter
Deep freezers 320 ltr. (Glass top)
Visi-coolers 220 liter
Visi-coolers 320 liter
Advertisement & consumer
awareness
Canopy with eutectic freezer
subsidy
Hoarding/traffic circle/wall
painting
Banners at festival venue
Painting/Vinyl sticker - PUF
containers
Support to milk stockiest (RD)
Dealer club meet/orientation/
incentive
Effluent treatment plant (ETP)
Total
No. of
Units
Unit
Cost (Rs)
15
15
5
30
3
7
400
120
120
50000
10000
500000
20000
50000
250000
2000
6000
13000
Total
Cost (Rs
in Lakh)
7.50
1.50
25.00
6.00
1.50
17.50
12.00
7.20
15.60
90
90
20
105
90
90
75
17000
11000
23000
17000
20000
20000
30000
15.30
9.90
4.60
17.85
18.00
18.00
22.50
LS
140.00
9
100000
9.00
6
300
100000
200
6.00
0.60
45
15
20000
200000
9.00
30.00
12
1
25000
4000000
3.00
40.00
437.55
the sale of milk and milk products.
district. Therefore 15 more parlors
Buyers are served milk and milk
are suggested to be established in
products in a consumer friendly
the district (Rs 9 lakh).
environment. All the parlors started
during Phase I are functioning well
and they provide the necessary
stimulus for higher sales of Milma
milk and milk products in the
b. Milma Shoppe
Improving the visibility of Milma
milk and products is important to
scale up its business. Improving
205
Kannur District
the business is very crucial to
a cost of 17.5 lakh for operating
sustain
new routes.
milk
production
and
livelihood support to the resource
poor
milk
under
producers
the
hard
operating
conditions
in
Kannur district. Keeping this in
mind,
MRCMPU
started
‘Milma
d. PUF Boxes/Visi-Coolers
MRCMPU
have
effectively
demonstrated that PUF Boxes are
the most suited and the cheapest
district.
method to keep the cold chain
Shoppe works as a brand shop of
uninterrupted from the point of
Milma with all Milma products
origin to the point of consumption.
available at the outlet and it works
Freezers
round the clock. It has won the
preserve milk. Moreover freezers
appreciation of one and all and is
are capital intensive and expensive
found to be an effective tool to
to
publicize its products. From the
supplied under the IDDP/SIQCMP
past
the
are doing good service to this end.
effective
It is proposed that all the retailers
instrument to promote milk and
be provided with new or additional
other products.
It is suggested
PUF boxes at a cost of Rs 12 lakh
that five more shoppe be started in
to achieve 100 per cent cold chain
towns during the project period (Rs
maintenance.
Shoppe’
Milma
in
Kannur
experience
shoppe
of
is
Milma,
an
are
maintain.
uneconomical
The
PUF
to
boxes
25 lakh).
Visi-coolers
c. PUF Bodies
equipment
In order to give good quality milk
and
milk
consumers,
products
MRCMPU
to
the
started
investing in PUF insulated vehicles
and PUF Boxes. At present the
are
to
excellent
keep
low
temperatures of the products like
flavored milk. Hence a few of them
are
suggested
as
part
of
the
market promotion.
entire processed milk transported
e. Ice Cream Promotion
is in PUF insulated vehicles. Seven
MRCMPU Ltd. is selling products
more PUF bodies are suggested at
like ghee, curd, Butter milk, Milk
206
Kannur District
Peda, Palada Mix, Flavored milk
and ice cream. The share of milk
f.
Advertising
and
Consumer
Awareness
products in the total turnover of
Kannur district is facing fierce
the Union is around 24 per cent
competition from private dealers,
and is very crucial for its financial
from within and outside the state.
security and liquidity. Among all
Sustaining and further developing
the products, ice cream is the
the market is crucial to the very
most promising one. Unfortunately
sustenance of milk production in
Milma now has only less than 5
the district as well as the state and
per cent market share in the ice
cream segment. The major hurdle
identified in the market expansion
in Kannur district is the absence
of user friendly and energy saving
freezers at the retail points. During
IDDP Phase I, SIQCMP the Milk
Union invested on
retailer level
freezers and as a result the sales
of ice cream have increased from
3684 liter/month in 2010-11 to
14,404/month in 2013-14. A three
pronged
market
intervention-
for food security and livelihood
support.
Unfortunately,
not
enough efforts are made in this
direction
and
causes
it
several
indirectly
socio-political
repercussions in the field of dairy
production.
strongly
recommended
aggressive
cum
Therefore
it
is
that
an
consumer
education
advertisement
program
through all channels of media be
launched in Kannur district to
serve
two
purposes
–
market
promotion and awareness creation
appointment of more wholesale
amongst all the sections of people
dealers, equipping all retail points
and as a tool for socio economic
with suitable size freezers and
improvement (Rs 437.55 lakh).
wide
publicity
channels-
is
through
TV
suggested.
In
6.6.7 ETP
addition, canopy fitted vehicles are
The ETP is meant for Kannur
recommended
Dairy.
for
special
sales
The
existing
ETP
is
promotion in tourist spots and
inefficient and scale inadequate to
prominent on-road locations.
handle
the
effluents
from
the
207
Kannur District
Dairy. As the Kannur is gearing up
being looked after by the P&I Unit
for production enhancement and
functioning in Kannur Dairy. The
scaling up of daily processing, the
Unit has established a network of
capacity enhancement of ETP is
village level DCSs in the district to
inevitable. From the statutory and
procure
hygiene
is
farmers. The organization of milk
suggested that a higher capacity
procurement is explained as fig.
ETP be established at Kannur.
6.3.
point
of
view,
it
milk
from
the
dairy
The Cluster DCS deliver the milk
6.7 Milk Procurement
to the nearest BMC. BMC DCSs
6.7.1 Organization of Milk
chill the milk before transporting
Procurement
to Kannur dairy in insulated road
Milk procurement is one of the key
tankers.
functions of MRCMPU. The milk
processes and markets the milk in
The
Dairy
in
turn
procurement in Kannur district is
Fig. 6.3 Organization of Milk Procurement in Kannur District
Milk
Producers
BMC DCSs
(23)
Cluster
DCSs
(126)
Non BMC DCSs
(7)
`
KNR DAIRY
Key words: BMC DCSs – Dairy Cooperative Societies having Bulk Milk
Coolers; Cluster DCSs: DCSs attached to BMCs for milk supply.
KNR: Kannur
Figures in brackets- Number of DCS
208
Kannur District
towns
and
other
urban
procedures.
The
average
agglomerations within and outside
procurement per DCS was 444
the district. The whole chain of
LPD and per supplier 5.62 LPD
activities- procurement, processing
during 2013-14. The local sale was
and
19,853 LPD which accounted for
marketing
-
is
well
orchestrated and well executed.
29
per
cent
procurement
6.7.2 Profile of DCS in Kannur
District
of
the
daily
indicating
an
increase in demand in the local
area. The rate of procurement per
A majority of the DCSs in Kannur
DCS is reasonable in comparison
district
to the other districts in Kerala.
are
Cooperative
Anand
Pattern
Societies
(APCOS).
However,
the
DCSs
classified
They are producer cooperatives
according to the daily procurement
managed
democratically
shows that 12 DCS (8%) were
elected Board of Directors. At the
collecting less than 100 LPD and
close of March 2014 the
yet
by
a
district
another
20
(13%)
DCSs
had 156 functional APCOS. In
between 100 and 200 LPD. The
addition, there were twelve non-
study showed that those DCSs
APCOS functioning directly under
were not economically viable. The
the
reasons for the poor procurement
department
of
Dairy
Development.
are that they are not in ideal
Table 6.8 shows the profile of the
DCSs in Kannur district. From
amongst
the
46,773
registered
milk producers in the district, on
an average, only 12,330 (26%)
poured milk in the DCS during
location, non-potential suppliers
are inducted as members and the
farmers have better option for
selling milk.
The relocation of
some of those DCSs needs to be
considered.
2013-14. The proportion pouring
Out of the 156 DCSs, only 7 DCSs
milk is low because the non-
supplied milk directly to the dairy
producers
are
not
removed
during
from
the
DCS
rolls
due
to
supplied milk to the BMC DCSs or
the
cumbersome
mandatory
Cluster DCSs. Seventy DCSs, 45
2013-14.
All
others
209
Kannur District
Table 6.8 Profile of DCSs in Kannur District 2013-14
Sl. No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
Description
Quantity
No. of functional APCOS (31-3-2014)
No. of farmer members/DCS
Av. number of suppliers
Milk procured from farmers in DCS (LPD)
Local sales (LPD)
Milk supplied to milk union (LPD)
Av. procurement/DCS (LPD)
Av. procurement/supplier (LPD)
Av. procurement price paid to DCS (Rs/Kg)
Av. price - Local sales (Rs/liter)
No. of DCs collected <100LPD
No. of DCS collected 101 - 200 LPD
No. of DCS collected 201 - 300 LPD
No. of DCS collected 301 - 500 LPD
No. of DCS collected >500 LPD
No. of DCS making one time milk collection
from farmers
Av. fat%
Av. SNF%
No. of BMC DCS (31-3-2014)
No. of BMCs
Installed capacity
Av. collection through BMC (LPD)
No. of DCS making supply at dairy dock
No. of DCS provided AMCU (including DDD)
No. of DCS provided analyzer only (including
DDD)
No. of DCS provided EMT
No. of DCS provided EMT only (no analyzer)
No. of DCS provided Gerbers test equipment
only
No. of Panchayat wards in the district
% coverage under milk procurement
156
300(46773)
79 (12330)
69303
19853
49450
444.25
5.62
28.69
% wards having potential for milk collection
No. of DCS in own building
No. of DCS having adequate water supply
arrangements
No. of DCS having standby generators
No. of DCS having electricity
No. of milk cans supplied during last five years
Milk spoiled (LPD)
Av. MBRT - milk supplied through BMC
Av. MBRT - milk supplied at dairy dock
Note: Figures in brackets total numbers
12
20
20
89
15
3.99
8.3
23
23
52000
41000
7
68
77
129
NA
13
1215
70
10
70
125
0
142
1054
150
50
210
Kannur District
per cent of the total DCSs only
shows. The assessment is that
functioned
only a 10 per cent of the left out
in
own
buildings.
Others are in rented buildings.
wards
Almost all of them have electricity
starting new DCSs.
and water supply arrangements.
The absence of own buildings and
the lack of adequate water in a
few, are identified to be some of
the
major
constraints
maintaining
good
in
Hygienic
standards of milk.
Unlike
in
other
The
have
the
geographical
excellent,
but
potential
for
coverage
is
number
of
the
farmers pouring milk per DCS is
not encouraging.
6.7.4 Milk Quality and Quality
Administration
districts
of
The
MRCMPU
follows
two-axis
Malabar, only 43 per cent of the
pricing system ie, farmers are paid
DCSs possess AMCUs. A large
on the basis the milk fat and the
number off DCSs employ EMTs
SNF
and LRs for quality determination.
cooperatives
in
the
are
determine
6.7.3 Coverage
The
Kannur
the
district
has
1215
village
equipped
to
compositional
are also equipped to detect added
preservatives,
70
milk
neutralizers,
procurement, the recent survey
estimations.
cent
The
quality, fat and SNF. A few DCSs
Panchayat wards of which almost
per
milk.
are
under
adulterants
apart
from
and
MBRT
Table 6.9 Kannur District Av. Milk Quality 2013-14
Parameter
Fat % APCOS
Fat % non-APCOS
Value
3.99
NA
SNF % APCOS
SNF % non-APCOS
8.3
NA
Av. MBR time BMC DCSs (Mts)
Av. MBR time direct DCSs (Mts)
No. of APCOS using/supplied AMCUs
150
133
No. of APCOS using/supplied Milk O
testers & LRs
No. of APCOS using/supplied Gerber’s
test & LRs
68
129
13
211
Kannur District
Because
of
the
pricing
system,
quality
based
the
quality
MBRT
of
through
the
the
milk
BMC
supplied
DCSs,
150
assessment in DCSs is crucial in
minutes, is good while the MBRT
determining the milk price for the
in non-BMC DCSs, 50 minutes, is
farmer, in winning their confidence
very poor.
and the overall sustenance of dairy
both the compositional and the
production. All the cooperatives in
bacterial quality will have a telling
Kannur follow either of the three
influence on the marketability of
known
milk
procedures
of
quality
and
In the years to come,
therefore
the
Union
assessment namely conventional
needs to pay more attention to
milk testing (Gerber’s test for fat
improve the bacterial quality. The
and LR for SNF determination),
best way to usher in clean milk
Milk-O-Tester
and
production is to pay for better
Lactometer for SNF and Automatic
bacterial quality. It is suggested
Milk Collection Units (AMCU). Of
that an incentive for good quality
these, the AMCUs are the most
milk may be introduced as a
desirable
beginning towards this end.
for
because
fat
they
are
convenient, error proof, quick and
transparent. The table 6.9 shows
6.7.5 Key Issues and
that out of the 156 APCOSs, 68
Suggestions
possess AMCUs. Only less than
Under the IDDP and SIQCMP a
half
total of Rs 327.21 lakh has been
of
AMCUs
the
DCSs
regularly
possessing
use
them
invested in Kannur district for the
reportedly due to some snags in
procurement
the analyzers.
from supply of BMCs to milking
On the quality front, the procured
milk has 3.99 per cent fat, and
8.30 per cent SNF which are lower
than those in the other districts of
Malabar. Farmer education and
introduction of AMCUs can further
improve the quality. The average
activities
ranging
vessels and capacity building of
farmers and elected members. The
IDDP support is available for two
more years (2014-15 and 201516).
