CHAPTER 1

INTRODUCTION AND DESIGN OF THE

STUDY

1

INTRODUCTION

1.1 Introduction

Milk is nutrient rich food that provides a large number of nutrients

relative to the calories consumed milk is delicious as a beverage and can be

used as a base for other drink such as hot chocolate.

The milk of domesticated animals is also an important food source for

humans. Most milk consumed in Western countries is from cows; other

important sources include sheep, goats, water buffalo, and camels. Milk is

essentially an emulsion of fat and protein in water, along with dissolved

sugar, minerals (including calcium and phosphorus), and vitamins,

particularly vitamin B complex. Commercially processed cow's milk is

commonly enriched with vitamins A and D.

Many countries require pasteurization to protect against naturally

occurring and artificially introduced microorganisms. Cooling further

prevents spoilage (souring and curdling). Fat from whole milk (about 3.5%

fat content) can be removed in a separator to produce cream and leave low-

fat milk (1–2% fat) or skim milk (0.5% fat). Milk is usually homogenized,

forced under high pressure through small openings to distribute the fat

evenly. It may also be condensed, evaporated, or dehydrated for preservation

2

and ease of transport. Other dairy products include butter, cheese, and

yogurt.

1.2 WORLD WIDE

June 1 world milk day by FAO= food and agricultural organization. It

gives to children to promote the growth of their muscles, bones, teeth, and

brain.

Pediatricians & nutrientionist agree that the balanced with a

proportion of the necessary carbohydrate, & proteins, moreover , the high

content of vitamin D in milk is key component to milk bone structure, bone

recovery and bone health. In addition maintain the health of the teeth.

1.3 Functions of Cooperative Milk Producers Union

1. Establishment of chilling centers

2. Formation of new milk routes to collect milk produced by the

members of the societies.

3. Collection of milk from societies, process and pack in modern dairy.

4. Supply of quality milk.

5. Fixation of procurement and selling price of milk.

6. Supply of inputs to the members of the societies.

3

1.4 Nourishment of Milk

Milk contains calories, proteins, carbohydrate, fat, saturated fat,

cholesterol, vitamin A, vitamin C, foliate, calcium, magnesium, zin C,

phosphorus, iron.

4

CHAPTER 2

RESEARCH DESIGN

5

CHAPTER 2

REARCH DESIGN

2.1 Statement of The Problem

A study with the title “PRODUCTION AND SALES OF DAIRY

PRODUCT OF THE AAVIN IN TIRUNELVELI”.

2.2 Scope of The Study

We have started this project to know about the sales accepts of aavin

situated at tirunelveli. We have attained a lot of information which includes

production, sales, profit, loss etc…. in this project we also took effect to

know about their people welfare development and the quality of the milk.

2.3 Tools of Analysis

After collecting the data from the aavin dairy center the researches

classified and grouped all the collected data in a meaningful way be

presenting it in tables. They are percentage tables, per diagrams and

graphical representation. It is used to study the financial performance of

rettiyaarpattay in tirunelveli.

6

2.4 Objectives

1. To get extra knowledge about the dairy center.

2. To know about the function and activities of aavin.

3. To know about the financial highlight of the dairy center.

4. To know about the process of dairy product in dairy center.

5. To know the sales achieved during the study period.

2.5 Limitation of The Study

The data was collected from the company. The figure takes for

analysis were as revealed in the annual report of the company.

2.6 Period of The Study

The duration of the study was from 2008-2010. Data sets for each

year are collected for this period.

2.7 Methology

The present study in based on primary data. The primary data refer to

the data. The primary data may unpublished data. The unpublished data are

obtained from the staff member of the aavin dairy center.

7

CHAPTER 3

HISTORY OF AAVIN

8

CHAPTER 3

HISTORY OF AAVIN

3.1 Introduction

The dairy development was established in 1958 in Tamilnadu. The

administrative and statuary controls over all the milk cooperatives in the

state were transferred to the dairy development department on 1.8.1965. The

commissioner for milk production and dairy development was made as the

functional register under the tamilnadu cooperative societies act. With the

adoption of “anand pattern” in the state of tamilnadu. Tamilnadu Co-

operative Milk Producers’ Federation limited was registered in the state of

1st February 1981.

The commercial activities of the department such as milk

procurement, chilling, processing, packing and sale of milk to the consumer

etc., hitherto dealt with by the tamilnadu dairy development cooperation

limited, were transferred to the newly registered Tamilnadu Co-operative

Milk Producers’ Federation Limited, popularly known as “Aavin”.

