S C AGGARWAL Tech. Advisor & Former AMD MILKFED PUNJAB

S C AGGARWAL Tech. Advisor & Former AMD MILKFED PUNJAB

Insight of Dairy Industry In India Particularly Cooperative Sector Dairying. Statistical data of Milkfed, Punjab. Deployment of Renewable Energy Etc in Dairy Industry. Few Photographs of Dairy Farms in Punjab. 21/11/2012 2

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Dairying in India is Pro-poor 75 percent of India s farmers are marginal or small. 100% 80% Farmers and Assets They own almost 60 percent of female bovines. But own only 30 percent of farm land 60% 40% 20% 0% 75 Farmers 56 Female Bovines 30 Land Large Medium Marginal + Small 21/11/2012 4

Land Holding Marginal < 1ha Small 1-2 ha Semi Med 2-4 ha Med 4-10 ha Large >10 ha Over all % 18.7 16.7 29.3 28 7.3 100 Income from Crops in % Income from Dairy in % 24.7 45.9 69.9 79.4 80.7 66.5 75.3 54.1 30.1 20.6 19.3 33.5 Livestock is concentrated in marginal and small holdings Contributes 50-75% of income in marginal and small holding 21/11/2012 5

Parameters Unit Punjab India Geographical area 000 Sq. Km 50.4 3163.9 Revenue Districts No. 20 606 Development blocks No. 141 3799 Inhabited villages No. 12278 593731 Cities (Class I to VI) No. 159 5179 Rural Households (2001-census) million 2.8 148.4 Rural Population (2001-census) million 16 742 Urban Population (2001-census) million 8 287 Average Land holding Hectares 4.03 0.73 Household holding < 1 ha of land % 12.3% 63% Gross Domestic Product Rs. in Billion 973 31229 Contribution of livestock sector in Gross Domestic Product Contribution of output from milk group towards livestock sector % % 11% 5% 87% 67% Per capita Income (2006-07) Rs. 30158 22533 21/11/2012 6

Punjab is a major producer of food crops with a high cropping intensity and significantly higher density of milk production The third largest milk producing state (2007-08) Milk production of 9.2 million tons (about 9% of country) Milk production per village is about 2050 KgPD (National average 491) Average milk production density of about 500 KgPD per square Km (National average is 92 ) Marketable surplus of 130 LKgPD Highest productivity (average yield of in-milk bovine population in KgPD) Buffaloes: 7.84 KgPD (national average is 4.46 KgPD) Cross bred: 9.04 KgPD (national average is 6.56 KgPD) Indigenous cow: 4.25 KgPD (national average is 2.1 KgPD) In Punjab, the number of rural households owning bovine animals is 2.6 million which corresponds to about 95% 21/11/2012 7

Adult female population: 43 Lakh Buffaloes: 33 lakh, Cross bred: 9 lakh and Indigenous cows: 1 lakh Between 1992 and 2003, adult female bovine declined by 1.05% In-milk bovine population: 31 lakh Buffaloes: 24 lakh, Cross bred: 6 lakh and Indigenous cows: 0.6 lakh Between 1992 and 2003, the proportion of in-milk animals to adult female bovine has increased from 63% to 72% Average yield: 8.02 KgPD Buffaloes: 7.84 KgPD, Cross bred: 9.04 KgPD and Indigenous cows: 4.25 KgPD Between 1997 and 2007, the average yield of in-milk (kg/day) animals has increased from 6.43 to 8.02 Milk production: 9.2 million tons per annum (252 LKgPD) Buffaloes: 191 Lakh KgPD, Cross bred: 58 Lakh KgPD and Indigenous cow: 2 Lakh KgPD Between 1997 and 2007, milk production has increased from 7.2 million tons to 9.2 million tons ( CAGR: 2.62%) 21/11/2012 8

Daily rural milk production 252 lakh kg/ day Milk consumed/ used in the villages itself 122 lakh kg/day ~ 49% Surplus milk sold by rural producers 130 lakh kg/day ~ 51% Surplus handled by Unorganised Sector Organised Sector (Coop + Private + ) 106 lakh kg/ day 24 (9 +15) lakh kg/ day ~ 82% of surplus ~ 18% of surplus + data for organised private sector is estimated 21/11/2012 9

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To bring prosperity to Milk Producers in state through efficient marketing To provide hygienic and affordable milk and milk products to consumers To ensure viability of Milk Unions by always striving to modernise, innovate and upgrade 21/11/2012 11

In market share it is small, but it is crucial for the milk producers Mainly because MILKFED price becomes a benchmark for organised and unorganised private sector, they have to announce a bit higher price In absence of coops, milk producers are going to be exploited by them It impacts all milk producers even if they are not selling milk to cooperative It provides critical input such as AI and health services and good quality cattle feed for its members 21/11/2012 12

