India in of line, 17 March 2015
“Looking at the growth, we are expecting Rs 1,450 crore revenue in 2015-16.” Devendra
Shah, Chairman & Managing Director, Parag Milk Foods Pvt Ltd received a Bachelor of
Commerce degree from Pune University. After graduating in commerce, Mr. Shah dabbled in other businesses like clothes retailing but it was not until 1989 that he found his true calling—the dairy business. It is the brainchild of Shah.
He also holds reputed positions in various ventures like Director- Bhimashankar Sahakari
Sakhar Karkhana, Pargaon, and Secretary of National centre for Rural Development. He also promotes India’s largest cow farm called Bhagyalaxmi Dairy farm. He has taken Parag Milk
Foods Pvt Ltd to new heights and under his leadership Group's revenues. have grown manifold.
Parag Milk Foods Pvt Ltd, established in 1992, is one of the India’s largest Private Dairy
Products manufacturers having own manufacturing facility with cutting age technology. The company's plants are strategically located in Manchar, Maharashtra and Palamner, Andhra
Pradesh. The capacity is of around 1,000,000 liters per day. Under the umbrella of Parag milk foods Pvt Ltd there are four brands: Gowardhan, Go, Topp Up and Pride of Cows. In Brand
“Gowardhan”, the company offers traditional products like Ghee, Dahi, paneer etc. while under brand name “Go” it offers new generation products like cheese, UHT milk, yogurt etc.
Replying to Yash Ved of IIFL, Devendra Shah says “Looking at the growth, we are expecting
Rs 1,450 crore revenue in 2015-16.”Any plans to enter health and nutrition drinks segment?
Parag Milk Foods is trying step-up the value-chain ladder and convert itself from a dairy & foods Company to a Health & Nutrition focused Company. We are trying to bring this focus into all our product offerings and obviously, beverages are the first in line.
We have launched Topp-up milk in the market, with higher protein content to provide muchneeded energy to the target consumers i.e. commuters & youth / kids as also provide satiety and fullness to the stomach. Similarly, we recently launched Buttermilk in the Market, with no Fats, no sugar and low salt but with all the goodness of proteins & minerals. We have many more such exciting products like whey-based beverages, in pipeline and would be launching it over next 2 years in a phased manner.
What is your current production capacity? Are you increasing its production capacity? We have two processing plants one is at Manchar, Maharashtra and other is at Palamner, Andra
Pradesh. The combined processing capacity is 20 lakh liters per day. With our exciting plans to expand into newer milk segments and extending brand portfolio to drive the next phase of growth, we would be expanding product-specific processing & manufacturing capacities to align with these ambitions. Currently, our focus is on UHT Portfolio including Beverages &
Whey Proteins.
Info@suruchiconsultants.com

What are your investment plans? We are drawing up our investment plans for next 2 years and shall have it ready by next month. In terms of Marketing, we have spent around Rs. 70 crores in the current year and would cross spend of Rs. 100 crores during next year.Brief us about the unveiling of new corporate identity? The strategy behind this was to bring all our brands under new corporate identity, helping build a stronger brand connect and recall with the parent company.
As a marketing organization, we have realized the need of connecting this brand portfolio with the parent organization. This builds a sense of confidence among consumers and that is what we endeavor with this new corporate identity. It speaks of who we are as a company: multidimensional, inventive, dynamic, modern and bold. With an amazing portfolio of dairy brands, we have a commitment to delivering quality products to the Indian consumer. Our new identity is reflective of this promise.
The new corporate branding system supports and reaffirms the purpose, values and culture that have been at the foundation of the company. The logo, with a splash of milk forming a star as its central graphic element, celebrates the company’s culture of passion and innovation. What are your plans in global market? We are already exporting our range of consumer products to countries like UAE, Oman, Kuwait, Singapore, Hong Kong, etc. apart from other countries like Philippines, New Zealand, Australia, USA, Nigeria, Ghana, etc. We are expanding this reach further during the current year, with aim of capturing major markets of Middle-East, North Africa and South-East Asia. What is your revenue target for FY15-16?
We have undertaken many expansions during the last few years. Also, we have planned to enter into Whey protein Market.
Foodsafetynews.com, 16 MARCH 2015
“The milk that might change everything.” That’s the bold claim of a brand that will soon be sold as “a2 Milk” here in the United States. An April launch, complete with a robust amount of advertising and in-store demos, is slated for California retail outlets from Safeway and
Krogers to Whole Foods. The a2 Milk Company, a New Zealand-based firm, has trading activities in Australia, New Zealand, the UK, China, and soon, here in the U.S. It plans to invest $20 million over 3 years to fund its entry into the U.S. marketplace. Company officials say they’ll assess how sales go in California before embarking into other regions of the U.S.
Getting back to ‘how milk used to be’ While the bold label claim seems to signal a new advance in the dairy world, company officials say that their a2 Milk is actually what milk used to be — at least in terms of beta casein proteins, which make up about 30 percent of the total protein in milk solids.
Info@suruchiconsultants.com

In earlier times, cows produced only the A2 protein and none produced the A1 protein. But then, about 10,000 years ago, a natural single-cell mutation occurred in dairy cows in Europe that caused them to produce the A1 beta casein protein as well. Holstein cows at a New
Zealand dairy. Milk from Holsteins typically contains the A1 protein. That change occurred primarily in the large breeds such as Holsteins, which produce considerably more milk than other breeds. These heavy-producing breeds were quickly adopted by dairies in Europe and the U.S. and, as a result, just about all the regular milk sold today in U.S. stores and in much of Europe contains the A1 protein. Some of those cows produce only the A1 protein, while others produce both the A1 and A2 proteins.
For the most part, breeds such as Guernseys, Jerseys, Brown Swiss, Normandes and those in
Africa and India still produce A2 milk. However cross-breeding with bulls with the A1 protein has resulted in hybrids that produce A1 as well as A2 proteins. This has primarily occurred in Western herds. What is A2 milk like? If you were breastfed, it was the first milk you ever had. That’s because all other mammals, including humans, produce only A2 milk.
Who discovered this? According to the company’s website, in the 1990s, New Zealand-based scientist Dr. Corrie McLachlan started doing research on why more and more people were having adverse reactions to regular milk. Through his research, he discovered that normal milk contains different proteins, including A1 beta casein protein and A2 beta casein protein.
As McLachlan’s research progressed, he learned that the A1 protein seemed to cause side effects in some people, such as bloating, irritable bowel syndrome, nausea, mucus build up and general discomfort. Based on that discovery, he set up The a2 Milk Company.
Company officials say this distinction matters because a2 Milk offers a breakthrough for many of the people who have turned away from milk because it upsets their digestive systems. They’re not talking about people with lactose (milk sugars) intolerance or an allergy to cows’ milk protein, but rather the people who become uncomfortable enough after drinking regular cows’ milk that they swear off of it, citing after-effects such as bloating, nausea, abdominal pain, and diarrhea. Guernsey dairy cows, whose milk typically contains the A2 protein.
Peter Nathan, CEO of A2 Dairy Products Australia, told Food Safety News that while about
23 percent of Westerners experience a “perceived dairy intolerance,” only about 5 percent are medically diagnosed as being lactose intolerant. “Clearly dairy intolerance and lactose intolerance are not necessarily the same thing,” he said. “We believe that it is likely that the rest are reacting to the impact of the A1 protein, as many people who have a perceived intolerance can drink a2 Milk without the discomfort.”
According to the company’s website, there are more than 100 peer-reviewed, evidence-based scientific research papers surrounding the A1/A2 scientific explanation. Through the years, some studies extolling A2 milk have been refuted, and the general agreement is that some have been inconclusive and more research needs to be done. Interest in the topic continues to drive research.
Info@suruchiconsultants.com

The first human trial, funded by The a2 Milk Company and published last summer, shows a difference in digestion between A1 and A2. According to a summary of the trial, subjects on a diet of A2 milk reported less abdominal pain, compared to those on a diet of A1 milk. The conclusion of a study done on mice says that the study supports the purported harmful impacts of consumption of A1 “like” variants of beta casein and suggests possible aggravation of inflammatory response in the gut as the cause of various health disorders.
The research compared A1 variants with A2 variants and found no such aggravation in the gut in the case of A2 variants. Some studies have even found a link between lower consumption of A1 milk and a possible reduction of autistic and schizophrenic symptoms, although the researchers said that more research also needs to be done on this.
A commercial splash a2 Milk cartoonA2 Milk has already made a splash in Australia and
New Zealand, where it was introduced about 12 years ago. Despite a slow start due to management problems and other reasons, Nathan said it has gained traction in the past 8 years and sales have grown substantially. Currently, about 9.3 percent of the milk sold in
Australia is a2 Milk, and Nathan describes it as the fastest-growing milk brand in that country.
In Australia, a2 Milk is sold in all major grocery stores. Although there’s a backstory including a wide range of previous claims that A1 milk can cause diabetes, heart disease and autoimmune conditions such as asthma and eczema, the company is currently concentrating on touting a2 Milk’s ability to boost the number of people who will be able to drink milk. In the U.S., as well as in some European countries, milk sales have been declining, with more and more people turning to alternatives such as soda, juice, and water, as well as almond and soy milks, which don’t contain any cows’ milk at all.
Jim Smith, U.S. marketing director for The a2 Milk Company, told Food Safety News that a2
Milk is “real, natural cows’ milk” and therefore a “nutritional powerhouse.” He pointed out that an 8-ounce cup of milk contains 300 mg of naturally occurring calcium. “Alternative, non-dairy, plant-based products, like soy and almond milks, do not have these levels of naturally occurring nutrients and typically modify and fortify their products with a calcium that is not as effectively absorbed as the calcium naturally contained in dairy milk such as a2
Milk,” he said.
This is especially important because pre-teens who haven’t had milk as they were growing up have been found to have low calcium levels. The same is true for peri- and post-menopausal women who don’t drink milk. Asked about what sort of reception the company’s a2 Milk will have in the California marketplace, Smith said that consumers, dairy farmers, and retailers have told the company that it has the potential to play a significant part in restoring confidence in dairy milk among many people who have significantly reduced their consumption in recent years.
Info@suruchiconsultants.com

“We believe we’re bringing a pure and natural product to the many millions of Americans who would otherwise have to restrict or avoid the goodness and taste of fresh milk,” Smith said. “Independent research tells us that a2 Milk brings a digestive advantage to all. It is, after all, the original milk. ”When describing who buys a2 Milk, Nathan said, “They tend to skew younger and are over-represented as mothers with kids. They are also more concerned about the food they eat and are more health conscious.”
What does this have to do with food safety? Milk-in-a-glass-406Some people who have turned to raw milk (milk that hasn’t been pasteurized to kill harmful germs) have said they made that choice because drinking pasteurized milk upsets their digestive system. The company believes that its a2 Milk, which is pasteurized, will offer those people an option — one that bypasses the risk of becoming ill with a foodborne illnesses such as E. coli,
Campylobacter, Salmonella, and Listeria, pathogens which can contaminate raw milk.
Statistics from the U.S. Centers for Disease Control and Prevention (CDC) reveal that from
1998 through 2011, 148 outbreaks due to consumption of raw milk or raw milk products were reported to the agency. These resulted in 2,384 illnesses, 284 hospitalizations, and 2 deaths.
According to CDC, reported outbreaks represent just the tip of the iceberg. For every outbreak and every illness reported, many others occur, and most illnesses are not part of recognized outbreaks.
The bacteria in raw milk can be especially dangerous to people with weakened immune systems, older adults, pregnant women, and children. A CDC analysis also found that foodborne illness from raw milk especially affected children and teenagers. Go here for more information about raw milk outbreaks in specific states.
The nuts and bolts The company’s a2 Milk (whole milk, 2 percent milk, 1 percent milk, and fat-free milk) will be sold in half-gallon containers for $4 to $4.50.Nathan said the company has perfected a patented testing process for A2, and that farmers would need to get permission to market and sell a2 Milk. According to the company’s website, testing is done by using a simple and non-invasive DNA test that analyzes a strand of hair from the tail of each dairy cow. The A2-certified cows are then segregated and milked separately to produce a2 Milk.
For consumers in other states who want to get a higher-than-average A2 content in the milk they buy, the best route is to get it from a dairy whose cows are A2-dominant breeds such as
Jersey, Guernsey, Normande, and Brown Swiss. What farmers are saying largedairyfarm_406x250Warren Taylor, owner of Snow Ville Creamery in Ohio, predicts that it’s primarily the small dairy producers who will make the switch to A2 milk. Consumer interest is definitely there, he told Food Safety News, pointing out that, in the past couple of years, “the A2 issue” has attracted the most interest on his creamery’s website by a factor of about 100 to one. His phone has been ringing off the hook with farmers asking him about converting to A2, he later added.
Info@suruchiconsultants.com

“People are hungry for better milk,” Taylor said. “It will be interesting to see how they’ll respond if we do choose to introduce an A2 milk or yogurt. ”He doesn’t see testing for A2 as a problem because there are several affordable places farmers can go to get the testing done.
His creamery is in the process of getting the equipment to do the testing there. That way,
Taylor said, “Our farmers can have day-old calves of either gender tested within a couple of days, which will make it easier to segregate and get farmers the value of A2/A2 animals — and contribute to the future of the A2 milk supply.”
He believes that the creamery’s “nominal 700-cow bulk tank of 10 farms is as high in A2/A2 genetics as any such group in Ohio.” “I think there is a lot of promise in A2 milk and a good possibility the science will validate at least some of the health claims,” Taylor noted. “As a dairy evangelist, I believe that milk is good for people as long as it’s from cows eating principally grass and that it has been minimally processed so that it’s consumed fresh.”
Unfortunately, he sees some problems ahead. Now that fluid and powdered milk sales have crashed, in large part due to overproduction and the high value of the dollar (which deters foreign buyers), Taylor said he’s been seeing fluid milk processors in Ohio cut off the smaller dairy farms, which often have more A2 and grass-based cows, in favor of the larger producers. Even so, he has faith that A2 herds, which are usually raised on pasture, will have a “transformative effect” on the dairy industry.
Western Washington dairy farmers Randy and Kim Mower milk Brown Swiss cows, a breed that Randy Mower says is predominantly A2.“Our herd was put together in 1906, so I’d venture to say that most of our herd is A2,” he said. “And I’m making a conscious effort to use only A2 bulls. ”Even so, he believes that the promotion of A2 milk in the U.S. is only going to be successful in the “richer populations” — regions with a good share of affluent people. “I’m all for A2 milk,” he said. “But my fear is that it will be detrimental to sales of regular milk. I don’t want to see people turn away from regular milk.”
As for where the a2 Milk sold in California will come from, U.S marketing director Smith said the company is able to work with farmers of all types and sizes — subject, of course, to certifying that their cows are A2.“As a result,” he said, “The a2 Milk Company will be working with a variety of farmers of all kinds as we expand across America.”
Business Standard, 13 March 2015
In a major blow to Dudhsagar Dairy chairman Vipul Chaudhary, the state registrar for cooperative societies issued an order today announcing his removal as chairman of the Mehsana
Milk Producing Co-operative Federation (MMPCF), known as Dudhsagar Dairy. However, as Chaudhary approached the Supreme Court earlier when he was given the notice, the order would not be implemented until the apex court gives a further directive in this regard.
Info@suruchiconsultants.com

In his order, Commissioner of Co-operation and State Registrar for Co-operative Societies M a Narmawala stated that he has removed Vipul Chaudhary as MMPCF chairman. The order also banned Chaudhary from holding any post in any co-operative society or contesting elections to co-operative societies for a period of three years. Adhering to the Supreme Court judgement, Narmawala stated that his order would not be implemented until the SC gave a directive in this regard. The order would first be presented before the SC and implemented only after getting its approval, Narmawala's order stated.
"Earlier, Supreme Court had passed an interim order that in case an order is passed by the registrar in this regard, it shall not be implemented till further orders of the court. Thus, we will approach the Supreme Court during the next hearing and seek its guidance to implement this order," Gujarat Agriculture Minister Babu Bokhiria said. Earlier in January this year,
Narmawala had issued a notice to Chaudhary seeking his explanation on allegations of irregularities in MMPCF. It is alleged that he had taken unfair decisions as Dudhsagar Dairy chairman and supplied cattle feed to Maharashtra, which caused losses worth crores of rupees.
After he received the notice, Chaudhary filed an application in the Gujarat High Court against the show cause notice. However, he suffered a setback when a division bench of Gujarat
High Court rejected his plea and fined him Rs 7,500. Later, he knocked the doors of Supreme
Court, which gave him temporary relief and passed an interim order barring implementation of all orders against him until the next hearing, which is on March 20.
Zee News, 12 March 2015
Wellington: New Zealand has received no indications that any foreign countries would stop buying its dairy products following a threat to poison infant formula with a toxic pesticide, the agriculture ministry said on Thursday. Countries including China, the biggest buyer of
New Zealand dairy products, were not closing the door on shipments, a top official from the ministry told Reuters, as police track down the sender of letters to dairy giant Fonterra and the national farmers` group which were accompanied by infant formula laced with the pesticide 1080.
"Last night we had been speaking to our counterparts in overseas markets, and as of this morning, none of them indicated that any product was going to be stopped," said Scott
Gallacher, deputy director-general of the Ministry of Primary Industries. Following the announcement of the police investigation earlier this week, China has said it would increase scrutiny of milk powder imports from New Zealand, the world`s largest dairy exporter, which depends on the commodity for around a quarter of its export earnings. While China has stopped short of placing restrictions on imports, some smaller New Zealand infant formula marketing companies said they had seen a fall in orders for the product commonly prized among China`s growing middle class since the threat was publicised. A few domestic milk powder and infant formula processors said they had not seen a fall in demand for their
Info@suruchiconsultants.com

products so far, while adding that ramped-up Chinese scrutiny may delay exports by around two to four weeks. "The feedback from the market has been very quiet. We`ve only had one direct contact from one customer in China who has requested that we test for 1080 and make sure the results are on (shipping certificates)," said Richard Wyeth, CEO of Miraka, which processes milk powder and UHT milk products.
But he added: "We only make commodity powder, so we`re not seeing the full impact that others would be." Infant formula processors have said they anticipate stable demand from overseas buyers, while Fonterra which processes nearly 90 percent of the country`s milk collection, will not comment on offshore demand for its products. MPI`s Gallacher said dairy processors were informed of the investigation last month, the same time that overseas government agencies and big infant formula brands including Nestle, Abbott Laboratories and Mead Johnson were told. Larger companies were informed before smaller ones, which were told by their suppliers after the threat was publicised, as dairy processors and the government believed the impact to their supply chains warranted an early heads up, he added.
Food Safety News, 11 MARCH 2015
Pouring Raw Milk Main. State lawmakers in West Virginia have passed a bill allowing people to buy and sell raw milk through herd-share programs, according to the Bluefield
Daily Telegraph. Raw milk was previously not allowed for sale in the state. Herd-share programs allow those who wish to drink raw milk to buy a membership in a club that grants them partial ownership of the herd on paper. Herd-share programs for raw milk are already legal in Virginia, Kentucky, Indiana and Alabama.
Retail sales will remain illegal in WV. Those who buy into a herd-share program will reportedly also have to sign a form stating that they acknowledge the health risks of drinking raw milk. The bill states that doctors will also be required to inform health officials of any illnesses related to raw milk consumption. Raw milk is milk that has not been pasteurized to eliminate potentially harmful pathogens such as E. coli, Campylobacter, and Salmonella.
Health experts often warn against serving raw milk to children, the elderly, or anyone with a compromised immune system.
Live Mint, 11 March 2015
Japan’s Meiji joins growing ranks of investors looking for opportunities in India’s dairy business .Mumbai: Japan’s Meiji Co. Ltd is the latest to join the rush for a piece of India’s white gold, or dairy business. Meiji, according to two people familiar with the development, is scouting for dairy assets in the country. Meiji’s main business includes manufacturing and sale of confectionery, milk and dairy products. The company has reviewed some assets in
India but hasn’t finalized a deal, said one of the two people. The company wants large assets,
Info@suruchiconsultants.com

this person added. Both people familiar with the development are bankers who asked not to be identified.
A company spokesperson was non-committal. “Though Meiji considers mergers and acquisitions will be one of the effective strategies to boost our business, we cannot explain the details,” said Junji Ohashi, official spokesperson for Meiji Holdings Co. Ltd, in an emailed response to a questionnaire. Meiji is currently present in India through two of its biscuit brands Hello Panda and Yan Yan. Meiji joins a growing rank of strategic and financial investors looking for opportunities in India’s rapidly expanding dairy industry.
Since 2010, private equity (PE) funds have invested $138.85 million across 15 deals in the sector, according to data compiled by VCC Edge, the financial research unit of
VCCircle.com. Some of the notable PE deals include IDFC Alternative’s $28.8 million investment in Parag Milk Foods Pvt. Ltd in 2012 and The Carlyle Group’s $22.3 million investment in Tirumala Milk Products Pvt. Ltd in 2010. According to the National Dairy
Development Board, demand for milk is expected to increase at a compound annual growth rate or CAGR of 5% from 138 million tonnes in 2014 to 200 million tonnes in 2022.
Additionally, data from National Sample Survey Organization shows that between 2001-02 and 2011-12, the per capita monthly expenditure on milk and milk products has more than doubled from Rs.41.9 to Rs.115 in rural India and from Rs.75.8 to Rs.184 in urban India.
Analysts say one major attraction is the move towards value added dairy products, which offer higher margins than liquid milk.
According to a June 2014 report by CARE Ratings, the share of value added products in the milk and milk derivatives segment in India is growing at around 25% every year and is expected to grow at the same rate until 2019-20. “Almost 75-80% of the Indian dairy market is still unorganized and even in the organized sector, large part of the market is occupied by liquid milk. However, there is a clear shift from unorganized to organized industry and also a shift from liquid milk to products,” said Sanjesh Thakur, partner, retail and consumer products practice at audit and consulting firm EY. Companies in the business are looking to expand, for which they are raising money.
Vaishnodevi Dairy Products Pvt. Ltd, a Pune based dairy company, plans to raise Rs.125-150 crore from PE firms over the next six months to fund the development of new products, expansion of infrastructure, and debt repayment. “We have an existing capacity of 7 lakh litres and we plan to increase it by another 5 lakh litres in financial year 2015-16,” said
Nandkishore Attal, chief executive of Vaishnodevi Dairy Products. Parag Milk Foods Pvt.
Ltd is looking to raise up to Rs.600 crore through an IPO and says the expansion into the value added products is driving growth and the need for capital. “Curd which used to be home-made product couple of years back has been seeing the fastest growth.
Branded dahi (curd) has huge demand in market. Along with this, UHT- tetra pack milk
(flash-boiled milk that is pure and stays longer), cheese and paneer (cottage cheese) are fastest growing categories,” said Devendra Shah, chairman, Parag Milk Foods. According to
Attal of Vaishnodevi Dairy, margins in the milk business range between 3-4%, while margins
Info@suruchiconsultants.com

for value added products is around 10-12%. Large Indian companies too are keen on tapping this growing industry. Last year, ITC Ltd announced during its annual general meeting that it would enter the dairy space.
“ITC will enter the dairy segment sometime this year with the launch of some value added products. ITC’s first state-of-the-art dairy plant in Munger in Bihar will be commissioned in a couple of months,” said an ITC spokesperson, adding that the initiative will be scaled up across many states, including Bihar, Uttar Pradesh, Punjab, Maharashtra, Andhra Pradesh and
Telangana. According to a 25 February report by PTI, Mahindra Agribusiness is keen to enter the over Rs.3 trillion Indian dairy sector through a Rs.150-750 crore acquisition of a brand that has good supply chain and branding in place. Mahindra Agribusiness declined comment.
“Product categories such as ghee, butter, ice cream, yogurt, milk drinks etc. have earnings before interest tax depreciation and amortization (Ebidta) margins in the range of 8-15%.
This is the category which is attracting private equity and strategic investors into the dairy industry. People would like to invest only in companies where there is a strong brand and product play,” said Thakur of EY.
Food Safety News, 10 March 2015
A very small number of dairy farms have been found using animal antibiotics in ways not approved by law, according to a new study by the U.S. Food and Drug Administration’s
Center for Veterinary Medicine. Because antibiotic residues immediately appear in milk, dairy cows are only supposed to receive drugs when they’re known to be sick. Regardless,
FDA found that 0.78 percent of samples tested positive for drugs not legally allowed in milk due to safety concerns.
The study, which began in 2010, took nearly 2,000 samples of milk directly from cows at farms categorized into one of two groups: Dairies that had been warned about abuse of antibiotics in the past and a control group of dairies that had never received warnings. (FDA routinely sends out warning letters to dairies if they find excessive levels of drugs in a dairy cow sold to slaughter.)
Researchers tested for 31 drugs that have no established tolerance level in milk. Any sample with a positive test result would be considered in violation if found during routine milk testing, but all testing was performed anonymously for the purposes of the study. The results:
11 out of 953 samples (1.15 percent) tested positive from dairies that had been warned about abusing antibiotics in the past, while 4 out of 959 samples (0.42 percent) tested positive from dairies that had never received warnings. One of the samples came back positive for two separate drugs.
Every shipment of milk leaving a farm is tested for only six major drugs that are approved in limited amounts. The 15 positive milk samples contained drugs that are not on that list for
Info@suruchiconsultants.com

routine testing because they are not approved to be used on lactating dairy cows. The majority of the drugs found are allowed to be used on cows when they’re sick, but they’re not allowed in the milk supply. When dairy cows do require antibiotic treatments, they’re typically culled away from the herd and must undergo a drug withdrawal period to make sure that they don’t contaminate the milk supply with any drug residues.
But even in the rare cases where drug residues make it into milk, the levels are almost guaranteed to be too miniscule to negatively impact a human, said veterinarian Michael
Payne in an article for dairyherd.com. “Tolerance levels in meat and milk are established by
FDA and based on animal studies designed to show no harm to humans exposed daily to those concentrations for an entire lifetime,” Payne wrote. “Importantly, even those calculated safe levels are further divided by an additional safety factor of either 10 or 100.”
Despite the evidence of an overall safe milk supply, FDA said it will consider modifying testing samples of milk supplies from farms that have been found with illegal drug residues in their dairy cows. The agency also plans to work with regulators to update the milk testing program to include a greater diversity of drugs.
Bev Net, 05 March 2015
Anaheim, Calif. (PRWEB) March 05, 2015 – Califia Farms, the leading producer of premium, plant-powered beverages, today announced at Natural Products Expo West that its popular ready-to-drink Vanilla and Chocolate Protein Almond Milk drinks are now 100 percent soy and dairy free. Califia Farms Vegan Protein Almond Milk drinks come in a 10.5ounce single serve bottle and are packed with six grams of an innovative nutrient-dense, pea and sprouted brown rice protein that includes fiber, B vitamins and magnesium.
Califia Vegan Almond milk Protein is an essential part of a daily diet and is a key building block for bones, muscles, cartilage, skin and blood. However, unlike fat or carbohydrates, our bodies do not store protein. As more consumers make health and wellness a priority, they are seeking out convenient, on-the-go protein sources that fit their busy lifestyles and protein drinks are quickly rising in popularity. In 2014, the segment was worth an estimated $178 million in wholesale dollar sales, and Euromonitor predicts the category will grow eight percent each year over the next few years.
Califia Farms Vegan Protein Almond milk is a plant-powered alternative that can be used pre- and post-workout, or as a meal supplementation, giving the growing number of dairyfree drinkers a protein-rich, tasty alternative to the ever-present whey protein. In fact, up to
75 percent of the earth’s population is lactose intolerant to one degree or another, moving more people to alternative dairy products. Califia Farms Almond milk is known for its delicious, creamy flavor because, unlike other almond milks, it’s made from whole blanched, not roasted, California almonds using artisanal methods. In addition, Califia has developed a proprietary homogenization process and a locust bean gum replacement for carrageenan to
Info@suruchiconsultants.com

keep its Vegan Protein Almond milk indulgently flavor full with only 140 calories and 4.5 grams of fat.
“We’ve made the shift to a vegan protein to better serve the needs of our consumers who are looking for a completely plant-based protein drink alternative,” said Greg Steltenpohl, Califia
Farms’ CEO. “This reformulation is 100 percent plant-powered and offers the same great taste as our earlier protein drinks. Not only is it GMO-free, soy-free and dairy-free, but it also marks our move to make all our products completely carrageenan free by the end of 2015.”
Carrageenan is a natural ingredient derived from seaweed that has been used as a thickening agent in everything from toothpaste to ice cream for decades, but, recently, there has been shift in consumer sentiment around this ingredient. As a company that values consumer feedback, Califia Farms has made the move to remove carrageenan from all its products by the end of 2015. In addition, Califia Farms is launching its first shelf-stable Single Serve
Almond milks at Expo West. Available in 330ml Tetra Packages in Unsweetened, Vanilla and Chocolate flavors, the Single Serve Almond milks are a healthy, dairy-, soy- and GMOfree alternative that are an ideal, nutritious, on-the-go beverage for anyone, at any age.
Thirty-six percent of consumers already consume dairy and non-dairy milk on the go.
However, most single serve dairy and non-dairy drinks have excessive sugar content – up to
24 grams of sugar for some chocolate flavors. In contrast, Califia Farms Single Serve
Almond milk Unsweetened has no sugar while there are just three grams in Vanilla and only
12 grams in Chocolate. In addition, these new SKUs are also carrageenan-free.
About Califia Farms
Califia Farms’ mission is to deliver delicious and mindful nourishment inspired by the agricultural bounty of California’s great Central Valley. The company tripled its revenues in the almond milk category from 2013 to 2014 and is a leader in the revolution to decommodify the food and beverage industry by creating innovative, healthy and great-tasting premium beverages that make it easy for consumers to go ‘plant-powered’ and dairy-free, without compromise.
Founded in 2010 by a farmer’s co-operative based in the San Joaquin Valley and headed by beverage visionary Greg Steltenpohl, Califia Farms is a uniquely California company. Its
Bakersfield, Calif. manufacturing plant uses artisanal processes to create healthy and delicious plant-based beverages, is eco-friendly, energy efficient and repurposes more than
90 percent of its post-production by product. Califia Farms is the fastest-growing natural beverage company in the U.S., as well as the leading brand in the natural products coffee drinks category.
Cbsnews.com, 05 March 2015
WASHINGTON -- In an encouraging development for consumers worried about antibiotics in their milk, a new Food and Drug Administration study showed little evidence of drug
Info@suruchiconsultants.com

contamination after surveying almost 2,000 dairy farms. In response to concerns, the agency in 2012 took samples of raw milk from the farms and tested them for 31 drugs, almost all of them antibiotics. Results released by the agency Thursday show that less than 1 percent of the total samples showed illegal drug residue.
Antibiotics and other drugs can end up in milk when they are used on dairy cows to keep them healthy. Small levels of drugs are allowed in milk, but residues that go beyond certain thresholds are illegal. "Overall this is very encouraging and reinforces the idea that the milk supply is safe," said the FDA's William Flynn, who led the study. He said the agency will use the findings to try and reduce the drug contamination even more.
The industry does regular testing for the drugs, but public health advocates had expressed particular concern about milk that had come from dairy farms that had repeatedly tried to sell older cows for slaughter with illegal levels of antibiotic residue in their tissue. So the FDA study focused on those farms with previous violations, with about half of the samples coming from them and half from a control group.
FDA said 11 of the samples from the group with previous violations showed illegal levels of drug residue and four from the control group showed illegal residue. Flynn said the illegal drug residues found in the study were from unapproved drugs, so any level is illegal. The agency said the study was blind, so no violations would be reported. The milk industry balked when the FDA first announced the study in 2010, expressing concerns that the broad testing would disrupt the milk supply. After negotiations, the testing began in 2012 and the agency spent the next two years analysing the results. The industry praised the study as it was released. "These results are great, but we still are aiming for zero positives in the future," said
Jim Mulhern, CEO of the National Milk Producers Federation.
The findings may help reassure American consumers who have been steadily turning away from drinking milk. The average consumption of dairy milk has dropped from about 22 gallons a year per person in 1970 to less than 15 gallons in 2012 -- a 33 percent decline -- while bottled waters, teas and energy drinks gained market share. The dairy industry has been working to reverse that trend with renewed marketing efforts and a variety of new products designed for modern tastes, such as flavored and blended milk drinks in round, re-sealable containers.
orissadiary.com, 05 March 2015
AMUL, the pride of Gujarat, has been listed as India's Most Trusted Food & Beverage (F&B) brand out of a total of 185 brands listed in the category. The brand climbed 67 ranks over last year and rose to become India's 12th Most Trusted Brand this year leapfrogging several top
F&B brands namely Pepsi, Coca-Cola, Britannia and Parle G. In the Category of ‘Dairy
Products’ under F&B, Amul leads by a wide margin, and other brands that made it to the list are Mother dairy (All-India 230th rank) and Verka (All-India 365th rank).
Info@suruchiconsultants.com

N. Chandramouli, CEO, TRA, commenting on the findings of the report said, "Gujarat has a deep and long tradition of business. Business is nothing but trust incarnate. Getting Gujarat brands as category leaders in trust shows how these brands have now begun to pervade the national consciousness. Gujarat is a place that everyone looks up to, not just for governance or quality of life, but also for the quality of brands that emerge from here. The brands from the state too are in a high point of the evolutionary cycle in terms of perception."
Fortune refined oil from Adani Wilmar displaced Saffola to become Most Trusted ‘Edible
Oil’ brand this year. In that category, Sundrop takes 3rd rank, followed by Sunrise & Dhara.
Yet another brand from the region, Sugar Free from Zydus Wellness, has been ranked as
Most Trusted brand in the ‘Artificial Sweetener’ sub-category of the F&B list. Amulya from
Amul is Most Trusted ‘Dairy Whitener’ brand in India and is followed by Anik Spray in its category. In the Home Care Category, Ajanta ranks as Most Trusted Home Care Brand trouncing Nilkamal and Godrej Locks. Sintex is the Most Trusted Brand in ‘Water Tank’ in
India in Household Goods Category. In the Infrastructure Category, the leader is Gujarat based Adani ranked Most Trusted Company in the category this year, followed by 2nd and
3rd ranks by Hindustan Construction Company and Jaypee Group.
These revelations were a result of The Brand Trust Report, India Study - 2015, the fifth in its series, published by TRA (formerly known as Trust Research Advisory), a leading research organization dedicated to understanding and simplifying concepts related to Trust. This year’s study involved 13000 hours of fieldwork covering 2373 consumer-influencers across
16 cities in India and generated 5 million data points and 19,000 unique brands from which the top 1000 brands have been listed in this year’s report. The 190 page, hardbound report is available for Rs. 14000/-.
Fnbnews.com, 05 March 2015
India has one of the youngest populations in the world. According to the latest census data released by the Indian government, adolescents (young people in the age group of 10-19 years) account for 21 per cent of the country’s population. This is the largest demographic in the country. At 253.2 million, India’s adolescent population is among the largest in the world, exceeding China’s. But, according to a UNICEF report, the country has one of the worst track records in terms of the health of adolescents in the world. Around 47% of girls aged between
11 and 19 were found to be underweight, the highest proportion in the world.
In addition, 56 per cent of girls and 30 per cent of boys in this age group were found to be anaemic – these figures are at par with some of the least-developed African nations, despite
India’s tremendous economic growth over the last decade. The country also has the largest number of malnourished children under the age of five, many of whom grow into malnourished adolescents. Undernourishment at a young age can lead to adverse physical and mental development.
Info@suruchiconsultants.com

