Indian Dairying National 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 Flood One 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 phases Phase 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 2008-09 108.5 258 Source: 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
14 Major States : Milk production – ’07-08 16/1/200825 Aug 2007 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%
Current registered processing capacity Category 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)
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     SET STANDARDS EVALUATE PERIODICALLY CERTIFY PROGRAMME Breeding policy Maintain a live computerized database, use information to improve  SET STANDARDS EVALUATE PERIODICALLY CERTIFY STATION SET STANDARDS REGISTER 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
NDDB’s Nutrition Lab. Nutrition Module Internet PDA Mobile Central  server Communi- Cation Media Synchronisation GSM/GPRS AI Technicians Desktops Disease Diagnostic  Lab. Milk  Recorders Resource  Persons Veterinarians Farmers Registration AI PD Calving Other Servi ces Yield  m easurement 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 Data entry Data validation Updation Local output Synchronization SMS  – Alert  Messages Routine  performance  reports Analytical reports  Breeding value estimation Area Officers HO AI Service Provider Regional Manager Programme Cordinator District Coordinator National Analytical Lab. AI Delivery Module PT Module Laboratories
Projected scenario - with NDP – by 2021-22 No Unit 2007-08 2021-22 1 Daily rural milk production Million kg/day 280 470 2 Share of organized sector in marketable surplus  Million kg/day 50 160 3 Share of the organized sector as a proportion of milk sold by rural producers % 30 65 4 Share of the un-organized sector Million kg/day 90 85 5 Share 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 - 12 2012 - 15 RURAL WATER SUPPLY IS THE KEY TO ETHIOPIA’S FUTURE
When will Ethiopia produce these When you link your production to the markets ..  By creating the right infrastructure..

Indian Dairying

  • 1.
    Indian Dairying NationalDairy Forum, Addis Ababa, Ethiopia, 23-24 November 2010 VB Reddy Dodla Dairy Limited
  • 2.
    We do notclaim a developed status.. We are developing …. And very fast.. In our own way..
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
    Farmer is keyand is treated so..
  • 8.
  • 9.
  • 10.
    We did thisfor the World
  • 11.
    We expect todo this soon..
  • 12.
    Indian Dairy Industryprogress 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
  • 13.
    Operation Flood Oneof 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.)
  • 14.
    Operation Flood -3 phases Phase 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.
  • 15.
    Outcome of OperationFlood 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.     
  • 16.
    Milk Production inIndia 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 2008-09 108.5 258 Source: Department of Animal Husbandry, Dairying & Fisheries, Ministry of Agriculture, GoI
  • 17.
  • 18.
    Current Perspective StrengtheningCooperative 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
  • 19.
    Why a NationalDairy 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
  • 20.
    Based on figuresfor 2008-09 (Provisional) of 108.5 million tons + Surplus handled by organised private sector is an estimate
  • 21.
    14 Major States: Milk production – ’07-08 16/1/200825 Aug 2007 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%
  • 22.
    Current registered processingcapacity Category 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
  • 23.
  • 24.
  • 25.
    Enhancing coverage forincreased milk handling by the organised sector
  • 26.
    Enhancing milk productionthrough better productivity (focus on breeding and nutrition)
  • 27.
    Main components forsuccess 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 SET STANDARDS EVALUATE PERIODICALLY CERTIFY PROGRAMME Breeding policy Maintain a live computerized database, use information to improve SET STANDARDS EVALUATE PERIODICALLY CERTIFY STATION SET STANDARDS REGISTER 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
  • 28.
    NDDB’s Nutrition Lab.Nutrition Module Internet PDA Mobile Central server Communi- Cation Media Synchronisation GSM/GPRS AI Technicians Desktops Disease Diagnostic Lab. Milk Recorders Resource Persons Veterinarians Farmers Registration AI PD Calving Other Servi ces Yield m easurement 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 Data entry Data validation Updation Local output Synchronization SMS – Alert Messages Routine performance reports Analytical reports Breeding value estimation Area Officers HO AI Service Provider Regional Manager Programme Cordinator District Coordinator National Analytical Lab. AI Delivery Module PT Module Laboratories
  • 29.
    Projected scenario -with NDP – by 2021-22 No Unit 2007-08 2021-22 1 Daily rural milk production Million kg/day 280 470 2 Share of organized sector in marketable surplus Million kg/day 50 160 3 Share of the organized sector as a proportion of milk sold by rural producers % 30 65 4 Share of the un-organized sector Million kg/day 90 85 5 Share of the un-organized sector as a proportion of milk sold by rural producers % 70 35
  • 30.
    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
  • 31.
    Our Future ina decade
  • 32.
    What can Indiado to Ethiopian Dairy Add Value by sharing its knowledge of improving rural employment through dairying
  • 33.
    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 .
  • 34.
    What can Indiado 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…
  • 35.
    Opportunity exists Thereis 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
  • 36.
    Constraints in developmentof 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
  • 37.
    Expected short-term outputsout 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
  • 38.
    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 - 12 2012 - 15 RURAL WATER SUPPLY IS THE KEY TO ETHIOPIA’S FUTURE
  • 39.
    When will Ethiopiaproduce these When you link your production to the markets .. By creating the right infrastructure..

Editor's Notes

  • #19 (488 lakh kilograms per day) of the marketable surplus in Operation Flood areas, constituting 80 per cent of the national milk produced (i.e. Quadruple liquid milk procurement by year 2020) more than 60 per cent of the market shares in metros, and on average of close to 50 per cent in the Class I cities served by cooperatives (i.e. Treble fluid milk marketing by year 2020)