(Food Processing) Milk Dairy Sector, Supply Chain, Upstream Downstream Issues, Amul Model, Operation Flood Mrunal

9/20/13
[Food Processing] Milk Dairy Sector, Supply Chain, upstream downstream issues, Amul Model, Operation Flood Mrunal
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SEPTEMBER 19TH, 2013
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[Food Processing] Milk Dairy Sector, Supply Chain, upstream downstream issues, Amul Model,
Operation Flood
Prologue
Scope-Significance of Dairy Sector
Location: Dairy cooperatives
@Upstream Issues
Low productivity of milch animals
#1: Veterinary problems
#2: Breeding issues
#3: Fodder problems
Azolla fern
Milk Quality
@Processing Level
Regional imbalance
Anand/Amul Model/dairy cooperative model
Amul Supply Chain
Cooperative sector limitations
Downstream issues
#1: MRP and adulteration
Synthetic Milk
#2: Ethnic products: untapped potential
#3: Export issues
Fonterra crisis
#4: Tax on inputs
NDDB
Operation Flood
Government Schemes
National Dairy Plan (NDP)
Mock Questions
Prologue
First, regarding Write Articles, Win Books competition: so far 34 entries received. And last date to submit is 25th Sept 2013. Click
me for more details.
For UPSC General Studies Mains Paper III, we were looking at the Food processing and related industries in India. So far we saw
following topics
1.
2.
3.
4.
5.
Food processing industry: Awesomeness and Obstacles

Food processing industry: Truckload of Government Schemes and bodies
Marketing of agricultural produce: issues and constrains, Nuisance of APMC Acts and Commission Agents
Agro/Food Processing: Export, Dumping, FDI, Finance, Taxation, Budget Provisions, CODEX, NWR, BRGF, RKVY
Supply Chain Management, Upstream Downstream requirements for Fruit & Vegetables, Confectionery industries
Then I got bored with food processing, hence made three compilations on Hindu Sci-tech (and some posts about results, answer keys
etc.) Anyways, back to where we had left in [Food processing]: fruits veggies SCM-updream downstream. Now time for Dairy SCMupstream downstream.
UPSC syllabus
prelims Paper I
topic in this article

Chemistry: components
of synthetic milk
Agro-tech: azolla fern.
Biology: Food and
Mouth disease
(GS1) location of primary, secondary, and tertiary sector industries in various parts of the world
(including India)
Dairy industry in India.
(GS2) Effect of policies and politics of developed and developing countries on Indias interests,
How the Fonterra crisis will

help Indian dairy biz.
mrunal.org/2013/09/food-processing-milk-dairy-sector-supply-chain-upstream-downstream-issues-amul-model-operation-flood.html?utm_source=feedbur
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(GS3) economics of animal-rearing
Lot fodder material.
(GS3) Food processing and related industries in India-scope and significance, location, upstream
and downstream requirements, supply chain management.
for Milk/Dairy business.
Next time well see [Food processing] meat, poultry and fisheries.
Scope-Significance of Dairy Sector

Top five Milk producers (World)
HIGHEST
1.
2.
3.
4.
5.
PRODUCTION
LARGEST
I
ndia
United States of America
China
Pakistan
(as per NDDB, but Im baffled nonetheless.)
Russian Federation
India has the worlds largest livestock population

half the world population of buffaloes
1/6th of the world goat population
POPULATION
CONTRIBUTION TO GDP Livestock sector (milk, meat, eggs) contributes 3.6% of GDP. (2010s data)
Availability
Per capita milk availability All India: ~290 gm; Punjab (highest): >900gm.
still per capita milk availability in India less than world average
EMPOWERMENT
To Farmers, Women And Consumers

more details under operation flood
India has proximity to milk deficit countries e.g.

1.
2.
3.
4.
Bangladesh
Indonesia
Malaysia
Philippines
5.
6.
7.
8.
South
Korea
Sri-Lanka
Thailand
Hence Indian dairy production could be utilized to earn good foreign exchange by targeting those markets. More under
Downstream=>Export.
SOME STUPID NUMBERS FROM ECONOMIC SURVEY:
Year
Milk (Million Tonnes) Eggs(Million Nos.) Fish(Million Tonnes)
2011-12 >120
>60,000
>8500
Location: Dairy cooperatives

STATE
Brand Name
official name
GUJARAT
Amul
Gujarat Cooperative Milk Marketing Federation (GCMMF)
ANDHRA
Vijaya
Andhra Pradesh Dairy Development Cooperative Federation