Small segment. Adolescents have the highest energy requirements across age groups, and should have, on an average, anywhere between 2,200 to 3,200 calories a day, depending on age, gender and activity levels. Value-added dairy products, such as flavoured milk, are ideal vehicles to ensure that these young consumers get their required dose of specific nutrients and energy without losing out on taste or taking supplements. A glass (quarter of a litre) of one per cent fat milk, in addition to having a range of vital nutrients, contains about 100 calories.
According to a Techno Pak study, children and teens are the largest consumers of flavoured milk in India. Parents too are willing to buy flavoured milk for their kids due to its high nutritional content vis-a-vis carbonated or sugary soft drinks. Despite this, flavoured milk accounts for a very small share of the retail milk market in India. Flavoured milk is a very popular product across age groups in India, but much of it is sold fresh at traditional sweet shops, both as a drink and a dessert (called badam/almond milk). This product is rich, sweet and loaded with spices and nuts, and can be had cold or hot.
Other milk-based drinks, such as milkshakes, are also popular and available mostly in the food service sector. These fresh options give products in retail significant competition. But the fresh options are both expensive and perishable, and have limited flavour variants, indicating that there is immense scope for growth for packaged flavoured milk in India.
Several companies are jumping into the flavoured milk segment, as Indian consumers are shunning carbonated soft drinks and looking for healthier options. Coca-Cola and Indian fast-moving consumer goods (FMCG) major ITC announced earlier this year that they intended to launch dairy drinks. The former test-marketed its milk drink, Maaza Milky Delite, in 2010, and is now planning a nationwide launch.
However, this is a completely new category for the latter, which is looking at a health positioning, and is conducting trials to address metabolic disorders, such as blood pressure, diabetes and nutritional deficiency. This is a step in the right direction, as health and nutritional claims in this category in India leave a lot to be desired. As consumers become more health-conscious and aware of their nutritional requirements, they would look to valueadded and convenience foods to supply them with that nutrition. Companies entering the flavoured milk market would do well to cater to these demands through fortification and by highlighting the nutritional value of their offerings.
They can address specific health conditions by adding the relevant nutrient. For example, companies like Parag Milk Foods have launched iron-fortified products for teenaged girls with anaemia or extra protein for energy. Flavoured milk launches with added nutrition Maiyas Badam Lite Refreshing Almond-flavoured Milk. This product is free from added sugar, artificial flavours, colours and preservatives. The product is suitable for vegetarians and is sold in 200ml cans priced at Rs 35 ($0.55).
Amul Kool Royal Elaichi-flavoured Milk Drink-This is sterilised and homogenised milk with added vitamins A and D. It is suitable for vegetarians, and is sold in 200ml bottles priced at
Rs 20 ($0.32). Gowardhan Topp Up Rose-flavoured Milk with Extra Protein. This product is
Info@suruchiconsultants.com

said to give a quick boost of protein strength and energy, whenever and wherever needed.
Made from fresh cow’s milk, the product is suitable for vegetarians and is sold in 200ml packs priced at Rs 20.
Britannia ActiMind Strawberry-flavoured Milk-based Drink-This product contains seven active brain nutrients to help mental sharpness. It is a vegetarian product which contains vitamin B, which helps to keep the brain energised; choline to improve memory, and iodine for mental development. This drink, which has been targeted at children, and is available in
150ml packs priced at Rs 20.
Britannia Tiger Zor Badam Milk-This product is enriched with iron to help consumers perform better physically and mentally. It contains zinc for a healthier immune system; iodine for growth and development; vitamin D for strong muscles, calcium for healthy bones and teeth and vitamin A for good vision and healthy skin. It is a vegetarian product aimed at children and is sold in 150ml bottles for Rs 20. Most of these products currently target younger children and neglect teens. Given that adolescents are significant consumers of flavoured milk, brands in this segment would do well to target them with relevant and innovative ad campaigns to encourage consumption.
Generation next examines the state of today’s teens and their reactions to and expectations from brands. Most urban teens in India today have grown up with the Internet and mobile phones and are constantly connected. Flavoured milk brands, that focus on social media campaigns or mobile ads that include elements of fun, irreverence and meaning, are likely to appeal to this demographic. Parents are likely to appreciate brands’ efforts in improving the nutritional value of what their children drink.
What it means



Flavoured milk is popular in India, but is a very small segment, indicating immense potential for growth
It is an ideal format for the delivery of additional nutrition to adolescents
Dairy companies can target adolescents in India with fun campaigns, both in mainstream media and online
Zee news, 04 March 2015
Sydney: Australian researchers have discovered that the protein MCL-1 is critical for keeping milk-producing cells alive and sustaining milk production in the breast. Without milk production, offspring cannot survive, making MCL-1 essential for survival of mammalian species, the researchers discovered.
Professors Nai Yang Fu, Geoff Lindeman and Jane Visvader from the Walter and Eliza Hall
Institute in Australia led the research published on Tuesday in the journal Nature Cell
Info@suruchiconsultants.com

Biology, Xinhua reported. Visvader said MCL-1 was found to be an important regulator of breast development and its milk-producing cells. "This study has unlocked one of the key survival factors in the mammary gland," Visvader said in a statement.
"MCL-1 is important for all stages of breast development, from puberty to pregnancy and lactation. Based on this discovery, it is reasonable to believe that every mammal requires
MCL-1 for milk production and, ultimately, the survival of their offspring. "Fu said MCL-1 levels increased dramatically in the breast within 12 hours of giving birth. "We were able to use very sensitive technologies to determine that stem cells and luminal cells were the breast cells that most critically rely on MCL-1," Fu said.
"Luminal cells are the cells that line breast ducts and respond to hormones during puberty, pregnancy and lactation. It now seems clear that MCL-1 is integral to the survival of these cells," Visvader said, adding that the discovery further underscored the importance of MCL-1 for cell survival. "In addition to our discovery, a number of recent research studies at our institute have shown that MCL-1 is important for the survival of certain immune cells, and for the survival and growth of cancers including leukaemia and lymphoma," she said.
"Stem cells and luminal progenitor cells both require MCL-1 for their survival. Our team has previously implicated both these cell types in some types of breast cancer, raising the question of whether MCL-1 is an important target for developing anti-cancer drugs."
Lindeman, Visvader and their breast cancer research team have spent the past 15 years unravelling the secrets of normal breast development in a bid to improve our understanding, and ultimately treatment, of breast cancer. "You cannot fully understand how breast cancers arise without understanding normal development in the breast," Visvader said. "This is an exciting time for our research team. Some of the discoveries we have made on breast development and how it goes awry in cancer have helped to identify potential targets for therapy, leading to preclinical studies and clinical trials aimed at breast cancer treatment or prevention."
Business Standard, 03 March 2015
Enough inventory of skimmed milk powder in country will help keeping milk prices under check. The price of milk is likely to remain stable despite the expected dip in supply and high demand during summer, thanks to the bountiful inventory of skimmed milk powder. The last increase in milk prices was nearly nine months ago. Low export of skimmed milk powder
(SMP) this financial year will keep the milk prices in check. Kuldeep Saluja, managing director, Sterling Agro, said, “India produces around 100,000 tonnes of SMP every year. This financial year exports have not been more than 30,000 tonnes. There is enough inventory in the country. It would be liquidated when the production drops in summer.”
Sterling Agro itself is a major exporter of SMP. Saluja said even as prices of SMP begin to firm up in the last few auctions in New Zealand, fresh supplies are expected to come from
Europe starting this month-end. “As the European Union abolishes the milk quota (or dairy
Info@suruchiconsultants.com

produce quota) from the end of this month, the global dairy market would be flush with fresh supplies. Even the US is focusing on exports, increasing supply.”
R S Sodhi, managing director, Gujarat Cooperative Milk Marketing Federation (GCMMF) said: “In the last three auctions in New Zealand, the prices of whole-milk powder went up 45 per cent, while SMP prices have gone up around 18 per cent. ”GMMF, which sells milk and milk products under the Amul brand, is India’s largest dairy cooperative. said domestic SMP prices are around Rs 200 a kg now. They are expected to go up to Rs 275 a kg in the coming months.
The international prices of SMP are lower — at present, it is Rs 180-190 a kg. As a result, exports are likely to remain low. R G Chandramogan, managing director, Hatsun Agro, however, said that if international prices of SMP firmed up, the prospects for exports might improve. “Coupled with the drop in production during summer, there could be some change in the pricing dynamics. However, it is still uncertain,” he said.
An industry insider, who did not want to be named, said prices were likely to remain stable during the May–June period. Supply would not be affected as co-operatives cannot stop procurement from farmers. “They (cooperatives) are already sitting on a huge inventory of
SMP,” said a Delhi-based private dairy player. Prices of liquid milk are Rs 33-48 a litre, varying across regions. Several cooperatives had seen better supplies during summer last year.
For example, Rajasthan Cooperative Dairy Federation had seen a 10 per cent increase in procurement during summer in 2014 on a year-on-year basis. On the whole, the sector feels that at least for the coming quarter, there is hardly any chance of price rise in liquid milk.
While dairies might take a re-look at the situation around mid-summer, a price rise is unlikely until the second half of the year, when international prices might recover.
Shiva Mudgil, senior dairy analyst and assistant vice president, food & agribusiness research and advisory, Rabobank explained the global situation, "Global milk powder prices seemed to hit bottom last year with strong supplies from the key exporting regions. There has been a slight recovery due to current dry conditions in New Zealand and with EU containing milk production till March 2015 to avoid penalties. However EU’s milk production quota is going off from April 1 this year. There is continuing ban on EU dairy products in Russia. Also US players have been increasing their focus on exports lately."
He added, "We don't see China coming back to the global market in a big way until the second half (of 2015). Global milk prices are likely to recover around that time only. Indian exporters; who have suffered significantly in the current situation; may look forward to second half of this year with some optimism."
Business Wire India, 03 March 2015
Info@suruchiconsultants.com

Dlecta Foods Introduces Premium Dairy Gourmet to the Consumer Market Mumbai,
Maharashtra, India (DLECTA Foods Private Limited) . Dlecta Foods Pvt Ltd, a leading name in the Food and Beverage (F&B) industry specializing in dairy products has recently introduced a line of gourmet products in the retail markets. These include a premium range of cheese available in slices, blocks and spread, besides cream cheese, shredded mozzarella and bakery ingredients like whip toppings and chocolate ganache. The products are available both online and offline at several leading online e-tailers as well as at prominent super-markets in the city and are aimed at consumers who love to cook gourmet food at home.
There has been an increasing demand for gourmet food in the retail space with growing appetite of urban Indians towards luxury gourmet food. The size of the gourmet food market in India is estimated at Rs. 6,500 crore, growing at a CAGR of 20% year on year and is expected to grow manifolds over the next few years.
“The young urban population appreciates good food and loves to explore new food cultures.
This has become an inclusive part of lifestyle for many. Italian food that traditionally revolves around cheese is very popular with Indians and so are pastries and cakes. Our aim is to give these discerning food lovers the choice of dishing out world cuisines at home too. The products we have introduced are ingredients that can go into the making of gourmet foods that will deliver authentic tastes to the recipes,” says Mr. Deepak Jain, Founder and
Managing Director, Dlecta Foods Pvt Ltd.
Dlecta Foods is the maker of India’s first and only dairy creamers, branded Milké. The product is sugarless, made from 100% cow milk and is considered a tastier and healthier substitute for powdered milk. “Most of our products are premium, but belonging to the popular category. The cheese products that we’ve introduced are made from pure cow milk.
The mozzarella is as fine as its Italian counterpart. The ganache is a product that is gaining in popularity and is used to make top layers of chocolate cakes, while the whip toppings are used for dressing cakes. We are positive that consumers will appreciate our offerings,” concludes Mr. Jain.
About Dlecta Foods Private Limited: Dlecta Foods Private Limited commenced operations in
2001 primarily as a marketing company. As the sole marketer and distributor of Dynamix
Cow Ghee, D’lecta not only established the Dynamix brand, but also went on to create a market for Cow Ghee in India. Till its introduction, the consumer ghee market was dominated by buffalo ghee. Since then Dlecta has introduced a slew of products and services that include food ingredients with special focus on dairy, bakery, confectionary and nutrition. It comprehensively covers the needs of any HORECA, offering from a range of top quality value products for the industry and a small range of consumer products including cheese, ghee, UHT milk, dairy creamers and even vending solutions.
Food safety news.com, 02 March 2015
Info@suruchiconsultants.com

At least 11 people in Idaho were sickened with Cryptosporidiosis in August 2014 after consuming unpasteurized goat’s milk, according to a new report from the U.S. Centers for
Disease Control and Prevention (CDC). The outbreak first came to the attention of health authorities when two siblings, both younger than three years old, developed symptoms and tested positive for Cryptosporidium infection. Cryptosporidium is a microscopic parasite that can be found in food and water contaminated with feces.
Health investigators in Idaho tested samples of the goat’s milk and discovered multiple instances of contamination, including from unopened containers directly from the dairy and an open container taken from the refrigerator of the household with the sickened children.
After monitoring for additional illnesses, officials ultimately found 11 individuals sickened from five households where the raw goat’s milk had been consumed. Including the siblings, six people had directly consumed the goat’s milk and then developed symptoms, while another five people living in the households developed symptoms 3-8 days after the first household member.
One patient was hospitalized. Patients ranged in age from 2 months to 76 years. Authorities released the hold on goat milk from the farm on Sept. 18, once it finally began testing negative for Cryptosporidium contamination. CDC considers Cryptosporidium very contagious and recommends a number of precautions — namely, diligent hand-washing — to avoid spreading the parasite. Raw milk is milk that has not been pasteurized to eliminate potentially harmful pathogens such as E. coli, Salmonella and Cryptosporidium.
Campaign India , 02 March 2015
Dharampal Satyapal Group (DS Group) has appointed Scarecrow Communications to handle creative for its dairy business. The agency bagged the account following a multi-agency pitch. The incumbent agency was Everest Brand Solutions.
Sunil Kumar Bansal, business head, DS Group - dairy division, said, "We are expanding our offerings in the dairy segment by adding more value products to the portfolio. With the growing consumer product franchise, the creative partner plays a significant role in crafting a differentiated strategy for the brand, in the mind of the consumers. The creative approach presented by Scarecrow fit in well with our long term strategy and vision for the business.
We look forward to their active participation in this endeavour.”
Manish Bhatt, founder director, Scarecrow Communications, said, “D S Group has created iconic brands like Rajnigandha, Pass Pass, Catch and many more. Scarecrow has got an opportunity of contributing in making of the brand Ksheer, which is priceless. ”Arunava
(Joy) Sengupta, founder director, Scarecrow Communications, added, "Turning a commodity into a brand is a great process to be part of, especially when the competition is with brands like Amul and Nestle. We are looking forward to some really exciting work, as the
Info@suruchiconsultants.com

opportunity is huge. "The dairy portfolio includes fresh milk, UHT milk, ghee, paneer, khoya, chhach, dahi, flavoured milk, dairy whitener and other dairy products under the brands
Ksheer and Dairy max.
The Hindu Business Line, 28 February 2015
February 28, 2015: The Exchange had sought clarification from Mahindra & Mahindra Ltd with respect to news article appearing in DNA Money on February 26, 2015 titled "M&M wants to milk dairy sector; eyes up to Rs. 750 crore buy out "Mahindra & Mahindra Ltd replied stating "The Company wishes to clarify that the article referring to a Senior Official of the Company commenting about the INVESTMENT size, brand name and supply chain on the side lines of a CII - organized SME summit is incorrect. This news item is very generic in nature and the Company will not be in a position to comment on the same. As in the past, the
Company would continue to inform STOCK EXCHANGES about any price sensitive information before the same is made public."
Fnb News.com, 27 February 2015
The size of the packaged milk sector for the fiscal year 2012-13 was Rs 420.75 billion, as per the findings of Net scribes. “Packaged milk, as a category, is projected to grow to Rs
1,783.84 billion by 2030, registering an annual growth of eight per cent. About 73 per cent of the milk sold by 2030 would be branded,” it added. Devendra Shah, chairman, Parag Milk
Foods Pvt Ltd, stated, “The size of the packaged milk sector is estimated to be 450 lakh litre per day, translating to Rs 55,000 crore per annum.” “In terms of volume, it is growing at 7-8 per cent. Of this, 4-5 per cent is on account of consumption growth, and three per cent is due to shifting from loose milk to packaged milk in the urban and semi-urban areas,” he added.
Sustainable solutions for packaged milk industry-The packaged milk industry should create packaging solutions that save on raw material and reduce the costs. The industry should also cater to the changing lifestyle of consumers and come up with innovative packaging.
Packaging companies should also focus on cost effective recycling of packaging material, waste reduction, material savings and improved sustainability. Shah said, “One of the major
Info@suruchiconsultants.com

challenges the packaged milk industry is facing is competition from the low-priced adulterated milk sold by loose milk sector as well as the low-quality packaged milk, which often goes scot-free due to the poor enforcement of food laws.”
The poor road infrastructure and the availability of power are some other bottlenecks in the smooth distribution and storage of milk at retail outlets. As pouch packaged milk has a shelf life of 2-3 days under refrigeration, transportation and distribution in the quickest possible time is of paramount importance. Direct or indirect subsidy or control on the selling prices of milk by many state governments is another factor adversely impacting the growth of the industry. Hence, these bottlenecks are to be removed to ensure sustainable packaged milk industry.
Pricing of packaged milk compared to loose milk-The price of packaged milk has frequently increased over the last few years. A litre of full-cream milk now costs Rs 44. Similarly, toned milk prices have increased to Rs 34 per litre and double-toned milk to Rs 28, while the price of loose milk ranges between Rs 28 and Rs 32 per litre. Shah said, “In case of pouch packaged milk, in spite of the added costs of processing, refrigeration and packaging, almost
75 per cent of the rupee realised from the consumer is passed on to milk producers, whereas in the case of loose milk, it is only 60 per cent or even less.”
“A premium is charged for loose milk because of the widely-prevalent myth that it is fresher and purer than packed milk. On the contrary, vendors buying packaged milk, cutting open the pack, pouring it in cans, adulterating it with water and selling the same to consumer at a premium are very common sights in urban areas,” he added.
Challenges faced by the packaged milk sector. Packaged milk sector faces intense competition from the unorganised and loose milk sector. The former has to meet government norms and regulations. Other challenges include a shortage of cold storage units and deficit in power supply. Power is an essential requisite for any industry, especially the food processing industry (owing to processing plants and refrigerated storage systems).Poor supply chain and distribution facilities and rising packaging costs also pose a serious challenge to the functioning of the industry. Loose milk is more adulterated than packaged milk. Water turns out to be the most common adulterant in milk, and it also reduces the nutritional value of milk. If contaminated, water poses a health risk to consumers.
Non-conformity to food safety standards is 100 per cent in loose milk. The most common reason given for non-conformity is the difference between the demand for and supply of milk. In order to meet the demand, suppliers usually adulterate the milk and increase the quantity. Shah said, “The major challenge faced by the packaged milk sector is related to the improvement in the procurement and distribution infrastructure (including maintaining robust cold chains) so as to ensure that pure and hygienically processed milk reaches the consumers without compromising on its taste and aroma.”
Info@suruchiconsultants.com

“Another challenge for this sector is managing the seasonal nature of milk production (i.e. the consumption remains almost uniform, but the milk production or availability varies from season to season),” he added. The loose milk sector has started degrowing at 2-3 per cent, as the cost economics of the entire supply chain is increasingly becoming non-sustainable due to the increasing distance between the production and consumption areas, high real estate and infrastructure cost to maintain loose milk retail outlets and supply chains, increasing manpower costs, and above all, changing consumer preferences and convenience. Given these factors, the de growth of the loose milk segment is going to further accelerate.
Factors influencing rising inflation. Factors influencing rising inflation are rising wages, devaluation leading to increased import prices, increasing raw material prices, declining productivity and higher taxes. Shah said, “It is mainly because of the increasing cost of all inputs of milk production at the farmer level that the milk procurement cost has increased.
The increase in the costs of processing, packaging, transportation, etc. also contribute to inflation.”
Steps govt is taking to control food inflation. The government has decided to take several steps to control food inflation and to keep a close watch on the price movements of 22 commodities. It is planning to release five million tonne rice from state stockpiles to curb inflation. It would be releasing additional rice stocks from government warehouses for supplies to the state governments. The government has also imposed a minimum export price on onions to discourage overseas shipments and is also planning to impose this curb on the exports of potatoes.
The Central government has asked the states to amend their laws and crack down on speculative hoarding in anticipation of a weak monsoon and boost the supply of fruit and vegetables in the open markets. It would also extend a line of credit to the state governments to import pulses and edible oil to bridge the shortfall in the domestic market. Shah said, “The government’s initiative to improve animal productivity should help in the long-term.” Role
F&B companies can play to control inflation. The food processing industry lacks proper cold storage facilities and infrastructure. Companies can partner with logistics and warehouse companies, thereby ensuring the efficiency and reliability of temperature-controlled transportation.
They can work out the modalities to strengthen their back-end infrastructure. At the front-end of the retail sales market, they could go on to INVEST in chillers and freezers to store their products. This can be done to ensure that products are available at the right temperature till the last mile. Therefore, companies could put in efforts to build an efficient and reliable infrastructure.
F&B sectors that are doing reasonably well despite rise in inflation. The processed food sector is doing well in spite of the surge in inflation. The increasing prices of fresh fruit and vegetables are causing consumers to shift to processed foods, which seems to be cheaper.
The processed food industry looks to stock up fresh produce when the prices are
Info@suruchiconsultants.com

comparatively cheaper, enabling them to offset the effect of a future price rise. This is the reason for a small increase in the cost of processed foods.
Rising inflation impacted the food and beverage sector's revenues. Inflation is opening up opportunities in the food processing industry, thereby leading to an increase in the sales and revenues of processed foods. Change in food and beverage consumption pattern since inflation has risen. Consumers are shifting preferences towards cheaper produce and products. Households have reduced the consumption expenditure on expensive foods, and are looking at a healthy but inexpensive range of food products. Therefore, there been a rise in the consumption of processed and frozen foods.
Shah said, “The consumption of white milk, being a basic need for Indian households, is the least and last to be impacted by rising inflation.” “However, one can feel that consumers are slowly shifting from high-fat full-cream milk (which is priced higher) to low-priced toned/cow’s milk, which has moderate fat content. Partly this phenomenon could be attributed to the changing consumer food preferences,” he added.
Bloomberg.com, 27 February 2015
(Bloomberg) -- Nestle Pakistan Ltd., a unit of the world’s biggest food company, has started selling pasteurized fresh milk in a pilot project as it seeks to develop a new segment in the
South Asian country’s $23 billion dairy market. The company has been delivering plastic pouches of milk to 100 homes in Lahore for the past three months on motorbikes and threewheeler taxis. “It’s like when we started with our water gallons 20 years ago, which started with delivery to offices and households, it starts small and then spreads,” Nestle Pakistan
Chief Executive Officer Magdi Batato, 56, said in an interview at the company’s headquarters in Lahore. “There is a potential, but it’s still niche in my view.”
Nestle wants to diversify in the world’s fifth-largest milk market, where 95 percent of dairy products sold are unprocessed with people buying the liquid raw and then boiling it.
Companies already sell milk in ultra-high temperature form that has a longer shelf amid long hours of energy outages in the blackout-prone nation. Pakistan’s dairy industry has a value of about 2.3 trillion rupees ($23 billion) a year, according to Zoya Ahmed Zaidi, an analyst at
AKD Securities in Karachi. She projects the sector will increase in value by about 10 percent over the next five years.
‘Right Direction’. Engro Foods Ltd., a Pakistani dairy and juice company, discontinued branded shop sales of fresh, pasteurized milk after about a year in the southern city of
Karachi in December. The company was hampered by the city’s frequent power outages, said
Nauman Khan, research head at Foundation Securities. Nestle is “going in the right direction as demand is rising for branded products with the upper-middle class becoming more hygiene-conscious.” Amreen Soorani, an analyst at Karachi-based JS Global Capital, said by phone. Home delivery “is more convenient and makes it more accessible.”
Info@suruchiconsultants.com

Pakistan’s sale of processed drinking milk products are projected to have more than double in the past five years to 134.6 billion rupees in 2014, and are forecast to reach 203 billion rupees by 2019, according to Euromonitor International. Batato said he expects the Pakistani processed milk market to grow to 7 percent or 8 percent in five years. “It won’t be a step change like Turkey. ''Turkey gave farmers incentives to sell milk to documented processing companies as part of its efforts to join the European Union, which boosted the share of the pasteurized-milk sector to 70 percent from 10 percent, according to Batato. Pakistan’s middle class more than doubled to 84 million in 2002-2011, bringing almost half the nation into that segment for the first time, according to a study by Dr. Jawaid Abdul Ghani, a professor at the
Karachi School for Business and Leadership, published last year.
Full Capacity. Nestle started its Pakistani operations in 1988 in a joint venture with Milk Pak
Ltd. before taking over management of that company four years later, according to company’s website. About 80 percent of revenue is generated from milk and nutrition products including baby formula and cerelac, while the rest comes from water and beverages, according to data compiled by Bloomberg. The company’s powdered milk plants in Pakistan are running at ‘‘full capacity,” Batato said. “We are taking every single drop. There is an opportunity to import tactically a bit, but this is not our business model. ”Nestle SA owns 59 percent of the Pakistan company, according to data compiled by Bloomberg.
Fnbnews.com, 27 February 2015
The Indian and global packaging industries perceive the dairy sector as a great source of opportunities to provide advanced solutions focussing on design flexibility and delivering high-barrier technologies.
This observation was made at Futurepac, an industry-focussed seminar-cum-networkingevent aimed at analysing the emerging trends in plastic bottle technology for dairy packaging.
It was held in Bengualuru recently, and organised by Manjushree Technopack Ltd, in association with Reliance Industries. With the dairy sector increasingly opting for the retail mode, its range of milk versions like ultra-high-temperature- (UHT) processed, skimmed, powders, yoghurt, cheese, butter, cream, milk-based sweets and ice cream enable the packing sector unleash their innovative concepts to offer bottles, tetra packs and rigid plastic packaging, covering cups, bottles, pots and cans, besides closures, enabling higher shelf life of the dairy products.
Vimal Kedia, managing director, Manjushree Technopack, said, “Packaging has been a high priority for the dairy sector. Plastic packaging solutions have emerged as one of the most attractive options in dairy packaging innovation. It has introduced consumers to the simplest conveniences, such as a longer shelf life and ease of handling consumption and storage.” Prof
N C Saha, director and principal executive officer, Indian Institute of Packaging (IIP) (which
Info@suruchiconsultants.com

was set up by the ministry of commerce and industry), stated that packaging was a sunrise industry in the modern marketing landscape.
Saha stated, “It is driven by the traditional demand for rigid packaging. Particularly for milkbased products, packaging is for preservation and presentation. The dairy sector has three options in packaging: returnable containers like glass bottles, single-service plastic bottles and polythene sachets, and tetra aseptic packs for UHT milk. Besides versions of dairy products like flavoured milk in bottles, dahi in cups or pouches, and paneer, cheese and ghee in barrier packs are now offered.”
Decoding the solutions for milk packaging in plastic bottles Rajat Kedia, director,
Manjushree Technopack, said, “Milk needs to be processed to make its right for packaging.
There are companies in the world which specialise in this business. They include Krones,
GEA, APV and Stork. However, serving the dairy sector is not easy, because milk is difficult to process. There are quality risk levels, colour change, vitamin loss and issues of taste.”
“Therefore, there is the need for a different product packaging treatment process, container closure type, filling process, after-filling process and storage conditions. There are advantages of bottles vis-a-vis cartons. The former has high shock resistence, is 100 per cent recyclable and is easy to handle,” he added. Mike Rockell, director, Xenos Aseptic Bottling
Systems, New Zealand, said, “Poly-ethylene terephthalate (PET) bottles were used to increase the shelf life of milk. Nestle, too, proved PET’s success packaging its chocolate milk in it globally.” “There is also the need for aspectic processing and filling technology for milk packaging. This is where our aspectic fillers ensure low chemical use and no waste water.
There are camera systems which ensure check and reject every bottle that is incorrectly filled or capped,” he added.
“There is also an automatic system of automatic ejection of caps. Therefore, aseptic packaging for bottles, cartons and pouches enables attractive graphics, product visibility, varied shapes, easy first-time opening, effortless pouring, seal on reclose, pack size range, cent per cent recyclability, a long shelf life and sales premium,” Rockell stated. Paul
Schönheit, project engineer, aseptic technology, Krones AG, Germany, highlighted the company’s equipment for milk processing units, and its aseptic processing technology.
Shrikant Agarkar, GEA Procomac, Italy, indicated that the company’s expertise in aseptic and traditional filling lines for dairy products would enable easy single-point control for bottle sterilisation.
“A visible trend is the shift towards high-barrier packaging that is shelf-stable,” said Saha, who added that IIP was now researching on a viable packaging solution for liquid jaggery and ethnic foods to ensure that it could increase their shelf life with high-barrier properties for oxygen and carbon dioxide. “The institute was able to increase their shelf life from ten hours to 75 days, proving that wonders could be achieved with innovative and attractive polymeric materials,” he added.
“Similarly, the Indian packaging industry has several opportunities to cater to the fresh milk market. Here lightweight and easy-to-chill options would create a new dimension for the
Info@suruchiconsultants.com

packaging sector,” stated Saha. He felt that it was high time Indian packaging researchers focussed on sustainable innovative concepts, which could be moulded using lesser energy, cost-effective and viable. The Indian market size for plastic packs is estimated at $15.6 billion, and is growing at over 15 per cent annually. Seven per cent of the growth is from the rigid pack space.
While the United States is the largest consumer of rigid packaging, it would be soon overtaken by China. However, India would be among the top ten players in the rigid plastic space. Flexible packaging was valued at $130 billion in fiscal year 2014, and is estimated to touch the $163 billion-mark by 2017. The global packaging industry is to be valued at $820 billion in 2016. Currently, India stands at $24.6 billion and is placed second globally, after
China which is worth $28 billion. While global growth is five per cent, India registers 15 per cent and China clocks 18 per cent.
Business Standard, 26 February 2015
Vigilance Investigation Bureau today allegedly caught red handed a dairy department officer in Bihar's Arwal district while accepting bribe and arrested him. VIB sources said a trap was laid to arrest the officer following complaints by a resident of Rupsagar Bigha and was caught red handed while taking a bribe of Rs 10,000 for releasing government subsidy for a scheme related to integrated cow wealth development. The complainant had said the officer was demanding Rs 20,000 from him to release the government subsidy but had negotiated and the amount was settled at Rs 10000. This is the ninth such incident and VIB has arrested
10 government officers have been arrested on bribery charges.
New Indian Express.com, 26 February 2015
INNOVATION UNLEASHED: (Left) Veerasamy’s innovation knows no bounds. He has developed a pulley bridge that he raises at night to keep wild animals away from his poultry house. Also, an out-of-service grinder has now become a fodder bowl for cows. (Right)
Saranathan’s dairy farm, equipped with modern gadgets like milking machine and dairy separator that separates milk, churns butter and collects cream, in the midst of pucca rural surroundings.
INNOVATION UNLEASHED: (Left) Veerasamy’s innovation knows no bounds. He has developed a pulley bridge that he raises at night to keep wild animals away from his poultry house. Also, an out-of-service grinder has now become a fodder bowl for cows. (Right)
Saranathan’s dairy farm, equipped with modern gadgets like milking machine and dairy
Info@suruchiconsultants.com

separator that separates milk, churns butter and collects cream, in the midst of pucca rural surroundings.
TIRUVARUR / NAGAPATTINAM: While Veerasamy talks about how agriculture thrives in
Cuba, Saranathan rattles off about value addition in farming and marketing techniques for his dairy products. The first is an MA in political science, while the latter is a cost accountant and MBA graduate. No, these are not the run-of-the-mill city people with white-collar jobs, they are your next generation farmers armed with degrees and not ploughs. In fact, the plough is now obsolete in the Tiruvarur, Nagapattinam and Thanjavur districts, replaced by increasingly modern techniques adapted by increasingly educated farmers.
What’s more, more and more sons and daughters of this crop of farmers are taking to agriculture — and implementing what they’ve learnt in college. While Saranathan incorporates several MBA and cost concepts into his profession – the ‘value addition’ at his dairy farm includes selling three dairy products with just one simple small machine – he sells milk, butter and cream (used by bakeries).
Saranathan, Thiruvarasamoorthy and Veerasamy-Veerasamy’s chest swells with pride as he talks about his son, a third year civil and structural engineering student, operating and repairing his farm machinery, while his daughter, an electrical and electronic engineering graduate, is also an integral part of the nine acres the family owns in Sozhiyankottagam in
Panagatankudi village, in Mayiladuthurai taluk.
Asked why she quit her job at a motor company that fetched a decent pay package, Kasturi says farming is what interests her the most — something proved when she simply cannot stop explaining how they make organic fertilisers and pesticides and what crops they grow.
Saranathan, too, says he knew he wanted to take up farming right from the start, while
Thiruvarasamoorthy informs that his son gave up his `50,000 a month job to come back to his roots.
Kasturi is now pursuing a certificate course in poultry farming through Indira Gandhi
National Open University to mix up traditional with modern methods to develop a kozhi pannai (poultry farm) with local varieties. She has also completed short-term field trial courses for manufacturing value added products and vermi compost.
Progressive farmers like Veerasamy and Thiruvarasamoorthy, former panchayat president from Koadangudi, strictly say no to chemical fertilisers, but whip up their own brew. Both farmers open and show off drums full of their homemade concoctions - the smell that invades your nose is overwhelming. While Veerasamy showed us a homemade insecticide consisting of ‘poisonous’ leaves, cow dung, and water, Thiruvarasamoorthy showed off Panchagavya, a natural fertiliser made of five ingredients from a cow - milk, ghee, curd, urine, and manure.
To this, the innovative farmer adds rotting fruits - both farmers like to experiment with their recipes and available items. They don’t like to even throw away the remains of fish, which usually go straight to the dustbin in urban areas.
Info@suruchiconsultants.com

