report for benchmark survey.pdfi am immensely grateful to sri. p.t. gopalakurup, chairman, and sri....

Centrally Sponsored Scheme

NATIONAL PROGRAMME FOR BOVINE BREEDING AND DAIRY

DEVELOPMENT

Benchmark Survey Report

Sponsored by Department of Animal Husbandry, Dairying and Fisheries

Government of India

Implemented by Malabar Regional Cooperative

Milk Producers Union Ltd.

Report from

Dr N.R. Unnithan

2014 ACKNOWLEDGEMENT

I am immensely grateful to Sri. P.T. Gopalakurup, Chairman, and

Sri. P.K. Pathak, Managing Director and other Board of Directors of Kerala

Cooperative Milk Marketing Federation Ltd. (KCMMF) for initiating the

Benchmark Survey for the ‘National Programme for Bovine Breeding and

Dairy Development,’ a centrally sponsored scheme. I am also indebted to Sri.

K.N. Surendran Nair, Chairman, Sri. K.T. Thomas, Managing Director and other

Board of Directors of Malabar Regional Cooperative Milk Producers Union Ltd.

(MRCMPU) for commissioning the study in Malabar and for their confidence in

entrusting the study with me. During the course of study, I received

considerable support and assistance from several officers and employees of

KCMMF and MRCMPU who were kind enough to spend their time to share

their valuable experience and in providing the required information. They are

too many to be mentioned here. My sincere thanks to all of them especially to

Sri. Jimmy Abraham, General Manager (P&P) and Sri. K.G. Satheesh, Senior

Manager (Mktg & HR) from KCMMF and Sri. Babu Varghese, Manager

(PP) from MRCMPU. My thanks are also due to Sri. G. Selvakumar, Sr.

Manager (P&I) and Sri. P.A. Ramesan, Manager (Mktg) for helping me in

carrying out the household survey in six districts of Malabar. My sincere

thanks to all the respondents of household survey who were kind enough to

spend their valuable time to provide the required information. My sincere

gratitude is also due to Sri. N.P. Roopesh, Technical Officer, Head Office,

MRCMPU for helping me with the data management and for assisting me in

writing up the report.

Thanking all once again,

Thiruvananthapuram Dr Unnithan N.R.

June 2014 Consultant (Dairy & Livestock) Former MD, KLD Board

Acronyms

AHD/DAH Animal Husbandry Department AMCU Automatic Milk Collection Unit APCOS Anand Pattern Cooperative Society BMC Bulk Milk Cooler CFU Colony Forming Units CMP Clean Milk Production DCS Dairy Cooperative Society DDD Department of Dairy Development EMT Electronic Milk Tester FRMS Fund Release Monitoring System FSMS Food Safety Management System FSSA Food Security and Standards Act GOI Govt of India GOK Govt of Kerala HACCP Hazard Analysis and Critical Control Procedure KCMMF Kerala Cooperative Milk Marketing Federation Kg Kilogram LPD Liter Per Day LLPD Lakh Liter per Day LR Lactometer Reading LSG Local Self Government MBRT Methylene Blue Reduction Time MCP Milk Chilling Plant Milma Kerala Cooperative Milk Marketing Federation MoAH&D Ministry of Animal Husbandry and Dairying MRCMPU Malabar Regional Cooperative Milk Producers Union MRDF Malabar Rural Development Foundation MT Metric Ton NA Not Available NDDB National Dairy Development Board P&I Procurement and Input PFA Prevention of Food Adulteration PUF Poly Urethane Foam Q A Quality Assurance QC Quality Control

QCA Quality as Competitive Advantage RC Reconstitution RKVY Rashtriya Krishi Vikas Yojana RSVY Rastriya Swayam Vikas Yojana SC Scheduled Caste SCC Somatic Cell Count SIQCMP Strengthening Infrastructure for Quality and Clean Milk

Production SNF Solid Non Fat SPC Standard Plate Count ST Scheduled Tribe TMC Technical Management Committee TCS Traditional Cooperative Society TOR Terms of Reference

CONTENTS

No. Topic Page No.

1 Introduction 1

2 Palakkad District 11

3 Malappuram District 57

4 Kozhikode District 99

5 Wayanad District 141

6 Kannur District 186

7 Kasaragod District 227

Annex.

1 Information and Communication System - NPDD

List of Tables Table No. Table Page

No. 2.1 Chilling Facility in Palakkad District during March 2014 21

2.2 Amount Spent and Infrastructure Created under CSS in Palakkad Dairy 24

2.3 Processing Equipments and Machineries in Palakkad Dairy 24 2.4 Infrastructure for Ghee Production Palakkad Dairy 27

2.5 Additional Facilities Suggested for Palakkad Dairy under NPDD 28

2.6 Milk and Milk Products Sale Palakkad District 30

2.7 Market Size for Milk and Market Share in Palakkad District 2013-14 31

2.8 Marketing Facilities Available under MRCMPU in Palakkad District March 2014 32

2.9 List of Activities and Equipments Suggested for Market Development in Palakkad District 2014-15 to 2016-17 34

2.10 Profile of DCS in Palakkad District 2013-14 40 2.11 Palakkad District Av. Milk Quality 2013-14 42

2.12 Components Suggested under NPDD for Strengthening the Milk Procurement in Palakkad District 2014-15 to 2016-17 43

2.13 Farm Equipments Supplied to Farmers in Palakkad District 46

2.14 Cattle Sheds and Farm Machineries Suggested under NPDD Palakkad District 46

2.15 Cattle Induction Program Proposed for Palakkad District 47

2.16 Equipments and Facilities Suggested for Quality Control Lab Palakkad Dairy under NPDD (2014-17) 48

2.17 Assistance under SIQCMP in Palakkad District 48

2.18 CMP Kits Suggested under NPDD in Palakkad District (2014-17) 49

2.19 Technical Input Services Components and Achievements Palakkad District 50

2.20 Technical Input Services for Palakkad District 50

2.21 Information and Communication Technology Networking- Palakkad District 52

2.22 Farmers and DCS Employees Trained under IDDP/SIQCMP in Palakkad District during the Last Five Years 53

2.23 Training Suggested under NPDD 2014-15 to 2016-17 54

2.24 The Amount Required to Pay Milk Value for 21 Days in Palakkad District 56

3.1 Chilling Facility in Malappuram 2013-14 67 3.2 Existing Equipments in Nilambur Milk Chilling Plant 69

3.3 Equipments Suggested under NPDD for Milk Processing in Malappuram District 70

3.4 Milk and Milk Products Sold in Malappuram District 72 3.5 Supply Demand Position in Malappuram District 2014 73 3.6 Existing Marketing Facility Malappuram District 2013-14 74

Introduction

3.7 Marketing Infrastructure Proposed for Malappuram District under NPDD Programme 74

3.8 Profile of DCS in Malappuram District March 2014 81 3.9 Average Quality of Milk in Malappuram, 2013-14 82

3.10 Suggested Support for Milk Procurement under NPDD Malappuram District 84

3.11 Farm Equipments Supplied from MRCMPU and MRDF to Farmers in Malappuram District 86

3.12 Cattle Shed and Farm Machineries Proposed under NPDD for Malappuram District 87

3.13 Cattle induction Program Proposed in Malappuram District 88 3.14 Establishment of Laboratories under NPDD in Malappuram 89

3.15 CMP Kits Supplied under SIQCMP Scheme in Malappuram District 91

3.16 CMP Kits and Milking Machines Suggested under NPDD for Malappuram District 92

3.17 Technical Input Services Suggested in Malappuram District under NPDD 93

3.18 Information and Communication Technology Networking- Malappuram District 94

3.19 Employees and Elected Members Trained from Malappuram District 95

3.20 Proposed Training Program under NPDD Malappuram District 97

3.21 The Milk value due for 21 Days in Malappuram District to Farmers 98

4.1 Milk Chilling Facility in Kozhikode District 2013-14 108 4.2 Quality Comparison of BMC and Dock Collected Milk 108 4.3 Kozhikode Dairy Existing Facilities and Equipments 111 4.4 Equipments Suggested for Kozhikode Dairy 112 4.5 Progress of Milk and Milk Products sale in Kozhikode District 114

4.6 Existing Marketing Infrastructure Kozhikode District March 2014 115

4.7 Estimation of Market Size and Market Share of Milma in Kozhikode District 2014 115

4.8 Additional Marketing Infrastructure Suggested for Kozhikode District 117

4.9 Profile of DCS Kozhikode District 2013-14 122 4.10 Kozhikode District Milk Quality (average) 2013-14 124

4.11 Milk Procurement Activities Suggested under NPDD Kozhikode District 126

4.12 Farm Equipments Supplied to Farmers in Kozhikode District 128

4.13 Cattle Sheds and Farm Machineries Suggested under NPDD for Kozhikode District 129

4.14 Cattle Induction Program Suggested under NPDD Kozhikode District 130

6

Introduction

4.15 Establishment of Laboratories in Kozhikode District under NPDD 131

4.16 CMP Kits Supplied under SIQCMP Scheme in Kozhikode District 133

4.17 CMP Kits and Milking Machines Suggested for Kozhikode District under NPDD 133

4.18 Technical Input Services Achievements in Kozhikode District under Earlier Schemes 134

4.19 Technical Input Services Suggested in Kozhikode District under NPDD 135

4.20 Information and Communication Technology Networking- Kozhikode District 137

4.21 Employees and Elected Members Trained from Kozhikode District 137

4.22 Proposed Training Program under NPDD – Kozhikode District 139

4.23 Amount Required to Pay Milk Value for 21 Days in Kozhikode District 140

5.1 Milk Chilling Facility in Wayanad District March 2014 149 5.2 Details of Investments in Wayanad Dairy after Commissioning 150

5.3 Milk and Milk Products Manufactured in Wayanad Dairy during 2013-14 150

5.4 Wayanad Dairy Existing Facilities and Equipments 151

5.5 Additional Equipments Suggested for Wayanad Dairy under NPDD (2014-17) 153

5.6 Milk Marketing Activities Carried Out in Wayanad District under CSS 154

5.7 Milk and Milk Products Sold from Wayanad Dairy 155 5.8 Calculated Market Share in Wayanad District 2013-14 157

5.9 Existing Market Promotion Amenities in Wayanad as on 31-3-2014 158

5.10 The Suggested Infrastructure under NPDD for Marketing in Wayanad District 161

5.11 The Profile of DCSs in Wayanad District 167

5.12 Quality of Milk Collected from Farmers in Wayanad District 2013-14 168

5.13 Support for Milk Procurement Suggested for Wayanad District under NPDD 170

5.14 Farm Equipments Supplied to the Farmers in Wayanad District 172

5.15 Cattle Sheds and Farm Machineries Suggested under NPDD for Wayanad District 174

5.16 Cattle Induction Program Suggested in Wayanad District 175 5.17 Establishment of Laboratories in Wayanad District 176

5.18 CMP Kits Supplied under SIQCMP Scheme in Wayanad District 177

5.19 CMP Kits and Milking Machines Suggested for Wayanad District under NPDD 177

7

Introduction

5.20 Technical Input Services Components and Achievements in Wayanad District 178

5.21 Wayanad District Technical Input Services Suggested under NPDD 179

5.22 Information and Communication Technology Networking Wayanad District 181

5.23 Employees and the Elected Members Trained in Wayanad District 182

5.24 Proposed Training Program under NPDD – Wayanad District 184 5.25 Value of Milk Procured in 21 Days from Wayanad District 184

5.26 Working Capital Required in Wayanad District 2014-15 to 2016-17 185

6.1 Milk Chilling Facility in Kannur District 2013-14 195 6.2 Kannur Dairy: Existing Facilities and Equipments 196

6.3 Equipments and Machineries Proposed for Kannur Dairy under NPDD (2014-2017) 198

6.4 Milk and Milk Products Sold in Kannur District 200 6.5 Estimation of Market Size for Milk Kannur District 2014 201

6.6 Status of Marketing Infrastructure in Kannur District March 2014 202

6.7 The Suggested Infrastructure under Marketing in Kannur District 205

6.8 Profile of DCSs in Kannur District 2013-14 210 6.9 Kannur District Av. Milk Quality 2013-14 211 6.10 Suggested Milk Procurement Activities in Kannur District 213 6.11 Farm Equipments Supplied to Farmers in Kannur District 216

6.12 Cattle Sheds and Farm Machineries Proposed under NPDD for Kannur District 217

6.13 Cattle Induction Program Suggested under NPDD for Kannur District 217

6.14 Establishment of Laboratories under NPDD in Kannur District 218 6.15 CMP Kits Supplied under SIQCMP Scheme in Kannur District 219

6.16 CMP Kits and Milking Machines suggested under NPDD for Kannur District 220

6.17 Technical Input Services: Components and Achievements in Kannur District 220

6.18 Technical Input Services Proposed in Kannur District under NPDD 221

6.19 Information and Communication Technology Networking- Kannur District 222

6.20 Employees and Elected Members Trained in Kannur District 223 6.21 NPDD HR Kannur District 2014-15 to 2016-17 225 6.22 Milk Collected from Kannur District, Milk Value for 21 Days 226 6.23 Working Capital Requirement for Kannur District 226 7.1 Status of Milk Chilling Facility Kasaragod District, 2013-14 235

7.2 Amount Spent and Infrastructure Created under CSS in Kasaragod Dairy 237

8

Introduction

7.3 Processing and Allied Equipments and Machineries Installed in Kasaragod Dairy 238

7.4 Equipments and Machineries Suggested for Kasaragod District under NPDD 240

7.5 Progress in Sale of Milk and Milk Products in Kasaragod, 2013-14 243

7.6 Estimated Market Size of Milk in Kasaragod District, 2014 244 7.7 Existing Milk Marketing Facilities in Kasaragod, 2013-14 245 7.8 Marketing Infrastructure Suggested for Kasaragod District 248 7.9 Profile of DCS in Kasaragod District March 2014 253 7.10 Kasaragod District Av. Milk Quality 2013-14 254

7.11 Kasaragod District Suggested Milk Procurement Facilities under NPDD 2014-17 256

7.12 Farm Equipments Supplied to Farmers in Kasaragod District 259

7.13 Kasaragod District Cattle Shed and Farm Machineries Suggested under NPDD 2013-17 260

7.14 Cattle Induction Program Suggested in Kasaragod District under NPDD 2014-2017 260

7.15 Kasaragod Dairy Laboratory Facilities Requested under NPDD 2014-17 261

7.16 CMP Kits Supplied under SIQCMP Scheme in Kasaragod District 263

7.17 CMP Kits and Milking Machines Suggested for Kasaragod District under NPDD 263

7.18 Technical Input Services Components and Achievements Kasaragod District 264

7.19 Technical Input Services for Kasaragod District 264

7.20 Information and Communication Technology Networking- Kasaragod 266

7.21 Training of Employees and Elected Members in Kasaragod District 267

7.22 Manpower Development Kasaragod District Suggested Programs under NPDD 2014-15 to 2016-17 269

7.23 Actual and Calculated Milk Value for 21 Days in Kasaragod District 270

7.24 Working Capital Requirement for Three Years from 2014-15 for Kasaragod District 271

9

Introduction

10

1. NATIONAL PROGRAMME FOR BOVINE BREEDING

AND DAIRY DEVELOPMENT (NPBBDD)

Contents

1.1 The Programme 2

1.2 Objectives 3

1.3 Funding Pattern 3

1.4 Funding Limit 4

1.5 Implementing Agencies 4

1.6 Project Preparation and Submission 5

1.7 Benchmark Study 5

1.8 Organization of the Report 10

Introduction

1.1 The Programme The Centrally Sponsored Scheme

‘National Programme for Bovine

Breeding and Dairy Development’

(NPBBD) is being implemented

nationwide by the Government of

India. The current phase of the

programme is from 2014-15 to

2016-17 and is likely to be

continued in subsequent Plans.

The NPBBDD has been formulated

by merging four ongoing schemes

of the Department of AHD Dairying

and Fisheries. These are the

National Project for Cattle and

Buffalo Breeding (NPCBB),

Intensive Dairy Development

Programme (IDDP), Strengthening

Infrastructure for Quality and

Clean Milk Production (SIQ and

CMP) and assistance to

cooperatives. This has been done

to integrate milk production and

dairying activities in a scientific

and holistic manner for attaining

higher levels of milk production

and productivity, to meet the

increasing demand for milk in the

country.

The scheme will be implemented

with an allocation of Rs 1800 crore

during the 12th Five Year Plan. It

has two components, (a) National

Programme for Bovine Breeding

(NPBB), and (b) National

Programme for Dairy Development

(NPDD). NPBB will focus amongst

other things on extension of the

Field Artificial Insemination (Al)

Network, monitoring of Al

programme, development and

conservation of indigenous breeds

and establishment of breeders'

associations and societies to

encourage conservation and

development of recognized native

breeds of cattle and buffalo.

The NPDD component of NPBBDD

scheme has been designed to

develop infrastructure from the

grass root level by providing

financial and technical assistance

for dairy development. NPDD will

focus on creating infrastructure

related to production, procurement,

processing and marketing of milk

by milk unions/federations and

also extension activities including

training of farmers. The major

objectives of NPDD can be

summarized as follows.

11

Introduction

1.2 Objectives 1. Create and strengthen

infrastructure for production

of quality milk including cold

chain infrastructure linking

the farmers to the

consumers.

2. Create and strengthen

infrastructure for procurement,

processing and marketing of

milk.

3. Create infrastructure for

training of dairy farmers.

4. Strengthen dairy cooperatives/

Producers’ companies in

villages.

5. Increase milk production by

providing Technical Input

Services like cattle feed,

minerals and so on.

6. Assist rehabilitation of

potentially viable Milk

Federations/ Milk Unions.

1.3 Funding Pattern The major components that will

be funded under the NPDD are:

1. Milk chilling facilities at

Village, Block and District

levels.

2. Civil works.

3. Equipment for Bulk Milk

Coolers and Chilling Centers.

4. Milk Processing and

Marketing.

5. Milk Procurement.

6. Cattle Shed.

7. Cattle Induction.

8. Construction/Establishment

of Milk and Milk Product

Testing Laboratories.

9. Clean Milk Production Kits.

10. Technical Input Services.

11. Information and

Communication Technology.

12. Manpower and Skill

Development.

13. Working Capital for DCS and

Milk Union.

14. Rehabilitation of Defunct/

Sick.

15. Planning and Monitoring.

16. Centralized MIS Facility for

DADF.

In districts where the National

Dairy Plan (NDP) is in operation,

12

Introduction

the NPDD will support only those

components that are not included

in the former.

The pattern of funding for all

components under NPDD will be

100 per cent grant-in-aid except

for:

a. Installation of BMC;

b. Milk processing plants;

c. Milk powder plants; and

d. Rehabilitation of milk unions

and federations

In the case of components a, b and

c above, the funds will be limited

to 50 per cent of approved cost (90

per cent for North Eastern states

and hilly districts) in NDP

implemented states. In non NDP

states the assistance will be 75 per

cent for profit making Unions

(profit of Rs 1 crore and above) and

90 per cent if the profit is less than

Rs 1 crore. In the case of

component (d) the maximum

assistance will only be 50 per cent

of the project cost.

1.4 Funding Limit The central assistance will be

limited to Rs 15.0 crore for all

components put together in a

district. However, in the case of

Milk Unions and Federations

operating in more than one district

the funds can be pooled for

creating centralized facilities like

Milk Powder Plant, Central lab and

so on. However, the maximum

assistance will be limited to Rs

25.0 crore for processing capacity

one LLPD and more, Rs 15.0 crore

for processing capacity up to

50,000 LPD and Rs 10.0 crore for

processing capacity up to 20,000

LPD.

1.5 Implementing Agencies The State Implementing Agency

(SIA) will be the State Dairy

Federation for states like Kerala

and 17 other states (see

administrative approval for specific

states) and Milk Unions in other

cases. The End Implementing

Agencies EIAs are the District Milk

Unions, New Generation Milk

Producer Companies and District

Rural Development Authority

where District Milk Unions do not

exist. The other agencies like

Universities, Colleges and ICAR

13

Introduction

institutions are classified as

Participating Agencies and eligible

for financial support (PIAs) if they

are associated or affiliated to SIAs

or EIAs.

1.6 Project Preparation and

Submission A single comprehensive proposal

covering the requirements of all

EIAs in the state shall be prepared

by the SIA and submitted for

consideration of the GOI. The

proposal shall be prepared on the

basis of a Baseline Survey to be

carried out by an independent

agency.

1.7 Benchmark Study The guidelines on NPDD mandate

a situation analysis. The situation

analysis shall include, a) Pre-

project Baseline survey by an

independent agency, b) funding

under earlier programs, c) role and

capabilities of different players,

and d) and areas of operation.

Accordingly, the Malabar Regional

Cooperative Milk Producers Union

Ltd. (MRCMPU) commissioned the

current study. With the following

Terms of Reference (TOR):

1. The Bench Mark of Milk

production, Milk Procurement,

Technical Input Services

(including Cattle breeding,

Fodder development,

Transport of cattle feed and

Fodder, Health care, Clean

milk production Inputs, Other

Extensions Activities etc.),

Milk Processing and Milk

Marketing, Manpower

development (Cooperative

Development, Training of

Farmers/Officials of DCS and

Milk Union) and Working

capital position of MRCMPU

during the year 2013-14.

2. The Bench Mark on Milk

Production and Milk

Procurement should also

include number of functional

dairy cooperative societies,

milk suppliers, and average

daily milk procurement per

dairy co-operative society and

for MRCMPU for the year

2013-14.

3. Bench Mark the quality

assessment procedures in

14

Introduction

Dairy cooperative societies

and assess the current values

of FAT, SNF and MBRT at the

DCS and Dairy levels.

4. Suggest key components

under Milk Processing and

Marketing, Milk Procurement,

Technical Inputs, Manpower

Development and Working

capital in the NPDD Project

for MRCMPU with

justification for the same.

5. Report and validate the

Annexure from I to VII and

provide data for Annexure VIII

to X. which is given along

with this order.

6. The secondary data can be

gathered on each component

from the available/published

sources including the reports,

records and MIS of Milk

Unions under the KCMMF.

7. Primary data can be collected

from randomly selected

sources like DCS, farmers,

sales outlets, distributors and

other agencies and from all

Processing Dairies under the

Unions through surveys, in

depth interviews and

discussions, FGD and direct

observation by the

Consultant.

8. Current status, adequacy/

inadequacy with reasons in

each component (current and

EOP) and the suggestions for

inclusion under NPDD shall

be highlighted.

9. All the Bench Mark values/

data shall be provided

district-wise and at Union

level for the year 2013-14.

1.7.1 Study Team

A single man study team of Dr. N.

Ramachandran Unnithan (Dr N.R.

Unnithan), former Managing

Director of KLD Board has

undertaken the study. Dr

Unnithan graduated from Kerala

University in 1968 (BVSc) and is a

Master of Science (Animal Genetics

and Breeding) from the prestigious

Institute of Animal Genetics and

Breeding, University of Edinburgh,

UK. He has more than forty three

years of experience in livestock

production. Core skills are in the

design, development and

management of cattle farms and

large scale Artificial Insemination

15

Introduction

(AI) programs, evaluation and

impact studies and applied

research.

Dr Unnithan has executed a

number of evaluation studies and

field research. Recently concluded

study (2010) on ‘Cost of Production

of Milk in Kerala’ is a landmark

study on the economics of milk

production and marketing in the

State. He spearheaded two major

national studies – ‘Evaluation of

Central Fodder Development

Organization’ and ‘Strengthening

Infrastructure for Quality and Clean

Milk Production.’ Among the

several other studies conducted by

him, the ‘Benchmark Survey for

Centrally Sponsored Scheme IDDP

– Idukki District’ 2011,

‘Benchmark Survey for Centrally

Sponsored Scheme IDDP –

Palakkad, Malappuram, Kozhikode,

Wayanad, Kannur and Kasaragod

Districts’ 2011, ‘Benchmark Study,

Pathanamthitta District Centrally

Sponsored Scheme IDDP 2010-11,’

‘Bench Mark Survey, Ernakulam,

Kottayam and Thrissur Districts –

Centrally Sponsored Scheme

Strengthening Infrastructure for

Quality and Clean Milk Production

2010-11,’ ‘Bench Mark – Centrally

Sponsored Scheme Strengthening

Infrastructure for Quality and

Clean Milk Production –

Thiruvananthapuram, Kollam,

Alappuzha and Pathanamthitta

Districts 2011 -12,’ ‘Baseline Study

on Establishment of a Dairy Plant

in Malappuram District – 2012,’

‘Baseline Study on Malabar Rural

Development Foundation – 2012,’

‘Bench Mark Study on Special

Package for Mitigation of Agrarian

Distress of Farmers in Idukki

District’ are some of them. The

‘Evaluation Study on Intensive

Dairy Development Program

(IDDP) 2013’ implemented by

MRCMPU and ‘Evaluation Study

on Strengthening Infrastructure

for Quality and Clean Milk

Production (CMP) 2013’ are the

recent ones. He has also

functioned as Chairman Research

Advisory Council, Project

Directorate on Cattle, ICAR,

Meerut, UP and member of

Working Group on Animal

Husbandry & Dairying – National

Dairy Plan, 12th FYP, National

Planning Commission. Dr

Unnithan’s vast experience

16

Introduction

spanning over forty three years in

livestock production and the

insights gained through

monitoring and evaluations of

dairy development programs have

enriched the outcome of this

study.

1.7.2 Study Method

The study has been accomplished

through a combination of different

methods and tools. In order to

identify the areas uncovered under

milk procurement and to study the

potential for milk collection a list

of such Panchayats/Panchayat

wards were prepared and two

villages and households were

selected at random and surveyed.

To gather data from the existing

DCS area random sampling model

has been adopted. All DCS in the

district were stratified into three

categories – BMC DCS (having in-

house BMC), Cluster DCS

(supplying milk to BMC) and

Direct DCS (supplying in Dairy). At

least one DCS from each stratum

and 15 farmers from each DCS

was interviewed at random for

chosen parameters (milk

production, milk procurement,

feed and fodder, milk price, CMP

procedures and so on). The same

DCS were studied for gathering

information on milk procurement

procedures and quality

administration. Structured and

pre-tested questionnaire were

administered to elicit information

at different levels (Milk

Union/DCS) besides Focus Group

Discussion and personal

interviews of farmers in villages.

The data generated has been

analyzed to make informed

judgments and draw conclusions.

The details of sample size are

presented in table 1.

Table 1.1 Sample DCS and

households - Milk Production and

Disposal Survey

Sl. No. District DCS

Studied Households Surveyed

1 Palakkad 6 305 2 Malappuram 3 300 3 Kozhikode 4 300 4 Wayanad 3 299 5 Kannur 6 300 6 Kasaragod 6 300 Total 28 1804

In addition to the milk production

survey an independent consumer

survey has been carried out to

understand milk consumption in

17

Introduction

18

all the six districts. The district

has been stratified in to costal,

midland and high land and further

sub stratified as urban and rural

based on the revenue classification

(Municipality as urban and

Panchayat as rural). At least one

village each has been randomly

selected from among the urban

and rural villages and fifty house

holds studied to understand the

milk and milk powder consumed.

The sample size for the consumer

study can be found from table 1.2.

The data has been analyzed and

studied to under stand the milk

production and disposal pattern

in villages, and household

consumption of milk in rural and

urban areas. The secondary data

on each component has been

collected from several sources -

available/ published sources

including the reports, records and

MIS of Milk Union, reports from

ISS of AHD, and Economic Review

published by the State Planning

Board, Government of Kerala.

Also, directed questionnaire were

developed to gather information on

qualitative dimensions – milk

collection procedure, quality

testing, milk price payment,

quality of input delivery system,

etc. Personal interviews and

discussion with field staff, staff

members of DCS, executives of the

Milk Union yielded enormous

volume of information on systems

and procedures followed in the

Field as well as in the Dairy. The

market information was gathered

through interviewing retail dealers

Table 1.2 Sample DCS and Households - Milk Consumption Survey

Rural Urban Total Sl. No. District

Villages Houses Villages Houses Villages Houses 1 Palakkad 2 100 4 200 6 300 2 Malappuram 2 100 4 200 6 300

3 Kozhikode 3 148 3 150 6 298

4 Wayanad 5 250 1 55 6 305 5 Kannur 3 150 3 150 6 300 6 Kasaragod 4 200 2 100 6 300 Total 19 948 17 855 36 1803

Introduction

and customers. The information

gained from the market and

consumption survey has been

extrapolated to deduce the market

size, market share and supply

demand position.

The primary and secondary

data collected and interactions

with officials/farmers/consumers

formed the basis for developing

this report.

1.8 Organization of the Report The report is organized in seven

Chapters. The first chapter deals

on the contents of NPDD, the

context of the study and method.

The chapters two to seven deals on

milk processing, marketing,

procurement, cattle sheds and

farm mechanization, cattle

induction, milk testing lab, facility

for clean milk production in

villages, technical input services,

application of information

technology in dairy business,

training and working capital for

Milk Union in each district. The

chapters are district wise and an

executive summary in the

beginning provides a quick

overview of the programs

suggested.

19

2. PALAKKAD DISTRICT

Contents

Executive Summary ..........................................................................13

2.1 General Features .........................................................................17

2.2 Trend in Cattle Population ...........................................................19

2.3 Trend in Milk Production .............................................................19

2.4 Milk Chilling ...............................................................................20

2.5 Milk Processing ...........................................................................21

2.6 Milk Marketing ............................................................................29

2.7 Milk Procurement ........................................................................38

2.8 Cattle Shed and Farm Machineries ..............................................45

2.9 Cattle Induction ..........................................................................47

2.10 Establishment of Laboratories ...................................................47

2.11 Clean Milk Production ...............................................................48

2.12 Technical Input Services (TIS) ....................................................49

2.13 Information and Communication Technology Networking ..........51

2.14 Manpower Development.............................................................52

2.15 Working Capital – Palakkad District ..........................................55

Introduction

Palakkad District

Palakkad District

12

Introduction

13

Executive Summary

The Palakkad district is one of the

frontline dairy districts in Kerala.

Livestock farming is germane to

the vast majority of the farmers in

the district. The official statistics,

however, show that the cattle

sector, both in numbers and

output, suffered setbacks since

late nineties. The cattle numbers

declined by 44 per cent from 1996

to 2012. On the contrary the in-

milk cows by increased by 44 per

cent during the same period.

Concurrent with the increase of

cows in milk, the annual milk

production has shown an increase

from 242 thousand MT (2001-02)

to 384 MT (2012-13).

The MRCMPU has a processing

dairy at Palakkad. The installed

capacity of the dairy is 1.0 LLPD.

During 2013-14, the dairy

processed on an average 1.79

LLPD, 79 per cent above the

installed capacity. At the peak

procurement level during the year,

the dairy’s capacity utilization was

200 per cent. Hence there is

urgency in expanding the

processing capacity of Palakkad

dairy. Also the product

manufacturing line requires

certain additions on account of the

export regulations. In addition, the

dairy requires certain critical

equipments, some as standby and

some as replacement. The

suggested additions and

replacements are estimated to cost

Rs 126.00 lakh.

The market survey shows that the

supply-demand gap of milk in

Palakkad district is 80,600 LPD.

The market share of MRCMPU in

the liquid milk segment in

Palakkad district is 47 per cent,

the highest among all the districts

in Malabar. The Milk Union is

facing fierce competition from the

competitors, mainly from outside

state and also from within the

district to a smaller level. But the

market analysis reveals that this is

not a restricting factor to

command a better market share.

The inadequate market

infrastructure is one of the

reasons for the low market share.

The dairy’s business plan may also

require some revision. Hence an

Palakkad District

aggressive marketing strategy

supported by adequate

infrastructure is required. To

begin with, new milk parlors and

Shoppe are suggested to be opened

in prominent public places. Wide

publicity through print and visual

media is also suggested. Periodic

market surveys and R&D on

consumer likes and preferences

(example attractive packing for

flavored milk, ice cream, peda,

etc.) are also suggested. The

estimated cost on market

promotion works out to Rs 382.20

lakh.

The MRCMPU has built up an

extensive net work of DCSs and

BMCs for milk procurement from

farmers. All the DCSs have

reasonably good milk testing

facilities. All the BMC DCSs have

facility for MBRT estimation. The

field level milk testing, however,

requires further refinement. The

major constraints identified in the

expansion of milk procurement

and clean milk production are lack

of convenient buildings for DCSs,

absence of good quality water

supply facilities with some DCSs

and lack of incentives for clean

milk production and support for

cattle feed transport. The support

suggested for procurement

activities in Palakkad district is

expected to cost Rs 500.35 lakh.

The lack of good cattle sheds and

farm machineries are identified as

the major constraints in dairy

production in Palakkad district.

Financial support for

strengthening of old cattle

sheds/construction of new ones

and supply of farm machineries

and equipments are proposed at a

total cost of Rs 82.50 lakh.

In order to promote cattle keeping

among the below poverty line (BPL)

and the SC/ ST families, a cattle

induction program is suggested in

Palakkad district. The NABARD

norms shall be followed for

administering the subsidies. The

overall support for 240 animals is

estimated to be Rs 92.55 lakh.

It is suggested to establish a

central milk testing lab at

Kozhikode dairy by pooling the

funds from all the districts. This

will eliminate the need for

replication of the same facilities

14

Palakkad District

and expenses in all the districts.

Some additional equipments and

furniture are also required in

Palakkad dairy lab. All these

together are estimated to cost Rs

32.00 lakh.

The other farmer beneficiary

programs suggested are

distribution of stainless steel

utensils, milking machines, etc. at

a cost of Rs 17.49 lakh.

The technical input services

include support for animal

breeding, animal health care and

prophylaxis, fodder development

and other associated activities for

the benefit of participating farmer

members. The activities suggested

except those being attended by the

line departments will cost Rs

48.20 lakh.

The Palakkad district needs to

network with the various units and

the DCSs under MRCMPU for

effective information sharing and

communication. The suggested

system is a client server

architecture network with six

centers, one in each district

(Palakkad, Malappuram, Kozhikode,

Wayanad, Kannur, Kasaragod) and

a central server system linking all

these six centers. The data and

information will be made available

to all the districts and DCSs. The

estimated cost of these in

Palakkad district is Rs 149.35

lakh.

The HRD through training and

skill development is a routine

activity of MRCMPU in Palakkad

district. Several programs were

running for the past few years. It is

suggested to scale up some of

these programs. The suggested

programs would cost Rs 57.45

lakh.

The business plan of MRCMPU

suggests substantial increase in

milk procurement and sale in

Palakkad district. The milk

prices are to be paid to the farmers

regularly which alone cost Rs 1261

lakh or more every 21 days. In

addition, keeping a buffer stock of

raw and finished goods is essential

to safeguard an uninterrupted

business. This, as also several

other requirements force the Milk

Union to borrow money from the

open market which causes extra

15

Palakkad District

16

burden to the Union and the

farmers. Hence it is suggested that

an amount of Rs 110 lakh shall

be paid to the milk Union as a

one-time assistance for Working

Capital.

The suggested programs for

Palakkad shall be summed up as

follows.

Component

Amount (Rs in Lakh)

Milk processing and packaging 126.00 Milk marketing 382.20 Milk procurement 500.35 Cattle sheds and farm machineries 82.50 Cattle induction 92.55 Central testing laboratory 32.00 CMP kits and milking machines to farmers 17.49 Technical inputs services 48.20 Information and communication technology 149.35 Human resource development 57.45 Working capital 110.00 Total 1598.09

Palakkad District

2.1 General Features Palakkad district measuring 4480

sq.km. belongs to the Malabar

region. According to the 2011

Census, the district population is

28.10 lakh and population density

627/sq.km. which is far below the

state average of 859/sq.km.

Palakkad is surrounded on the

northwest by Malappuram district

on the southwest by Thrissur

district and on the east

by Coimbatore district of Tamil

Nadu. The district is sub divided

into 5 Taluks and 166 revenue

Villages. The three-tier LSG

include one District Panchayat,

thirteen Block Panchayats and

ninety three Grama Panchayats.

The climate is hot and humid, the

hottest months being March to

June. The South West Monsoon

from June to September provides

the bulk of the rain. The average

recorded annual rainfall is 2111

mm (Wikipedia).

Agriculture is the predominant

income and employment provider

in Palakkad. The vast majority of

the farmers belong to the marginal

group and the average land

holding size is 0.39 ha/household.

The principal farming system is

mixed crop livestock farming. The

district contributes to the bulk of

rice production (40 per cent of the

State’s production) in the State.

The much needed roughage, paddy

straw, for ruminant nutrition and

milk production is a byproduct of

paddy production. Like in the rest

of the State, bovine is the

dominant species of livestock.

Nearly two decades ago the district

had the highest draught animal

population in the State. The

draught animal population started

declining towards the later part of

the last century and the cattle

composition changed in favor of

cross bred dairy cattle. Milk

production is extremely livelihood

intensive to almost all sections of

farming community, more so in

the case of marginal, sub marginal

and land less groups.

Livestock development and milk

marketing in the district are

looked after by a number of

institutions. The AHD is in charge

of the health care and breeding

services. The important

institutions under the Department

17

Palakkad District

include one district office, one

District Veterinary Center, 4

Veterinary Poly Clinics, 15

Veterinary Hospitals, 78

Veterinary Dispensaries, 3 Mobile

Farm Aid Units, one Mobile

Veterinary Dispensary and 72

ICDP Sub Centers for AI in cattle.

The Department of Dairy

Development is in charge of the

livestock extension services and

administration of milk

cooperatives. The Department has

one district office, 13 Dairy

Extension Service Centers, one

quality control center and one

Dairy Training Center. The

MRCMPU has one milk processing

dairy and two milk chilling centers

apart from the two Procurement &

Input services Units – one each at

Palakkad and Pattambi – and one

straw based cattle feed unit. The

district houses the largest cattle

feed plant under Milma at

Malampuzha, 8 km away from

Palakkad town. The Kerala

Livestock Development Board

responsible for the frozen semen

production and genetic

improvement of dairy cattle in the

state has one bull station, one

training center and one fodder

seed testing lab at Dhoni in

Palakkad district.

Fig 2.1 Trend in Cattle population Palakkad District ( source Cattle census Reports DAH GOK)

0

50000

100000

150000

200000

250000

300000

350000

Num

bers

Total Cattle 303935 272981 263763 215095 169208

Cows in milk 82378 98034 84787 73986 118900

Buffalo in milk 10646 2198 1506 1379 5400

1996 2000 2003 2007 2012

18

Palakkad District

2.2 Trends in Cattle

Population

Palakkad district has the highest

number of cattle, 12 per cent of

the total in the State. Cattle make

significant contribution to the

rural economy in the district. The

official statistics, however, shows

that the cattle sector registered

severe setbacks both in numbers

and outputs during the last one

decade. The total cattle numbers

went down by 44 per cent.

Surprisingly, the latest cattle

census (2012) shows that the

proportion of cows in milk in the

total cattle has increased from 27

per cent to 70 per cent during the

period. The only possible

explanation is that the there is

tremendous sex bias in favor of

dairy cows than bull/bullocks and

that the milk cows are purchased

and not home bred and reared

thereby eliminating the dry cows

and young ones (See fig. 2.1).

Buffalo in the district was on the

verge of extinction, declined by 90

per cent from 1996 to 2007 and

showed a marginal gain thereafter.

The reasons for the drastic fall in

cattle and buffalo numbers are

little known. However, the vertical

drop in productive animals did not

impact the milk production in the

district.

2.3 Trends in Milk

Production

The annual milk production (cattle

and buffalo) increased from 2.43

lakh MT during 2001-02 to 3.84

lakh MT during 2012-13 (See fig.

2.2). The increase is phenomenal.

However, the spurt in milk

production from 2008-09 to 2012-

13 (74%) in less than four years is

incredible. The only possible

explanation is the vertical increase

in number of cows in milk. The

daily milk yield works out to 8.85

LPD per cow which indeed is

realistic. The accuracy of ISS

production estimates is debatable.

However, in the absence of any

other reliable estimate, the annual

milk production from bovines in

Palakkad District is taken as 3.84

lakh MT and daily production as

1083.04 MT. The pertinent

question is does the spiraling milk

production show a corresponding

trend in milk procurement.

19

Palakkad District

20

or product

preference

ilk holidays on bandh

uring the

next two to three years.

Fig 2.2 Trend in Bovine Milk Production Palakkad District (source ISS,DAH Kerala)

228.

98

216.

19

205.

23

207.

67

220.

75

384.

36

242.

49

0

50

100

150

200

250

300

350

400

450

2001-02 2002-03 2003-04 2004-05 2005-06 2008-09 2012-13

Milk

'000

MT

2.4 Milk Chilling low risk

better microbial quality

better milk fThe milk chilling facilities are the

BMCs installed in DCS and the

two Milk chilling plants - one at

Attappadi and the other at

Pattambi. The position of milk

chilling in Palakkad district until

March 2014 is shown in table 2.1.

manufacturing

higher consumer

(flavor and taste)

no m

days

Since the district has unused

chilling capacity among BMCs

additional BMCs are not proposed

in Palakkad district d

The village based decentralized

chilling in BMCs is preferred over

the centralized chilling because:

less expensive

Palakkad District

Table 2.1 Chilling Facility in Palakkad District during March 2014

Sl. No. Description Quantity

1 No. of BMCs commissioned up to March 2014 37 2 No. of DCS in which BMCs are positioned (BMC DCS) 33 3 No. of cluster DCS attached to BMCs 82 4 Total installed capacity of BMCs ltr. (TLPD) 150 5 Av. milk collected through BMC 2013-14 LPD 93000 6 % capacity utilization 62 7 Av. MBRT of BMC collected milk (minutes) 185 8 Av. SPC of BMC collected milk CFU/ml (lakh) 36 9 Av. Coliforms of BMC collected milk CFU/ml 3 10 No. of milk chilling plants 2 11 Installed capacity of MCP LPD 45000 12 Av. daily collection in MCPs LPD 46700 13 % capacity utilization 103 14 Av. MBRT from MCP collected milk NA 15 Av. SPC of MCP collected milk NA 16 Av. Coliforms of collected milk NA 17 No. of DCS supplying milk to MCP Attappadi NA

2.5 Milk Processing

2.5.1 Current Status

Palakkad is one of the frontline

dairy districts in the State. The

district is not only self-sufficient in

milk production but also has

surplus especially during the

‘Flush Period’ (June to September).

The Palakkad Dairy is the

exclusive station to process the

milk procured from the district.

This dairy is located at Kalleppully,

5 km away from Palakkad town.

The Dairy procures milk from

Palakkad district only while the

processed milk and milk products

are marketed in Palakkad as well

as in parts of Malappuram district.

The average daily procurement of

milk during 2013-14 was 1.79

LLPD of which nearly 78 per cent

is received as chilled milk (chilling

plants and BMC put together). The

remaining 22 per cent of non-

chilled milk is chilled in the Dairy

and stored.

21

Palakkad District

2.5.2 Milk Processing Capacity

and Capacity Utilization

The composite processing capacity

of Palakkad Dairy as decided by

the capacity of Pasteurizer,

Refrigeration Plant and Boiler

comes to one LLPD. As against

this, the Dairy processed an

average 79 per cent above the

processing capacity.

The month-wise procurement of

milk is shown as fig. 2.3. As is

evident from the figure,

procurement touched two lakh

LPD exceeding the handling

capacity almost 100 per cent

during Flush period – June to

August. During this period the

milk procurement in other

districts, Kozhikode and Kannur,

too peaks with little scope for

transferring the surplus milk.

Therefore, the Palakkad Dairy is

often compelled to make distress

sale or convert to SMP sustaining

heavy loss.

The dairy development activities

from government, state and

central, and Milk Union is

expected to further push up the

milk production and milk

procurement in the district.

Therefore, the procurement and

processing capacity of the dairy

calls for expansion.

22

Palakkad District

23

Fig2.3 Month wise Mlk Procured Palakkad Dairy 2013-14 (Source MRCMPU)

0

50000

100000

150000

200000

250000

April

MayJu

ne July

Augus

t

Septem

ber

Octobe

r

Novembe

r

Decembe

r

Janu

ary

Februa

ry

March

Milk

LPD

2.5.3 Milk Processing Infra-

structure – Palakkad Dairy

As mentioned above the process

capacity of Palakkad Dairy has

been enhanced from 9000 LPD to

the current level of one LLPD. This

was made possible because of the

financial support from GOI under

Process hall Palakkad Dairy

Palakkad District

Table 2.2 Amount Spent and Infrastructure Created under CSS in

Palakkad Dairy

Financial (Rs in Lakh) Sl.

No. Description IDDP Phase I & II

CMP Phase I & II

Physical Facility

1 Civil structure (RMRD, production block, cold store, etc.)

40.8 Nil Production block, general go-down

2 Processing equipments & machineries added

82.88 Nil Pasteurizer, Milk silos, boiler, refrigeration equipments, Homogeniser ETP, etc.

Total 123.68

the IDDP and SIQCMP schemes as

well as the investment made by

the MRCMPU from own resources.

The amount spent under the CSS

and the major infrastructure

created for Milk Processing in

Palakkad Dairy are shown in table

2.2.

The important equipments and

machineries available in Palakkad

Dairy are listed in table 2.3.

Table 2.3 Processing Equipments and Machineries in Palakkad Dairy

Sl. No. Name Specification Units

1 Milk Reception 1.1 Can roller conveyor 600 cans/hr 1 1.2 Can washer 600 cans/hr 0 1.3 Dump tank 2 Kl 1 1.4 Can scrubber (SS 304) 500 L 2 1.5 Can steaming block Single can 1 2 Processing/Storage Equipment

2.1 Milk chillers 20 KLPH 1 2.2 Separator 10 KLPH 0 2.3 Tri-purpose centrifuge 10 KLPH 2 2.4 Milk pump 10 KLPH 4 2.5 Un-insulated milk tank 5 KLPH 1 2.6 Horizontal milk storage tank 15 KLPH 3 2.7 Vertical milk storage tank 10 KLPH 1 2.8 Vertical milk storage tank 15KLPH

24

Palakkad District

Sl. No. Name Specification Units

2.9 CIP system- Double circuit 20 KLPH 1 2.10 Pasteurizer 10 KLPH 2 2.11 Milk silo 60 KL 2

2.12 Pouch filling machine DHG mechanical 5000 PPH 8

2.13 Pouch filling machine auto SH mechanical 2500 PPH 1

2.14 Milk pumps 10000 LPH 4 2.15 Cold store conveyor 1200 cr/hr 1

2.16 Date coding device for pouch filling machines 60 IMP/Mnt 10

3 Fat Handling 3.1 Sour milk separator 500 LPH 1 3.2 Cream storage tank 2000 LTS 3 3.3 Cream pump 5000 LPH 1 3.4 Ghee boiler 2000 LTS 2 3.5 Ghee settling tank 3000 LTS 3 3.6 Ghee storage tank 3000 LTS 3 3.7 Ghee pump 3000 LPH 1 3.8 Ghee clarifier 2000 LPH 1 3.9 Emulsifying tank 5000 LTS 3.10 Homogenizer 10 KLPH 1

4 Service Equipment 4.1 Refrigeration compressors 30 TR 3 4.2 Chilled water pump 90 KLPH 2 4.3 Chilled water agitator 5 HP 3

4.4 Air handling unit for cold storage/ deep freezer (make/model/cap) 3 TR 4

5 Steam Raising Plant 5.1 Boiler (oil/coal) 1 MT 1 5.2 Water softening plant 2 KLPH 1 6 Compressed Air System

6.1 Air compressors 50 CFM 2 7 Industrial Electrical

7.1 DG set 250 KVA 1 7.2 Transformer 315 KVA 1 8 Water Supply System

8.1 Water storage tank 50 KL 1

25

Palakkad District

The equipments and accessories in

Palakkad are inadequate to carry

on the present level of operations.

