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EXECUTIVE SUMMARY Introduction Andhra Pradesh is one of the agriculturally most advanced states in India but still has high levels of rural poverty. In the rural economy, milk is one of the most important products of cattle and buffalo enterprises, contributing over 51.5 percent of the value of all livestock output. increasing milk production from these farm types could be an efficient way to improve rural livelihoods. The main purposes of this study were to: (1) Gain insights into the household /dairy farming economics in Andhra Pradesh, (2) Assess the impact of the main dairy development activities on household income and on the economic competitiveness of typical dairy farms in the state, (3) Evaluate the impacts of the main development activities on the risk profiles of the farms, and (4) Assess the impact of combined dairy development programs on the economic and risk profiles of typical farms in the state. In order to achieve the above, a methodology to quantify the farm-level impacts of different local dairy development programs, policies, interventions and ideas as seen by local dairy stakeholders (policy makers, farmers, milk processors, NGOs, etc.) was developed. The results are intended to inform the political process to initiate discussion for finding the most efficient dairy development activities. Trends of Milk production in India and Andhra Pradesh India produced about 92 million tons of milk in 2004, accounting for 15 percent of total world milk production. Average milk yield in India, at 800 kg per dairy animal per year have been increasing steadily between 1996 and 2003 at an average annual rate of 3.8 percent. Andhra Pradesh (AP) accounts for 8.4 percent of the national dairy animal population and produces 7.6 percent of the countrys milk. Andhra Pradeshs milk production comes mostly from farms of less than 2 hectares with 1 to 4 dairy animals. The milk yields in Andhra Pradesh are slightly higher than the Indian average and are increasing at a faster rate. Farm gate milk prices, however, are slightly lower than the average for India. India ranks first in milk production with total volume of 115 million tons. Driven by steady population growth and rising income, milk consumption continues to rise in India. World milk production declined by 2 per cent in the last three years, according to FAO estimates, Indian production has increased by 4 per cent. The milk production in India accounts for more than 13% of the total world output and 57% of total Asia's production. The top five milk producing nations in the world are India ,USA, Russia, Germany and France.

Business ; Objectives ::
GOAL OF THE MISSION

To increase average milk purchase price being paid to milk producers at least by one rupee/Liter. To reduce average milk price being charged from consumer at least by rupee one/Liter To improve productivity and profitability of dairy business from existing level by rupees three per liter through unique innovative system of controlling costs and improving revenue. PROJECT BENEFITS

Project will improve socio-economic status of large numbers of dairy farmer families. Project will provide safe and high quality dairy products to urban consumers. Project would create excellent and viable direct/indirect employment opportunities Project would contribute immensely in improving global peace and and prosperity. MISSION OBJECTIVES

To uplift the socio-economic conditions of milk producers in India To provide consumers with high quality dairy products at a reasonable price To set up an innovative processing infrastructure that balances interests of both consumers and milk producers NEED FOR OBJECTIVES

High rates of rural unemployment Current initiatives have been largely unsuccessful A large number of milk processing units are fast becoming economically non-viable due to unfair trade practices and global competition

Milk producers are not getting remunerative prices Consumers are getting substandard milk and milk products MISSION OBJECTIVES:

To promote the feeling of universal brotherhood among milk producers, entrepreneurs, consumers and dairy professionals connected with dairy industry.

To upgrade the status of dairy industry at state, national, and international levels with the mutual help, understanding and co-operation of all concerned.

To extend full support and help in creating required infrastructure, which gives maximum protection to the interests of milk producers, consumers of dairy products, entrepreneurs and professionals connected with the dairy industry.

To provide techno-commercial support to the dairy industry for improving milk production, quality of milk /milk products, productivity of all business operations and economic viability of all its constituents i.e. milk producers, entrepreneurs, consumers and dairy professionals.

To project an innovative informal co-operative business model, collectively promoted, owned and managed by milk producers, entrepreneurs, consumers and dairy professionals.

To create "Techno Commercial Information Bank" to facilitate technology transfer from advanced countries to under developed /developing countries with the objective to upgrade the quality of their dairy products to meet international standards.

To prepare rehabilitation plans for low profits making / sick dairy projects and help their management in implementing such plans within shortest possible time span.

To create a " Global Training Institution" with well co-ordinated branch links at national and state levels for upgrading the managerial skills of key professionals.

To promote " Ideal food among all foods " image for milk and " Ideal profession among all professions " status for dairying as a profession.

To use dairying as a media / instrument of bringing prosperity for all, promoting world peace and ushering in era of universal integration.

2.form of ownership :
The GCMMF is the largest food products marketing organisation of India. It is the apex organisation 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. These cooperatives collect on an average 9.4 million litres 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. Kerala Co-operative Milk Marketing Federation (KCMMF) or Milma started its operation in 1980 with [1] its head office at Thiruvananthapuram. It was started under the Indo-Swiss project. The project was launched in 1963 on the basis of a bilateral agreement executed between the Swiss Confederation and the Government of India

Funding Requirement a)

Debt :

Initial growth (first revenues) investment project in India

Country: India Industry: Agriculture Stage: Initial growth (first revenues) Project tags: Investment In Agriculture,Dairy Farming, Investment In Dairy Farming Required Investment: $50,000 Minimum Investment: $40,000 Date submitted: 20 April 2012 Project views: 916 Unique project views: 825 Project impressions: 1,118 Get help

Description of product : Milk products like butter, curd, ghee, etc have become an essential part of our food and are consumed in good quantity every day. Inspite of the huge demand that exists for such milk based items conventional methods are employed for producing these items. These milk products are being made with easy both in rural and urban areas using conventional and modern tehcniques.