Thiruvarasamoorthy reveals that there is a technique to ‘manufacture’ earthworms in the paddy field. Amritha Karaisa and Jeevamritham, made from cow’s dung, urine, jaggery and other natural ingredients are delivered to the field in parallel with water using sprinklers with a range of 80 feet. Veerasamy shows a tank where he grows azolla, a water-based Nitrogenfixing plant, as fertiliser. “This plant has tremendous potential to make some extra money,” he says. Indeed, selling these fertilisers and pesticides could be a beneficial side-business, as
Thiruvarasamoorthy, too, reveals. “Fish acid sells for `150 a litre, while Panchagavya sells for `50 a litre,” he says. Without a single penny spent, a tank in Veerasamy’s house is covered in green with azolla.
Veerasamy has not wasted a single inch of land. Rather than concentrating on one or two particular crops, he has planted bitter gourd, spinach, mango and several other lesser known varieties like ‘neer goyya’ (water guava, a Kerala-based variety, that we sink our teeth into and find delicious). Saranathan too, claims that he has made only losses from paddy and sugarcane, and is slowing switching over to other crops like high-intensity mango, grams and pulses. Veerasamy has now come up with a new initiative - he has ordered about 10 boxes of honeybees from Coimbatore, and plans to start tapping honey soon. It is indeed sparks like these who keep the spirit of agriculture alive, with their innovation and passion.
Ndtv, 26 February 2015
Mumbai: Mahindra Agribusiness is keen to enter the over Rs 3-trillion Indian dairy sector through acquisition of a brand worth Rs 150-750 crore that has good supply chain and branding in place.
Money is not a problem when it comes to a good dairy brand. We can INVEST anything between Rs
150 crore to Rs 750 crore. But we are particular about the brand name and the supply chain, a senior official of the Mahindra Group firm, who wished not to be named, told PTI on the side lines of a CII- organised SME summit here today.
More than 80 per cent of the over Rs 3-trillion dairy sector is in the unorganised space and this offers a huge opportunity for the company that is the largest farm equipment maker in the world by volume.
Asked what would be the focus of the company - premium milk or a mass brand - he said entering the high-end space makes better business sense. About the rationale for the diversified Group to enter the milk business, the official said being the largest farm equipment player and also a leading entity in the agri segment, foraying into the dairy sector would only complement its business cycle.
Mahindra ShubhLabh Services, a Group entity, has emerged as the largest grapes exporter by working directly with farmers. It undertakes contract farming of grapes in Maharashtra and provides farmers with technical support. Dairy can supplement farmer incomes in tough times and act as a hedge against climate risks, he said, adding the company wants to replicate the supply chain success in grapes collection in the milk segment too.
The Hindu, 25 February 2015
Info@suruchiconsultants.com

It was unveiled on the premises of National Dairy Development Board. The association of late
Varghese Kurien, Father of the ‘White Revolution’, with Erode district was cemented for posterity today with the unveiling of his bust on the premises of National Dairy Development Board in
Chithode. The bust, stated by farmers here to be the first in South India, was unveiled by nonagenarian S.K. Paramasivam (94), former Erode MP, in the presence of E. Madhavan, retired
South Zone Director of National Dairy Development Board.
Late Varghese Kurien who had lived in Gobichettipalayam with his family before ushering in the
‘White Revolution’ had special interest in strengthening the dairy movement in Erode district, C.
Logusamy, District-unit Organising Secretary of Tamilzhaga Vivasayigal Sangam, said. The bust was sponsored by Mr. Paramasivam, out of the Rs. 1 lakh award he had received long back for best performance as Aavin Chairman from the Indian Dairy Association. Mr. Paramasivam said he was ecstatic about the unveiling of the bust on the eve of his 95th birthday. For the last two years, the former MP had kept the bust at his home. Farmers’ associations took the initiative to secure sanction of the Central Government to install the statue on the premises of NDDB that is adjacent to the Aavin
Complex.
Farmers who took part in the programme adopted resolutions seeking national-level celebration of Kurien’s birth anniversary as National Milk Development Day in recognition of his contribution for India’s self-sufficiency in milk. The Erode District Milk Producers
Association drew the government’s attention to the economic backwardness of farmers from whom land had been acquired for establishment of Aavin complex and NDDP complex, and sought employment for the descendants.
The Hindu Business line, 24 February 2015
CHANDIGARH, FEB 24: Punjab Chief Minister Parkash Singh Badal today announced a slew of incentives to give a boost to government’s ambitious programme of agriculture diversification. The incentives include bringing the power tariff rates applicable in dairy, fishery, goatry and piggery at par with agriculture sector and advancing soft loans to the beneficiaries of goatry and piggery at interest rates equivalent to dairy sector. It also includes stabilising the milk purchase rate and making it uniform across the state besides introducing single window for the promotion of allied farm sector.
Presiding over a series of meetings with the progressive dairy farmers, piggery, goatry and fishery beneficiaries here, the Chief Minister said that the Punjab State Power Corporation
Limited would henceforth charge farm tariff from dairy farms as against the commercial rate being charged at present. He said that the eligible beneficiaries of allied farming sector would get the power bills on the reduced tariff from existing Rs. 7.75 per unit to Rs. 4.57 per unit from the coming cycle.
Acceding to a major demand of the dairy farmers, the Chief Minister announced that milk cooperative - Milkfed, Punjab, would pay uniform procurement price of milk to the milk producers throughout the year across the state, according to an official release here. Badal said that the loss incurred, if any by Milkfed, in the implementation of the decision would be
Info@suruchiconsultants.com

taken care of by the government. Likewise, Badal said that the state government would provide 50 per cent subsidy on all the components of two to six local/domestic cow breeds dairy units for the promotion of indigenous breeds. The Chief Minister also told the farmers that he has been actively pursuing with the Centre the matter of lowering the fat content in the standards fixed for cow milk for Punjab from 4.0 per cent to 3.5 per cent and thereby to establish parity with other States of the country.
Fnbnews.com, 24 February 2015
With the presentation of Union Budget 2015-16 just a week away, Devendra Shah, chairman,
Parag Milk Foods Pvt. Ltd, highlights point-wise what are his and his company’s expectations for the dairy industry: As you are aware, milk is the largest agriculture produce in the country, with its output much higher than rice, wheat or sugarcane. Further, with milk production projected to reach 140 million MT during the current year, its revenues are expected to reach Rs 3.60 lakh crore in value terms. Milk today touches the lives of millions of rural milk producers, especially women engaged primarily in this vocation. It provides much-needed basic nutrition to millions of consumers, especially children and aids in mental
& physical development of the citizens of nation.
1. To institute dairy technology mission on milk productivity improvement
As you are aware, India has 21% of world’s milch animal population at 371 million heads
(57% of total buffalo population; 111 million heads & 16% of cattle population; 260 million heads). However, milk productivity of Indian milch animals is quite lower at around 1,000 litre/ animal. Therefore, India is able to produce only 17% of world’s total milk production.
Traditionally, India was known for its indigenous breeds of cattle & buffaloes; however the genetic material was lost over last 2 centuries.
Major issues involved in increasing productivity are:
Increasing breeding infrastructure: current requirement of artificial insemination doses for entire milch animal population is more than 740 million, against that merely 10% semen doses are available. Further, there is limited coverage of artificial insemination network and availability of skilled professionals. Even in areas where AI is performed, there is requirement of wide-spread progeny testing programme to identify best genetic material.
Availability of quality feed & minerals is a vital issue. Export of oilseed extractions leads to protein shortage in the country and increases its cost. Duty on exports of oil cakes and extractions would assist in increasing milk production further. Awareness amongst milk producers regarding animal husbandry practices. There is a need to start short-term courses on farm management practices, modern animal management practices, etc. for milk producers, with adequate grants from government to institutes providing such courses.
Info@suruchiconsultants.com

In view of the above, we firmly believe that setting up of Technology Mission on Milk
Productivity Improvement on the lines of other technology missions established earlier will go a long way. The mission would be solely responsible for improving productivity of milch animals and all concerned government departments would extend their entire support to the mission to make it a great success in a strategic manner. The mission may take over all the existing government schemes for productivity improvement like National Project on Cattle &
Buffalo Breeding (NPCBB) and roll out its own set of activities.
2. Free & duty-free import of semen & other requirements of dairy farms.As you are aware, due to lower productivity of animals and shrinking of farm holdings, dairy farmers are moving from small herds to large farms. In order to demonstrate the economies of scale in large-scale dairy farming as well as to conduct research on increasing productivity of milch animals; we have established India’s largest integrated dairy farm with around 3,000 cows under management and we are planning to increase the herd-size to around 5,000 apart from establishing a separate farm for development of indigenous breeds of cattle. However, large farms like ours are facing procedural hurdles in obtaining licences for importing live animals, semen (including sexed semen), embryos, vaccines, fodder, etc. specifically meant for these cattle. We would therefore request you for suggesting the following policy amendments;
Permit import of semen (including sexed semen), embryos & live animals for captive use under OGL. This would help augmenting genetic material of cross-bred as well as indigenous breeds of cattle. Allocation of a licence to import vaccines and veterinary drugs specific to herd needs for effective controlling and curing diseases on the farm. Importation of dry cow therapy for cows at the drying off stage. This will reduce the incidence of new mastitis cases in the following lactation and reduce somatic cell counts. Free & duty-free import of fodder like alfalfa in view of acute shortage feed in the country and spiralling prices. Provide subsidy on usage of sexed semen and also arrange to make this technology cost-effective.
3. Buffer stocking mechanism for dairy commodities
All across the world, governments keep buffer stocks of milk powders, butter, etc. in order to support the milk producers, on one hand, and check undue price fluctuations, on the other hand. We understand that these systems of buffer stocking mechanism for milk products are well established in the US and European countries. In case of India too, similar systems exist for other agricultural commodities like wheat, rice, etc. Similar mechanism of buffer stocking of milk products is required in India in order to provide cushion to milk producers as well as consumers. We therefore suggest that Government of India should consider buffer stocking mechanism for skimmed milk powder and white butter, by procuring it in limited quantity & maintaining the stock.
As described above, the current milk production of the country is 140 million MTs, which is equivalent to 20 million MTs of milk solids and as per the projections of the Planning
Commission of India; total milk production would reach 180 million MTs by the year 2020.
Further, milk production increases by around 30% during peak months. If during this peak season, certain minimum volume of milk in terms of milk solids is procured by the
Info@suruchiconsultants.com

Government of India, it would provide the support mechanism to the farmers as well as consumers.
Even if the Government of India procures merely 0.25% of the total production, it would amount to just 45,000 MT of milk solids based on current production. Within this 45,000 MT of milk solids, skimmed milk powder (SMP) and white butter may be procured in the ratio of
2:1. This quantity of buffer stock may be purchased by the Government of India at market price and the inventory carrying cost and rest of the expenses can be compensated through budgetary support. We also suggest creation of a separate corporation like the erstwhile
Indian Dairy Corporation with sufficient funds to buy and ware-house the stocks of milk solids as against delegating the work to any existing agency already engaged in the sector and may have business interests. We are sure that with such an initiative of the Government of
India, millions of milk producers as well as deserving consumers would benefit to a great extent from the market fluctuations and would provide much-needed food security to the nation.
4. 15-Year tax holiday on direct & indirect taxes for integrated dairy projects. Establishment of an integrated dairy project right from dairy farm to manufacture of finished products is highly capital-intensive and the gestation period of such projects is quite higher. We would therefore request for the following: While the government has provided a five-year tax exemption under Income Tax for integrated dairy projects from last year, looking at the quantum of investments and high gestation period, full tax exemption from direct taxes may be provided minimum for a period of 15 years. Further, around 30% of the project cost for integrated dairy units comes from indirect taxes like excise, customs & sales tax on capital equipment purchased in this regard. Therefore, 100% exemption must be provided from indirect taxes for capital equipment purchased for the project. Further, exemption in indirect taxes, especially VAT may be provided for products manufactured by integrated dairy projects.
5. Providing subsidy to dairy companies on CAPITAL INVESTMENT in milk preservation
& cold chain infrastructure. As you are aware, milk is a highly perishable commodity and requires immediate processing and cold storage to enhance its shelf-life. However, setting up of processing & cold chain infrastructure for milk entails very high levels of investment; right from milk procurement till it reaches the end-consumer and increases interest burden. Dairy companies are facing difficulties in expanding the processing & cold chain infrastructure as, on one hand, they need to provide nutritious milk & milk products to consumers at value-formoney proposition and, on the other hand, maximise returns to milk producers.
Therefore, there is an urgent need to provide fillip to milk processing & cold chain infrastructure in the country. While government assists other sectors by providing them tax incentives, subsidies and other facilities when they set-up infrastructure in Special Economic
Zones (SEZ) or designated food parks; in case of milk processing, due to the perishable nature of commodity, it is not possible for dairy companies to establish their infrastructure in such designated places and they are forced to set up units near to milk producing region.
Info@suruchiconsultants.com

Therefore ultimately it is the dairy farmers, who are deprived of the various benefits provided by government.
We therefore suggest providing subsidy on capital cost incurred by dairy companies for following activities: Installation of modern equipment for milk procurement like bulk milk chilling units, automatic milk collection systems, etc .Milk & milk product distribution infrastructure like warehouses, cold-rooms, deep-freezers, refrigerators, etc. We recommend that the government should provide minimum 30% of the capital cost in form of subsidies for above activities, in order to motivate dairy companies to expand their processing & cold chain infrastructure.
6. Classifying advances to dairy companies under priority sector lending
We wish to draw your kind attention to one of the policy anomalies of lending by the Reserve
Bank of India and seek your help in solving one of our major problems related to financing to dairy companies. Dairy companies have to store the dry milk powder for a longer period to take care of seasonal fluctuations, however, for making payments to the farmers, they require working capital facilities. Further, in order to modernise their plants and also to manufacture new value-added products at low cost, the dairy companies also expand / construct new capacities for which they need term loan facilities. They stock the excess production for marketing across India and export outside India and thus, have working capital requirements.
The Reserve Bank of India focuses on the “priority sector” for its lending as those sectors that impact large sections of the populations, the weaker sections and sectors which are employment-intensive. However, when it comes to disbursement of short- term and longterm loans for dairy companies, our activities are not treated as “priority sector” category for direct finance to agriculture. The Reserve Bank of India vide circular No. RBI/2006-
2007/358 dated 30-4-2007, as per clause I (1) and section I (1.2.2), has classified finance up to an aggregate amount of Rs one crore per borrower and one third in excess of Rs one crore per borrower given for dairying activities under direct finance to agriculture category.
However, considering large operations of dairy companies, limit of Rs one crore is negligible.
The limit should be removed to meet short-term and long-term funds requirements of dairy companies.
The entire finances to dairy companies should be treated as direct finances to farmers, covered under priority sector lending norms as these organisations have been created for the betterment of rural farmers and providing outlet and forward integration to farmers for their produce, having better price-realisation. In view of the above, we suggest you to recommend the government and RBI to classify advances to dairy sector as priority sector at the earliest for the benefit of millions of farmers of India.
7. Assistance in R&D
We suggest that the government should give assistance to dairy companies who are undertaking research & development projects including development of new products &
Info@suruchiconsultants.com

processes, which will aid the whole industry in generic manner. This will help more money being spent on R&D, which is the need of the sector.
8. Assistance in export of consumer products
We suggest that the government should provide minimum 10% assistance for development of consumer dairy products with ”Made in India" brand abroad with stipulated conditions of quality, distribution infrastructure and track record. This assistance should be for all promotions like exhibitions, advertisements abroad and super market promotions, road shows and other marketing activities carried out abroad.
Process technology drinks-business, 23 February 2015
India’s Amul dairy brand maker Gujarat Cooperative Milk Marketing Federation (GCMMF) is planning to establish a new dairy processing facility in Kolkata, West Bengal. This forms a part of GCMMF's strategy to INVEST around INR50bn ($803.7m) to ramp up milk processing capacity during the next three years. The proposed dairy facility will see around
INR2.5bn ($40m) in INVESTMENT.GCMMF MD Sodhi was quoted by The Economic
Times as saying: "We have received 16 acres a few kilo meters away from Kolkata and necessary approvals from the West Bengal government.
"It will serve Kolkata and its vicinity with fresh produce such as milk and lassi, and processed products such as ice cream and butter for the East. "With a capacity to process close to 10 lakh liters of milk every day, the facility will produce milk, lassi, yoghurt, butter and ice cream. The operations at the dairy facility are expected to begin in the next 15 months. Currently Amul has 51 plants across the nation, of which 40 are located in Gujarat.
The milk processing capacity of the company is expected to increase to 320 lakh liters per day from the current 230 lakh liters of milk per day in the next three years.
Business Standard, 23 February 2015
Australia is keen to invest in aquaculture and dairy sectors in Andhra Pradesh. This was conveyed by Australia's Consul General Sean Kelly during a meeting with Chief Minister N.
Chandrababu Naidu here Monday. The consul general, who is based in Chennai, said
Australia specializes in sustainable fisheries management and could work with Andhra
Pradesh in this sector. "We will ensure that fisheries sector is managed well without exploitation of marine life," an official statement by the state government quoted Kelly as saying.
Kelly said Australia is also keen on collaborating with Andhra Pradesh in healthcare management, mining, gas and energy sector, logistics, sports, skill development, education,
Info@suruchiconsultants.com

human resource and pension funds. The consul general said Australia could collaborate in
Intellectual Property (IP) and medical research as Andhra Pradesh is strong in pharmaceutical sector. Kelly invited Naidu to visit Australia to participate in seafood convention in Perth in
October this year. Naidu accepted the invitation and said that he could also send a delegation to Australia before October to study the country's aquaculture industry.
Naidu, who made a presentation at the Indo-Australian Summit in Delhi last month, said he aims to make Andhra Pradesh the aquaculture capital of the world and the marine processing hub of India. He said Australia could also explore opportunities in policy-making for marine industry, research, equipment and machinery. Stating that he aims to make Andhra Pradesh a logistics hub for Southeast Asia, the chief minister said Australia, which has a strong presence in logistics, could help the state.
Shropshire star, 23 February 2015
Shrewsbury and Atcham MP Daniel Kawczynski has called for changes to be made to the taxation of the dairy industry to help struggling farmers. Mr Kawczynski said having a more stable billing structure would be a boost for farmers which have been hit with falling milk prices over the last few months. He has signed a letter written on behalf of several MPs to
Chancellor George Osborne which calls for changes to the taxation of dairy farmers. He said:
"This is such an important issue for Shrewsbury and Atcham as we have a long standing dairy industry that is a vital local employer.
"I have raised the alternative options available for taxing the dairy industry, and preferably switching to a five-year average which should provide a more stable billing structure. "I am working hard to ensure that the dairy industry is preserved and continues to thrive in
Shrewsbury and Atcham. "The letter said: "A number of us are members of the recently established Dairy All Party Parliamentary Group and represent a number of dairy farms and other linked industries that rely heavily on the success of the dairy industry.
"The dairy market is in dire straits at the moment, with the cost of milk plummeting, with some major supermarkets selling it for as little as 22p a pint. "There are no profits to be had for dairy farmers; indeed, they are doing all that they can to stay afloat and in the business.
"The government could help more farmers to survive this downfall by altering the way that they are taxed. "If we changed the taxation rules so that the amount that farmers are taxed by is a five-year average, as is done in Ireland, we may well see more farmers hold on to their businesses.
"They have recently had their January tax bill. Their next tax bill is at the end of June and many dairy farmers are wondering where the money to pay will come from. "National
Farmers' Union regional director Rob Newbery said he was pleased with the support given by
Mr Kawczynski." Daniel Kawczynski remains a robust advocate for Shropshire dairy farmers
Info@suruchiconsultants.com

and those in his constituency and we are pleased to see his continued support, as we work to safeguard the sector at this difficult time," he said.
"The union has been busy working with processors and retailers over the past weeks and months, looking for ways to mitigate the impact of plummeting dairy COMMODITY
PRICES on Shropshire farmers' bottom line. "Last week we were at an industry wide roundtable meeting hosted by Defra Secretary of State Elizabeth Truss to look at current issues in the British dairy sector and discussed ways of helping dairy farmers across the country who are struggling to cope with the impact of current market volatility. "The
Secretary of State made it clear that she will take forward many of our demands for immediate help such as the ability to stagger tax payments and support from banks.
"We continue to believe that government should also look at addressing other important areas including lifting the EU intervention price and profit averaging over a longer period. "In the short term a working group will be convened to look at all aspects of milk contracts, including implementing the recommendations of the Voluntary Code review and the need for more trust and transparency when it comes to milk buyers' contracts with their suppliers."
Zee news, 22 February 2015
Chandigarh: The Haryana government has decided to set up 'gau abhyaranyas' (cow sanctuaries) for the conservation of stray cows in the state. These will be set up at strategic locations in the state, including in Sirsa and Bhiwani districts, Haryana Agriculture, Animal
Husbandry and Dairying Minister Om Prakash Dhankar said in a statement issued here. There are about three lakhs cows in the state, including 1.5 lakh stray cows, he said.
To strengthen and effectively implement complete ban on cow slaughter, a new legislation has been drafted which would be tabled in the budget session of the state Assembly beginning next month, Dhankar said. Once the legislation is passed, the state government would effectively implement the Gau Samvardhan Act all over the state, he said. The minister said that the state government would also provide subsidy on purchase of buffaloes and bullock-carts.
Subsidy to the tune of 50 per cent would be given to the farmers for setting up dairy units for indigenous cows and mini-dairy units, he said. "A sum of Rs 77.9 crore Gausamvardhan project has been approved by the central government under the National Programme for
Bovine Breeding and Dairy Development for integrated development of indigenous cattle, including Hariana, Sahiwal and Gir, in the state.
"The scheme would be implemented in five years and a provision of over Rs 25 crore has been made for the first year," he said. Dhankar said for further encouraging farmers to rear good quality indigenous cattle breeds of high milk yield, the state government has decided to start performance recording for these breeds and provide cash incentives ranging from Rs
10,000 to Rs 20,000 on the basis of milk yield. Dhankar said that subsidy of 50 per cent
Info@suruchiconsultants.com

would be provided for setting up dairy, piggery, sheep and goat units by Scheduled Caste families.
The news, 21 February 2015
LAHORE: Milk price in Pakistan is high because of low productivity of its milking animals compared with European Union, United States and China, an agriculturist said on Friday.
Muhammad Suleman said the average herd size in Pakistan is less than three animals/farm.
This increases the cost of production. The Food and Agriculture Organisation statistics reveal that Pakistan obtains 37 million tonnes of milk from 21 million animals compared with over
40 million tonnes obtained by China from 15.5 million animals and 90 million produced in the United States by 9.0 million cows. It added per cow yield in Pakistan is 1,229 litres of milk, compared with 9,901 litres in United States, 2,918 litres in China, and 1,349 litres in
India. Similarly, a buffalo produces 1,934 litres of milk per annum in Pakistan, while it is
5,596 litres in China, and 1,799 litres in India. Suleman said low herd size not only increases the cost of labour, but also of feed and animal healthcare. Another reason for the higher cost is the longer transportation routes, since the milking animals are mostly reared in remote areas without farm to market roads. A large quantity of the produce at times is spoiled due to the longer routes.
He said while poor dairy farmers struggle, many industrialists and big landholders have established modern dairy farms by importing high yielding cows from Australia or United
States. Average milk yield of these cows varies from 22-27 litres a day, which is almost the same as milk produced by a US cow. These farms vary in size from 1,000 to 6,000 cattle, he said. Compared with an average yield of four litre per day of a normal Pakistani buffalo or cow, the productivity of these imported cattle is five to seven times higher, Suleman explained.
Still, he added, the rate of milk produced by these farms is the same or higher than provided by the common milkman. He said most of the milk produced by these farms is purchased by the three large milk processing units, while some, like the Chaudrys of Gujrat and Sharifs from Lahore sell the milk at the same retail price as charged by top milk processors.
Progressive farmer Hamid Malhi said Pakistan is the fourth largest producer of milk in the world after India, United States, and China. He regretted that Pakistan is increasing its milk productivity by increasing the number of milking animals, instead of increasing the yield per animal. He said the situation in India is also the same, which produces 120 million tonnes of milk per year from over 81 million cows and buffaloes. Malhi claimed the white revolution the government talks about would not come without increasing the milk yield of livestock.
American farmers, he added, feed one cow to obtain the same quantity of milk that a
Pakistani farmer obtains by feeding 4.5 buffaloes or cows. This, he added, is crowding out land needed for other productive crops.
Info@suruchiconsultants.com

Malhi said the dairy sector has shielded the farmers from crop failures. In most parts of
India, cattle raising is separate from crop cultivation, whereas in Pakistan, crop farmers rear two or three milking animals that act as an insurance against any unfortunate crop failure. He said the number of buffaloes in Pakistan was 2.57 million in 1961 that has now increased to over 11.2 million. India increased its buffalo population during the same period from 12.6 million in 1961 to 37.2 million. In China, the buffaloes doubled from a total of 2.6 million in
1961 to over 5.45 million. It is worth noting that the buffalo population quadrupled in
Pakistan, tripled in India and hardly doubled in China during a span of four and a half decades. But the increase in yield of Chinese buffalos was phenomenal during this period. In
1961, Malhi added the milk yield of Chinese buffalo was 30 percent less than Pakistan, now it is 3.5 percent higher. The Chinese are improving the breeding methods of livestock. They have developed high milk yielding breeds, which both India and Pakistan have failed to develop.
Times of India, 21 February 2015
NEW DELHI: Health-conscious consumers in India are not even sparing junk food, with
Nestle India saying it is working on removing artificial flavours from its chocolates here.
Nestle said it has already stopped using artificial colours in its chocolate and confectionery portfolio in India. "Though there are different constraints in replacing flavours, our application teams are working on it and already some of the premium products including
Nestle Extra Smooth Chocolate do not contain artificial flavours," said a Nestle India spokesperson.
Nestle India, a unit of Switzerland-based Nestle with around $10 billion in sales, sells chocolates such as, Munch, Milky bar and Kit Kat here, apart from beverages and snacks like
Nescafe and Maggi. India's chocolate sales crossed Rs 10,000 crore in 2014, up 24% a year earlier, according to market research firm Euromonitor. While Mondelez India (formerly
Cadbury) dominated the market with around 56% share, Nestle took the second spot with
17% share. Given that India's per capita chocolate consumption is lowest among emerging markets, it offers a huge potential for growth to chocolate makers.
However, Mondelez, the maker of Oreo and Cadbury Dairy Milk, made no commitment regarding artificial ingredients in some of its products. Though its bestsellers such as, Dairy
Milk (India's number one chocolate brand) and Bournville carry no artificial colours, when asked about others, a Mondelez India spokesperson said, "All food colours we use are approved by appropriate regulatory agencies. Our foods are clearly labeled for consumers to refer to it."
On the other hand, the world's biggest chocolate and candy maker Mars, which sells brands such as, Snickers, Bounty and Twix here, said it uses no artificial colours and flavours in its chocolates. The clamour among Indian consumers for healthy products has been steadily increasing with burger chain McDonald's announcing earlier this month that it has cut salts
Info@suruchiconsultants.com

and calories from its burgers and fries here. Many top FMCG players such as, PepsiCo have also tried to gain traction in the healthy-alternative category with their range of baked crackers and chips.
The Economic Times, 20 Feburary 2015
MUMBAI: To expand its market in the northern region, Parag Milk Foods is foraying into
Uttar Pradesh with 'Gowardhan Ghee' and Go products and is eyeing Rs 500 crore business from the state by 2017."We are looking to consolidate our presence across all major markets and are hence, keen to further enhance our brand connect with Uttar Pradesh. The market entry of Gowardhan ghee in UP will help us strengthen our market reach and in increasing our brand portfolio across the dairy products," Parag Milk Foods Chairman Devandra Shah said in a release.
"With close to 16 per cent of India's population, UP becomes a very important state in business plans of any organisation," he added. The company has a UP specific business plan for the next two years in place, coined as 'Mission 500', under which they are targeting to make Gowardhan ghee 500 tonnes a month brand and Go products (cheese, yogurt, UHT milk) 500 tonnes per month and Rs 500 crore business by 2017.
The company, he said, will drive this with focused distribution expansion and plans are in place to cover all 700 urban towns by the end of 2015, up from today's direct reach of top 150 towns. "Also, we will have indirect distribution through wholesale feeder markets with focus on affordable small packs across portfolio. With this, our endeavour is to give the UP consumers a chance to try a wide range of quality cow milk products," he added.
The distribution task chalked out is to make the company's products available in 20,000 outlets in 700 urban markets and ensure wide consumer reach, he said. "While we have had strong double digit growth in the past, our future plans are exciting enough to accelerate growth rates to 50 per cent, over the next few years. This will happen with venturing into newer categories and adding new brands in our portfolio," Shah said. The company also has lined up new products and brand launches over the next 12-18 months, he added.
Fnbnews.com, 20 February 2015
Rural prosperity would not only mean economic growth for people living in rural areas, but also freedom from hunger, under-nutrition, ill-health and lack of sanitation, according to T
Nanda Kumar, chairman, National Dairy Development Board (NDDB). Kumar made this observation while delivering the keynote address at the 43rd Dairy Industry Conference with the theme Dairying for Rural Prosperity organised by the Indian Dairy Association (IDA) in
Kolkata recently. According to Kumar, dairying in India remains a small-holders’ livelihood
Info@suruchiconsultants.com

option. Milk as a provider of nutrition and dairying as a provider of employment and income have to be recognised as effective state interventions in the context of rural prosperity.
Planning for dairy development needs to be seen in this context.
The NDDB chairman said, “Today there are about 200 dairy cooperatives with about 16 million producer members in around 162,000 dairy cooperative societies. The dairy cooperatives have created a vast infrastructure chilling: 390 LLPD; processing: 560 LLPD, drying: about 1,450 MTPD and cattle feed manufacturing: 12,715 MTPD. They collectively procure about 340 LKGPD and sell 290 LLPD. ”Dairy cooperatives have ensured inclusive involvement of all sections of the milk producing community. Within this inclusive coverage, the membership of the dairy cooperative societies is predominantly drawn from the segments of rural society including women.
He said that the cooperatives have 4.3 million women members at present which constitute about 30% of the total members of the dairy cooperative societies. There are programmes to prepare women for governance and leadership roles in their cooperatives. Of the total women members, about 2.4 lakh have emerged as elected leaders in the management committees of their village dairy cooperatives and around 230 of them have risen to be elected on the boards of their district milk unions. Around 25,000 societies are exclusive women dairy cooperative societies. Further, two milk unions, viz., Ichhamati Cooperative Milk Union in West Bengal and Mulukanoor Womens Mutually Aided Milk Producers Cooperative Union in Telangana have evolved as all-women cooperative dairies completely managed and governed by them.
Kumar said that from 1988 onwards, NDDB had placed a major emphasis on women’s education and capacity building as part of the Cooperative Development programme, an activity designed to strengthen the role of women in the control and governance of the dairy cooperatives. NDDB encourages the participation of at least 50% of the trainees being women in its training programmes. With increasing feminisation of agriculture, the role of women in dairying activities is expected to increase. This provides us with an excellent opportunity to bring more women into the organised dairy sector.
Training programmes designed exclusively for women are being promoted. NDDB has launched an ambitious programme of enrolling 2.5 million women as new members of dairy cooperatives in the next 10 years. Payments directly to women through their bank account will ensure economic freedom for our women and result in more equitable social and economic growth.
NDDB’s National Dairy Plan Phase I (a Central Sector Scheme) focusses on 16 major milk producing states and envisages a few key outputs: Production of 2,500 High Genetic Merit cattle and buffalo bull through Progeny Testing and Pedigree Selection programme;
Production of 100 million semen doses per annum by strengthening A and B grade semen stations; Providing balanced ration to 2.7 million milch animals in 40,000 villages through local resource persons using locally available feed ingredients. This will be achieved through a digital connect with dairy enabled by Information Network for Animal Productivity and
Info@suruchiconsultants.com