Some of them are also due for

replacement owing to the usual

wear and tear while some others

are to be scaled up considering the

rising procurement and market

demand.

2.5.4 Product Manufacturing

Palakkad Dairy manufactures

three products namely Curd, Ghee

and Sambharam (Butter Milk).

a. Curd Production

During the year 2013-14 Palakkad

dairy produced and marketed on

an average 7056 Kg of Curd. The

Palakkad Dairy follows the

conventional/standard procedure

for curd production. The

infrastructure available are Curd

Pasteurizer, Fill pack machine and

incubation facility. The Milk Union

is planning only a nominal

expansion in the next three years

and hence minimum additional

facilities are requested.

b. Ghee Production

Palakkad has immense potential to

produce and market ghee. Ghee

market, however, in this part of

the state is fiercely competitive due

to its proximity to the state of

Tamil Nadu. Nevertheless,

Palakkad dairy produced 45,659

Kg of ghee per month during 2013-

14. The infrastructure available is

26

Palakkad District

27

shown in table 2.4. The facility for

ghee production is scale

inadequate to meet the current

and future level of production

which needs to be scaled up in the

immediate future.

Table 2.4 Infrastructure for Ghee

Production Palakkad Dairy

Name Specification Units

Cream pump 5000 LPH 1

Ghee boiler 2000 LTR 2 Ghee settling tank 3000 LTR 3 Ghee storage tank 3000 LTR 3

Ghee pump 3000 LPH 1

Ghee clarifier 2000 LPH 1

2.5.5 Key Issues and

Recommendations

The installed capacity of the dairy

is scale inadequate for the current

scale of operation. It is not

difficult to foresee that the demand

for milk, curd, ghee and

Sambharam will increase in the

near future and the Union needs

to strengthen the curd and ghee

production apart from the facilities

for milk processing to enable the

dairy to generate extra income on

minimal investment. Therefore, it

is recommended that the following

production facilities (Table 2.5) be

strengthened/added on priority.

a. Additional Processing

Capacity for Palakkad Dairy

The additional processing capacity

for Palakkad Dairy is examined on

the basis of:

growth in milk procurement

peak period procurement

demand supply gap in the

market

potential for market

expansion

available infrastructure for

processing

The past experience suggests that

the milk procurement in Palakkad

will grow at the rate of 8 per cent

per annum and peaking three to

four months at the rate of 11 per

cent. Hence, the current

procurement, 1.79 LLPD, is

expected to reach 2.25 lakh in the

next three years. And there is little

scope to divert the milk until the

newly planned Malappuram dairy

is commissioned. Moreover, the

supply demand position in

Palakkad district is in favour of

market expansion and heightened

Palakkad District

Table 2.5 Additional Facilities Suggested for Palakkad Dairy under NPDD

Sl. No. Equipment & Machineries Specification

No. of

Units Unit

Cost (Rs) Total

Cost (Rs in Lakh)

1 Milk pump 10 KLPH 4 50000 2.00 2 SS pipes and fittings Lot 1 500000 5.00 3 Milk silo 60 KL 1 2500000 25.00 4 Cream storage tanks 3 KL 1 800000 8.00 5 Cream pumps 5 KL 1 300000 3.00 6 Ghee boiler 2 KL 1 500000 5.00 7 Ghee storage tank 3 KL 1 700000 7.00 8 Ghee clarifier 2 KLPH 1 1500000 15.00 9 Pouch filling machines 5000 PPH 1 1000000 10.00 10 Date coding devices for pouch

filling machines 60 imp/mnt 4 150000 6.00

11 PHE condenser and cooling tower 120 TR 1 4000000 40.00 Total 126.00

coverage. Considering the above

requirement, it is suggested to

enhance the processing capacity to

two LLPD in a phased manner.

b. Strengthening Ghee

Production

The Palakkad dairy will have

surplus fat and the best choice is

to convert the surplus fat into

ghee. The ghee market is gradually

but steadily increasing and the

Milk Union plans to export more

ghee to the neighbouring

countries. The Following

equipments (Table 2.5) are

suggested to be inducted to the

production line to expand ghee

production from Palakkad from

2014-15 onwards.

c. Milk Silo

The milk procurement in Palakkad

is showing an increasing trend and

has crossed 2 lakh LPD. The sale

has also crossed 1 lakh LPD. To

handle the increasing volume of

milk one more silo is to be

purchased.

d. Cream Storage Tank, Cream

Pump, Ghee Boiler, Ghee

Storage Tank, Ghee Clarifier

Most of the surplus milk in the

Union is diverted from Palakkad

Dairy to other unions/powder

plants in the form of skim milk.

28

Palakkad District

Hence the fat handling in the dairy

is very high compared to other

dairies. So, the above equipments

are to be purchased in view of the

increasing milk procurement in

the union.

e. PHE Condenser

We have already increased the

capacity of ammonia compressors

in the refrigeration plant. Now the

capacity of condensers is to be

increased to match with

compressors so as to utilise the

increased capacity for which Plate

Heat Exchanger with cooling tower

is to be installed.

Since Palakkad dairy reports

having surplus milk throughout

the year and especially during the

rainy season the Dairy sends skim

milk to other unions or for

conversion sustaining loss. To save

the situation and to generate extra

profit for milk producers, the Dairy

plans to export ghee made from

fresh cream. Traceability from

procurement, production and

despatch is a must in the case of

export consignments. Mixing with

normal batches for local supply is

not allowed. Hence to equip the

dairy to handle the surplus fat in a

manner to facilitate the export

approval separate equipment and

fittings as shown in table 2.5 are

absolutely essential.

2.6 Milk Marketing

2.6.1 Introduction

Milk marketing is one of the major

functions of MRCMPU. While

Palakkad has marketable surplus

of milk, the other four districts

under the Union are perpetually

deficit in milk. The Union therefore

is now comfortably placed at the

marketing front. This chapter

provides an overview of the

marketing organization of

MRCMPU in Palakkad district,

infrastructure available, sales

achievements of liquid milk and

major milk products during 2013-

14, and identifies the key issues

and problems and makes

recommendations to address

them.

2.6.2 Organization of Marketing

The marketing wing under the

Palakkad Dairy organizes the

marketing functions. The

marketing area of the Dairy

29

Palakkad District

30

includes the entire Palakkad and

part of Malappuram districts,

which is divided into two zones,

Palakkad and Pattambi. Each zone

is under a Marketing Officer. Yet

another Marketing Officer looks

after the market development

function. Four field staff look after

the field level activities.

The milk and milk products

manufactured in Palakkad and

Kozhikode Product Dairies are

marketed through a well-defined

supply chain and clearly defined

routes for the distribution of milk

and milk products to the

consumers.

2.6.3 Supply Chain

The Union has more or less similar

supply chain in all the districts.

The milk and the milk products

reach the consumers from the

processing units through the

retailers designated as dealers.

The liquid milk is directly supplied

from the Dairy to the dealers and

the products through the

wholesalers. There were 924 retail

outlets and 29 wholesalers in

Palakkad at the close of March

2014. Also, a small portion of the

products is directly supplied to the

dealers on cash and carry basis. A

well developed intending and

distribution system exists. The

liquid milk and the products are

sold to the dealers on advance

payment. Credit facilities are

extended to the dealers on a

limited scale. The milk and milk

products sold during 2013-14 is

shown in table 2.6.

Table 2.6 Milk and Milk Products Sale Palakkad District

Quantity Sl. No. Milk/Product

2009-10* 2013-14 1 Liquid milk (LPD) 71832 90300 2 Curd (Liter/day) 6270 7056 3 Ghee (Kg/month) 27318 31725 4 Ice cream (Liter/month) 2429 9497 5 Butter milk (200 ml pkts./day) 4692 7911 6 Milk peda (Kg/month) 1505 2761 7 Sip up (Pkts./month) 60000 41450 8 Palada (Kg/month) 122 395 9 Milma plus (Bottles/month) 2613 9591

*Previous benchmark

Palakkad District

As is evident from table 2.6, there

is substantial growth in the sale of

liquid milk and milk products. But

Palakkad is not among the

strongholds of MRCMPU for selling

milk and milk products. It has

only the fourth position for milk

sales and sales of major products

like ghee and curd.

2.6.4 Market Size and Market

Share

Market size is the measurement of

the total volume of a given market.

Market size calculated on a

standard practice, competitive

sales approach (bottom up

approach), shows that the market

for liquid milk in 2013-14 is 1.12

LLPD (Milma plus the

competitors). This indeed is a very

conservative figure and pertains

mostly to the urban market. Added

to this is the rural consumption.

Yet another way of arriving at the

market size is by understanding

the end user purchases as shown

in table 2.7.

The MRCMPU marketed milk at

the rate of 90,300 LPD amounting

to just 47 per cent of the market

size which indeed is low. Hence

support under the NPDD should

be geared up to improve the

market coverage in Palakkad

district.

Table 2.7 Market Size for Milk and Market Share in Palakkad District 2013-14

Sl. No. Description Rural Urban Total

1 Population (census 2011) Numbers 2133124 676810 2809934 2 Cattle holdings % (HH survey) 30 3 Potential consumers (1* 0.7 rural) 1493187 676810 2169997 4 Actual consumer % (HH survey) 50 95 5 Actual consumers (3*4/100) Numbers 746593 642970 1389563 6 Per capita cons. ml (HH survey) 56 195 7 Consumer demand LPD 41809 125379 167188 8 Inst. demand LPD 25076 9 Total demand LPD 41809 150455 192264 10 Milma supply LPD 90300 11 Market share % (total 10/9*100) 47 12 Supply demand gap LPD (Total

demand minus Milma + competitors) 80264

31

Palakkad District

2.6.5 Milk Marketing

Infrastructure – Current

Status

Table 2.8 shows the various

support equipment and facilities

available to the marketing wing in

Palakkad district.

The wide spread marketing

network created by MRCMPU is

delivering quality service to the

Table 2.8 Marketing Facilities Available under MRCMPU in Palakkad

District March 2014

Sl. No. Component Quantity

1 Wholesalers for milk (No.) Nil 2 Wholesalers for product (No.) 29 3 Distributors for milk (No.) 0 4 Distributors for milk products (No.) 0 5 Retail outlets milk and products (No.) 924 6 Milk parlors (No.) 4 7 Milma shoppe (No.) 2 8 Marketing depots/Hub (Mobile cold storage) (No.) 1 9 PUF vehicle container (5 MT) (No.) 1 10 PUF vehicle container (3 MT) (No.) 25 11 PUF vehicle container (1.5 MT) (No.) 1 12 % milk routes using PUF vehicles for milk

distribution to retail outlets 100 13 PUF box 50 Liter (No.) 299 14 PUF box 100 Liter (No.) 192 15 PUF box 150 Liter (No.) 90 16 PUF box 25 Liter (No.) 28 17 PUF box 460 Liter (No.) 8 18 Shipper box for ice-cream 27 19 200 liter freezers for dealers (No.) 80 20 200 liter freezers glass top for dealers (No.) 10 21 120 LTR freezer (No.) 40 22 500 Liter freezer for dairy (No.) 33 23 Deep freezer 320 (Liter) (No.) 54 24 Deep freezer 320 (Liter) Glass top (No.) 18 25 Visi-cooler 220 Liter (No.) 26 26 Visi-cooler 320 Liter (No.) 16

32

Palakkad District

consumers. The market survey has

demonstrated that the market

share of MRCMPU for liquid milk

is close to 50 per cent only. The

demand for milk products is also

vertically expanding. In order to

command a higher market share

and to facilitate the position of

market leader in dairy business

the MRCMPU need to expand its

marketing functions in Palakkad

district. But milk and milk

product sales are fiercely

competitive and to keep going

requires aggressive marketing

strategies, continuous upgrading

of facilities and promotional

activities.


Recommendations

Palakkad district is under

perpetual threat of invasion of

cheap milk from Tamil Nadu.

Whenever the consumer price

equilibrium changes, the inflow of

milk from Tamil Nadu increases.

The institutional segment is largely

within the hands of private traders

from Tamil Nadu. At the same time

milk production is livelihood

intensive to a vast majority of

marginal and sub marginal

farmers in Palakkad district. The

MRCMPU has to tap the

unexploited market potential

particularly the ever expanding

semi urban and rural market.

Hence, MRCMPU has to tone up

their marketing activities. The

crux of the issues is that the

marketing infrastructure in

MRCMPU is inadequate to meet

the growing demand and to

counter their competitors in

Palakkad district for which few

suggestions are placed as table

2.9.

The list of activities and supports

are listed in table 2.9. The list is

more or less self explanatory. Few

items deserving special mention

are explained below.

a. Milk Parlors

The milk parlors will be positioned

in strategic positions to attract

more consumers to Milma

products. Apart from selling the

Milma products they also act as a

media to improve the visibility of

milk and milk products. The

Milma products will be served in a

customer friendly environment.

33

Palakkad District

Table 2.9 List of Activities and Equipments Suggested for Market

Development in Palakkad District 2014-15 to 2016-17

1 Depot/Parlor No. of Units

Unit Cost (Rs)

Total Cost (Rs

Lakh) 1.1 Milk parlor civil 9 50000 4.5

1.2 Milk parlor equipments 9 10000 0.9

1.3 Shoppe support 3 500000 15

1.4 Marketing depot/HUB 0 1200000 0

1.5 Space in super market 15 20000 3

1.6 Decorated mobile product vehicle 3 50000 1.5 2 Marketing Infrastructure for Preserving/

Maintaining Quality of Milk 2.1 PUF vehicle container (5 MT) 0 460000 0

2.2 PUF vehicle container (3 MT) 9 250000 22.5

2.3 PUF box 50 ltr. 60 2000 14

2.4 Shipper box for ice cream 90 6000 5.4

2.5 200 liter freezers for dealers 90 13000 11.7

2.6 200 liter freezers glass top for dealers 60 17000 10.2

2.7 120 LTR freezer 90 11000 9.9

2.8 500 ltr. freezer for dairy 10 23000 2.3

2.9 Deep freezer 320 ltr. 90 17000 15.3

2.10 Deep freezer 320 ltr. (Glass top) 90 20000 18

2.11 Visi-cooler 220 ltr. 120 20000 24

2.12 Visi-cooler 320 ltr. 90 30000 27.00

3 Awareness Programme for Consumers 3.1 Consumer awareness programme LS 134.00

3.2 Canopy with eutectic freezer subsidy 17 100000 17

3.3 Hoarding/traffic circle/wall painting 18 100000 18

3.4 Support to milk stockists (RD) 14 200000 28

Total 382.2

All the parlors started during

Phase I, are functioning well and

they provide the necessary

impetus for higher sales of Milma

milk and milk products. Additional

parlors are suggested in new areas

to attract more consumers.

Therefore nine more parlors are

recommended in the district.

34

Palakkad District

b. Milma Shoppe

Improving the visibility of Milma is

important for its business and

more importantly crucial to

sustain milk production and

livelihood support to the resource

poor milk producers operating

under hard conditions. Keeping

this in mind MRCMPU started

‘Milma Shoppe’ in Palakkad

district. Shoppes are brand shops

of Milma with all Milma products

available at the outlet and it works

round the clock. It has won the

appreciation of one and all and is

found to be an effective tool to

publicize its products. It is

suggested that similar shops shall

be started in three more towns

during the project period.

c. PUF Bodies

Among the various marketing

infrastructure provided,

introduction of PUF insulated

vehicles for milk distribution and

PUF boxes in the retail outlets are

worth mentioning. With the

addition of the two PUF containers

under the IDDP scheme during

last year, the entire milk transport

from Palakkad dairy has been

switched over to PUF insulated

vehicles. However, additional

supply routes are to be operated in

the coming years and more PUF

35

Palakkad District

bodies are required. Also, few of

the PUF bodies in use are to be

replaced. Hence, nine more PUF

bodies shall be added, it is

ld chain

maintenance. The estimated cost

ent.

Hence, few of them are suggested

n. suggested.

d. PUF Boxes/Visi-Coolers

The freezers are uneconomical for

small volume milk storage. The

PUF boxes of varying sizes, 50-150

liter provided at 50 per cent

subsidy in the retail outlets

coupled with the PUF bodies

ensure perfect end-to-end cold

chain, namely from the dairy to

the consumer. Our field exposure

visits revealed that the retailers

wholeheartedly welcome the PUF

boxes because they were accepted

as viable alternatives for the

energy consuming freezers. They

occupy less space, are easily

movable and easy to clean. The

boxes retain low temperatures for

about 3-4 hours during which the

entire milk generally get sold out.

It is proposed that all retailers

shall be provided with new or

additional PUF boxes to achieve

100 per cent co

comes to Rs 15.0 lakh.

Visi-coolers are excellent

equipment to keep products like

flavored milk in cool environm

as part of market promotio

e. Ice Cream Promotion

MRCMPU is selling products like

ghee, curd, butter milk, Milk Peda,

Palada Mix, Flavored milk and ice

cream. The share of milk products

in the total turnover of the Union

is around 24 per cent and is

crucial in its financial security and

liquidity. Among all the products,

ice cream is the most promising

one. Unfortunately, Milma now

has only less than 5 per cent

market share in the ice cream

segment. The major hurdle

identified against the market

expansion is the absence of user

friendly and energy saving freezers

at retail points. During IDDP

Phase I, SIQCMP the Milk Union

invested in freezers at the level of

retailers and as a result the sales

of ice cream have increased from

2400 Liters per month during

2010-11 to 9500 liter per month

during 2013-14. A three pronged

market intervention – appoint

more whole sale dealers, equip all

36

Palakkad District

retail points with suitable size

freezers and wide publicity

through TV channels is suggested.

In addition, 17 canopy fitted

vehicles are recommended for

special sales in tourist spots and

estimated cost for the re-

hree years will be Rs 28.0

lakh.

g. Awareness

prominent on road places.

f. Redistribution of Milk

As pointed out in the forgoing

sections the milk distribution in

rural and interiors of urban and

semi urban areas requires to be

increased. Proper and timely reach

is the issue. Because of narrow

roads the 3 MT vehicles often

cannot reach the sale points. In

such situations the milk is

transported in large truck and

stored with a milk dealer (retail

outlet). The milk from the dealer is

transported to interior and difficult

to reach places using smaller

vehicles (Ape type) thereby

ensuring higher penetration and

wider reach for the milk. The other

advantages include timely supply

to the retail outlets and

elimination of milk outs during

early mornings and late evenings.

The dealer is compensated for the

extra effort and expense. The

distribution from 14 points for the

next t

Consumer

Programs

Consumer awareness camps are

being held and dairy visits

organized to explain the chain of

activities taken up by the Dairy,

starting from milk reception to

sales through the retail outlets.

The consumers also get an

opportunity to gather firsthand

information on quality assurance

followed at various stages of milk

reception, processing and

marketing. Advertisement boards

and banners are exhibited in busy

places for publicity on the milk

and milk products. The awareness

activities are scale inadequate and

are not reaching a large segment of

general public particularly the

rural segment. Considering the

ever expanding rural segment a

better focused and well directed

publicity and awareness campaign

is to be launched. Apart from the

food security and nutritional

importance of milk production and

consumption the importance of

37

Palakkad District

38

ree years will be Rs 134.0

lakh.

Fig. 2.4 Organization of Milk Procurement, Palakkad District

Key words: BMC DCS – Dairy Cooperative Society having Bulk Milk Cooler;

2.7 Milk Procurement milk as an instrument of livelihood

support for thousands of poor milk

producers and as a safe food for

millions of consumers needs to be

highlighted to attract more

consumes in to the Milma fold.

Hence, it is suggested that

consumer awareness programs

should cross the usual styles and

enter into newer frontiers. The

estimated cost for awareness

camps and publicity during the

next th

2.7.1 Organization of Milk

Procurement – Palakkad

District

Milk procurement is one of the key

functions of MRCMPU. MRCMPU

has established a network of village

level DCSs to procure milk from

dairy farmers in Palakkad district.

Milk procurement activities in

Palakkad are coordinated from two

places, the P&I Unit in Palakkad

dairy and Pattambi. The

organization of milk procurement is

illustrated in fig. 2.4.

Milk Producers

Cluster DCS: DCS attached to BMC for milk supply; PGT: Palakkad

Non BMC DCS BMC DCS Milk Chilling

Cluster Direct Plants (2) DCS DCS

PGT DAIRY

Palakkad District

The DCSs procure surplus milk

from framers and deliver it to the

Palakkad Dairy or to either of the

two Milk Chilling Plants. Milk

from BMC DCSs/MCPs is chilled

(4 0C) and delivered while the milk

from other DCS (Direct DCS) is

supplied at room temperature. The

Dairy in turn processes and

markets the milk in towns and

other urban agglomerations within

and outside the District. The whole

chain of activities - procurement,

processing and marketing - is well

orchestrated and well executed.

2.7.2 Profile of DCS in Palakkad

District

A majority of the DCSs in

Palakkad district are Anand

Pattern Cooperative Societies

(APCOS). They are producer

cooperatives managed by

democratically elected Board of

Directors. At the close of March

2014 Palakkad district had 305

functional APCOS. In addition

there were 18 non-APCOS directly

under the Department of Dairy

Development.

Table 2.10 shows the profile of the

DCS in Palakkad district. From

among the 74,081 registered milk

producers in the district on

average 24,501 poured milk in the

DCS. The proportion pouring milk

is low because the non-producers

are not removed from the DCS roll

due to the cumbersome mandatory

procedures. The average

procurement per DCS was 626

LPD and per supplier 7.94 LPD

during 2013-14. The local sale,

27,541 LPD, accounts for 14 per

cent of the daily procurement

indicating healthy production

trend in the rural areas. The rate

of procurement is appreciable in

comparison with the Kerala

standards. However, the DCS

classified according to the daily

procurement shows that 19 DCS

were collecting less than 100 LPD

and yet another 42 DCS daily

collected between 100 and 200

LPD. The study shows that those

DCS are not economically viable.

The reasons for poor procurement

rate are that they are not in ideal

locations, non-potential suppliers

are inducted as members and the

farmers have better option for

selling milk. The relocation of

those DCS needs to be considered.

39

Palakkad District

Table 2.10 Profile of DCS in Palakkad District 2013-14


1 Functional APCOS av. 2013-14 305 2 Non APCOs 18 3 No. of farmer members/DCS (243) 74081 4 Av. number of suppliers/DCS (79) 24051 5 Milk farmer procured (LPD) 190964 6 Local sales (LPD) 27541 7 Milk supplied to milk union (LPD) 163423* 8 Av. farmer procurement of milk/DCS (LPD) 626 9 Av. farmer procurement/supplier (LPD) 7.94 10 Av. procurement price paid to DCS (Rs/Kg) 29.38 11 Av. price - Local sales (Rs/liter) 12 No. of DCS collected <100 LPD 19 13 No. of DCS collected 101 - 200 LPD 42 14 No. of DCS collected 201 - 300 LPD 59 15 No. of DCS collected 301 - 500 LPD 167 16 No. of DCS collected >500 LPD 18 17 No. of DCS making one time milk collection from farmers 18 Av. fat% 4.23 19 Av. SNF% 8.4 20 No. of BMC DCS 33 21 No. of BMCs 36 22 Installed capacity 145000 23 Av. collection through BMC (LPD) 90800 24 No. of DCS making supply at dairy dock 111 25 No. of DCS provided AMCU (including DDD) 136 26 No. of DCS provided analyzer only (including DDD) 12 27 No. of DCS provided EMT 12 28 No. of DCS provided EMT only (no analyzer) 12 29 No. of DCS provided Gerbers test equipment only 5 30 No. of Panchayat wards in the district 31 % coverage under milk procurement 32 % wards having potential for milk collection 33 No. of DCS in own building 186 34 No. of DCS having adequate water supply arrangements 52 35 No. of DCS having standby generators 2 36 No. of DCS having Electricity 186 37 No. of Milk cans supplied during last five years 2409 38 Milk spoiled (LPD) 39 39 Av. MBRT - milk supplied through BMC 158 40 Av. MBRT - milk supplied at dairy dock 62

* In addition, the traditional DCS in Palakkad district supplied on an average 15617 LPD to the milk Union adding up the total procurement in dairy to 179040

40

Palakkad District

Out of the 305 DCS, 111 DCS was

supplying milk direct to the Dairy

during 2013-14. All others supplied

milk either to the village BMCs or

to those DCS supplying to MCP.

The number of DCS functioning in

own buildings was 166 (61 per cent

of the total) with the rest located in

rented buildings. Almost all of them

have electricity. But only 52 DCS

have adequate and proper water

supply arrangement which is a

major hurdle in maintaining good

hygiene standards. In 136 out of

305 (45 per cent) AMCU are used

for milk collection and quality

determination.

2.7.3 Coverage

The District has 90 Grama

Panchayats with 1451 wards,

apart from 139 Municipal wards.

The data available with the Union

shows that 873 wards are covered

under DCS which works out to

almost 60 per cent of the total

wards, still leaving out a

significant proportion of them to

be brought under the procurement

network. Opening new DCS as an

effort to improve the procurement

volume, which indirectly would

improve the dairy development in

the area, needs to be examined

under the next phase of IDDP.

2.7.4 Milk Quality and Quality

Administration

The MRCMPU follows two axis

pricing ie, farmers are paid on the

basis of milk fat and SNF content.

The village cooperatives are

equipped to determine the fat and

SNF. Few DCS are also equipped

to detect added preservatives,

adulterants and neutralizers apart

from MBRT estimations.

Because of the quality based

pricing system, the quality

assessment in DCS is crucial in

determining the price to be paid to

the farmer and winning their

confidence. The cooperatives in

Palakkad follow any of the three

known procedures for quality

assessment - conventional milk

testing (Gerber’s test for fat and LR

for SNF determination), Milk O

Tester for fat and LR for SNF and

Automatic Milk Collection Units

(AMCU) for quality and price

determination. The AMCU would

be the most desirable because it is

convenient, error proof, quick and

41

Palakkad District

42

transparent. Table 2.10 shows that

62 out of the 264 APCOS (23 per

cent) in Palakkad use AMCU.

On the quality front, the procured

milk has 4.23 per cent fat, and

8.40 per cent SNF which is

acceptable for all practical reasons

(Table 2.11). Farmer education

and introduction of AMCU can

further improve the quality. The

average MBRT of milk supplied

through BMC DCS is good while

that of non BMC DCS, 62 minutes,

indicates poor bacterial quality

(Table 2.11). In the years to come

both compositional and bacterial

quality will have a telling influence

on the marketability of milk and

therefore the Union needs to pay

better attention for improving the

bacterial quality.


Suggestions

Milk procurement in Palakkad

district is well organized. Under

IDDP and SMP Rs 537.54 lakh has

been invested for a number of

components ranging from BMC to

milking vessels and capacity

building of farmers, DCS employees

and elected members. The IDDP

support is currently available

(2014-15) and will continue for one

more year (2015-16). Therefore, the

support suggested here (Table 2.12)

are intended to stabilize and carry

forward the achievements already

made.

Table 2.11 Palakkad District Av. Milk Quality 2013-14

Parameter 2009-10 Fat % APCOS 4.23 Fat % non APCOS NA

SNF % APCOS 8.40 SNF % non APCOS NA

Av. MBR time BMC DCS (Mts) 158 Av. MBR time direct DCS (Mts) 62 No. of APCOS using/supplied AMCU 136 No. of APCOS using/supplied Milk O tester & LR 244

No. of APCOS using/supplied Gerber’s test & LR 5

Palakkad District

Table 2.12 Components Suggested under NPDD for Strengthening the Milk

Procurement in Palakkad District 2014-15 to 2016-17

Sl. No. Component No. of

Units Unit

Cost (Rs) Total Cost

(Rs in Lakh)

1 Buildings for DCS 18 100000 18.00 2 Water supply system 9 60000 5.40 3 Bore well 9 25000 2.25 4 Open well 15 10000 1.50 5 Working capital assistance 3 30000 0.90 6 Aluminium cans 300 2500 7.50

7 Automatic milk collection units 3 125000 3.75

8 Electronic milk tester 4 15000 0.60 9 Electric centrifuge 8 2500 0.20 10 Weighing scale 3 15000 0.45 11 Hand held billing device 8 10000 0.80 12 Management grant to DCS 8 30000 2.40 13 Subsidy to milk transport 370000 0.5 1.85

14 Subsidy to cattle feed transport

100000 MT 400/MT 400.00

15 Incentive to better quality milk

10000 LPD 0.5 54.75

Total (3.0.0) 500.35

a. Buildings


sections, a sizeable number of

DCS function in rented buildings.

Most of them do not have the

minimum facilities for hassle free

milk collection and dispatch. BMC

installation is virtually impossible

and effluent treatment is a serious

issue. Therefore it is suggested to

include provision for subsidizing

new DCS building at the rate of Rs

one lakh per DCS. The buildings

will cost almost four times the

suggested amount. Eighteen DCS

are identified to have the land and

financial capacity to do this during

the project period.

b. Water Supply System

Developing water source and water

supply is becoming increasingly

important for the DCS. Water

harvesting, installing water tanks

and pumping facilities are the keys

to a well-established water supply

system. Most of the DCS find it

difficult to mobilize adequate

capital for investment. Hence, a

subsidy of Rs 60,000 per unit is

43

Palakkad District

suggested for an estimated nine

numbers at a total cost of 5.4

lakh. Also digging nine bore wells

at the rate of Rs 25,000 per unit

and open well at the rate of Rs

10,000 per unit for fifteen

numbers are suggested for

Palakkad district.

c. Automatic Milk Collection

Units

About 136 DCS use AMCU for milk

collection and quality checking.

Those Units can develop problems.

It is important to have spare units

for replacement. It is suggested to

add three units for replacing the

defective ones. They can also be

used as service units to provide

temporary service in case of

breakdown. The estimated cost is

Rs 3.75 lakh.

d. Subsidy for Cattle Feed

Transport

Cattle feed is being sold through

the DCS. The farmers

wholeheartedly welcome the sale of

cattle feed through the DCS

because of the convenience, easy

access and credit facility.

Transport of cattle feed from feed

plant to the DCS in various parts

of the district entails a cost. It is

suggested to support and

subsidize the cattle feed transport.

The estimated quantity sold in

Palakkad district comes to one

lakh MT in three years. An amount

of Rs 400 lakh at the rate of Rs

0.4/kg is the average transport

cost. This may be provided as a

subsidy to the KCMMF so that the

price of cattle feed is kept low.

e. Incentives for Good Quality

Milk

The SIQCMP has instilled

considerable enthusiasm among

the dairy farmers to produce good

quality milk. The bacterial load of

raw milk has been reduced

significantly improving the quality,

especially the organoleptic

properties (taste and flavor) of the

milk, apart from high heat stability

and longer shelf life. The farmers

are not compensated for their

extra effort in producing good

quality milk. As a beginning it is

proposed that the top 5 per cent of

the milk may be paid an incentive

of 50 ps. per liter of milk. The daily

procurement is close to 2 LLPD

and the incentives at the

suggested rate works out to Rs

44

Palakkad District

5000 per day and Rs 18.25 lakh

per year (Total Rs 54.75).

2.8 Cattle Shed and Farm

Machineries

Clean and hygienic cattle sheds

are a precondition for clean milk

production. A dirty cattle shed

contributes substantially towards

external contamination of milk and

entry of microbes into the udder

causing sub-clinical or clinical

mastitis. A well-made cattle shed

should also provide ease of

operation and animal comfort. The

shed should have adequate space

for the animal, manger, feeding

alley, urine and dung channel. The

shed must be well ventilated, easy

to clean and should have

transparent roofing sheets

interspersed with opaque ones to

permit sunlight, and facility for

continuous water Sheds of those

standards are not existing

Palakkad district. Most of the

sheds are a mere make shift

shelter with mud/wood floor,

tile/asbestos/PVC/Silpaulin roof,

dark and musky, all in one floor

(no urine or dung channel)

and without any watering

arrangements. The cows remain in

this shelter most of the time (no

grazing). The hind quarters and

the udder often remain soiled by

dung and mud. Udder and teat

injury is common. Feeding of water

is only occasional. Therefore, any

support for good cattle shed is the

most welcome support for the

dairy farmers in Palakkad district

who belong to the poorest of the

poor in the community.

Considering those aspects the Milk

Union funded cattle shed

modifications and building new

cattle sheds under the IDDP and

SIQCMP schemes. During the

course of the field work we found

that the floor of cattle shed are

well made using the fund allotted.

However, construction of new

cattle sheds is very expensive in

Kerala due to the high labor cost

and the cost of materials. The

budget provision of Rs 10,000 is

thoroughly inadequate and will not

meet even 10 per cent of the

overall cost. Therefore, it would be

more sensible if the support could

be extended for renovation and

modification of the sheds with

45

Palakkad District

46

watering facility rather than

insisting on a new cattle shed.

On the face of shrinking family size,

changing status of women in the

society, and increasing

opportunities for employment in

other sectors of the economy, the

availability of labor for dairy

farming is fast declining. Hired

labor for dairy farm activity except

for milking is uncommon in

Palakkad district. Hence reducing

the labor input and making the

daily chores as pleasant as possible

is crucial for the very sustenance of

dairy farming. Considering the

economic and social significance of

dairying, the MRCMPU has

initiated providing financial

support for farm mechanization.

The Union has been providing and

channeling support since few years.

Table 2.13 shows the physical

attainments in the immediate past.

Table 2.13 Farm Equipments

Supplied to Farmers in Palakkad

District

Sl. No. Item Quantity

1 Cattle sheds modified 262 2 Milking machines 62 3 Rubber mats 1160 4 Pressure washers 84 5 Gen sets 4 6 Cow drinker 40 7 Chaff cutter- Motorized 20

It is suggested that the

assistance may be continued and

funded under NPBBDD. The

components suggested, quantity

and the estimated cost can be

found table 2.14.

Table 2.14 Cattle Sheds and Farm Machineries Suggested under NPDD

Palakkad District

A Cattle Shed No. of Units

Unit Cost (Rs)

Total Cost (Rs in Lakh)

1 Strengthening of old sheds/ constructing new sheds 150 15000 22.5

2 Auto watering system 150 5000 7.50

B Cattle Farm Mechanization

3 Gen set 30 75000 22.50 4 Pressure washers 150 7500 11.25 5 Rubber mats 750 2500 18.75 Total (4.0) 82.5

Palakkad District

2.9 Cattle Induction

Cattle induction is an effective way

of asset re-distribution. The

absence of easily accessible loan at

reasonable interest rate is a major

hurdle. Therefore cattle induction

has been resorted by several

development agencies in the state.

The MRCMPU too distributed

heifers to Women farmers to

promote cattle rearing in the

District.

Cattle keeping in the district are

largely in the hands of

economically poor people (BPL

families). It continues to be a

major source of their livelihood,

especially women. Therefore the

following number of cattle (Table

2.15) is recommended to be

supported under NPDD with the

following conditions:

Only the BPL families will be

included for cattle induction

activity.

50 per cent of cows and

heifers will be reserved for

women.

Women members will be

allowed 75 per cent of price

subsidy and others 50 per

cent of purchase price.

Transportation cost shall be

met in full under the scheme.

75 per cent of insurance

amount shall be included

under the scheme and the

balance as beneficiary

contribution.

2.10 Establishment of

Laboratories

An amount of Rs 38.59 lakh had

been invested under phase I & II

IDDP and SIQCMP and Rs 16.5

Table 2.15 Cattle Induction Program Proposed for Palakkad District

Sl. No. Cattle Induction No. of

Units Unit Cost

(Rs)


Capital expenditure 1 Purchase of animals 120 40000 48.00 2 Purchase of heifers 120 30000 36.00 3 Transportation cost of

animals 240 2000 4.80 4 Cattle/Heifer insurance 150 2500 3.75 Total 92.55

47

Palakkad District

lakh by Milk Union in upgrading

the lab. Palakkad Dairy has a

reasonably well equipped lab. It

should aspire to add more modern

gadgets after standardizing the

recently procured equipments and

laying out the ground level

testing on a routine. However the

lab has to go a long way in

equipping and testing procedures

to meet the FSSA/ISO: 22000-

2005 requirements. The following

suggestions (Table 2.16) are meant

as a first step towards this.

Although the DCS labs are

equipped to carry out the MBRT a

system to carry out the test by the

DCS staff and to on line link with

the central lab is yet to be

developed and implemented.

2.11 Clean Milk Production

Under the CMP scheme the

MRCMPU supplied the following

articles to the farmers in Palakkad

(Table 2.17).

Table 2.16 Equipments and Facilities Suggested for Quality Control Lab

Palakkad Dairy under NPDD (2014-17)


Units Unit

Cost (Rs)


1 Central milk testing lab 1 0 20.00 2 Purchase of laboratory furniture 1 500000 5.00 3 High capacity pressure jet 1 100000 1.00 4 FSMS monitoring software 1 100000 1.00 5 Accreditation and certification of

dairy establishments under HACCP/ISO 1 500000 5.00

Total 32.00

Table 2.17 Assistance under SIQCMP in Palakkad District

Sl. No. CMP Kits to Farmers Physical Financial

(Rs in Lakh) 1 Detergents & chemicals to DCS Lot 15.35

2 Stainless steel utensils to beneficiaries 874 23.04 3 Milking machines 50 25.00

48

Palakkad District

Distribution of CMP kits to farmers

had the least impact on milk quality

because the farmers discontinued

the use of chemicals and detergents

once the free supply is stopped.

Hence, this component may be

dropped from NPDD. The stainless

steel utensils (the milking vessels

and carrying utensils) on the other

hand are being used by the farmers

and they wholeheartedly welcome

the component. It is suggested that

those equipment may be supplied to

the farmers under the NPDD

through the DCS. The numbers

suggested and the financial

requirements are given as table

2.18.

On the face of the shrinking family

labor and exorbitant wages for

unskilled labor in Kerala, milking

machines are extremely beneficial

to the dairy farmers. Our field

exposure visits shows that almost

all farmers who have acquired

machines use them. The service

back up and knowledge sharing

remain to be improved. It is also

understood from the field study

that many farmers opt out of

dairying because of the difficulties

in milking cows. Hence, it is

suggested that 15 numbers of

milking machines may be supplied

to the farmers at subsidized (75%)

rate under NPDD. It is also

suggested that few hand operated

machines shall be supplied to the

needy farmers after making a

scientific and methodical field trial

in association with KVASU.

2.12 Technical Input Services

(TIS)

Technical input services are meant

for the participating farmer

members. The component

encompasses a variety of farm

Table 2.18 CMP Kits Suggested under NPDD in Palakkad District (2014-17)

Sl. No. Components No. of

Units Unit

Cost (Rs)


1 Stainless steel utensil kit/ accessories

1560 400 6.24

2 Electricity operated milking machine 15 55000 8.25

Total 1575 14.49

49

Palakkad District

level activities and assistance. TIS

was a major component of the

IDDP and SIQCMP implemented in

the district. The major

components, financial and

physical attainments in Palakkad

can be found from table 2.19.

The Technical input services are

production incentives to farmers

and aids for cost reduction.

Therefore they are suggested to be

included under NPDD as a priority

component. The most essential

components are listed in table 2.20.

The LN containers are for the

replacement of the ones in use.

This is covered under the NPBB

and hence not recommended. The

animal health and breeding input

camps include a pilot program for

fertility management of dairy cows

among farmers. The program

envisages identification of infertile

cows, providing management and

veterinary support to correct

reproductive disorders if any,

standardization and documentation

of the procedures for adoption

elsewhere in the State. It is a DCS

based program centrally controlled

and monitored from HO of

MRCMPU.

Table 2.19 Technical Input Services Components and Achievements

Palakkad District

Component Physical Achievement

Financial IDDP/

SIQCMP

Union/ Beneficiary (Rs in Lakh)

Total (Rs in Lakh)

Technical input services 297 42.3 18.12 60.42

Table 2.20 Technical Input Services for Palakkad District


Units Unit

Cost (Rs)


1 Liquid nitrogen plant & containers 6 30000 0 2 Audio visual kits etc. 1 200000 2.00 3 Animal health & breeding input

camps 180 5000 9.00

4 Chaff cutter 36 20000 7.20 5 Commercial fodder production 30 100000 30.00 Total 48.20

50

Palakkad District

Fodder is getting scarcer than

before in Palakkad with the decline

in paddy production. Fodder

continues to be one of the major

contributors to the extremely high

cost of production of milk in

Kerala. Several isolated fodder

promotion activities were

implemented in the district. But

none of them could influence the

scale of fodder scarcity. One of

them, the conventional homestead

fodder production, is a tried and

failed attempt in Kerala. The

reasons are many, the most

important being the land

fragmentation and the declining

farming activities. On the other

hand, large land holdings and

fallow land are potential source for

fodder production – fodder as a

value added crop in irrigated land.

The fodder so produced shall be

marketed among the DCS

members at cost price. Therefore

this component is suggested as a

flagship program of NPDD with 30

farmers supported at an estimated

cost of Rs 30 lakh. The amount is

meant for land preparation,

planting and developing irrigation

source.

2.13 Information and

Communication

Technology Networking

MRCMPU apart from being a

farmers’ organization is a multi-

crore business concern. Its’

business units are far flung and

widely distributed. To keep abreast

of the speed and perfection of

modern business full utilization of

information and communication

technology is essential. It is also

essential that the whole business

is transparent to its stakeholders,

the farmers. Unfortunately the

Milk Union is only in the nursery

stage of IC technology mainly due

to the lack of adequate funds. At

present the dairy business is

partially computerized and

networked (intranet). The milk

Union proposes to expand the IC

network so that the system will

function as a client server

architecture network with one

center at each district (Palakkad,

Malappuram, Kozhikode, Wayanad,

Kannur, Kasaragod) and a central

server system linking all these six

centers. Data and information will

be made available to all the

districts and DCS. The details of

51

Palakkad District

52

the proposed system are giving as

annex-1. The expenditure is to be

shared between the district

projects. The part required to be

completed in Palakkad is shown in

table 2.21.

2.14 Manpower Development

Training and development

program of MRCMPU were used as

the main instrument for

organizational development and to

make strides in productivity

standards including cost

reduction, energy conservation,

product improvement and so on.

Apart from Union employees, the

staff and elected members of DCS

and Board are also trained on

appropriate subjects.

MRCMU has designed several

training programs as a part of

Manpower Development. Table

2.22 shows the numbers trained

in various categories. The DCS

staff have been trained at the HRD

centre, Kozhikode under MRCMPU

Table 2.21 Information and Communication Technology Networking-

Palakkad District


Units Unit Cost

(Rs) Total Cost

(Rs in Lakh)

1 A4 size network laser printer 2 20000 0.40 2 A4 size flat bed scanner 4 5000 0.20 3 Data server 4 900000 36.00 4 Server storage device 2 800000 16.00 5 Server UPS backup 2 700000 14.00 6 42 U server rack 1 100000 1.00 7 Foldable TFT console 1 45000 0.45 8 8 port KVM switch 1 30000 0.30 9 Layer 3 switch 24 port 1 250000 2.50 10 Layer 2 switch 24 port 2 125000 2.50 11 Weblogic server and suite 2 1500000 30.00 12 Oracle application server 2 1500000 30.00 13 Antivirus software 1 100000 1.00 14 Software consultation charges 1 500000 5.00 15 Sub total (9.1.3) 6 0 66.00 16 Leased line communication

cost 1 1000000 10.00

Total 149.35

Palakkad District

Table 2.22 Farmers and DCS Employees Trained under IDDP/SIQCMP in

Palakkad District during the Last Five Years

Sl. No. Name of Programme

Number of Persons Trained

1 C D program a No. of programmes 11 b No. farmers trained 1543 c FIP - Local farmers attended 1135

2 Training of BMC/DCS/MCC staff 44 3 Training of DCS secretary 227 4 Training of DCS employees 178 5 Training on AI 26 6 Training of farmers on GMP/GHP 5801 7 Training of farmers on AH practices 218 8 FIP 111 10 Training on marketing 29 11 Training of management committee

members 83

on the relevant subjects. The

trainers were mostly from within

the organization and also experts

invited from other organizations.

The duration ranged from one to

three days and the subjects

handled were those relevant to the

concerned groups.

The farmers’ induction program is

normally carried out in the HRD

Centre, Kozhikode. The Dairy

Animal Management Training to

the farmers has been undertaken

in APCOS DCS. The training

included lectures by experts and

visit to a few well run farms. The

farmers were given opportunities

to see for themselves the success

and failure stories. The training for

MRCMPU employees is arranged

by the Head Office in the

institutions of repute in India,

both inside and outside the state.

An interaction with a test group

showed that the trainings were

useful for upgrading their skill and

knowledge. An amount of Rs 54.62

lakh had been spent on HRD IDDP

and CMP Phase I and II in

Palakkad district.

53

Palakkad District


Suggestions

Future training especially those for

the middle level employees starting

from Supervisors should be hand

on training exclusively on subjects

and skills relevant to them.

a. Farmers training should be

organized in villages with the

support of LSG and Village

Extension Workers under

MRCMPU.

b. All out and comprehensive

training on Mastitis

Eradication, Clean Milk

Production for farmers,

Village Extension Workers

and DCS employees should

be initiated on a project mode

and results closely watched

and monitored.

c. The Dairy Managers,

Production Officers and

Marketing staff should be

exposed to higher levels of

knowledge on production and

marketing management. They

should be provided

opportunity to visit centers of

excellence outside the State.

d. The thrust of capacity

building of higher level

employees should be on

modern Management Systems

rather than on technical

subjects. They should be

exposed to what happens in

dairy sector elsewhere in the

country (eg. Schreiber

Dynamix) to widen their

vision and outlook.

e. The FIP must be gradually

toned down and tapered out.

The courses suggested and the

estimated costs are given in table

2.23.

Table 2.23 Training Suggested under NPDD 2014-15 to 2016-17

Sl. No. Name of Course Units No. of

Units

Unit Cost (Rs)


1 CD programme Numbers 6 80000 4.80 2 Training on mastitis Person 600 300 1.80 3 Training DCS employees &

elected members Lot Lot 20.00 4 MRCMPU employees Person 125 3000 11.00 5 Institutional skill development 20.00 Total 57.6

54

Palakkad District

2.15 Working Capital –

Palakkad District The MRCMPU require large

amount towards Working Capital

in Palakkad district for the

payment of milk price, purchase of

SMP, cattle feed, packing materials

and other expenses. The Dairy has

to maintain minimum quantity of

finished products at all times to

ensure uninterrupted sales.

Minimum quantity of all raw

materials, consumables packing

materials, stores and spares etc.

are also required to maintain

smooth processing/production

operation.

The working Capital requirement

of the Union is fluctuating

throughout the year depending on

local milk procurement. The milk

procurement of the Union

fluctuates between the flush and

lean season. During Flush

(January to May) the working

capital buffer the timely payment

of milk value to the farmers even

while the money is held up in the

form of inventory like ghee,

skimmed milk powder,

consumables, and cattle feed etc.

During lean season union is

procuring milk from other states

for which payments are made in

advance. SMP is also to be stored

to take care of any possible short

supply of liquid milk from outside

state.