(APDDCF)
KARNATAKA
Nandini
Karnataka Cooperative Milk Producers Federation (KMF)
MAHARASHTRA
Mahanand, Gokul, Dhawal, Dudh

Pandri
Maharashtra Rajya Sahakari Maryadit Dugdh Mahasangh

(Mahasangh)
PUNJAB
Verka
Punjab State Cooperative Milk Producers Federation (MILKFED)
TN
Aavain
Tamilnadu Cooperative Milk Producers Federation Ltd (TCMPF)
Issue: there is a regional imbalance in production and processing capabilities. e.g. UP contributes over 17 percent of Indias total milk
production. Ironically, only one percent is procured by co-operatives, remaining milk goes to private-dairy players, who exploit
farmers, and do adulteration.
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Top 5 states
NO. COWS N BUFFALOS MILK PRODUCTION PER CAPITA MILK AVAILABILITY
1.
2.
3.
4.
5.
Uttar Pradesh
Madhya Pradesh
Rajasthan
Andhra Pradesh
Maharashtra
1.
2.
3.
4.
5.
Uttar Pradesh
Rajasthan
Andhra Pradesh
Punjab
Gujarat
1.
2.
3.
4.
5.
Punjab
Haryana
Rajasthan
Himachal Pradesh
Gujarat
Bottom in all of above: North Eastern States, Delhi, Goa and UT.
Milk production =directly related to fodder availability.
Fodder=need irrigation.
Therefore, states with good irrigation facilities and / or rich farmers that can afford tubewells= milk production is high.
For these reasons, you can see how MP is in top-5, for number of cows and buffalos BUT still MP doesnt figure in top-5 in milk
production due to fodder shortage. (Rankings taken from NDDB website)
@Upstream Issues
Low productivity of milch animals
Country
Avg. Cow Milk Kg Per Year
Australia
>4000
EU
>5500
USA
>8000
World Average 3100

India
800
India has worlds largest cow population, but the average productivity of Indian cows is among the lowest in the world. WHY?
1. Veterinary service problems
2. Breeding problems
3. Fodder problems
Lets see them one by one:
#1: Veterinary problems
1. Manpower
To support health programmes for the massive livestock population, we need more than 60000 veterinary
doctors in the rural areas. (right now we only have ~25000)
Need to strengthen the mobile veterinary services to ensure door-step veterinary support, particularly in
inaccessible areas.
Veterinary hospitals, dispensaries are inadequate in rural areas.
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2. information
The disease reporting is neither timely nor complete which delays proper interventions.
NIC developing software for computerized National Animal Disease Reporting System (NADRS)
Itll link taluka, Block, District and State Headquarters to a Central Disease Reporting and Monitoring Unit at
the Department of Animal Husbandry, Dairying & Fisheries (DADF)
This will ensure faster and reliable disease reporting
3. Inadequate availability of vaccines vs. High prevalence of FMD, theileriosis and brucellosis amongst cattle
4. FMD alone causes economic loss of ~Rs.20,000 crore per year to India. lets check more details about FMD for MCQs.
Foot and mouth Disease (FMD)
FMD is a viral disease that spreads rapidly between animals.
high prevalence in Africa, the Middle East and Asia
FMD affects cloven-hoofed animals (those with divided hoofs), including cattle, buffalo, camels, sheep, goats, deer and pigs.
It can even affect wild animals e.g. Deer, wild pigs and buffalos.
Pigs are regarded as amplifying hosts because they can excrete very large quantities of the virus in their exhaled breath.
Cattle are very susceptible to FMD. They get infected by breathing even small quantities of the virus.
FMD spreads rapidly from one animal to another, especially in cool, damp climates and/or when animals are housed closely
together.
Although FMD is not very lethal in adult animals, it can kill young animals and cause serious production losses.
Animal suffering from FMD :
Becomes lame and unable to walk to feed or water.
Stops eating because its tongue and mouth gets blister- very painful to chew anything. =Adult animal can survive a few days
of starvation but young animal will die.
Its mammary glands are damaged=milk production loss.
FMD has serious ramifications in international trade of milk and meat. Because countries that are free of the FMD disease= they
ban or restricting imports from FMD affected countries.
There is no cure for FMD. The Affected animals will recover with time. Although Vaccines can protect against the disease.
Department of Animal Husbandry, Dairying & Fisheries (DADF) has initiated National Programmes for prevention and control of
FMD, with help of State government.
#2: Breeding issues
CLIMATE
The cattle from temperate region have higher milk production. (e.g. Denmark)
But India: tropical, sub-tropical, hot-humid type climate
So even when we import foreign cattle breeds, they give less milk because of climatic factor.
BREEDING
RESEARCH
Present breeding strategy focuses on high yielding cows/buffalos rather than developing breeds that are
tolerant to adverse climate/fodder conditions.
Crossbred animals are sent to areas poor in feed resources=they dont survive/dont produce optimum
amount of milk.
Limited availability of quality breeding bulls and semen.
Notable breeds
Cow: Sahiwal, Gir, Rathi and Kankrej

