Indian DairyingNational Dairy Forum, Addis Ababa, Ethiopia, 23-24 November 2010

VB Reddy

Dodla Dairy Limited

We do not claim a developed status..

We are developing …. And very fast..

In our own way..

We are Changing..

Our Past before 1990’s

We do this..

We are doing this..

Farmer is key and is treated so..

Our urban market - past

Our Urban market - Present

We did this for the World

We expect to do this soon..

Indian Dairy Industry progress Since 1960’s

• Government Dairy + Informal (Halwai / Gowli) - Until 1960

• Government Dairy + Informal + Private Large MNCs in Products (1960- 1970

• Co-Op Dairy in 1970’s • Industry Liberalization in 1990’s• Regulated small Private Dairy plants (1990 -2000)• After deregulation – Small Government Dairies + Large

Co-Op Dairies + Private Large MNCs + Small Private Dairies + MNC Co-Operatives + Informal market operators

Operation FloodOne of the world's largest rural development programs • Launched in 1970, Operation Flood has helped dairy farmers direct their

own development, having control of the resources they create in their own hands. 

• A National Milk Grid links milk producers with consumers in over 700 towns and cities,

• The bedrock of Operation Flood has been village milk  producers' cooperatives

Operation Flood's objectives included :• Increase milk production ("a flood of milk") • Augment rural incomes • Reasonable prices for consumers

• "Operation Flood can be viewed as a twenty year experiment confirming the Rural Development Vision" ( World Bank Report 1997c.)

Operation Flood - 3 phasesPhase I (1970-1980) • Financed by the sale of skimmed milk powder and butter oil gifted by the

European Union under the World Food Program.  • NDDB planned the program and implemented to link18 of India's premier

milk sheds with consumers in India's  four major metros.

Phase II (1981-85) • Increased milk sheds from 18 to 136 and Direct marketing of milk by

producers' cooperatives to 290 urban markets   • Self-sustaining system of 43,000 village cooperatives covering 4.25

million milk producers • Domestic milk powder production increased from 22,000 tons to 140,000

tons, helped to promote self-reliance.

Phase III (1985-1996)• Enabled dairy cooperatives to expand and strengthen the infrastructure

required to procure and market increasing volumes of milk.  • Veterinary first-aid health care services, feed and artificial insemination

services for cooperative members were extended, along with intensified member education.

Outcome of Operation Flood

• India no1 in Milk production and self reliant

• Capacity building • Increased emphasis to research and

development in animal health and animal nutrition. 

• Innovations enhanced productivity of milch animals.

  Dairying is now an instrument of development, generating employment and regular incomes for millions of rural people.    

Milk Production in India

Year Production (Million Tonnes) Per Capita Availibilty (gms/day)

1991-92 55.7 178

1992-93 58.0 182

1993-94 60.6 187

1994-95 63.8 194

1995-96 66.2 197

1996-97 69.1 202

1997-98 72.1 207

1998-99 75.4 213

1999-2000 78.3 217

2000-01 80.6 220

2001-02 84.4 225

2002-03 86.2 230

2003-04 88.1 231

2004-05 92.5 233

2005-06   97.1 241

2006-07 100.9 246

2007-08 104.8 252

2008-09 108.5 258Source: Department of Animal Husbandry, Dairying & Fisheries, Ministry of Agriculture, GoI

Our Food basket

Current Perspective

• Strengthening Cooperative Business, Production Enhancement

• Assuring Quality and creating a National Information Network.

• Increase liquid milk procurement by cooperatives to 33 %

• Increase liquid milk sales to 36.5 million kilograms per day

Why a National Dairy Plan?

• India attained a milk production of about 105 million tons in 07-08 by

adding an average incremental quantity of 3 million tons per annum

during the last 15 years

• Demand for milk is now growing fast – driven by rising incomes due to

high GDP growth, increase in population and export opportunities

• Milk demand is projected to be 180 – 210 million tons by 21-22 requiring

an average incremental addition of 6 million tons per annum over the

next 15 years

• Doubling the average incremental annual output calls for a focused

national initiative

hence the National Dairy Plan

Based on figures for 2008-09 (Provisional) of 108.5 million tons +Surplus handled by organised private sector is an estimate

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14 Major States : Milk production – ’07-08

State / Milk production State / Milk production

Region Mn T % share Rank Region Mn T % share Rank

UP 18.9 18.0% 1 AP 8.9 8.5% 4

Raj. 9.5 9.1% 2 TN 5.6 5.3% 9

Pun. 9.3 8.9% 3 Kar. 4.2 4.1% 11

Har. 5.4 5.2% 10 Ker. 2.3 2.2% 13

North : 4 43.1 41.1% South :4 21.0 20.0%

Guj. 7.9 7.6% 5 Bih. 5.8 5.5% 8

Mah. 7.2 6.9% 6 WB 4.1 3.9% 12

MP 6.6 6.3% 7 Ori. 1.6 1.6% 14

West : 3 21.7 20.7% East : 3 11.5 11.0%16/1/200825 Aug 2007 2121

Current registered processing capacityCategory Plants

(number)Capacity

(million litres / day)

Cooperatives* 233 41

Private** 450 50

Total 683 91

*Includes government dairies

**There is no reporting of actual capacities on ground and capacity-utilisation

Women Empowerment

Enhancing coverage for increased milk handling

by the organised sector

Enhancing milk production through better productivity

(focus on breeding and nutrition)