In both, flush and lean, period the

Milk Union is supplying cattle feed

and other inputs to the societies

on credit basis. Present supply of

cattle feed to societies is more than

600 MT per month.

The milk value for 21 days comes

to Rs 1085.6 at the current rate of

procurement and price. This alone

is expected to grow at 8 per cent

per annum and at the end of

2016-17 will be 1261 lakh. In

addition to this comes the

aforesaid inevitable payments. The

Milk Union does not have the

adequate cash reserve to meet all

the expenses mentioned above.

The Union resorts to soft loans

and over drafts to avoid disruption

of milk value payments to farmers

and to maintain supplies and

services to DCS. The borrowings

attract interest which in turn

limits the farmer beneficiary

55

Palakkad District

56

programs and investments in

dairy. In coming years the burden

is poised for increase. Hence it is

requested that an amount of Rs.

110.0 lakh may be paid as a one-

time assistance towards working

capital assistance for Palakkad

district. The amount suggested is

far below the milk value for 21

days as shown in table 2.24.

Table 2.24 The Amount Required to Pay Milk Value for 21 Days in

Palakkad District

Milk Procurement (Llpd)

2013-14 (Actual) 2014-15 2015-16 2016-17

Average Milk

Price/Liter (Rs)

Days Total Milk Value (Base Year) (Lakh)

Total Milk Value (EOP)

(Lakh)

1.79 1.9332 2.08786 2.2548845

28.88 21 1085.6 1261.5

3. MALAPPURAM DISTRICT

Contents

Executive Summary ..........................................................................59

3 General Features .........................................................................63 .1

3.2 Trend in Cattle Population ...........................................................65

3.3 Trend in Milk Production from Bovines ........................................66

3.4 Milk Chilling 66 3.5 Milk Processing 67 3.6 Milk Marketing 70 3.7 Milk Procurement 78 3.8 Cattle Shed and Farm Machineries 86 3.9 Cattle Induction 88 3.10 Establishment of Laboratory in Malappuram/Kozhikode Dairy and MCP Nilambur 89 3.11 Clean Milk Production 91 3.12 Technical Input Services (TIS) 92 3.13 Information and Communication Technology Networking 94 3.14 Manpower Development 965 3.15 Working Capital - Malappuram District 97

Palakkad District

Malappuram District

MalappuramDistrict

58

Palakkad District

59

Executive Summary

The Malappuram district is not

among the frontline dairy districts

of the state. The cattle farming are

at a subsistence level. The official

statistics shows that the cattle

numbers declined by 63 per cent

from 1996 to 2012 and in milk

cows by 29 per cent. The annual

milk production from bovines also

declined from 142.29 thousand MT

(1997-98) to 98.46 (2011-12).

The MRCMPU do not have a

processing dairy in Malappuram

district. The milk procured from

the district is transported to

Kozhikode dairy for processing and

the processed milk is transported

back to the district and marketed.

These crisscross transports not

only attract additional cost but

also cause quality deterioration

and inconsistent supplies to the

dealers and consumers. Therefore

a new Dairy will soon come up in

Malappuram district, it is

understood. Until then the

present arrangement will continue.

The investments suggested one

cold store, one compressor and

one DG set are for the MCP,

Nilambur. The cost comes to Rs

87.00 lakh.

The market survey shows that

supply demand gap for milk in

Malappuram district is 3.9 LLPD.


the liquid milk segment is just

under 15 per cent which is not

impressive. In milk consumption

Malappuram was far behind the

other districts in Malabar, several

studies have shown. Malappuram

had a special liking for curd and

milk powder. This trend in milk

powder consumption is gradually

changing in favor of liquid milk.

The inadequate market

infrastructure is yet another

reason for the low market share of

liquid milk in Malappuram district.

Hence an aggressive marketing

strategy supported by adequate

infrastructure and consumer

canvassing is required. New milk

parlors and Shoppe are suggested

to be opened in prominent public

places. Wide publicity through

print and visual media is also

suggested. Periodic market survey

and R&D on consumer preferences

Malappuram District

likes and preferences (example

niche products, attractive packing

for curd, flavored milk ice cream,

Peda, etc.) are also suggested. The

estimated cost on market

promotion in Malappuram district

works out to Rs 394.85 lakh.


extensive net work of DCS and


farmers. Most of the DCS have


facilities. All BMC DCS have




major constraints identified in

milk procurement are lack of

convenient buildings for DCS,

inadequacy of good quality water,

incentives for clean milk

production and support for cattle

feed transport. The suggested

procurement activities in

Malappuram district will cost Rs

137.95 lakh.


farm machineries are identified to

be a major constraint in dairy

production in Malappuram

district. Strengthening of old cattle

sheds constructing new cattle

sheds and supplying farm

machineries and equipments on

subsidy price are suggested at a


In order to motivate and attract

cattle keeping among the below

poverty line (BPL) families, women

and SC/ST communities a cattle

induction program is suggested.

NABARD norms shall be followed

for administering the subsidies.

The overall expenditure for 240

animals is estimated to be Rs

92.55 lakh.



Kozhikode by pooling the funds

from all the districts. This will

eliminate duplication of expense in

all other labs. Malappuram district

also can avail this facility. All this

and certain additional equipments

and furniture required for

Malappuram are estimated to cost

is Rs 104.00 lakh.




utensils, milking machines, etc. at


60

Malappuram District

61



breeding, health care and






line departments will cost Rs

46.00 lakh.

The Malappuram district needs to

network the various units and

DCS for effective information

sharing and communication. The

suggested system is a client server


centers at each district (Palakkad,


Kannur, and Kasaragod) and a

central server system linking all

these six centers the data and


to all the districts and DCS. The

estimated cost is Rs 150.60 lakh.



activity of MRCMPU. Several

programs were running since few

years. It is suggested to scale down

certain programs. The suggested

programs would cost Rs 107.0

lakh.




Malappuram district. The milk

prices are to be paid to the farmers

regularly which alone cost Rupees

224 lakh now and is expected to

progress to Rupees 285 lakh at the

current rate of growth (8%) in

procurement in the next three

years (Table 3.21). In addition,

keeping a buffer stock of raw and

finished goods is essential to

safeguard against any possible

contingencies in milk business.

This, as also several other

requirements force the Milk Union

to borrow money from the open

market which causes extra burden

to the Union and the farmers.

Hence it is suggested that an

amount of Rs 285 lakh shall be

paid to the milk Union as a

onetime assistance for Working

Capital.


Malappuram district and the cost

shall be summed up as follows.

Malappuram District

Component Amount Rs in Lakh

Milk processing and packaging 87.00

Milk marketing 394.85

Milk procurement 137.95

Cattle shed and farm machineries 63.00

Cattle induction 92.55

Constructing laboratories 104.00

CMP kits to farmers 17.25

Technical input services 46.00

Information and communication technology 150.60

Human resource development 107.00

Working capital 285.00

Total 1485.20

62

Malappuram District

3.1 General Features

Malappuram District, formed in

1969, is surrounded by Nilgiris of

Tamil Nadu in the east, Arabian

Sea in the west, Kozhikode and

Wayanad districts in the north and

Palakkad and Thrissur districts in

the south. The district has an area

of 3350 sq.km. which is 9.13 per

cent of total area of the State. Like

most other districts of the State,

Malappuram district consists of

three natural divisions – low land,

midland and high land. The

topography of the district is highly

undulating starting from the

hilltops covered with thick forests

on the east along the Nilgiris. It

gradually slopes down to the

valleys and the small hills, before

finally ending on the sandy flat

surface of luxuriant coconut

groves in the west.

Malappuram district consists of six

Taluks (Nilambur, Ernad,

Tirurangadi, Tirur, Perinthalmanna

and Ponnani), seven Municipalities

(Malappuram, Perinthalmanna,

Manjeri, Ponnani, Tirur, Kottakkal

and Nilambur) fifteen Block

Panchayats and 100 Grama

Panchayats. There are 278

Municipal wards and 1843 Gram

Panchayat wards in Malappuram

district.

The official census 2011 shows

that Malappuram district has a

population of 41.10 lakh of which

19.61 lakh are male and 21.49

lakh female and a sex ratio of 1096

per 1000 males. Malappuram

accounts for 12.31 per cent of the

total population of the State. The

decadal growth in population is

13.39 per cent in comparison to

the State average of 4.86 per cent

and national average of 17.64 per

cent. The density of population as

per 2011 census is 1158/sq. km.

in comparison to 1021 during

2001. The literacy rate in

Malappuram is 93.55 per cent

(2011 census). The 2011 Census

shows that 55.81 per cent of total

population lives in rural areas and

44.19 percent in urban

agglomerations.

The district has more or less the

same climatic conditions prevalent

else-where in the state, viz., dry

season from December to

February, hot season from March

63

Malappuram District

to May, and the South West

Monsoon from October to

November. The South West

Monsoon is usually very heavy and

nearly 75 per cent of the annual

rainfall is received during this

season. The climate is generally

hot and humid; the range of

temperature varying between 30 0C and 20 0C. The Average annual

rainfall is 2900 mm (Farm Guide,

2012).

Agriculture continues to be the

mainstay of the population,

involving 75 per cent of the people,

directly or indirectly and is the

endeavor of small holders. The

vast majority of the peasants are

small land holders. 2.36 lakh

hectares are holdings below one

hectare. Only 16,107 hectares of

holdings are above 2 hectares. The

main crops raised are Paddy,

Coconut, Tapioca, Arecanut,

Cashew nut, Banana, Rubber,

Pulses, Ginger, Pepper and Betel

vine. Coconut tops with a total

area of one lakh hectares. Paddy is

cultivated in 31,098 hectares.

Paddy has lost predominance

among crops during the last two

decades. Rubber, a main cash crop

in the district, has got coverage of

26305 hectares. Another

important cash crop is arecanut.

Despite the support of government

with subsidy and services, with the

exception of rubber, crop

production is declining.

The livelihood support of the

marginal and landless farmers

(small income group) is livestock.

The surging household income

from foreign remittances and

plantation crops like rubber has

sidelined livestock production.

Less than 20 per cent of

households own some form of

livestock. Cattle are the most

prominent species and milk the

major livestock output.

The vast network of institutions

under the state Animal Husbandry

Department services the livestock

farmers in the district. The

important institutions include one

District Veterinary Center, ninety

four Veterinary Dispensaries,

eleven Veterinary Hospitals four

Veterinary Poly Clinics, one

hundred and sixteen Artificial

Insemination Units and one

district poultry farm. The

64

Malappuram District

department of Dairy Development

has a district office and fourteen

Dairy Extension Service Units in

various parts of the district and

look after the dairy extension

services. The MRCMPU has one

chilling plant, one P&I Unit at

Nilambur and two marketing

depots at Kottakkal and Nilambur

for milk procurement and sale.

One hundred and seventy nine

DCS functioning in villages collect,

test the quality and dispatch milk

to the processing Dairies, pay the

price of milk at regular intervals to

the dairy farmers and channel the

support and services from the line

departments and the milk Union.

3.2 Trend in Cattle

Population

The cattle population in

Malappuram declined sharply

between 1996 and 2012 (Fig. 3.1)

both the total (63 per cent) and

cows in milk (29 per cent)

showed similar trends from 1996

to 2007 but animals in milk

substantially increased between

2007 and 2012. The in milk

buffalo had mixed fortune. The

numbers sharply declined from

9615 to 1821 between 1996 and

2007 and thereafter substantially

gained till 2012. Although the

accuracy of data on cattle

Fig 3.1 Cattle population Malappuram District (source Cattle Census AHD GOK)

0

50000

100000

150000

200000

250000

Num

bers

Total Cattle 229765 134703 105329 84131

Cows in milk 62206 40742 33543 57000

Buffalo in milk 9615 1857 1821 4200

1996 2003 2007 2012

65

Malappuram District

numbers is questionable, it is

certain that the many dairy

farmers in Malappuram district

opted out of dairying after 1996

due to economic and other factors.

3.3 Trend in Milk Production

from Bovines

According to the ISS estimates

(Fig. 3.2) the annual milk

production in Malappuram

increased from 142 thousand MT

in 1997-98 to 174 thousand MT in

2001-02 and declined to 98.46

thousand MT in 2011-12. The

trend in Malappuram district is

contrary to that observed in other

districts. In almost all other

districts the last two to three years

witnessed sharp to moderate

increase in milk production.

Surprisingly, in Malappuram,

animals in milk went up but milk

production declined that is a

difficult situation to explain.

Although the accuracy of the data

is questionable, we have to accept

these figures as we do not have

any alternate estimates.

3.4 Milk Chilling

The milk chilling capacity within

Malappuram during 2013-14 is

shown in table 3.1.

During the year the volume of milk

chilled and supplied to Kozhikode

Dairy was 23,700 liter (53 per cent

of installed chilling capacity). The

Fig 3.2 Milk Production Malappuram district from Bovine (source ISS AHD GOK)

0

20

40

60

80

100

120

140

160

180

200

Milk

'000

MT

142.29 173.59 111.43 124.73 98.46

97-98 2001-02 2004-05 2008-09 2011-12

66

Malappuram District

Table 3.1 Chilling Facility in

Malappuram 2013-14

Sl. No. Source Capacity

1 BMC DCS (5) 14000 liter

2 Milk chilling plant, Nilambur

30000 liter

Total 44000 liter

vast majority of DCS (172 out of

219) in Malappuram district are

not linked to the BMC system of

milk procurement and instead

resort to can collection and

transport to dairy dock/MCP. The

lack of sufficient volume of milk is

the reason cited for not installing

more number of BMCs. A policy

decision to start a processing dairy

in Malappuram district has

already been taken which will

change the scenario of dairy

production in the district.

Therefore, additional chilling

capacity is not recommended at

this stage.

3.5 Milk Processing

Malappuram is the only district

under MRCMPU without a milk

processing facility as the growth in

milk sales was not impressive and

the district had very small

marketable surplus of milk. The

milk procured from the district is

being transported to Kozhikode

Dairy, processed and transported

back to Malappuram and

marketed. Such two-way movement

of milk incurs additional

transportation cost with the Union

and the milk producers bearing it.

Now the Union is selling 67,825

liter of milk daily in the district. In

addition to the Kozhikode Dairy,

where the Malappuram milk is

processed, the Wayanad and

Palakkad Dairies also market milk

in the district from different entry

points. The supplies to the retail

outlets are made through direct

routes as well as the Marketing

Depots (Cold Store Units) newly

established at Kottakkal, Pattambi

and Nilambur. Kozhikode,

Palakkad and Kannur Dairies, the

feeder Dairies for Malappuram

district, have limitations to take

additional load and for further

expansion. The long distance

transport causes quality issues as

well. In the wake of the recently

introduced Food Safety and

Standards Act (FSSA), quality will

67

Malappuram District

be a major factor in deciding the

future marketability of milk. The

absence of a dairy near the

market/consumption points

causes hardships to the retail

outlets and customers. From the

marketing and customer point of

view, the dairy should be as near

to the customer as possible. The

Dealers are not satisfied by the

morning and evening deliveries

alone. They prefer multiple

deliveries every day. Under this

compelling situation, it became

imperative to have the processing

facility in Malappuram compelling

the Milk Union and the

Government of Kerala to take a

decision.

3.5.1 Milk Chilling Plant,

Nilambur

Tables 3.2 and 3.3 present the

existing and the proposed

equipment inventory at the

Nilambur chilling plant and

Malappuram respectively. In the

wake of the decision to establish a

new dairy, major upgrading is not

suggested. However, to ensure the

continued milk procurement from

farmers in Malappuram the

processing facility in Kozhikode/

Palakkad dairies are to be

enhanced for which the

installation of equipments shown

in table 3.3 are suggested. These

equipments could eventually be

shifted to the upcoming

Malappuram dairy.

a. Cold Storage/Deep Freezer

and Refrigeration Compressor

A depot has been established in

the existing Milk Chilling plant at

Nilambur. The available cold

storage facility is inadequate to

cater to the demand for milk and

ice cream products distributed

through the depot. Hence it is

suggested to install additional new

cold store, deep freezers and

refrigeration compressor.

b. DG Set

The existing DG set capacity will

be in adequate after installing

the cold store, deep freezers and

refrigeration compressor. Hence,

the DG set is to be replaced with

a 320 kVA DG set.

68

Malappuram District

69

Table 3.2 Existing Equipments in Nilambur Milk Chilling Plant

Sl. No. Equipment/Facility Capacity Quantity

1 Reception 1.1 Can roller conveyor 600 cans/hr 1

1.2 Can tipping bar 600 cans/hr 1

1.3 Can drip saver 600 cans/hr 1

1.4 Dump tank 2 Kl 1

1.5 Weigh bowl (SS 304) 600 Kg 1

1.6 Scale for weigh bowl 600 kg 1

1.7 Can scrubber (SS 304) 500 L 2

1.8 Can steaming block Single can 1 2 Processing/Storage Equipment

2.1 Milk chillers 10 KLPH 1

2.2 Milk pump 10 KLPH 2

2.3 Vertical milk storage tank 10 KLPH 2

2.4 Ghee pump 3000 LPH 1

2.5 Ghee clarifier 2000 LPH 1

2.6 Milk pumps 10000 LPH 2

2.7 Refrigeration compressors (make/model/type/cap.)

12 TR 2

2.8 Ice bank tank 100 KL 1

2.9 IBT coil 2000 Mtr 1

2.10 ATN condenser coil 90 Tr 1

2.11 Condenser pump 30 KLPH 3

2.12 Chilled water pump 30 KLPH 2

2.13 Chilled water agitator 5 HP 2

2.14 DG set 150 KVA 1

2.15 Transformer 200 KVA 1

2.16 HT protection gear 600 A 1

2.17 LT panel 415 V 1

2.18 Motor control centres 415 V 1

2.19 Push button stations 6 Buttons 1

2.20 Water storage tank 50 KL 1

2.21 Water pumps 20 KLPH 2

Malappuram District

Table 3.3 Equipments Suggested under NPDD for Milk Processing in

Malappuram District

Sl. No. Component Specification No. of

Units Unit Cost

(Rs)


1 Milk pump 10 KLPH 4 50000 2.00 2 SS pipes and fittings Lot 1 500000 5.00 3 Refrigeration compressors

with accessories 30 TR 1 3000000 30.00

4 Cold store (including equipments)

5 TR 1 2500000 25.00

5 DG set 320 KVA 1 2500000 25.00 Total 87.00

3.6 Milk Marketing


Marketing

The organization of milk marketing

activities in Malappuram is

illustrated as fig. 3.3 In the

absence of a dedicated Dairy for

Malappuram, three processing

Dairies (Kozhikode, Wayanad and

Palakkad), one Product Dairy at

Kozhikode and three milk depots

(Kottakkal, Nilambur and

Pattambi) together share the

marketing of milk and milk

products in the district.

Fig. 3.3 Organization of Milk Marketing Activities in Malappuram District

Prod. Dairy WYND Dairy PKD Dairy KKD Dairy, Ghee, Peda, Milk, Curd, Milk, Curd, Milk, Curd Palada, Flv Ghee, Butter Ghee, Butter Ice cream,

Milk Milk Milk Butter Milk

Kottakkal Depot Pattambi Depot Nilambur Depot

Wholesalers 70

Retailers

Malappuram District

The milk depot is a recent

marketing concept introduced in

MRCMPU. Each depot will have

one or more portable cold rooms to

store milk and products apart from

the freezers for ice cream. The

processed milk and milk products

are bulk transported from the

processing centers, stored and re-

distributed to the retailers. The

interior and difficult to reach

places are reached using small

transport vehicles (Ape). The

system offers flexibility in

distribution of liquid milk. The

retailers can afford to make late

indent after assessing the

requirement. The quick and

prompt supplies ensure cold chain

maintenance.

The remote and interior

consumers are better served this

way apart from saving the retailers

from the uncertainty of long

waiting for the milk truck.

Malappuram has two depots, one

at Kottakkal and the other at

Nilambur. A third one situated in

Pattambi of the neighboring

district is partially serving

Malappuram. The Kottakkal depot

receives the major supplies from

Wayanad Dairy and Kozhikode

product Dairy. The Nilambur

Depot receives the bulk of the

supplies from Kozhikode

processing and product dairies

and small consignment from

Wayanad Dairy. Pattambi receives

supplies from Palakkad Dairy and

Kozhikode Product Dairy.

3.6.2 Supply Chain and Sales of

Milk and Products

In general milk, curd and butter

milk are directly distributed from

the depots/dairy to the retail

outlets using PUF insulated mini

trucks. The milk products reach

the retail points through the

wholesalers. In addition, the retail

outlets adjacent to the processing

Dairies are directly served by the

Dairies as shown in fig. 3.3. This

being the general practice,

sometimes milk is distributed

through the wholesalers and

products through the milk depots

in Malappuram district depending

71

Malappuram District

on the ease of operation and

economy.

Milk and milk products sold in

Malappuram are shown in table

3.4. It may be seen that milk sales

reported a quantum jump from

2009-10 to 2013-14. Similar

increases are seen in almost all

milk products as well, except Sip

Up. The observed spurt is partially

due to the re-organization of

marketing area and consequent

addition of depots (earlier booked in

neighboring districts – Kozhikode,

Palakkad and Wayanad).

Nevertheless the recent re-

organization of marketing function

in Malappuram has yielded results

in terms of hike in sales.


Share

Market size is the total volume of a

given market. Market size

calculated on a standard practice,

competitive sales approach

(bottom up approach), and shows

that the market for liquid milk in

Malappuram district during 2013-

14 was 85,825 LPD (Milma 67,825

plus 18,000 by the competitors). In

this method the sales of

competitors are assessed through

a series of interviews and its

accuracy generally is moderate.

The sales in this case pertain

mostly to urban areas.

Yet another way of calculating the

market is by understanding the

end user purchases. The sample

survey conducted by the study

group (June 2014) shows that the

per capita consumption among

rural people is 105 ml and urban

77 ml. The market size is

calculated as shown in table 3.5.

Table 3.4 Milk and Milk Products Sold in Malappuram District

Milk/Product 2009-10 2013-14

Liquid milk (LPD) 32356 67825

Curd (Liter/day) 9710 14672

72

Malappuram District

Ghee (Kg/month) 30000 40502

Ice cream (Liter/month) 5200 20332

Butter milk (200 ml Pkts./day) 3927 5683

Milk peda (Kg/month) 2400 4404

Sip up (Pkts./month) 125000 86354

Palada (Kg/month) 300 972

Milma plus (Bottles/month) 4600 16885

73

Malappuram District

74

Table 3.5 Supply Demand Position in Malappuram District 2014


1 Population number 1013721 2072572 3086293 2 Cattle holdings % 20 0 NA 3 Potential consumers (1 x 0.8) 810977 2072572 2883549 4 Actual % consumers as per HH survey 93 77 5 Actual consumers (3 x 4/100) 754208 1595880 2350089 6 Per capita cons – survey result (ml per day) 105 77 7 Household consumer demand LPD

(6 x 5/1000) 79192 122883 202075 8 Inst. demand 20% of urban consumption 0 24577 24577 9 Total demand (7+8) 79192 147459 226651 10 Milma supply 67825 11 Market share % 30

The total estimated market in

Malappuram district is huge, 2.26

LLPD while the MRCMPU

marketed 67,825 LPD and their

competitors 18,000 LPD adding up

to 85,825 LPD leaving a gap of

1.41 LLPD. The market share of

Milma competitors seems to be

under estimated. The survey

shows that a sizeable section of

Malappuram population, 35 per

cent, continues to consume milk

powder. The market share of

Milma is just 30 per cent of the

market size. The entire

institutional segment is catered to

by the private dealers from within

and outside the state. The market

exploitation by Milma suggests

that the supports under the NPDD

and the marketing strategies

should be geared up to improve

the market coverage in

Malappuram district.

3.6.4 Marketing Infrastructure-

Current Status

Table 3.6 shows the current status

of marketing facilities available for

milk and milk products in

Malappuram district. Malappuram

has a moderate network of

institutions, wholesalers and retail

outlets, set up for marketing milk

and milk products in the district.

The market analysis, however,

shows that there is a huge

potential waiting to be exploited

Malappuram District

especially because the rural sector

is opening up for milk and milk

products and the use of milk

powder is gradually but steadily

giving way to liquid milk. Also, the

changing food habits are moving in

favor of milk and products like

curd and ghee. To exploit the

market potential in full, the

infrastructure needs to be

strengthened.


Recommendations

Table 3.7 is self-explanatory. Few

items deserving special mention

are explained below.

Table 3.6 Existing Marketing Facility Malappuram District 2013-14

Sl. No. Facility/Equipment Quantity

1 Wholesalers for product (No.) 34 2 Retail outlets milk and products (No.) 279 3 Milk parlors (No.) 2 4 Milma shoppe (No.) 6 5 Marketing depots/Hub (Mobile cold storage) (No.) 2 6 PUF vehicle container (3 MT) (No.) 25 7 PUF Vehicle Container (1.5 MT) (No.) 1 8 % milk routes using PUF vehicles for milk distribution 100 9 PUF box 50 ltr. (No.) 393 10 PUF box 100 ltr. (No.) 191 11 PUF box 150 ltr. (No.) 54 12 PUF box 25 ltr. (No.) 154 13 200 liter freezers for dealers (No.) 99 14 200 liter freezers glass top for dealers (No.) 20 15 120 LTR. freezer (No.) 30 16 Deep freezer 320 ltr. (No.) 25

Table 3.7 Marketing Infrastructure Proposed for Malappuram District

under NPDD Programme

No. Description No. of Units

Unit Cost (Rs)


1 Depot/Parlor 1.1 Milk parlor civil 12 50000 6 1.2 Milk parlor equipments 12 10000 1.2 1.3 Shoppe support 6 500000 30 1.4 Space in super market 15 20000 3 1.5 Decorated mobile product vehicle 3 50000 1.5

75

Malappuram District

No. Description No. of Units

Unit Cost (Rs)


2 Marketing Infrastructure for Preserving/Maintaining Quality of Milk

2.1 PUF vehicle container (3 MT) 3 250000 7.5 2.2 PUF box 25-4600 ltr. 375 LS 12.75 2.3 Shipper box for ice cream 30 6000 1.8 2.4 200 liter freezers for dealers 90 13000 11.7

2.5 200 liter freezers glass top for dealers 120 17000 20.4

2.6 120 LTR freezer 90 11000 9.9 2.7 500 ltr. freezer for dairy 10 23000 2.3 2.8 Deep freezer 320 ltr. 120 17000 20.4 2.9 Deep freezer 320 ltr. (Glass top) 90 20000 18 2.10 Visi-cooler 220 ltr. 120 20000 24 2.11 Freezer subsidy 30 5000 1.5 2.12 Refrigerator subsidy 30 3000 0.9 2.13 Visi-cooler 320 ltr. 90 30000 27.00 2.14 Canopy with eutectic freezer

subsidy 15 100000 15 3 Awareness Programme for

Consumers 3.1 Consumer awareness programme

& publicity 90 50000 180.00 Total 394.85

a. Milk Parlors


in strategic locations to attract



Milma products the Parlors will

also act as a media to improve the

visibility of Milma products.

Buyers will be served milk and

milk products in a consumer

friendly environment. All the

parlors started during Phase I

IDDP are performing well and they

provide the necessary market

stimulus for higher sales of Milma

milk and milk products in the

district. Therefore 12 more parlors

are suggested to be established

in the district. Support for

civil structure, furnishing and

equipments are suggested at a cost

of Rs 50,000 per parlor.

b. Milma Shoppe

The Milma Shoppe in towns can be

considered as a bigger version of

76

Malappuram District

milk parlors to increase the

visibility of the products and to

increase the sales. Improving the

visibility of Milma milk and

products is important to scale up

its business. Improving the

business is crucial to sustain milk

production and the livelihood

support to the resource poor milk

producers operating under the

hard conditions of Malappuram

district. Keeping this in mind, the

MRCMPU started ‘Milma Shoppe’

in Malappuram district. Shoppe is

a brand shop of Milma with all the

Milma products available at the

outlet and it works round the

clock. It has won the appreciation

of one and all and is found to be

an effective tool to publicize its

products. It is suggested that six

more shops may be started in

towns during the project period.

c. PUF Bodies


infrastructures provided under the

CSS, the introduction of PUF

insulated vehicles in milk

distribution routes and PUF boxes

in the retail outlets are worth

mentioning. With the addition of

the PUF containers under the

IDDP scheme during the yester

years, the entire milk transport

from Kozhikode/ Wayanad/

Palakkad dairies, the feeder dairies

to Malappuram district, has


vehicles. The PUF boxes of varying

sizes, 50-150 liter provided at 50

per cent subsidy, in the retail

outlets together with the PUF

bodied transport vehicles ensure

perfect end-to-end cold chain and

quality supply of dairy products to

consumers. Three more PUF

body is suggested as standby

for replacement of old and

unserviceable ones and to operate

new routes.


MRCMPU has effectively

demonstrated that PUF Boxes is

the most suited and the cheapest

method to maintain uninterrupted

cold chain from the point of origin

to the point of consumption.

Freezers are uneconomical to

preserve small volume milk. The

PUF boxes supplied under the

IDDP/SIQCMP are providing good

service to this end. Our field

exposure visits revealed that the

retailers wholeheartedly welcome

77

Malappuram District

the PUF boxes because they are

viable alternatives for the energy

consuming freezers. They occupy

less space, easily movable and

easy to clean. The boxes maintain

the temperature cold for about 3-4

hours during which the milk is

generally sold out. It is proposed

that all retailers shall be provided

with new or additional PUF boxes

to achieve 100 per cent cold chain

maintenance.


equipment to keep the cold of

products like flavored milk. Hence

they (the PUF boxes and Visi-

coolers) are suggested as part of

market promotion.

e. Freezers for Ice Cream

Promotion

MRCMPU markets milk products

such as ghee, curd, butter milk,

milk peda, palada mix, flavored

milk and ice cream. The share of

milk products in the total turnover

of the Union is around 24 per cent

and is crucial for its financial

security and liquidity. Among all

the products, ice cream is the

most promising. Unfortunately,

Milma has less than 5 per cent

market share in the ice cream

segment. The major hurdle


expansion in Malappuram district

is the lack of user friendly and

energy saving freezers at retail

points. During IDDP Phase I,

SIQCMP the Milk Union invested

in retailer level freezers and as a

result the sales of ice cream have

increased from 5200 liter/month

in 2010-11 to 20,332 liter/month

in 2013-14. Yet there is more to be

achieved. A three pronged market

intervention – appoint more

wholesale dealers, equip all retail

points with suitable size freezers

and wide publicity through TV

channels is suggested. Freezers of

varying sizes are additionally

required. In addition canopy fitted

vehicles are recommended for

special sales in tourist spots and

prominent on road locations.

f. Consumer Awareness and

Publicity




activities involved in milk

procurement from farmers to sales

at retail outlets. The consumers

get an opportunity to gather

78

Malappuram District

79

firsthand information on quality

assurance followed at various

stages of milk reception,

processing and marketing.

Advertisement boards and banners

are exhibited in busy places for the

publicity of the milk and milk

products. Awareness activities are

inadequate to reach all segments

of consumers and general public.

Also Malappuram district has its

specificities in food habits. Hence,

it is suggested that consumer

awareness programs should go

beyond the usual styles and enter

into newer frontiers to attract more

consumers into the fold of Milma.

An aggressive consumer education

cum advertisement program

through all channels of media

shall be launched in Malappuram

for two purposes – awareness

creation among all sections of

people and market promotion - as

a tool for socio economic

improvement for which an amount

of Rs125 lakh is suggested.

3.7 Milk Procurement


Procurement

Milk procurement is one of the

key functions of MRCMPU and in

Malappuram, it is being looked

after by the P&I Unit functioning

at MCP Nilambur. The Unit has

established a network of village

level DCS in the district to

procure milk from dairy farmers.

The organization of milk

procurement is explained in fig.

3.4.

BMC DCS means a DCS in which

the BMC is installed, Cluster DCS

means a DCS which supplies milk

to the BMC, and the direct DCS


directly in the Dairy/MCP. The

milk producer delivers the

household surplus milk either in

the BMC DCS, Cluster DCS or

Direct DCS. The Cluster DCS in

turn delivers the milk to the

nearest BMC. The direct DCS

supply milk direct to dairy dock.

32 DCS dispatch milk direct to the

Dairy in Kozhikode. The Pattambi

milk chilling plant collects milk

from 28 DCS in Malappuram apart

from the 74 from Palakkad district.

Kottakkal MCP collects milk from

22 DCS. The Nilambur milk

chilling plant collects milk from

122 DCS all in Malappuram. Both

Malappuram District

Fig. 3.4 Organization of Milk Procurement – Malappuram

Milk Producers

BMC DCS

Cluster DCS

KKD DAIRY

Direct DCS

PTMB MCP NMBR MCP

Direct DCS

Key words: NMBR MCP – Nilambur Milk Chilling Plant; KKD – Kozhikode; PTMB MCP – Pattambi Milk Chilling Plant

chilling plants (Pattambi and

Nilambur) are feeder units to

Kozhikode Dairy. The district has

six BMCs functioning in five DCS.

BMC DCS chill the milk before

transporting to Kozhikode Dairy.

The Dairy in turn processes and

markets the milk in towns and

other urban areas within and

outside the district. The whole




Although the Milk Union takes

every possible step to collect the

entire milk from the producers,

flush season stresses and long

distance transport from

Malappuram to Kozhikode often

creates operational issues and

disruption of procurement. The

past experience of MRCMPU in

other districts shows that the

demand created by a steady and

progressive milk collection coupled

with remunerative milk price and

80

Malappuram District

regular payment stimulate local

milk production. The same

strategy can be adopted in

Malappuram district too and

the pre-requisite is a central

processing Dairy.

3.7.2 Profile of DCS in

Malappuram


DCS in Malappuram district. From

among the 43,854 registered milk

producers in the district, on an

average 8700 (19.8%) alone

supplied milk during 2013-14. The

low proportion of suppliers is due

to non-removal of the non-

producers from the DCS roll

because of the cumbersome

statutory procedures. The average




11243 LPD, accounted for 24 per


indicating fair demand for milk

from the locality due to falling milk

production. The rate of

procurement per DCS is poor in

comparison with other districts of

the region.

The DCS classified according to

daily procurement shows that 20

per cent were collecting less than

100 LPD and yet another 28 per

cent between 100 and 200 LPD.

The study shows that those DCS

are not economically viable. The

reasons for the poor procurement

rate can be attributed to the

location of DCS in non-farming

area, induction of non-producers

as members and other options for



Out of 219 DCS, 69 (31%) function

in own building; 121 (55%) have

electricity and water

arrangements. The absence of own

building, lack of electricity and

lack of good quality water in

adequate quantity are identified to

be the reasons for poor hygiene

and poor microbial quality of milk.

The average MBRT of milk from

majority number of DCS is 65

minutes (Table 3.8).

3.7.3 Milk Procurement

Coverage

Malappuram has 1845 Panchayat

wards of which 50 per cent are

under milk procurement coverage.

81

Malappuram District

Table 3.8 Profile of DCS in Malappuram District March 2014


1 No. of functional APCOS (31-3-2014) 219 2 No. of farmer members/DCS 200 (43854) 3 Av. number of suppliers/DCS 39 (8700) 4 Milk procured from farmers in DCS (LPD) 46820 5 Local sales (LPD) 11243 6 Milk supplied to milk union (LPD) 35577 7 Av. farmer procurement/DCS (LPD) 214 8 Av. procurement/supplier (LPD) 5.38 9 Av. procurement price paid to DCS (Rs/Kg) 28.69 10 Av. price - Local sales (Rs/liter) NA 11 No. of DCs collected <100 LPD 46 12 No. of DCS collected 101 - 200 LPD 61 13 No. of DCS collected 201 - 300 LPD 42 14 No. of DCS collected 301 - 500 LPD 53 15 No. of DCS collected >500 LPD 17 16 Av. fat% 3.95 17 Av. SNF% 8.3 18 No. of BMCs 5 19 Installed capacity 14000 20 Av. collection through BMC in MPM district

(LPD) 12500

21 No. of DCS making supply at dairy dock & MCP 13 22 No. of DCS provided AMCU (including DDD) 56 23 No. of DCS provided analyzer only (including

DDD) 19

24 No. of DCS provided EMT 85 25 No. of DCS provided EMT only (no analyzer) 29 26 No. of DCS provided Gerbers test equipment

only 135

27 No. of Panchayat wards in the district 100 28 % coverage under milk procurement 70 29 % wards having potential for milk collection 15

30 No. of DCS in own building 69 31 No. of DCS having adequate water supply

arrangements 123

32 No. of DCS having standby generators 2 33 No. of DCS having electricity 121 34 No. of milk cans supplied during last five years 470 35 Milk spoiled (LPD) 15 36 Av. MBRT - milk supplied through BMC 120 37 Av. MBRT - milk supplied at dairy dock 65

82

Malappuram District

As nearly 25 per cent of the

geographical area is forest and as

the costal belt has few cattle, only

about 15 per cent of the left out

wards have the potential for

starting new DCS.


Administration in DCS

The MRCMPU follows two axes

pricing i.e., farmers are paid on

the basis of milk fat and SNF in

the milk. The village cooperatives

are equipped to determine the fat

and SNF. Few DCS are equipped to

detect added preservatives,

adulterants and neutralizers as

well.

As the price paid to the dairy

farmer is based on the quality of

the milk, facility for assessing it at

the DCS is crucial. The

cooperatives in Malappuram follow

any of the three known procedures

of quality assessment, namely

conventional milk testing (Gerber’s

test for fat and LR for SNF

determination), Milk-O-Tester for

fat and LR for SNF and Automatic

Milk Collection Units (AMCU) for

quality and price determination.

The AMCU is the most desirable

because it is convenient, error

proof, quick and transparent.

Table 3.9 shows that 56 out of 217

APCOS possess AMCU.

Table 3.9 Average Quality of Milk in Malappuram, 2013-14

Parameter Values Fat % APCOS 3.95

Fat % non-APCOS NA

SNF % APCOS 8.30

SNF % non APCOS NA

Av. MBR time BMC DCS (Mts) 93 Av. MBR time direct DCS (Mts) 60

No. of APCOS using/ supplied AMCU

56

No. of APCOS using/ supplied Milk O tester & LR

85

No. of APCOS using/ supplied Gerber’s test & LR

18

83

Malappuram District

Although most of the DCS

possessing AMCU use them for

milk collection very few use the

auto analyzer (one of the

instruments of AMCU) reportedly

due to the slowness in testing.

Some units are reported to be

erratic in fat and SNF estimation

while some others have

inconsistent results. The poor

performance of the analyzers

causes hardships to the farmers

and DCS and the DCS have

discontinued its usage or changed

the configuration of the system by

substituting EMT instead of

analyzer. The EMT test fat only

and SNF has to be calculated after

taking manual reading of

lactometer. In such cases the

farmer cannot understand the fat

and SNF content in the milk

supplied and cannot get an instant

print out from the AMCU thus

defeating the very purpose of

introducing AMCU and

automation. AMCUs are excellent

gadgets to ensure transparency in

milk procurement in village DCS.

It avoids the hassles of quality

checking, volume measurement

and payment of milk price. Hence

we are of the opinion that the

analyzers need to be re-introduced

after rectifying the practical issues

in consultation with the

manufacturers and suppliers.

Almost all BMC DCS possess

equipments for MBRT estimation.

But not all of them have started

using them.

About the quality of milk procured

from Malappuram district, the fat

content averaged 3.95 per cent,

and SNF 8.3 per cent which needs

improvement. The average MBRT

of milk from BMC is 95 minutes

and that of dock supplied milk is

60 minutes which again is not

appreciable. In the years to come



on the marketability of milk.

Farmer education and use of

AMCU can further improve the

compositional quality while the

best way to usher in microbial

quality is to incorporate this as a

third parameter in the price

formula. Towards this end, it is

suggested to introduce an

incentive for the good quality

(microbial) milk under the NPDD

as a beginning.

84

Malappuram District

85

3.7.5 Key Issues and Suggestions

The key issue in Malappuram is the

low rate of procurement per DCS

and supplier and the burgeoning

mismatch between demand and

supply. To address this, Rs 487.89

lakh has been invested in

Malappuram district under the

IDDP and SIQCMP schemes. The

IDDP support is available for two

more years (2014-15 and 2015-16).

After considering all those facts and

the need to push the milk

production further in Malappuram

the following suggestions (Table

3.10) are put forward for the

consideration of NPDD.

a. Buildings As pointed out in the forgoing

sections a sizeable number of DCS

function in rented buildings. Most

of them do not have the minimum

facilities for hassle free milk

collection and dispatch. BMC


and effluent disposal is a serious

issue. Therefore, it is suggested to


new DCS buildings at the rate of

Rs one lakh per DCS. Eighteen

DCS are identified to have the land

and financial capacity to do this

during the project period.

Table 3.10 Suggested Support for Milk Procurement under NPDD

Malappuram District

Sl. No. Milk Procurement No. of

Units Unit


(Rs in Lakh) 1 Building construction 18 100000 18.00 2 Water supply system 10 60000 6.00 3 Bore well 10 25000 2.50 4 Open well 15 10000 1.50 5 Working capital assistance 3 30000 0.90 6 Aluminium cans 300 2500 7.50 7 Automatic milk collection units 3 125000 3.75 8 Electronic milk tester 4 15000 0.60 9 Electric centrifuge 8 2500 0.20 10 Weighing scale 3 15000 0.45 11 Hand held billing device 8 10000 0.80 12 Management grant to DCS 8 30000 2.40 13 Subsidy to milk transport 370000 0.5 1.85 14 Subsidy to cattle feed transport 21500 400 86.00 15 Incentive to better quality milk 1000 LPD 0.5 5.50 Total 137.95

Malappuram District

b. Water Supply System Developing water source and

water supply is becoming

increasingly important in

Malappuram. Most of the DCS

find it difficult to mobilize

adequate capital for investment.

Hence, a subsidy of Rs 60,000

per unit is suggested for 10

numbers at an estimated cost of

Rs 6.0 lakh. Water harvesting,

installing water tanks and

pumping facilities are envisaged.

In addition digging 10 bore wells

at the rate of Rs 25,000 per unit

and 15 open wells at the rate of

Rs 10,000 per unit are also

suggested for the district.

c. Subsidy for Cattle Feed Transport

Milma cattle feed is being sold

through the DCS. The farmers

wholeheartedly welcome the

arrangement because of the

convenience, easy access and

credit facility. The transport of

cattle feed from producer

company to the DCS entails cost.

It is suggested to subsidize the

transport cost. The estimated

quantity that will be sold in

Malappuram district in three

years comes to 21,500 MT. An

amount of Rs 0.4/kg is the

suggested subsidy for transport

cost. The total for three years

works out to Rs 86 lakh. The

amount may be provided as

subsidy so that the price of cattle

feed can be kept low.

d. Incentives for Good Quality Milk

Consequent to the implementation

of SIQCMP the bacterial content

in raw milk has been

significantly reduced. The low

bacterial content improves the

organoleptic properties (taste and

flavor) of the milk apart from

heat stability and longer shelf

life. The products made from

fresh milk (low bacterial milk) are

specially liked by the consumers.

Both the consumer and the Milk

Union is benefited from clean

milk but not the producer. The

farmers are not compensated for

their extra effort to produce good

quality milk. As a beginning it is

proposed that the top two per

86

Malappuram District

cent of the milk may be paid an

incentive of Re 0.50 per liter. The

estimated daily procurement is

50,000 LPD and the outlay at the


5.5 lakh for three years.


Machineries


Supplied from MRCMPU and

MRDF to Farmers in Malappuram

District


1 Cattle sheds modified 228

2 Milking machines 41

3 Rubber mats 673

4 Pressure washers 16

5 Gen sets 2

6 Cow drinker 12

7 Chaff cutter - Motorized 2

Well-constructed cattle sheds are a

pre-requisite for clean milk




entry of microbes in to the udder

causing sub-clinical/clinical

mastitis. A well-constructed cattle

shed should also provide

operational ease and animal

comfort. Most of the cattle sheds

in Malappuram are a mere make

shift shelter with mud/wood floor,











is only occasional. Considering

the importance of god cattle sheds,

the Milk Union procured funds for

cattle shed modifications and

construction of new cattle sheds

under the IDDP and SIQCMP

schemes. In the past, 228 cattle

sheds have been funded under the

IDDP/SIQCMP schemes. During

the course of the field work we

found that the floor of cattle sheds

are well made using the allotted

fund. However, construction of

new cattle sheds is very expensive

in Kerala due to the high labor

cost and the cost of materials. The

budget provision of Rs 10,000/- is

87

Malappuram District

88



overall cost. Therefore, it would be

more sensible if the support could

be extended for renovation and

modification of the cattle sheds

with watering facility rather than

insisting on a new cattle shed. The

numbers suggested are given as

table 3.12.

On the face of shrinking family

size, changing status of women in

the society, and opportunities for

employment in other sectors of the

economy the availability of labor

for dairy farming is fast declining.

Hired labor for dairy farm activity

is uncommon in the district.

Hence, reducing the labor for

cattle keeping and making the

daily chores less arduous is

crucial for the very sustenance of




initiated financial support for farm

mechanization. The Union has

been providing and channeling

support since the last few years.

However, only few farmers could

be funded so far and many more

are waiting. It is suggested that

assistance may be continued and

funded under NPBBDD. The

components suggested, quantity

and the estimated cost are

presented in table 3.12.

Table 3.12 Cattle Shed and Farm Machineries Proposed under NPDD for

Malappuram District

Sl. No. Component Units No. of

Units Unit Cost

(Rs)


1 Strengthening of old sheds and constructing new sheds

No. 150 15000 22.50

2 Auto watering system No. 75 5000 3.75 Cattle Farm

Mechanization

3 Gen set No. 9 75000 6.75 4 Pressure washers No. 150 7500 11.25 5 Rubber mats No. 750 2500 18.75 Total (4.0) 1155 63.00

Malappuram District

3.9 Cattle Induction

The lack of easy access to bank

loan at affordable interest remains

a major obstacle for the new

entrants into the cattle farming. To

overcome this issue, cattle

induction schemes have been

implemented by several

development agencies in the State.

The MRCMPU too distributed 1700

heifers to 370 farmers in

Malappuram to promote cattle

rearing.

Cattle keeping in the district are a

job of economically weaker

sections of people (BPL families)

and women. It continues to be a

major source of securing daily

livelihood to them, especially

women. Therefore the following

numbers of cattle (Table 3.13) are

recommended to be supported

under NPDD.

Only BPL families will be


activity.

Fifty percent of cows and

fifty percent of heifers are

reserved for women.


allowed 75 per cent price




met in full under the

scheme.

Seventy five percent of the

insurance amount shall be

included under the scheme

and the balance as

beneficiary contribution.

Table 3.13 Cattle induction Program Proposed in Malappuram District


Units Unit Cost

(Rs)


1 Purchase of animals 120 40000 48.00 2 Purchase of heifers 120 30000 36.00 3 Transportation cost of

animals 240 2000 4.80

4 Cattle/Heifer insurance 150 2500 3.75 Total 92.55

89

Malappuram District


Laboratory in

Malappuram/Kozhikode

Dairy and MCP

Nilambur


been invested under phase I & II of

IDDP and SIQCMP schemes and

Rs 22.1 lakh by Milk Union in

upgrading the Kozhikode/MCP

Nilambur dairy lab. The lab has

facilities including equipment for

routine tests. However, the

provision requested for the central

lab is to develop and equip it. The

suggestion is to turn the Milk

Testing Lab in Kozhikode dairy

into a ‘state of the art’ lab capable

of carrying out all the mandatory

and extra mandatory tests. The

necessity to have a central lab by

resource pooling is justifiable

because:

1. As part of modernizing the

hygienic systems in the Dairy,

automatic data capturing

system, software for easy

monitoring of FSMs and a

high capacity pressure jet is

proposed in the Project.

