DAIRY DEVELOPMENT IN INDIA:
A REPORT ON STUDY VISIT
Prepared by:
Md. Mashiur Rahman
Director General, BARD, &
Dr. Kamrul Ahsan
Director (Training), BARD
AFRICAN-ASIAN
RURAL DEVELOPMENT
ORGANIZATION
NEW DELHI, INDIA
November 2013
BANGLADESH
ACADEMY FOR
RURAL DEVELOPMENT
1
COMILLA, BANGLADESH
Bangladesh
Contents
Sl.
1
2
3
4
Page
Executive Summary
3
1 Introduction
5
1.1 The Context
5
1.2 Current Situation of Dairy Sector in Bangladesh
6
1.3 Objective of the Study Visit
6
1.4 Justification and Scope of the Study Visit
7
1.5 Visit to Different Dairy Related Institutions
7
Observations and Results
8
2.1 Salient Features of Different Dairy Development Institutes Visited
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A. National Dairy Plan of India from 2011-12 to 2016-17
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B. National Dairy Research Institute
10
C. National Dairy Development Board
16
D. Mother Dairy
23
E. Amul
27
2.2 Dairy Development Performance in Bangladesh
34
A. Milk Vita
34
B. Pran Dairy
39
C. Aarong Milk
41
Discussions on Development Issues for Milk and Milk Products
42
3.1 India
42
3.2 Bangladesh
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A. Short Term Policy (Up to 5 years) for Cattle Development
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B. Medium Term Policy (6 -10 years) for Cattle Development
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C. Long Term Policy (10 years and beyond) for Buffalo Development
51
Conclusion
52
Bibliography
54
Annexure
55
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Executive Summary
India is the largest milk producing country. Congenial milk production environment by
organizing and improving marginal and small farm holders, developing breed, ensuring
sustainable competitive price for milk to the farmers, developing various market driven milk
and milk products; keeping steady growth in milk production are the vital achievements of
milk and milk product development so far in India during the last 50 years. On the other
hand, country like Bangladesh is poor in milk production and over 80 percent of total
requirement is met up from import milk.
Bangladesh Academy for Rural Development (BARD), Comilla is well-known for evolving a
number of rural development models. Livestock development got proper attention in
selecting development projects in the past. But livestock development as a component for
rural development did not contribute remarkably in those projects except the cooperative
based creamery plant project in 60’s which continued upto late 90’s and that was closed
mainly due to inadequate supply of milk in the plant. African Asian Rural Development
Organization (AARDO) organized a 10 day visit programme to different milk and milk
production organizations in India for two senior officials i.e., Mr. Md. Mashiur Rahman,
Director General and Dr. Kamrul Ahsan Director (Training) of BARD with the financial
support of AARDO and Government of India. The study team visited National Dairy
Research Institute (NDRI), Karnal, Mother Dairy, Delhi, Amul and National Dairy
Development Board (NDDB), Anand. The study team also visited a Primary Dairy
Development Cooperative at Sandesar, Anand. All these events were supported by briefings
and guided visits. NDDB was established in 1965 to support millions of poor milk producing
farmers of the country to increase milk processing for domestic consumption as well as
export the same in abroad under different brands like Amul, Mother Dairy etc. Increasing
productivity through scientific breeding, nutrition development, strengthening village based
milk procurement system, training and capacity building etc. were the major thrust of the
Government of India to lead the country as the leading milk producer in the world.
It is realized that the dairy sector of India could create a comprehensive and friendly
milk production environment in different states of India. India could ensure constant and
sustainable growth in milk production despite of comparatively limited investment from
public and private sectors. The country has mega biodiversity and huge bovine population.
The production cost of milk is comparatively low in India, which actually the driving
motivating force of huge small and marginal farmers with their 2-4 cattle each in most cases.
Provide competitive prices of milk to all small producers of milk for longer time. The well
coordinated network of milk collection and marketing keep farmers’ produces market driven.
The country has huge untapped milk resources both in cattle and buffalo to explore in future.
Because until now only about 17 percent cattle could develop through cross breeding and
even this 17 percent could produce more milk in bulk compared to milk produced by rest of
the 83 percent indigenous breed of the country. All theses advantages are utilized through
well plan with comprehensive policy and commitment of all concerned.
There are also a number of weaknesses in dairy sector of India. Among these low
productivity of indigenous breed, higher lean-flush ratio, regional imbalance in production
and little control over quality milk production are prominent. In addition, inadequate cold
chain facilities with respect to huge need, shortage of feed and fodder, continuous reduction
of fodder area, low capacity in processing and late sexual maturity of dairy animals are
notable in this regard as the future challenges of the country.
On the other hand the opportunity for large-scale development of dairy is limited in
Bangladesh due to high price of livestock feed and scarcity of grazing land. But there is
potentiality for development of smallholders of dairy farming. Small-scale dairy farming has
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increased significantly with the support of credit, feed, veterinary services and provision of selfinsurance systems over the last few years. But still required favorable conditions for small holder
cannot be created in the sector for a number of practical reasons. Among that individual milk
testing is not carried out at the procurement level in Bangladesh and farmers are paid a flat
rate of milk price. Thus, there is no incentive for quality milk supply. Adulteration is
common and as a result fat and or SNF (solid not fat) percentage in milk is low. Skim milk
powder often has to be added to milk to make up the low SNF level for pasteurized liquid
milk.
The Livestock Development Policy 2007 of the government identified a number of
constraints for milk production in the country of which (i) limited knowledge and technical
skills of smallholder dairy farmers, (ii) scarcity of feeds and fodder, (iii) poor quality of
feeds, (iv) frequent occurrence of diseases, (v) limited coverage of veterinary services
including poor diagnostic facilities are important.
In addition, livestock development through the application of science-led methods of
breeds and breeding in Bangladesh is still at an initial stage. There is, however, enthusiasm
for applying breeds and breeding interventions to enhance livestock performance. Lack of a
national breeding policy, use of inappropriate breeds, weak infrastructure (human capacity,
national service delivery, breeding farms) and limited technical knowledge are the major
barriers for the development of improved breeds.
Available high yielding seed materials are mostly exotic and imported. However, not
all of these imported exotic species adapt well under Bangladesh climatic conditions.
There is a number of promising well-adapted native livestock breeds in the country
such as Red Chittagong cattle, Pabna cattle etc. which could be developed into high yielding
breeds through cross breeding in a systematic manner. Importation of inappropriate genetic
material coupled with indiscriminate crossbreeding and a clear neglect of indigenous breeds
has created a situation, where a number of native breeds of livestock are under threat of
extinction.
There is no regulatory body or National Breeding Act to regulate breed imports,
prices of breeding materials, merits and quality of breeds, breeding materials and breeding
services. Within the existing cattle breeding services (including artificial insemination),
farmers have little or no idea of the merit and quality of the semen being provided to them for
insemination. The investment is very poor in this sector.
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1. Introduction
1.1 The Context
Livestock sector plays a significant role in Bangladesh economy. Cattle and buffaloes are
used for draft power, rural road transport and threshing of crops. Moreover, livestock provides
animal protein through milk, meat and eggs for human consumption and dung as fuel and
manure. Livestock sub-sector contributes about 3 per cent of total GDP and it employs about 20
per cent of rural labor force. The development of livestock sub-sector has therefore, been
considered as an important element for generating income and employment especially in rural
areas.
There exists a wide gap between total requirement of livestock products like milk, meat,
eggs etc. and their current levels of production. Moreover, the gaps between requirement and
production are expected to widen due to population growth and more importantly to rapid
increase in per capita income. As income rises, the demand for livestock and poultry products
increases rapidly.
Bangladesh Academy for Rural Development (BARD), Comilla has a long experience in
rural development. BARD has been engaged in training, research and action research on rural
development since its establishment in 1959. BARD has involved in developing different models
of rural development for uplifting the socio-economic conditions of the rural poor. The famous
‘Comilla Model of Rural Development’ was the outcome of this Academy which provided a
unique combination of administrative, institutional and physical infrastructures for rural
development. Introduction of high yielding varieties through irrigated paddy production was the
fourth component of the model, which enhanced the paddy production of Bangladesh from about
9 million metric tons per annum in 60’s to almost 35 million metric tons per annum in 2011. The
Government of Bangladesh has recently accepted up two of BARD’s successful models namely
Comprehensive Village Development Programme (CVDP), and Small Farmer’s Development
Programme (SFDP) for replicating through out the country in phases.
BARD took a few livestock development programmes but for a number of reasons it
could not be continued for a longer time. For example, in early 60’s with the initiative of BARD a
Creamery Plant was established and linked the same with the milk producer cooperators of
different villages at Comilla. The products of the plant like Comilla Butter and Comilla Cheese
became popular in the country for a long time and discontinued in the late nineties. Inadequate
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supply of milk to the plant, poor management etc. were identified as the causes for closing the
production of the plant.
1.2 Current Situation of Dairy Sector in Bangladesh
The growth has been most rapid especially for poultry (chicken/ducks) and least for
cattle/buffaloes during the period 1983-2005. In fact, the number of
cattle/buffaloes
increased by 2.57 million (mostly during 1996-2005 period) over the 23 years after
independence of the country. This has led to a decline of cattle/buffaloes per household and
per capita by 37.5 and 30.8 per cent respectively over the period. The number of chicken and
ducks, on the other hand, increased remarkably (by 52.96 million between 1983-84 and 199596 and by 55.12 million between 1995-96 and 2004-05). The differential growth of livestock
and poultry largely reflects the scarcity of grazing land and the scavenging nature of
chickens/ducks as well as recent growth spurt of commercial poultry compared to cattle and
buffaloes.
During the current decade specially the 2000-01-2008-09 period) poultry population
registered a satisfactory growth (over 5 per cent) followed by goats/sheep (around 4 per cent).
The growth of cattle/buffaloes, especially cattle, was the most disappointing, which registered
a growth of only 0.5 per cent over this period. This has led to a per capita decline in the
number of bovine animals, particularly cattle in the country. Due to robust growth of poultry,
however, the livestock population registered an overall growth of 4.6 per cent, thereby
leading to an increase in the number of livestock per capita over the period.
1.3 Objective of the Study Visit
The objective of the study visit to India was to observe and document the salient
features of the chain of milk production at the community and farm levels and their
processing and marketing of the same at the end. The report is prepared based on the study
visit also review of milk production scenario of Bangladesh. The specific objectives of the
study visit were to:
a)
describe about the initiative and intuitional supports to the milk production in India;
b)
assess the role of community and the farmer’s organizations in management of milk
production and marketing the same;
c)
document the market linkage and value chain of milk and milk products at different
levels; and
d)
review the milk production and milk products scenario of Bangladesh in the present
situation.
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1.4 Justification and Scope of the Study Visit
Dairying is an important economic activity in Bangladesh that provides
supplementary income, employment and nutrition to about 3.6 million households in
Bangladesh. Dairying is labour intensive. A farm with two lactating cows generates 4,080
hours of labour opportunities every year.
Even though per capita milk consumption is low in Bangladesh, domestic milk
production is still insufficient to meet the existing demand. In the formal market about 87%
milk is imported. The
sector’s growth rate (2.05%) remains far behind that of the
neighboring countries against 4.1% in India and 4.9% in Pakistan. The reasons for such
modest growth rate are lack of sound policy, insufficient data on the sector to formulate
proper policy, lack of political commitment and less attention and insufficient budget
allocation (only 0.3% of national budget), inadequate private investment of this sector and so
on. Coordination among the actors in the value chain (farmers, traders, processors and service
providers) is very week leading the chain very long with a higher degree of mistrust among
different groups. This increases cost and reduces competitiveness. In Bangladesh, pasteruised
packet milk sold at US$0.44 per liter against US$0.29-0.31 per liter in India in 2006. Now the
price in Bangladesh is US$ 0.8 per liter which is much higher than that of India. Primary
producers in Bangladesh only get about 50% of the consumers’ price; whereas Indian
producers get 74% of the consumer’s price. The study visit provided some inputs suitable to
incorporate in the development of milk production in Bangladesh.
1.5 Visit to Different Dairy Related Institutions
The study visit included orientations on development and establishment milk and milk
products of India while visiting different milk plants, research institutes and livestock farms.
The study visit was taken place during 17-27 August, 2013. A schedule of the visit is
attached in Annexure-1. The programme started with visiting NDRI, Karnal and then Mother
Dairy, Delhi; and NDDB, Amul and a Primary Milk Producing Cooperative Society in
Anand, Gujarat. In addition, a visit was made to the Ministry of Rural Development,
Government of India where Joint Secretary (External Support) provided an introduction to
rural development efforts of India. The team visited Head Office of AARDO, New Delhi
where Secretary General of AARDO, Engineer Wassfi Hassan El Sreihin welcomed the team
and oriented the team about the programmes and facilities of AARDO. The team also visited
NIRD, India where a short briefing on NIRD including activities of Agricultural
Technological Park of NIRD was provided. Dr. Khushnood Ali, Director (Research),
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AARDO, New Delhi provided all sorts of supports including preparing the programme,
arranging air tickets, maintaining contacts with different organizations in Delhi, Haryana,
Gujarat of Hyderabad for successful completion of the visit programme.
