Dairy Times August September 2016 by Advance Info Media & Events

A Bi-Monthly Newspaper Devoted to Milk, Milk-Products & Allied Sectors

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For Milk Adulteration

Benagl, providing life term as the maximum punishment for adulteration. At present, most states prescribe a punishment of six months jail term and a fine. The bench added “it is also desirable that Union of India revisits the Food Safety and Standards Act, 2006 to revise the punishment for adulteration making it more deterrent in cases where the adulterant can have an adverse impact on health”. he Supreme Court has expressed serious concern favouring life imprisonment over the rampant adulteration of milk in the country. Court urging Central Government to amend the Indian Penal Code (IPC) to make the punishment deterrent for offenders also criticised the Food Safety and Standards Authority of India (FSSAI) for its failure to take effective measures to check adulteration.

Court was hearing a PIL filed by Swamy Achyutanand Tirth and others, highlighting the sale of adulterated and synthetic milk in different parts of the country.

A bench of Chief Justice of India T S Thakur and Justice R Banumathi maintained that it was high time that the Centre revisit the IPC as well as the Food Safety and Standards Act to make sure stringent penalties are provided under the law.

“For curbing milk adulteration, an appropriate state level committee headed by the Chief Secretary or the Secretary of Dairy Department and District level Committee headed by the concerned District Collector shall be constituted as is done in the state of Maharashtra to take the review of the work done to curb the milk adulteration in the district and in the state by the authorities,” directed the court.

It preferred the amendments made to Section 272 (adulteration of food and drinks) in the IPC by states such as Uttar Pradesh, Odisha and West

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SC Favours Life Imprisionment

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The court issued a slew of directives, asking the Centre and state governments to prosecute the offenders apart from putting in place a strong regime for checking adulteration of food and milk.

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Dairy industry in fear of

he Indian dairy industry demanded to keep the dairy sector outside the ambit of goods and services tax (GST) bill, passed in Rajya Sabha. Key players of Indian dairy feared that the enactment of GST bills will affect the dairy sector subjected to about 18 percent of GST which would make it economically unviable at the time when talks for doubling the farmer’s income through dairy also are advancing. “As most of the milk and milk products barring few product like butter, ice cream etc. are either tax free or attract VAT of 5-6% at present in most of the states, any GST rate above this will only makes the products more costly”, said Harsev Singh, CEO Reliance Dairy. While addressing a seminar organised by industry body PHD Chamber of Commerce Animal Husbandry Secretary Devendra Chaudhary did not comment on the industry demand to keep to the products outside the GST ambit. However he said taxation on dairy products could be rationalised via value-added activities of the milk produced as the industry pitches for excise duty cuts. Talking on the tax rate Prabhat Dairy M.D Vivek

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GST

CERTIFIED ISO 22000 NirmalANsaid that 18% tax is COMPANY surely too high. Considering that 65% of the Dairy market is unorganized, the rates have to be practically looked at. Most of the dairy products don’t have Excise duty, so a lesser slab should be made applicable to ensure the products remain reasonably priced for consumers.

“The rate of 18% on milk products will definitely have impact on the prices of the some of the essential g oods. We expect the rates to be lower than the st andard rate prescribed”, said Rajiv Mitra of Govind Milk. Speaking on the subject Kuldeep Sharma, Chief Thinking Of ficer Suruchi Consultants said that GST is that it should be waived off for all dairy skill and training related activities or must come under lowest available slot not more than 5 %. He said for milk, curd, lassi , Mawa and buttermilk GST must be exempted while for Paneer, cheese, butter,flavored milk, fermented milks , ice creams, SMP, sweets and ghee It must be at first level minimum slab. "The seminar recommended to the government that indigenous dairy sector be a part and parcel of the agri activities, its excise levy be rationalised and the sector should be kept outside purview of GST,” speakers said. (Read full story on pg no 18-19)

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5 Vol. 1, Issue 04 - August - September - 2016 A Bi-Monthly Newspaper Devoted to Milk, Milk-Products & Allied Sectors

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Vol. 01, Issue 04, August - September, 2016

JICA examining Rs 7,000 cr support to Indian dairy apan International Cooperation Agency (JICA) is examining a proposal of an amount of about Rs 7,000 crore for support to dairy cooperatives for upgradation and modernization dairy milk processing and chilling facilities," the government said. Animal Husbandary Secretary Devendra Chaudhry chaired a meeting comprising senior officials from IDBI, NABARD and NCDC for finding a way out for an estimated funding of Rs 10,000 crore or more in animal husbandary sector, including dairy

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and fisheries. Chaudhry said a number of funding agencies are to be identified for bridging the gap between usual plan resources and total fund requirement. The secretary said it is imperative that all the sectors of animal husbandry, including dairy and fisheries etc need to be promoted aggressively not only for better return but also for ensuring gainful employment and nutritional needs of the people. Chaudhry said the animal husbandry can be the effective tool for enhancing and doubling the income of the farmers. He underscored that an amount of Re 1 invested in animal husbandry activities provides return of Rs 3 whereas from the agriculture Re 0.7 is the return. "It was emphasised that the other agencies like NABARD, IDBI, NCDC can facilitate priority lending sector funding to the animal husbandry activities and on the beneficial terms to entrepreneurs including cooperatives and small and marginal farmers," the statement said.

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Dilip Rath takes over as NDDB chairman

ilip Rath took over as the chairman of National Dairy Development Board (NDDB) after T. Nanda Kumar, resigned before his five year term ended. The Department of Personnel and Training (DoPT), Government of India has given Dilip Rath, Managing Director of the NDDB an additional charge of Chairmanship till the regular appointment. Nanda Kumar had put in his resignation on June 29, which was accepted by the Appointments Committee of Cabinet on July 27, and he was relieved from duty on August 1. Rath took premature retirement from the Indian Administrative Service (IAS) to join NDDB as managing director in 2011. 1979 batch IAS,

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Rath served in different capacities under the state governments of West Bengal, Odisha and the Central Government. He was Joint Secretary in the Department of Animal Husbandry, Dairying and Fisheries, Government of India (GoI) from 2008 to 2010 and Director on the board of NDDB. As a mission director of the National Dairy Plan (NDP), Rath is involved in project conceptualisation and formulation of NDP. He was instrumental in implementing various schemes of the Central Government, viz., National Project on Cattle and Buffalo Breeding, Intensive Dairy Development Programme, Clean Milk Production, Assistance to Cooperatives, besides being the divisional head of 12 cattle development organizations under Central Government. He was chairman of the Delhi Milk Schemeâ&#x20AC;&#x2122;s management committee and was also responsible for monitoring countryâ&#x20AC;&#x2122;s milk situation in the context of inflation of essential commodities.

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PRICE LIST

Pricing Trends in Dairy Products: 2016 Domestic milk and milk Products Price:

International milk and milk Products Price:

Source : USDA

Source : Market Watch

Source : USDA

Source : Market Watch

Source : USDA

Source : Market Watch

Source : USDA

DuPont Delivers Great Taste Along With Convenience

olutions for fresh and healthful local Indian staple in new concept DuPont Nutrition & Health sets a new direction for India’s flat bread market with the launch of its array of solutions for Indian rotis in packaged format. The new concept of ‘packaged roti’ is inspired from the growing need for convenience food by the Indian household. Rich in healthy carbs from whole wheat grain, the concept targets consumers who are turning their back on traditional homemade rotis and demand for a semi-cooked or ready-to-eat format with home cooked freshness and taste. Renovating to meet consumer trends “Indian flat bread, popularly known as roti is an integral part of the Indian diet. A majority of them are made at home with a very limited shelf-life. But in this fast paced world and changing consumer trends, there is an increased need to change the

way rotis are made. "At DuPont Nutrition & Health we have put in years of research to develop products that would transform the way rotis are produced, consumed and distributed.” commented Parth Patel, Business Head, South Asia, DuPont Nutrition & Health. “Roti is an essential part of our diet and our aim is to extend the reach of this product across India; keeping intact the freshness and textural attributes closer to a homemade roti. We are committed to providing innovative solutions to the local Indian food palate and therefore will continue to explore all possible opportunities to add value to this segment.” says Sunil Nair, Senior Application Specialist, DuPont Nutrition & Health. Innovative research to deliver supreme quality and taste Recent scientific studies at the company’s largest research and development center for food

ingredients in Brabrand, Denmark, have explored fundamental mechanisms and flour components that contribute to flat bread quality. The findings shed new light on the effects of functional ingredients in roti recipes including soy proteins. Keeping this in mind, DuPont Nutrition & Health scientists have developed a versatile range of fresh-keeping solutions to improve softness, taste and shelf-life of this Indian staple. The range comprising DuPont Danisco bakery enzymes, emulsifiers and hydrocolloids enables manufacturers to improve textural properties of ready-to-eat flat breads. The result is having rotis with a stay-fresh feel, lasting flexibility and no dry edges. Consumers can now enjoy their meals with rotis, ready to be folded and rolled without cracking even after weeks on the shelf. To cater to the needs of the larger Indian population who are vegetarians, manufacturers also have the flexibility

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to improve the nutritional profile by fortifying rotis with DuPon Danisco range of functional soy protein without compromising on the taste. DuPont Danisco is the brand for a range of products that help provide enhanced bioprotection, an improved nutritional profile, and better taste and texture with greater cost efficiency and lower environmental impact, meeting the needs of manufacturers of food and beverages, dietary supplements and pet food. Through the work of the global network of food scientists and technologists in DuPont, the Danisco range is supported by a uniquely broad spectrum of knowhow across applications and processing. DuPont Nutrition & Health combines in-depth knowledge of food and nutrition with current research and expert science to deliver unmatched value to the food, beverage and dietary supplement industries.

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NEWS

Russia signs NDDB Chairman Resigned export protocol with India

fter a long uncertainty for the Indian dairy industry, Russia has finally signed the protocol which will allow exports of dairy products from India to begin but on condition that the dairies collect milk directly from producers and not from collection centres. “The Russian agency for ensuring food quality and safety, Federal Service for Veterinary and Phytosanitary Surveillance (FSVPS), signed the protocol and will upload on its website the names of the dairies that meet the strict conditions laid down by it to qualify for exports”. Parag Milk Foods and Shreiber Dynamix Diaries were the first two plants that were approved by the FSVPS last year in April, when Russia was insisting that dairies should have their captive cattle farms with at least 1,000 cattle to qualify for exports. With Russia continuing its ban on import of food items from Western countries, including the European Union, India has been eyeing for the $40-billion market for food and agricultural items, which includes dairy products.

ational Dairy

premium quality, they would hopefully be open to exports from more companies,” said Devendra Shah, Chairman & Managing Director, Parag Milk Foods. India, however, had not signed the export protocol at that time as it wanted the requirement for a captive cattle farm to be dropped from the list of mandatory requirements as most dairy companies in India — including Amul — do not have such farms. Russia finally agreed to drop the captive farm condition earlier this year, but decided to retain the one requiring exporters to collect milk directly from farms and not from collection centres. “The Export Inspection Council has given a detailed brief to FSVPS on the veterinary inspection process followed by dairies in the country to ensure that cows are disease-free. On the basis of this information and the field inspection it carried out in the country, the Indian dairies would be selected,” the official said.

Although only a handful of dairy plants may meet the given norms to begin with, the Indian dairy industry is hopeful that soon Russia will start sourcing from other companies as well when it is satisfied by the high quality of Indian products.

step down from the position of Chairman, Board of Governors, IRMA and Anandalaya Education Society.

Development Board chairman (NDDB) T. Nanda Kumar has resigned with 30 months left for his tenure to end. Nanda Kumar is learnt to have submitted his resignation on June 29, which was accepted by the Appointments Committee of Cabine. He was relieved from duty from August 1. Managing director Dilip Rath has been given additional charge of the post until a new chairman is appointed. According to the sources, former Amul Managing Director BM Vyas and Shankar Chaudhary, chairman of Banas Dairy, are the likely contenders may be replacement of Nanda Kumar. Following his resignation, Nanda Kumar will also step down from the posts of Chairman of the Board of Directors of Mother Dairy, Indian Immunological Ltd., and IDMC Ltd. He will also

Nanda Kumar, a former agriculture secretary, took over the charge at NDDB in March 2014, succeeding Amrita Patel. The 65-year-old former IAS officer belonging to the Bihar-Jharkhand cadre was the first bureaucrat to be appointed as the NDDB chief. In a farewell email sent to NDDB employees, he hinted at the reason for his mid-term exit from the apex dairy institution. “There comes a time in everyone’s life when one’s value system comes into serious conflict with the external environment. A point of no compromise becomes a point of no return. I have gone through such situations many times before. The dilemma is: should one allow such conflicts to affect an institution?” “I have always believed that institutions are important, personalities should not matter beyond a point. I have reached such a point,” Kumar said.