Therefore
requested
meant
to
under
the
the
stabilize
support
NPDD
and
is
carry
212
Kannur District
forward the achievements already
include a provision for subsidizing
made. The suggested components
new DCS buildings at the rate of
and the estimated costs are shown
Rs. one lakh per DCS, Rs 18.0
in table 6.10.
lakh. Eighteen DCSs are identified
to have the land and financial
6.7.6 DCS Buildings
capacity
As pointed out in the forgoing
support mentioned above during
sections, a sizeable number of
the project period (table 6.10).
to
do
this
with
the
DCSs function in rented buildings.
Most of them do not have even the
6.7.7 Water Supply System
minimum facilities for hassle free
Developing
milk collection and dispatch. BMC
water
installation is virtually impossible
increasingly important in Kannur
and effluent treatment is a serious
district. Most of the DCSs find it
issue. Therefore, it is suggested to
difficult
water
supply
to
sources
are
and
becoming
mobilize
adequate
Table 6.10 Suggested Milk Procurement Activities in Kannur District
Sl.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Milk Procurement
Building construction
Water supply system
Bore well
Open well
Working capital assistance
Aluminium cans
Automatic milk collection
units
Electronic milk tester
Electric centrifuge
Weighing scale
Hand held billing device
Management grant to DCS
Subsidy to milk transport
Subsidy to cattle feed
transport
Incentive to better quality
milk
Total
No. of
Units
Unit
Cost (Rs)
18
9
9
15
3
300
100000
60000
25000
10000
30000
2500
Total Cost
(Rs in
Lakh)
18.00
5.40
2.25
1.50
0.90
7.5
3
4
8
3
8
8
370000
125000
15000
2500
15000
10000
30000
0.5
3.75
0.6
0.2
0.45
0.8
2.4
1.85
45000
400
180
1533000
0.5
7.6
233.20
213
Kannur District
capital for investment. Hence a
arrangement
subsidy of rupees sixty thousand
convenience, easy access and the
per unit is suggested for nine
credit facility. The transport of
DCSs at an estimated cost of 5.4
cattle feed from the feed plants to
lakh. Water harvesting, installing
the
water tanks and pumping facilities
suggested
to
are envisaged under the support.
transport
cost.
In addition, digging nine bore wells
quantity of cattle feed sold in
at the rate of rupees twenty five
Kannur
thousand per unit and fifteen open
lakhs
wells at the rate of rupees ten
amount of Rs 0.4/kg is the average
thousand
per
unit
transport
suggested
for
Kannur
are
also
district
(table 6.10).
DCSs
because
entails
of
cost.
the
It
subsidize
The
is
the
estimated
district comes to one
MT
in
three
cost.
This
years.
may
An
be
provided as a subsidy for cattle
feed so that the landed price of
cattle
6.7.8 Automatic Milk Collection
feed
remains
low
(table
6.10).
Units
About 68 DCSs use AMCUs for
milk
collection
and
6.7.10 Incentives for Good
quality
Quality Milk
checking. It is important to have
The
stand-by units for replacement in
considerable
case of breakdown. It is suggested
the dairy farmers to produce good
to
as
quality milk. As a result, the
The
bacterial content in raw milk has
include
three
service/replacement
units
units.
SIQCMP
estimated cost is Rs 3.75 lakh
reduced
(table 6.10).
bacterial
has
instilled
enthusiasm
significantly.
count
among
The
low
improves
the
quality especially the organoleptic
6.7.9 Subsidy for Cattle Feed
properties (taste and flavor) of the
Transport
milk, apart from heat stability and
Cattle feed is being sold through
longer shelf life. The farmers are
the
not compensated for their extra
DCSs.
wholeheartedly
The
farmers
welcome
the
efforts to produce clean milk. As a
214
Kannur District
beginning, it is proposed that the
the sheds are a mere make shift
top 2 per cent of the milk shall be
shelter
paid an incentive of 50 ps per liter
tile/asbestos/PVC/Silpaulin
of milk. The daily procurement is
dark and musky, all in one floor
near
(no
to
70,000
LPD
and
the
with
urine
mud/wood
or
floor,
roof,
dung
channel)
any
watering
incentives at the suggested rate
and
works out to Rs 7.6 lakh.
arrangements. The cows remain in
without
this shelter most of the time (no
6.8 Cattle
Shed
and
Farm
grazing). The hind quarters and
the udder often remain soiled by
Machineries
Well constructed cattle sheds are a
dung and mud. Udder and teat
pre-requisite
milk
injury is common. Feeding of water
production. A dirty cattle shed
is only occasional. Therefore, any
contributes substantially towards
support for good cattle shed is a
external contamination of milk and
welcome
entry of microbes in to the udder
poorest of the poor dairy farmers
causing
in Kannur district.
for
clean
sub-clinical/clinical
mastitis. A well constructed cattle
shed
should
also
provide
operational easiness and animal
comfort. The shed should have
adequate space for the animal,
manger, feeding alley, urine and
dung channels. The shed must be
well ventilated, easy to clean and
should have transparent roofing
sheets interspersed with opaque
ones
facility
to
permit
for
sunlight,
continuous
and
water
feeding. Not many cattle sheds
conforming to the above standards
exist in Kannur district. Most of
gesture
Considering
those
towards
aspects,
the
the
Milk Union roped in funds for
cattle
shed
modification
and
construction of new cattle sheds
under
the
IDDP
and
SIQCMP
schemes (Table 6.11). During the
course of the field work, we found
that the floor of these cattle sheds
is well made using the allotted
funds. However, construction of
new cattle sheds is very expensive
in Kerala due to the high labor
cost and the cost of materials. The
budget provision of Rs 10,000/- is
thoroughly inadequate and will not
215
Kannur District
meet even 10 per cent of the
dairy
overall cost of a new cattle shed.
economic and social significance of
Therefore,
more
dairying,
sensible if the support could be
initiated
extended
and
support for farm mechanization.
modification of the cattle sheds
The Union has been providing and
with watering facility rather than
channeling support since a few
insisting on a new cattle shed.
years.
it
would
for
be
renovation
the
Considering
MRCMPU
providing
Table
6.11
the
has
financial
shows
the
physical achievements in Kannur
Table 6.11 Farm Equipments
district in the immediate past.
Supplied to Farmers in Kannur
District
Sl.
No.
farming.
It is suggested that the assistance
Item
Quantity
198
may be continued and funded
under NPBBDD. The components
1
Cattle sheds
2
Milking machines
3
Rubber mats
833
estimated cost can be found in
4
Pressure washers
28
table 6.12.
5
Gen sets
6
Cow drinker
7
Chaff cutter - Motorised
26
suggested, the quantity and the
5
10
6.9 Cattle Induction
2
The absence of easily accessible
On the face of the shrinking family
loan at reasonable interest from
size, the changing status of women
banks remains a major obstacle
in society and better opportunities
for the new entrepreneurs. Cattle
for employment in other sectors of
induction has been resorted to by
the economy, the availability of
several development agencies in
labor for dairy farming, is fast
the state as a support scheme. The
declining. Hired labor for dairy
MRCMPU
farm
in
heifers to 90 farmers in Kannur
Kannur district. Hence reducing
district to promote cattle rearing in
the labor input and making the
the district.
daily
activity
chores
is
less
uncommon
arduous
are
crucial for the very sustenance of
too
distributed
450
Cattle keeping in the district is
largely a job of the economically
216
Kannur District
Table 6.12 Cattle Sheds and Farm Machineries Proposed under NPDD for
Kannur District
No. of
Units
Unit Cost
(Rs)
Total
Cost (Rs
in Lakh)
150
15000
22.5
100
5000
5.00
30
75000
22.5
Pressure washers
150
7500
11.25
Rubber mats
750
2500
18.75
A
Cattle Shed
1
Strengthening of old
sheds/constructing new
2
B
Auto watering system
Cattle Farm
Mechanization
3
Gen set
4
5
Total (4.0)
80.00
weaker sections of people (BPL
ƒ
Fifty percent of the cows and
families) and women. It continues
fifty percent of the heifers
to be a major source of securing
proposed are reserved for
their livelihood especially women.
women.
Therefore, the following number of
ƒ
Women
members
will
be
cattle (table 6.13) is recommended
allowed 75 per cent of price
to be inducted with the support
subsidy and the others 50
under NPDD.
ƒ
per cent.
Only the BPL families will be
ƒ
The
transportation
cost
included for cattle induction
shall be met in full under
activity.
the scheme.
Table 6.13 Cattle Induction Program Suggested under NPDD for
Kannur District
Sl.
No.
Cattle Induction
No. of
Units
Unit
Cost
(Rs)
Total
Cost (Rs
in Lakh)
1
Capital expenditure
2
Purchase of animals
120
40000
48.00
3
Purchase of heifers
120
30000
36.00
4
Transportation cost
240
2000
4.80
5
Cattle/Heifer insurance
150
2500
3.75
Total
0
92.55
217
Kannur District
ƒ
Seventy five percent of the
automatic
Insurance premium shall be
system,
included under the scheme
monitoring of FSMS and a high
and
capacity
the
balance
will
be
Laboratories
An amount of Rs 28.30 lakh had
been invested under phase I & II
of IDDP and SIQCMP schemes
and Rs 12.12 by the Milk Union
in upgrading the Kannur dairy
facilities
for
lab
has
including
routine
reasonable
equipments
for
pressure
easy
jet
are
ISO:22000
certified
DNV.
recertification
The
dairy
by
and
surveillance audits and certain
equipments and software for the
maintenance of these systems
are to be acquired. The amount
suggested is towards this end.
Although
the
DCS
labs
are
Therefore,
equipped to carry out the MBRT,
laboratory equipments are not
a system to carry out the test by
proposed in the project. But as a
the DCS staff and to link it on
part
line with the central lab are yet
of
tests.
software
The Kannur dairy is already an
6.10 Establishment of
The
capturing
proposed in the Project.
beneficiary contribution.
lab.
data
modernization
of
the
hygienic systems in the dairy,
Table 6.14 Establishment of Laboratories under NPDD in Kannur District
Sl.
No.
Component
No. of
Units
Unit Cost
(Rs.)
Total
Cost (Rs
in Lakh)
1
2
Central milk testing lab
Purchase of laboratory furniture
(set)
0
0
20.00
1
500000
5.00
3
High capacity pressure jet
1
100000
1.00
4
FSMS monitoring software
1
100000
1.00
5
6
Automatic data capturing system
Accreditation and certification of
dairy establishments under
HACCP/ISO
1
2200000
22.00
1
500000
5.00
Sub-total (6.2)
1
0
7
Total
5.00
54.00
218
Kannur District
to be implemented in full. Any
used by the farmers and they
further upgradation of the DCS
whole
labs needs to be considered only
component.
after fulfilling this requirement.
improve the initial quality of milk.
heartedly
It
welcome
has
the
helped
to
As per the norms, many more
6.11 Clean
Milk
Production
in Kannur district. Therefore the
Kits for Beneficiaries
Under
the
MRCMPU
CMP
scheme
supplied
the
farmers are to receive the vessels
the
articles
shown in table 6.15 to the farmers
in Kannur district.
utensils
and
vessels
may
be
supplied to those farmers who are
yet to receive them through the
DCS free of cost under the NPDD.
The numbers suggested and the
The distribution of CMP kits to
financial requirements are given in
farmers
table 6.16.
made
little
impact
on
clean milk production because the
farmers discontinued the use of
chemicals and disinfectants once
the
free
Hence
supply
the
was
supply
stopped.
of
free
detergents/chemicals for udder/
utensil
cleaning
is
not
recommended.
Milking machines are very useful
for the farmers. Our field exposure
visits show that almost all the
beneficiary
machines
farmers
although
use
the
continuous
service back up is essential. It is
suggested
that
fifteen
milking
machines may be supplied to the
On the other hand, the stainless
steel utensils (the milking utensils
and carrying vessels) are being
farmers at subsidized (75%) rate
under NPDD. It is also suggested
Table 6.15 CMP Kits Supplied under SIQCMP Scheme in Kannur District
Sl.
No.
1
2
CMP Kits
Detergents & chemicals to DCSs
Stainless steel utensils to beneficiaries
lot
Financial
(Rs in Lakh)
12.12
525
25.48
Physical
219
Kannur District
Table 6.16 CMP Kits and Milking Machines suggested under NPDD for
Kannur District
Sl.
No.
Component
No. of
Units
Unit
Cost (Rs)
Total
Cost (Rs
in lakh)
1
Stainless steel utensil kit/accessories
1500
400
6.0
2
Electricity operated milking machine
& other equipments for hygienic milk
handling at village/farmer level
15
55000
8.25
Manual milking machines
50
6000
3.00
0
17.25
3
Total (7.0)
that
a
few
hand
operated
The TIS was a major component
machines shall also be supplied to
under
the needy farmers after making a
schemes
scientific and methodical field trial
district. The major components
in association with KVASU.
and the financial and physical
the
IDDP
and
SIQCMP
implemented
in
the
achievements in Kannur district
6.12 Technical Input Services
can be found in table 6.17.
Those services are under the state
(TIS)
input
services
domain and the line departments
for
animal
have a variety of schemes for
breeding, health care including
supporting those activities. The
prophylaxis, fodder
development
efficacy of AI and health care
and other associated activities for
services at farm points, however,
the participating farmer members.
are
The
technical
include
support
debatable,
the
HH
survey
Table 6.17 Technical Input Services: Components and Achievements in
Kannur District
Component
Technical input
services
Physical
Achievements
Financial
IDDP/
SIQCMP
(Rs in Lakh)
200
26.40
Union/
Total (Rs
Beneficiary
in Lakh)
(Rs in Lakh)
11.31
37.71
220
Kannur District
shows.
