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DAIRY DEVELOPMENT IN INDIA: A REPORT ON STUDY VISIT

BANGLADESH ACADEMY FOR

RURAL DEVELOPMENT COMILLA, BANGLADESH

Bangladesh

AFRICAN-ASIAN RURAL DEVELOPMENT

ORGANIZATION NEW DELHI, INDIA

November 2013

Prepared by: Md. Mashiur Rahman

Director General, BARD, &

Dr. Kamrul Ahsan

Director (Training), BARD

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Contents

Sl. Page

Executive Summary 3

1 1 Introduction 5

1.1 The Context 5

1.2 Current Situation of Dairy Sector in Bangladesh 6

1.3 Objective of the Study Visit 6

1.4 Justification and Scope of the Study Visit 7

1.5 Visit to Different Dairy Related Institutions 7

2 Observations and Results 8

2.1 Salient Features of Different Dairy Development Institutes Visited 8

A. National Dairy Plan of India from 2011-12 to 2016-17 8

B. National Dairy Research Institute 10

C. National Dairy Development Board 16

D. Mother Dairy 23

E. Amul 27

2.2 Dairy Development Performance in Bangladesh 34

A. Milk Vita 34

B. Pran Dairy 39

C. Aarong Milk 41

3 Discussions on Development Issues for Milk and Milk Products 42

3.1 India 42

3.2 Bangladesh 44

A. Short Term Policy (Up to 5 years) for Cattle Development

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B. Medium Term Policy (6 -10 years) for Cattle Development

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C. Long Term Policy (10 years and beyond) for Buffalo Development

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4 Conclusion 52

Bibliography 54

Annexure 55

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Executive Summary

India is the largest milk producing country. Congenial milk production environment by organizing and improving marginal and small farm holders, developing breed, ensuring sustainable competitive price for milk to the farmers, developing various market driven milk and milk products; keeping steady growth in milk production are the vital achievements of milk and milk product development so far in India during the last 50 years. On the other hand, country like Bangladesh is poor in milk production and over 80 percent of total requirement is met up from import milk.

Bangladesh Academy for Rural Development (BARD), Comilla is well-known for evolving a number of rural development models. Livestock development got proper attention in selecting development projects in the past. But livestock development as a component for rural development did not contribute remarkably in those projects except the cooperative based creamery plant project in 60’s which continued upto late 90’s and that was closed mainly due to inadequate supply of milk in the plant. African Asian Rural Development Organization (AARDO) organized a 10 day visit programme to different milk and milk production organizations in India for two senior officials i.e., Mr. Md. Mashiur Rahman, Director General and Dr. Kamrul Ahsan Director (Training) of BARD with the financial support of AARDO and Government of India. The study team visited National Dairy Research Institute (NDRI), Karnal, Mother Dairy, Delhi, Amul and National Dairy Development Board (NDDB), Anand. The study team also visited a Primary Dairy Development Cooperative at Sandesar, Anand. All these events were supported by briefings and guided visits. NDDB was established in 1965 to support millions of poor milk producing farmers of the country to increase milk processing for domestic consumption as well as export the same in abroad under different brands like Amul, Mother Dairy etc. Increasing productivity through scientific breeding, nutrition development, strengthening village based milk procurement system, training and capacity building etc. were the major thrust of the Government of India to lead the country as the leading milk producer in the world.

It is realized that the dairy sector of India could create a comprehensive and friendly milk production environment in different states of India. India could ensure constant and sustainable growth in milk production despite of comparatively limited investment from public and private sectors. The country has mega biodiversity and huge bovine population. The production cost of milk is comparatively low in India, which actually the driving motivating force of huge small and marginal farmers with their 2-4 cattle each in most cases. Provide competitive prices of milk to all small producers of milk for longer time. The well coordinated network of milk collection and marketing keep farmers’ produces market driven. The country has huge untapped milk resources both in cattle and buffalo to explore in future. Because until now only about 17 percent cattle could develop through cross breeding and even this 17 percent could produce more milk in bulk compared to milk produced by rest of the 83 percent indigenous breed of the country. All theses advantages are utilized through well plan with comprehensive policy and commitment of all concerned.

There are also a number of weaknesses in dairy sector of India. Among these low productivity of indigenous breed, higher lean-flush ratio, regional imbalance in production and little control over quality milk production are prominent. In addition, inadequate cold chain facilities with respect to huge need, shortage of feed and fodder, continuous reduction of fodder area, low capacity in processing and late sexual maturity of dairy animals are notable in this regard as the future challenges of the country.

On the other hand the opportunity for large-scale development of dairy is limited in Bangladesh due to high price of livestock feed and scarcity of grazing land. But there is potentiality for development of smallholders of dairy farming. Small-scale dairy farming has

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increased significantly with the support of credit, feed, veterinary services and provision of self-insurance systems over the last few years. But still required favorable conditions for small holder cannot be created in the sector for a number of practical reasons. Among that individual milk testing is not carried out at the procurement level in Bangladesh and farmers are paid a flat rate of milk price. Thus, there is no incentive for quality milk supply. Adulteration is common and as a result fat and or SNF (solid not fat) percentage in milk is low. Skim milk powder often has to be added to milk to make up the low SNF level for pasteurized liquid milk.

The Livestock Development Policy 2007 of the government identified a number of constraints for milk production in the country of which (i) limited knowledge and technical skills of smallholder dairy farmers, (ii) scarcity of feeds and fodder, (iii) poor quality of feeds, (iv) frequent occurrence of diseases, (v) limited coverage of veterinary services including poor diagnostic facilities are important.

In addition, livestock development through the application of science-led methods of breeds and breeding in Bangladesh is still at an initial stage. There is, however, enthusiasm for applying breeds and breeding interventions to enhance livestock performance. Lack of a national breeding policy, use of inappropriate breeds, weak infrastructure (human capacity, national service delivery, breeding farms) and limited technical knowledge are the major barriers for the development of improved breeds.

Available high yielding seed materials are mostly exotic and imported. However, not all of these imported exotic species adapt well under Bangladesh climatic conditions.

There is a number of promising well-adapted native livestock breeds in the country such as Red Chittagong cattle, Pabna cattle etc. which could be developed into high yielding breeds through cross breeding in a systematic manner. Importation of inappropriate genetic material coupled with indiscriminate crossbreeding and a clear neglect of indigenous breeds has created a situation, where a number of native breeds of livestock are under threat of extinction.

There is no regulatory body or National Breeding Act to regulate breed imports, prices of breeding materials, merits and quality of breeds, breeding materials and breeding services. Within the existing cattle breeding services (including artificial insemination), farmers have little or no idea of the merit and quality of the semen being provided to them for insemination. The investment is very poor in this sector.

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1. Introduction

1.1 The Context

Livestock sector plays a significant role in Bangladesh economy. Cattle and buffaloes are

used for draft power, rural road transport and threshing of crops. Moreover, livestock provides

animal protein through milk, meat and eggs for human consumption and dung as fuel and

manure. Livestock sub-sector contributes about 3 per cent of total GDP and it employs about 20

per cent of rural labor force. The development of livestock sub-sector has therefore, been

considered as an important element for generating income and employment especially in rural

areas.

There exists a wide gap between total requirement of livestock products like milk, meat,

eggs etc. and their current levels of production. Moreover, the gaps between requirement and

production are expected to widen due to population growth and more importantly to rapid

increase in per capita income. As income rises, the demand for livestock and poultry products

increases rapidly.

Bangladesh Academy for Rural Development (BARD), Comilla has a long experience in

rural development. BARD has been engaged in training, research and action research on rural

development since its establishment in 1959. BARD has involved in developing different models

of rural development for uplifting the socio-economic conditions of the rural poor. The famous

‘Comilla Model of Rural Development’ was the outcome of this Academy which provided a

unique combination of administrative, institutional and physical infrastructures for rural

development. Introduction of high yielding varieties through irrigated paddy production was the

fourth component of the model, which enhanced the paddy production of Bangladesh from about

9 million metric tons per annum in 60’s to almost 35 million metric tons per annum in 2011. The

Government of Bangladesh has recently accepted up two of BARD’s successful models namely

Comprehensive Village Development Programme (CVDP), and Small Farmer’s Development

Programme (SFDP) for replicating through out the country in phases.

BARD took a few livestock development programmes but for a number of reasons it

could not be continued for a longer time. For example, in early 60’s with the initiative of BARD a

Creamery Plant was established and linked the same with the milk producer cooperators of

different villages at Comilla. The products of the plant like Comilla Butter and Comilla Cheese

became popular in the country for a long time and discontinued in the late nineties. Inadequate

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supply of milk to the plant, poor management etc. were identified as the causes for closing the

production of the plant.

1.2 Current Situation of Dairy Sector in Bangladesh

The growth has been most rapid especially for poultry (chicken/ducks) and least for

cattle/buffaloes during the period 1983-2005. In fact, the number of cattle/buffaloes

increased by 2.57 million (mostly during 1996-2005 period) over the 23 years after

independence of the country. This has led to a decline of cattle/buffaloes per household and

per capita by 37.5 and 30.8 per cent respectively over the period. The number of chicken and

ducks, on the other hand, increased remarkably (by 52.96 million between 1983-84 and 1995-

96 and by 55.12 million between 1995-96 and 2004-05). The differential growth of livestock

and poultry largely reflects the scarcity of grazing land and the scavenging nature of

chickens/ducks as well as recent growth spurt of commercial poultry compared to cattle and

buffaloes.

During the current decade specially the 2000-01-2008-09 period) poultry population

registered a satisfactory growth (over 5 per cent) followed by goats/sheep (around 4 per cent).

The growth of cattle/buffaloes, especially cattle, was the most disappointing, which registered

a growth of only 0.5 per cent over this period. This has led to a per capita decline in the

number of bovine animals, particularly cattle in the country. Due to robust growth of poultry,

however, the livestock population registered an overall growth of 4.6 per cent, thereby

leading to an increase in the number of livestock per capita over the period.

1.3 Objective of the Study Visit

The objective of the study visit to India was to observe and document the salient

features of the chain of milk production at the community and farm levels and their

processing and marketing of the same at the end. The report is prepared based on the study

visit also review of milk production scenario of Bangladesh. The specific objectives of the

study visit were to:

a) describe about the initiative and intuitional supports to the milk production in India;

b) assess the role of community and the farmer’s organizations in management of milk production and marketing the same;

c) document the market linkage and value chain of milk and milk products at different levels; and

d) review the milk production and milk products scenario of Bangladesh in the present situation.

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1.4 Justification and Scope of the Study Visit

Dairying is an important economic activity in Bangladesh that provides

supplementary income, employment and nutrition to about 3.6 million households in

Bangladesh. Dairying is labour intensive. A farm with two lactating cows generates 4,080

hours of labour opportunities every year.

Even though per capita milk consumption is low in Bangladesh, domestic milk

production is still insufficient to meet the existing demand. In the formal market about 87%

milk is imported. The sector’s growth rate (2.05%) remains far behind that of the

neighboring countries against 4.1% in India and 4.9% in Pakistan. The reasons for such

modest growth rate are lack of sound policy, insufficient data on the sector to formulate

proper policy, lack of political commitment and less attention and insufficient budget

allocation (only 0.3% of national budget), inadequate private investment of this sector and so

on. Coordination among the actors in the value chain (farmers, traders, processors and service

providers) is very week leading the chain very long with a higher degree of mistrust among

different groups. This increases cost and reduces competitiveness. In Bangladesh, pasteruised

packet milk sold at US$0.44 per liter against US$0.29-0.31 per liter in India in 2006. Now the

price in Bangladesh is US$ 0.8 per liter which is much higher than that of India. Primary

producers in Bangladesh only get about 50% of the consumers’ price; whereas Indian

producers get 74% of the consumer’s price. The study visit provided some inputs suitable to

incorporate in the development of milk production in Bangladesh.

1.5 Visit to Different Dairy Related Institutions

The study visit included orientations on development and establishment milk and milk

products of India while visiting different milk plants, research institutes and livestock farms.

The study visit was taken place during 17-27 August, 2013. A schedule of the visit is

attached in Annexure-1. The programme started with visiting NDRI, Karnal and then Mother

Dairy, Delhi; and NDDB, Amul and a Primary Milk Producing Cooperative Society in

Anand, Gujarat. In addition, a visit was made to the Ministry of Rural Development,

Government of India where Joint Secretary (External Support) provided an introduction to

rural development efforts of India. The team visited Head Office of AARDO, New Delhi

where Secretary General of AARDO, Engineer Wassfi Hassan El Sreihin welcomed the team

and oriented the team about the programmes and facilities of AARDO. The team also visited

NIRD, India where a short briefing on NIRD including activities of Agricultural

Technological Park of NIRD was provided. Dr. Khushnood Ali, Director (Research),

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AARDO, New Delhi provided all sorts of supports including preparing the programme,

arranging air tickets, maintaining contacts with different organizations in Delhi, Haryana,

Gujarat of Hyderabad for successful completion of the visit programme.

The name of the institutions visited by the team were

a) National Dairy Research Institute (NDRI), Karnal, Haryana

b) National Dairy Development Board (NDDB), Anand, Gujarat

c) Milk Processing Industries i.e., Mother Dairy in Delhi and Amul in Anand, Gujarat; and

d) Primary Milk Producer’s Cooperative Society at the village level those are linked to milk processing industry

During the visit to different places, short briefings on supports and services for milk

production in the chain from producers to the end products were made. Moreover,

discussions with stakeholders along with supporting paper and documents were the important

inputs of the visit.