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“We are ready to meet all conditions laid down by the Russians. We just want them to give us an opportunity to begin exporting. Once they realise that our items, such as hard cheese, are of

Madhav Sahakari is new Chairman of Goa Dairy

adhav Sahakari took charge as Goa Dairy Chairman after the former chairman Baburao Fatto Desai was outset by a no trust motion on July 6. Sahakari is now the fourth chairman in a row of the current term of the managing board. Shrikant Naik was the first and held the post for 21 months. Vithoba Desai, the second in the post, lasted for about a year, and Baburao, the third chairman, could hold the post for just around nine months.

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In the last general elections to the board of directors on January 15, 2012, Sahakari’s panel lost to Shrikant Naik's 'Goa Dairy Bachao' panel. Naik's panel won seven seats while Sahakari's panel managed to bag just five. Talking to newsmen Madhav said he will a short term to work and during this stint he has three goals boosting the trust among local milking farmers, providing a reasonable rate for the milk supplied by the farmers and providing better quality fodder to them.

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NEWS

Govt. to attract more FDI in dairy sector

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iming to double farmers' income in the next few years, the Centre is chalking out a national action plan to attract more foreign investment in the dairy sector. The Department of Animal

Husbandry under the aegis of Agriculture Ministry is holding a series of discussion with private players in this regard. The plan is to increase foreign investment in the dairy sector in the next five years from the current level of around Rs 141 crore. The government of India has targeted Rs 100,000

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crore investments in the dairy industry from private players in the next few years including foreign direct investment (FDI). According to official sources just around Rs 114 crore FDI has come into the dairy sector between 2010 and 2016. The Central government is looking at the private sector and foreign majors like Danone to increase their investment in India. It is seeking investment in milk processing, marketing and infrastructure like chillers. Animal husbandry secretary Devendra Chaudhary told “We have initiated discussions with the World Bank and the Japan International Cooperation Agency for increasing their investments in the dairy and animal husbandry sector and will intensify our engagement with them”. Officials said with the help of FDI and other investments, the share of the organised sector in India’s annual milk production would be enhanced. This will also help in effective transfer of technology. India, despite being a major milk producer, has a limited share in the world export market. Private investment, particularly FDI, can push this up. The move has gathered added impetus after the Centre relaxed norms for FDI in animal husbandry by allowing research in non-controlled conditions as well. The wider objective of encouraging private players to invest in the dairy industry is to gradually lower the role of the unorganised sector in India’s milk production. Of the country’s total milk production of around 160 million tonnes, 48 per cent is sold in the market. Of this, around 20 per cent is supplied by the organised sector, which includes both the private sector and cooperatives, while the rest comes from the unorganised sector. The organised sector operates on low margins and usually purchases milk from farmers at low prices.

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NDDB to take up Yavatmal milk society

aharashtra Chief Minister Devendra Fadnavis announced to engage the National Dairy Development Board (NDDB) for scaling up dairy operations in Yavatmal district. The decision was taken during a meeting between the officilas of the chilling plant at Pusad and representatives from NDDB. Under the deal, the state-owned milk cooling and processing centre at Pusad would be handed over to NDDB to collect and market Amul milk in the district. This is the first instance of NDDB being asked to take up responsibility of any district milk society. Dairy Development and Fisheries Minister Mahadeo Jankar, Minister of State for Food and Drug Administration Madan Yerwar, department Secretary Bijay Kumar; Dairy Development Commissioner RG Kulkarni and and Amul Dairy's Vidarbha head AK Kulkarni and other NDDB officials were present at the meeting. The government dairy at Nagpur has already been given to the NDDB subsidiary for modernisation and refurbishing and work is likely to be completed by year end. Once the new machinery is in place, the unit will be run by the NDDB arm. With addition of Yavatmal, which is epicentre of farmers suicide, dairy business is expected to get a boost by providing extra income opportunity for farmers.

Center to set Steering Committee for Fodder

Development

o deal with the issues related to Feed and Fodder Development in the country, Central government has decided to constitute a National Steering Committee on fodder development, to be headed by the Secretary, Department of Animal Husbandry, Dairying and Fisheries, Ministry of Agriculture & Farmers Welfare and a Technical Committee headed by the Director, National Institute of Animal Nutrition and Physiology (NIANP), Bengaluru. The decision was taken in a review meeting held by Secretary (ADF) Devendra Chaudhry, with the NIANP Bengaluru, Indian Grassland and Fodder Research Institute, Jhansi, National Dairy Development Board, Anand and ICAR. The issues of increasing the nutritious fodder within the available resources were also discussed at length.

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NEWS

Global FMCG firms eye ‘creamy layer’ to boost margins

ith co-operatives still largely dominating the India dairy segment, international players are focusing on launching niche and premium value-added dairy products, to meet the needs of the evolving Indian consumer. These products will help companies create a differentiator as well as drive up margins, experts said. For instance, Danone India has launched its readyto-eat custard across cities such as Delhi-NCR, Chandigarh, Mumbai, Bengaluru, Kolkata and Chennai in both 1 litre packs and 200 ml single serve format. The company said the launch was backed by

Amul to set its facility in Pune and Kolkata

iming to increase its production Amul Dairy will set up two new plants at Pune and Kolkata with an investment of Rs 320 crore. The Pune plant will have six lakh litres per day (LLPD) capacity, the Kolkata plant will process 15 lakh litres of milk per day.

research that showed that hectic lifestyles and achieving the perfect texture and the consistency were key challenges for consumers to be able to prepare the dish at home. Manjari Upadhye, Country Manager for Dairy Business at Danone India said, “Evolving lifestyles, growing health awareness and rising affluence of middle-class has led to changing dietary habits. Consumers are looking for healthier yet pleasurable food options such as value added dairy, and that is where Danone's dairy portfolio lies.” Greek yoghurt segment “The dairy market in India is all primed up for innovation and we intend to introduce new dairy products, which will be according to Indian tastes, and will be developed in response to Indian nutritional requirements, using natural ingredients,” she said, adding the company’s past innovations include chocolate smoothie, flavoured yoghurts and flavoured lassi. Nestle India too, is making efforts to introduce Indian consumers to the internationally known Greek yoghurt segment with its product ‘Nestle a+

Grekyo’. Launched in several variants such as strawberry, mango, pineapple and orange, the company said that these were specifically tailored for the Indian consumer. A Nestle India spokesperson said, “Globally, the Greek yoghurt category came into prominence less than a decade back, and in certain countries, it has already captured a major share of the entire yoghurt market. In India, this category is still at a nascent stage but we are confident that Nestlé will lead the global trend for the Indian consumers soon.” It was initially launched in Delhi-NCR and distribution will be expanded to other major cities soon. Value-added products Experts said that international companies are expected to increasingly tap into their global portfolios to bring in more such value-added dairy products. Angshuman Bhattacharya, MD, Alvarez & Marsal India pointed out that value-added dairy products

On the 70th annual general board meeting held in Anand Amul Dairy's managing director Dr K Rathnam said that we already have a small plant at Pune but we are going to set up a new plant with six LLPD capacity which will include one LLPD capacity to manufacture ice cream. After the two new plants, Amul Dairy's processing capacity will reach 50 LLPD. It already has 13 plants at Anand, Mogar, Khatraj, Kanjari, Kapadvanj in Gujarat apart from those at Virar, Pune, Kolkata, Punjab, Siliguri and one in United States. Land at Khed City which is being jointly promoted by the Maharashtra Industrial Development Corporation and Kalyani Group has been finalized for the Pune plant. "We have got 11 acres land to construct the dairy plant which should be ready in 12 to 18 months' time," said Rathnam, adding that the plant will require investment of Rs 120 crore. At Kolkata, Amul processes milk and make dairy products at three plants through third party operations. There the union will set up 15 LLPD complete dairy plant which will have capacity to manufacture ice cream and fermented milk products. “We have taken land from West Bengal Industrial Corporation for setting up this plant at Kolkata which will require Rs 200 crore investment and should be ready in next 16 to 18 months," he said. Addressing the AGM at Sardar Patel Hall, Amul Dairy's chairman Ramsinh Parmar also said that the dairy will expand its operations further to Guwahati and Jamshedpur. Applauding the hard work of producer members in procuring more than 71 crore kilograms of milk during the year, he informed the gathering that the dairy had achieved Rs 4,825 crore annual turnover during the last financial year which is an increase of 17 % compared to last year.

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segment has been witnessing a phenomenal growth of 25-35 per cent as consumers are gradually shifting from the unorganised to the organised segment. He said the value-added dairy segment is poised to continue seeing fast-paced growth for the next few years with introduction of new innovations. “Introduction of niche and premium products will help international companies create a differentiator and help create stronger brand salience as well as cut the clutter. Private players, especially international companies, are also expected to tap into their global portfolios to bring in these products,” he said. These niche segments may not become large segments on their own, but will play a key role as companies are working to meet the needs of the evolving Indian consumers, believe experts. “Dairy sector traditionally has been operating on low margins. So, private players will also introduce innovative products which will focus on higher margins,” Bhattacharya added.

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NEWS

Patanjali to foray into dairy products

iming a total turnover of Rs, 10000 crore by next year Patanjali will come out with more dairy products like liquid milk. The Yoga Guru company will extend its productivity with cattle feed without any urea. Speaking to newsmen in Chandigarh Yoga Guru Ramdev said that Patanjali will soon launch more dairy products, cattle feed and natural manure. “We will come out with more dairy products like liquid milk. We shall set up 3-4 dairy projects so that farmers can be empowered and people get commodities unadulterated,” Ramdev said.

Global dairy players unsure to enter Indian market

in the country. Patanjali Group would also roll out natural manure which shall contain micro nutrients, vitamins etc for crops, he added. With Patanjali mustard oil advertisement campaign coming under fire recently, Ramdev said the advertisement has been stopped. “We just had said that oil made through chemical process is unhealthy for people and our Kacchi Ghani oil was made without any chemical process and it is a healthy product,” he said

He said the Patanjali Group would focus on six sectors natural medicine, natural food, natural cosmetics, dairy products, cattle feed and natural manure in a big way. “We will reach a total turnover of Rs 10,000 crore next year,” he said.

Talking to newsmen he said that Patanjali does not intend to take over any domestic brand.“We are not taking over any brand like Zandu, Dabur, and Hamdard etc. We want these companies should grow and these domestic companies should not fight with each other. Rather they should fight against other international (FMCG) companies,” he claimed.

Ramdev said that he had seen feed being given to cattle contains 1-4 per cent urea which made adverse impact on more than 50 per cent of bovine

Ramdev said that more than 250 products including flour, medicine, rice are sold on ‘no-profit no loss’ which helps during rising prices of essential items.

