AEC-251

Financial Analysis of Production

of Curd in Dakshin Dinajpur

Submitted by- Shubhankar

Kabraj
Roll no. Ag-32
Reg. no. Ag-32 of 2015-2016
Bidhan Chandra Krishi
Viswavidyalaya
 INDEX
No. Subject Page No.

01. Introduction 3
 Importance
 Objective

02. Methodology 6
 Selection of Area
 Method of interrogation

03. Technical Analysis 7

 Tools used
 Method of Processing

04. Financial Analysis 10

 Fixed Cost
 Variable cost
 Gross Return
 Net Return
 Output-input ratio

05. Conclusion 12

06. Acknowledgement 12

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Introduction:

Curd is one of the oldest foods in human history. It is a dairy product, obtained by
coagulating milk, in a process called curdling. Although accidentally discovered thousands of
years ago, curd has now gained popularity all over the world ( recently within the last 30-40
years) due to many factors including the introduction of fruit and other flavorings and
converting it into yogurt, the convenience of it as a ready-made break-fast food and the
image of yogurt as a low fat healthy food.

It is believed that curd originated in Mesoptomia thousands of years ago. Evidence

has shown that these people had domesticated goats and ships around 5000B.C. The milk
from these animals was stored in gourds, and in warm climate it naturally formed curd.

Now a days, the coagulation of milk can be done by adding rennet or any edible
acidic substance such as lemon juice or vinegar and then allowing it to sit. The increased
acidity causes the milk proteins (casein) to tangle into solid masses, or curd. Milk that has
been left to sour (raw milk alone or pasteurized milk with added lactic acid bacteria) will also
naturally produce curd. In general curd is made with a variety of ingredients including milk,
sugar, stabilizers, and a bacterial culture (Lactobacillus bulgaricus).During fermentation
these organisms interact with the milk and convert it into curd. They also change the flavor of
the milk giving it the characteristic yogurt flavor of which acetaldehyde is one of the
important contributors. The primary byproduct of the fermentation process is lactic acid. The
acid level is used to determine when the yogurt fermentation is completed which is usually
three to four hours. The suppliers of these yogurt cultures offer various combinations of the
two bacterial types to produce yogurts with different flavors and textures.

Recently, manufacturers have responded to the growth in the curd market by

introducing many different types of curds (yogurts), including low fat and no-fat, creamy,
drinking, bio-yogurt, organic, baby, and frozen. Traditional yogurt is thick and creamy. It is
sold plain and in a wide assortment of flavors.

Importance:

Who doesn’t love curd? Be it with a steaming paratha, or as chaas, curd is often
quite a staple in most Indian households. But this versatile dish has a number of health
benefits too. Here’s how curd helps us in staying healthy.

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  Helps improve digestion: Not only the nutrients present in curd are easily
absorbed by your digestive system, but also it helps in absorbing nutrients from
other food items. It can also be used along with spicy food, as curd cools down
and neutralises the heat that these foods create. A Taiwanese study even found
that curd is helpful in curing H. Pylori infections which is known to cause peptic
ulcers. You may also like to read about these home remedies for peptic ulcers.
 Healthy for heart: In a day and age where more and more young people are
falling prey to heart disease, consuming curd can go a long way in maintaining a
healthy heart. It minimizes the risk of high blood pressure and helps
reduce cholesterol levels by preventing the thickening of carotid arteries.
 Great for lactose intolerants: Some people, who cannot consume milk because
of being lactose intolerant, can safely consume curd. It converts the lactose
present in milk to lactic acid, making it easier to digest. Also, he/she do not lose
out on the nutritional boost that milk provides.
 Helps in boosting immunity: Curd has ‘good bacteria’ present in it which
strengthens our immune system by fighting against several microorganisms that
are present in the body. It is also useful in preventing vaginal yeast infections in
women. These properties of curd do not diminish even when it is heated along
with curry preparations to add flavour.
 Good for teeth and bones: All dairy products are good for our bones, and curd
is no different. Like milk, curd has a high amount of phosphorous and calcium.
This makes it beneficial for our teeth and bones as it helps promote bone growth
and makes our teeth stronger. Taking care of our bones is essential if we want to
avoid painful diseases like osteoporosis and arthritis in the future.
 Can be used as a skincare product: Nutrients like zinc, Vitamin E and
phosphorus make curd a natural skincare product and it is often used as an
ingredient in homemade packs. A simple mixture of curd, gram flour and lime
juice can be made at home to give you an attractive and glowing face.
 Helps get rid of dandruff: The lactic acid, present in curd, has anti-fungal
properties. Adding curd to our scalp and leaving it for an hour, and then washing
properly with water is one of the best home remedies for getting rid of dandruff.
 Helps in losing weight: Whenever nutritionists make a diet plan, the first thing
they include is curd. The calcium present in it prevents our body from pumping
more cortisol. Hormonal imbalance of cortisol is responsible for a host of
problems like hypertension, obesity and cholesterol.