2. Observations and Results

2.1 Salient Features of Different Dairy Development Institutes Visited

The visit to different establishments related to milk and milk products were made

during 17-27 August 2013 in Delhi, Haryana and Gujarat of India. The coverage of the study

visit includes National Dairy Research Institute (NDRI), Karnal, Mother Dairy, Delhi,

National Dairy Development Board (NDDB) and Amul in Anand and a Primary Milk

Producing Corporative Society in Anand. In addition visit included Head Office of AARDO

and NIRD, Hyderabad.

A. National Dairy Plan of India from 2011-12 to 2016-17

India is the largest milk producer in the world with a production of 121.8 million tones

in 2010-11 which was approximately 17 percent of the world’s total dairy production and

virtually used for own consumption. Based on the Planning Commission’s estimates higher

growth in GDP, it is expected that demand for milk is likely to be about 155 million tones by

2016-17 and about 200 million tones by 2021-22. To meet the growing demand it is necessary

to maintain the annual growth of over 4 per cent in the next 15 years. Therefore, a multi-state

initiative has launched to increase productivity in existing herds through a planned programme

for breeding and feeding of cattles. The National Dairy Plan (NDP) has been envisaged with a

fifteen-year target of which three to five years are required to produce a more productive

animal along with development and expansion of systems to increase milk production.

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The first phase of the National Dairy Plan is to finance over a period of six years with

the following objectives:

(i) To help in increasing the productivity of milch animals and thereby increase

milk production to meet the rapidly growing demand for milk; and

(ii) To help in providing rural milk producers with greater access to the organized

milk- processing sector.

a) Increase of Productivity through Scientific Breeding: Genetic progress over a larger

population can be accelerated if breedable animals are bred through artificial insemination

(AI) using the semen of a few top High Genetic Merit Bulls. The proportion of milch

animal’s bread through AI targeted to be raised form 20 per cent to 35 per cent.

b) Nutrition: Milch animals produce milk with its genetic potential when these are fed with

balanced rations. This approach to feeding positively impacts not only their health and

productivity but also leads to a significant decrease in cost of production as feed accounts for

about 70 per cent of the total cost of milk production. It helps increasing the farmer’s income.

NDBB has developed user-friendly computerized software for Ration Balancing.

c) Strengthening Village-based Milk Procurement System: Some 70 millions rural

households are engaged in milk production, the majority being small and marginal farmers

and landless households in India. Dairy cooperatives ensure inclusiveness and livelihoods for

small landholders, especially for women. It is desirable that the cooperative sector retains the

present 50 per cent share of the marketable surplus handled by the organized sector.

d) Training and Capacity Building: Skilled and trained human resources are essential and

critical inputs for the successful implementation of the national plan. Facilitating training and

development of field personnel are considered an important area for supporting the

programme. Capacity building, training and education campaigns to promote technologies

and improved practices at village level are also key initiatives of the programme. It is

estimated that about 6,00,000 personnel at all levels require training and reorientation under

NDP.

e) Project Management and Learning: The initiatives under the NDP are dispersed over

different geographies. It is therefore, critical to integrate ICT (Information and

Communications Technology) based systems in the operations of various activities.

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� Implement ICT-based information systems for integration of various activities as well

as monitoring and reporting at different levels to carry out necessary analysis and

facilitate necessary changes in programme implementation;

� Carry out baseline, mid-term and project completion surveys and other special

surveys/studies; and

� Facilitate learning and documentation of learning experiences.

f) Expected Outputs: The plan would be able to establish

� Effective monitoring and coordination of programme activities;

� Timely preparation and implementation of annual plans; and

� Regular review and reporting of development progress and results.

g) Project Area: NDP covers on fourteen major milk producing states, viz. Andhra Pradesh,

Bihar, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab,

Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal.

These states account for over 90 percent of the country’s milk production have 87

percent of the breedable cattle and buffalo population and 98 per cent of the fodder resources.

B. National Dairy Research Institute: The study team visited NDRI, Karnal, Haryana

on 18-19 August 2013. The study visit team constituted with Md. Mashiur Rahman, Director

General of BARD (Additional Secretary to the Government of Bangladesh), Dr. Kamrul

Ahsan, Director (Training) of BARD, Comilla and Dr. Khushnood Ali, Technical Officer,

Capacity Building and Development Projects Division, AARDO. Dr. G. R. Patil, Joint

Director (Academic) and Dean and Dr. Ravinder Malik, Principal Scientific Officer and

Organizer of the Study Visit and other concerned welcomed the team to NDRI at 11 am on

the 18th August 2013.. After a short discussion on activities of NDRI and also on the

activities of BARD, Dr. Patil distributed some booklets of the institute and programme of the

visit to the study visit members. The visit included documentations of observations on

different units and departments of dairy development. The salient features of the visit are

given as follows:

NDRI was established at Bangalore in 1923. Later on NDRI was shifted to the present

location at Karnal in 1955. It has two regional stations, one at Bangalore and the other at

Kalyani for providing region-specific support suited to their agro-climatic conditions. The

institute is also a Deemed University for implementing its educational programmes.

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The goal of the institute is to provide Research and Development (R&D) support for

generation and dissemination of knowledge towards improved national milch heard for milk

production enhancement, greater productivity of dairy industry and management aspects of

the dairy profession leading to the social, economic and environmental benefits to the nation

as well as contributes towards manpower development.

Picture-1: Dr. G. R. Patil, Joint Director (Academic) and Dean, NDRI, Karnal Presenting the Activities of the Institute on 19 August 2013

The institute is mandated with i) conducting research in the areas of dairy production,

processing and marketing, ii) demand driven `Human Resource Development’ to meet the

requirements of dairy industry and R&D institutions, and iii) disseminating innovative dairy

production and processing technologies for socio-economic transformations.

a. Organizational Structure: In relation with the administration pattern of the Deemed

University, the institute is managed through various policies and decision making bodies’ viz.

Board of Management, Research Advisory Committee, Academic Council, Executive

Council and Extension Council. The Director is the Chief Executive Officer who is assisted

by the Joint Director for managing research, academic and extension functions. The Institute

has three major areas of R & D activities viz. i) Dairy Production, ii) Dairy Processing, and

iii) Dairy extension/Management. All the R &D activities are managed through thirteen

Research Divisions and Sections, namely, Diary Cattle Breeding, Livestock Production and

Management, Dairy Cattle Nutrition, Forage Research, Dairy Cattle Physiology, Animal

Biochemistry, Animal Biotechnology, Dairy Technology, Diary Engineering, Dairy

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Chemistry, Dairy Microbiology, Dairy Extension and Dairy Economics, Statistic and

Management at the main station and its two regional stations. The Institute also has an

Agricultural Technology Information Centre (ATIC), Krishi Vigyan Kendra and Diary

Training Centre and Animal Breeding Research Centre. The institute has infrastructure

consisting of central facilities such as Livestock Farm, Forage Research and Management

Centre, Animal Health Complex, Model Dairy Plant, Technology Business Incubator,

Experimental Diary Plant Consultancy Unit, Library and National Bio-information Centre,

Computer Centre. The Institute presently has manpower strength of 153 scientists, 283

technicians, 155 administrative and 580 skilled supporting staff.

b. Research and Development: Presently a total number of 72 in-house research projects are

in operation. NDRI has close cooperation in getting external funding from most of the

leading national funding agencies i.e. Department of Biotechnology (DBT), Department of

Science and Technology (DST), National Dairy Development Board (NDDB), National

Bureau of Agriculturally Important Micro-organisms (NBAIM), National Fund for Basic and

Strategic Research on Agriculture (NFBSRA), Ministry of Food Processing Industries

(MFPI), Department of Atomic Energy (DAE), Indian Council of Medical Research (ICMR)

and Department of Animal Husbandry and Dairying (DAHD).

i) Livestock and Fodder Farm: The institute possesses an elite herd of over 16,000 dairy

animals, which mainly included cattle and buffaloes. The institute serves as a nucleus stock

of superior germplasm for its propagation and dissemination to various agencies in different

states of the country. It also caters to the requirement of milk and experimental animals for

various research projects. Surplus milk is utilized for running experimental dairy products.

Karan Fries crossbred cows (Tharparkar X Holstein Friesian) development by this institute is

currently producing over 4,000 litres of milk per lactation. Further, Sahiwal cows and Murrah

buffalo produce over 2,100 litress of milk per lactation. These lactation yields are much

higher than the national average i.e. 1,050 liters. The highest peak yields of 44 and 46.5 kg

have been recorded in Karan Swiss (Sahiwal X Brown Swiss) and Karan Fries respectively.

Through consistent selection, the indigenous cattle breeds i.e. Sahiwal and Tharparkar have

been improved and the highest peak yield of 23 and 19.5 kg milk per day have been obtained

in these two breeds, respectively. In Murrah, the best buffalo breed of the world, the peak

milk yield of 25.1 kg in a day has been achieved. A small flock of indigenous and crossbred

goat is also maintained for conducting research and the peak milk yield of 5.4 kg per day has

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been registered. A modern Milking Parlor System and Shelter Management System set up

recently at the Livestock Farm serve as demonstration models for the progressive farmers and

provide infrastructure for conducting research on various aspects of milk production system,

reproductive performance, growth profile and nutritional requirements for quality milch

breeds.

The entire fodder need of the farm is met by cultivating fodder crops in over 300

hectares of land and under a Revolving Fund Scheme on Seed Production of Fodder Crops,

good quality seeds of improved varieties of fodder crops are produced in 40 hectares area and

supply to farmers for enhancing the fodder yield. Initiatives have also been taken to

modernize the irrigation system by brick lining of irrigation channels for improving the

conveyance efficiency of limited quantity of irrigation water available. Systematic and

computerized data and records on all aspects of dairy production and management are being

maintained and used by students, researchers and the farm managers.

The dairy farm of the institute is one of the most modern and well managed farms in

the country, which has been serving as model training cum demonstration unit for the

benefits of dairy farmer’s organizations. Training on scientific dairy farming and consultancy

for setting up of commercial dairy farming enterprise is also provided to budding

entrepreneurs, banking institutions, NGOs and government agencies.

ii) Artificial Breeding Research Center: The Artificial Breeding Research Center (ABRC),

has the infrastructure and capacity for managing 146 bulls (Sahiwal, Tharparkar, Karan-Fries

breeds of cattle and Murrah breed of buffalo) and is the largest Bull Breeding Center in the

country. This center is playing a proactive role in achieving genetic improvement of dairy

cattle and buffalo and reproduction management of male animals/breeding bulls, production,

processing evaluation and preservation of superior male germplasm, teaching of post-

graduate students, training and consultancy on male animal reproduction and dissemination

of superior germplasm of cattle and buffaloes. The ABRC maintains the co-ordination with

various departments and sections of the institute.

The centre has a seminar-cum-class room; Semen Quality Control Laboratory;

Germplasm Information Laboratory; Long range Open Bull Exercising Zone; Mist Cooling

System for reducing heat stress to breeding bulls. The center has also strengthened the

facilities for scientific management of bulls, cryopreservation facility for storage of

germplasm, semen processing laboratory, advance training facility on animal breeding and

reproduction management and frozen semen technology and dissemination of superior

germplasm of cattle and buffaloes.

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iii) Model Diary Plant and Experimental Dairy Plant: The institute has a model dairy

plant with necessary equipment and a processing capacity of 60,000 liters of milk per day.

This is an ISO 22000:2005 certified plant. The plant has been established with collaboration

of NDDB to provide training facilities to B.Tech students and scientists to carry out the

scaling up of operations for products and processes developed in research laboratories. The

institute has an ISO certified experimental dairy plant with the milk processing capacity of

10,000 liters per day. The plant is extensively used by the students, researchers and scientists

for developing new and innovative dairy products.

Revenue generated through this scheme is being utilized for development of

infrastructure of experimental diary plant. During the year 2011, the experimental diary plant

generated a revenue worth Rs. 30,31,198.

c. Education: NDRI offers educational programme, which can categorize as follows: i)

B.Tech. (Dairy Technology), Masters in thirteen disciplines and Doctoral courses in twelve

disciplines during 2012-2013; ii) E-courses for B. Tech (Dairy Technology) degree. The e-

courses for B.Tech degree progarmmes were uploaded for online delivery to various dairy

colleges and institutions; and iii) the academic session also attracted many international

students (15 Nos.) annually for training and short term education in different areas of

Dairying.

d. Extension: Extension of products of the institute can be spelled out as follows:

• NDRI-Industry Meet was held on December 1, 2012. At this Meet, 34 technologies

development at NDRI were presented before 42 participants from 32 Industrial houses

and other stakeholders with a view to focusing for commercialization.

• The pricing was finalized for initiating commercialization of the technologies viz.

functional processed cheese spread, buffalo-milk feta cheese, functional quarg cheese,

dietetic misti dahi, buffalo-milk set plain dahi, buffalo-milk set plain yoghurt, cow-

milk set plain yoghurt, cow-milk set plain dahi, extended shelf-life functional paneer,

long-life milk cake, low-fat gulab jamun mix and Arjun herbal ghee.