Michigan University honoures Father of White Revolution

S-based Michigan State University honoured Father of India's White Revolution late Dr Verghese Kurien by installing his bust in the lobby of the International Centre on the campus. On the occasion Nirmala Kurien daughter of Dr. Kurien said "It is always an honour when your alma mater recognizes you,” In his entire lifetime, my father had received 15 honorary doctorates from across the world but he had got his first honorary doctorate from Michigan State University - East Lansing in presence of his own teacher professor Farrell in 1965. The university has always recognized his contributions," said Nirmala. According to MSU, no graduate from the college of engineering, or may be even the MSU has transformed more lives than Kurien. “MSU treats Kurien as an excellent example of Spartan's will,” he said. Patricia Mroczek, Communications Manager, MSU in an email stated that the bust dedication ceremony received positive response from the US citizens on the MSU website and social media. The college of engineering’s Facebook site had 9,425 views in a few days and the College of Engineering Twitter handle a 13,259 views. Praising his alma mater, Kurien had once said that Michigan State University had given him "the best

"Globally, non-milking cattle go to slaughter house, which is not the case in India. So it's a big challenge for global dairy companies that want to enter the Indian market," said Kuldeep Saluja, managing director at Sterling Agro Industries Ltd, maker of Nova brand of dairy products. "Not being allowed to slaughter certain cattle is a huge drawback in India for global dairies," he said. In international markets unproductive cattle, most of which are cows, after being in dairies for 14-15 years, go to slaughter houses. A company expects 50-60 per cent return on investment on sale of each cow. Saluja said 95 per cent of the cattle used in commercial dairy farming globally are cows and not buffaloes, unlike India. Hence, he said, the country is not lucrative for companies to attract FDI in animal husbandry sector. In the past few years, global dairy firms such as Fonterra of New Zealand, French cheese maker Fromageries Bel, Denmark's Arla, Dutch dairy cooperative Friesland Campina, Mexico's Grupo Lala, and Germany's Hochland Group have

(Mallikarjuna D.V presents a bust of Dr. Kurien to Satish Upda, MSU executive vice president)

education money could buy." Born in Kozhikode, Kurien had graduated in science from Loyola College in Chennai and obtained his degree in engineering from the Guindy College after which he completed his masters' degree in mechanical engineering with dairy engineering as a minor subject from the US-based varsity in 1948. Upon his return to India, he was assigned to a Government Creamery located at Anand to serve his bond period. But at the end of 1949, when he got release orders from his job from the Government Creamery and as he was all set and eager to pack off to Mumbai, the then chairman of Amul Dairy Tribhuvandas Patel had requested him to stay in Anand and help him put his co-operative society's dairy equipment together and rest is history.

NDDB to develop dairy in Vidarbha he National Dairy Development board along with Maharashtra government has planned dairy development in the drought affected Vidarbha region. After the intervention of union minister Nitin Gadkari, Maharashtra government sanctioned Rs 300 crore for the period of next three years for the project which will kick off in October this year. While on the other hand Mother Dairy, a subsidiary of NDDB, will invest around Rs 60 crore to refurbish the Nagpur Dairy plant which has been handed over by Maharashtra government to NDDB. NDDB will install bulk milk coolers, automatic milk testing equipments and set up marketing infrastructure in the region. Frequent crop failures and rising debt burdens have led to several incidences of farmer suicides in this region. Talking to news persons NDDB's chairman

hough the Central Government has made its way clear for 100 per cent FDI (Foreign Direct Investment) in animal husbandry pisciculture, aquaculture and apiculture under automatic route; the restrictions and controversies over cow slaughter could be a hurdle for the policy initiative to attract foreign investment. Industry executives feel global dairy giants may be reluctant to come in because of the blanket ban on cow slaughter.

T Dilip Rath said “Our first task would be to repair and refurbish the Nagpur plant which is presently closed,". However he accepted the lack of resources in the region will be a challenge for cattle enough feed and fodder."We would be starting milk procurement with 10,000 litres per day which eventually can reach to 50,000 litres per day in a year's time. The region has potential of at least one lakh litres milk per day," he said. NDDB and its subsidiaries will implement a fair and transparent milk procurement system and create a farmer producer organisation once the system becomes self-sustainable. The budget sanctioned by Maharashtra government will be used for doorstep artificial insemination services, ration balancing services, supply of feed and feed supplements, fodder development activities, village level animal health services and animal induction.

scouted the Indian market for opportunities to set up own units or to partner with local players. Promoter of a leading national private dairy company from South India who requested not to be identified said globally dairies would get 50 per cent-60 per cent of the cost they paid for the cattle by selling to slaughter house. In India, dairy companies send old and unproductive cattle to a gaushala or sell them to small farmers at a much lower rate, he said. "Any investment beneficial to Indian farmers and dairy industry will be good," said RS Sodhi, managing director at Gujarat Cooperative Milk Marketing Federation (GCMMF) that owns the country's top dairy brand Amul. "I am studying on the FDI in animal husbandry issue and a better picture will emerge in the coming days," he said. Similarly, Pritam Shah, MD at Parag Milk Food that sells 'Go Cheese' cheese brand, said 100 per cent FDI in the sector will boost investment flow in the sector. "There will be expansion in dairy products category and we might see more varieties of baby food or cheese products," he said. Significant investments have been made by global dairy majors like Schreiber (US) with Dynamix Dairy (Maharashtra) Lactalis with Tirumala Dairy, Britannia, Nestle and Danone among others in India. As per FDI Policy 2016, the government has done away with the requirement of 'controlled conditions' for 100 per cent FDI in animal husbandry.

Indian dairy farmers fared better than their global counterparts in FY15-16

ndian dairy farmers were a lucky lot in 2015-16. While farm prices of milk dropped worldwide with farmers in leading countries like New Zealand and Australia getting 20-60% lesser on an average, the Indian dairy farmer got more than the previous fiscal. In some states like Maharashtra, prices had fallen from Rs 25 per kg to around Rs 18 per kg. However, in some others like Gujarat, prices grew by 10% year-on-year. Gujarat's leading dairy cooperative, the Gujarat Cooperative Milk Marketing Federation (GCMMF), which owns the brand Amul, is paying Rs 580-600 per kg fat to its farmers at the moment. The dairy gaint procures close to 16.2 million litres of milk per day. On the whole, average farm prices in India have grown for dairy farmers. As data from the National Dairy Development Board pointed out that average farm prices across India grew from Rs 25.73 per kg in FY15 to Rs 26.3 per kg in FY16. Even private dairy players like Parag Milk Foods in drought-hit Maharashtra said that the fall in prices was for a brief period, and procurement prices are ruling around Rs 24 per kg at the moment. NDDB official said that prices have only dipped in states like Maharashtra and Uttar Pradesh which have many private dairies and a loose milk market. In states where cooperatives have a stronghold, farmers continued to get better prices. "In fact, wherever cooperatives have been active, farmers could sail through drought, banking on additional income from dairy," said a senior NDDB official. RS Sodhi, managing director of the GCMMF, said: "Farmers in Gujarat have been getting 10%

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more at least for their milk, whereas the situation globally is quite bad. Farmers are getting lesser farm prices in the range of 20-60%. The situation is particularly bad in New Zealand." Earlier in May, Australia's largest dairy processor Murray Goulburn had announced that it would cut the price it pays its farmer suppliers from $5.6 per kg of milk solids to $4.75-5 per kg. As per reports in international media, Murray Goulburn's main rival, New Zealand’s dairy processor Fonterra, too, cut prices to its Australian suppliers from $5.60 per kilogram of milk solids to $5. Another processor, Lion Dairy and Drinks, too, has cut prices in Tasmania, South Australia and some other regions. Media reports have suggested that Murray Goulburn farmer suppliers have said the retrospective price cut cost them two year’s worth of income. Milk production is likely to fall by 2% this season in Australia, and a further 2-5% next season as farmer confidence levels are low. Milk production this year is expected to be to 9.55 billion litres, 2% less than in 2014-15, and way down from the 2000 peak of nearly 11 billion litres. Analysts feel increasing production by major exporters like the US and the EU will slow down recovery in the global market. Global skimmed milk powder (SMP) prices are ruling around Rs 120-130 per kg, which is lower than the domestic SMP price in India.

13 Vol. 1, Issue 04 - August - September - 2016

Freshmen’s Valley to distend nationwide

o cover the area of Western Uttar Pradesh and Uttarakhand, Transpole group, a logistics company, jumping in with a premium milk brand Freshmen’s Valley kicked off operations from its new milk processing plant in Anandpur block of Sambhal district, Uttar Pradesh near Moradabad. Company’s pouch-packed milk in five variants – standard, toned, doubled toned, full cream and skimmed – will be distributed in Uttarakhand and western UP (from Moradabad to Ghaziabad).

NEWS

NDDB to establish bovine breeding centre in Hyderabad

he National Dairy Development Board (NDDB) is setting up a Centre for Advancement of Bovine Breeding in Hyderabad. The 'bhoomi pujan' for the centre was performed by NDDB chairman Dilip Rath. An exclusive centre for ‘Advancement of Bovine Breeding’ in the city, will work for applied research and training. On the occasion Dilip Rath, Chairman, NDDB said that with focused efforts on providing quality breeding and enabling producers to improve the productivity of their animals, it is possible to reduce the cost of production and enhance the incomes of milk producers. The centre will have integrated facilities of laboratory, animal sheds and training centre. It will take up research and

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Apart from fresh milk, Freshmen’s Valley which has started with a modest investment of Rs.50 crore will also be introducing value-added products such as paneer, ghee, yoghurt, buttermilk, and flavoured milk. Anant Choudhary, CEO of Transpole group is aiming to take his brand nationwide. Speaking at the launch he said that liquid milk is a tough business to be in, given the challenges in procurement, processing and distribution of this perishable commodity. Where heavyweights fear to tread thereafter, the brand tagline “your backyard dairy” and priced slightly higher than mass brands like Amul he plans to expand into Noida and Delhi before eventually going national. Answering to newspersons Choudhary said that it was deliberately chosen to give an international flavour as were the look and feel of the creative made by Lowe Lintas. “Logistics is the core of the milk business. That’s why we have ventured into it with confidence,” says Choudhary. He feels dairy despite being crowded has enough headroom for growth as there is a gap in quality as well as packaging. “Research showed us that milk is one of the most adulterated products in India and if we could guarantee quality we could make an impact,” he says. Freshmen’s Valley will also be investing in ESL (Extended Shelf Life) packaging which is disrupting the milk category and helping new brands to muscle in. On a question of adulteration check Choudhary said that he is allocating a lot of his capex into testing equipment and facilities to check milk at the procurement stage. Also the milk trucks are equipped with GPS and camera sensors that send alerts of abnormal activities. Freshmen’s Valley is tapping 50,000 farmers in the region and hopes to wean them away from rivals by offering competitive rates (Rs 72 to Rs. 85 per litre are procurement rates depending on fat content) and investing in CSR activities. Three chilling centres have been set up that will cover 10 villages each. The UP government recently launched a slew of schemes – including the Kamdhenu scheme for small farmers - to incentivise the dairy sector, which Choudhary feels will benefit his start up. At 23 million tonnes, UP is the largest producer of milk in the country accounting for 17 per cent of the country’s production.

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14 Vol. 1, Issue 04 - August - September - 2016

NEWS

Mother Dairy launches Cow Milk for toddlers

NDRI has made the nation richer through the human resource development: Governor

14th Convocation of National Dairy Research Institute, Karnal

of such people and make the livestock profession more attractive. Dr. A. K. Srivastava, Director & Vice Chancellor, NDRI presented the progress report on the significant

rof. Kaptan Singh Solanki, Governor, Haryana said that NDRI has made the nation richer through the human resource development and training the young minds. He was speaking at the 14th Convocation organized by National Dairy Research Institute (NDRI), Karnal. Dr. Jimmy Smith, Director General, International Livestock Research Institute (ILRI), Kenya while delivering the convocation address, congratulated the students for their hard earned degrees and distinctions for their academic excellence. He also called upon all the degree recipients not to be complacent, as having a degree from NDRI will put more responsibility on their shoulders. He expressed his concern that by 2050, producing sufficient quantity and quality of food for over 9 billion people represents a huge challenge. Livestock plays a very important role in livelihood and nutritional security. Globally, animal agriculture accounts for 40% of farm GDP. He stressed that primarily livestock is with smallholders and research efforts should be focused towards the mitigation of drudgery from the lives

achievements made by the Institute during the past year. He informed that NDRI has started two new Master's Programmes in Food Science & Nutrition and Food Safety & Quality Assurance. Degrees were awarded to 90 Ph.D., 111 Masters and 30 B.Tech. Students on this occasion, Dr. A. K. Srivastava, presented Gold Medals for Best Thesis Research Work during Ph.D. in the Production, Processing and Management Group to the winners. On this occasion, Governor also presented the NDRI best teacher awards for PG & UG categories to Dr. Suman Kapila, and Dr. Pradeep Bahare, respectively. For overall contribution in research and teaching by the faculty, Dairy Chemistry Division and Dairy Technology Division were adjudged as Best Divisions. Dr. A. K. Singh. Principal Scientist, Dairy Technology Division received the Dr. S. K. Sirohi Memorial Award for his contribution in the research. The other dignitaries included Dr. Rahman, Deputy Director General (Animal Science), ICAR; Dr. N. S. Rathore, Deputy Director General (Education), ICAR and Dr. R. K. Malik Joint Director (Research).