The name of the institutions visited by the team were
a)
National Dairy Research Institute (NDRI), Karnal, Haryana
b)
National Dairy Development Board (NDDB), Anand, Gujarat
c)
Milk Processing Industries i.e., Mother Dairy in Delhi and Amul in Anand, Gujarat;
and
Primary Milk Producer’s Cooperative Society at the village level those are linked to
milk processing industry
d)
During the visit to different places, short briefings on supports and services for milk
production in the chain from producers to the end products were made. Moreover,
discussions with stakeholders along with supporting paper and documents were the important
inputs of the visit.
2. Observations and Results
2.1 Salient Features of Different Dairy Development Institutes Visited
The visit to different establishments related to milk and milk products were made
during 17-27 August 2013 in Delhi, Haryana and Gujarat of India. The coverage of the study
visit includes National Dairy Research Institute (NDRI), Karnal, Mother Dairy, Delhi,
National Dairy Development Board (NDDB) and Amul in Anand and a Primary Milk
Producing Corporative Society in Anand. In addition visit included Head Office of AARDO
and NIRD, Hyderabad.
A. National Dairy Plan of India from 2011-12 to 2016-17
India is the largest milk producer in the world with a production of 121.8 million tones
in 2010-11 which was approximately 17 percent of the world’s total dairy production and
virtually used for own consumption. Based on the Planning Commission’s estimates higher
growth in GDP, it is expected that demand for milk is likely to be about 155 million tones by
2016-17 and about 200 million tones by 2021-22. To meet the growing demand it is necessary
to maintain the annual growth of over 4 per cent in the next 15 years. Therefore, a multi-state
initiative has launched to increase productivity in existing herds through a planned programme
for breeding and feeding of cattles. The National Dairy Plan (NDP) has been envisaged with a
fifteen-year target of which three to five years are required to produce a more productive
animal along with development and expansion of systems to increase milk production.
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The first phase of the National Dairy Plan is to finance over a period of six years with
the following objectives:
(i)
To help in increasing the productivity of milch animals and thereby increase
milk production to meet the rapidly growing demand for milk; and
(ii)
To help in providing rural milk producers with greater access to the organized
milk- processing sector.
a) Increase of Productivity through Scientific Breeding: Genetic progress over a larger
population can be accelerated if breedable animals are bred through artificial insemination
(AI) using the semen of a few top High Genetic Merit Bulls. The proportion of milch
animal’s bread through AI targeted to be raised form 20 per cent to 35 per cent.
b) Nutrition: Milch animals produce milk with its genetic potential when these are fed with
balanced rations. This approach to feeding positively impacts not only their health and
productivity but also leads to a significant decrease in cost of production as feed accounts for
about 70 per cent of the total cost of milk production. It helps increasing the farmer’s income.
NDBB has developed user-friendly computerized software for Ration Balancing.
c) Strengthening Village-based Milk Procurement System: Some 70 millions rural
households are engaged in milk production, the majority being small and marginal farmers
and landless households in India. Dairy cooperatives ensure inclusiveness and livelihoods for
small landholders, especially for women. It is desirable that the cooperative sector retains the
present 50 per cent share of the marketable surplus handled by the organized sector.
d) Training and Capacity Building: Skilled and trained human resources are essential and
critical inputs for the successful implementation of the national plan. Facilitating training and
development of field personnel are considered an important area for supporting the
programme. Capacity building, training and education campaigns to promote technologies
and improved practices at village level are also key initiatives of the programme. It is
estimated that about 6,00,000 personnel at all levels require training and reorientation under
NDP.
e) Project Management and Learning: The initiatives under the NDP are dispersed over
different geographies. It is therefore, critical to integrate ICT (Information and
Communications Technology) based systems in the operations of various activities.
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Implement ICT-based information systems for integration of various activities as well
as monitoring and reporting at different levels to carry out necessary analysis and
facilitate necessary changes in programme implementation;
Carry out baseline, mid-term and project completion surveys and other special
surveys/studies; and
Facilitate learning and documentation of learning experiences.
f) Expected Outputs: The plan would be able to establish
Effective monitoring and coordination of programme activities;
Timely preparation and implementation of annual plans; and
Regular review and reporting of development progress and results.
g) Project Area: NDP covers on fourteen major milk producing states, viz. Andhra Pradesh,
Bihar, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab,
Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal.
These states account for over 90 percent of the country’s milk production have 87
percent of the breedable cattle and buffalo population and 98 per cent of the fodder resources.
B. National Dairy Research Institute: The study team visited NDRI, Karnal, Haryana
on 18-19 August 2013. The study visit team constituted with Md. Mashiur Rahman, Director
General of BARD (Additional Secretary to the Government of Bangladesh), Dr. Kamrul
Ahsan, Director (Training) of BARD, Comilla and Dr. Khushnood Ali, Technical Officer,
Capacity Building and Development Projects Division, AARDO. Dr. G. R. Patil, Joint
Director (Academic) and Dean and Dr. Ravinder Malik, Principal Scientific Officer and
Organizer of the Study Visit and other concerned welcomed the team to NDRI at 11 am on
the 18th August 2013.. After a short discussion on activities of NDRI and also on the
activities of BARD, Dr. Patil distributed some booklets of the institute and programme of the
visit to the study visit members. The visit included documentations of observations on
different units and departments of dairy development. The salient features of the visit are
given as follows:
NDRI was established at Bangalore in 1923. Later on NDRI was shifted to the present
location at Karnal in 1955. It has two regional stations, one at Bangalore and the other at
Kalyani for providing region-specific support suited to their agro-climatic conditions. The
institute is also a Deemed University for implementing its educational programmes.
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The goal of the institute is to provide Research and Development (R&D) support for
generation and dissemination of knowledge towards improved national milch heard for milk
production enhancement, greater productivity of dairy industry and management aspects of
the dairy profession leading to the social, economic and environmental benefits to the nation
as well as contributes towards manpower development.
Picture-1: Dr. G. R. Patil, Joint Director (Academic) and Dean, NDRI,
Karnal Presenting the Activities of the Institute on 19 August 2013
The institute is mandated with i) conducting research in the areas of dairy production,
processing and marketing, ii) demand driven `Human Resource Development’ to meet the
requirements of dairy industry and R&D institutions, and iii) disseminating innovative dairy
production and processing technologies for socio-economic transformations.
a. Organizational Structure: In relation with the administration pattern of the Deemed
University, the institute is managed through various policies and decision making bodies’ viz.
Board of Management, Research Advisory Committee, Academic Council, Executive
Council and Extension Council. The Director is the Chief Executive Officer who is assisted
by the Joint Director for managing research, academic and extension functions. The Institute
has three major areas of R & D activities viz. i) Dairy Production, ii) Dairy Processing, and
iii) Dairy extension/Management. All the R &D activities are managed through thirteen
Research Divisions and Sections, namely, Diary Cattle Breeding, Livestock Production and
Management, Dairy Cattle Nutrition, Forage Research, Dairy Cattle Physiology, Animal
Biochemistry, Animal Biotechnology, Dairy Technology, Diary Engineering, Dairy
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Chemistry,
Dairy Microbiology, Dairy Extension and Dairy Economics, Statistic and
Management at the main station and its two regional stations. The Institute also has an
Agricultural Technology Information Centre (ATIC), Krishi Vigyan Kendra and Diary
Training Centre and Animal Breeding Research Centre. The institute has infrastructure
consisting of central facilities such as Livestock Farm, Forage Research and Management
Centre, Animal Health Complex, Model Dairy Plant, Technology Business Incubator,
Experimental Diary Plant Consultancy Unit, Library and National Bio-information Centre,
Computer Centre. The Institute presently has manpower strength of 153 scientists, 283
technicians, 155 administrative and 580 skilled supporting staff.
b. Research and Development: Presently a total number of 72 in-house research projects are
in operation. NDRI has close cooperation in getting external funding from most of the
leading national funding agencies i.e. Department of Biotechnology (DBT), Department of
Science and Technology (DST), National Dairy Development Board (NDDB), National
Bureau of Agriculturally Important Micro-organisms (NBAIM), National Fund for Basic and
Strategic Research on Agriculture (NFBSRA), Ministry of Food Processing Industries
(MFPI), Department of Atomic Energy (DAE), Indian Council of Medical Research (ICMR)
and Department of Animal Husbandry and Dairying (DAHD).
i) Livestock and Fodder Farm: The institute possesses an elite herd of over 16,000 dairy
animals, which mainly included cattle and buffaloes. The institute serves as a nucleus stock
of superior germplasm for its propagation and dissemination to various agencies in different
states of the country. It also caters to the requirement of milk and experimental animals for
various research projects. Surplus milk is utilized for running experimental dairy products.
Karan Fries crossbred cows (Tharparkar X Holstein Friesian) development by this institute is
currently producing over 4,000 litres of milk per lactation. Further, Sahiwal cows and Murrah
buffalo produce over 2,100 litress of milk per lactation. These lactation yields are much
higher than the national average i.e. 1,050 liters. The highest peak yields of 44 and 46.5 kg
have been recorded in Karan Swiss (Sahiwal X Brown Swiss) and Karan Fries respectively.
Through consistent selection, the indigenous cattle breeds i.e. Sahiwal and Tharparkar have
been improved and the highest peak yield of 23 and 19.5 kg milk per day have been obtained
in these two breeds, respectively. In Murrah, the best buffalo breed of the world, the peak
milk yield of 25.1 kg in a day has been achieved. A small flock of indigenous and crossbred
goat is also maintained for conducting research and the peak milk yield of 5.4 kg per day has
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been registered. A modern Milking Parlor System and Shelter Management System set up
recently at the Livestock Farm serve as demonstration models for the progressive farmers and
provide infrastructure for conducting research on various aspects of milk production system,
reproductive performance, growth profile and nutritional requirements for quality milch
breeds.
The entire fodder need of the farm is met by cultivating fodder crops in over 300
hectares of land and under a Revolving Fund Scheme on Seed Production of Fodder Crops,
good quality seeds of improved varieties of fodder crops are produced in 40 hectares area and
supply to farmers for enhancing the fodder yield. Initiatives have also been taken to
modernize the irrigation system by brick lining of irrigation channels for improving the
conveyance efficiency of limited quantity of irrigation water available. Systematic and
computerized data and records on all aspects of dairy production and management are being
maintained and used by students, researchers and the farm managers.
The dairy farm of the institute is one of the most modern and well managed farms in
the country, which has been serving as model training cum demonstration unit for the
benefits of dairy farmer’s organizations. Training on scientific dairy farming and consultancy
for setting up of commercial dairy farming enterprise is also provided to budding
entrepreneurs, banking institutions, NGOs and government agencies.
ii) Artificial Breeding Research Center: The Artificial Breeding Research Center (ABRC),
has the infrastructure and capacity for managing 146 bulls (Sahiwal, Tharparkar, Karan-Fries
breeds of cattle and Murrah breed of buffalo) and is the largest Bull Breeding Center in the
country. This center is playing a proactive role in achieving genetic improvement of dairy
cattle and buffalo and reproduction management of male animals/breeding bulls, production,
processing evaluation and preservation of superior male germplasm, teaching of postgraduate students, training and consultancy on male animal reproduction and dissemination
of superior germplasm of cattle and buffaloes. The ABRC maintains the co-ordination with
various departments and sections of the institute.
The centre has a seminar-cum-class room; Semen Quality Control Laboratory;
Germplasm Information Laboratory; Long range Open Bull Exercising Zone; Mist Cooling
System for reducing heat stress to breeding bulls. The center has also strengthened the
facilities for scientific management of bulls, cryopreservation facility for storage of
germplasm, semen processing laboratory, advance training facility on animal breeding and
reproduction management and frozen semen technology and dissemination of superior
germplasm of cattle and buffaloes.
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iii) Model Diary Plant and Experimental Dairy Plant: The institute has a model dairy
plant with necessary equipment and a processing capacity of 60,000 liters of milk per day.
This is an ISO 22000:2005 certified plant. The plant has been established with collaboration
of NDDB to provide training facilities to B.Tech students and scientists to carry out the
scaling up of operations for products and processes developed in research laboratories. The
institute has an ISO certified experimental dairy plant with the milk processing capacity of
10,000 liters per day. The plant is extensively used by the students, researchers and scientists
for developing new and innovative dairy products.
Revenue generated through this scheme is being utilized for development of
infrastructure of experimental diary plant. During the year 2011, the experimental diary plant
generated a revenue worth Rs. 30,31,198.
c. Education: NDRI offers educational programme, which can categorize as follows:
i)
B.Tech. (Dairy Technology), Masters in thirteen disciplines and Doctoral courses in twelve
disciplines during 2012-2013; ii) E-courses for B. Tech (Dairy Technology) degree. The ecourses for B.Tech degree progarmmes were uploaded for online delivery to various dairy
colleges and institutions; and iii) the academic session also attracted many international
students (15 Nos.) annually for training and short term education in different areas of
Dairying.
d. Extension: Extension of products of the institute can be spelled out as follows:
•
NDRI-Industry Meet was held on December 1, 2012. At this Meet, 34 technologies
development at NDRI were presented before 42 participants from 32 Industrial houses
and other stakeholders with a view to focusing for commercialization.
•
The pricing was finalized for initiating commercialization of the technologies viz.
functional processed cheese spread, buffalo-milk feta cheese, functional quarg cheese,
dietetic misti dahi, buffalo-milk set plain dahi, buffalo-milk set plain yoghurt, cowmilk set plain yoghurt, cow-milk set plain dahi, extended shelf-life functional paneer,
long-life milk cake, low-fat gulab jamun mix and Arjun herbal ghee.