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SET STANDARDSEVALUATE PERIODICALLY

CERTIFY PROGRAMME

Main components for success in breeding

• Produce high genetic merit bulls through:

– Progeny testing – in partnership with farmers

– Pedigree selection (indigenous breeds)

– ONBS – using Embryo transfer

• Provide quality AI service by:

• Animal identification

• Maintaining effective LN delivery system

• Using semen from certified Semen station –as per breeding policy

• Ensuring hygiene & protocol

• Reducing number of AIs per conception

• Providing advisory services & inputs

Breeding policy

Maintain a live computerized database, use information to improve

SET STANDARDSEVALUATE PERIODICALLY

CERTIFY STATION

SET STANDARDSREGISTER PROVIDER

EVALUATE PERIODICALLY

Produce quality semen by:

Using only high genetic merit bulls free from disease

Adhering to standards laid down

Complying with bio-security measures

Area Officers

NDDB’s Nutrition Lab.

HO AI Service Provider

Regional Manager

Programme Cordinator

District Coordinator

National Analytical Lab.

AI Delivery Module PT Module

Laboratories

Nutrition Module

Internet

PDA

Mobile

Central server

Communi-CationMedia

Synchronisation GSM/GPRS

AI Technicians

Desktops

Disease Diagnostic Lab.

Milk Recorders Resource Persons Veterinarians

Farmers

• Registration• AI• PD• Calving• Other Services

• Yield measurement• Milk Sample Collection

• RB Individual Animal• RB Group of Animals• Feed &Fodder sample collection

Farmers

• Treatment• Diagnosis• Testing• Outbreak• Other services

NDDB Network Overview

Supervisors

Veterinary Module

1. Data entry2. Data validation3. Updation4. Local output5. SynchronizationSMS

–Alert Messages

Routine performance reports

Analytical reports Breeding value estimation

Projected scenario - with NDP – by 2021-22

No Unit 2007-08 2021-22

1 Daily rural milk productionMillion kg/day 280 470

2Share of organized sector in marketable surplus

Million kg/day 50 160

3Share of the organized sector as a proportion of milk sold by rural producers

% 30 65

4 Share of the un-organized sectorMillion kg/day 90 85

5Share of the un-organized sector as a proportion of milk sold by rural producers

% 70 35

National Dairy Plan – in conclusion

• Will raise national milk production from 105 million tons in 07-08 to

200-210 million tons by 2021-22

• Take per capita daily availability from 252 (07-08) to over 350 grams

by 2021-22

• Increase the coverage of milk producers through the cooperative

strategy from 13 million to about 19 million

• Raise income from milk production – while reducing risk

• Provide more on-farm employment as well as additional jobs in

procurement, processing, marketing and input supply activities

• Assure safe milk to consumers

Our Future in a decade

What can India do to Ethiopian Dairy

Add Value by sharing its knowledge of improving rural employment through dairying

World Bank Project - 2008

• A knowledge sharing initiative was launched in 2008 to apply lessons from India’s successful experience in developing its dairy sector to support growth of Tanzania’s and Uganda’s dairy industries.

• Participants were exposed to a range of new strategies for increasing milk and dairy product consumption and improving marketing and production practices.

• The improved understanding and subsequent adoption and adaptation of these key strategies are intended to improve food security, nutrition, and incomes in the poorest communities in these two countries.

What can India do to improve Ethiopian Dairy

• Enable the development of the dairy sector through improved approach to strategy, production, and cooperation

• Help in increasing local milk production and consumption.

• Do not reinvent the wheel..• Instead replicate Operation flood…

Opportunity exists

• There is a buoyant East-Africa regional market for milk and dairy products

• Ethiopia has good potential—as yet not fully developed—as producers as well as marketers

• Most off-farm sales are processed and marketed through a large and vibrant informal sector

• Milk is both cheap and readily available and producers have to realize to channel it to formal markets

• Formal sector’s processing enterprises are not geared• Imported products continue to dominate and affecting

the economy

Constraints in development of dairy value chains

• Lack of data for effective planning and management the value chain and the linkage

• Limited capacity and coverage of dairy producer, processor, and marketing cooperatives and associations

• Inability to cope with the seasonality of production• Low dairy product portfolio in the Food basket• Poor, rural, feeder road network • Non availability of Rural water supply

Expected short-term outputs out of co-operation

• Better co-operation among small milk producers• Introduction of improved or adapted technology at milk

collection points • Low cost Capex model for processors• Improved collaboration among producers and

processors; • Streamlining of regulatory requirements• Planned capacity building at the National Dairy Board

• Government and stakeholders have recognized the opportunities that the dairy sector provides

• Help achieve the Millennium Development Goals of reducing child and maternal mortality

• Help in increasing income for small rural households• Information exchange to gain improved understanding of

marketing and pricing strategies

Ethiopian Dairy – similar to India in 70’s

This is what Ethiopia needs.. A 5 year plan……

• Low cost Processing capacity• Improved feed / fodder• Improved Animal Health• Regulatory mechanism• Consumer awareness• Improve genetic composition• Create Information network• Empower women in Dairying• Short term credit for farmers

2011 - 122012 - 15

RURAL WATER SUPPLY IS THE KEY TO ETHIOPIA’S FUTURE

When will Ethiopia produce theseWhen you link your production to the markets ..

By creating the right infrastructure..