CavinKare launches 'first' ready to serve fruit milkshake

MCG major CavinKare has launched India's 'first' ready to serve fruit milkshake.

CavinKare is the first company to foray into this segment, company CMD CK Ranganathan told here. "We are the first to enter the fruit milkshake segment," Ranganathan said.

CavinKare is already present in the milkshake market. The firm has already invested Rs 40 crore in milkshakes and had "lined up additional Rs 30 crore for fruit milkshakes and further line extensions", Ranganathan was quoted as saying. Ranganathan said the company's turnover was Rs 75 crore in the milkshake segment and that the target was to double it with the help of the latest offer.

On the launch of new variant Business Head said that the product contains optimum 3.5 per cent fat content with necessary nutritional in-take and easy digestibility and will cater essential dietary requirements children aged between two and seven years. Mother Dairy’s cow milk will be available across 5,000 retail outlets in the Hyderabad region, he added.

n a move to cater essential dietary requirements of toddlers aged between two and seven years, Mother Dairy launched cow milk across the region of Hyderabad. The newly launched cow milk variant of National Dairy Development Board (NDDB) subsidiary will be available in 500 ml pack, priced at Rs 20. The milk supplier has launched cow milk as the best food product after mother’s milk for toddlers. “Our product offers solution to mothers who are in a dilemma over what to offer their child after stopping their milk. Our studies found that cow milk is the best alternative to mother’s milk for children,” he said, adding that their milk undergoes 23 different tests to ensure food safety”, said Sandeep Ghosh, Business Head – Milk, Mother Dairy Fruit & Vegetable Private Limited.

"In the market, flavoured milk is available only with flavour of apple or flavour of mango. There is no combination of milk, honey and real fruits available in the market. It is a tricky product; cannot be developed easily," he said. The product will have a shelf life of six months without preservatives, he claimed.

Cavin's Fruit Milkshake was launched across Tamil Nadu today and the company said it was planning to cover the rest of the southern states in three months followed by pan-India coverage by the end of this financial year. CavinKare, Rs 1,200 crore turnover FMCG company, handles various portfolios including shampoo, hair wash powder, fairness creams, hair colours, dairy and retail salon products.

Meanwhile, dairy major is looking to clock Rs 10,000 crore by financial year 2017-18. "Our organisation has a vision to achieve about Rs 10,000 crore total turnover in the next financial year 2017-18," said Ghosh. The company reported a turnover of Rs 7,186 crore last fiscal.

Monsoon likely to boost M.P. milk production

eavy rain the cities and throughout the state and during second week of July has increased availability of green grass and water enhancing the milk producing capacity of dairy cattlethat means a steep rise in the milk production expected from next month Shortage of milk in the city had led to rise in its price a month ago. Indore Sahakari Dugdha Sangh and private milk suppliers had increased the milk prices by Rs 1 to 1.5 per litre in the city. . Increased output of milk may help to stabilize milk prices and kick-off the inter-state export of milk that was shut from past few months. Output of milk in the city is expected to touch around 13 lakh liters per day as compared to the current production of 11.5 lakh liter per day, according to dairy experts. Dinesh Yadav, a dairy farmer from Indore, having seven animals said, "I am expecting each of my buffaloes to give at least 4-5 liters of milk this monsoon. Weather is conducive and I am expecting to earn some extra bucks this season." India, the world's biggest dairy industry, produces

Cavin's Fruit Milkshake, available in mango, apple and guava, will be priced at Rs 25 for a 200 ml pack, he said adding the company will be "forced" to hike prices only if input costs go up. "However, I don't foresee any increase in the price for the next one year," he said.

The company sells 35 lakh litres of milk every day. Out of this, cow milk contributes one lakh litres. Mr. Ghosh, however, sees huge potential for cow milk going forward and expects it to contribute at least 15 to 20 per cent of the total milk sales. Currently, the company, which has one plant in Hyderabad and one in Tirupati among others, has 40 lakh litres capacity and is planning to expand it by about seven lakh litres in the next 12-15 months.

about 1,427 lakh liters of milk per day, while Madhya Pradesh ranks fourth in terms of milk production in the country. However, chances of a drop in milk prices are very thin in coming months due to high cost of cattle fodder. Indore Dudgh Vikreta Sangh president Bharat Mathurawala, said, "We were not able to get sufficient milk to meet the local demand since summer. But, now hopefully from next month production will be sufficient and inter-state exports will also start." Indore exports around 1 to 1.5 lakh liter of milk every day to states such as Maharashtra, Gujarat and other cities of Madhya Pradesh in containers in raw form. Summer is the lean season in the milk industry as production of milk drops due to shortage of green fodder and water.

Mathurawala said, "Milk prices depend upon production and cost of cattle feed. If the prices of cattle feed come down in August we may see some drop in prices." Cattle feed is available at Rs 2,600-2,900 per quintal in the local market as against the average prices of Rs 2,000 per quintal, said farmers

J & K on Prabhat Dairy focus

ith its expansion in more than 15 states in the country, integrated milk and dairy products maker Prabhat Dairy now focus on the consumer category in Jammu & Kashmir, Haryana, Rajasthan, Delhi, Himachal Pradesh and Punjab. Prabhat Dairy Joint Managing Director Vivek Nirmal said "This expansion is aimed at part of our strategy to develop our business to consumer’s category in the northern market and take the company to new heights. The long shelf life products will be made available in this region”. The Maharashtra-based Prabhat Dairy officials said that the products to be sold in northern states are UHT milk, cheese and ghee.

Dairy Times

Prabhat Dairy produces fresh, dry, frozen, cultured and fermented dairy products, including pasteurised milk, flavoured milk, sweetened condensed milk, ultrapasteurised or ultra-high temperature (UHT) milk, yoghurt, dairy whitener, clarified butter (ghee), cheese, paneer, shrikhand, milk powder, ingredients for baby foods, lassi and chaas.

15 Vol. 1, Issue 04 - August - September - 2016

Dairy Times

16 Vol. 1, Issue 04 - August - September - 2016

NEWS

Amul recorded overall turnover of 33 K Cr

ujarat Cooperative Milk Marketing Federation (GCMMF), which owns Amul dairy brand, clocked 67 percent growth in turnover to Rs. 23,004 crore in financial year 2015-16. In the past six years, the federation has grown by 187 percent, or 19.2 percent growth compounded annually. The company boasts of passing on 80 paisa for every rupee earned to its dairy farmers on each of its flagship Amul product sold. The federation, along with its constituent member unions representing unduplicated turnover of all products under Amul brand, recorded an overall turnover of Rs. 33,000 crore or $5 billion. It stood 13th among major dairies in the world, putting back other biggies like Land O'Lakes and Schreiber Foods of the U.S., Muller of Germany, Groupe Sodiaal of France, and Mengniu of China, said International Farm Comparison Network.

Steps taken to deal with Milk adulteration: Minister

"In last two years, when dairy farmers across the world have witnessed a sharp decline in farm-gate prices of milk, only farmer-members of Amul cooperative family have witnessed growth in milk procurement price," said Jethabhai Patel, chairman of GCMMF. He noted that in New Zealand dairy farmers have taken a beating over the last two years as the farm-gate price of cow mild declined by 47 percent there. However, farmer-members of Amul family saw 17 percent hike in their milk procurement price as the federation renewed focus on marketing value-added milk and dairy products in consumer packs, he added. Over six years time frame, milk procurement has risen by 87 percent and milk procurement prices rose by 90 percent. As India's largest dairy firm, and nicknamed as Amul, the Anand-headquartered GCMMF is also pushing dairy entrepreneurship of rural youths.

concern," he said. Tharoor added that the Standing Committee related to the food ministry had come up with a report "but we have not seen any action by the ministry".

he government acknowledged that milk adulteration remained a problem but said steps were being taken to deal with the challenge. Food Minister Ram Vilas Paswan said the government had already moved a Bill to amend the Consumer Protection Act, 1986. "The new bill addresses some of these issues," Paswan said. Congress MP Shashi Tharoor had alleged that the National Survey of 2011 found that over 60 per cent of the milk produced in India is adulterated, eight per cent by detergents. And there is urea, starch and formalin, all of which are going into our milk. Milk is drunk by children, pregnant women, by elderly people. It is a matter of national

In a written reply, Paswan said grant was given from the Consumer Welfare Fund (CWF) to the states for setting up a corpus fund of Rs 10 crore towards undertaking consumer awareness activities. BJP member Prahlad Joshi said: "Though people approach consumer forums and consumer courts, delay in justice is still a cause of concern. Adulteration in food, adulteration in milk, adulteration in tea and coffee, adulteration in petrol and diesel, all these things are still happening. People are being duped as far as prices are concerned." The government has adopted a lot of measures to address the problems of the consumers. In the 12th plan, Rs 409.29 crore has been allocated to enlighten the consumers and to push this whole programme forward. Similarly, we have the national consumer helpline, he said.

A Guru in Life-Dr. Kurien

"Dr. Kurien was my guru in life, whom I saw in the same light as my father. I would pray to god that he makes Dr Kurien, my guru in the next hundred lives."

met my guru Dr. Kurien in 1969 at an annualday function of my engineering college, where he was the chief guest. He was wearing his trademark cream colored suit and next to him was his wife Mrs. Dr. B M Vyas Molly Kurien. He was well built, handsome and delivered his speech humorously & confidently. There was not a single soul in the function who wouldn’t have enjoyed his speech. Later, after about a year, I happened to visit Amul Dairy and was impressed with beautiful layout, neat, clean house keeping, big fountains and green lawns. It was almost surreal in those days when rest of the town was quite a dust bowl. I joined Amul at the age of 20 in 1971, and retired as the Managing Director of GCMMF (Amul) at 60. During this time, I had the opportunity to work with him closely as General Manager first and later as managing Director when he was the chairman at GCMMF. The fact remains that every moment I spent with him was of great learning. One of the most important things I learnt from him is the power of humor! He was able to use his wit & humour most effectively. Be it in speeches or in meetings with dignitaries. You may remember that Dr Kurien’s biography was being unveiled at Rashtrapati Bhavan by the then president Dr Kalaam. Dr Kurien was 86 then, and someone said “Dr Kurien at 86 you’re very handsome compared to BM!” (People mostly referred to me as BM). He replied instantly “yes, except for the height”. While many would have missed the point, I was taller than him but only physically. He was also one of the greatest story tellers. He would narrate his stories to visitors for hours, make them laugh, yet have they appreciated the achievements, and leave behind deep sense of warmth in visitor’s mind and heart. It was impossible not to become his friend once you spend more then 30 min with him. He was bound to win you over hands down! He would narrate how he was required to come and work in remote

town called Anand, due to his bond that he had signed. And how no one would give him a house to rent, as he was unmarried, young, used to eat meat & consumed alcohol. He would tell me, he used to sleep on cot under a tree and everyday a dog would run away with his slippers, which was the first thing he would look for as soon as he would get up. How he made his own bathroom with 3 corrugated sheets and cut out a ventilation window himself!How he then converted a garage, into his quarter and there he met his guru Tribhovandas Patel, who changed his destiny. He was tickler of time. In my entire carrier I never saw him reaching a second late to any of his appointments. And he would expect his counterparts to practice the same. If the person he was supposed to meet was not there at the appointed time he would wait for a minute or two, and simply walk back & leave the venue, irrespective of who he was to meet! This also made us time conscious and extremely particular practicing timeliness. He always wanted each and everything in place, neat and clean, working, functioning smoothly. He wanted excellence in everything that came in his purview. Be it a communication, hosting a lunch or be it ensuring that all toilets in buildings or sound systems, even a noisy fan or flickering tube light was fixed. If he happened to encounter any of this he would immediately stop and convey his unhappiness. He will insist and ensure it is restored and system refined to ensure it did not happen again. If he finds that the other person maintains such high standards, he would publicly acknowledge the same. One thing he would never compromise irrespective of your education, qualification or performance was integrity. He would say integrity is like virginity! Once gone, always gone. He had zero tolerance to lack of integrity. This made our life very easy. He would simply dismiss such person in minutes, irrespective of his background. He was the most fearless person I have met and would stick to his point of view especially when related

to core values and the mission. He would never buckle under pressure. In every crisis, he will think deeply, debate, discuss various implications and develop strategies to convert the crisis into an opportunity. He would say ‘there is always something good in everything that comes your way, in all crisis or problems, find out what is good and work on it’! The other important trait was consistency. His stand on core issues and practices would not change. If he took a stand and if you referred same issue a month later or even a year later, he will respond in split second and his decision would not have swayed. Now this does not mean he was rigid – he was just extremely objective in his decision making. His decision making was directly founded on his core values & mission, and as long as actions lead to serve this purpose, he would arrive at decisions in minutes. He would never demand report after report. He would instead, expect a crystal clear thought and its relevance to our mission. Consistency of thought and action were his greatest traits. In fact, I used to deliberately raise the same issue at different time & place, just to check his response. The moment I would complete my sentence, he would say ‘you’ve told me this before’. This used to surprise me, as I would have underplayed the issue deliberately when mentioned for the first time. But he would listen so intently and with cent per cent attention that even the smallest matter raised will be registered by him. To undertsand my relationship with him I must give my background. I was very young when I lost my father, and then due to familial circumstances, I traveled and gained education living away from my family. My mother & my uncle endured a lot of hardships over a period of about 12 years, when I had to live away to go to school & then college. But in a long time, I had never realized how it would be to spend time with someone you look up to, almost like your father. While working with Dr. Kurien I got opportunities to travel from Anand to Gandhinagar- a drive of 2 hours by road.