Since
some
of
those
fodder
production
is
a
failed
services are in the state domains,
attempt in Kerala. The reasons are
a change in the service delivery
many, the most important being
systems requires policy decisions.
the land fragmentation and the
To avoid duplication, such services
declining farming activities. On the
(AI, health care, home stead fodder
other hand, large land holdings
production, etc.) are not suggested
and
to be included under the NPDD.
sources for fodder production –
The components suggested, the
fodder as a value added crop in
most essential ones, on a priority
irrigated
basis can be found in table 6.18.
produced
The
LN
containers
are
be
so
marketed
Communication
Technology Networking
the farmers. It is a DCS based
The MRCMPU, apart from being a
program centrally controlled and
farmers’ organization, is also a
monitored from HO of MRCMPU.
conventional
fodder
6.13 Information and
fertility
management of dairy cows among
The
shall
The
potential
flagship program of NPDD.
The animal health and breeding
include
land.
are
price. The scheme shall be a
AI Centers under the Milk Union.
camps
lands
among the DCSs members at cost
for
replacement of the ones in use in
input
fallow
multi- crore business concern. Its
homestead
business units are far flung and
Table 6.18 Technical Input Services Proposed in Kannur District under
NPDD
Sl.
No.
1
2
3
4
5
Component
Liquid nitrogen
containers
Audio visual kits etc
Animal health &
breeding input camps
Chaff cutter
Commercial fodder
production
Total
No. of
Units
Unit
Cost (Rs)
Total Cost
(Rs In lakh)
6
1
30000
200000
1.80
2.00
180
36
5000
20000
9.00
7.20
10
100000
10.00
30.00
221
Kannur District
widely distributed. The application
system
functions as a client
and full utilization of information
server
architecture
and
with Six centers, one in
communication
technology
network
each
alone will enable the MRCMPU to
district
keep abreast with its competitors.
Kozhikode,
It is also essential that the whole
Kasaragod) and a central server
business
system
of
MRCMPU
is
(Palakkad,
Malappuram,
Wayanad,
linking
all
Kannur,
these
six
transparent to their stakeholders,
centers. The data and information
the
the
will be made available to all the
Milk Union is in the nursery stage
districts and DCSs. The details of
of exploiting the I&C technology.
the proposed system are given as
The current status is that the
annex-1. The expenditure is to be
dairies
and
shared among the district projects.
(intranet).
The share of Kannur district is
farmers.
are
internally
The
milk
Unfortunately
computerized
networked
Union
expand the I&CT
proposes
so
that
to
illustrated in table 6.19.
the
Table 6.19 Information and Communication Technology NetworkingKannur District
Sl.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Expense Head
Purchase of computer/HHB
Desktop
Laptop & Netbook
Hand held range of computers
A4 size flat bed scanner
Rack server
42 U server rack
Server storage device
Tape backup
UPS for server
Weblogic server suite purchase
Oracle database 12C
Antivirus software
Hardware & networking
Software consultation charges (AMC)
Onsite software analysis and evaluation
for union and DCS purchase
Total
Unit
Rate (Rs
in Lakh)
Units
0.50
0.60
0.30
0.05
9.00
1.00
8.00
8.00
7.00
15.00
15.00
1.00
10.00
5.00
13
10
38
2
2
5.00
1
1
1
2
1
1
1
1
1
Amount
(Rs in
Lakh)
6.50
6.00
11.40
0.10
18.00
0.00
8.00
8.00
14.00
15.00
15.00
1.00
10.00
5.00
5.00
123.00
222
Kannur District
6.14 Manpower Development
The
training
and
development
program is adopted as a tool for
organizational development and to
make
strides
standards
energy
product
cost
conservation
improvement
MRCMPU.
Apart
employees,
the
elected
productivity
including
reduction,
and
in
from
staff
by
Union
and
the
of
the
representatives
Kannur district. The DCS staff has
been trained at the HRD centre,
Kozhikode under MRCMPU on the
relevant
subjects.
The
trainers
included those from within the
organization and also those invited
from
other
organizations.
The
duration ranged from one to three
days and the subjects handled
were
those
relevant
to
the
concerned groups.
DCSs and the Board are also
The CD program includes training
trained on appropriate areas.
in village cooperatives followed by
The table 6.20 shows the numbers
trained in various categories from
a
visit
to
the
processing
Dairy/cattle feed plant. Farmers
Table 6.20 Employees and Elected Members Trained in Kannur
District
Sl.
No.
1
Course
Number of
Persons
Trained
Cooperative development program
a
No. of programmes
15
b
No. farmers trained
2288
c
FIP- local farmers attended
1763
d
Management orientation
84
2
Training of BMC/DCS/MCC staff
3
Training of DCS secretary
130
28
4
Training of DCS employees
98
5
Training on AI
29
6
Training of farmers on GMP/GHP
7
Training of farmers on AH practices
8
FIP
4021
79
764
10
Training in marketing
18
11
Training of management committee members
57
223
Kannur District
are the trainees. The Farmers
starting
Induction
normally
should be hands-on training
carried out in the HRD Centre,
exclusively on subjects and
Kozhikode.
skills relevant to them.
Program
The
Management
is
Dairy
Training
Animal
to
the
farmers has been under taken in
APCOS
DCSs.
The
training
included lectures by experts and
visit to a few well run farms. The
farmers were given opportunities
to see for themselves the success
and failure stories.
The
training
from
20. The farmers’ training should
be
organized
MRCMPU
in
villages
themselves with the support
of
LSG
and
Extension
the
Village
Workers
under
MRCMPU.
21. All out and comprehensive
training
for
Supervisors,
on
Eradication,
Mastitis
Clean
Milk
employees is arranged by the Head
Production
Office in the institutions of repute
Village
in India, both inside and outside
and DCS employees should
the state. An interaction with a
be initiated on a project mode
test
and
group
showed
that
the
trainings were partially useful in
upgrading
their
skill
and
knowledge.
been spent on various training
programs from IDDP and CMP
Phase I and II in Kannur district.
the
Workers
results
closely
watched and monitored.
22. The
Dairy
Marketing
Managers,
Officers
staff
and
should
be
exposed to higher levels of
knowledge on production and
marketing
management.
They
be
should
provided
opportunity to visit centers of
6.14.1 Key Issues and
excellence outside the state.
Suggestions
future
farmers,
Extension
Production
An amount of Rs 23.47 lakh has
19. The
for
training
23. The
thrust
programmes especially those
building
for the middle level employees
employees
of
of
capacity
higher
should
be
level
on
224
Kannur District
Modern Management Systems
required to maintain smooth
rather
processing/production operation.
than
subjects.
on
They
technical
should
be
The working Capital requirement
exposed to new developments
of the Union is fluctuating
in the dairy sector elsewhere
throughout the year depending on
in the country (eg. Schreiber
local milk procurement. During
Dynamix)
lean season the Milk Union is
to
widen
their
vision and outlook.
24. The FIP must be gradually
phased out.
The courses suggested and the
estimated costs are given in table
6.21.
6.15
procuring large quantity of milk
from other states for which
payments are made in advance. In
addition, SMP is to be stocked to
meet any contingencies.
During flush season funds are
needed to stock ghee, converted
Working Capital –
Kannur District
SMP, cream, etc. which are
produced in excess of normal
market requirements. Union is
Kannur Dairy shall maintain
supplying cattle feed and other
minimum quantity of finished
inputs to the societies on credit
products at all times to ensure
basis. Present supply of cattle feed
uninterrupted sales. Minimum
to societies is more than 1000 MT
quantity of all raw materials,
per month. It is expected to
consumables packing materials,
increase significantly in the
stores and spares, etc. are
coming years.
Table 6.21 NPDD HR Kannur District 2014-15 to 2016-17
Sl.
No.
1
2
3
4
5
Name of Course
CD programme
Training on mastitis
Training DCS employees &
elected members
MRCMPU employees
Institutional skill development
Total
No. of
Units
Unit
Cost (Rs)
Person
6
600
80000
300
Person
Lot
125
Units
3000
Total
Cost (Rs
in Lakh)
4.80
1.80
20.00
11.00
20.00
57.6
225
Kannur District
Table 6.22 Milk Collected from Kannur District, Milk Value for 21 Days
2013-14
(Actual)
201415
201516
201617
Average
Milk
Price
(Rs.)
0.51
0.54
0.6
0.65
28.88
Milk Procurement (LLPD)
Days
Total Milk
Value
(Base Year)
(Lakh)
Total Milk
Value
(EOP)
(Lakh)
21
309.30
394.21
Union is at present resorting to
The Union shall meet this expense
short-term loan from banks to
from internal sources if working
meet its working capital
capital
requirements. As the volume of
purchase etc can be funded under
business is increasing, the
NPDD as a one-time assistance. A
dependence on bank loan will be
total amount of Rs 117.30 lakh
more in the coming years.
(table 6.23) is suggested towards
Value of 21 days milk collected
from the societies by the Malabar
Union is more than Rs 309 lakh in
the
year
2013-14
which
is
expected to increase to Rs 394 in
the next three years (table 6.22).
for
SMP,
cattle
feed
the Working Capital (Purchase of
milk
powder,
packing
cattle
material)
feed
for
and
Kannur
District. The amount suggested is
lower than the amount required to
pay the milk value for 21 days
(table 6.22).
Table 6.23 Working Capital Requirement for Kannur District
Components
Purchase of milk
powder
Purchase of
packing material
Purchase of
cattle feed
Total
Unit
No. of
Units
Unit
Cost
201415 (Rs
Lakh)
201516 (Rs
Lakh)
201617 (Rs
Lakh)
Total
Cost (Rs
Lakh)
KG
28000
300
24.00
24.00
36.00
84
KG
3000
210
2.10
2.10
2.10
6.3
MT
150
18000
9.00
9.00
9.00
27
35.1
35.1
47.1
117.3
226
7. KASARAGOD DISTRICT
Contents
Executive Summary ........................................................................229
7.1 General Features .......................................................................232
7.2 Trend in Cattle Population .........................................................233
7.3 Trend in Milk Production from Bovines ......................................233
7.4 Milk Chilling Facilities in Kasaragod District ..............................235
7.5 Milk Processing .........................................................................236
7.6 Milk Marketing ..........................................................................242
7.7 Milk Procurement ......................................................................251
7.8 Cattle Shed and Farm Machineries ............................................258
7.9 Cattle Induction ........................................................................260
7.10 Establishment of Laboratories .................................................261
7.11 Clean Milk Production .............................................................262
7.12 Technical Input Services (TIS) ..................................................264
7.13 Information and Communication Technology Networking ........265
7.14 Manpower Development...........................................................267
7.15 Working Capital – Kasaragod District .......................................269
Kannur District
Kasaragod District
228
Kannur District
229
Kannur District
Executive Summary
Kasaragod, while not a front line
processing capacity of the dairy at
district in dairying in Kerala, has a
Kanhangad. The installed capacity
vast majority of its population
is only 30,000 LPD, but during
dependent on livestock rearing.
2013-14
However, the period since 2000
35,530 LPD. At the current growth
has witnessed a serious setback
rate of 7 per cent per annum the
with the cattle numbers declining
processing capacity will have to be
55 per cent (from 2001 to 2012)
increased to 45,000 LPD in the
and milk production falling by 27
next
per cent from 1997-98 to 2011-12.
enhancement
Market
modifications will cost Rs 282.0
survey
shows
that
demand- supply gap is widening in
the district and is currently of the
order of 1.8 LLPD. The share of
MRCMPU is under 19 per cent
which is not satisfactory. The Milk
Union is facing fierce competition,
including
those
from
the
neighbouring Karnataka. Hence,
an aggressive marketing strategy
with
proper
development,
infrastructure
periodic
market
survey on consumer preferences,
product
development
and
marketing
is
The
estimated
called
cost
of
for.
market
promotion works out to Rs 382
lakh.
the
dairy
three
of
processed
years.
The
capacity
and
lakh.
The MRCMPU has built up an
extensive network of DCS and
BMCs for milk procurement and
testing. While all BMC level DCS
have facility for MBRT estimation,
the field level milk testing requires
further
refinement.
The
major
constraints identified are lack of
convenient
buildings
for
DCS,
inadequacy of good quality water,
lack of incentives for clean milk
production and support for cattle
feed transport. The procurement
support programmes suggested in
Kasaragod would cost Rs 449 lakh.
It is recommended that a central
One of the limitations of MRCMPU
milk testing lab be established at
in Kasaragod is the low milk
the Kozhikode dairy by pooling the
230
Kasaragod District
funds
from
all
eliminating
the
districts
duplication
commercial fodder production at a
of
cost of Rs 40.15 lakh. Along with
investments. The estimated cost is
these programmes the extant HRD
Rs 32.00 lakh.
through
On the production front, one of the
major problems in Kasaragod is
the low motivation among the poor
and
SC/ST
groups
in
cattle
training
development
and
may
also
skill
be
continued but at a lower scale, the
cost of which is expected to be Rs
27.4 lakh.
keeping. In order to attract a larger
MRCMPU
number from among these groups,
effective information sharing and
a
communication
cattle
induction
programme
needs
to
build
system
an
by
estimated to cost Rs 92.55 lakh is
networking
suggested.
cattle
DCS. The suggested system- a
cattle
client server architecture network
farm
with a center at each district
problem.
(Palakkad, Malappuram, Kozhikode,
sheds,
Wayanad, Kannur, and Kasaragod)
and
and a central server system linking
and
all the six centers - will make data
equipment costing Rs 70.0 lakh is
and information available to all the
suggested.
districts and DCS. The estimated
keepers,
sheds
Among
lack
and
machineries
of
the
proper
absence
too
is
of
a
Modernizing
old
supporting
new
supplying
machineries
The
programmes
distribution
cattle
sheds
other
suggested
of
stainless
farmer
are
steel
utensils, milking machines, animal
breeding and health cover and
various
units
and
cost is Rs 115.80 lakh.
