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Prepared By:Umang Dairies Limited

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Background

• India – Largest milk producer - 137 million tonnes in 2013-14.

• Expected milk demand by 2016-17 – 155 million tonne.

• Expected Milk Demand by 2021-22 -200 million tonne

• Milk production in the country is growing at 3.3% while consumption is growing

at 5% per annum.

• To meet the demand it is necessary to annual growth of over 4 percent in the

next 15 Year

• Requirement - A Planned Multi-State initiative is required to increase productivity

in existing herds through a focused programme for breeding and Feeding.

Demand – Supply trends suggest India is entering a milk shortage period that will last 8 – 10 years

Source: imarc June 2012 report, National Dairy Plan Baseline Study Report, NDDB, Annual Report AMUL – 2013-14, CST Analysis

Consumption at CAGR 4.7%

Milk Production and Consumption – India (FY11 – 22F)

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

100

110

120

130

140

150

160

170

180

190

200 Mn Ts

Production at CAGR 2.9%

Demand Supply Gap

139

200

170

FY14

135

Production at CAGR 5%

1. Growing population, rapid urbanization and increasing per capita income to drive dairy demand.

2. With current infrastructure, growth in milk production to fall short of demand.

3. 6 – 7 mn Ts – desired annual production increment in next 15 years.

4. 3 – 4 mn Ts p.a – actual annual production increments achieved in recent years

National Dairy Plan launched in April ‘12 to bridge this gap. Key focus areas:

1. Increase productivity of milch animals

2. Provide greater access to organized milk processing sector

340Demand if India’s per capita consumption

equals that of Pakistan by 2022

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NATIONAL DAIRY PLAN-I (NDP)Phase I (2011-12

• NDP-I is a Central Sector Scheme of the DADF-GOI (Department of Animal Husbandry Dairying & Fisheries) implemented by NDDB for the period of 2011-12 to 2016-17.

• The NDP has been envisaged with a 15 years horizon : considering that 3-5yrs are required to produce a more productive animal and the time required to develop and expand system to increase milk production.

• NDP I would focus on 14 major milk producing states – UP, Punjab , Haryana, Gujrat, Rajasthan , MP , Bihar, West Bengal ,Maharashtra, Karnataka , Tamil Nadu , Andhra Pradesh , Orissa & Kerla.

• These states account for over 90% Milk Production, have 87% of breedable cattle and 98% fodder resource.

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Objective of NDP I

• To help increase productivity of milch animals and thereby increase milk production to meet the rapidly growing demand for milk.

• To help provide rural milk producer with greater access to the organized milk sector.

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End Implementing Agencies (EIAs)

NDP I will be implemented by NDDB through End Implementing Agencies (EIAs) comprising • State Live Stock Boards• State Dairy Cooperative federation • District Cooperative Milk Producer Unions• Cooperative forms of enterprises i.e. Producer

Companies , Trust (NGOs , Section -25* companies)• Subsidiaries of Statutory bodies.• ICAR (Indian Council of Agricultural Research) Institute

and Veterinary / Dairy Institute / Universities.

*Section -25 companies which promote Commerce, Science , Art , Religion, Charity or any other useful object and granted license by central govt. recognizing them as such.

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EIA Implementing Agencies & Activities

Activities End Implementing Agencies (EIAs)

Bull ProductionEIAs having semen station graded A or B or an arrangement with a semen station graded A or B in their latest evaluation.

Semen Production Semen station awarded grade ‘A’ or ‘B’ by DADF’s CMU (Central Monitoring Unit) in their latest evolution.

Ration Balancing Programme Milk Unions / Federations / Producer Companies

Fodder Development Programmes

Milk Unions / Federations / Producer Companies / Trust (NGOs) / Regional Stations for forge production and demonstration / ICAR institutes / Veterinary Universities.

Village Based Milk Procurement System

Milk Unions / Federations / Producer Companies.

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Project Outlay

• Total Estimated outlay in 15 years is Rs. 17,300 Crs

• NDP I has an estimated project outlay of Rs. 2242 Crs for the period of 2011-12 to 2016-17.