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Such travels with Dr. Kurien were rare, and for me it was like going out with my father. These were the most important times for me to speak to him and learn. Once we discussed about the most important institution he built over time, among several he created. He invariably answered “Amul”. I replied “I think it is not Amul, but it is IRMA”. He asked me “why do you think so?” and I said “IRMA would produce a new school of management which is more just, fair, value based, and accountable to society – not to the stock exchange. IRMA is ahead of its time. People noticed Amul in 1964, after about two decades of its success! Give IRMA about 50 years and the world will see what you have done”. I continued, “In building IRMA you are catapulting the country ahead of this world by century or more. People will realize what you have done much after you and even I are gone.” The real fruit of Kurien’s work will be understood after another 50 to 100 years. It has inspired a generation and given their next generation – the opportunities, ideals, morals and values which build a society. I am of the firm belief that after Mahatma Gandhi if there was next great person who worked for Rural India and with stupendous success – it was Verghese Kurien. His contribution is much bigger than developing a missile, performing in a theater or playing sitar or shehnai. Great people are like Sarabhai – they build India and build the institutions that take India to the next level. For our politicians, bureaucrats and even masses – appreciating sitar, shehnai or stage play is perhaps easier than seeing reason & rationale of the work done by Kurien, whose real impact will be felt several decades later. Bharat-Ratna is too small for Dr. Kurien and our CMs, PMs or other politicians – all put together, are too small to understand what Kurien has built and what he sacrificed for it.

B. M. Vyas

Former Managing Director, Gujarat cooperative milk marketing federation, Anand

17 Vol. 1, Issue 04 - August - September - 2016

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18 Vol. 1, Issue 04 - August - September - 2016

COVER STORY

A Bi-Monthly Newspaper Devoted to Milk, Milk-Products & Allied Sectors

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ne nation, One Tax is the real punch line for the GST approval in the Parliament. So many taxes, so many bottle necks stopped India from its deserving growth for many decades and especially during post first proposal period during UPA regime. Finally BJP understood the importance of the bill it was opposing from tooth to nail and good sense prevailed in the camp of Congress. Very few countries are less fiddler than India when it comes to Dr. Jv Parekh paying taxes; the World Bank ranks India 157th out of 189 for simplicity of taxes. Both the central government and powerful state governments impose a long list of taxes at every 500 Km in the country. Because the rates differ between states, making stuff in one and selling it in another is often harder within India than it is in trade blocs such as NAFTA or the European Union. Queues of trucks idle at India’s state boundaries much than at international borders. I remember a quote by an importer of agro commodities, he said, “it’s easier to import from Australia to India than bring the stuff from one state to another state”. He also added, “Imports from another country mean trade between 2 countries but movement of stuff from Mumbai to Delhi means 4-5 countries". But this will soon be a matter of past in couple of months from now, fingers crossed. The processed food industry has been facing problems due to the existing tax regime we hope the implementation of the proposed goods and services tax (GST) would benefit the sector in the long run and most importantly to the consumer as well. Chartered accountants' apex body ICAI also said implementation of the Goods and Services Tax (GST) would help reduce prices of fast moving consumer products by at least 10 per cent. The 3 lakh crore Fast Moving Consumer Goods (FMCG) industry in India is one of the major contributor to the state exchequer in excess of Rs 40,000 Crores. Major categories being food & beverage followed by household and personal care. Another view for the FMCG industry says, “GST standard rate at 18% would be lower in comparison to existing effective rate of 26% resulting from 12.5% excise and VAT (at 12 to 14.5% on top of excise). However, many of the agricultural processed products enjoying VAT exemption or lower bracket (4-5%) if included under standard rate, a higher tax incidence will result. Even the lower rate of GST for merit goods at 12% will be higher than prevailing rates. Carbonated beverages are however likely to be taxed at de-merit rate of 40% in GST”. This is for sure, the GST will be due on the basis of value added. That avoids businesses being thwacked by taxes on the entire value of the products they buy and sell rather than just the value they create—a situation that often made it cheaper to import stuff rather than make it locally. Just as importantly, by requiring businesses to document the prices at which they buy inputs and sell products (unless they wish to pay higher taxes), it will force vast swathes of the economy into the reach of the taxman as well. According to the sources as many as 60,000 revenue officials of central and state governments will be trained on GST laws and IT infrastructure framework to prepare them for rollout of the new indirect tax regime by April 2017. The IT infrastructure framework will be ready by March 2017 and a massive outreach and industry sensitisation programme will also be carried out. After the training on GST laws gets complete by December 2016, GSTN will train them on the related IT infrastructure by March 2017. India's exports of Processed Food were Rs. 26,067.64 Crores in 2015-16 and this is a very significant part of the overall food processing business in the country. Exporters body FIEO has said under the Goods and Services Tax (GST) regime, exemption on final export products should continue to promote overseas shipments, else it will lead to problem of working capital particularly for MSME units. Over all its a welcome move but the final outcome can be expected in 2017 and post implementation but for sure the way for implementation will not be easy, as quoted we live with 26 borders and the wagon of GST is standing on Octroi Naka/check post . Dilip Rath has joined as NDDB chairman after Nanda Kumar's resignation and dairy sector is hoping a lot from him. Dilip served as joint secretary in the Department of Animal Husbandry, Dairying and Fisheries, Government of India and sector will be surely benefited from his past experience. It’s time to see that whether he stands with the demand of dairy sector to keep it out of the GST ambit or keep it in the lowest tax rate.

India welcomes food and ‘’On this truly historic occasion of the passage of the

fulfill as they transfer resources from the poor to the not-so-poor. The industry is better supported through upfront budgetary allocations from the line ministries.

What is the Goods and Services tax or GST? The GST is a single indirect tax for the whole nation, which will make India one unified common market. It is a single tax on the supply of goods and services, right from the manufacturer to the consumer.

History & GST There is a long list of those who made such reforms possible, starting from then finance minister Manmohan Singh. The initial reforms on direct taxes were carried out based on the prescription laid out by the late Raja Chelliah whose mantra was the evolution of a tax system focused on broadening the base and levying lower and less differentiated rates—based on a report written by M Govinda Rao, Chelliah recommended the introduction of service taxation; replacing state sales taxes with VAT was also a Chelliah recommendation.

he Rajya Sabha on 3rd August passed the single most significant economic reform since the liberalization by clearing the Goods and Services Tax (GST) or the GST bill. It is believed that the GST bill bring transformational reform in India, will not only aid the ease of doing business but also re-engineer business processes of companies. There will be a free movement of goods and services across the country. It would also have the effect of expanding the market as more actors are likely to enter the economic space.

Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages. GST would most positively impact the organised manufacturing and the Make in India campaign for goods. It is likely to benefit organised manufacturing in the following ways: It is likely to bring down the present incidence of taxation on goods from 26.5 percent to 15-20 per cent. The removal of the inter-state barriers facilitating the free flow of goods and services is likely to reduce the logistics costs faced by the industry & bring them down to the world average of about 8 per cent. Negative protectionism faced by Indian industry will come down as the countervailing duty is likely to fully compensate the domestic duties faced by the Indian industry. The inventory costs of industry are likely to go down. As a destination-based tax, GST has an equity dimension. The developing states of India being consumption -oriented are likely to benefit from the introduction of the tax. This will aid in bringing greater investments in the social and economic sectors. GST will also have a political dimension: It will bring the Centre and states together in new arrangements of fiscal engagement. However, each state will need to create organisational structures in the form of a GST Secretariat which will bring together senior officers of the Central Board of Excise and Customs and State Tax officers. The Secretariat should be registered under the Societies Act and must be provided with a dedicated administrative setup and funds. Many of the anticipated implementation issues could be sorted out once the state GST secretariats are in place. GST may also lead to a new thinking on the role of tax incentives in India. Numerous studies have proven that tax incentives are not the ideal way to encourage industry and attract investments. These incentives often do not meet the socio-economic objectives that they are designed to

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Then finance minister Yashwant Sinha took the big steps in simplifying excise duty rates and coming to a moderate central rate. While it was P Chidambaram that first proposed the GST in 2006—it was to become operational on April 1, 2010—a large part of the credit to ensuring the states came on board, and their concerns addressed, has to belong to the heads of the empowered committee on state finance ministers like Asim Dasgupta, Sushil Modi and Amit Mitra. While the BJP played the spoiler at that time, BJP states like Gujarat almost scuttled it this time around as well—chief economic advisor Arvind Subramanian played a stellar intellectual role in highlighting how this would hurt Make-in-India and, to their credit, both prime minister Narendra Modi and finance minister Arun Jaitley went by his advice. Effect of GST Apart from the fact that GST makes a fundamental shift from an origin-based tax to a destinationbased one, its biggest contribution will lie in eliminating the border check-posts that dot all state

19 Vol. 1, Issue 04 - August - September - 2016

COVER STORY

GST Bill with a few concerns from dairy industry GST Bil in the Rajya Sabha, I thank the leaders and members of all parties’’ – Narendra Modi, Prime Minister of India boundaries—it is these check-posts that ensure India is not a single-market which, in turn, ensures that trucks line up at border posts for hours while their cargo and manifests are subject to laborious checks. Much of the increased GDP growth that economists estimate will accrue emanate from this reduction in transportation costs—to the extent that a GST means companies will no longer plan their warehouses based on tax rates in different states, logistics costs will also get rationalized. State governments, it is true, have yet to agree to eliminate the border posts, but once all information via invoices are uploaded to the GSTN and states find their tax collections are rising, chances are check-posts will get eliminated over a period of time — if they don’t, a big potential GST benefit will no longer accrue, making the exercise a less useful one.

tax. Hence, GST will be negative for companies in food processing, bakery, edible oil and dairy segments. Quick service restaurants too will be adversely impacted. Latest information indicates that GST would be applied at a minimum of 18 per cent on all products, whether it is applicable for all dairy products is not yet clear. Industry experts think it would be unfortunate if such a bracket is applied to processed dairy products. Compared to other industries, the dairy sector has direct implication on the milk producers in India.

At the moment there is no tax on any of the fresh dairy products like raw milk, pasteurised–packaged milk, dahi, chaach, lassi and their variants. None of the dairy products attract excise duty except for the sterilized-sweetened-flavoured milks that also in a very few states. Mandi fee that once was levied on ghee across India Consumption of milk and has been abolished except in milk products is considered as Uttar Pradesh and Rajasthan basic need of the people. The and that too has been reduced to 2 per cent only. ValueGOVERNMENT HAS TO PLACE added tax is levied at 2-5per milk and milk products in a special cent on milk powders, 5per category to attract lower GST rate cent on chakka (basic raw and not even in the proposed lowest material for shrikhand), table slab of 15- 18% as most of the milk butter, cream, and UHT milk packed in cartons.