Buffalo: Murrah, Mehsana and Jaffarbadi
Solution?
BREED
promote in ___ area
HOLSTEIN FRIESIAN in feed-fodder rich states

JERSEY
in states poor in feed/fodder resources.
Government started National Project for Cattle and Buffalo Breeding (NPCBB) is to promote genetic upgradation of Indian
cattle livestock through Artificial Insemination.
NGOs like BAIF and JK trust are operating about 6,000 mobile artificial insemination centres.
#3: Fodder problems
1.
2.
3.
4.
5.
6.
7.
8.
Rich farmers=irrigation /tubewell =can grow fodder=>higher milk yields

But majority are poor farmers= rely on common pastures =>underfed cattle= less milk yields.
For the same reason: MP is in top 5 for cattle population but not in top 5 for milk production
While the number of livestock is increasing, the grazing lands are diminishing, because
Real-estate mafias and National Son-in-law encroaching on such land
Farmers prefer growing food grains, oil seeds, and pulses hence fodder production generally gets lower priority.
At present, fodder is being cultivated only on 4% of gross cropped area= insufficient to meet requirement.
High quality fodder seeds =not available.
Agriculture crop residues are sold to paper industry, packaging, etc. rather than using as animal feed.
We dont have specific extension machinery with specialized manpower for popularization of good fodder varieties.
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Solutions?
FODDER
BANKS
to procure surplus fodder from the farmers in areas with good rainfall / irrigation.
Convert this fodder into silage or fodder blocks for storage
Supply this packed fodder to the deficient areas.
FOREST
the degraded forest areas, mostly under the Joint Forest Management Committees (JFMCs), can be used
for assisting growth of indigenous improved fodder varieties of grasses, legumes, and trees under areaspecific silvi-pastoral systems.
Dovetail the ongoing schemes like MGNREGA and RKVY for ^this purpose.
AZOLLA
PRODUCTION
to improve quality of nutrition for the livestock

Lets see Azolla in detail, for UPSC is nowadays obsessed with asking minimum one MCQ from some
random agro related plant/organism thing E.g. Mycorrhizal biotechnology and Nostoc algae in CSAT 2013.
Azolla fern
Azolla is a floating fern. It resembles algae, Multiplies very rapidly.

widely distributed in tropical belt of India.
Grows in paddy fields or shallow water bodies.
FOR CROPPING
Azolla is a Nitrogen fixing fern= aids in the growth of rice.

Azolla reduces evaporation from water surface and increases water use efficiency in rice.
Suppresses the weed growth.
FOR LIVESTOCK
FEED
Azolla has 50-60% protein on dry weight basis, rich in almost all essential amino acids, vitamin A,
vitamin B-complex and minerals
Livestock easily digest it.
Dry Azolla can be mixed with other fodder, or can be given directly to cattle, poultry, sheep, goats,
pigs and rabbits.
Green Azolla is also a good feed for fishes.
Milk Quality
From farm to dairy, there is significant deterioration in milk quality. Because of two reasons:
1. BOGUS
INFRASTRUCTURE
1. lack of all-weather roads in many villages

2. Electrical problems in rural areas= cooling centers dont work 24/7 basis.
3. lack of potable water and supply sewage disposal => animals kept in unhygienic condition=milk
gets contaminated.
2. BOGUS HANDLING
1. Contamination through equipment. Because lack of potable water=> milk-cans, buckets,

tankers are not regularly washed.
2. Bad roads=more transport time=more bacterial growth in milk.
3. Careless attitude of cooperative-staff. They dont keep the prescribed low-temperature during
collection and transport of milk.
4. ^Why careless attitude? Because Dairy cooperative elections won through money power and
then such office-bearers recruit any swinging dude in dairy as long as he is payin bribes for
getting the job.
Result: following properties of milk get affected