Abstract of suggested programmes
is as follows.
231
Kasaragod District
Component
Amount
(Rs in Lakh)
Milk processing and packaging
282.00
Milk marketing
462.50
Milk procurement
178.85
Cattle sheds and farm mechanization
80.00
Cattle induction
92.55
Establishment of labs
32.00
CMP kits
17.65
Technical input service
28.20
Information and communication networking
HRD
Working capital
Total
115.80
57.45
189.60
1536.60
232
Kasaragod District
7.1 General Features
holdings are marginal (less than 2
The district of Kasaragod located in
ha) and their share in the total
the northern tip of Kerala was
cultivated area is 70 per cent. In
carved out of Kannur in 1984 and
hilly areas the important crops are
occupies an area of 1992 sq.km. It
rubber, cashew and ginger. In the
is bordered in the north and east
skeletal
by
Kannur
trees are cultivated, while in some
district in the South, and Arabian
patches, areca nut, pepper and
sea in the West. Based on physical
cocoa are grown. In the coastal
features, the district can be divided
tract, paddy, coconut, areca nut,
into three natural divisions - the
cashew, tobacco, vegetables and
lowland bordering the sea, the
tapioca are cultivated.
Karnataka
midland
State,
consisting
of
the
undulating country and the forestclad highland on the extreme east.
For the purpose of administration
the district is sub divided into two
Taluks, Hosdurg and Kasaragod
and
seventy
five
villages.
The
district has one District Panchayat,
six Block Panchayats, seventy five
Gram Panchayats with a total of
600 wards and two Municipalities
with seventy five wards. The district
houses 13.07 lakh people and has
a
density
of
population
of
656/sq.km. (2011 census).
Agriculture forms the mainstay of
the population of the district. The
average land holding size is 0.469
ha. Nearly 95 per cent of the land
plateau
areas,
cashew
Livestock rearing is a subsistence
activity
and
cattle
are
the
predominant species with farmers
adopting crossbreeding of cattle as
a means of genetic improvement
for
higher
Kasaragod
milk
has
yield.
the
But
highest
proportion of native cattle among
all
the
districts
in
the
State.
Recently there has been growing
interest
to
promote
the
native
cattle of Kasaragod as a breed –
‘Kasaragod Dwarf.’
The
Department
of
Animal
Husbandry is the major service
provider for cattle breeding and
heath care. The Department has
one DVC, two RAIC, six Veterinary
Hospitals, thirty three Veterinary
233
Kasaragod District
dispensaries and 245 AI centers in
and cows in milk by 58 per cent.
the district. The DDD also has its
The in-milk buffalo had mixed
presence in the district with a
fortunes. Between 1996 and 2007
district officer at Kasaragod, four
the numbers sharply declined from
Dairy Extension Service Centers,
3943 to 800 and marginally gained
and one Quality Control Unit. The
between 2007 and 2012. Although
MRCMPU
has
a
dairy
at
the accuracy of data on cattle
Kanhangad
with
a
capacity
of
numbers
is
questionable,
it
is
30,000 LPD with procurement and
certain that many dairy farmers
marketing division under it.
opted out of dairying in the recent
past due to several factors, both
7.2 Trend in Cattle Population
The
cattle
population
in
economic and otherwise.
the
district declined between 1996 and
7.3 Trend in Milk Production
2012 (Fig. 7.1), with both the total
According to ISS estimates (Fig.
and
showing
7.2) - the annual milk production
cattle
increased from 70.62 thousand MT
population declined by 55 per cent
to 81.66 MT between 1997-98 and
declines;
in
the
milk
total
Fig 7.1 Cattle population Kasaragod District
(source ISS, DAH. GOK)
250000
200000
N u m b ers
cows
150000
100000
50000
0
1996
2003
2007
2012
Total Cattle
192866
143637
82604
87824
Cows in milk
45261
38541
25525
19200
Buffalo in milk
3943
463
800
1400
234
Kasaragod District
Fig 7.2 Milk Production Kasaragod district
(source ISS DAH GOK)
100
90
80
M ilk '000M T
70
60
50
40
30
20
10
0
2001-02,
97-98
2001-02
2004-05
2008-09
2011-12
70.62
81.66
66.14
88.17
51.94
to
66.14
declined
that the observed increase in milk
thousand MT by 2004-05 and
procurement
made
and
factors – phasing out of traditional
increase to 88.17 thousand MT by
milk disposal channels, increase in
2008-09. But the latest estimate of
number of APCOS over the years
the
and
spectacular
DAH
recovery
shows
that
milk
is
due
consequent
to
other
increase
in
production again fell to an all time
procurement volume of MRCMPU
low of 52 thousand MT in 2011-
(before he formation of APCOS the
12. However the milk procurement
milk
figures of MRCMPU, for Kasaragod
market through vendors, direct
district
producer
(see
the
graph
below)
was
being
to
sold
in
local
consumers
and
shows that the milk procurement
traditional societies selling milk in
from the Kasaragod district is in
towns for which there was no
sharp
account or data). In any case the
increase
from
1994-95.
Although this could be construed
accuracy
as direct indication of increased
questionable.
of
the
ISS
data
is
milk production, it is also possible
235
Kasaragod District
7.4 Milk Chilling Facilities in
provide the milk chilling facility in
Kasaragod district. The position of
Kasaragod District
The BMCs installed in DCS apart
milk chilling in the district during
from
March 2014 is as follows.
the
dairy
at
Kanhangad
Table 7.1 Status of Milk Chilling Facility Kasaragod District, 2013-14
Sl.
No.
1
Description
Quantity
No. of BMCs commissioned up to March 2014
12
2
No. of DCS in which BMCs are positioned 2014
12
3
No. of Cluster DCS attached to BMCs2014
4
6
Total installed capacity of BMCs – liters per day
(LPD)
Average milk collected through BMC 2013-14
in LPD
% capacity utilization
7
Av. MBRT of BMC collected milk - Minutes
8
Av. SPC of BMC collected milk – CFU/ml
90000
9
Av. Coliforms of BMC collected milk – CFU/ml
40000
5
10
No. of Milk Chilling Plants
118
43000
27800
65
127
Nil
236
Kasaragod District
Other units/district
7455 LPD
chilling capacity to accommodate a
Outside state
4132 LPD
possible growth in milk production
Reconstitution +
excess adjusted
2131 LPD
As
the
district
has
adequate
and procurement in the next three
years additional chilling facility is
Therefore
not recommended.
averaged 49,256 LPD, 64 per cent
above
frontline
is
dairy
not
the
daily
installed
handling
capacity.
During festival and Flush period
7.5 Milk Processing
Kasaragod
the
among
districts
in
the
the
State. The district has one dairy of
30,000 LPD capacity, located in
Kanhangad, for processing and
the daily handling further went up.
In addition to the liquid milk the
unit make curd at an average 3695
kg/day (2013-14) and buttermilk,
154,474 pkts./month.
packing milk and milk products.
Dairy development activities of the
The dairy under the MRCMPU is
government, state and central, and
the youngest Dairy commissioned
Milk Union is expected to raise
in 2002.
milk production and procurement
in
7.5.1 Processing Capacity and
Capacity Utilization
The average procurement of milk
the
procurement
District.
Therefore,
and
processing
capacity of the Dairy calls for
expansion.
during 2013-14 was 35,530 LPD of
which 27,800 liter (78 per cent)
7.5.2 Milk Processing
was procured from the BMCs as
Infrastructure –
Kasaragod Dairy
chilled milk. The remaining 22 per
cent of raw milk received was
chilled in the Dairy and stored. In
addition to the procurement from
home district the dairy received
the following quantity of milk from
other sources.
The
processing
Kasaragod
Dairy
facility
has
in
been
upgraded with the support from
GOI and using own funds. The
details
of
governmental
funds
utilized can be seen from table 7.2.
236
Kasaragod District
Table 7.2 Amount Spent and Infrastructure Created under CSS in
Kasaragod Dairy
Sl.
No.
1
2
Component
Civil structure (RMRD,
production block, cold
store, etc.
Processing equipments &
machineries added
Total
Financial
(Rs in Lakh)
IDDP
CMP
Phase
Phase
I & II
I & II
57.5
Nil
101.84
Physical Facility
Production block, general godown
Nil
Pasteurizer, milk silos, boiler,
refrigeration equipments,
Homogeniser ETP, etc.
159.34
The important equipments and
cream during storage which was
machineries
adversely
now
available
in
affecting
the
ghee
Kasaragod Dairy are listed in
quality. Therefore, the Milk Union
table 7.3. They are inadequate to
had taken a policy decision to
carry on the present level of
equip Kasaragod Dairy to produce
operations. Also some of them
ghee.
(pasteurizer)
modification to create space to
deserve
to
be
replaced due to the usual wear
and tear while some others (Tripurpose Centrifuge, homogeniser
etc.)
are
to
be
scaled
up
in
considering
the
growth
procurement
and
the
market
demand.
The Dairy transfers surplus fat to
The
addition
and
install equipments is going on. A
Cream storage tank and a cream
pump have been purchased in
advance under IDDP phase II and
are in the dairy at the time of
survey.
7.5.3 Key Issues and
Recommendations
Kannur dairy, which is functioning
The installed capacity of the dairy
near full capacity. Moreover, some
is insufficient to carry out the
quality deterioration was taking
current scale of operation.
place by mixing the old and new
not difficult to foresee that the
It is
237
Kasaragod District
Table 7.3 Processing and Allied Equipments and Machineries Installed in
Kasaragod Dairy
A
Processing/Storage Equipment
1
2
3
4
5
6
B
7
8
9
10
C
11
12
13
14
15
16
D
17
Bulk coolers
Milk chillers
Milk pump
Horizontal milk storage tank
Pasteuriser
Milk silo
Fat Handling
Sour milk separator
Cream storage tank
Cream pump
Cream transfer tank
Milk Marketing
Pouch filling machine DHG mechanical
Pouch crates
Milk pumps
Cold store conveyor
Pouch crate washer
Date coding device for pouch filling machines
Service Equipment
Refrigeration compressors
(make/model/type/cap.)
Motor for refrigeration compressors (KV)
Ice bank tank
Chilled water pump
Chilled water agitator
Air handling unit for cold storage/Deep freezer
(make/model/cap)
Steam Raising Plant
Boiler (oil/coal)
Chimney
Compressed Air System
Air compressors
Receivers
Industrial- Electrical
DG set
DG set
Transformer
Water Supply System
Water storage tank
Water pumps
18
19
20
21
22
E
23
24
F
25
26
G
27
28
29
H
30
31
Capacity
Quantity
10 KLPH
10 KLPH
15 KLPH
10 KLPH
60 KL
1
4
2
1
1
500 LPH
2000 LTS
5000 LPH
1000 LTR
1
2
1
2
5000 PPH
10 LTR
10000 LPH
1200 cr/hr
1200 cr/hr
60 IMP/Mnt
4
5000
2
1
1
6
20 TR
40 HP
100 KL
90 KLPH
5 HP
3
3
1
2
2
3 TR
1
1 MT
32 Mts.
1
1
50 CFM
500 lts.
3
3
150 KVA
250 KVA
250 KVA
1
1
50 KL
20 KLPH
1
1
238
Kasaragod District
demand for milk, curd, ghee and
ƒ
growth in milk procurement
sambharam will increase in the
ƒ
peak period procurement
near future and the Union needs
ƒ
demand supply gap in the
to urgently strengthen the curd
and ghee production apart from
market
ƒ
the facilities for milk processing as
it enables the dairy to generate
extra
income
investment.
on
Therefore,
is
recommended that the following
production
facilities
be
strengthened/added on priority.
7.5.4 Additional Processing
Capacity for Kasaragod
Dairy
The additional processing capacity
for Kasaragod Dairy is examined
on the basis of:
expansion
ƒ
minimal
it
potential for market
available
infrastructure
for
processing
The past experience suggests that
the
milk
procurement
in
Kasaragod will grow at the rate of
7 per cent per annum and during
peak three to four months at the
rate of 14-15 per cent above the
normal procurement.
Hence the
current procurement, 36,000 LPD
is expected to reach 45,000 LPD in
the next three years and 52,000
Curd process hall Kasaragod Dairy
239
Kasaragod District
LPD in the next five years. And
efficiency. Hence they are to be
there is little scope to divert the
replaced.
milk
until
the
newly
planned
Kannur Dairy is commissioned.
Moreover,
the
supply
b. SS Pipes and Fittings – In
order to provide additional milk
demand
lines and cleaning lines for the
position in Kasaragod is in favour
new equipments additional SS
of market expansion and larger
pipe
coverage. Considering the above
and
valves
are
required.
requirements it is suggested to
enhance the processing capacity to
lines
c. Pasteurizer
-
The
existing
50,000 LPD in a phased manner
pasteurizer
(as suggested in table 7.4).
throughput due to prolonged
a. Milk
Pumps
-
Three
old
and
of
very
giving
lesser
usage. Heat transfer efficiency
milk
is very low and the spare parts
pumps available at Dairy are
very
is
of the pasteurizer are not easily
poor
Table 7.4 Equipments and Machineries Suggested for Kasaragod District
under NPDD
Sl.
No.