2. While the Kozhikode dairy

has ISO: 22000 certification,

recertification and

surveillance audits and

certain equipment and

software for the maintenance

of these systems are to be

acquired. The amount

suggested is towards this

end.

Table 3.14 Establishment of Laboratories under NPDD in Malappuram

Sl. No. Item of Expenditure No. of

Units Unit Cost

(Rs)


A Capital Expenditure 1 Central milk testing lab 1 LS 70.00 2 Purchase of laboratory furniture 1 500000 5.00

3 Automatic data capturing system 1 2200000 22.00

4 High capacity pressure jet 1 100000 1.00 5 FSMS monitoring software 1 100000 1.00 B Recurring Expenditure 1 Accreditation and certification of

dairy establishments under HACCP/ISO

1 500000 5.00

Total 104.00

90

Malappuram District

3. Certification audits and

subsequent yearly survival

audits by the officials from

the accreditation body are to

be conducted in the

organization to evaluate the

food safety system. A number

of hygiene systems, trainings,

and other capital investments

are needed for the above

process.

4. In the light of stringent food

safety laws like Food Safety

and Standards Act, 2011 and

increasing awareness of the

consumers about food safety

and consumer rights, it is

essential that the

organization acquires FSMS

Certification for the entire

unit for supplying safe

products with consistent

quality.

5. The MRCMPU is upgrading

the Kozhikode dairy lab as

Central Milk Testing Lab for

the union, with modern

testing facilities so that the

dairies in the all the six

districts can do the costly

analysis of their milk samples

at a central point. At present

all the samples for antibiotic,

pesticide residues are

analysed in the approved

laboratories outside. The lab

once completed can

undertake analysis like

bacterial enumeration,

screening for pesticide and

antibiotic residues, and many

more. Both raw milk and

finished products can be

tested monthly. Internal

regulatory action can also be

taken in instances of non-

compliance with quality

standards. This lab can also

examine consumer

complaints regarding quality

of dairy products. Water

supply in the farms and

processing plant can be

screened for coliform

bacteria. The processing and

cooling water in the dairy

processing plants are

required to be tested on a

monthly basis, which can be

carried out in the proposed

lab. The Central Dairy lab

assists in ensuring that all

dairy products produced in

the units meet the high

91

Malappuram District

92

quality standards that the

consumers expect from

MILMA.


Under the SIQCMP scheme the

MRCMPU had supplied the

following articles to the farmers in

Malappuram district (Table 3.15).

Supplying cleaning agents and

sanitizers to farmers had little

impact on clean milk production.

In practice the farmers discontinue

the use of chemicals and

disinfectants once the free supply

is stopped. Hence the supply of

free detergent/chemicals for udder

/utensil cleaning is not

recommended.

Supplying stainless steel utensils

(the milking utensils and

carrying vessels) are of use to the

farmers and they wholeheartedly

welcome it. These utensils

facilitate the improvement of

quality of milk. Only few farmers

in the district are the

beneficiaries of this component

and many more are waiting for

the benefits. Therefore the

utensils and vessels may be

supplied through the DCS free of

cost under the NPDD to those

farmers who are yet to receive

them. The numbers suggested

and the financial requirement is

provided in table 3.16.

Milking machines are relevant in

today’s context as the family

labor for farmstead jobs are

steadily declining. Our field

exposure visits show that almost

all the beneficiary farmers of

earlier schemes use the

machines although continuous

service back up is essential. It is

suggested that twenty farm

Table 3.15 CMP Kits Supplied under SIQCMP Scheme in Malappuram

District

Sl. No. Description Physical Financial

(Rs in Lakh) 1 Detergents & chemicals to DCS/farmers lot 8.32 2 Stainless steel utensils to beneficiaries 39.01

3 Milking machines 93 27.9

Malappuram District

Table 3.16 CMP Kits and Milking Machines Suggested under NPDD for

Malappuram District


Units Unit Cost

(Rs) Total Cost

(Rs in Lakh) 1 Stainless steel utensil kit/

accessories 1500 400 6.0

2 Electricity operated milking machine & other equipments for hygienic milk handling at Village/Farmer level

20 55000 11.0

3 Manual milking machines 50 6000 3.00

Total (7.0) 17.25

owners owning five or more

milking cows shall be supplied

milking machines at subsidized

(75 per cent) rate under NPDD.

It is also suggested that 50 hand

operated machines shall be

supplied to the needy farmers

after making a scientific and

methodical field trial in

association with KVASU.


(TIS)



breeding, health care including




members. The TIS was a major

component under the IDDP and

SIQCMP schemes earlier

implemented in the district. An

amount of Rs 55.40 lakh have

been spent for providing various

support inputs and services under

the IDDP/SIQCMP schemes.

The TIS are under the state

domain and the line departments

have a plethora of schemes for

supporting the farm level activities.

However, as the household survey

shows the efficacy of these services

especially the AI and health care

delivery at farm gates remain poor.

Since those services are in the

domain of the State, the change in

service delivery requires policy

decisions. In order to avoid

duplication of such services (AI,

health care, homestead fodder

production) are not suggested

93

Malappuram District

under the NPDD. The components

suggested for Malappuram (Table

3.17) are those not covered by the

line departments and are the most

essential.

The LN containers are for

replacement of the ones in use. As

this component is covered under

the NPBB, separate provision is

not requested. The animal health

and breeding input camps include

a pilot program for fertility

management of dairy cows among

farmers. The programs envisage

identification of infertile cows,

providing management and


reproductive problems if any, and

documenting the information for

adoption elsewhere. It is a DCS



MRCMPU.

The conventional homestead

fodder production is a tried and

failed program in Kerala. The

reasons are many, the most

important being land

fragmentation and the declining

farming activities. On the other

hand large land holdings and

fallow land are potential sources

for fodder production – fodder as a




members at cost price. The scheme

shall be a flagship program of

NPDD.

Table 3.17 Technical Input Services Suggested in Malappuram District

under NPDD


Units Unit


(Rs in Lakh)

1 Liquid nitrogen containers 6 0 0 2 Audio visual kits etc. 1 200000 2.00 3 Animal health & breeding

input camps LS 25.00

4 Chaff cutter 36 20000 7.20 5 Commercial fodder

production 10 100000 10.00

Total 46.00

94

Malappuram District


Communication

Technology Networking The MRCMPU apart from being a

farmers’ organization is also a

multi-crore business concern. Its


widely distributed. The application

and full utilization of information

and communication technology

alone will enable the MRCMPU to

modernize their units and keep

abreast of their competitors. It is

also essential that the whole

business of MRCMPU is

transparent to their stakeholders,

the dairy farmers. Unfortunately,

the Milk Union is in the infant

stages of exploiting the benefits of

IC technology.

The current status of IC

technology use is that the dairies

are computerized and internally

networked (intranet). Few DCS are

also computerized but not

networked. The milk Union

proposes to expand the IC so that

the system will function as a client

server architecture network with a

center in each district (Palakkad,


Kannur, and Kasaragod) and a

central server system linking all


Malappuram District

Sl. No. Purchase of Computer/HHB

Unit Rate (Rs in Lakh)

Units Amount (Rs in Lakh)

1 Desktop 0.50 16 8.00 2 Laptop & Netbook 0.60 11 6.60 3 Hand held range of computers 0.30 30 9.00 4 Rack server 9.00 3 27.00 5 42 U server rack 1.00 1 1.00 6 Foldable TFT console 0.45 0.00 7 Server storage device 8.00 1 8.00 8 Tape backup 8.00 1 8.00 9 UPS for server 7.00 1 7.00 10 Weblogic server suite purchase 15.00 3 45.00 11 Oracle database 12C 15.00 1 15.00 12 Antivirus software 1.00 1 1.00 13 Hardware & networking 10.00 1 10.00 14 Software consultation charges (AMC) 5.00 1 5.00 Total 150.60

95

Malappuram District




details of the proposed system are

given as annex-1. The expenditure

is to be shared between the district

projects. The share of Malappuram

district is illustrated as table 3.18.


The training and development

program is adopted as a tool for




reduction, energy conservation

and product improvement in

MRCMPU. Apart from the Union

employees, the staff and elected

members of the DCS and the

Board are also trained on

appropriate subjects. Table 3.19

shows the numbers trained in

various categories from

Malappuram district.

The DCS staff has been trained

at the HRD Centre, Kozhikode

under MRCMPU on the relevant

subjects. The trainers included

Table 3.19 Employees and Elected Members Trained from

Malappuram District

Sl. No. Training Course


1 C D program a No. of programmes 10 b No. farmers trained 1260 c FIP- local farmers attended 927 d Management orientation (MCMOP) 80

2 Training of BMC/DCS/MCC staff 6 3 Training of DCS secretary 143 4 Training of DCS employees 119 5 Training on AI 12 6 Training of farmers on GMP/GHP 873 7 Training of farmers on AH practices 124 8 FIP 543 9 Training on marketing 22 10 Training of management committee members 83

96

Malappuram District

those from within the

organization and also experts




handled were those relevant to

the concerned groups.

The CD program includes

training in village cooperatives

followed by a visit to processing

Dairy/cattle feed plant. Farmers

are the trainees. The farmers

Induction program is normally

carried out in the HRD Centre,

Kozhikode. The Dairy Animal

Management Training to the

farmers has been undertaken in

APCOS DCS. The training





and failure stories.

The training for MRCMPU

employees is arranged by the

Head Office in the institutions of

repute in India, both inside and

outside the State. An interaction

with a test group showed that the

trainings were partially useful for

upgrading their skill and

knowledge. An amount of Rs 54.4

lakh has been spent for various

training programs in

Malappuram district under the

IDDP and CMP Phase I and II.

3.14.1 Key Issues and Suggestions

1. Future training especially

those for the middle level

employees starting from the

level of Supervisors should

be hand on training

exclusively on subjects and

skills relevant to them.

2. Farmers training should be

organized in the villages

with the support of LSG and


under MRCMPU.

3. All out and comprehensive






be initiated on a project

mode and results closely

watched and monitored.

97

Malappuram District

98

4. The Dairy Managers,




knowledge on production

and marketing management.

They should be provided

opportunity to visit centers

of excellence outside the

state.

5. The thrust of capacity



modern Management

Systems rather than on

technical subjects. They

should be exposed to what

happens in dairy sector

elsewhere in the country (eg:

Schreiber Dynamix) to

widen their vision and

outlook.

6. The FIP must be gradually

phased out.


estimated cost is given in table

3.20.


Malappuram District Large amount of Working Capital

are needed to ensure smooth and

uninterrupted supply of raw

materials, consumables, etc. for its

manufacturing and sales

operations.

Each unit shall maintain

minimum quantity of finished

products at all times to ensure

uninterrupted sales. Minimum

quantity of all raw materials,

consumables packing materials,

stores and spares, etc. are

required to maintain smooth

processing/production operation.

Table 3.20 Proposed Training Program under NPDD

Malappuram District


Units Unit

Cost (Rs)


1 CD programme 15 80000 12.0 2 Training DCS employees & elected

members Lot 15.00 3 MRCMPU employees Person 125 3000 10.00 4 Institutional skill development 70.00 Total 107.0

Malappuram District

The working capital requirement of

the Union is fluctuating




fluctuates drastically between the

flush and lean season. Union

needs huge amount of Working

Capital during lean season

(January to May) and flush season

(June, July, October, November).

This is to ensure timely milk value

to the farmers even when money is

held up in the form of inventory

like ghee, skimmed milk powder,

consumables, and cattle feed etc.


procuring milk from other states for

which payments are made in

advance. SMP is also to be stored to

take care of any possible short

supply from outside state. During

flush season funds are needed to

stock ghee, converted SMP, cream,

etc. which are produced in excess of

normal market requirements. In

addition the Milk Union is supplying

cattle feed and other inputs to the

societies on credit basis. Present

supply of cattle feed to societies is

more than 600 MT per month.

The Milk Union do not have

adequate cash reserve to meet the

expenses mentioned above. The

Union resorts to soft loans and

over drafts to avoid disruption of

milk value payments to farmers

and to maintain supplied and

services to DCS. The borrowings

attract interest which in turn

limits the farmer beneficiary

programs and investments in

dairy. In coming years the burden

is poised for increase. Hence it is

requested that an amount of Rs

285 lakh may be paid as a onetime

assistance towards working capital

assistance for Malappuram

district. The amount requested is

equal to milk value for 21 days as

shown in table 3.21.

99

Table 3.21 The Milk value due for 21 Days in Malappuram District to

Farmers

Milk Procurement (LPD)

2013-14 (Actual)

2014-15

2015-16

2016-17

Average Milk Price

(Rs.) Days

Total Milk value (Base Year) (Lakh)

Total Milk Value(EOP)

(Lakh)

0.37 0.40 0.43 0.47 28.88 21 224.40 285.05

4. KOZHIKODE DISTRICT

Contents

Executive Summary ........................................................................101

4 General Features .......................................................................105 .1

4.2 Trend in Cattle Population .........................................................106

4.3 Trend in Milk Production from Bovines ......................................107

4.4 Milk Chilling Facilities in Kozhikode District ..............................107

4.5 Milk Processing .........................................................................109

4.6 Milk Marketing ..........................................................................113

4.7 Milk Procurement ......................................................................120

4.8 Cattle Shed and Farm Machineries ............................................127

4.9 Cattle Induction ........................................................................129

4.10 ........................... Establishment of Laboratory in Kozhikode Dairy

.......................................................................................................130

4.11 Clean Milk Production ............................................................132

4.12 Technical Input Services (TIS) ..................................................134

4.13 Information and Communication Technology Networking .........135

4.14 Manpower Development...........................................................136

4.15 Working Capital - Kozhikode District .......................................139

Malappuram District

Kozhikode District

Kozhikkode District

100

Malappuram District

101

Executive Summary

The Kozhikode district is not

among the frontline dairy districts

in Kerala. Yet livestock farming is

germane to the vast majority of the

farmers in the district. The official

statistics, however, show that the

Animal Husbandry sector, both in

numbers and output, suffered

setbacks since late nineties. The

cattle numbers declined by 68 per

cent from 1996 to 2012 and in-

milk cows by 29 per cent.

Concurrent with the changes in

cattle numbers the annual milk

production also declined from 197

thousand MT in 2001-02 to 86

thousand MT in 2012-13.

The MRCMPU has one milk

processing dairy and a Product

Dairy at Kozhikode The installed

capacity of the Processing Dairy at

Kozhikode is 1.5 LLPD. During

2013-14, the dairy processed on

an average 1.0 LLPD, 34 per cent

below the installed capacity. Even

at the peak procurement level

during the year, the dairy’s

capacity utilization has only been

71 per cent. Hence there is no

urgency in expanding the

processing capacity of Kozhikode

dairy. But the dairy requires

certain critical equipments, some

as standby and some as

replacement. The suggested

additions and replacements are

estimated to cost Rs 164.00 lakh.



Kozhikode district is 3.25 LLPD.


the liquid milk segment is just 25

per cent which is not encouraging.

The Milk Union is facing fierce

competition from the competitors,

mainly from within the district,

but also from outside to a smaller

level. But the market analysis

reveals that this is not a restricting

factor to command a better market

share. The inadequate market

infrastructure is one of the

reasons for the low market share.

The dairy’s business plan may also

require some revision. Hence an

aggressive marketing strategy

supported by adequate

infrastructure is required. To

begin with, new milk parlors and

Shoppe are suggested to be opened

Kozhikode District





consumer likes and preferences

(example attractive packing for

flavored milk, ice cream, peda etc)

are also suggested. The estimated

cost on market promotion works

out to Rs 393.4 lakh.




farmers in Kozhikode district. All

the DCSs have reasonably good

milk testing facilities. All the BMC

DCSs have facility for MBRT

estimation. The field level milk

testing, however, requires further

refinement. The major constraints

identified in the expansion of milk

procurement and clean milk

production are lack of convenient

buildings for DCSs, absence of

good quality water supply facilities

with some DCSs and lack of

incentives for clean milk


feed transport. The support


activities in Kozhikode district is




one of the constraints in dairy

production in Kozhikode district.


strengthening of old cattle sheds/

construction of new ones and

supply of farm machineries and

equipments are proposed at a total

cost of Rs 81.25 lakh.



and the SC/ST women, a cattle


The NABARD norms shall be

followed for administering the

subsidies. The overall support for

240 animals is estimated to be Rs

92.55 lakh.










Kozhikode dairy lab. All these


32.00 lakh.

102

Kozhikode District

103

The farmer beneficiary programs

proposed are aimed at milk

productivity enhancement and

clean milk production. The current

proposals include animal breeding

and health cover, distribution of

stainless steel utensils, milking

machines, and commercial fodder

production for which the estimated

cost works out to Rs 61.45 lakh.

The Kozhikode needs to network

with the various units and the

DCSs for effective information



architecture network with

six centers, one in each

district (Palakkad, Malappuram,

Kozhikode, Wayanad, Kannur and

Kasaragod) and a central server

system linking all these six

centers. The data and



estimated cost of these is Rs 143.6

lakh.




Kozhikode district. The milk prices

are to be paid to the farmers

regularly which alone cost rupees

643 lakh or more every 21 days.

In addition, keeping a buffer stock

of raw and finished goods is

essential to safeguard an

uninterrupted business. This as

also several other requirements

force the milk Union to borrow

money from the open market

which causes extra burden to the

Union and the farmers. Hence it is

suggested that an amount of Rs

275 lakh shall be paid to the milk

Union as a one-time assistance for

Working Capital for Kozhikode

district.




programs were running for the

past few years. It is suggested to

scale up some of these programs.

The suggested programs would

cost Rs 57.36 lakh.

Abstract of suggested programmes

is as follows:

Kozhikode District

Component Amount (Rs in Lakh)




Cattle sheds and farm machineries 81.25


Central testing laboratory 32.00

CMP kits to farmers & tech inputs to farmers 61.45

Information and communication sharing 143.60



Total 1525.16

104

Kozhikode District

4.1 General Features The Kozhikode district came into

existence in 1957. The district

situated on the south west coast of

India is surrounded on the north

by Kannur, on the east by

Wayanad, on the south by

Malappuram districts and on the

west by the Arabian sea.

Topographically the district has

three distinct regions-the sandy

coastal belt, the rocky highlands

formed by the hilly portion of the

Western Ghats and lateritic

midland. The total geographical

area of the district is 2,33,330

hectare (2344 km2) with 30.86

lakh people (2011 census) and a

population density of 1317

persons/sq.km. Nearly 20.73 lakh

people live in urban area and half

of that only, 10.13 lakh, in rural

area (2011 census). The district is

subdivided in to three Taluks and

117 Villages, 75 Grama

Panchayats, two Municipalities

and one Municipal Corporation.

Agriculture is the major income

and employment provider in rural

sector. The major crops raised are

coconut, paddy, banana, tubers,

spices and tree crops. After crop

production livestock sector

provides the vital livelihood

support for farming community.

The livestock development

activities are supported both by

the government departments and

local self governments apart from

Milma. The department of Animal

Husbandry under GOK provide

breeding and heath care services

through one district center, two

poly clinics, 13 hospitals, 71

dispensaries and 109 insemination

centers apart from a multitude of

other functionaries like clinical

lab, RP eradication units etc. The

department of Dairy Development

under GOK provides the extension

services, promotes fodder

development and administers the

milk co-operatives, both APCOS

and others. The department has

12 dairy extension units in the

district. The district houses the

HQ of Regional Milk Union -

MRCMPU, Kozhikode Dairy a

capacity of 1.5 lakh LPD, one

product dairy for the manufacture

of special milk products and a

105

Kozhikode District

training center. The MRCMPU

apart from collection, processing

and marketing of milk and milk

products also provides cattle

breeding and extension support

through the village dairy

cooperatives. Few private agencies

are also marketing milk in the

district.

4.2 Trend in Cattle

Population The cattle population in Kozhikode

district declined between 1996 and

2012, the official statistics shows.

As is evident from fig. 4.1, both

the total and in milk cows in the

district declined during this

period. The total cattle declined by

58 per cent and cows in milk by 29

per cent between 1996 and 2012.

The in-milk buffaloes had mixed

fortune, the numbers sharply

declined from 2524 to 156 between

1996 and 2007 and there after

substantially gained between 2003

and 2012. Although the accuracy

of the data on cattle numbers is

questionable, it is certain that in

the recent past many dairy

farmers in Kozhikode district

dropped out of dairying due to

economic and other factors.

Fig 4.1 Cattle population Kozhikode District (source Cattle Census AHD GOK)

0

50000

100000

150000

200000

250000

300000

Num

bers

Total Cattle 262497 169404 133494 109500

Cows in milk 48835 38218 20289 34800

Buffalo in milk 2524 188 156 2600

1996 2003 2007 2012

106

Kozhikode District


from Bovines According to the ISS estimates


production in Kozhikode district

increased from 128 thousand MT

in 1997-98 to 196.8 thousand MT

in 2001-02 and declined to 86.2

thousand MT in 2011-12. The

trend in Kozhikode district is

contrary to that observed in other

districts. In almost all other

districts the last two to three years

witnessed sharp to moderate

increase in milk production. In

Kozhikode district the animals in

milk went up but the milk

production declined, a difficult

situation to explain. Although the

accuracy of the data is

questionable, we have to accept

these figures as we don’t have any

other authentic data on milk

production.

4.4 Milk Chilling Facilities in

Kozhikode District The milk chilling facility in

Kozhikode district during 2013-14

(other than Kozhikode dairy) was

as shown in table 4.1.

Fig 4.2 Milk Production Kozhikode district from Bovine ( source ISS AHD GOK)

0

50

100

150

200

250

Milk

'000

MT

128 196.8 115.5 104.1 86.2

97-98 2001-02 2004-05 2008-09 2011-12

107

Kozhikode District

108

Table 4.1 Milk Chilling Facility in

Kozhikode District 2013-14

Sl. No. Description Volume

(Liter) 1 BMC DCS (21) 47000

2 Milk chilling centre, Mukkom

5000

3 Milk chilling centre, Vadakara

15000

Total 67000

During 2013-14 the above facility

together chilled and supplied

55,400 liter of milk as against the

installed capacity of 67,000 liter,

(83 per cent of installed capacity),

to Dairy Kozhikode.

A large number of DCS in

Kozhikode district, 70 in March

2014, are yet to be linked to the

BMC system of milk procurement

and chilling and instead supply

milk at the Dairy. Although this is

justifiable from the point of view of

proximity, from the quality point of

view is indefensible. The quality

comparison of BMC supplied and

dock supplied milk (table 4.2)

suggest that the microbial quality

of the dock supplied milk is

significantly poor. The FSSA rules

do not permit bacterial load

beyond certain level. Therefore it is

only prudent that Kozhikode

switch over to BMC system of

collection from can collection

sooner than later. Nevertheless

considering that the implementation

of the SIQCMP is in progress and

DCS are yet to come forward to

install BMC, additional chilling

facility is not proposed under the

current phase of NPDD in

Kozhikode district.

Table 4.2 Quality Comparison of BMC and Dock Collected Milk

Sl. No. Quality Description Values

1 Av. MBRT of BMC collected milk - Minutes 115

2 Av. MBRT of milk collected at dairy dock - Minutes 60

3 Av. SPC of BMC collected milk – CFU per ml 33 lakh

4 Av. SPC of dairy dock collected milk – CFU per ml 55 lakh

5 Av. Coliforms of BMC collected milk – CFU per ml 39000

6 Av. Coliforms of BMC collected milk – CFU per ml 45000

Kozhikode District

4.5 Milk Processing

4.5.1 Processing Capacity and

Capacity Utilization

MRCMPU have two dairies in

Kozhikode district – the Kozhikode

Dairy and Product Dairy. The 150

KL Kozhikode dairy is functioning

at Kunnamangalam, 15 Km away

from Kozhikode city. Both the

dairies are ISO: 22000:2005

certified.

The Kozhikode Dairy procured at

an average 55,400 liter of milk

from BMCs during 2013-14. In

addition the nearby seventy DCS

directly supplied 10,103 liters of

room temperature milk to the

dairy dock. The internal (home

district) procurement thus

averaged 65,503 LPD during 2013-

14. In addition to home

procurement, the Milk Chilling

Centre Kottakkal in Malappuram

district supplied on an average

3000 LPD and MCP Nilambur

supplied yet another 22,700 LPD.

The dairy outsourced milk during

Vishu and Onam festival periods

and also during the lean period

during 2013-14. The quantity

averaged 4295 LPD. Hence the

internal procurement from within

the district (65,503 liter),

procurement from Malappuram

district (25,700 LPD) and 4295

Kozhikode Processing dairy

109

Kozhikode District

110

from outside state adds up to

95,498 liter LPD. That is

equivalent to 63 per cent of the

installed capacity. Theoretically

the Kozhikode Dairy is

underutilized.

4.5.2 Milk Processing

Infrastructure –

Kozhikode Dairy

The Kozhikode Dairy received

financial support of Rs 364.86

lakh from central sector schemes

for scaling up its; processing

capacity. Over the years, utilising

this and other sources the dairy

has added several facilities in

structure, equipments and

machineries. The current status of

equipments and civil structure can

be found from table 4.3.

For the current level of production

the Kozhikode dairy is self

sufficient. At present the dairy is

working below par. Malappuram,

the feeder district to Kozhikode

dairy, soon will have a new dairy,

and will take off some load from

this dairy. The table 4.4 shows the

equipments suggested under

NPDD 2014-2017.

Milk pumps and cream pumps are

proposed for spare to the original

ones. One pouch filling machine is

also proposed in the light of

increased sales and to use as spare

in case of some maintenance.

Kozhikode District

Table 4.3 Kozhikode Dairy Existing Facilities and Equipments

Sl. No. Facility/Equipment Unit Quantity

1 Production Block (Carpet Area All Floor.) Area Numbers 1.1 Service block 240 1 1.2 General go-down (including SMP stores) 350 1 1.3 Milk/curd cold storage 260 1 1.4 Butter deep freeze 50 1 1.5 Administration block (Total carpet area ) 220 1 1.6 Tray washing block 160 1 1.7 Effluent treatment plant 600 1 2 Reception Capacity Quantity

2.1 Can roller conveyor 600 cans/hr 1 2.2 Can washer 600 cans/hr 1 2.3 Dump tank 2 Kl 1 2.4 Can scrubber (SS 304) 500 L 1 2.5 Can steaming block Single can 1 3 Processing/Storage Equipment Capacity Quantity

3.1 Milk chillers 20 KLPH 1 3.2 Tri-purpose centrifuge 10 KLPH 2 3.3 Milk pump 10 KLPH 4 3.4 Un-insulated milk tank 5 KLPH 1 3.5 Horizontal milk storage tank 15 KLPH 3 3.6 Vertical milk storage tank 15KLPH 1 3.7 CIP system - Double circuit 20 KLPH 1 3.8 Pasteuriser 10 KLPH 2 3.9 Milk silo 60 KL 2 4 Fat Handling Capacity Quantity

4.1 Cream storage tank 2000 LTS 2 4.2 Cream pump 5000 LPH 1 5 Recombination Capacity Quantity

5.1 Un-insulated tank 1 6 Milk Marketing Capacity Quantity

6.1 Pouch filling machine DHG mechanical 5000 PPH 8

6.2 Pouch filling machine auto SH mechanical 2500 PPH 1 6.4 Pouch crates 10 LTR 10000 7.0 Service Equipment Capacity Quantity 7.1 Refrigeration compressors

(make/model/type/cap.) 30 TR 4 7.2 Motor for refrigeration compressors (KV) 60 HP 4 7.3 Ice bank tank 100 KL 1 7.4 Condenser pump 30 KLPH 2 7.5 Air handling unit for cold storage/deep freezer

(make/model/cap) 3 TR 6 7.6 Deep freezer room 6 TR 1

111

Kozhikode District

112

Sl. No. Facility/Equipment Unit Quantity

8 Steam Raising Plant Capacity Quantity 8.1 Boiler (oil/coal) 1 MT 1 8.2 Water softening plant 2 KLPH 1 9 Compressed Air System Capacity Quantity 91 Air compressors 50 CFM 3 10 Industrial Electrical Capacity Quantity

10.1 DG set 320 KVA 2 10.2 Transformer 315 KVA 2 11 Water Supply System Capacity Quantity

11.1 Water storage tank 50 KL 1 11.2 Water pumps 20 KLPH 1

Table 4.4 Equipments Suggested for Kozhikode Dairy

Sl. No. Machinery/Equipment Specification No. of

Units Unit Cost

(Rs) Total

Cost (Rs in Lakh)

1 Milk pump 10 KLPH 4 50000 2 2 SS pipes and fittings Lot 1 500000 5 3 Cream pumps 5 KL 1 300000 3 4 Pouch filling machines 5000 PPH 1 1000000 10 5 Boiler 2 TON 1 3500000 35 6 Refrigeration compressors with

accessories 30 TR 1 3000000 30 7 Deep freezer room 8 TR 1 3500000 35 8 Date coding devices for pouch

filling machines 60 imp/mnt 6 150000 9 9 Pet bottle sterilizer 50 btls/hr 1 3000000 30 10 Heat desiccation units for CPD 300 Kg 1 500000 5 Total 164.00

Date coding machines is proposed

as an accessory to the packing

machines since as per FSSA

Labelling requirements, clear date

coding in sachets is a necessity.

Pet bottle steriliser and heat

desiccation units are for Products

dairy in order to improve the

bottling and packaging of sterilised

flavoured milk and other heat

desiccated products like peda and

Palada mix.

By considering the sales growth in

ice cream, we have proposed a

deep freezer room and

compressors in order to handle

Kozhikode District

large volumes of ice cream with

out quality deterioration.

4.6 Milk Marketing


Marketing – Kozhikode

District

The marketing wing attached to

Kozhikode Dairy organizes the

milk marketing activities in

Kozhikode district. The Kozhikode

marketing wing is under a

Marketing Manger. He is assisted

by a Marketing Organizer who

looks after the supply

management. A Marketing Asst

looks after the market

development activities. Four Field

Staff supervise the filed level

activities among the retail outlets.

The Kozhikode marketing wing

markets liquid milk and milk

products made in Kozhikode Dairy

and Product dairies.

4.6.2 Supply Chain

The MRCMPU has more or less

similar supply chain in all the

districts. The milk and the milk

products reach the consumers

from the processing units through

the retailers designated as dealers.




wholesalers. At the close of March

2014 there were 1561 retail outlets

for milk and 51 wholesalers for

milk product distribution from

Kozhikode Dairy. A well developed

intending and distribution system

exist. The liquid milk and the

products are sold to the dealers on

advance payment. Credit facilities

were extended to the dealers on a



shown as table 4.5.

There is marginal (4 per cent in

three years) growth in sales of milk

while the growth of certain

products curd, ice cream and ghee

are substantial. The marketing

area of Kozhikode dairy has been

recently downsized and re-

organized under the other dairies

(Wayanad and Palakkad)

consequent to expansion of

production, establishment of Milk

Depots and to economize the

supply routes and that makes the

growth in milk sales under

Kozhikode dairy look smaller.

113

Kozhikode District

Table 4.5 Progress of Milk and Milk Products sale in Kozhikode District

Milk/Product 2009-10* 2013-14

Liquid milk (LPD) 88692 92246

Curd (Liter/day) 9362 14060

Ghee (Kg/month) 43161 41069

Ice cream (Liter/month) 3840 15014

Butter milk (200 ml Pkts./day) 3696 11755

Mik peda (Kg/month) 2502 4591

Sip up (Pkts./month) 213924 147785

Palada (Kg/month) 304 985

Milma plus (Bottles/month) 7309 26828 * Previous bench mark



Status

The table 4.6 shows the various

support equipments and other

logistics available in Kozhikode

district for market promotion. The

available infrastructure is in full

use.


Share of MRCMPU




standard practice/competitive


approach) shows that the market

for liquid milk in 2013-14 period

in Kozhikode district was 1.26

LLPD (Milma 1.10 plus 0.16 of the

competitors). The sales of



accuracy cannot be vouched. The

sales pertain mostly to the urban

area and therefore the rural

consumption is extra.





group shows that the per capita

consumption among rural people

is 82 ml and urban 95 ml. The

market size is calculated as shown

in table 4.7.

114

Kozhikode District

Table 4.6 Existing Marketing Infrastructure Kozhikode District March 2014 Sl. No. Particulars Quantity

1 Wholesalers for product (No.) 51 2 Retail outlets milk and products (No.) 1561 3 Milk parlors (No.) 6 4 Milma shoppe (No.) 11 5 Marketing depots/Hub (Mobile cold storage) (No.) 1 6 PUF vehicle container (3 MT) (No.) 30 7 PUF vehicle container (1.5 MT) (No.) 11 8 % milk routes using PUF vehicles for milk

distribution to retail outlets 100 9 PUF box 50 ltr. (No.) 500 10 PUF box 100 ltr. (No.) 278 11 PUF box 150 ltr. (No.) 81 12 PUF box 25 ltr. (No.) 148 13 PUF box 460 ltr. (No.) 11 14 Shipper box for ice-cream 125 15 200 liter freezers for dealers (No.) 210 16 200 liter freezers glass top for dealers (No.) 15 17 120 LTR freezer (No.) 60 18 500 ltr. freezer for dairy (No.) 15 19 Deep freezer 320 ltr. (No.) 160 20 Deep freezer 320 ltr. (Glass top) (No.) 102 21 Visi-cooler 220 ltr. (No.) 180 22 Visi-cooler 320 ltr. (No.) 139

Table 4.7 Estimation of Market Size and Market Share of Milma in

Kozhikode District 2014

Sl. No. Parameter Rural Urban Total

1 Population Kozhikode district 1013721 2072572 3086293 2 Cattle holdings % 18 3 Potential consumers (1 x 0.82) 831251 2072572 2903823 4 Proportion of people consuming milk in

Kozhikode district- as per HH survey (%) 82 95 5 Actual consumers (3 x 4/100) 681626 1968943 2650569 6 Per capita consumption HH survey 108 157 7 Household demand LPD (5 x 6/1000) 73616 309124 382740 8 Inst. demand (20% of urban demand) 0 61825 61825 9 Total demand (7+8) 73616 370949 444565 10 Milma supply 110000 Supply demand gap 2013-14 LLPD 3.25

11 Market share % 25

115

Kozhikode District


Kozhikode district is huge, 4.45

LLPD while the MRCMPU

marketed 1.1 LLPD and their

competitors 18,000 LPD adding up

to 1.3 LLPD leaving a gap of 3.15

LLPD. The survey also showed that

few, about 20 per cent, of

Kozhikode population continues to

consume milk powder. The market

share of Milma is just 25 per cent

of the market size. The entire

institutional segment is with the

private dealers from within and

outside the state. The market

situation in Kozhikode suggests

that the marketing strategies must

be geared up to improve the

market coverage in Kozhikode

district.


Recommendations

The crux of the issues in

Kozhikode district is that the

market coverage by Milma appears

to be very low. One of the reasons

is marketing infrastructure in

Kozhikode district is inadequate to

meet the growing demand and to

counter their competitors. The

Kozhikode district is under the

perpetual threat from the private

dealers. The institutional segment

is largely within the hands of

private traders. Because of falling

milk production in rural areas the

market for milk and milk products

is vertically expanding. Also the

market analysis shows that there

is wide gap in supply demand

position. At the same time milk

production is livelihood intensive

to a vast majority of marginal and

sub marginal farmers in Kozhikode

district who largely depend on

Milma to market their milk. To

take advantage of these favorable

factors and to safeguard the

interest of the milk producers in

the district further expansion of

marketing outlets and developing

an aggressive marketing strategy is

essential to protect the interest of

the milk producers in the district

for which the components

suggested are shown as table 4.8.

The table is more or less self

explanatory. Few deserving special

mention are explained below.

a. Milk Parlors


in strategic positions to attract

116

Kozhikode District

Table 4.8 Additional Marketing Infrastructure Suggested for Kozhikode

District


Unit Cost (Rs)


1.1 Milk parlor civil 15 60000 9.00 1.2 Shoppe support 6 500000 30.00 1.3 Space in super market 18 20000 3.60 1.4 Decorated mobile product vehicle 3 50000 1.50 2 Marketing Infrastructure for

Preserving/Maintaining Quality of Milk

2.1 PUF vehicle container (3 MT) 3 250000 7.50 2.2 PUF box 25 - 460 ltr. 250 LS 11.00 2.3 Shipper box for ice-cream 30 6000 1.80 2.4 200 liter freezers for dealers 90 13000 11.70 2.5 200 liter freezers glass top for

dealers 90 17000 15.30 2.6 120 LTR freezer 120 11000 13.20 2.7 500 ltr. freezer for dairy 10 23000 2.30 2.8 Deep freezer 320 ltr. 90 17000 15.30 2.9 Deep freezer 320 ltr. (Glass top) 120 20000 24.00 2.10 Visi-cooler 220 ltr. 90 20000 18.00 2.11 Visi-cooler 320 ltr. 90 30000 27.00

3 Awareness Programme for Consumers

3.1 Consumer awareness Programme & Publicity materials (Stand board, POP material, banners, etc.) LS 161.00

3.2 Freezer subsidy 15 5000 0.75 3.3 Refrigerator subsidy 15 3000 0.45

Support for milk stockists 11 200000 22.00 3.4 Canopy with eutectic freezer

subsidy 18 100000 18.00 Total 393.40



Milma products they also will act

as a media to improve the visibility

of milk and milk products. Buyers

will be served milk and milk

products in a consumer friendly

environment. All the parlors

started during Phase I IDDP are

functioning well and they provide

117

Kozhikode District

the necessary stimulus for higher

sales of Milma milk and milk

products in the district. Therefore

10 more parlors are suggested to

be established in the district.

b. Milma Shoppe

The Milma Shoppe in towns can be




increase the sales. Improving the

visibility of Milma milk and

products is important to scale up

its business. Improving the

business is very crucial to sustain

the milk production and the



under the hard conditions of

Kozhikode district. Keeping this in

mind, MRCMPU started ‘Milma

Shoppe’ in Kozhikode district.

Shoppe works as a brand shop of

Milma with all Milma products





publicize its products. It is

suggested that three more shops

shall be started in towns during

the project period.

c. PUF Bodies


infrastructures provided under the









from Kozhikode dairy has been



sizes, 50-150 liter provided at 50

per cent subsidy in the retail

outlets together with the PUF

bodied transport vehicle ensure

perfect end-to-end cold chain and

quality assurance – dairy to

consumer. Three more PUF body is

suggested as standby for

replacement of old and

unserviceable ones and to operate

new routes.


MRCMPU have effectively



method to keep the cold chain

uninterrupted from the point of

origin to the point of consumption.

118

Kozhikode District


preserve milk. The PUF boxes

supplied under the IDDP/SIQCMP

are doing good service to this end.

Our field exposure visits revealed

that the retailers wholeheartedly

welcome the PUF boxes because

they are viable alternatives for the



movable and are easy to clean. The

boxes retain the cold for about 3-4


generally sold out. It is proposed

that all retailers shall be provided

with new or additional PUF boxes


maintenance.


equipment to keep the cold of

products like flavored milk. Hence

they (the PUF boxes and Visi-

coolers) are suggested as part of

market promotion.


Promotion

MRCMPU LTD is selling products

like ghee, curd, Butter milk, Milk

Peda, Palada Mix, Flavored milk

and ice cream. The share of milk

products in the total turnover of

the Union is around 24 per cent

and is very crucial in its financial



most promising one. Unfortunately

Milma now has only less than 5

per cent market share in the ice

cream segment. The major hurdle


expansion in Kozhikode district is

the absence of user friendly and

energy saving freezers at retail

points. During IDDP Phase I,

SIQCMP the Milk Union invested

for retailer level freezers and as a

result the sales of ice cream have

increased from 3840 liter/month

in 2010-11 to 15,014/month in

2013-14. Yet there is much more

to be achieved. A three pronged



retail points with suitable size

freezers and wide publicity


The freezers of varying sizes are

additionally required. In addition

canopy fitted vehicles are

recommended for special sales in

tourist spots and prominent on

road places (table 4.8).

119

Kozhikode District

120


Publicity






from retail outlets. The consumers

get an opportunity to gather first

hand information on quality


stages of milk reception,



are exhibited in busy places for the


products. The awareness activities

are scale inadequate and are not

reaching a large segment of public

particularly those in rural areas.

Also the Kozhikode district is

facing fierce competition from

private dealers, from within and

outside the state. Sustaining and

further developing the market is

crucial to the very sustenance of

dairy production in the district.

Hence it is suggested that the

consumer awareness programs

should cross the usual styles and

enter into newer frontiers to

attract more and more consumers

in to the fold of Milma. An

aggressive consumer education


through all channels of media

shall be launched in Kozhikode

district to serve two purposes –

awareness creation among all

sections of people and market

promotion - as a tool for socio

economic improvement for which

an amount of Rs 161 lakh is

suggested.



Procurement


functions of MRCMPU. The milk

procurement in Kozhikode district

is looked after by the P&I Unit

functioning at Peringolam

Kozhikode. The Unit has


level DCS in the district to procure

milk from dairy farmers. The

organization of milk procurement

is explained as fig. 4.3.

The BMC DCS chill the milk

collected in the society and the

milk brought from Cluster DCS

before transporting to Kozhikode

Kozhikode District

Fig. 4.3 Organization of Milk Procurement in Kozhikode District

Milk Producers

Key words: BMC DCS – Dairy Cooperative Society having Bulk Milk Cooler; Cluster DCS: DCS attached to BMC for milk supply; KKD: Kozhikode

Figures in brackets - No. of DC

dairy in insulated road tankers.

The Dairy in turn process and

market the milk in towns and


and outside the district. The whole




4.7.2 Profile of DCS in

Kozhikode District A majority of the DCSs in

Kozhikode district are Anand

Pattern Cooperative Societies

(APCOS). They are producer

cooperatives managed by a

democratically elected Board of

Directors. At the close of March

2014 the district had 222 of them

as functional APCOS. In addition

there were seven non-APCOS

directly under the department

of Dairy Development.

The table 4.9 shows the profile of

the DCS in Kozhikode district.

From among the 78,973 registered

BMC DCS Non BMC DCS (201)

Cluster DCS (151)(23)

(50)

KKD DAIRY

121

Kozhikode District

Table 4.9 Profile of DCS Kozhikode District 2013-14 Sl. No. Description Quantity

1 No. of functional APCOS (31-3-2014) 222 2 No. of farmer members/DCS 356 (78973) 3 Av. number of suppliers/DCS 81.6 (18112) 4 Milk procured by DCS from farmers (LPD) 84204 5 Local sales (LPD) 18701 6 Milk supplied to milk union (LPD) 65503 7 Milk procured by DCS from farmers /DCS (LPD) 379.29 8 Av. procurement/supplier (LPD) 4.65 9 Av. procurement price paid to DCS (Rs/Kg) 28.39 10 Av. price - local sales (Rs/liter) 11 No. of DCs collected <100 LPD 8 12 No. of DCS collected 101 - 200 LPD 50 13 No. of DCS collected 201 - 300 LPD 48 14 No. of DCS collected 301 - 500 LPD 98 15 No. of DCS collected >500 LPD 20 16 No. of DCS making one time milk collection from farmers NA 17 Av. fat% 3.87 18 Av. SNF% 8.29 19 No. of BMC DCS (31-3-2014) 21 20 No. of BMCs 23 21 Installed capacity 67000 22 Av. collection through BMC in KKD. district (LPD) 55400 23 No. of DCS making supply at dairy dock 70 24 No. of DCS provided AMCU (including DDD) 96 25 No. of DCS provided analyzer only (including DDD) 99

26 No. of DCS provided EMT 121 27 No. of DCS provided EMT only (no analyzer) 80 28 No. of DCS provided Gerbers test equipment only 135 29 No. of Panchayat wards in the district 1378 30 % coverage under milk procurement 95 31 % wards having potential for milk collection 5 32 No. of DCS in own building 78 33 No. of DCS having adequate water supply arrangements 108 34 No. of DCS having standby generators 25 35 No. of DCS having Electricity 170 36 No. of Milk cans supplied during last five years 500 37 Milk spoiled (LPD) 20 38 Av. MBRT - milk supplied through BMC 115 39 Av. MBRT - milk supplied at dairy dock 60

122

Kozhikode District

milk producers in the district at an

average 18,112 (23%) alone poured

milk during 2013-14. The low

proportion is due to that the non-

producers are not removed from

the DCS roll because cumbersome

statutory procedures. The average

procurement per DCS was 379.29



18,701 LPD, account for 21 per


indicating falling milk production

and increasing demand in local

area. The rate of procurement per

DCS is reasonable in comparison

to other districts in Kerala.

However the DCS classified

according to the daily procurement

shows that 4 per cent were

collecting less than 100 LPD and

yet another 25 per cent between

100 and 200 LPD. The study

shows that those DCS are not

economically viable. The reasons

for poor procurement rate are that

they are not in ideal location, non-

potential suppliers are inducted as

members and the farmers have

other option for selling milk. The

relocation of those DCS needs to

be considered.

Out of the 222 DCS, 50 DCS

(average) supplied milk direct to

dairy during 2013-14. All others

supplied milk to the BMC DCS or

Cluster DCS. Seventy eight DCS,

35 per cent of total DCS, only

functions in own building. Others

are in rented buildings. One

hundred and seventy (76%)

have electricity and water


building, lack of electricity and

adequate water is identified to be

one of the major constraints in

maintaining good hygiene

standards of milk.

Unlike in other districts of

Malabar, 43 per cent of DCS alone

possess AMCU. Large numbers off

DCS employ EMT and LR for

quality determination.

4.7.3 Coverage

The Kozhikode district has 1378

Panchayat wards of which almost

95 per cent are under the milk

procurement coverage, the recent

survey shows. Only the 5 per cent

of the left out wards have the

potential for starting new DCS. It

is assessed.

123

Kozhikode District


Administration among DCS


pricing ie, farmers are paid on the

basis milk fat and SNF in the milk.


equipped to determine the

compositional quality, fat and





The quality assessment in DCS is

crucial in determining the milk

price for the farmer, in winning

their confidence and overall

sustenance of dairy production.

The different cooperatives in

Kozhikode district follow either of

the three known procedures of

quality assessment namely



determination), Milk-O-tester for






proof, quick and transparent. The

table 4.10 shows that 96 out of

224 APCOS possess AMCU.

Although all the majority of DCS

use AMCU for quality

determination very few DCS use

the auto analyzer (one of the

instruments of AMCU) reportedly

due to the reason that they are

slow to test. Some of units are

also reported to be erratic in fat

Table 4.10 Kozhikode District Milk Quality (average) 2013-14

Parameter Value Fat % APCOS 3.87 Fat % non-APCOS NA

SNF % APCOS 8.29 SNF % non-APCOS NA

Av. MBR time BMC DCS (Mts) 115 Av. MBR time direct DCS (Mts 60 No. of APCOS using/supplied AMCU 96 No. of APCOS using/supplied Milk O tester & LR 121


124

Kozhikode District

and SNF estimation while some

others have inconsistent results.

