Dairy Farming & Milk Procurement an Indian Perspective….

1. Dairy Farming & Milk Procurementan Indian Perspective…. An overview by Dr. Chandrakiran N. Sant Dairy Advisor ( India )

2. India Some important facts we know.. • Large economy : Marching to acquire 3rd position. • Entered and moving ahead in a era of self sufficiency. • On a strong foothold in cyber space • Country of youth : 356 million people are between 10-24 years age. • Exposure to the world : progressive Indians are traveling widely. • Largest consumer market. • Rising economy with stable policies.. • Number one in Milk Production

3. India Some important facts we NEED TO know.. • 22 recognised languages; dialect changes at 20 kms. • 70% India still lives in villages • Hindi is national language however education is generally in local language. • English is also widely accepted but confined to business and official communication. • Information Technology provides easy support to the segments where English language dominates. • Indian Agriculture and Dairy is still with small and marginal farmers.

4. India Dairying • Number 1 in milk production, targeting production + 200 MMT by 2020. • Milk is an integral part of daily food. • Reasonably good milk processing facilities • National Dairy Development Board is a big support to cooperative movement. • Amul is taste of India, now available worldwide • Multinational Brands like Nestle, GSK, Heinz, Cadbury, Danone, Levers, Abbott etc. are the names now well associated with Indian Dairy • Entry and expansion of Lactialis is encouraging the business • FDI is also visible in this business segment.

5. India Dairy Farming Farming challenges… • Below average breed, feed and farm management. • Mechanization and automation is difficult because • Average herd size is small • Average yield is low • Enough resources in backward integration are not deployed • Application of computer based technology is a luxury. • Price • Language • Maintenance • Dairy farming is still with small farmers..

6. India Dairy Farming Farming is OVERCOMING challenges… • Scenario is changing but with snail speed… • New farms with 100 number are coming up. • +1000 animals are only a few.. • Clean milk production programs are implemented but with a focus on machines and cooling systems. • Extension education programs are being introduced. • Now efficient transportation is possible. • New entrepreneurs with patience are at threshold of this business.

7. India Dairy Farming We must put our efforts towards changing the scenario • Educate the producers, understand his/her need • Deploy more resources to farms • Efficient veterinary & Extension services. • Balance rationing. • Scientific ways & means to manage the farm • Companies entering in farming or allied services should focus on farmers need instead of selling their equipment or services. • Big milk processing houses should enter in big farms and encourage farmers to maintain medium herd size. • Efforts should be to collect quality milk not quantity (volume).

8. India Dairy Farming We must put our efforts towards changing the scenario • Bring more and more experienced veterinary doctors with knowledge, good information and practical experience. • Develop a few education and skill centers to produce more personnel • Develop computer program aligned with users’ need • Economic solutions must be there with efficient customer support. If IT ( Information Technology ) can change urban India Dairy Farming can change the face of rural India

9. India Milk Procurement-Collection & Transportation From production point milk should reach to the processing plant. Many efforts have been and being are there but still it is a big challenge. Critical factors • Farms or Farmers • Can collection vis-à-vis Farm Cooling Tanks • Time of collection . • Route selection. • Direct or through agent

10. India Milk Procurement-Collection • Farms or Farmers From farms it is single point collection of one quality milk. From different farmers : Develop a collection center. Both systems have merits and demerits • Collection in milk cans or Farm Cooling Tanks In India, FCTs are Bulk Milk Coolers, used as small chilling center Handling and maintenance of milk cans – cumbersome • Time of collection GenerallywithFCTs Two time collection in different tanks? Within what time range total milk should be collected ?

11. India Milk Procurement-Collection • Route selection In-can collection must reach to processing center earliest possible, by shortest and best road Chilled milk : can be from a different route, some flexibility there. • Direct or through agent Company’s policy Product requirement Manpower deployment

12. India Milk Procurement-Collection & Transportation In my opinion : best option ………..? We have “n” numbers of permutation & combinations it is organization’s choice to pick the options. Factors we consider are : End Product : Requirement – Pasteurized milk, UHT milk, fermented product (Curd, Yogurt, Butter milk) , Butter, Ghee (Butter Oil), Milk powder, etc. Procurement choice: Captive farms, contract farms, farmers Farm management : Emphasis on Breed, Feed and milking systems Collection and Transportation : Infrastructure Requirements.

13. India Dairy Farming & milk Procurement Thank you very much for your attention….

14. India Dairy Farming & milk Procurement : for more details Dr. Chandrakiran N. Sant Dairy Advisor (Cattle Nutrition & Management) Livestock Management Centre +91 98 60 60 01 33 cnsant@gmail.com