Stakeholders in NDP I In Rs. (Cr)

WB -International Development Association

1584

Govt. of India 176

EIAs 282

NDDB 200

Total (In Rs. Cr) 2242

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The Plan

• Production of High Genetic Merit (HMG) Bulls• Semen Production• Pilot Model for Viable Doorstep AI Delivery Service.• Ration Balancing Programme• Fodder Development • Village Based Milk Procurement System• ICT (Information and Communication Technology)

for MIS• Learning and Evolution

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Production of HMG Bulls and Viable Doorstep AI Delivery Service.

• 100% Bull replacement at ‘A’ and ‘B’ grade semen station – by High Merit Genetic Bulls.

• By increasing the high quality disease free semen doses from 66.8 million - 100 million by the end of NDP I.

• Raise the percentage of breedable animals inseminated from 20% to 35% by the end of NDP I.

• The no. of AI performed would increase from current level of 50 million to 90 million per year.

• 3000 trained AI technician – 4 million doorstep AI deliveries will be achieved by the end of NDP I.• Reduction in AI per conception from 4 insemination to less

than 2.

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Ration Balancing Programme (RBP)

• NDP I plan to cover about 2.7 million milch animals in 40,000 villages.

• 40,000 LRPs (Local Resource Persons) would be identified , trained and supervised by cooperatives and producer companies.

• The project will finance the training cost, necessary equipment cost and a modest monthly stipend for LRPs for about two years.

• Trained LRP’s will provide Advisory services to dairy farmers feeding balanced ration to their animals.

• LRPs also educate milk producers on the latest technologies such as feeding milch animals with bypass protein , bypass fat , ASMM (Area Specific Mineral Mixture) , treated and enriched crops residues etc.

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Fodder Development• Improve Productivity of fodder crops and common grazing

lands and demonstrate to conserve surplus green fodder to enhance availability during the lean period.

• Seed - the most critical input to for the fodder productivity.• 7 new seed processing units aims to produce additional

8000MT certified/truthfully labelled fodder seeds by the end of NDP I.

• Demonstration on Universal design stores and bunkers for the straw , pellets ,bales ,blocks and silage to have better pay back.

• Crop Residue Enrichment (Better Rationing) and Densification (easy to transport).

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Strengthening Village Based Milk Procurement System

Efforts to increase milk production through genetic enhancement (Breeding) and Nutrition programme for milch animals would need to be supported by providing greater milk opportunities for sale of surplus milk to the organized sector.

• Strengthening the procurement system of existing cooperatives -23,800 additional villages to be covered. (current VLC coverage is 1.34 lac villages)

• Support for creating institutional structure and training - 60000 trained personnel required at all the levels.

• Promoting producer companies where cooperatives have low presence.

• Milk Pooling Activities – Data processor based milk collection units , installing milk cooler in village / cluster of village.

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Project Management & LearningICT for MIS

• Effective monitoring and coordination of project activities.

• Timely preparation and implementation of annual plans.

• Regular review and reporting of project progress and results.

• Educating milk producer on better feeding practices.

The initiative under the NDP are dispersed over different geographies. It is therefore critical to integrate ICT (information and communication technology) based system in the operation of various activities.

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Long-term BenefitsIn terms of overall benefits , the NDP will put in place a scientific approach and systematic processes which, it is hoped, would take the country on the path to improving the genetics of milk producing animals in a consistent and continuous manner. It will: make much more prudent use of the country’s scarce natural resources; have an impact on reducing methane emissions; improve the quality of milk being marketed; help strengthen regulatory and policy measure that will provide an enabling environment for future growth of dairying in the country; and contribute to improving the livelihoods of small milk producers who are the bedrock of India’s milk production system.

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Current Status

• The NDP I has achieved 62% of its funding.• Uttarakhand and Telegana also included in NDP.• 225 projects worth of Rs. 1256 Cr have been

sanctioned.• in Gujrat 33 projects worth of Rs. 328 Cr have

been sanctioned.• The NDP I is on track as per the official of NDDB.

Source: News Article from Business line Dated: 9th Nov. ,2014

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Options if NDP I does not works

• Govt. may allow the import of dairy product.

• Govt. may regulate the price of milk and can bring milk under Essential Commodity Act, 1955 to ensure the fare pricing.

18Thank you