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Impact Assessment Report for Cattle Feed Plant of Panchmahal Dairy

Cardinal Edge Management Services (P) Ltd.1

TTAABBLLEE OOFF CCOONNTTEENNTTSS

1 TITLE OF THE PROJECT ............................................................................................. 3 1 TITLE OF THE PROJECT ............................................................................................. 3

2 PROFILE OF PANCHMAHAL DAIRY.......................................................................... 3 2 PROFILE OF PANCHMAHAL DAIRY.......................................................................... 3

3 PROFILE OF UNDIVIDED PANCHMAHAL DISTRICT............................................... 4 3 PROFILE OF UNDIVIDED PANCHMAHAL DISTRICT............................................... 4 3.1 NATURAL RESOURCES ................................................................................................................ 4 3.2 POPULATION............................................................................................................................... 4 3.3 AGRICULTURE: RISK AND UNCERTAINTY .................................................................................. 5 3.4 EMPLOYMENT AND ASSET HOLDING......................................................................................... 5 3.5 URBANIZATION........................................................................................................................... 6 3.6 INCOME AND POVERTY............................................................................................................... 6 3.7 SEASONAL MIGRATION .............................................................................................................. 7 3.8 COMPARISON OF TRIBAL AND NON TRIBAL REGIONS .............................................................. 7

5. RATIONALE FOR THE ESTABLISHMENT OF CATTLE FEED MANUFACTURING PLANT............................................................................................................................... 10 5. RATIONALE FOR THE ESTABLISHMENT OF CATTLE FEED MANUFACTURING

PLANT............................................................................................................................... 10

5. LITERATURE‐BASED CONCEPTUAL UNDERSTANDING OF IMPACT ASSESSMENT APPROCHES & METHODOLOGY .................................................................................... 11 5. LITERATURE‐BASED CONCEPTUAL UNDERSTANDING OF IMPACT ASSESSMENT APPROCHES & METHODOLOGY .................................................................................... 11

7. MAIN OBJECTIVES OF THE IMPACT ASSESSMENT PROJECT............................... 12 7. MAIN OBJECTIVES OF THE IMPACT ASSESSMENT PROJECT............................... 12

7. METHODOLOGICAL APPROCH.............................................................................. 12 7. METHODOLOGICAL APPROCH.............................................................................. 12 7.1 SAMPLING PLAN....................................................................................................................... 13

9. KEY FINDINGS FROM INTERACTIONS WITH KEY RESOURCE‐PERSONS............ 20 9. KEY FINDINGS FROM INTERACTIONS WITH KEY RESOURCE‐PERSONS............ 20 8.1 INTERACTIONS WITH KEY PERSONNEL OF SELECTED DCS....................................................... 20

9. KEY FINDINGS FROM FIELD RESEARCH ON MILK PRODUCERS ......................... 26 9. KEY FINDINGS FROM FIELD RESEARCH ON MILK PRODUCERS ......................... 26 9.1 CHANGE IN MILK PRODUCTION OVER THE LAST YEAR .......................................................... 26 9.2 PRESENT STATUS OF USAGE OF CATTLE FEED ......................................................................... 27 9.3 PREFERENCE FOR DIFFERENT BRANDS OF CATTLE FEED......................................................... 27 9.4 PERCEIVED BENEFITS OF CATTLE FEED.................................................................................... 28 9.5 PERCEIVED CHANGE IN MILK PRODUCTION DUE TO USAGE OF CATTLE FEED...................... 29 9.6 REASONS FOR NON USAGE OR DISCONTINUITY IN USAGE OF CATTLE FEED......................... 31 9.7 PERCEPTIONS ABOUT CHANGES IN CATTLE FEED ................................................................... 31 9.8 AWARENESS ABOUT CATTLE FEED MANUFACTURED BY PANCHMAHAL DAIRY ................... 33

11. KEY FINDINGS FROM SECONDARY DATA ............................................................ 35 11. KEY FINDINGS FROM SECONDARY DATA ............................................................ 35 10.1 HYPOTHESIS TESTING ............................................................................................................... 35 10.2 OBSERVED TREND IN CATTLE FEED CONSUMPTION AND MILK PROCUREMENT OF DCS ..... 39

11. CONCLUSIONS..................................................................................................... ... 4311. CONCLUSIONS.......................................................................................................... 43



ANNEXURE 1: IMPACT OF DAIRY ON LIVELIHOODS OF FARMERS: SOME CASE ILLUSTRATIONS .............................................................................................................. 45

ANNEXURE 1: IMPACT OF DAIRY ON LIVELIHOODS OF FARMERS: SOME CASE ILLUSTRATIONS .............................................................................................................. 45

ANNEXURE 2: CHECKLIST FOR INTERACTION WITH KEY RESOURCE PERSONS OF DCS 51

ANNEXURE 2: CHECKLIST FOR INTERACTION WITH KEY RESOURCE PERSONS OF DCS 51

ANNEXURE 3: QUESTIONNAIRE FOR PRIMARY SURVEY OF BPL MILK PRODUCERS. 55 ANNEXURE 3: QUESTIONNAIRE FOR PRIMARY SURVEY OF BPL MILK PRODUCERS. 55

ANNEXURE 4: PROCESS FOR PROCUREMENT OF CATTLE FEED MANUFACTURED BY PANCHMAHAL DAIRY .................................................................................................... 62 ANNEXURE 4: PROCESS FOR PROCUREMENT OF CATTLE FEED MANUFACTURED BY PANCHMAHAL DAIRY .................................................................................................... 62

ANNEXURE 5: PROCESS FOR MANUFACTURE OF CATTLE FEED BY PANCHMAHAL DAIRY ............................................................................................................................... 63 ANNEXURE 5: PROCESS FOR MANUFACTURE OF CATTLE FEED BY PANCHMAHAL

DAIRY ............................................................................................................................... 63


1 TITLE OF THE PROJECT To assess the socio‐economic impact of cattle feed manufacturing plant established for

the benefit of BPL milk producer members of Panchmahal Dairy.

2 PROFILE OF PANCHMAHAL DAIRY1 Panchmahal District Cooperative Milk Producers Union Ltd., Godhra was established in

May 1973. The milk shed has a total human population of 36.61 lakh (as per Census of

India, 2001) of which 26.43 lakh comprises rural population and 3.25 lakh has been

classified as urban population. The milk shed has 1908 inhabited villages distributed

across 18 talukas of two districts of Panchmahal and Dahod Districts.

Initially the milk unions of neighboring districts like Kaira, Sabar and Baroda helped

organize the dairy cooperatives in Godhra. The entire operations for milk procurement

were handled by these unions. In 1979, The Panchmahal Milk Union started its activities

independently at Godhra with the help of Gujarat Dairy Development Corporation

(GDDC). The union was included under Operation Flood‐2, 1982 and GDDC handed

over the operations to the union in 1983. Panchmahal Union got affiliated to the Gujarat

Cooperative Milk Marketing Federation (GCMMF) Ltd. Anand on 1st April 1984.

In the year 2004‐05, out of 1600 dairy cooperatives societies (DCS) organized by the

union, 1380 DCS contributed on an average around 2.58 TLPD of milk every day. The

union has milk drying capacity of 18 MTD and ghee manufacturing capacity of 10 MTD.

The union has two chilling centers, one at Chopda and other at Limdi with the capacity

to handled 2.0 LLPD and .3 LLPD respectively. The annual sale of Panchmahal Milk

Union was Rs.157 crores at the end of 31st March 2005.

The work of expanding the capacity of milk processing plant to 4 LLPD, continuous

butter making capacity to 10 MTD, and the ghee making capacity to 14 MTD is on the

verge of completion to handle the peak milk procurement of more than 4 LLPD.

1 Source: Project Report for Establishment of Cattle Feed Plant by Panchmahal Dairy



3 PROFILE OF UNDIVIDED PANCHMAHAL DISTRICT2

3.1 Natural Resources

Panchmahal is economically the most backward district of Gujarat state. It is also not

endowed with superior quality of natural resources like soil and with adequate quantity

of natural resources like rainfall and forest area. The district has an undulating

topography and hard rocky terrain (with altitude varying from 75m to 300m) with

shallow medium black soil having low fertility. Soil depths vary from just a few cm to 60

cm. In most areas milch animals are also not much economically productive as they are

of traditional breed having poor health with low level of milk production. Nine of the 11

talukas from the district are drought prone. In the remaining talukas also, the rainfall

pattern fluctuates widely. Large temporal variability of rainfall combined with

undulating topography and hard rocky terrain results in high run‐off seasons even in a

so‐called normal year. The forest covers in Panchmahal are also depleting very rapidly

although the official statistics on land‐ use pattern in both the districts, may not reveal

the true story.

3.2 Population

The total population of the district is likely to be around 29 lakhs. About 11 percent of it

lives in the urban areas and the remaining falls back upon the rural areas. Thus,

Panchmahal district is predominantly rural in character. Moreover, the proportion of

scheduled tribal population of Panchmahal is more than 15 percent based on population

statistics. Talukas viz. Devgarh Baria, Kadana, Fatepura, Ghoghamba, Morva (h) and

Santrampur are identified as predominantly tribal in character. A special development

program called Tribal Sub‐plan covers these talukas. The overall literacy rate in the

district is only 28 percent as against the state average of 44 percent. 90 percent of the

total population lives below the poverty line. The tribal talukas have distinctly lower

overall literacy rate (22 percent) and particularly so among females (11 percent). This has

a serious implication on the ability and the ease with which the population relates itself

to its surrounding, gets information, perceives opportunities and analyses alternatives.




3.3 Agriculture: Risk and Uncertainty

The main occupation in the district and each of the talukas is agriculture as can be

readily seen from the census data. The proportion of total workers engaged in

agriculture is as high as 82 percent in Panchmahal as against 60 percent in the state. In

the tribal talukas, the proportion is even higher at 88 percent. Moreover, it is important

to note that while proportion of cultivators is distinctly higher in Panchmahal as

compared to the state average, the proportion of agriculture labour is distinctly less in

the district. This implies on one hand that land is more equitably distributed with lower

average size of holding, and on the other hand a majority of the labour force feeds itself

on some land in the district. Irrigation facility available at present is very meager in the

district, and the potential is also low. This coupled with inferior quality of soil and

fluctuating rainfall leads to low and highly fluctuating agricultural productivity in the

district. The main crops grown are maize, paddy, wheat, gram, pulses, cotton and

groundnut.