As in any ambitious tax proposal, there are serious flaws that need fixing, and governments have several months to fix this. Asking firms to ensure that everyone before them in the value-chain has paid taxes before they and milk products, barring few get input tax credits product like butter, ice cream etc; Milk is highly perishable. is inexplicable and are either tax free or they attract Therefore its processing, draconian, and VAT of 5-6% in most of the states, packaging and conversion the discretionary any GST rates above this will only to long life products is more valuation of goods a necessity than a luxury. and services can make the products more costly Processed milk products e.g., cause serious problems—it is not clear why, as in milk powders, butter, ghee, and cheese, extend the the rest of the world, invoice-based valuation is life of milk that would otherwise perish. This also not acceptable with well-defined ways to deal with makes the setting up of facilities for milk processing discounts offered on final sales and manufacturing of dairy products highly capital-intensive. Similarly, handling of dairy Valuing intra-firm supplies is another huge products requires highly reliable and unbreakable problem area and, here too, there are well-accepted cold chain needing heavy capital investment in the global procedures. With a well-functioning GSTN, network for sales and distribution. similarly, it is not clear why firms have to register with each state/UT and pay taxes at that level. Rules Industry thinks that government on e-commerce, similarly, are very complex. The should create a special class for biggest issue, of lower rates, remains unaddressed the dairy industry by exempting — this requires slashing exemptions — and that is all types of liquid milks, sterlized critical if the benefits of lower taxation, including milks, dahi, chaach, lassi, higher compliance, are to accrue to the economy. Till then, it’s too early to celebrate. shrikhand, paneer and so on from How will GST be levied? The Central GST (CGST) and the State GST (SGST) would be levied simultaneously on every transaction of supply of goods and services except on exempted goods and services, goods which are outside the purview of GST and the transactions which are below the prescribed threshold limits. Further, both would be levied on the same price or value unlike state value added tax, which is levied on the value of the goods inclusive of central excise. How will imports be taxed under GST? The Additional Duty of Excise and the Special Additional Duty presently being levied on imports will be subsumed under GST. Unlike in the present regime, the states where imported goods are consumed will now gain their share from this Integrated GST paid on imported goods. Here is what the Dairy Industry in the country thinks about the GST bill; As the Goods and Service Tax bill cleared its way with a thumping majority in the Rajya Sabha, the Indian dairy has responded differently on the move. Many consumer staples currently have low indirect

levy of GST and create a special category by levying 4% on all other dairy products.

It is apprehended that high GST would incite the industry to reduce the milk prices paid to the milk producer. High rate of GST might also increase the consumer prices of dairy products substantially. The consumer would have a tendency to reduce the consumption of processed dairy foods as well as milks. If the consumer moves more towards the traditional vendor, the organised dairy sector that has been wresting the market of vendors, would contract in size and consequentially reduce its reach to the milk producer. According to Harsev Singh, CEO, Reliance dairy, the Dairy industry operates on water thin margins, nobody will be in a position to absorb the higher taxation on sustainable basis and ultimately the impact of higher tax will be passed on either to consumers by increasing the prices or milk producers by lowering the milk procurement rates. Singh also added the fact that GST is not in the interest of either producers or consumers and even Government, because as per the government’s policy it wants to double the income of farmers and

contain the inflation to improve the growth of economy! Both of these impacts will attract worst publicity for the Govt. The most impactful observation by the CEO OF Reliance Dairy was that implementation of GST would bring more unorganised sector in the tax net and with more tax to pay unorganised sector would divert its focus to No.2 business wherein they can avoid paying tax by taking advantage of poor implementation and enforcement of tax by concerned agencies/departments. In fact there will be adverse impact on government revenues. However, Prabhat Dairy Managing Director, Vivek Nirmal, has a different view about the bill, he thinks that GST will be beneficial to the dairy ingredients consuming industries / companies and help them to attract more investments and for Dairy ingredients, it will definitely streamline the taxation. Though regarding the tax rate, Nirmal is skeptical and agrees that the18 percent is quite high. Considering that 65 per cent of the Dairy market is unorganized, the rates have to be practically looked at.

otherwise conserved commodities like milk, fat, solid-not-fat will be dumped from different countries and the Dairy industry will get affected, causing resentment among the poor milk producers as their market will be taken away by foreign product. He too agreed that increase in rate of tax will affect the consumer price which is not in the interest of farmers and may reduce overall investment in machinery and technologies in greenfiled in long run. What the government needs to handle is the unorganised sector that may also come into the fold of GST and may have to pay the GST which they try avoiding or escaping most of the time. Though P N Wali, Eashan Dairy Consultants, is worried about the higher rate of GST, he is in full support of the Land mark GST across the country with concern over the radical tax structure. Once adopted GST will replace a string of central and local levies such as excise, value added tax VAT and 0ctroi into a single unified tax & stitch together a common national market.

Most of the dairy products don’t have Excise duty, so a lesser slab should be made applicable to ensure the products remain reasonably priced for consumers.

GST once streamlined the tax structure will attract FDI and we have to bear the competition to have the quality turnover, added Wali saying that, green field technologies may have advantage in the long run.

Vivek Nirmal also observed that GST will leave an impact especially in products where there is 5per cent VAT (Almost all the products except cheese, Ice-cream, Table Butter, etc.) a slab of 18per cent will inflate the prices.

P N Wali also stressed that agencies controlling GST will have to enforce the system to attract unorganized sector to be in the gambit. Common consumer has no time to think of such complexes. They are forced to follow the path set.

If the overall impact for the entire grocery basket remains neutral, I don’t think it will impact too high for basic milk products. However, in case of higher tax slabs, it might discourage consumers to go for value added products in dairy, completed Vivek Nirmal.

Considering these factors, it is reasonable that at par with agriculture produce, the milk products be also exempted from any excise duty, sales tax and similar other taxes. This gesture on the partof government would go a long way in accelerating the growth of the Indian dairy industry, said Wali.

Rajiv Mitra, Managing Director, Govind Milk, also supporting the GST, said that it is good for the Indian manufacturing sector in the long run, but like is other counterparts Mitra agrees that the 18 per cent tax on milk products will definitely have impact on the prices of some of the essential goods. We expect the rates to be lower than the standard rate prescribed, he added.

However, Sunil Rajan Mishra, Managing Director Deshratna Dr. Rajendra Prasad Dugdh Utpaadak Sahkari Sangh Ltd, said that whether the consumers would be affected or not would purely depend on the GST applicable on milk and its product.

Implementation of GST is a welcome step but it should not be kept in 18 per cent slab for dairy industries rather than it should be kept in the lowest slab and liquid milk should be exempted from any sort of tax as it is now, stressed Sudhir Kumar Singh, Managing Directorof Patna Dairy Project. But Singh was resolute about the fact that the Dairy industry should be kept out of FDI influence

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“We pray and urge to the policy makers that some essentials items like milk, dahi some of the traditional sweet meats and products must also be exempted and few may be put under privileged taxation, he added. Mishra added that under present situation when we have no taxes, any applicable tax would affect the MRP of the product or we have to reduce our procurement prices. He urged that the dairy sector can get profit either by increasing MRP or by giving less benefit to the producer’s i.e ultimately the farmer will loose.

20 Vol. 1, Issue 04 - August - September - 2016

NEWS

Kwality rolled after KKR commitment

fter receiving the capital commitment of upto Rs 520 crore via structured finance from private equity fund from Kohlberg Kravis Roberts & Co Ltd (KKR) India to fuel its aggressive growth plans Kwality Ltd, rose 4.63% to Rs 116.40 on BSE. The announcement was made before market hours. Meanwhile, the S&P BSE Sensex was up 74.70 points or 0.27% at 27,882.84. "The company will use part of the proceeds to

meet capital expenditure for further strengthening milk procurement infrastructure and increase processing capacity by 9.5 lakh litres per day," Kwality chairman Sanjay Dhingra said. The company would also repay some of its high-cost debt to improve cash flows and augment brand building activities . On BSE, so far 2.52 lakh shares were traded in the counter as against average daily volume of 1.81 lakh shares in the past one quarter. The stock hit

a high of Rs 117.90 and a low of Rs 114.50 so far during the day. The stock had hit a 52-week high of Rs 153.70 on 28 December 2015. The stock had hit a 52-week low of Rs 62.40 on 26 August 2015. The stock had underperformed the market over the past one month till 12 July 2016, gaining 0.82% compared with the Sensex's 4.4% rise. The scrip had also underperformed the market in past one quarter, declining 5.24% as against Sensex's 10.59% rise. The small-cap company has equity

capital of Rs 23.43 crore. Face value per share is Rs 1. Kwality said it has received capital commitment of upto Rs 520 crore via structured finance from KKR India, one of the biggest private equity (PE) fund, to fuel the company's aggressive growth plans as it continues to rapidly shift its business model towards B2C/retail segment. The proceeds shall be utilized to fund capex to further strengthen milk procurement infrastructure solely for high-margin value-added product categories including cheese, paneer, table butters, tetra-packs, flavoured milk and yoghurt among others. The company intends to roll out a series of such products in the near future, Kwality said. Additionally, funds will be deployed for part repayment of debt to improve cash flows and augment brand building activities. As part of a change in its business strategy, Kwality is revamping all business functions across the value chain including procurement, changing product mix to cater to evolving needs of customers and ensure high quality, brand building, building an extensive distribution network to boost retail presence, set up robust IT infrastructure for process integration, and improve managerial competencies. A person close to the company said Kwality, which reported a turnover of a little over Rs 5,000 crore last fiscal, is looking to double its revenues in the next four years with value-added products accounting for 25%-30% of the total revenues. "Kwality has plans to invest close to Rs 500 crore to expand production capacities to increase the share of retail sales to 70% from current 30% of its turnover over a period of time," the person said. Kwality's net profit fell 2.3% to Rs 33.35 crore on 5.9% growth in net sales to Rs 1439 crore in Q4 March 2016 over Q4 March 2015.

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21 Vol. 1, Issue 04 - August - September - 2016

NEWS

Amul packs a sweet punch Odisha-based Milk Mantra targets R.s 1,000-Crore revenue in four years

The homegrown brand expands its presence in the mithai market, hopes to cash in on changing customer preferences

he halwai across the road might be in for some competition as organised players claim that there is a clear shift in consumer preference from loose mithaai to branded, packaged sweets. In fact step into any of the major airports in the country and it is impossible to miss the rush at stores for branded mithais by homegrown regional brands. Now, with the country’s largest dairy cooperative Gujarat Cooperative Milk Marketing Federation all set to launch packaged rasgullas and rasmalais, the market is set to get a further boost. R S Sodhi, managing director of GCMMF which owns brand Amul, says, “We realised that the demand for quality Indian desserts is high, there is demand for hygienically prepared standardised sweets.” Amul already has Indian sweets like shrikhand and basundi in its portfolio, but the Indian sweets segment contributes a meagre sum of Rs 1,500 crore- (Rs 15-billion) odd to its Rs 23,000-crore (Rs 230-billion) turnover. However, the company is keen to grow the numbers here and says that the segment is clocking a steady 15-20 per cent compounded average growth rate. With the new products, Amul expects to match that, he claimed. The traditional Indian desserts market is around Rs 40,000-45,000 crore (Rs 400-450 billion), informs Angshuman Bhattacharya, managing director with Alvarez &Marsal, a global professional services firm that offers business advisory services.

informs. The Indian sweets segment, however, faces tough competition from chocolates and confectioneries which is estimated to be a market worth around Rs 11,000-12,000 crore (110-120 billion).