Tamilnadu Co-operative Milk Producers’ Federation Limited was

constituted on 1st February 1981. Federation is procuring, processing and

marketing of milk and milk products federation has implemented the dairy

development activities under operation flood programmed with a financial

9

and technical assistance of national dairy development board. Chennai metro

is having four dairies. Milk procurement, processing and distribution are

being attended by the district unions in the respective areas.

In the wake of liberalization policy, private dairies have also entered

into the field of the honorable Chief Minister of tamilnadu high priority has

been given for improving the performance of milk co-operatives by

adoptinvg a symmetric approachin and proper sytratergy in milk co-

operatives. Significant achievement has been made by milk producers’

cooperative societies, unions and federation in the state of tamilnadu.

The cattle population in India is approximately 15% of total cattle

population in the world. India stood no.1 position in milk production.

tamilnadu is one of the leading state in milk production. The milk

production in tamilnadu per day is 145.88 lakh liters.

3.2 Objectives of the Dairy Development Department

1. Assure a remunerative price for the milk produced by the

member of the milk producers’ co-operative societies through a

stable, steady and well organized market support.

2. Distribution of quality milk products to the consumers at

reasonable price.

10

Keeping these objectives in mind, a number of activities are undertaken by

the dairy development department. Provision of free veterinary health cover

to all animals owned by the members of milk cooperatives, implementation

of artificial insemination program, supply of balanced cattle feed and

inculcation of farmers with modern animal husbandry methods and

practices.

All activities, which are essential for the up gradation of the mitch

animals and improving their productivity in the long run, have been

undertaken.

Provision of necessary infrastructure facilities for marketing

milk products and supply of quality milk to the consumer has been made by

way of establishing new chilling centers, pasteurization plants and adoption

of modern of modern processing system.

11

3.3 Center of aavin in Tamilnadu

Tirunelveli is the main branch of milk production and preparing dairy

products.

3.4 Four small branches:

Under tirunelveli, there are four small branches located as follows

1. Sankarankoil

2. Vallioor

3. Shathankulam

4. Kovilpatti.

These are also called as “Chilling center”

3.5 Collection of milk:

Raw milk:

The milk is collected from many villages. The milkers give their milk

through dairy form situated on their village. Therefore both societies and

milk givers can earn money with some profits. The collection of milk which

is directly gets from the milk giver is known as the “Raw Milk”. The milk

can be collected at morning and evening.

12

3.6 Dairy:

Processing facility: the milk received at the chilling centers are

brought to the dairy and along with the milk received at the dairy, milk is

processed for keeping the quality. Types of milk such as standardized milk,

high fat, high protein milk, are being prepared to the requirements of the

consumers; the surplus fat is converted into ghee. The whole milk surplus is

dispatched to metro dairies and feeder balancing dairies viz Madurai, erode,

and Trivandrum. The high fat and high protein milk are packed in 250ml and

500ml sachets. In the dairy milk ghee, ice-cream flavoured milk, rose milk,

butter milk etc are being manufacturing and marketed. The processing

capacity of main dairy, kovilpatti CC, valliyure CC, sakarankoil CC,and

sathankulam CC are 1,00,000; 10,000; 20,000; 50,000; 10,000 LPD

respectively

3.7 Transporting:

The collected raw milk from the above branch dairy forms is chilled

of about 40 C and then, the chilled milk is transported to tirunelveli main

depot with securely. Transporting vehicle may have the double layered

freezer attach with them. Therefore the milk can be securely comes to the

depot without any air pollution.

13

3.8 Process of milk:

3.1 Processing Hall

In tirunelveli depot, processing the milk is two types as described

follows. The process of pasteurization is carried out. Then, transported milk

is streamed at about 71OC and then chilling at 4OC to kill harmful bacteria.

Then the bacteria free milk is stored in silo (Large Milk Storage Tank)

at 6OC. These milk is then packed in ¼, ½, 1 liter pockets and then stored of

about 7OC to 8OC. Finally these pocket milk are distributed to various market

places for sale.

14

3.9 Homogenization

In first the homogenization is a process that reduces the size of fat

globules by forcing pressurized hot milk through small whole causing

turbulence, the break up the larger fact globules so that they remain

suspended rather than separating in a cream layer at the top.

Homogenization effects the development of atherosclerosis, coronary, heart

disease milk allergy, diabetes.

3.12 Pasteurization

It is a process by which the disease causing bacteria in the milk

are destroyed without losing its nutritive values. The milk is boiled at 600c

for thirty minutes and cooled quickly.

Whatever the method is used for preservations of food, cleanliness

and general sanitary conditions are imported.