The inappropriate performing of

the analyzers cause hardships to

the farmers and DCS and the DCS

have discontinued its usage. Few

have changed the configuration of

the AMCU by substituting EMT

instead of analyzer. But EMT can

test only fat and not SNF for which

again lactometer must be

depended thus partially defeating

the purpose of AMCU, the

automation, transparency in milk

collection and instant print out to

farmers. AMCUs are excellent


milk procurement in village DCS.






after rectifying the practical issues

in consultation with the


Almost all BMC DCS possess the

equipments for MBRT estimation.

But not all of them have started

using.

About the quality, the procured


8.29 per cent SNF which is

lower than in other districts of

Malabar. Farmer education and

introduction of AMCU can further

improve the quality. The MBRT of

milk supplied through BMC DCS

averages 115 minutes (tested in

Kozhikode Dairy). In the years to

come both compositional and

bacterial quality will have a telling

influence on the marketability of

milk. The best way to usher in

microbial quality is to pay for

bacterial quality also. It is

suggested that an incentive for

good microbial quality may be

introduced as a beginning towards

this end.


Suggestions

Under the IDDP and SIQCMP

schemes an amount of Rs 376.75

has been invested for procurement

activities ranging from BMC to

milking vessels and capacity

building of farmers and elected

members in Kozhikode district.

The IDDP support is available for

two more years (2014-15 and

2015-16). Therefore the support

suggested for milk procurement

125

Kozhikode District

126

under the NPDD is meant to

stabilize and carry forward the

achievements already made. The

suggested components and the

estimated cost can be found from

table 4.11.

a. Buildings








and effluent disposal is a serious



new DCS building at the rate of Rs

one lakh per DCS. Eighteen DCS

are identified to have the land and

financial capacity to do this during

the project period.




important in Kozhikode district.

Most of the DCS find it difficult to

mobilize adequate capital for

investment. Hence a subsidy of

rupees sixty thousand per unit is

Table 4.11 Milk Procurement Activities Suggested under NPDD Kozhikode

District

Sl. No. Component Unit No. of

Units Unit

Cost (Rs) Total

Cost (Rs in Lakh)

1 Building construction 1500 sq.ft. 18 100000 18.00

2 Water supply system No. 10 60000 6.00 3 Bore well No. 10 25000 2.50 4 Open well No. 15 10000 1.50 5 Working capital assistance No. 3 30000 0.90 6 Aluminium cans No. 300 2500 7.5 7 Electronic milk tester No. 4 15000 0.6 8 Electric centrifuge No. 8 2500 0.2 9 Weighing scale No. 3 15000 0.45 10 Hand held billing device No. 8 10000 0.8 11 Management grant to DCS 8 30000 2.4 12 Subsidy to milk transport KG 370000 0.5 1.85 13 Subsidy to cattle feed transport MT 43000 400 172 14 Incentive to better quality milk LPD 1800 0.5 9.85 Total 224.55

Kozhikode District

suggested for ten numbers at an

estimated cost of 6.0 lakh. Water


and pumping facilities are

envisaged. In addition digging ten

bore wells at the rate of rupees

twenty five thousand per unit and

fifteen open wells at the rate of

rupees ten thousand per unit are

also suggested for Kozhikode

district.

c. Subsidy for Cattle Feed

Transport





convenience, easy access and


cattle feed from producer

companies to the DCS entails cost.

It is suggested to subsidize the


quantity sold in Kozhikode

district comes to 43,000 MT in

three years. An amount of Rs

0.4/kg is the average transport

cost. The total for three years

works out to Rs 172 lakh. The

amount may be provided as

subsidy so that the price of cattle

feed can be kept low.

d. Incentives for Good Quality

Milk

Consequent to the implementation

of SIQCMP the bacterial load of

raw milk has been reduced

significantly. The low bacterial

count improves the quality

especially the organoleptic


milk apart from heat stability and

longer shelf life. The farmers are

not compensated for their extra

effort to reduce good quality milk.

As a beginning it is proposed that

the top 2 per cent of the milk may

be paid an incentive of Re 0.50

per liter of milk. The estimated

daily procurement is 90,000 LPD

and the incentives at the


9.85 lakh in three years.


Machineries Well constructed cattle sheds are a







mastitis. A well constructed cattle

127

Kozhikode District

128


Supplied to Farmers in Kozhikode

District


1 Cattle sheds modified 289 2 Milking machines 64 3 Rubber mats 1275 4 Pressure washers 112 5 Gen sets 10 6 Cow drinker 72 7 Chaff cutter - Motorised 12


operational easiness and animal

comfort. Most of the cattle sheds

are a mere make shift shelter with

mud/wood floor, tile/asbestos/

PVC/Silpaulin roof, dark and

musky, all in one floor (no urine or

dung channel) and without any

watering arrangements. The cows

remain in this shelter most of the

time (no grazing). The hind

quarters and the udder often

remain soiled by dung and mud.

Udder and teat injury is common.

Feeding of water is only

occasional. Considering the

importance of god cattle sheds, the

Milk Union roped in funds for

cattle shed modifications and

making new cattle sheds under the

IDDP and SIQCMP schemes. In the

past 289 cattle sheds were funded

under the IDDP/SIQCMP schemes.

During the course of the field work

we found that the floor of cattle

sheds are well made using the

allotted fund. However,

construction of new cattle sheds is

very expensive in Kerala due to the

high labor cost and the cost of

materials. The budget provision of

Rs 10,000/- is thoroughly

inadequate and will not meet even

10 per cent of the overall cost.

Therefore, it would be more

sensible if the support could be

extended for renovation and



insisting for a new cattle shed. The

numbers suggested are given as

table 4.13.



the society, opportunities for





is uncommon in Kozhikode

district. Hence reducing the labor

for cattle keeping and making the

daily chores less arduous is

Kozhikode District

Table 4.13 Cattle Sheds and Farm Machineries Suggested under NPDD for

Kozhikode District


Unit Cost (Rs)


1 Strengthening of old sheds/constructing new 150 15000 22.5

2 Auto watering system 100 5000 5.00 B Cattle Farm

Mechanization 3 Gen set 30 75000 22.5 4 Pressure washers 100 7500 11.25 5 Rubber mats 800 2500 20.00 Total (4.0) 81.25








channeling support since few

years. However only few farmers

could be funded so far and many

more are on the queue. It is

suggested that the assistance may

be continued and funded under

NPBBDD. The components

suggested, quantity and the

estimated cost can be found from

the table 4.13.

4.9 Cattle Induction The lack of easy access to bank

loan at low interest remains as a

major obstacle for the new

entrants to enter in to the cattle

farming. To overcome this issue,

the cattle induction has been

resorted by several development

agencies in the state as a support

scheme. The MRCMPU too

distributed 900 heifers to 180

farmers in Kozhikode district to

promote cattle rearing.

The cattle keeping in the district is

a job of economically weaker

sections of people (BPL families)

and women. It continues to be a

major source of securing daily

livelihood to them especially

women. Therefore the following

number of cattle (table 4.14) is

recommended to be supported

under NPDD.

129

Kozhikode District

Table 4.14 Cattle Induction Program Suggested under NPDD

Kozhikode District


Units Unit Cost

(Rs) Total

Cost (Rs in Lakh)

1 Purchase of animals 120 40000 48.00 2 Purchase of heifers 120 30000 36.00 3 Transportation cost of




activity.

Fifty percent of cows and fifty

percent of heifers are reserved

for women.







Seventy five percent of

insurance amount shall be


and the balance as



Laboratory in

Kozhikode Dairy An amount of Rs 85.88 lakh had

been invested under phase I&II of

IDDP and SIQCMP schemes for

upgrading the Kozhikode dairy lab.

The lab has facilities including

equipments for routine tests.

However the equipments and

activities shown in table 4.15 are

required to be added in Kozhikode

dairy for the following reasons.

6. As part of modernizing the

hygienic systems in the dairy



monitoring of FSMs and a

high capacity pressure jet is


7. The Kozhikode dairy is

already ISO: 22000 certified

dairy by DNV. The

recertification and

surveillance audits and

certain equipments and

software for the maintenance

130

Kozhikode District

Table 4.15 Establishment of Laboratories in Kozhikode District under NPDD

Sl. No. Establishment Laboratories No. of

Units Unit

Cost (Rs) Total

Cost (Rs in Lakh)

A Capital Expenditure 1 Central milk testing lab 1 LS 20.00 2 Purchase of laboratory furniture 1 500000 5.00 3 System for quality assurance

(HACCP/ISO) including equipment/ computer hardware and software, etc. 0 0.00

4 High capacity pressure jet 1 100000 1.00 5 FSMS monitoring software 1 100000 1.00 B Recurring Expenditure 1 Accreditation and certification of dairy

establishments under HACCP/ISO 1 500000 5.00 Total 32

of these systems are to be

acquired. The amount

suggested is towards this end.

8. Certification audits and

subsequent yearly survival

audits by the officials from

the accreditation body are to

be conducted in the

organization to evaluate the

food safety system. A lot of

Hygiene systems, trainings,

and other capital investments

are needed for the above

process.

Laboratory Kozhikode

131

Kozhikode District

9. In the light of stringent food

safety laws like Food Safety

and Standards Act, 2011 and

increasing awareness of the

consumers about food safety

and consumer rights, it is

very essential that the

organization acquires FSMS

Certification for the entire

units for supplying safe

products with consistent

quality.

10. The MRCMPU is upgrading

the Kozhikode dairy lab as

Central Milk Testing Lab for

the union, with modern

testing facilities so that the

dairies in the all the six

districts can do the costly

analysis of their milk samples

in a central point. At present

the samples for antibiotic,

pesticide residues are

analysed in the outside

approved labs. The lab once

completed can undertake

analysis like bacterial

enumeration, screening for

pesticide and antibiotic

residues, etc and more. Both

raw milk and finished

products can be tested

monthly. Internal regulatory

action can also be taken in

instances of non-compliance

with quality standards. This

lab can also examine

consumer complaints

regarding quality of dairy

products. Farms and

processing plant water

supplies can be screened for

coliform bacteria. The

processing and cooling water

in the dairy processing plants

are required to be tested in

monthly basis, which can be

carried out in the proposed

lab. The Central Dairy lab

assists in ensuring all dairy

products produced in the

units meet the high quality

standards that the

consumers expect from

MILMA.

4.11 Clean Milk Production Under the CMP scheme the


articles to the farmers in

Kozhikode district (Table 4.16).

132

Kozhikode District

Table 4.16 CMP Kits Supplied under SIQCMP Scheme in Kozhikode

District

Sl. No. Article Physical Financial

(Rs in Lakh) 1 Detergents & chemicals to DCS/farmers lot 12.92

2 Stainless steel utensils to beneficiaries lot 53.41

3 Milking machines 50 25.00

The distribution of detergents and

chemicals to farmers had little

impact on clean milk production.

In practice the farmers discontinue

the use of chemicals and

disinfectants once the free supply

is stopped. Hence the supply of

free detergent/chemicals for

udder/utensil cleaning is not

recommended.

The stainless steel utensils (the

milking utensils and carrying

vessels) are of use to the farmers

and they whole heartedly welcome

the component. These utensils

facilitate to improve the initial

quality of milk. Only few farmers

in the district are the beneficiaries

of this component and many more

are on the queue. Therefore the


supplied through the DCS free of



them. The numbers suggested and

the financial requirements are

given as table 4.17.

Table 4.17 CMP Kits and Milking Machines Suggested for Kozhikode

District under NPDD


Units Unit

Cost (Rs)


1 Stainless steel utensil kit/ accessories 1500 400 6.0

2 Electricity operated milking machine & other equipments for hygienic milk handling at village/farmer level

20 55000 11.0


Total (7.0) 17.25

133

Kozhikode District


today’s context as the family labor

for farmstead jobs are steadily

declining. Our field exposure visits

shows that almost all the

beneficiary farmers of earlier

schemes carry out machine

milking although continuous


suggested that twenty farm owners

owning five or more milking cows

shall be supplied milking

machines at subsidized (75%) rate

under NPDD. It is also suggested

that fifty hand operated machines

shall be supplied to the needy

farmers after making a scientific

and methodical field trial in

association with KVASU.

4.12 Technical Input Services (TIS)

The technical input services include

support for animal breeding, health

care and prophylaxis, fodder

development and other associated

activities for the benefit of

participating farmer members. The

TIS was a major component under

the IDDP and SIQCMP schemes

earlier implemented in the district.

The major components, financial

and physical attainments in

Kozhikode district can be found

from table 4.18.

Those services are under the state


have a variety of schemes for

supporting those activities. The

efficacy of AI and health care

services at farm points, however,

are debatable, the HH survey

shows. Since some of those

services are in the state domains,

a change in the service delivery

systems requires policy decisions.

To avoid duplication, such services

(AI, health care, home stead fodder

production, etc.) are not suggested

to be included under the NPDD.

The components suggested, the

most essential ones, on a priority

basis can be found in table 4.19.

Table 4.18 Technical Input Services Achievements in Kozhikode District

under Earlier Schemes


Financial IDDP/

SIQCMP Union/

Beneficiary Total

Technical input services Lot 41.4 17.65 59.05

134

Kozhikode District

Table 4.19 Technical Input Services Suggested in Kozhikode District under

NPDD


Units Unit Cost

(Rs) Total

Cost (Rs in Lakh)

1 Liquid nitrogen containers 6 0 2 Audio visual kits etc. 1 200000 2.00 3 Animal health & breeding

input camps 180 5000 25.00 4 Chaff cutter 36 20000 7.20 5 Commercial fodder

production 10 100000 10.00 Total 44.2


replacement of the ones in use. As

this component is covered under

the NPBB separate provision is not

suggested. The animal health and

breeding input camps include a

pilot program for fertility


farmers. The program envisages

identification of infertile cows,

providing management and


reproductive problems if any,

documenting the information for

adoption elsewhere. It is a DCS



MRCMPU.

The conventional homestead fodder

production is a tried and failed

program in Kerala. The reasons are

many, the most important being

the land fragmentation and the

declining farming activities. On the

other hand large land holdings and

fallow land are potential source for

fodder production – fodder as a



marketed among the DCS members

at cost price. The scheme shall be a

flagship program of NPDD.


Communication

Technology Networking The MRCMPU apart from being a


multi crore business concern. Its’


135

Kozhikode District





modernize their units and keep

abreast with their competitors. It

is also essential that the whole



the dairy farmers. Unfortunately

the Milk Union is in the infant

stage in exploiting the benefits of

I&C technology.

The current status is that the

dairies are computerized and

internally networked (intranet).

Few DCS are also computerized

but not networked. The milk

Union proposes to expand the I&C

so that the system will function as

a client server architecture

network with Six centers at each


Kozhikode, Wayanad, Kannur,



centers. The data and information

will be made available to all the


the proposed system are given as



projects. The share of Kozhikode











employees, the staff and elected

members of the DCS and the


appropriate subjects. The table

4.21 shows the numbers trained in

various categories from Kozhikode

district.

The DCS staff has been trained at

the HRD centre, Kozhikode under

MRCMPU on the relevant subjects.

The trainers included those from

within the organization and also





concerned groups.

136

Kozhikode District

Table 4.20 Information and Communication Technology Networking- Kozhikode District

Sl. No. Components


Units Amt. (Rs in Lakh)

Capital Expenditure 1 Purchase of Computer/HHB

1.1 Desktop 0.50 14 7.00 1.2 Laptop & Netbook 0.60 11 6.60 1.3 Hand held range of computers 0.30 30 9.00 2 Purchase of Servers

2.1 Rack server 9.00 1 9.00 2.2 42 U server rack 1.00 1 1.00 2.3 Server storage device 8.00 1 8.00 2.4 Tape backup 8.00 1 8.00 2.5 UPS for server 7.00 2 14.00 3 Purchase/Installation of Software Systems

3.1 Weblogic server suite purchase 15.00 1 15.00 3.2 Oracle database 12C 15.00 1 15.00 3.3 Antivirus software 1.00 1 1.00 3.4 Software consultation charges (AMC) 5.00 1 5.00 3.5 Onsite software analysis and evaluation for

Union and DCS purchase 5.00 1 5.00 3.6 Software purchase & up-gradation charges 30.00 1 30.00 3.7 Leased line communication cost 10.00 1 10.00

Total 143.60

Table 4.21 Employees and Elected Members Trained from Kozhikode District



1 C D Program a No. of programmes 13 b No. farmers trained 1716 c FIP - Local farmers attended 1176 d Management orientation (MCMOP) 73

2 Training of BMC/DCS/MCC staff 31 3 Training of DCS Secretary 179 4 Training of DCS Employees 140 5 Training on AI 20 6 Training of farmers on GMP/ GHP 3513 7 Training of farmers on AH practices 129 8 FIP 346 9 Training on marketing 16 10 Training of management committee members 90

137

Kozhikode District

The CD program includes training

in village cooperatives followed by

a visit to processing Dairy/cattle

feed plant. Farmers are the

trainees. The farmers Induction

program is normally carried out in

the HRD Centre Kozhikode. The

Dairy Animal Management

Training to the farmers has been

under taken in APCOS DCS. The

training included lectures by

experts and visit to a few well run

farms. The farmers were given

opportunities to see for themselves

the success and failure stories.


employees is arranged by the Head

Office in the institutions of repute

in India, both inside and outside

the state. An interaction with a

test group showed that the



knowledge.


been spent for various training

programs in Kozhikode district

under the IDDP and CMP Phase I

and II.


Suggestions



employees starting from

Supervisors should be hand

on training exclusively on

subjects and skills relevant to

them.


organized in villages itself

with the support of LSG and


under MRCMPU.








and results closely watched

and monitored.







should be provided

138

Kozhikode District

139


excellence outside the state.




modern Management

Systems rather than on


should be exposed to what

happens in dairy sector

elsewhere in the country (eg.

Schreiber Dynamix) to widen

their vision and outlook.


phased out.


estimated costs are given as table

4.22.

4.15 Working Capital – Kozhikode District

The MRCMPU require large amount

towards Working Capital in

Kozhikode district for the payment

of milk value to producers,

purchase of SMP, cattle feed,

packing materials and other

expenses. The Dairy has to

maintain minimum quantity of

finished products at all times to

ensure uninterrupted sales.



materials, stores and spares, etc.

are also required to sustain smooth








lean season. During Flush

(January to May) the working

capital buffer the timely payment

of milk value to the farmers even

Table 4.22 Proposed Training Program under NPDD – Kozhikode District

Sl. No. Course Unit No. of

Units Unit

Cost (Rs)


1 CD Programme Prog. 15 80000 12.00

2 FIP Person 600 300 8.10

3 Training of DCS/BMC/MCC 0 7.86 4 Training of MRCMPU Person 45 3000 9.40

Kozhikode District

employees

5 Institutional skill development Person 45 3000 20.00

Total 57.36 while the money is held up in the

form of inventory like ghee,

skimmed milk powder,

consumables, and cattle feed, etc.


procuring milk from other states

for which payments are made in

advance. During this period

sufficient stock of SMP is to be

stored to take care of any possible

short supply of liquid milk from

outside state.

In both, flush and lean, period the

Milk Union is supplying cattle feed

and other inputs to the societies

on credit basis. Present supply of

cattle feed to societies in

Kozhikode district is more than

600 MT per month.

The milk value for 21 days in base

year (2013-14) comes to Rs 510.7

lakh at the current rate of

procurement and price. This alone

is expected to grow at 8 per cent

per annum and at the end of

2016-17 will be 643 lakh. In

addition the aforesaid inevitable

payments like that for cattle feed

and consumable are to be made.

The Milk Union does not have the

adequate cash reserve to meet all

the expenses mentioned above.

The Union resorts to soft loans

and over drafts to avoid disruption

of milk value payments to farmers

and to maintain supplies and

services to the DCS. The

borrowings attract interest which

in turn limits the farmer

beneficiary programs and

investments in dairy. In coming

years the burden is poised for

increase. Hence it is requested

that an amount of Rs 275.0 lakh

may be paid as a one-time

assistance towards working capital

assistance for Kozhikode district.

The amount suggested is far below

the milk value for 21 days as


140

Table 4.23 The Amount Required to Pay Milk Value for 21 Days in

Kozhikode District

Milk Procurement (LPD)

2013-14 (Actual)

2014-15

2015-16

2016-17

Average Milk

Price/liter (Rs)

Days Total Milk

Value (Base Year)

(Lakh)

Total Milk Value (EOP) (Lakh)

84200 90936 98211 106068 28.88 21.00 510.66 643.28

5. WAYANAD DISTRICT

Contents


5.1 General Features .......................................................................146



5.4 Milk Chilling Facilities in Wayanad District................................148

5.5 Milk Processing .........................................................................149

5.6 Milk Marketing ..........................................................................153




5.10 Establishment of Laboratories .................................................176

5.11 Clean Milk Production .............................................................176


5.13 Information and Communication Technology Networking ........179


5.15 Working Capital – Wayand District...........................................184

Kozhikode District

Wayanad District

Wayanad District

142

Kozhikode District

143

Executive Summary

Wayanad is one of the prominent

dairy districts of Kerala.

Agriculture is the major

employment and income provider

and cattle rearing are germane to

the vast majority of farmers in the

district. However, recent years

have shown that the cattle

numbers have declined by 37 per

cent from 1996 to 2012 and cows’

in-milk by 32 per cent.

Surprisingly, the annual milk

production has shown an increase

from 83 thousand MT (1997-98) to

114 thousand MT (2011-12).


dairy at Kalpetta in Wayanad

district. The installed capacity of

the dairy is fifty thousand LPD.

During 2013-14 the Dairy

processed milk at an average 1.18

LLPD that is 118 per cent above

the installed capacity. Hence, there

is an urgent need for expanding

the processing capacity of

Wayanad dairy. But considering

the expansion works in hand, the

major expansion is kept on hold

and only the unavoidable additions

are considered now. The


replacement will cost Rs 55.00

lakh.

The market survey shows that

supply demand gap of milk in

Wayanad district is 24,027 LPD

during 2013-14. The market share

of MRCMPU in the liquid milk

segment is low at 22 per cent

which is not satisfactory. The

inadequate market infrastructure

is one of the reasons for the low

market share in Wayanad. Hence,

an aggressive marketing strategy

supported by an adequate

infrastructure is required to

improve the market share of

MRCMPU. Opening of new milk






consumer preferences (example

niche products, attractive packing

for flavored milk ice cream, peda,

etc.) are also suggested. The

estimated cost of market

promotion works out to Rs 406.95

lakh.

Wayanad District


extensive net work of DCS and


farmers. All DCS have reasonably

good milk testing facilities. All

BMC DCS have facility for MBRT

estimation. The field level milk

testing, however, requires further

refinement. The major constraints

identified are lack of convenient

buildings for DCS, inadequacy of

good quality water, incentives for

clean milk production and support

for cattle feed transport. The

suggested procurement activities

in Wayanad district will cost Rs

144.73 lakh.


farm machineries are identified to

be a major constraint in milk

production in the district.

Strengthening of old cattle sheds,

constructing new cattle sheds and

supplying farm machineries and

equipments at subsidized prices

are suggested at a total cost of Rs

46.25 lakh.

In order to motivate and attract

cattle keeping among the below

poverty line (BPL) families, and

SC/ST communities a cattle


NABARD norms shall be followed

for administering the subsidies.

The overall expenditure for 240

animals is estimated to be Rs

92.55 lakh.





will eliminate duplication of

expense in all the labs. Additional

equipments and furniture are also

required in Wayanad dairy lab.

The estimated cost is Rs 54.00

lakh.




utensils, milking machines, etc at










line departments will cost Rs 46.0 lakh.

144

Wayanad District

145

The MRCMPU needs to network

the various units and DCS for


communication. The suggested

system is a client server


centers one in each district




the six centers. The data and







programs have been running for

the last few years. It is suggested

to scale down certain programs.

The scaled down programs would

cost Rs 33.45 lakh.

The Union is often on loan either

to pay the milk price or to meet the

daily expense. In order to avoid

loans/OD an amount of Rs 443.7

lakh is suggested as Working

Capital.


Wayanad shall be summed up as

follows.





Cattle shed and farm machineries 79.50


Constructing laboratories 54.00

CMP kits to farmers 17.25

Technical input services 46.00

Information and communication technology 149.40 Human resource development 33.45


Total 1522.53

Wayanad District

5.1 General Features

Wayanad district formed on 1st

November 1980 is in the mountain

plateau of Western Ghats in

Kerala. It is located in the Nilgiris

biosphere adjoining Tamil Nadu

and Karnataka states at an

altitude of 700-2100 above MSL.

The district is surrounded on the

east by Nilgiris and Mysore

districts of Tamil Nadu and

Karnataka respectively, on the

north by Coorg district of

Karnataka, on the south by

Malappuram and on the west by

Kozhikode and Kannur districts of

Kerala. Wayanad is the smallest

district in the state with an area of

2131 sq.km., 5.5 per cent of the

total geographical area of the state.

The district is subdivided into

three Taluks/blocks, has 25

Panchayats, 49 revenue Villages

and one Municipality. The district

inhabits 8.17 lakh people with a

perfectly well balanced sex ratio of

1:1 (2011 census). The density of

population 384/sq.km., against

the state average of 819/sq.km. is

one of the lowest. Agriculture is

the major contributor to the

district economy and employment

provider. About 83 per cent of the

farmers are marginal, 11 per cent

small, 5 per cent semi medium

and the rest 1 per cent medium

and large. The paddy cultivation in

the district has declined over the

years and today much of the

cultivable dry land is under high

value plantation crops; coffee and

pepper. Dairy farming is germane

to the farming system in Wayanad

complementing the crop

production and subsisting on the

natural grass, weeds, residues and

bye-products of crop production

and in turn enriching the soil

through manure and water

retention. Wayanad is one of the

very few districts in the state with

some special attributes for dairy

production.

The Department of Animal

Husbandry provides the animal

health and breeding services. The

department has one District

Veterinary Center, two Veterinary

Poly Clinics, one Regional Artificial

Insemination Center, six

Veterinary Hospitals, seventeen

Veterinary Dispensaries and

seventy four ICDP Sub Centers

apart from the District Office

146

Wayanad District

functioning at Kalpetta. The DDD

provides the dairy extension and

statutory support like auditing of

DCS. The department has the

district office at Kalpetta, three

dairy extension service units and

one quality control unit. The

MRCMPU has one Dairy Plant of

50,000 LPD and one P&I unit at

Kalpetta and one MCP at

Mananthavady. The Veterinary

college at Pookkott, apart from

Veterinary education, also provides

animal health and extension

support.

5.2 Trend in Cattle Population The official statistics show that the

cattle population in Wayanad

district declined sharply between

1996 and 2007 and then made a

marginal gain from 2007 to 2012.

As is evident from the fig. 5.1 both

the total and in-milk cows showed

similar trend during this period.

The total cattle declined by 37.2

per cent and cows in milk by 31

per cent. The in milk buffalo had

mixed fortune. The numbers

sharply declined from 2252 to 248

between 1996 and 2003 and there

after marginally gained between

2003 and 2012. Although the

accuracy of the data on cattle


certain that many dairy farmers in

Wayanad district dropped out of

dairying after 1996 due to

economic and other factors.

Fig 5.1 Cattle population Wayanad District (source Cattle Census AHD GOK)

0

20000

40000

60000

80000

100000

120000

140000

Num

bers

Total Cattle 122303 103694 65459 76777

Cows in milk 29453 30659 20289 33100

Buffalo in milk 2252 248 463 1900

1996 2003 2007 2012

147

Wayanad District

5.3 Trend in Milk Production from Bovines

According to the ISS estimates (Fig.

5.2) the annual milk production in

Wayanad district increased from

82.74 thousand MT in 1997-98 to

114.25 thousand MT in 2011-12 in

spite of an immense fall in the total

cattle population. Although the

accuracy of the data is questionable,

we have no other option but to

accept the same because no other

authentic data exists.

5.4 Milk Chilling Facilities in Wayanad District

The BMCs installed in various

DCSs of Wayanad district, apart

from the MCP at Mananthavadi

and the Wayanad Dairy at Kalpetta

provide the milk chilling facility in

the district. The position of milk

chilling facility in Wayanad during

March 2014 is shown as table 5.1.

Since most of the milk collected

from the BMC’s in the

Mananthavadi area is being

transferred to Kannur dairy, the

Manathavadi chilling station is

now functioning as a pooling

station for the chilled milk from

the neighboring BMCs in order to

reduce the transportation cost and

other over heads. Wayanad is the

only district among all the districts

Fig 5.2 Milk Production from Bovines in Wayanad district ( source ISS AHD GOK)

0

20

40

60

80

100

120

Milk

'000

MT

82.74 92.36 71.02 101.43 114.25

97-98 2001-02 2004-05 2008-09 2011-12

148

Wayanad District

149

in Malabar, collecting chilled milk

exclusively through BMCs. Also

there are only a few cluster DCSs

in comparison to other districts.

As there is unused installed

capacity among BMCs in Wayanad

district, the addition of chilling

capacity during the current phase

of NPDD is not recommended.

5.5 Milk Processing

5.5.1 Processing Capacity and Capacity Utilization

Wayanad is one of the frontline

dairy districts in the state. The

surplus milk from the district is

processed in Wayanad Dairy and

sold in Wayanad, Kannur,

Kozhikode and Malappuram

districts. The Dairy started

functioning in April 2009 with a

capacity of 50,000 LPD. This dairy

is located at Chuzhali, about 3 Km

away from Kalpetta town. The

procurement area of the Dairy is

Wayanad district. The average

milk procurement in 2013-14 was

1,20,900 LPD, 242 per cent of the

installed capacity. Out of the

1,20,900 litre of procured milk in

Wayanad Dairy, 1,20,000 litre,

almost 100 per cent was collected

through BMCs in chilled form.

The major products of Wayanad

Dairy are liquid milk (three

variants), curd, ghee and butter.

5.5.2 Milk Processing Infrastructure – Wayanad Dairy

AS stated above the Wayanad

dairy is one of the show pieces of

Table 5.1 Milk Chilling Facility in Wayanad District March 2014

Sl. No. Description Value

1 No. of BMCs commissioned up to March 2014 45 2 No. of DCS in which BMCs are positioned (BMC DCS) 32 3 No. of cluster DCS attached to BMCs 14 4 Total installed capacity of BMCs ltr. 1, 81, 000 5 Av. milk collected through BMC 2013-14 LPD 1, 07, 500 6 % capacity utilization 59 7 Av. MBRT of BMC collected milk - Minutes 176 8 Av. SPC of BMC collected milk – CFU per ml 302813 9 Av. Coliforms of BMC collected milk – CFU per ml 3100 10 No. of milk chilling plants (Mananthavadi) 1

Wayanad District

Table 5.2 Details of Investments in Wayanad Dairy after Commissioning

Sl. No. Scheme Amount

(Rs in Lakh) Major Additions

1 IDDP I & II 167.83 Production and service block expansion

2 RSVY 738.139 Wayanad dairy expansion + butter project

MRCMPU. The facilities in

Wayanad dairy were upgraded

after commissioning utilizing the

funds as shown in table 5.2.

The Wayanad Dairy is making a

variety of products apart from

processing milk. This dairy is the

second biggest ‘Profit Centre’ of

MRCMPU. The processing

achievements during 2014-15 from

Wayanad Dairy are shown in table

5.3.

Table 5.3 Milk and Milk Products

Manufactured in Wayanad Dairy

during 2013-14

Sl. No. Product Av. Qty.

2013-14 1 Liquid milk LPD 83374 2 Curd Kg PD 15754 3 Ghee Kg/month 1079 4 Butter Kg/month

(March only) 9010

5 Butter milk packets/month

8147

6 Sip up No./month 4193 7 Paneer Kg/month 715

150

Wayanad District

In addition to the above standard

products and packing, the dairy

also made ‘Frozen Milk’ for Cool

Bars and Five liter curd and Five

liter Standard milk (4.5% Fat,

8.5% SNF) for bulk consumers

mainly hotels and institutions.

The status of major processing

equipments can be found in table

5.4.

The study shows that the

equipments and the space are

adequate for the present level of

activities. All the equipments are

in full use. A few critical

equipments requiring addition are

shown in table 5.5.

Milk pumps and cream pumps are

proposed as spare to the original

ones since the dairy is handling

more than its processing capacity.

One pouch filling machine is also

proposed in the light of increased

sales and to use as spare during

maintenance.

Recently Wayanad dairy has

started butter production. In order

to handle butter in large volumes,

a deep freezer room is essential.

Table 5.4 Wayanad Dairy Existing Facilities and Equipments

Sl. No. Facility/Equipment Specification Quantity

1 Production Block (Carpet Area) 1.1 Service block 100 1

1.2 General go-down (including SMP stores) 160 1

1.3 Milk/Curd cold storage 200 1

1.4 Butter deep freeze 0 1

1.5 Administration block (Total carpet area) 120 1

1.6 Workers amenities block 100 1

1.7 Tray washing block 160 1

1.8 Effluent treatment plant 600 1

2 Reception Capacity Quantity 2.1 Can roller conveyor 600 cans/hr 1

2.2 Can scrubber (SS 304) 500/hr 2

2.3 Can steaming block Single can 1

151

Wayanad District

Sl. No. Facility/Equipment Specification Quantity

3 Processing/Storage Equipment Capacity Quantity 3.1 Milk chillers 20 KLPH 1 3.2 Tri-purpose centrifuge 10 KLPH 1 3.3 Milk pump 10 KLPH 4 3.4 Un-insulated milk tank 5 KLPH 1 3.5 Horizontal milk storage tank 15 KLPH 3 3.6 Vertical milk storage tank 10 KLPH 1 3.7 CIP system- Double circuit 20 KLPH 1 3.8 Pasteurizer 10 KLPH 1 3.9 Milk silo 60 KL 1 4 Fat Handling Capacity Quantity

4.1 Sour milk separator 500 LPH 1 4.2 Cream storage tank 2000 LTR 3 4.3 Cream pump 5000 LPH 1 4.4 Ghee boiler 2000 LTR 1 4.5 Ghee settling tank 3000 LTR 3 4.6 Ghee storage tank 3000 LTR 3 4.7 Ghee pump 3000 LPH 1 4.8 Ghee clarifier 2000 LPH 1 4.9 Cream transfer tank 1000 LTR 2 5 Recombination Capacity Quantity

5.1 Homogeniser 10 KLPH 1 6 Milk Marketing

6.1 Pouch filling machine dhg. mechanical 5000 PPH 8 6.2 Pouch filling machine auto sh. mechanical 2500 PPH 1 6.3 Milk pumps 10000 LPH 4 6.4 Date coding device for pouch filling

machines 60 IMP/Mnt 10

7 Service Equipment Capacity Quantity 7.1 Refrigeration compressors

(Make/Model/Type/Cap.) 20 TR 3 7.2 Ice bank tank 100 KL 1 8 Steam Raising Plant Capacity Quantity

8.1 Boiler (Oil/Coal) 1 MT 1 9 Compressed Air System Capacity Quantity

9.1 Air compressors 50 CFM 2 9.2 Industrial electrical 9.3 DG set 250 KVA 2 9.4 Transformer 315 KVA 1

152

Wayanad District

153

Table 5.5 Additional Equipments Suggested for Wayanad Dairy under

NPDD (2014-17)

Sl. No. Equipments Specification No. of

Units Unit

Cost (Rs) Total

Cost (Rs in Lakh)

1 Milk pump 10 KLPH 4 50000 2.00 2 SS pipes and fittings Lot 1 500000 5.00 3 Cream pumps 5 KL 1 300000 3.00 4 Pouch filling machines 5000 PPH 1 1000000 10.00 5 Deep freezer room 8 TR 1 3500000 35.00

Total 55.00

5.6 Milk Marketing

5.6.1 Introduction


functions of MRCMPU. This

chapter provides an overview of

the organization of marketing

activities of MRCMPU in Wayanad

district, the infrastructure

available, the sales achievements

of liquid milk and milk products

during 2013-14, and the key

issues, problems and


them.


The milk marketing in Wayanad

district is looked after by the

marketing wing in Wayanad dairy

headed by an Asst Manager

(Marketing). Wayanad district

being perpetually surplus in milk

production and the local market

being limited, depends on the

neighboring districts to sell milk.

The Dairy have three depots

(refrigerated Reefers) as shown

below.

1. Koothuparamb in Kannur

District

2. Ulliyeri in Kozhikode District

3. Kottackal in Malappuram

District

Each depot has a refrigerated

reefer managed by a Depot

Manager and assisted by two field

staff. The depot receives packed

milk from Wayanad dairy in bulk

vehicles capable of transporting

12000 liter in one trip. The depots

operate supply routes using

smaller vehicles to link the sales

outlets. This calls for additional

effort and extra expense, but is

Wayanad District

rewarding. The depot-wise sales

figures are shown in table 5.6.

The Wayanad district faces

constant threat of influx of milk

from the neighboring states of

Karnataka and Tamil Nadu where

the procurement and selling prices

of milk are lower. In addition,

several DCSs in the district make

direct milk marketing locally.

Hence the marketing of milk from

Wayanad district demands extra

care and attention.

Among other factors that would

help successful milk marketing are

the availability of adequate

marketing personnel,

infrastructure, advertisement and

publicity. Earlier, the CSS

schemes IDDP and SIQCMP

provided financial support for both

infra structure creation and

consumer canvassing through

awareness build up. To this end,

several programs were carried out.

The amount spent on milk

marketing in Wayanad on these

programs can be seen in table 5.6.

The IDDP phase II is continuing

and will be completed only in

2015-16.

5.6.3 Supply Chain











2014, there were 1517 retail

outlets and 21 wholesalers for milk

Products and one distributor for

milk in Wayanad district. A well

Table 5.6 Milk Marketing Activities Carried Out in Wayanad District under

CSS

Sl. No. Scheme Period Amount spent

(Rs in Lakh) Major Physical Sectors

1 IDDP Phase I &II 71.08

Puff boxes, outlet renovation, freezers, cold storage at towns.

2 SIQ CMP Phase II 43 Strengthening of marketing infrastructure

154

Wayanad District

developed intending and

distribution system exist. The



payment. Credit facilities were


limited scale. The details of milk

and milk products sold during

2013-14 are shown in table 5.7.

The volume of milk and milk

products sold in Wayanad district

is much smaller than the off take

by the Depots (table 5.7). The

Dairy sends processed milk to

Koothuparamba depot in Kannur

district, Ulliyery depot in

Kozhikode District and Nilambur

and Kottakkal depots in

Malappuram district in large

trucks. As mentioned in the

forgoing paragraphs, the Depots

organize re-distribution.

Table 5.7 Milk and Milk Products Sold from Wayanad Dairy

Sl. No. Item Dairy Total

Average Wayanad Kottakkal Koothu-paramba Ulliyeri

1 Milk (LPD) 78378 8327 22636 29265 18151 2 Curd (LPD) 15501 1802 5628 2988 5082 3 Cup curd (Kg) Month 694 75 479 60 80 4 B. milk (LPD) 1559 219 577 472 290 5 Ghee (Kg) Month 28728 20510 1093 2959 4166 6 Peda (Kg) Month 2458 438 831 636 554 7 Milma plus

(Bottles)/Month 6888 1130 2901 766 2092 8 Ice cream (LTRS) Month 10001 2552 2685 2388 2376 9 Butter (KG) Month 2416 836 898 408 274 10 Water (Bottles) Month 3010 1116 537 592 766 11 Sip up (LTRS) Month 2305 973 347 435 550 12 Chocolate (KG) Month 1406 438 305 339 324 13 Dairy whitener (KG)

Month 504 290 178 8 28 14 Mango drink (ltr.) Month 3308 1112 818 635 743 15 Palada mix (Kg) Month 367 70 82 32 184 16 Paneer (KG) Month 113 58 22 12 20 17 Gulab jamun tub (Kg)

Month 51 5 23 8 15 18 Cream (Month) 6429 6429 0 0 0

155

Wayanad District


Share of MRCMPU


the total volume of a gien market.


standard practice, competitive


approach), shows that the market


was 13,000 LPD (Milma plus the

competitors). This indeed is a very

conservative figure and pertains

mostly to the urban market. Added

to this is the rural consumption.

With the sharp fall in cattle

numbers and cattle holdings in

rural areas, the rural market for

milk is fast expanding. The market

size in rural areas will be several

folds more than the urban market

in Wayanad district.

Yet another way of understanding

the market is by the end user

purchase method. The latest

Census (2011) shows the following.

Urban population Wayanad district - 31580

Rural population - 785840

The HH survey conducted as a

part of this study shows that 88

per cent of the urban population

and 78 per cent of the rural

population in Wayanad consume

milk daily. The average per capita

consumption in rural areas is 110

ml and that in urban area is 120

ml. The survey shows that nearly

156

Wayanad District

157

50 per cent households in the

rural areas own cows and they do

not buy any milk especially if they

have a lactating cow in the house.

Hence the market size calculated

is shown as table 5.8.


the rate of 8327 LPD. This works

out to 22 per cent of the market


the supports under the NPDD

should all be geared up to improve

the market coverage.



Status

The table 5.9 shows the facilities

available in Wayanad district for

market promotion.

The milk parlors are positioned in

strategic positions to attract more

consumers to Milma products.

Apart from selling the Milma

products they also act as a media

to improve the visibility of milk

and milk products. The Milma

Shoppe in towns can be




increase the sales.


infrastructure provided under the






Table 5.8 Calculated Market Share in Wayanad District 2013-14

Sl. No. Particulars Rural Urban Total

1 Population Wayanad district 785840 31580 817420 2 Cattle holdings % 50 0 50 3 Potential consumers (1/0.5) 392920 31580 424500 4 Actual consumers as per HH survey (%) 78 88 5 Actual consumers (3x4/100) 306478 27790 334268 6 Per capita consumption HH survey 110 120 7 Household demand LPD (5 x 6) 33713 3335 37047 8 Inst Demand (20% of urban demand) 0 667 667 9 Total demand (7 + 8) 33713 4002 37714 10 Milma supply 8327 11 Market share % 22

Wayanad District

Table 5.9 Existing Market Promotion Amenities in Wayanad

as on 31-3-2014 Sl. No. Facility/Accessories Quantity

1 Wholesalers for milk (No.) Nil 2 Wholesalers for product (No.) 21 3 Distributors for milk (No.) 1 4 Retail outlets milk and products (No.) 1517 5 Milk parlors (No.) 2 6 Milma shoppe (No.) 1 7 % milk routes using PUF vehicles for milk

distribution to retail outlets 100 8 PUF box 50 ltr. (No.) 205 9 PUF box 100 ltr. (No.) 107 10 PUF box 150 ltr. (No.) 24 11 PUF box 25 ltr. (No.) 152 12 PUF box 460 ltr. (No.) 9 13 Shipper box for ice cream 40 14 200 liter freezers for dealers (No.) 110 15 200 liter freezers Glass top for dealers (No.) 5 16 120 LTR freezer (No.) 75 17 500 ltr. freezer for dairy (No.) 53 18 Deep freezer 320 ltr. (No.) 124 19 Deep freezer 320 ltr. (Glass top) (No.) 0 20 Visi-cooler 220 ltr. (No.) 108 21 Visi-cooler 320 ltr. (No.) 31




from Wayanad dairy was switched

over to PUF insulated vehicles. The


liter provided at 50 per cent


together with the PUF bodied

transport vehicles ensured perfect

end-to-end cold chain and quality

assurance – dairy to consumer.



welcomed the PUF boxes because

they were proved to be viable

alternatives for the energy


less space, are easily movable and

are easy to clean. The boxes retain

low temperatures for about 3-4


generally sold out.

158

Wayanad District

Freezers, 200 and 120 liter

capacity, are provided to the

retailers at a subsidized price of Rs

5000/- a piece for storing frozen

Milma products. Apart from ice

cream, milk is also sometimes

stored in freezer cabins. There are

many takers for the freezers and

almost all of them are in use, field

exposure visits and surveys reveal.

The Visi-coolers are provided at

subsidized price to store products

like flavored milk, cup curd, etc.

The market in Wayanad district is

under the perpetual threat from

private dealers. Also, some of the

DCSs in Wayanad market sell milk

within and outside the district.

The market analysis shows that

there is a wide gap between

demand and supply. To take

advantage of these favorable

factors and to safeguard the

interest of the milk producers in

the district, further expansion of

the marketing outlets and

developing an aggressive

marketing strategy are essential to

protect the interest of the milk

producers in the district (sales

outlets in border areas, out side

state parlors, parlors in Various

tourist spots, ice cream Canopy

vehicles in interior routes, etc.).

159

Wayanad District

5.6.6 Consumer Awareness

Programs







also get an opportunity to gather

first hand information on quality


stages of milk reception, processing

and marketing. Advertisement

boards and banners are exhibited

in busy places for popularising the

milk and milk products. These

popularization activities are

however scale inadequate and are

not reaching a large segment of the

public, particularly those in rural

areas. Hence it is suggested that

the consumer awareness programs

and the publicity methods should

cross the usual styles and enter

into newer frontiers to attract more

and more consumers in to the fold

of Milma.


Recommendations

The crux of the issues in Wayanad

is that the district produces more

and consumes less. Hence the

MRCMPU has to market the milk

in the neighboring districts –

Malappuram, Kozhikode and

Kannur. The long distance

transport, multi-point stocking

and re-distribution and timely

supply to consumers without

losing the quality are not only

challenging but also invite extra

expenses. Added to that is the

competition from marketing

agencies who do not have any long

term bondage with to the farmers.

The private dealers and certain

cooperative organizations are the

real threats to Milma. They always

try to spread rumors about the

quality of Milma milk, provide

higher sales commission and

incentives to the dealers and even

provide flexible credit. At the same

time, milk production in Wayanad

is livelihood intensive to a vast

majority of marginal and sub

marginal farmers who depend on

Milma to market their milk. Hence

the marketing activities in

Wayanad are very crucial to the

Milk Union as well as the farmers.

The existing marketing

infrastructure of MRCMPU is

160

Wayanad District

161

inadequate to meet the challenge.

Hence MRCMPU has to scale up

their marketing activities in

Wayanad district for which the

facilities and equipments

suggested are shown in table 5.10.

Table 5.10 The Suggested Infrastructure under NPDD for Marketing in

Wayanad District


Unit Cost (Rs)


1.1 Milk parlor civil 6 50000 3.00 1.2 Milk parlor equipments 6 10000 0.60 1.3 Shoppe support 1 500000 5.00 1.4 Space in super market 9 20000 1.80 1.5 Decorated mobile product vehicle 3 50000 1.50 2 Market Infrastructure

2.1 PUF vehicle container (3 MT) 6 250000 15.00 2.2 PUF box 50 ltr. 210 2000 4.20 2.3 PUF box 100 ltr. 120 4000 4.80 2.4 PUF box 150 ltr. 120 6500 7.80 2.5 PUF box 25 ltr. 30 1300 0.39 2.6 PUF box 460 ltr. 30 15000 4.50 2.7 Shipper box for ice cream 30 6000 1.80 2.8 200 liter freezers for dealers 90 13000 11.70 2.9 200 liter freezers glass top for

dealers 90 17000 15.30 2.10 120 LTR freezer 120 11000 13.20 2.11 500 liter freezer for dairy 12 23000 2.76 2.12 Deep freezer 320 liter 90 17000 15.30 2.13 Deep freezer 320 ltr. (Glass top) 150 20000 30.00 2.14 Visi-cooler 220 liter 120 20000 24.00 2.15 Visi-cooler 320 liter 90 30000 27.00 2.16 Canopy with eutectic freezer

subsidy 15 100000 15.00 3 Consumer Awareness Programme

and Publicity Materials LS 125.00

3.1 ACP with LED board 120 20000 24.00 4 Freezer subsidy 15 5000 0.75 5 Refrigerator subsidy 15 3000 0.45 6 Rain coats 300 700 2.10 7 Support to milk stockists (RD) 9 200000 18.00

8 Dealer club meet/orientation/ incentive 8 25000 2.00

9 Market research 30 30.00 Total (2.0.0) 406.95

Wayanad District

Most of the suggested articles are

commonly used for market

promotion. A few deserving special

mention are:

a. Milk Parlors

Milk Parlors were established in

prominent public places during

the first Phase of IDDP to promote

the sale of milk and milk products.