•
Entrepreneurship development campaign was launched for transferring some of the
technologies that were developed in the field composite dairy foods, One Self Help
Group (SHG) namely Nirmal Dhara Mahila Dugdh Samiti was formed in village
Taprana and the women members of the SHG were trained for manufacturing of
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quality dairy products. Training was also given on testing of milk and milk products.
Women belonging to SHG named as Shagum Bakery were trained for the
manufacture of bakery products such as biscuits, buns and cakes.
•
The innovative approach entitled “Dairy Education at Farmers’ Door” initiated by
NIRD which is being continued in year 2012-13. Under this programme, a team of
NDRI scientists including subject matter specialists from production, processing and
management groups organize Dairy Education at Farmers’ Door to various’ villages
on 2nd Saturday of every month.
•
It organized 272 training programmes (both on campus and off campus) on different
aspects of dairying and allied fields of agriculture such as crop production,
horticulture, bee keeping and fisheries apart from home science for the benefit of
8969 farmers, farm women, rural youth and entrepreneurs across the country.
•
During 2012-13, 25,375 farmers from 16 states and one union territory visited ATIC,
which also included 216 delegates from 9 different countries. Different technological
interventions in the area of nutrition, breeding, physiology and health care were
disseminated to 23,375 farmers. It can be mentioned here that 6,478 stakeholders
suggested different technological interventions in the area of livestock production
management and milk processing.
•
Forty three women empowerment trainings courses and campaigns in the field of
dairying and home-science were organized with the objective of creating awareness
and enhancing skill in these areas.
•
A new initiative was taken to establish laboratory for women for imparting training to
different self-help groups. This lab was established with the objective to create
awareness and impart skills in the field to dairy processing and fruit and vegetable
preservation and also mobilize these groups to take up vocation in these areas.
•
NDRI organized 57 infertility and veterinary aid campaigns, exposure visits at nearby
villages viz., Nasirpur, Nasirpul Tial, Vazidpur, Kulwasheri, Budhakherea and
Ganjogarhi.
15
Picture-2: Team Visiting the Semen Processing Laboratory of Artificial
Breeding Research Center, NDRI, Karnal on 19 August 2013
C. National Dairy Development Board
The study team arrived at National Dairy Board (NDDB) in the evening of 21st
August 2013. The team visited different sections of NDDB, well reputed “Amul” and a
primary milk cooperative of milk producer during 22-23 August 2013. The summary of the
orientation is as follows:
NDDB is an institution of national importance was set up by an Act of Parliament of
India. The main office is in Gujarat with regional offices throughout the country. NDDB's
subsidiaries include Mother Dairy, Delhi and Indian Immunological Ltd, Hydrabad. It was
founded by Dr. Verghese Kurien. The National Dairy Development Board (NDDB) was
established in 1965, fulfilling the desire of the then Prime Minister of India — the late Lal
Bahadur Shastri — to extend the success of the Kaira Cooperative Milk Producers' Union
(Amul) to other parts of India. That success combined the wisdom of farmers with
professional management to capture liquid milk successfully. The major success of this
mission was achieved through the World Bank financed Operation Flood, which lasted for 26
years (1970 to 1996) and was responsible for making India the world's largest producer of
milk. This operation was started with the objective of increasing milk production and
augmenting farmer’s income and ensuring fair prices to consumers.
16
NDDB has now integrated 96,000 dairy co-operatives known as Anand Pattern that
linking the village society to the state federation in a three-tier structure. NDDB launched its
Perspective Plan 2010 with four thrust areas: Quality Assurance, Productivity Enhancement,
Institution Building and National Information Network.
Picture-3: Dr. Amrita Patel, Chairman and other Senior Officials of NDDB Exchanged
Views on Dairy Development in India and Bangladesh on 23 August 2013
a. Farmer Empowerment: NDDB empowered millions of small and marginal farmers
through village dairy cooperatives. Amul pattern societies across the country made farmers
socially and economically developed.
a.
b. Women Empowerment: About 48% of the total population of India is women. National
Dairy Development Board replicates "White Revolution" movement among small farmers,
women and makes them involved in socio-economic activities
[[
c. Strengthening Cooperative Business: NDDB supports dairy cooperatives to meet the
challenges in a market- driven economy through better governance and efficient
management. Training programmes for milk procurement personnel were also conducted. It
helps them upgrading and updating their skills to enable them contributing more effectively
towards the structure and processes adopting best practices in the areas of clean milk
healthcare and management practices.
17
During 2011-12, the cooperative milk unions together procured 28.7 million kg of milk per
day compared to 26.2 million kg per day in the previous year, registering an annual growth of
around 9.5 per cent. Liquid milk marketing by the cooperatives reached 22.9 million liters per
day compared to 22.0 million liters per day in the previous year with a growth rate of 4.1 per
cent.
A number of milk unions are increasingly creating Women Dairy Cooperative
Societies (WDCS). By March 2012, unions across the 20 dairying states have reported 18,954
WDCS with a total membership of 4.26 million across the country.
Of the total women members in dairy cooperatives, 2,35,000 have attained leadership
roles on management committees of Village Dairy Cooperative Society and 230 of these have
attained representation on he Boards of Directors of milk unions and federations.
d. Enhancing Productivity: Building infrastructure for genetic improvement of animals and
providing balanced nutrition, healthcare and improved management services makes it
possible to achieve higher levels of productivity in animals and enhance the income of
farmers. Breeding Programmes are undertaken to enhance the productivity and induction of
improved genetics.
i) Production of High Quality Merit Bulls: Seven field progeny testing programmes
initiated by NDDB in partnership with different milk unions were carried out throughout the
country for testing their dams. During the year 2011-12, 51 high genetic merit bulls procured
and reared under these programmes and were distributed to various semen stations.
ii) Indigenous Breed Development: The implementation of the Rathi breed development
programme in 100 villages of Bikaner and Shir Ganganagar districts of Rajasthan and the
Kankrej breed development programme in partnership with Banaskantha Milk Union in 88
villages in Banaskantha district of Gujarat continued during the year 2011-12. Under the
Rathi breed development programme, 33 Al centres covering 100 villages carried out 4,116
inseminations during the same year.
Efforts by NDDB to preserve indigenous breeds of cattle and buffalo by in vitro
methods in the form of frozen embryos and frozen semen continued in cattle breeds namely
Sahiwal, Red Sindhi, Gir, Rathi, Kankrej, Khillar, Hariana and Tharparkar and buffalo breeds
namely Murrah, Jaffarabadi, Pandharpuri and Toda.
18
e. Information Network for Animal Productivity and Health (INAPH): INAPH is being
used by seven progeny testing programmes, two pedigree selection programmes and a ration
balancing programme spread across eight states, 33 districts and 5,069 villages of the
country. Around 1,786 users are using the application for different services through 332
handheld devices and 139 note books. A total of 10.42 lakh animals belonging to 3.43 lakh
farmers have been registered till date.
f. Frozen Semen Production and Al Services: The three NDDB- managed semen stationsSabarmati Ashram Gaushala (SAG), Bidaj Animal Breeding Centre (ABC), Salon and
Rohtak Semen Station together produced 16.18 million frozen semen doses produced in the
country. In addition to this, eight other semen stations in the cooperative sector produced
13.15 million semen doses. During the year, IndiaGen carried out 1.15 million inseminations
at the farmer’s doorstep, through their 1,359 mobile Al units. The cooperative unions
performed 13.2 million AIs through 17,530 AI centers covering 50,375 villages.
g. Animal Nutrition: NDDB initiated a large pilot programme in the villages of Banaskantha
district to study the impact of implementing the Ration Balancing Programme (RBP) on a
larger scale which covered 12,777 animals in 160 villages. Technical officers and trainers of
the Banaskantha Union were trained at NDDB. The trainer, inturn, trained 160 Local
Resource Persons (LRPs) selected from these villages to carry out ration balancing for
individual animals at the milk producers’ doorstep, using note books loaded with the RBP
software. The LRPs were trained in their local language on the basic aspects of animal
feeding, software handling, formulation of least-cost balanced ration, using locally available
feed resources and area-specific mineral for five days in classroom sessions and on-the-job
training at the farmers’ doorstep for a period of five days. The training included ear-tagging,
measurement of body weight and working out a least- cost balanced ration by weighing
different feeds and fodder actually ration, by weighing different feeds and fodder actually
being fed by the farmers to their animals. All the animals covered were ear-tagged for
identification and the data recorded in the central server.
h. Developing Human Resources: A focus on planning for skilled and trained human
resources is critical for successful implementation of the National Dairy Plan. NDDB
continues to provide special emphasis on growing human resource needs with a major focus
on capacity building through training and development as a preparatory task for effective and
timely implementation of the National Dairy Plan.
19
Training on the use of the ration balancing software was conducted for two batches to
ensure effective implementation of training programmes, training capabilities of trainers
within NDDB were assessed. Training programmes on “Lead Trainer” modules with the
objective of owning training skills were conducted. An initiative to create awareness amongst
the employees of NDDB on the objectives of NDP and its sub-components was taken place in
the form of an interactive workshop.
In addition, training to the milk producers, village resource persons, boards of
directors of milk unions, staff and officers working in cooperative dairies are continuing
across the country to equip them with the latest knowledge and skills and a positive attitude
for achieving the organization’s desired objectives.
Visit to a Primary Cooperative Society: Visit to Sandesar Milk Producers’ Co-operative
Society Ltd., Sandesar (ISO 9001-2008 accredited), Anand, Gujarat on the 23rd August 2013
General Information of Sandesar Milk Cooperative Society as on 31/03/2013
Area of
Operation
Population
No. of households
Agriculture land
Pasture land
Irrigated land (%)
Irrigation facility
Entire Sandesar Village
6,950
Local
Institutions
1,205
1,635 acres
17 acres
100
Canal, well with Main crops
electric
motor,
Tubewells
Gram Panchayat, Ladies Club,
Youth Club, Trihuvandas
Foundation Health Centre,
Kindergarten, Primary School,
Girls and Boys High School
Wheat,
Paddy,
Tobacco,
Banana
Animal Population
Animal
Buffalo
Cow
Breed and Numbers
Surti and Murrah: 545
Indigenous: 10 Cross bred: 309
Average Fat %
7.3
4.0
General Information about the Dairy Co-operative Society (DCS)
Date of
07.03.1952 Chairman Shri Chimanbhai Jivabhai Patel
Establishment
Date of registration 09.04.1952 Secretary
Shri Harishbhai Ravjibhai Patel
Audit Class
A
Tel. No.
02692-281624, 281024
Ave. milk procurement lit/day: Total 2,904
Buffalo: 1,049 and Cow: 1,855
Capacity of bulk milk cooler: 2,000 (+) 3,000 = 5,000 lit
Society procured around 90% milk of village surplus during 2012-13
20
Information about Members of the Society
Total members: 935
Landless farmers: 258
Men: 868
Women : 67
Possessing upto 2 hectare: 522
above 2 hectare: 155
Contribution towards Community Development Works by DCS
(Figures are in cumulative)
Particulars
Sl. No.
01
02
03
04
05
06
07
08
09
10
11
12
13
14
Total
Amount
(Rs.)
98,306
2,578
70,204
14,923
19,527
5,307
4,501
5,502
50,000
1,04,500
1,30,561
52,449
3,920
5,001
5,67,279
Construction of Educational Institutions
Charotar Education Trust
Sweets and Prizes to children
Contribution to water works
Gram Panchayat
Darbar Gopaldas TB Hospital
Flood Relief
Sardar Patel Medical Trust
Panchvait, Garden Development
Tribhuvandas Foundation
Contribution for cattle health, insurance etc.
Productivity Enhancement
Construction of Cattle Mangers
Indian Army Kargil Fund
Business of the Society at a Glance
Year
Members
1952-53
2002-03
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
(no.)
197
872
907
907
935
935
935
936
Paid up Reserve
Share
Fund
(Rs.)
(Rs.)
2,425
435
8,680
7,32,273
10,430
7,90,882
10,430
8,28,778
10,710
8,74,124
10,710
9,21,253
10,710
9,47,869
10,710
10,21,665
21
Milk Purchase
Net Profit
(in lits.)
1,25,753
4,10,721
10,08,535
10,59,167
11,05,739
10,11,322
10,16,009
10,60,622
(in. Rs.)
10,456
72,172
1,38,714
1,81,273
1,88,516
74,464
2,92,615
1,72,723
(in. Rs.)
66,558
40,56,324
1,52,66,359
1,62,85,550
1,84,24,332
2,00,06,047
2,38,94,264
2,66,38,935
Year
Price
Average
Difference & Bonus + Price
Bonus Paid to Difference
Members
Paid
to
(In Rs.)
Members/lit.
(In Rs.)
1952-53
2002-03
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
5,659
6,49,011
33,58,594
40,71,387
49,74,579
60,01,814
66,90,393
74,58,901
0.04
1.58
3.33
3.84
4.49
5.93
6.58
7,03
Ave. Return per Liter to
Milk Producers including
Price Difference
(In Rs.)
Buffalo Cow
39.69
27.89
BM+CM
0.57
11.45
15.81
18.48
19.21
21.16
25.71
30.10
Sale of Cattle
Feed
(In 70 kg.
bags)
3,430
7,254
7,609
8,066
7,310
8,223
8,532
Animal Husbandry Activities
Year
AI Performed
(no.)
