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Entrepreneurship in Dairy product

In Partial fulfillment of the requirements For the degree of


!u$%itted to& !u$%itted $y& #r' Par(inder !in)h Pandey *+,--.,-/.,0 1 Ra2neesh s3a%i *+,--.,-/04 /1 A%it


PREFACE An individual can not do project on this scale. I take this opportunity to e press my ackno!ledgement and deep sense of gratitude to individuals for rendering valua"le assistance and assistance and gratitude to me .#here inputs have played a vital role in success of this project $formal piece of ackno!ledgement may not "e sufficient to e press the felling of gratitude to!ards people !ho have helped me in successfully completing my project. I highly thankful to %r. Parvinder &ingh for guidance. I firmly "elived that there is al!ays a scope of improvement. I !elcome any suggestion for further enriching the quality of this report.

Amit 'umar Pandey

DECLARATION I here"y declare that the project onEntrepreneurship in Dairy producthas "een su"mitted "y me for the partial fulfillment for the a!ard of the degree of (achelors of (usiness Administration. #his report has "een "ased on my study under the guidance of %r. Parvinder &ingh. I undertake responsi"ility for the contents of this report. ) Amit 'umarPandey


India derives nearly 33% of the gross Domestic population from agriculture and has 66% of economically active population,engaged in agriculture. The share of livestock product is estimated at 21% of total agriculture sector. The fact that dairing could play a more constructive role in promoting rural elfare and reducing poverty is increasly !eing recognised . "ilk production alone involves more than #$ million producers, each raising one or t o co s% !uffaloes primarily for milk production . The domesticated ater !uffalo is one of the gentlest of all farm animals ,hence it can !e !reeded easily. The dairy sector offers a good opportunity to entrepreneurs in India. India is a land of opportunity for those ho are looking for ne and e&panding markets.'ro th propsects in the dairy sector are very !right.

#AR7ET Dairy development in India has !een ackno ledged the orld over as one of modern India(s most sucessful development programme. India is the second largest milk producing country ith anticipated production of a!out #) million tons during 1***+ 2$$$. The production of milk products stoood at 3.$# lakh tonnes in 1***+2$$$. ,roduction ofmilk po der including infant milk food has risen to 2.2- lakh tons in 1***+ 2$$$, hereas that of malted food is at 6-$$$ tons. .ff late market for milk products is sho ing a steady increase.


"odern and ell esta!lished scientific principles ,practices and skills should !e used to o!tain ma&imum economic !enefits from dairy farming. /ome of the ma0or norms and recomondationtions are1 2are full selection of animals, feeding of animals,milking of animals

Why do Dairy Farming ? 1.1 Dairying is an important source of subsidiary income to small/marginal farmers and agricultural labourers. The manure from animals provides a good source of organic matter for improving soil fertility and crop yields. The gober gas from the dung is used as fuel for domestic purposes as also for running engines for drawing water from well. The surplus fodder and agricultural by-products are gainfully utilised for feeding the animals. Almost all draught power for farm operations and transportation is supplied by bullocks. Since agriculture is mostly seasonal there is a possibility of finding employment throughout the year for many persons through dairy farming. Thus dairy also provides employment throughout the year. The main beneficiaries of dairy programmes are small/marginal farmers and landless labourers. A farmer can earn a gross surplus of about !s. 1" ### per year from a unit consisting of " milking buffaloes. The capital investment re$uired for purchase of " buffaloes is !s. 1% ""&/-. 'ven after paying a sum of !s. (")(/- per annum towards repayment of the loan and

interest the farmer can earn a net surplus of !s. *### - )###/- appro+imately per year. ,-or details see model scheme enclosed.. 'ven more profits can be earned depending upon the breed of animal managerial skills and marketing potential. 1." According to /orld 0ank estimates about 12 per cent of 3ndia4s )(# million people are in 2.%1 million villages cultivating over 1(2 million hectares of cropland. Average farm si5e is about 1.** hectares. Among 1# million rural households (" per cent operate upto " hectares and &1 per cent are landless households. These landless and small farmers have in their possession 2& per cent of the animals and produce 21 per cent of the milk. Thus small/marginal farmers and land less agricultural labourers play a very important role in milk production of the country. Dairy farming can also be taken up as a main occupation around big urban centres where the demand for milk is high. 2. Scope for Dairy Farming and its National Importance. ".1 The total milk production in the country for the year "##1-#" was estimated at %(.* million metric tonnes. At this production the per capita availability was to be ""* grams per day against the minimum re$uirement of "2# grams per day as recommended by 367!. Thus there is a tremendous scope/potential for increasing the milk production. The population of breeding cows and buffaloes in milk over & years of age was *".* million and (".( million respectively ,1))" census. "." 6entral and State 8overnments are giving considerable financial assistance for creating infrastructure facilities for milk production. The nineth plan outlay on Animal 9usbandry and Dairying was !s. "&(2 crores. 3. Financial Assistance Available from an!s"NA A#D for Dairy Farming.

&.1 :A0A!D is an ape+ institution for all matters relating to policy planning and operation in the field of agricultural credit. 3t serves as an ape+ refinancing agency for the institutions providing investment and production credit. 3t promotes development through formulation and appraisal of pro;ects through a well organised Technical Services Department at the 9ead <ffice and Technical 6ells at each of the !egional <ffices. &." =oan from banks with refinance facility from :A0A!D is available for starting dairy farming. -or obtaining bank loan the farmers should apply to the nearest branch of a commercial or co-operative 0ank in their area in the prescribed application form which is available in the branches of financing banks. The Technical <fficer attached to or the 7anager of the bank can help/give guidance to the farmers in preparing the pro;ect report to obtain bank loan. &.& -or dairy schemes with very large outlays detailed reports will have to be prepared. The items of finance would include capital asset items such as purchase of

milch animals construction of sheds purchase of e$uipments etc. The feeding cost during the initial period of one/two months is capitalised and given as term loan. -acilities such as cost of land development fencing digging of well commissioning of diesel engine/pumpset electricity connections essential servants4 $uarters godown transport vehicle milk processing facilities etc. can be considered for loan. 6ost of land is not considered for loan. 9owever if land is purchased for setting up a dairy farm its cost can be treated as party4s margin upto 1#> of the total cost of pro;ect. $. Scheme Form%lation for ban! loan. (.1 A Scheme can be prepared by a beneficiary after consulting local technical persons of State animal husbandry department D!DA S=?? etc. dairy co-operative society/union/federation/commercial dairy farmers. 3f possible the beneficiaries should also visit progressive dairy farmers and government/military/agricultural university dairy farm in the vicinity and discuss the profitability of dairy farming. A good practical training and e+perience in dairy farming will be highly desirable. The dairy co-operative societies established in the villages as a result of efforts by the Dairy Development Department of State 8overnment and :ational Dairy Development 0oard would provide all supporting facilities particularly marketing of fluid milk. :earness of dairy farm to such a society veterinary aid centre artificial insemination centre should be ensured. There is a good demand for milk if the dairy farm is located near urban centre. (." The scheme should include information on land livestock markets availability of water feeds fodders veterinary aid breeding facilities marketing aspects training facilities e+perience of the farmer and the type of assistance available from State 8overnment dairy society/union/federation. (.& The scheme should also include information on the number of and types of animals to be purchased their breeds production performance cost and other relevant input and output costs with their description. 0ased on this the total cost of the pro;ect margin money to be provided by the beneficiary re$uirement of bank loan estimated annual e+penditure income profit and loss statement repayment period etc. can be worked out and shown in the ?ro;ect report. A format developed for formulation of dairy development schemes is given as Anne+ure 3. &. Scr%tiny of Schemes by ban!s. The scheme so formulated should be submitted to the nearest branch of bank. The bank4s officers can assist in preparation of the scheme for filling in the prescribed application form. The bank will then e+amine the scheme for its technical feasibility and economic viability. 'A( )echnical Feasibility * this +o%ld briefly incl%de *

1. ".

