Daily Glass of
Milk You Drink: The Untold Story
Executive Summary
Milk is mother natures’
perfect food for us, the wholesome diet – but only if you're drinking high
quality product.
· When consuming
your daily glass of milk have you ever experienced a taste characteristic as
tart/tangy or produced by acids?
· When consuming
your daily glass of milk have you ever experienced that after compulsorily
boiling, it turns thick/ turbid?
· When consuming
your daily glass of milk have you ever experienced bloating or indigestion?
If "YES" then you
might be drinking milk coming from Dairy Cooperatives.
The
conventional three-tier cooperatives structure consists of a Dairy Cooperatives
Society at the village level which is affiliated to a milk unions at the
district level that in turn is further federated into a milk federation at the
state level. The business model has no answer for consumers regarding milk
source i.e., Cow/Buffalo/Pooled milk? There is lack of control over cattle
health, housing, breed, environment, milking procedures and sanitation
practices adopted by farmers who are at the bottom of pyramid and that is the
prime factor affecting sustainability. The control comes only from milk Procurement
to Product (P-2-P) and not from Clean Milk Production to Product (CMP-2-P).
Don't you sense it’s a clear cut bitter "TRUTH"?
If "YES" then you
must shift to drinking milk coming from Dairy Corporates.
The Dairy
Corporates have control over all aspects starting from "Land -2-
Table" and have more potential to deliver highest quality of dairy
products. This is done through backward integration of business model, i.e.
setting up own dairy farms where highest quality of dairy products can be
produced confronting to international standards, producing best quality fodder
for cattle on own lands in a organic manner, as after all "We drink
what the cattle eats", maintaining thorough cattle-wise records of
entire herd i.e., health, nutrition, breeding, milking and milk quality data to
ensure "Tracebility". The model incorporates a highly bio-secure, no
human touch milking process. Cleanliness is given the foremost priority to
ensure hygienic living and infection-free cattle.
It's high time to improve your living
standards and to improve is to change!
Dairy Cooperatives Model
Milk quality is
dependent on three key areas viz. milking practices, the cattle and their
environment, and the milking equipments. A common hurdle with many cooperatives
model is failure to look at all three areas together and all causes of the milk
quality problems are hard to identify. This snag in cooperatives model has
resulted out India as a minor player in the world market inspite of having
largest milk production i.e., 17% of world’s total dairy production. India is
ranked at 18th position in the world exports with a 1.6% share in
total world exports. It is envisaged that till 2030 dairy products demand will
rise at a rate of 9%-12% and industry demand at a rate of 4-5%. Surely, 100%
self-sufficiency will be a challenge for India as local demand will be high
i.e.160 to 170 million tonnes of milk that would be required by 2030.
Encouraging more Dairy Corporates can help to curb this menace.
Dairy Corporates Model
Producing a
superior quality milk product begins at the dairy farm level. Milk quality
cannot be improved after it leaves the farm. Dilution or processing will not
make good milk out of bad. Prevention is the only way to assure milk of good
quality and flavor. Dairy Corporates Model incorporates strategies starting
from farm level to Clean Milk Production to best quality product development so
as to attain sustainability. Good management and good governance forms the
pillars of such a model. The ideal Dairy Corporates model is as depicted below:
Emergence
of more dairy corporates are foraying into forward integration by launching
farm branded milk and milk products, launching innovative value added products
conforming to international standards in Indian and global markets, which in
turn will make Indian dairy industry more competitive therein at global
context. In order to achieve this, let us define Indian dairy industry growth
affecting factors empirically as:
IDG
= F1 x F2 x F3 x F4 x F5
x F6
(Where, IDG = Potential of
Indian Dairy Growth, Factors: F1 = Milch cattle
population, F2
=
Cattle's Average yield, F3 = Dairy farmer's intent to consider
dairying as a full time business, F4 = Availability
of lands for feed, F5 = Available
finance for milk production/infrastructure/cattle health, feed and nutrition, breeding/chilling/quality/logistics,
F6
=
Market opportunity)
Now let us
examine all these factors one by one and look at reimagining our approach by
adoption of Dairy Corporates model to attain sustainable growth in Indian
dairying:
· F1 = In India,
cattle are mostly underfed and mismanaged by small and marginal farmers. Reimaging
a Dairy Corporates model where all these farmers are enrolled into workable
groups, clusters then it would be really easy for capacity building on health,
breeding and feeding systems for cattle in a cost effective manner.
· F2 = Indian milch
cattle population is highly scattered, reimaging a Dairy Corporates model where
it is easy to implement a cluster breeding program for pockets of cattle. Also,
it is convenient to announce schemes for large commercial dairy farms of
corporates.
· F3 = Dairying
without farmer's commitment is not sustainable. It is easy under Dairy
Corporates model to develop formalised groups with progressive thoughts and to
device and implement a strategy to grow and sustain by active engagement of the
farmers and their family. It is only through such community development, Indian
dairying can be seen as a professionally white collar activity to lure next
generation.
· F4 = Rapid
unplanned urbanization has led to scarcity of agricultural lands. Almost two
third of milk production cost accounts to the feed alone. In such scenario,
contract, community or corporate farming is the only solution to sustain the
growth of Indian dairy.
· F5 = In many
instances, under cooperatives model the farmer oriented investments are not
reaching the last mile or they are not being utilised for the purpose they were
meant to create an impact. Thus, community oriented schemes with special
incentives to investment done by community or corporates for large scale dairy
farming, processing, cattle feed, and animal health missions, feed programs or
breed development could only be the solution. It's high time to shift
investment mode from PPP (Public-Private-Partnerships) to PCP (Private-Community-
Partnership) and/or PPCP (Public-Private-Community-Partnership) model.
· F6 = Due to Indian
consumer's changing lifestyle and socio-economic conditions there is a rise in
the inspirational levels and packed dairy products of high quality with health
and nutrition increasing in demand. Such situation offers a huge potential for
setting up community driven dairy farms that can be developed under PCP
(Private-Community-Partnerships) rather than PPP (Public-Private-Partnerships).
A
sample of draft design as shown below symbolises the results chain that can
emerge out of Dairy Corporates model; adoption on a large scale at national
level that links the outcome with the final impact which will promote growth in
Indian dairy industry. A national strategy for sustainable dairy development in
the country can be devised in this manner and the trend can be shifted from
“Share Milkers” to “Share Holders”. However, the key to this massive change
will depend on the willingness of farmers to adopt a more sophisticated
approach for running their businesses and the adoption of the Dairy Corporates
business model.
Conclusion
Milk
quality is a national issue. Consumers need a better quality product so it is
the dairy producers and dairy industry's obligation to meet that request. India
has witnessed lot of floods but still one flood is the need of the day to
change entire landscape throughout the length and breadth of the country,
starting from the villagers through the districts to the large metropolitan
cities. Dairy Corporates model can play a strategic role to help dairy farmers
control their created resources and also direct their own development. The present
blog has brought out the model as a mantra for developing a national level
strategy to meet the humongous demand of milk and milk products through
sustainable dairying in India through community mobilization.
"Every time you
drink a glass of milk take the awe of understanding over the awe of ignorance”.
By – Dr. Soham Trivedi
Rai University, Ahmedabad