Animals
Animals
Examined for Found
Pregnant
PD
Results in %
(Animals
Pregnant/Animal
s Examined for
Pregnancy)
B
C
B
C
B
C
B
C
1952-63
600
181
2002-03
1492
494
331
99
146
57
44
2007-08
1,287
403
313
104
228
86
72
2008-09
1,093
598
332
216
264
198
79
2009-10
1,012
624
368
182
305
171
82
2010-11
954
540
307
181
254
169
83
2011-12
1,004
611
351
203
297
194
84
2012-13
1,054
660
334
210
284
201
85
Artificiel Insémination (AI) Charges: Rs. 10 per animal
Emergency visits of veterinary doctor the year 2012-13: 1,450
Emergency visit charge@ Rs. 60 per visit, subsidy from DCS Rs. 20/Activities of Tribhuvandas Foundation during 2012-13
Patients treated: 1,235
Pregnant ladies treated: 141
Source: Sandesar Milk Cooperative Society, 2013
22
57
82
91
93
93
95
95
First
Aid
550
894
423
421
460
405
434
Picture-4: Study Team Visiting Sandesar Milk Producers’ Co-operative Society
Ltd. (Primary Society), Sandesar, Anand, Gujarat on 23 August 2013
D. Mother Dairy
a. Introduction: The team visited Mother Dairy, Delhi on 20 August 2013 at 10 am. The
programme was consisted of short briefings and guided visits to different sections of Mother
India. Mr. Umesh K. Chopra, Senior General Manager and Mr. Jagdish Rao, Chief Operation
Officer of Mother Dairy coordinated the visit to Mother Dairy. Mother Dairy was set up in
1974 which is wholly owned subsidiary of the National Dairy Development Board (NDDB)
of India. It is one of the best companies which is operating for commercial purposes. It offers
the products like Mother Dairy Double Toned Milk which is marketed in Delhi. Liquid Milk,
Ice Creams, Flavored Milk, Dahi, Lassi, Mishti Dahi, Ghee, White Butter, Table Butter,
Cheese, UHT Milk, Dhara Range of Edible Oils, Fresh Fruits and Vegetables all over the
country. In addition, two yogurts/dahis are marketed by Mother Dairy in Delhi. It also
involves in marketing of frozen vegetables and fruit juices at a national level through its sales
and distribution networks.
Mother Dairy Milk (bulk vended) is fortified with vitamin A with 2000 IU per liter as
social accountability. This programme started with the Mother Dairy, Delhi, in February
1980. Thereafter the dairy continues this programme on their own without having any
financial assistance from the government since it is felt that Bulk Vended Milk (BVM) is
generally consumed by the middle lower middle and poor class population. It is found that
the dietary practices adopted by these classes are deficient in Vitamin A. Mother Dairy
sources major part of its requirement of liquid milk from dairy cooperatives.
23
Mother Dairy purchases fruits and vegetables from farmers and growers associations.
It also maintains contacts with oilseeds grower cooperatives that manufacture and pack the
Dhara range of edible oils by undertaking to nationally market all Dhara products. Mother
Dairy markets approximately 4.8 million liters of milk daily in the markets of Delhi,
Mumbai, Saurashtra and Hyderabad. They have a market share of 66% in the branded sector
in Delhi where it sells 2.3 million liters of milk daily and undertakes its marketing operations
through around 14,000 retail outlets and 845 exclusive outlets. As on April 2013, the Mother
Dairy commands 71% and Amul commands 29% of market in Delhi.
The company’s derives significant competitive advantage from its unique distribution
network of bulk vending booths, retail outlets and mobile units. Mother Dairy ice creams
launched in 1995 have shown continuous growth over the years and today boasts of
approximately 62% market share in Delhi. Mother Dairy manufactures and markets a wide
range of dairy products that include butter, dahi, ghee, cheese, Ultra High Temperature
(UHT) milk, lassi and flavored milk. Most of these products are available across the country.
The company markets an array of fresh and frozen fruit and vegetable products under
the brand name SAFAL through a chain of 400+ fruit and vegetable shops and more than
20,000 retail outlets. Fresh produce is handled at the company’s modern distribution facility
in Delhi with an annual capacity of 200,000 MT. An Individually Quick Frozen (IQF) facility
with capacity of around 75 MT per day is also operational in Delhi. A fruit processing plant
with a handling capacity of 120 MT per day, a 100% Export Oriented Unit (EOU) was set up
in 1996 at Mumbai aiming at supplying of quality products in the international market. To
meet the increasing demand another processing plant has been set up at Bangalore with fruit
handling capacity of around 250 MT per day.
b. Development of Mother Dairy: The Mother Diary lights up millions of farmers’ to live
with prosperity and self reliance. Everyday it procures and markets over three million liters of
milk. Mother Diary is one of the largest liquid Milk Company in Asia. It started its operations
in 1974 under the Operation Flood Programme of the National Diary Development Board.
Mother Dairy collects required liquid milk from diary co-operatives and producer institutions.
Mother Dairy sells more than 29 lakh litres of milk per day, out of which about 11 lakh litres
of milk is sold as bulk vended milk and another 18 lakh litres of milk is sold in poly pack in
five different variants in Delhi. Apart form Delhi, Mother Dairy markets its Poly pack milk in
Gujrat, Andhra Pardesh, Maharashtra, Western UP and Haryana.
24
Picture-5: Mr. Umesh K. Chopra, Senior General Manager, Mother Dairy,
Delhi Presenting the Activities of the Organization on 20 August 2013
c. Procurement of Milk: Mother Dairy collects major part of fresh milk from state cooperatives and New Generation Co-operatives (NGC). Milk received from individual
producer is checked through all basic quality parameters. Milk is then supplied to the Dairy
units through insulated milk tankers at< 4 deg C through road and rail tankers and thus,
retaining the freshness of milk. All milk received at diary units undergoes more than 15
stringent Quality checks before its processing. These include organoleptic (Taste, Odor and
Appearance), Physico-chemical (e.g. Temperature, Foreign matter, % Fat, % SNF, %
Acidity, % Protein etc.), microbiological tests. It also carries out tests for identifying presence
of any adulterations in milk (e.g. Formalin, Urea, Starch, Sugar, Glucose, Maltodextrin,
Nitrate, Salt, Hydrogen Per- oxide, Neutralizer, Ammonium Compounds and Fat
Adulterations).
Mother Dairy by principal (a) Ensures milk producers and farmers receive regularly
and continually receive remunerative prices; and (b) Uphold institutional structures that
empower milk procurement.
d. Processing of Milk: Processing of milk is done through microprocessor technology which
integrates and completely automates all functions of milk processing and ensures high
product quality, reliability and safety. The various stages of milk processing are given below:
25
i) Clarification: The chilled milk from the silos and after heating goes to the clarifier. The
clarifier spins the milk at very high speed, removing all dust particles that tare invisible to the
naked eye.
ii) Standardization: Milk from different breeds of cows and buffaloes may vary in its
composition. Hence, to make uniform in composition, before supply to the market, it is
standardized by raising or lowering its fat and SNF percentage present in the milk to a desire
level, so as to delivery the milk to consumers as per prescribed forms.
iii) Homogenization: In this process, the milk is processed at a very high pressure during
which the large fat globules present in milk are broken down into tiny droplets. The milk fat
gets evenly distributed in the milk and milk become whiter and thicker. Milk is homogenized
for consumers who do not like cream layer on top. Homogenization improves palatability of
milk and is easily digestible.
iv) Pasteurization: This involves heating the milk at 72 degree Celsius for 15 seconds and
then rapidly cooling it down to 4 degree Celsius. This process kills all the pathogenic bacteria
present in the milk and making milk safe for consumption. Pasteurization unlike boiling does
not affect the nutritional value of the milk.
v) Distribution of Milk: After processing, milk dispatched in hygienic and sterilized milk
tankers or packed in food grade material and transported under cold chain to the nearest milk
shops. Everyday as part of quality assurance process, milk samples are collected from milk
shops randomly and are tested. The above processes help maintaining stringent quality
control standards, in order to ensure that the milk sells is fresh, pure and healthy.
After dispatching, it is important to keep a note of its availability. Company’s milk
tanker is fitted with a wireless set or GPS. This helps in close monitoring of milk distribution.
The Control Room monitors the efficient distribution of milk to all the retail outlets across
the city. It organizes the tanker routes so that shops do not run out of milk. As soon as the
person in the Control Room informs that a shop is running out of milk, he or she contacts the
tanker nearest to the shop on wireless which then delivers the milk to the shop.
e) Distribution Formats for Brining Mother Dairy Closer to Home
i) Milk Shops: Milk shops are spread across the length and breadth of city, where the Mother
Dairy Booths are very familiar landmarks of any neighbour. With fresh supply of milk and
other products, these booths ensure nutrition needs for the city dwellers.
ii) Franchise Shops: These Franchise Shops are a boon to customers specially
conceptualized to reach previously untapped areas.
26
iii) Kiosks: A recent innovation, these kiosks cater to a specific area such as housing
societies etc. With the purest milk readily available all the time.
iv) Insulated Containers: These extremely low-cost containers are operated by private
retailers which can store upto 600 liters of milk in one container.
v) Container-on-wheels: Container-on-wheels or simply `Cow’ is the mobile solutions of
availability of milk. It also presents the economically weaker section of the society a viable
source of income.
vi) Bulk Vended Milk/Token Milk: Mother Diary Bulk Vended Token Milk is healthy and
tasty. It is thicker and easier to digest. It is fortified with Vitamin A.
vii) Poly Pack Milk: Packaging of milk has undergone remarkable innovations in the past
few decades. Tamper proof, hygienic and labeled pouches/packs have replaced the traditional
bottle. These innovative methods of packaging milk have rendered it free from adulteration
and tampering and have also made it possible to provide consumers with different variants of
milk labeled and color coded to their requirements.
viii) Full Cream Milk: Mother Dairy full cream milk-wholesome and healthy packed with
energy and nutrition that’s essential for growing kids. It makes them stronger form within and
keeps children actives and healthy.
ix) Standardized Milk: Mother Dairy Standardized Milk is tasty and malaidar as it has
balanced amount of cream at affordable price.
x) Toned Milk: Mother Dairy Toned Milk is a blend for good health and wholesome taste.
It’s a choice for people in search of a nutritionally balanced diet that does keep with
comprehensive taste.
xi) Doubled Toned Milk: Mother Diary Double Toned Milk is tasty and nutritious and with
low fat content. All calorie conscious people who love the taste of milk but are wary of its
cream content are satisfied with this milk.
xii) Skimmed Milk: In Skimmed Milk fat content is low. But it has all the nutrients of Milk.
E. Amul
a. Introduction: The study team visited the head office of famous “Amul” in Anand on 22
August 2013 at 2:30 pm. Mr. S. S. Sundaran, Senior Executive (Public Relations), Amul
provided briefings on Amul followed by visits to different sections of Amul.
27
Amul is an Indian dairy cooperative in Anand district of Gujarat, India. The cooperative is sometimes referred to as Anand Milk Union Limited. It was established in 1946.
It is a brand managed by a cooperative body, the Gujarat Co-operative Milk Marketing
Federation Ltd. (GCMMF), which is jointly owned by 3 million milk producers of Gujarat.
Amul took the main role of India's White Revolution, which made the country the
world's largest producer of milk and milk products. In the process Amul became the largest
food brand in India and has ventured into markets overseas.
Dr Verghese Kurien, founder-chairman of the GCMMF for more than 30 years
(1973–2006), is credited with the success of Amul. Now the organization has 750 employees
and earned revenue of US$2.15 billion in 2011-12.
b. Development of Amul: The Kaira District Co-operative Milk Producers' Union Ltd. was
registered on 1 December 1946 in Anand district of Gujarat as a response to the exploitation
of marginal milk producers by traders or agents of the existing dairy called the Polson dairy.
Milk producers had to travel long distances to deliver milk to Polson. The prices of buffalo
and cow milk were arbitrarily determined. Moreover, the government had given monopoly
rights to Polson to collect milk from Anand and supply it to Bombay city.
Angered by the unfair trade practices, the farmers of Kaira approached Sardar
Vallabhbhai Patel under the leadership of local farmer leader Tribhuvandas K. Patel. He
advised them to form a cooperative and supply milk directly to the Bombay Milk Scheme
instead of Polson (which did the same but gave them low prices). He sent Morarji Desai to
organise the farmers. In 1946, the milk farmers of the area went on a strike which encouraged
them to establish cooperative to collect and process milk. Milk collection was decentralized
as most producers were marginal farmers, who could deliver, 1–2 liters of milk per day.
Cooperatives were formed for each of the villages.
The cooperative was further developed and managed by Dr.Verghese Kurien with
H.M. Dalaya. Dalaya's innovation of making skim milk powder from buffalo milk (for the
first time in the world) and later on, with Kurien's help, drove it on commercial scale, led to
the first modern dairy of the cooperative at Anand, which would compete against established
players in the market.
In June 2013, it was reported that the Kaira District Cooperative Milk Producers
Union Limited (Amul Dairy), had signed a tripartite agreement to start a dairy plant in
Waterloo village in New York. The plant will initially manufacture paneer and ghee. Amul
uses an existing dairy plant owned by Piyush Patel New Jersey-based NRI for manufacturing
of milk products.