Health (INAPH); Strengthening and expanding milk procurement system at village level by covering 24,000 villages and enrolling about 1.2 million milk producers.
Focus would be to cover about 50% women as new milk producer members. The benefits accruing will, however, cover other states as well. He said that other schemes like National
Project for Bovine Breeding and Dairy Development (NPBBDD), Livestock Health and
Disease Control (LH&DC), National Livestock Mission (NLM) and the RKVY are also in operation. Convergence with all programmes in the dairy sector is the need of the hour to ensure that available financial resources are put to optimal use.
While hinting about bigger challenges, he said that climate change is one of them. The projected rise in temperature coupled with variability in precipitation is likely to aggravate the heat stress in dairy animals impacting their productive and reproductive performance thus affecting the vulnerable sections of milk producers. In addition, the impact on health of animals is yet to be fully understood. There could be even more pressure on feed and fodder.
However, Eastern India which is blessed with more water than some of the other parts of the country has an inherent advantage in promoting dairying in a much bigger way than it has done so far. The demands for poverty alleviation in this region also point to the need for a large integrated programme for dairy development. Such a programme should address not only genetic improvement but also upgrading of present capabilities in processing, animal healthcare and veterinary services, managing feed and fodder and more importantly creating an efficient marketing network linking rural dairy producers to the markets and ensuring that the dairy farmers (in most cases, women) get their due share of the consumer rupee.
Chairman NDDB said that though milk is the largest AGRICULTURAL COMMODITY in the country, the value of which is much more than the combined value of paddy and wheat, budgetary provision for the sector is inadequate and much lower compared to agriculture.
Kumar opined that the growth in milk production so far has been achieved by a combination of increase in animal population and productivity. We need to shift the balance in favour of increased productivity with lesser animals. At present about one fourth of country’s breedable animals are covered under Artificial Insemination (AI). This needs to be stepped up to bring about productivity improvement through genetic ‘upgradation.’ Management of feed and fodder is going to be crucial. Area specific combinations need to be worked out and propagated.
The share of the organised sector (including private) in handling of liquid milk is about one third. In the context of consumer concerns and food safety, the share of the organised sector needs to be doubled. It is therefore imperative that all the organised processors in the sector work together to provide safe milk to consumers and a fair price to farmers. He said that cooperatives and farmer producer organisations will continue to play a dominant role. The management and technical capabilities of these organisations need to be strengthened. The processing capacities existing in the country need strengthening, modification and refurbishment. Apart from issues of food safety, energy efficiency and water efficiency also need to be addressed. He mentioned that this conference will bring dairy industry, policy-
Info@suruchiconsultants.com

makers, technologists and milk producers together to deliberate on the potential of dairying as an instrument for rural prosperity.
The Hindu, 20 February 2015
The State government will institute awards for farmers and societies or agencies engaged in conserving indigenous cattle breeds in the State, Agriculture Minister K.P. Mohanan has said.
Inaugurating the State-level implementation of the National Dairy Plan (NDP) at
Koothuparamba here on Saturday, Mr. Mohanan said that ‘Gopalratna’ award would be presented to the farmer adjudged best in his/her efforts for the conservation of indigenous breeds such as Vechur cows and Kasaragod dwarf. ‘Kamadhenu’ award would be given to the dairy societies and agencies conserving the indigenous breeds. First, second, and third prize winners would get a purse of Rs.1 lakh, Rs.50,000, and Rs.25,000 respectively, the
Minister said.
The Minister said that milk production in Malabar had increased from 3.5 lakh litres to five litres a day in the past two years. He said that the problem of cattle feed shortage in Malabar would be solved by April. The NDP, being implemented by the Kerala Livestock
Development Board for strengthening the State’s dairy sector, involves financial assistance of the National Dairy Development Board. It is being implemented in Kannur, Kozhikode, and
Wayanad districts.
The objective of the NDP is to improve the productivity of milch animals by ensuring availability of quality frozen cattle semen under the artificial insemination programme,
KLDB officials said. The NDP is being implemented in association with the Animal
Husbandry Department and the Malabar Regional Milk Producers’ Cooperative Society.The
Minister also inaugurated the KLDB’s scheme of free disbursement of cattle feed. The board also launched a scheme of providing for free calves of quality indigenous cattle species to farmers to promote organic farming.
The Economic Times, 20 February 2015
KOLKATA: Mother Dairy is entering the premium ice cream segment with its Belgiyum choco bar, intensifying competition in the category where HUL has introduced its premium global brand Magnum and Haagen Dazs is present with imported ice creams. The company has developed the choco bar keeping in mind the global benchmark, said Subhashis Basu, dairy head at Delhi-based Mother Dairy Fruit & Vegetable.
Mother Dairy has priced the product at Rs 80, marginally less than HUL's Magnum, which is priced at Rs 85."The aspiration level among Indians is increasing and they are ready to pay a little extra for a quality product. Belgiyum is a pure indulgence product and it will be made
Info@suruchiconsultants.com

available to all the leading hotel chains apart from our own retail outlets," said Basu, adding that the marketing strategy will focus entirely on quality.
Mother Dairy has made a soft launch of its premium category ice cream in Delhi, Mumbai,
Kolkata, Hyderabad and Bangalore. The company's ice cream business is growing at an annual rate of 20%. In summer last year, it had launched ice creams containing exotic fruits such as oranges from Brazil, pineapple and kiwi from Vietnam, vanilla from France and cranberry from the United States.
"These products have been well accepted in the market. These ice creams are mostly targeted at GenY who are ready to experiment with flavours. We have also introduced frozen desserts called sorbet made from sweetened water, flavouring and a significant amount of fruit pulp for the first time," Basu said. Under its flagship brand Classics, Mother Dairy has also introduced chocolate gateau and caramel croquant flavours. Its frozen candy brand, Fruito
Lic, has products containing Brazilian orange pulp and pineapple pulp from Philippines.
"This is a growing product category and we want to leverage that with newer products," said
Basu.
The company has also firmed up plans to launch ice candies and newer flavours in ice cream this summer. Mother Dairy is expecting a turnover of Rs 7,000 crore in the current fiscal, compared to Rs 6,364 in 2013-14.Its Lic Lolleez range of ice candy now has Vitamin C enriched ice candies with orange, mango, cola and raspberry flavours. The Chillz range targeted at the younger generation offers chocolate bars and cones with a multi textured taste experience while the kulfi range of ice creams with flavours such as pista, kesar, rabri, rose and paan is meant for those who prefer traditional Indian desserts.
Business Standard, 20 February 2015
The National Dairy Development Board (NDDB) today said the Food Safety and Standards
Authority of India (FSSAI) standards for dairy products are mostly aligned to global standard of Codex Alimentarius. "We have almost aligned to Codex standard and now waiting for new regulations before we can tune it further," NDDB chairman T Nanda Kumar said here today at the 43rd Dairy Industry Conference. Codex Alimentarius is the international standard followed by international dairy industry.
Kumar said penetration of standards of depends on level of organised channelization of milk into processing. "The share of organised sector in handling of liquid milk is about one-third.
In the context of consumers concerns about food safety, the share of organised sector needs to be doubled," he said. NDDB expects a rise of six million tonnes of milk in production in FY
15 compared to 138 million tonnes milk produced in 2013-14. Kumar said in order to increase livestock productivity the board was taking various measures including artificial insemination. He said milk collection through cooperatives is one of the lowest in the country and was keen to assist the West Bengal government in development of dairy industry.
Info@suruchiconsultants.com

science20, 19 February 2015
(Inside Science) – Two bottles of whole milk sit side-by-side in a supermarket refrigerator.
One costs $3.46 per gallon while the other costs $7.08 per gallon. The difference? The second bottle of milk is labeled organic. People choose organic dairy products for any number of reasons, including their perceptions on the environmental impacts of dairy farming, the treatment of cows, and the safety of milk from cows given antibiotics or extra hormones.
Consumers may also think organic milk offers better nutritional content than conventional milk. However, in a review of almost 200 scientific studies, researchers showed that experiments comparing organic and conventional milk have not agreed on any significant nutritional differences between the two milks. Other factors affect the milk's composition much more. Numerous studies have attempted to compare organic and conventional dairy products, but the studies' findings often contradict each other.
"For every paper that shows a small increase there is another that shows no change at all or the opposite change," said Scott Rankin, professor and chair of the food science department at University of Wisconsin - Madison, who was not associated with the study. "And you might get a push of one nutrient in this direction and another nutrient will go in that direction.
"Results varied because milk composition changes with factors like diet, cattle breed, lactation cycle, and even weather. The researchers found that most studies didn't control for all of these factors when comparing the two types of milk.
The new study only reported on milk's natural components; it did not cover components like antibiotics or extra growth hormones. "In very good comprehensive detail…the paper says there is no conclusive study out there that demonstrates a [nutritional] difference in organically and non-organically produced milk," said John Lucey, a dairy chemist at the
University of Wisconsin - Madison, who was not an author on the paper.
In the United States dairy farms must earn the "organic" label. Organic cows receive 100 percent organic feed, which includes a requirement that they feed at pasture for about four months each year, and receive almost one-third of their food during that time. The farmer cannot give extra growth-promoting hormones or antibodies to the herd, but the cows can receive organic vitamin and nutrient supplements. And farmers must raise the cattle with these standards for 12 months prior to labeling their products "organic. "These organic guidelines do not mean all organic milk is the same, and one of the biggest factors affecting the nutritional composition of any type of milk is a cow's diet.
"Just look at a cow as a milk-making machine – what you put in is what you get out at the other end," said Donald Otter, a food scientist at Auckland University in New Zealand. Otter and his colleagues published their findings in the Journal of Dairy Science in January. For example, diet, along with cow genetics, helps determine the ratio of fatty acids in milk. Cow milk contains both omega-3 and omega-6 fatty acids, compounds humans need to build healthy cells and for proper nerve functioning. Because humans cannot synthesize these
Info@suruchiconsultants.com

compounds naturally, we need to ingest them. The Academy of Nutrition and Dietetics suggests people increase their intake of both fatty acids, in particular omega-3s.
The study found that pasture-fed cows often produce milk richer in omega-3 fatty acids – found in grasses – than do cows fed high-energy food mixtures containing cereal grains; fats and oils; by-products from animals, sugar beets, and sugarcane; and usually vitamin and mineral supplements. Although the amounts of both fatty acids comprise far less than 1 percent of total milk fat, a cow's diet does seem to change the ratio. But consumers shouldn't assume that "organic" automatically equates to more pasture time. "Although eating grass is a component of organic, you can be non-organic and still have your cattle eat a lot of grass," said Lucey. A cow, organic or conventional, living in warmer climates may graze on grass practically year-around while a Wisconsin farmer must provide her cows with a barn and concentrates during cold winter months. Even in warm climates, a drought that shrivels pasture grasses will cause a farmer to supplement their cows' diet with concentrates.
Otter and his colleagues found no clear differences in total fat content, protein concentration, lactose concentration, calcium content, and naturally-occurring hormones between organically and conventionally produced milk. On the other hand, concentrations of iodine and selenium, both essential nutrients for human health, varied with geography. Organic cow milk from some regions contained lower concentrations of these minerals, because the cattle only fed on grass from nutrient-poor soils and did not receive supplements.
"It's actually amazing the amount of dirt that a cow in a paddock eats in a day. It's kilo[gram]s worth!" said Otter. Taste also did not vary between organic and conventional milks, but allowing cows to graze in the pasture can add a grassy flavour to the milk. With such a wide price gap between conventional and organic milk, consumers may be surprised by the actual lack of significant differences in nutritional value between the two milks. “Most of the difference [between organic and non-organic milk] just came from being outside – the pasture fed versus grain diets,” said Otter. “It’s not a conventional versus organic difference; it’s a farm system difference.”
The Hindu Business line, 19 February 2015
KOLKATA, FEBRUARY 19:
T Nanda Kumar, Chairman of the National Dairy Development Board, said the board was giving priority to two aspects – breeding of genetically better cows and buffaloes and increasing availability of balanced feeds — for raising milk productivity.
Fodder management
At the 43rd Dairy Industry Conference here, Kumar said that at present, about one-fourth of the country’s breedable animals are covered under artificial insemination. “This needs to be stepped up to bring about productivity improvement through genetic upgradation.
Info@suruchiconsultants.com

“Management of feed and fodder is going to be crucial. Area specific combinations need to be worked out and propagated,” the NDDB Chairman said.
Programme target
Kumar said providing a balanced ration to 2.7 million milch animals in 40,000 villages through local resource persons using locally available feed ingredients was the target for the programme. NDDB is attempting to activate this through a “digital connect with dairy” plan rolled out by the Information Network for Animal Productivity and Health. This is a part of the
₹
2,242-crore World Bank-financed National Dairy Plan (phase I).
Poor delivery service
Although India has the largest single artificial insemination network in the world, its delivery services are inefficient and of poor quality. Improper genetic evaluation and lack of records have resulted in inferior quality progenies. India has a total bovine population of around 30.5 crore. This has put India at the top among milk producing countries. However, average milk yield per animal (indigenous cow, buffalo and crossbred cow) is dismally low at less than a litre per kg of feed, against the global 1.6 litres.
Economic Times, 15 February 2015
BARAMATI: Extending his party's support to Prime Minister Narendra Modi's development agenda, NCP chief Sharad Pawar today urged him to come up with ways to increase the export of sugar. "Sugarcane is grown where there is water and then sugar is made out through mills. But sugarcane growing farmers are unhappy as sugarcane prices are going down in domestic and international markets. There is sugar, but there are no buyers," Pawar said while addressing a farmers' rally here. Prime Minister Narendra Modi today visited the Krishi
Vigyan Kendra here and laid the foundation stone for the Centre for Excellence for Vegetable
Production.
"I am sure that your (PM's) government at the Centre will take firm steps to increase the export of sugar. Once we are able to sell more sugar, only then will the farmers be able to get rid of their difficulties," Pawar said. Stating that condition of farmers engaged in business of supplying milk and dairy products is as bad as sugarcane farmers, the party chief said not fetching good price for milk is forcing farmers to sell their cattle to slaughter houses.
"Condition of farmers (in milk supplying business) is as bad as those engaged in sugarcane.
Milk that was once sold at Rs 23 (per litre), is now being sold at Rs 18. There are also limitations on export. This is making farmers sell their cattle to slaughter houses. The trend is very disturbing and it needs to stop," he said.
With issues pertaining to the Dhangar community, who are traditional shepherds, Pawar asked the Prime Minister to recommend reservation for the community, stating it has been a
Info@suruchiconsultants.com

long pending demand. "Dhangar community has long been facing problems. They have been protesting and demanding for facilities that Adivasis get. Maharashtra government has recommended this to the Centre. We might be from different political parties with different agendas, but we will support all steps you take for their reservation," he said. Pawar said though the state government has distributed money to farmers, the Centre needs to cooperate with the state to grant additional funds to farmers affected from drought conditions.
enidnews.com, 14 February 2015
NEW YORK — Coke is coming out with premium milk that has more protein and less sugar than regular. And it's betting people will pay twice as much for it. The national rollout of Fair life over the next several weeks marks Coca-Cola's entry into the milk case in the U.S. and is one way the world's biggest beverage maker is diversifying its offerings as Americans continue turning away from soft drinks. It also comes as people increasingly seek out some type of functional boost from their foods and drinks, whether it's more fiber, antioxidants or protein. That has left the door open for Coke step into the milk category, where the differences between options remain relatively minimal and consumption has been declining for decades. "It's basically the premiumization of milk," Sandy Douglas, president of Coca-
Cola North America, said at an analyst conference in November. If developed properly,
Douglas said it is the type of product that "rains money. "Fair life, which Coca-Cola formed in partnership with dairy cooperative Select Milk Producers in 2012, says its milk goes through a filtration process that's akin the way skim milk is made. Filters are used to separate the various components in milk. Then, more of the favorable components are added, while the less desirable ones are kept out.
The result is a drink that Fair life says is lactose free and has 50 percent more protein, 30 percent more calcium and 50 percent less sugar than regular milk. The same process is used make Fair life's Core Power, a drink marketed to athletes that has even more protein and calcium than Fair life milk. Sue McCloskey, who developed the system used to make Fair life with her husband Mike McCloskey, said Fair life will be marketed more broadly to women who are the "gatekeepers" for their families' nutritional needs.
Even while touting its nutritional advantages, however, Fair life will need to be careful about communicating how its drink is made. Jonas Feliciano, senior beverage analyst for market researcher Euromonitor, noted people want drinks that "do something for me," but that Fair life's juiced-up nutritional stats may make people hesitant about how natural it is.
John Boylan on 13 February 2015
According to the joint OECD/UN-FAO agricultural outlook for 2014, India’s milk production continues to grow and now tops the total milk output of the EU. Milk production in India was up by over 4% in the past 12 months, according to a recent survey by the country’s
Info@suruchiconsultants.com

FINANCE ministry. India has actually been the world’s top milk producing country since
1997, but this is the first time it has beat the entire EU. On a country basis, the US is the second highest producer with China coming third. China is also the world’s largest importer of dairy produce although its milk consumption per capita is much lower than average. India has 75 million dairy farms, more than anywhere else in the world. The majority of Indian milk comes from buffaloes, not cows. The US is still the number one cow milk producing country in the world.
http://in.rbth
, 13 February 2015
India is hoping that her companies will start deliveries of meat and dairy products to Russia sometime this year. The TASS correspondent learned from a source in the Indian Ministry of
Commerce and Industry. The news agency’s source noted that the Federal Service for
Veterinary and Phytosanitary Surveillance of the Russian Federation (Rosselkhoznadzor) on
December 4 last year allowed the import of Indian buffalo meat into Russia. In all, four
Indian companies are registered with Rosselhoznadzor. “However, there are no signed contracts yet,” he said. “At the moment, negotiations are underway with companies in Russia.
"According to the Ministry’s representative, none of the manufacturers of dairy products, including India’s largest company, Amul, have received permission to deliver products to
Russia. “However, we believe that the first permit will be issued in the next two or three months,” he noted.
Previously, the newspaper Business Standart wrote that a Rosselkhoznadzor delegation visited India from October 27 to November 8 and studied the production cycles of “at least six companies”. “We are confident that in the near future, our companies will be allowed to deliver their products to Russia,” added the General Director of the Federation of Indian
Export Organizations (FIEO) Ajay Sahai in an interview with TASS. “After that, they will be able to start deliveries.”
The expert believes that “Russia is also interested in the early start of deliveries from India, given that imports of certain products from the United States, the European Union and some other countries have been banned by the RF Government”. “For Indian exporters, this is a chance to enter the Russian market, which before was not open to them,” he explained. The press service of the Ministry of Industry and Trade was not available for comment at the time this article was being written.
Drinks-business-review, 13 February 2015
Info@suruchiconsultants.com

Liquid photo purification specialist Sure Pure's patented photo purification technology will be used in a dairy project in Northern India to pasteurize and extend the shelf life of cows' milk.
This initiative, Mindful Milk, is being backed by US-based Straus Family Creamery. Sure
Pure's technology uses UV-C light to purify microbiologically sensitive liquids such as wine, fruit juice and milk. This is said to be a green alternative to pasteurisation and chemicals. The project along with the implementation of more sanitary milking and handling processes and the creation of a direct-to-consumer sales model, helps dairy farmers in rural Northern India to improve their lives.
Straus Family Creamery Research & Development director Pankaj Uttarwar said: "we are proud to have worked with Abhijit Maid to develop a model that advances more sustainable dairy farming in northern India. "Sure Pure's technology is enabling us to implement this model in remote and developing areas. We hope that this model can be replicated elsewhere to increase the well-being of farmers and consumers alike. "Sure Pure CEO Guy Kebble said:
"Sure Pure's photpurification technology is a tested and proven technology.
Business Standard, 12 February 2015
Recognising India as a highly promising market for the food sector, a Dubai export promotion agency has held a networking session here to link key Indian suppliers to the
UAE. Dubai Exports, the export promotion agency of the Department of Economic
Development in Dubai, hosted the networking session between prominent companies from
India and exporters in the UAE. The networking session was attended by 70 supplier firms from India and Dubai Exports facilitated 90 businesses-to- business meetings between the two sides during the exhibition held in Dubai from February 8-12, a statement released here said.
It was part of linking key suppliers in India to the UAE as a major source market, it said.
"Dubai Exports and its overseas offices play a pivotal role in supporting local exporters through varied programmes. The International Buyers Programme is one among them and it includes organising missions and platform for buyers and suppliers to connect with exporters in the UAE across hosted meetings," Mohammed Ali Al Kamali, Deputy Chief Executive
Officer of Dubai Exports, said.
Kamali said India was a strategic market for Dubai and the UAE in general and the Indian economy is projected to grow 6.7 per cent on average during 2015-2019 according to the
Organisation for Economic Co-operation and Development (OECD). "Economic dynamism along with the size and diversity of tastes automatically make India a highly promising market for the foods sector," Kamali said. "The dairy industry in India has emerged remarkably stronger post the 'White Revolution' and continues to grow. By 2020 the combined strength of the organised and unorganised dairy sector in India will reach formidable levels," said Naema Bannai, Manager of Overseas Office Services at Dubai
Exports.
Info@suruchiconsultants.com

"Abundance of resources and domestic demand will enable the Indian foods sector to venture into new products, services and partnerships," Bannai said. The Government of India has also set up a fund to help its National Bank for Agriculture and Rural Development (NABARD) extend low interest loans to food processing units. The fund is expected to benefit a variety of industry players including large industry chains and lead to an efficient food processing industry infrastructure.
The Hindu business line, 12 February 2015
NEW DELHI, FEB 10: Dairy products giant Amul does not have any plans to raise milk prices for next 4-5 months but it would review the price situation during the monsoon season, a top official of the company said today. “Last price increase happened in May 2014. At present condition, we have no plan to raise prices in next 4-5 months because of higher production and procurement, Amul Managing Director Rs. Sodhi told PTI on the side lines of
AIMA event. The price increase is not required currently as cost of milk production is also under control in view of stable feed prices and lower energy and transportation costs, he said.
However, Amul would take a call on milk price hike during the monsoon season depending upon the feed and other costs. “We will take a call after 4-5 months. If feed prices rise, then we will be forced to hike prices. Otherwise, we will not do for the heck of it. Whenever we did, we raised it by Rs. 2 per litre, which is just 4 per cent,” Sodhi said. The average price increase in milk in the current fiscal is around 5-6 per cent, much lower than 10-12 per cent in last two years, he said.
Citing reasons for a rise in milk production and procurement, Sodhi said milk buying from
Gujarat and other parts of the country has increased to 195 lakh litres per day from the average 155 lakh litres per day because of better prices being paid to farmers as compared to private dairies. “What has happened is that with crashing of commodity prices, private dairies are not procuring milk. So, we are getting more milk. We are using this opportunity to increase the market base. So, we are getting the volume growth and this will help us,” he said.
Barring those farmers selling milk to Amul, other farmers in the country are not getting good prices. “Right now, we are paying Rs. 580/kg of fat, which is 12 per cent more,” he said.
Stating that Gujarat alone cannot meet the growing milk demand, Sodhi said Amul therefore is investing about Rs. 50,000 crore to expand its network and set up at least 10 new processing plants across the country in next two years. Amul, formed in 1946, is a dairy cooperative based in Anand district of Gujarat and is managed by Gujarat Co—operative
Milk Marketing Federation.
The Hindu, 10 February 2015
Info@suruchiconsultants.com

To provide training in value addition of milk, and preparation of milk products, a new dairy plant was inaugurated at the Veterinary College and Research Institute here recently. It is funded by the Indian Council of Agricultural Research, New Delhi, under the National
Agriculture Development Programme. K.M.L. Pathak, Deputy Director General (Animal
Science), inaugurated the plant.
A bovine infertility diagnostic and training centre, an avian molecular laboratory, a frozen semen bank, and a student’s day centre too were established, all at a cost of around Rs. 2 crore. Dr. Pathak asked teachers to encourage students to carry out more research works to address the problems of farming community. S. Thilagar, Vice-Chancellor, Tamil Nadu
Veterinary and Animal Sciences University, said that farmers can use the dairy plant to convert the raw milk into value added milk, and milk products so that they get more profit.
The major problem faced by the dairy farmers was bovine infertility.
The bovine infertility diagnostic and training centre would help veterinarians treat infertile dairy animals, and train farmers in controlling infertility. Frozen semen bank would help the farmers get quality frozen semen straws from superior germ plasm to improve the productivity of animals. The avian molecular laboratory would help diagnose diseases in poultry. K.A. Doraisamy, Dean, welcomed the gathering. A. Elango, Professor and Head,
Department of Livestock Products Technology (Dairy Science), proposed a vote of thanks.
Business Standard, 10 February 2015
Russia's phyto sanitary watchdog seeks details of milk production data along with quality mechanism adopted by Indian plants. Indian dairy exporters’ wait continues for dispatching their first shipment to Russia. R S Sodhi, chairman of the Gujarat Cooperative Milk
Marketing Federation (owner of the Amul brand), said: “The Russian government has not yet approved dairy import from India. Our talks with Russian importers are still on.”
A team from Russia’s phyto sanitary watchdog, Rosselkhoznadzor, had visited India between
October 27 and November 8, 2014, to inspect at least half a dozen cheese and dairy product units. They were reportedly satisfied at the progress on good manufacturing practices. “We have sent our dossier of reports to the Russian authority on the quality of dairy products and other issues they had raised. We are yet to receive any positive signal,” said S K Saxena,
Director, Export Inspection Council, the body monitoring shipment of dairy products. “We are confident of getting Russian market access very soon.” The Agricultural & Processed
Food Products Export Development Authority has been following the matter. “There has been no response from the Russian authority as yet,” said Santosh Sarangi, its chairman. The
Food and Agricultural Organization of the United Nations estimated a 13 per cent decline in
Russia’s import of milk and its equivalent, at 4.35 million tonnes in 2014 as compared to 5.01 mt the previous year. This was due to the ban, from August 2014, on export of dairy products from Australia, Canada, the European Union, Norway and America, due to the trade sanctions imposed in the wake of the Ukraine crisis. In 2013, India entered the world market
Info@suruchiconsultants.com

for skimmed milk powder (SMP) in a significant way, with sales leaping 250 per cent to
130,000 tonnes. Trade data for the first eight months of 2014 show exports down 37 per cent compared with the same period in 2013. Our SMP exports are estimated to have declined by
50 per cent in 2014, to 64,000 tonnes. World prices have been falling, making domestic sales more profitable. Additionally, as a consequence of rising internal prices, the Government of
India announced in July the abolition of an earlier five per cent SMP export incentive.
Projects today, 10 February 2015
Engineering Projects India has invited bids for an ice cream plant at Patna, in Bihar. The bids have been invited for design, supply, erection & commissioning of plant equipment including utility services complete of 20 KLPD ice cream plant at Patna, in Bihar, on turnkey basis. For this project, the completion period is eight months. The last date for submission of bids is 17
February, 2015.
The Hindu, 09 February 2015
The State government is planning to revise the existing milk price to make it more farmerfriendly, Minister for Dairy Development K.C. Joseph has said. A committee has been constituted for the purpose. The price of milk will be revised when the committee submits its report, the Minister said at a meeting of the district dairy farmers at Kodungoor, near here, on
Saturday.
Self-sufficiency
Mr. Joseph said the government could increase milk production by 6.5 lakh litres. The plan was to make the State self-sufficient in milk production. To achieve this goal, it would need another 1.5 lakh litres. ‘‘If everything goes as planned, we will be able to achieve this within two years,’’ he said. He said more funds would be provided to the dairy sector from local body funds.
Business Standard, 8 February 2015
Delhi-based company will change significantly in three years, claims the management. Delhibased dairy firm Kwality is going to enter the direct consumer business, in a bid to become a major player in the fast-moving consumer goods sector, said its chairman & managing director, Sanjay Dhingra. A strong institutional player since its inception in 1992, the North
India-focused firm will soon have new product categories, such as packaged food, juices, water, food products for health-conscious people, and energy & protein drinks, over the next few years.
Info@suruchiconsultants.com

"The company will change drastically over the next three years. While exact product categories are yet to be finalised, we are working on many possibilities," said Director
Sidhant Gupta. Over the next few months, the firm will introduce smaller packs (below
500g), besides bulk family packs, for direct consumer retailing across its existing portfolio, which predominantly has dairy products. "In the first year, we will be focusing on ghee, butter, liquid milk (both pouch and tetra packs), cheese, flavoured milk and such products.
We have five variants of flavoured milk ready for launch, and we are working on about 12 variants," said Gupta.
The flavoured milk market in India is estimated to be worth about Rs 500 crore. It is expected to grow at more than 20 per cent annually, according to a study by an independent market research agency. Besides domestic dairy companies like Amrit Foods, Umang Dairies,
Vadilal Industries, Amul, Mother Dairy and Param Dairy, multinationals too are testing the waters in this sector. In 2010, Paris-based Danone had a text launch of its product Choco
Plus, priced at Rs 15 for each 200-ml pack. At that time, it was operating in India under a joint venture with Britannia Industries.
Nestle, too, had entered the flavoured milk segment in 2007 by extending its Milkmaid brand to milkshakes — Milkmaid Funshakes, initially launched in the South Indian markets.
Britannia had entered the flavoured milk space in 2009 with the launch of Actimind.
However, there is no immediate plan for Kwality to go national. "The focus will always remain in the northern region. Over a period of time, some products will naturally spread across the country. There's a lot untapped market here," said Gupta.
According to Dhingra, 75 per cent of Kwality's revenue now comes from institutional sales, while the remaining 25 per cent comes from consumer sales. "In three years, consumer sales will contribute 60 per cent to the total as we continue to grow at around 25 per cent on a yearon-year basis," he added. In the 2013-14, Kwality reported a net profit of Rs 126.63 crore on are venue of Rs 4,578.04 crore. Kwality products, sold under the Dairy Best brand, are currently available across 12,500 retail outlets in Delhi and about 36,000 shops across North
India.
"Our target is to cover at least 100,000 retail outlets in the northern region in the next two to three years, of which about 20,000 will be in Delhi alone," said Gupta. The company might also look to tap the railway catering and retailing at stations in the immediate future, he added. Over the next three years, the firm will spend Rs 300-500 crore for expansion and retail presence. Of this, about Rs 100 crore will be on marketing activities. Procurement is the biggest hurdle as the shelf life of milk is very limited. The company at present procures about three million litres of milk every day. It hoped to double this in the next three to five years, said the director.
"About 85 per cent of procurement is now dominated by contractors, but this should change.
In three years, we target to self -procure about 50 per cent," he added. Pricing will be competitive and Kwality will compete with companies like Amul and Mother Dairy, and will not target the premium segment. About Rs 400 crore of its business comes from exports to
Info@suruchiconsultants.com

about 28 countries. "We are also talking to Russia for products like butter and skimmed milk powder," said Dhingra. In the past couple of years, Kwality has acquired two companies in the northern region — Pashupati Dairies and Varshney Bandhu Foods. It is looking for more opportunities. These could be smaller companies in the northern region worth about Rs 30-50 crore. "But there are no active talks at the moment. We will be looking for assets and factories, including land, that could be useful for Kwality in the future," said Dhingra.
Hindustan Times, 05 February 2015
The Centre has constituted a committee to suggest amendments in the Food Safety and
Standards Authority Act (FSSA) to make milk adulteration punishable with a stricter jail term. At present, food adulteration is punishable under the Indian Penal Code and a convicted person can be sent to jail for six months. Under the FSSA, a person who manufactures sells or stores food harmful for human consumption can be imprisoned for a maximum period of seven years.
The Supreme Court’s observations condemning the government for turning a blind eye towards the growing menace of milk adulteration has prompted the Centre to form the committee. The top court is hearing a PIL filed by Uttarakhand resident Swami Achyutanand
Tirth who had in 2013 approached it alleging adulterated milk was available in large scale in several North Indian cities.
In an affidavit filed before the court, the Centre said the committee under RK Jain, secretary, national disaster management authority, was constituted on December 16 last. The first meeting took place on January 9, 2015 and the report would be ready by February end. “The committee is expected to complete its work in 45 days from the date of its first meeting,” the affidavit stated. SC has been advocating states to make local amendments in section 272 of the IPC to make milk adulteration an offence punishable with life imprisonment. West
Bengal and Uttar Pradesh have already made the changes, it had noted.
fnbnews.com, 05 February 2015
The Food Safety and Standards Authority of India (FSSAI) issued an order recently asking dairy business operators to get licences for any kind of dairy business as per Food Safety and
Standards Regulations, 2011. The order released by FSSAI states, “All dairy business operators working from fixed establishments / shops and mandis are required to get a licence or registration to operate.” The order however does not differentiate between packaged milk or raw milk business operators.
In a reply on whether this order covers shopkeepers like local grocery shops or kirana stores to get licence or registration for any dairy business, the apex food regulator replied, “Food
Info@suruchiconsultants.com

Safety and Standards Act-2006, Rules and Regulations, made thereunder have been implemented with effect from August 5, 2011. As per Section 31 of the said Act, every Food
Business Operator (FBO) needs to take a licence / registration as per eligibility including dairy business operators.”
Before the enactment of Food Safety and Standards Act, 2006, dairy business operators were registered under MMPO (Milk & Milk Product Order 1992). As per point No. 1 of the order dated January 14, 2015, it is clearly mentioned that all small dairy business operators working from fixed establishments (shops etc.) or operating from ‘mandis’/ designated places are required to obtain licence / registration, according to FSSAI.
The order however exempts milk collection centres for licensed processing plants or organisations. Meanwhile, regional president of Confederation of All India Traders (CAIT)
Chandigarh Harish Garg said, “We will oppose the move of inclusion of small grocery shops under this order. ”He added, “When the packaged milk is already licensed and registered under the Act, where does the need arise for the shop to get a licence or registration?”
DNA India, Wednesday, 4 February 2015
RS Sodhi is a man with a long mission. The managing director of Gujarat Co-operative Milk
Marketing Federation, which owns Amul, is helping the brand spread its wings across various states of Rajasthan, Haryana, UP, West Bengal, Maharashtra, MP and most recently, Punjab.
It is expected to close the current financial year with a massive 22-23% increase in annual turnover at around Rs 22,000 crore. Over the 68 years of its existence, Amul has set a huge entry barrier by keeping the standard high. Even as Amul grows into world's leading milk brand, it faces several challenges at the ground level, Sodhi tells An to T Joseph in an interview.
How is the Amul experiment different from other players?
Unlike in other businesses, we have to buy raw material (80% of our cost is milk) at the highest price possible because we are buying it from our owners. And sell the finished product at a reasonable rate to keep expanding the consumer base. Whatever milk we sell,
86% of the sale price goes to milk farmers. For other value-added products, where packaging and other duties come in, it may be as high as 80%. This means that if we sell milk at Rs 50,
Rs 43 goes to the farmer. If you compare it with the developed world, which boast about its efficiencies, farmers get much lower. In the US, milk farmers get only 38% of what the consumer pays. In UK, it is only 36%. While one-third goes to the retailer (modern trade) and another one-third for processing, only the remaining one-third goes to the milk producer. This is because we have a cow-to-consumer chain in place. Our corporate philosophy is value for many (for 3.5 million milk farmers or owners) and value for money (for millions of Amul’s consumers).
Info@suruchiconsultants.com