&. (. 2.

6. 3vaila!ility of veterinary aid%!reeding centres and milk marketing facilities near the scheme area.

:earness of the selected area to veterinary breeding and milk collection centre and the financing bank4s branch. Availability of good $uality animals in nearby livestock market. The distribution of important breeds of cattle and buffaloes are given in Anne+ure 33. The reproductive and productive performance of cattle and buffalo breeds is given in Anne+ure333. Availability of training facilities. Availability of good gra5ing ground/lands. 8reen/dry fodder concentrate feed medicines etc.

' ( ,conomic -iability * this +o%ld briefly incl%de * 1. ". &. (. 2. *. @nit 6ost - The average unit cost of dairy animals for some of the States is given in Anne+ure 3A. 3nput cost for feeds and fodders veterinary aid breeding of animals insurance labour and other overheads. <utput costs i.e. sale price of milk manure gunny bags male/female calves other miscellaneous items etc. 3ncome-e+penditure statement and annual gross surplus. 6ash flow analysis. !epayment schedule ,i.e. repayment of principal loan amount and interest..

<ther documents such as loan application forms security aspects margin money re$uirements etc. are also e+amined. A field visit to the scheme area is undertaken for conducting a techno-economic feasibility study for appraisal of the scheme. 7odel economics for a two animal unit and mini dairy unit with ten buffaloes are given in Anne+ure A and A3. .. Sanction of an! /oan and its Disb%rsement.

After ensuring technical feasibility and economic viability the scheme is sanctioned by the bank. The loan is disbursed in kind in " to & stages against creation of specific assets such as construction of sheds purchase of e$uipments and machinery purchase of animals and recurring cost on purchase of feeds/fodders for the initial period of one/two months. The end use of the fund is verified and constant follow-up is done by the bank. 0. /ending terms * 1eneral 0.2 3nit 4ost

'ach !egional <ffice ,!<. of :A0A!D has constituted a State =evel @nit 6ost 6ommittee under the 6hairmanship of !<-in-charges and with the members from developmental agencies commercial banks and cooperative banks to review the unit cost of various investments once in si+ months. The same is circulated among the banks for their guidance. These costs are only indicative in nature and banks are free to finance any amount depending upon the availability of assets.

Pandey milk Plant





/elling ,rice PROJECT CO!T;CAP"TAL "N:E!T#ENT

!'No Description


"onth ,er 32 ltr

A%oun t Rs'

2 3

7i&ed 2apital 8orking 2apital for Tota< Pro2ect Cost 2 "onth

126$$ $$ 63*$$ $ /=++4 44

F"NANC"AL A!PECT! A. FIXED CAPITAL i' Land and Bui<din)s ii' #achinery and E>uip%ent
!'N o Description ?ty' Rate A%ount Rs'


4$$$$ per month

1 2

9uffello s /hed


3$ 1

2$$$$ 2$$$$$

6$$$$$ 2$$$$$


"sslenious e&p.; ire ,other<



-$$$$ ,-----

-$$$$ ,44444

Four !heeler

Electric !iring #otal


/4444 /.@444 4

B. WORKING CAPITAL i' !a<aries 8 6a)es *per %onth1

!'N o Description Nos' !a<;%on ' A%ount Rs'

1 2 3

/upervisor%=ntrepreneur Driver 5a!our Tota<

1 2



.--- 1$$$$ *---6$$$$ =4444


ii' Ra3 #ateria< *per %onth1

!'N o Description nit ?ty' Rate A%ount Rs'

7eed Tota<


2$kg?3 $?#6s?


126$$$ /.@444 Rs'

!'N o

ti<ities *per %onth1

Description nit A%ount Rs'

1 2

,o er 8ater

3-$$$ 2-$$



i(' Other EBpenses *per %onth1

!'No Description A%ount Rs'

1 2

Driver e&pense Transportation =&penses



1ther e pense 2moter reparing etc3


Tota< 6orCin) Capita< *per %onth1

!'No Description A%ount Rs'

6ent 2 3 4 /alaries and 8ages 6a "aterial

4$$$$ )$$$$ 126$$$ 3#-$$ 36$$$

@tilities .ther =&penses



,6.7IT 3:D 5.// 322.@:T =&pense 6s. Income 6s.

6ent 6a material

4$$$$ )$$$$ 126$$$ 313-$$ 3)34$$$;for1y r<

/elling cost


@tilities .ther e&pense Total profit

#-6$$$ 3#26$$$



Farm production economics is concerned !ith the choice of production pattern and resource uses in order to ma imi4e the o"jective function of the farm operator5 their families5 the society or the nation5 !ithin a frame !ork of limited resources. #he la!s of production economics e plain the conditions under !hich the quantities can "e ma imi4ed 2profit5 output5 national income3 or minimi4ed 2cost5 use of physical input3. #he main o"jectives of production economics are.
*. ,.

#o determine and define the conditions5 !hich provide for optimum use of resources.

#o determine the e tent to !hich the e isting use of resources deviates from the optimum use. #o analy4e the factors or forces !hich are responsi"le for the e isting production patterns and resources use.

#o delineate means and methods for changing the e isting use of resources to the optimum level.

In India the dairy farming is still e isting as a su"sidiary to the agriculture5 !hich gives additional income to agricultural la"ours5 small and middle farmers. In India gro!ing atleast one or t!o dairy animals "y farmers have many advantages of economic importanc

6airy animals fits !ell in any diversified farming programmes i.e. it can "e clu""ed

!ith agriculture5 fisheries5 horticulture5 etc.5 !hich helps to give additional source of income.

In agriculture different types of roughages as paddy stra!5 7a!ar stra!5 8heat stra! etc.5 are "ulky fetching less amount and also not possi"le convertors of roughage to produce milk.

#he prices of most of the agricultural produce sho! great fluctuation

!here as milk !ill not have such fluctuations in price. #he income from agriculture is seasonal and the farmer receives income on harvesting crop only3 !here as dairy anirrials gives money daily and it is distri"uted throughout the year. #he economics can "e calculated daily also.

9ormally farmers !ill not take milk "y spending money. (ut the family mem"ers !ill consume certain amount of milk invaria"ly5 !hich improves the family diet in terms of nutrition.

:egumes and grasses are gro!n on farm providing fodder to the animals. #hese crops are soil conserving and soil "uilding crops. #he manure produced !ill "e utili4ed as natural fertili4ers for gro!ing5agricultural crops economically.

DAIRY ECONOMICS, EXTENSION AND ENTREPRENEURSHIP #he male animals are utili4ed for draft purpose< In India still most . of the agricultural operations are carried "y use of "ullocks po!er< In India the si4e of the land holdings are small and it is "ecoming still smaller portions "y divisions and they cannot afford for mechanical farm operations.

Even after death5 the carcasses are utili4ed for meat meal production5 "one meal production5 "lood meal production etc.5 skin is used as hides.