SENSORY PROPERTIES color, taste, odour
COMPOSITION
fat, protein etc.
HYGIENE
bacteriological growth
Solution?
1. Currently, when farmer supplies milk @dairy cooperative society (DCS) of his village, they only test one thing: fat content.
Therefore, farmer has no incentive to maintain any other qualities of milk.
2. Setup quality testing facilities @collection center to test bacteria count, acidity, smell/taste, bacterial count, heavy metals,
pesticides residue etc. and not just fat-content alone.
3. Train farmers on hygiene habits for milk collection.
4. Pay farmers more money if they supply quality milk
5. Supply of Hygiene Kits+ Training to DCS staff. Impose penalty if they dont comply with the standards.
6. Less manual handling, use more machines: Bucket Milking machines, Feed racks, water bowls and partitions etc.
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9/20/13
@Processing Level
A typical supply chain of milk sector:
Regional imbalance
Bulk of new capacity in the period in last decade, has been established in the Northern states, Maharashtra and Tamil Nadu.
Remaining states are lagging in dairy growth.
Capacity utilization of dairy plants is about 60% (assuming 300 working days in a year). Due to Lack of milk availability in the lean
season.
For e.g. Rajasthan has 8% share in milk production and 11% share in consumption of milk products, however the share in dairy
processing capacity is 4%. Meaning much of the milk escapes from the value-addition in dairy supply chain. A similar situation
prevails in Bihar.
Anand/Amul Model/dairy cooperative model
1946
Sardar Patel encourage the farmers of Anand region in Gujarat, to form their own milk cooperative, to protect themselves
from exploitation from private milk traders
National Dairy development board setup @Anand, to replicate the dairy cooperative model throughout country.
1965
(PM Lal Bahadur Shashtri)
1971 Gujarat Cooperative Milk marketing federation setup (GCMMF)

1974 GCMMF starts maketing milk products under single brand name Amul (Anand Milk Union Limited)
Amul Supply Chain
VILLAGE
In the given village, a dairy Cooperative Society (DCS) is formed.

Every dairy cooperative society has ~110 farmers.
Combined, all DCS together handle more than 18 million kg milk / day.
theyre equipped with Automatic milk collection unit (AMCUS): computer analyses fat content of milk,
automatic printing of receipts etc.
DISTRICT
MARKETING
COOP.UNION
they process milk=> butter, ghee, milk powder, cheese, ice cream etc.
E.g. Banaskantha District Cooperative Milk Producers Union Limited known as Banas Dairy. They
manufacture a large number of dairy products under AMUL, SAGAR and BANAS brands. Usually Banas
products sold locally, and Amul products sent to other states.
similarly Gandhinagar District Co-operative Milk Producers Union Ltd.=Madhur dairy.
Surat= Sumul Dairy
Surendranagar District Co =Sursagar Dairy.
They can sell their products under the brand name Amul as long as they meet the requirements of
GCMMF. (e.g. must collect 30,000 litres milk daily for a period of three years)
6/13
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STATE MILK
COOP.
FEDERATION
The main boss is Gujarat Cooperative Milk marketing federation (GCMMF).

All of above district cooperative unions (Banas, Madhur, Sumul Sursagar) etc. fall under GCMMF umbrella.
RETAIL
Amul has more than 5000 outlets of own- at high streets, residential areas, Railway Stations, Bus Stations,
Educational Institutions, across India.
2012: Amul planned to setup 10000 retail outlets across India.
Other than that, even private shops, hotels, restaurants etc. too sell Amul products.
this Amul Model eliminates middlemen and directly engages farmer with the processor (dairy)
These cooperatives form part of a national milk grid which links the milk producers throughout India with consumers in more than
700 towns and cities
here is one more supply chain diagram: click to enlarge
Cooperative sector limitations

Reach
While dairy Cooperatives have played an important role in Indian milk industrys development, but still dairy
cooperatives reach barely ~20% of the Indian farmers.
Competition
Dairy cooperatives face increasing competition from private dairies: both in procurement + retailing of milk.
Private players are more agile, offering better incentives to farmers compared to the cooperative.
Even the largest Indian dairy player (Amul)s annual turnover is quite lower than a large MNC dairy company
like Nestle.
Management
Dairy cooperatives are subject to state laws /regulations. But often, the elections in dairy cooperatives are won
using money and caste equations.
When such fraudsters get key positions in the dairy board, all they care is how to recover their investment by
taking bribes in appoint of dairy staff=> inefficiency + lack of new initiatives.
Hence, State governments need to make these dairy cooperatives more accountable, democratic and
professional in their functioning.
Downstream issues
#1: MRP and adulteration
WPI for Milk product= more than 190 (for 2012)
Meaning there is 90% increase in the wholesale price of Milk, compared to base year 2004.
This type of killer price rise=> has led to adulteration, fake milk from urea, Nakli-Maawaa etc. once in a while, youve seen
reports about this, particularly in Delhi-UP region.
Such fake milk products are extremely hazardous to health.
In long term, theyll destroy Indias name in foreign market, just like Chinese milk products lost business internationally, after
news reports of Melamine adulteration in 2008.
Synthetic Milk
Synthetic milk is prepared by mixing urea, caustic soda, refined oil (cheap cooking oil) and common detergents.
INGREDIENT Why added in synthetic milk?
REFINED
OIL
DETERGENT
CAUSTIC
As a substitute for milk fat.