• Entrepreneurship development campaign was launched for transferring some of the

technologies that were developed in the field composite dairy foods, One Self Help

Group (SHG) namely Nirmal Dhara Mahila Dugdh Samiti was formed in village

Taprana and the women members of the SHG were trained for manufacturing of

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quality dairy products. Training was also given on testing of milk and milk products.

Women belonging to SHG named as Shagum Bakery were trained for the

manufacture of bakery products such as biscuits, buns and cakes.

• The innovative approach entitled “Dairy Education at Farmers’ Door” initiated by

NIRD which is being continued in year 2012-13. Under this programme, a team of

NDRI scientists including subject matter specialists from production, processing and

management groups organize Dairy Education at Farmers’ Door to various’ villages

on 2nd Saturday of every month.

• It organized 272 training programmes (both on campus and off campus) on different

aspects of dairying and allied fields of agriculture such as crop production,

horticulture, bee keeping and fisheries apart from home science for the benefit of

8969 farmers, farm women, rural youth and entrepreneurs across the country.

• During 2012-13, 25,375 farmers from 16 states and one union territory visited ATIC,

which also included 216 delegates from 9 different countries. Different technological

interventions in the area of nutrition, breeding, physiology and health care were

disseminated to 23,375 farmers. It can be mentioned here that 6,478 stakeholders

suggested different technological interventions in the area of livestock production

management and milk processing.

• Forty three women empowerment trainings courses and campaigns in the field of

dairying and home-science were organized with the objective of creating awareness

and enhancing skill in these areas.

• A new initiative was taken to establish laboratory for women for imparting training to

different self-help groups. This lab was established with the objective to create

awareness and impart skills in the field to dairy processing and fruit and vegetable

preservation and also mobilize these groups to take up vocation in these areas.

• NDRI organized 57 infertility and veterinary aid campaigns, exposure visits at nearby

villages viz., Nasirpur, Nasirpul Tial, Vazidpur, Kulwasheri, Budhakherea and

Ganjogarhi.

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Picture-2: Team Visiting the Semen Processing Laboratory of Artificial

Breeding Research Center, NDRI, Karnal on 19 August 2013 C. National Dairy Development Board

The study team arrived at National Dairy Board (NDDB) in the evening of 21st

August 2013. The team visited different sections of NDDB, well reputed “Amul” and a

primary milk cooperative of milk producer during 22-23 August 2013. The summary of the

orientation is as follows:

NDDB is an institution of national importance was set up by an Act of Parliament of

India. The main office is in Gujarat with regional offices throughout the country. NDDB's

subsidiaries include Mother Dairy, Delhi and Indian Immunological Ltd, Hydrabad. It was

founded by Dr. Verghese Kurien. The National Dairy Development Board (NDDB) was

established in 1965, fulfilling the desire of the then Prime Minister of India — the late Lal

Bahadur Shastri — to extend the success of the Kaira Cooperative Milk Producers' Union

(Amul) to other parts of India. That success combined the wisdom of farmers with

professional management to capture liquid milk successfully. The major success of this

mission was achieved through the World Bank financed Operation Flood, which lasted for 26

years (1970 to 1996) and was responsible for making India the world's largest producer of

milk. This operation was started with the objective of increasing milk production and

augmenting farmer’s income and ensuring fair prices to consumers.

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NDDB has now integrated 96,000 dairy co-operatives known as Anand Pattern that

linking the village society to the state federation in a three-tier structure. NDDB launched its

Perspective Plan 2010 with four thrust areas: Quality Assurance, Productivity Enhancement,

Institution Building and National Information Network.

Picture-3: Dr. Amrita Patel, Chairman and other Senior Officials of NDDB Exchanged Views on Dairy Development in India and Bangladesh on 23 August 2013

a. Farmer Empowerment: NDDB empowered millions of small and marginal farmers

through village dairy cooperatives. Amul pattern societies across the country made farmers

socially and economically developed.

a. b. Women Empowerment: About 48% of the total population of India is women. National

Dairy Development Board replicates "White Revolution" movement among small farmers,

women and makes them involved in socio-economic activities[[

c. Strengthening Cooperative Business: NDDB supports dairy cooperatives to meet the

challenges in a market- driven economy through better governance and efficient

management. Training programmes for milk procurement personnel were also conducted. It

helps them upgrading and updating their skills to enable them contributing more effectively

towards the structure and processes adopting best practices in the areas of clean milk

healthcare and management practices.

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During 2011-12, the cooperative milk unions together procured 28.7 million kg of milk per

day compared to 26.2 million kg per day in the previous year, registering an annual growth of

around 9.5 per cent. Liquid milk marketing by the cooperatives reached 22.9 million liters per

day compared to 22.0 million liters per day in the previous year with a growth rate of 4.1 per

cent.

A number of milk unions are increasingly creating Women Dairy Cooperative

Societies (WDCS). By March 2012, unions across the 20 dairying states have reported 18,954

WDCS with a total membership of 4.26 million across the country.

Of the total women members in dairy cooperatives, 2,35,000 have attained leadership

roles on management committees of Village Dairy Cooperative Society and 230 of these have

attained representation on he Boards of Directors of milk unions and federations.

d. Enhancing Productivity: Building infrastructure for genetic improvement of animals and

providing balanced nutrition, healthcare and improved management services makes it

possible to achieve higher levels of productivity in animals and enhance the income of

farmers. Breeding Programmes are undertaken to enhance the productivity and induction of

improved genetics.

i) Production of High Quality Merit Bulls: Seven field progeny testing programmes

initiated by NDDB in partnership with different milk unions were carried out throughout the

country for testing their dams. During the year 2011-12, 51 high genetic merit bulls procured

and reared under these programmes and were distributed to various semen stations.

ii) Indigenous Breed Development: The implementation of the Rathi breed development

programme in 100 villages of Bikaner and Shir Ganganagar districts of Rajasthan and the

Kankrej breed development programme in partnership with Banaskantha Milk Union in 88

villages in Banaskantha district of Gujarat continued during the year 2011-12. Under the

Rathi breed development programme, 33 Al centres covering 100 villages carried out 4,116

inseminations during the same year.

Efforts by NDDB to preserve indigenous breeds of cattle and buffalo by in vitro

methods in the form of frozen embryos and frozen semen continued in cattle breeds namely

Sahiwal, Red Sindhi, Gir, Rathi, Kankrej, Khillar, Hariana and Tharparkar and buffalo breeds

namely Murrah, Jaffarabadi, Pandharpuri and Toda.

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e. Information Network for Animal Productivity and Health (INAPH): INAPH is being

used by seven progeny testing programmes, two pedigree selection programmes and a ration

balancing programme spread across eight states, 33 districts and 5,069 villages of the

country. Around 1,786 users are using the application for different services through 332

handheld devices and 139 note books. A total of 10.42 lakh animals belonging to 3.43 lakh

farmers have been registered till date.

f. Frozen Semen Production and Al Services: The three NDDB- managed semen stations-

Sabarmati Ashram Gaushala (SAG), Bidaj Animal Breeding Centre (ABC), Salon and

Rohtak Semen Station together produced 16.18 million frozen semen doses produced in the

country. In addition to this, eight other semen stations in the cooperative sector produced

13.15 million semen doses. During the year, IndiaGen carried out 1.15 million inseminations

at the farmer’s doorstep, through their 1,359 mobile Al units. The cooperative unions

performed 13.2 million AIs through 17,530 AI centers covering 50,375 villages.

g. Animal Nutrition: NDDB initiated a large pilot programme in the villages of Banaskantha

district to study the impact of implementing the Ration Balancing Programme (RBP) on a

larger scale which covered 12,777 animals in 160 villages. Technical officers and trainers of

the Banaskantha Union were trained at NDDB. The trainer, inturn, trained 160 Local

Resource Persons (LRPs) selected from these villages to carry out ration balancing for

individual animals at the milk producers’ doorstep, using note books loaded with the RBP

software. The LRPs were trained in their local language on the basic aspects of animal

feeding, software handling, formulation of least-cost balanced ration, using locally available

feed resources and area-specific mineral for five days in classroom sessions and on-the-job

training at the farmers’ doorstep for a period of five days. The training included ear-tagging,

measurement of body weight and working out a least- cost balanced ration by weighing

different feeds and fodder actually ration, by weighing different feeds and fodder actually

being fed by the farmers to their animals. All the animals covered were ear-tagged for

identification and the data recorded in the central server.

h. Developing Human Resources: A focus on planning for skilled and trained human

resources is critical for successful implementation of the National Dairy Plan. NDDB

continues to provide special emphasis on growing human resource needs with a major focus

on capacity building through training and development as a preparatory task for effective and

timely implementation of the National Dairy Plan.

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Training on the use of the ration balancing software was conducted for two batches to

ensure effective implementation of training programmes, training capabilities of trainers

within NDDB were assessed. Training programmes on “Lead Trainer” modules with the

objective of owning training skills were conducted. An initiative to create awareness amongst

the employees of NDDB on the objectives of NDP and its sub-components was taken place in

the form of an interactive workshop.

In addition, training to the milk producers, village resource persons, boards of

directors of milk unions, staff and officers working in cooperative dairies are continuing

across the country to equip them with the latest knowledge and skills and a positive attitude

for achieving the organization’s desired objectives.

Visit to a Primary Cooperative Society: Visit to Sandesar Milk Producers’ Co-operative

Society Ltd., Sandesar (ISO 9001-2008 accredited), Anand, Gujarat on the 23rd August 2013

General Information of Sandesar Milk Cooperative Society as on 31/03/2013

Area of Operation

Entire Sandesar Village

Population 6,950 Local Institutions

Gram Panchayat, Ladies Club, Youth Club, Trihuvandas Foundation Health Centre, Kindergarten, Primary School, Girls and Boys High School

No. of households 1,205 Agriculture land 1,635 acres Pasture land 17 acres Irrigated land (%) 100 Irrigation facility Canal, well with

electric motor, Tubewells

Main crops Wheat, Paddy, Tobacco, Banana

Animal Population

Animal Breed and Numbers Average Fat % Buffalo Surti and Murrah: 545 7.3 Cow Indigenous: 10 Cross bred: 309 4.0

General Information about the Dairy Co-operative Society (DCS) Date of Establishment

07.03.1952 Chairman Shri Chimanbhai Jivabhai Patel

Date of registration 09.04.1952 Secretary Shri Harishbhai Ravjibhai Patel Audit Class A Tel. No. 02692-281624, 281024 Ave. milk procurement lit/day: Total 2,904 Buffalo: 1,049 and Cow: 1,855 Capacity of bulk milk cooler: 2,000 (+) 3,000 = 5,000 lit Society procured around 90% milk of village surplus during 2012-13

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Information about Members of the Society Total members: 935 Men: 868 Women : 67 Landless farmers: 258 Possessing upto 2 hectare: 522 above 2 hectare: 155

Contribution towards Community Development Works by DCS (Figures are in cumulative) Sl. No. Particulars Amount

(Rs.) 01 Construction of Educational Institutions 98,306 02 Charotar Education Trust 2,578 03 Sweets and Prizes to children 70,204 04 Contribution to water works 14,923 05 Gram Panchayat 19,527 06 Darbar Gopaldas TB Hospital 5,307 07 Flood Relief 4,501 08 Sardar Patel Medical Trust 5,502 09 Panchvait, Garden Development 50,000 10 Tribhuvandas Foundation 1,04,500 11 Contribution for cattle health, insurance etc. 1,30,561 12 Productivity Enhancement 52,449 13 Construction of Cattle Mangers 3,920 14 Indian Army Kargil Fund 5,001 Total 5,67,279

Business of the Society at a Glance Year Members Paid up

Share Reserve Fund

Milk Purchase Net Profit

(no.) (Rs.) (Rs.) (in lits.) (in. Rs.) (in. Rs.) 1952-53 197 2,425 435 1,25,753 66,558 10,456 2002-03 872 8,680 7,32,273 4,10,721 40,56,324 72,172 2007-08 907 10,430 7,90,882 10,08,535 1,52,66,359 1,38,714 2008-09 907 10,430 8,28,778 10,59,167 1,62,85,550 1,81,273 2009-10 935 10,710 8,74,124 11,05,739 1,84,24,332 1,88,516 2010-11 935 10,710 9,21,253 10,11,322 2,00,06,047 74,464 2011-12 935 10,710 9,47,869 10,16,009 2,38,94,264 2,92,615 2012-13 936 10,710 10,21,665 10,60,622 2,66,38,935 1,72,723

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Year Price

Difference & Bonus Paid to Members (In Rs.)

Average Bonus + Price Difference Paid to Members/lit. (In Rs.)

Ave. Return per Liter to Milk Producers including Price Difference (In Rs.)

