Value chain analysis of

dairy in Khagaria
district(Bihar)
By
Rupesh kumar
PRM 29
Scheme of presentation
 Introduction
 Objective
 Methodology
 Scope of the study
 Analysis of the value chain
◦ Production system
◦ Processing
◦ Marketing
 Economics of dairy
 Effect of higher price realization
 The intervention plan
Introduction
Khagaria at a glance
Geographical location
Ø Surrounded by four rivers
Land profile
Ø Soil mostly alluvial in nature which are
formed by deposition of river
Major crops
Ø Wheat, maize and rice with some amount
of green gram
Rain fall
Ø 1100 to 1200 mm out of which 80% fall
between July to September
Economy
 Bulk Milk
Bu
chillers

Ganga
dairy
 Objective of the study
 Understanding the local dairy
 Identification of various player involved in
the value chain
 Analysis of various player involved in the
value chain
 Assessing the financial feasibility of 2
animal model
 Identification of the suitable model for the
SRIJAN intervention
Methodology
Base line survey
Focused group discussion with
farmers
Structured and semi-structured
interview of various player of value
chain
Visits to Milk collection Centres of
COMPFED and Ganaga dairy
Discussion with the staff of JEEVIKA ,
COMPFED and Government officials
Use of secondary source of
Scope of the study
District
Khagaria
ØBlock Khagaria and Alauli
Production system
Swot Of Dairy Production System
Continue
Monthly milk collection in Khagaria by
COMPFED
Processing of milk
Marketing
 Price on fat
basis
Farmer
C
R
Rs 20-25 E
DCS Rs M D
/Litre I I
/L 1 L
IT 2- T
RE 14 K
Rs 23-
25/litre
Consumer
Dudhiya

Creameries

MILK
GANGA
DAIRY
COLLECTION
CENTRE

COMPFED DCS
PRICE OF ONE LITRE OF MILK AT
Rs
DIFFERENT LEVELS 24
Rs
22
Rs
18
Rs 14

FARMER DUDHIYA COMFED CONSUM

ER
Share of various player in consumer
money
 Mode of operation of
Dudhiya
Single price i.e. not on the basis of fat
or SNF(buffalo milk=14-16Rs/litre,
cow milk=13-14)
He use a special measuring device for
purchase of milk called PATHA, which
measures about 1200 ml to 1250 ml
for a litre
For selling, he uses a device of 1000
ml
If he sell to the COMPFED which buy
COMPFED
Procure milk through its dairy
cooperative society
Total 5 routes in Khagaria
DC DC
S S
Alauli DC
S DC
block Route no S
X
DC
S
DC DC Bulk chilling
DC
S S DC S unit Khagaria
DC S
S

Barauni milk 50-60km

 Mode of operations of dairy
cooperative society
 Elected representative: President
 Paid position : Dairy secretory
 Payment of milk price
Ø On every15th day
 Basis of payment
Ø Both fat and SNF
qPayment of staff at DCS
Ø Its from the profit earned by the DCS and at
their discretion i.e. no interference from the side
of COMPFED
qQuality parameter
Ø Strict quality parameter being followed
 Ganga dairy
Have milk collection centre on the
pattern of COMPFED but the selection of
the secretory is on the franchise
model and not by voting
Payment rate same as the COMPFED
(not sure how much of it is going to the
farmers)
Payment duration
Ø20 days to 1-1/2 months
qQuality parameter
Economics of the dairy
Cost economics of Deshi
Cow
Cost economics of
Buffalo
Cost economics of
Dairy
Effect of higher price
realisation(figures IN Rs)
Proposed alternative
model
Farmer Farmer Farmer Farmer Farmer Farmer

VILLAGE LEVEL
VILLAGE LEVEL DAIRY
DAIRY INTEREST INTEREST
GROUP GROUP Dudhiya

Collection and chilling

of milk
BLOCK LEVEL
PRODUCER
COMPANY

SOME
OTHER Product
PLAYERS COMFED development
 VILLAGE LEVEL DAIRY
INTEREST GROUP
Role
§ Collection of milk from Farmer

member Farmer Farmer

§ Testing of fat and SNF

§ Payment on time to producers
§ Acting as retail unit
§ Recommendation for cattle loan VILLAGE LEVEL
Assets required DAIRY
INTEREST
§ Milk can, milk tester, weighing GROUP
instrument
 BLOCK LEVEL PRODUCER
COMPANY
Village
Role level
§ Arrangement of milk van federation
Village
§ Checking of fat and SNF at level
Village level
federation
block level federation

§ Chilling the milk

§ Sending the milk to the
district level
federation/COMFED
Block level
§ Ensuring timely payment federation
to the member
Assets required
§ milk tester, transport
vehicle, weighing
 DISTRICT LEVEL PRODUCER
COMPANY
Role
§ Collection of milk from BLF BLF
BLF BLF
Block level federation
§ Manufacturing of milk
products
§ Manufacturing of feed
§ Monitoring of health of
animal
§ Making plans for the
DISTRICT LEVEL
disease preventive PRODUCER
measures COMPANY
Capacity building before the
intervention
Training a pool of Para-professional
about
ØBenefit of cleanliness and hygienic
condition
ØCommon disease and its treatment
ØAnimal rearing practices
Farmer must be motivated to go for
new type of high yielding multi-
harvesting green fodder like
barseem, AZOLLA
 Some of the possible issue
which might come in future
Flood
Moving away of people from our
Village Dairy Interest group
Decreasing interest of people in dairy
activities
COMFED might patch up it loop holes
Dudhiya might starts giving
competitive rates
Entry of new players
Conclusion
Current value chain is exploitive in
nature
People are looking for the
alternative of Dudhiya and
COMFED
People may shift back to the
Dudhiya for the credit needs
DISCUSSION
Dudhiya