Detergent acts as an emulsifying agent. Meaning it helps above refined oil to get mixed in water and give a
frothy white solution that looks like milk.
Even in legit (real) milk, the traces of detergent are found because farmers and dairy staff use cheap
detergents to clean vessels, buckets etc. but dont thoroughly wash them.
To neutralize the acidic PH of other ingredients and thus prevents fake-milk from turning sour during transport.
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SODA
To increase solid-not-fat (SNF) content.
Higher the SNF=better the milk-quality, fetches more price when sold to dairy.
it also increases viscosity (thickness) of the liquid so you feel youve bought premium quality milk .
UREA
STARCH
Prevents curdling in fake-milk.
Heath hazards of Synthetic milk: damages kidney, heart problems, cancer and even death
National Survey on Milk Adulteration 2011
Was conducted by FSSAI. click me to learn more about FSSAI
Bihar, Chhattisgarh, Odisha, West Bengal, Mizoram, Jharkhand and Daman & Diu= their milk failed in all tests.
only Goa and Puducherrys milk passed all the test.
~70% of Indian milk doesnt meet the standards set by set by the Food Safety and Standards Authority of India (FSSAI)
Last year, Union government quoted ^this report, while filling affidavit in SC about milk adulteration. Union also said that it Is state
governments responsibility to act on milk adulteration problem. Later SC asked state governments to file affidavit about what action
theyve taken.
#2: Ethnic products: untapped potential
Examples of ethnic milk products: Paneer, Rasogolla, Sandesh, Pantua, Rasomalai, Cham, Rajbhog, Kulfi, Rabri, Basundi, Burfi,
peda, Gulabjamun, Kalakand, Dahi, Mishti Doi, Lassi, Chhach / Mattha, Srikhand etc.
Scope: For ethnic milk products, profit level is ~12-38% of the input cost.
PROBLEM
SOLUTION
1. Most of the ethnic milk products are made by local halwaii /

sweet shop= unbranded, unorganized. Cant compete in
foreign market. You need to create a brand first to earn the
respect and trust of foreign customers.
2. Since this is done on small scale = they use cheap quality
packaging material, even harmful colors and preservatives
used, =Doesnt meet quality norm in US/EU market.
3. To make Indian ethnic milk products famous like cakes,
pastries, pastas and noodles => have to invest a lot in
marketing promotions abroad. Small scale firms cant do that.
1. Train small manufacturers of ethic dairy products, such

as halwaiis: make them to adopt hygienic practices, use
state / district level bodies, cooperatives, ITIs can be
involved in such efforts
2. Catalyze R & D for commercialization of ethnic dairy
products
3. The Ministry of Food Processing, in conjunction with
the NDDB, needs to undertake generic promotional
campaigns to enhance the image of Indian ethnic dairybased products in US/EU markets.
#3: Export issues

Import export of milk products (2012-13) in crore Rs.
export import
>700
>100
Earlier we saw India is located close to the milk deficit countries, but still India hasnt capitalized on this location advantage due to the
following reasons:
1.
2.
3.
4.
5.
Low quality and hygiene standards.