Milk Processing & Marketing
Equipments
Capacity
No. of
Units
Unit Cost
(Rs)
Total
Cost (Rs
in Lakh)
1
Milk pump
10 KLPH
3
50000
1.5
2
Horizontal milk storage tank
10 KLPH
0
500000
0
3
SS pipes and fittings
Lot
1
500000
5
4
Pasteurizer
10 KLPH
1
2500000
25
5
Homogenizer
10 KLPH
1
6000000
60
6
Tri-purpose centrifuge
10 KLPH
1
3500000
35
7
Automatic CIP system
20 KLPH
1
4500000
45
8
Cream pumps
5 KL
1
300000
3
9
Pouch filling machines
5000 PPH
1
1000000
10
5 TR
1
2500000
25
8 TR
60
imp/mnt
1
3500000
35
5
150000
7.5
LS
1
3000000
30
10
Cold store (including equipments)
11
12
Deep freezer room
Date coding devices for pouch
filling machines
13
LT electricals
Total
282
240
Kasaragod District
available. Hence, it is essential
various
that the old pasteurizer be
prescribed in the FSSA Act.
replaced by a new pasteurizer
Hence,
of
cleaning
10
KLPH
with
better
regeneration efficiency.
equipments
the
existing
system
as
manual
is
to
be
replaced with an Automatic CIP
d. Homogeniser - The Dairy has
system.
an old homogeniser of 5 KLPH
g. Cream Pump - In order to meet
capacity, which does not match
volume of fat to be handled in
with the flow rate of 10 KLPH
the near future a cream pump
pasteurizer. As about 70 per
will be essential.
cent of the milk sale is in the
form
of
homogenised
milk,
which is increasing, to meet the
demand the dairy has to have a
10 KLPH homogeniser.
e. Tri-purpose Centrifuge - At
h. Pouch Filling Machine - The
number
of
machines
pouch
in
the
inadequate
to
volume
of
milk,
butter
milk
filling
Dairy
is
handle
the
curd
and
planned
to
be
present the dairy has only one
packed. Hence, a new pouch
tri purpose centrifuge which is
filling
being
purchased.
used
for
milk
standardisation as well as skim
milk
production
making.
To
for
curd
complete
the
processing in time as per the
market demand installation of
an
additional
tri
purpose
Centrifuge is called for.
does
not
have
an
automatic CIP system to ensure
cleaning
and
sanitisation
is
to
be
i. Cold Store - The present cold
store equipments in the Dairy
does
not
have
adequate
capacity to store the milk and
milk
products
as
per
the
temperature specified in FSSA
act to maintain the cold chain.
f. Automatic CIP System - The
dairy
machine
Hence additional equipments
are to be installed in the cold
store.
of
241
Kasaragod District
j. Deep
Freezer
-
To
infrastructure
in
ice
achievements of liquid milk and
storage
major milk products during 2013-
capacity of ice cream is to be
14, identifies the key issues and
improved by the installation of
problems
deep
recommendations
handle
the
cream
Room
increase
sale,
the
freezer
rooms
and
refrigeration compressors.
present date coding devices are
friction
coders
type
mechanical
creating
problems
leading to customer complaints
and legal issues. In order to
have better clarity in printing of
manufacturing
pouches
it
date
is
on
proposed
the
to
install thermal printers in the
pouch filling machines.
l. LT
Electricals
and
sales
finally
to
makes
address
them.
k. Date Coding Devices - The
of
available,
7.6.2 Organization of Marketing
The marketing wing attached to
Kasaragod
Dairy
marketing
organizes
functions.
the
The
marketing wing has a Marketing
Organizer
and
Assistants
three
(Field
Marketing
Staff).
The
Kasaragod Dairy markets liquid
milk and milk products within the
district. The marketing area of the
Dairy is subdivided in to three
-
The
installation
of
above
machineries
requires
proper
zones and each zone is under a
Marketing Assistant.
7.6.3 Supply Chain
electrical power supply.
The Union has more or less similar
supply chain for all the districts.
7.6 Milk Marketing
The milk and the milk products
7.6.1 Introduction
reach the consumers from the
Milk marketing is one of the major
processing
functions
retailers
of
MRCMPU.
chapter
provides
of
marketing
of
the
MRCMPU
in
an
This
units
through
designated
as
the
dealers.
overview
The liquid milk is directly supplied
organization
from the Dairy to the dealers and
Kasaragod,
the
products
through
the
242
Kasaragod District
wholesalers. There were 926 retail
Market
outlets
standard practice of competitive
and
14
wholesalers
in
size
calculated
on
a
Kasaragod at the close of March
sales
2014. A well developed intending
approach) shows that the market
and distribution system exist. The
for
liquid milk and the products are
district
sold to the dealers on advance
57,193 LPD (Milma 44,193 plus
payment.
Credit
facilities
13,000 by the competitors). In this
extended
to
dealers
the
were
on
approach
liquid
milk
during
(bottom
in
up
Kasaragod
2013-14
was
a
method the sales of competitors
limited scale. The milk and milk
are assessed through a series of
products sold during 2013-14 is
interviews
shown in table 7.5. It may be seen
generally is moderate. The sales in
that while the growth in sales of
this method mostly pertain to the
milk is marginal, the growth of
urban areas excluding the rural
sales of curd, ice cream and ghee
market.
are substantial.
calculating the market size is by
and
Yet
understanding
7.6.4 Market Size and Market
Share of MRCMPU
its
accuracy
another
the
way
end
of
user
purchases. The sample survey in
rural and urban area conducted in
Market size is measured as the
six selected locations by the study
total volume of a given market.
group (June 2014) shows that the
Table 7.5 Progress in Sale of Milk and Milk Products in Kasaragod, 2013-14
No.
Milk/Product
Quantity
2009-10*
2013-14
1
Liquid milk (LPD)
43280
44193
2
Curd (Liter/day)
2805
3
Ghee (Kg/month)
10910
4
Ice cream (Liter/month)
5
Butter milk (200 ml Pkts./day)
6
Milk peda (Kg/month)
397
7
Sip up (Pkts./month)
14859
8
Palada (Kg/month)
150
486
9
Milma plus (Bottles/month)
706
* Previous benchmark
2591
3568
12149
570
2229
4076
5613
728
10265
243
Kasaragod District
Table 7.6 Estimated Market Size of Milk in Kasaragod District, 2014
Sl.
No.
1
Description
Population number
2
Cattle holdings %
3
Potential consumers (1 x 0.2)
4
Actual % consumers as per HH survey
5
Actual consumers (3 x 4/100)
6
Per capita cons. – Survey result
Household consumer demand LPD
(6 x 5/1000)
7
Inst. demand 20% of urban consumption
9
Total demand (7+8)
Milma supply
11
Market share %
Urban
Total
798328
509047
1307375
25
8
10
Rural
NA
598746
509047
1107793
74
95
443072
483595
151
174
66904
84145
151049
0
16829
16829
66904
100975
167878
926667
44193
26
per capita consumption among the
substitute milk powder for milk.
rural population in Kasaragod is
The entire institutional segment is
151 ml and urban 174 ml per day.
catered to by the private dealers
The market size is shown in table
from within and outside the State.
7.6.
The low market share of Milma is
The
total
estimated
market
in
Kasaragod is huge, 1.68 LLPD
while
the
MRCMPU
marketed
44,193 LPD and their competitors
13,000 LPD adding up to 57,193
LPD leaving a gap of 1.22 LLPD.
The market share of Milma is just
under 26 per cent of the market
size which is low.
The market
share of competitors at six per
cent seems to be under estimated.
The survey shows that a small
sufficient justification for NPDD
support to develop a business plan
and marketing strategy for the
district.
7.6.5 Milk Marketing
Infrastructure – Current
Status
Table 7.7 presents the various
support
infrastructure
and
logistics available in Kasaragod
for market promotion.
segment of the population, 13 per
cent rural and 10 per cent urban,
244
Kasaragod District
Table 7.7 Existing Milk Marketing Facilities in Kasaragod, 2013-14
Sl. No.
Component
Numbers
1
Wholesalers for the produce
2
Dealers (Retail outlet) for milk
3
Milk parlors (No.)
4
4
Milma shoppe (No.)
3
5
PUF vehicle container (5 MT) (No.)
1
6
PUF vehicle container (3 MT) (No.)
12
7
8
PUF vehicle container (1.5 MT) (No.)
% milk routes using PUF vehicles for milk
distribution to retail outlets
9
14
926
2
100
PUF box 50 ltr. (No.)
58
10
PUF box 100 ltr. (No.)
28
11
PUF box 150 ltr. (No.)
30
12
PUF box 25 ltr. (No.)
87
13
PUF box 460 ltr. (No.)
14
Shipper box for ice-cream
30
15
16
200 liter freezers for dealers (No.)
80
17
120 liter freezer (No.)
3
200 liter freezers glass top for dealers (No.)
6
70
The milk parlors are positioned in
addition of the PUF containers
busy
under the IDDP scheme during the
public
consumers
Apart
places
to
products.
years,
the
entire
milk
products they also serve as a
switched over to PUF insulated
media to improve the visibility of
vehicles. The PUF boxes of varying
milk and milk products. Four such
sizes, 50-150 liter, provided at 50
parlors exist in Kasaragod district.
per cent subsidy in the retail
various
infrastructure
introduction
the
yester
transport from the Dairy has been
the
selling
attract
Milma
Among
from
Milma
to
marketing
provided,
of
PUF
insulated
vehicles for milk distribution and
PUF boxes in the retail outlets are
worth
mentioning.
With
the
outlets ensures perfect end-to-end
cold chain, namely from the Dairy
to
the
exposure
consumer.
visits
Our
field
revealed
that
retailers whole heartedly welcomed
the PUF boxes because they are
viable alternatives for the energy
245
Kasaragod District
consuming freezers. They occupy
counter the invasion of milk and
less space, are easily movable and
milk products from across the
easy to clean. The boxes retain low
border. Because of falling milk
temperatures for about 3-4 hours
production
during
market for milk and milk products
which
the
entire
milk
generally get sold out.
Freezers,
200
capacity,
are
and
in
rural
areas
the
is expanding rapidly. Also, market
120
provided
liter
to
the
retailers at a subsidized price of Rs
5000 a piece for storing frozen
Milma products. Apart from ice
cream, sometimes milk is also
stored in these. There are many
takers for the freezers and almost
all of whom we visited was found
analysis shows that there is wide
gap
in
the
supply
demand
position. To take advantage of
these
favorable
factors
and
to
safeguard the interest of the milk
producers in the district further
expansion
and
of
marketing
developing
an
outlets
aggressive
marketing strategy is called for.
to use them. The Visi-coolers are
Consumer awareness camps are
provided at subsidized price to
being
store products like flavored milk,
organized to explain the chain of
cup curd and so on.
activities taken up by the dairy,
Kasaragod
district
is
under
perpetual threat from the border
districts of Karnataka in the sales
of milk and milk products. The
Karnataka marketers are operating
at an advantage as the selling
price for milk in Karnataka is
always lower than that in Kerala.
Added
to
that
the
marketing
network created by MRCMPU in
Kasaragod
is
inadequate
to
held
and
Dairy
visits
starting from milk reception to
sales through the retail outlets.
The
consumers
also
get
an
opportunity to gather first hand
information on quality assurance
followed at various stages of milk
reception,
processing
and
marketing. Advertisement boards
and banners are exhibited in busy
places for the publicity of the milk
and milk products.
246
Kasaragod District
7.6.6 Key Issues and
to improve the real and perceived
Recommendations
The
crux
of
the
quality of milk and milk products.
issues
in
As a
part
of
the
strategy
Kasaragod is related to the normal
Transporter
market forces. Milk is cheaper
(TCD)
across the border. Whenever the
scheme, Super Market scheme,
consumer
equilibrium
Frozen milk scheme, New dealers
changes the inflow of milk from
incentive scheme, starting of Drive
Karnataka tends to increase. The
in Parlors and so on will have to
institutional segment is dominated
be promoted.
price
by private traders bringing milk
from outside the State. At the
same
time
livelihood
majority
milk
production
intensive
of
to
marginal
is
a
vast
and
sub
marginal farmers of the district.
Therefore, the question is how to
safeguard
the
interest
of
Kasaragod farmers? The MRCMPU
has to scale up their marketing
activities
answer.
in
Kasaragod
is
the
The marketing facilities
available in Kasaragod district are
inadequate
to
provide
quality
Cum
scheme,
Distributor
Redistribution
a. Milk Parlors
The number of milk parlors now
functioning in Kasaragod district is
few.
The
already
functioning
parlors have proven that they are
an effective media to promote the
sale
of
Milma
milk
and
milk
products. Therefore nine parlors
are recommended for the district.
It is suggested that the dealers be
provided
initial
establishment
support of Rs 60,000 per parlor.
b. Milma Shoppe
service to the consumers. The
Improving the visibility of Milma is
activities and facilities required to
important to scale up its business.
improve the marketing of milk in
Improving the business is very
Kasaragod is shown in table 7.8.
crucial
To
establish
Sustainable
quality
as
a
Competitive
Advantage (SCA), MRCMPU will
continue to make all-round efforts
to
sustain
the
milk
production and livelihood support
to
the
resource
poor
milk
producers of Kasaragod. Milma
shoppe, apart from selling the milk
247
Kasaragod District
Table 7.8 Marketing Infrastructure Suggested for Kasaragod District
Sl.
No.
Component
Total
Physical
EOP
Unit
Cost
(Rs)
Total
Estimated
Cost (Rs
in Lakh)
1
Milk parlor civil
9
50000
4.50
2
Milk parlor equipments
9
10000
0.90
3
Shoppe support
5
500000
25.00
4
Space in super market
30
20000
6.00
5
Decorated mobile product vehicle
3
50000
1.50
6
PUF vehicle container (5 MT)
1
460000
4.60
7
PUF vehicle container (3 MT)
3
250000
7.50
8
PUF box 25 - 460 liter
300
2000
11.50
9
Shipper box for ice cream
45
6000
2.70
10
200 liter freezers for dealers
120
13000
15.60
11
200 liter freezers glass top for dealers
120
17000
20.40
12
120 liter freezer
120
11000
13.20
13
500 liter freezer for dairy
10
23000
2.30
14
Deep freezer 320 ltr.