When international milk price is on a steady decline, how do you keep up?
In the international market, prices have crashed by half over one year. The price of skimmed milk powder has dropped to $2,400-2,500 per tonne from over $5,000. Last year, New
Zealand farmers were getting $8.5 per kg for milk solids, and now they have dropped it to
$4.8. In the world market, there is a slowdown in demand, because of drop in demand from
China. But production has gone up. I foresee in the next two years, the prices are going to be stable the world over. In April 2015, the production quota would be abolished in Europe.
Today, each milk producer in Europe has a quota. Production in EU will now go up. In India, private producers have reduced their milk procurement, but procurement by cooperatives has seen growth. We procure 175 lakh litre per day, 18% more than last year. In 1970s (before
Operation Flood), India’s per capita consumption is 112 gm per day as against WHO’s recommendation of 276 gm. Today, per capital consumption is 300 gm, above the WHO’s recommendations. While milk production has gone up seven times, India’s population has gone up manifold. In India, we have seen an increase in the price of milk. Cow milk (3.5% fat) costs Rs 29 per litre when bought from co-operatives and Rs 25-26 when bought from farmers. Price for fat has gone up from Rs 500 per kilo to Rs 550-560.
Given that you have to buy from all milk farmers, how do you manage surplus?
We can’t refuse to purchase milk from farmers. We, in fact, encourage them to improve productivity. Whatever they produce, we have to procure. In any other company, they procure and produce as per market demand. In our case, it works the other way round. We have to keep developing markets, keep innovating and making new products, keep going into new geographical areas.
Is short shelf life of your products a deterrent?
We have products that are of two-day shelf life, and others of one year. Whenever there is surplus, we convert them to commodities, which are used when the milk production is low.
Commodities such as skimmed milk or white butter or ghee can be re-combined to produce whatever products at a later stage. But this commodities business is only 5% of our total business. Today, 50% of our production goes into liquid milk. There, we keep adding new markets.
What are your advertising strategies and costs?
Amul brand was invented in the fifties. The five-decade old ad campaign revolving `Utterly
Butterly Delicious’ and 'Amul – Taste of India’ shows the consistency. We have given full freedom to the advertising agency. Our advertising cost is less than 1% of our turnover (last year, it was 0.8%) as against 10-20% spent by multinational food majors. Amul’s quality products are our advertisements.
How did you move to other states?
Till 2010, we were procuring milk only from Gujarat farmers and selling products all over
India. Then we realised that most of our products were going outside Gujarat much faster
Info@suruchiconsultants.com

than the local milk production. We found a gap there. We knew that if we were to expand in future, we need more milk. This led to the start of milk procurement from outside Gujarat – from Rajasthan, Haryana, UP, West Bengal, Maharashtra, MP and most recently, Punjab.
Now, 15-20% of total milk comes from outside Gujarat. Today, our strategy is 3E – first E stands for expansion in milk procurement, second E for expansion in processing and manufacturing capacity, and third E for marketing and distribution.
Tell us about your recent expansion in processing and manufacturing plants.
Amul has 50 manufacturing plants across the country. We have five new plants in Gujarat and around seven outside Gujarat. We are also adding capacity at the existing plants. In UP, we are setting up three plants at Lucknow, Kanpur and Varanasi, with an investment of Rs
200 crore for each. UP is India’s largest milk producing state with 7 crore litre per day, much ahead of Gujarat’s total 3 crore litre per day production. But the cooperative in UP was procuring less than 1% of the state’s total production. We are collecting around 5 lakh litre per day and expanding quickly. In Maharashtra, we have plants at Tarapur, Boisar, Virar,
Nagpur and Pune.
Which are your important product categories?
Revenue-wise, first comes milk. Second is infant milk food. Amul Spray infant milk food is a
Rs 4,200 crore brand. Other important product categories include butter, ghee, ice-creams and cream. New categories include cool beverages, tetra-pack milk, chocolates. If you see our product portfolio, it is a wide range. To maximise our profits, we need to sell branded products, and not commodities. Our focus on commodities is negligible. We sell commodities
(just as skimmed milk powder and white butter) only during winter when we have surplus.
How big is the Amul brand today?
This year, we (the Federation) will close at Rs 22,000 crore of turnover, 22-23% increase over Rs 18,143 crore reported last year. In 2009-10, it was just Rs 8,005 crore. When we talk about Amul, its turnover is actually much higher at around Rs 28,000 crore. Our products are produced by 17 district unions (under the Federation), and some products are marketed and sold directly by them, which are not accounted for by the Federation.
Would your entry into other states mean more competition?
Almost every state has its own milk brand. For instance, Karnataka has Nandini and Kerala,
Milma. They all have butter, ghee, butter milk. After Amul, the second largest is Nandini. It procures is 60 lakh per day. When we entered some key markets in the North, there was some initial apprehension. But then, the competition put everyone on their toes. For instance, after our entry into Rajasthan, the milk procurement by the Rajasthan Co-operative Dairy
Federation (Saras brand) has gone up tremendously. So the competition between farmers’ cooperatives has brought good news to them as well as consumers.
Has Amul created a big entry barrier?
Info@suruchiconsultants.com

In the dairy industry, the easiest thing is to set up dairy plant and machinery. Building brand is difficult. But with money and the media, one can do it in two-three years. The other important thing is to build distribution network for fresh, chilled and frozen dairy products. It requires setting up cold storages and other infrastructure. There you need volumes. If you don’t have volumes, your partners’ overheads will be very high. So you will not be able to compete with brands like Amul. The fourth and most difficult thing that nobody realises until one enters the sector is milk procurement. Procuring quality milk in consistent quantities is extremely difficult. Amul has been growing year after year, and competition is not able to catch up. Everyone knows how to make butter, cheese and ice-cream. But nobody can come anywhere close to Amul because the value for money Amul gives to the consumer. We are not replacing expensive natural ingredients with cheap synthetic ingredients or chemicals, like many other manufacturers do. For instance, in ice-cream, we add dairy fat. But some manufacturers who want to make a quick buck may compromise the quality by replacing dairy fat with vegetable fat and make frozen dessert which is similar to ice-cream. As per
Indian rules, you can’t sell it as ice-cream. In the corporate world, there is always a hunger for more profits and they start replacing expensive ingredients with less-expensive ingredients. In butter, we now have around 90% market share. Butter manufacturing is not difficult, anyone can do. But nobody can give the kind of butter that Amul produces and sell at our cost because of our volume game. Also, maintaining a cold chain and a huge network of outlets is not easy. Verghese Kurien has taught us: 'Please consider your customer smarter than you. Don’t think that you can tinker with the ingredients or weight. If you employ shortterm marketing strategies, your customer will lose faith in you. We are growing thanks to
Amul’s value system.'
What are the challenges today?
Enhancing productivity is a challenge. In India, average productivity is around 3 litre. (cow is
1.5 litre and buffalo – 4.5 litre, cross breed – 8 litre) where in developed countries it is anywhere between 25 and 30 litre. Reason: Very low input and hence very low output. We feed our animals what is left over crop residues. Secondly, conversion factor is also low.
Breed is also important for enhancing productivity. Another big challenge is how to motivate the next generation of milk farmers, educated youth continue in dairy farming. To make this business lucrative, contemporary, glamorous option. In this business, you have to get up at
4’o clock, milk cows, clean the farm, etc. It is round the year, and no holidays. I have seen people now unwilling to marry their daughters to milk farmers. What is required is to encourage commercial dairy farming. It means 25-30 or more animals. Then you can afford to have milking machines. It makes the business a bit glamorous. Most importantly, Amul has become what it is today thanks to the fusion of selfless and dedicated leadership of
Tribhuvandas Patel and committed and honest professionals like Verghese Kurien. In India, dedicated leadership is lacking. However, Amul has been lucky to have good support from political leadership. We do not face any political interference from governments while fixing the milk price. But other cooperatives are not that lucky. What is required now is constant support from the government, irrespective of the political parties.
Info@suruchiconsultants.com

DNA India, 4 February 2015
For Amul, owned by India's largest milk co-operative chain, Gujarat Co-operative Milk
Marketing Federation (GCMMF), the collection centre in Sandesar is one of its 17,025 village-level societies that bring in an average 175 lakh litre of milk a day.
At Sandesar, just 10 km off Anand in Gujarat, it is a scene straight out of the old Bollywood flick Manthan. At sunset, a motley crowd of around 300-400 rural women, kids and youngsters, gathers outside a milk collection counter, suppressed giggles occasionally disturbing the otherwise hushed setting. They quickly empty their pots carrying fresh milk, around 1,000 litres daily collectively, and disappear into the chilly dusk outside, with their day's earnings.
For Amul, owned by India's largest milk co-operative chain, Gujarat Co-operative Milk
Marketing Federation (GCMMF), the collection centre in Sandesar is one of its 17,025 village-level societies that bring in an average 175 lakh litre of milk a day.
Cooperatives may be passé in the era of capitalism, both the blue blood and crony versions.
As India continues its march towards the free, open market regime, such cooperatives, where farmers claim ownership, may look completely incongruous. But history tells us that the
Operation Flood or the White Revolution, the world's biggest dairy development programme launched in 1970, has been an outstanding success by any yardstick, thanks to these steadfast cooperatives, and made India the largest milk producer in the world today.
GCMMF, jointly owned by some 3.5 million milk producers in Gujarat and neighbouring states, has seen its 68-year-old brand Amul grow at a compounded annual growth rate of 23-
24% over last five years. No wonder, Amul brings smiles to thousands of faceless Indian farmers, the smile being contagious to consumers as well. "During 2014-15, the annual turnover of the Federation will be close to Rs 22,000 crore, a 22-23% increase from the last year's Rs 18,143 crore, and way ahead of Rs 8,005 crore clocked in 2009-10," RS Sodhi, managing director of the Federation, told dna. This takes it ahead of all food companies, both
Indian and multinationals currently operating in the country.
Amul is an ever-growing cash-cow, and literally, spreading the 'Taste of India' abroad. It's the prophecy of Verghese Kurien, father of the White Revolution in India, whose biography is titled 'I too had a dream'. Five decades ago, from a sleepy town of Anand then, he built an institution of excellence for India. He developed a logistics chain to produce and deliver hygienic and nutritious milk and milk products to millions, and created the world's largest food marketing business, and the country's biggest food brand.
Ratan N Tata, in his foreword in Kurien's biography, said the cooperatives he created have also become powerful agents of social change in empowering women and in embedding democracy at the grassroots level. Kurien's experiments are part of Gujarat's folklore. After the diary business, his acumen even enchanted cocoa farmers in his home state of Kerala, in
Info@suruchiconsultants.com

seventies, when they were struggling with their produce not attracting reasonable price.
"There was only one buyer then, and obviously, it was in its interest to suppress the price.
With Amul's entry then, cocoa prices moved up three times in one year," recalls Sodhi.
He says Amul's chocolate plant in Gujarat, the only one so far, is running at more than 100% capacity. "Like how Amul ice-creams made other big players run for a cover, our chocolates are capable of competing with the best in the world. We are expanding the capacity of the plant now as demand far exceeds production," he says, adding that the priority, however, is milk.
So, if it can be done in milk and chocolates, why not others? Why can't the backward and forward integration that Kurien implemented in the diary sector be emulated today in other sectors? The government is procuring several commodities such as wheat, barley, copra, jute, sugarcane, cotton and groundnut, among others, from the open market under the minimum support price (MSP) mechanism to counter the vagaries of the market and its direct impact on farmers. Since there are no processing and forward integration models in place, the purchased goods find it difficult to get to the marketplace, rendering it stale and inedible soon. Of course, it is not government's business to run such businesses, but cooperatives can surely step in. For instance, if there a system in place to process the procured wheat, like how Amul treats the milk it procures, it could have sold good quality wheat powder or some other wheat-based product under a brand name. It could surely offer the consumer quality and price that may send private players into a tizzy.
But it needs a strong political will. "What is Amul today is primarily thanks to the fusion of selfless and dedicated leadership of Tribhuvandas Patel and committed and honest professionals like Verghese Kurien. In India, you may find hundreds of professionals, but the dedicated leadership is lacking," says Sodhi. Patel, an extremely popular social worker, is the one who laid the foundation for the first cooperative -- Kaira District Co-operative Milk
Producers' Union in Anand, and invited Kurien to run and expand the business.
"So clear and unshakable were his (Patel's) priorities that if any politician even tried to put as much as a finger on the farmers' milk cooperatives, he would have cut off their entire hand,"
Kurien was quoted as saying by his biographer. Amul, which is striving to make inroads into other states, is now facing a big roadblock from political establishments. The milk federation is by all means apolitical. Its historical link to the country's struggles and survival post-
Independence, and a perceived propinquity to the grand old party is only incidental. This also means that it has no political masters. Amul doesn't need any political patronage. Nor it wants to seek blessings from local politicians for doing its daily business – of creating new cooperatives and fixing milk prices. Farmers being a massive vote-bank, political parties increasingly find Amul a voluntary intruder. Their shrieks and the cacophony of capitalism must not drown Amul's roar.
The Detroit news, 3 February 2015
Info@suruchiconsultants.com

New York – — Coke is coming out with premium milk that has more protein and less sugar than regular. And it’s betting people will pay twice as much for it. The national rollout of Fair life over the next several weeks marks Coca-Cola’s entry into the milk case in the U.S. and is one way the world’s biggest beverage maker is diversifying its offerings as Americans continue turning away from soft drinks.
It also comes as people increasingly seek out some type of functional boost from their foods and drinks, whether it’s more fiber, antioxidants or protein. That has left the door open for
Coke step into the milk category, where the differences between options remain relatively minimal and consumption has been declining for decades. “It’s basically the premiumization of milk,” Sandy Douglas, president of Coca-Cola North America, said at an analyst conference in November. If developed properly, Douglas said it is the type of product that
“rains money.”
Fair life, which Coca-Cola formed in partnership with dairy cooperative Select Milk
Producers in 2012, says its milk goes through a filtration process that’s akin the way skim milk is made. Filters are used to separate the various components in milk. Then, more of the favourable components are added, while the less desirable ones are kept out. The result is a drink that Fair life says is lactose free and has 50 percent more protein, 30 percent more calcium and 50 percent less sugar than regular milk. The same process is used make Fair life’s Core Power, a drink marketed to athletes that has even more protein and calcium than
Fair life milk.
Sue McCloskey, who developed the system used to make Fair life with her husband Mike
McCloskey, said Fair life will be marketed more broadly to women who are the
“gatekeepers” for their families’ nutritional needs.
Even while touting its nutritional advantages, however, Fair life will need to be careful about communicating how its drink is made. Jonas Feliciano, senior beverage analyst for market researcher Euro monitor, noted people want drinks that “do something for me,” but that Fair life’s juiced-up nutritional stats may make people hesitant about how natural it is. They have to explain that this is not an abomination of nature,” Feliciano said. The drink, which comes in a sleek plastic bottle reminiscent of milk cartons, has already started appearing on shelves and is expected to continue rolling out nationally over the next several weeks.
At a supermarket in Indianapolis, a 52-ounce bottle of Fair life was being sold for $4.59. By comparison, the national average cost for a half-gallon of milk, which is 64 ounces, is $2.18, according to the USDA. For organic milk, the average is $3.99.Fairlife is just one of many ventures by Coca-Cola, which also recently took stakes in energy drink maker Monster
Beverages and Keurig Green Mountain, which makes single-serving coffee machines and pods.
Ibn live, 03 February 2015
Info@suruchiconsultants.com

New Delhi: National Dairy Development Board (NDDB) subsidiary Mother Dairy Fruit and
Vegetable Private Limited has been declared a "public authority" as defined under the Right to Information (RTI) Act, making it amenable to disclosure of information. A Delhi High
Court bench of Justice Vibhu Bakhru dismissed the petition filed by Mother Dairy Fruit and
Vegetable Pvt Ltd, which had challenged the Central Information Commission (CIC) April
15, 2011 order holding it to be a "Public Authority" within the meaning of section 2(h) of the
2005 RTI Act.
"The entire equity of the petitioner is held by the NDDB. Thus, even though petitioner's
Board of Directors manages its affairs, NDDB would exercise control over the affairs of the petitioner as its principal shareholder. "The power of shareholders of a company to appoint and remove director’s results in them exerting real influence over the affairs of a company.
The Central Government retains complete control over NDDB and for all practical purposes; it is an instrumentality of the Central Government.
High Court also said that incorporation of Mother Dairy as a wholly owned subsidiary of
NDDB was for better management of certain undertakings. "In the present case, the basic infrastructure of the petitioner’s (Mother Dairy) undertakings was promoted by funds provided by the Central Government; whether the said funds found their way through NDDB or otherwise is not material.
"Thus, in my view, the petitioner would also be a public authority on account of being substantially financed by the Central Government," the bench said. High Court also said that incorporation of Mother Dairy as a wholly owned subsidiary of NDDB was for better management of certain undertakings. "A body which is owned or controlled by an appropriate government would not cease to be controlled by an appropriate government only because an intermediary corporate entity is introduced for better management.
"Plainly, NDDB is under the control of the central government and the petitioner being a subsidiary of NDDB would be indirectly under the control of the central government," it said.
The CIC's April 15, 2011 order had held Mother Dairy to be a "Public Authority" and directed it to appoint a Central Public Information Officer (CPIO) and an Appellate
Authority.
Senior advocate Arvind Nigam, appearing for Mother Dairy, contended that the petitioner was a company registered under the Companies Act, 1956 and a subsidiary of NDDB. He argued that Mother Dairy had neither received any finances from central government nor does any government hold any equity capital of the petitioner. Therefore, CIC's order that the petitioner was a public authority was "erroneous".
The Hindu, 03 February 2015
A workshop on ‘Sustainable Dairy Production’ organised by the Kerala Veterinary and
Animal Sciences University (KVASU) as part of the Global Innovative Initiative (GII) will
Info@suruchiconsultants.com

be held at P.R. Mandiram Auditorium at Panur, near Koothuparamba, in Kannur district on
February 9 and 10. ‘‘The workshop aims at improving livestock production taking into account the economic, social, and environmental issues; global food safety, and issues relating to emerging food security concerns,’’ director of entrepreneurship T.P.
Sethumadhavan said in a release issued here on Tuesday.
abc.net.au, 1 February 2015
About 150 people have rallied in Melbourne to protest against new requirements to add a bittering agent to raw milk. The Victorian Government introduced the requirement to add a gag-inducing agent to unpasteurised milk amid health concerns. Raw milk can be sold in
Victoria as a cosmetic product, not for human consumption.
The law was introduced after a three-year-old child died last year after drinking Mountain
View Farm unpasteurised milk meant for cosmetic purposes. Four other children became ill after drinking the product. The protesters gathered outside the office of Consumer Affairs
Minister Jane Garrett and called for the requirement to be overturned. About 20 children were drinking raw milk at the protest; with some saying it tasted creamier than pasteurised milk.
Members of the Australian Raw Milk Movement maintain unpasteurised milk is safe to drink and spokeswoman Rebecca Freer said it should be regulated, not banned. "Australia's only one of two countries where raw milk is actually banned for human consumption," she said.
"The rest of the world, bar Australia and Canada, have already made a case and made it perfectly safe and regulated and people aren't dropping like flies. "But there has to be certain things happening for it to be safe. So if you look at other parts of the world they're very clear on stipulating that the cows need to be really healthy, the cows are grass-fed, and these are not factory-farmed cows."
NC news online, 31 January 2015
“Get real” — the dairy industry’s newest ad campaign is its latest effort to increase milk sales, which began a downward trend in the 1970s. The dairy industry blames this decline on the growth of non-dairy alternatives such as soy and almond milk, PETA, the Paleo Diet and vegan groups. It also blames a recent study published in the British Medical Journal, which suggests that drinking lots of milk could lead to earlier deaths and higher incidents of fractures. The real problem for the industry is that this study used pasteurized milk. More than 15 years ago, the Weston A. Price Foundation launched the Real Milk Campaign to promote full fat, grass-fed raw milk. The “Get Real” word play is clearly an attempt by the dairy industry to piggyback on this success. Not only were people buying alternative nondairy drinks because of trendy diets of various beliefs, thousands of people also started buying milk directly from farmers who were dedicated to producing high quality, grass-fed raw milk.
Info@suruchiconsultants.com

Humans have been drinking milk for thousands of years; maybe not quite as far back as the
Stone Age, but the milk we did drink was produced by cows raised on pasture, not confinement feed lots. And it was raw or fermented, not skimmed or ultra-pasteurized. It is full-fat, raw milk that does a body good and my smart, healthy, beautiful daughters — who have been drinking raw milk for more than 10 years — are a living testimony.
The Hindu Business line, 30 January 2015
Vietnam’s benchmark VN Index ticked down 0.08 per cent by the close on Thursday, with gains in dairy products maker Vinamilk cancelling falls in most other shares ahead of a central bank ruling on loans for stock investments.
Vinamilk, Vietnam’s second biggest listed firm by market value jumped 3.96 per cent to close at 105,000 dong ($4.9), a level unseen since November 4. Most other big-caps lost ground, but marginally and in moderate volume. Sentiment was cautious amid lack of supportive news, and ahead of the implementation of a central bank circular that will cap banks’ loans to customers who use the money to invest in stocks at five per cent of a bank’s registered capital, analysts said. Petro Viet Nam Gas, the country’s top firm by market value, led the decliners with a 1.27 per cent fall, while Hanoi-based lender Viet com bank fell 1.34 per cent.
The Hindu, 29 January 2015
Banks should extend loans for establishing small dairy farms in Perambalur district through
Tamil Nadu Adi Dravida Housing Development Corporation (THADCO), said Darez
Ahamed, District Collector, here on Thursday. The Collector reviewed the performance of 73 bank branches at the bankers’ meeting. Loans extended by banks for THADCO schemes,
Mahalir Thittam, Puduvazhvu Thittam, broiler chicken farms, and schemes of District
Industries Centre were discussed at the meeting.
The Collector distributed cheque to the tune of Rs.1 lakh at the rate of Rs. 20,000 each to five persons from Below Poverty Line families under Indra Awaz Yojana scheme. The Collector appealed to the bankers to help in the implementation of government schemes. N.Balu,
Assistant General Manager, Reserve Bank of India appealed to the bankers to give loans for farming and industrial activity. S.Sitharthan, Senior Regional Manager, Indian Overseas
Bank, and Kothandapani, Assistant General Manager, NABARD, spoke.
The Hindu, 29 January 2015
Kerala Cooperative Milk Marketing Federation Limited (Milma) is keen on taking up a project for production and marketing of organic milk. The project intended to venture into the
Info@suruchiconsultants.com

international market where the demand for organic products is high, P.T. Gopala Kurup,
Chairman of Milma told The Hindu. The project envisaged to produce organic milk conforming to international standards and to market the product using world class packaging methods. One of the main problems confronting the organisation was the capital investment required for the project. About Rs.30 crore was required for setting up a world class packaging unit. The Federation had submitted a proposal to the previous government at the
Centre, seeking aid, but failed to get sanction.
The federation had implemented several schemes with the support of Union government in the past. For instance, the Indo-Swiss project that intended to help improve milk supply was implemented with 70 per cent loan and 30 per cent Central grant. Certain other projects received 100 per cent grant from Centre. Efforts were on to revive the organic milk project, he said.
Allocation for State
Milma executed projects for upgrading the quality of milk for which support was being extended at the primary milk producers’ society level, he said. Under the National
Programme for Dairy Development being executed now, the State had been allocated Rs.47 crore. The programme was originally conceived with a view to having funds worth Rs.15 crore for each district, Mr. Kurup said. Milma’s new projects had seen an encouraging performance last year. The net profit increased by 144 per cent in 2013-14 compared to the previous year, while the revenue grew by 29 per cent. Though the State continued to depend upon neighbouring States to meet the milk requirement, procurement recorded an increasing trend in the State.
Milk procurement recorded 7 per cent increase, with the average procurement reaching 9.41 lakh litres daily in 2013-14 compared to 8.79 lakh litres in the previous year. The average sale during the last fiscal was 11.86 lakh litres per day. The shortfall was met by procurement from neighbouring States such as Karnataka, Tamil Nadu, Andhra Pradesh & Maharashtra, apart from use of Skimmed Milk Powder (SMP), according to data available from the organisation.
Times of Oman, 29 January 2015
BENGALURU: India has overtaken the European Union in 2013-2014 to become the world's biggest milk producer. As per the government of India's annual economic survey, the year-
Info@suruchiconsultants.com

on-year growth rate is 4.04 per cent, nearly double than the rest of the world, indicating a sustained growth in the availability of milk and its products. Sensing a bigger role in the domain of milk and its products, the government had formed the National Dairy
Development Board (NDDB), which was designed to help increase productivity of milch animals and thereby meet the rapidly growing demand for milk in the country and provide more rural milk producers with better access to markets.
It provides for financing activities carried out by select End Implementing Agencies (EIAs) in 14 major dairying states. India's estimated demand for milk is likely to be about 155 million tonnes by 2016-17 and around 200 million tonnes in 2021-22. In these projections, the Government sees a bigger role for the private sector in the dairy industry and has identified areas for public-private partnerships (PPPs). At present, the NDDB is running a programme called National Dairy Plan to augment milk production for meeting the growing demand. Phase 1 of the plan was launched in 2012 at Anand in Gujarat. The project involves a total investment of Rs2,242 crore and aims at increasing milk production by increasing productivity of milch animals.
The White Revolution in the 70s changed the dairy scene in India. Also known as Operation
Flood, it was launched to help milk farmers direct their own development, placing control of their resources they create in their own hands. The Anand pattern experiment at Amul group, a single cooperative dairy based in Gujarat was the driving force behind the success of White
Revolution. The states of Gujarat, Uttar Pradesh, Maharastra, Himachal Pradesh, Madhya
Pradesh, Punjab, Rajasthan and Tamil Nadu are the major production areas of dairy in India.
In the year 2013-14, India's export of dairy products was 1,59,228.52 metric tonnes to the world for the worth of Rs3,318.53 crores.
Scoop Business Independent News, 29 January 2015
Fonterra Co-operative Group Limited has reduced its milk volume forecast for the 2014-15 season to 1,532 million kg MS, reflecting the impact of dry weather on production in recent weeks. The new forecast is 3.3 per cent lower than the 1,584 million kg MS collected last season. The previous milk volume forecast, made in December last year, was 1,584 million kg MS. Group Director Co-operative Affairs Miles Hurrell said daily milk production was now 6.1 per cent lower than at the same time last season, as farmers appear to be using more traditional practices to manage their farm businesses with the low payout forecast. “In the first half of the season, excellent pasture conditions resulted in milk volumes being higher than the previous season.
“The situation has changed significantly over the course of this month. “In some regions where pasture quality has declined markedly since mid-January, we are seeing some farmers drying off cows early. There also appears to be a reduction in feed supplements, as the economics do not support their widespread use this season,” said Mr Hurrell. Fonterra has confirmed that it can meet all current sales commitments. However, in light of the reduced
Info@suruchiconsultants.com

milk volume forecast, it is planning to reduce the quantity of product offered on the Global
Dairy Trade auction platform, and via direct sales channels.
Indian cooperative, 26 January 2015
Sanjeev balyan visited Amul The magic of Amul experiment continues to attract foreigners and domestic visitors alike as last week one of the Union Ministers of State (Agriculture) Dr
Sanjeev Balyan came calling to GCCMF headquarters at Anand in Gujarat.
Dr Sanjeev Balyan led a delegation which included two Members of Parliament to the happening site of the largest dairy cooperative major Amul. GCMMF’s vast network of dairy farmers and their empowerment in the process continue to attract attention at this unheard of social engineering brought about by the genius of the man Verghese Kurien.
The delegation met the senior officials of GCMMF including its Managing Director RS
Sodhi who recently promised to take Amul to Rs 50,000 crore heights in a span of 5 years.
Only recently Amul had another extraordinary visitor in Prime Minister of Bhutan Tshering
Tobgay leading a 19 member delegation. The high profile visitors were received by the cooperative major Chairman Jethabhai Patel and Managing Director R S Sodhi. Bur Dr
Balyan is not the first Minister in Narendra Modi Cabinet to visit Anand. Earlier, union minister of food processing industries Ms. Harsimarat Kaur Badal had visited Amul headquarters and paid glowing tributes to the Amul cooperative blueprint.
The Hindu business line, 26 January 2015
HYDERABAD, JANUARY 26:
Animal health products maker All tech has invested $2 million (
₹
12 crore) to upgrade its
Bengaluru production facilities for feed additives, said Aman Sayed, General Manager-South
Asia of All tech Biotechnology. The company will focus on poultry, dairy and aquaculture to script its growth story in India in the next few years. It has opened a warehouse in Kolkata last year to meet the demands of Eastern India and Nepal, he told Business Line. All tech
India, which is 10 years into production in the country, offers over 70 customised solutions across species to farmers and feed millers. It helps partners with the latest technologies to reduce costs, a big concern of the Indian feed industry which faces rising cost of raw materials, antibiotic resistance, etc. These include enzymatic technology in animal feed additives and enrichment of eggs and milk with minerals.
The Bengaluru unit with a 14,000 tonnes a year capacity is situated near the electronic city.
After the expansion, it will be able to meet demands for the next three years. Similarly, the warehouse opened in Kolkata will take care of the poultry, dairy and aquaculture needs,
Info@suruchiconsultants.com

Sayed said. With just over 100 employees in South Asia, All techs registered a 20 per cent growth last year. The company has been successfully using its own psychometric testing strategy in talent spotting, which has led to gains, said Aoife Lyons, global director of education initiatives and adviser for business leaders.
Psychometric testing looks at people’s soft skills such as compassion, team work, creativity and flexibility as opposed to their hard skills, she said. The year 2012-13 was not very good for the company in India, especially in the dairy sector, due to the dipping global prices.
However, with the sector going through consolidation and industry getting more organised, last fiscal had improved. Overall, All tech India is quite upbeat now on the sector, Sayed said.
On product diversification, he said the company is open to bring in beverages and in the long term, beer and spirits with a potential partner.
The Economic Times, 23 January 2015
NEW DELHI: India can explore export potential of food products like dairy products, marines, fresh and processed items to China with a view to bridge the widening trade gap, industry officials said today. India has expressed concerns over widening trade deficit with
China and limited market access to its products due to a host of issues. The trade deficit was
$36.21 billion in the last fiscal.
"There is a huge trade deficit with China. That, of course ... be a major cause of concern.
There are various historical and structural reasons for this," Sanjeet Singh, Director,
Commerce Ministry, said at a press conference on forthcoming global food and beverage event 'SIAL China'. The country is keen to engage with the neighbouring country on wide range of areas including tourism and food sector, the official said.
India can explore export potential in dairy products, buffalo meat, marines, cereals and other fresh food and processed items to China provided the industry is organised, Bjoern Kempe,
SIAL China official, said. Around 60 Indian firms are participating in the global SIAL China expo to be held in Shanghai during May 6-8, he added. India exports raw materials and imports mostly finished items. The export of products like engineering goods, pharmaceuticals and farm products is limited due to various issues related to tariff barriers, regulatory and other complexities. Speaking at the event, Chinese Minister and Chief of the
Mission Yao Jing said, "Indian companies have strong competition in China. We would like to have more Indian companies in our country." Besides, he sought more efforts from India not only on policy front but also in providing infrastructure and other facilities to Chinese firms.
Vccircle, 22 January 2015
Info@suruchiconsultants.com

Private equity backed dairy firm Parag Milk Foods has earmarked Rs 120 crore ($19.5 million) for its expansion plan for the coming financial year where it is aiming to up its production capacity by over a third to 27 lakh tonne per annum. This would be a significant ramp up from Rs 75 crore that it has already invested for expansion during FY15. Parag Milk
Foods is currently exporting a fifth of its output to a clutch of over two dozen countries and aiming to increase its export share further in FY16. The firm wants to expand its presence in
Gulf countries and Singapore, in particular.
The firm is also expanding the basket of its value added products and as part of it entering healthy beverages segment with whey protein drinks. It is also entering milk cream category under GO Cream brand. The dairy firm has also appointed Bharat Kedia as chief financial officer (CFO) after Manoj Saraf quit to join Future Consumer as head of the finance wing.
Kedia comes after a stint at Publicis Group. Prior to that he served in the finance unit of several country and regional units of beverage giant Coca Cola in Europe.
Meanwhile, the firm has also unveiled a new logo. “Many people did not know that certain brands belonged to our company hence this logo will represent our matured identity,” said
Devendra Shah, chairman of Parag Milk Foods. Established in 1992 by Shah, Parag is one of
India’s largest private dairy companies. The firm produces liquid milk and value added products like UHT milk, cheese, butter, ghee (clarified butter), paneer (cottage cheese), yoghurt, curd, lassi, flavoured milk, dairy whitener and milk powder, which are sold under the brands ‘GO’, ‘Gowardhan’ and ‘Top Up’.
In September 2012, IDFC Alternatives invested $29 million in Parag Milk Foods in a deal which also saw previous investor Motilal Oswal Private Equity make a partial exit on its four-year-old investment. The PE firm had invested Rs 55 crore in Parag back in 2008 through its India Business Excellence Fund. The company was previously looking at an IPO but does not have any immediate plans and expects strategic sale for the PE investors who have invested in it. One year ago Lactalis bought Tirumala Milk in the largest acquisition deal in the dairy space in the country. It is also said to have opened the market for more such strategic sales, especially for many PE-backed private dairy firms.
Nyoooz, 22 January 2015
SAMBHAL: 4000 liters of adulterated milk is recovered from an unauthorized milk factory on Wednesday afternoon inside the Hajipur village under the jurisdiction of Asmoli police station in Sambhal district of Uttar Pradesh. The entire operation was launched by the SDM
Sambhal. Speaking with TOI, CP Tripati, SDM Sambhal, said, " We have recovered 40
Info@suruchiconsultants.com

thousand liters of adulterated milk and other materials from which the operatives were preparing adulterous milk which they supplied to the paneer makers and to the milk diaries running inside the adjacent districts here".
According to the officials, during the raid, the operatives of the milk factory managed to escape from the premises. Food inspectors Sambhal have sealed the milk factory after recovering the 4000 liters of adulterated milk and other substance from the spot. An FIR was also registered against the factory owners Tufail and Tariq under section 3/7 Essential
Commodities Act and under other sections of IPC on the complaint of food inspector
Sambhal at Asmoli police station.
According to the police officials, special teams have been appointed for to arrest of the culprits soon. SHO Asmoli police station, Kishav Tiwari said that after the huge recovery of chemicals and other substance the National Security Act may also be imposed against the culprits for preparing the adulterated milk. .
Indian cooperative, 22 January 2015
R S Sodhi According to R.S. Sodhi MD of the Gujarat Cooperative Milk Marketing
Federation (GCMMF), Amul’s yummy ice cream with the short phrase ”the taste of India” would soon gain further ground in business across the country. The Amul is planning to open nearly 10,000 new preferred outlets and about 1 thousand new ice cream parlours. Presently, the company maintains 7200 outlets and 800 parlours Mr. Sodhi says. The business expansion would be premised on the franchisee and franchise managed concept, The concept has worked well giving encouragement to private initiative in a big way. The model being low cost has attracted a large number of individuals to the ice cream retail business, Mr.
Sodhi was quoted as claiming.
Meanwhile, Amul has announced its intention to make an investment of Rs. 5000 crore in setting up about a dozen technologically most advanced milk processing units in the next fiscal. The company is aiming to spike its annual turnover to Rs. 50,000 crore in the next five years. Amul is likely to net an annual turnover of around Rs. 20,000 crore this year, Mr.
Sodhi said.
Allaying fears of a rapidly growing competition following the likely entry of domestic and foreign companies in the in the dairy sector , the Indian component counting only a niggardly
20 percent of the total market size of Rs. 4 lakh crore the GCMMF is not worried, Mr. Sodhi remarked. According to Mr. Sodhi, the GCMMF is wedded to a philosophy that allows it to pair its own business interests and the interests of the milk producing community. The company strictly follows the principle ” honesty is the best policy” in its business, Mr. Sodhi underlined.
Info@suruchiconsultants.com