Only ~35% of milk produced in India is processed. Rest is sold by local doodhwalla= not enough milk available for export.
Domestic consumption of milk has increased => less surplus left for exports
Lack of experience in marketing products in international markets, particularly for ethnic milk products.
Low productivity and quality are the key reasons due to which processors in India, are not able to achieve the scale of operations
of their counterparts in New Zealand or Australia.
Ban
2011
Export of milk powders (Skimmed Milk Powders, Whole Milk Powders, Dairy Whitener, Infant Milk Foods etc.), Casein
and Casein Derivative was prohibited
2012 ban lifted, these milk/casein products export given under Vishesh Krishi and Gram Udyog Yojana(VKGUY)
Fonterra crisis
New Zealand = one of the biggest dairy exporter of the world.
Fonterra= New Zealands biggest dairy company
2013: News report came that Fonterras milk powder could have been contaminated with the Clostridium bacteria. It can cause
fatal botulism.
After this news report, China and Sri Lanka banned Fonterras products.
Fonterra CEO says: it was a false alarm, the bacteria variety found in our milk powder is not capable of causing botulism, but
nonetheless we have recalled all the batches exported. So dont worry
8/13
9/20/13
Anyways, all this negative publicity and banning of New Zealand dairy products= gives opportunity for Amul to tap those export
markets.
#4: Tax on inputs
In earlier times, dairy industry had been subjected to octroi and sales tax etc. creating a non-level playing field with the
unorganized sector.
There had been high level of taxation on dairy equipment and machinery (excise, sales tax, octroi) Even the excise duty on
polyethylene film, aseptic packaging machines, milk vending machines, pouch filling machines, used in packing and distribution.
This has hampered the growth of dairy industry. Although nowadays, taxes on most of these items have been reduced /
abolished.
Necessary Reform: Speedy implementation of GST.
Enough of supply chain, lets look at some allied topics: NDDB, Operation Flood, Government schemes related to dairy sector.
NDDB
National Dairy Development Board
Statutory body (1965)
apex organization of dairy cooperatives in the country
Chairman: Amrita Patel
HQ: Anand, Gujarat
2013: NDDB been in news because
AWARD
NDDB has Won Indira Gandhi Rajbhasha Award for the financial year 2011-12. (But declared in 2013).
Rajbhasha awards are presented to institutions for outstanding achievements in the use of Hindi
language to ministries/departments, banks and financial institutions, public sector undertakings and
employees.
CHAIRMAN
(PERSON IN
NEWS)
Dr. Amrita Patel: Chairman National Dairy Development Board.

Recently decided to resign.(although Mohan wanted her to continue).
After Vergese Kurien, the father of white revolution, she has been managing NDDB.
Operation Flood
1965 NDDB setup.
1970 NDDB launches Operation flood.
1996 The End of Operation flood.
Operation flood had three objectives:
1. Increase milk production (a flood of milk)
2. Increase farmers income.
3. Reasonable milk prices for consumers
Op.Flood setup following hierarchy of dairy cooperatives
LEVEL
Org.
VILLAGE
Primary Village Cooperative Society
DISTRICT
District Union
STATE
State Federations
NATIONAL NDDB
Operation flood worked in three phases from 1970 to 1996:
PHASE1
Setup dairy cooperatives in 10 states and link them with four metropolitan cities:
Mumbai, Delhi, Kolkata and Chennai.
Finance: by the sale of skimmed milk powder and butter oil gifted by the European
Union
PHASE2
Karnataka, Rajasthan, MP
Connected more than 40,000 villages and 4 million farmers in the dairy cooperative
umbrella.
finance: by World bank loan
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PHASE3
To consolidate the gains made from previous phases.

Vaccination, Breeding research, artificial insemination, farmers training etc.
The end: 1996
Result of Operation Flood

Made India the largest Milk producer of the world.
Imports of milk solids ended. Our milk requirements now met through desi-dairies. (Otherwise imagine, if we were still relying on
imported milk, like imported crude oil than what will be the current account deficit and rupees downfall!)
CONSUMER
EMPOWERMENT
1. Per capita milk availability increased.

2. Reduced the regional imbalance in milk availability.
3. Reduced the seasonal variation in milk prices.
ECONOMIC
EMPOWERMENT
4. Farmers connected in cooperative dairy grid=no exploitation, increased income.

5. Village dairy cooperatives= less nuisance than APMC / food grain middlemen.
SOCIAL
EMPOWERMENT
6. Milk production doesnt require much land. Even landless poor can participate.
7. Village Milk Cooperatives bypassed the feudal power structure associated with cropping/foodgrains
in villages. It covered farmers from all castes and religion.
8. In that way, operation flood was more successful in Social empowerment than land reforms and
Panchayati raj.
WOMEN
EMPOWERMENT
9. Many women dairy cooperatives were setup. (Particularly during and after phase III)
10. Women became direct members and office bearers of such cooperatives and started earning.
11. You may have seen in the latest Amul ad Maari bairi sethani thai gayi che: translated my wife has
become a Sethani (thanks to dairy income from Amul.)
Government Schemes
(Although given in previous article, but copy pasting again for the sake of continuity during reading-revision)
Department of Animal Husbandry, Dairying & Fisheries
They run following schemes:
1. install Bulk Milk Coolers at village level close to the area of milk production
2. for installation of bulk milk cooler
Intensive Dairy Development Scheme

(IDDS)
100 per cent grants in aid given to provided to Dairy Milk

Unions/Federations:
for Dairy processing and marketing
for milk equipment for bulk milk coolers, chilling centers, refrigerated tankers
and cold storage
for developing dairy infrastructure at the village and district level.
Dairy Entrepreneurship Development