28
c. Achievement of Amul: The GCMMF is the largest food products marketing organization
in India. It is the apex organization of the dairy cooperatives of Gujarat. Over the last five and
a half decades, dairy cooperatives in Gujarat have created an economic network that links
more than 3.1 million village milk producers with millions of consumers in India. The
cooperatives collect on an average 9.4 million liters of milk per day from their producer
members, more than 70% of whom are small, marginal farmers and landless labourers and
include a sizeable population of tribal folk and people belonging to the scheduled castes. The
turnover of GCMMF (AMUL) during 2010–11 was US$1.5 billion. It markets the products,
which is produced by the district milk unions in 30 dairy plants. The farmers of Gujarat own
the largest dairy plant in Asia — the Mother Dairy, Gujarat — which can handle 3.0 million
liters of milk and process 160 MTs of milk powder in a day.
d. The Three-tier "Amul Model": The Amul Model is a three-tier cooperative structure.
This structure consists of a dairy cooperative society at the village level affiliated to a milk
union at the district level which inturn is federated into a milk federation at the state level.
Milk collection is done at the village dairy society, milk procurement and processing at the
District Milk Union and milk and milk products marketing at the state milk federation. The
structure was evolved at Amul in Gujarat and thereafter replicated all over the country under
the Operation Flood programme. It is known as the ‘Amul Model’ or ‘Anand Pattern’ of
dairy cooperatives.
29
Villages Dairy Cooperative Society (VDCS)
The main functions of the VDCS are:
• Collection of milk from the producers of the village and pay prices on the basis of
quality and quantity;
• Providing support services to the members like veterinary first aid, artificial
insemination services, cattle-feed sales, mineral mixture sales, fodder and fodder
seed sales, conducting training on animal husbandry and dairying;
• Selling liquid milk for local consumers of the village ; and
• Supplying milk to the District Milk Union.
District Cooperative Milk Producer's Union (Dugdh Sangh)
The main functions of the union are:
Procurement of milk from the village milking societies of the district;
• Arranging transportation of raw milk from the VDCS to the Milk Union;
• Providing input services to the producers like veterinary care, artificial
insemination services, cattle-feed sales, mineral mixture sales, fodder and fodder
seed sales;
• Conducting training on cooperative development, animal husbandry and dairying
for milk producers and conducting skill development and leadership development
training for VDCS staff and Management Committee members;
• Providing management support to the VDCS along with supervision of its
activities;
• Establish chilling centres and dairy plants for processing the milk received from
the villages;
• Selling liquid milk and milk products within the district;
• Process milk into milk products as per the requirement of State Marketing
Federation; and
• Decide prices of milk to be paid to milk producers as well as the prices of support
services provided to members.
State Cooperative Milk Federation (Federation)
The main functions of the federation are as follows:
• Marketing of milk and milk products processed/manufactured by Milk Unions;
• Establish a distribution network for marketing of milk and milk products;
• Arranging transportation of milk and milk products from the Milk Unions to the
market;
• Creating and maintaining a brand for marketing of milk & milk products;
• Providing support services to the Milk Unions and members like technical inputs,
management support and advisory services;
• Pooling surplus milk from the Milk Unions and supplying it to deficit Milk
Unions;
• Establish feeder-balancing dairy plants for processing the surplus milk of the Milk
Unions;
• Arranging common purchase of raw materials used in manufacture/packaging of
milk products;
• Decide on the prices of milk and milk products to be paid to Milk Unions;
• Decide on the products to be manufactured at Milk Unions and capacity required
for the same;
• Conduct long-term milk production, procurement and processing as well as
marketing planning;
• Arranging finance for the Milk Unions and providing them technical know-how;
• Designing and providing training in cooperative development and technical and
marketing functions; and
• Conflict resolution and keeping the entire structure intact.
30
There are now 176 cooperative dairy unions formed by 1,25,000 dairy cooperative
societies with a total membership of about 13 million farmers on the same pattern, who are
processing and marketing milk and milk products profitably. This process has created more
than 190 dairy processing plants spread all over India with large investments by these
farmers’ institutions. These cooperatives collect approximately 23 million kg of milk per day
and pay an aggregate amount of more than Rs.125 billion to the milk producers in a year.
Picture-6: Mr. S. S. Sundaran, Senior Executive (Public Relations), Amul
Presenting the Activities of the Organization on 22 August 2013
Impact of the "Amul Model": The effects of Operation Flood Programme are appraised by
the World Bank in an evaluation report. It has been proved that an investment of Rs.
20 billion over 20 years under Operation Flood in the 1970s and 80s has contributed in
increase of India’s milk production by 40 million metric tones (MMTs), i.e., from about
20 MMT pre-Operation Flood to more than 60 MMTs at the end of Operation Flood.
Thus, an incremental return of Rs. 400 billion annually have been generated by an
investment of Rs. 20 billion over 20 years. India’s milk production continues to increase and
now stands at 90 MMTs. Despite this fourfold increase in production, there has not been a
fall in the prices of milk during the period while production has continued to grow.
Due to this movement, the country’s milk production tripled between the years 1971
and 1996. Similarly, the per capita milk consumption doubled from 111 gms per day in 1973
to 222 gm per day in 2000.
31
Achievements of GCMMF
3.1 million milk producer member families of 15,760 village societies
15 District Unions
9.4 million liters of milk procured per day
US$2.3 million- disbursed in cash daily
GCMMF is the largest cooperative business of small producers with an annual
turnover of US$810 million
The government of India has honored Amul with the "Best of all Categories Rajiv
Gandhi National Quality Award".
Largest milk handling capacity in Asia
Largest cold chain network
48 sales offices, 5000 wholesale distributors, 7 lakh retail outlets
Export to 37 countries worth US$23 million
Winner of APEDA award for eleven consecutive years
Picture-7: Team Members are with Mr. S. S. Sundaran, Senior Executive (Public
Relations), Amul at Main Office Building of Amul on 22 August 2013
The Amul Brand: The major markets of Amul are in USA, West Indies, and countries in
Africa, the Gulf Region, and SAARC neighbours, Singapore, The Philippines, Thailand,
Japan and China, and others such as Mauritius, Australia, Hong Kong and a few South
African countries. In 2013, Amul was named the Most Trusted brand in the Food and
Beverages sector in The Brand Trust Report, published by Trust Research Advisory.
Products: Amul's products includes milk powders, milk, butter, ghee, cheese, Misti Dahi,
Yoghurt, Buttermilk, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns,
32
flavoured milk, basundi, Amul Pro brand and others. Amul Pro is a recently launched brown
beverage just like bournevita and horlicks offering whey protein, DHA and essential
nutrients. In January 2006, Amul launched India's first sports drink, Stamina, which
competes with Coca Cola's Powerade and Pepsi Co's Gatorade.
Picture-8: Display of Different Milk and Milk Products of Amul at Main
Office Building of the Organization
Picture-9: Display of the Commitment of Amul at the Main Office
Building of the Organization
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2.2 Dairy Development Performance in Bangladesh
The opportunity for development of large-scale dairy is limited in Bangladesh due to
scarcity of grazing land. However, the potential for development of smallholder dairy is high.
Over the last few years, small-scale dairy farming has increased remarkably with the support
of credit, feed, veterinary services and provision of self-insurance systems.
Small-scale dairy farming provides employment for the poorer segments of the
population. The availability of this form of traditional self-employment to rural dwellers,
particularly women, is important where there is scarcity of alternative income generating
opportunities. Smallholder dairy thus widens the scope for the poor with limited access to
land to enhance their income. Dairy animals can play a vital role in household food security,
through improved income and nutrition of the low-income groups.
Daily farming in Bangladesh is affected by huge constraints such as: (i) limited
knowledge and technical skills of smallholder dairy farmers, (ii) scarcity of feeds and fodder;
(iii) poor quality of feeds, (iv) frequent occurrence of diseases, (v) limited coverage of
veterinary services including poor diagnostic facilities, (vi) lack of credit support, (vii)
limited milk collection and processing facilities and low prices at collection points, (viii) lack
of insurance coverage, (ix) poor marketing system, (x) absence of market information, (xi)
lack of appropriate breeds, and (xii) absence of a regulatory body.
A. Milk Vita
a. Background of Bangladesh Milk producers’ Co-operative Union Limited: In 1946,
Late M. Mukhlesur Rahman, Pioneer of Dairying in Bangladesh established a Dairy Plant
with a capacity of 2,000 liters per day at Lahirimohanpur, Pabna (presently Sirajgong) with
the target to send milk products to Calcutta (India) market, which was within the easy rail
communication system. Eastern Milk Products Limited purchased this dairy in 1952 from the
original owner. In 1965, the first milk producers’ co-operative was formed entitled Eastern
Milk Producers’ Co-operative Union Limited (EMPCUL) through Government patronization
over the plant at Lahirimohanpur, which had taken specially step (1973-1978) by The Father
of nation Bangobandhu Sheikh Mujibur Rahman for the poverty alleviation and to enhance
the milk production in the country.
Bangladesh Milk Producers' Co-operative Union Ltd. popularly known by its brand
name Milk Vita was established by the Bangladesh Government in 1973. The Head Office
named “Dugdha Bhaban” of the organization. Milk Vita is a service oriented as well as
commercial organization. It is the biggest and only one co-operative based milk industry in
34
Bangladesh. Following the co-operative's acts and rules it is led by itself. It’s a profitable
organization. In spite of various limitations it is trying hard to gain self sufficiency in the
dairy sector.
Establishment of plants under Milk Vita included milk and milk product processing,
milk chilling, pasteurization of different capacities in five different locations during 19781989. These places were in Dhaka (Mirpur), Tangail, Manikgonj, Madaripur (Takerhat) and
Sirajgonj (Baghabari).
Remarkable development of Milk Vita took place during 1989-2008 when 30 (thirty)
plants on different milk processing units like milk chilling, powder processing,
pasteurization, chocolate, flavour
milk, condensed milk and UHT liquid milk were
established in 30 locations of the country. Twenty three out of these 30 plants were milk
chilling plants. Capacities of these milk chilling units were mainly 5000 litters and 1000 liters
per day (detailed in annexure-1).
b. Present Development: After the emergence of Bangladesh, based on the
recommendations from DANIDA and UNDP/FAO, a development scheme titled “Cooperative Dairy Complex’, under the pattern of AMUL, India, was initiated by the
Government of the People’s Republic of Bangladesh. The scheme had the proposal of
establishing dairy plants in the milk surplus areas already identified which are Pabna,
Tangail, Manikgonj, and Faridpur. The Government started implementation of the
programme in its First Five Year Plan (1973-78). The plants were to operate through
collection of milk by a network of milk producers co-operative societies in milk-shed areas.
The project envisages the purchase of milk from individual farmer members of the primary
milk producers’ societies, twice daily, transport of this milk to rural dairy plants of Tangail,
Manikgonj and Faridpur by a combination of various methods of transportation. After
preliminary processing at the rural plants, milk is to be transported to Dhaka in insulated road
milk tankers for processing, packaging and marketing of pasteurized Liquid Milk and Milk
Products. Milk collected at the Baghabrighat plant from it’s surrounding societies is
converted into Butter, Power Milk and Ghee etc. All the products however, are to be
marketed through Dhaka Marketing Unit under the brand name of Milk Vita.
Under a bilateral loan agreement with DANIDA, the Government awarded a contract
to Danish Turnkey Dairies (DTD) of Denmark to plan, design and equip 5 dairy plants on a
Turnkey basis. The total investment cost for the project amounts to Tk.1556.11 lakh out of
35
which Tk. 610.42 lakh is the foreign exchange component received as loan through Danish
Government source.
DTD supplied the machineries and completed the erection job including planning,
designing and supervision of all the five plants during the period from September 1975 to
December 1977.
The dairy plants were owned and operated by the Eastern Milk Producers’ Cooperative Union Limited along with the other two existing dairies. The nomenclature of the
organization was changed to Bangladesh Milk Producers’ Co-operative Union Limited in
1977 keeping its brand name of products the same-Milk Vita.
c. Information of Cooperative: A Village Milk Producers’ Co-operative Society consists of
three or four villages and covers an area of approximately 1.00 to 2.00 sq miles having a
marketable surplus of 180-200 liters of milk daily. Before the Primary Milk Producers’ Cooperative Society was formed, farmers had to depend on middlemen to market their milk and
as a result they were exploited in various ways, not only were they paid a low price but were
also cheated in weight. Moreover, those farmers who did not sell their milk to middlemen,
the only other outlet for them was the local market to sell their milk at a low price.
To reverse these conditions, the Bangladesh Milk Producers’ Co-operative Union Ltd.
has come up for helping the rural Milk Producers’ in organizing their own village Primary
Milk Producers’ Co-operative Society so that they can themselves become responsible for
marketing their own milk, twice daily, and no longer have to depend upon middlemen or
markets. Organization and the registration of the Milk Producer’s Co-operative Societies
commenced from October 1973 and their functioning started since 01 February 1974.
Out of those, who are registered members of Milk Producers’ Co-operative Society on
the 30th June each year, this being the end of every three financial year, a Managing
Committee is elected at the Annual General Meeting of the Society. This Managing
Committee is responsible for the administration of the Co-operative Society and work in an
honorary with capacity under the co-operative bye-laws. To become a member, a farmer has
to own a cow and has to buy a share of Tk 100 and pay an admission fee of Tk.10 only, face
value of share Tk. 2,000 each, which is belong to primary society. In every financial year
distribution of dividend of the society is done as per share on its profit certificates. Share of
profit is also paid to the Government of Bangladesh as equity. At present governments’
equity is Tk. 415 million and farmers’ equity is Tk. 180 million.