The cattle site, 21 January 2015
INDIA - Looking for opportunities in the dairy sector, a 25-member Australian delegation visited Gujarat's dairy farm, Dudhsagar Dairy in Mehsana district. The delegation is part of
450 member Australian delegation touring India for business prospects. Australian companies are looking for opportunities in areas of dairy breeds, genetics, increasing productivity of cattle, animal nutrition, dairy farm consultancy, research and development in dairy products, fodder grass, others.
Speaking on the visit, Mark Morley, trade commissioner and leader of the agricultural & equipment, technology and services - dairy delegation said, Australia has a diverse dairy manufacturing sector and is the world's fourth largest exporter of processed dairy products.
Tough Australia has a cattle population of about 1.6 million milch animals, which is far less than India, but its productivity per animal is close to 25-30 litres a day, as compared to India's
5-6 litres a day productivity per animal, Morley said.
The Australian dairy industry is the third largest agricultural food industry, with farm gate value of production valued at $4 billion. "Australian technology, expertise, products and services can improve India's productivity, particularly in drought and water management, agricultural research and development, sustainable agricultural practices, agricultural robotics and machinery, plant genetics and pathology, and animal husbandry," Morley said.
The delegation members included firms like Selected Seeds, Enduro Tags, Dairy Innovation
Australia, Goodman Fielder, Agritechnology Pty Ltd, Austrex Flavourtech, The Vet Group,
Innovative Farm Solutions, Export Finance Insurance Corp., Goulburn Ovens TAFE, and
Chamberlain Veterinary Services among others.
Scoop Business Independent News, 21 January 2015
Jan. 21 (Business Desk) - Dairy product prices rose in the latest Global Dairy Trade auction, bolstered by gains in whole milk powder and rennet casein. The GDT average winning price increased 1.0 percent to US$2,758, up from US$2,709 two weeks ago. Some 31,326 tonnes of product was sold, down from 33,669 tonnes of product two weeks ago. ANZ Bank economists this week downgraded their forecast for Fonterra’s farmgate milk price to $4.35 per kilogram of milk solids in the current season, below the dairy exporter’s current expectation for a payout of $4.70/kg MS.
The bank said dairy prices will probably recover more gradually from last year’s halving as other producers, including domestic Chinese production, ramp up supply, and that New
Zealand’s currency will stay persistently strong, cutting into returns. Whole milk powder gained 3.8 percent to US$2,402 a tonne, while rennet casein rose 3.3 percent to US$8,159 a tonne. Skim milk powder added 1.0 percent to US$2,389 a tonne, and butter advanced 0.1 percent to US$3,564 a tonne. The Agri HQ Seasonal Farmgate Milk Price for the 2014-15 season increased by 10 cents per kg milk solids to $4.40 per kg milk solids following the
Info@suruchiconsultants.com

latest Global Dairy Trade auction. This is comparable with Fonterra’s current forecast for the season of $4.70/kg MS.
The Agri HQ Snapshot Farmgate Milk Price indicates that if the latest GDT prices were achieved across the entire season this would equate to a milk price of $4.35/kg MS, a 20-cent increase from the previous auction. This increase was driven by higher prices for whole milk powder at the auction. “Renewed optimism for the remainder of the season has shown through in an increase in prices on the NZX Dairy Futures market since the January 6 auction," Agri HQ analyst Ivan Luketina said in a note. "Although milk production in New
Zealand is well past its seasonal peak, milk flows are still high at this time of year, so it’s hard to see prices rising quickly in this market environment without something significant tipping the supply and demand balance," Luketina said.
"That may yet come, however, if the current dry weather pattern persists in key dairy producing regions of NZ," according to Luketina. "The Agri HQ Milk Production Predictor is already indicating that the weather is having an impact, and it’s expected production forecasts will be lowered further when the next revision is done on February 1."Butter milk powder dropped 6.4 percent to US$2,559, while anhydrous milk fat fell 5.0 percent to
US$4,286 a tonne. Cheddar shed 4.3 percent to US$2,961 a tonne, while sweet whey powder dropped 4.1 percent to US$1,155 a tonne .Lactose was not offered at the latest event. The
New Zealand dollar last traded at 76.93 US cents at about 12:37pm in New York, down from
77.82 US cents at 5pm in Wellington on Tuesday. There were 113 winning bidders out of 169 participating bidders at the 12-round auction. The number of qualified bidders rose to 677, up from 671 at the last auction.
Phys.org, 21 January 2015
Consumers perceive that organic cow milk differs from conventionally produced milk and that these differences justify the premium price for organic milk. In a review published in the
Journal of Dairy Science, researchers in New Zealand found that the differences between organic and conventional milk are not so straight forward. Reviewing almost 200 publications, researchers concluded that previously conducted controlled studies investigating whether differences exist between organic and conventionally produced milk have so far been largely ambiguous, due principally to the complexity of the research question and the number of factors and variables that can influence milk composition. "This review presents one of the most detailed treatises to date of organic versus conventional milk composition," commented
Matt Lucy, PhD, Professor of Animal Science, University of Missouri, and Editor-in-Chief of the Journal of Dairy Science.
"When comparing organic and conventional milk composition (especially milk fatty acids), previous studies have generally compared organic dairying with milk produced from grassfed cows to conventional dairying with milk produced from concentrate-fed cows. The differences in milk composition observed are actually due to the different diets of the cows
Info@suruchiconsultants.com

(i.e. pasture versus concentrate feeding) rather than organic versus conventional farming systems," according to lead investigator Don Otter, PhD, Senior Scientist, Food & Bio-based
Products, Ag Research Grasslands Research Centre (New Zealand).
Because there are many factors that affect milk composition, it is difficult to control for all of them when comparing organic to conventional milk production. According to the investigators, "The term 'organic' when applied to dairying is not universal, and to a large extent, is defined simply by regulations that differ from one country to the next.
'Conventional' basically is anything that is not 'organic.' However, in most parts of the world, conventional dairying is associated with high levels of grain feeding, the use of cow breeds which produce high milk volumes, and the application of large amounts of fertilizer ('high input' farming), while organic dairying is tied to pasture and forage feeding, lower amounts of fertilizer application, and the use of mixed or minority breeds ('low input').
The vast majority of differences reported between organic and conventional milk come from what cows are fed and their breed, and is not anything unique to being organic or conventional in itself." Therefore in terms of nutrients in milk, there is nothing distinct about organic milk that makes it unique from conventionally produced milk once the different factors that influence milk production are compared or adjusted for. If animal genetics, health, breed, diet, management, or environment differs, then so will the composition of the milk produced.
www.iamin.in, 20 January 2015
Following the rise in milk prices, milk product traders of Cuttack have decided to hike the prices of cheese, paneer and raw khoa (dried whole milk or milk thickened by heating in an open iron pan) from January 26.The decision was taken by the Milk Product Traders
Association of Cuttack during its executive body meeting here on Monday. They decided to hike cheese price by Rs 10 a kg, paneer by Rs 15 a kg and khoa price by Rs 20 a kg. So, from
January 26, paneer will be sold at Rs 180 a kg, cheese at Rs 145 a kg and khoa at Rs 190 a kg in Odisha. Pradeep Behera, General Secretary of the Association, said that they took the decision to hike prices of milk products as OMFED has raised the price of milk.
Business Standard, 20 January 2015
Bengaluru: Cultivating organic fodder and nurturing cows with care would yield plenty of
"truly" organic milk and make their owners wealthy in a short period, says a veterinary expert who runs a dairy in the Karnataka countryside. Veterinary doctor-turned-entrepreneur G.N.S.
Reddy maintains that shocking as it may sound, most of the milk supplied or sold in urban
India is not organic but artificial as it is sourced from farmers who feed their cattle with fodder grown on chemical fertilizers like urea.
Info@suruchiconsultants.com

"Milk produced even through cooperatives is contaminated, as modern husbandry encourages a lot of artificial factory-made fodder and harmones for cattle with no quality control at chilling or processing plants," Reddy told IANS from Tiptur, where his dairy is located, in
Tumakuru district, 150 km from here. Set up in 2010 on a 24-acre land with Rs.25 crore upfront investments, Akshayakalpa Farms & Foods Ltd. is the first of its kind private initiative to incubate rural entrepreneurship based business models in the countryside, he said.
"With organic milk becoming popular, especially among health-conscious citizens of
Bengaluru, our member farmers are able to sell their entire produce through our firm
Akshayakalpa for Rs.50 per litre, earning Rs.15 net income per litre," Reddy said.
He said they have a makeshift arrangement to process daily 15,000 litres of milk, collected from about 1,100 farmers who grow organic fodder on five acres each of their lands "under our supervision and are able to milk 10-12 litres per cow". Though India is the world's largest milk producer (135 million tonnes per year) from maximum number of cattle (300 million), average yield per cow or buffalo and its quality is low -- less than a litre for every kilo of feed
(fodder) as against 1.6 litres per kg feed in the best farms world over, he said.
Reddy said their "twin objectives are to make small and medium farmers as enterprising and productive as those in manufacturing or services, earn as much as they do and stay put in villages to provide job opportunities for rural youth". By making organic dairy farming fruitful, Reddy said he wants to reverse urban migration and create economic opportunities for small and medium farmers to become micro-entrepreneurs, and by introducing automated organic dairy production as an integral part of small and medium farm across the state, he hopes, will create self-sustaining farms that increase income of farmers and lessen manual labour.
"We are setting up a one lakh litre processing plant to expand capacity and train more farmers in using technology to produce organic fodder and yield organic milk. It will be a win-win situation for them and consumers, who will get high quality and pure milk," Reddy said. The dairy plant is expected to be commissioned by mid-2016, opening up unlimited possibilities, as denoted in "Akshayakalpa". With 25 cows in each shed on the five-acre farm land where a variety of fodder is growth, the farmer is also able to generate power for irrigation pump set through bio-gas plant, run with the cattle's urine and dung as raw material. Reddy has also roped in a dozen people, including techies from IT majors like Wipro and others to demystify technology, train farmers in optimal utilisation of natural resources and use marketing networks to hard sell their milk and other dairy products.
Indian cooperative, 20 January 2015
To ensure compliance with the state govt’s guidelines, Kolhapur district cooperative milk producers’ society aka Gokul Dairy will soon go to the polls to elect its new management board. The board members are elected from the grass roots cooperative societies that collect
Info@suruchiconsultants.com

milk from farmers. The grassroots cooperatives choose their own boards of directors and they in turn elect the Gokul Dairy board of directors.
The head of the Gokul Dairy is supposed to be very powerful. According to the Times of
India report, the upcoming cooperative election will witness political fireworks. The dairy’s present controller Mahadev Mahadik and former minister of state for home Satej Patil are likely to lock horns with each other during the election, the report says. The Dairy has an annual turnover of Rs. 1,100 crore. There are 19 directors altogether on the Dairy’s board.
Despite its location in a city, the dairy covers areas further afield like Mumbai, Thane, Navi
Mumbai and Pune.
franchiseindia.com, 19 January 2015
Indian dairy cooperative, Amul is looking at fast expansion of its ice cream outlets and parlours. Known countrywide with its popular slogan ‘The Taste of India’, it has planned to open 10,000 Amul Preferred Outlets and one thousand Amul Ice cream Parlours in the near future. At present, Amul has 7200 outlets and 800 parlours. The expansion will be based on franchise mode.RS Sodhi, Managing Director of the Gujarat Cooperative Milk Marketing
Federation Ltd, maker of Amul brand products, says, “We prefer the franchisee owned and franchisee managed model rather than any other model. We feel that this actually brings about the enterprising skills of the individuals on the table. The kind of product range Amul offers is unparallel and most of our exclusive retail outlets thrive due to this huge variety on offer. Our franchising model is pretty low-cost in nature and therefore we remain the largest franchisors in the branded packaged food segment.”
Speaking further on the growing ice cream sector, RS Sodhi, tells Franchise India, “As the industry is getting matured we see the future to be led by more functional variants of icecreams. One would now find ice creams catering to specific segments and would include probiotic range, sugar free range, richer ice-creams with higher fat contents, luxury and premium take home range among others. Thus players seeking to acquire firm foot in the market would need to be more innovative in their offerings and would also have to reach out to the places which were subserviced erstwhile.”
The Hindu, 20 January 2015
Just about a month after the Odisha Milk Federation (Omfed) hiked the price of milk by Rs two a litre, milk-product traders dealing with cheese, paneer and raw khua have decided to increase the price of their products .At an executive body meeting here on Monday, the
Cuttack milk-product traders have decided to increase the price of cheese by Rs 10 a kg, paneer by Rs 15 a kg and khua by Rs 20 a kg, from January 26.“Cheese would now be sold at
Info@suruchiconsultants.com

Rs 145 a kg, paneer at Rs 180 a kg and khua at Rs 190 a kg from January 26,” said Traders’ association general secretary Pradeep Behera. He said in view of the recent increase in price of milk by the government-run Federation, we were left with no choice but to follow suit. The price hike of milk products from next week would also have a cascading effect as sweet and confectionary makers will be forced to revise the rates.
Food safety news, 19 January 2015
The latest warning letters issued by the U.S. Food and Drug Administration (FDA) went to
Nestle Purina Pet Care in Allenton, PA, and Flood Brothers LLC in Clinton, ME. On Jan. 2,
2015, FDA’s office in Philadelphia sent a warning letter to Nestle Purina Pet Care noting that an inspection of the company’s low-acid canned food manufacturing facility in Allenton had been made from Sept. 15-Oct. 1, 2014.
The letter stated that the inspection revealed “significant deviations” from the regulations regarding low-acid canned foods specifically that pet foods were not being processed in conformity with scheduled process times and minimum initial temperatures and minimum sterilization temperatures. The agency acknowledged receipt of a letter from the company stating that the processes had been evaluated and the products had “received a sufficient thermal process to achieve commercial sterility. ”However, FDA stated, the company’s response was not considered acceptable because no documentation was provided regarding evaluation of the entire product lot nor were any documentation or specifics provided of a corrective action plan to prevent such occurrences in the future.
Additional concerns cited in the FDA warning letter were that the pouch thickness for the company’s processed pet food products were not being monitored or documented as required by regulations, cooling water had not been adequately chlorinated or otherwise sanitized, and can conveyors and the reject chute did not have adequate protections in place to prevent an unprocessed can from falling into the cooling canal in the event of a can jam or other equipment malfunction.
FDA’s district office in Stoneham, MA, sent a letter dated Dec. 31, 2014, to Flood Brothers
LLC in Clinton, ME, relating that inspections of the company’s dairy operation had been conducted on Nov. 4, Nov. 6, and Nov. 19, 2014. These inspections found violations of the
Federal Food, Drug, and Cosmetic Act (FD&C Act), according to the agency’s letter.
Specifically, FDA alleged that Flood Brothers sold a dairy cow for slaughter as food in
August 2014 which was later found to have flunixin at 0.253 ppm in its liver tissue. FDA has established a tolerance of 0.125 ppm for residues of flunixin in the liver of cattle, the letter stated.
“The presence of this drug in edible tissues from this animal in this amount causes the food to be adulterated” within the meaning of the FD&C Act, the agency stated, adding that the dairy had also failed to maintain complete treatment records. In each letter, FDA requested that the
Info@suruchiconsultants.com

companies provide written responses detailing steps taken to bring the facilities into compliance with food-safety laws and regulations, to correct violations cited in the letters, and to prevent their recurrence. Recipients of these warning letters have 15 working days from receipt to outline specific steps they have taken to come into compliance with the law.
State times News, 19 January 2015
JAMMU: Jammu Municipal Corporation (JMC) on Monday destroyed the already seized nearly 45o3 litres of double toned substandard milk of ‘Go’ brand. Under the supervision of
Municipal Commissioner, Kiran Wattal, the Food Wing of JMC headed by Health Officer,
Dr. Mohammad Saleem Khan and Food Safety Officers lifted two samples of Double Toned
Milk ‘Go Brand’ during routine checking in the month of August, 2014 from the premises of
M/s Best Price, Wall Mart India Pvt. Ltd. Akhnoor Road and M/s Parag Milk Foods Pvt. Ltd.
Akali Kour Singh Nagar, Digiana, Jammu (Distributor/Supplier) of Double Toned Milk ‘Go’ brand and were sent to the Food Analyst, Jammu for analysis . About 4,503 litres of said milk was seized and kept in the safe custody of designated officer (Health Officer) Jammu
Municipal Corporation. The Food Analyst reported the samples Mis-branded on 20th
September 2014 and accordingly prosecution was launched in the Court of Law i.e.
Adjudicating Officer (FSSA 2006) (Additional District Magistrate), Jammu by the concerned
Food Safety Officers Ashwani Kumar and Parveen Gupta.
The designated Court after hearing, convicted accused parties i.e. M/s Best Price, Wall Mart
India Pvt. Ltd and Parag Milk Foods Pvt. Ltd and M/s Parag Milk Product Pvt. Ltd by imposing a fine of Rs. 20,000 to the accused parties referred above and further ordered that the seized product being of perishable nature and also not safe for the consumers be destroyed. In compliance to these orders dated 6th January 2015, the designated officer and
Food Safety officers concerned on Monday destroyed the seized products in the presence of
Executive Magistrate and local media. It is pertinent to mention here that Jammu Municipal
Corporation in its previous major drives on certain occasions also destroyed huge quantities of sweets, milk, milk products and other food articles being prepared under unhygienic conditions largely in the public interest and for safety of general public.
The New Indian Express, 19 January 2015
ALAPPUZHA: Home Minister Ramesh Chennithala has said that the state government will put pressure on the Central Government to include dairy farming in the Mahatma Gandhi
National Rural Employment Guarantee Programme (MGNREGP). He was speaking after
Info@suruchiconsultants.com

inaugurating the new office of the Thiruvananthapuram Regional Cooperative Milk
Producers’ Union (TRCMPU) at Punnapra near here on Sunday.
The Minister said that the state government had been trying to include Dairy, Khadi and Coir sectors in the list of MGNREGP. But the Central Government has not included these jobs in the list. We expect the Union Government to include the jobs in the near future, the Minister said. The Minister said that the procurement of milk was increased by 12 per cent in the district and the sale increased by 8 per cent. Milma has helped dairy farmers to increase production and sale of value added products, he said. Milma chairman P T Gopalakurup presided over the meeting. K C Venugopal MP, G Sudhakaran MLA, district panchayat president Prathibha Hari and Ambalappuzha block panchayat president B Sulekha spoke.
The Hindu, 19 January 2015
Home Minister Ramesh Chennithala said on Sunday that the State government was continuing its efforts to ensure the inclusion of the dairy sector within the ambit of the
Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).
Inaugurating the new office complex of the Thiruvananthapuram Regional Cooperative Milk
Producers’ Union (TRCMPU) at Punnapra, he said the government was firm on its demand to include the dairy, coir and khadi sectors in the scheme. “The inclusion of the dairy sector will enable the State to attain its target of self-sufficiency in milk production earlier than expected,” he said. According to Mr. Chennithala, there has been an increase of 12 per cent in milk production undertaken by Milma in the district. In addition, the growth in sales has also increased by 8 per cent. “The activities of Milma in procuring and selling milk and valueadded products have been of immense assistance to the dairy farmers in the State.” He added that three-wheelers with canopy were distributed among 12 unemployed youth for ice-cream vending in the district with the assistance of the Scheduled Caste Development Department in the previous year.
Zee News, 18 January 2015
Mumbai: Dairy products giant Amul is planning to invest Rs 5,000 crore to set up around 10 milk processing plants in the next fiscal in order to achieve the revenue target of Rs 50,000 crore by 2020."We will invest Rs 5,000 crore to set up around 10 milk processing plants in
Info@suruchiconsultants.com

the next financial year, including two plants in Delhi, three in Uttar Pradesh, one each in
Kolkata and Maharashtra and the rest in Gujarat to achieve our revenue target of Rs 50,000 crore by 2020," Amul Managing Director R S Sodhi said at the India Food Forum 2015 here.
Further, Sodhi said, Amul is on track to achieving annual revenues of Rs 20,000 crore this year. Even as increasing milk productivity, improving cattle breeds and feeding practices in the country represent challenges for Amul, still the next generation of rural farmers should remain in the animal husbandry business, Sodhi said.
"It is possible to earn Rs 40,000 per month with 30-40 cows and buffaloes at project cost of
Rs 21 lakh including a loan component of Rs 15 lakh," Sodhi said. On new entrants in the dairy segment from the private sector and MNCs, Sodhi said, India's organised sector only constitutes 20 percent of the total market size of Rs 4 lakh crore for dairy products and there is space for everyone. "Our philosophy for the past 60 years have been to ensure remuneration prices for our 3.5 million members and value for money for the consumer, using the best ingredient at a fair price," Sodhi said. Unlike some in the industry who source raw material at cheaper rate and get better realisation in sales, Amul ensures in getting raw material at best price while keeping selling price lower than its competitors, he asserted.
"Hence, we cannot spend more than 1 percent of our revenue on advertising, compared to other food companies who spend 8-15 percent annually," Sodhi said, adding that its advertising expenditure last year was 0.8 percent. Amul, the dairy cooperative based in
Anand district of Gujarat, formed in 1946, is a brand managed by Gujarat Co-operative Milk
Marketing Federation.
Indian cooperative, 18 January 2015
Prakash Singh Badal In a move that will make farmers cheer up, the Punjab govt has announced the OTS as demanded by farmers. The loans outstanding against dairy farmers in
Punjab have become a big problem as farmers are not able to repay them. The dairy farmers had urged the state govt to offer them a respite from this obligation through ” one time settlement scheme (OTS).The scheme will cover all dairy loans that had become bad loans
[NPA]. All the court cases filed against farmers where decrees had been obtained would be closed. The central cooperative banks had advanced most of the loans. However, the scheme would not cover cases of fraud and willful defaulters, he said. Divulging the details of concession under settlement formula, the spokesperson said where the amount of loan advanced was more than Rs 50,000, simple rate of interest at a rate of 10 per cent per annum would be charged from the date of asset becoming NPA in the books of the bank.
Business Standard, 13 January 2015
The card, which can be used to buy products from Amul parlours, will ease access to the dairy major's range across Ahmedabad. Amul in collaboration with State Bank of India (SBI) launched Amul Milk Card, a prepaid smart Card, at Mother Dairy in Gandhi nagar on
Info@suruchiconsultants.com

Monday. The card can be used to purchase products from Amul parlours. The card was launched by Arundhati Bhattacharya, chairman, SBI and R S Sodhi, managing director,
Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets its products under the brand 'Amul'.
This initiative, a statement issued by the Amul said, will ease access to the dairy major's wide range of products available across Amul parlours in Ahmedabad. The card, aimed at facilitating customers with convenient and hassle-free mode of payment, will be available to customers for free. They can get the top-up on their card at all Amul parlours and customers will get an SMS alert whenever the transaction is made using this card. The minimum recharge amount is Rs 100 while the maximum recharge amount has been fixed at Rs
3000.Sodhi said that such co-branded milk card is being introduced for the first time in the country.
"Milk and dairy products account for the largest share of expense in food items of households and such convenience in purchase of milk and milk products will benefit all households.
Amul milk is the largest brand of milk in the country with daily sales of over 100 lakh litres.
So, we intend to provide the benefit of this smart card to a large number of our consumers. It eliminates cash transaction on daily basis and also solves the problem of change and small denomination coins," he said. Bhattacharya said, "This initiative is a win-win situation for customers, the cooperative and the bank. It will eliminate lot of cash handling hassles."
The service is presently being launched at 10 Amul parlours in city and the Anandheadquartered dairy major plans to expand the service to 100 parlours in the coming three months before expanding it to other Amul parlours across the state. Sodhi, meanwhile, ruled out any hike in prices of milk for the next three to four months. GCMMF is India's largest food products marketing sales organisation with annual sales turnover of Rs 18,500 crores. It is a cooperative federation of 35 lakh milk producers affiliated to 17,000 village cooperative societies handling an average of 150 lakh litres of milk every day.
The Hindu business line, 12 January 2015
NEW DELHI, JAN. 12: The maiden visit of an Australian trade delegation to India led by
Andrew Robb, Minister for Trade and Investment, commenced here on Monday with the reiteration of the country’s commitment to successfully conclude a free trade agreement
Info@suruchiconsultants.com

(FTA) with India by end-2015. “Our highest priority is the conclusion of a bilateral trade deal with India. Our Prime Ministers have committed to concluding the FTA deal by the end of
2015,” said Robb, adding that Australia had already inked similar pacts with China, South
Korea and Japan earlier.
The decision to establish a bilateral trade pact between India and Australia were first mooted in 2011 and negotiations have been successfully undertaken on the issues of non-tariff barriers and facilitation of investments. Bilateral trade currently stands at $15 billion in 2013-
14, about a tenth of Australia-China trade which amounts to $160 billion. “At the moment there are only 450 Australian companies in India, as compared to 11,000 Australian companies in the US. We want to see many thousand Australian companies in India in the years to come,” said Robb.
He added that significant cooperation can be achieved in energy with Australia supplying uranium and low-emission LNG while also sharing technology and expertise for India to successfully exploit its mineral resources.
Focus on dairy, agriculture
Among the 450 delegates representing 14 sectors, a team of 25 will look to explore opportunities in the dairy industry, particularly with regard to training, research and development of the sector in India. “We represent only 7 per cent of the global dairy trade and the sector is rather disaggregated. So, with dairy moving from being a cottage industry to full-fledged sector, Australia can help provide technology to modernise Indian dairy. That’s our niche,” said Mark Morley, Senior Trade Commissioner, Australian Trade Commission.
Currently, agri-related bilateral trade stands at $488.5 million as of 2013-14, far less than
China or even Saudi Arabia. “The export opportunity is massive, there’s a gap to fill here with India’s middle class growing and more innovation in dairy and food processing sectors,” added Morley.
India primarily imports pulses, wool and almonds from Australia with horticulture producers expecting trade, particularly in citrus, with India to expand if the FTA comes through. With
Vietnam banning imports of Australian fresh fruits and vegetables due to poor fruit fly management from January 1, India would provide a sizeable alternative market.“There are many experiences that can be applied here but as trading partners, we need to resolve our restrictions immediately,” said Senator Richard Colbeck, Australia’s Parliamentary Secretary for Agriculture.
The Guardian, 12 January 2015
Info@suruchiconsultants.com

Years of falling milk prices could spell an end to the fresh, safely produced dairy products we take for granted .The number of dairy farmers in the UK has halved in the last decade, with falling milk prices the main cause. With the latest news of a major dairy cooperative forced to delay payments to farmers, and a price war among supermarkets, the sector is likely to decline further. Dairy farmers are among the most sensitive to volatile pricing. Fresh milk has a short shelf life, so unlike livestock farmers who may have some choice over when to sell their meat, dairy farmers must take deliveries at the farm gate every day.
But their position has been increasingly precarious. For the first time in living memory, there are fewer than 10,000 dairy farmers in the UK, and that number is less than half those in
2002. Supermarket price wars have reduced the price of milk in the shops dramatically. In recent weeks, the money dairy farmers can expect to receive at the farm gate for their product has sunk to about 20p per litre – down from 33p a year ago. At the same time, energy and feed costs have increased, putting farmers in a double bind.
Milk has now fallen to below the price of bottled water, as Meurig Raymond, president of the
National Farmers’ Union, has pointed out, and is now below the cost of production for most farmers. The only way most of those producers can stay afloat is by relying on subsidies from the European Union under the Common Agricultural Policy (CAP). Big supermarket buyers know how much their producers are receiving from the CAP, and can therefore tailor their price cuts accordingly.
Raymond, a dairy farmer himself, said: “The recent milk price cuts from most processors have had a massive impact, with some farmers now facing their lowest milk prices since 2007 at around 20p a litre. Farm costs remain some 36 per cent higher than they were eight years ago and the single largest component of a dairy farm – animal feed – is more than 50 per cent higher than 2007 levels. This combination has left many producers under extreme financial pressure and fearing for the future of their dairy businesses.”
Although prices have fallen for years, mainly as the result of supermarket competition and pressure on suppliers, in recent months the increasingly international market for milk has also played a part. Good weather in New Zealand and other major producers has led to a glut of dairy products – including dried milk, cheese, cultured milk and others – on the world market. A slowdown in the rate of growth in China is also playing a part, as middle-class consumers there were eagerly buying dairy products in bulk for the first time. Dairy sales abroad had increased 60% for UK farmers since 2009, before the current problems.Some farmers have been dealing with the price falls by concentrating herds into “mega farms”, in which hundreds of cows are housed together in massive sheds, fed on processed feed instead of grass, often never allowed to roam freely, and dosed frequently with medicine to keep them healthy. The economies of scale allow them to sell milk more cheaply, but the farms are a far cry from the vision of the countryside that many people still hold, and have faced local opposition.
The pricing of milk has never been clear or transparent to shoppers - to the benefit of supermarkets. Consumers unhappy about the supermarkets’ pricing policies and keen to
Info@suruchiconsultants.com

support farmers can look for independent milkmen and farmers who sell direct to retailer, where their products carry a slightly higher price. Sutton Coldfield Dairies, which serves part of Birmingham, for example, was set up by ex-Dairy Crest employee Phil Mitchell and sources from dairy farmers in a 30-mile radius in the Midlands. Suffolk-based Mary belle sells its own milk and award-winning yoghurts to a network of local retailers, including supermarkets Waitrose and the Co-operative. And straight to your door, River ford and Abel
& Cole - better known for their organic vegetable box deliveries - also supplies milk direct from organic dairy farmers.
Elizabeth Truss, the secretary for environment, food and rural affairs, recognised the problems facing the dairy industry in her address to Britain’s farmers last week at the Oxford
Farming Conference. She mooted the possibility of a futures market for dairy; vowed to cut the number of inspections of dairy farms; and to deal with bovine TB. She said: “This government has backed dairy and backed the food industry across the board. Since 2010, we have signed deals to open 600 overseas markets to British food and farm products. We are putting an emphasis on dairy as we seek new agreements.”
These measures will take some time to come into effect, and there is no guarantee they will halt the decline. For consumers, falling milk prices may look like good news but we face a choice: fresh and safely produced milk, taken for granted for more than a century, is now expensive to produce in this country. Do we want a future of higher milk prices, or one of importing milk from other countries? Or one in which cows no longer sees grass?
The Economic Times, 12 January 2015
BEIJING: In an unprecedented campaign, scores of Chinese farmers dumped tonnes of milk and killed their own cows to protest against falling milk prices, prompting authorities to intervene and take steps to support the dairy industry. "A tonne of milk has to be discarded each day," dairy farmer Pei Shuke in east China's Shandong Province said. "This desperate thing rarely happened before." To recover their costs, some dairy farmers are feeding the milk to calves, or simply throwing out the nutritious liquid. Some have even killed their cows to prevent further losses. Following the incident Ministry of Agriculture (MOA) promised measures to boost incomes of dairy farmers.
The ministry encourages dairy firms to increase purchasing, starts dairy production monitoring on a weekly basis, and strengthens policy support for the dairy industry, MOA said in a statement. The ministry said it had talked to major dairy firms including Inner
Mongolia Yili Industrial Group and Mengniu Dairy Group, and urged them to purchase more milk, stabilise prices and safeguard interest of dairy farmers.
The ministry will work together with other central government departments including the
Ministry of Finance to map out more supportive policies to help dairy farmers to overcome their plight, it said. Similar cases have spread to other major milk-producing areas in China, including Hebei and Inner Mongolia. Slumping milk prices since the second half of 2014
Info@suruchiconsultants.com

have pushed many dairy farmers to desperation, state run Xinhua news agency reported. Milk prices fell for ten consecutive months starting in February 2014.In the first three quarters of last year, they dived to 3.84 yuan per kg from 4.26 yuan per kg, and the trend showed no signs of stopping in the last three months of 2014.
The dairy sector downturn has come as a surprise to many. In late 2013, China's dairy products saw a price hike following a production decrease caused by disease and farmers leaving the industry. Milk prices jumped to more than 5 yuan (USD 0.8) per kilogram in
December 2013 from 3. 4 yuan per kg a year earlier. The dairy boom sent ripples of excitement through the sector, with farmers purchasing large numbers of dairy cows at high prices to boost production. But the boom proved to be a flash in the pan. In March 2014, foreign milk prices began to fall drastically due to overproduction.
The Economic Times, 12 January 2015
GUWAHATI: Diversified conglomerate Dharampal Satyapal Group plans to have five more production units to roll out a range of dairy products across the country in next three years, entailing an investment of Rs 200 crore. The Group's dairy division, which is looking to cross
Rs 1,000 crore revenue by 2017-18, had recently acquired a production plant in Rajasthan.
"We want to be a full-range dairy product firm with a pan-India presence within next three years.
For this, we will add five more plants, taking our total number of production units to 7-8,"
Dharampal Satyapal Group (DS Group) Business Head (Dairy Division) Sunil Kumar Bansal told PTI here. These plants, which will be a mix of company-owned and leased ones, will produce all types of dairy products for the Indian market, he added .He said DS Group will soon roll out butter, cheese and other milk products to become a "complete dairy firm" and offer all products that the competitors are selling. When asked about investments, Bansal said: "We have not decided on how many plants will be company-owned or how many will be leased ones. Still, it will require around Rs 200 crore of investment to have these five plants in the next three years. "Talking about sales, he said: "Our plan is to cross Rs 1,000 crore revenue by 2017-18. We are expecting to close the current fiscal with over Rs 250 crore revenue."
On the recently acquired plant, the official said DS Group purchased the unit at Udaipur in
Rajasthan from MG Dairy for an undisclosed amount. "The plant has an installed capacity to process 1.5 lakh litres of milk per day. We acquired it last month and now upgrading it as per our requirements. The commercial operation of the plant is likely to begin by March this year," he added. The dairy division of the entity currently has its operational unit at Reengus in Rajasthan with an installed capacity to process 6 lakh litres of milk every day.
Info@suruchiconsultants.com