Scheme (DEDS)
to encourage entrepreneurs in setting up modern dairy infrastructure for clean

milk production
helps in bulk milk coolers, transportation facilities including refrigerated vans,
cold storage facility
fodder
Centrally Sponsored Fodder and Feed Development Scheme (CSFFDS)

with help of state governments
clean milk
Official name: Strengthening Infrastructure for Quality & Clean Milk

Production
trains of farmers on good milking practices
Fund to setup Bulk Milk Cooler (BMC) @village level.
fund to setup laboratories for testing of milk
National Dairy Plan (NDP)

By National dairy development board (NDDB), with support from International Development Association (IDA)
Phase-1 (2012-17) was launched at Anand, Gujarat.
Scheme will run in 14 states Uttar Pradesh, Punjab, Haryana, Gujarat, Rajasthan, Madhya Pradesh, Bihar, West Bengal,
Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Orissa and Kerala.
^These states collectively account for over 90% of countrys milk production.
mrunal.org/2013/09/food-processing-milk-dairy-sector-supply-chain-upstream-downstream-issues-amul-model-operation-flood.html?utm_source=feedbu
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National Dairy plan will do following:

1. Breed improvement + animal nutrition=> increase milk production, reduce methane emission.
2. Strengthen of village based milk procurement system= Rural milk producers to get greater access to the organized dairy sector.
3. Use of ICT technology: Internet Based Dairy Information System (i-DIS), Data warehousing System along with Business
Intelligence tool etc.
4. HRD, management, knowledge sharing, R&D and other fancy stuff
Funding pattern
ca$h comes from
1. International Development Association (IDA) of the World Bank

2. Central government (Department of Animal Husbandry, Dairying and Fisheries)
NDDB: National Dairy Development Board (a statutory body)
to
End Implementing Agencies (EIAs):

ultimately to
State Government
Cooperative dairy federations
Milk Producers Unions
ICAR institutes, and veterinary/dairy institutes and universities
Mock Questions
MCQs
1. Correct Statements about Foot and mouth disease(FMD)
a. It is caused by brucellosis bacteria
b. Wild animals are immune to FMD
c. FMD is usually lethal to Adult buffalo
d. None of above
2. Incorrect Statement about Foot and Mouth disease (FMD)
a. Pigs are considered amplifying hosts for FMD
b. Pigs themselves are immune to FMD
c. Both
d. None
3. Find odd term
a. Sahiwal
b. Murrah
c. Gir
d. Kankrej
4. Correct statement about Azolla fern
a. It is a weed that negatively affects paddy cultivation.
b. If Azolla fern is mixed with fodder, it improves the health of cattle.
c. both
d. none
5. Why is caustic soda used in manufacturing of synthetic milk?
a. To act as an emulsifying agent and give frothy appearance to the liquid.
b. To neutralize the acidity of other ingredients and stops milk from turning sour
c. To increase the milk fat content
d. None of above
6. Correct statements about National Dairy plan
a. Itll be uniformly applied to all 28 states of India, in its first phase.
b. International Development Association will finance part of this project.
c. Both
d. None
Descriptive
2m
1.
2.
3.
12m
1.
2.
3.
25m
1.
2.
NDDB
Intensive Dairy Development Scheme (IDDS)
Dairy Entrepreneurship Development Scheme (DEDS)
Write a note on NDDB and its contribution in white revolution.
National Dairy Plan (NDP) is a scientifically planned multi-state initiative to improve milch animal productivity. Comment
Write a note on the functions of Department of Animal Husbandry, Dairying and Fisheries.
The destruction of Indias village system was the greatest of Englands blunders.
Government initiatives to boost the milk productivity in India.
11/13
9/20/13
3. Dairy cooperatives have played an important role in the women empowerment and social transformation of rural India.
Comment
4. Write a note on the upstream and downstream issues in the dairy sector of India.
Essay (200m)
1. Education remains the key to both economic and political empowerment.
2. There is more potential for economic growth in rural India than at any time in decades.
3. The Internet is becoming the town square for the global village of tomorrow.
4. Emigration, forced or chosen, is the quintessential experience of our time.
5. The notion of the world as a village is becoming a reality.
6. A nation that continues year after year to spend more money on military defense than on programs of social uplift is
approaching spiritual doom.
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13 comments to [Food Processing] Milk Dairy Sector, Supply Chain, upstream downstream issues,
Amul Model, Operation Flood
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Aditya
Reply to this comment
awesome work
ZING
MCQ answers (subject to correction)
1.d
2.b
3.b
4.b
5.b
6.b
ravi
so nice work sir
Uday Kumar Jha