36
d. Services of Milk Vita: Services provide to the Cooperators include i) Cattle Treatment,
ii) Cattle Development and management training, iii) Co-operative Management training, iv)
Balanced Cattle Feed supply services, v) Micro-Credit, vi) Vaccination, vii) Green Grass
Cutting and seeds of grass, viii) Artificial Insemination, ix) Higher milk price at the farmer
level, and x) Guaranteed market of milk.
e. Activities of Milk Vita: The co-operative dairy complex has succeeded in bringing
together over 2,00,000 farming households into the fold of 1705 village milk producers’ cooperative societies covering about 21 district in 28 milk-shed areas. As a highly perishable
commodity it has provided cash income of about Tk.10,000 per household per annum
benefiting about 10,00,000 members of these households. In addition to cash income from
sale of milk, the members of primary milk producers’ co-operative societies are getting
patronage dividend of the profit earned by these societies.
The infrastructure of the producers’ owned co-operative is not so limited to milk
purchase only from the farmers, but it also provides an institutional base at the village level
for active farmer participation in a number of other development activities, particularly for
erective improvement of cattle and raising milk production in the country ensuring the
subsidiary income of poor, landless and marginal farmers. During the last few years, the
organization collected 325 million liters of milk from the rural areas which resulting cash
flow of almost Taka 9,750 million from urban cities to the rural farmers. Total milk
production of the country is approximately 27 lakh tons of which BMPCUL handles only 2%
annually.
Extension activities contributed tremendously in the upliftment of the primary milk
producers’ co-operative societies. This has provided additional income of about Tk. 10,000 to
each of the members. The milk producing farmers have got the opportunity to build-up their
share-capital and thus they accumulated Tk.180 million. The job opportunity of about 6,000
persons has been created through society business activities. So far more then 1,000 numbers
of societies have established their own office houses.
The green fodder cultivation and use of those for the cattle have been well accepted
by the farmers. The cultivation of napier, para, EPIL-EPIL, cow-pea etc. at the premises of
the farmer’s homesteads and at the barren land like highway side, embankment areas have
become a common practice now. The organization has also arranged leasing of the Bathan
lands 800 acres from the Government to the milk producing farmers to facilitate the cattle
37
grazing and cattle feed production. Training programmes for the field level workers on
Artificial Insemination are conducted on regular basis.
f) Milk and Milk Products: It includes: i) Pasteurized Milk, ii) Fresh Milk, iii) Flavored
Milk, iv) Full Cream Milk Powder, Milk Vita Chocolate, v) Condense Milk, vi) Milk Vita
Cream, vii) Milk Vita Sweet Curd, viii) Milk Vita Rosh Malai, x) Milk Vita Ice-Cream, xi)
Milk Vita Lollys, and xii) UHT Milk.
g. Marketing: The ever expanding city of Dhaka used to get 2.00 to 2.50 lakh liters of milk
vita liquid milk per day which was only early 3000-4000 liters at the time of establishment of
this project. It is hoped that within the next couple of years the organization will be able to
market its capacity quantity of 4.00 lakh liters per day along with substantial quantities of
milk products. The other milk products like Butter, Ghee, Ice-cream, Flavoured Milk, Powder
Milk, Condensed Milk, UHT Milk etc. are supplied regularly in Dhaka as well as in some
other cities. New avenues of marketing with new products are also being explored to
strengthen the marketing operation.
h. Services for the Farmers: Milk Vita plays a very important role in the economic
development of milk producing farmers through purchase of milk from them and assuring
timely payment. The organization has recently started experimentation on investment of
micro credit to the farmers. To facilitate purchase of cattle by poor members of the
organization, loans are being sanctioned on easy terms. BMPCUL has invested so far an
amount of about 100 million Taka as loan with 5% service charge and repayment of the same
with installments are ensured through weekly deduction from the milk bill to release the
financial pressure of the farmers. This has assured 100% recovery of loans.
The loans are `Recycled’ along with new additions to the fund resulting in increase of
the number of recipients each year. This credit facility has made a commendable impact in
the process of milk production and as such the demands for the loans are increasing by the
poor farmers.
i) Development of Milk Productions: The success of Milk Vita leads in expanding in the
organization to plan for widening its activities further with the addition a number of facilities.
These expansions include immediate and long term issues such as i) Establishment of a
number of Milk Chilling and plants throughout the Country, ii) Cattle Breed Development
through Technology Transfer (Embryo-transfer), iii)Acquisition of bathan land from the
government for permanent use as grazing land by the milk producer farmers, iv)
38
Establishment of a cattle feed plant, v) Replication of the project in other areas of the country,
especially in the divisional; head quarters, such as Chittagong, Khulna and Rajshahi, vi)
Establishment of Disease Diagnostic Laboratory and Artificial Insemination Technology
Transfer for Milk Production Increase, vii) Establishment of Bio- Gas Plant at Village level
for Poverty Alleviation of the Country, viii) Small Cooling Unit (Capacity 500 to 1000
Liters) at Village level for milk collection of Farmers, ix) Mobile Cooling Tankers Unit
(Capacity 5,000 to 10,000 Liters) at Village level for milk collection from the farmer, and x)
Training Assistance to Human Resources Development for capacity building in the milk
production sector.
B. Pran Dairy1
The new trend of directly selling to a chilling centre has gained popularity over the
past year after Pran established 20 chilling centers in 20 villages of Chatmohor Upazila of
Pabna district with a vision to revolutionize milk production in an initiative of Bangladesh.
Dubbed as Pran Dairy Hub, the initiative of setting up collection points to encourage cattle
farming and boost milk output has already started bearing fruit.
Milk collection by Pran has doubled in just one year of establishment of chilling
centers by the processor near the farmers has also created a new zeal for cattle farming. Many
farmers have started buying cows and the existing producers seem keen to expand.
For example, Pramanik and Zahidul signed up in cattle farming after Pran set up
collection centres in their village. Ishak of nearby Bhadra area increased the size of his farm,
while another farmer Mohammad Asaduzzaman changed his decision to quit farming.
The timely initiative of Pran comes when Bangladesh suffers from a shortfall of
domestic milk production due to low productivity per cow of 200-250 litres during a 10month lactation period.
Industry analysts linked low milk yield to a slow pace in replacement of local cows
with the genetically improved ones, a lack of breeding and veterinary services and inadequate
investment in feed and fodder development. In the past decade, production of milk has
increased gradually every year because of efforts of farmers and processors to feed the
growing demand for milk promotes to economic growth and rise in people's per capita
income.
During the fiscal 2009-10, domestic production of milk grew 32 percent to 2.36
million tones (2,360 million liters) from 1.78 million tones in 2001-02 according to
1
prepared on the basis of the news of the Daily Star on 08 September 2013
39
Department of Livestock Services (DLS). Still a huge deficit still forces Bangladesh to import
thousands of tones of milk powder every year. In the fiscal 2009-10, total milk shortfall was
10.96 million tones, according to DLS.
To reduce the deficit in local milk production, Pran began to organise farmers and set
up collection centers in villages of Chatmohar in the middle of last year under its initiative of
establishing dairy hubs.
De Laval and Tetra Pak, which have technical know how and technology on milk
production and processing, extended support to Pran. In line with the target, the processor
started providing various extension services to farmers including veterinary care, animal
husbandry, dairy housing, quality feed and breed improvement through artificial insemination
(AI).
Pran workers give tips to farmers on better housing and feeding management of cows
free of cost. It includes keeping cows untied, ensuring light and passage of wind through the
shed, always keeping the water jar full to allow cows a drink anytime. Other services include
de-worming and periodical vaccination by maintaining health cards for each cow in its
intervention area. Pran also provides balanced feed prepared at its factory at cost price to
support farmers to get proper feed for cows along with seeds of fodder and training to prepare
silage to feed cattle in rainy days.
By importing semen from the US, it also gives AI services to farmers at a cost price
with the aim to improve existing breeds of cows to scale up milk yield. In addition,
establishment of chilling centers at farmers' doorsteps has cut dominance of middlemen in
milk collection allowing producers to get better prices.
Pran's support has helped boost farmers' income by increasing milk production per
cow and thus boosted its milk collection from the area 17,000 liters daily which was 8,000
liters before. With the successes at Chatmohar, Pran now plans to set up similar dairy hubs all
over the country with the vision of making Bangladesh a milk surplus country by 2020. Pran,
is now processing 100,000 liters of milk daily, wants to establish 60 dairy hubs. A second
hub has already been set up at Gurudaspur of Natore, another northern district. The third and
fourth are likely to be set up in Rangpur and Sirajganj districts. All the hubs will see
replication of Chatmohar model where full time veterinary doctors, extension workers along
with field supervisors and 20 chilling centers will be accessible by local dairy farmers.
"Cattle farming also offer scope of producing biogas and bio-fertilizer. From cow dung, skin
and hide to meat all are useful which makes dairy a profitable investment."
40
The Chief Executive Officer of Pran- RFL Group Amjad Khan Chowdhury said Pran
invests crores of Taka in establishing dairy hubs as part of its responsibility to the nation.
Yes, it (dairy hub) is going to take my money. But once it starts, it will fly," said Chowdhury,
who dreams of turning Bangladesh into a milk surplus country. "This sector is highly
neglected although its development is very much needed for Bangladesh.
C. Aarong Milk
BRAC Dairy was launched in 1998 to assist members of Village Organisations (VO),
who borrow to invest in cows. A huge amount of microfinance loans are being used to buy
livestock, which can pose high risks for borrowers owing to poor breeding, limited veterinary
services and shortages in cow feed. Aarong Dairy and Food Project provides a market to
members of the VOs by buying milk from them at a fair price, and ensures a constant and
steady demand and good return for the milk being produced by these rural entrepreneurs.
Today, BRAC Dairy not only secures fair prices for its rural entrepreneurs, but has
also expanded to offer cattle development and technical training, vaccinations and feed
cultivation facilities. BRAC Dairy collects milk from 100 collection and chilling stations
located across the country including 10 that are located in ultra-poor areas. BRAC Dairy is
currently the only dairy company in Bangladesh to have received ISO 22000 Certification,
setting an example of vigilance at every stage of dairy production, processing, and
distribution contributing to dairy products’ safety record.
The enterprise collects 102,559 litres milk daily and serves 40,000 farmers of which
64% are women. BRAC Dairy has 23 Distributors and 37 Sales centres nationwide, covering
16,000 outlets out of 23,000 and enjoying an overall market share of 22% with a dedicated
consumer base of around 500,000. More than 2 packets of Aarong Milk (a BRAC Dairy
product) every second 25 July 2011, Dhaka Aarong Milk has now achieved the International
benchmark of quality by getting the ISO 22000: 2005 certification for food safety
management.
Aarong Milk was first marketed in 1998 by BRAC Dairy - a dairy social enterprise
development organization of BRAC, to help poor rural dairy farmers protect and grow their
dairy enterprises and improve their household’s income by facilitating access to urban
markets. Inspired by this purpose, Aarong Milk has worked to build a brand that is as true to
its urban consumers as it is to rural suppliers, providing dairy products of impeccable quality
that drive its vision of a healthy and strong Bangladesh. As a part of its’ quality commitment,
Aarong Milk has ISO 22000 certification to strengthen the consumer’s confidence.
41
3. Discussions on Development Issues for Milk and Milk Products
3.1 India: India is the largest producer of milk with a production of 128 Million Tones
(MTs). The growth rate of milk production was much higher than the same for rice during the
last 5 decades. The rice production of India was 39.3 MTs in 1964-65 which increased to 100
MTs in 2012-13. In the same period the milk production was increased from 17 MTs to 128
MTs. Milk has the highest contribution to livestock output (70-73%). The cattle, buffalo,
sheep and goat population in India were 199.07, 105.34, 74 and 144 millions respectively in
2007-08. Among the cattle population cross breed constituted 16.6 percent in 2007-08. Rest
83.4 percent of cattle was indigenous. This huge population of indigenous cattle and buffalo
cow and goat are considered as huge untapped resources for milk production through genetic
development in future.
In 2010-11, the growth rate in milk production was 5 percent which in nearly 3.5-4
times higher than world average growth rate of the same. The investment in milk production
is relatively very low in India. It is to be noted that about 70% percent of milk produced here
by marginal and small farmers having 2-4 animals. Although the total production of milk in
the highest in India, still the productively of milk of cattle in India is low. The average
productivity of milch cow in India is 2012 Kg per year whereas the same with respect to
world average is 2,200 Kg per year. So, this potential is needed to be explored through policy
formulation, research and development and implementation of national dairy development
plan through effective participation of different stakeholders. The projected total milk
production of India is estimated as 142.9 MTs in 2015 and 191.3 MT in 2020. An estimate
shows that in 2009-10, the total milk production of India was 112.5 MTs of which buffalo
milk constitutes 53.37 percent, cattle 43.11 percent and goat 3.52 percent. It is to be noted
that out of 43.11 percent cattle milk, cross breed (16.6 percent) contributed 22.86 percent of
total milk and indigenous cattle breed (83.4 percent) contributed rest 20.25 percent of total
milk.
The milk processing scenario of the country shows that 65-70 percent of the milk
produced consumes as fresh liquid milk. Milk use for processing into different milk products
covers 34 percent. Dairy cooperative procures only 7.2 percent of the total milk production.