Sale of Cattle Feed (In 70 kg. bags)

BM+CM - 1952-53 5,659 0.04 0.57 - 2002-03 6,49,011 1.58 11.45 3,430 2007-08 33,58,594 3.33 15.81 7,254 2008-09 40,71,387 3.84 18.48 7,609 2009-10 49,74,579 4.49 19.21 8,066 2010-11 60,01,814 5.93 21.16 7,310 2011-12 66,90,393 6.58 Buffalo Cow 25.71 8,223 2012-13 74,58,901 7,03 39.69 27.89 30.10 8,532

Animal Husbandry Activities Year AI Performed

(no.) Animals Examined for PD

Animals Found Pregnant

Results in % (Animals Pregnant/Animals Examined for Pregnancy)

First Aid

B C B C B C B C 1952-63 600 - - - 181 - 2002-03 1492 494 331 99 146 57 44 57 550 2007-08 1,287 403 313 104 228 86 72 82 894 2008-09 1,093 598 332 216 264 198 79 91 423 2009-10 1,012 624 368 182 305 171 82 93 421 2010-11 954 540 307 181 254 169 83 93 460 2011-12 1,004 611 351 203 297 194 84 95 405 2012-13 1,054 660 334 210 284 201 85 95 434

Artificiel Insémination (AI) Charges: Rs. 10 per animal Emergency visits of veterinary doctor the year 2012-13: 1,450 Emergency visit charge@ Rs. 60 per visit, subsidy from DCS Rs. 20/- Activities of Tribhuvandas Foundation during 2012-13

Patients treated: 1,235 Pregnant ladies treated: 141 Source: Sandesar Milk Cooperative Society, 2013

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Picture-4: Study Team Visiting Sandesar Milk Producers’ Co-operative Society Ltd. (Primary Society), Sandesar, Anand, Gujarat on 23 August 2013

D. Mother Dairy

a. Introduction: The team visited Mother Dairy, Delhi on 20 August 2013 at 10 am. The

programme was consisted of short briefings and guided visits to different sections of Mother

India. Mr. Umesh K. Chopra, Senior General Manager and Mr. Jagdish Rao, Chief Operation

Officer of Mother Dairy coordinated the visit to Mother Dairy. Mother Dairy was set up in

1974 which is wholly owned subsidiary of the National Dairy Development Board (NDDB)

of India. It is one of the best companies which is operating for commercial purposes. It offers

the products like Mother Dairy Double Toned Milk which is marketed in Delhi. Liquid Milk,

Ice Creams, Flavored Milk, Dahi, Lassi, Mishti Dahi, Ghee, White Butter, Table Butter,

Cheese, UHT Milk, Dhara Range of Edible Oils, Fresh Fruits and Vegetables all over the

country. In addition, two yogurts/dahis are marketed by Mother Dairy in Delhi. It also

involves in marketing of frozen vegetables and fruit juices at a national level through its sales

and distribution networks.

Mother Dairy Milk (bulk vended) is fortified with vitamin A with 2000 IU per liter as

social accountability. This programme started with the Mother Dairy, Delhi, in February

1980. Thereafter the dairy continues this programme on their own without having any

financial assistance from the government since it is felt that Bulk Vended Milk (BVM) is

generally consumed by the middle lower middle and poor class population. It is found that

the dietary practices adopted by these classes are deficient in Vitamin A. Mother Dairy

sources major part of its requirement of liquid milk from dairy cooperatives.

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Mother Dairy purchases fruits and vegetables from farmers and growers associations.

It also maintains contacts with oilseeds grower cooperatives that manufacture and pack the

Dhara range of edible oils by undertaking to nationally market all Dhara products. Mother

Dairy markets approximately 4.8 million liters of milk daily in the markets of Delhi,

Mumbai, Saurashtra and Hyderabad. They have a market share of 66% in the branded sector

in Delhi where it sells 2.3 million liters of milk daily and undertakes its marketing operations

through around 14,000 retail outlets and 845 exclusive outlets. As on April 2013, the Mother

Dairy commands 71% and Amul commands 29% of market in Delhi.

The company’s derives significant competitive advantage from its unique distribution

network of bulk vending booths, retail outlets and mobile units. Mother Dairy ice creams

launched in 1995 have shown continuous growth over the years and today boasts of

approximately 62% market share in Delhi. Mother Dairy manufactures and markets a wide

range of dairy products that include butter, dahi, ghee, cheese, Ultra High Temperature

(UHT) milk, lassi and flavored milk. Most of these products are available across the country.

The company markets an array of fresh and frozen fruit and vegetable products under

the brand name SAFAL through a chain of 400+ fruit and vegetable shops and more than

20,000 retail outlets. Fresh produce is handled at the company’s modern distribution facility

in Delhi with an annual capacity of 200,000 MT. An Individually Quick Frozen (IQF) facility

with capacity of around 75 MT per day is also operational in Delhi. A fruit processing plant

with a handling capacity of 120 MT per day, a 100% Export Oriented Unit (EOU) was set up

in 1996 at Mumbai aiming at supplying of quality products in the international market. To

meet the increasing demand another processing plant has been set up at Bangalore with fruit

handling capacity of around 250 MT per day.

b. Development of Mother Dairy: The Mother Diary lights up millions of farmers’ to live

with prosperity and self reliance. Everyday it procures and markets over three million liters of

milk. Mother Diary is one of the largest liquid Milk Company in Asia. It started its operations

in 1974 under the Operation Flood Programme of the National Diary Development Board.

Mother Dairy collects required liquid milk from diary co-operatives and producer institutions.

Mother Dairy sells more than 29 lakh litres of milk per day, out of which about 11 lakh litres

of milk is sold as bulk vended milk and another 18 lakh litres of milk is sold in poly pack in

five different variants in Delhi. Apart form Delhi, Mother Dairy markets its Poly pack milk in

Gujrat, Andhra Pardesh, Maharashtra, Western UP and Haryana.

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Picture-5: Mr. Umesh K. Chopra, Senior General Manager, Mother Dairy, Delhi Presenting the Activities of the Organization on 20 August 2013

c. Procurement of Milk: Mother Dairy collects major part of fresh milk from state co-

operatives and New Generation Co-operatives (NGC). Milk received from individual

producer is checked through all basic quality parameters. Milk is then supplied to the Dairy

units through insulated milk tankers at< 4 deg C through road and rail tankers and thus,

retaining the freshness of milk. All milk received at diary units undergoes more than 15

stringent Quality checks before its processing. These include organoleptic (Taste, Odor and

Appearance), Physico-chemical (e.g. Temperature, Foreign matter, % Fat, % SNF, %

Acidity, % Protein etc.), microbiological tests. It also carries out tests for identifying presence

of any adulterations in milk (e.g. Formalin, Urea, Starch, Sugar, Glucose, Maltodextrin,

Nitrate, Salt, Hydrogen Per- oxide, Neutralizer, Ammonium Compounds and Fat

Adulterations).

Mother Dairy by principal (a) Ensures milk producers and farmers receive regularly

and continually receive remunerative prices; and (b) Uphold institutional structures that

empower milk procurement.

d. Processing of Milk: Processing of milk is done through microprocessor technology which

integrates and completely automates all functions of milk processing and ensures high

product quality, reliability and safety. The various stages of milk processing are given below:

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i) Clarification: The chilled milk from the silos and after heating goes to the clarifier. The

clarifier spins the milk at very high speed, removing all dust particles that tare invisible to the

naked eye.

ii) Standardization: Milk from different breeds of cows and buffaloes may vary in its

composition. Hence, to make uniform in composition, before supply to the market, it is

standardized by raising or lowering its fat and SNF percentage present in the milk to a desire

level, so as to delivery the milk to consumers as per prescribed forms.

iii) Homogenization: In this process, the milk is processed at a very high pressure during

which the large fat globules present in milk are broken down into tiny droplets. The milk fat

gets evenly distributed in the milk and milk become whiter and thicker. Milk is homogenized

for consumers who do not like cream layer on top. Homogenization improves palatability of

milk and is easily digestible.

iv) Pasteurization: This involves heating the milk at 72 degree Celsius for 15 seconds and

then rapidly cooling it down to 4 degree Celsius. This process kills all the pathogenic bacteria

present in the milk and making milk safe for consumption. Pasteurization unlike boiling does

not affect the nutritional value of the milk.

v) Distribution of Milk: After processing, milk dispatched in hygienic and sterilized milk

tankers or packed in food grade material and transported under cold chain to the nearest milk

shops. Everyday as part of quality assurance process, milk samples are collected from milk

shops randomly and are tested. The above processes help maintaining stringent quality

control standards, in order to ensure that the milk sells is fresh, pure and healthy.

After dispatching, it is important to keep a note of its availability. Company’s milk

tanker is fitted with a wireless set or GPS. This helps in close monitoring of milk distribution.

The Control Room monitors the efficient distribution of milk to all the retail outlets across

the city. It organizes the tanker routes so that shops do not run out of milk. As soon as the

person in the Control Room informs that a shop is running out of milk, he or she contacts the

tanker nearest to the shop on wireless which then delivers the milk to the shop.

e) Distribution Formats for Brining Mother Dairy Closer to Home

i) Milk Shops: Milk shops are spread across the length and breadth of city, where the Mother

Dairy Booths are very familiar landmarks of any neighbour. With fresh supply of milk and

other products, these booths ensure nutrition needs for the city dwellers.

ii) Franchise Shops: These Franchise Shops are a boon to customers specially

conceptualized to reach previously untapped areas.

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iii) Kiosks: A recent innovation, these kiosks cater to a specific area such as housing

societies etc. With the purest milk readily available all the time.

iv) Insulated Containers: These extremely low-cost containers are operated by private

retailers which can store upto 600 liters of milk in one container.

v) Container-on-wheels: Container-on-wheels or simply `Cow’ is the mobile solutions of

availability of milk. It also presents the economically weaker section of the society a viable

source of income.

vi) Bulk Vended Milk/Token Milk: Mother Diary Bulk Vended Token Milk is healthy and

tasty. It is thicker and easier to digest. It is fortified with Vitamin A.

vii) Poly Pack Milk: Packaging of milk has undergone remarkable innovations in the past

few decades. Tamper proof, hygienic and labeled pouches/packs have replaced the traditional

bottle. These innovative methods of packaging milk have rendered it free from adulteration

and tampering and have also made it possible to provide consumers with different variants of

milk labeled and color coded to their requirements.

viii) Full Cream Milk: Mother Dairy full cream milk-wholesome and healthy packed with

energy and nutrition that’s essential for growing kids. It makes them stronger form within and

keeps children actives and healthy.

ix) Standardized Milk: Mother Dairy Standardized Milk is tasty and malaidar as it has

balanced amount of cream at affordable price.

x) Toned Milk: Mother Dairy Toned Milk is a blend for good health and wholesome taste.

It’s a choice for people in search of a nutritionally balanced diet that does keep with

comprehensive taste.

xi) Doubled Toned Milk: Mother Diary Double Toned Milk is tasty and nutritious and with

low fat content. All calorie conscious people who love the taste of milk but are wary of its

cream content are satisfied with this milk.

xii) Skimmed Milk: In Skimmed Milk fat content is low. But it has all the nutrients of Milk.

E. Amul

a. Introduction: The study team visited the head office of famous “Amul” in Anand on 22

August 2013 at 2:30 pm. Mr. S. S. Sundaran, Senior Executive (Public Relations), Amul

provided briefings on Amul followed by visits to different sections of Amul.

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Amul is an Indian dairy cooperative in Anand district of Gujarat, India. The co-

operative is sometimes referred to as Anand Milk Union Limited. It was established in 1946.

It is a brand managed by a cooperative body, the Gujarat Co-operative Milk Marketing

Federation Ltd. (GCMMF), which is jointly owned by 3 million milk producers of Gujarat.

Amul took the main role of India's White Revolution, which made the country the

world's largest producer of milk and milk products. In the process Amul became the largest

food brand in India and has ventured into markets overseas.

Dr Verghese Kurien, founder-chairman of the GCMMF for more than 30 years

(1973–2006), is credited with the success of Amul. Now the organization has 750 employees

and earned revenue of US$2.15 billion in 2011-12.

b. Development of Amul: The Kaira District Co-operative Milk Producers' Union Ltd. was

registered on 1 December 1946 in Anand district of Gujarat as a response to the exploitation

of marginal milk producers by traders or agents of the existing dairy called the Polson dairy.

Milk producers had to travel long distances to deliver milk to Polson. The prices of buffalo

and cow milk were arbitrarily determined. Moreover, the government had given monopoly

rights to Polson to collect milk from Anand and supply it to Bombay city.

Angered by the unfair trade practices, the farmers of Kaira approached Sardar

Vallabhbhai Patel under the leadership of local farmer leader Tribhuvandas K. Patel. He

advised them to form a cooperative and supply milk directly to the Bombay Milk Scheme

instead of Polson (which did the same but gave them low prices). He sent Morarji Desai to

organise the farmers. In 1946, the milk farmers of the area went on a strike which encouraged

them to establish cooperative to collect and process milk. Milk collection was decentralized

as most producers were marginal farmers, who could deliver, 1–2 liters of milk per day.

Cooperatives were formed for each of the villages.

The cooperative was further developed and managed by Dr.Verghese Kurien with

H.M. Dalaya. Dalaya's innovation of making skim milk powder from buffalo milk (for the

first time in the world) and later on, with Kurien's help, drove it on commercial scale, led to

the first modern dairy of the cooperative at Anand, which would compete against established

players in the market.

In June 2013, it was reported that the Kaira District Cooperative Milk Producers

Union Limited (Amul Dairy), had signed a tripartite agreement to start a dairy plant in

Waterloo village in New York. The plant will initially manufacture paneer and ghee. Amul

uses an existing dairy plant owned by Piyush Patel New Jersey-based NRI for manufacturing

of milk products.