Gupta says that with Mondelez India actively advertising during festivals, chocolates have emerged as a serious competitor for festival gifting. Gifting is a key driver for demand for the branded Indian sweets industry. Almost 50 per cent of Bikanervala’s sales are during festivals. Moreover, it is also a question of availability. Chocolates are available at the corner store, but for sweets one has to visit a sweet shop."We are thus trying to increase our distribution reach, and have plans to tie up with modern trade for this,” he added. The traditional sweets player is trying to up its game by going in for trendy packaging solutions and adding innovative options in its product portfolio. Another player that has invested heavily in the segment is Haldirams, its stores at the airports are doing brisk business. Many retail chains in metros have also increased their shelf space for homegrown mithai brands. Bikanervala has 60 stores in India and abroad. It

One of the leading players in the segment, Bikanervala agrees that the branded segment is growing at a fast pace, not necessarily because the market is firing up, but because there is a steady conversion among consumers from unorganised to organised segments. Amul’s entry has cheered up players like Bikanervala who feel that the entry of a large player would expand the market. Deepta Gupta, corporate executive vice president of Bikanervala Foods, which owns the Bikano brand says, “No major Indian sweets player can afford to spend big on advertising. "However, as players like Amul enter and advertise Indian sweets, it is the segment that would ultimately benefit”’ she said. Bikanervala has not spent heavily on branding and advertising or for that matter run a campaign on the ‘healthier’ aspects of traditional sweets, Gupta

Milk Mantra, India’s first venture capitalfunded start-up in agri-food sector, is planning to increase its revenues by eight times in the next four years, from 122 crore in 2015-16 to 1,000 crore by 2020-21. Given that in 2011-12, the company’s revenues were just 4.5 crore, the exponential growth tells a story. Chasing the target, Milk Mantra recently ramped up its milk-processing capacity from 75,000 litres to 2.5 lakh litres per day, upgradable up to 3 lakh, at its two plants in Odisha. It is also planning to increase the number of networked dairy farmers from the existing 40,000 to 1.5 lakh in the next 3-4 years, Srikumar Misra, founder-Managing Director-CEO, said. Misra quit as Director of Mergers and Acquisitions at Tetley, London, after eight years in the job, to establish a dairy business in 2009 in his native Odisha where availability of milk was scarce. “I was already in the food and beverages segment. While searching for ideas to start a venture, the dairy segment stood out.” Having witnessed the evolution of the F&B industry across China, South Africa, the UK and Europe, he realised that the organised space in India and the $50-billion dairy industry was in need of a new brand that was healthy, functional and innovative. The company introduced its flagship product, Milky Moo, in Odisha in 2012. It became one of the fastest growing consumer brands with a CAGR of 100 per cent, he said. Now he hopes to make it 10 times bigger, to cater to the market mainly in Eastern India.

The packaged market size is around Rs 3,500 crore (Rs 35 billion). While a definite shift from unorganised to organised is being witnessed, not all products have high shelf life or can be industrially produced and hence, scaling up could be difficult. "However, the potential is huge, and in the long run conversion towards organised players is imminent,” says Bhattacharya.

ith its “ethical sourcing programme”, it may be the private sector’s Amul-in-themaking in Eastern India.

Milk Mantra, which has so far raised venture capital funding of about 100 crore (25 crore as debt, the rest being equity), has invested about 60 crore to expand processing capacity at its plants in Bhubaneswar and Sambalpur district in Odisha. plans to double the number of overseas stores over a short period of time, and enter new territories (Southern states) in India, a sign perhaps of the growing demand from customers in these regions. “We are planning to start a factory in one of the Southern states soon. We are already running at 100 per cent capacity at our Haryana plant, because our exports demand is steadily rising,” Gupta says. While Gupta and Sodhi both feel that the demand for hygienic, packaged sweets is on the rise, Bhattacharya felt otherwise. Hygiene is not necessarily the most important factor driving the consumption shift from unorganised to organised. Consumers prefer packaged sweets for gifting on festivals and other occasions. "In fact, almost, 50-70 per cent of sales of packaged sweets happen during festive season,” he says, adding that it is not that the segment is clocking month-on-month growth as such. If Amul is to get to its target, it will have to change that, he said.

Collection centres “We are also increasing the number of milk collection centres from 300 to 1,000 and procurement from 1 lakh litres to nearly 4 lakh litres of milk per day as we are focusing on increasing productivity and output by three times. If necessary, we will invest more in capex.” Seventy per cent of the company’s revenue comes from toned milk and 30 per cent from other products such as pro-biotic and plain curd, lassi and butter milk sold under the Milk Moo brand. Misra said the dairy products business was a $40-50 billion market in 2009, only $5 billion of it organised. The market was already growing in double digits and “I could see the opportunity here.” As part of the “ethical sourcing

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programme” — also followed by many global companies as a “conscious capitalism business model” — Milk Mantra focuses on transparency in payment and pricing. “Currently, we pay our milk farmers Rs. 27 per litre every 10 days. We sell toned milk at Rs. 38 per litre.” Since the farmers connect and deal with the company directly, it ensures elimination of middlemen. And through tie-ups with banks and financial institutions, farmers are encouraged to buy more cattle. Cattle-feed companies, similarly, provide quality feed to increase productivity. Unlike Amul’s agent-cooperative model, Milk Mantra owns and manages the entire sourcing segment. In November 2015, the start-up launched MooShake, a dairy-based health beverage blended with curcumin (a turmeric extract), which Misra wants to promote as an immunity booster. Developed in-house, MooShake has a shelf-life of 180 days.

22 Vol. 1, Issue 04 - August - September - 2016

NEWS

ITC forays into dairy whitener market with Sunfresh brand

TC has stepped into the dairy whitener market with its Sunfresh brand, its second offering in dairy business, after it opened its innings in this space last October with packaged ghee. With this, the Kolkata-based company intensified its rivalry with Nestle and Amul, the two largest companies in the dairy whitener segment, which together account for more than 85% of the market. The company has launched Sunfresh in the NorthEast, the largest market for dairy whiteners valued at over Rs 380 crore due to milk deficit in the region. Next on cards are West Bengal and Kerala, before the company takes the brand national. More than 60% of the dairy whitener business is generated in the North-East, West Bengal and Kerala, according to Nielsen data. The dairy whitener market is valued at over Rs 1,370 crore, and is growing at 6% per annum. "We would soon enter few more categories in the dairy business," said B Sumant, president-FMCG business, ITC. "Our focus is on crafting value-added products in

the dairy segment which would be superior and differentiated," he said. The dairy whiteners are manufactured at Munger in Bihar, which is the hub for ITC's dairy business. ITC had earlier said that it is exploring areas such as ice-cream, butter, cheese, curd, milkbased drinks and ready-to-mix products similar to Complan and Horlicks as part of its dairy business. An analyst tracking ITC said the company has been entering the crowded and polarised categories in the food business and has achieved success. "ITC may give good competition to Nestle and Amul in dairy whiteners, the way it has done in instant noodles and packaged snacks," he said, requesting anonymity. As per Nielsen data sourced from the industry, Nestle's Everyday has around 48% share and Amul's Amulya 38% in the dairy whitener segment.

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a brand or promotional message. · The energy efficient multipack cost enhances production speed and easy to implement into any production line. · precut cardboard labels · pre-handled adhesive tape reels · paper and polypropylene handles on reel

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Food Sector now has 100 per cent FDI

he government has allowed 100 per cent FDI under the government approval route for trading, including through e-commerce, in respect of food products manufactured or produced in India. Additionally, the government has eliminated the requirement of ‘controlled conditions’ for FDI in animal husbandry, pisciculture, aquaculture and apiculture. At present, 100 per cent FDI in these

activities is allowed under the automatic route under controlled conditions. The PMO, in a statement, pointed out that the decision was taken with the objective of providing major impetus to employment and job creation in India. Sagar Kurade, President, All India Food Processors’ Association welcomed the government’s decision and said it would help in the development of food processing industry and have positive effects. Piruz Khambatta, Co-Chairman of the Confederation of Indian Industry’s National Committee on Food Processing Industry said that the policy announcement was aligned with the objective of the government’s initiative on ‘Make in India’ to facilitate ‘ease of doing business’ with a thrust on ‘Minimum Government and Maximum Governance.

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Dairy Times

23 Vol. 1, Issue 04 - August - September - 2016

SUCCESS STORY

Milk: Moving Communities beyond Class, Caste & Revolutionary Insurgency

Jehangir Lawyer

ith just half an acre of land, but six cross-bred cows and two heifers, Kaushikaben Jayantbhai Deshmukh earns her livelihood entirely from selling milk. The 37-year-old, belonging to the Kokna adivasi tribal community, pours 1,650 litres every month on an average to the cooperative society at Karanjveri village in Dharampur taluka of Gujarat’s Valsad district. At Rs. 23 a litre, it works out to Rs. 38,000. After spending about Rs. 10,000 on cattlefeed and another Rs. 3,000 to purchase dry/green fodder, she has Rs.25, 000 left as ‘income’. Pretty decent compared with ten years back, when Kaushikaben and her husband barely eked out a living as farm labourers. Today, on their meagre holding, the two grow paddy during monsoon — only for straw and meeting own rice needs and jowar and bajra in rabi/winter, purely for giving fodder in 50-55 days. Milk is, thus, their sole source of cash income. During the year ended March 2012, Kaushikaben sold a total of 19,786 litres and received Rs. 4.47 lakh as payments. Both her children study, a son in class 10 and daughter in ninth. And it’s not an isolated story of tribal emancipation. The Karanjveri milk cooperative’s 273 producermembers are all adivasis— three-fourths Kokna and the rest from the Dhodia tribe. Together, they grossed nearly Rs. 1.6 crore, supplying over seven lakh litres to the society that is part of the Gujarat Cooperative Milk Marketing Federation’s (Amul) Valsad dairy union. Most are first-time milk producers. Like Paruben Chhotabhai Bhoye, a landless labourer selling 20 litres-plus daily from two cows and four heifers (two recently pregnant). Her husband was previously a building construction worker in Valsad city. Laljibhai Mahala, is the Karanjveri society’s secretary. Fifteen years ago, he was a diamond polisher at Navsari, coming home once a month after earning Rs. 500-600 from working 12 hours a day. “Today, my 26-year-old son is a veterinary science graduate employed with the state animal husbandry department. My married daughter teaches at the Dharampur taluka Panchayat School. Without milk, I would have been nowhere”, says Laljibhai. Karanjveri is only one of the Valsad milk union’s 1,016 societies covering the three southern Gujarat districts of Valsad, Navsari and Dang. Out of their 1.16 lakh members, 74,433 (64 per cent) are adivasis. “The share is higher if you take regularly pouring members. About 80 per cent of our milk comes now from adivasis”, reckons S.B. Singh, procurement manager at the Valsad union, which bought an average of 3.8 lakh litres daily in 2011-12. At Rs. 25 a litre — the average rate that producers got for both buffalo and cow milk — the union would have pumped in almost Rs. 350 crore, 80 per cent of it (Rs 275 crore) accruing to adivasis! Interestingly, when it started out in 1981, the Valsad union was buying milk from farmers mainly from the ‘forward’ Patidar, Desai (Anavil Brahmin) and Rajput communities, with a sprinkling of Koli Patels. Today, the first lot has virtually stopped pouring. The Kolis catogorised under ‘other backward classes’ are still around, but the most active are the

adivasis. Symbolising the trend is Tarsadi village in Navsari taluka. It once had a Patidar-dominated milk society that has closed down, with the bulk of young community members migrating to the US, leaving only their old folks behind. Likewise, there is the Gorgam society in Valsad taluka, headed by a Patidar despite 99 per cent of the pourers being adivasis. A NEW TRADITION To understand the transformational impact brought about by milk, one must, first and foremost, realise the absence of any organised milch animal rearing tradition among the adivasis. Till a generation ago, the southern Gujarat tribals — whether Kokna, Dhodia, Bhil and Gamit or the even worse-off Varli, Kotwalia, Kolcha and Kathodi drank black tea and weren’t averse to slaughtering cattle for meat. Their source of livelihood was subsistence cultivation, cutting wood, collecting bamboo for basket-weaving, and gathering minor forest produce such as mahua flowers/seeds, timru (tendu) leaves or katha from acacia trees. In more recent times, with their access to forest resources progressively curtailed, the adivasis in this belt have increasingly resorted to migratory employment as construction and road building workers at Surat, Ankleshwar, Valsad, Vapi and Mumbai; diamond polishers and timber cutters at Surat and Navsari; labourers in cane fields near sugar mills around Surat or grape orchards across the Maharashtra border in Nashik, Dindori, Pimpalgaon and Niphad. It is to them —the people with little prior experience of milking animals, leave alone knowledge about feeding (what, how much and when) or recognising ‘heat’ (estrous) symptoms — that Amul unions like Valsad, Surat and Panchmahal have introduced modern animal husbandry concepts over the last few decades. This has meant training them, for instance, in detecting heat signs: general excitability (jumping on other animals, mooing a lot), frequent urination, vulva swelling/reddening along with thick mucus discharge, reduced milk output, etc. A cow showing these has to be inseminated within 24 hours. Missing it means waiting for the next estrous after 20-21 days, leading to delayed pregnancy and, ultimately, income foregone. BYPASS ADVANTAGE The adivasi milk producers have, moreover, been made to technologically leapfrog. That has entailed rearing high-yielding crossbreds and not native Dangi cattle; artificial insemination (AI) instead of ‘natural service’; stall feeding rather than open grazing; giving factorymade compounded cattlefeed and mineral mixture supplements; and vaccination. In Dang Gujarat’s most backward district with 94 per cent adivasi population the Valsad union has, since 2001, set up 150 village societies having 8,500-odd producer-members. There are 40 AI workers catering to just these societies. The workers, trained by the union and supplied semen from elite bulls, frozen at minus 190 degrees Celsius in liquid nitrogen tanks to ensure sperm viability, charge Rs. 30-50 for a single AI dose. For an idea of the scale of these operations, the Valsad union’s 250 AI workers in all conducted some 2.2 lakh inseminations last year.