Quality semen production for cross breeding with native cattle is considered as one of
the most crucial needs for breed development as well as milk production. In 2009-10 44.6
million doses of semen were produced in 61 centers. Out of these 61 centers, government
owned 37 and rest 24 were owned by private sector. Participation of private sector in semen
42
development creates a unique environment for cattle development in India. There are 143 and
41 Frozen Semen Banks in Public and private sectors respectively in the country. In addition,
there are 49,375 and 17,673 AI centers in public and private sectors respectively. Similarly,
Cattle Breeding Farms (141 and 29), Buffalo Breeding Farms (23 and 6) and Bull Semen
Stations (42 and 13) were addressed by both public and public sector. All these activities are
the outputs of combined efforts of public, private and cooperative sectors. Research and
development efforts are considered as the driving force for the huge development of milk and
milk products. National Livestock Development Policy, NDDB, NDRI and related
organizations provide continuous efforts to mobilize and motive and provide supports to
different stakes to materialize the goal of “White Revolution”.
Strengths and Weaknesses of Diary Sector in India: It is realized that the dairy sector of
India could create a comprehensive and friendly milk production environment in different
states of India. India has become the largest milk producer country and it could ensure
constant and sustainable growth in milk production despite of comparatively limited
investment from public and private sectors. The country has mega biodiversity and huge
bovine population. The production cost of milk is comparatively low in India, which actually
the driving motivating force of huge small and marginal farmers with their 2-4 cattle each in
most cases. Provide competitive prices of milk to all small producers of milk for longer time.
The well coordinated network of milk collection and marketing keep farmers’ produces
market driven. The country has huge untapped milk resources both in cattle and buffalo to
explore in future. Because until now only about 17 percent cattle could develop through cross
breeding and even this 17 percent could produce more milk in bulk compared to milk
produced by rest of the 83 percent indigenous breed of the country. All theses advantages are
utilized through well plan with comprehensive policy and commitment of all concerned.
There are also a number of weaknesses in dairy sector of India. Among these low
productivity of indigenous breed, higher lean-flush ratio, regional imbalance in production
and little control over quality milk production are prominent. In addition, inadequate cold
chain facilities with respect to huge need, shortage of feed and fodder, continuous reduction
of fodder area, low capacity in processing and late sexual maturity of dairy animals are
notable in this regard as the future challenges of the country.
43
3.2 Bangladesh: Dairying is a labour intensive practice and requires less land unlike crop
and fish cultivation. In a small diary farm with two lactating cows create 4,080 hours of
labour force in a year. Moreover, non-farm activities like trading feeds and forages, breeding
materials, farm equipment, milk carrying etc. generate substantial amount of income in the
rural community.
Small-scale dairy farming provides employment for the poorer segments of the
population. The availability of this form of traditional self-employment to rural dwellers,
particularly women, is important where there exists scarcity of alternative income generating
opportunities. Smallholder dairy thus widens the scope for the poor with limited access to land to
enhance their income. Dairy animals can play a crucial role in household food security through
improved income and nutrition of the low-income groups.
Liberalization and market reforms in the 1990s along with increasing demand for milk
and milk products accompanying per capita income growth and urbanization and
improvements of infrastructures have created huge gap between actual milk production and
milk requirements of the country.
A few initiatives in the past like Milk Vita, Aarong and Pran have made remarkable
success in Bangladesh. The diary industry at present in Bangladesh faces complex challenges,
which could be prevented it taking advantages of emerging opportunities. Coordination
among actors in the value chains starting from milk productions to marketing the milk and
milk products (farmers, traders, processor and service providers) are very weak. These chains
tend to be very long and crate a significant degree of mistrust among the stakes ultimately
enhancing the cost and loss its competitiveness in the market. Primary producers in
Bangladesh only get about 50% of the consumers prices whereas Indian producers get 74% of
the consumer’s price. So, modernizations in terms of breed development and scientific
management with effective participation of stakes are essential in milk chains.
It is
experienced that little importance has given to quality control and standard of milk of
different producers in the value chain. There are institutes for quality control and ensuring
standards of milk but their activities are not always visible.
The opportunity for large-scale development of dairy is limited in Bangladesh due to high
price of livestock feed and scarcity of grazing land. But there is potentiality for development of
smallholders of dairy farming. Small-scale dairy farming has increased significantly with the
support of credit, feed, veterinary services and provision of self-insurance systems over the last
few years. But still required favorable conditions for small holder cannot be created in the sector
for a number of practical reasons. The following case can give an idea in this regard.
44
Cost Benefit of Milk Producing Farm: “Tanmoy Dairy Farm” is situated
in Baharampur village under Laxmikunda union of Ishwardi Sadar Upazila.
The farm was established in 1994. There are 50 milking cows and 20 female
and 12 male calves. All these animals of the farm are cross variety. Each of
the milking cows of the farm gives from 15 to 27 liters of milk per day. The
cost benefit ratio of the farm is not encouraging for motivating others to
adopt dairy business in the area. It is assumed that for producing 300 liters
of milk in a day require 50 cows of which 25-30 cows give milk daily. In
that case number of calves would be around 32. The dairy farmers in this
area are enlisted milk sellers to Arong, Milk Vitae and Pran. Milk producing
farmers supply milk daily to their respective enlisted organizations. The
price of milk in the area in normal situation (when supplying milk to the
buyer is not interfered for strike or transportation problem) varies from Tk
38 to Tk 42 per liter. But the average price of milk remains almost Tk. 40
per liter. The total sell value of 300 liters of milk becomes Tk.12,000 in a
day. But during strike of political parties the agreed buyers can not purchase
milk and the price of this milk in the local market drops instantly to Tk.
7,500.
These milk producing cows need granular feed as well as grass or green
straw daily. The price of granular feed on an average is Tk. 35 per kg. But
farmers mix up `Vushi’ with granular food to reduce this cost of granular
feed. In that case the cost of granular feed reduces to Tk. 25 per kg. One
milking cow daily needs 6 kg granular feed. So, granular feed cost for 50
milking cows stands to Tk. 7,500. The cost of granular feed for 32 claves at
the rate of 3 kg per calf per day stands to Tk. 2,400. Along with this
granular feed, straw of 1,200 bundles (in case of green grass cost is higher)
costs Tk. 3,000 (each bundle of straw cost Tk. 2.5). So, the total feed cost of
the farm stands to Tk. 12,900 daily. There are four labours in the farm.
Daily cost of these labours is Tk. 800. Electricity and related cost per day of
the farm is about Tk 100. Medicine and treatment cost of cows on an
average Tk. 100 per day. Total cost behind these cows per day is Tk.
13,900, whereas daily income from milk is Tk 12,000.
So, daily net loss of the farm is Tk. 1,900 which turns into annual loss of
about Tk, 6,93,000 of the farm. In normal time (when political disturbance is
not there) the farm meets up this loss by selling the calves. Sell value of each
of the calves is about Tk. 30,000. Income from selling of calves varies from
Tk. 9,00,000 to Tk.10,00.00 in a year. So, ultimately annual balance stands
no profit no loss.
In the said situation why the owner should run the dairy farm as such? The
owner of the farm Md. Ameerul Islam informs that his net profit is “cow
dung” . He says that cow dung available from 82 cows in a year can be sold
with price ranging from Tk. 2,50,000 to Tk. 3,00,000. Mr. Ameerul Islam
opined that the name of the farm should be rephrased as “Cow-dung
producing farm” in place of “Dairy Farm”.
45
Mr. Ameerul informed that he could run the farm as he did not buy all these
animals. He only bought a female calf in 1994 with a price of Tk. 14,600.
That cow ultimately could generate 82 cows in the fourth generation. He
estimates that each of these cows has market price from Tk. 1,10,000 to Tk.
1,50,000. He believes that if any person starts dairy milk farm with cash in
hand he must be looser. He gave examples of small dairy farms of nationally
awarded dairy farms of Md. Siddikur Rahman and Abdul Mottalib Kitab
Mondal.
Md. Siddkur Rahman of Ishwardi district started dairy farm with buying 16
cows in 2008. He could increase the number of dairy cows to 275 with his
own money and Bank loan. He stopped his diary farm with a loss of Tk.
2,03,00,000 in 2012. Now he is trying to repay his default bank loan of dairy
farms from the money he gets out of crop production. Similarly another
nationally awarded dairy farmer Abdul Mottabli Kitab Mondol of Selimpur
Varaimari village under Ishwardi district faced a loss of Tk. 20,00,000
through his dairy farm of 200 animals. Abdul Mottalib now owns 50 cows
and opines that he would stop dairy farming in near future. Upazila Livestock
Officer of Ishwardi Sadar informs that there are 282 small and big diary
farms in the upazila. The annual milk production of the upazila is 25.4
thousand metric tons. He opines that higher price fodder is the main barrier
of making profit out of dairy farming. In fact producing and selling milk is
not profitable in the present context- he added. Preparation of manures and
biogas can be linked with dairy farming, so that the acceptability of the same
in terms of making profit can be ensured. In addition, he opined that political
disturbance make the sector more worsen (quoted from a feature of Ashiskur
Rahman and Mahfuzul Haque published in Prothom Alo daily on 3rd January
2014).
Average yield of milk is only 2 (two) liters per cow per day, although there are
regional variations through out the country. Among commercial dairy farmers, average milk
production ranges from 3.5 liters per day in Mymensingh to 7.2 litres per day Sirajgonj
(Shamsuddin et al., 2006). Average milk production per cow in Bangladesh is equivalent to
about 0.7 ton per year, which is lower than the average yield in India (1.2 tones per cow per
year) or Pakistan (1.1 tones per cow per year). On the other hand, per cow production in
Australia, New Zealand and Denmark are about 5.2, 3.7 and 7.8 tones per year, respectively
(Anon, 2008). So, building competitiveness in milk productions to the small and medium
farmers of the country with respect to the same of neighboring countries particularly like
India can make a remarkable development in milk production of the country.
Individual milk testing is not carried out at the procurement level in Bangladesh and
farmers are paid a flat rate of milk price. Thus, there is no incentive for quality milk supply.
Adulteration is common and as a result fat and or SNF (solid not fat) percentage in milk is
46
low. Skim milk powder often has to be added to milk to make up the low SNF level for
pasteurized liquid milk.
The Livestock Development Policy 2007 of the government identified a number of
constraints for milk production in the country. These are: (i) limited knowledge and technical
skills of smallholder dairy farmers, (ii) scarcity of feeds and fodder, (iii) poor quality of
feeds, (iv) frequent occurrence of diseases, (v) limited coverage of veterinary services
including poor diagnostic facilities, (vi) lack of credit support, (vii) limited milk collection
and processing facilities and low prices at collection points, (viii) lack of insurance coverage,
(ix) absence of market information, (x) lack of appropriate breeds, and (xi) absence of a
regulatory body.
Livestock development through the application of science-led methods of breeds and
breeding in Bangladesh is still at an initial stage. There is, however, enthusiasm for applying
breeds and breeding interventions to enhance livestock performance. Lack of a national
breeding policy, use of inappropriate breeds, weak infrastructure (human capacity, national
service delivery, breeding farms) and limited technical knowledge has constrained the
development of improved breeds.
Available high yielding seed materials are mostly exotic and imported. However, not
all of these imported exotic species adapt well under Bangladesh climatic conditions.
There is a number of promising well-adapted native livestock breeds in the country
such as Red Chittagong cattle, Pabna cattle etc. which could be developed into high yielding
breeds through cross breeding in a systematic manner. Importation of inappropriate genetic
material coupled with indiscriminate crossbreeding and a clear neglect of indigenous breeds
has created a situation, where a number of native breeds of livestock are under threat of
extinction (GoB, 2007).
Unplanned and sporadic attempts that were made for breed improvement of various
species failed, because the initiatives were not based on thorough breed or genotype testing
results and not based on well-thought out and sound breeding goals, breeding criteria, animal
recording systems, animal evaluation procedures and animal selection and mating plans. Breeds
and breeding programme requires huge initial investment and regular and timely flow of
resources. Sustained funding support for breeding work does not prevail at all. As a result, the
limited expertise available in this field remains underutilized.
There is no regulatory body or National Breeding Act to regulate breed imports,
prices of breeding materials, merits and quality of breeds, breeding materials and breeding
services. Within the existing cattle breeding services (including artificial insemination),
47
farmers have little or no idea of the merit and quality of the semen being provided to them for
insemination. The investment is very poor in this sector.
However, the National Livestock Development Policy 2007 provides distinct milk
production policies in three stages through adopting short, medium and long term policies.
The salient features of this policy are as follows:
Policy framework for dairy development covers:
a) Cooperative dairy development (Milk Vita model) could be expanded in potential
areas of the country;
b) Successful pro-poor models for community-based smallholder dairy development
including appropriate contact farming schemes could be replicated;
c) Smallholder dairy farming, integrated with crop and fish culture could be
promoted;
d) Supply chain based production, processing and marketing of milk and milk
products can be promoted;
e) A National Dairy Development Board would be established as a regulatory body
to promote dairy development; and
f) “National Dairy Research Institute” can be established to carry out research in
various aspects of dairying.