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c. Achievement of Amul: The GCMMF is the largest food products marketing organization

in India. It is the apex organization of the dairy cooperatives of Gujarat. Over the last five and

a half decades, dairy cooperatives in Gujarat have created an economic network that links

more than 3.1 million village milk producers with millions of consumers in India. The

cooperatives collect on an average 9.4 million liters of milk per day from their producer

members, more than 70% of whom are small, marginal farmers and landless labourers and

include a sizeable population of tribal folk and people belonging to the scheduled castes. The

turnover of GCMMF (AMUL) during 2010–11 was US$1.5 billion. It markets the products,

which is produced by the district milk unions in 30 dairy plants. The farmers of Gujarat own

the largest dairy plant in Asia — the Mother Dairy, Gujarat — which can handle 3.0 million

liters of milk and process 160 MTs of milk powder in a day.

d. The Three-tier "Amul Model": The Amul Model is a three-tier cooperative structure.

This structure consists of a dairy cooperative society at the village level affiliated to a milk

union at the district level which inturn is federated into a milk federation at the state level.

Milk collection is done at the village dairy society, milk procurement and processing at the

District Milk Union and milk and milk products marketing at the state milk federation. The

structure was evolved at Amul in Gujarat and thereafter replicated all over the country under

the Operation Flood programme. It is known as the ‘Amul Model’ or ‘Anand Pattern’ of

dairy cooperatives.

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Villages Dairy Cooperative Society (VDCS) The main functions of the VDCS are:

• Collection of milk from the producers of the village and pay prices on the basis of quality and quantity;

• Providing support services to the members like veterinary first aid, artificial insemination services, cattle-feed sales, mineral mixture sales, fodder and fodder seed sales, conducting training on animal husbandry and dairying;

• Selling liquid milk for local consumers of the village ; and • Supplying milk to the District Milk Union.

District Cooperative Milk Producer's Union (Dugdh Sangh) The main functions of the union are:

Procurement of milk from the village milking societies of the district; • Arranging transportation of raw milk from the VDCS to the Milk Union; • Providing input services to the producers like veterinary care, artificial

insemination services, cattle-feed sales, mineral mixture sales, fodder and fodder seed sales;

• Conducting training on cooperative development, animal husbandry and dairying for milk producers and conducting skill development and leadership development training for VDCS staff and Management Committee members;

• Providing management support to the VDCS along with supervision of its activities;

• Establish chilling centres and dairy plants for processing the milk received from the villages;

• Selling liquid milk and milk products within the district; • Process milk into milk products as per the requirement of State Marketing

Federation; and • Decide prices of milk to be paid to milk producers as well as the prices of support

services provided to members. State Cooperative Milk Federation (Federation) The main functions of the federation are as follows:

• Marketing of milk and milk products processed/manufactured by Milk Unions; • Establish a distribution network for marketing of milk and milk products; • Arranging transportation of milk and milk products from the Milk Unions to the

market; • Creating and maintaining a brand for marketing of milk & milk products; • Providing support services to the Milk Unions and members like technical inputs,

management support and advisory services; • Pooling surplus milk from the Milk Unions and supplying it to deficit Milk

Unions; • Establish feeder-balancing dairy plants for processing the surplus milk of the Milk

Unions; • Arranging common purchase of raw materials used in manufacture/packaging of

milk products; • Decide on the prices of milk and milk products to be paid to Milk Unions; • Decide on the products to be manufactured at Milk Unions and capacity required

for the same; • Conduct long-term milk production, procurement and processing as well as

marketing planning; • Arranging finance for the Milk Unions and providing them technical know-how; • Designing and providing training in cooperative development and technical and

marketing functions; and • Conflict resolution and keeping the entire structure intact.

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There are now 176 cooperative dairy unions formed by 1,25,000 dairy cooperative

societies with a total membership of about 13 million farmers on the same pattern, who are

processing and marketing milk and milk products profitably. This process has created more

than 190 dairy processing plants spread all over India with large investments by these

farmers’ institutions. These cooperatives collect approximately 23 million kg of milk per day

and pay an aggregate amount of more than Rs.125 billion to the milk producers in a year.

Picture-6: Mr. S. S. Sundaran, Senior Executive (Public Relations), Amul Presenting the Activities of the Organization on 22 August 2013

Impact of the "Amul Model": The effects of Operation Flood Programme are appraised by

the World Bank in an evaluation report. It has been proved that an investment of Rs.

20 billion over 20 years under Operation Flood in the 1970s and 80s has contributed in

increase of India’s milk production by 40 million metric tones (MMTs), i.e., from about

20 MMT pre-Operation Flood to more than 60 MMTs at the end of Operation Flood.

Thus, an incremental return of Rs. 400 billion annually have been generated by an

investment of Rs. 20 billion over 20 years. India’s milk production continues to increase and

now stands at 90 MMTs. Despite this fourfold increase in production, there has not been a

fall in the prices of milk during the period while production has continued to grow.

Due to this movement, the country’s milk production tripled between the years 1971

and 1996. Similarly, the per capita milk consumption doubled from 111 gms per day in 1973

to 222 gm per day in 2000.

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Achievements of GCMMF

� 3.1 million milk producer member families of 15,760 village societies � 15 District Unions � 9.4 million liters of milk procured per day � US$2.3 million- disbursed in cash daily � GCMMF is the largest cooperative business of small producers with an annual

turnover of US$810 million � The government of India has honored Amul with the "Best of all Categories Rajiv

Gandhi National Quality Award". � Largest milk handling capacity in Asia � Largest cold chain network � 48 sales offices, 5000 wholesale distributors, 7 lakh retail outlets � Export to 37 countries worth US$23 million � Winner of APEDA award for eleven consecutive years

Picture-7: Team Members are with Mr. S. S. Sundaran, Senior Executive (Public Relations), Amul at Main Office Building of Amul on 22 August 2013

The Amul Brand: The major markets of Amul are in USA, West Indies, and countries in

Africa, the Gulf Region, and SAARC neighbours, Singapore, The Philippines, Thailand,

Japan and China, and others such as Mauritius, Australia, Hong Kong and a few South

African countries. In 2013, Amul was named the Most Trusted brand in the Food and

Beverages sector in The Brand Trust Report, published by Trust Research Advisory.

Products: Amul's products includes milk powders, milk, butter, ghee, cheese, Misti Dahi,

Yoghurt, Buttermilk, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns,

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flavoured milk, basundi, Amul Pro brand and others. Amul Pro is a recently launched brown

beverage just like bournevita and horlicks offering whey protein, DHA and essential

nutrients. In January 2006, Amul launched India's first sports drink, Stamina, which

competes with Coca Cola's Powerade and Pepsi Co's Gatorade.

Picture-8: Display of Different Milk and Milk Products of Amul at Main Office Building of the Organization

Picture-9: Display of the Commitment of Amul at the Main Office Building of the Organization

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2.2 Dairy Development Performance in Bangladesh

The opportunity for development of large-scale dairy is limited in Bangladesh due to

scarcity of grazing land. However, the potential for development of smallholder dairy is high.

Over the last few years, small-scale dairy farming has increased remarkably with the support

of credit, feed, veterinary services and provision of self-insurance systems.

Small-scale dairy farming provides employment for the poorer segments of the

population. The availability of this form of traditional self-employment to rural dwellers,

particularly women, is important where there is scarcity of alternative income generating

opportunities. Smallholder dairy thus widens the scope for the poor with limited access to

land to enhance their income. Dairy animals can play a vital role in household food security,

through improved income and nutrition of the low-income groups.

Daily farming in Bangladesh is affected by huge constraints such as: (i) limited

knowledge and technical skills of smallholder dairy farmers, (ii) scarcity of feeds and fodder;

(iii) poor quality of feeds, (iv) frequent occurrence of diseases, (v) limited coverage of

veterinary services including poor diagnostic facilities, (vi) lack of credit support, (vii)

limited milk collection and processing facilities and low prices at collection points, (viii) lack

of insurance coverage, (ix) poor marketing system, (x) absence of market information, (xi)

lack of appropriate breeds, and (xii) absence of a regulatory body.

A. Milk Vita

a. Background of Bangladesh Milk producers’ Co-operative Union Limited: In 1946,

Late M. Mukhlesur Rahman, Pioneer of Dairying in Bangladesh established a Dairy Plant

with a capacity of 2,000 liters per day at Lahirimohanpur, Pabna (presently Sirajgong) with

the target to send milk products to Calcutta (India) market, which was within the easy rail

communication system. Eastern Milk Products Limited purchased this dairy in 1952 from the

original owner. In 1965, the first milk producers’ co-operative was formed entitled Eastern

Milk Producers’ Co-operative Union Limited (EMPCUL) through Government patronization

over the plant at Lahirimohanpur, which had taken specially step (1973-1978) by The Father

of nation Bangobandhu Sheikh Mujibur Rahman for the poverty alleviation and to enhance

the milk production in the country.

Bangladesh Milk Producers' Co-operative Union Ltd. popularly known by its brand

name Milk Vita was established by the Bangladesh Government in 1973. The Head Office

named “Dugdha Bhaban” of the organization. Milk Vita is a service oriented as well as

commercial organization. It is the biggest and only one co-operative based milk industry in

35

Bangladesh. Following the co-operative's acts and rules it is led by itself. It’s a profitable

organization. In spite of various limitations it is trying hard to gain self sufficiency in the

dairy sector.

Establishment of plants under Milk Vita included milk and milk product processing,

milk chilling, pasteurization of different capacities in five different locations during 1978-

1989. These places were in Dhaka (Mirpur), Tangail, Manikgonj, Madaripur (Takerhat) and

Sirajgonj (Baghabari).

Remarkable development of Milk Vita took place during 1989-2008 when 30 (thirty)

plants on different milk processing units like milk chilling, powder processing,

pasteurization, chocolate, flavour milk, condensed milk and UHT liquid milk were

established in 30 locations of the country. Twenty three out of these 30 plants were milk

chilling plants. Capacities of these milk chilling units were mainly 5000 litters and 1000 liters

per day (detailed in annexure-1).

b. Present Development: After the emergence of Bangladesh, based on the

recommendations from DANIDA and UNDP/FAO, a development scheme titled “Co-

operative Dairy Complex’, under the pattern of AMUL, India, was initiated by the

Government of the People’s Republic of Bangladesh. The scheme had the proposal of

establishing dairy plants in the milk surplus areas already identified which are Pabna,

Tangail, Manikgonj, and Faridpur. The Government started implementation of the

programme in its First Five Year Plan (1973-78). The plants were to operate through

collection of milk by a network of milk producers co-operative societies in milk-shed areas.

The project envisages the purchase of milk from individual farmer members of the primary

milk producers’ societies, twice daily, transport of this milk to rural dairy plants of Tangail,

Manikgonj and Faridpur by a combination of various methods of transportation. After

preliminary processing at the rural plants, milk is to be transported to Dhaka in insulated road

milk tankers for processing, packaging and marketing of pasteurized Liquid Milk and Milk

Products. Milk collected at the Baghabrighat plant from it’s surrounding societies is

converted into Butter, Power Milk and Ghee etc. All the products however, are to be

marketed through Dhaka Marketing Unit under the brand name of Milk Vita.

Under a bilateral loan agreement with DANIDA, the Government awarded a contract

to Danish Turnkey Dairies (DTD) of Denmark to plan, design and equip 5 dairy plants on a

Turnkey basis. The total investment cost for the project amounts to Tk.1556.11 lakh out of

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which Tk. 610.42 lakh is the foreign exchange component received as loan through Danish

Government source.

DTD supplied the machineries and completed the erection job including planning,

designing and supervision of all the five plants during the period from September 1975 to

December 1977.

The dairy plants were owned and operated by the Eastern Milk Producers’ Co-

operative Union Limited along with the other two existing dairies. The nomenclature of the

organization was changed to Bangladesh Milk Producers’ Co-operative Union Limited in

1977 keeping its brand name of products the same-Milk Vita.

c. Information of Cooperative: A Village Milk Producers’ Co-operative Society consists of

three or four villages and covers an area of approximately 1.00 to 2.00 sq miles having a

marketable surplus of 180-200 liters of milk daily. Before the Primary Milk Producers’ Co-

operative Society was formed, farmers had to depend on middlemen to market their milk and

as a result they were exploited in various ways, not only were they paid a low price but were

also cheated in weight. Moreover, those farmers who did not sell their milk to middlemen,

the only other outlet for them was the local market to sell their milk at a low price.

To reverse these conditions, the Bangladesh Milk Producers’ Co-operative Union Ltd.

has come up for helping the rural Milk Producers’ in organizing their own village Primary

Milk Producers’ Co-operative Society so that they can themselves become responsible for

marketing their own milk, twice daily, and no longer have to depend upon middlemen or

markets. Organization and the registration of the Milk Producer’s Co-operative Societies

commenced from October 1973 and their functioning started since 01 February 1974.

Out of those, who are registered members of Milk Producers’ Co-operative Society on

the 30th June each year, this being the end of every three financial year, a Managing

Committee is elected at the Annual General Meeting of the Society. This Managing

Committee is responsible for the administration of the Co-operative Society and work in an

honorary with capacity under the co-operative bye-laws. To become a member, a farmer has

to own a cow and has to buy a share of Tk 100 and pay an admission fee of Tk.10 only, face

value of share Tk. 2,000 each, which is belong to primary society. In every financial year

distribution of dividend of the society is done as per share on its profit certificates. Share of

profit is also paid to the Government of Bangladesh as equity. At present governments’

equity is Tk. 415 million and farmers’ equity is Tk. 180 million.