3.13 To Access the Quality of Milk

1. Reduction Test

It access whether the bacteria are present or not in the milk. It

bacteria are present it will the bacteria in that milk.

2. MBR Test (methylene blue dye)

15

Lactase test

It is used to determine the lactic acid concentration in milk and

milk product since its value has to be kept under fixed law

limits.

Chloride test

It is used to measure the quality of salt in different dairy

products.

Ammonia Text

It is used to measures the ammonia concentration and it

determine the good quality milk. Ammo acid degradation of

sort cheese.

3.14 Percentage of fat in milk

The fat content in the milk is shown in the following table

Milk Fat percentage SNF percentage

Toned milk 3.0 8.5

Standardized milk 4.5 8.5

Double toned milk 2.0 9.0

3.1 Percentage of fat in milk

16

According to the fat and FAT content the type of milk explained in

the above table are packed in the blue, green and red color pocket

respectively.

High protein milk fat 3.0%; SNF 9.0%.

High fat milk fat 5.0; SNF 8.5%.

3.15 Different product:

The different produce by aavin is listed in the following list.

Product name

1. Butter

2. Milk – khoa

3. Ghee

4. Ice cream

5. Milk cake

6. Milk powder

7. Curd and butter milk

Aavin products

17

3.16 MARKETING:

At present this union is marketing 60,000 LPG approximately in the

tirunelveli and thoothukudi district through its agents, booths and parlours,

No of agents 86

Association 17

Private institutions 15

Govt.institutions 8

Societies 8

Milk booths 12

Milk parlours 14

No of milk distribution routes 14

3.17 Milk production:

Due to the technology development for veterinary department in India

leads to receive more liters of milk to main depot. The milk production

depends on the collection of milk and the quality. The following table shows

the rapid growth in milk production for three years.

18

Year Production (LPD) Increase/decrease

2007-2008 733812 -

2008-2009 771620 +37808

2009-2010 760210 -11410

3.2 Milk production

The above table shows of the aavin milk production for the three years

2007 – 2010. During the year 2007 – 2010, the company earned 733812

liters per day. In the next year the company has met to production 771620.

On comparing the previous years, the production of milk increased up to

37808. In the next year 2009 – 2010, the milk production reduces to 11410

on comparing the above.

3.18 Milk sales Statement

The milk sales mainly depend on the milk production. The following

are the sales of report for the milk sales for three years.

Year Sales (LPD) Increase/decrease

2007-2008 585567 -

2008-2009 660034 +74467

2009-2010 688063 +28029

3.3 Milk sales statement

Source: Primary data

19

The above table shows that milk sales increases rapidly between the

different years. This leads to get more profit for the sales department of

aavin.

20

CHAPTER 4

DATA ANALYSIS AND

INTERPRETATION

21

CHAPTER 4

DATA ANALYSIS AND INTREPETATION

4.1 Introduction

The study is an analyze the factor which influence the aavin product.

Following are the factors.

1. Age

2. Gender

3. Occupation

4. Income level

5. Sachet milk

6. Satisfaction of aavin price rate

7. Individual support

8. Quality of milk

9. Period of usage

10.Buying motivators

11.Purchase of other aavin products

22

4.2 AGEWISE CLASSIFICATION OF AAVIN MILK

Age is also an important factor which determines the ability of the

human being therefore the researcher wanted to analyze the age factor of the

aavin milk. The following table the age wise classification of the aavin milk,

aavin product.

Age Number of Respondents Percentage

21-30 16 32

31-40 10 20

41-50 19 38

51-60 5 10

TOTAL 50 100

4.1 Age wise classification

Source: Primary data

From the above table it is clearly understood 19% of people using

aavin products were belonged to 41-50 group next to it. 21-30 ages a group

person involved in aavin products that is 32%.

23

Up to 5000

5001-10000

10001-15000

15001-20000

0

5

10

15

20

25

30

35

40

45

50

Agewise classification

Number of respondentspercentage

Age

Num

ber o

f res

pond

ent/

perc

enta

ge

4.1 Age wise classification

24

4.3 Gender Wise Classification

Because of aavin product quality assurance, the male and female

people response to bring aavin product as shown in the following table.

Gender Number of respondents Percentage

Male 28 56

Female 22 44

Total 50 100

4.2 Gender wise classification

Source: Primary data

The above table reveals that 56% respondents are male and the

remaining 44% respondents are female.

05

1015202530354045

Gender wise classification

Up to 50005001-10000

No.of respondents

Prec

enta

ge

4.2 Gender wise classification

25

4.4 Occupation

Through aavin milk business lot of people get job directly or

indirectly. Some of them are listed in the following table.