Besides, DS Group plans to set up a green field plant in Assam for its dairy products as it aims to cross Rs 200 crore revenue from the region in this segment by FY18 as against its target of Rs 20 crore sales in 2014-15.The Group has already procured the machineries for setting up the plant and is currently looking for 5-7 acres of land in and around Guwahati.
The proposed plant will have an installed capacity of processing 1 lakh litres of milk every day and the total investment will be about Rs 30 crore for setting up the unit. Before this, the
Group will start production in Guwahati within next 3-4 months from a leased facility. The dairy division has already identified it and will start production with a capacity to process 100 tonnes of milk per month within next 3-4 months in the state capital.
Drinks-business-review, 12 January 2015
Indian conglomerate Dharampal Satyapal Group (DS Group) is planning to set up five new dairy production plants in the country, a move that will increase its capacity. The company intends to invest around INR2bn ($32.14m) in the expansion, which will enable it to launch a range of dairy products across the country over the next three years.
The proposed plants, which will be either a mix of company-owned or leased ones, will produce all types of dairy products including butter and cheese, reports The Press Trust of
India (PTI). Commenting on the expansion, DS Group Dairy Division business head Sunil
Kumar Bansal was quoted by PTI as saying: "We want to be a full-range dairy product firm with a pan-India presence within next three years. "For this, we will add five more plants, taking our total number of production units to 7-8."
The company plans to build a greenfield plant in Assam which will have a capacity to process one lakh litres of milk every day, besides commencing production in Guwahati over the next
3-4 months from a leased facility.DS Group intends to generate around INR10bn ($160.7m) in revenues by 2017-18.It currently operates a dairy unit at Reengus in Rajasthan which is capable of processing nearly six lakh litres of milk daily.
The New Indian Express, 12 January 2015
HYDERABAD: Giving private dairy firms a run for their money, the Telangana division of
Andhra Pradesh Dairy Development Cooperative Federation Limited has been clocking increased milk procurement for the past two months and has procured 70 pc more milk per day this month than in October. The federation started registering more than 2 lakh litres of milk a day from all districts of Telangana. In October, the procurement was about 1.18 lakh litres a day.
The Telangana government approved Rs.4 incentive to be given to farmers who supply milk to the cooperative. The scheme was announced in October last and being implemented since
Info@suruchiconsultants.com

November. Officials claim that the scheme is encouraging goading dairy farmers to supply milk to them rather than to private firms. An official of the federation said that depending on the fat percentage in milk, they pay the suppliers. “For milk with 10 pc fat, we pay Rs.57 a litre, including incentives,” said G Kondal Reddy, deputy director, Mahbubnagar Milk Shed.
Though some private firms also pay the same price, transparency in the cooperative’s operations encourages farmers to supply milk to them, the official says. The per day milk procurement has remarkably increased in all districts of the state after implementation of the scheme.
Milk procurement went up by 38,000 litres in Mahbubnagar, 17,000 litres in Warangal and
10,000 litres in Khammam and Medak each, said P Mohan Murali, general manager,
Procurement and Input, of the federation. Likewise, there has been an increase in the total incentives provided to the farmers. Rs.1.74 crore was provided as incentives in November and Rs.2.26 crore in December. Murali said that with time, the scheme will spread to all corners of villages and its impact will increase in a year.
Hindustan Times, 10 January 2015
Info@suruchiconsultants.com

Food and Drugs Administration (FDA) action against more than 90 dairies and distributors in the past two months has helped in curbing adulteration of milk and reduced its excessive supply in Maharashtra. The dairy owners and operators involved in the production of skimmed milk powder (SMP) have been demanding subsidy for the conversion of milk to the powder on the backdrop of falling prices of SMP in the international market. Activists have been pointing out that many cooperatives earned profits when the prices were high in the international markets. To make up for the demand-supply gap locally, water was being added to milk while selling in local markets.
“The conversion of milk into SMP has decreased owing to the low market price and this has subsequently resulted in the excessive stock of the milk at 32 lakh litres a day. But at the same time, the one of the major reasons of the excessive supply is adulteration. About 20% of the milk in the market is adulterated,” said a top level officer from the FDA. Activists have demanded stringent action against adulteration. “The milk producing cooperatives have been complaining about the losses owing to the excessive milk but why are they indulging in the adulteration despite the excessive supply in the market? They add about 15% water to the milk and then other adulterants like urea, caustic soda and sugar. Since the dairy operators are more interested in SMP, the percentage of adulteration has been on the rise,” said Shree Naik, president of the Milk Distributors and Transporters Sangh.
FDA commissioner Purushottam Bhapkar admitted that there was rampant adulteration of milk. “Of the 609 samples collected during our raids on distributors and cooperatives in the past two months, 76 were found substandard, containing adulterants such as water. Nineteen of them had more serious adulterants such as sugar and palmo line oil. We have registered criminal cases against those involved in them,” he said.
* Total daily production of milk in the state - 1.48 crore
* Daily demand of milk – 1.16 crore
* Daily excessive milk – 32 lakh
Price high despite abundant supply
* The activists have raised question about high MRP of milk sold in pouches despite excessive production, reduction in the procurement price from Rs. 27 to Rs. 18 and significant decline in oil prices in last six months.
* FDA helpline for the complaint against adulteration – 1800 222 365
‘Intensify action against adulteration ’
Anand Gorad, president of Agri Dairy and Food Industry Forum, said, “The FDA should intensify action against the adulteration. Not only milk but the SMP sold at the international level proved to be sub-standard due to adulteration. Vinayak Patil, chairman, state cooperative dairy action committee, said, “I agree that adulteration takes place but it is not the only reason for the excessive milk supply and its conversion into the SMP. We have been
Info@suruchiconsultants.com

maintaining balance in conversion and supply of the milk in domestic market. The allegation about the adulteration in SMP and rejection at the international level is baseless.”
The new Indian express, 10 January 2015
BHUBANESWAR: Odisha’s first dairy start up Milk Mantra has tied up with State Bank of
India for facilitating easy loans to its network farmers as part of its ethical milk sourcing programme. An MoU was signed between the company and SBI at the bank’s main branch here on Friday. Milk Mantra has more than 30,000 network farmers and has been facilitating cattle loans, health services, artificial insemination services and cattle feed, for them. It has already disbursed loans worth around Rs.1.5 crore to its network farmers for cattle as well as allied needs to increase production and income.
Speaking on the occasion, SBI CGM Krishna Mohan Trivedi said, “The bank is hopeful of associating huge number of rural small and micro-level self-employed people through this agreement. “Founder and Managing Director Milk Mantra Srikumar Mishra said, “We feel proud that we are one of the few dairy companies in India that have provided extension services to our farmers. This has resulted in dairy development in the State. Our association with SBI will go a long way in ensuring Odisha’s unrealised potential in healthy dairying.”
The Hindu, 10 January 2015
The district-level dairy convention, organised by the Dairy Development Department, will be held at Vellimon on January 11 and 12.The event is being held in association with the dairy cooperative societies in the district, MILMA, Kerala Feeds, various local bodies and cooperative banks. The cattle show organised in connection with the convention will begin at the Vellimon Sree Mahadevar temple compound on the first day. The show will be inaugurated by vice president of the district panchayat K. Jagadamma. Kodikunnil Suresh MP will speak. The dairy development seminar, to be held in the morning on January 12, will be inaugurated by the Planning Board member C.P. John. The conference, in connection with the convention, will be inaugurated in the afternoon by Dairy Development Minister K.C.
Joseph.N.K. Premachandran MP will speak and M.A. Baby MLA will preside.
The Hindu, 10 January 2015
Info@suruchiconsultants.com

Officials of the Tamil Nadu Food Safety and Drug Administration Department have warned traders against selling adulterated milk to consumers. Based on complaints, a team led by
District Designated Officer K. Tamil Selvan inspected private food selling shops in
Sandaipettai Pudur and Periyapatti. The officials inspected whether water was mixed with milk or any other adulteration is done and sold to consumers. Also, health officials of the
Namakkal Municipality inspected road side eateries and told the sellers not to use banned chemicals or artificial colouring agents.
Times of India, 09 January 2015
NEW DELHI: His community — Rabaris, a livestock-dependent tribe traditionally-addresses him as "Bhopajj" or priest. He dresses up like a cow-herd himself: a long white cloth wrapped around his bare torso, red turban, dangling ear rings et al. With a lathi in tow, he walks into everywhere, even the chief minister's office in Rajasthan. Otaram Devasi, 48, happens to be the Rajasthan's minister in charge of cow affairs. As for himself, India's firstever minister for the 'divine' bovine likes to address himself as "gaupalan mantri". BJP and
Vasundhara Raje had promised a separate ministry for cows in its poll manifesto. And when the party came to power with Raje as CM in December 2013, she promptly announced a ministry for the protection of cows, which was later transformed to a "department" after the move struck a constitutional hurdle since states can't set up new ministries.
In October, 2014, Devasi was made minister of dairy and devasthan administration of temples that get government funds with the extra charge of the "gaupalan department". His responsibility also includes overseeing Rajasthan's Gau Seva Commission and Cow
Conservation Directorate. Three months into his tenure, Devasi says he is proud of what he has done with securing the future of cows in this desert state. And he believes he has set up a department for rest of India to emulate should any other state want to follow this 'Rajasthan
Model.
Devasi, who himself owns "20-25 cows", wants the canvas for cow protection to be bigger. "I have sought an appointment with Prime Minister Narendra Modi after the Union budget so that I can impress upon him on the urgent need to set up a cow ministry at the Centre,"
Devasi tells ET."I believe if cows have to be saved then every state in India must have separate ministries for cows," he says, insisting that he's not being just rhetorical. So what about buffalos, goats, even the state's official animal, camel? Devasi dismisses the question, almost chiding you for being naive.
"Cows have a spiritual importance unlike other livestock animals. They must be protected at any cost. I would request Modiji to ban cow slaughter and, if need be, introduce strong legislation for that," he says. For Rajasthan, there are three things high on his agenda: clamping down on rampant cattle smuggling, introduction of a helpline number on the lines of 108 ambulance services to help cattle in distress besides starting a one-of-its-kind
"sanctuary" for cows near Bikaner or Jaisalmer. By sanctuary, he mans a protected area full
Info@suruchiconsultants.com

of green grass not far from the desert so that the cows, especially those of the indigenous breed, can eat and live in peace. Another day, another time, the 6-feet-1 inch-tall Devasi would have stood even taller among the Sangh Parivar stars. Long before "ghar wapsi" or
Ram Mandir became fashionable causes for the typical Hindutva agitator, "gau raksha" was the first priority of the Sangh. In fact, the only open public intervention ever done by the most powerful Sarsangchalak of RSS ever, MS Golwalkar, was on "gau raksha".
Indian Express, 09 January 2015
The best thing about this business is that we get paid on the 1st and 16th of every month, say dairy farmers. (Source: Express Photo By Bhupendra Rana) The best thing about this business is that we get paid on the 1st and 16th of every month, say dairy farmers. (Source:
Express Photo By Bhupendra Rana)Written by Harish Damodaran | Palanpur(Gujarat) | At first sight, Kamyabpura is just one of the 17,000-odd village-level dairy societies constituting the Gujarat Cooperative Milk Marketing Federation’s (GCMMF/Amul) vast supply network.
With a difference. All the 73 farmer members of the society, contributing roughly 1,800 litres of milk daily, are “Momna”: Gujarati-speaking Muslims.
“We are from 30 families belonging to the Momin Shia sect,” says Imdad Hussain Parbadiya, secretary of the Kamyabpura Milk Producers’ Cooperative Society, which supplies to the
GCMMF-affiliated Banaskantha District Cooperative Milk Producers’ Union. In 2013-14
(April-March), this “exclusively” Momna society at Bhagal Pimpli village in Palanpur taluka of Banaskantha bought 5.67 lakh litres from its members and paid them a total of Rs 1.48 crore. “Our society was formed on October 1, 2009. Earlier, we were part of the Bhagal
Pimpli society,” says Parbadiya.
The original society, which procured over one crore litres and paid out Rs 2.72 crore last year, has members across communities: Choudhary Patel, Rajput, Thakor (OBC Kshatriya),
Prajapati (potter), Panchal (blacksmith), Mewada (carpenter), Rabari (pastoralists), Garasia
(Scheduled Tribe) as well as Muslim. “Out of our 250 members, 17 are Muslims,” says
Kanesh Kumar Prajapati, secretary, Bhagal Pimpli Milk Producers’ Cooperative Society.
So, why a separate “Muslim” milk cooperative within the same village? “The existing society was a little far from where we stay. Also, since we were pouring quite a lot of milk, it made sense to start our own society,” says Parbadiya.Haribhai M Patel, Manager (Dairy
Husbandry) at Banaskantha union, says the Kamyabpura society is very viable and well run.
“The proof is that they have fully repaid our loan,” says Patel.
Its success is also representative of a larger trend of organised dairying attracting people drawn from all communities in Gujarat. Out of the Banaskantha union’s 1,374 village societies, about 40 are now headed by Muslims. In 2011, the Kamyabpura society constructed own building costing Rs 18.5 lakh. Three-fourths of this was financed through a three-year loan at 9 per cent interest taken from the Banaskantha union.The Kamyabpura society has also invested in a 3,000-litre capacity bulk cooler that chills the milk collected from its
Info@suruchiconsultants.com

members to 4 degrees Celsius before it is dispatched to to the union’s dairy at Palanpur. The
Rs 7.18 lakh funding for the cooler was substantially covered by a Rs 5.22-crore subsidy under a Central government scheme for clean milk production. The biggest farmer-supplier to the Kamyabpura society is its president, Mohammadbhai Naseerbhai Parbadiya. He along with his wife, two sons and daughters-in-law each of whom is a member of the society — contributed 1.23 lakh litres in 2013-14, earning Rs 31 lakh. “Till a decade ago, we were growing regular crops on our small holdings (mustard, castor, wheat and bajra) or customhiring our tractors for ploughing and levelling others’ fields. There was hardly any income,” recalls Mohammadbhai. Today Mohammadbhai’s family has 48 cows, 17 calves and two buffaloes. Their entire 7.5-acre land is dedicated to cultivating fodder crops: hybrid napierbajra, maize (African Tall variety) and oats. “We are full-time dairy farmers. The best thing about this business is that we get paid on the 1st and 16th of every month.
Also, there is no need to go to the mandi; the dairy union buys all our milk from the society at an assured and steady price,” says Mohammadbhai. Among those attracted to dairying now are people such as Abdul Rashid Nazir, who supplies an average 300 litres per day to another village society, at Semodra in Palanpur taluka. Admitting that the work is not easy, involving investing a family’s entire labour and managerial resources, he says, “You can’t take leave because the animal produces milk all through the year.
But in the end, there is paseene ki kamai (reward for hard work).” Nazir, who has an electrical workshop at Vadgam now handled by his son, started his 55-cow dairy farm in
2010. Shersiya Ayub, from Tokariya village in Palanpur, is even newer: An “auto consultant” specialising in purchase and sale of second-hand jeeps, he has since mid-2013 been supplying
150 litres per day from his eight cows and 10 buffaloes to the Banaskantha union.
Business standard, 8 January 2015
Diversified conglomerate Dharampal Satyapal Group plans to set up a green field plant in
Assam for its dairy products as it aims to cross Rs 200 crore revenue in the segment in the next three years. Before this, the Group will start production in Guwahati within next 3-4 months from a leased facility. "We will set up a green field manufacturing facility in
Guwahati to cater to the North East market. We are looking for land at present," Dharampal
Satyapal Group (DS Group) Business Head (Dairy Division) Sunil Kumar Bansal told PTI here today. The Group has already procured the machineries for setting up the plant and is currently looking for 5-7 acres of land in and around Guwahati, he added.
"The capacity of the proposed plant will have an installed capacity of processing one lakh litres of milk every day. The total investment will be about Rs 30 crore for setting up the facility," Bansal said. Talking about the leased unit, he said the dairy division has already identified it and will start production with a capacity to process 100 tonnes of milk per month within next 3-4 months in the state capital. On its sales target, Bansal said: "We are looking to corner 10-15 per cent North East market of the tetra pack milk and dairy whitener. The
Info@suruchiconsultants.com

current market size of the region for these two products is estimated to be around Rs 2,500 crore." He said the division is expecting Rs 200 crore revenue in the next three years from
North East as against its target of Rs 20 crore in 2014-15. "Amul is the number one brand in
North East and there is no number two. We are targeting to be the number two brand," Bansal said. The Indian market for whitener is pegged to be about one lakh tonnes a year, of which
40,000 tonnes is consumed in North East, he said. The tetra pack milk segment in the region is estimated to around one lakh tonnes a year, he added. Bansal also said the entity will expand its retail outlet presence to 6,000 units within next three months from around 1,000 units at present. DS Group today expanded its product offering in the dairy segment in the region by launching its dairy whitener 'Ksheer' here.
The Economic Times, 08 January 2015
HYDERABAD: Weeks after targeting the Andhra Pradesh chief minister Chandrababu Naidu founded Heritage Foods with probe into alleged adulteration of milk, the Telangana government is now weighing options to rein in private dairies in a bid to regulating prices.
The Telangana Rashtra Samithi ( TRS) led government is currently looking into options to invoke provisions of the Essential Commodities Act to contain selling prices of milk and sought legal opinion, said a bureaucrat who did not want to be named.
The move assumes significance as most of the private dairy firms selling milk and milk products in the Telangana geography are owned by the entrepreneurs with roots in Andhra
Pradesh, including AP chief minister Naidu founded Heritage Foods. While Telangana agriculture minister Pocharam Srinivas Reddy said there was no move so far to regulate milk prices, the bureaucrat quoted above said, "A government order was already issued sometime back constituting district-level committees to control prices of commodities, including milk."
A Srinivas, managing director of AP Dairy Development Corporation Federation that sells milk and milk products under 'Vijaya' brand, said the Telangana chief secretary Rajiv Sharma has convened a meeting on January 19 to discuss price control measures. The move by the
Telangana government to rein in private dairy sector comes at a time when several global investors were investing in private dairy firms in India, the world's largest milk producer with nearly a sixth of global milk production. India's organised dairy sector is currently valued at around $10 billion and is set to grow at a compounded annual growth rate of 13-15% till
2019-20, according to a report by Rabobank.
D Sunil Reddy, managing director of Dodla Dairy, said, "The dairy sector in India is no longer controlled by the local players and now has many global players having major interests. Any move to regulate the sector will be negative given the large global private investments into the sector. "Minister Srinivas Reddy said the Telangana government was only keen on strengthening the cooperative sector and accordingly decided to pay an incentive of Rs 4 a litre to those farmers supplying milk to the state-owned cooperatives. The
Info@suruchiconsultants.com

move comes weeks after the government's announcement to strengthen the dairy cooperatives through free power and supply of at least one crore buffaloes to farmers, apart from setting up a mega dairy involving Rs 240 crore of investment. In a bid to stay competitive, the private dairy players have also increased procurement prices over the last few weeks, matching the prices of cooperatives at the farm level. "Though the government-backed milk cooperatives have the advantage in terms of incentive support from the state government in milk procurement, the retail vendors still prefer selling milk of private dairies owing to attractive commissions being offered by the latter given their efficiencies and cost advantages," said a top executive of a private dairy. While Heritage Foods management could not be accessed for its comments on Telangana government's move to rein in private sector, a chief executive of private dairy with MNC investments said, "We have to wait and see if such a move will stand the scrutiny of law and whether the state government-backed cooperatives can address the demand of entire Telangana state if private firms are crippled. Milk was a monopoly of cooperative sector in India till the government initiated economic reforms in 1990s and encouraged private sector investments including global investors. Any reverse regulatory move that could affect the interests of private investors now will send wrong signals to the global investor community."
Hyderabad currently has a demand of some 25 lakh litres a day of fresh milk, which cannot be solely met by the state backed milk cooperatives at a time when the processing capacities, cold storages and distribution systems are largely controlled by the private players, he said.
While the state-backed milk cooperatives control some 25% of the market in Telangana, the private dairies cater to the balance market with Heritage Foods enjoying little over 10% of market share. Referring to the higher support prices to milk farmers being offered by the
Telangana government, a senior executive of another private dairy said, "As such Telangana does not produce the quantum of milk to meet the demand. If needed, the private players can procure milk from neighbouring states at lower prices and sell them in Telangana at higher prices to benefit."
Fnb news.com, 08 January 2015
An Australian agri delegation, comprising 25 members, would be visiting New Delhi for a four-day dairy conference commencing on January 12, 2015. They will discuss how Australia can assist India in the development of its dairy sector by enhancing productivity, efficiency and milk yield. The delegation would comprise organisations specialising in dairy cattle breeds and genetics, fodder grass and animal nutrition, vet in dairy farming, research and development (R&D) in milk products, dairy farm consultancy and information technology-
(IT) enabled services.
They would train Indian dairy companies on the Australian best practices in dairy and explore collaborations and technology partnerships between the two countries. It would be attended by Dr A K Srivastava, director and vice-chancellor, National Dairy Research Institute
(NDRI), Karnal. Senator Richard Colbeck, parliamentary secretary for agriculture, and Mark
Info@suruchiconsultants.com

Morley, senior trade commissioner, Australian Trade Commission, would represent the
Australian government. Patrick Vizzone, regional head, Food and Agribusiness Asia,
National Australia Bank, would also attend the event.
The Hindu, 08 January 2015
India’s first packaging park – a cluster of industries specialising in making wide variety of packaging material for user units – is likely to be located in Visakhapatnam. Senior officials from the State government, including Collector N. Yuvaraj, APIIC Chairman P. Krishnaiah and MP K. Hari babu, have expressed their willingness to allot land for the park.
Indian Institute of Packaging, autonomous institute specialising in packaging technology, training, testing and research and development under the Ministry of Commerce and Industry has already submitted a report on its assessment of the situation to the Centre after its
Chairman R.V.S. Ramakrishna and Director N.C. Saha visited the city last month. Dr. Saha told The Hindu on Monday that 50 to 100 acres was required to establish a packaging park for which they were ready to start their campus in the city to ensure quality checks and training. The APIIC officials offered 10 acres at Gambheeram, close to the land earmarked for Indian Institute of Management, for IIP campus.
Though there are 10,000 industries of various sizes dealing with various products, the city has just 50 packaging material-making units. Most of the industries in Jawaharlal Nehru Pharma
City and Brandix India Apparel City are either sourcing their packing material from Mumbai,
Kolkata or Hyderabad. Some of their requirement is met from Japan and Sri Lanka. Dr. Saha said Visakha Dairy, which produces milk and various dairy products itself had the need for packaging material worth Rs.70 crore to Rs.80 crore to increase shelf life. Some of its requirement is being sourced from Bhutan.
Seafood exporters in the city were dependent entirely on outside suppliers to meet their requirement, he said. Dr. Saha said they had invited APIIC to take part in sixth international packaging exhibition – INDIAPACK-2015 slated for October 8 to 11 in Mumbai to showcase the investment potential in packaging units in Visakhapatnam.
The Hindu, 08 January 2015
Surplus production of Aavin milk has resulted in an increased production of its value-added products too. Dairy products of Aavin, especially ghee, saw an upsurge in production. Six and half tonnes of ghee was produced and sold last month here. The upcoming Pongal
Info@suruchiconsultants.com

festival would certainly create a greater demand for ghee and a sale of ten tonnes could be achieved ahead of the harvest festival, reliable sources from Aavin, Tirunelveli told The
Hindu on Tuesday.
Prior to the drop in milk production before September last year, ghee was procured from
Salem and Erode to meet the consumer demand in Tuticorin and Tirunelveli districts. But, the lush growth of cattle fodder following bountiful rains during the Northeast monsoon in these districts improved the milk yield, considerably. Besides, production of sweets including mysurpa, milk cake and milk peda also saw an upward trend. Production crossed one tonne against its average of 70 to 80 kilograms. The remaining surplus milk would be converted into skimmed milk powder and butter. After a dip in production during the last quarter of
2014 that led to the fall of sales, Aavin is regaining its market share.
Milk production has increased considerably in the flush season. So there is a rise in milk procurement to 66,000 litres in recent days from 38,000 litres during October last.
Subsequently, sale has also picked up. About 38,000 litres of milk was sold every day in
Tuticorin and Tirunelveli districts until the first week of November, while there was a boost in sales to 41,800 litres a day in January. However, officials were confident of the sale crossing 44,000 litres after Pongal. Aavin’s milk procurement across the State swelled up to
26 lakh litres in December from 19 lakh litres in November. To upgrade Aavin’s milk processing plant, a proposal for Rs.1.5 crore had been forwarded to the government under
NADP scheme for 2015-16, sources added. Some Aavin milk vending agents here said acute scarcity of milk during September, October and November and price hike affected by the
State government created a slump in Aavin’s retail sales which normally stood at 47,000 to
48,000 litres daily in these two neighbouring districts.
Digital Journal, 08 January 2015
The India Dairy Industry is witnessing a high growth with rise in milk production and increased demand for dairy products across country, says RNCOS in its latest research report.
Noida, UP -- (Release Wire) -- 01/07/2015 -- The India dairy market has witnessed a strong growth in production as well as consumption patterns, in the recent years. The increasing penetration of foreign players and product developments by the existing dairy companies is leading to reformation of Indian dairy industry. With increasing production of milk and elevating demand for dairy products, both traditional and value-added, is set to raise country's sector to a new height. Hence, it is anticipated that the Indian dairy market will grow at a high
CAGR of over 10% during 2014-2018.
Research Analysis & Highlights
The report "Indian Dairy Industry Outlook 2020", by RNCOS spread around 95 pages provides an in-depth research and rational analysis of the current status and future growth prospects of the Indian dairy market. Our research includes profound study of Indian dairy
Info@suruchiconsultants.com

industry with forecast provided for milk production and the demand for Milk. The report covers Indian dairy market and various primary dairy products like Liquid Milk, Curd,
Butter, Ghee, etc., for which market forecast have been provided till 2018. The report also covers analysis of various dairy products exports & imports in the country for the last five years, in order to present country's performance on a global platform.
In India, there are various laws and regulations which overlook the food and related commodities; hence report also contains sections on government regulations and Government initiatives. Additionally, report provides the key primary insights of the Indian dairy sector through sections on industry challenges and opportunities. Report throws light upon the
Industry trends & drivers which are expected to transform the face of Indian dairy sector in the coming years. Finally, competitive landscape section provides the business overview, financials, strength & weakness, and recent development of major dairy federations and private players.
Some of the report's key highlights include:
- Indian Dairy Market Generating Highest Revenues from Fluid Milk
- Value Added Products Attaining Stupendous Growth
- Government Initiatives to Boost Milk Production
About RNCOS
RNCOS is a leading industry research and consultancy firm incorporated in 2002. As a pioneer in syndicate market research, our vision is to be a global leader in the industry research space by providing research reports and actionable insights to companies across a range of industries such as Healthcare, IT and Telecom and Retail etc. We offer comprehensive industry research studies, bespoke research and consultancy services to
Fortune 1000, Trade associations, and Government agencies worldwide.
The Hindu, 07 January 2015
B. Ashok, Vice Chancellor, Kerala Veterinary and Animal Sciences University (KVASU), has said that technology interventions are the need of the hour to maximise profit in dairy farming sector. Speaking after inaugurating a two-day training programme on ‘Sustainable
Dairy Production,’ as part of the Global Innovation initiative of the KVASU, at its headquarters at Pookode here on Monday, Dr. Ashok said the KVASU would collaborate with Malabar Regional Co-operative Milk Producers Union (MRCMPU) to provide veterinary and entrepreneurship services to dairy farmers in the region.
The KVASU would provide quality mineral mixtures to dairy co-operative societies. In order to maximise profit, dairy farmers should seriously think of value addition in dairying, he said.
Dr. Ashok said sustainable livestock farming aimed at producing livestock taking into
Info@suruchiconsultants.com

account economic, social and environmental issues as well as global food safety and food security concerns. A global farm platform constituted for the purpose would address these major issues, Dr. Ashok said adding that KVASU, University of Bristol in the U.K.,
Wisconsin and Kansas Universities in the U.S., and Zhejiang University in China were the other partners of the platform. The two-day programme is organised jointly by the KVASU,
MRCMPU and the British Council.
Drinks-business-review, 06 January 2015
India’s Amul dairy brand maker Gujarat Cooperative Milk Marketing Federation (GCMMF) has announced plans to invest around INR50bn ($786.8m) to ramp up its production capabilities. The move is anticipated to increase the company's capabilities by more than a third over the next three years, reports The Economic Times.
GCMMF's expansion plans come in response to the increasing consumer demand for its products in the local and global markets. The company is also launching pouch milk in
Hyderabad, in the state of Telangana.
GCMMF managing director R.S. Sodhi was quoted as saying by The Deccan Chronicle: "We have identified Hyderabad as an opportune market for our fresh product offerings. We would be selling pouch milk and packed dahi to the consumers who are brand conscious and are willing to associate themselves with the strong brand name of Amul.
"We would be offering our best quality fresh products at affordable prices to consumers.
Amul is looking to garner a 20 per cent share of the Hyderabad milk market. "GCMMF will establish around nine plants across the country, while expanding existing facilities in and around Gujarat. It currently operates over 50 dairy plants and has a capacity to process around 23 million liters of milk every day.
The dairy site, 06 January 2015
INDIA – Buffalo meat exports from India are tipped to rise in the coming years as the sector booms as a by-product of expanding dairy production. Indian carabeef (buffalo meat) exports will reach 2.2 million tonnes carcase weight equivalent for 2020, expects a team of Australian researchers. However, little impact will be felt on a world scale other than a slight price downturn, with beef markets deemed “sufficiently flexible” to allocate product elsewhere.
A Meat and Livestock Australia (MLA) analysis was commissioned to look into India’s buffalo production and its impact on world beef markets over the next five years. The study concluded that three years of growth in carabeef exports would continue as long as 80 per cent of the country remained Hindu, leaving slaughter animals for export.
Info@suruchiconsultants.com

Other factors were continued custom in China, Malaysia, Viet Nam and Saudi Arabia, where carabeef traders have gained a “strong foothold”. Higher Muslim and Christian carabeef consumption is expected to underpin higher domestic consumption, rising to around 14 kilos per capita among this demographic by 2020, which will account for 900,000 tonnes.
However, analysts state India is “unlikely” to supply traditional Australian markets within the short to medium term.
Business wire, 06 January 2015
India is the world's largest milk producer, accounting for around 17% of the global milk production. It is also one of the largest producers and consumers of dairy products. Due to their rich nutritional qualities, dairy products' consumption has been growing exponentially in the country, and considering various facts and figures, our study anticipates that milk production in India will further grow at a CAGR of around 5% between 2013-14 and 2020-
21.
A lot many initiatives have been undertaken and implemented by India government for increasing clean milk production, dairy development, cattle breeding and feed fodder management. These initiatives are primarily run by the Department of Animal Husbandry,
NDDB, and other government affiliated institutions. The main objective of these initiatives is to manage the dairy industry's resources in such a manner that it would enhance milk production and upgrade milk processing technologies.
The Indian dairy industry significantly offers good opportunities for both domestic and foreign conglomerates/investors for entry and expansion. Foreign companies like Danne and
Fonterra have set foot in the Indian Dairy Industry while ITC has plans to foray into this segment in a couple of months. The report covers analysis of the primary dairy market and markets of its sub segments like Liquid Milk, Yoghurt, Butter, Ghee, Paneer, Cheese and
Cream; and EXIM data of major dairy commodities extracted through intensive primary research and detailed secondary analysis. Moreover, the emerging trends & drivers; challenges; and opportunities have been described in-depth in the report.
Key Topics Covered:
1. Analyst View
2. Research Methodology
3. Dairy Industry Overview: Vision 2020
4. Market Drivers and Trends
5. Government Purview
Info@suruchiconsultants.com

6. Industry Challenges
7. Capturing the Opportunities: The Way Ahead
8. Competitive Assessment
- Britannia Industries Limited
- CavinKare
- Groupe Danone
- Gujarat Cooperative Milk Marketing Federation - Amul
- Hatsun Agro Product Limited
- Karnataka Milk Federation - Nandini
- National Dairy Development Board - Mother Dairy
- Nestle India Limited
- Pradeshik Cooperative Dairy Federation - Parag
- The Bihar State Milk Co-Operative Federation – Sudha
The cattle site, 06 January 2015
INDIA - One of the world's leading dairies is close to shipping Indian dairy foods to Russia.
Gujarat Cooperative Milk Marketing Federation (GCMMF), makers of Amul brand dairy products, has said that exports will commence when necessary regulatory approvals are received. The approvals are expected to be through in the next two to three months, GCMMF managing director, R S Sodhi said to reporters recently.
Successful Russian inspections have met official approval but regulatory issues remain before trade starts, stated Mr Sodhi. The cooperatives revenues during 2014-15 financial year may cross $3.5 billion, as compared to $2.85 billion earned during 2013-14 fiscal year, he added.
Investments in expanding capacity would reach $630 million to 790 million in the next three years, he added. Recently, GCMMF had said it is in discussion with Galactika Group to export dairy products to Russia. Amul would become the first Indian dairy to enter the
Russian market, which is to be a lucrative market for Indian dairy, according to Amul. Russia presents huge potential for Indian exports as 30 percent of that country's dairy requirements are imported, concluded Mr Sodhi.
Info@suruchiconsultants.com