90
17000
15.30
15
Deep freezer 320 ltr. (Glass top)
90
20000
18.00
16
Visi-cooler 220 ltr.
120
20000
24.00
17
Visi-cooler 320 ltr.
80
30000
24.00
18
19
Consumer awareness programme
Advertisement and miscellaneous
items like tin board, chain board,
outlet painting, flex board, etc.
90
50000
75.00
450
600
80.00
20
ACP with LED board
150
20000
30.00
21
Canopy with eutectic freezer subsidy
15
100000
15.00
22
Support to milk stockists (RD)
Dealer club meet/orientation/
incentive
12
200000
24.00
6
25000
1.50
Effluent treatment plant (ETP)
1
4000000
40.00
23
24
Total
462.50
and milk products, are effective in
shall be started under the NPDD.
publicizing. The few number of
The
Shoppe
in
provided a subsidy of Rs 5 lakh to
Kasaragod are inadequate to serve
establish and furnish the Shoppe
the urban population. Therefore it
and to meet the rent during the
is suggested that five new Shoppe
initial period.
now
functioning
new
franchises
shall
be
248
Kasaragod District
c. PUF Bodies
boxes
In order to give good quality milk
IDDP/SIQCMP
and
supplied
are
under
the
doing
good
milk
products
to
the
service. But less than 50 per cent
consumers,
MRCMPU
requires
dealer points have PUF boxes. In
more number of PUF bodies.
At
order to popularize and spread
present the entire processed milk
their use three hundred more PUF
is transported in PUF insulated
boxes
vehicles.
suggested
In
order
to
ensure
of
varying
for
sizes
are
Kasaragod.
Visi-
uninterrupted cold chain in milk
coolers are excellent equipment to
transport four more PUF body is
keep products like flavored milk in
suggested
cool temperatures. Most of the
as
standby
and
to
operate new supply routes.
d. PUF Boxes/Visi-Coolers
MRCMPU
have
effectively
demonstrated that PUF Boxes is
well suited and the cheapest to
private companies provide Visicoolers free of cost to promote
their milk. Hence, 200 of them are
suggested
as
part
of
market
promotion.
preserve milk at the dealer point.
e. Ice Cream Promotion
Freezers are uneconomic to store
The share of value added milk
small volumes of milk. Moreover
products in the total turnover of
they are capital intensive. The PUF
the
Union
is
crucial
to
the
Canopy & Freezer for ice cream sales Kasaragod
249
Kasaragod District
financial
MRCMPU.
dairying in the district as well as
Among all the products, ice cream
the food security and livelihood
is
one.
support. Therefore it is strongly
has
recommended that an aggressive
only less than 5 per cent market
out of box consumer education
share in the ice cream segment.
program and publicity through all
The major hurdle identified against
channels,
the
media,
the
viability
most
Unfortunately,
of
promising
Milma
market
now
expansion
in
printed
shall
be
and
visual
launched
in
Kasaragod is the absence of user
Kasaragod to serve two purposes –
friendly and energy saving freezers
awareness
at retail points. A three pronged
sections of population and market
market
promotion - as a tool for socio-
intervention
–
appoint
creation
among
all
more whole sale dealers, equip all
economic
retail points and wide publicity
estimated amount of Rs 150 lakh
through TV channels is suggested.
will be required for this.
The wholesalers and dealers shall
be provided freezers at subsidized
prices as is busing done by the
competitors. Freezers of varying
size
numbering
500
will
be
required to command a sizeable
market.
In addition canopy with
improvement.
g. Effluent
Treatment
An
Plant
(ETP)
The ETP is meant for Kasaragod
Dairy.
The
inefficient
existing
and
ETP
the
is
scale
inadequate to handle the effluents
Eutectic Freezers, 15 numbers, are
from
the
small
recommended for special sales in
Kasaragod
tourist spots and prominent on
production
road places.
scaling up of processing facility the
is
Dairy.
gearing
As
the
up
for
enhancement
and
capacity enhancement of ETP is
f. Consumer Awareness
Kasaragod faces fierce competition
from private dealers from within
and outside the state. Sustaining
and further developing the market
is crucial to the very sustenance of
inevitable. The place where the
ETP is functioning needs to be
changed
to
the
corner
of
the
campus. From the statutory and
hygiene
point
of
view
it
is
250
Kasaragod District
suggested that a higher capacity
procure
milk
from
the
dairy
ETP may be established at the
farmers. The organization of milk
Dairy at an estimated cost of Rs 40
procurement is explained as fig.
lakh.
7.3.
BMC DCS means a DCS in which
7.7 Milk Procurement
the BMC is installed, Cluster DCS
7.7.1 Milk Procurement
means a DCS which supplies milk
Milk procurement is one of the key
to the BMC, and the direct DCS
functions of MRCMPU. The milk
means a DCS which supplies milk
procurement
in
Kasaragod
directly in the Dairy/MCP. The
looked
by
the
after
P&I
is
Unit
milk
producer-deliver
the
functioning under the Dairy. The
household surplus milk either in
Unit has established a network of
the BMC DCS, Cluster DCS or
village level DCS in the district to
Direct DCS.
The Cluster DCS in
Fig. 7.3 Organization of Milk Procurement in Kasaragod District
Farmer
Milk
Cluster DCS BMC DCS
Direct DCS KGD DAIIRY
Key words: BMC DCS – Dairy Cooperative Society having Bulk Milk Cooler;
Cluster DCS - DCS attached to BMC for milk supply; Direct DCS – DCS
supplying milk to Dairy; KGD – Kasaragod.
251
Kasaragod District
turn
delivers
the
milk
to
the
removed from the DCS roll due to
nearest BMC. The BMC chills and
the
delivers the milk to the Dairy. The
procedures.
direct DCS supply milk direct to
procurement per DCS was 348
dairy dock. The Dairy in turn
LPD and per supplier 9.1 LPD
process and market the milk in
during 2013-14. The local sale,
towns
9773 LPD, accounts for 22 per
and
other
urban
cumbersome
mandatory
The
average
agglomerations within and outside
cent
the district. The whole chain of
indicating
activities
procurement,
trend in the rural areas. The rate
processing and marketing - is well
of procurement is appreciable in
orchestrated and well executed.
the
A
-
majority
Kasaragod
of
the
are
Cooperative
DCSs
Anand
Societies
in
Pattern
(APCOS).
They are producer cooperatives
managed
by
a
democratically
elected Board of Directors. At the
close of March 2014 the district
had 128 functional APCOS. In
addition there were 5 non-APCOS
directly under the department of
Dairy Development.
of
the
light
However,
daily
procurement
healthy
production
of
the
Kerala
standards.
DCS
classified
according to the daily procurement
shows that 11 DCS were collecting
less than 100 LPD and yet another
30 DCS between 100 and 200
LPD. The study shows that those
DCS are not economically viable.
The reasons for poor procurement
rate are that they are not in ideal
locations, non-potential suppliers
are inducted as members and the
farmers have other options for
Table 7.9 shows the profile of the
selling
DCS in Kasaragod. From among
those DCS needs to be considered.
the
22,408
registered
milk
producers in the district at an
average 4890 (22 per cent) alone
poured milk in the DCS. The
proportion pouring milk is low
because the non-producers are not
milk.
The
relocation
of
Out of the 128 DCS only 17 DCS
supplied milk directly to the Dairy
during
2013-14.
All
others
supplied milk either to the village
BMCs or to those DCS supplying
252
Kasaragod District
Table 7.9 Profile of DCS in Kasaragod District March 2014
Sl. No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
Description
No. of functional APCOS (31-3-2014)
No. of farmer members/DCS
Av. number of Suppliers/DCS
Milk farmer procured (LPD)
Local sales (LPD)
Milk supplied to milk union (LPD)
Av. procurement/DCS (LPD)
Av. DCS procurement/supplier (LPD)
Av. procurement price paid to DCS (Rs/Kg)
Av. price - Local sales (Rs/liter)
No. of DCs collected <100LPD
No. of DCS collected 101-200 LPD
No. of DCS collected 201-300 LPD
No. of DCS collected 301-500 LPD
No. of DCS collected >500 LPD
No. of DCS making one time milk collection from
farmers
Av. fat%
Av. SNF%
No. of BMC DCS (31-3-2014)
No. of BMCs
Installed capacity
Av. collection through BMC (LPD)
No. of DCS making supply at dairy dock
No. of DCS provided AMCU (including DDD)
No. of DCS provided analyzer only (including DDD)
No. of DCS provided EMT
No. of DCS provided EMT only (no analyzer)
No. of DCS provided Gerbers test equipment only
No. of Panchayat wards in the district
% coverage under milk procurement
% wards having potential for milk collection
No. of DCS in own building
No. of DCS having adequate water supply
arrangements
No. of DCS having standby generators
No. of DCS having electricity
No. of Milk cans supplied during last five years
Milk spoiled (LPD)
Av. MBRT - milk supplied through BMC
Av. MBRT - milk supplied at dairy dock
* Figures in brackets are the total numbers
Quantity
128
175
(22408)*
60 (7638)
44601
9773
34828
348
5.83
29.24
NA
11
30
21
60
6
NA
4.1
8.4
12
12
43000
27600
17
104
4
34
7
7
665
80
5
41
35
15
117
790
4
127
133
253
Kasaragod District
to MCP. Only 41 DCS, 32 per cent
per
of the total DCS, function in own
Surprisingly, with the exception of
building;
rented
Wayanad district, 9.1 LPD per
buildings. Almost all of them have
supplier, is one of the highest
electricity. But only 35 DCS have
among
adequate and proper water supply
MRCMPU. The assessment is that
arrangements. The absence of own
only 5 per cent of the remaining
building
wards
others
and
are
lack
in
of
adequate
water is identified to be one of the
DCS
is
all
not
the
have
encouraging.
districts
the
under
potential
for
starting new DCS.
major constraints in maintaining
good
hygiene
standards.
It
is
7.7.3 Milk Quality and Quality
gratifying to note that 104 out of
Administration
128 (81 per cent) have AMCU for
The MRCMPU follows two axis
milk collection.
pricing, that is, farmers are paid
on the basis of milk fat and SNF
7.7.2 Coverage
Kasaragod
content. The village cooperatives
district
has
665
are equipped to determine the
Panchayat wards of which almost
compositional
80
SNF. Few DCS are also equipped
per
cent
are
under
milk
quality,
fat
and
procurement coverage scheme. The
to
geographical coverage is excellent
adulterants and neutralizers apart
but the volume of milk collected
from MBRT estimations.
detect
added
preservatives,
Table 7.10 Kasaragod District Av. Milk Quality 2013-14
Parameter
Values
Fat % APCOS
5.1
Fat % non-APCOS
NA
SNF % APCOS
8.4
SNF % non-APCOS
NA
Av. MBR time BMC DCS (Mts.)
127
Av. MBR time direct DCS (Mts.)
133
No. of APCOS using/supplied AMCU
104
No. of APCOS using/supplied Milk O
tester & LR
No. of APCOS using/supplied Gerber’s
test & LR
34
7
254
Kasaragod District
Because
of
the
quality
based
pricing
system,
the
quality
comparable with the non BMC
assessment in DCS is crucial in
DCS, 133 minutes. This need to be
determining the milk price for the
further investigated. In the years
farmer, in winning their confidence
to come both compositional and
and overall sustenance of dairy
bacterial quality will have a telling
production.
influence on the marketability of
The
different
BMC
DCS,
127
minutes
is
cooperatives in Kasaragod follow
milk
one of the three known procedures
needs to pay better attention for
of
namely
improving the bacterial quality.
conventional milk testing (Gerber’s
The best way to usher in microbial
test
SNF
quality is to pay for bacterial
determination), Milk O Tester for
quality. It is suggested that an
fat and LR for SNF and Automatic
incentive for good quality milk may
Milk Collection Units (AMCU) for
be introduced as a beginning.
quality
for
assessment
fat
and
LR
for
and
therefore
the
Union
quality and price determination.
The AMCU is the most desirable
7.7.4 Key Issues and
because it is convenient, error
proof,
quick
transparent.
Under the IDDP and SIQCMP Rs
Table 7.10 shows that 104 out of
380.85 lakh has been invested for
128 APCOS (81 per cent) possess
procurement
AMCU. Less than half of DCS
from BMC to milking vessels and
possessing AMCU regularly use
capacity building of farmers and
the full set of AMCU reportedly
elected
due
support is available for two more
to
some
and
Suggestions
snags
in
the
years
analyzers.
activities
members.
(2014-15
ranging
The
and
IDDP
2015-16).
Therefore the support requested
The average of procured milk has
under the NPDD is meant
4.1 per cent fat, and 8.40 per cent
stabilize and carry forward the
SNF.
achievements already made. The
Farmer
education
and
introduction of AMCU can further
reasons
for
the
improve the quality. The average
major/new
MBRT of milk supplied through
illustrated below.
suggestion
components
to
of
are
255
Kasaragod District
1. Buildings
2. Water Supply System
As pointed out in the forgoing
Developing water source and water
sections a sizeable number of DCS
supply is becoming increasingly
function in rented buildings. Most
important in Kasaragod.
of them do not have the minimum
the DCS find it difficult to mobilize
facilities
milk
adequate capital for investment.