The most promising crops for the district are pulses because of its higher mean yield and

lower variability compared to the state. The other six crops show higher temporal

variability in yield compared to the state. The only saving grace seems to be maize,

cotton, and gram where the mean yield is marginally higher than the state.

Small holding coupled with fluctuating agricultural productivity imply low per capita

income with high variance over time. In such circumstances, farmers are induced to

choose food crops over non‐food crops in about 80 percent of the area. Because of all

these characteristics, agriculture production in the district is predominantly for self‐

consumption rather than for the market. Pulses, gram and cotton are the major source of

cash income for the farmers of the district.

3.4 Employment and Asset Holding

Since irrigation facilities and rainfall are not adequate in the district, the cropping

intensity is very low in both the districts. Agriculture cannot provide sustained

employment to the population throughout the year. Even during the agricultural

seasons, employment generation in agriculture is not sufficient on account of small size



of land holding. Real income generation in agriculture is, of course, low. However, for

majority of the population in the rural areas of the district, land is an important asset

and their ownership of land, although negligible in absolute terms, makes them

emotionally attached to the place.

Other family assets of the rural population are mainly animals. The total number of

cows, buffaloes in the districts, is sufficient in number to provide productive

supplements source of incomes and employment in the district. It only points to the

potential of the animal husbandry activities in the region because these animals are kept

largely for direct consumption purposes. A large proportion of the population in the

district is non‐vegetarian. Culturally, therefore animal husbandry should not have any

problems of acceptance in this region. Due to this fact only, cooperative dairying is

growing remarkably at a fast rate in Panchmahal.

3.5 Urbanization

The urban areas in the district are not very well developed particularly from the angle of

labour absorption. These urban centers are largely based on trading activities in the

relatively better talukas like Halol and Kalol. The expansion of the industrial activities is

confined along the Baroda‐Godhra‐Dahod‐Delhi highway. It will still take a long time

before industrial activities spread to a sizable extent in the district. Currently, its

capacity to absorb surplus agriculture labour in the district is relatively negligible.

However, it should be noted that the main need of the district is not to substitute

agricultural employment but to complement it with income augmenting supplementary

activities, which can sustain the population throughout the year.

3.6 Income and Poverty

With agriculture as the predominant livelihood activity in the district, which is also

confined largely to only one season thus yielding low and fluctuating income to the

farmers; poverty and underemployment (also distinguished as unemployment) are

serious issues of concern in the district. Studies carried out in the seventies revealed that

the proportion of people living below the poverty line in the rural areas of the district

was around 90% Because of the attachment of the farmers to their small land and animal

holding, the unemployment in the district takes the form of seasonal unemployment in



the off seasons and underemployment in the agriculture season. The geographic

specificity of labour force introduces a peculiar element of imperfection in the labour

market. It acts as a strong barrier to long‐term mobility of labour both vertical and

horizontal. Skill formation too is therefore not encouraged. Literacy also remains

depressed in the district as compared to other district.

3.7 Seasonal Migration

Seasonal migration out of the district in search of informal and temporary employment

is rampant. Around three persons per every two family in Panchmahal get absorbed as

laborers in agriculture, building construction and road construction activities outside the

district. They get employment on an average for 180 to 200 days in a year. They get an

average wage rate of about Rs 30 to Rs 50 per person per day of employment. They are

away from the district on an average for about 6 to 8 months in a year during the

agriculturally lean season and return to the district in the agriculture season. Whereas

such migration provides obvious benefits in terms of income, employment, exposure to

modern techniques of production and different lifestyles, it has severe damaging effect

on the production and social life at home. Literacy, skill acquisition and other forms of

investment in human capital suffer. The migrant farmer tends to neglect his agriculture

and related activities. In discussions with officials in the government and other

organization in the district, this factor repeatedly came to the fore as the main problem

and also the main constraint for successful implementation of the traditional

development efforts in agriculture production, employment in rural industries etc. in the

district.

3.8 Comparison of Tribal and Non Tribal Regions

In Panchmahal and Dahod, the populations are distinctly split into the tribal and non‐

tribal talukas. The tribal talukas are also the drought prone talukas. There are differences

between the tribal and non‐tribal talukas of the district in terms of certain demographic,

natural resources and cropping patterns characteristics. Whereas the socio‐demographic

parameters show sharp differences, the differences in respect of economic activities,

particularly agriculture are not so striking. This implies that for all practical economic

planning purposes, the two districts can be treated as a single entity.



Ninth five year plan(1997‐2002)

Taluka‐wise/ category wise BPL Families after rechecking (As per capita expenditure Rs.254/‐) 1‐9‐2001

District: Panchmahal Godhra BPL Census for Ninth Plan(1997‐2001)

OUT OF TOTAL BPL FAMILIES(FINAL)

Sr.

No Name of Taluka

No. of Rural

Families

No. of Final

Rural

Families

Below

Poverty

Line

% age of

Families

Below

Poverty

Line SC ST Women

Physically

Handicapped

Persons

Small

Farmers

Marginal

Farmers

Rural

Artisans

Agri

labour Others Total

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1 Godhra 47537 35699 75.09 2231 5979 2607 376 6806 21463 1287 6143 0 35699

2 Morva (Hadaf) 24041 20172 83.9 773 8633 1542 188 2744 12579 1265 2172 1412 20172

3 Kalol 34354 23729 69.07 2949 2260 1734 88 5872 2324 1113 7072 7348 23729

4 Shehra 31372 22533 71.82 778 7664 1429 162 4368 9198 3900 5067 0 22533

5 Halol 39902 33873 84.89 5003 8370 830 28 7067 15245 4039 5042 2480 33873

6 Lunawada 34125 30127 88.28 3111 1738 1538 270 3195 17996 2341 4165 2430 30127

7 Khanpur 13863 13351 96.3 1224 537 521 115 1770 9256 723 1471 131 13351

8 Jambughoda 8410 5513 65.55 89 2071 239 33 1163 2700 525 1095 30 5513

9 Ghoghamba 31083 29591 95.19 853 11953 1448 115 5243 19588 1003 3757 0 29591

10 Santrampur 35100 28027 79.84 745 21542 861 28 8712 14180 1914 3221 0 28027

11 Kadana 18437 17550 95.18 474 12423 511 383 6924 8026 949 1651 0 17550

Total 318224 260165 82 18230 83170 13260 1786 53864 132555 19059 40856 13831 260165

District : Dahod

1 Dahod 44021 36974 84% 391 35355 789 121 10079 25163 781 947 4 36974

2 Garbada 26280 22467 85% 524 21471 394 51 5626 14173 1138 1301 229 22467

3 Jhalod 54918 41091 75% 671 38998 1361 306 10447 26588 1218 2792 46 41091



4 Fatepura 27595 25453 92% 434 22247 475 29 6689 13505 2185 2909 165 25453

5 Limkheda 43046 33653 78% 691 22715 1190 347 12219 19679 815 940 33653

6 Dhanpur 24762 19620 79% 292 14326 317 114 6065 12783 365 407 19620

7 Devghad Baria 37428 30038 80% 1218 6430 1101 140 6439 19256 671 3672 30038

Total 258050 209296 81% 4221

16154

2 5627 1108 57564 131147 7173 12968 440 209296

Source: DRDA Office, Godhra & Dahod



5. RATIONALE FOR THE ESTABLISHMENT OF CATTLE FEED MANUFACTURING PLANT3

As mentioned in the project report for cattle feed plant, the undivided Panchmahal

district has around 5,76,274 rural families, from which 4,69,461 (81%) are recognized as

Below Poverty Line (BPL) families in the district consisting of small farmers, marginal

farmers, rural artisans, agricultural labour and others.

Most of the BPL families are engaged in milk business and are affiliated with primary

village milk co‐operatives societies. Milk business is the daily tool for BPL families to

earn from dairy business and to survive. At present they are hardly earning Rs 700‐1000

per month through milk business. After establishment and production of balanced cattle

feed, these families can easily get cattle feed. Consequently, they would be able to

increase their animal productivity to earn higher incomes in the range of Rs. 2500 to Rs.

3000 per month. It was envisaged that the cattle feed project would keep intact the

interest of tribal BPL families in milk business and also curtail their migration.

Panchmahal Milk Union has erected cattle feed manufacturing plant, having production

capacity to 100 Mt/day, to fulfill the following major objectives:

• To improve the existing animal feeding practices prevailing in the district.

• To increase animal milk productivity by providing balanced cattle feed.

• To ensure, regular supply of economically balanced cattle feed at “No profit No

loss” basis, through out the year.

• To improve the general health of animals by incorporating some of the important

minerals and medicines during preparation of balanced cattle feed.

• To uplift rural economy, by encouraging animal husbandry practices.

• To bring out the awareness and perception about the use and benefits of cattle

feed among the consumers /milk producers, and mainly BPL families involved in

milk co‐operatives business.




• To promote the cattle feed marketing at large scale to rural producers so that the

small and marginal farmers, tribal milk producers can gain more income through

cooperative dairying.

5. LITERATURE‐BASED CONCEPTUAL UNDERSTANDING OF IMPACT ASSESSMENT APPROCHES & METHODOLOGY

For purposes of the understanding, “Impact assessment (IA)” may be defined as an

inquiry to estimate the value, degree and/or pattern of change that can be possibly

associated with an intervention. They generally are smaller in size and more limited in

scope, and use less‐complex measures and simpler analytic techniques. Impact

assessments may involve a mix of methods including surveys, case studies, focus group

interviews, and other more qualitative methods. Impact assessments generally compare

impact variables at two points in time (usually before versus after an intervention) and

cover sample groups with and without the intervention to establish “plausible

association.” Rather than prove impacts within precise and statistically definable limits

of probability, impact assessments seek to understand intervention processes and to

identify and reliably estimate the value of impacts that stand the test of plausible

association. A mix of methods may be used to establish the validity of a relationship

between interventions and changes in selected impact variables.