In dairy farming the cost feed accounts for roughly /-)/.> of the cost and so the economic milk production mainly depends upon the economic feed formulations. #here are other factors also !hich contri"ute to the economics of dairy farming. #he economic factors in a successful dairying one.

*. #he effective "reeding policy< &election of high yielding animals for dairy farming. For "reeding high record site or good sites semen for. All should "eutili4ed. ?nless the animal have high productive nature5 even heavy feeding of "alanced nutrition cannot improve the milk production much.

,. Economic feeding practices are important !hich can alone decrease the c production milk apprecia"ly. Feeding of adli"itum of green forages !ill decrease th cost and ultimate less cost of milk production. Feeding of certain amount of legum fodders still improve the milk production.

Feeding of certain @amount of dry roughages !ill improve the "utter fat content5 !h again adds to the high payment for the milk.

Among the concentrate feed ingredients5 most of the traditional ingredients are com "y human "eings5 so the cost is increasing resulting high feed cost making dairy fa uneconomical. ?se.of unconventional feeds !hich are availa"le at thro! a!ay price price !ill decrease the feed cost resulting lo! cost of milk production.

#he managemental conditions are cardinal in maintaining the optimum le

production and also to keep up the animal health. III health reduces the milk prod drastically and5 it take more time to reach original production.

#he optimum use of land5 manure resources to produce fodder !ith less inves

!hich ultimately affects the economic milk production.


#he a"ility to direct and make use of la"our efficiently after the economics o production.

Efficient disposal of milk plays half of the economic role in dairying. Even a price increase in the sale price of milk5 !ill have much impact on the economics of farmings.

&ound "usiness practices appropriate to dairy farming is important at

all levels. :e. purchases of inputs5 and also disposal of products and "y products. #he main theme of dairy economics rests on ma imum reduction in feed cost producing high level of milk production economically and proper disposa"le of milk.

+)Postproduction of milk5 milk processing and preparation of milk products also comes under dairying. A medium or "ig si4e dairy farm simultaneously they can have either processing of milk * production of many dairy production. &ome times more profit can "e o"tained in the sale of processed milk A dairy products. &imultaneous esta"lishment of processing plant !ill increase the income of dairying 0-)+-> and esta"lishment of products factory !ill increase the profit "y +-).- > over dairy farming. If these processing or products factories are esta"lished !ithin farm premises it reduces the cost of ra! material i.e. milk collection and transportation costs. Further the quality of milk produced in o!n dairy farm !ill "e superior as it is processed immediately !ithout lapse of time5 limiting less processing pro"lems5 uniform quality of milk is. o"tained !hich trou"les less in products preparations compared to !ide variation is collected milk from various sources. ECONOMIC VIABILITY FOR DIFFERENT SIZE OF DAIRY AND ENTERPRISE.

*. Economic planning < #he. follo!ing factors requires considera"le attention !hen one decides to go for milk production on a farm.
) ) ) ) ) ) )

&uita"ility of the farm &uita"ility of farm5 "uildings and other fi ed equipments. &upply of right type of la"our. Availa"ility of capital Capa"ility of the farmer. Physical condition of the soil. Climate 8ater supply

#he "asis of economic planning of dairy farm depends upon the follo!ing factors.
a3 "3

&i4e of the herd :evel of milk yield


Feeding policy and stock density

Farm area devoted to dairy farm and stocking density

f3 g3 h3 i3


&easonal production policy Raising replacement stock. 8atching milk yield Check on food quantity and quality :a"our utili4ation.

a) Siz !" #$ $ %& ' #he result of 9ational investigation of milk i sho!s that upto the a certain point5 herd si4e has an important infiu on the profita"ility of milk production. 9o apprecia"le improveme profita"ility !as noted !ith a level of co!s a"ove +-. Infact a distinc in profits seemed to result a"ove that level. #he greater part of variati profits !as found to "e due to reduction in costs of la"our percent increase in herd si4e. #he si4e of herd depends upon the folic factors.
) ) ) ) ) )

%ethod of milking %ilking of shed facility %ilk yield Co! shed layout :a"our efficiency Area under forage

%ost of the farmers appear to find that herds of 0- co!s !ith a co!shed layout and +- !ith parlour system can "e handled conveniently and efficient ly. It is assumed that a producer in his interest maintain normally a herd of *0- animals consisting of +- milking animals5 +- dry animals and , "ulls and rest comprising follo!ers. #he num"er of co!s to "e handled efficiently and conveniently is dictated "y the acreage of farm and co! shed accommodation. Every farmer should ascertain periodically !hether his herd si4e could "e increased5 at the same time5 carry out culling process !ith discretion.

() L ) * !" +i*, -i *& ' &tatistical evidence appear to favours high yielding herd. #he up!ard tendency in profit !ith the increasing in milk yield is !hat one should e pect "ut upto certain limit only5 "ecause the food cost per co!) also increases due to e tra concentrate !ith the increase in milk yield c3 F &i./ 0!*i1- a.& 2#!1, & .2i#- ' It is o"served that feed accounts for /*> in cost structure of milk production in "uffaloes5 therefore attempts to lo!er the feed cost !ill reduce the cost of milk production5 !hich can "e achieved "y use of less of concentrates and use of more green fodder. D .2i#- !" 2#!1,i./ a.& "a%+ a% a & )!# & #! &ai%- "a%+ ' 6airy unit of 0 co!s and follo!ers can "e maintained on one acre fertile and fully irrigated land.
d3 e3

H!32i./ "a1i*i#i 2 ' #he yard and parlour system requires less capital

investment per co! and less la"our Aco! compared to conventional co! shed.

S a2!.a*i#- i. +i*, 0%!&31#i!. ' %ilk plants offer incentive in the

form of or "y !ay of higher price for milk during lean period of summer months so that the farmer may o"tain more milk in those months of higher prices. Rai2i./ % 0*a1 + .# 2#!1, ' %ost dairy farmers prefer rearing most of their heifers on their farm to maintain required num"er "ecause to avoid risk of "uying poor quality stock and also it is proved that use of "y products and unconventional feed stuff heifer can "e raised cheaply.

4a#1$i./ +i*, -i *& ' #he dairy milk yield record of an individual co! can "e used as a guide for rationing5 an indication of status of health on faulty feeding and as a "asis culling.

C$ 1, !. F & 53a.#i#- 6 53a*i#- ' 6epending upon the milk yield and requirements of an animals5 farmers must !ork out the ration for each co! and !rite it on the chart against the animal. It helps to ensure the supply of right quantities of concentrates5 from time to time depending upon the quality and quantity of roughage.

La(!3% U#i*iza#i!. ' Cost of la"our is second to cost of feed in the annual cost of keeping of a co!. :oose housing system saves la"our "ecause co!s come to milking parlour instead of man going to co!. %anure loader can "e used in the loafing area. It is also suggested that la"our requirement "y follo!ing yard and parlour system is less comrC) )ed to co! shed systemVia(i*i#- "!% 2+a** 2iz "a%+2 ' For a family2,3 mem"ers having ,). acres of land for crop production the economically si4e of dairy farm is ,). animals5 depending upon their interest5 capa"ility5 availa"ility of fodder and marketing facilities. #hese t!o family mem"ers can !ork for ,). animals !ithout engaging any e tra la"our and also !ithout affecting the routine farm operations. #he dairy farming !ill act as side employment to the main agriculture !ork. #hese small farms !ill "e more economical than larger farms due to <
a3 "3

9o dependence on e ternal la"our to !ork.