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d. Services of Milk Vita: Services provide to the Cooperators include i) Cattle Treatment,

ii) Cattle Development and management training, iii) Co-operative Management training, iv)

Balanced Cattle Feed supply services, v) Micro-Credit, vi) Vaccination, vii) Green Grass

Cutting and seeds of grass, viii) Artificial Insemination, ix) Higher milk price at the farmer

level, and x) Guaranteed market of milk.

e. Activities of Milk Vita: The co-operative dairy complex has succeeded in bringing

together over 2,00,000 farming households into the fold of 1705 village milk producers’ co-

operative societies covering about 21 district in 28 milk-shed areas. As a highly perishable

commodity it has provided cash income of about Tk.10,000 per household per annum

benefiting about 10,00,000 members of these households. In addition to cash income from

sale of milk, the members of primary milk producers’ co-operative societies are getting

patronage dividend of the profit earned by these societies.

The infrastructure of the producers’ owned co-operative is not so limited to milk

purchase only from the farmers, but it also provides an institutional base at the village level

for active farmer participation in a number of other development activities, particularly for

erective improvement of cattle and raising milk production in the country ensuring the

subsidiary income of poor, landless and marginal farmers. During the last few years, the

organization collected 325 million liters of milk from the rural areas which resulting cash

flow of almost Taka 9,750 million from urban cities to the rural farmers. Total milk

production of the country is approximately 27 lakh tons of which BMPCUL handles only 2%

annually.

Extension activities contributed tremendously in the upliftment of the primary milk

producers’ co-operative societies. This has provided additional income of about Tk. 10,000 to

each of the members. The milk producing farmers have got the opportunity to build-up their

share-capital and thus they accumulated Tk.180 million. The job opportunity of about 6,000

persons has been created through society business activities. So far more then 1,000 numbers

of societies have established their own office houses.

The green fodder cultivation and use of those for the cattle have been well accepted

by the farmers. The cultivation of napier, para, EPIL-EPIL, cow-pea etc. at the premises of

the farmer’s homesteads and at the barren land like highway side, embankment areas have

become a common practice now. The organization has also arranged leasing of the Bathan

lands 800 acres from the Government to the milk producing farmers to facilitate the cattle

38

grazing and cattle feed production. Training programmes for the field level workers on

Artificial Insemination are conducted on regular basis.

f) Milk and Milk Products: It includes: i) Pasteurized Milk, ii) Fresh Milk, iii) Flavored

Milk, iv) Full Cream Milk Powder, Milk Vita Chocolate, v) Condense Milk, vi) Milk Vita

Cream, vii) Milk Vita Sweet Curd, viii) Milk Vita Rosh Malai, x) Milk Vita Ice-Cream, xi)

Milk Vita Lollys, and xii) UHT Milk.

g. Marketing: The ever expanding city of Dhaka used to get 2.00 to 2.50 lakh liters of milk

vita liquid milk per day which was only early 3000-4000 liters at the time of establishment of

this project. It is hoped that within the next couple of years the organization will be able to

market its capacity quantity of 4.00 lakh liters per day along with substantial quantities of

milk products. The other milk products like Butter, Ghee, Ice-cream, Flavoured Milk, Powder

Milk, Condensed Milk, UHT Milk etc. are supplied regularly in Dhaka as well as in some

other cities. New avenues of marketing with new products are also being explored to

strengthen the marketing operation.

h. Services for the Farmers: Milk Vita plays a very important role in the economic

development of milk producing farmers through purchase of milk from them and assuring

timely payment. The organization has recently started experimentation on investment of

micro credit to the farmers. To facilitate purchase of cattle by poor members of the

organization, loans are being sanctioned on easy terms. BMPCUL has invested so far an

amount of about 100 million Taka as loan with 5% service charge and repayment of the same

with installments are ensured through weekly deduction from the milk bill to release the

financial pressure of the farmers. This has assured 100% recovery of loans.

The loans are `Recycled’ along with new additions to the fund resulting in increase of

the number of recipients each year. This credit facility has made a commendable impact in

the process of milk production and as such the demands for the loans are increasing by the

poor farmers.

i) Development of Milk Productions: The success of Milk Vita leads in expanding in the

organization to plan for widening its activities further with the addition a number of facilities.

These expansions include immediate and long term issues such as i) Establishment of a

number of Milk Chilling and plants throughout the Country, ii) Cattle Breed Development

through Technology Transfer (Embryo-transfer), iii) Acquisition of bathan land from the

government for permanent use as grazing land by the milk producer farmers, iv)

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Establishment of a cattle feed plant, v) Replication of the project in other areas of the country,

especially in the divisional; head quarters, such as Chittagong, Khulna and Rajshahi, vi)

Establishment of Disease Diagnostic Laboratory and Artificial Insemination Technology

Transfer for Milk Production Increase, vii) Establishment of Bio- Gas Plant at Village level

for Poverty Alleviation of the Country, viii) Small Cooling Unit (Capacity 500 to 1000

Liters) at Village level for milk collection of Farmers, ix) Mobile Cooling Tankers Unit

(Capacity 5,000 to 10,000 Liters) at Village level for milk collection from the farmer, and x)

Training Assistance to Human Resources Development for capacity building in the milk

production sector.

B. Pran Dairy1

The new trend of directly selling to a chilling centre has gained popularity over the

past year after Pran established 20 chilling centers in 20 villages of Chatmohor Upazila of

Pabna district with a vision to revolutionize milk production in an initiative of Bangladesh.

Dubbed as Pran Dairy Hub, the initiative of setting up collection points to encourage cattle

farming and boost milk output has already started bearing fruit.

Milk collection by Pran has doubled in just one year of establishment of chilling

centers by the processor near the farmers has also created a new zeal for cattle farming. Many

farmers have started buying cows and the existing producers seem keen to expand.

For example, Pramanik and Zahidul signed up in cattle farming after Pran set up

collection centres in their village. Ishak of nearby Bhadra area increased the size of his farm,

while another farmer Mohammad Asaduzzaman changed his decision to quit farming.

The timely initiative of Pran comes when Bangladesh suffers from a shortfall of

domestic milk production due to low productivity per cow of 200-250 litres during a 10-

month lactation period.

Industry analysts linked low milk yield to a slow pace in replacement of local cows

with the genetically improved ones, a lack of breeding and veterinary services and inadequate

investment in feed and fodder development. In the past decade, production of milk has

increased gradually every year because of efforts of farmers and processors to feed the

growing demand for milk promotes to economic growth and rise in people's per capita

income.

During the fiscal 2009-10, domestic production of milk grew 32 percent to 2.36

million tones (2,360 million liters) from 1.78 million tones in 2001-02 according to

1 prepared on the basis of the news of the Daily Star on 08 September 2013

40

Department of Livestock Services (DLS). Still a huge deficit still forces Bangladesh to import

thousands of tones of milk powder every year. In the fiscal 2009-10, total milk shortfall was

10.96 million tones, according to DLS.

To reduce the deficit in local milk production, Pran began to organise farmers and set

up collection centers in villages of Chatmohar in the middle of last year under its initiative of

establishing dairy hubs.

De Laval and Tetra Pak, which have technical know how and technology on milk

production and processing, extended support to Pran. In line with the target, the processor

started providing various extension services to farmers including veterinary care, animal

husbandry, dairy housing, quality feed and breed improvement through artificial insemination

(AI).

Pran workers give tips to farmers on better housing and feeding management of cows

free of cost. It includes keeping cows untied, ensuring light and passage of wind through the

shed, always keeping the water jar full to allow cows a drink anytime. Other services include

de-worming and periodical vaccination by maintaining health cards for each cow in its

intervention area. Pran also provides balanced feed prepared at its factory at cost price to

support farmers to get proper feed for cows along with seeds of fodder and training to prepare

silage to feed cattle in rainy days.

By importing semen from the US, it also gives AI services to farmers at a cost price

with the aim to improve existing breeds of cows to scale up milk yield. In addition,

establishment of chilling centers at farmers' doorsteps has cut dominance of middlemen in

milk collection allowing producers to get better prices.

Pran's support has helped boost farmers' income by increasing milk production per

cow and thus boosted its milk collection from the area 17,000 liters daily which was 8,000

liters before. With the successes at Chatmohar, Pran now plans to set up similar dairy hubs all

over the country with the vision of making Bangladesh a milk surplus country by 2020. Pran,

is now processing 100,000 liters of milk daily, wants to establish 60 dairy hubs. A second

hub has already been set up at Gurudaspur of Natore, another northern district. The third and

fourth are likely to be set up in Rangpur and Sirajganj districts. All the hubs will see

replication of Chatmohar model where full time veterinary doctors, extension workers along

with field supervisors and 20 chilling centers will be accessible by local dairy farmers.

"Cattle farming also offer scope of producing biogas and bio-fertilizer. From cow dung, skin

and hide to meat all are useful which makes dairy a profitable investment."

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The Chief Executive Officer of Pran- RFL Group Amjad Khan Chowdhury said Pran

invests crores of Taka in establishing dairy hubs as part of its responsibility to the nation.

Yes, it (dairy hub) is going to take my money. But once it starts, it will fly," said Chowdhury,

who dreams of turning Bangladesh into a milk surplus country. "This sector is highly

neglected although its development is very much needed for Bangladesh.

C. Aarong Milk

BRAC Dairy was launched in 1998 to assist members of Village Organisations (VO),

who borrow to invest in cows. A huge amount of microfinance loans are being used to buy

livestock, which can pose high risks for borrowers owing to poor breeding, limited veterinary

services and shortages in cow feed. Aarong Dairy and Food Project provides a market to

members of the VOs by buying milk from them at a fair price, and ensures a constant and

steady demand and good return for the milk being produced by these rural entrepreneurs.

Today, BRAC Dairy not only secures fair prices for its rural entrepreneurs, but has

also expanded to offer cattle development and technical training, vaccinations and feed

cultivation facilities. BRAC Dairy collects milk from 100 collection and chilling stations

located across the country including 10 that are located in ultra-poor areas. BRAC Dairy is

currently the only dairy company in Bangladesh to have received ISO 22000 Certification,

setting an example of vigilance at every stage of dairy production, processing, and

distribution contributing to dairy products’ safety record.

The enterprise collects 102,559 litres milk daily and serves 40,000 farmers of which

64% are women. BRAC Dairy has 23 Distributors and 37 Sales centres nationwide, covering

16,000 outlets out of 23,000 and enjoying an overall market share of 22% with a dedicated

consumer base of around 500,000. More than 2 packets of Aarong Milk (a BRAC Dairy

product) every second 25 July 2011, Dhaka Aarong Milk has now achieved the International

benchmark of quality by getting the ISO 22000: 2005 certification for food safety

management.

Aarong Milk was first marketed in 1998 by BRAC Dairy - a dairy social enterprise

development organization of BRAC, to help poor rural dairy farmers protect and grow their

dairy enterprises and improve their household’s income by facilitating access to urban

markets. Inspired by this purpose, Aarong Milk has worked to build a brand that is as true to

its urban consumers as it is to rural suppliers, providing dairy products of impeccable quality

that drive its vision of a healthy and strong Bangladesh. As a part of its’ quality commitment,

Aarong Milk has ISO 22000 certification to strengthen the consumer’s confidence.

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3. Discussions on Development Issues for Milk and Milk Products

3.1 India: India is the largest producer of milk with a production of 128 Million Tones

(MTs). The growth rate of milk production was much higher than the same for rice during the

last 5 decades. The rice production of India was 39.3 MTs in 1964-65 which increased to 100

MTs in 2012-13. In the same period the milk production was increased from 17 MTs to 128

MTs. Milk has the highest contribution to livestock output (70-73%). The cattle, buffalo,

sheep and goat population in India were 199.07, 105.34, 74 and 144 millions respectively in

2007-08. Among the cattle population cross breed constituted 16.6 percent in 2007-08. Rest

83.4 percent of cattle was indigenous. This huge population of indigenous cattle and buffalo

cow and goat are considered as huge untapped resources for milk production through genetic

development in future.

In 2010-11, the growth rate in milk production was 5 percent which in nearly 3.5-4

times higher than world average growth rate of the same. The investment in milk production

is relatively very low in India. It is to be noted that about 70% percent of milk produced here

by marginal and small farmers having 2-4 animals. Although the total production of milk in

the highest in India, still the productively of milk of cattle in India is low. The average

productivity of milch cow in India is 2012 Kg per year whereas the same with respect to

world average is 2,200 Kg per year. So, this potential is needed to be explored through policy

formulation, research and development and implementation of national dairy development

plan through effective participation of different stakeholders. The projected total milk

production of India is estimated as 142.9 MTs in 2015 and 191.3 MT in 2020. An estimate

shows that in 2009-10, the total milk production of India was 112.5 MTs of which buffalo

milk constitutes 53.37 percent, cattle 43.11 percent and goat 3.52 percent. It is to be noted

that out of 43.11 percent cattle milk, cross breed (16.6 percent) contributed 22.86 percent of

total milk and indigenous cattle breed (83.4 percent) contributed rest 20.25 percent of total

milk.

The milk processing scenario of the country shows that 65-70 percent of the milk

produced consumes as fresh liquid milk. Milk use for processing into different milk products

covers 34 percent. Dairy cooperative procures only 7.2 percent of the total milk production.