Methods also may be used sequentially. Qualitative approaches can be used to help

identify the most likely impact paths and the hypotheses and impact variables to

incorporate into a survey questionnaire. They also can aid in designing survey questions

and response categories that capture the essence of complex phenomena. Qualitative

approaches also may follow a survey to assist in analysis and interpretation of the data.

It is possible, although not common, to use a mix of qualitative methods to highlight

impacts. This approach might involve, for example, case studies of clients.

In general, collecting data at more than one point in time yields more reliable

information than depending on recall over an extended period, irrespective of whether a

quantitative or qualitative approach is used. Quantitative data from two or more points

in time are important for measuring or estimating change more reliably. This is

especially true for measuring change in areas where recall is weak, or if attitudes,



opinions and behaviors are likely to change over time. For example, recall data on

income, regular expenditures (e.g., on food) or self‐esteem are not very reliable,

especially when using a long reference period. Other questions lend themselves to more

reliable recall, for example, questions on children’s education, key asset purchases, or

investments in housing or land. If a longitudinal design is not used, these types of

questions should be given preference in the quantitative assessment. If a longitudinal

design is used for variables about regular expenditures or income, the recall period

should be short, such as last month or last week, to yield more reliable data. The effects

of seasonality must be taken into account, especially in a longitudinal design.

Conducting the follow up round(s) of interviews in the same months as the baseline is a

low‐cost way of controlling for seasonality.

7. MAIN OBJECTIVES OF THE IMPACT ASSESSMENT PROJECT a) To assess the acceptability and satisfaction levels of the targeted BPL milk

producers towards cattle feed manufactured by Panchmahal Dairy

b) To understand the level of usage of cattle feed among the targeted BPL milk producers

c) To analyze the impact of cattle feed as perceived by targeted BPL milk producers in terms of

• Increase in milk production

• Increase in the fat content

• Increase in the milking period

• Improvement in the health of animal

• Reduction in the problem of repeat breeding

• Early maturity of calves

d) To identify the limiting or constraining factors for usage of cattle feed and the areas of improvement for Panchmahal Dairy with respect to cattle feed

7. METHODOLOGICAL APPROACH

The methodology adopted for the impact assessment was to compare the state of

beneficiaries i.e. BPL milk producers before and after the intervention, which in this

case, is establishment of the cattle feed manufacturing plant. Quantitative and



qualitative data was collected from DCS members belonging to the BPL category. The

before‐after study has been complemented by with‐without study where DCS members

using cattle feed are compared with other members who do not use it or have

discontinued it. Simultaneously, interactions with key resource persons related to the

primary DCS were undertaken to triangulate the findings emerging from primary

research on BPL milk producers.

7.1 Sampling Plan In quantitative surveys, a sample design should provide a rationale for what groups of

clients and non‐clients to include in the sample, how many to include, how to select

them, and the location of program study sites (and non‐program study sites, if

included). It should consider the best ways to include respondents with and without the

benefits of the intervention and in measuring changes over time. Therefore, the sample

design of the project has been categorized into the following components:

7.1.1 Definition of Target Group and their Selection Criterion 1. All DCS organized by the Dairy in its milk shed area has been classified into the

following groups on the basis of combination of the following two factors

o Sales of cattle feed

Increase in the sales of cattle feed after the set‐up of cattle feed

manufacturing plant (Here, increase is defined as the sales of cattle feed

in 2005 is greater than the maximum sales of cattle feed in any of the

previous three calendar years.)

Decrease in the sales of cattle feed after the set‐up of cattle feed

manufacturing plant (Here, decrease is defined as the sales of cattle feed

in 2005 is lesser than the maximum sales of cattle feed in any of the


No change in the sales of cattle feed after the set‐up of cattle feed

manufacturing plant (Here, no change is defined as the sales of cattle

feed in 2005 is equal to the maximum sales of cattle feed in any of the




No sales of cattle feed after the set‐up of cattle feed manufacturing plant

(Here, no sales is defined as zero sales of cattle feed in the calendar year

2005 as compared to sales of cattle feed in any of the previous three

calendar years.)

Sales of cattle feed only after the set‐up of cattle feed manufacturing

plant (It implies that there was no sales of cattle feed in any of the

previous three calendar years before the set up of cattle feed

manufacturing plant.)

Sales of cattle feed after the set‐up of cattle feed manufacturing plant as

compared to erratic sales of cattle feed after the set‐up of cattle feed

manufacturing plant (Here, erratic sales of cattle feed means that there

was no regular sales of cattle feed in any of the previous three calendar

years before the year 2005.)

No sales before and after the set‐up of cattle feed manufacturing plant (

this is the control group which has not purchased cattle feed at all)

o Procurement of milk

Increase in milk procurement after the establishment of cattle feed

manufacturing plant (Here, increase is defined as the procurement of

milk in 2005 is greater than the maximum procurement of milk in any

of the previous three calendar years.)

Decrease in milk procurement after the establishment of cattle feed

manufacturing plant (Here, decrease is defined as the procurement of

milk in 2005 is lesser than the minimum procurement of milk in any of

the previous three calendar years.)

No change in the procurement of milk after the set‐up of cattle feed

manufacturing plant (Here, no change is defined as the procurement of

milk in 2005 lies between the maximum and minimum procurement of

milk in previous three calendar years)

2. All the BPL members who have been pouring milk in the selected DCS are defined

as target population group. Some of the BPL members who have not been using

and stopped using cattle feed is classified as controlled group.



3. The key personnel of milk cooperative societies like Secretary operating at village

level

7.1.2 Sample Size 1. A DCS has been selected randomly from each group categorized above, making a

total selection of 23 DCS across Panchmahal and Dahod district.

2. A total of 30 BPL members from each selected DCS have been selected randomly.

3. A model DCS, Naroda in Khanpur Taluka, has also been selected with a sample size

of 10 BPL members.

A list of the selected DCS is given below:



(Cattle Feed) DAN MILK

S.

No. CATEGORY LEVEL SOCCODE SOCNAME

TAL

CODE

Block

TALNAME GRAND TOTAL GRAND TOTAL

2002 2003 2004 2005 2002 2003 2004 2005

1 1,1+ MI 0046 Ladvel 04 Lunavada 20,250 24,550 32,500 41,600 354,296 402,432 420,343 439,461

2 1,1+ MD 0001 Kanjari 17 Halol 63,750 71,750 83,250 98,750 290,634 286,967 203,970 203,343

3 1,1+ ML 0057 Vadagam 05 Khanpur 35,500 30,000 18,250 47,925 140,240 120,560 109,724 121,020

4 1,1+ MI 1428 Wankaner 08 Fatehpura 7,600 16,000 7,500 16,250 16,131 38,064 38,395 43,196

5 1,1‐ MI 0295 Dungarpur 03 Shahera 11,000 6,000 9,000 6,250 97,227 99,063 154,143 214,547

6 1,1‐ MD 0339 Khadaki 18 Kalol 2,000 1,500 7,000 1,500 90,123 70,105 68,280 55,484

7 1,1‐ ML 0279 Metral 02 Morva 8,750 15,000 9,000 11,500 136,577 168,672 187,007 172,633

8 1,1+‐ MI 0141 Karoli 18 Kalol 3,750 2,500 2,500 3,750 123,643 119,850 128,518 136,487

9 1,1+‐ ML 0416 Kankodakui 15 Ghoghamba 6,000 6,250 7,750 7,750 60,975 76,614 58,750 65,329

10 1,0 MI 0036 Kolvan 04 Lunavada 500 0 0 0 261,396 323,840 357,595 407,516

11 1,0 MD 0710 Mahelan 03 Shahera 0 1,250 1,750 0 35,255 41,014 38,230 22,312

12 1,0 ML 0413 Kukadwas 06 Kadana 3,000 5,000 1,000 0 107,640 155,277 167,980 161,769

13 1,0 MI 0907 Vanbhori 10 Dahod 500 3500 0 0 15915 13356 8655 20719

14 0,1 MI 0261 Kalibel 07 Santrampur 0 0 0 14,900 114,276 136,593 132,214 149,153

15 0,1 MD 0359 Aaidiya 01 Godhra 0 0 0 5,500 43,237 48,795 44,906 33,791

16 0,1 ML 0870

Nana

Rajanpur 06 Kadana 0 0 0 10,000 122,383 148,156 151,142 143,399



17 0,1 MD 1411 Timarda 10 Dahod 0 0 0 500 143308 81958 75504 56347

18 #,1 MI 0026 Dhesiya 04 Lunavada 1,000 0 0 27,500 119,980 120,726 118,203 180,898

19 #,1 MD 0033 Delol 18 Kalol 1,250 10,000 0 4,250 34,998 46,838 37,355 34,539

20 #,1 ML 1134 Mor 03 Shahera 0 7,250 6,500 6,050 53,621 80,971 99,605 85,511

21 0,0 MI 0259 Narsana 03 Shahera 0 0 0 0 14,745 18,596 14,005 22,429

22 0,0 MD 1192 Vadazampa 06 Kadana 0 0 0 0 29,896 25,379 18,239 16,249

23 0,0 ML 1349 Nizaran Faliya 16 Jambughoda 0 0 0 0 47,774 52,721 42,776 46,808

Legends:

Category

1. 1, 1+ There has been sales of cattle feed in all the last 4 years, however, sales of cattle feed after the establishment of Cattle

Feed Factory (CFF) has increased

2. 1,1‐ There has been sales of cattle feed in all the last 4 years, however, sales of cattle feed after the establishment of CFF has

decreased

3. 1,1+ ‐ There has been sales of cattle feed in all the last 4 years, however, sales of cattle feed after the establishment of CFF has

not changed as compared to previous years

4. 1,0 There has been no sales of cattle feed after the establishment of CFF

5. 0,1 There has been sales of cattle feed only after the establishment of CFF

6. #,1 There has been sales of cattle feed after the establishment of CFF, however sales of cattle feed was erratic before the

establishment of CFF

7. 0,0 There has been no sales of cattle feed in all the last 4 years



Level

1. MI: Milk procurement has increased after the establishment of CFF as compared to the maximum milk procured in last 3

years before the establishment of CFF

2. MD: Milk procurement has decreased after the establishment of CFF as compared to the minimum milk procured in last 3


3. ML: Milk procurement after the establishment of CFF lies in between the maximum and minimum milk procured in last 3




7.1.3 Locations of the Study The study has been confined to Panchmahal and Dahod districts coming under the milk

shed of the dairy. The fieldwork was carried out from February 8, 2006 to February 23,

2006.