Agricultural "y products I !astes can "e utili4ed to produce more profita"le milk item.

It helps to increase the fertility of agricultural lands in the !ay of

manure. It gives more income !hich is daily cash crop to the farmer !ithout !aiting for a season to get money.
d3 e3

%ore supervision on the individual animals as animals are less and

also the o!ner !ill have more enthusiasm and love !ith animals.

9o pro"lem !ith marketing of milk5 as the not "ulk.

Via(i*i#- "!% *a%/ "a%+2 ' #he farms having more than ,. animals comes under largeAcommercial farms and .),. animals !ill come under medium farms. #he economic via"ility of large farms depends on .
a3 "3 c3 d3

Effective %anagementA supervision on materials and animals. Individual animal feed requirements calculation and feeding. Effective la"our use and management. Production of green fodder required.


Preparation of nutritive concentrate mi ture.

f3 g3 h3

Effective "reeding management. Effective health control measures. Effective marketing of milk and milk products. Culling and replacement of animals in the farm.


8hen comparative to small farms5 surviva"ility of large farms !ill "e difficult as over head charges !ill "e more in all aspects5 in addition to lack of individual responsi"ility and care on the animals. ECONOMIC PRINCIPLES BENEFITS IN DAIRYING'




#he various factors that can influence the dairy farms profita"ility can "e enlisted and linked as given "elo!. Dross profita"ility A acre. Dross profita"ility A co! %ilk produced A Replacement cost Earia"le co! %ilk price cost :actation yield Fuantity of )Replace co! cast:a"our "reed milk 1ther ) cost cos )Fuantity of cost t Feeding 1f produce ne! co! Feed cost Advertiseme Fodder %anagement nt )cost of concentrate Dovt. Calving inde policies Calves 6ecrease Gouse incidence Purchases (y detailed study of the a"ove factors that influence profita"ility of a dai farm5 the follo!ing principles can "e dra!n to ma imi4e profits.

S * 1#i!. !" /!!& a.i+a*2 ' A good lactating "reed

and also good animal is that "reed !ill yield more milk production.

Ba*a.1 & " &i./ ' Feeding of animals !ith standard 6CP al #69

content of required quantity !ill increase A maintain the m production.

G% . "!&& % " &i./ ' Feeding of adli"itum green fodder v decrease the use of concentrates !hich ultimately decrease the cost production of milk.

C!.2 %)a#i!. !" /% .2 ' #he green fodder !ill "e e cess duriv flush season. It should "e converted into silage A hay !hich preserve tl nutritive value of green fodder and it can "e used during summer in plai of green fodder !hich !ill reduce the cost of milk production.

F!%+3*a#i!. !" 1!.1 .#%a# 2 7i#$ 3.1!.) .#i!.a* i.8% &i .#2' Certain unconventional feed ingredients are not used for any purpose !hich can "e conveniently used in concentrates formulation to decrea the cost of concentrate5 as the cost of concentrates place an import, role in the cost of milk production.

U2 2 !" a/%i13*#3%a* (- 0%!&31#2 ' #he use of agricultural t products like stra!s etc !ill decrease the cost of milk production.
/. ;.

E"" 1#i) 3#i*iza#i!. !" *a(!3% ' #he cost of la"our ranks second

after feed cost in dairy farming. #he effective use of la"our depends on
) ) )

Proper planning of cattle housing unit :oose housing system saves la"our and energy Proper grouping of "uildings. in layout for saving time of &ystem of tieing is conventional housing system


#ail to tail tieing !ill decrease the la"our requirement as @it is man time is spend in "ack of the animal for cleaning5 !hich space in tail to tailHsystem. R 0*a1 + .# !" #$ $ %& ' After fe! lactationHs5 the animals are culled to remove uneconomical animals5 !hich should "e replaced "y gro!ing o!n calves or "y purchase. It is scientifically proved that replacement of dairy stock "y gro!ing their o!n calves is more economical and also have the information a"out the animal.

Mi*, 0%i1 ' #he profita"ility of dairy farming mainly depends upon the sale price of milk. Even a marginal e tra price per litre of milk !ill have higher profita"ility per year. A&) %#i2 + .# ' Advertisement a"out the quality and "enefits of the milk !ill give more demand and price ever5 after deducting the advertisement costs.

C!.2 %)a#i!. i. #! +i*, 0%!&31#2 ' 6uring flush season more milk !ill "e produced and also the factories !ill pay less price. #o get ma imum profits some milk can "e converted into products like cream5 ghee5 "utter5 paneer etc.5 !hich !ill also solve the pro"lems of marketing of milk and also gives 0-).-> e tra profits over the cost of milk.

1 G!!& -+a.a/ + .# ' Clean environment !ill 9 0%a1#i1 2 produce more milk5 !hen compared to uncleanliness in theI sheds. Proper protection of animals against environmental conditions like heat and cold !ill helps to maintain the production5 other !ise drastic fall in production is not protected. %aintenance of proper timings of feeding and milking !ill help in maintaining the optimum production. %aintenance of cattle health "y proper vaccination and treatment !ill definitely helps in production of more milk. 1 ECONOMIC INSTITUTIONS SUPPORTING .: DAIRY DEVELOPMENT PROGRAMMES. PROGRAMMES. For starting any "usiness5 the foremost important resource one should give prime importance is finance. 1ne cannot start any "usiness A industry on their o!n money. #he rural people are poor or middle income people and so they cannot afford to invest large amounts for esta"lishment of any si4e of dairy farms. &everal institutions are concerned either directly or indirectly in the activities or providing finance to esta"lish dairy farm5 milk collection centres5 dairy plants etc. #hey are

*. I.&ia. Dai%- C!%0!%a#i!. ' Earlier it is the financing agency for all the

dairy developmental activities i.e. esta"lishing dairy plants5 chilling centre5 progeny testing farms5 formation of dairy cooperatives under Anand pattern. 9o! there is no) Indian dairy corporation and it is merged !ith 966(.

Na#i!.a* Dai%- D ) *!0+ .# (!a%& ' Earlier it is only implerfientation agency implementing all the dairy developmental programmes throughout the country. After merging of Indian dairy corporation5Hno!it is acting as financial as !ell as implementation of dairy developmental activities in the country. It provides finance to all the state o!ned milk cooperative federations5 for the esta"lishing and or increasing the capacity of milk processing f dairy products factoriesJ chilling centers5 feed factories5 esta"lishing progeny testing farms5 improving Artificial insemination centers. #he 966( also acts as agent for international "usiness A loan for the development of dairy industry. 966( !ill provide finance to the state federations 1r cooperative society "y taking guarantees from the respective state government. #he finance !ill "e different types i.e. !ith nominal interest5 no interest and repayment of one scheme to investment for other scheme. 966( also involved in the research activities of dairyKng. Eg < Em"ryo transfer #echnology5 cross "reeding programme5 indigenous dairy processing equipment development.
0. Na#i!.a* (a., "!% a/%i13*#3% a.& R3%a* & ) *!0+ .# ;NABARD).