Buyers are served milk and milk


environment. All parlors in

Wayanad are functioning well and

publicize the Milma milk and milk

products in the district. But the

existing numbers are scale

inadequate. Therefore six more

parlors are recommended to be

established in Wayanad district at

an estimated cost of 3.6 lakh.

b. Milma Shoppe

The purpose of Milma Shoppe is to

increase the sale of milk and milk

and products apart from improving

their visibility to generate income

for the resource poor milk

producers in Wayanad district.

Keeping this in mind, MRCMPU

started ‘Milma Shoppe’ in

Wayanad district. Shoppe sells all

Milma products and they work

round the clock. The shoppe

already established is found to be

an effective tool to publicize milk

and milk products. It is suggested

that one more Milma Shoppe be

162

Wayanad District

started in one of the towns in

Wayanad district during the

project period (cost Rs 5.0 lakh).

c. PUF Bodies

In order to give good quality milk


consumers, MRCMPU Ltd started

investing in PUF insulated vehicles

and PUF Boxes. At present the

entire processed milk is

transported in PUF insulated

vehicles. Six more PUF bodies are

suggested as standby for

replacement of that in use and for

operation of new routes (Cost Rs

15.0 lakh).


MRCMPU has effectively

demonstrated that PUF Boxes are






preserve milk. Moreover freezers

are capital intensive. The PUF

boxes supplied under the

IDDP/SIQCMP are found to

substitute the freezers for cold

preservation of milk. Hence it is

proposed that all the retailers shall

be provided with new or additional

PUF boxes to achieve 100 per cent

cold chain maintenance (Cost Rs

21.69 lakh).


equipment to keep the quality of

products like flavored milk. Hence,

a few of them are suggested as

part of market promotion.


Promotion

MRCMPU Ltd. is selling products


peda, Palada mix, Flavored milk

and Ice cream. The share of milk



and is very crucial in its financial




Milma now commands only less

than 5 per cent market share in

the ice cream segment. The major

hurdle identified against the

market expansion in Wayanad

district is the absence of user


at retail points. During IDDP

Phase I and SIQCMP, the Milk

Union supplied few freezers at

163

Wayanad District

subsidized price and the sales of

ice cream increased from 996 LPD

in 2010-11 to 3894 liter/month in

2013-14. A three pronged market

intervention – appoint more whole

sale dealers, equip all retail points

with freezers and wide publicity

through TV channels, is suggested.

In addition, canopy fitted vehicles

are recommended for special sales

in tourist spots and prominent on

road places (Cost Rs 85.5 lakh).


Publicity

Wayanad district is a hot spot for

tourism. Effective advertisement

and building up consumer

awareness on milk and milk

consumption can promote the sale

of Milma products among the

general public. Sustaining and

further developing the market is

crucial to the very sustenance of

milk production in the district as

well as the state – for food security

and for livelihood support. Due to

inadequate finance, much more is

needed to be done in this

direction. Therefore it is strongly

recommended that an aggressive

consumer education cum

popularization program through all

channels of media shall be

launched in Wayanad district to

serve two purposes – awareness

creation among all sections of

people and market promotion. An

amount of Rs 125 lakh is

suggested for this activity in

Wayanad district (Cost Rs 125

lakh).

g. Market Research

Market research supported by

market survey should form an

integral part of the market

development. The surveys should

bring forward the consumer

preferences and perceptions and

the dairy/market wing should

make suitable adjustments in

production line and marketing. It

is well known that innovative

changes are the key to capture

new markets. Packing and

positioning the milk and milk

products can go a long way in

market promotion. Unfortunately

this is not given due attention in

MRCMPU. It is suggested that a

small provision be made for

market research, Rs 30 lakh in the

proposed NPDD project (Rs 30

lakh).

164

Wayanad District

165

5.7 Milk Procurement The BMC DCS means a DCS in

which the BMC is installed,

Cluster DCS supplies milk to a

BMC, and the direct DCS means a

DCS which supplies milk directly

to the processing dairy. The milk

producer delivers the household

surplus milk either in the BMC

DCS, Cluster DCS or the Direct

DCS depending on his

accessibility. The Cluster DCS in


nearest BMC. The direct DCS

supplies milk direct to the dairy

5.7.1 Organization



procurement in Wayanad district

is being looked after by the P&I

Unit functioning in Wayanad

dairy. The Milk Union has


level DCSs in the district to

procure the surplus milk from

dairy farmers. The organization of

milk procurement is explained in

fig. 5.3.

Fig. 5.3 Organization of Milk Procurement in Wayanad District

Key words: BMC DCS – Dairy Cooperative Society having Bulk Milk Cooler; Cluster DCS: DCS attached to BMC for milk supply; WYND: Wayanad.

Figures in brackets – number of DCS

Cluster DCS

Milk Producers

Non BMC DCS BMC DCS (32) Milk Chilling Plants

(2) Non cluster DCS

WYND DAIRY

Wayanad District

dock. BMC DCS chills the milk

before transporting to Wayanad

dairy in insulated road tankers.

The Dairy in turn processes the

milk and markets in towns and


and outside the district. The whole



orchestrated and executed.

5.7.2 Profile of DCSs in

Wayanad District


Wayanad district is Anand Pattern

Co-operative Societies (APCOS).

They are producer cooperatives

managed by a democratically

elected Management Committee.

At the close of March 2014 the

district had 53 functional APCOS.

In addition, one non-APCOS

existed directly under the control

of the department of Dairy

Development.


DCSs in Wayanad district. From

amongst the 53,040 registered

milk producers in the district, on

an average 18,313 (34.5%) alone

supplied milk to the DCS in the

district during 2013-14. The

proportion supplying milk is low

because the non-producers are not

removed from the DCS roll due to

the cumbersome mandatory





19,217 LPD, accounted for 14 per


indicating that a majority of the

farmers are producers and the

milk buyers are only a few. The

rate of procurement per DCS is

excellent in comparison to the

other districts in Kerala. The DCSs

classified according to the daily

collection shows that a majority of

the DCSs collect more than 500

LPD and are extremely viable. The

DCSs in Wayanad, unlike in other

districts, command larger areas

and have several sub centers to

collect milk. Out of the 53 DCSs,

none supplied milk direct to the

dairy during 2013-14. Eighty five

percent of the DCSs function in

own buildings. Others are in

rented buildings. Almost all of

them have electricity and water

supply arrangements.

166

Wayanad District

Table 5.11 The Profile of DCSs in Wayanad District


1 No. of functional APCOS (31-3-2014) 53 2 No. of farmer members/DCS 1000 (53040) 3 Av. number of suppliers/DCS 345 (18313) 4 Milk procured from farmers in DCS (LPD) 140206 5 Local sales (LPD) 19217 6 Milk supplied to milk union from DCS (LPD) 120989 7 Av. procurement/DCS (LPD) 2645 8 Av. procurement/supplier (LPD) 7.6 9 Av. procurement price paid to DCS (Rs/Kg) 28.48 10 No. of DCs collected <100 LPD 0 11 No. of DCS collected 101 - 200 LPD 1 12 No. of DCS collected 201 - 300 LPD 0 13 No. of DCS collected 301 - 500 LPD 2 14 No. of DCS collected >500 LPD 50 15 Av. fat% 3.9 16 Av. SNF% 8.29 17 No. of BMC DCS (31-3-2014) 32 18 No. of BMCs 45 19 Installed capacity 181000 20 Av. collection through BMCs (LPD) 120000 21 No. of DCSs which supplied at dairy dock 0 22 No. of DCSs provided AMCUs (including DDD) 53 23 No. of DCSs provided analyzer only (including

DDD) 15 24 No. of DCSs provided EMTs 53 25 No. of DCSs provided EMT only ( no analyzer) 53 26 No. of DCS provided Gerbers test equipment

only NA 27 No. of Panchayat wards in the district 459 28 % coverage under milk procurement 75 29 % wards having potential for milk collection NA 30 No. of DCSs having own building 45 31 No. of DCSs having adequate water supply

arrangements 53 32 No. of DCSs having standby generators 30 33 No. of DCSs having Electricity 51 34 No. of milk cans supplied during last five years 395 35 Quantity of milk spoiled (LPD) 4 36 Av. MBRT - milk supplied through BMC 176 37 Av. MBRT - milk supplied at dairy dock 0

167

Wayanad District


Malabar, all the DCSs possess

AMCUs for milk procurement and

quality determination.

5.7.3 Coverage

The recent survey shows that the

Wayanad district has 459

Panchayat wards in 53 Panchayats

of which almost 75 per cent are

under milk procurement coverage.

The assessment shows that only

less than 5 per cent of the left out


starting new DCSs.


Administration of Raw Milk

The MRCMPU follows the two axis

pricing system ie, farmers are paid

on the basis milk fat and SNF in

the milk. The table 5.12 shows the

average fat and SNF value of milk

collected from the farmers in

Wayanad district during 2013-14.


equipped to determine the


SNF. Milk from each supplier is

tested for fat and SNF. A few

DCSs are also equipped to detect

added preservatives, adulterants

and neutralizers apart from MBRT

estimations. The DCSs have

AMCUs, Milk Analyzers, EMTs and

also Gerber’s fat test equipment.

Different DCSs use different

equipments for quality

determination. AMCUs are the best

of all.

Table 5.12 Quality of Milk Collected from Farmers

in Wayanad District 2013-14

Parameter Values Fat % APCOS 3.99 Fat % non-APCOS NA SNF % APCOS 8.3 SNF % non-APCOS NA Av. MBR time BMC DCS (Mts) 176 Av. MBR time direct DCS (Mts) NA No. of APCOS using/ supplied AMCU 53 No. of APCOS using/ supplied Milk O tester & LR 53

No. of APCOS using/ supplied Gerber’s test & LR 53

168

Wayanad District

Although all the DCSs in Wayanad

use AMCUs for quality

determination, only a very few

DCSs make use of one of the

components, the auto analyzer,

reportedly due to the reason that

they are slow in performance.

Also, some of the analyzers were

found to be erratic in fat and SNF

estimation while some others

have inconsistent results.

Malfunctioning of the analyzers

cause hardships to the farmers

and the DCSs and hence

discontinued. Some have changed

the configuration of the AMCUs by

hooking EMTs instead of

analyzers. Using EMT defeats the

very purpose of AMCUs,

automation and instant print out

to farmers. AMCUs are excellent


milk procurement in village DCSs.






after rectifying the practical

difficulties in consultation with the


Almost all the BMC DCSs possess

the equipments for MBRT

estimation. But not all of them use

this provision.

The milk procured from among the

farmers has 3.9 per cent fat and

8.3 per cent SNF which are lower

than those in other districts of


introduction of AMCUs can further

improve the quality. The MBRT of

milk supplied through BMC DCSs

averages 176 minutes (tested in

Wayanad Dairy). The microbial

quality of milk in Wayanad is

better than that in other districts.

In the years to come, estimation of



on the marketability of milk. The

best way to usher in microbial

quality monitoring is to pay for

bacterial quality also. To begin

with, it is suggested that the top 2

per cent of milk producers

supplying high quality milk may

be paid an incentive.


Suggestions

Under the IDDP and SIQCMP

schemes Rs 515.79 lakh has been

169

Wayanad District

170

invested for promoting the milk

procurement activities ranging

from supply of BMCs to DCSs,

milking vessels to farmers and

capacity building of farmers and

elected members in Wayanad

district. The IDDP support is

available for the next two more

years (2014-15 and 2015-16).

Therefore the support requested

under the NPDD for milk

procurement is meant to stabilize,

sustain and carry forward the


suggested components and the

estimated costs can be found in

table 5.13.

a. Buildings


sections, a few DCSs function in

rented buildings. Most of them do

not have the minimum facilities for

hassle free milk collection and

dispatch. BMC installation is

virtually impossible and effluent

treatment is a serious problem in

these DCSs. Therefore, it is

suggested to include provision for

subsidizing new DCS buildings at

the rate of Rs. one lakhs per DCS.

Eight DCSs are identified to have

the land and financial capacity to

part fund this during the project

period.

Table 5.13 Support for Milk Procurement Suggested for Wayanad District

under NPDD


Units

Unit Cost (Rs)


1 Building construction 8 100000 8.00 2 Water supply system 10 60000 6.00 3 Bore well 10 25000 2.50 4 Open well 15 10000 1.50 5 Aluminium cans 300 2500 7.5 6 Electronic milk tester 4 15000 0.6 7 Electric centrifuge 8 2500 0.2 8 Weighing scale 3 15000 0.45 9 Hand held billing device 8 10000 0.8 10 Management grant to DCS 8 30000 2.4 11 Subsidy to milk transport 370000 0.5 1.85 12 Subsidy to cattle feed

transport 24128 400 96.512 13 Incentive to better quality

milk 900000 0.5 16.42 Total 144.73

Wayanad District




important in Wayanad district.

Most of the DCSs find it difficult to

mobilize adequate capital for

investment. Hence a subsidy of

rupees sixty thousand per unit is

suggested for ten DCSs at an

estimated cost of 6.0 lakh. Water



envisaged. In addition, digging of

ten bore wells at the rate of rupees

twenty five thousand per unit and

fifteen open wells at the rate of

rupees ten thousand per unit are

also suggested in Wayanad

district.

c. Subsidy for Cattle Feed

Transport


the DCSs. The farmers in Wayanad

district (hilly district)



convenience, easy access and the

credit facility extended by the

DCS. The transport of cattle feed

from the plants to the DCSs

entails cost. It is suggested to

subsidize the transport cost. The

estimated quantity sold in

Wayanad district comes to 24,000

MT in three years. An amount of

Rs 0.4/kg is the average transport

cost and the total funds required

come to Rs 96.5 lakh. The amount

may be provided as a subsidy so

that the price of cattle feed can be

kept low.

d. Incentives for Good Quality

Milk




quality milk. As a result, the

bacterial content of the raw milk

collected from farmers has reduced

significantly. The low bacterial

count immensely improves the

quality, especially the organoleptic


milk apart from heat stability and

longer shelf life. Such milk is

ideally suited for product

manufacturing. It is beneficial to

the consumers also. The farmers

are not compensated for their

extra effort in producing such

clean milk. As a beginning, it is

proposed that the top 2 per cent of

the milk may be paid an incentive

of 50 ps. per liter of milk. The daily

171

Wayanad District

procurement is near to 1.5 LLPD

and the incentive at the suggested

rate works out to Rs 16.42 lakh.


Machineries


Supplied to the Farmers in

Wayanad District


1 Cattle sheds modified 235 1 Milking machines 26 2 Rubber mats 833 3 Pressure washers 28 4 Gen sets 5 5 Cow drinker 10 6 Chaff cutter - Motorised 2

Well constructed cattle sheds are a




prevention of external

contamination of milk and entry of

microbes in to the udder causing

sub-clinical/clinical mastitis. A

well constructed cattle shed

should also provide operational

easiness and animal comfort. The

shed should have adequate space

for the animal, manger, feeding

alley and channels for urine and

dung. The shed must be well

ventilated, easy to clean and

should have transparent roofing

sheets interspersed with opaque

ones to permit sunlight, and

facility for continuous feeding of

water. Not many cattle sheds of

the standard mentioned above

exist in Wayanad district. Some of

the sheds are a mere make shift

shelter with mud/wooden floor,

tiles/asbestos/PVC/Silpaulin roof,







the udder often remain soiled with

dung, urine and mud. Udder and

teat injuries are common. Feeding

of water is only occasional.

Therefore, any support for good

cattle sheds is a welcome gesture

towards promotion of dairy

production in Wayanad district.

Considering the above aspects, the

Milk Union could rope in funds for

cattle shed modification and

making of new cattle sheds under

the IDDP and SIQCMP schemes. In

the past, 294 cattle sheds were

172

Wayanad District

funded under the IDDP/SIQCMP

schemes in Wayanad district.

During the course of the field

work, we observed that the funds

provided are utilized properly and

the floor of the cattle sheds is

well constructed. However,



high cost of labor and the

materials. The budget provision of

Rs 10,000/- is thoroughly










size, the changing status of women

in the society and the

opportunities for employment in

other sectors of the economy, the

availability of labor for dairy

farming is fast declining. Hired

labor for dairy farm activity is

uncommon in Wayanad district.

Hence making the daily chores less

arduous and reducing the daily

labor requirement are crucial for

the very sustenance of dairy

farming. Considering the economic

and social significance, the

173

Wayanad District

174

MRCMPU has initiated providing

financial support for farm

mechanization. The Union has

been providing and channeling

support for these activities for the

past few years. However, the

support is scale inadequate and

many more are on queue. It is

suggested that the assistance may

be continued and funded under

NPBBDD. The components

suggested, the quantity and the

estimated costs can be found in

table 5.15.

5.9 Cattle Induction The absence of easy access to loan

facility at low interest from banks

remains a serious obstacle to the

new entrants of cattle farming. To

overcome this issue, cattle

induction has been resorted to by

several development agencies in

the state as a support scheme. The

MRCMPU too distributed 250

heifers to 50 farmers in Wayanad

district to promote cattle rearing.

Cattle keeping in the district has

become largely a job of

economically weaker sections of

people (BPL families) and women.

It continues to be a major means

livelihood especially for women.

Therefore, a support for

purchasing the following number

of cattle is recommended under

NPDD (table 5.16).

Table 5.15 Cattle Sheds and Farm Machineries Suggested under NPDD for

Wayanad District


Unit Cost (Rs)





Wayanad District

Table 5.16 Cattle Induction Program Suggested in Wayanad District


Units Unit Cost (Rs)


1 Purchase of cows 120 40000 48.00 2 Purchase of heifers 120 30000 36.00 3 Transportation cost of



included for cattle induction.



for women.


allowed 75 per cent subsidy

on the purchase price and the

others 50 per cent.




Insurance premium shall be


and the balance as


175

Wayanad District

5.10 Establishment of Central

Laboratory An amount of Rs 91.82 lakh had

been invested under phase I & II of

IDDP and SIQCMP schemes and

Rs 39.32 by the Milk Union in

upgrading the Wayanad dairy lab.

The lab has reasonable facilities

including equipments for routine

tests. Hence no additional lab

equipments are proposed under

NPDD.

But as part of modernizing the

automatic data capturing system

in the hygienic systems in the

dairy software for easy monitoring

of FSMS and a high capacity

pressure jet are proposed in the

Project.

The Wayanad dairy is already

ISO:22000 certified dairy by DNV.

The recertification and surveillance

audits and certain equipments and

software for the maintenance of

these systems are to be acquired.

The amount suggested is towards

these items.


equipped to carry out the MBRT, a

system to carry out the tests by

the DCS staff and to link the

results on line with the central lab

are yet to be implemented in full.

Any further upgradation of the

DCS labs needs to be considered

only after fulfilling these

requirements.

5.11 Clean Milk Production Kits for Beneficiaries

Under the CMP scheme, the


articles to the farmers in Wayanad

district (table 5.18).

Table 5.17 Establishment of Laboratories in Wayanad District

Sl. No. Components Units

Unit Price (Rs)

Amount (Rs in Lakh)

1 Central milk testing lab LS 20.00 2 Purchase of laboratory furniture 1 500000 5.00 3 High capacity pressure jet 1 100000 1.00 4 FSMS monitoring software 1 100000 1.00 5 Automatic data capturing system 1 2200000 22.00 6 Accreditation and certification of


Total 54.00

176

Wayanad District

Table 5.18 CMP Kits Supplied under SIQCMP Scheme in Wayanad District

Sl. No. Component Physical Financial

(Rs in Lakh) 1 Detergents & chemicals to DCS lot 16.02

2 Stainless steel utensils to beneficiaries 5725 28.49

The distribution of CMP kits to

farmers had little impact on clean

milk production. The farmers

discontinue the use of chemicals

and disinfectants once the free

supply is stopped. Hence, a

continuous supply of free

detergents/chemicals for udder/

utensil cleaning is not desirable.

On the other hand, the stainless

steel utensils (the milking vessels

and carrying utensils) are of use to

the farmers and they whole

heartedly welcome the component.

It has helped to improve the initial

quality of milk. Many more farmers

are to receive the vessels in

Wayanad district. Therefore the


supplied through the DCSs free of



them. The numbers suggested and

the financial requirements are

given in table 5.19.


today’s context as the availability

of family labor for farmstead jobs

are steadily declining. Our field


Table 5.19 CMP Kits and Milking Machines Suggested for

Wayanad District under NPDD


Units Unit

Cost (Rs)



2 Electrically operated milking machines & other equipments for hygienic milk handling at village/ farmer level 15 55000 8.25


Total (7.0) 17.25

177

Wayanad District

all the beneficiary farmers of the

earlier schemes use the machines

although continuous service back

up is essential. It is suggested that

fifteen more milking machines may

be supplied to the farmers at

subsidized (75%) rate under

NPDD. It is also suggested that a

few hand operated machines may

be supplied for a scientific and

methodical field trial in association

with KVASU.


(TIS) The technical input services






members. The TIS was a major

component under the IDDP and

SIQCMP schemes implemented in

the district. The major components

and the financial and physical

attainments in Wayanad district

can be found in table 5.20.






delivery at farm gates, however,

remain poor, the HH survey

shows. Since those services are of

state domains, the change in

service delivery requires policy

decisions and to avoid duplication

of such services (AI, health care,

home stead fodder production etc)

are not suggested under the

NPDD. The most essential

components suggested on a

priority basis can be found in table

5.21.

Table 5.20 Technical Input Services Components and Achievements in

Wayanad District


Financial IDDP/

SIQCMP

Union/ Beneficiary

Total (Rs in Lakh)

Technical input services 294 farmers 41.5 lakh 17.78 59.28

178

Wayanad District

Table 5.21 Wayanad District Technical Input Services

Suggested under NPDD


Units Unit

Cost (Rs) Total

Cost (Rs in Lakh)

1 Liquid nitrogen containers 6 30000 1.80 2 Audio visual kits etc. 1 200000 2.00 3 Animal health & breeding




replacement of the ones in use.

The animal health and breeding

input camps include a pilot

program for fertility management

of dairy cows among farmers. The

program envisages identification of

infertile cows, providing

management and Veterinary

support to correct the reproductive

problem, if any, documenting the

information for adoption

elsewhere. It is a DCS based

program centrally controlled and

monitored from HO of MRCMPU.


fodder production is a failed

attempt in Kerala. The reasons are




other hand, large land holdings

and fallow lands are potential

sources for fodder production –

fodder as a value added crop in

irrigated land. The fodder so

produced shall be marketed

amongst the DCS members at the

cost plus price. The scheme shall

be a flagship program of NPDD.


Communication

Technology Networking The MRCMPU, apart from being a

farmers’ organization, is also a

multi- crore business concern. Its’



and full utilization of Information

and Communication Technology

(ICT) alone will enable the

179

Wayanad District

MRCMPU to modernize their units

and keep abreast with their

competitors. It is also essential

that the whole business of

MRCMPU remains transparent to

their stakeholders, the dairy

farmers. Unfortunately the Milk

Union is in the infant stage in

exploiting the benefits of ICT.


dairy operations are computerized

and internally networked

(intranet). A few DCSs are also

computerized but not networked.

The milk Union proposes to

expand the ICT so that the system

functions as a client server

architecture network with Six

centers, one each in each district

(Palakkad, Malappuram,




centers. The information will be

made available to all the districts

and DCSs. The details of the

proposed system are given as

annex-1. The expenditure is

proposed to be shared among the

district projects. The share of

Wayanad district is illustrated in

table 5.22.

180

Wayanad District

Table 5.22 Information a Technology Networking

Wayanad District

No Details U

Lakh) Units Amt.

nd Communication

Sl. .

nit Rate(Rs in

1 Purchase of Computer/HHB 1.1 Desktop 0.50 13 6.50 1.2 Laptop & Netbook 0.60 10 6.00 1.3 Hand held range of computers 38 11. 0 0.30 41.4 1000 LPM line printer 0.00 1.5 132 col DMP printer 0.30 1 0.30 1 printer 0. 0. 0 .6 A4 size net work laser 20 1 22 Purchase of Servers

2.1 Rack server 9.00 2 18.00 2.2 42 U server rack 1.00 1 1.00 2.3 Server storage device 8.00 1 8.00 2.4 Tape backup 8.00 1 8.00 2.5 UPS for server 7.00 2 14.00 2.6 Server OS & training 3.00 1 3.00 2.7 Weblogic server suite purchase 15.00 1 15.00 2.8 Oracle database 12C 15.00 1 15.00 2.9 Antivirus software 1.00 3 3.00 2.10 Hardware & networking 10.00 1 10.00 2.11 Software consultation charges (AMC) 5.00 1 5.00 2.12 valuation 5.00 1 5.00 Onsite software analysis and e

for Union and DCS purchase 3 urchase & Up-gradation 30.00 Software P

Charges 3.1 ncy & database Software consulta

administration 10.00 1 10.00 3 line communication cost 10 0 .2 Leased .0 1 10.00

Total 149.40


sta

trained on


5.14.1 Current Status








employees, the staff and the

elected representatives of the DCS

and the Board are also

ndards including cost

181

Wayanad District

Table 5.23 Employees and the Elected Members Trained in Wayanad

District

NN

Trained Sl. o. Course

umber ofPersons

1 ment program Cooperative developa No. of programmes 15 b No. farmers trained 2102 c FIP- Local farmers attended 1407 d Management orientation 85

2 Training of BMC/DCS/MCC staff 16 3 Training of DCS secretary 113 4 Training of DCS employees 85 5 Training on AI 17 6 Training of farmers on GMP/GHP 3 8387 Training of farmers on AH practices 96 8 FIP 735 10 Training on marketing 20 11 Training of management committee members 39

Table 5.23 shows the numbers

trained in various categories from

Wayanad district. The DCS staff

has been trained at the HRD

centre, Kozhikode under MRCMPU

on the relevant subjects. The

trainers included those from

within the organization and also





concerned groups.

opportunities



in village cooperatives followed

by a visit to the processing


are the trainees. The farmers

Induction program is normally




farmers has been undertaken in

APCOS DCSs. The training



farmers were given





182

Wayanad District





upgrading their knowledge, skills

s in Wayanad district

nder the IDDP and CMP Phase I

aining

ort

project mode

isit centers of

Schreiber

tlook.

ourses suggested and the


5.24.

and attitude.


been spent on various training

program

u

and II.


Suggestions

13. The future training

programmes especially those

for the middle level employees

starting from Supervisors

should be hand on tr




organized in villages

themselves with the supp

of LSG and Village Extension

Workers under MRCMPU.







be initiated on a

and results closely monitored

and evaluated.







should be provided

opportunity to v

excellence outside the

state/country.





rather than limiting to


should be exposed to the

happenings in the dairy

sector elsewhere in the

country (eg:


vision and ou


phased out.

The c

183

Wayanad District

Table 5.24 Proposed Training Program under NPDD – Wayanad District

Sl. No. Course Unit No. of

Units Unit

Cost (Rs) Total

Cost (Rs in Lakh)

1 CD programme Prog. 15 80000 12.00 2 FIP Person 200 300 0.6 3 Secretary Person 125 3000 3.75 4 Tester/Helper Person 125 3000 3.75 5 Training of farmers in GMP/GHP Person 250 2000 5.00 6 Training of farmers in animal

husbandry Person 66 2000 1.32

7 Dairy manager Person 2 20000 0.40 8 Production officers Person 8 20000 1.60 9 Dairy plant supervisors Person 9 20000 1.80 10 Technicians/Operators Person 7 20000 1.40 11 Milk marketing officers Person 7 20000 1.40 12 Training of MC members Person 3 12000 0.36 13 Dairy extension activities Prog. 7 1000 0.07 Total (10.0) 1256 33.45


Wayanad District

The Dairy shall maintain






stores and spares etc. are also




is fluctuating throughout the year

depending on local milk

procurement. During lean season

during which the procurement

from the district declines, union is

procuring large quantity milk from

other states for which payments

are made in advance. Large

quantity of SMP shall also be

stocked to meet any contingencies.

Table 5.25 Value of Milk Procured in 21 Days from Wayanad District

Milk Procurement (LLPD) District 2013-14

(Actual) 2014-

15 2015-

16 2016-

17

Average Milk Price (Rs)

Days Total Milk Value (Base

Year) (Lakh)


184

Wayanad District

Wayanad 1.22 1.15 1.34 1.44 28.88 21 739.9056 873.3312

During flush season funds are

needed to stock ghee, converted

SMP, cream, etc. which are

produced in excess of normal

market requirements. Union is

supplying cattle feed and other

inputs to the societies on credit

basis. Present supply of cattle feed

to societies is more than 1200 MT

per month. It is expected to

increase significantly in the

coming years.

At the current procurement price,

the value of 21 days milk collected

from the societies in Wayanad

district comes to Rs 740 lakh in

2013-14 which is expected to go as

high as 873 lakh in 2016-17 (table

5.25). The Union proposes to meet

this amount from the internal

reserves while the amount for the

purchase of milk powder, cattle

feed and packing material has to

be found from other sources. This

amount works out to Rs 443.7 as


It is suggested that an amount of

443.7 lakh may be provided as

working capital for Wayanad

district under the NPDD.

Table 5.26 Working Capital Required in Wayanad District 2014-15 to

2016-17

Working Capital Unit No. of


2014-15 (Rs Lakh)

2015-16 (Rs Lakh)

2016-17 (Rs Lakh)

Total Cost (Rs

Lakh) Purchase of milk powder KG 80000 300 60.00 90.00 90.00 240

Purchase of packing material KG 7000 210 4.20 4.20 6.30 14.7

Purchase of cattle feed MT 1050 18000 63.00 63.00 63.00 189

Total 127.2 157.2 159.3 443.7

185

6. KANNUR DISTRICT

Contents

Executive Summary..........................................................................188

6.1 General Features ........................................................................192

6.2 Trend in Cattle Population ..........................................................193

6.3 Trend in Milk Production from Bovines .......................................194

6.4 Milk Chilling 194

6.5 Milk Processing 195

6.6 Milk Marketing 199

6.7 Milk Procurement 208

6.8 Cattle Shed and Farm Machineries 215

6.9 Cattle Induction 216

6.10 Establishment of Laboratory 218

6.11 Clean Milk Production Kits for Beneficiaries 219

6.12 Technical Input Services (TIS) 220

6.13 Information and Communication Technology Networking 221

6.14 Manpower Development 223

6.15 Working Capital - Kannur District 225

Wayanad District

Kannur District

Kannur District

187

Wayanad District

188

Executive Summary

The Kannur district is not among

the frontline dairy districts in

Kerala. Yet livestock farming is

germane to the vast majority of the

farmers in the district. The official

statistics, however, show that the

cattle sector, both in numbers and

output, suffered setbacks since

late nineties. The cattle numbers

declined by 61 per cent from 1996

to 2012 and in-milk cows by 34

per cent. Surprisingly the annual

milk production fell only

marginally in spite of the sharp fall

in cattle numbers.


dairy at Kannur. The installed

capacity of the dairy is 1.5 LLPD.

During 2013-14, the dairy

processed on an average 1.04

LLPD, almost 20 per cent below

the installed capacity. Even at the

peak procurement level during the

year, the dairy’s capacity

utilization has only been 75 per

cent. Hence there is no urgency in

expanding the processing capacity

of Kannur dairy. But the product

manufacturing line requires

certain additions on account of the

export regulations. In addition, the

dairy requires certain critical

equipments, some as standby and

some as replacement. The


replacements are estimated to cost

Rs 273.00 lakh.



Kannur district is 2.67 LLPD. The

market share of MRCMPU in the

liquid milk segment in Kannur

district is just 30 per cent which is

not satisfying. The Milk Union is

facing fierce competition from the

competitors, mainly from within

the district, but also from outside

to a smaller level. But the market

analysis reveals that this is not a

restricting factor to command a

better market share. The

inadequate market infrastructure

is one of the reasons for the low

market share. The dairy’s business

plan may also require some

revision. Hence an aggressive

marketing strategy supported by

adequate infrastructure is

required. To begin with, new milk


Kannur District

to be opened in prominent public

places. Wide publicity through

print and visual media is also

suggested. Periodic market surveys

and R&D on consumer likes and

preferences (example attractive

packing for flavored milk, ice

cream, peda, etc.) are also

suggested. The estimated cost on

market promotion works out to Rs

437.5 lakh.




farmers. All the DCSs have


facilities. All the BMC DCSs have




major constraints identified in the

expansion of milk procurement

and clean milk production are lack

of convenient buildings for DCSs,

absence of good quality water

supply facilities with some DCSs

and lack of incentives for clean

milk production and support for

cattle feed transport. The support


activities in Kannur district is




the major constraints in dairy

production in Kannur district.


strengthening of old cattle

sheds/construction of new ones

and supply of farm machineries

and equipments are proposed at a




and the SC/ST families, a cattle


The NABARD norms shall be

followed for administering the

subsidies. The overall support for

240 animals is estimated to be Rs

92.55 lakh.










Kannur dairy lab. All these


54.00 lakh.

189

Kannur District

190

The farmer beneficiary programs

proposed are aimed at milk

productivity enhancement and

clean milk production. They

include distribution of stainless

steel utensils, milking machines,

animal breeding and health cover

and commercial fodder production

for which at the estimated cost


The MRCMPU needs to network

with the various units and the

DCSs for effective information




centers, one in each district







estimated cost of these in Kannur

district is Rs 123.0 lakh.



activity of MRCMPU in Kannur

district. Several programs were

running for the past few years. It is

suggested to scale up some of

these programs. The suggested

programs would cost Rs 57.6 lakh.




Kannur district. The milk prices

are to be paid to the farmers

regularly which alone cost rupees

300 lakh or more every 21 days. In

addition, keeping a buffer stock of

raw and finished goods is essential

to safeguard an uninterrupted

business. This, as also several

other requirements force the Milk

Union to borrow money from the

open market which causes extra

burden to the Union and the

farmers. Hence it is suggested that

an amount of Rs 117 lakh shall be

paid to the milk Union as a one-

time assistance for Working

Capital.

The Suggestions for Kannur

district abstract of the proposed

program is as follows: The

suggested programs for Wayanad

shall be summed up as follows.

Kannur District





Cattle sheds and farm machineries 80.00


Central testing laboratory 54.00

CMP kits and milking machines to farmers 17.25

Technical inputs services 30.00

Information and communication technology 123.00


Working Capital 117.30

Total 1515.40

191

Kannur District

6.1 General Features Kannur district came into

existence on first January 1957.

The district is surrounded by the

Coorg district of Karnataka

(Western Ghats) in the East, the

Kozhikode and Wayanad districts

in the South, the Lakshadweep sea

in the West and the Kasaragod

district in the North. The district

occupies 2966 sq.km. of the state

in three geographical regions -

highlands, midlands and lowlands.

The highland region comprises

mainly of mountains and major

plantations of rubber. The midland

region, lying between the

mountains and the low lands, is

made up of undulating hills and

valleys. This is an area of intense

agricultural activity. The lowland

is comparatively narrow and

comprises of rivers, deltas and

seashore. This is a region of

coconut and paddy cultivation.

Kannur district has three Taluks,

129 Villages, nine Blocks, 81

Grama Panchayats and six

Municipal Towns (Thaliparamba,

Kannur, Thalassery, Kuthuparamba

Payyannur and Mattannur). As per

the 2011 census, the district

population is 25.23 lakh of people,

8.82 lakh in rural and 16.41 in

urban areas with an average

density of population of

850/sq.km. Agriculture is

livelihood intensive to majority of

people. The main crops grown in

the district are paddy, coconut,

pepper, cashew, tapioca, areca nut

and plantation crops like rubber

and spices.

Dairy cattle are germane to the

farming systems in the district. The

livestock population in the district

comprises of 1,06,237 heads of

cattle, 765 buffalo, 55,262 goats

and 4534 pigs as per the latest

cattle census (2012). The census

figures suggest that the cattle

population in the district is

continuously declining. The state

departments, AHD and DDD, are

the major service providers in

livestock sector. Under the AHD, the

district has 12 Veterinary hospitals,

68 dispensaries, five poly clinics,

one mobile dispensary, two mobile

farm-aid units, one District

Veterinary Centre, four Regional

Artificial Insemination centers and

one hundred and fifty one AI sub

192

Kannur District

centers. The DDD has one Dy.

Director Office (District Office), nine

Dairy Extension Offices and one

quality control office in the district.

MRCMPU has a processing dairy

here with a capacity of 1,00,000

LPD of milk. Traditionally, milk and

curd are being brought in from

Tamil Nadu to this region.

6.2 Trend in Cattle Population The cattle population in Kannur


2012, the official statistics shows.

As is evident from fig. 6.1, both the

total and in milk cows in the

district declined during this

period. The total cattle declined by

61 per cent and cows in milk by 34

per cent between 1996 and 2012.

The in-milk buffaloes had mixed

fortune, the numbers sharply

declined from 4519 to 146 between

1996 and 2007 and then

marginally gained between 2007

and 2012. Although the accuracy

of the data on cattle numbers is

questionable, it is certain that in

the recent past many dairy

farmers in Kannur district dropped

out of dairying due to economic

and other factors.

Fig 6.1 Cattle population Kannur District ( source Cattle census reports, DAH, GOK)

0

50000

100000

150000

200000

250000

300000

Cattl

e/Bu

ffalo

Num

ber

Total Cattle 272011 159858 119144 106237

Cow s in Milk 75890 52111 43203 50200

Buffalo in milk 4519 269 146 2100

1996 2003 2007 2012

193

Kannur District

194


from Bovines

6.4 Milk Chilling The BMCs installed in DCSs, apart

from the dairy at Kannur, provide

the milk chilling facility in Kannur

district. The position of milk

chilling in Kannur district (other

than Dairy) during March 2014 is

given in table 6.1.

According to the ISS estimates


production in Kannur district

increased from 140.8 thousand MT

in 1997-98 to 147.3 thousand MT

during 2001-02, then sharply

declined to 105 thousand MT

during 2004-05 and thereafter

made spectacular recovery to

139.3 thousand MT during 2011-

12. Although the accuracy of the

data is questionable, we have to

accept these figures as we don’t

have any other authentic data on

milk production.

The Kannur district has unused

chilling capacity. More over a new

Dairy is soon coming up in

Kannur. Therefore, at this stage,

there is no need to create

additional chilling capacity for

milk in Kannur district.

Fig 6.2 Milk Production Kannur District (Source ISS AHD GOK)

140.

8

147.

3

105

122.

4 139.

3

0

20

40

60

80

100

120

140

160

1997-98 2001-02 2004-05 2008-09 2011-12

Milk

in '0

00M

T

Kannur District

Table 6.1 Milk Chilling Facility in Kannur District 2013-14


1 No. of BMCs commissioned up to March 2014 23 2 No. of DCSs in which BMCs are positioned (BMC DCSs) 23 3 No. of cluster DCSs attached to BMCs 126 4 Total installed capacity of BMCs ltr. 52000 5 Av. milk collected through BMCs 2013-14 LPD 41100 6 % capacity utilization 79 7 Av. MBRT of BMC collected milk - Minutes 150 8 Av. SPC of BMC collected milk – CFU per ml 180000 9 Av. Coliforms of BMC collected milk – CFU per ml 40000 10 No. of milk chilling plants Nil

6.5 Milk Processing



The Kannur district has one dairy

at Pallikkunnu, six kilometers

from Kannur town near NH 47.

The capacity of the dairy was

expanded from 60,000 LPD to

1,00,000 LPD during 2002-03 and

further upgraded to 1,50,000 LPD

during 2009-10. The sources of

milk for Kannur dairy are the milk

procured from farmers in the

Kannur Dairy

195

Kannur District

district and that supplied from

Wayanad Dairy/Chilling Plant. The

average procurement of milk from

Kannur district during 2013-14

was 50,700 LPD of which 41,110

liter (81%) was received as chilled

milk from BMCs.

In addition 40,061 liter (average) of

pre-chilled milk was received from

other units of the Milk Union. The

dairy also imported 13,250 LPD

(average) chilled/processed milk

during summer/festival times from

other states. The total inflow of

milk during 2013-14 was 1,04,011

LPD which works out to 69 per

cent of the installed capacity.

The Kannur Dairy processes three

variants of liquid milk. In addition

the Kannur dairy also produces

curd, ghee and buttermilk

(Sambharam). They export ghee to

the Middle-East countries.

6.5.2 Milk Processing Infrastructure – Kannur Dairy

As stated above, the Kannur dairy

has undergone major upgradation

during the last decade. The dairy

is one of the show pieces of

MRCMPU and it is managed

professionally. In the process of

upgradation, the civil structures

were modified and expanded.

Several equipments were added in

the process line, and the quality

checking and monitoring. The

current stays of major equipments

can be found from table 6.2.

Table 6.2 Kannur Dairy: Existing Facilities and Equipments

Sl. No. Facility Unit Numbers 1 Production Block (Carpet area all floors)

1.1 Service block 100 1 1.2 General go-down (including SMP stores) 160 1 1.3 Milk/Curd cold storage 200 1 1.4 Butter deep freeze 0 1 1.5 Administration block (Total carpet area ) 120 1 1.6 Workers amenities block 100 1 1.7 Tray washing block 160 1 1.8 Effluent treatment plant 600 1 2 Reception

2.1 Can roller conveyor 600 cans/hr 1 2.2 Can washer 600 cans/hr 0 2.3 Dump tank 2 Kl 1 2.4 Can scrubber (SS 304) 500 L 2 2.5 Can steaming block Single can 1

196

Kannur District

Sl. No. Facility Unit Numbers 3 Processing/Storage Equipment

3.1 Milk chillers 20 KLPH 1 3.2 Tri-purpose centrifuge 10 KLPH 1 3.3 Milk pump 10 KLPH 4 3.4 Horizontal milk storage tank 15 KLPH 3 3.5 Vertical milk storage tank 10 KLPH 1 3.6 CIP system - Double circuit 20 KLPH 1 3.7 Pasteurizer 10 KLPH 1 3.8 Milk silo 60 KL 1 4 Fat Handling

4.1 Sour milk separator 500 LPH 1 4.2 Cream storage tank 2000 LTR 3 4.3 Cream pump 5000 LPH 1 4.4 Ghee boiler 2000 LTR 1 4.5 Ghee settling tank 3000 LTR 3 4.6 Ghee storage tank 3000 LTR 3 4.7 Ghee pump 3000 LPH 1 4.8 Ghee clarifier 2000 LPH 1 4.9 Cream transfer tank 1000 LTR 2 5 Recombination

5.1 Emulsifying tank 5000 LTR 5.2 Homogenizer 10 KLPH 1 6 Milk Marketing

6.1 Pouch filling machine DHG mechanical 5000 PPH 8 6.2 Pouch filling machine auto SH mechanical 2500 PPH 1 6.3 Voltage stabiliser 25 KVA 1 6.4 Milk pumps 10000 LPH 4 6.5 Cold store conveyor 1200 cr/hr 1 6.6 Pouch crate washer 1200 cr/hr 1 6.7 Date coding device for pouch filling machines 60 IMP/Mnt 7 Service Equipment Capacity Quantity

7.1 Refrigeration compressors (make/model/type/cap.) 20 TR 3

7.2 Motor for refrigeration compressors (KV) 40 HP 3 7.3 Ice bank tank 100 KL 1 7.4 Chilled water pump 90 KLPH 2 7.5 Chilled water agitator 5 HP 2 7.6 Air handling unit for cold storage/deep

freezer (make/model/cap) 3 TR 3 8 Steam Raising Plant Capacity Quantity

8.1 Boiler (oil/coal) 1 MT 1 9 Compressed Air System Capacity Quantity

9.1 Air compressors 50 CFM 2 10 Industrial Electrical Capacity Quantity

10.1 DG set 250 KVA 2 10.2 Transformer 315 KVA 1 10.3 LT panel 415 V 1 11 Water Supply System Capacity Quantity

11.1 Water storage tank 50 KL 1 11.2 Water pumps 20 KLPH 1

197

Kannur District

All the equipments are in full use.

The evaluation of current status

and the need assessment shows

that some of the critical

equipments require replacement.

Taking in to consideration these

aspects, the following equipments

are suggested to be included under

NPDD (table 6.3).

The Kannur dairy has recently got

export approval for ghee.

Traceability is a must in the case

of export consignments during the

procurement, production and

despatch. Mixing with normal

batches for local supply is not at

all allowed. Hence a separate silo

and fat handling equipments are

suggested for Kannur dairy under

NPDD. All the other equipments

like milk pumps are proposed as

spare to the existing ones.

Table 6.3 Equipments and Machineries Proposed for Kannur Dairy under

NPDD (2014-2017)

Sl. No.

Milk Processing & Marketing Speciation No. of

Units Unit Cost

(Rs) Total

Cost (Rs in Lakh)

1 Milk pump 10 KLPH 4 50000 2.00 2 SS pipes and fittings Lot 1 500000 5.00 3 Tri-purpose centrifuge 10 KLPH 1 3500000 35.00 4 Milk silo 60 KL 1 2500000 25.00 5 Cream storage tanks 3 KL 1 800000 8.00 6 Cream pumps 5 KL 1 300000 3.00 7 Ghee boiler 2 KL 1 500000 5.00 8 Ghee storage tank 3 KL 1 700000 7.00 9 Ghee clarifier 2 KLPH 1 1500000 15.00 10 Pouch filling machines 5000 PPH 1 1000000 10.00 11 Crate washer 1200 TPH 1 1000000 10.00 12 Boiler 2 TON 1 3500000 35.00 13 Refrigeration compressors

with accessories 30 TR 1 3000000 30.00

14 Cold store (including equipments) 5 TR 1 2500000 25.00

15 Date coding devices for pouch filling machines

60 imp/mnt 2 150000 3.00

16 LT electrical 0 1 3000000 30.00 17 DG set 320 KVA 1 2500000 25.00 Total 273.00

198

Kannur District

As per the FSSA, the cold store

temp must be below 5 0C for

storage of milk. Since the cold

store in Kannur dairy is very old,

an additional cold store is needed

along with strengthening of

refrigeration by adding high

efficiency compressors. Hence they

are also suggested under the

NPDD.

6.6 Milk Marketing

6.6.1 Introduction


functions of MRCMPU. The

chapter on Milk Marketing

provides an overview of the

marketing organization of

MRCMPU in Kannur district, the

infrastructure available and the

sales achievements of liquid milk

and major milk products during

2013-14. The chapter also

identifies the key issues and

problems and provides

recommendations to address them.

6.6.2 Marketing Organization

The marketing wings attached to

Kannur Dairy and Koothuparamba

Depot (Cold Storage) organize the

marketing activities. The Kannur

marketing wing has an Asst.

Manager, Asst. Marketing Officer

and four field staff. The

Koothuparamba Depot is under a

Marketing Organizer assisted by

two field staff. The Kannur Dairy

markets liquid milk and milk

products manufactured in the

dairy plus the products procured

from the Product Dairy at

Kozhikode.