BMC
Hence, a subsidy of Rs 60,000 per
installation is virtually impossible
unit is suggested for 10 DCS at an
and effluent treatment is a serious
estimated cost of Rs 6 lakh. Water
issue. Therefore it is suggested to
harvesting, installing water tanks
include provision for subsidizing
and
new DCS buildings at the rate of
envisaged. In addition digging 10
Rs one lakh per DCS. The number
bore wells at the rate of Rs 25,000
of DCS identified to have the land
per unit and 15 open wells at the
and financial capacity to do this
rate of Rs 10,000 per unit are also
are 18 during the project period.
suggested.
collection
for
and
hassle
free
dispatch.
pumping
Most of
facilities
are
Table 7.11 Kasaragod District Suggested Milk Procurement Facilities under
NPDD 2014-17
Sl.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Milk Procurement
Building construction
Water supply system
Bore well
Open well
Aluminium cans
Automatic milk collection units
Electronic milk tester
Electric centrifuge
Weighing scale
Hand held billing device
Management grant to DCS
Subsidy for milk transport
Subsidy to cattle feed transport
MT
Incentive to better quality milk
Total
18
10
10
15
300
3
4
8
3
8
8
370000
Unit
Cost
(Rs)
100000
60000
25000
10000
2500
125000
15000
2500
15000
10000
30000
0.5
Total
Cost (Rs
in Lakh)
18.00
6.00
2.50
1.50
7.5
3.75
0.6
0.2
0.45
0.8
2.4
1.85
32200
900000
400
0.5
128.8
4.5
178.85
No. of
Units
256
Kasaragod District
3. Automatic
Milk
Collection
5. Incentives for Good Quality
Units
Milk
About 104 DCS use AMCU for milk
The
collection and quality checking. It
considerable
is important to have standby units
the dairy farmers to produce good
for
of
quality milk. The bacterial content
to
in raw milk has been significantly
as
reduced. The low bacterial count
The
improves the quality especially the
replacement
breakdown.
include
It
in
is
case
suggested
three
units
service/replacement
units.
estimated cost is Rs 3.75 lakh.
4. Subsidy
for
Cattle
Feed
Cattle feed is being sold through
DCS.
wholeheartedly
arrangement
The
farmers
welcome
because
of
the
the
convenience, easy access and the
credit
facility
extended
by
the
DCS. The transport of cattle feed
from producer companies to the
DCS entails cost. It is suggested to
subsidize the transport cost. The
estimated
quantity
sold
has
instilled
enthusiasm
among
organoleptic properties (taste and
Transport
the
SIQCMP
in
Kasaragod comes to 32,200 MT in
three years. An amount of Rs
0.4/kg is the suggested subsidy on
transport cost and the total Rs
128.8 lakh. This may be provided
as cattle feed subsidy so that the
price of cattle feed can be kept low.
flavor) of the milk apart from high
heat stability and longer shelf life.
The good quality milk (good taste
and flavor) are cherished by the
consumers. Thus the consumers
and
Milk
Union
are
reaping
benefits while the farmers are not
compensated for their extra effort
to produce good quality milk. It is
legitimate that they are motivated
through
some
incentives
to
produce and supply clean milk.
Towards this end it is proposed
that the top 2 per cent of the milk
may be paid an incentive of 50 ps.
per
liter
of
milk.
The
daily
procurement is close to 40,000
LPD and the incentives at the
suggested rate works out to Rs 4.5
lakh in a year.
257
Kasaragod District
7.8 Cattle
Shed
and
Farm
ones
to
facility
Machineries
permit
for
sunlight,
continuous
and
water
Well constructed cattle sheds are a
feeding. No cattle shed meeting
precondition
such
for
clean
milk
standards
exists
in
production. A dirty cattle shed
Kasaragod. Most of the sheds are a
contributes substantially towards
mere make shift
external contamination of milk and
mud/wood
entry of microbes in to the udder
PVC/Silpaulin
causing
sub-clinical/clinical
musky, all in one floor (no urine or
mastitis. A well constructed cattle
dung channel) and without any
shed
provide
watering arrangements. The cows
operational easiness and animal
remain in this shelter most of the
comfort. The shed should have
time
adequate space for the animal,
quarters
manger, feeding alley, urine and
remain soiled by dung and mud.
dung channel. The shed must be
Udder and teat injury is common.
well ventilated, easy to clean and
Feeding
should have transparent roofing
occasional. Therefore, any support
sheets interspersed with opaque
for good cattle shed is the most
should
also
(no
floor,
shelter with
tile/asbestos/
roof,
dark
grazing).
and
of
the
and
The
hind
udder
often
water
is
only
New cattle shed constructed under SIQCMP, Kasaragod
258
Kasaragod District
welcome support for the poorest of
is
the
Hence, reducing the labor and
poor
dairy
farmers
Kasaragod.
Considering
deficiencies,
the
Milk
in
uncommon
these
making
Union
arduous
the
in
daily
is
Kasaragod.
chores
crucial
for
less
the
funded cattle shed modifications
sustenance
of
and building new cattle sheds
Considering
the
under
SIQCMP
social significance of dairying, the
schemes. During the course of the
MRCMPU has initiated providing
field work we found that the floor
financial
of cattle sheds are well made using
mechanization. Table 7.12 shows
the
the physical attainments in the
the
IDDP
fund
and
allotted.
However,
construction of new cattle sheds is
materials. The budget provision
of
Rs
10,000
is
thoroughly
farming.
economic
support
for
and
farm
immediate past.
very expensive in Kerala due to the
high labor cost and the cost of
dairy
Table 7.12 Farm Equipments
Supplied to Farmers in Kasaragod
District
inadequate and will not meet even
Sl.
No.
10 per cent of the overall cost.
1
Cattle sheds modified
Nil
Therefore,
more
2
Milking machines
28
sensible if the support could be
3
Rubber mats
793
4
Pressure washers
17
extended
it
for
would
be
renovation
and
Item
Quantity
5
Gen sets
3
modification of the cattle sheds
6
Cow drinker
2
with watering facility rather than
7
Chaff cutter - Motorised
3
insisting on a new cattle shed.
It is suggested that the assistance
On the face of shrinking family
may be continued and funded
size, changing status of women in
under NPBBDD. The components
the
suggested,
society,
opportunities
for
quantity
and
the
employment in other sectors of the
estimated cost are presented in
economy the availability of labor
table 7.13.
for dairy farming is fast declining.
Hired labor for dairy farm activity
259
Kasaragod District
Table 7.13 Kasaragod District Cattle Shed and Farm Machineries
Suggested under NPDD 2013-17
No. of
Units
Unit
Cost
(Rs)
Total
Cost (Rs
in lakh)
150
15000
22.5
Auto watering system
Cattle Farm
Mechanization
100
5000
5.00
3
Gen set
30
75000
22.5
4
Pressure washers
100
7500
11.25
5
Rubber mats
500
2500
18.75
A
Cattle Shed
1
Strengthening of old
sheds/constructing new
2
B
Total (4.0)
80.00
7.9 Cattle Induction
Cattle
induction
is
a
heifers to 50 farmers to promote
common
procedure adopted to re-distribute
the
asset
among
the
different
sections of the community. The
absence of easily accessible loan at
reasonable interest rate adds on
the importance of this activity.
Therefore
been
cattle
resorted
induction
to
by
has
several
development agencies in the State.
The MRCMPU too distributed 250
cattle rearing in the district.
The cattle keeping in the district is
largely
a
job
of
economically
weaker sections of people (BPL
families). It continues to be an
important source of livelihood for
them, especially women. Therefore,
distributing the following number
of
cattle
(Table
7.14)
is
recommended under NPDD.
Table 7.14 Cattle Induction Program Suggested in Kasaragod District under
NPDD 2014-2017
Sl.
No.
1
2
3
4
5
Cattle Induction
Capital expenditure
Purchase of animals
Purchase of heifers
Transportation cost of
animals
Cattle/Heifer insurance
Total
Total
Cost (Rs
in Lakh)
120
120
Unit
Cost
(Rs)
0
40000
30000
240
150
2000
2500
4.80
3.75
92.55
No. of
Units
48.00
36.00
260
Kasaragod District
ƒ
Only the BPL families will be
7.10 Establishment of
Laboratories
included for cattle induction
An amount of Rs 37.85 lakh had
activity.
ƒ
Fifty percent of cows and fifty
percent of heifers are reserved
for women.
ƒ
Women
members
will
be
subsidy and others 50 per
cent of purchase price.
ƒ
IDDP and SIQCMP and Rs 16.22
by Milk Union in upgrading the
Kasaragod dairy lab.
allowed 75 per cent of price
ƒ
been invested under phase I & II
The Kasaragod dairy lab requires
to add more modern gadgets after
lay out of the recently acquired
equipments and standardizing the
Transportation cost shall be
ground level testing procedures.
met in full under the scheme.
The lab has to go a long way in
Seventy
five
percent
of
Insurance amount shall be
included under the scheme
and
the
balance
as
beneficiary contribution.
equipping and testing procedures
to
meet
with
requirements.
the
The
FSSA
following
suggestions (Table 7.15) are as an
interim measure to improve and
equip
the
lab
to
acquire
HACCP/ISO certification.
Table 7.15 Kasaragod Dairy Laboratory Facilities Requested under NPDD
2014-17
No. of
Units
Unit
Cost
(Rs)
Total
Cost (Rs
in Lakh)
Central milk testing lab
Purchase of laboratory
furniture
High capacity pressure jet
1
0
20.00
1
500000
5.00
1
100000
1.00
FSMS monitoring software
Accreditation and certification
of dairy establishments under
HACCP/ISO
1
100000
1.00
1
500000
5.00
Sl.
No.
1
2
3
4
5
Component
Total
32.00
261
Kasaragod District
The
facilities
provision
other sections. An amount of Rs
requested under Kasaragod dairy
1,00,000 will be required for the
lab may be seen in table 7.15. To
software. The Kasaragod Dairy has
establish
in
ISO 9001:2008 certification. The
Kozhikode dairy to carry out all
Dairy is preparing to acquire ISO
the
22000:2005.
tests
a
and
central
lab
stipulated under
the
This
calls
for
FSSA 2011 and to achieve ISO
observing
22000-2005,
is
including audit requirements. An
requested. The central lab will be
amount of Rs 5.0 lakh is the
equipped to carry out all the
estimated requirement.
Rs
20
lakh
sophisticated tests both in the raw
and processed milk. Detection of
Antibiotic
light
residues,
metal
heavy
content,
and
pesticide
residues and so on requires very
expensive
equipments
like
spectrophotometer. By establishing
a central lab the duplication of
expense can be avoided. At the
Although
certain
the
protocols
DCS
labs
are
equipped to carry out the MBRT, a
system to carry out the test by the
DCS staff and to link on line with
the
central
lab
is
yet
to
be
implemented in full.
7.11 Clean Milk Production
same time the samples from the
Kits for Farmer
sister labs like Kasaragod can be
Beneficiaries
tested. Hence the suggestion is
The
MRCMPU
highly justifiable.
following
supplied
the
under
the
articles
SIQCMP scheme to the farmers in
The Kasaragod lab is badly in need
Kasaragod (Table 7.16).
of lab furniture. An amount of Rs
5.0 lakh will be required to acquire
The distribution of CMP kits to
the absolutely essential furniture.
farmers has the least impact on
A high capacity jet is essential to
clean milk production because the
clean the 60 KL milk silo. The
farmers generally discontinue the
FSMS
use
monitoring
software
is
once
the
free
supply
is
essential to handle the lab and the
stopped. Hence, this component is
data generated and network with
not recommended to be continued
262
Kasaragod District
Table 7.16 CMP Kits Supplied under SIQCMP Scheme in Kasaragod
District
Sl.
No.
Item
Financial
(Rs in
Lakh)
Physical
CMP Kits to Farmers
1
Detergents & chemicals to DCS
2
Stainless steel utensils to beneficiaries
Lot
11.42
1091
21.82
Total
33.24
under NPDD. On the other hand,
Milking machines are also very
the stainless steel utensils (the
beneficial to the farmers. My field
milking
exposure visits shows that almost
utensils
and
carrying
vessels) supplied are being used by
all
the
under the IDDP/SIQCMP schemes
farmers
and
they
whole
recipients
of
the
machines
heartedly welcome the component.
regularly
It
those
continuous service back up is
equipments may be supplied to the
essential. It is suggested that nine
farmers under the NPDD also. The
numbers of milking machines may
numbers
be
is
suggested
that
suggested
and
the
use
supplied
them
to
although
the
farmers
financial requirement is given in
possessing five or more cows at
table 7.17.
subsidized (75 per cent) rate under
Table 7.17 CMP Kits and Milking Machines Suggested for Kasaragod
District under NPDD
Sl.
No.
1
2
3
Component
Stainless steel utensil kit/
accessories
Electricity operated milking
machine & other equipments for
hygienic milk handling at
village/farmer level
Manual milking machines
Total (7.0)
No. of
Units
Unit Cost
(Rs)
Total
Cost (Rs
in Lakh)
1600
400
6.40
15
55000
8.25
50
6000
3.00
17.65
263
Kasaragod District
NPDD.
It is also suggested that
physical attainments in Kasaragod
few hand operated machines shall
district
be supplied to the needy farmers
7.18.
after
making
a
scientific
and
methodical field trial in association
with KVASU.
(TIS)
The technical input services earlier
under
the
IDDP/
SIQCMP schemes encompasses a
variety of farm level activities and
assistance. The TIS was a major
component of those schemes. The
components,
presented
in
table
The Technical input services are
production incentives to farmers
and are expected to reduce the
7.12 Technical Input Services
implemented
are
financial
and
cost of production of milk. Those
components
are
in
the
state
domain and the line departments
are in charge. Our field experience
shows that the quality of delivery
of services like veterinary care and
AI at the farm gates is deplorably
poor. The story of several other
services is also not different. A
total
re-orientation
of
those
Table 7.18 Technical Input Services Components and Achievements
Kasaragod District
Component
Physical
Achievement
Financial
IDDP/
SIQCMP
Union/
Beneficiary
Total
Tech input services
200
25.6
10.97
36.57
Table 7.19 Technical Input Services for Kasaragod District
Sl.