Quality semen production for cross breeding with native cattle is considered as one of

the most crucial needs for breed development as well as milk production. In 2009-10 44.6

million doses of semen were produced in 61 centers. Out of these 61 centers, government

owned 37 and rest 24 were owned by private sector. Participation of private sector in semen

43

development creates a unique environment for cattle development in India. There are 143 and

41 Frozen Semen Banks in Public and private sectors respectively in the country. In addition,

there are 49,375 and 17,673 AI centers in public and private sectors respectively. Similarly,

Cattle Breeding Farms (141 and 29), Buffalo Breeding Farms (23 and 6) and Bull Semen

Stations (42 and 13) were addressed by both public and public sector. All these activities are

the outputs of combined efforts of public, private and cooperative sectors. Research and

development efforts are considered as the driving force for the huge development of milk and

milk products. National Livestock Development Policy, NDDB, NDRI and related

organizations provide continuous efforts to mobilize and motive and provide supports to

different stakes to materialize the goal of “White Revolution”.

Strengths and Weaknesses of Diary Sector in India: It is realized that the dairy sector of

India could create a comprehensive and friendly milk production environment in different

states of India. India has become the largest milk producer country and it could ensure

constant and sustainable growth in milk production despite of comparatively limited

investment from public and private sectors. The country has mega biodiversity and huge

bovine population. The production cost of milk is comparatively low in India, which actually

the driving motivating force of huge small and marginal farmers with their 2-4 cattle each in

most cases. Provide competitive prices of milk to all small producers of milk for longer time.

The well coordinated network of milk collection and marketing keep farmers’ produces

market driven. The country has huge untapped milk resources both in cattle and buffalo to

explore in future. Because until now only about 17 percent cattle could develop through cross

breeding and even this 17 percent could produce more milk in bulk compared to milk

produced by rest of the 83 percent indigenous breed of the country. All theses advantages are

utilized through well plan with comprehensive policy and commitment of all concerned.

There are also a number of weaknesses in dairy sector of India. Among these low

productivity of indigenous breed, higher lean-flush ratio, regional imbalance in production

and little control over quality milk production are prominent. In addition, inadequate cold

chain facilities with respect to huge need, shortage of feed and fodder, continuous reduction

of fodder area, low capacity in processing and late sexual maturity of dairy animals are

notable in this regard as the future challenges of the country.

44

3.2 Bangladesh: Dairying is a labour intensive practice and requires less land unlike crop

and fish cultivation. In a small diary farm with two lactating cows create 4,080 hours of

labour force in a year. Moreover, non-farm activities like trading feeds and forages, breeding

materials, farm equipment, milk carrying etc. generate substantial amount of income in the

rural community.

Small-scale dairy farming provides employment for the poorer segments of the

population. The availability of this form of traditional self-employment to rural dwellers,

particularly women, is important where there exists scarcity of alternative income generating

opportunities. Smallholder dairy thus widens the scope for the poor with limited access to land to

enhance their income. Dairy animals can play a crucial role in household food security through

improved income and nutrition of the low-income groups.

Liberalization and market reforms in the 1990s along with increasing demand for milk

and milk products accompanying per capita income growth and urbanization and

improvements of infrastructures have created huge gap between actual milk production and

milk requirements of the country.

A few initiatives in the past like Milk Vita, Aarong and Pran have made remarkable

success in Bangladesh. The diary industry at present in Bangladesh faces complex challenges,

which could be prevented it taking advantages of emerging opportunities. Coordination

among actors in the value chains starting from milk productions to marketing the milk and

milk products (farmers, traders, processor and service providers) are very weak. These chains

tend to be very long and crate a significant degree of mistrust among the stakes ultimately

enhancing the cost and loss its competitiveness in the market. Primary producers in

Bangladesh only get about 50% of the consumers prices whereas Indian producers get 74% of

the consumer’s price. So, modernizations in terms of breed development and scientific

management with effective participation of stakes are essential in milk chains. It is

experienced that little importance has given to quality control and standard of milk of

different producers in the value chain. There are institutes for quality control and ensuring

standards of milk but their activities are not always visible.

The opportunity for large-scale development of dairy is limited in Bangladesh due to high

price of livestock feed and scarcity of grazing land. But there is potentiality for development of

smallholders of dairy farming. Small-scale dairy farming has increased significantly with the

support of credit, feed, veterinary services and provision of self-insurance systems over the last

few years. But still required favorable conditions for small holder cannot be created in the sector

for a number of practical reasons. The following case can give an idea in this regard.

45

Cost Benefit of Milk Producing Farm: “Tanmoy Dairy Farm” is situated in Baharampur village under Laxmikunda union of Ishwardi Sadar Upazila. The farm was established in 1994. There are 50 milking cows and 20 female and 12 male calves. All these animals of the farm are cross variety. Each of the milking cows of the farm gives from 15 to 27 liters of milk per day. The cost benefit ratio of the farm is not encouraging for motivating others to adopt dairy business in the area. It is assumed that for producing 300 liters of milk in a day require 50 cows of which 25-30 cows give milk daily. In that case number of calves would be around 32. The dairy farmers in this area are enlisted milk sellers to Arong, Milk Vitae and Pran. Milk producing farmers supply milk daily to their respective enlisted organizations. The price of milk in the area in normal situation (when supplying milk to the buyer is not interfered for strike or transportation problem) varies from Tk 38 to Tk 42 per liter. But the average price of milk remains almost Tk. 40 per liter. The total sell value of 300 liters of milk becomes Tk.12,000 in a day. But during strike of political parties the agreed buyers can not purchase milk and the price of this milk in the local market drops instantly to Tk. 7,500.

These milk producing cows need granular feed as well as grass or green straw daily. The price of granular feed on an average is Tk. 35 per kg. But farmers mix up `Vushi’ with granular food to reduce this cost of granular feed. In that case the cost of granular feed reduces to Tk. 25 per kg. One milking cow daily needs 6 kg granular feed. So, granular feed cost for 50 milking cows stands to Tk. 7,500. The cost of granular feed for 32 claves at the rate of 3 kg per calf per day stands to Tk. 2,400. Along with this granular feed, straw of 1,200 bundles (in case of green grass cost is higher) costs Tk. 3,000 (each bundle of straw cost Tk. 2.5). So, the total feed cost of the farm stands to Tk. 12,900 daily. There are four labours in the farm. Daily cost of these labours is Tk. 800. Electricity and related cost per day of the farm is about Tk 100. Medicine and treatment cost of cows on an average Tk. 100 per day. Total cost behind these cows per day is Tk. 13,900, whereas daily income from milk is Tk 12,000.

So, daily net loss of the farm is Tk. 1,900 which turns into annual loss of about Tk, 6,93,000 of the farm. In normal time (when political disturbance is not there) the farm meets up this loss by selling the calves. Sell value of each of the calves is about Tk. 30,000. Income from selling of calves varies from Tk. 9,00,000 to Tk.10,00.00 in a year. So, ultimately annual balance stands no profit no loss.

In the said situation why the owner should run the dairy farm as such? The owner of the farm Md. Ameerul Islam informs that his net profit is “cow dung” . He says that cow dung available from 82 cows in a year can be sold with price ranging from Tk. 2,50,000 to Tk. 3,00,000. Mr. Ameerul Islam opined that the name of the farm should be rephrased as “Cow-dung producing farm” in place of “Dairy Farm”.

46

Average yield of milk is only 2 (two) liters per cow per day, although there are

regional variations through out the country. Among commercial dairy farmers, average milk

production ranges from 3.5 liters per day in Mymensingh to 7.2 litres per day Sirajgonj

(Shamsuddin et al., 2006). Average milk production per cow in Bangladesh is equivalent to

about 0.7 ton per year, which is lower than the average yield in India (1.2 tones per cow per

year) or Pakistan (1.1 tones per cow per year). On the other hand, per cow production in

Australia, New Zealand and Denmark are about 5.2, 3.7 and 7.8 tones per year, respectively

(Anon, 2008). So, building competitiveness in milk productions to the small and medium

farmers of the country with respect to the same of neighboring countries particularly like

India can make a remarkable development in milk production of the country.

Individual milk testing is not carried out at the procurement level in Bangladesh and

farmers are paid a flat rate of milk price. Thus, there is no incentive for quality milk supply.

Adulteration is common and as a result fat and or SNF (solid not fat) percentage in milk is

Mr. Ameerul informed that he could run the farm as he did not buy all these animals. He only bought a female calf in 1994 with a price of Tk. 14,600. That cow ultimately could generate 82 cows in the fourth generation. He estimates that each of these cows has market price from Tk. 1,10,000 to Tk. 1,50,000. He believes that if any person starts dairy milk farm with cash in hand he must be looser. He gave examples of small dairy farms of nationally awarded dairy farms of Md. Siddikur Rahman and Abdul Mottalib Kitab Mondal.

Md. Siddkur Rahman of Ishwardi district started dairy farm with buying 16 cows in 2008. He could increase the number of dairy cows to 275 with his own money and Bank loan. He stopped his diary farm with a loss of Tk. 2,03,00,000 in 2012. Now he is trying to repay his default bank loan of dairy farms from the money he gets out of crop production. Similarly another nationally awarded dairy farmer Abdul Mottabli Kitab Mondol of Selimpur Varaimari village under Ishwardi district faced a loss of Tk. 20,00,000 through his dairy farm of 200 animals. Abdul Mottalib now owns 50 cows and opines that he would stop dairy farming in near future. Upazila Livestock Officer of Ishwardi Sadar informs that there are 282 small and big diary farms in the upazila. The annual milk production of the upazila is 25.4 thousand metric tons. He opines that higher price fodder is the main barrier of making profit out of dairy farming. In fact producing and selling milk is not profitable in the present context- he added. Preparation of manures and biogas can be linked with dairy farming, so that the acceptability of the same in terms of making profit can be ensured. In addition, he opined that political disturbance make the sector more worsen (quoted from a feature of Ashiskur Rahman and Mahfuzul Haque published in Prothom Alo daily on 3rd January 2014).

47

low. Skim milk powder often has to be added to milk to make up the low SNF level for

pasteurized liquid milk.

The Livestock Development Policy 2007 of the government identified a number of

constraints for milk production in the country. These are: (i) limited knowledge and technical

skills of smallholder dairy farmers, (ii) scarcity of feeds and fodder, (iii) poor quality of

feeds, (iv) frequent occurrence of diseases, (v) limited coverage of veterinary services

including poor diagnostic facilities, (vi) lack of credit support, (vii) limited milk collection

and processing facilities and low prices at collection points, (viii) lack of insurance coverage,

(ix) absence of market information, (x) lack of appropriate breeds, and (xi) absence of a

regulatory body.

Livestock development through the application of science-led methods of breeds and

breeding in Bangladesh is still at an initial stage. There is, however, enthusiasm for applying

breeds and breeding interventions to enhance livestock performance. Lack of a national

breeding policy, use of inappropriate breeds, weak infrastructure (human capacity, national

service delivery, breeding farms) and limited technical knowledge has constrained the

development of improved breeds.

Available high yielding seed materials are mostly exotic and imported. However, not

all of these imported exotic species adapt well under Bangladesh climatic conditions.

There is a number of promising well-adapted native livestock breeds in the country

such as Red Chittagong cattle, Pabna cattle etc. which could be developed into high yielding

breeds through cross breeding in a systematic manner. Importation of inappropriate genetic

material coupled with indiscriminate crossbreeding and a clear neglect of indigenous breeds

has created a situation, where a number of native breeds of livestock are under threat of

extinction (GoB, 2007).

Unplanned and sporadic attempts that were made for breed improvement of various

species failed, because the initiatives were not based on thorough breed or genotype testing

results and not based on well-thought out and sound breeding goals, breeding criteria, animal

recording systems, animal evaluation procedures and animal selection and mating plans. Breeds

and breeding programme requires huge initial investment and regular and timely flow of

resources. Sustained funding support for breeding work does not prevail at all. As a result, the

limited expertise available in this field remains underutilized.

There is no regulatory body or National Breeding Act to regulate breed imports,

prices of breeding materials, merits and quality of breeds, breeding materials and breeding

services. Within the existing cattle breeding services (including artificial insemination),

48

farmers have little or no idea of the merit and quality of the semen being provided to them for

insemination. The investment is very poor in this sector.

However, the National Livestock Development Policy 2007 provides distinct milk

production policies in three stages through adopting short, medium and long term policies.

The salient features of this policy are as follows:

Policy framework for dairy development covers:

a) Cooperative dairy development (Milk Vita model) could be expanded in potential

areas of the country;

b) Successful pro-poor models for community-based smallholder dairy development

including appropriate contact farming schemes could be replicated;

c) Smallholder dairy farming, integrated with crop and fish culture could be

promoted;

d) Supply chain based production, processing and marketing of milk and milk

products can be promoted;

e) A National Dairy Development Board would be established as a regulatory body

to promote dairy development; and

f) “National Dairy Research Institute” can be established to carry out research in

various aspects of dairying.