A. Short Term Policy (Up to 5 years) for Cattle Development
a. For cows reared under intensive system i.e. high level of inputs supply and zero grazing:
The target in this regard is to produce dairy cattle that will produce more than 6000 kg milk
per lactation (305 days lactation period) at the end of 5 years. The policy in this regard covers
inseminating the top most cross bred Holstein-Friesian cows (daily yield 10 kg or more)
reared under intensive management system with imported semen of progeny tested bulls of
Holstein- Friesian cattle having milk yield capacity of 9,500–10,000 kg in 305 days lactation
period. One million doses of such semen could be imported by DLS and inseminated
maintaining proper records. Private sector should be encouraged to import such semen.
The actions to be adopted in this aspect will be i) Farmers should be selected from
10% top farmers depending on the production performance of the registered farms of DLS,
who wish to maintain animal identification and recording system, be trained on modern
techniques and intensive management of dairy farming including recycling of farm wastages
48
and environmentally friendly farming; and ii) The herd size of the farm should be 5 breedable
cows or more.
b. For cows reared under semi intensive system i.e. medium level of inputs supply and
minimum grazing: The target in this regard to produce dairy cattle that will produce more
than 3,000 kg milk per lactation (305 days lactation period) at the end of 5 years. The policy
would cover i) Inseminate cross bred Holstein- Friesian cows (6-10 kg milk a day) reared
under semi intensive management system with semen of progeny tested 50% HolsteinFriesian bulls (50% Holstein-Friesian X 50% Local) having milk production capacity of
about 4,500 kg in 305 days lactation period and ii) Sahiwal or Sahiwal cross bred cows
should be inseminated with semen of Sahiwal bulls having at least 2,500 kg or more milk
production potential per lactation. The action identified in this regard is to select farmers
from the registered farms of DLS, BMPCUL, CLDDP and NGOs, who maintain animal
identification and recording system, wish to be trained on modern techniques and
management of dairy farming and interested to practice recycling of farm wastages.
c. For cows reared under low input production system: The target covers producing native
dairy cattle that will produce more than 1,000 kg milk per lactation (305 days lactation
period) at the end of 5 years. The policy adopts in this aspect is to inseminate native cows
reared under low input production system with semen of progeny tested or pedigree bulls of
Sahiwal, Pabna cattle, Red Chittagong, Munshigonj cattle, other improved deshi cattle. The
actions identified to achieve the target fixed in this regard are i) selecting farmers from the
registered farms of DLS, Milk Vita, Char Livelihood Project (CLP) and NGOs, who maintain
animal identification and recording system, wish to be trained on modern techniques and
management of dairy farming and interested to practice recycling of farm wastages; ii) testing
the performance of Jersey by BLRI and BAU at Baghabari and in another operational area of
BMPCUL. If the result finds suitable this breed can be introduced under semi-intensive
system; iii) adopting special conservation and improvement programme for Red Chittagong,
Pabna cattle and local variety; iv) improving the existing conservation and development
programme on Red Chittagong run by BAU, BLRI and DLS; v) adopting another
conservation and improvement programme on Pabna cattle by BLRI, DLS, Milk Vita and
BAU; and vi) preserving all local breeds.
49
B. Medium Term Policy (6 -10 years) for Cattle Development
a. For cows reared under high level of inputs supply with zero grazing: The targets in this
regard are to produce dairy cattle that will production more than 4,500 kg milk per lactation
(305 days lactation period) at the end of 10 years. The policy in this regard is to inseminate
the top most cross bred Holstein-Friesian cows will be reared under intensive management
system with imported semen of progeny tested bull of Holstein-Friesian cattle having milk
production capacity of 9,500–10,000 kg in 305 days lactation period. The herd size of the
farm should be 10 breedable cows or more.
b. For cows reared under medium inputs production system: The target under this policy is to
produce dairy cattle that will production more than 15 kg milk daily in 305 days lactation
period (4,500 kg per lactation) at the end of 10 years. The policy covers inseminating cross
bred Holstein- Friesian cows (yielding 6-10 kg milk a day) will be reared under semi
intensive management system with semen of progeny tested 50% Holstein- Friesian bulls
(50% Holstein-Friesian X 50% Local) having milk production capacity of 6,000 kg in 305
days lactation period and inseminating Sahiwal or Sahiwal cross bred cows with semen of
Sahiwal bulls having at least 2,500 kg or more milk production potential per lactation.
c. For cows reared under low inputs production system: The target covers in this regard is to
produce native dairy cattle that will production more than 1500 kg milk per lactation (305
days lactation period) at the end of 10 years. The policy covers i) inseminating the native
cows reared under semi intensive management system with semen of progeny tested Pabna
cattle, RCC and improved deshi bull etc.; ii) adopting a special breeding programme for
Jersey imported by BMPCUL (Milk Vita); and iii) adopting decision on the basis of field
trails (to be carried out by BLRI and BAU) whether jersey breed will be used for breeding
th
purpose in Bangladesh as 4
breeding line; iv) adopting conservation and improving
programme for RCC, Pabna cattle and local variety; v) continue the conservation and
improvement programme on RCC run by BAU, BLRI and DLS ; vi) continuing another
conservation and improving programme on Pabna cattle vii) preserving all local varieties.
C. Long Term Policy (10 years and beyond) for Buffalo Development
A national seminar involving all concerned institutes will be organized to review the
results of implementation of short and medium term breeding policy. Decision will be taken
accordingly.
50
Buffalo for more Milk
a) For buffaloes reared under intensive system i.e. high level of inputs supply and zero
grazing. Provide continuous support for up grading of dairy buffaloes in the plain land with
imported semen of Murrah, Nili-Ravi or Mediterranean Breed having milk production
potentiality of 3,000 kg per lactation.
b) For buffaloes reared under semi- intensive system i.e. medium level of inputs system.
Using and fixing 50% gene of Murrah or Nili-Ravi.
c) For buffaloes reared under low input production system. Fix and use 50% gene of Murrah
or Nili-Ravi Breed and 50% genes of native buffaloes.
d) For swamp buffaloes of greater Sylhet and Chittagong districts. Special conservation
programmes should be undertaken to conserve the swamp buffaloes of greater Sylhet and
Chittagong districts through establishment of farms in respective region.
4. Conclusion
India produces about 17 percent of the world’s total dairy production and used most
of its production for own consumption. In fact “Low-input and low-output” dairy production
model follows in India. India maintains the world’s largest bovine herd having 2-3 animals in
most cases. India has experienced strong growth in demand for dairy products, which is
estimated between 6 and 8 percent annually, approximately twice the growth rate of supply (3
to 4 percent annually). Given India’s preference for dairy sector is attracting new public and
private sector investment. New investment in the sector has resulted in increase to the pace of
overall growth of the country. Driving institutions for the consistent dairy development in
India are NDDB, NDRI, Mother Dairy, Amul, Department of Livestock Development etc.,
which are well supported by National Dairy Development Policy for achieving the
continuous growth in milk production. The organizations visited by the team have found
comprehensive and sustainable in terms of higher capacity of processing milk and milk
products, advanced research and development, well milk marketing chain from producers to
the processors, capacity of quality breed development and so on.
The National Dairy Research Institute as the premier Dairy Research Institute, which
undertakes research, teaching and extension activities towards dairy development in the
country. As the National Institute it conducts basic and applied researches with the objective
to enhance animal productivity and also to develop cost effective technologies for the benefit
of millions of small and marginal farmers. Moreover, the institute provides high quality
manpower to meet the human resource requirements for the overall dairy development in the
51
country. The institute also undertakes extension programmes for transferring the know-how
from the laboratory to the farmers’ fields.
Mother Dairy markets approximately 4.8 million liters of milk daily in the markets of
Delhi, Mumbai, Saurashtra and Hyderabad. They have a market share of 66% in the branded
sector in Delhi, where it sells 2.3 million liters of milk daily and undertakes its marketing
operations through around 14,000 retail outlets and 845 exclusive outlets. As of April 2013,
the Mother Dairy commands 71% and Amul commands 29% of the market.
Processing of milk is controlled by automation whereby microprocessor technology is
adopted to integrate and automate all functions of the processing areas to ensure high product
quality, reliability and safety.
Mother Dairy also sources of fruits and vegetables from farmers and growers
associations. They contribute to the cause of oilseeds grower cooperatives that manufacture
and pack the Dhara range of edible oils by undertaking national market all Dhara products.
Amul took the pioneering role of India’s White Revolution, which made the country
the world's largest producer of milk and milk products. In this process Amul became the
largest food brand in India and has ventured markets in overseas. Dr. Varghese Kurien,
founder-chairman of the Gujarat Co-operative Milk Marketing Federation Limited
(GCMMF) led the same for more than 30 years (1973–2006). Amul Dairy had signed a
tripartite agreement to start a dairy plant in Waterloo village in upstate New York. Amul
expects that it would be able to produce and supply Amul products in the USA as well as
Canada and also export it to Europe under different arrangements.
The National Dairy Development Board (NDDB) was established 1965, fulfilling the
desire of the then Prime Minister of India — the late Lal Bahadur Shastri — to extend the
success of the Kaira Cooperative Milk Producers' Union (Amul) to other parts of India. It was
founded by Dr. Varghese Kurien. The success of Amul could combine the wisdom and
effective participation of farmers with efficient management successfully capture liquid milk
and milk product markets by supporting farmer investment with inputs and services. The
major success of this mission was achieved through the World Bank finance Operation Flood,
which lasted for 26 years (1970 to 1996) and was responsible for making India the world's
largest milk producer. This operation was started with the objective of increasing milk
production, augmenting farmer income and providing fair prices for consumers. NDDB,
India, an apex development organization initiated by the government to replicate successful
"White Revolution" movement amongst small farmers by affirmative actions empowered
women and made them involved in socio-economic activities. NDDB has now integrated
with 96,000 dairy co-operatives which is familiar as Anand Pattern that linking the village
society to the state federation in a three-tier structure.
52
The comprehensive support of the government of India for capacity building of
research and development, higher education, well sustained and consistent milk marketing
chains, keeping competitive prices of milk for longer time, capacity building of different
organizations, and supports and services for producers of milk particularly for small and
marginal farmers over the decades has brought India in the driving seat of milk production.
In Bangladesh, milk and milk production still remain in the traditional stage without a
few exceptions like Milk Vita, Aarong, Pran etc. The country now produces less than 20
percent of milk with respect to its current need. Initiatives of cooperative and private sectors
in milk production are encouraging. The National Livestock Development Policy of the
government has provided comprehensive approach for enhancing the milk production of the
country. The government encourages private sector to invest in this area. It is government
responsibility to create a congenital environment for enhancing milk production of the
country with the effective participation of different stakeholders under the policy of macro
framework.
53
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Opportunities and Constraints, Bangladesh Development Series, World Bank,
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54
Annexure
Nature of Plants Established in Different Parts of the Country under the Project
Plants Established
Establishment (1973-1989)
Place
Production
Capacity
(Litres per day)
Nature of Plants
Tangial
Milk & Milk product
1,62,000
Processing
Milk Chilling
10,000
Manikgong
Milk Chilling
10,000
Takerhat, Madaripur
Pasteurization
25,000
Baghabari, Sirajgong
Milk & Milk product
1,62,000
Processing
Mirpur, Dhaka
Date
of
Commissioning
May 1976
June 1975
September
1975
December
1977
November
1977
Establishment (1989-2008)
Place
Nature of Plants
Srinagar (Monshigonj)
Rangpur
Powder milk production
factory, Baghabari
Vanggura (Pabna)
Laherimohonpur
(Shirajgonj)
Vhirab (kishorgonj)
Raipur (laxmipur)
Nator
Islampur (Jamalpur)
Gabtoli (Bogra)
Shibpur, Norshindi
Domar (Nilphamary)
Shaithkhira
Noagon
Ramgonj (laxmipur)
Shibpur (Narsingdi)
Milk Chilling
Milk Chilling
Powder
Processing
Milk Chilling
Production
Capacity
(Litres per day)
15,000
15,0008000/h
milk
8000/h
10,000 lit
Milk Chilling
10,000 lit
Milk Chilling
Milk Chilling
Milk Chilling
Milk Chilling
Milk Chilling
Minaral water Plant
Milk Chilling
Milk Chilling
Milk Chilling
Milk Chilling
Pasteurization
5,000 lit
10,000 lit
5,000 lit
5,000 lit
5,000 lit
60,000 lit/h
5,000 lit
5,000 lit
5,000 lit
5,000 lit
30,000 lit
55
Date
of
Commissioning
June 1975
Candi and Chocolete Plant
Tajgoan, Dhaka
Moulovibazar
Khulna
UHT Milk Plant, Mirpur.
Condence
Milk
Plant,
Mirpur.
Chirirbondor, Dinajpur
Ishardi, Pabna
Sonagazi. Fani
Subornochar, Noyakhali
Shahjadpur
Purbanchal,
Sirajgonj
Sorupkathi, Pirojpur
Tungi Bari, Munshigonj
Jamalpur
Can
making
plant,
Baghabari
UHT
Liquied
milk,
Baghabari
Coverchar, Chocolote 500 kg/day
Milk Chilling
Milk Chilling
Flavourd Milk
5,000 lit
5,000 lit
40,000 lit
Condence Milk
96,000 can/h
Milk Chilling
Milk Chilling
Milk Chilling
Milk Chilling
5,000 lit
5,000 lit
5,000 lit
5,000 lit
Milk Chilling
5,000 lit
Milk Chilling
Milk Chilling
Milk Chilling
5,000 lit
5,000 lit
5,000 lit
Condence Milk
12,000 can/h
UHT Liquied Milk
1,00,000 lit
56