No.
Component
No. of
Units
Unit Cost
(Rs)
Total
Cost (Rs
in Lakh)
1
Liquid nitrogen containers
6
30000
0
2
Audio visual kits, etc.
Animal health & breeding
input camps
Chaff cutter
Commercial fodder
production
1
200000
2.00
180
5000
9.00
36
20000
7.20
10
100000
10.00
3
4
5
Total
28.20
264
Kasaragod District
services through Milk Union and
added crop in irrigated land. The
DCS will be beneficial both for the
fodder
state exchequer and the farmers.
marketed
This is often told but not done.
members at cost price. The scheme
Hoping that this will happen none
shall be a flagship program of
of those schemes handled by the
NPDD.
so
produced
shall
among
the
be
DCS
line departments/NDP scheme is
included. The following components
7.13 Information and
are suggested to be included under
Communication
NPDD as a priority component.
Technology Networking
The most essential components
are listed in table 7.19.
The
The LN containers included are for
replacement of the ones being
used in AI Centers. Since they are
covered under NDP the facility can
be used under that scheme. The
animal
input
camps
include
fertility management of dairy cows
among farmers. It is a DCS based
program centrally controlled and
monitored from HO of MRCMPU.
The
conventional
fodder
production
homestead
is
a
failed
attempt in Kerala. The reasons are
many, the most important being
the land fragmentation and the
decline in farming activities. On
the
other
holdings
potential
hand,
and
large
fallow
source
land
land
for
are
fodder
production – fodder as a value
MRCMPU
apart
from
a
farmers’ organization is also a
multi crore business concern. Its’
business units are far flung and
widely distributed. To keep abreast
with the speed and perfection of
modern
business
utilization
of
in
full
information
communication
technology
the
and
is
essential. It is also essential that
the whole business is transparent
to the stakeholders, the farmers.
Unfortunately, the Milk Union is in
the infantile stage of exploiting the
IC technology. At present the dairy
and
associated
activities
are
partially
computerized
and
networked
(intranet).
Milk
The
Union proposes to expand the IC
so that the system will function as
a
client
server
architecture
265
Kasaragod District
network with 6 centers at each
districts and DCS. The details of
district
the proposed system are given as
(Palakkad,
Kozhikode,
Malappuram,
Wayanad,
Kannur,
annex-1. The expenditure is to be
Kasaragod) and a central server
shared
system
projects. The share of Kasaragod
linking
all
these
six
centers. The data and information
between
the
district
district is illustrated as table 7.20.
will be made available to all the
Table 7.20 Information and Communication Technology NetworkingKasaragod
A
Capital Expenditure
1
1.1
1.2
1.3
1.4
1.5
2
2.1
2.2
2.3
2.4
3
Purchase of Computer/ HHB
Desktop
Laptop & Netbook
Hand held range of computers
A4 size net work laser printer
A4 size flat bed scanner
Purchase of Servers
Rack server
Server storage device
Tape backup
UPS for server
Purchase/Installation of Software
Systems
3.1
3.2
3.3
3.4
3.5
Weblogic server suite purchase
Oracle database 12C
Antivirus software
Hardware & networking
Software consultation charges
(AMC)
Onsite software analysis and
evaluation for Union and DCS
purchase
Software purchase & up-gradation
charges
Recurring Expenditure
3.6
3.7
B
1
2
Software consultancy & data base
administration
Leased line communication cost
Sub-total (capital)
Sub-total (recurring)
Total
Unit
Rate
Units
Amount
0.50
0.60
0.30
0.20
0.05
14
10
36
7.00
6.00
10.80
0.00
9.00
8.00
8.00
7.00
2
1
1
1
18.00
8.00
8.00
7.00
15.00
15.00
1.00
10.00
1
1
1
1
15.00
15.00
1.00
10.00
5.00
1
5.00
5.00
1
5.00
30.00
10.00
10.00
71
0.00
0.00
115.80
0.00
115.80
266
Kasaragod District
7.14 Manpower Development
district. The DCS staff has been
The MRCMPU
trained
adopted training
at
the
HRD
centre,
and development program as a tool
Kozhikode under MRCMPU on the
for organizational development and
relevant
to make strides on productivity
included those from within the
standards
cost
organization and also invited from
conservation,
other organizations. The duration
and product improvement. Apart
ranged from one to three days and
from Union employees, the staff
the subjects handled were those
and elected members of DCS and
relevant to the concerned groups.
including
reduction,
Board
energy
are
also
trained
on
appropriate subjects.
MRCMU
has
designed
subjects.
The
trainers
The CD program includes training
in village cooperatives followed by
several
a visit to processing Dairy/cattle
training programs as a part of
feed
plant.
Farmers
are
the
Manpower Development. The table
trainees. The farmers induction
7.21 shows the numbers trained in
program is normally carried out in
various categories from Kasaragod
the HRD Centre, Kozhikode. The
Table 7.21 Training of Employees and Elected Members in
Kasaragod District
Sl.
No.
1
a
b
c
2
3
4
5
6
7
8
10
11
Training Course
Cooperative development program
No. of programmes
No. farmers trained
FIP- local farmers attended
Training of BMC/DCS/MCC staff
Training of DCS secretary
Training of DCS employees
Training on AI
Training of farmers on GMP/GHP
Training of farmers on AH practices
FIP
Training on marketing
Training of management committee members
Number of
Persons
Trained
8
1073
861
85
16
113
85
17
3838
96
735
267
Kasaragod District
Management
26. Farmers training should be
Training to the farmers has been
organized in villages with the
under taken in APCOS DCS. The
support of LSG and Village
training
by
Extension
experts and visit to a few well run
MRCMPU.
Dairy
Animal
included
lectures
farms. The farmers were given
Workers
27. All out and comprehensive
opportunities to see for themselves
training
the success and failure stories.
Eradication,
The
training
for
MRCMPU
employees is arranged by the Head
Office in the institutions of repute
in India, both inside and outside
the state. An interaction with a
test
group
showed
that
the
trainings were useful for upgrading
their skill and knowledge.
under
on
Clean
Production
Village
Mastitis
for
Milk
farmers,
Extension
Workers
and DCS employees should
be initiated on a project mode
and results closely monitored
and evaluated.
28. The
Dairy
Production
Marketing
Managers,
Officers
staff
and
should
be
An amount of Rs 56.63 lakh had
exposed to higher levels of
been spent on HRD IDDP and CMP
knowledge on production and
Phase
marketing management. They
I
and
II
in
Kasaragod
should
district.
be
provided
opportunity to visit centers of
excellence outside the State.
7.14.1 Key Issues and
29. The
Suggestions
25. Future
training
especially
thrust
building
of
of
capacity
higher
those for the middle level
employees
employees
modern Management Systems
starting
from
Supervisors should be hand
rather
on
subjects.
training
exclusively
on
should
than
on
They
be
level
on
technical
should
be
subjects and skills relevant to
exposed to what happens in
them.
the dairy sector elsewhere in
268
Kasaragod District
the country (eg:
Dynamix)
to
Schreiber
widen
their
vision and outlook.
30. The FIP must be gradually
toned down and tapered out.
The courses suggested for Kasaragod
district and the estimated cost are
given as table 7.22.
supply
of
consumables,
raw
materials,
etc.
for
manufacturing
operations
products
and
of
in
the
milk
sales
and
Kasaragod
Minimum
quantity
of
materials,
consumables
milk
district.
all
raw
packing
materials, stores and spares etc.
are to be stored.
7.15 Working Capital –
Kasaragod District
The working Capital requirement
of
the
Union
is
fluctuating
Working Capital is essential to
throughout the year depending on
ensure smooth and uninterrupted
local milk procurement. The milk
Table 7.22 Manpower Development Kasaragod District Suggested Programs
under NPDD 2014-15 to 2016-17
Sl.
No.
1
2
4
5
6
7
8
9
10
10.1
10.2
10.3
10.4
10.5
11
12
13
Name of Course
CD programme
FIP
Secretary
Tester/Helper
MCC/P&I staff
Training on AI
Training of farmers in GMP/GHP
Training of farmers on animal
husbandry
Training of dairy personnel
Dairy manager
Production officers
Dairy plant supervisors
Technicians/Operators
Milk marketing officers
Training of MC members
Institutional skill development
Dairy extension activities
Total
Person
Person
Person
Person
Person
Person
15
600
125
125
12
20
250
Unit
Cost
(Rs)
80000
300
3000
3000
20000
2000
2000
Person
66
2000
1.32
Person
Person
Person
Person
Person
Person
0
Prog.
2
8
9
7
7
3
0
7
20000
20000
20000
20000
20000
12000
0
1000
0.40
1.60
1.80
1.40
1.40
0.36
20.00
0.07
57.45
Units
No. of
Units
Total
Cost (Rs
in Lakh)
12.00
1.80
3.75
3.75
2.4
0.40
5.00
269
Kasaragod District
procurement
of
the
Union
requirements. As the volume of
fluctuates between the flush and
business
lean season. During lean season
dependence on bank loan will be
union is procuring large quantity
more in the coming years.
milk from other states for which
payments are made in advance.
Large quantity of SMP shall be
kept especially during lean season
to meet the market demand for
liquid milk, curd, etc. During flush
season funds are needed to stock
The
is
increasing,
working
capital
the
grant
proposed under the NPDD will give
good relief to the Union, as it will
reduce heavy dependence on the
banks for loan, as well as savings
in expenditure towards interest.
ghee, converted SMP, cream, etc.
Value of 21 days milk collected
which are produced in excess of
from the societies by the Malabar
normal
Union is about Rs 218 lakh during
market
requirements.
Union is supplying cattle feed and
2013-14
other inputs to the societies on
increase to Rs 248 lakh in the next
credit basis. Present supply of
three years as shown in table 7.23.
which
is
expected
to
cattle feed to societies is more than
700 MT per month. It is expected
The Milk Union will be able to
to increase significantly in the
manage
coming years.
internal resources if the funds for
the
milk
value
from
the inventories and other goods
Union is at present resorting to
are met from other sources.
short-term loan from banks to
amount required is shown in table
meet
7.24. It is far below the calculated
its
working
capital
The
Table 7.23 Actual and Calculated Milk Value for 21 Days in Kasaragod
District
Milk Procurement (LLPD)
District
201314
(Actual)
201415
201516
201617
Average
Milk
Price
(Rs)
Kasaragod
0.36
0.35
0.38
0.41
28.88
Days
Total Milk
Value
(Base Year)
(Lakh)
Total
Milk
Value
(EOP)
(Lakh)
21
218.33
248.66
270
Kasaragod District
milk value for 21 days. Hence an
amount
of
Rs
189.6
lakh
is
suggested as working capital for
Kasaragod district on the basis of
the calculation shown in table
7.24.
271
Kasaragod District
Table 7.24 Working Capital Requirement for Three Years from 2014-15 for
Kasaragod District
Working
Capital
Purchase of milk
powder
Purchase of
packing material
Purchase of
cattle feed
Total
Unit
No. of
Units
Unit
Cost
201415
201516
201617
Total
Cost
KG
50000
300
45.00
60.00
45.00
150
KG
6000
210
4.20
4.20
4.20
12.6
MT
150
18000
9.00
9.00
9.00
27
58.2
73.2
58.2
189.6
56150
Annex-1
Information and Communication System - NPDD
The NPBBDD System will function as a client server architecture network with Six
centers at each district (Palakkad, Malappuram, Kozhikode, Wayanad, Kannur,
Kasaragod) and a central server system linking all these six centers with the following
objectives.
The Pilot project on Information and technology,
networking which is to make the data and
information available to all the DCS under
MRCMPU. The data processed from the Dairy is
stored on a Data Server which is called rack
server. This rack server is mounted inside a rack
for easy management purpose. The information
contains day to day activities of the dairy and the
societies linked to that dairy and also BMCS
related information (qty., quality, chilling cost, etc.) and period wise payment system
for the societies/BMCs.
The data in the rack server need to backup frequently
to store that data in a backup storage device for cold as
well as hot backup and also to backup to tape for the
data portability regularly to avoid data loss and to keep
data away in a secured place for a long period of time.
The HHB system is used to communicate with the society
collection centers and on the data collected via HHB from
collection center is imported directly to the society package to
avoid manual error and intervention for the easy processing the
data sheet and invoices and also will be used for the Marketing
(iv)
Kasaragod District
product ordering and cash collection activities.
The data and information is processed based on
Three-tier architecture (oracle database platform)
as a client–server architecture in which the
computer data and data access can be developed
and maintained as independent modules for the
fast processing of transaction and information to
the DCS.
(v)
Kasaragod District
With the help of oracle web logic suite which can be used for
the clustering of data that enables scaling of applications with
high availability of data to the users for processing and can
deploy on cloud environment. This is a Server software
application that runs on a middle tier, between back-end
databases and related applications and browser-based thin
clients. Web Logic use to develop to connect users in a
distributed computing environment and to facilitate the
integration of applications with distributed corporate data and
applications.
Antivirus software to make the system protected from most
viruses, worms, Trojan horses, and other unwanted invaders
that can make the system malfunction. So to keep the system
(Hardware & Software) healthy and functional, need to
install a proper antivirus and should be updated with the
latest updations.
Desktop, Printers and switches - use to communicate among dairies
and DSC for data sharing among clients inside and outside for the
proper function of the system.
Onsite Software Analysis and evaluation includes the onsite
installation of Software at the DSC and Dairies and also to provide
proper training on how to use the software and its attached resources.
Software consultancy charges for our Enterprise
Resource Planning Solution for integrating all the
modules to make it centralized.
Lease line cost for the interconnectivity between Dairies and its
Subcentres (including MCC/MCP/Depots) for centralized management
and availability of data at any time from any locations under the units of
MRCMPU.
(vi)