Doubling Farmers’ Income by the year 2022
Processing in Dairy Sector
National Dairy Development Board
Contribution of farmers’ income from livestock/dairying
Highest growth was registered in receipts from livestock
from 4.3 per cent to 11.9 per cent between 2002-03 to
2012-13, while the contribution from both non-farm
business and wages & salaries declined over this period.
This was true, especially in states that showed overall
higher real income growth rates.
80% of income from livestock can be
attributed to income from dairying.
Prominent positive shift is in share of livestock/ dairying in
total income between 2002-03 to 2012-13. It seems enhanced
livestock/dairying income share is offsetting the losses in share
of wage/non-farm business income.
The landless, small and marginal
farmer have larger contribution from
livestock / dairying than the medium
and large farmers.
Increasing farmer’s income from dairying
Income from dairying is about one fourth the income of small and marginal milk producers.
Farmers’ income from dairying can be increased in a number of ways as follows
• Increase in total production will increase opportunities to increase total income of
farmers
• Increase in productivity through improved animal genetics and balanced feeding will
increase net income through lower unit costs
• Increased access to market through producer owned and controlled institutions in the
organized dairy sector can help improve price obtained by farmers for their milk
• Expansion and modernization of processing facilities will help add value to milk by
extending its shelf life and value addition
Under National Dairy Plan-I being implemented by NDDB and EIAs, we find the following evidences in
support,
(a)
Ration Balancing Program (RBP) under the aforesaid, which advises optimised feed for animals showed increase in
milk yield (77%) followed by improvement in reproduction efficiency (74%), improvement in quality of milk,
overall improvement in health of animal (68%) and reduction in feeding cost (24%).
(b)
Village Based Milk Procurement System (VBMPS) which provides market access and transparency in transactions,
the milch animal holding farmers are receiving higher price realisation more than Rs. 29 per litre as compared to Rs.
25 per litre during inception of program 3 years back
Stakeholders in the dairy value chain
However, the stakes of the
farmers are the highest.
Increased access to market
through producer owned
and controlled institutions
in the organized dairy
sector will motivate farmers
to produce high quality
milk, which will fetch
higher returns to them.
The processor is the main driver of the value chain and thus it must be
profitable and sustainable. It needs to eliminate all forms of waste in the
entire milk supply chain and focus on factors that deliver value to the
consumer and good returns to the farmer producers. This can be
achieved by constant quality improvement, cost reduction and
increasing delivery speed.
Increased access to market through producer
owned and controlled processor institutions
•
The dairy cooperative institutional network covers less than one-fifth of the villages and producers and
account for about 16% of the marketable surplus and only about 10% of the production.
•
Under NDP I, new societies/pooling points in hitherto uncovered rural areas are being formed and
existing societies/pooling points are being strengthened by establishing village level infrastructure like
Bulk Milk Coolers, Automated Milk Collection Units (AMCU) etc.
•
Electronic milk testing equipment or automatic milk collection units with integration of milk testing and
weighing equipment have been installed for fair, quick and transparent milk testing along with
integrated recording of all the transactions.
•
NDDB has developed a milk adulteration kit for detection of specified adulterants and electronic milk
adulteration machines for rapid assessment of adulteration are now available. Cooperatives and milk
producer companies are being encouraged to use these kits / devices extensively in entire dairy value
chain with focus at village level.
•
Apart from providing market access, growth of producer institutions has helped in increased
transparency and fairness in milk procurement operations as well as improvement in quality of milk.
Village level awareness programmes on CMP are being conducted to ensure improvement in quality of
milk pooled at village level which in turn would enhance quality and consistency of milk products.
PATTERN IN MILK CONSUMPTION & PROCESSING
Hardly any
information and /or
regulation on the
handling by the unorganised sector,
which processes most
of the surplus. More
and more milk needs
to flow to the
organised sector.
Process Improvements Required
•
1.
2.
3.
Milk Collection Process
Milk Production: Quality, Hygiene & animal heath care at farmer level
Collection & Testing: Fairness & Transparency, Accuracy/Low cost of Testing
Storage: Availability of Bulk Milk Coolers in villages
• Milk Transportation Process
1. Optimising time and distance of milk routes
2. Optimising fixed & variable costs by proper choice of vehicle combinations
•
1.
2.
3.
4.
Plant Operations Process
Quality Improvement:
Reduction in process losses
Equipment Availability Improvement :Renovations & refurbishments
New Product Development:
Major Intervention required in these areas
• Poor quality of raw milk, poor conditions of milk transportation of milk
from villages and lack of trained manpower
• Lack of availability of village level dairy infrastructure viz. bulk milk
coolers & dairy farm equipments
• No premium on hygienic quality of raw milk as the entire payment
system based upon FAT & SNF
• Dairy plants not utilizing their complete installed capacity
• Lack of adoption and implementation of international standards by
process plants
• Lack of funds to renovate & refurbish old plants & equipments
• Lack of enforcing quality standards in cattlefeed manufacturing & sale
Expansion and modernization of milk processing facilities
• Expansion and modernization of milk processing capacity will help add
value to milk by extension of its shelf life and thereby help marketing it in
distant markets as well as over a longer period of time, along with ensuring
food safety and quality.
• The recent announcement in this year’s budget of a Dairy Processing and
Infrastructure Development Fund with a corpus of Rs 8000 crore over 3
years will further give an impetus and expand the processing infrastructure.
• Ensuring hygienic milk handling involves adoption of a cold chain from
milk collection point onwards till it reaches the dairy for processing.
• Over the years, the number of BMCs in the cooperative network has
increased to reach a level of about 12,000 units with total chilling capacity
of about 315 lakh kg per day by end of March 2016, which includes
capacity created under NDP I. This has helped in enhancement of quality of
milk.
Thank You !