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  Helps release stress and anxiety
According to a study conducted by UCLA’s School of Medicine, eating curd was linked
to lower levels of activity in the part of brain responsible for emotion and pain.

Nutritional Value per 100g of Curd:

Energy 257KJ
(61kcal)
Carbohydrates 4.7g

Sugar 4.7g

Fat 3.3g

Saturated 2.1g

Monounsaturated 0.9g

Protein 3.5g

Vitamin A equiv. 27µg

(3%)
Riboflavin (Vit. B2) 0.14mg
(9%)
Calcium 121mg
(12%)
(*) Lactose content diminishes during storage.
Source: USDA Nutrient Database

All these health benefits make curd a superb food item that you and your family should
consume on a daily basis.

Objective:
1. To study the financial analysis of curd in market.
2. To study the value addition of curd.
3. To study the problems of curd processing.
4. To study the price spread and marketing margin of curd.
5. To study the socio economic conditions of the curd producers.
5. To know the technology adopted in curd processing and the production procedure
of curd.

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Methodology:

Selection of Area: I, being a resident of Balurghat, Dakshin Dinajpur, choose the

Tapan Subdivisiion of district, under the Tapan Block.
Method of interrogation: I went to the house of Mr. Biswajit Ghosh, owner of ‘Maa
Durga Mishtanno Bhandar’ as he produces and sells his products directly from his
house.

He was a very helpful

person. Though he was busy at
his works, he answered all my
questions, quenched all my
queries and cleared all my
doubts regarding curd
preparation. He described the
whole process, precautions to
be taken, and then mentioned all
the costs regarding curd preparation, according to the questions I asked him. I noted down all
the important points and also recorded our whole conversation in my smartphone.

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Technical Analysis:

Tools used:
1. Earthen Oven: It is
used to boil the milk at
a certain temperature.
Generally dry woods
are used as fuel in this
earthen oven. It’s very
important to maintain
the temperature while
boiling the milk, so
very experienced
worker is needed.
Besides, a special wood, locally named ‘Titol Khori’ , is used for this purpose for
proper maintainance of temperature.

2. Gas Oven: It is also

used for boiling the
milk and heating
purpose. Being a
small businessman
and provider of curd,
Mr.Ghosh generally
uses the earthen oven
as the fuel cost is
less in this oven.
But, during rainy
season, in adverse situations, when the earthen oven can’t be used, then the gas oven
becomes the only source.

Generally in factories, where the amount of production is huge, gas oven is generally used.

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 3. Utensils: A large
number of utensils
are required in
different steps of
curd preparation. For
boiling the raw milk,
for cooling the milk,
for preparing the
sugar, and for other
several works several
utensils are required.
The earthen pots, in which the curd is generally sold in market, also have an important
role and acts as secondary utensil in curd processing.

4. Fermentation Chamber/Oven:
It is a special type of chamber,
where a fixed temperature is
maintained. It’s a special type of
chamber, where the earthen pots
of curd are placed after they are
filled up with boiled milk and the
bacteria. In this oven, the clay
pots are placed on the ground,
under which a fire place is kept.
As it is very important to maintain
the temperature of the chamber,
generally charcoal is used here as
fuel. The whole system is covered
with a huge cone shaped cover to
protect the curd from dust or flies.
After setting the pots in the
chamber, the whole system is

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 covered with the cone and kept for a particular period of time for fermentation.

But, in factories, where the amount of production is huge, there are separate fermentation
chambers for the fermentation of milk.

5. Refrigerator: It is used for preservation purpose and cooling purpose. When the
supplier gets a huge amount of deal at a time, he has to prepare the curd in several
stages. Then the refrigerator plays an important role in preserving the curd. Besides in
adverse conditions, when the work stops suddenly, refrigerator plays an important
role in preserving the raw materials.