#his is the ape "ank for refinancing for all types agricultural operations for the commercial "anks. at less interest. Earlier this is a !ing in reverse "ank as agricultural refinance !ing of reserve "ank. 9A(AR6 !ill not directly finance to the dairy farms5 )dairy factori+s or allied "usiness5 "ut only through commercial "anks. For community A social schemes like !ater shed5 small irrigation schemes5 tanks rural roads etc.5 it !ill finance directly to the state government to provide "asic amenities to agriculture and related fields. For community !ork the interest rate is very lo!. C!++ %1ia* Ba., ' In)our country there are ,= nationali4ed "anks and many private "anks !ho are financing for dairying. #hese "anks !ill finance for small to large dairy farms5 dairy factories5 feed mi ing plants other dairy "ased "usiness. #he amount of finance !ill vary from ;.)=.> of the cost of project depending upon scheme or non scheme projects. For dairy farms one should have their o!n land and no loan !ill "e given for land. #he interest rates charged !ill "e *,)*...> P.A. depending upon the amount of loan.
+. .. C!!0 %a#i) (a., ' In each state ape cooperative "ank !ill "e there5

in each district cooperative "ank !hich !ill have "ranches throughout the

district in rural areas. 7ust like commercial "anks5 cooperative "anks !ill give for all dairying projects for "oth short term and long term loans5the rules and regulations are almost commercial "anks !ith little less interest rates.

Vi**a/ 1!!0 %a#i) 2!1i #i 2-For a cluster of villages cooperative societies !ill "e there5 !hich !ill give loans for small scale animal hus"andry activities. #he finance for these societies !ill "e "y cooperative "anks. #he interest rates !ill "e less compared to commercial "anks. <. S#a# Fi.a.1ia* C!%0!%a#i!. ' Each state !ill have state financial corporation 2&FC3 !hich !ill also finance for dairy projects. #he interest rates are almost equal to commercial "ank< In our state Andhra h state financial corporation is located at Gydera"ad and it is "ranches in all district head quarters. =. Dai%- D ) *!0+ .# C!!0 %a#i) " & %a#i!. a.& &i2#%i1# +i*, 0%!&31 %2 1!!0 %a#i) 2!1i #i 2' #he state dairy development cooperative federation !ill get some loans from 966( and other agencies for development of dairying5 !hich !ill "e provided to district unions5 !ho !ill inform !ill give loans to milk producers. ;h ey !ill not give loans directly to the "eneficiaries5 "ut they !ill procure good genetic high milk producing animals and distri"uted to the "eneficiaries. Part of the amount !ill "e su"sidy and the rema.ining amount !ill "e treated as loan !ith less interest rates. >. Di2#%i1# R3%a* D ) *!0+ .# a/ .1i 2 ' In each districtone6R6A !ill "e there !hich !ill operate most of the centrally and state sponsored schemes.6R6A !ill assist programmes like
a3 "3 c3 d3

6raught @prone area programmes 26PAP3 &mall farmers development agencies 2&F6A3 %arginal farmer and Agricultural la"our development agency Integrated rural development programmes.

#he 2IR6P3 6R6A !ill sponsor the a"ove schemes "y sanctioning loans "y commercial5 "anks and provide su"sides from ,.).-> depending upon the classes of people involved in the schemes. 1?. B.C a.& SC 1!%0!%a#i!. ' &C and (C corporations !ill arrange loans for dairy programmes of respective class of people through milker commercial A cooperative "anks and provide su"sidy of ,.).-> .

11. T%i(a* & ) *!0+ .#' a/ .1i 2 ' For the development of tri"al areas5 the government has esta"lished tri"al development agencies !hich !ill give su"sidies and arrange loans through financial institutions. SUMMARY Importance of economics in dairying !as e plained !ith 5 particular reference to rural areas. #he economic via"ility for large and small si4e dairying units !ere discussed. Earious important economic principles !ere given !ith a primary moto to ma imi4e profit. #he various financial institutions are listed. Project reports !ith their via"ility are given for ,5*-5.and *-- animal dairy farms and also milk processing centres handling .--litres5 .---- litres per day. #he importance and implications of dairy animal insurance !ere discussed.

9 MIL@ PROCUREMENT S3%) %-2 "!% Mi*, 0!# .#ia* a% a "!% S3%0*32 ;Mi*, 2$ & a% a) #o assess !hether any project or industry !ould "e availa"le in a certain area5 a survey of availa"le resources in that particular area is carried out. +lilk shed are generally denotes a district 2or3 from !hich area milk is procuredL and processed in the common plant located in the central part of that particular are #he villages in the milk shed area should "e prelimiary survey is conducted as different aspects of milk production as detailed given "elo!
*. ,.

#he e isting cattle and "uffalo population

#he production and utiMi4ation A disposal pattern of milk and milk product.
0. +.

%arketing channels for surplus milk. Returns from the sale of milk realised "y the farmers.


Agricultural facilities and production patterns.

/ .(asic amenities such as communications links5 educational facilities. /. 1ther sources of income.

Performance of other institutions including multipurpose cooperatives 6ifferent communities living in a village and their inter)relationship. 1ther relevant information if any.

=. N.

1nce the milk potential areas are located detailed survey is conducted i.e. door to door survey a"out the milk production5 surplus milk !ith the family5 !hether they are interested to sell the milk to the society or not5 infrastructure needed for enhancement of milk production etc. After detailed survey possi"le milk roots are identified so as to cover all the milk potential areas. In selecting the roots the prime idea should "e considered is that the vehicle from the starting point loading the milk from different collection centres5 reaches milk chilling centers .

9.9 SYSTEMS OF MIL@ PROCUREMENT ' #he success of any dairy project depends on a !ell planned ani organised system of milk procurement. In the case !here procureme system is not !ell esta"lished dairy plants remains under utili4ed on th other hand5 if systems is !ell planned the follo!ing advantages can " o"tained.
) ) ) )

An assured market round the year to the milk producers. Full capacity utili4ation of the dairy plant Increase in the milk production through inputs at reasona"le cost. Planning and scheduling of milk procurement

follo!ing t!o aspects.

) )

Policy decisions at top management level &cheduling the actions for smooth running

9.9.1 POLICY DECISIONS AT TOP MANAGEMENT LEVEL (efore starting milk procurement the follo!ing decision should "e taken. Price to "e paid for ra! milk in different seasons ,3 #he system and frequency of payment for milk ) 6aily 8eekly5 fortnight or %onthly. 03 Reserve funds required to carry milk procurement to avo hard ships +3 %aterial5 equipment5 chemicals and stationary required f collection centres. .3 #ransportation of milk ) hiring of transporting vehicles "etter rather than o!ning the vehicle. /3 #echnical inputs i.e. Eeterinary aids5 A.I5 feeds and fodder to "e

given in advance to the producers to get the advantage of favour.

