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 low risk The milk chilling facilities are the better microbial quality BMCs installed in DCS and the better and the other at village based decentralized chilling in BMCs is preferred over the centralized chilling because: 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 growth in milk procurement Name Specification Units peak period procurement Cream pump 5000 LPH 1 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 potential for market expansion 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 included for cattle induction Cattle induction is an effective way of asset re-distribution. activity. The absence of easily accessible loan at has been resorted by several women. MRCMPU heifers to promote too Women cattle rearing in to the District. 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. 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 this induction issue, schemes implemented by been to 370 Malappuram to farmers promote 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 met weaker in full under the scheme. sections of people (BPL families) and women. It continues to be a Transportation cost shall be 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 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. Transportation cost shall be met in full under the scheme. 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 92.55 Only the BPL families will be included for cattle induction. Total Cost (Rs in Lakh) Fifty percent of cows and fifty Transportation cost shall be met in full under the scheme. 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 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 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. per cent. Only the BPL families will be 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 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 growth in milk procurement sambharam will increase in the peak period procurement near future and the Union needs demand supply gap in the to urgently strengthen the curd and ghee production apart from market 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 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 Only the BPL families will be 7.10 Establishment of Laboratories included for cattle induction An amount of Rs 37.85 lakh had activity. Fifty percent of cows and fifty percent of heifers are reserved for women. Women members will be subsidy and others 50 per cent of purchase price. IDDP and SIQCMP and Rs 16.22 by Milk Union in upgrading the Kasaragod dairy lab. allowed 75 per cent of price 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)