Method of Processing:
I. At first raw milk is bought from the market very carefully checking the quality,
because, if there is a
huge amount of
adulterants in the milk,
the quality of the curd
will be affected.
II. Now, sugar is bought
and it is fried in a pan on
oven in low heat slowly
till it melts and take
brown color and become
solid or semi solid
crystallized. For 100KG of
milk, 10KG sugar is needed. The 10KG sugar is heated till the volume is reduced to
6KG, i.e. the volume is reduced to 60%.
III. The milk is taken in a big pan for boiling. The milk is boiled on heat till the volume is
reduced to 50%. Then the fried sugar is added into the milk and then again boiled till
the volume is reduced to 30% of the initial volume of milk. For 100KG of milk, at

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 first the volume is at first reduced to 500g and then the sugar is added and then boiled
again till the volume is reduced to 300g.

IV. In the mean time, the earthen pots, in which the curd is sold, is kept in the
fermentation chamber/oven for heating and disinfecting the pots for about 3 hours. So
after 3 hours, the boiled and sweetened milk is poured in the pots and the bacteria
culture is added in the pots and stirred properly for proper mixing of the bacteria
culture and milk. Generally curd is used as the source of bacteria culture.
V. Now these pots are kept in the fermentation chamber/oven under fixed and controlled
temperature and finally after 8hours curd is formed and the pots are taken out from
the oven.
VI. Finally, the pots are kept in refrigerator for cooling the curd and preserving them.

 For Kheer Curd, the procedure becomes slightly different. The milk is
boiled more after adding sugar. In this case, the volume is reduced to 15%
of the initial volume and then poured in the earthen pots and placed in the
fermentation chamber. So, for 100kg milk, the volume is reduced to 150g.
It’s very simple to describe the process of preparing the Kheer Curd, but it
requires a lot experience and efficiency in several stages, e.g. heat
controlling, volume reducing etc.

Financial Analysis:

Fixed Cost:
 Land and Hut: Own
 Utensils: 30,000
 Earthen Oven: 500
 Gas Oven: 1,200
 Gas Connection: 5,500
 Refrigerator: 30,000
 Fermentation Chamber: 2,000

Total Fixed Cost: 69,200

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(# all prices given, are in Indian Currency Rupees)

Variable Cost:
For preparing 30kg of curd, 100kg milk is required. So, here we will calculate the cost
of preparing 30Kg curd.

 Milk: Price for 100kg= (35*100)= 3,500

 Sugar: Price for 10Kg= (43*10)=430
 Fuel(wood): 1quintal= 600
 Earthen Pots: 6pots= (18*6)=108
 Electric Bill: per day= 20

Total Variable Cost: 4,658

(# all prices given, are in Indian Currency Rupees)

 Gross Return:
In market, curd is sold in earthen pots, according to the weight of the pot. But in a
One Kg pot, there actually contains 600g of curd. The rest weight is made up by the
earthen pot. So, 30Kg of curd can fill up 50 earthen pots, having weight 1Kg per curd-
pot.

Now, price of 1Kg curd-pot = 150

Therefore, Price of 50 curd-pots = (150*50) = 7500
So, Gross Return = 7500

 Net Return:
Net Return = (Gross Return- Total Variable Cost)
= (7500 - 4658)
= 2852
So, Net Return = 2852

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  Output Input Ratio:

Output Input Ratio = (Gross Return / Total Variable Cost)

= (7500 / 4658)

= 1.61013

So, Output-Input Ratio = 1.61013, which is greater than 1.

(# all prices given, are in Indian Currency Rupees)

Conclusion:

As the output-input ratio is greater than one, so the production is economically viable.
Production of curd from milk can provide a huge amount of profit if it is done in factories
with machineries. But, if done in small production system, with human labour, it’s less
profitable. In countries like India, few companies produce curd. So, it requires much more
investment from companies, and only thereafter it can earn huge profit.

Acknowledgement:

At the end of the project, there should always be a note of acknowledgement to those
for whom the project has become possible. Firstly, I am highly obiliged to Prof.
Hasrat Ali, our course instructor for his immense patience in making us understand
the procedure of the project and the importance of doing so. Without his great effort,
it could never be possible. Secondly, Mr. Biswajit Ghosh, owner of the shop ‘Maa
Durga Mishtanno Bhandar’, has been very much helpful to me for the project.
Thanks to his eagerness of helping me throughout the time of making the project.
Thanks to my parents for their support and help for completing the project in a perfect
manner. And thanks to Google and Wikipedia for supplying me several informations
regarding this project.

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