7.1.4 Sources of Data

The study entails that data has to be collected from both primary and secondary sources.

Secondary Data Collection

The following secondary level data was collected from the computer and project & input

department of the dairy

• The DCS wise monthly sales figures of cattle feed for last 4 calendar years ending

at December 31, 2005

• The DCS wise monthly procurement figures of milk for last 4 calendar years

ending at December 31, 2005

• Other relevant information like annual report of the dairy, project report for

setting up of cattle feed manufacturing plant

Primary Data Collection

The primary level data was collected from the following:

• Interviews with 700 respondent households was conducted through structured

questionnaire (Please refer to the Questionnaire attached in Annexure…3 for details)

• Semi‐structured interviews with key personnel of milk cooperative societies operating at village level. (Please refer to checklist attached in Annexure…2 for details)



9. KEY FINDINGS FROM INTERACTIONS WITH KEY RESOURCE‐PERSONS

8.1 Interactions with key personnel of selected DCS

1. DCSs (Ladvel, Kanjari, Vadagam, and Wankaner), where sales of cattle feed has

increased after the establishment of CFF

The main perceived benefits of using cattle feed are following:


• Increase in fat content

• Improvement in the health of animal

• Reduction in the problem of repeat breeding

• Availability of cattle feed on easy credit terms (gets adjusted in milk payments)

The main factors that have been instrumental in increasing the sales of cattle feed after

the set up of cattle feed manufacturing plant are as following:

• The quality of cattle feed has improved as compared to the one supplied earlier.

• The high level of awareness about the cattle feed among the members is due to

publicity and the high level of awareness building carried out by Panchmahal

Dairy

The secretaries of these DCSs are mostly the ones who spread awareness about the

benefits of cattle feed among the members. The better quality of cattle feed at lower

prices is the main difference, which they have experienced/ felt between the cattle feed

supplied earlier and the cattle feed manufactured now by the Panchmahal dairy.

However, the irregular supply of cattle feed is their main concern affecting the demand

of cattle feed. They also suggested that price of cattle feed should be made little lower to

increase its penetration.

2. DCSs (Dungarpur, Khadaki, and Metral), where sales of cattle feed has decreased after

the establishment of CFF



The important perceived benefits of using cattle feed are following:



• Improves the health of animal

• Timely conceivement of animal

The main factors that are instrumental in decreasing the sales of cattle feed after the set

up of cattle feed manufacturing plant are as following:

• The shift of some members to the newly created milk society like Bhuvar in case

of Metral DCS has decreased the demand of cattle feed

• Less rainfall in last 2‐3 years has created water and fodder problem leads to less

demand of cattle feed

• Selling of loose cattle feed by private vendors is another cause

• Frequent refusal of members to deduct the outstanding amount on the purchase

of cattle feed from milk payment has created problem for Dungarpur DCS

• Irregular supply has also led to the diminishing demand of cattle feed

The secretaries of these DCSs spread mostly the awareness about the benefits of cattle

feed among the members through verbal communication. The secretary of Metral DCS

also suggested that he would use the wall of the DCS next time for mentioning the

benefits of cattle feed like they have done for communicating the reasons of change in

the fat content of milk.

The secretary of Metral has not found any difference in the cattle feed supplied earlier

and the cattle feed manufactured now by the dairy whereas the secretary of Dungarpur

DCS feels that Panchamrut Special is of better quality than that of the cattle feed supplied

earlier. The irregular supply of cattle feed is their main concern affecting the demand of

cattle feed. Secretary of Metral suggested that price of cattle feed should be made lower

to increase its penetration and that bulk cooler should also be established in the village.

3. DCSs (Karoli and Kankodakui), where sales of cattle feed has remained same even

after the establishment of CFF

The key perceived benefits of using cattle feed are following:

• Increase in milk production and quality




• Improves the health of animal to fight diseases

The main factors that led to no change in the sales of cattle feed after the set up of cattle

feed manufacturing plant are as following:

• The villagers of Chandranagar have stopped purchasing cattle feed from

Kankodakui DCS

• Irregular supply (supply time of around 15 days) has also led to the diminishing

demand of cattle feed in Kankodakui DCS

• Members of Karoli DCS believe that home made preparations are better as

compared to cattle feed due to abundant availability of agriculture produce like

maize in the region

The secretaries of these DCSs mostly spread awareness about the benefits of cattle feed

through verbal communication on the day of payment. Kankodakui DCS has experienced

that Amul cattle feed was better than that of currently manufactured by the dairy.

Members of Karoli DCS perceive that use of cattle feed increases the chances of

miscarriage due to early heating of animal. They also believe that the Dairy should make

some women specific marketing program to create awareness about cattle feed among

them.

4. DCSs (Kolvan, Mahelan, Kukadwas, and Vanbhori), where sales of cattle feed is zero

after the establishment of CFF

The main factors that led to no sales of cattle feed after the set up of cattle feed

manufacturing plant are as following:

• The secretary of Vanbhori DCS sells Godrej cattle feed instead of dairy’s cattle

feed because

o The dairy does not provide cattle feed on time

o The credit terms (2 – 4 months) of Godrej is better than that of the Dairy

o The constraining limit of buying at least 20 bags at a time from Dairy

• Frequent refusal of members to deduct the outstanding amount on the

purchase of cattle feed from milk payment and the financial mismanagement

committed by DCS personnel has created problem for Kukadwas DCS



• Members of Kolvan DCS believe that home made preparations are better as

compared to cattle feed due to abundant availability of agriculture produce like

maize in the region else they would prefer to purchase cattle feed from Kaira

milk union because of its high quality

• Members of Mahelan DCS do not purchase of cattle feed due to economic

constraints and prefer to use home made feed prepared from agriculture

produce.

The main suggestions are for increasing the credit period and for making some

enabling rules for the deduction of outstanding amount from the milk bill of the

individual member. It is also suggested that the Dairy should improve its supply chain

management to provide cattle feed on time.

5. DCSs (Kalibel, Aaidiya, Nana Rajanpur, and Timarda), which started selling cattle feed

only after the establishment of CFF

The key perceived benefits of using cattle feed are as following:


• Improves the health of animal to fight diseases

• Early maturity of calves

The high level of publicity created by Dairy in terms of free gifts and free visit to cattle

feed plant in the beginning has prompted the secretary of all DCSs to buy cattle feed.

This is one of the main reasons for sudden jump in the sales of cattle feed only after the

set up of the cattle feed manufacturing plant.

The sufficient availability of agriculture produce and members’ preference for Godrej

cattle feed are two main reasons for not selling good quantity of cattle feed in Kalibel and

Timarda DCS. The problem of unpleasant smell and price‐quality incompatibility are two

major concerns of the societies.

6. DCSs (Dhesiya, Delol, and Mor), where sales of cattle feed was erratic before the




The key perceived benefits of using cattle feed are as following:

• Increase in milk production and quality


• Improves the health of animal

• Easy availability on credit

• Reduces the problem of repeat breeding

The main factors for the erratic sales of cattle feed before the set up of cattle feed

manufacturing plant are as following:

• Bharwars have stopped pouring milk as well as purchasing cattle feed from

Delol DCS as they have formed their own DCS at Alindra.

• Members have stopped purchasing cattle feed last year due to sufficient

availability of agriculture produce and fodder.

• The non‐collection of milk by private vendors has increased the procurement of

milk as well as the sales of cattle feed by Dhesiya DCS

The secretaries of these DCSs spread mostly the awareness about the benefits of cattle

feed among the members through verbal communication at the time of payment day

and the arrival of stock at DCS.

Delol DCS has experienced that the effect of not using the cattle feed manufactured by

dairy is seen immediately on production and level of fat content in milk. The secretary of

Mor DCS experienced the difference in the quality of cattle feed supplied earlier and the

cattle feed manufactured by the dairy now. Their suggestions are that it should be

supplied on time and minimum limit of buying at least 20 bags at a time from the dairy

should be removed. As per the Secretary of Dhesiya DCS, the members feel that the

quality of cattle feed supplied earlier was not as good as the quality of cattle feed

supplied now by the Dairy. According to the DCS members, animals seem to like

Panchamrut cattle feed more than Amul cattle feed. Their only suggestion is to increase

the level of protein in cattle feed compared to the exiting level.



7. DCSs (Narsana, Vadazampa, and Nizaran‐Falia), where sales of cattle feed is zero

before as well as after the establishment of CFF

The members are not interested in buying cattle feed before the clearance of their

outstanding milk dues due to the involvement of secretary in a corruption case. Most of

the members have purchased cattle on loan, so they do not want to spend money on

cattle feed instead of using it for the repayment of loan. These DCS are losing their milk

business to private vendors and other DCSs due to early arrival of collection van in the

morning.

The members of Vadazampa DCS experienced that animals do not like cattle feed

manufactured by the Dairy and they want to use their money received from milk sale

for the repayment of loan taken for the purchase of cattle. The limit of buying at least 20

bags at a time from Dairy is also an inhibiting factor for the DCS to purchase cattle feed.

The sufficient availability of agriculture produce and non‐delivery of cattle feed due to

kuchha road are main reasons for the non‐purchase of cattle feed by Dairy.



9. KEY FINDINGS FROM FIELD RESEARCH ON MILK PRODUCERS

9.1 Change in Milk Production over the Last Year

0

50

100

150

200

250

300

350

400

450

500

No. of Respondents

Increased Decreased No Response

Type of Change

Change in Milk Production from 2004 to 2005

Series1

This data item was aimed at finding out the change in milk production between the year

2005 and 2006 as perceived by DCS members. Out of the total 698 respondents, 71

percent affirmed that their milk production has increased whereas 28 percent said that

their milk production has gone down.

When the reasons for increase in milk production were investigated, 23 percent of those

who affirmed that their milk production has increased, attributed it to the increase in the number of milch animals reared by them, 33 percent attributed it to the increase in

number of milking days and 85 percent to the increase in per capita output of milch

animals. There is overlap between the different reasons for increase in milk production

as the respondents could choose multiple options as were applicable in their case.