Cooperative provides clean and hygienic milk and milk products at affordable price to consumers Maintains sufficient supply even during festivals or special occasions, in absence of coops one has to remain prepared for steep price increase on regular intervals. 21/11/2012 13

MILKFED Background MILKFED is a state level Apex Cooperative federation registered in 1973 Anand type 3 tier structure with Milk Producer Co-op Society at village level In 1983 4 Milk Plants of PDDC at Mohali, Ludhiana, Amritsar and Chandigarh merged with MILKFED 11 District Level Cooperative Milk Union with 10 Milk Plants Operates in 6000 Villages and cater to about 400000 Milk Producers. 300 BMC s installed and one MILK UNION at ROPAR 100 p.c. canless and MU Ludhiana going to be canless shortly. Handling capacity 1.725 million Kg per day Drying Capacity 1 million Kg/Day. Seven Milk Plants 21/11/2012 14

National Productivity Award to Mohali and Patiala Milk Plants in consecutive Years Verka Emerges as 2 nd Largest Milk Product exporter in the country after Amul. Union Commerce Minister awarded Bronze Medal (No Gold Medal awarded in this category) Verka Desi ghee is exported to 9 countries including UAE, Australia, New Zealand, Philippines, South Korea etc 21/11/2012 15

Dairy is significant contributor to Rural India For value added Milk & Milk products, Quality of Raw Milk is of Utmost importance for which cooling of milk at Society/village level is prime requirement. Lack of reliable & affordable Electric source is significant impediment. Likewise source of Hot Water Generation is impediment For dairy business to be competitive, deployment of RE, Energy conservation techniques and Energy Efficient Technologies are required in Dairy Industry.. 21/11/2012 16

Solar Photo Voltaic Cells for Electricity generation for Societies at First instance for BMC Societies for Refrigeration load & lighting Solar hot water generators for Village level societies for utensils cleaning and Boiler Feed water in Dairy Plants. In longer terms SPV electricity generation in Dairy Plants. Installation of Heat recovery system from Boiler Flue Gases. Installation of heat recovery system from Refrigeration condensers. Installation of Gobar(Bio) gas plants and use of Vapor Absorption Ref. system. 21/11/2012 17

During 1990 s Solar hot water system was installed for Boiler Feed water heating at Chandigarh dairy but had to dismantled due to poor performance& high maintenance cost. Efforts have been made to put up Solar water heating Systems at Milk plants Mohali and Chandigarh but could not do so due to subsidy and funds availability problems. Recently, we made efforts to put up Solar Electric Generation system at one of the plant but high cost of system and Very high cost of electricity generated ie Rs 11-Rs 12 per Unit as against State Grid electric supply rates of Rs 6.50 per unit were impediments. 21/11/2012 18

We have installed 4-5 Solar Water Heating Systems at Societies after getting grants from Govt. Of India. No. of Commercial Dairy Farms in Punjab has provision for Biogas plants but needs efficient infrastructure to produce electricity. 21/11/2012 19

To make Indian Dairy Industry capable of producing International quality Milk and Milk Products and considering availability of electricity in our villages and for protecting Environment, deployment of RE is must. This will be possible only by.. a) Awareness programs. b) By making RE cost effective. 21/11/2012 20

Besides we have to take effective steps towards Energy Conservation in Milk Processing Plants such as.. a) Use of cheaper &efficient fuels such as LPG,LNG, CNG etc. b) Use of Soft Starters, VFD s,energy efficient Motors. c) Replacement of energy inefficient Boilers & other equipments. d) Recycling of Water. e) Efficient Thermal Insulations in Dairy plants. 21/11/2012 21

Large & Modern Dairy Farms in Punjab HF is the preferred breed of choice. People have put up farm of almost pure breed 21/11/2012 22

A typical dairy shed of Hi Tech Dairy Farm 21/11/2012 23

Not a swimming pool but cooling required 21/11/2012 24

Silage saving for the rainy day Brings down cost of production substantially. MILKFED has launched a scheme to popularise this practice with Government Assistance 21/11/2012 25

Machine Milking reduces drudgery and improves Quality of Milk at the same time Particularly convenient for women 21/11/2012 26

Next step - Milking Parlor for larger farms 21/11/2012 27

Bio Gas improves return of capital and Quality of Life specially for Women and Children 21/11/2012 28

Integrated Farming raises income of farmer to unbelievable level 21/11/2012 29

A wise young matriculate earns 1-1.5 Lakh per month after all expenses- an inspiring story 21/11/2012 30

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