%an po!er required and training enga4ed in milk porcurement. needed to people 9.9.9 S1$ &3*i./ #$ a1#i!.2 ' 1nce the a"ove policy dessions are taken5 the milk procurement activities are planned. After preliminary and detailed survey of villages5 village societyHs are started. &ociety staff is recruited and necessary training in the fields related to milk collection5 testing5 maintenance of records5 "ank transactions "ye)la!s etc is given. #ransport time ta"le for milk root is prepared and the all societyHs are informed a"out the time of loading of milk cans and 2or3 unloading of empty cans. All the mem"ers of the society !ill "e informed a"out the time of milk collection at the collection centers. 6epending upon the quantity of milk collected indent for e tra cans or information a"out the quantity of milk to "e procured in future should "e reported promptly to the concentrated authorities "y the society organisers. 9.A SYSMTES OF MIL@ PRICING ' #he pricing of any commodity is al!ays "ased on its cost price and the price paid "y the consumer. 8orking out the cost price of milk under field conditions is a comple su"ject any pricing system follo!ed should "e Remunerative to the producers ,3 Competitive to the local market prices. 03 6iscourage adulteration and promote quality consciousness< +3 (ased on milk constituents i.e. Fats $ &9F 9.A.1 METHODS OF MIL@ PRICING'

#he old systems follo!ed in India are volume "asis and !eight "asis. #he volume "asis !ill encourage the adulteration of milk !ith !ater and also quantity of milk !ill "e affected on5 !ith formation of foam. #he !eight system !ill not "e effected "y foam "ut it also encourages adulteration of milk. #he various other pricing systems are

*. Pricing on pro)rata fat "asIn this system the price of milk is fi ed proportional to the fat content of milk. #his system !ill assign practically 4ero value for &.9.F content. #he advantage of this method are easy to calculate the milk price easy to adopt as it required only fat estimation5 farmer !ill easily under stand the system and it can "e adopted to any type of milk. #he disadvantages are < It encourages adultration of milk !ith !ater5 as there is not check on &.9.F. #his system !ill encourage "uffalo milk and donot provide remunerative price for co! milk. PRICING ON T4O AXIS BASIS' #his method is used in pricing co! as !ell as "uffalo milk !here "oth fat and &9F contents are taken into accounts. As the system is "ased on "oth fat and &9F5 it is called as O#!o access pricingI. #he prices of fat and &9F are fi ed depending) upon the market price of DGEE and skim milk po!der. 9ormally the price of fat !ill "e declared "y the union for different seasons and the price of &9F !ill "e ,A0 price of the fat. #he price is calculated using the follo!ing formulae. E < Price of *-- kgs milk P 'g fat rate &9F > Fat percentage K kg &9F rate

E < If the price of kg Fat is *-- then the price of N> &9F "e *-Rs. //./#hen the cost of *-- kg of milk testing /> fat an N> &9F P 2*-2//./ N3 P/--K.NN P **NN i.e Rs. **.NN per kg.

,A0 P /3 K

#he advantages are 9o discrimination against co! or "uffalo milk as co! milk is reasona"ly priced due to consideration of &9F contents !hich is !ell compara"le to that of "uffalo milk.l PRICING ON E5UIVALENT FAT UNIT BASIS In this method the &9F unites are converted into equivalent fat units inproportion to the relative market prices of fat and &9F. #he &9F is value at ,A0 units of fat. For e ample < #he "uffalo milk testing /> fat and N > &9F #he total num"er of Fat units P / K N , A 0. P/K/P *,

If the fat price is Rs. *--A) than the cost of *-- kg of *milk P *, P *,-1r Rs. *, per kg of milk. #his method !ill leave the same advantage of t!o access pricing system. 9.: PRINCIPLES INVOLVED IN PRICING OF MIL@ PRODUCTS

8hile finali4ing the price for milk products there are si steps to "e follo!ed. &electing the pricing o"jectives < 8hether the pricing o"jectives should "e or profit oriented service oriented.

9ormally government agencies5 voluntary organi4ations or cooperative "odies o"jective !ill "e service oriented !ith minimum profit5 !here as private people !ill aim on ma imum profit. For any producer aiming at reasona"le profit !ill have many advantages to have in market for longer period !ith ma imum percentage of market share.

6etermining the demand < (y making market surveys the demand for individual product can "e assessed. #he heavy demand product should "e prepared. #he price of heavy demand product !ill "e high. 0. Estimating the cost < #he cost of the product at !hich it can "e marketted can "e calculated as follo!s Cost of ra! materials used for the preparation of the product i.e. milk5 sugar5 spicies5 salt etc.5
a3 "3 c3 d3 e3

Cost of processing the product< 9ormally in dairy industry the Processing costs !ill "e around ,-> of cost of ra! Packing cost < 6epreciation on the cost of ra! material. 6istri"ution cost 2i.e. transportation3 6istri"ution margin 2!hole salers margin3 Retailers margin.

f3 g3

#he total of the a"ove gives actual price for the product. For that add profit margin !hich may "e *-)*.> depending upon the demand. +.. Analysis of competitors price and offer < #he price of product should "e competiative and attractive compared to competitors product. &ome times e tra quantity of product is offered !ith the same prices 2Add *-- gms !ith .-- gms of product3 "y competitors. #hat shoul7 also "e taken into account. .. i.e. &electing a price method %arket K

%arket ) price methods. %arket -

&electing the final price < After deciding the a"ove factors the final price of the products may "e arrived. For any product price fi ation.other factors !ill also influence like. *3 &eason < 6uring summer5 demand for flavoured milk5 "utter milk5 Ice cream5 kulfi !ill "e enoromosly increased. &o the price of fast moving products in summer can "e increased. ,3 "e more. PLANNING FOR MIL@ COLLECTION AND TRANSPORTATION ROUTES'

Area of marketing < If the income of people is high5 their purchase !ill

For efficient collection of milk5 certain pro"lems arising at the collection centre should "e solved. #he various pro"lems faced at the collection centres are Producers having vested interest ) some persons !ill try to influence the staff and get undesira"le things done to save their personal interest. #his should not occur.

&ome persons !ill supply adulterated or su"standard milk. #his should "e discouraged.

&trict timings for milk procurement ) &ome producers !ill supply the milk very late5 the society !ill not receive it resulting a direct conflict "et!een the producers and staff. #his can "e sorted "y e plaining the farmers a"out the difficulties.
0. +.

&ome producers !ill think that sample of milk dra!n is an e tra

quantity of milk !hich is not paid for. #his can "e e plained to the farmer that all the samples are polled and sold !hich is distri"uted to all mem"ers as "onus. &ome farmers due to many reasons !ill supply evening milk in the ne t morning and morning milk in the evening !hich causes curdling of milk

and loss to the society. &uch producers should "e carefully checked and e plain a"out the quality of milk causing pro"lems in processing of milk.

&ome staff mem"ers !ill not follo!ing the timings for milk collection5 so that the procedures !ill have to !ait for hours together and loose their interest on society. %aintenance of the time "y the staff is essential for improving the milk procurement. #ransportation of milk to the processing centre or chilling centre !ill "e undertaken "y the union. &ome societies !ill not have proper roots5 itHs the responsi"le of the society to transport the milk from the collection centre to the near "y truck pick)up point. In some societies there !ill "e transportation root through that village5 "ut the collection centre !ill "e interior5 in such case also it is the responsi"ility of the society. At union level different roots are planned to get the milk from different places to the processing plant. Each root !ill "e planned in such a manner that it !ill go through all the society villages or atleast nearer to the societies. #he roots are so planned that if any damage to the road or traffic an alternative road is availa"le to the processing centre.2#heH5 root map should "e supplied in advance to all the societies so that they can plan for amnica"le pick)up points. #he length of the road should "e such that from the Lstarting point of the milk collection5 it reaches the processing or chilling centre !ithin reasona"le time so that the milk may not get spoiled and fit for processing3 #he transport vehicles !ill deliver the empty cans for ne t collection and lift the can !ith milk. In case of any "reak to the transporting vehicles an alternative vehicle or atleast the other route vehicle may "e diverted. MEASURES TO ENHANCE MIL@ COLLECTION DURING LEAN SEASON.