A. Short Term Policy (Up to 5 years) for Cattle Development a. For cows reared under intensive system i.e. high level of inputs supply and zero grazing:

The target in this regard is to produce dairy cattle that will produce more than 6000 kg milk

per lactation (305 days lactation period) at the end of 5 years. The policy in this regard covers

inseminating the top most cross bred Holstein-Friesian cows (daily yield 10 kg or more)

reared under intensive management system with imported semen of progeny tested bulls of

Holstein- Friesian cattle having milk yield capacity of 9,500–10,000 kg in 305 days lactation

period. One million doses of such semen could be imported by DLS and inseminated

maintaining proper records. Private sector should be encouraged to import such semen.

The actions to be adopted in this aspect will be i) Farmers should be selected from

10% top farmers depending on the production performance of the registered farms of DLS,

who wish to maintain animal identification and recording system, be trained on modern

techniques and intensive management of dairy farming including recycling of farm wastages

49

and environmentally friendly farming; and ii) The herd size of the farm should be 5 breedable

cows or more.

b. For cows reared under semi intensive system i.e. medium level of inputs supply and

minimum grazing: The target in this regard to produce dairy cattle that will produce more

than 3,000 kg milk per lactation (305 days lactation period) at the end of 5 years. The policy

would cover i) Inseminate cross bred Holstein- Friesian cows (6-10 kg milk a day) reared

under semi intensive management system with semen of progeny tested 50% Holstein-

Friesian bulls (50% Holstein-Friesian X 50% Local) having milk production capacity of

about 4,500 kg in 305 days lactation period and ii) Sahiwal or Sahiwal cross bred cows

should be inseminated with semen of Sahiwal bulls having at least 2,500 kg or more milk

production potential per lactation. The action identified in this regard is to select farmers

from the registered farms of DLS, BMPCUL, CLDDP and NGOs, who maintain animal

identification and recording system, wish to be trained on modern techniques and

management of dairy farming and interested to practice recycling of farm wastages.

c. For cows reared under low input production system: The target covers producing native

dairy cattle that will produce more than 1,000 kg milk per lactation (305 days lactation

period) at the end of 5 years. The policy adopts in this aspect is to inseminate native cows

reared under low input production system with semen of progeny tested or pedigree bulls of

Sahiwal, Pabna cattle, Red Chittagong, Munshigonj cattle, other improved deshi cattle. The

actions identified to achieve the target fixed in this regard are i) selecting farmers from the

registered farms of DLS, Milk Vita, Char Livelihood Project (CLP) and NGOs, who maintain

animal identification and recording system, wish to be trained on modern techniques and

management of dairy farming and interested to practice recycling of farm wastages; ii) testing

the performance of Jersey by BLRI and BAU at Baghabari and in another operational area of

BMPCUL. If the result finds suitable this breed can be introduced under semi-intensive

system; iii) adopting special conservation and improvement programme for Red Chittagong,

Pabna cattle and local variety; iv) improving the existing conservation and development

programme on Red Chittagong run by BAU, BLRI and DLS; v) adopting another

conservation and improvement programme on Pabna cattle by BLRI, DLS, Milk Vita and

BAU; and vi) preserving all local breeds.

50

B. Medium Term Policy (6 -10 years) for Cattle Development a. For cows reared under high level of inputs supply with zero grazing: The targets in this

regard are to produce dairy cattle that will production more than 4,500 kg milk per lactation

(305 days lactation period) at the end of 10 years. The policy in this regard is to inseminate

the top most cross bred Holstein-Friesian cows will be reared under intensive management

system with imported semen of progeny tested bull of Holstein-Friesian cattle having milk

production capacity of 9,500–10,000 kg in 305 days lactation period. The herd size of the

farm should be 10 breedable cows or more.

b. For cows reared under medium inputs production system: The target under this policy is to

produce dairy cattle that will production more than 15 kg milk daily in 305 days lactation

period (4,500 kg per lactation) at the end of 10 years. The policy covers inseminating cross

bred Holstein- Friesian cows (yielding 6-10 kg milk a day) will be reared under semi

intensive management system with semen of progeny tested 50% Holstein- Friesian bulls

(50% Holstein-Friesian X 50% Local) having milk production capacity of 6,000 kg in 305

days lactation period and inseminating Sahiwal or Sahiwal cross bred cows with semen of

Sahiwal bulls having at least 2,500 kg or more milk production potential per lactation.

c. For cows reared under low inputs production system: The target covers in this regard is to

produce native dairy cattle that will production more than 1500 kg milk per lactation (305

days lactation period) at the end of 10 years. The policy covers i) inseminating the native

cows reared under semi intensive management system with semen of progeny tested Pabna

cattle, RCC and improved deshi bull etc.; ii) adopting a special breeding programme for

Jersey imported by BMPCUL (Milk Vita); and iii) adopting decision on the basis of field

trails (to be carried out by BLRI and BAU) whether jersey breed will be used for breeding

purpose in Bangladesh as 4th

breeding line; iv) adopting conservation and improving

programme for RCC, Pabna cattle and local variety; v) continue the conservation and

improvement programme on RCC run by BAU, BLRI and DLS ; vi) continuing another

conservation and improving programme on Pabna cattle vii) preserving all local varieties.

C. Long Term Policy (10 years and beyond) for Buffalo Development

A national seminar involving all concerned institutes will be organized to review the

results of implementation of short and medium term breeding policy. Decision will be taken

accordingly.

51

Buffalo for more Milk a) For buffaloes reared under intensive system i.e. high level of inputs supply and zero

grazing. Provide continuous support for up grading of dairy buffaloes in the plain land with

imported semen of Murrah, Nili-Ravi or Mediterranean Breed having milk production

potentiality of 3,000 kg per lactation.

b) For buffaloes reared under semi- intensive system i.e. medium level of inputs system.

Using and fixing 50% gene of Murrah or Nili-Ravi.

c) For buffaloes reared under low input production system. Fix and use 50% gene of Murrah

or Nili-Ravi Breed and 50% genes of native buffaloes.

d) For swamp buffaloes of greater Sylhet and Chittagong districts. Special conservation

programmes should be undertaken to conserve the swamp buffaloes of greater Sylhet and

Chittagong districts through establishment of farms in respective region.

4. Conclusion

India produces about 17 percent of the world’s total dairy production and used most

of its production for own consumption. In fact “Low-input and low-output” dairy production

model follows in India. India maintains the world’s largest bovine herd having 2-3 animals in

most cases. India has experienced strong growth in demand for dairy products, which is

estimated between 6 and 8 percent annually, approximately twice the growth rate of supply (3

to 4 percent annually). Given India’s preference for dairy sector is attracting new public and

private sector investment. New investment in the sector has resulted in increase to the pace of

overall growth of the country. Driving institutions for the consistent dairy development in

India are NDDB, NDRI, Mother Dairy, Amul, Department of Livestock Development etc.,

which are well supported by National Dairy Development Policy for achieving the

continuous growth in milk production. The organizations visited by the team have found

comprehensive and sustainable in terms of higher capacity of processing milk and milk

products, advanced research and development, well milk marketing chain from producers to

the processors, capacity of quality breed development and so on.

The National Dairy Research Institute as the premier Dairy Research Institute, which

undertakes research, teaching and extension activities towards dairy development in the

country. As the National Institute it conducts basic and applied researches with the objective

to enhance animal productivity and also to develop cost effective technologies for the benefit

of millions of small and marginal farmers. Moreover, the institute provides high quality

manpower to meet the human resource requirements for the overall dairy development in the

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country. The institute also undertakes extension programmes for transferring the know-how

from the laboratory to the farmers’ fields.

Mother Dairy markets approximately 4.8 million liters of milk daily in the markets of

Delhi, Mumbai, Saurashtra and Hyderabad. They have a market share of 66% in the branded

sector in Delhi, where it sells 2.3 million liters of milk daily and undertakes its marketing

operations through around 14,000 retail outlets and 845 exclusive outlets. As of April 2013,

the Mother Dairy commands 71% and Amul commands 29% of the market.

Processing of milk is controlled by automation whereby microprocessor technology is

adopted to integrate and automate all functions of the processing areas to ensure high product

quality, reliability and safety.

Mother Dairy also sources of fruits and vegetables from farmers and growers

associations. They contribute to the cause of oilseeds grower cooperatives that manufacture

and pack the Dhara range of edible oils by undertaking national market all Dhara products.

Amul took the pioneering role of India’s White Revolution, which made the country

the world's largest producer of milk and milk products. In this process Amul became the

largest food brand in India and has ventured markets in overseas. Dr. Varghese Kurien,

founder-chairman of the Gujarat Co-operative Milk Marketing Federation Limited

(GCMMF) led the same for more than 30 years (1973–2006). Amul Dairy had signed a

tripartite agreement to start a dairy plant in Waterloo village in upstate New York. Amul

expects that it would be able to produce and supply Amul products in the USA as well as

Canada and also export it to Europe under different arrangements.

The National Dairy Development Board (NDDB) was established 1965, fulfilling the

desire of the then Prime Minister of India — the late Lal Bahadur Shastri — to extend the

success of the Kaira Cooperative Milk Producers' Union (Amul) to other parts of India. It was

founded by Dr. Varghese Kurien. The success of Amul could combine the wisdom and

effective participation of farmers with efficient management successfully capture liquid milk

and milk product markets by supporting farmer investment with inputs and services. The

major success of this mission was achieved through the World Bank finance Operation Flood,

which lasted for 26 years (1970 to 1996) and was responsible for making India the world's

largest milk producer. This operation was started with the objective of increasing milk

production, augmenting farmer income and providing fair prices for consumers. NDDB,

India, an apex development organization initiated by the government to replicate successful

"White Revolution" movement amongst small farmers by affirmative actions empowered

women and made them involved in socio-economic activities. NDDB has now integrated

with 96,000 dairy co-operatives which is familiar as Anand Pattern that linking the village

society to the state federation in a three-tier structure.

53

The comprehensive support of the government of India for capacity building of

research and development, higher education, well sustained and consistent milk marketing

chains, keeping competitive prices of milk for longer time, capacity building of different

organizations, and supports and services for producers of milk particularly for small and

marginal farmers over the decades has brought India in the driving seat of milk production.

In Bangladesh, milk and milk production still remain in the traditional stage without a

few exceptions like Milk Vita, Aarong, Pran etc. The country now produces less than 20

percent of milk with respect to its current need. Initiatives of cooperative and private sectors

in milk production are encouraging. The National Livestock Development Policy of the

government has provided comprehensive approach for enhancing the milk production of the

country. The government encourages private sector to invest in this area. It is government

responsibility to create a congenital environment for enhancing milk production of the

country with the effective participation of different stakeholders under the policy of macro

framework.

54

Bibliography

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BRAC Dairy | BRAC-BRAC Dairy - Creating opportunity for the ... www.brac.net/content/brac-dairy

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Annexure

Nature of Plants Established in Different Parts of the Country under the Project

Plants Established

Establishment (1973-1989)

Place Nature of Plants Production Capacity (Litres per day)

Date of Commissioning

Mirpur, Dhaka Milk & Milk product Processing

1,62,000 May 1976

Tangial Milk Chilling 10,000 June 1975

Manikgong Milk Chilling 10,000 September 1975

Takerhat, Madaripur Pasteurization 25,000 December 1977

Baghabari, Sirajgong Milk & Milk product Processing

1,62,000 November 1977

Establishment (1989-2008)

Place Nature of Plants Production Capacity (Litres per day)

Date of Commissioning

Srinagar (Monshigonj) Milk Chilling 15,000 June 1975

Rangpur Milk Chilling 15,0008000/h

Powder milk production factory, Baghabari

Powder milk Processing

8000/h

Vanggura (Pabna) Milk Chilling 10,000 lit

Laherimohonpur (Shirajgonj)

Milk Chilling 10,000 lit

Vhirab (kishorgonj) Milk Chilling 5,000 lit

Raipur (laxmipur) Milk Chilling 10,000 lit

Nator Milk Chilling 5,000 lit

Islampur (Jamalpur) Milk Chilling 5,000 lit

Gabtoli (Bogra) Milk Chilling 5,000 lit

Shibpur, Norshindi Minaral water Plant 60,000 lit/h

Domar (Nilphamary) Milk Chilling 5,000 lit

Shaithkhira Milk Chilling 5,000 lit

Noagon Milk Chilling 5,000 lit

Ramgonj (laxmipur) Milk Chilling 5,000 lit

Shibpur (Narsingdi) Pasteurization 30,000 lit

56

Candi and Chocolete Plant Tajgoan, Dhaka

Coverchar, Chocolote 500 kg/day

Moulovibazar Milk Chilling 5,000 lit

Khulna Milk Chilling 5,000 lit

UHT Milk Plant, Mirpur. Flavourd Milk 40,000 lit

Condence Milk Plant, Mirpur.

Condence Milk 96,000 can/h

Chirirbondor, Dinajpur Milk Chilling 5,000 lit

Ishardi, Pabna Milk Chilling 5,000 lit

Sonagazi. Fani Milk Chilling 5,000 lit

Subornochar, Noyakhali Milk Chilling 5,000 lit

Shahjadpur Purbanchal, Sirajgonj

Milk Chilling 5,000 lit

Sorupkathi, Pirojpur Milk Chilling 5,000 lit

Tungi Bari, Munshigonj Milk Chilling 5,000 lit

Jamalpur Milk Chilling 5,000 lit

Can making plant,Baghabari

Condence Milk 12,000 can/h

UHT Liquied milk, Baghabari

UHT Liquied Milk 1,00,000 lit