Occupational level Number of respondents Percentage

Professional 12 24

Business 14 28

Private salary 8 16

Government salary 10 20

Others 6 12

Total 50 100

4.3 Occupation

Source: primary data

From the above table, respondents have undergone business category.

Then 6 respondents have undergone other occupation.

26

Profes

sional

Business

Private

salar

y

Govern

ment s

alary

Others Total

0

20

40

60

80

100

120

140

160

occupation

PercentageNumber of respondents

perc

enta

ge

4.3 Occupation

27

4.5 Income Level

Depending on the family income they buying the aavin product as

they wish.

Income level Number of respondents Percentage

Up to 5000 22 44

5001-10000 12 24

10001-15000 10 20

15001-20000 6 12

Total 50 100

4.4 Income level

Source: primary data

From the above table, it was identified that 44% of respondents earn

rupees up to 5000 per month. 24% of the respondents earn more than rupees

10000 per month.

28

Up to 5000 5001-10000 10001-15000 15001-200000

5

10

15

20

25

30

35

40

45

50

Number of respondentspercentage

Income level

No.

of re

spon

dent

s

4.4 Income level

29

4.6 Sachet milk

The packed milk is known as sachet milk. These are available in three

different colors due to their fat content. The production of sachet milk is

depending upon the peoples purchase.

Packed milk Number of respondents Percentage

Cow milk 25 50

Toned milk 8 16

Standardized milk 10 20

Full cream milk 7 14

Total 50 100

4.5 Sachet milk respondents

Source: Primary data

From the above table 25 respondents purchase cow milk out of 50

respondents. As like that 10 respondents brings standardized milk out of 50

respondents.

30

Cow milk Toned milk Standardized milk Full cream milk

25

810

7

50

16

20

14

sachet milkNumber of respondents Percentage

4.5 Sachet milk

31

4.7 Satisfaction of aavin price rate:

Due to the good quality of milk, the people bring aavin milk with their

satisfied price rate. Though the price of the milk increases due increase in

inflation percentage or price hike, the people eagerly purchase the aavin

product.

Satisfaction of aavinPrice rate

Number of respondents Percentage

Yes 30 60

No 20 40

Total 50 100

4.6 Satisfaction of aavin price rate

Source: primary data

60 % out of 100% purchase the aavin price rate is accepted. Out of

100, 40 percentage people did not accept the price rate of aavin milk.

32

60%

40%

Number of respondentsYes No

4.6 Satisfaction of aavin product

33

4.8 Individual support

This section describes how much of respondent support aavin milk

products individually.

Individual support Number of respondents Percentage

Yes 41 82

No 9 18

Total 50 100

4.7 Individual support

Source: Primary data

Out of 100, 82% people individually supports the aavin products. Out

of 100, 18% percentage people did not individually support aavin products.

Number of respondents Percentage0

102030405060708090

100

Individually support

Yes No

4.7 Individually supporter

34

4.9 Quality of milk

The following census shows that how much people like aavin because

of its quality.

Gender Number of respondents

for quality

Percentage

Male 27 54

Female 23 46

Total 50 100

4.8 Quality of milk

Source: Primary data

The above detail shows that how much of people like aavin milk

because of its quality assurance.

35

Quality of milk

Number of respondents for qualityPercentage

4.8 Quality of milk

4.10 Period of usage

36

The people use aavin products as much they can use. If anyone use

this product will not change this product. We have the following census

report to prove this.

Years Number of respondents Percentage

0-5 10 20

5-10 15 30

More than 10 25 50

Total 50 100

4.9 Period of usage

Source: Primary data

From the above table it is assured that 50% of people use aavin

products more than 10 years.

37

0-5 10-May More than 10

1015

25

20

30

50

Period of usageNumber of respondents Percentage

4.9 Period of usage

38

4.11 Buying motivation

The following table shows the census of that how the people movited

to bring the aavin product.

Motivated by No of respondents Percentage

Friends 18 36

Relatives 12 24

Neighbour 20 40

Total 50 100

4.10 Buying motivation

Source: Primary data

The above data shows that how the consumer motivated to buy this

aavin product.

39

Friends36%

Relation24%

Neighbor40%

Buying motivation

4.10 Buying motivation

40

4.12 Other purchase of other aavin products

The following table shows how much of people bringing aavin related

products such as milk-khoa, ice cream, badam milk and butter.