On the other hand, 31 percent of total respondents for whom the milk production had

gone down, attributed it to the decrease in number of milch animals reared by them, 28



percent to the decrease in number of milking days and 82 percent to the decrease in per

capita output of their milch animals.

9.2 Present Status of Usage of Cattle Feed

330

368

310

320

330

340

350

360

370

Number of Respondents

Yes NoNature of Response

Present Status of Usage of Cattle Feed

Series1

This data item tried to find out the number of respondents who were using cattle feed at

the time of interview. When enquired whether they were using cattle feed, around 47

percent of the total respondents replied in affirmative whereas 53 percent replied in

negative. Out of the 368 respondents who were not using cattle feed, approximately 102

respondents (28% of 368) admitted that they had used cattle feed at least once before.

9.3 Preference for Different Brands of Cattle Feed

This question delved into the preferences of DCS members about the various brands of

cattle feed available in their area. Out of the 432 respondents who have used cattle feed,

around 71 percent indicated their preference for cattle feed manufactured by

Panchmahal Dairy. Among the other distinguished brands, cattle feed by Amul Dairy



and Godrej Agrovet came at a distant second and third with 7.4 percent and 6.9 percent

of the total respondents choosing them as their most preferred brand. It is important to

note here that around 10.6 percent of these 432 respondents opted for some non‐discript

brands that did not appear as a separate item in the questionnaire administered.

Preference for Various Brands of Cattle Feed

Dudhmalai - Amul

7% 1%7%

71%

4%10%

Dudhmalai - Dharti

Godrej

Panchmahal Dairy

Other Dairy's Cattle Feed

Others

9.4 Perceived Benefits of Cattle Feed

The various benefits of cattle feed as perceived by the respondents who have used cattle

feed are being summarized in the following table:

Benefits perceived by users of cattle feed Agree Disagree

Increases the milk production 397 34

Increases the fat content 361 64

Increases the milking period 347 62

Improves the health of animal 389 32

Reduces the problem of repeat breeding 214 182

Early maturity of calves 334 30



From the table it is evident that the following three benefits (in decreasing order of

frequency) are seen as main advantages of cattle feed:

a) Increases the milk production

b) Improves the health of animal

c) Increases the fat content

0

50

100

150

200

250

300

350

400

No. of Respondents

Increases theMilk

Production

Increases theFat Content

Increases theMilking Period

Improves theHealth ofAnimal

Reduces theProblem of

RepeatBreeding

Early Maturityof Calves

Type of Benefits

Benefits of Cattle Feed as Perceived by Users

AgreeDisagree

From the above graph, it can be seen that there is a high level of contrasting perception

among the respondents on the reduction of the problem of repeat breeding by cattle

feed. Regarding other benefits of cattle feed, unanimity is quite high among the

respondents.

9.5 Perceived Change in Milk Production due to Usage of Cattle Feed

Out of the 432 respondents who have used cattle feed, more than 92 percent admitted an

increase in milk production due to the usage of cattle feed. The breakup of these

respondents is being given in the following table:



Increase in Milk Production due to Cattle Feed % Agree

Upto 10 % 19.4

Between 10% and 20 % 49.6

Between 20% and 50 % 27.7

More than 50 % 1.2

It is evident from the table that around 50 percent of the respondents believing in the

positive impact of cattle feed on milk production attribute an increase of 10 to 20 percent

due to cattle feed. Around 28 percent of like‐minded respondents attribute an even

higher level of increase in milk production to cattle feed believing that it helps increase

output by 20 to 50 percent.

The following table depicts the perception of the respondents who have used cattle feed

about its impact on milk production.

77

3

197

5

110

3 50

0

20

40

60

80

100

120

140

160

180

200

No. of Respondents

Upto 10 % Between 10%and 20 %

Between 20%and 50 %

More than 50 %

Magnitude of Change

Change in Milk Production due to Usage of Cattle Feed

IncreasesDecreases



9.6 Reasons for Non Usage or Discontinuity in Usage of Cattle Feed

This question was included to gain an understanding of the perspective of respondents

who were not using cattle feed. Such an understanding may help in determining

whether such a behavior is out of a conscious choice or due to some resource limitations

and constraints.

Reasons for not using or stopped using cattle feed Number of Respondents

Never Tried 137

Home made feed is equally good 204

Sufficient availability of agricultural produce at home 180

Preference for cotton seed cake or other concentrates 120

Inability of animals to adjust to cattle feed 129

No additional benefits experienced after trying 28

Low affordability / high costs 74

From the table it is evident that the following three factors (in decreasing order of

frequency) emerged as main deterrents in the use of cattle feed:

a) Perception of respondents that home made feed is equally good

b) Sufficient availability of agricultural produce for livestock feeding at home

c) Lack of a try in using cattle feed

The above reasons provide scope for increasing awareness about the benefits of cattle

feed over home‐based feed and promoting its trial by members of DCS.

9.7 Perceptions about Changes in Cattle Feed

The aim of this item was to ascertain whether the cattle feed users could perceive any

difference in the cattle feed being used by them. Out of the 283 respondents who have



been using cattle feed consistently over the last couple of years, around 73 percent

affirmed that they could perceive changes in the cattle feed over the last one year.

0

50

100

150

200

250

N o of R e sponde nt s

Ye s N o

P e r c e i v e d C ha nge i n C a t t l e Fe e d Dur i ng t he La st Ye a r

Ser ies1

The perceived changes in cattle feed were captured on certain parameters, which were

important for DCS members. The users through different measures, both direct and

indirect, can discern these parameters due to their economic implications and the impact

on a DCS member’s livelihood. As it can be seen, the perceived change on all the three

parameters is extremely positive and may be attributed to the cattle feed launched by

Panchmahal Milk Union. This finding reinforces the strong preference and acceptability

among the DCS members for the cattle feed of Panchmahal Milk Union.

0

20

40

60

80

100

120

140

160

180

N o o f R espo nd ent s

Quality of catt le feed M ilk product ion Fat content

Paramet er

Perceived C hang e in C at t le F eed Quali t y o n V ar io us Paramet ers

" Increased"Decreased



9.8 Awareness about Cattle Feed Manufactured by Panchmahal Dairy The awareness of the milk producers plays an instrumental role in their harnessing the

benefits of the cattle feed plant set up by Panchmahal Dairy. Only when the members

are fully aware of the various offerings in terms of the cattle feed provided by

Panchmahal Dairy, they would be in a position to duly comment on its advantages and

limitations. The findings pertaining to the different items related to awareness of

respondents about Panchmahal Dairy’s cattle feed are summarized as following.

9.8.1 Awareness about Panchmahal Dairy Manufacturing Cattle Feed

Of the total respondents interviewed, only around 46 percent were aware of the fact that

Panchmahal Dairy manufactures its own cattle feed. The remarkable observation that

out of the 324 respondents who were aware about Panchmahal Dairy’s cattle feed,

around 321 (99%) have actually used it and indicated their preference for it. This

indicates the high degree of acceptability of Panchmahal Dairy’s cattle feed. The

limitations of awareness of milk producers about Panchmahal Dairy’s cattle feed can be

attributed to the fact that it had only been slightly more than a year from the time

Panchmahal Dairy’s cattle feed was first made available to its members.

Awareness that Panchmahal Dairy Manufactures Cattle Feed

Know 46%

Do not Know13%

No Answer 41%

9.8.2 Awareness about Cattle Feed Varieties Manufactured by Panchmahal Dairy As was the case with awareness about Panchmahal Dairy’s cattle feed, the awareness of

the respondents about the three varieties of cattle feed manufactured by Panchmahal

Dairy was quite low. Only 26 percent of the total respondents knew about the existence

of different varieties of Panchamrut cattle feed. Only when the user is conscious of the



choices available to him/her, (s)he can make a judicious decision. Therefore, for gaining

a better understanding of the strengths and limitations of such a product as cattle feed,

its penetration should be considerably higher.

9.8.3 Awareness about Different Pack Sizes of Cattle Feed Manufactured by

Awareness that Panchmahal Dairy Manufactures 3 Varieties of Cattle Feed

Know 26%

Do Not Know

No Answer 54%

20%

Panchmahal Dairy This item is a variant of the previous one discussed above. Here, instead of varieties of

cattle feed, the awareness of respondents about the different pack sizes of Panchamrut

cattle feed is investigated. It is not startling to find that the awareness of respondents is

even lower than in the preceding two cases. Only 19 percent of the respondents knew

that the cattle feed of Panchmahal Dairy comes in different pack sizes.

Awareness that Panchmahal Dairy's Cattle Feed is Available in Different Pack Sizes

Know19%

Do Not Know 26%

No Answer

55%



11. KEY FINDINGS FROM SECONDARY DATA 10.1 Hypothesis Testing The change in procurement of milk by the dairy from DCS is independent of the change

in the sales of cattle feed by the dairy to DCS 10.1.1 Association between Procurement of Milk and Sales of Cattle Feed

To determine the type of association (independent or dependent) between change in

procurement of milk by the dairy from DCS and sales of cattle feed by the dairy to DCS,

Chi‐square test has been conducted.

The cattle feed factory started its operation in the month of January 2005. It is considered

that sales of cattle feed manufactured by dairy would have been stabilized by the last

quarter of the year 2005. Therefore, procurement of milk and sales of cattle feed data for

the months of October, November, and December for the year 2004 and 2005 are used to

compute the Chi Square Test statistic.

The average quarterly figures of milk procurement and cattle feed sales for both the

years are calculated by using their corresponding monthly figures. Then, the percentage

change in average quarterly figures of milk procurement and cattle feed sales of 2005

over that of 2004 is calculated respectively. The summarized data is presented in the

following table.