6.6.3 Supply Chain











2014, there were 1344 retail

outlets and 19 wholesalers for milk

and milk products distribution in

Kannur district. A well developed

intending and distribution system

exists. The liquid milk and the

products are sold to the dealers on

advance payment. Credit facilities

were extended to the dealers on a

199

Kannur District

200


products sold during 2013-14 are

shown in table 6.4.

The table shows that there is a

marginal (12% in three years)

growth in sale of milk while the

growth in certain products- curd,

ice cream and ghee- are

substantial.


Share of MRCMPU




standard practice/ competitive




in Kannur district was 1.36 LLPD

(Milma 1.20 plus 0.16 of the

competitors). The sales of



accuracy cannot be vouched. The

sales pertain mostly to the urban

area and therefore the rural

consumption is extra.





group shows that the per capita

consumption among the rural

people is 150 ml and that of urban

173 ml. The market size is

calculated as shown in table 6.5.

Table 6.4 Milk and Milk Products Sold in Kannur District

Sl. No. Milk/Products 2009-10* 2013-14

1 Liquid milk (LPD) 108062 120450 2 Curd (Liter/day) 9784 10855 3 Ghee (Kg/month) 28415 30007 4 Ice cream (Liter/month) 3684 14404 5 Butter milk (200 ml Pkts./day) 6979 8435 6 Milk peda (Kg/month) 2200 4037 7 Sip up (Pkts./month) 72340 49975 8 Palada (Kg/month) 261 846 9 Milma plus (Bottles/month) 2500 9176

* Previous bench mark figures

Kannur District

Table 6.5 Estimation of Market Size for Milk Kannur District 2014

Sl. No. Description Rural Urban Total 1 Population Kannur district 882017 1640986 2523003 2 Cattle holdings % 18 50 3 Potential consumers (1/0.82) 723254 1640986 2364240 4 Proportion of population that consume

milk in Kannur (HH survey) (%) 80 93 5 Actual consumers (3 x 4/100) 578603 1526117 2104720 6 Per capita consumption HH survey 150 173 7 Household demand LPD (5 x 6) 86790 264018 350809 8 Inst. demand (20% of urban demand) 0 52804 52804 9 Total demand (7 + 8) 86790 316822 403612 10 Milma supply 120000 11 Market share % 30


the rate of 1.2 LLPD. This works

out to 25 per cent of the market


supports under the NPDD should

all be geared up to improve the

market coverage.



Status

The table 6.6 shows the various

support equipments and other

logistics available in Kannur

district for market promotion.


strategic locations to attract more



products, they also act as a media

for improving the visibility of milk

and milk products. The Milma

Shoppe in towns can be




increase the sales.


infrastructure provided under the







IDDP scheme during yester years,

the entire milk transport from

Kasaragod dairy has switched over

201

Kannur District

to PUF insulated vehicles. The


liter, provided at 50 per cent


together with the PUF bodied

transport vehicles, ensure perfect

end-to-end cold chain and quality

assurance – dairy to consumer.



welcome the PUF boxes because

they are viable alternatives for the



movable and are easy to clean. The

boxes retain the low temperatures

for about 3-4 hours during which

the milk is generally sold out.




5000/- a piece for storing frozen


Table 6.6 Status of Marketing Infrastructure in Kannur District

March 2014

Sl. No. Facility/Equipment Quantity

1 Wholesalers for milk (No.) Nil 2 Wholesalers for products (No.) 19 3 Retail outlets of milk and products (No.) 1344 4 Milk parlors (No.) 8 5 Milma shoppe (No.) 6 6 Marketing depots/Hub (Mobile cold storage) (No.) 1 7 PUF vehicle containers (3 MT) (No.) 34 8 PUF vehicle containers (1.5 MT) (No.) 3 9 % milk routes using PUF vehicles for milk

distribution to retail outlets 100 10 PUF boxes 50 liter (No.) 524 11 PUF boxes 100 liter (No.) 141 12 PUF boxes 150 liter (No.) 66 13 PUF boxes 25 liter (No.) 254 14 PUF boxes 460 liter (No.) 7 15 Shipper box for ice cream 33 16 200 liter freezers for dealers (No.) 100 17 200 liter freezers glass top for dealers (No.) 4 18 120 LTR freezers (No.) 75 19 500 liter freezers 24

202

Kannur District

cream, milk is also sometimes

stored in freezer cabins. The takers

for the freezers are many and

almost all the freezers are in use,

field exposure visits and surveys

reveal. The Visi-coolers are

provided at subsidized price to

store products like flavored milk,

cup curd etc.

The Kannur district is under

perpetual threat from the private

dealers. On the one hand, the milk

production is declining in the rural

areas and on the other, the market

for milk and milk products are

vertically expanding. Also the

market analysis shows that there

is a wide gap between supply-

demand. To take advantage of

these favorable factors and to

safeguard the interests of the milk

producers in the district, a further

expansion of the marketing outlets

and development of an aggressive

marketing strategy are essential to

protect the interests of the milk

producers in the district.




activities involved from milk



also get an opportunity to gather

Milk Parlor Kannur Dairy

203

Kannur District

204

first hand information on the

quality assurance followed at

various stages of milk reception,



are exhibited in busy places for


products. The advertisement

activities are scale inadequate and

are not reaching a large segment of

the public particularly those in

rural areas. The milk marketing in

Kannur district is increasingly

becoming competitive. The market

study reveals that a huge part of

the market remains unexploited

(see 6.5). Hence it is suggested

that the consumer awareness

programs and the publicity

measures should cross the usual

styles and explore newer frontiers

to attract more and more

consumers in to the fold of Milma.


Recommendations

The crux of the issues in Kannur

is that the marketing organization

is inadequate to exploit the

unsaturated potential and to

counter the competitors. The

private dealers and certain

cooperative organizations are the

real threat to Milma. They provide

higher sales commission and

incentives to the dealers and even

provide flexible credit. The

institutional segment is largely

within the hands of the private

traders. At the same time, milk

production is livelihood intensive

to a vast majority of the marginal

and sub marginal farmers of

Kannur district who depend on

Milma to market their milk. The

MRCMPU has to tap the

unexploited market potential

particularly the rural market to

increase the market share and to

net extra income for dairy

development in the district. Hence

MRCMPU has to scale up their

marketing activities in Kannur

district for which a few suggestions

are placed below (table 6.7).

The table is more or less self

explanatory. A few items deserving

special mention are explained

below.

a. Milk Parlors

Milk Parlors were established in

prominent public places during

the first Phase of IDDP to promote

Kannur District

Table 6.7 The Suggested Infrastructure under Marketing in Kannur District

Sl. No. Depot/Parlor No. of

Units Unit

Cost (Rs) Total

Cost (Rs in Lakh)

1 Milk parlor civil 15 50000 7.50 2 Milk parlor equipments 15 10000 1.50 3 Shoppe support 5 500000 25.00 4 Space in super markets 30 20000 6.00 5 Decorated mobile product vehicle 3 50000 1.50 6 PUF vehicle containers (3 MT) 7 250000 17.50 7 PUF boxes 25 460 liter 400 2000 12.00 8 Shipper boxes for ice cream 120 6000 7.20 9 200 liter freezers for dealers 120 13000 15.60 10 200 liter freezers glass top for

dealers 90 17000 15.30 11 120 LTR freezers 90 11000 9.90 12 500 liter freezers for dairy 20 23000 4.60 13 Deep freezers 320 liter 105 17000 17.85 14 Deep freezers 320 ltr. (Glass top) 90 20000 18.00 15 Visi-coolers 220 liter 90 20000 18.00 16 Visi-coolers 320 liter 75 30000 22.50 17 Advertisement & consumer

awareness LS 140.00 18 Canopy with eutectic freezer

subsidy 9 100000 9.00 19 Hoarding/traffic circle/wall

painting 6 100000 6.00 20 Banners at festival venue 300 200 0.60 21 Painting/Vinyl sticker - PUF

containers 45 20000 9.00 22 Support to milk stockiest (RD) 15 200000 30.00 23 Dealer club meet/orientation/

incentive 12 25000 3.00 24 Effluent treatment plant (ETP) 1 4000000 40.00 Total 437.55

the sale of milk and milk products.

Buyers are served milk and milk


environment. All the parlors started

during Phase I are functioning well

and they provide the necessary

stimulus for higher sales of Milma

milk and milk products in the

district. Therefore 15 more parlors

are suggested to be established in

the district (Rs 9 lakh).

b. Milma Shoppe

Improving the visibility of Milma

milk and products is important to

scale up its business. Improving

205

Kannur District

the business is very crucial to

sustain milk production and



under the hard conditions in

Kannur district. Keeping this in

mind, MRCMPU started ‘Milma

Shoppe’ in Kannur district.

Shoppe works as a brand shop of

Milma with all Milma products





publicize its products. From the

past experience of Milma, the

Milma shoppe is an effective

instrument to promote milk and

other products. It is suggested

that five more shoppe be started in

towns during the project period (Rs

25 lakh).

c. PUF Bodies



consumers, MRCMPU started

investing in PUF insulated vehicles

and PUF Boxes. At present the

entire processed milk transported

is in PUF insulated vehicles. Seven

more PUF bodies are suggested at

a cost of 17.5 lakh for operating

new routes.



demonstrated that PUF Boxes are






preserve milk. Moreover freezers

are capital intensive and expensive

to maintain. The PUF boxes

supplied under the IDDP/SIQCMP

are doing good service to this end.

It is proposed that all the retailers

be provided with new or additional

PUF boxes at a cost of Rs 12 lakh


maintenance.


equipment to keep low

temperatures of the products like

flavored milk. Hence a few of them

are suggested as part of the

market promotion.


MRCMPU Ltd. is selling products


206

Kannur District

Peda, Palada Mix, Flavored milk

and ice cream. The share of milk



and is very crucial for its financial




Milma now has only less than 5

per cent market share in the ice

cream segment. The major hurdle

identified in the market expansion

in Kannur district is the absence

of user friendly and energy saving

freezers at the retail points. During

IDDP Phase I, SIQCMP the Milk

Union invested on retailer level

freezers and as a result the sales

of ice cream have increased from

3684 liter/month in 2010-11 to

14,404/month in 2013-14. A three

pronged market intervention-

appointment of more wholesale

dealers, equipping all retail points

with suitable size freezers and

wide publicity through TV

channels- is suggested. In

addition, canopy fitted vehicles are

recommended for special sales

promotion in tourist spots and

prominent on-road locations.

f. Advertising and Consumer

Awareness

Kannur district is facing fierce

competition from private dealers,

from within and outside the state.

Sustaining and further developing

the market is crucial to the very

sustenance of milk production in

the district as well as the state and

for food security and livelihood

support. Unfortunately, not

enough efforts are made in this

direction and it indirectly

causes several socio-political

repercussions in the field of dairy

production. Therefore it is

strongly recommended that an

aggressive consumer education


through all channels of media be

launched in Kannur district to

serve two purposes – market

promotion and awareness creation

amongst all the sections of people

and as a tool for socio economic

improvement (Rs 437.55 lakh).

6.6.7 ETP

The ETP is meant for Kannur

Dairy. The existing ETP is

inefficient and scale inadequate to

handle the effluents from the

207

Kannur District

208

Dairy. As the Kannur is gearing up

for production enhancement and

scaling up of daily processing, the

capacity enhancement of ETP is

inevitable. From the statutory and

hygiene point of view, it is

suggested that a higher capacity

ETP be established at Kannur.



Procurement



procurement in Kannur district is

being looked after by the P&I Unit

functioning in Kannur Dairy. The

Unit has established a network of

village level DCSs in the district to

procure milk from the dairy

farmers. The organization of milk

procurement is explained as fig.

6.3.

The Cluster DCS deliver the milk

to the nearest BMC. BMC DCSs

chill the milk before transporting

to Kannur dairy in insulated road

tankers. The Dairy in turn

processes and markets the milk in

Fig. 6.3 Organization of Milk Procurement in Kannur District

Milk

Producers

Cluster DCSs Non BMC DCSs BMC DCSs

(126) (7)(23)

`

KNR DAIRY

Key words: BMC DCSs – Dairy Cooperative Societies having Bulk Milk Coolers; Cluster DCSs: DCSs attached to BMCs for milk supply. KNR: Kannur

Figures in brackets- Number of DCS

Kannur District

towns and other urban

agglomerations within and outside

the district. The whole chain of

activities- procurement, processing

and marketing - is well


6.7.2 Profile of DCS in Kannur

District

A majority of the DCSs in Kannur

district are Anand Pattern

Cooperative Societies (APCOS).



elected Board of Directors. At the

close of March 2014 the district

had 156 functional APCOS. In

addition, there were twelve non-

APCOS functioning directly under

the department of Dairy

Development.


DCSs in Kannur district. From

amongst the 46,773 registered

milk producers in the district, on

an average, only 12,330 (26%)

poured milk in the DCS during

2013-14. The proportion pouring

milk is low because the non-

producers are not removed

from the DCS rolls due to





during 2013-14. The local sale was

19,853 LPD which accounted for

29 per cent of the daily

procurement indicating an

increase in demand in the local

area. The rate of procurement per

DCS is reasonable in comparison

to the other districts in Kerala.

However, the DCSs classified


shows that 12 DCS (8%) were

collecting less than 100 LPD and

yet another 20 (13%) DCSs

between 100 and 200 LPD. The

study showed that those DCSs

were not economically viable. The

reasons for the poor procurement

are that they are not in ideal

location, non-potential suppliers


farmers have better option for


some of those DCSs needs to be

considered.

Out of the 156 DCSs, only 7 DCSs

supplied milk directly to the dairy

during 2013-14. All others

supplied milk to the BMC DCSs or

Cluster DCSs. Seventy DCSs, 45

209

Kannur District

Table 6.8 Profile of DCSs in Kannur District 2013-14

Sl. No. Description Quantity 1 No. of functional APCOS (31-3-2014) 156 2 No. of farmer members/DCS 300(46773) 3 Av. number of suppliers 79 (12330) 4 Milk procured from farmers in DCS (LPD) 69303 5 Local sales (LPD) 19853 6 Milk supplied to milk union (LPD) 49450 7 Av. procurement/DCS (LPD) 444.25 8 Av. procurement/supplier (LPD) 5.62 9 Av. procurement price paid to DCS (Rs/Kg) 28.69 10 Av. price - Local sales (Rs/liter) 11 No. of DCs collected <100LPD 12 12 No. of DCS collected 101 - 200 LPD 20 13 No. of DCS collected 201 - 300 LPD 20 14 No. of DCS collected 301 - 500 LPD 89 15 No. of DCS collected >500 LPD 15 16 No. of DCS making one time milk collection

from farmers 17 Av. fat% 3.99 18 Av. SNF% 8.3 19 No. of BMC DCS (31-3-2014) 23 20 No. of BMCs 23 21 Installed capacity 52000 22 Av. collection through BMC (LPD) 41000 23 No. of DCS making supply at dairy dock 7 24 No. of DCS provided AMCU (including DDD) 68 25 No. of DCS provided analyzer only (including

DDD) 77 26 No. of DCS provided EMT 129 27 No. of DCS provided EMT only (no analyzer) NA 28 No. of DCS provided Gerbers test equipment

only 13 29 No. of Panchayat wards in the district 1215 30 % coverage under milk procurement 70 31 % wards having potential for milk collection 10 32 No. of DCS in own building 70 33 No. of DCS having adequate water supply

arrangements 125 34 No. of DCS having standby generators 0 35 No. of DCS having electricity 142 36 No. of milk cans supplied during last five years 1054 37 Milk spoiled (LPD) 38 Av. MBRT - milk supplied through BMC 150 39 Av. MBRT - milk supplied at dairy dock 50

Note: Figures in brackets total numbers

210

Kannur District

per cent of the total DCSs only

functioned in own buildings.

Others are in rented buildings.

Almost all of them have electricity

and water supply arrangements.

The absence of own buildings and

the lack of adequate water in a

few, are identified to be some of

the major constraints in

maintaining good Hygienic

standards of milk.


Malabar, only 43 per cent of the

DCSs possess AMCUs. A large

number off DCSs employ EMTs

and LRs for quality determination.

6.7.3 Coverage

The Kannur district has 1215


70 per cent are under milk

procurement, the recent survey

shows. The assessment is that

only a 10 per cent of the left out


starting new DCSs.

The geographical coverage is

excellent, but the number of

farmers pouring milk per DCS is

not encouraging.

6.7.4 Milk Quality and Quality Administration

The MRCMPU follows two-axis

pricing system ie, farmers are paid

on the basis the milk fat and the

SNF in the milk. The village

cooperatives are equipped to

determine the compositional

quality, fat and SNF. A few DCSs

are also equipped to detect added

preservatives, adulterants and

neutralizers, apart from MBRT

estimations.

Table 6.9 Kannur District Av. Milk Quality 2013-14

Parameter Value Fat % APCOS 3.99 Fat % non-APCOS NA SNF % APCOS 8.3 SNF % non-APCOS NA Av. MBR time BMC DCSs (Mts) 150 Av. MBR time direct DCSs (Mts) 133 No. of APCOS using/supplied AMCUs 68 No. of APCOS using/supplied Milk O testers & LRs 129

No. of APCOS using/supplied Gerber’s test & LRs 13

211

Kannur District



assessment in DCSs is crucial in

determining the milk price for the

farmer, in winning their confidence

and the overall sustenance of dairy

production. All the cooperatives in

Kannur follow either of the three

known procedures of quality

assessment namely conventional

milk testing (Gerber’s test for fat

and LR for SNF determination),

Milk-O-Tester for fat and

Lactometer for SNF and Automatic

Milk Collection Units (AMCU). Of

these, the AMCUs are the most

desirable because they are

convenient, error proof, quick and

transparent. The table 6.9 shows

that out of the 156 APCOSs, 68

possess AMCUs. Only less than

half of the DCSs possessing

AMCUs regularly use them

reportedly due to some snags in

the analyzers.

On the quality front, the procured


8.30 per cent SNF which are lower

than those in the other districts of


introduction of AMCUs can further

improve the quality. The average

MBRT of the milk supplied

through the BMC DCSs, 150

minutes, is good while the MBRT

in non-BMC DCSs, 50 minutes, is

very poor. In the years to come,

both the compositional and the



milk and therefore the Union

needs to pay more attention to

improve the bacterial quality. The

best way to usher in clean milk

production is to pay for better

bacterial quality. It is suggested

that an incentive for good quality

milk may be introduced as a

beginning towards this end.


Suggestions

Under the IDDP and SIQCMP a

total of Rs 327.21 lakh has been

invested in Kannur district for the


from supply of BMCs to milking

vessels and capacity building of

farmers and elected members. The

IDDP support is available for two

more years (2014-15 and 2015-

16). Therefore the support

requested under the NPDD is

meant to stabilize and carry

212

Kannur District

213

forward the achievements already

made. The suggested components

and the estimated costs are shown

in table 6.10.

6.7.6 DCS Buildings


sections, a sizeable number of

DCSs function in rented buildings.

Most of them do not have even the

minimum facilities for hassle free

milk collection and dispatch. BMC



issue. Therefore, it is suggested to

include a provision for subsidizing


Rs. one lakh per DCS, Rs 18.0

lakh. Eighteen DCSs are identified

to have the land and financial

capacity to do this with the

support mentioned above during

the project period (table 6.10).

6.7.7 Water Supply System

Developing water sources and

water supply are becoming

increasingly important in Kannur

district. Most of the DCSs find it

difficult to mobilize adequate

Table 6.10 Suggested Milk Procurement Activities in Kannur District


Units Unit


(Rs in Lakh)

1 Building construction 18 100000 18.00 2 Water supply system 9 60000 5.40 3 Bore well 9 25000 2.25 4 Open well 15 10000 1.50 5 Working capital assistance 3 30000 0.90 6 Aluminium cans 300 2500 7.5 7 Automatic milk collection

units 3 125000 3.75 8 Electronic milk tester 4 15000 0.6 9 Electric centrifuge 8 2500 0.2 10 Weighing scale 3 15000 0.45 11 Hand held billing device 8 10000 0.8 12 Management grant to DCS 8 30000 2.4 13 Subsidy to milk transport 370000 0.5 1.85 14 Subsidy to cattle feed

transport 45000 400 180 15 Incentive to better quality

milk 1533000 0.5 7.6 Total 233.20

Kannur District

capital for investment. Hence a

subsidy of rupees sixty thousand

per unit is suggested for nine

DCSs at an estimated cost of 5.4

lakh. Water harvesting, installing

water tanks and pumping facilities

are envisaged under the support.

In addition, digging nine bore wells

at the rate of rupees twenty five

thousand per unit and fifteen open

wells at the rate of rupees ten

thousand per unit are also

suggested for Kannur district

(table 6.10).

6.7.8 Automatic Milk Collection

Units

About 68 DCSs use AMCUs for

milk collection and quality

checking. It is important to have

stand-by units for replacement in

case of breakdown. It is suggested

to include three units as

service/replacement units. The

estimated cost is Rs 3.75 lakh

(table 6.10).

6.7.9 Subsidy for Cattle Feed

Transport


the DCSs. The farmers





cattle feed from the feed plants to

the DCSs entails cost. It is

suggested to subsidize the


quantity of cattle feed sold in

Kannur district comes to one

lakhs MT in three years. An

amount of Rs 0.4/kg is the average

transport cost. This may be

provided as a subsidy for cattle

feed so that the landed price of

cattle feed remains low (table

6.10).

6.7.10 Incentives for Good

Quality Milk




quality milk. As a result, the

bacterial content in raw milk has

reduced significantly. The low

bacterial count improves the

quality especially the organoleptic


milk, apart from heat stability and

longer shelf life. The farmers are

not compensated for their extra

efforts to produce clean milk. As a

214

Kannur District

beginning, it is proposed that the

top 2 per cent of the milk shall be

paid an incentive of 50 ps per liter

of milk. The daily procurement is

near to 70,000 LPD and the

incentives at the suggested rate













comfort. The shed should have

adequate space for the animal,

manger, feeding alley, urine and

dung channels. The shed must be

well ventilated, easy to clean and




facility for continuous water

feeding. Not many cattle sheds

conforming to the above standards

exist in Kannur district. Most of

the sheds are a mere make shift

shelter with mud/wood floor,











is only occasional. Therefore, any

support for good cattle shed is a

welcome gesture towards the

poorest of the poor dairy farmers

in Kannur district.

Considering those aspects, the

Milk Union roped in funds for

cattle shed modification and

construction of new cattle sheds


schemes (Table 6.11). During the

course of the field work, we found

that the floor of these cattle sheds

is well made using the allotted

funds. However, construction of

new cattle sheds is very expensive

in Kerala due to the high labor

cost and the cost of materials. The

budget provision of Rs 10,000/- is


215

Kannur District

216


overall cost of a new cattle shed.








Supplied to Farmers in Kannur

District


1 Cattle sheds 198


3 Rubber mats 833


5 Gen sets 5

6 Cow drinker 10

7 Chaff cutter - Motorised 2


size, the changing status of women

in society and better opportunities

for employment in other sectors of

the economy, the availability of

labor for dairy farming, is fast

declining. Hired labor for dairy

farm activity is uncommon in

Kannur district. Hence reducing

the labor input and making the

daily chores less arduous are








channeling support since a few

years. Table 6.11 shows the

physical achievements in Kannur

district in the immediate past.

It is suggested that the assistance

may be continued and funded

under NPBBDD. The components

suggested, the quantity and the

estimated cost can be found in

table 6.12.

6.9 Cattle Induction The absence of easily accessible

loan at reasonable interest from

banks remains a major obstacle

for the new entrepreneurs. Cattle

induction has been resorted to by

several development agencies in

the state as a support scheme. The

MRCMPU too distributed 450

heifers to 90 farmers in Kannur

district to promote cattle rearing in

the district.

Cattle keeping in the district is

largely a job of the economically

Kannur District

Table 6.12 Cattle Sheds and Farm Machineries Proposed under NPDD for

Kannur District


Unit Cost (Rs)





weaker sections of people (BPL

families) and women. It continues

to be a major source of securing

their livelihood especially women.

Therefore, the following number of

cattle (table 6.13) is recommended

to be inducted with the support

under NPDD.



activity.

Fifty percent of the cows and

fifty percent of the heifers

proposed are reserved for

women.



subsidy and the others 50

per cent.

The transportation cost

shall be met in full under

the scheme.

Table 6.13 Cattle Induction Program Suggested under NPDD for

Kannur District


Units

Unit Cost (Rs)


1 Capital expenditure 0 2 Purchase of animals 120 40000 48.00 3 Purchase of heifers 120 30000 36.00 4 Transportation cost 240 2000 4.80 5 Cattle/Heifer insurance 150 2500 3.75 Total 92.55

217

Kannur District


Insurance premium shall be


and the balance will be



Laboratories An amount of Rs 28.30 lakh had


of IDDP and SIQCMP schemes

and Rs 12.12 by the Milk Union

in upgrading the Kannur dairy

lab. The lab has reasonable

facilities including equipments

for routine tests. Therefore,

laboratory equipments are not

proposed in the project. But as a

part of modernization of the

hygienic systems in the dairy,



monitoring of FSMS and a high

capacity pressure jet are


The Kannur dairy is already an

ISO:22000 certified dairy by

DNV. The recertification and

surveillance audits and certain

equipments and software for the

maintenance of these systems

are to be acquired. The amount

suggested is towards this end.


equipped to carry out the MBRT,

a system to carry out the test by

the DCS staff and to link it on

line with the central lab are yet

Table 6.14 Establishment of Laboratories under NPDD in Kannur District


Units Unit Cost

(Rs.) Total

Cost (Rs in Lakh)

1 Central milk testing lab 0 0 20.00 2 Purchase of laboratory furniture

(set) 1 500000 5.00 3 High capacity pressure jet 1 100000 1.00 4 FSMS monitoring software 1 100000 1.00 5 Automatic data capturing system 1 2200000 22.00 6 Accreditation and certification of


7 Sub-total (6.2) 1 0 5.00 Total 54.00

218

Kannur District

to be implemented in full. Any

further upgradation of the DCS

labs needs to be considered only

after fulfilling this requirement.


Kits for Beneficiaries Under the CMP scheme the

MRCMPU supplied the articles

shown in table 6.15 to the farmers

in Kannur district.


farmers made little impact on

clean milk production because the

farmers discontinued the use of

chemicals and disinfectants once

the free supply was stopped.

Hence the supply of free

detergents/chemicals for udder/

utensil cleaning is not

recommended.

On the other hand, the stainless

steel utensils (the milking utensils

and carrying vessels) are being

used by the farmers and they

whole heartedly welcome the

component. It has helped to

improve the initial quality of milk.

As per the norms, many more

farmers are to receive the vessels

in Kannur district. Therefore the


supplied to those farmers who are

yet to receive them through the

DCS free of cost under the NPDD.

The numbers suggested and the

financial requirements are given in

table 6.16.

Milking machines are very useful

for the farmers. Our field exposure

visits show that almost all the

beneficiary farmers use the

machines although continuous


suggested that fifteen milking

machines may be supplied to the

farmers at subsidized (75%) rate

under NPDD. It is also suggested

Table 6.15 CMP Kits Supplied under SIQCMP Scheme in Kannur District

Sl. No. CMP Kits Physical Financial

(Rs in Lakh) 1 Detergents & chemicals to DCSs lot 12.12


219

Kannur District

Table 6.16 CMP Kits and Milking Machines suggested under NPDD for

Kannur District


Units Unit

Cost (Rs) Total

Cost (Rs in lakh)

1 Stainless steel utensil kit/accessories 1500 400 6.0 2 Electricity operated milking machine

& other equipments for hygienic milk handling at village/farmer level

15 55000 8.25


Total (7.0) 0 17.25

that a few hand operated

machines shall also be supplied to

the needy farmers after making a

scientific and methodical field trial

in association with KVASU.


(TIS) The technical input services


breeding, health care including



the participating farmer members.

The TIS was a major component


schemes implemented in the

district. The major components

and the financial and physical

achievements in Kannur district

can be found in table 6.17.






services at farm points, however,

are debatable, the HH survey

Table 6.17 Technical Input Services: Components and Achievements in

Kannur District

Component Physical Achievements

Financial IDDP/

SIQCMP (Rs in Lakh)

Union/ Beneficiary (Rs in Lakh)

Total (Rs in Lakh)

Technical input services 200 26.40 11.31 37.71

220

Kannur District

shows. Since some of those

services are in the state domains,

a change in the service delivery

systems requires policy decisions.

To avoid duplication, such services

(AI, health care, home stead fodder

production, etc.) are not suggested

to be included under the NPDD.

The components suggested, the

most essential ones, on a priority

basis can be found in table 6.18.


replacement of the ones in use in

AI Centers under the Milk Union.

The animal health and breeding

input camps include fertility


the farmers. It is a DCS based









other hand, large land holdings

and fallow lands are potential

sources for fodder production –

fodder as a value added crop in

irrigated land. The fodder so

produced shall be marketed

among the DCSs members at cost

price. The scheme shall be a

flagship program of NPDD.


Communication

Technology Networking The MRCMPU, apart from being a

farmers’ organization, is also a

multi- crore business concern. Its


Table 6.18 Technical Input Services Proposed in Kannur District under

NPDD


Units Unit

Cost (Rs) Total Cost (Rs In lakh)

1 Liquid nitrogen containers 6 30000 1.80

2 Audio visual kits etc 1 200000 2.00 3 Animal health &

breeding input camps 180 5000 9.00 4 Chaff cutter 36 20000 7.20 5 Commercial fodder


221

Kannur District





keep abreast with its competitors.

It is also essential that the whole



the farmers. Unfortunately the

Milk Union is in the nursery stage

of exploiting the I&C technology.


dairies are computerized and

internally networked (intranet).

The milk Union proposes to

expand the I&CT so that the

system functions as a client

server architecture network

with Six centers, one in each







districts and DCSs. The details of



shared among the district projects.

The share of Kannur district is

illustrated in table 6.19.


Kannur District

Sl. No. Expense Head


Units Amount (Rs in Lakh)

Purchase of computer/HHB 1 Desktop 0.50 13 6.50 2 Laptop & Netbook 0.60 10 6.00 3 Hand held range of computers 0.30 38 11.40 4 A4 size flat bed scanner 0.05 2 0.10 5 Rack server 9.00 2 18.00 6 42 U server rack 1.00 0.00 7 Server storage device 8.00 1 8.00 8 Tape backup 8.00 1 8.00 9 UPS for server 7.00 2 14.00 10 Weblogic server suite purchase 15.00 1 15.00 11 Oracle database 12C 15.00 1 15.00 12 Antivirus software 1.00 1 1.00 13 Hardware & networking 10.00 1 10.00 14 Software consultation charges (AMC) 5.00 1 5.00 15 Onsite software analysis and evaluation

for union and DCS purchase 5.00 1 5.00 Total 123.00

222

Kannur District








and product improvement by

MRCMPU. Apart from Union

employees, the staff and the

elected representatives of the

DCSs and the Board are also

trained on appropriate areas.

The table 6.20 shows the numbers

trained in various categories from

Kannur district. The DCS staff has

been trained at the HRD centre,

Kozhikode under MRCMPU on the

relevant subjects. The trainers

included those from within the

organization and also those invited

from other organizations. The

duration ranged from one to three

days and the subjects handled

were those relevant to the

concerned groups.



a visit to the processing


Table 6.20 Employees and Elected Members Trained in Kannur

District

Sl. No. Course


1 Cooperative development program a No. of programmes 15 b No. farmers trained 2288 c FIP- local farmers attended 1763 d Management orientation 84

2 Training of BMC/DCS/MCC staff 28 3 Training of DCS secretary 130 4 Training of DCS employees 98 5 Training on AI 29 6 Training of farmers on GMP/GHP 4021 7 Training of farmers on AH practices 79 8 FIP 764 10 Training in marketing 18 11 Training of management committee members 57

223

Kannur District

are the trainees. The Farmers

Induction Program is normally




farmers has been under taken in

APCOS DCSs. The training












trainings were partially useful in


knowledge.

An amount of Rs 23.47 lakh has

been spent on various training

programs from IDDP and CMP

Phase I and II in Kannur district.


Suggestions

19. The future training

programmes especially those

for the middle level employees

starting from Supervisors,

should be hands-on training



20. The farmers’ training should

be organized in villages

themselves with the support

of LSG and the Village


MRCMPU.








and the results closely

watched and monitored.






marketing management.

They should be provided


excellence outside the state.




224

Kannur District

225

Modern Management Systems



exposed to new developments

in the dairy sector elsewhere

in the country (eg. Schreiber


vision and outlook.


phased out.



6.21.


Kannur District

Kannur Dairy shall maintain






stores and spares, etc. are






local milk procurement. During

lean season the Milk Union is

procuring large quantity of milk

from other states for which

payments are made in advance. In

addition, SMP is to be stocked to

meet any contingencies.

During flush season funds are

needed to stock ghee, converted

SMP, cream, etc. which are

produced in excess of normal

market requirements. Union is

supplying cattle feed and other

inputs to the societies on credit

basis. Present supply of cattle feed

to societies is more than 1000 MT

per month. It is expected to

increase significantly in the

coming years.

Table 6.21 NPDD HR Kannur District 2014-15 to 2016-17


Units Unit

Cost (Rs)


1 CD programme 6 80000 4.80 2 Training on mastitis Person 600 300 1.80 3 Training DCS employees &

elected members Lot 20.00 4 MRCMPU employees Person 125 3000 11.00 5 Institutional skill development 20.00 Total 57.6

Kannur District

Table 6.22 Milk Collected from Kannur District, Milk Value for 21 Days

Milk Procurement (LLPD)

2013-14 (Actual)

2014-15

2015-16

2016-17

Average Milk Price (Rs.)

Days Total Milk

Value (Base Year)

(Lakh)


0.51 0.54 0.6 0.65 28.88 21 309.30 394.21

Union is at present resorting to

short-term loan from banks to

meet its working capital

requirements. As the volume of

business is increasing, the

dependence on bank loan will be

more in the coming years.

Value of 21 days milk collected

from the societies by the Malabar

Union is more than Rs 309 lakh in

the year 2013-14 which is

expected to increase to Rs 394 in

the next three years (table 6.22).

The Union shall meet this expense

from internal sources if working

capital for SMP, cattle feed

purchase etc can be funded under

NPDD as a one-time assistance. A

total amount of Rs 117.30 lakh

(table 6.23) is suggested towards

the Working Capital (Purchase of

milk powder, cattle feed and

packing material) for Kannur

District. The amount suggested is

lower than the amount required to

pay the milk value for 21 days

(table 6.22).

Table 6.23 Working Capital Requirement for Kannur District

Components Unit No. of Units

Unit Cost

2014-15 (Rs Lakh)

2015-16 (Rs Lakh)

2016-17 (Rs Lakh)

Total Cost (Rs

Lakh) Purchase of milk powder KG 28000 300 24.00 24.00 36.00 84 Purchase of packing material KG 3000 210 2.10 2.10 2.10 6.3 Purchase of cattle feed MT 150 18000 9.00 9.00 9.00 27

Total 35.1 35.1 47.1 117.3

226

7. KASARAGOD DISTRICT

Contents


7.1 General Features .......................................................................232



7.4 Milk Chilling Facilities in Kasaragod District ..............................235

7.5 Milk Processing .........................................................................236

7.6 Milk Marketing ..........................................................................242




7.10 Establishment of Laboratories .................................................261

7.11 Clean Milk Production .............................................................262


7.13 Information and Communication Technology Networking ........265


7.15 Working Capital – Kasaragod District .......................................269

Kannur District

Kasaragod District

228

Kannur District

229

Kannur District

230

Executive Summary

Kasaragod, while not a front line

district in dairying in Kerala, has a

vast majority of its population

dependent on livestock rearing.

However, the period since 2000

has witnessed a serious setback

with the cattle numbers declining

55 per cent (from 2001 to 2012)

and milk production falling by 27

per cent from 1997-98 to 2011-12.

Market survey shows that

demand- supply gap is widening in

the district and is currently of the

order of 1.8 LLPD. The share of

MRCMPU is under 19 per cent

which is not satisfactory. The Milk

Union is facing fierce competition,

including those from the

neighbouring Karnataka. Hence,

an aggressive marketing strategy

with proper infrastructure

development, periodic market

survey on consumer preferences,

product development and

marketing is called for. The

estimated cost of market

promotion works out to Rs 382

lakh.

One of the limitations of MRCMPU

in Kasaragod is the low milk

processing capacity of the dairy at

Kanhangad. The installed capacity

is only 30,000 LPD, but during

2013-14 the dairy processed

35,530 LPD. At the current growth

rate of 7 per cent per annum the

processing capacity will have to be

increased to 45,000 LPD in the

next three years. The

enhancement of capacity and

modifications will cost Rs 282.0

lakh.


extensive network of DCS and

BMCs for milk procurement and

testing. While all BMC level DCS

have facility for MBRT estimation,

the field level milk testing requires

further refinement. The major

constraints identified are lack of

convenient buildings for DCS,

inadequacy of good quality water,

lack of incentives for clean milk


feed transport. The procurement

support programmes suggested in

Kasaragod would cost Rs 449 lakh.

It is recommended that a central

milk testing lab be established at

the Kozhikode dairy by pooling the

Kasaragod District

funds from all the districts

eliminating duplication of

investments. The estimated cost is

Rs 32.00 lakh.

On the production front, one of the

major problems in Kasaragod is

the low motivation among the poor

and SC/ST groups in cattle

keeping. In order to attract a larger

number from among these groups,

a cattle induction programme

estimated to cost Rs 92.55 lakh is

suggested. Among the cattle

keepers, lack of proper cattle

sheds and absence of farm

machineries too is a problem.

Modernizing old cattle sheds,

supporting new sheds and

supplying machineries and

equipment costing Rs 70.0 lakh is

suggested. The other farmer

programmes suggested are


utensils, milking machines, animal

breeding and health cover and

commercial fodder production at a

cost of Rs 40.15 lakh. Along with

these programmes the extant HRD

through training and skill

development may also be

continued but at a lower scale, the

cost of which is expected to be Rs

27.4 lakh.

MRCMPU needs to build an


communication system by

networking various units and

DCS. The suggested system- a

client server architecture network

with a center at each district


Wayanad, Kannur, and Kasaragod)

and a central server system linking

all the six centers - will make data

and information available to all the

districts and DCS. The estimated

cost is Rs 115.80 lakh.

Abstract of suggested programmes

is as follows.

231

Kasaragod District

Component Amount

(Rs in Lakh)




Cattle sheds and farm mechanization 80.00


Establishment of labs 32.00

CMP kits 17.65

Technical input service 28.20

Information and communication networking 115.80

HRD 57.45


Total 1536.60

232

Kasaragod District

7.1 General Features The district of Kasaragod located in

the northern tip of Kerala was

carved out of Kannur in 1984 and

occupies an area of 1992 sq.km. It

is bordered in the north and east

by Karnataka State, Kannur

district in the South, and Arabian

sea in the West. Based on physical

features, the district can be divided

into three natural divisions - the

lowland bordering the sea, the

midland consisting of the

undulating country and the forest-

clad highland on the extreme east.

For the purpose of administration

the district is sub divided into two

Taluks, Hosdurg and Kasaragod

and seventy five villages. The

district has one District Panchayat,

six Block Panchayats, seventy five

Gram Panchayats with a total of

600 wards and two Municipalities

with seventy five wards. The district

houses 13.07 lakh people and has

a density of population of

656/sq.km. (2011 census).

Agriculture forms the mainstay of

the population of the district. The

average land holding size is 0.469

ha. Nearly 95 per cent of the land

holdings are marginal (less than 2

ha) and their share in the total

cultivated area is 70 per cent. In

hilly areas the important crops are

rubber, cashew and ginger. In the

skeletal plateau areas, cashew

trees are cultivated, while in some

patches, areca nut, pepper and

cocoa are grown. In the coastal

tract, paddy, coconut, areca nut,

cashew, tobacco, vegetables and

tapioca are cultivated.

Livestock rearing is a subsistence

activity and cattle are the

predominant species with farmers

adopting crossbreeding of cattle as

a means of genetic improvement

for higher milk yield. But

Kasaragod has the highest

proportion of native cattle among

all the districts in the State.

Recently there has been growing

interest to promote the native

cattle of Kasaragod as a breed –

‘Kasaragod Dwarf.’

The Department of Animal

Husbandry is the major service

provider for cattle breeding and

heath care. The Department has

one DVC, two RAIC, six Veterinary

Hospitals, thirty three Veterinary

233

Kasaragod District

dispensaries and 245 AI centers in

the district. The DDD also has its

presence in the district with a

district officer at Kasaragod, four

Dairy Extension Service Centers,

and one Quality Control Unit. The

MRCMPU has a dairy at

Kanhangad with a capacity of

30,000 LPD with procurement and

marketing division under it.

7.2 Trend in Cattle Population The cattle population in the


2012 (Fig. 7.1), with both the total

and cows in milk showing

declines; the total cattle

population declined by 55 per cent

and cows in milk by 58 per cent.

The in-milk buffalo had mixed

fortunes. Between 1996 and 2007

the numbers sharply declined from

3943 to 800 and marginally gained

between 2007 and 2012. Although

the accuracy of data on cattle


certain that many dairy farmers

opted out of dairying in the recent

past due to several factors, both

economic and otherwise.

7.3 Trend in Milk Production According to ISS estimates (Fig.

7.2) - the annual milk production

increased from 70.62 thousand MT

to 81.66 MT between 1997-98 and

Fig 7.1 Cattle population Kasaragod District(source ISS, DAH. GOK)

0

50000

100000

150000

200000

250000

Num

bers

Total Cattle 192866 143637 82604 87824

Cows in milk 45261 38541 25525 19200

Buffalo in milk 3943 463 800 1400

1996 2003 2007 2012

234

Kasaragod District

Fig 7.2 Milk Production Kasaragod district(source ISS DAH GOK)

0

10

20

30

40

50

60

70

80

90

100

Milk

'000

MT

70.62 81.66 66.14 88.17 51.94

97-98 2001-02 2004-05 2008-09 2011-12

2001-02, declined to 66.14

thousand MT by 2004-05 and

made spectacular recovery and

increase to 88.17 thousand MT by

2008-09. But the latest estimate of

the DAH shows that milk

production again fell to an all time

low of 52 thousand MT in 2011-

12. However the milk procurement

figures of MRCMPU, for Kasaragod

district (see the graph below)

shows that the milk procurement

from the Kasaragod district is in

sharp increase from 1994-95.

Although this could be construed

as direct indication of increased

milk production, it is also possible

that the observed increase in milk

procurement is due to other

factors – phasing out of traditional

milk disposal channels, increase in

number of APCOS over the years

and consequent increase in

procurement volume of MRCMPU

(before he formation of APCOS the

milk was being sold in local

market through vendors, direct

producer to consumers and

traditional societies selling milk in

towns for which there was no

account or data). In any case the

accuracy of the ISS data is

questionable.

235

Kasaragod District

236

7.4 Milk Chilling Facilities in

Kasaragod District The BMCs installed in DCS apart

from the dairy at Kanhangad

provide the milk chilling facility in

Kasaragod district. The position of

milk chilling in the district during

March 2014 is as follows.

Table 7.1 Status of Milk Chilling Facility Kasaragod District, 2013-14


1 No. of BMCs commissioned up to March 2014 12 2 No. of DCS in which BMCs are positioned 2014 12 3 No. of Cluster DCS attached to BMCs2014 118 4 Total installed capacity of BMCs – liters per day

(LPD) 43000

5 Average milk collected through BMC 2013-14 in LPD

27800

6 % capacity utilization 65 7 Av. MBRT of BMC collected milk - Minutes 127 8 Av. SPC of BMC collected milk – CFU/ml 90000 9 Av. Coliforms of BMC collected milk – CFU/ml 40000 10 No. of Milk Chilling Plants Nil

Kasaragod District

As the district has adequate

chilling capacity to accommodate a

possible growth in milk production

and procurement in the next three

years additional chilling facility is

not recommended.

7.5 Milk Processing Kasaragod is not among the

frontline dairy districts in the

State. The district has one dairy of

30,000 LPD capacity, located in

Kanhangad, for processing and

packing milk and milk products.

The dairy under the MRCMPU is

the youngest Dairy commissioned

in 2002.



The average procurement of milk

during 2013-14 was 35,530 LPD of

which 27,800 liter (78 per cent)

was procured from the BMCs as

chilled milk. The remaining 22 per

cent of raw milk received was

chilled in the Dairy and stored. In

addition to the procurement from

home district the dairy received

the following quantity of milk from

other sources.

Other units/district 7455 LPD

Outside state 4132 LPD

Reconstitution + excess adjusted 2131 LPD

Therefore the daily handling

averaged 49,256 LPD, 64 per cent

above the installed capacity.

During festival and Flush period

the daily handling further went up.

In addition to the liquid milk the

unit make curd at an average 3695

kg/day (2013-14) and buttermilk,

154,474 pkts./month.

Dairy development activities of the

government, state and central, and

Milk Union is expected to raise

milk production and procurement

in the District. Therefore,

procurement and processing

capacity of the Dairy calls for

expansion.

7.5.2 Milk Processing

Infrastructure –

Kasaragod Dairy

The processing facility in

Kasaragod Dairy has been

upgraded with the support from

GOI and using own funds. The

details of governmental funds

utilized can be seen from table 7.2.

236

Kasaragod District

Table 7.2 Amount Spent and Infrastructure Created under CSS in

Kasaragod Dairy

Financial (Rs in Lakh) Sl.

No. Component IDDP Phase I & II

CMP Phase I & II

Physical Facility

1 Civil structure (RMRD, production block, cold store, etc.

57.5 Nil Production block, general go-down

2 Processing equipments & machineries added

101.84 Nil Pasteurizer, milk silos, boiler, refrigeration equipments, Homogeniser ETP, etc.

Total 159.34

The important equipments and

machineries now available in

Kasaragod Dairy are listed in

table 7.3. They are inadequate to

carry on the present level of

operations. Also some of them

(pasteurizer) deserve to be

replaced due to the usual wear

and tear while some others (Tri-

purpose Centrifuge, homogeniser

etc.) are to be scaled up

considering the growth in

procurement and the market

demand.

The Dairy transfers surplus fat to

Kannur dairy, which is functioning

near full capacity. Moreover, some

quality deterioration was taking

place by mixing the old and new

cream during storage which was

adversely affecting the ghee

quality. Therefore, the Milk Union

had taken a policy decision to

equip Kasaragod Dairy to produce

ghee. The addition and

modification to create space to

install equipments is going on. A

Cream storage tank and a cream

pump have been purchased in

advance under IDDP phase II and

are in the dairy at the time of

survey.