Product Number of respondents Percentage

Milk-khoa 15 30

Ice cream 20 40

Badam 5 10

Butter 10 20

Total 50 100

4.11 Purchase of other aavin product

Source: Primary data

From the above table it is clear that, many people bring aavin related

product as shown above.

41

Milk-khoa Ice cream Badam Butter0

10

20

30

40

50

60

Other aavin product

Number of respondents Percentage

4.11 Other aavin products

42

CHAPTER 5

MAJOR FINDING AND SUGGESTION

43

CHAPTER 5

MAJOR FINDING AND SUGGESTION

5.1 Introduction

The aavin dairy development has been undertaken by the government.

So, lot of people get job directly and indirectly. The aavin products are pure

and quality as shown in the above charts and table.

5.2 Findings

By using appropriate statistical tools the collected data were analyzed

and the results were drawn. The following are the major findings of the

present study.

5.3 Age wise classification

More than 19% of people using aavin products were belonged to 41-

50 group next to it. 21-30 ages a group person involved in aavin products

that is 32%.

5.4 Gender wise classification

Statistical report says 56% respondents are male and the remaining

44% respondents are female.

44

5.5 Occupation

Lot of people get the chance for occupation dirctly and indirecly. The

statistical report says that many people get the job in profeesional, private,

government and business oriented job. 24% of people get job in

profeesional, 28%, 16%, 20% people get job in private, business and

govermental job respectively.

5.6 Monthly income

The statistical report says that 44% of respondents earn rupees up to

5000 per month. 24% of the respondents earn more than rupees 10000 per

month.

5.7 Sachet milk Individual support

25 respondents purchase cow milk out of 50 respondents in sachet. As

like that 10 respondents brings standardized milk out of 50 respondents.

5.8 Satisfaction of aavin price rate:

60 % out of 100% purchase the aavin price rate is accepted. Out of

100, 40 percentage people did not accept the price rate of aavin milk.

45

5.9 Individual support

Out of 100, 82% people individually supports the aavin products. Out

of 100, 18% percentage people did not individually support aavin products.

5.10 Quality of milk

64% people accept the aavin products’ quality. But 36% people did

not accept aavin products’ quality.

5.11 Period of usage

20% people use aavin product till 5 years. 30% of people use aavin

product more than 5 years. But 50% of people use aavin product more than

10 years.

5.12 Buying motivation

36% consumer motivated by relatives. 24% consumer motivated by

neighbors and 40% of consumer motivated by their friends to bring aavin

products.

46

5.13 Other purchase of other aavin products

30% of people bring milk-khoa, 40% of consumer brings ice cream,

10% of people bring badam and 20% of people bring butter.

5.14 Conclusion

We have started this project to know about the aavin milk sales and

product. We have observed how to treat the milk, produce the related

product, quality materials and sales achievement. Thus we have analyzed

how the and for what the people bring this product.

47

QUESTIONNAIRE

48

PRODUCTION AND SALES OF DAIRY PRODUCT OF THE AAVIN

IN TIRUNELVELI

1. Name :

2. Age :

3. Gender : male/female

4. Address :

5. Occupation

a. professional b. business

c. private salaried d. government salaried

e. others

6. Monthly income

a. less than Rs. 5000 b. Rs. 5000-10000

c. Rs. 10000-15000 d. more than Rs. 15000

7. Do you buy?

a. packed milk b. loose milk

8. If packed milk, mention brand

a. aavin milk b. arockia

c. kavins d. others

49

9. If aavin milk, how long will you use?

a. 5 years b. 10 years

c. 15 years d. more than 15 years

10. For what reason are you buying?

a. taste b. rate

c. purity d. quality

11. Are you satisfied with the rate of aavin milk?

a. yes b. no

12.If the price of the aavin milk extend, will you buy this aavin product?

a. yes b. no

13.What is color of aavin packet do you buy?

a. blue b. green

c. red

14.Why do you prefer this?

15.Is the quality of aavin milk is good?

a. yes b. no

16.If not, what change to be bringing to improve the quality?

50

17.Who suggest you to buy this aavin?

a. friends b. relation

c. neighbor

18.Are you satisfied with aavin product?

a. yes b. no

19.Do you purchase any other aavin product except milk, mention the

following?

a. milk powder b. badam milk

c. milk-khoa d. milk cake

e. butter f. ice cream

20.Feed back about aavin

51

BIBILIOGRAPHY

52

BIBILIOGRAPHY

1. Introduction of aavin - encyclopedia

2. Profile of the milk - aavin milk nellai

3. Processing of milk - aavin nellai

4. History - Wikipedia

5. Related products - www.aavin.com

6. Study area - www.aavinnellai.com

53