6uring rainy and !inter season5 there !ill "e5 lot of green5 roughages !hich !ill help in enormous milk production5 !here 50s in summer theH most of the5 fieldsHincluding gra4ing lands "ecome drylnagreen fodder !ill "e availa"le adversely affecting the milk production. %oreover no farmer !ill plan to calve the animals just "efore or during5 summer5 !hich !ill adversely affect the lactation yield. %ost of the co!s !ill "e in dry or late Qlactation or late lactation !ith pregnancy. Recent studies indioate that the milk production during summer season !ill "e decreased5 "+A> of the milk production during rainy and !inter seasons. #he summer season in

in !hich lo! production of milk is called lean season and flush season !hen high milk production e ists. As the output of milk production is decreased5 the demand !ill "e as such for the milk5 there !ill "e lot of competion for the collection of milk. #he competitors of milk processors !ill start their o!n strategies to get ma imum share of milk collection "y any dairy in lean season. #he follo!ing are the some of such steps. #he milk production during flush season !ill "e surplus5 the collection centres are una"le to collect full quantity due to varied reason. #he procesers should regularly collect full quantities of milk from those producers !ho !ill "e faithful and supply full. quantity of milk to him during lean season. #he producers are also remem"er the collection centers5 !ho has helped them during flush season. &ome processors even declare milk holidays once in a !eek5 or so during flush season5 !hich !ill cause economical loss to the producers. If farmers are tackled !ell during flush season5 they !ill inturn help "y giving !hole quantity of milk during lean season.

Fi ing of high price or giving "onus or e tra payments for the milk supplied during lean season !ill also improve the milk collection. As the level of production drops during summer and also most of the dairy animals in dry A pregnant conditions5 the cost of the milk production !ill generally high during summer season. #o compensate this high cost of milk production5 the processers should enhance the purchase price of milk.
,. 0.

Advance payment A prompt and regular payments for the purchased

milk "y the collection centers !ill definitely improve the milk collection during summer. &upply of inputs like concentrate feeds5 fodder seeds5 fertili4ers A.I facilities to the producers in advance and adjusting the cost for the price of milk collected.

&atisfying the producers "y e plaining a"out the cunning nature of competitors !ho !ill give high price of milk during lean season. #he collection center people should e plain to the producers5 that the competitors !ould not collect the milk during flush season.

Especially during festival occasion5 children school reopening5 marriages time farmer need of money and they may come for center people5 "y supplying milk)during lean season5 if they give any finance to them. Any processors should make advance payments during the a"ove occasions to attract the producers. #raining programmes should "e conducted on management of animals during summer season !ithout affecting the milk production.

#he collection centre persons should respect customs5 of the local people and they should participate in a various social and cultural activities of the village so that the farmers think that these are one among them and definitely they sell milk to them only.

1ut of their profits5 the processors A milk collection centre persons should spent certain portion for social activities in the village5 i.e. laying or repairing of roads5 construction of school "uildings. %aintenance of parks5 donations to temples5 or donation to any religious A other functions !ill have effect on milk collection.
N. *-.

%ilk competitions5 "ull competitions5 calves and other groups of

animal competition regularly is the village !ill also increase the faith in the villagers. In addition to the a"ove encouragement points5 the processors A collection centre people should not do the follo!ing things. cheating the producers "y taking e tra quantity "y manipulating the !eights and measures.

&ho!ing less readings of fat and &9F levels in the milk. 8rong calculation in the price fi ation of milk. ?tili4ation of money for personal use and delaying the payments to the producers. e3 9ot paying the "onus after the year. f3 9ot "othering a"out the collection of milk during flush season.
"3 c3 d3

9ot attending to the pro"lems of animals. SUMMARY &urveys for milk production potential areas for surplus milk in a particular milk shed area !as discussed in detail to enhance milk collection. 6ifferent milk procurement systems !ith advantages and disadvantages !ere covered. Pricing policy for milk and milk products !ere e plained so that it is useful to select effective pricing policy under different conditions. Planning for milk. collection and transportation routes !as covered e tensively. Collection of milk during lean season is very difficult5 so planning for milk collection during lean season !as highly projected. DAIRY ECONOMICS, EXTENSION AND ENTREPRENEURSHIP A DAIRY DEVELOPMENT PROGRAMMES VARIOIUS DAIRY DEVELOPMENT PROGRAMMES AVAILABLE

%ilk has emerged as the second largest agricultural commodity ne t to rice production 2*N==)=N3. India ranks !orld first in milk production in *NN/. IndiaHs milk production is ;- million tones. Cross "reeding of indigenous co!s !ith e otic "ullsAsemen has encouraged for augmenting milk production. G!) %.+ .# P%!B 1#C0%!/%a++ .
*. ,. 0. +. .. /. ;.

All India key Eillage &cheme ) *N.* I ntensive Cattle 6evelopment Projects 2IC6Ps3 ) *N/+ ) /.. 1peration Flood phase I ) *N;-. I6A Assisted 6airy projects. 1peration Flood Phase II ) *N;N 1peration Flood Phase III ) *N=.. 6airy #echnology %ission ) *N=;.

1. -@ - Vi**a/ S1$ + ;@VS)

It !as taken up in August5 *N.,. ?nder the scheme a Okey village "lockI consists of one AI centre along !ith four key village units attached to it.Each key village unit is a compact areaR of contiguous village having a population of a"out .-- co!s and A or she "uffaloes fit for "reeding and milk supply. &election of pedigree "ulls5 proper administration and technical organisation consisting of one EA&5 one milk recorder and three stockmen had "een provided for every centre.3 6uring the third five year plan the 'E& !as considered to "e the main programme for I6CP. #he main activities are <


#o intensify the construction programme in the key village area E tending the P#& to the 1ngole "reed in Pradesh ,. Andhra and 'ankrej "reed in Dujarath. 2P#& ) Primary #esting &cheme3
0. +.

Esta"lishing "ull)rearing farms

6evelopment of gra4ing areas "y setting up t!o fodder "anks and also a grass land and Research Institute. I.# .2i) Ca##* D ) *!0+ .# P%!B 1#2 ;ICDPD2) 6uring the third and fourth five year plan it gained its significance "y its activities such as Formation of 966( 2ii3 Esta"lishing progeny testing farms )IE plan 2iii3 Esta"lishing fro4en semen stations ) EI plan 2iv3 Institute for (uffalo Research ) EI plan 2v3 Em"ryo transfer technology). EII plan.

P%!/% 22 R )i 7 (y the end of *N/.5 there !as an a!areness a"out the success and failures of the DovernmentHs o!n programme. #he revie! of a"ove revealed the follo!ing. P%!/% 22 Ma& U.& % E - Y a% 0*a.2.
) ) )

6airying acquired national)level recognition. Concept of planned approach !as introduced at all the levels. 1rgani4ed marketing !as adopted "y private5 pu"lic and cooperative

sectors. #he multi)national introduced ne! milk products. ) #o overcome the economic "arriers5 toned milk5 !ith less fat and at comparatively cheaper price5 !as formulated. ) India started developing its o!n cadre of trained technical personnel<

#he concept of intensive cattle development !as introduced. U."!%#3.a# T% .&2 (esides a"ove contri"utions5 some negative effects !ere also o"served as listed "elo!.
) )

moderni4ation and planning of dairy industry !as consumer oriented.

the package of inputs required for enhancing milk production !as 5 left in the hands of &tate Animal Gus"andry 6epartment !ithout :illy correlation !ith milk industry. #hose inputs hardly reached the producer. #his made dairy fanning an unattractive preposition for rural milk J producers as they !ere to "ear entire "urden of maintaining the milch animal. the private city d!ellersAduhias e ploited the consumer due to increased demand as a result of industrial development.