Procurement of Milk

Change (in %) Increase Decrease No Change Total

100‐50 28 68 18 114

Decrease 50‐0 15 24 24 63

Sales

of

Cattle

feed

Increase 0‐50 40 39 50 129



50‐100 52 27 60 139

>100 159 54 79 292

0,1 199 69 51 319

0,0 144 174 287 605

Total 637 455 569 1661

1. 0,1 refers to all those DCSs where sales of cattle feed is reported only after the


2. 0,0 refers to all those DCSs where sales of cattle feed is not reported even before

and after the establishment of CFF

3. Increase refers to the increase in milk procurement of more than 10 per cent in

last quarter of 2005 from that of corresponding quarter in 2004

4. Decrease refers to the decrease in milk procurement of more than 10 per cent in

last quarter of 2005 from that of corresponding quarter in 2004

5. No change refers to the increase / decrease in milk procurement is with in the

range of 10 per cent in last quarter of 2005 from that of corresponding quarter in

2004

6. All DCS that reported sales of milk to the dairy only in the last quarter of the

year 2005 has been taken in increase of milk procurement group

7. All DCS that reported no sales of milk to the dairy in the last quarter of both the

years 2004 and 2005 respectively has been taken in no change of milk

procurement group 10.1.2 Hypotheses Statement

H0: Percentage change in procurement of milk by the dairy from DCS and percentage

change in the sales of cattle feed by the dairy to DCS are independent

H1: Percentage change in procurement of milk by the dairy from DCS depends upon the

percentage change in the sales of cattle feed by the dairy to DCS



10.1.3 Calculation of Expected Frequencies and Chi‐Square from the Input Table

Row Column fo fe fo ‐ fe (fo ‐ fe)^2 ((fo ‐ fe)^2)/fe

1 1 28 43.7 ‐15.7 247.1 5.7

1 2 68 31.2 36.8 1352.2 43.3

1 3 18 39.1 ‐21.1 443.2 11.3

2 1 15 24.2 ‐9.2 83.9 3.5

2 2 24 17.3 6.7 45.5 2.6

2 3 24 21.6 2.4 5.8 0.3

3 1 40 49.5 ‐9.5 89.7 1.8

3 2 39 35.3 3.7 13.4 0.4

3 3 50 44.2 5.8 33.7 0.8

4 1 52 53.3 ‐1.3 1.7 0.0

4 2 27 38.1 ‐11.1 122.7 3.2

4 3 60 47.6 12.4 153.4 3.2

5 1 159 112.0 47.0 2210.6 19.7

5 2 54 80.0 ‐26.0 675.4 8.4

5 3 79 100.0 ‐21.0 442.2 4.4

6 1 199 122.3 76.7 5877.1 48.0

6 2 69 87.4 ‐18.4 338.0 3.9

6 3 51 109.3 ‐58.3 3396.3 31.1

7 1 144 232.0 ‐88.0 7747.5 33.4

7 2 174 165.7 8.3 68.4 0.4

7 3 287 207.3 79.7 6359.8 30.7

Χ2 256.2

fe = (RT * CT)/ n

10.1.4 Analysis of Results

The calculation table shows that sample chi‐square value is around 256.2. This sample

chi‐square will be compared with chi‐square statistic based on degrees of freedom and

significance level. The following figure depicts the Chi‐square distribution with 12

degrees of freedom [(number of rows – 1 = 6) * (number of columns – 1 = 2)], showing

the 0.01 significance level. The chi‐square statistic as per the table is 26.217, which

implies that the acceptance region for the null hypothesis in the following figure goes



from the left tail of the curve to the Chi‐square value of 26.217. The figure shows that the

sample Chi‐square vale of 256.2 is not within the acceptance region. Therefore, null

hypothesis has failed to be accepted. This proves that percentage change in procurement

of milk by the dairy from DCS depends upon the percentage change in the

consumption/sales of cattle feed by the dairy to DCS.

Figure 1: Curve for Testing the Hypothesis through Chi‐Square Distribution

Acceptance Region

Chi‐Square Distribution

26.217 256.2



10.2 Observed Trend in Cattle Feed Consumption and Milk Procurement of DCS

The five‐year data for cattle feed consumption and milk procurement of various DCS

was analyzed at the Taluka‐level. The trend for the aforementioned two variables is

depicted in the following graphs.

10.2.1 Trend for the First Five Talukas (1‐5) with Highest Milk Procurement It can be seen that the growth in consumption of cattle feed last year (2005) has far

outstripped the growth of either milk procurement or consumption of cattle feed in any

of the last 3 years. Such a high growth rate can be either due to a strong marketing push

or due to the strong demand created by a vigorous awareness campaign and publicity

by Panchmahal Dairy.

0

5000000

10000000

15000000

20000000

25000000

30000000

Annual Milk Contribution (in litres)

Lunavada Shahera Kadana Khanpur KalolName of Block

Yearwise Milk Contribution by Different Blocks

2002200320042005



0

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

4500000

5000000

Annual Cattle Feed Consumption (in Kg)

Lunavada Shahera Kadana Khanpur KalolName of Block

Yearwise Consumption of Cattle Feed

2002200320042005

10.2.2 Trend for the Next Five (5‐10) Talukas with Highest Milk Procurement The trend visible in case of talukas providing the highest milk supply gets reinforced by

a similar trend in case of the talukas next highest in terms of milk procurement.

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

Annual Milk Contribution (in Litres)

Santrampur Godhra Ghogamba Halol JambughodaName of Block


Series1Series2Series3Series4



0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

1800000

Annual Cattle Feed Consumption (in kg)

Santrampur Godhra Ghogamba Halol JambughodaName of Block



10.2.3 Trend for the Next Five Talukas (10‐15) with Lower Milk Procurement The preceding trend continues even for talukas with lower levels of milk procurement,

indicating either an across‐the‐board strong marketing push or a widespread demand.

The exact driving factor can be identified with conviction only in the next one or two

years when the medium‐term impact of cattle feed plant becomes more discernible.

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000


Dahod Fatehpura Morva Limkheda JhalodName of Block

Yearwise Milk Contribution by Various Blocks




0

50000

100000

150000

200000

250000

300000

350000

Annual Consumption of Cattle Feed (in kg)

Dahod Fatehpura Morva Limkheda JhalodName of Block



Trend for the Three Talukas (15‐18) with Lowest Milk Procurement Barring an odd exception, the unidirectional trend indicating a spurt or quantum leap in

consumption of cattle feed manifests even in the case of talukas with the lowest milk

contribution to the Panchmahal Dairy.

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

500000


Devghad Baria Garabada DhanpurName of Block





0

20000

40000

60000

80000

100000

120000

Annual Consumption of Cattle Feed (in kg)

Devghad Baria Garabada DhanpurName of Block



11. CONCLUSIONS The impact assessment study has revealed a high degree of acceptability and satisfaction

on most parameters, among the users of cattle feed manufactured by Panchmahal Dairy.

The key resource persons interviewed from the selected DCS have also reinforced the

positive perception of the targeted BPL milk producers and users of cattle feed. Even

though the impact assessment indicates a strong indication of the rationale for

establishment of the cattle feed manufacturing plant by Panchmahal Dairy, another

rigorous evaluation after a couple of years would be able to bring out the medium‐term

impacts of this plant in a much more conclusive manner. Such recommendation stems

from the fact that the present impact assessment study has been undertaken only after

one year of commencement of operations of the cattle feed manufacturing plant of

Panchmahal Dairy.

Processes like awareness‐building, adoption and trial of products with reasonable cost

implications are gradual and take considerable time to unravel their sustainable

acceptability and usage. The cattle feed manufactured by Panchmahal Dairy is one of

such products in the context of the small and marginal BPL milk producers. It is also to

be noted that the traditional communication channels for rural masses have a relatively



higher transmission lag time that may possibly explain the low awareness levels in BPL

milk producers about the cattle feed manufactured Panchmahal Dairy. Nevertheless,

there is no way in which the favorable perception for Panchmahal Dairy’s cattle feed can

be undermined. Such projects of reasonable scale, established with a developmental

motive, can undoubtedly help in improving the economic landscape of the less‐

endowed regions of India by mainstreaming their small and marginal stakeholders.



ANNEXURE 1: IMPACT OF DAIRY ON LIVELIHOODS OF FARMERS: SOME CASE ILLUSTRATIONS

Case One: Valand Hasuben Jayantibhai

Hasu Ben, a resident of Naroda village, is a woman of deep entrepreneurial insights. A

mother of two children – a son (studying in standard 7) and a daughter (studying in

standard 8), she has shouldered the responsibilities of both a mother, and an income‐

earner for the family exceedingly well. To supplement her husband’s income from

agriculture, Hasu Ben took up dairy as a livelihood activity.

Hasu Ben’s family appears to be moving up the socio‐economic ladder through the

fruits of their own efforts as well as government support. They own a bio‐gas plant to

meet their fuel demand for cooking for which Hasu Ben received 25 per cent subsidy in

the total construction cost of Rs. 8000 of the plant. She uses cow dung as input for the

bio‐gas plant. The residue generated from the bio‐gas plant is used as manure in her

fields.

However, the decision to undertake dairy as a supplementary source of income was

taken by the family keeping the vagaries of agriculture incomes in mind. While

agriculture output fluctuates (and so does their prices), dairy output shows a more or

less secular trend with stable prices. Also, farm residues go into dairy as the raw

material. Thus, dairy provides a low‐cost business proposition to the family to augment

family income.

Hasu Ben’s family possesses two adult cross‐bred cows along with four calves, and an

adult local buffalo along with a calf. One cow and a buffalo are in milking period. They

provide cattle feed manufactured by Panchmahal Dairy to their animals that has helped

increase the milk output per animal and fat content as well. They believe that if they do

not use cattle feed, then their milk production would reduce by 20‐50 per cent. Hasu Ben

agrees that cattle feed improves and maintains the health of animal and aids in early

maturity of calves. Therefore she feeds cattle feed to the dry animals and calves also.

She purchases the cattle feed manufactured by Panchmahal Dairy because of its easy

availability, convenient credit facility, high quality, and better response by animals.

Panchmahal Dairy though adding to her family’s income has also considerably added to



Hasu Ben’s workload. She starts work from 5:30 in the morning – does the household

chores as well as take care of the cattle. However, she gets active support from her

husband and children.

She has been happy with her decision to take up dairying as an economic activity

because she claims to be facing no problems over the testing and pricing of milk.

Furthermore the payments are regular which provides her family with stability in

incomes and cash flows. Given the fact that most farmers in India are credit constrained,

regularity in payments and stability in cash flows go a long way in keeping Hasu Ben’s

family out of poverty’s way.