Mydigitalfc.com, 05 January 2015
Entrepreneurs Ram and Prakash Kutwal are an unusual pair of siblings. Starting from scratch, the duo plunged into the dairy business to become first generation businessmen by a process of trial and error. Kutwal Foods, the company they founded in 2002, is all about seizing a business opportunity and making money, but more importantly creating hundreds of jobs in the villages and sharing wealth and empowering simple rural folks.
Today the Pune-based company manufactures and sells processed milk, milk products, soft drinks, fruit juices and packaged drinking water to a multinational giant. The company is now well on course to touch Rs 100 crore over the next two years. Not a small achievement when you read about their journey of 12 years. Ram and Prakash worked for a dairy in Maharashtra for 10 years and as they learnt the trick of the trade on the job, they smelled a business opportunity unfolding before their eyes like a scene straight from a Bollywood potboiler.
They quit the secure job and invested all their savings of Rs 60 lakh and borrowed an additional Rs 1 crore from a bank and started their own dairy in Andhalgao village in Shirur
Taluka, near Pune. “Our plant processed 20,000 litres of milk per day with a full-time staff of
40 and grossed Rs 54 lakh sales turnover in the first year,” Ram beams with pride. Today the plant processes over 1,00,000 litres of milk bought from the neighbouring farms and villages.
The company has created 350 permanent jobs to provide livelihood to as many households.
The first few products that the company offered were liquid milk, variants of flavoured milk, packaged drinking water and soft drinks. Products like ghee, shreekhand and other milk by products soon followed suit.
The New Zealand Herald, 05 January 2015
New Year holds jitters for farmers after halving of global dairy price. Dairy farmers and the
Treasury will be looking to 2015 and beyond with some trepidation after a 52 per cent decline in whole milk powder prices over the past 12 months. For the average Fonterra dairy farmer, the current $4.70/kg farmgate milk price forecast will not cover the cost of production this season, economists estimate. Compared with last year's record farmgate milk price of $8.40, the current year's forecast will represent a $6.1 billion fall in farm income, or 2.7 per cent of
GDP.
The Treasury, in last month's fiscal update, said its forecasts were based on a 25 per cent recovery in dairy prices taking place in 2016.Going on the results of the last international dairy auction for 2014, which showed only a modest improvement in prices, the market has a way to go before Fonterra's and the Treasury's forecasts become a reality. Or, as ANZ put it,
"a long road lies ahead and a nervous wait ensues for dairy farmers".
The popular wisdom in the sector is that farmers can handle one year of poor prices, but not two. Rabo bank, in its latest quarterly dairy report, said the $4.70/kg milk price would result in many New Zealand dairy farmers operating at a cash loss for the year. "However, most are
Info@suruchiconsultants.com

starting from a solid starting financial position and have been minimising expenditure wherever possible," the rural lending specialist said in commentary.
Rabo bank said the cash flow crunch would arrive in mid-2015 when retrospective milk payments would be minimal and new expenditure would be required for the 2015/16 new season. However, financiers were likely to support working capital requirements through that period, it said. Bank of New Zealand economist Doug Steel expects a $4.70/kg farmgate milk price this year, rising to $5.70/kg in 2015/16.
He said $4.70 was not as bad as it looked, because farmers are still receiving "retro" payments from last year's record season. "But if it were to stay down at the mid-$4s or lower, those retro payments would run out and it would get significantly tighter for farmers," he said. Steel said that despite dairy going through a rough patch, the big picture story - rising demand for dairy products from the world's emerging economies as they progressed up the protein chain - remained positive.
For the moment, however, the market remains depressed. Whole milk powder prices - the most important product for New Zealand producers - last traded at US$2232 a tonne, well below their US$3500 a tonne long-run average .ANZ estimates that prices would need to reach US$3800 a tonne by next August for Fonterra to deliver on its $4.70/kg forecast.
Higher production, here and in many other dairy exporting countries around the world, has disturbed the supply/demand balance, putting downward pressure on prices at a time of subdued demand from the world's biggest dairy importer - China. In the season to date, production in New Zealand has been running 3.9 per cent ahead of last year, but Fonterra expects lower prices to act as a disincentive for production from here on. This season, it expects production to come at 1.6 billion kg - about the same as 2013/14.
Production has been strong in many other countries. In the United States, low feed prices have made milk production far more viable. In parts of Europe,countries are increasing production in advance of quotas coming off next year and as Russia's ban on western food products mostly dairy continues to destabilise the market. Compared with the last quarter of
2013, whole milk powder was the worst performer in 2014, dropping by 51.8 per cent, according to Global Dairy Trade data. Skim milk powder wasn't much better, dropping by
47.5 per cent. Over the same periods, butter milk powder prices fell by 45 per cent, cheddar by 34.2 per cent, butter by 28.3 per cent and anhydrous milk fat by 33.1 per cent.
While international dairy markets continue to suffer from low prices, the rate of decline has slowed and low prices have helped clear big volumes of product. Rabo bank believes that, while there are signs of price stabilisation, a recovery may take some time. China has continued to buy far less than this time last year - with incoming shipments down almost 50 per cent in October year on year as it continues to work its way through excess inventory,
Rabo bank said.
Meanwhile, Russia's ban on imports from key suppliers has meant that globally prices have had to fall by 30-50 per cent from their peak, to encourage buying from second- and third-tier importers, such as Southeast Asia, the Middle East and North Africa, to clear the market.
Info@suruchiconsultants.com

Low prices, compounded in the EU by the risk of super levy payments - fines for overproduction in the final months of the quota system - should see producers in many export regions hit the brakes in the first half of 2015.
BNZ's Steel said conditions were improving. Dairy exports in the United States are starting to track below year-ago levels and a stronger US dollar will tighten conditions on the world market. "Low prices will have an impact on supply at some point, and there are signs of that happening already," he said. "Strong volume growth coming through is likely to keep prices soft compared with historical averages, but I think we are starting to see signs of improvement ahead. It's just a question of when."
The Hindu Business line, 04 January 2015
VISAKHAPATNAM, JANUARY 4: Some of the labour laws in the country are really obsolete, dating back to the pre-Independence era, and need to be changed forthwith in tune with the times, according to GBS Prasad, Director (Personnel) of the Visakhapatnam steel plant. He was speaking at the inaugural session of a one-day seminar on labour laws and best
HR practices here by the Vizag HR Managers’ Association.
Significance of HR-He said many of the laws needed a re-look and benchmarking was of utmost importance in introduction of best HR practices. He laid stress on the importance of
HR function in many organisations. He spoke about the HR practices in the steel plant.
Visakha Dairy chairman A Tulasi Rao, the chief guest, said that to him, HR meant “keeping in mind the welfare of my workers and my farmers all the time before taking any decision relating to the dairy” and he followed the principle in the right earnest. He attributed “the remarkable growth of Visakha Dairy as one of the best co-operatives in the State and country” due to his HR practices. He narrated the steps taken by the dairy such as building of a modern hospital for the dairy workers and farmers and construction of bridges and reservoirs.
‘Embrace IT’
He said local solutions should be found to local problems and there was no need to get bogged down in high-sounding theory and rhetoric. “Nowadays there is talk of converting
Andhra Pradesh into another Singapore. I find it impractical,” he said. MVS Murthy, HR specialist from the Future Group, said the archaic labour laws should be changed and HR specialists should embrace IT in a big way. “IT is not a fancy tool. It has great relevance to the field,” he added.
Business Standard, 04 January 2015
Charging a milk society with supplying adulterated milk to Aavin by mixing water, a group of milk producers of 12 villages today detained a van near Sulur on the outskirts of the city.
Info@suruchiconsultants.com

Based on information that the society, which procures 5,000 litres of milk, was adding 20 litres of milk in a 40 litre can, the producers of Selakarichal and nearby villagers blocked the vehicle, carrying milk to Aavin, police said. Police rushed to the spot and pacified the milk producers, who sought immediate action against the society. Police said they had also informed Aavin authorities about the charge.
The Hindu business line, 03 January 2015
Amul Pouch Milk is going to foray into the Hyderabad market soon, with its producer, the
Gujarat Cooperation Milk Marketing Federation (GCMMF), announcing the launch of its operations in the city, here on Friday. This will be the brand’s entry into South Indian markets too. Three products, Amul Taaza toned milk, Amul Gold full cream milk, and Amul
Slim-n-Trim double toned milk will be made available in pouches, across retail outlets within the city, informed the Managing Director of the Federation R.S. Sodhi while addressing the media and distributors at the launch event.
Tie-up with Nalgonda milk producers, the leading producer of North India will bank on the supply chain inefficiencies of the existing 15-16 brands, besides the quality of its own products and competitive pricing, Mr. Sodhi said. Target-The target is to capture at least 25 per cent of the market in two years. Towards this, the federation has tied up with the
Nalgonda Cooperative Milk Producers Union which has processing capacities for three lakh litres of milk per day. Amul toned milk is priced at Rs.38 per litre, full cream milk at Rs.50 per litre, and double toned milk at Rs.10 per 300 ml pouch.
Middlemen to be ruled out-The prices are way below those of the existing brands, Mr. Sodhi said, and observed that the most expensive milk in the whole country is being sold in
Hyderabad. Amul will strengthen its supply chain by ruling out middlemen, and having only distribution agents and retailers. Further, measures will be taken to see that the consumers get the milk within 100 metres limit.
Steady growth-Tracing the history of Amul’s expansion, Mr. Sodhi said though existing as a brand in Gujarat since 1946, Amul first forayed outside in Delhi against a well-entrenched brand ‘Mother Dairy’. Banking on the lacunae of the monopoly, it became No.1 in five years,
Mr. Sodhi said. Since then, the brand has established itself in Delhi & NCR, Uttarakhand,
Uttar Pradesh, West Bengal, Maharashtra, Madhya Pradesh, Rajasthan, Chhattisgarh,
Jharkhand and Goa.
Before its news, 03 January 2015
Info@suruchiconsultants.com

The India dairy market has witnessed a strong growth in production as well as consumption patterns, in the recent years. The increasing penetration of foreign players and product developments by the existing dairy companies is leading to reformation of Indian dairy industry. With increasing production of milk and elevating demand for dairy products, both traditional and value-added, is set to raise country’s sector to a new height. Hence, it is anticipated that the Indian dairy market will grow at a high CAGR of over 10% during 2014-
2018.
Research Analysis & Highlights
The report “Indian Dairy Industry Outlook 2020”, by RNCOS spread around 95 pages provides an in-depth research and rational analysis of the current status and future growth prospects of the Indian dairy market. Our research includes profound study of Indian dairy industry with forecast provided for milk production and the demand for Milk. The report covers Indian dairy market and various primary dairy products like Liquid Milk, Curd,
Butter, Ghee, etc., for which market forecast have been provided till 2018. The report also covers analysis of various dairy products exports & imports in the country for the last five years, in order to present country’s performance on a global platform. In India, there are various laws and regulations which overlook the food and related commodities; hence report also contains sections on government regulations and Government initiatives. Additionally, report provides the key primary insights of the Indian dairy sector through sections on industry challenges and opportunities. Report throws light upon the Industry trends & drivers which are expected to transform the face of Indian dairy sector in the coming years. Finally, competitive landscape section provides the business overview, financials, strength & weakness, and recent development of major dairy federations and private players.
Some of the report’s key highlights include:
- Indian Dairy Market Generating Highest Revenues from Fluid Milk
- Value Added Products Attaining Stupendous Growth
- Government Initiatives to Boost Milk Production
ABOUT RNCOS
RNCOS is a leading industry research and consultancy firm incorporated in 2002. As a pioneer in syndicate market research, our vision is to be a global leader in the industry research space by providing research reports and actionable insights to companies across a range of industries such as Healthcare, IT and Telecom and Retail etc. We offer comprehensive industry research studies, bespoke research and consultancy services to
Fortune 1000, Trade associations, and Government agencies worldwide.
The economic times, 03 January 2015
Info@suruchiconsultants.com

HYDERABAD: The Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets the popular Amul brand of milk and dairy products, has drawn up a plan to invest at least Rs 5,000 crore to expand production capacities by more than a third over the next 2­3 years. The dairy giant, growing at around 24% annually, expects to maintain the growth rate on the expanded capacities as well to cross Rs 50,000 crore sales by 2020 from Rs 22,000 crore this year, said managing director RS Sodhi. Sodhi, who was in Hyderabad on Friday to launch Amul milk, said the decision to augment capacities was aimed at meeting the growing demand for its products, both in the domestic and global markets. The cooperative, which currently makes some Rs 540 crore of revenue from exporting milk products to more than 80 countries, is waiting for Russia to open up its market for Indian dairy products over the next few months.
The world's fastest growing dairy organisation, currently ranking 15th among globally, will increase capacity to 320 lakh litres a day from around 230 lakh litres now. The demand for milk and milk products in India, the world's largest milk market with 140 million tonnes, is currently growing at healthy double digits, Sodhi said. Amul would not only expand existing facilities in and around Gujarat but also set up 8­9 new plants across the country, he said. It currently has more than 50 dairy plants and earns about 45% of its income by selling
105 lakh litres of fresh milk each day.
Fnb news.com, Saturday, 03 January 2015
India, the world’s largest milk producer, has been making its profound presence in the global arena with its quality and hygienic milk and dairy products. With 17% share of global milk production, Indian dairy industry is undergoing transformational change.
India’s fastest growing, top ranked cooperative model
White Revolution in India, led by late Verghese Kurien, man behind Amul (GCMMF), kick started the nation’s journey in securing food and security’s critical domain: milk and dairy products. Dairy farmers across the country, playing vital role in reducing hunger and poverty, have set standards of excellence that the entire world aspires to emulate. A constant growth in milk production as well as in per capita milk availability has been witnessed post the White
Revolution. In 2012-13, the figures stood at 132 million tonne as compared to 51.4 million tonne of milk production in 1990[ Source: NDDB – National Dairy Development Board].
The total bovine population is 299.9 million numbers in 2012, which is the world’s biggest bovine livestock in the world. Going the traditional way, dairy players have been engaged in the liquid milk processing activity. Buffalo milk as well as cow milk have primarily dominated Indian consumer households over a decade. However, with rising consumption, evolving tastes and preferences, and higher affordability value-added dairy products
(VADPs) namely, butter, curd, cheese, paneer, ghee, and ice creams have emerged strongly, thereby enhancing overall animal protein consumption through dairy products as well as meat
Info@suruchiconsultants.com

products. Milk derivatives like buttermilk, low fat yoghurt and flavoured milk have found their way into health-conscious Indian domiciliary.
With India’s population touching 170 crore in the next five decades [2 Source: ‘Amul
Cooperative Model Critical for India’s Food Security’ Acknowledges Union Minister of
Food Processing Industries, The Telegraph, September 29 2014] and level of urbanisation rapidly increasing, the emphasis is on sustainable production. In India, dairying is predominantly unorganised and the sector is dependent on rural households for supplies; over
70 million of 147 million households in India depend on dairy for their livelihood. They have been largely left to their devices and they continue to milk animals that produce around 3 litre a day. Also, the Indian dairy sector is highly fragmented, with organised players having only about 18% of the market, which contributes to the disarray at the farmer's end (source).
Cooperatives are the central players in the formal dairy sector.
A well-structured framework and robust policy implementation is the need of the hour to overcome following hurdles:? Climate change and tightening of natural resource constraints: water and soil footprint? Reducing cultivable land for green fodder due to unplanned urbanisation resulting into current deficit of 63% green fodder [Source: Fnb
News.com]?Underserved compound feed market ?Prevalent gap in production of medicines and vaccines for animal husbandry ?High population of underfed and mismanaged animals
(scattered cows and buffaloes) resulting into low average yield of the animal ?Existing unorganised middle men network making formal milk collection unavailable for local farmers. The French dairy sector: efficient and unequalled skills Dynamic, sustainable and internationally competitive French dairy sector positions France as the European and world leader in dairy PDO products (PDO=protected designation of origin, a quality label regulated by the European Union).
Known for offering the world a broad spectrum of a unique range of extensive dairy products, including 1,200 varieties of cheeses, unrivalled diversity of cream, butter, yoghurts, and milkbased desserts, France drives its dairy industry by on-going innovation and research. Big
French groups namely, Lactalis, Sodiaal, Bel, Danone and Bongrain are ranked in the Top 25 dairy groups in the world. The dairy industry accounts for 1/5 of the total agribusiness sector in France, i.e. equivalent to the French aeronautic construction sector.
Milk is being produced all over France. Some 350,000 litre of milk per farm per year is produced on an average. Some 40% of the milk is exported around the world, approximately
10 billion litre, in the form of a very wide range of dairy products[ Source : Le Made in
France laitier, Dairy products Made in France, CNIEL, Maison du Lait, 2013]. This high-rate and premium quality production can be explained by two factors: the improvements done in genetics to increase the productivity of milk production and the systematic control of cattle feeding.
Exemplary control of quality and food safety makes for the faultless management of the safety chain. Commencing from the farm, continuing in the factories, storage, till the end-
Info@suruchiconsultants.com

user, the control of the food safety in the French milk industry is well governed. Strict regulations, regular inspections by veterinary services of the state enhanced by numerous voluntary measures taken by farmers and industrial operators further ensure super quality of the milk[ Source : Key figures, 50 facts about French dairy industry, lamaisondulait.com ].
The temperate climate and favourable rainfall provide an appropriate environment for the meadows and fodder crops, an essential for sustainable livestock breeding. More than 20% of the country’s surface area has been allocated as meadowland, allowing the French cows to spend more than six months a year in the meadow, thereby making fresh grass of the pastures as the primary feed. Additionally, more than 80% of the cows feed consists of fodder and cereals which are being cultivated and harvested on the farm further enhancing traceability[
Source : Le Made in France laitier, Dairy products Made in France, CNIEL, Maison du Lait,
2013].
Moreover, French farmers, the primary guarantors of the milk quality adhere to cattle breeding practices drawn in 1999 in the national charter of good cattle breeding practices.
This certifies proper management of the herd, good and strict hygiene practice, animal health and welfare and respect for the environment. All these exercises along with the policy of the industry favouring diversity and quality have ensured the preservation of different breeds of cattle, ancestral methods of production and a successful transition to modernity. Coming together of the two nations
France and India are now coming together through bilateral partnerships.
Although there has been a slow shift toward the organised segment with farmers preferring organised channels due to increasing demand of VADPs and higher price realisation; still the challenges of sourcing, logistics, low productivity and yield are prevalent. The increasing participation from the private sector and foreign entrants into milk derivatives business has further accelerated India’s dairy market by enabling it to attain greater scales.
The recent entry of French player Le Groupe Lactalis SA in Chennai, India, acquiring
Tirumala Milk Products Pvt. Ltd in January 2014 has reinstated the presence of international players in the development of Indian dairy space. “Lactalis, in their Indian venture, would primarily focus on encouraging farmers to link with Lactalis procurement system by ensuring transparent and direct dealing with farmers and by supporting them to improve milk quality.
Another focus would be to enhance industrial efficiency and develop innovative milk products suited for Indian population,” said Rahul Kumar, CEO, Tirumala Milk Products (P)
Ltd.
Dairy products packaging in India is also a segment that is considered by French companies in the context of an extensive production. Speaking about yoghurt packaging, CEDAP
(European Company of Plastic Applications) export manager Mario Chiodi said: “Companies look for a packaging approach assuring hygiene, lower cost and high marketing impact. The
Form Fill Seal Technology (FFS), used wherever there is a standardised production, allows using low quantity of plastic material, in an ultraclean environment to prevent all possible microbiological contaminations that may reduce the shelf life or deteriorate the quality or the
Info@suruchiconsultants.com

taste of the dairy product. Cups can then have paper pre-printed label giving the best marketing possibilities.”
Crossing bovine breeds to increase cows productivity sounds as well as a challenge for the coming years for the Indian milk industry. “As far as I have been involved in promoting
French bovine genetics during my trips to India, I have noticed growing interest in high quality products and technical support. Two French bovine breeds, Holstein and
Montbeliarde, seem to me perfectly adapted to fit the need for productive and resistant cows.
Montbeliarde breed is strong enough to succeed everywhere with good fertility, dairy potential and feed efficiency,” said Hélène Dubarle, export manager, Jura Betail. “But genetics is nothing without a technical support which helps farmers achieve their goals and use the benefits of the breed as management and feeding are important in the success of cross breeding, ”she added. Bilateral partnerships like these and interest of many more international giants of dairy industry of the world, in India, highlight the possibilities of well-structured growth of the world’s largest milk producer. Tier 1 cities are showing higher growth promising markets. There has been a significant increase in procurement of milk from farmers by the private sector.
Emergence of commercial dairy farmers association launching farm branded milk products in
India has been observed. Despite all this, there is a need for Indian milk industry to get inspiration from the French export focussed industry to avoid the struggle to maintain 100% self-sufficiency due to mounting local demand; it has been anticipated that by 2030, the demand for milk will reach 160 to 170 million tonne[ Source : Fnb News.com ]. Hence, it is of paramount importance that Indian models follow the transparent and closely monitored processes. Sustainable dairy farming keeping in mind the available resources is possible in
India if the entire chain of the Indian dairy industry, from the farms to the consumers’ plate, keeps an eye on safety norms, strict hygiene criteria, sampling and inspection of milk to ensure standardisation and includes cutting-edge research and innovation techniques for its ever-increasing diversity, quality and safety of value-added dairy products.
Business Standard, 02 January 2015
Gujarat Cooperative Milk Marketing Federation (GCMMF), makers of Amul brand dairy products, today said exports to Russia may start two to three months after the necessary regulatory approvals are in place. Revenues during the current financial year may cross Rs
22,000 crore against over Rs 18,000 crore in FY14 and the company would invest Rs 4,000-
5000 crore in the next three years on capacity expansion, GCMMF Managing Director R S
Sodhi said today. "The inspection team from Russia has already visited our plants and expressed satisfaction. They approved our plants also. There are some regulatory issues which are to be sorted out," Sodhi told reporters in a press conference.
Info@suruchiconsultants.com

Recently, GCMMF had said it is in discussion with Galactika Group to export dairy products to Russia and once sealed, Amul would become the first Indian dairy products maker to enter into that market. "Russia is going to be a very good market for Indian dairy products exporters. We can start exports to Russia after the approvals come. I think it may take two months," he said. He said Russia presents huge potential for Indian exports as 30 per cent of that country's requirements (dairy products) are imported. According to him, Russia imports about 8-10 lakh tonnes of milk powder and 20 lakh tonnes of cheese per annum. "Amul's exports stood at Rs 540 crore last year. At present, the international prices of milk commodities are very low. We right now focussed more on Indian market.
"In India, milk and milk products are growing in double digit. Amul is growing at over 24 per cent per annum," he said. On Amul's revenues, he said the aim is to touch Rs 50,000 crore mark by 2020 and this year the turnover may reach Rs 22,000 crore. "Around 45 per cent revenues come from fresh milk sales. Presently, we have got the processing capacity of 230 lakh litres of milk and in the next two years we are expanding it to 320 lakh litres. "By 2020,
Amul expects to achieve a turnover of Rs 50,000 crore. To achieve this, we are investing Rs
4,000-5,000 crore," he said, adding that the investment will go into setting up new plants and expanding the capacity of existing plants. Amul today launched its fresh milk pouches in
Hyderabad market.
The economic times, 02 January 2015
MUMBAI: Tata Capital, the private equity unit of the Tata Group, and Motilal Oswal Private
Equity have teamed up to bid for around 60% stake in Hyderabad based Cream line Dairy
Products and a deal could be struck in the Rs 380­crore to Rs 420­ crore range, thus valuing the 28­year­old diary maker anywhere between Rs 650 crore and Rs 700 crore, three people with direct knowledge of the development said. Godrej Agrovet, which bought a 26% stake in 2005 and the promoters of the company four families and their associates who own the rest will each sell a part of their holdings. "The two funds are jointly bidding for a controlling stake in Cream line," says one of the three persons quoted above. "The deal is currently at the due diligence stage." A final decision will be taken at a meeting in Hyderabad scheduled next week between the potential investors and the promoters. A Tata Capital spokesperson declined to comment, while K Reddy, managing director at Cream line, did not respond to an emailed questionnaire. The Motilal Oswal PE spokesperson denied any such move by the fund.
Cream line Dairy, with a capacity of more than seven lakh litre of milk processing a day, had revenues of Rs 700 crore for the year ended 31 March, 2013, as per the company's website. It has operations across southern states such as Andhra Pradesh, Tamil Nadu, Karnataka as well
Info@suruchiconsultants.com

as parts of Maharashtra. The company has 30 milk chilling centres of its own and nine belonging to associates. Its products are sold under the 'Jersey' brand. Last year, the promoters and Godrej Agrovet mandated the investment banking arm of HDFC Bank to look for investors. Since then, a number of strategic and financial investors have considered the deal and walked away due to valuation mis-matches, a second person directly involved in the deal said. Even though the sector is attractive and offers great returns, investors have been shying away from the company because of its limited product portfolio. "The company now wants to raise fresh capital so that it can expand its product base and become a pan-India company," a third person involved in the deal said.
For Motilal Oswal, this will be its second investment in dairy sector after Parag Foods. The fund is now looking at exiting the company through a planned public offering. The dairy company that sells 'Go' and 'Gowardhan' brand of milk products is being valued at around Rs
3,000-3,500 crore, giving Motilal Oswal potential a return seven times its investments. Tata
Capital, for its part is looking to invest in consumer centric sectors in India. According to a report, Indian Dairy Industry Outlook 2020 by RNCOS, a business consultancy provider, the
Indian dairy sector offers better considerable opportunity for financial and strategic investors.
"According to our latest research report, India is the world's largest milk producer, accounting for around 17% of the global milk production. It is also one of the largest producers and consumers of dairy products," the report said.
Info@suruchiconsultants.com

The cattle site, 01 January 2015
INDIA - US based global leader in liquid photo purification, Sure Pure has announced that it has started conducting commercial trials of photo purification technology with key Indian dairies. “Following the Indian Food Safety regulatory body (FSSAI) approval the use of Sure
Pure's proprietary photo purification technology as an alternative process to thermal pasteurization for milk and other dairy products, it is conducting commercial trials with key dairy producers in India,” Sure Pure said in a statement.
"We believe that Sure Pure brings a cutting-edge milk processing alternative to India. The robust technology retains the integrity of milk while delivering milk in its most nutritious form to the consumers," Guy Kebble, CEO of Sure Pure said. The Indian fluid milk market is the world's largest dairy market, estimated to have more than 70 million dairy farmers with production volumes of approximately 122.7 million tonnes per annum and a growth rate of four per cent.
Agri land, 01 January 2015
Lactose is the primary constituent in liquid whey. It is the main carbohydrate or sugar in milk. Infant-formula manufacturers and the pharmaceutical industry use lactose extensively in their products. Typically, the raw whey by-product from the cheese process contains 6.5% solids, of which 4.8% is the lactose fraction. In order to produce whey products of a higher protein content, it is necessary to remove some of the lactose from the liquid whey.
This is done by first passing the raw whey through a filtration process under pressure in which a liquid lactose solution is permeated and separated from the other constituents in the whey. This permeate is then crystallized to form a final product that is 99% lactose, 0.5% moisture, and with trace elements of protein and fat .Lactose has a number of different uses.
It is widely used within the baking and confectionery sectors to help maintain flavour quality and product texture.
It is also used extensively in Infant Formula production to help correct the equilibrium between the protein and carbohydrate in cow’s milk, to better match that of human breast milk. Lactose can be further refined to produce a higher-grade product known as pharmaceutical lactose. This product is used as a filling agent in capsule formulations or as an excipient in asthma inhalers.
The production of pharmaceutical grade lactose is a prime example where competitive cooperatives have joined forces to form mutually beneficial Joint Ventures. The world’s largest farmer owned dairy co-operatives Friesland Campina and Fonterra jointly own DFE Pharma.
This company owns production facilities in the Netherlands, Germany, New Zealand and
India. Lactose trade globally has seen a seven-fold increase in trade since the 1990s.
Info@suruchiconsultants.com

An opportunity exists in Ireland to propagate the production and sale of lactose in the domestic market. Lactose imports into Ireland have seen a four-fold increase between 2008 and 2013, increasing from 12,628 tonnes to 49,707 tonnes during this time period. In 2013,
84% of the €79 million worth of lactose imports into Ireland originated from Germany and the Netherlands.
Farm and dairy, 01 January 2015
Propane woes in 2014
The propane fuel that normally lasts into March had dwindled by January, due to a wet fall harvest, pipeline problems and unusually cold weather. At one point, some producers were paying $4.80 for a gallon of propane, and there were some who couldn’t get propane at all.
The Ohio Department of Agriculture and Gov. John Kasich stepped in to ensure that livestock operations and homes didn’t go without.
Antibiotic resistance
Scientists and the public have grown increasingly concerned about the evolution of antibiotic resistant bacteria in veterinary and human medicine. In September, President Barack Obama issued an executive order that describes the problem as a national security priority. In
November, U.S. ag and veterinary colleges created a task force, chaired by Lonnie King, dead of the College of Veterinary Medicine at Ohio State, to advise the public and the federal government on the use of antibiotics in production agriculture.
2014 crop woes
Grain farming in 2014 started with a wet spring, meaning crunch time for farmers to get their crops in the ground. Then, as the season progressed, grain prices fell, with corn prices hitting
$3.74 or below at harvest. At harvest time, farmers (when they could get into their wet fields) had to become creative with storage to avoid low market prices or avoid rail line issues, which had trains backed up and not running.
Farm bill
After more than three years of discussion and debate, Congress approved a new five-year farm bill in January 2014, and the president signed it into law in February. The new law ends direct payments, increases producer insurance options, provides a margin protection program for dairy farmers and a safety net for livestock producers.
Water quality
Water quality was already on the minds of Ohio farmers when 2014 began, with many actively engaged in new ways to control nutrient runoff. In June, the governor signed legislation requiring farmers to be certified to apply fertilizer, and in July, the algae bloom was forecast to be less severe than in previous years. But in August, the conversation changed
Info@suruchiconsultants.com

when Toledo found an unacceptable level of toxin in one of its water treatment plants, resulting in a temporary ban on drinking water and triggering new calls for regulation.
Beef check off
Three years’ worth of discussions over ways to increase revenues and otherwise overhaul the national beef check off program continued in 2014. USDA Secretary Tom Vilsack stirred up the proceedings in September, however, by proposing a second supplemental beef check off program. The idea met with generally negative feedback from the industry.
Big data
Precision agriculture is generating volumes of ‘big data.’ An agreement outlining who owns collected farm production data was reached Nov. 13 by six major farm organizations and six agriculture technology providers. The farm data privacy agreement states, in part, that
“collection, access and use of farm data should be granted only with the explicit consent of the farmer.”
Shale
A case involving mineral rights versus surface rights had made its way to the Ohio Supreme
Court. A 2012 case, Jon Walker, Jr. v. John R. Noon, is the first case to go to court over how the 1989 and the 2006 versions of the Ohio Dormant Minerals Act intersect. Landowners await the decision. In Ohio, as of Dec. 23, there are now 1,258 wells drilled in the Utica and
28 in the Marcellus Shale.
CAUV
In 2014, real estate tax estimates saw some CAUV rates increasing by 300 percent. The
CAUV allows farmers to be taxed based on agriculture value. Changes to Ohio’s CAUV tax formula could be coming in 2015, as tax commissioner Joe Testa meets with his agricultural advisory committee in January.
Farm and Dairy’s 100th anniversary
It might not make the CNN headlines, but celebrating our 100th anniversary was kind of a big deal here at Farm and Dairy. Throughout the year, we shared readers’ vintage farm photographs and culminated our celebration with a commemorative issue published Oct. 11.
Our anniversary open house Oct. 12 drew more than 400 readers and friends.
FoxNews.com, 31 December 2014
Info@suruchiconsultants.com

Pre-schoolers who drink three or more cups of milk a day may get a small height boost, but they’re also more likely to be overweight or obese, according to a new U.S. study. The results, based on nearly 9,000 children, support current recommendations that pre-schoolers consume two one-cup servings of milk a day, the authors say.“ Overall, we were most struck by the heavier BMI (body mass index) among four-year-old children drinking high volumes of milk,” said Dr. Mark De Boer, a paediatrician at the University of Virginia in
Charlottesville who led the study. “Given the country's current obesity epidemic, we felt as though the data supported the current recommendations of the American Academy of
Pediatrics, recommending that children drink two servings of milk daily - but restrain them from drinking higher volumes because of the potential for unhealthy weight gain,” he told
Reuters Health by email. De Boer said earlier research in other age ranges had noted a connection between higher amounts of milk intake and taller stature. But, his team writes in
Archives of Disease in Childhood, studies have found mixed results when it comes to milk and excess weight gain.
Data for the new study came from the Early Childhood Longitudinal Survey, a U.S. study that began when the kids were born in 2001.The researchers examined the milk-consumption patterns of 8,950 children during their first four years, based on interviews with parents. They were also able to follow up with 7,000 of those kids at age five. They found that 53 percent of children who drank milk consumed two or three one-cup servings daily. Four-year-olds who drank more than the recommended two servings of milk per day were 16 percent more likely to be overweight than the kids who drank less. The study team also found that on average, kids who drank two, three and four or more servings of milk per day were about a centimetre taller than kids who drank one serving or less.
By age five, the weight differences were no longer statistically significant and drinking more milk was only associated with being slightly taller. “As pediatricians, we had noticed that some families do not appear to restrain their children's milk intake, and we were wondering whether high amounts of milk intake would be associated with higher body mass index,” De
Boer said. “In that sense, we were not surprised when we noted that children at four years old who drank a larger number of servings of milk daily also had a higher BMI.”
There are several possible explanations for the results, particularly given that milk is high in growth factors that may or may not contribute to getting taller, De Boer noted. It’s also possible, he said, “that the heavier weight status associated with more milk intake could push children toward earlier growth. ”Because the study is based on observation, it cannot draw conclusions about cause and effect, he cautioned. Dr. Jonathon Maguire, a pediatrician and researcher at St. Michael’s Hospital in Toronto, said studies based on observing people over time, like the one De Boer’s team used, are very important.
“We learn from those children about what's healthy and what's potentially not healthy, and this study is a nice example of that,” said Maguire, who wasn’t involved in the new study.
The findings are also compatible with Maguire’s own research showing that around two cups of milk per day balances vitamin D and iron stores nicely, he said. (See Reuters Health article of December 19, 2012 here: reut.rs/1B0ahPC.) “And what this study emphasizes is that
Info@suruchiconsultants.com

around two cups is a nice balance between linear growth in terms of stature and avoiding problems like obesity and overweight,” he said. Milk is a staple of the Western diet,
MacGuire said, “It's a very important source of calories and essential fats, but too much of a good thing may not be a good thing and that's what this study is supporting,” he said.
Info@suruchiconsultants.com