Recommendations

The installed capacity of the dairy

is insufficient to carry out the

current scale of operation. It is

not difficult to foresee that the

237

Kasaragod District

Table 7.3 Processing and Allied Equipments and Machineries Installed in

Kasaragod Dairy

A Processing/Storage Equipment Capacity Quantity 1 Bulk coolers 2 Milk chillers 10 KLPH 1 3 Milk pump 10 KLPH 4 4 Horizontal milk storage tank 15 KLPH 2 5 Pasteuriser 10 KLPH 1 6 Milk silo 60 KL 1 B Fat Handling 7 Sour milk separator 500 LPH 1 8 Cream storage tank 2000 LTS 2 9 Cream pump 5000 LPH 1 10 Cream transfer tank 1000 LTR 2 C Milk Marketing 11 Pouch filling machine DHG mechanical 5000 PPH 4 12 Pouch crates 10 LTR 5000 13 Milk pumps 10000 LPH 2 14 Cold store conveyor 1200 cr/hr 1 15 Pouch crate washer 1200 cr/hr 1 16 Date coding device for pouch filling machines 60 IMP/Mnt 6 D Service Equipment 17 Refrigeration compressors

(make/model/type/cap.) 20 TR 3 18 Motor for refrigeration compressors (KV) 40 HP 3 19 Ice bank tank 100 KL 1 20 Chilled water pump 90 KLPH 2 21 Chilled water agitator 5 HP 2 22 Air handling unit for cold storage/Deep freezer

(make/model/cap) 3 TR 1 E Steam Raising Plant 23 Boiler (oil/coal) 1 MT 1 24 Chimney 32 Mts. 1 F Compressed Air System 25 Air compressors 50 CFM 3 26 Receivers 500 lts. 3 G Industrial- Electrical 27 DG set 150 KVA 28 DG set 250 KVA 1 29 Transformer 250 KVA 1 H Water Supply System 30 Water storage tank 50 KL 1 31 Water pumps 20 KLPH 1

238

Kasaragod District

demand for milk, curd, ghee and

sambharam will increase in the

near future and the Union needs

to urgently strengthen the curd

and ghee production apart from

the facilities for milk processing as

it enables the dairy to generate

extra income on minimal

investment. Therefore, it is

recommended that the following

production facilities be

strengthened/added on priority.

7.5.4 Additional Processing

Capacity for Kasaragod

Dairy

The additional processing capacity

for Kasaragod Dairy is examined

on the basis of:

growth in milk procurement

peak period procurement

demand supply gap in the

market

potential for market

expansion

available infrastructure for

processing

The past experience suggests that

the milk procurement in

Kasaragod will grow at the rate of

7 per cent per annum and during

peak three to four months at the

rate of 14-15 per cent above the

normal procurement. Hence the

current procurement, 36,000 LPD

is expected to reach 45,000 LPD in

the next three years and 52,000

Curd process hall Kasaragod Dairy

239

Kasaragod District

240

LPD in the next five years. And

there is little scope to divert the

milk until the newly planned

Kannur Dairy is commissioned.

Moreover, the supply demand

position in Kasaragod is in favour

of market expansion and larger

coverage. Considering the above

requirements it is suggested to

enhance the processing capacity to

50,000 LPD in a phased manner

(as suggested in table 7.4).

a. Milk Pumps - Three milk

pumps available at Dairy are

very old and of very poor

efficiency. Hence they are to be

replaced.

b. SS Pipes and Fittings – In

order to provide additional milk

lines and cleaning lines for the

new equipments additional SS

pipe lines and valves are

required.

c. Pasteurizer - The existing

pasteurizer is giving lesser

throughput due to prolonged

usage. Heat transfer efficiency

is very low and the spare parts

of the pasteurizer are not easily

Table 7.4 Equipments and Machineries Suggested for Kasaragod District

under NPDD

Sl. No.

Milk Processing & Marketing Equipments Capacity No. of

Units Unit Cost

(Rs)


1 Milk pump 10 KLPH 3 50000 1.5

2 Horizontal milk storage tank 10 KLPH 0 500000 0

3 SS pipes and fittings Lot 1 500000 5

4 Pasteurizer 10 KLPH 1 2500000 25

5 Homogenizer 10 KLPH 1 6000000 60

6 Tri-purpose centrifuge 10 KLPH 1 3500000 35

7 Automatic CIP system 20 KLPH 1 4500000 45

8 Cream pumps 5 KL 1 300000 3

9 Pouch filling machines 5000 PPH 1 1000000 10

10 Cold store (including equipments) 5 TR 1 2500000 25

11 Deep freezer room 8 TR 1 3500000 35 12 Date coding devices for pouch

filling machines 60

imp/mnt 5 150000 7.5

13 LT electricals LS 1 3000000 30

Total 282

Kasaragod District

available. Hence, it is essential

that the old pasteurizer be

replaced by a new pasteurizer

of 10 KLPH with better

regeneration efficiency.

d. Homogeniser - The Dairy has

an old homogeniser of 5 KLPH

capacity, which does not match

with the flow rate of 10 KLPH

pasteurizer. As about 70 per

cent of the milk sale is in the

form of homogenised milk,

which is increasing, to meet the

demand the dairy has to have a

10 KLPH homogeniser.

e. Tri-purpose Centrifuge - At

present the dairy has only one

tri purpose centrifuge which is

being used for milk

standardisation as well as skim

milk production for curd

making. To complete the

processing in time as per the

market demand installation of

an additional tri purpose

Centrifuge is called for.

f. Automatic CIP System - The

dairy does not have an

automatic CIP system to ensure

cleaning and sanitisation of

various equipments as

prescribed in the FSSA Act.

Hence, the existing manual

cleaning system is to be

replaced with an Automatic CIP

system.

g. Cream Pump - In order to meet

volume of fat to be handled in

the near future a cream pump

will be essential.

h. Pouch Filling Machine - The

number of pouch filling

machines in the Dairy is

inadequate to handle the

volume of milk, curd and

butter milk planned to be

packed. Hence, a new pouch

filling machine is to be

purchased.

i. Cold Store - The present cold

store equipments in the Dairy

does not have adequate

capacity to store the milk and

milk products as per the

temperature specified in FSSA

act to maintain the cold chain.

Hence additional equipments

are to be installed in the cold

store.

241

Kasaragod District

j. Deep Freezer Room - To

handle the increase in ice

cream sale, the storage

capacity of ice cream is to be

improved by the installation of

deep freezer rooms and

refrigeration compressors.

k. Date Coding Devices - The

present date coding devices are

of friction type mechanical

coders creating problems

leading to customer complaints

and legal issues. In order to

have better clarity in printing of

manufacturing date on the

pouches it is proposed to

install thermal printers in the

pouch filling machines.

l. LT Electricals - The

installation of above

machineries requires proper

electrical power supply.

7.6 Milk Marketing

7.6.1 Introduction


functions of MRCMPU. This

chapter provides an overview

of the marketing organization

of MRCMPU in Kasaragod,

infrastructure available, sales

achievements of liquid milk and

major milk products during 2013-

14, identifies the key issues and

problems and finally makes


them.


The marketing wing attached to

Kasaragod Dairy organizes the

marketing functions. The

marketing wing has a Marketing

Organizer and three Marketing

Assistants (Field Staff). The

Kasaragod Dairy markets liquid

milk and milk products within the

district. The marketing area of the

Dairy is subdivided in to three

zones and each zone is under a

Marketing Assistant.

7.6.3 Supply Chain

The Union has more or less similar

supply chain for all the districts.

The milk and the milk products

reach the consumers from the

processing units through the

retailers designated as dealers.




242

Kasaragod District

243

wholesalers. There were 926 retail

outlets and 14 wholesalers in

Kasaragod at the close of March

2014. A well developed intending

and distribution system exist. The



payment. Credit facilities were




shown in table 7.5. It may be seen

that while the growth in sales of

milk is marginal, the growth of

sales of curd, ice cream and ghee

are substantial.


Share of MRCMPU

Market size is measured as the

total volume of a given market.


standard practice of competitive



for liquid milk in Kasaragod

district during 2013-14 was

57,193 LPD (Milma 44,193 plus

13,000 by the competitors). In this

method the sales of competitors

are assessed through a series of

interviews and its accuracy

generally is moderate. The sales in

this method mostly pertain to the

urban areas excluding the rural

market. Yet another way of

calculating the market size is by

understanding the end user

purchases. The sample survey in

rural and urban area conducted in

six selected locations by the study

group (June 2014) shows that the

Table 7.5 Progress in Sale of Milk and Milk Products in Kasaragod, 2013-14

Quantity No. Milk/Product

2009-10* 2013-14 1 Liquid milk (LPD) 43280 44193 2 Curd (Liter/day) 2805 3568 3 Ghee (Kg/month) 10910 12149 4 Ice cream (Liter/month) 570 2229 5 Butter milk (200 ml Pkts./day) 4076 5613 6 Milk peda (Kg/month) 397 728 7 Sip up (Pkts./month) 14859 10265 8 Palada (Kg/month) 150 486 9 Milma plus (Bottles/month) 706 2591

* Previous benchmark

Kasaragod District

Table 7.6 Estimated Market Size of Milk in Kasaragod District, 2014


1 Population number 798328 509047 1307375 2 Cattle holdings % 25 NA 3 Potential consumers (1 x 0.2) 598746 509047 1107793 4 Actual % consumers as per HH survey 74 95 5 Actual consumers (3 x 4/100) 443072 483595 926667 6 Per capita cons. – Survey result 151 174 7 Household consumer demand LPD

(6 x 5/1000) 66904 84145 151049 8 Inst. demand 20% of urban consumption 0 16829 16829 9 Total demand (7+8) 66904 100975 167878 10 Milma supply 44193 11 Market share % 26

per capita consumption among the

rural population in Kasaragod is

151 ml and urban 174 ml per day.

The market size is shown in table

7.6.


Kasaragod is huge, 1.68 LLPD

while the MRCMPU marketed

44,193 LPD and their competitors

13,000 LPD adding up to 57,193

LPD leaving a gap of 1.22 LLPD.

The market share of Milma is just

under 26 per cent of the market

size which is low. The market

share of competitors at six per

cent seems to be under estimated.

The survey shows that a small

segment of the population, 13 per

cent rural and 10 per cent urban,

substitute milk powder for milk.

The entire institutional segment is

catered to by the private dealers

from within and outside the State.

The low market share of Milma is

sufficient justification for NPDD

support to develop a business plan

and marketing strategy for the

district.



Status

Table 7.7 presents the various

support infrastructure and

logistics available in Kasaragod

for market promotion.

244

Kasaragod District

Table 7.7 Existing Milk Marketing Facilities in Kasaragod, 2013-14

Sl. No. Component Numbers

1 Wholesalers for the produce 14 2 Dealers (Retail outlet) for milk 926 3 Milk parlors (No.) 4 4 Milma shoppe (No.) 3 5 PUF vehicle container (5 MT) (No.) 1 6 PUF vehicle container (3 MT) (No.) 12 7 PUF vehicle container (1.5 MT) (No.) 2 8 % milk routes using PUF vehicles for milk

distribution to retail outlets 100 9 PUF box 50 ltr. (No.) 58 10 PUF box 100 ltr. (No.) 28 11 PUF box 150 ltr. (No.) 30 12 PUF box 25 ltr. (No.) 87 13 PUF box 460 ltr. (No.) 3 14 Shipper box for ice-cream 30 15 200 liter freezers for dealers (No.) 80 16 200 liter freezers glass top for dealers (No.) 6 17 120 liter freezer (No.) 70


busy public places to attract



products they also serve as a

media to improve the visibility of

milk and milk products. Four such

parlors exist in Kasaragod district.


infrastructure provided,

introduction of PUF insulated

vehicles for milk distribution and

PUF boxes in the retail outlets are

worth mentioning. With the

addition of the PUF containers

under the IDDP scheme during the

yester years, the entire milk

transport from the Dairy has been



sizes, 50-150 liter, provided at 50

per cent subsidy in the retail

outlets ensures perfect end-to-end

cold chain, namely from the Dairy

to the consumer. Our field

exposure visits revealed that

retailers whole heartedly welcomed

the PUF boxes because they are

viable alternatives for the energy

245

Kasaragod District


less space, are easily movable and

easy to clean. The boxes retain low

temperatures for about 3-4 hours

during which the entire milk

generally get sold out.




5000 a piece for storing frozen


cream, sometimes milk is also

stored in these. There are many

takers for the freezers and almost

all of whom we visited was found

to use them. The Visi-coolers are

provided at subsidized price to

store products like flavored milk,

cup curd and so on.

Kasaragod district is under

perpetual threat from the border

districts of Karnataka in the sales

of milk and milk products. The

Karnataka marketers are operating

at an advantage as the selling

price for milk in Karnataka is

always lower than that in Kerala.

Added to that the marketing

network created by MRCMPU in

Kasaragod is inadequate to

counter the invasion of milk and

milk products from across the

border. Because of falling milk

production in rural areas the

market for milk and milk products

is expanding rapidly. Also, market

analysis shows that there is wide

gap in the supply demand

position. To take advantage of

these favorable factors and to

safeguard the interest of the milk

producers in the district further

expansion of marketing outlets

and developing an aggressive

marketing strategy is called for.


being held and Dairy visits


activities taken up by the dairy,

starting from milk reception to

sales through the retail outlets.

The consumers also get an

opportunity to gather first hand

information on quality assurance

followed at various stages of milk

reception, processing and

marketing. Advertisement boards

and banners are exhibited in busy

places for the publicity of the milk

and milk products.

246

Kasaragod District

247


Recommendations

The crux of the issues in

Kasaragod is related to the normal

market forces. Milk is cheaper

across the border. Whenever the

consumer price equilibrium

changes the inflow of milk from

Karnataka tends to increase. The

institutional segment is dominated

by private traders bringing milk

from outside the State. At the

same time milk production is

livelihood intensive to a vast

majority of marginal and sub

marginal farmers of the district.

Therefore, the question is how to

safeguard the interest of

Kasaragod farmers? The MRCMPU

has to scale up their marketing

activities in Kasaragod is the

answer. The marketing facilities

available in Kasaragod district are

inadequate to provide quality

service to the consumers. The

activities and facilities required to

improve the marketing of milk in

Kasaragod is shown in table 7.8.

To establish quality as a

Sustainable Competitive

Advantage (SCA), MRCMPU will

continue to make all-round efforts

to improve the real and perceived

quality of milk and milk products.

As a part of the strategy

Transporter Cum Distributor

(TCD) scheme, Redistribution

scheme, Super Market scheme,

Frozen milk scheme, New dealers

incentive scheme, starting of Drive

in Parlors and so on will have to

be promoted.

a. Milk Parlors

The number of milk parlors now

functioning in Kasaragod district is

few. The already functioning

parlors have proven that they are

an effective media to promote the

sale of Milma milk and milk

products. Therefore nine parlors

are recommended for the district.

It is suggested that the dealers be

provided initial establishment

support of Rs 60,000 per parlor.

b. Milma Shoppe

Improving the visibility of Milma is

important to scale up its business.

Improving the business is very

crucial to sustain the milk

production and livelihood support

to the resource poor milk

producers of Kasaragod. Milma

shoppe, apart from selling the milk

Kasaragod District

Table 7.8 Marketing Infrastructure Suggested for Kasaragod District

Sl. No. Component

Total Physical

EOP

Unit Cost (Rs)

Total Estimated Cost (Rs in Lakh)

1 Milk parlor civil 9 50000 4.50 2 Milk parlor equipments 9 10000 0.90 3 Shoppe support 5 500000 25.00 4 Space in super market 30 20000 6.00 5 Decorated mobile product vehicle 3 50000 1.50 6 PUF vehicle container (5 MT) 1 460000 4.60 7 PUF vehicle container (3 MT) 3 250000 7.50 8 PUF box 25 - 460 liter 300 2000 11.50 9 Shipper box for ice cream 45 6000 2.70 10 200 liter freezers for dealers 120 13000 15.60 11 200 liter freezers glass top for dealers 120 17000 20.40 12 120 liter freezer 120 11000 13.20 13 500 liter freezer for dairy 10 23000 2.30 14 Deep freezer 320 ltr. 90 17000 15.30 15 Deep freezer 320 ltr. (Glass top) 90 20000 18.00 16 Visi-cooler 220 ltr. 120 20000 24.00 17 Visi-cooler 320 ltr. 80 30000 24.00 18 Consumer awareness programme 90 50000 75.00 19 Advertisement and miscellaneous

items like tin board, chain board, outlet painting, flex board, etc. 450 600 80.00

20 ACP with LED board 150 20000 30.00 21 Canopy with eutectic freezer subsidy 15 100000 15.00 22 Support to milk stockists (RD) 12 200000 24.00

23 Dealer club meet/orientation/ incentive 6 25000 1.50

24 Effluent treatment plant (ETP) 1 4000000 40.00 Total 462.50

and milk products, are effective in

publicizing. The few number of

Shoppe now functioning in

Kasaragod are inadequate to serve

the urban population. Therefore it

is suggested that five new Shoppe

shall be started under the NPDD.

The new franchises shall be

provided a subsidy of Rs 5 lakh to

establish and furnish the Shoppe

and to meet the rent during the

initial period.

248

Kasaragod District

c. PUF Bodies



consumers, MRCMPU requires

more number of PUF bodies. At

present the entire processed milk

is transported in PUF insulated

vehicles. In order to ensure

uninterrupted cold chain in milk

transport four more PUF body is

suggested as standby and to

operate new supply routes.




well suited and the cheapest to

preserve milk at the dealer point.

Freezers are uneconomic to store

small volumes of milk. Moreover

they are capital intensive. The PUF

boxes supplied under the

IDDP/SIQCMP are doing good

service. But less than 50 per cent

dealer points have PUF boxes. In

order to popularize and spread

their use three hundred more PUF

boxes of varying sizes are

suggested for Kasaragod. Visi-

coolers are excellent equipment to

keep products like flavored milk in

cool temperatures. Most of the

private companies provide Visi-

coolers free of cost to promote

their milk. Hence, 200 of them are

suggested as part of market

promotion.


The share of value added milk


the Union is crucial to the

Canopy & Freezer for ice cream sales Kasaragod

249

Kasaragod District

financial viability of MRCMPU.

Among all the products, ice cream

is the most promising one.

Unfortunately, Milma now has

only less than 5 per cent market

share in the ice cream segment.

The major hurdle identified against

the market expansion in

Kasaragod is the absence of user


at retail points. A three pronged



retail points and wide publicity


The wholesalers and dealers shall

be provided freezers at subsidized

prices as is busing done by the

competitors. Freezers of varying

size numbering 500 will be

required to command a sizeable

market. In addition canopy with

Eutectic Freezers, 15 numbers, are

recommended for special sales in

tourist spots and prominent on

road places.

f. Consumer Awareness

Kasaragod faces fierce competition

from private dealers from within

and outside the state. Sustaining

and further developing the market

is crucial to the very sustenance of

dairying in the district as well as

the food security and livelihood

support. Therefore it is strongly

recommended that an aggressive

out of box consumer education

program and publicity through all

channels, printed and visual

media, shall be launched in

Kasaragod to serve two purposes –

awareness creation among all

sections of population and market

promotion - as a tool for socio-

economic improvement. An

estimated amount of Rs 150 lakh

will be required for this.

g. Effluent Treatment Plant

(ETP)

The ETP is meant for Kasaragod

Dairy. The existing ETP is

inefficient and the scale

inadequate to handle the effluents

from the small Dairy. As the

Kasaragod is gearing up for

production enhancement and

scaling up of processing facility the

capacity enhancement of ETP is

inevitable. The place where the

ETP is functioning needs to be

changed to the corner of the

campus. From the statutory and

hygiene point of view it is

250

Kasaragod District

251

suggested that a higher capacity

ETP may be established at the

Dairy at an estimated cost of Rs 40

lakh.


7.7.1 Milk Procurement



procurement in Kasaragod is

looked after by the P&I Unit

functioning under the Dairy. The

Unit has established a network of

village level DCS in the district to

procure milk from the dairy

farmers. The organization of milk

procurement is explained as fig.

7.3.

BMC DCS means a DCS in which

the BMC is installed, Cluster DCS


to the BMC, and the direct DCS


directly in the Dairy/MCP. The

milk producer-deliver the

household surplus milk either in

the BMC DCS, Cluster DCS or

Direct DCS. The Cluster DCS in

Fig. 7.3 Organization of Milk Procurement in Kasaragod District

Farmer Milk

BMC DCSCluster DCS Direct DCS

KGD DAIIRY

Key words: BMC DCS – Dairy Cooperative Society having Bulk Milk Cooler; Cluster DCS - DCS attached to BMC for milk supply; Direct DCS – DCS supplying milk to Dairy; KGD – Kasaragod.

Kasaragod District


nearest BMC. The BMC chills and

delivers the milk to the Dairy. The

direct DCS supply milk direct to

dairy dock. The Dairy in turn

process and market the milk in

towns and other urban

agglomerations within and outside

the district. The whole chain of

activities - procurement,




Kasaragod are Anand Pattern

Cooperative Societies (APCOS).



elected Board of Directors. At the

close of March 2014 the district

had 128 functional APCOS. In

addition there were 5 non-APCOS

directly under the department of

Dairy Development.


DCS in Kasaragod. From among

the 22,408 registered milk

producers in the district at an

average 4890 (22 per cent) alone

poured milk in the DCS. The

proportion pouring milk is low

because the non-producers are not

removed from the DCS roll due to






9773 LPD, accounts for 22 per


indicating healthy production

trend in the rural areas. The rate

of procurement is appreciable in

the light of Kerala standards.

However, the DCS classified


shows that 11 DCS were collecting

less than 100 LPD and yet another

30 DCS between 100 and 200

LPD. The study shows that those

DCS are not economically viable.

The reasons for poor procurement

rate are that they are not in ideal

locations, non-potential suppliers


farmers have other options for



Out of the 128 DCS only 17 DCS

supplied milk directly to the Dairy

during 2013-14. All others

supplied milk either to the village

BMCs or to those DCS supplying

252

Kasaragod District

Table 7.9 Profile of DCS in Kasaragod District March 2014

Sl. No. Description Quantity 1 No. of functional APCOS (31-3-2014) 128 2 No. of farmer members/DCS 175

(22408)* 3 Av. number of Suppliers/DCS 60 (7638) 4 Milk farmer procured (LPD) 44601 5 Local sales (LPD) 9773 6 Milk supplied to milk union (LPD) 34828 7 Av. procurement/DCS (LPD) 348 8 Av. DCS procurement/supplier (LPD) 5.83 9 Av. procurement price paid to DCS (Rs/Kg) 29.24 10 Av. price - Local sales (Rs/liter) NA 11 No. of DCs collected <100LPD 11 12 No. of DCS collected 101-200 LPD 30 13 No. of DCS collected 201-300 LPD 21 14 No. of DCS collected 301-500 LPD 60 15 No. of DCS collected >500 LPD 6 16 No. of DCS making one time milk collection from

farmers NA 17 Av. fat% 4.1 18 Av. SNF% 8.4 19 No. of BMC DCS (31-3-2014) 12 20 No. of BMCs 12 21 Installed capacity 43000 22 Av. collection through BMC (LPD) 27600 23 No. of DCS making supply at dairy dock 17 24 No. of DCS provided AMCU (including DDD) 104 25 No. of DCS provided analyzer only (including DDD) 4 26 No. of DCS provided EMT 34 27 No. of DCS provided EMT only (no analyzer) 7 28 No. of DCS provided Gerbers test equipment only 7 29 No. of Panchayat wards in the district 665 30 % coverage under milk procurement 80 31 % wards having potential for milk collection 5 32 No. of DCS in own building 41 33 No. of DCS having adequate water supply

arrangements 35 34 No. of DCS having standby generators 15 35 No. of DCS having electricity 117 36 No. of Milk cans supplied during last five years 790 37 Milk spoiled (LPD) 4 38 Av. MBRT - milk supplied through BMC 127 39 Av. MBRT - milk supplied at dairy dock 133

* Figures in brackets are the total numbers

253

Kasaragod District

to MCP. Only 41 DCS, 32 per cent

of the total DCS, function in own

building; others are in rented

buildings. Almost all of them have

electricity. But only 35 DCS have

adequate and proper water supply


building and lack of adequate

water is identified to be one of the

major constraints in maintaining

good hygiene standards. It is

gratifying to note that 104 out of

128 (81 per cent) have AMCU for

milk collection.

7.7.2 Coverage

Kasaragod district has 665


80 per cent are under milk

procurement coverage scheme. The

geographical coverage is excellent

but the volume of milk collected

per DCS is not encouraging.

Surprisingly, with the exception of

Wayanad district, 9.1 LPD per

supplier, is one of the highest

among all the districts under

MRCMPU. The assessment is that

only 5 per cent of the remaining


starting new DCS.

7.7.3 Milk Quality and Quality Administration


pricing, that is, farmers are paid

on the basis of milk fat and SNF

content. The village cooperatives

are equipped to determine the






Table 7.10 Kasaragod District Av. Milk Quality 2013-14

Parameter Values Fat % APCOS 5.1 Fat % non-APCOS NA

SNF % APCOS 8.4 SNF % non-APCOS NA

Av. MBR time BMC DCS (Mts.) 127 Av. MBR time direct DCS (Mts.) 133 No. of APCOS using/supplied AMCU 104 No. of APCOS using/supplied Milk O tester & LR 34


254

Kasaragod District



assessment in DCS is crucial in

determining the milk price for the

farmer, in winning their confidence

and overall sustenance of dairy

production. The different

cooperatives in Kasaragod follow

one of the three known procedures

of quality assessment namely



determination), Milk O Tester for






proof, quick and transparent.

Table 7.10 shows that 104 out of

128 APCOS (81 per cent) possess

AMCU. Less than half of DCS

possessing AMCU regularly use

the full set of AMCU reportedly

due to some snags in the

analyzers.

The average of procured milk has

4.1 per cent fat, and 8.40 per cent

SNF. Farmer education and

introduction of AMCU can further

improve the quality. The average

MBRT of milk supplied through

BMC DCS, 127 minutes is

comparable with the non BMC

DCS, 133 minutes. This need to be

further investigated. In the years

to come both compositional and



milk and therefore the Union

needs to pay better attention for

improving the bacterial quality.

The best way to usher in microbial

quality is to pay for bacterial

quality. It is suggested that an

incentive for good quality milk may

be introduced as a beginning.


Suggestions

Under the IDDP and SIQCMP Rs

380.85 lakh has been invested for


from BMC to milking vessels and

capacity building of farmers and

elected members. The IDDP

support is available for two more

years (2014-15 and 2015-16).

Therefore the support requested

under the NPDD is meant to

stabilize and carry forward the


reasons for the suggestion of

major/new components are

illustrated below.

255

Kasaragod District

256

1. Buildings












Rs one lakh per DCS. The number

of DCS identified to have the land

and financial capacity to do this

are 18 during the project period.

2. Water Supply System



important in Kasaragod. Most of

the DCS find it difficult to mobilize

adequate capital for investment.

Hence, a subsidy of Rs 60,000 per

unit is suggested for 10 DCS at an

estimated cost of Rs 6 lakh. Water



envisaged. In addition digging 10

bore wells at the rate of Rs 25,000

per unit and 15 open wells at the

rate of Rs 10,000 per unit are also

suggested.

Table 7.11 Kasaragod District Suggested Milk Procurement Facilities under

NPDD 2014-17


Units

Unit Cost (Rs)


1 Building construction 18 100000 18.00 2 Water supply system 10 60000 6.00 3 Bore well 10 25000 2.50 4 Open well 15 10000 1.50 5 Aluminium cans 300 2500 7.5 6 Automatic milk collection units 3 125000 3.75 7 Electronic milk tester 4 15000 0.6 8 Electric centrifuge 8 2500 0.2 9 Weighing scale 3 15000 0.45 10 Hand held billing device 8 10000 0.8 11 Management grant to DCS 8 30000 2.4 12 Subsidy for milk transport 370000 0.5 1.85 13 Subsidy to cattle feed transport

MT 32200 400 128.8 14 Incentive to better quality milk 900000 0.5 4.5 Total 178.85

Kasaragod District

3. Automatic Milk Collection

Units

About 104 DCS use AMCU for milk

collection and quality checking. It

is important to have standby units

for replacement in case of

breakdown. It is suggested to

include three units as

service/replacement units. The


4. Subsidy for Cattle Feed

Transport






credit facility extended by the

DCS. The transport of cattle feed

from producer companies to the

DCS entails cost. It is suggested to

subsidize the transport cost. The

estimated quantity sold in

Kasaragod comes to 32,200 MT in

three years. An amount of Rs

0.4/kg is the suggested subsidy on

transport cost and the total Rs

128.8 lakh. This may be provided

as cattle feed subsidy so that the

price of cattle feed can be kept low.

5. Incentives for Good Quality

Milk




quality milk. The bacterial content

in raw milk has been significantly

reduced. The low bacterial count

improves the quality especially the

organoleptic properties (taste and

flavor) of the milk apart from high

heat stability and longer shelf life.

The good quality milk (good taste

and flavor) are cherished by the

consumers. Thus the consumers

and Milk Union are reaping

benefits while the farmers are not

compensated for their extra effort

to produce good quality milk. It is

legitimate that they are motivated

through some incentives to

produce and supply clean milk.

Towards this end it is proposed

that the top 2 per cent of the milk

may be paid an incentive of 50 ps.

per liter of milk. The daily

procurement is close to 40,000

LPD and the incentives at the

suggested rate works out to Rs 4.5

lakh in a year.

257

Kasaragod District



precondition for clean milk









comfort. The shed should have

adequate space for the animal,

manger, feeding alley, urine and

dung channel. The shed must be

well ventilated, easy to clean and




facility for continuous water

feeding. No cattle shed meeting

such standards exists in

Kasaragod. Most of the sheds are a

mere make shift shelter with

mud/wood floor, tile/asbestos/

PVC/Silpaulin roof, dark and

musky, all in one floor (no urine or

dung channel) and without any

watering arrangements. The cows

remain in this shelter most of the

time (no grazing). The hind

quarters and the udder often

remain soiled by dung and mud.

Udder and teat injury is common.

Feeding of water is only

occasional. Therefore, any support

for good cattle shed is the most

New cattle shed constructed under SIQCMP, Kasaragod

258

Kasaragod District

259

welcome support for the poorest of

the poor dairy farmers in

Kasaragod. Considering these

deficiencies, the Milk Union

funded cattle shed modifications

and building new cattle sheds


schemes. During the course of the

field work we found that the floor

of cattle sheds are well made using

the fund allotted. However,



high labor cost and the cost of

materials. The budget provision

of Rs 10,000 is thoroughly











the society, opportunities for





is uncommon in Kasaragod.

Hence, reducing the labor and

making the daily chores less

arduous is crucial for the

sustenance of dairy farming.

Considering the economic and

social significance of dairying, the

MRCMPU has initiated providing

financial support for farm

mechanization. Table 7.12 shows

the physical attainments in the

immediate past.


Supplied to Farmers in Kasaragod

District


1 Cattle sheds modified Nil


3 Rubber mats 793


5 Gen sets 3

6 Cow drinker 2

7 Chaff cutter - Motorised 3

It is suggested that the assistance

may be continued and funded

under NPBBDD. The components

suggested, quantity and the

estimated cost are presented in

table 7.13.

Kasaragod District

Table 7.13 Kasaragod District Cattle Shed and Farm Machineries

Suggested under NPDD 2013-17


Unit Cost (Rs)

Total Cost (Rs in lakh)


2 Auto watering system 100 5000 5.00

B Cattle Farm Mechanization

3 Gen set 30 75000 22.5

4 Pressure washers 100 7500 11.25

5 Rubber mats 500 2500 18.75

Total (4.0) 80.00

7.9 Cattle Induction Cattle induction is a common

procedure adopted to re-distribute

the asset among the different

sections of the community. The

absence of easily accessible loan at

reasonable interest rate adds on

the importance of this activity.

Therefore cattle induction has

been resorted to by several

development agencies in the State.

The MRCMPU too distributed 250

heifers to 50 farmers to promote

cattle rearing in the district.

The cattle keeping in the district is

largely a job of economically

weaker sections of people (BPL

families). It continues to be an

important source of livelihood for

them, especially women. Therefore,

distributing the following number

of cattle (Table 7.14) is

recommended under NPDD.

Table 7.14 Cattle Induction Program Suggested in Kasaragod District under

NPDD 2014-2017




1 Capital expenditure 0 2 Purchase of animals 120 40000 48.00 3 Purchase of heifers 120 30000 36.00 4 Transportation cost of


260

Kasaragod District



activity.



for women.







Seventy five percent of

Insurance amount shall be


and the balance as



Laboratories An amount of Rs 37.85 lakh had


IDDP and SIQCMP and Rs 16.22

by Milk Union in upgrading the

Kasaragod dairy lab.

The Kasaragod dairy lab requires

to add more modern gadgets after

lay out of the recently acquired

equipments and standardizing the

ground level testing procedures.

The lab has to go a long way in

equipping and testing procedures

to meet with the FSSA

requirements. The following

suggestions (Table 7.15) are as an

interim measure to improve and

equip the lab to acquire

HACCP/ISO certification.

Table 7.15 Kasaragod Dairy Laboratory Facilities Requested under NPDD

2014-17


Units

Unit Cost (Rs)


1 Central milk testing lab 1 0 20.00 2 Purchase of laboratory

furniture 1 500000 5.00 3 High capacity pressure jet 1 100000 1.00 4 FSMS monitoring software 1 100000 1.00 5 Accreditation and certification

of dairy establishments under HACCP/ISO 1 500000 5.00

Total 32.00

261

Kasaragod District

The facilities and provision

requested under Kasaragod dairy

lab may be seen in table 7.15. To

establish a central lab in

Kozhikode dairy to carry out all

the tests stipulated under the

FSSA 2011 and to achieve ISO

22000-2005, Rs 20 lakh is

requested. The central lab will be

equipped to carry out all the

sophisticated tests both in the raw

and processed milk. Detection of

Antibiotic residues, heavy and

light metal content, pesticide

residues and so on requires very

expensive equipments like

spectrophotometer. By establishing

a central lab the duplication of

expense can be avoided. At the

same time the samples from the

sister labs like Kasaragod can be

tested. Hence the suggestion is

highly justifiable.

The Kasaragod lab is badly in need

of lab furniture. An amount of Rs

5.0 lakh will be required to acquire

the absolutely essential furniture.

A high capacity jet is essential to

clean the 60 KL milk silo. The

FSMS monitoring software is

essential to handle the lab and the

data generated and network with

other sections. An amount of Rs

1,00,000 will be required for the

software. The Kasaragod Dairy has

ISO 9001:2008 certification. The

Dairy is preparing to acquire ISO

22000:2005. This calls for

observing certain protocols

including audit requirements. An

amount of Rs 5.0 lakh is the

estimated requirement.


equipped to carry out the MBRT, a

system to carry out the test by the

DCS staff and to link on line with

the central lab is yet to be

implemented in full.


Kits for Farmer

Beneficiaries The MRCMPU supplied the

following articles under the

SIQCMP scheme to the farmers in

Kasaragod (Table 7.16).


farmers has the least impact on

clean milk production because the

farmers generally discontinue the

use once the free supply is

stopped. Hence, this component is

not recommended to be continued

262

Kasaragod District

Table 7.16 CMP Kits Supplied under SIQCMP Scheme in Kasaragod

District

Sl. No. Item Physical

Financial (Rs in Lakh)

CMP Kits to Farmers

1 Detergents & chemicals to DCS Lot 11.42


Total 33.24

under NPDD. On the other hand,

the stainless steel utensils (the

milking utensils and carrying

vessels) supplied are being used by

the farmers and they whole

heartedly welcome the component.

It is suggested that those

equipments may be supplied to the

farmers under the NPDD also. The

numbers suggested and the

financial requirement is given in

table 7.17.

Milking machines are also very

beneficial to the farmers. My field


all recipients of the machines

under the IDDP/SIQCMP schemes

regularly use them although

continuous service back up is

essential. It is suggested that nine

numbers of milking machines may

be supplied to the farmers

possessing five or more cows at

subsidized (75 per cent) rate under

Table 7.17 CMP Kits and Milking Machines Suggested for Kasaragod

District under NPDD


Units Unit Cost

(Rs) Total

Cost (Rs in Lakh)


2 Electricity operated milking machine & other equipments for hygienic milk handling at village/farmer level

15 55000 8.25


Total (7.0) 17.65

263

Kasaragod District

NPDD. It is also suggested that

few hand operated machines shall

be supplied to the needy farmers

after making a scientific and

methodical field trial in association

with KVASU.


(TIS) The technical input services earlier

implemented under the IDDP/

SIQCMP schemes encompasses a

variety of farm level activities and

assistance. The TIS was a major

component of those schemes. The

components, financial and

physical attainments in Kasaragod

district are presented in table

7.18.

The Technical input services are

production incentives to farmers

and are expected to reduce the

cost of production of milk. Those

components are in the state


are in charge. Our field experience

shows that the quality of delivery

of services like veterinary care and

AI at the farm gates is deplorably

poor. The story of several other

services is also not different. A

total re-orientation of those

Table 7.18 Technical Input Services Components and Achievements

Kasaragod District


Financial IDDP/

SIQCMP Union/

Beneficiary Total

Tech input services 200 25.6 10.97 36.57

Table 7.19 Technical Input Services for Kasaragod District


Units Unit Cost

(Rs)


1 Liquid nitrogen containers 6 30000 0 2 Audio visual kits, etc. 1 200000 2.00 3 Animal health & breeding


production 10 100000 10.00

Total 28.20

264

Kasaragod District

services through Milk Union and

DCS will be beneficial both for the

state exchequer and the farmers.

This is often told but not done.

Hoping that this will happen none

of those schemes handled by the

line departments/NDP scheme is

included. The following components

are suggested to be included under

NPDD as a priority component.

The most essential components

are listed in table 7.19.

The LN containers included are for

replacement of the ones being

used in AI Centers. Since they are

covered under NDP the facility can

be used under that scheme. The

animal input camps include

fertility management of dairy cows

among farmers. It is a DCS based








decline in farming activities. On

the other hand, large land

holdings and fallow land are

potential source for fodder

production – fodder as a value

added crop in irrigated land. The

fodder so produced shall be


members at cost price. The scheme

shall be a flagship program of

NPDD.


Communication

Technology Networking The MRCMPU apart from a


multi crore business concern. Its’


widely distributed. To keep abreast

with the speed and perfection of

modern business in full the

utilization of information and

communication technology is

essential. It is also essential that

the whole business is transparent

to the stakeholders, the farmers.

Unfortunately, the Milk Union is in

the infantile stage of exploiting the

IC technology. At present the dairy

and associated activities are

partially computerized and

networked (intranet). The Milk

Union proposes to expand the IC

so that the system will function as

a client server architecture

265

Kasaragod District

266

network with 6 centers at each











projects. The share of Kasaragod



Kasaragod

A Capital Expenditure Unit Rate Units Amount

1 Purchase of Computer/ HHB 1.1 Desktop 0.50 14 7.00 1.2 Laptop & Netbook 0.60 10 6.00 1.3 Hand held range of computers 0.30 36 10.80 1.4 A4 size net work laser printer 0.20 0.00 1.5 A4 size flat bed scanner 0.05 2 Purchase of Servers

2.1 Rack server 9.00 2 18.00 2.2 Server storage device 8.00 1 8.00 2.3 Tape backup 8.00 1 8.00 2.4 UPS for server 7.00 1 7.00 3 Purchase/Installation of Software

Systems

3.1 Weblogic server suite purchase 15.00 1 15.00 3.2 Oracle database 12C 15.00 1 15.00 3.3 Antivirus software 1.00 1 1.00 3.4 Hardware & networking 10.00 1 10.00 3.5 Software consultation charges

(AMC) 5.00 1 5.00 3.6 Onsite software analysis and

evaluation for Union and DCS purchase 5.00 1 5.00

3.7 Software purchase & up-gradation charges 30.00

B Recurring Expenditure 1 Software consultancy & data base

administration 10.00 0.00 2 Leased line communication cost 10.00 0.00 Sub-total (capital) 71 115.80 Sub-total (recurring) 0.00 Total 115.80

Kasaragod District

7.14 Manpower Development The MRCMPU adopted training

and development program as a tool

for organizational development and

to make strides on productivity


reduction, energy conservation,

and product improvement. Apart

from Union employees, the staff

and elected members of DCS and



MRCMU has designed several

training programs as a part of

Manpower Development. The table

7.21 shows the numbers trained in

various categories from Kasaragod

district. The DCS staff has been

trained at the HRD centre,

Kozhikode under MRCMPU on the

relevant subjects. The trainers

included those from within the

organization and also invited from

other organizations. The duration

ranged from one to three days and

the subjects handled were those

relevant to the concerned groups.



a visit to processing Dairy/cattle

feed plant. Farmers are the

trainees. The farmers induction

program is normally carried out in

the HRD Centre, Kozhikode. The

Table 7.21 Training of Employees and Elected Members in Kasaragod District



1 Cooperative development program a No. of programmes 8 b No. farmers trained 1073 c FIP- local farmers attended 861

2 Training of BMC/DCS/MCC staff 3 Training of DCS secretary 85 4 Training of DCS employees 16 5 Training on AI 113 6 Training of farmers on GMP/GHP 85 7 Training of farmers on AH practices 17 8 FIP 3838 10 Training on marketing 96 11 Training of management committee members 735

267

Kasaragod District

Dairy Animal Management

Training to the farmers has been

under taken in APCOS DCS. The

training included lectures by

experts and visit to a few well run

farms. The farmers were given

opportunities to see for themselves

the success and failure stories.







trainings were useful for upgrading

their skill and knowledge.


been spent on HRD IDDP and CMP

Phase I and II in Kasaragod

district.


Suggestions



employees starting from

Supervisors should be hand

on training exclusively on

subjects and skills relevant to

them.


organized in villages with the

support of LSG and Village


MRCMPU.








and results closely monitored

and evaluated.







should be provided


excellence outside the State.







exposed to what happens in

the dairy sector elsewhere in

268

Kasaragod District

269

the country (eg: Schreiber


vision and outlook.


toned down and tapered out.

The courses suggested for Kasaragod

district and the estimated cost are

given as table 7.22.


Kasaragod District Working Capital is essential to

ensure smooth and uninterrupted

supply of raw materials,

consumables, etc. for the

manufacturing and sales

operations of milk and milk

products in Kasaragod district.



materials, stores and spares etc.

are to be stored.





Table 7.22 Manpower Development Kasaragod District Suggested Programs

under NPDD 2014-15 to 2016-17




1 CD programme 15 80000 12.00 2 FIP Person 600 300 1.80 4 Secretary Person 125 3000 3.75 5 Tester/Helper Person 125 3000 3.75 6 MCC/P&I staff Person 12 20000 2.4 7 Training on AI Person 20 2000 0.40 8 Training of farmers in GMP/GHP Person 250 2000 5.00 9 Training of farmers on animal

husbandry Person 66 2000 1.32 10 Training of dairy personnel

10.1 Dairy manager Person 2 20000 0.40 10.2 Production officers Person 8 20000 1.60 10.3 Dairy plant supervisors Person 9 20000 1.80 10.4 Technicians/Operators Person 7 20000 1.40 10.5 Milk marketing officers Person 7 20000 1.40 11 Training of MC members Person 3 12000 0.36 12 Institutional skill development 0 0 0 20.00 13 Dairy extension activities Prog. 7 1000 0.07 Total 57.45

Kasaragod District



lean season. During lean season

union is procuring large quantity

milk from other states for which

payments are made in advance.

Large quantity of SMP shall be

kept especially during lean season

to meet the market demand for

liquid milk, curd, etc. During flush

season funds are needed to stock

ghee, converted SMP, cream, etc.

which are produced in excess of

normal market requirements.

Union is supplying cattle feed and

other inputs to the societies on

credit basis. Present supply of

cattle feed to societies is more than

700 MT per month. It is expected

to increase significantly in the

coming years.

Union is at present resorting to

short-term loan from banks to

meet its working capital

requirements. As the volume of

business is increasing, the

dependence on bank loan will be

more in the coming years.

The working capital grant

proposed under the NPDD will give

good relief to the Union, as it will

reduce heavy dependence on the

banks for loan, as well as savings

in expenditure towards interest.

Value of 21 days milk collected

from the societies by the Malabar

Union is about Rs 218 lakh during

2013-14 which is expected to

increase to Rs 248 lakh in the next

three years as shown in table 7.23.

The Milk Union will be able to

manage the milk value from

internal resources if the funds for

the inventories and other goods

are met from other sources. The

amount required is shown in table

7.24. It is far below the calculated

Table 7.23 Actual and Calculated Milk Value for 21 Days in Kasaragod

District

Milk Procurement (LLPD)

District 2013-14

(Actual) 2014-

15 2015-

16 2016-

17

Average Milk Price (Rs)

Days Total Milk

Value (Base Year)

(Lakh)


Kasaragod 0.36 0.35 0.38 0.41 28.88 21 218.33 248.66

270

Kasaragod District

milk value for 21 days. Hence an

amount of Rs 189.6 lakh is

suggested as working capital for

Kasaragod district on the basis of

the calculation shown in table

7.24.

271

Kasaragod District

Table 7.24 Working Capital Requirement for Three Years from 2014-15 for

Kasaragod District

Working Capital Unit No. of

Units Unit Cost

2014-15

2015-16

2016-17

Total Cost

Purchase of milk powder KG 50000 300 45.00 60.00 45.00 150

Purchase of packing material KG 6000 210 4.20 4.20 4.20 12.6

Purchase of cattle feed MT 150 18000 9.00 9.00 9.00 27

Total 56150 58.2 73.2 58.2 189.6

Annex-1 Information and Communication System - NPDD The NPBBDD System will function as a client server architecture network with Six centers at each district (Palakkad, Malappuram, Kozhikode, Wayanad, Kannur, Kasaragod) and a central server system linking all these six centers with the following objectives.

The Pilot project on Information and technology, networking which is to make the data and information available to all the DCS under MRCMPU. The data processed from the Dairy is stored on a Data Server which is called rack server. This rack server is mounted inside a rack for easy management purpose. The information contains day to day activities of the dairy and the societies linked to that dairy and also BMCS related information (qty., quality, chilling cost, etc.) and period wise payment system for the societies/BMCs.

The data in the rack server need to backup frequently to store that data in a backup storage device for cold as well as hot backup and also to backup to tape for the data portability regularly to avoid data loss and to keep data away in a secured place for a long period of time.

The HHB system is used to communicate with the society collection centers and on the data collected via HHB from collection center is imported directly to the society package to avoid manual error and intervention for the easy processing the data sheet and invoices and also will be used for the Marketing

(iv)

Kasaragod District

product ordering and cash collection activities.

The data and information is processed based on Three-tier architecture (oracle database platform) as a client–server architecture in which the computer data and data access can be developed and maintained as independent modules for the fast processing of transaction and information to the DCS.

(v)

http://en.wikipedia.org/wiki/Computer_data_storage

http://en.wikipedia.org/wiki/Data_access

http://en.wikipedia.org/wiki/Modular_programming

Kasaragod District

(vi)

With the help of oracle web logic suite which can be used for the clustering of data that enables scaling of applications with high availability of data to the users for processing and can deploy on cloud environment. This is a Server software application that runs on a middle tier, between back-end databases and related applications and browser-based thin clients. Web Logic use to develop to connect users in a distributed computing environment and to facilitate the integration of applications with distributed corporate data and

applications. Antivirus software to make the system protected from most viruses, worms, Trojan horses, and other unwanted invaders that can make the system malfunction. So to keep the system (Hardware & Software) healthy and functional, need to install a proper antivirus and should be updated with the latest updations.

Desktop, Printers and switches - use to communicate among dairies and DSC for data sharing among clients inside and outside for the proper function of the system.

Onsite Software Analysis and evaluation includes the onsite installation of Software at the DSC and Dairies and also to provide proper training on how to use the software and its attached resources.

Software consultancy charges for our Enterprise Resource Planning Solution for integrating all the modules to make it centralized.

Lease line cost for the interconnectivity between Dairies and its Subcentres (including MCC/MCP/Depots) for centralized management and availability of data at any time from any locations under the units of MRCMPU.

report for benchmark survey.pdfi am immensely grateful to sri. p.t. gopalakurup, chairman, and sri....

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