Thanks a ton Mrunal, Just waiting for this piece!!! Thanks for your old articles too!
lalith kumar
hi sir will dis food processing topic will help in appsc i.e state pub service exam in science n techh paper..?
12/13
9/20/13
sujeet
Nice one bro !!
Mehul
hi all,
regarding the essay question There is more potential for economic growth in rural India than at any time in decades.
what points could be included in this? can we disagree with the title of such essay?
Anil
National Son-in-law encroaching land.. very goog hahaha..
PR
Can anybody tell me how will be the CPT test for FCI gradeIII, the sort of questions?????????
SAM
hello mrunal,
can anyone tell me what all comes in the investment model
(GS 3)
jude_lucy
i wonder where is Manu Jha?!
GUHA
HIE MRUNAL
I JUST WANTED TO INQUIRE ABOUT NICL AO EXAM HELD ON 8TH SEP 2013:
1= WHAT ARE THE SALARIES AND PERKS OF THESE OFFICERS
2= WHAT IS THE LEVELS OF HIERARCHY IN THE ORGANISATION
3= IS THERE ANY FOREIGN EXPOSURE IN THE ORG.
4= CAN WE PREPARE FOR CIVIL SERVICE IF WE JOIN IT.
5= IS IT BETTER THAN SBI PO
6= PLEASE ELABORATE SOME PROS AND CONS OF JOINING THE ORG
PLEASE ANSWER ALL THE QUESTIONS POINT WISE
THANK YOU
sushma
thank u very much.. we need articles about ethics paper..
13/13

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9/20/13

SEPTEMBER 19TH, 2013

Food processing industry: Awesomeness and Obstacles

topic in this article

Dairy industry in India.

How the Fonterra crisis will

(GS3) economics of animal-rearing

Lot fodder material.

for Milk/Dairy business.

Scope-Significance of Dairy Sector

India has the worlds largest livestock population

To Farmers, Women And Consumers

India has proximity to milk deficit countries e.g.

Milk (Million Tonnes) Eggs(Million Nos.) Fish(Million Tonnes)

Location: Dairy cooperatives

Gujarat Cooperative Milk Marketing Federation (GCMMF)

Andhra Pradesh Dairy Development Cooperative Federation

Karnataka Cooperative Milk Producers Federation (KMF)

Mahanand, Gokul, Dhawal, Dudh

Maharashtra Rajya Sahakari Maryadit Dugdh Mahasangh

Punjab State Cooperative Milk Producers Federation (MILKFED)

Tamilnadu Cooperative Milk Producers Federation Ltd (TCMPF)

Avg. Cow Milk Kg Per Year

World Average 3100

Cow: Sahiwal, Gir, Rathi and Kankrej

promote in ___ area

HOLSTEIN FRIESIAN in feed-fodder rich states

in states poor in feed/fodder resources.

Rich farmers=irrigation /tubewell =can grow fodder=>higher milk yields

to improve quality of nutrition for the livestock

Azolla is a floating fern. It resembles algae, Multiplies very rapidly.

Azolla is a Nitrogen fixing fern= aids in the growth of rice.

1. lack of all-weather roads in many villages

1. Contamination through equipment. Because lack of potable water=> milk-cans, buckets,

Result: following properties of milk get affected

fat, protein etc.

(PM Lal Bahadur Shashtri)

1971 Gujarat Cooperative Milk marketing federation setup (GCMMF)

In the given village, a dairy Cooperative Society (DCS) is formed.

The main boss is Gujarat Cooperative Milk marketing federation (GCMMF).

Cooperative sector limitations

As a substitute for milk fat.

Prevents curdling in fake-milk.

1. Most of the ethnic milk products are made by local halwaii /

1. Train small manufacturers of ethic dairy products, such

#3: Export issues

Low quality and hygiene standards.

Dr. Amrita Patel: Chairman National Dairy Development Board.

Primary Village Cooperative Society

To consolidate the gains made from previous phases.

Result of Operation Flood

1. Per capita milk availability increased.

4. Farmers connected in cooperative dairy grid=no exploitation, increased income.

Intensive Dairy Development Scheme

100 per cent grants in aid given to provided to Dairy Milk

Dairy Entrepreneurship Development

to encourage entrepreneurs in setting up modern dairy infrastructure for clean

Centrally Sponsored Fodder and Feed Development Scheme (CSFFDS)

Official name: Strengthening Infrastructure for Quality & Clean Milk

National Dairy Plan (NDP)

National Dairy plan will do following:

1. International Development Association (IDA) of the World Bank

End Implementing Agencies (EIAs):