Cattle colonies5 housing large num"er of good cattle and "uffaloes @ "rought from the home tracts got esta"lished to meet cities demands. @ %aintenance of these animals in "ig cities !as a pro"lem5 especially in dry periods. #he "est animals thus started finding !ay to slaughter @ houses5 once these !ere found uneconomical. 1ld stocks !ere replaced < "y the ne! ones from villages. #his anti)dairy cycle perpetuated.

A. O0 %a#i!. F*!!& 1peration flood ) the Indian !hite revolution !as launched to over come M the a"ove mentioned unhealthy trends. It is designed to raise milk L producerHs income "y organi4ing them into cooperatives and eliminating f middlemenJ to increase milk production in rural areas creating a flood of milk to meet demand on a regular year)round "asisJ and to create a. self)sufficient dairy industry in India. 1peration Flood I !as launched in *N;-5 follo!ing an agreement !ith the ?nited 9ations 8orld Food programme. #he European Economic L Community !as also closely associated !ith 1peration Flood I provided much of the food aid to the 8orld Food Programme.

#o launch 1peration Flood I and finance projects undertaken !ithin its frarne!ork5 the 6elhi Dovernment set up the Indian 6airy Corporation M 2I6C3 in *N;-. #he actual implementation of the various projects is left to . the village cooperative societies and milk unions !hich o!n dairies at 5 district level. O(B 1#i) 2 !" O0 %a#i!. F*!!& I
a. ".

#o increase the capacity of milk processing facilities.

#o change ur"an markets from traditional milk supplies to modern dairy milk supplies.

#o make provision for the resettlement of city "ased cattle in rural areas. #o develop long distance milk transport and storage facilities. #o develop Anand pattern of milk procurement system. #o improve dairy farming standards.

d. e.

O0 %a#i!. F*!!& II 1peration flood II !as started in April *N=* and ended in %arch *N=. !ith the e pressed intention of creating a via"le dairy industry to meet IndiaHs needs in milk and milk products. IndiaHs 8hite Revolution has not only received support from the European Community and the 8orld "ank5 "ut also from a num"er of 8estern Dovernments5 the ?nited 9ations food and Agriculture 1rganisation 2F.A.135 the ?nited 9ations ChildrenHs Fund 2?9ICEF3 and European 9D1s such as the (ritish Relief Agency 1SFA%. It has also "een regularly evaluated over the years. :. IDA A22i2# & Dai%- P%!B 1#2 #he !orld "ankHs assistance to dairy development started !ith the coverage of 'arnataka5 %adhya pradesh and Rajasthan. #he project comprises of<


esta"lishment of a"out ;,-- 6C& and *, milk producerHs unions.

Important and multiplication of pure "red e otic "reeding stock and an associated A.I. programme of cross"reeding native cattle !ith high producing e otic "reeds. Provisions of e tension programme to encourage production of fodder5 mi ed farming and improved animal hus"andry practice.
iii. iv.

Construction of *, dairy plants and cattle feed mills.

Esta"lishment of one regional diagnostic la"oratory and a plant for production of "iological veterinary vaccines.

Provisions of a training centre for each union.

O(B 1#i) 2 !" O0 %a#i!. F*!!& II #o cover *- million milk producer families in rural areas. "3 #o create 9ational %ilk Gerd of *+ million cross)"red graded "uffaloesR
a3 c3

#o strengthen national %ilk and "y linking milk supply and demand

centres. co!s and d3 #o construct a "ase structure for 9ational 6airy Industry. e3 #o increase percapita consumption of milk products at *++ gms A day O0 %a#i!. F*!!& III 1peration Flood III !as launched in April *N=. to run until %arch *NN-. #he results achieved in 1peration Flood ** justified the confidence faced "y the Dovernment in farmerHs o!n organisations as instruments of dairy development and led to the initiation of 1peration Flood III !hich !as implemented5 covering most of the Anand pattern milk sheds of the country. O(B 1#i) 2 !" O0 %a#i!. F*!!& III

#o increase the coverage of milk producers.

#o esta"lish an additional *.5.-- village %ilk co)operative societies in *;0 Anand pattern milk sheds as constituents of the
c3 d3 e3

#o increase milch animals in co)operative am"it. #o strengthen 9ational milk Drid.

#o "etter utili4ation of technical inputs in co) operation !ith state governments. #o develop dairy co)operatives o!n system of improving health5 environmental sanitation5 nutrition etc.5

Na#i!.a* Dai%- D ) *!0+ .# B!a%& ;NDDB) #o replicate the Anand pattern throughout the country 9ational 6airy 6evelopment (oard 2966(3 !as esta"lished in *N/.. #he dairy development programmes are "eing implemented through a net!ork of milk co)operatives organised on the model e isting in Dujrat state namely A9A96 pattern dairy cooperatives. #he three tier structure of the dairy development programme are< Eillage level primary milk co)operative producers societies.
*. ,. 0.

6istrict level milk producers co)operative society unions.

rtate level federation of district co)operative milk producers unions.H O(B 1#i) 2 #he main o"jectives are to assure remunerative price for the milk produced "y the milk producers through a sta"le5 steady and !ell organised market support5 and distri"ution of milk and milk products at reasona"le prices to consumers. F. Mi*, a.& Mi*, P%!&31#2 O%& % ;MMPO)

#his programme has "een issued. "y the Dovernment of India during *NN, under the li"erali4ation policLi/s. It empo!ers that those dairy plan e ceeding its utili4ation of *-5--- liters per day must register !ith Dovernment for its moderni4ation5 product manufacturing and to collect milk in specified area. 4HITE REVOLUTION - AIMS - IMPACT ON ECONOMY OF RURAL PEOPLE

7ust like @green revolutionH !hich is intended over all increase in agricultural produce.5 !hite revolution in the increase of milk production tremendously so that sufficient quantity of milk is availa"le for all a* afforda"le price. #o tune up the milk production the infra structure required are *. Gigh yielding genetic potential dairy animalse in India most of the dairy cattle are native "reeds5 in !hich majority are poor yielders of milk. It is not economical to raise the animals !ith *), litres of milk production #he milk potential of animals can "e improved "y Introduction of E otic cattle < E otic "reeds like 7ersey5 GolsteinFriesian5 (ro!ps!iss etc.5 are e cellent milk producers. #hese "reeds can "e introduced to some e tent through out the country to increase the milk production.

Cross "reeding programme < Purchase of e otic "reeds are costly and mass introduction is not possi"le. #he semen of e otic "reeds can "e utili4ed on native "reeds to produce superior "reeds !hich can "e utili4ed on native "reeds to produce superior offsprings. 8ith little investment the future herd !ill "e cross "reds having good m ilk production capactiy. %assive cross "reeding programme should "e undertaken.

&elective rearing of native "reeds < ?nder native "reeds there are some "reeds !hich are yielding optimum milk production. #hese "reeds can "e maintained "y maintaining pure "reeding5 programme.

?pgrading native "uffaloes < %urrah "uffalo "reed is the good "reed under "uffalo !hich can "e utili4ed for upgrading native "uffaloes. &lo!ly the future stock !ill "ecome graded murrah "uffaloes.
d3 ,

Animal Gus"andry activities < Eeterinary doctor should "e there in or

around) at least !ithin a reasona"le distance !ho !ill take care of the animals in the follo!ing activities.