Table 1: Monthly sources of income

Sources of Income

Amount (Rs.) Sources of Expenditure Amount (Rs.)

Dairy (average) 4,400 Livestock 2,100

Agriculture (average) 2,000 Electricity Bill 200

Educational Expenses 300

Household Expenditure 1800

Others 600

Total 6,400 Total 5,000

Retained Earnings 1,400

Source: Primary survey (2005)

Hasu Ben’s family attributes the change in their economic well‐being to the income from

dairying. Prior to 1998, when agriculture was their only source of income, it was difficult

for them to make their both ends meet. Now, with dairy as a supplementary source of

income, they not only have additional income but also the ability to provide nutritious

diet to the family members, especially the children.

Even though they continue to live in mud house yet they have constructed concrete

sheds for their livestock as a mark of their tribute to these livestock that have played

such an important role in changing their fortunes.



Case Two: Valand Chiman Bhai Kalu Bhai

Chiman Bhai, a barber by profession, is a resident of Naroda village in the Lunawada

Taluka. He has a large family comprising of himself and his wife along with 4 young

children (3 sons and 1 daughter). One son does not study, but the other two are in

standard 3 and standard 2 respectively. The daughter is in standard 1. Thus, the family

structure of Chiman Bhai shows that there is a need for him to ensure a regular supply

of nutritious food for his children, especially milk and milk products.

The 1 acre of agricultural land he owns is insufficient for him to meet his family’s needs.

Also, in the absence of adequate irrigation facilities and viable landholding size, he is

not able to engage in high value, commercial agriculture which can give potentially

higher returns. Financially, Chiman Bhai is not in a position to make investments in his

farm to increase income from agriculture. Therefore, Chiman Bhai decided to undertake

dairying as an income generating activity to supplement his income as a barber. He now

owns a buffalo and a calf of local breed. The buffalo is in milking period and provides

him on an average of 7 litres of milk per day. He generally sells 6 litres of the milk in

DCS at the rate of Rs. 12.5 per litre amounting to Rs. 75 per day.

Dairying has provided him with a low‐risk, low‐cost, good returns business proposition.

He has put his farm for growing fodder for his livestock – maize, tuar and millets. These

crops neither require much care and attention nor require intensive irrigation. With

minimal care he is able to ensure a regular supply of fodder for his cattle. In fact the

fodder output from his farm is good enough to ensure that he does not have to spend

too much on concentrates and cattle feed.

As a member of the Panchmahal Dairy’s DCS, Chiman Bhai has also freed himself of the

marketing burden for his perishable milk. The institutional arrangement between

Chiman Bhai and the DCS has spurted from the acumen of the dairy farmers like him

who have devised newer and innovative ways of reducing the uncertainty and

transaction costs involved in the business of dairy and safeguarded their long‐term

extended pay‐offs. As a small player, it would have been very difficult for Chiman Bhai

to find well‐paying markets for his milk while taking care of his hair‐dressing business.

The assurance of regular purchase of milk from the DCS allows him to explore and



concentrate on other sources of income. He though complains of problems in testing of

the milk at the dairy cooperative society at times.

Today Chiman Bhai is a happy and satisfied milk producer. Earlier he would always be

cash starved and indebted, but now he is able to generate an income of more than Rs.

2000 per month from dairy, of which he saves Rs. 1000 per month for his children’s

future. Dairy has not only helped in improving the present day lives of his family

members, but has also provided a window of opportunity to them to improve their

future as well.

Case Three: Khant Raisinh Bhai Babu Bhai

A resident of Mahelan village in Shahera taluka, Khant Raisinh Bhai Babu Bhai is a

progressive farmer who believes that the development of the society depends on the

development of its people. He believes that it is in the hands of the person himself to

make a positive difference to his life as well as to the lives of those around him.

A farmer of modest economic status, Raisinh Bhai is the owner of 1.2 acres of

agricultural land along with a Public Distribution Shop (PDS) in the village. His family

consists of his mother, wife, 2 sons (one studying the standard 2 and one studying in

standard 9), and 2 daughters (one studying in standard 8 and one in standard 12).

Raisinh Bhai was pushed into dairying due to the pressures of increasing family size and

low, stagnant incomes from agriculture. He had no prior experience of dairying, but

given the fact that the dairy cooperative societies provided a good value proposition, he

decided in favour of adopting dairying as a livelihood activity. He took up dairying

purely as an entrepreneurial, commercial activity to reap advantages of the decent

returns from dairy. He feels that there is a good future for him in the dairy business

through the cooperative society. He now possesses three cross‐bred buffaloes and their 4

calves.

Raisinh Bhai uses dairy as a supplementary source of income, and a source of nutrition

for his young children. His monthly income from dairy is around Rs. 5500, of which he

spends Rs. 2500 on his cattle. Of the remaining Rs. 3000, he uses the income to meet the

consumption needs of his family members (Rs. 2000) and also to augment his family’s

savings (Rs. 1000 per month).



The amount which he spends on cattle includes the cost of feeding cattle and their

maintenance. He uses cattle feed due to insufficient availability of agriculture produce

from his field. Still, he believes that home made feed is equally good.

Dairy cooperative society has provided him with a low cost, sustainable livelihood

option – he uses his farm to generate fodder for his cattle, the large pool of labour within

his family help him manage the dairy activities collectively. He arranges for the cattle

feed and fodder for feeding the cattle. His wife and daughters have the responsibility of

milking the cattle, and his sons shoulder the responsibility of taking the milk to the

cooperative society for sale.

Upon adopting dairying as an economic activity in the household, Raisinh Bhai admits

that his family’s financial situation has improved dramatically. Sale of milk to the dairy

cooperative society provides regular, timely payments while at the same time do not

subject the farmer to the risk of finding a buyer for his perishable milk, and thus also

reduces the farmer’s transaction costs. Raisinh uses electricity in his house. He does not

possess many electronic gadgets and equipments, but owns a television, which he claims

to have purchased from his savings from dairying. Thus, dairying has helped the farmer

rise from the subsistence existence into a world of aspirations. Raisinh Bhai’s faith in

destiny of an individual is a testimony to the fact that should there be an entrepreneurial

acumen in a farmer, he or she can really exploit the opportunities offered by the

cooperatives, in terms of timely payments, assured markets and technical and veterinary

assistance.

Case Four: Chauhan Andu Bhai Udaisinh Bhai

A small, subsistence farmer, Andu Bhai was troubled by all the vagaries of

agriculture – stagnating incomes, fluctuating incomes, uncertain incomes! For the past 2

years, he claims that there have been no returns from his farming activities. A father of 3

children – 1 son and 2 daughters, he was in dire need for looking at an alternative source

of income – something which provided him with assured returns!

As an option, he tried dairying as a livelihood activity. He put all of his 0.75 acres

land to grow fodder for his cattle. He and his wife double‐up as labour for dairy work in

the household. He used to grow some seasonal crops in his farm but of late he has been

completely focused on meeting the fodder needs of his milch animals.



Outcome? From unstable, low income, Andu Bhai’s household has moved into

an era of stable and relatively higher incomes, thanks to dairy. He now gets an assured

income of more than Rs. 2000 from dairy every month – something he could never

imagine from agriculture, given the constraints he faced on his farm on account of poor

investments, marginal landholding size, low productivity and lack of adequate

irrigation.

Andu Bhai never tires thanking Panchmahal Dairy for not only improving the

present‐day life of his family members, but also their future. He spends a part of his

income from dairy on education for his children.



ANNEXURE 2: CHECKLIST FOR INTERACTION WITH KEY RESOURCE PERSONS OF DCS

1. Village: 2. Taluka: 3. Name of the Society: 4. Name of the Secretary / Chairman / Director: 5. Membership details of last 4 years

Years BPL Members APL Members Total Members 2005 2004 2003 2002

6. Livestock population details of last 4 years

Years Cow Buffalo Calf Total 2005 2004 2003 2002

7. Milk production and procurement details of last 4 years

Years Production (in liters) Procurement (in liters) Cow Buffalo Total Cow Buffalo Total

2005 2004 2003 2002

8. Quality of milk procured

Years Low (in %) Soured / Curd (in %) 2005 2004 2003 2002



9. Does DCS sell cattle feed? If yes, quantity sold Cattle Feed Response

(Yes / No) 2002‐03 2003‐04 2004‐05 2005‐06

Panchmahal Dairy a) Self‐manufactured b) Procured from

other dairies

Others (please specify) a) b) c)

10. Members mostly demand which pack size of cattle feed manufactured by Dairy?

Variety Quantity (in Kgs) Panchamrut

25 kgs 50 kgs 65 kgs

Special Panchamrut 25 kgs 50 kgs 65 kgs

Mineral Mixture 1 kg 5 kgs

Total 11. If DCS sells cattle feed manufactured by Dairy then what are your views regarding

the perceived benefits of the cattle feed? a) b) c) d) e) 12. Do you or any other members of Board create awareness about the benefits of cattle

feed among the members? If yes, how do you undertake?



13. Understand the factors or find out the reasons, which lead to following situations

• Selling cattle feed provided by dairy before CFF, not selling cattle feed provided by dairy after CFF a) b) c) d) e)

• Not selling cattle feed provided by dairy before CFF, selling cattle feed provided

by dairy after CFF a) b) c) d) e)

• Selling cattle feed provided by dairy before as well as after CFF, but selling

increased after CFF a) b) c) d) e)

• Selling cattle feed provided by dairy before as well as after CFF, but selling

decreased after CFF a) b) c) d) e)

• Selling cattle feed provided by dairy before as well as after CFF, but no change in

selling a) b) c) d) e)



• Not selling cattle feed provided by dairy before CFF, not selling cattle feed provided by dairy after CFF a) b) c) d) e)

14. If DCS does not sell any kind of cattle feed then reasons thereof a) b) c) d) 15. If DCS sells cattle feed manufactured by others then what is the price, commission,

pack‐sizes, and credit / incentive structure? 16. If DCS sells cattle feed manufactured by Dairy, then what is the difference that you

have experienced/ felt between cattle feed supplied earlier and cattle feed manufactured now by dairy?

17. Do you find any problem or have any complaint against cattle feed manufactured

by dairy? If yes, what are those? 18. Any suggestions or views regarding cattle feed manufactured by Dairy.



ANNEXURE 3: QUESTIONNAIRE FOR PRIMARY SURVEY OF BPL MILK PRODUCERS

1. Village: 2. Taluka: 3. Name of the respondent: 4. Age: 5. Number of milch animals reared by you:

Cow Buffalo

Year Cross‐bred Adult Calf

Local Adult Calf

Cross‐bred Adult Calf

Local Adult Calf

2005

2004

Calf signifies young ones of age 3 years and less 6. How many animals are in milking period and respective milking days? Cow Buffalo

Cross‐bred Local Cross‐bred Local

Number

Expected milking days

7. What is the cost of feeding milch animal? S. No.

Item Unit (Kgs/ pudda / other)

Total quantity given per day Price (per unit)

Animals – In milk Animals – Dry

1 Grains



Maize

Wheat

Other

2 Barn

Maize

Wheat

Paddy

Jowar / Bajra

Urad / Tuar

Other

3 Fodder

Green

Dry

4 Cotton seed cake

5 Cattle feed

6 Mineral Mixture

7 Others

8. What are the total milk production, consumption, and sale? Particulars Cow Buffalo

Production (ltrs/day)

Consumption (ltrs/day)



Sale

DCS (ltrs/day)

Sale Price (Rs./ltr)

Other (ltrs/day)

Sale Price (Rs./ltr)

9. Has your income from dairying as a percentage of your total income changed in 2005

over 2004? Increased / Decreased 10. Has your household milk production increased over the last one year? Yes / No 11. What do you believe to be the main reasons for it?

a. Increase / decrease in the number of milch animals

b. Increase / decrease in the number of milch animals in lactating period

c. Increase / decrease in the number of milking days

d. Increase / decrease in the milk output per animal

12. Have you been using any kind of cattle feed for your animals? Yes / No 13. Have you ever used any kind of cattle feed for your animals? Yes / No 14. If yes, which cattle feed is / was being used by you?

a. Dudh malai – Amul

b. Dudh malai – Dharti

c. Godrej

d. Panchmahal Dairy

e. Other Dairy’s cattle feed

f. Others (please specify)

15. If yes, main benefits perceived by you in using cattle feed

a. Increases the milk production: Yes / No

b. Increases the fat content: Yes / No



c. Increases the milking period: Yes / No

d. Improves the health of animal: Yes / No

e. Reduces the problem of repeat breeding: Yes / No

f. Early maturity of calves: Yes / No

16. If yes, by how much would your milk production change if you do not / did not

provide cattle feed to your animals

a. No change

b. Upto 10%

c. Between 10% and 20%

d. Between 20% and 50%

e. More than 50%

17. If yes, how would the fat content in the milk produced by your animals change if

you do not / did not provide cattle feed?

a. No change

b. Minor reduction

c. Reduce substantially

18. If no, reasons for not using or stopped using cattle feed

a. Never tried

b. Home made feed is equally good

c. Sufficient availability of agricultural produce at home

d. Preference for cotton seed cake or other concentrates

e. Inability of animals to adjust to cattle feed

f. No additional benefits experienced after trying

g. Low affordability / high costs

If member uses cattle feed manufactured by others or stopped using cattle feed then ask him questions 20 to 23 19. Do you know that Panchmahal Dairy also manufactures cattle feed? Yes/No 20. If yes, reasons for not purchasing cattle feed manufactured by Panchmahal Dairy



a. Haven’t tried it/ Satisfied with the present cattle feed

b. Not available in DCS

c. Quality not as good as other cattle feeds used previously

d. Difficulty for the animals in adjusting to this cattle feed

e. No additional benefits experienced after using this cattle feed

f. Price is not commensurate with the product/Higher Price

g. Output of milk is not as good as with other cattle feeds

h. Credit terms are not as good as offered in case of other cattle feeds

i. Others (please specify)

21. If no, then would you like to give it a try? Yes / No 22. From your knowledge of Panchmahal Dairy, what do you think can be the reasons

for it to manufacture cattle feed?

a. To promote dairying in the region

b. To earn higher profits

c. To offer a better alternative to cattle feed users

d. To increase patronage / member loyalty

e. Any other (specify)

If member uses cattle feed supplied by Panchmahal Dairy then ask him questions 22 onwards 23. Do you know that Panchmahal Dairy manufactures three varieties of cattle feed? Yes / No 24. If yes, tick the ones you know of

a. Panchamrut (18% protein, white bag)

b. Panchamrut Special (20% protein, orange bag)

c. Panchamrut Super Special (25% protein, jute bag)

d. Mineral mixture



25. Do you know that cattle feed manufactured by Dairy is available in different pack‐ sizes? Yes / No

26. If yes, tick the ones you know of Cattle feed

a. 25 Kg.

b. 50 Kg.

c. 65 Kg.

Mineral mixture (please be aware of the fact that red bag is for Dahod and blue bag for Godhra)

a. 1 Kg

b. 5 Kgs

27. Reasons for the purchase of cattle feed supplied by Panchmahal Dairy

a. Easy availability

b. Available on credit (gets adjusted in milk payments)

c. Trust of better quality

d. Better milk output

e. Lower Price/affordability

f. Suits the animals better

g. Others (please specify)

28. Main benefits perceived by you in using cattle feed supplied by Panchmahal Dairy Benefits Yes No % Increase (if any)

1 Increase in milk production

2 Increase in fat content

3 Increases the milking period

4 Improves health of animals

5 Reduces problem of repeat breeding

6 Early maturing of calves



29. Other benefits

i. Reduces time and effort required for arranging fodder and nutrients a) Not much

b) Significantly

ii. Increases ease of payment a) Low

b) Medium

c) High

iii. Improves loyalty towards the Dairy a) Not much

b) Significantly

30. Do you find any difference in cattle feed that is supplied one year before and now?

Yes / No 31. If yes, what is the difference?

Particulars Increased / Decreased Change

Quality of cattle feed (softness)

Milk production

Fat content

Others (please specify)

32. In case the cattle feed plant of Panchmahal Dairy is closed down due to some

reasons, how would your dairying practice be affected?

33. Any suggestions and views regarding cattle feed manufactured by Dairy.



ANNEXURE 4: PROCESS FOR PROCUREMENT OF CATTLE FEED MANUFACTURED BY PANCHMAHAL DAIRY

DCSs send requisition slip for the purchase of cattle feed to the dairy through milk

route. The accounts department of the dairy receives requisition slip through tapal

section. The account departments process the requisition slip and forward it to the

marketing department. The marketing department prepares four copies of dispatch

instructions; one for cattle feed manufacturing plant, other for accounts department for

the deduction of purchase amount from the milk bill of the DCS in four milk cycles, and

the remaining two for DCS. The marketing department sends all the copies of dispatch

instructions to cattle feed manufacturing plant. After receiving dispatch instructions, the

plant dispatches the cattle feed to the concerned DCS along with two dispatch

instructions. Out of the two sent dispatch instructions, one would be returned by DCS to

the plant with duly signed. The third copy would be retained by plant and the last

would be sent to accounts department for the deduction. The whole process takes on an

average 4‐5 days. The process is presented in the form of following flow chart.

DCS sends requisition slip for purchase of cattle feed to the dairy

Accounts dpt processes requisition slip & forward to marketing dpt.

Marketing department prepares 4 copies of dispatch instructions

CFF dispatches cattle feed upon receiving dispatch instructions

Dispatch instructions is sent to accounts dpt. for deduction



ANNEXURE 5: PROCESS FOR MANUFACTURE OF CATTLE FEED BY PANCHMAHAL DAIRY

The levels for moisture, protein, fat, fiber, silica, infestation, retentions etc. are specified

for various raw materials like grains, cakes, extractions, bran & chuni, filler and others

used in the manufacturing of balanced cattle feed. The purchase order of different raw

material is placed by the purchase department of the dairy through tendering process.

The raw material is supplied by the selected suppliers to the cattle feed plant. At the

entrance gate of the cattle feed manufacturing plant, supplied raw material is weighed

by plant’s weigh bridge to calculate the exact quantity delivered. Thereafter, samples are

taken for check the quality of raw material supplied. These samples are sent to the in‐

house laboratory for testing the content levels of the raw material supplied. If the

content levels of the raw material supplied are less than the specified levels then a

penalty in the form of deductions or return of raw material is imposed on the supplier.

The weighed raw material is unloaded and stacked at the raw material godown. These

raw materials will not be used till the result of the test of their content levels is reported

by the laboratory. The report is sent to purchase as well as accounts department for the

calculation of amount to be paid for the purchase of raw material.

The entire cattle feed manufacturing plant is computerized. A formula has been

developed by the experts for the preparation of balanced cattle feed on the basis of

quality (nutritive value and toxins %) and price of different raw materials. The different

suitable raw material is put in to their respective bins before the computerized batching

as per the formula.

The different raw materials are grinded in the hammer mill and mixed in the batch

mixer. Thereafter, molasses is added to the above mixture. This mixture is passed

through steam. This mixture goes to the pellet machine for the production of pellets.

These pellets are cooled for sometime before sending them to the sieve machine to

remove unused mixture. This unused mixture is again sent to pellet machine for the

formation of pellets.



Samples of manufactured pellets are taken to test the quality. Manufactured pellets are

packed in bags of different capacities by the automatic packing machine. Then, these

packed bags are stored in the finished products godown. These bags are dispatched to

different DCSs as per their demand. The process is presented in the form of following

flow chart.


Purchase of raw material through tenders

Receipt of raw material at cattle feed manufacturing plant

Weight and quality check of supplied raw material

Unloading and stacking at raw material godown

Sharing quantity and quality report with purchase & accounts dpt.

Placing suitable raw material into different bins

Use of computerized batching formula

Grinding & mixing of raw materials in hammer mill and batch

mixer


Addition of molasses and steam

Production of pellets through pellet machine

Cooling of pellets

Sieving to remove unused mixture

Sending unused mixture to pellet machine again

Lab testing of the pellets

Dispatching bags as per the demands of different DCSs

Stacking of bags in finished products godown

Packaging in different sizes of bags by packing machine


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