Technology apart, there is also financial and marketing intervention. Every woman farmermember is eligible for a Rs. 25,000 loan from the Valsad union to purchase a cross-bred cow. The loan, bearing 9 per cent interest, is repayable after three years. By then, the cow would have undergone three lactations, each yielding 2,5003,000 litres. The union has cumulatively loaned nearly Rs. 70 crore — money it has sourced from nationalised banks to over 36,000 producers. The beauty here is that the milk from the cows financed also has a ready market in the union itself. It explains the high 98.5 per cent recovery rate on these advances, in contrast to government cattle loan schemes devoid of any such assured marketing or buyback arrangements. COWS IN THE MAKING Even more innovative is a scheme where the union provides Rs. 10,000 worth of inputs viz cattlefeed, mineral mixture, de-wormer, vaccination and veterinary support for rearing of heifers till about 28 months before their first calving and lactation. It is only then that repayment, at 9 per cent interest, gets triggered. Till now, about 40,000 heifers have been enrolled under this scheme, of which 12,000 are already inmilk. Sumanben Rameshbhai Pawar, a landless Bhil woman from Chikatiya village of Dang’s Ahwa taluka, bought her first cow in 2009 against a loan from the Valsad union. That animal has calved thrice and is pregnant again. The first of its three heifers calved six months ago and is already giving milk. The second is pregnant and will calve in four months, while the third is a 10-month-old growing heifer. All these are ‘registered’ animals. Today, Sumanben sells 11-12 litres of milk daily, fetching Rs. 8,000 a month or Rs.3, 000 after all cash expenses, including loan repayment. Her earnings will only go up as more animals lactate. Before 2009, she and her husband jointly harvested cane near the Bardoli sugar factory, living there with their three children and returning with barely Rs. 5,000 after working through the crushing season from November to March. They no longer migrate. In this way, 14-15 litres of milk can be sold round the year, grossing Rs. 1.2 lakh at Rs.23 a litre. Even if all expenses are 70 per cent, they will have Rs. 36,000”, notes Narendra Vashi, Managing Director of the Valsad union. Farmers can also make money by selling one freshly-lactating heifer every year for Rs. 34,000 or Rs. 24,000 after deducting rearing costs over 28 months. It all adds up to a monthly net income of Rs. 5,000 or so. Producers are further being encouraged to cultivate Subabul, a fast-growing fodder tree yielding protein and carotene-rich leaves daily. These leaves can replace 2 out of the 6 kg of cattlefeed that a lactating cow requires every day. With cattlefeed costs at Rs. 10/kg, the savings are not small. “Currently, we procure 21,000 litres per day from Dang alone. With the

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foundations laid over the past decade, it can easily touch one lakh litres in the next five years”, adds Vashi. MILKING COUNTER-INSURGENCY The question to ask is: If dairying can provide viable alternative livelihood in areas as backward as Dang where there is no piped water and LPG; women walk 2-3 km to fetch firewood and water; and homes have walls built of bamboo and muddung filler why not replicate it in the tribal belt of Chhattisgarh, Jharkhand, Orissa or West Bengal? Kaushikaben, Paruben and Sumanben are living proof of adivasi women being more than receptive to modern animal husbandry practices, even if environmentalists and cultural anthropologists may see them as impinging on their pristine tribal traditions. There is no doubt that our adivasis have been victims of development strategies ‘developing’ only others, and foisted upon them by Corruptible governments and shamfull corporate interests. This is where a product like milk holds out hope more than mahua flowers or tendu leaves. It has, more than anything else, a ready market in a nation of consummate milk drinkers. With efficient procurement and marketing systems, of the kind the Amul unions have established, producers can also get up three-fourths of the consumer price. There is no better way to combat Maoist insurgency than investing in a sector that can generate daily cash flows for the most marginalised sections, allowing them a life of dignity and empowerment Jehangir Lawyer Managing Director Fortune Gourmet Specialities Pvt. Ltd. Web: www.fortunegourmet.com

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24 Vol. 1, Issue 04 - August - September - 2016

ARTICLE

Is India Ready for Greek Yogurt? Dr. Ramesh Chandan, Minneapolis, MN, USA

reek style or strained yogurt constitutes approximately 50% of the total yogurt market in the USA. Its popularity is attributed to the healthy appeal of the high protein content (2 to 2.5 times that of regular yogurt). This trend is likely to prevail in Indian market. In India, Dahi (a variant of yogurt) has been immensely popular fermented dairy food for centuries. Dahi-derived, Shrikhand is consumed as a snack or dessert in Western India. There is a striking resemblance between Greek yogurt and Shrikhand. They differ only in the type of culture used for fermentation. Traditionally, Greek yogurt and Shrikhand have been made from whole milk (sometimes supplemented with cream) to standardize the fat level to 7%. After the fermentation is complete, the product is concentrated by straining through cheese cloth. Due to the drainage of whey, the total solids increase from 14-15% to 21-23%. The concentration step results in a remarkably thick viscous body. The fat content of this type of yogurt rises to approximately 10%. The high fat content imparts very creamy flavor and moderates the acid flavor. The fermented protein also concentrates and contributes to smooth texture of Greek yogurt. The traditional method is labor intensive and lacks sanitation conditions for obtaining desirable shelf life of the product. Shrikhand is now produced by an industrial process

(Aneja et al.2002). Modern processing procedures for Greek yogurt and Shrikhand involve whey removal by mechanical procedures. Drainage of the whey is accomplished by passage of the fermented milk through Quarg/centrifugal separators or by the application of ultra filtration techniques. In the centrifugal process, the fermented milk is concentrated in a spray-nozzle centrifuge, wherein the product enters from the top and goes to the bottom of the bowl via a distributor and then enters the rising channels in the disk stack, where it is separated into curd and whey (Kilara and Chandan, 2013). The separated curds are fed to nozzles through a segmented insert and then discharged out of the separator into a collection bowl and on to a product collector. The whey is discharged through a centripetal pump located at the top of the separator bowl. Assuming that the total solids of the product discharged is 18%, separators with capacities from 1000 -3000 kg/h are available from suppliers. The described configuration leads to long holding times and little product loss. The product hopper is equipped with sensors to regulate the product pump at different levels. Product output is determined by the diameter of the nozzles. Different nozzle diameters combined with the size of the holes in the plates are used to process various products on the same separator. The concentrated product is then mixed, homogenized and further processed. Further processing consists of adding colors, flavors and inclusions prior to packaging and distribution. Thus skim milk with approximately 9% total solids is concentrated to Greek-style yogurt with 18% total solids. Fat content of the concentrated yogurt may be

standardized to desired level by the addition of pasteurized cream prior to the addition of fruit flavors, colors and inclusions. Another method of concentrating solids uses membrane filtration. Ultra filtration (UF) is the process in which macromolecules are concentrated. The major macromolecules in milk are fat and proteins. This technique utilizes cross flow membrane in which the feed solution is forced through the membrane under pressure. The solution flows over the membrane and solids are retained (retentate) while the removed materials are present in the permeate. The filter modules are available in various geometries. Spiral wound are the most common but others available are plate and frame, tubular, and hollow fiber. Tubular filters can be made out of ceramics or polymers. Membrane operations can be batch or continuous. In dairy plants, continuous processes are more desirable. Process temperatures are maintained at around 50 degeree centigrate to minimize microbial growth and to improve membrane flux. The use of membrane processing in the cultured dairy products area is restricted to concentration of skim milk for fat-free yogurt manufacture. Some of the lactose and minerals are removed from skim milk thereby increasing the protein content. This process can concentrate skim milk (9% solids) to 12% solids. There is still enough lactose in the retentate to facilitate fermentation. A higher protein content in the concentrated milk results in a firmer acid gel in yogurt.

fermentation, or Concentrating fermented milk to remove whey solids. Ingredient additions take place after homogenization and prior to filling. Mainly, these ingredients are cream, colors, flavors and inclusion such as fruit pieces, nuts and variegates. When skim milk is concentrated prior to culturing, whey proteins are retained along with casein. The minerals associated with casein micelles are not changed when milk is ultra filtered at its native pH 6.7. The concentration of these minerals increases in the same proportions as that of protein. Increased mineral content results in increased buffering capacity of the retentate. Consequently, when the retentate is fermented by the yogurt cultures to the same end point pH as regular milk, the product will be more acidic. During acidification, more colloidal calcium is solubilized from the micelle and migrates to the aqueous phase leading to alterations in the aggregation of casein. When acidified milk is ultra filtered, the soluble solids traverse the membrane and flow into the permeate thus lowering their concentration. Ultra filtration of yogurt not only concentrates solids but also results in products with less acidity because lactic acid passes into the permeate. The viscosity of retentate, whether concentrated prior to or after acidification, increases with increasing protein concentration. Heat treatment of the retentate denatures whey protein, resulting in increased water-holding capacity leading to a higher yield of product.

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25 Vol. 1, Issue 04 - August - September - 2016

ARTICLE

A2" faces market competition Bob Edlin

On the other, the challenges could be regarded as an endorsement of the A2-type milk’s potential benefits for some consumers.

An a2 Milk spokesman said the company was “actively engaged in defining and protecting its rights”.

‘The company recognized that as the A1-proteinfree concept became more widely understood, other parties would try to benefit from it.’ Releases without mentioning “the a2 Milk Company” or the “a2” brand.

he strength of a2 Milk Company patents looks likely to be tested as other companies launch or plan to launch A2-type milk products in the United States and the Netherlands.

It also was investing in scientific research to develop further understanding of the beneficial qualities of A2 milk. The patent and IP challenge was the subject of a detailed analysis by First New Zealand (NZ) Capital in May, when a2 Milk’s share price dropped to about $1.60 after peaking at $2.27 late in December. The challenge appeared to be coming from smallscale operators, a note to investment clients said. Kar Yue Yeo, First NZ Capital’s managing director of equity research, was ambivalent about the implications. On the one hand, the breadth and depth of a2 Milk’s registered patents “may be about to be put through significant tests,” he said.

• Snowville Creamery – a small dairy processor in Ohio whose products are sold under the Snowville brand through six wholesale distributors in Ohio, Kentucky and Indiana; Snowville sells grassgrazed-only white milk, chocolate milk, cream and yoghurt. It claims its “white milks are now exclusively produced from cows that have been tested and verified to have only A2 genetics”, although Yeo said its packaging didn’t appear to have any references to A2-type milk. • Origin Milk – a small dairy processor in Cleveland, Ohio, whose products are sold under the Origin brand through four retailer chains in Ohio, Pennsylvania, Illinois and other states; Origin sells dairy-based milk, creamery and butter as well as goats’ milk. It has references to A2 on its packaging.

• Hidden Acre Farms – a small Ohio dairy and beef supplier, it has stated its dairy milk is sourced from herds of Jersey and Guernsey cows that produce milk with A2-type protein. This is “super helpful for people who have discomfort when digesting regular cows’ milk and may also help with symptoms associated with ADHD and autism”. Yeo was uncertain if Hidden Acre had any consumer product offering. • VecoZuivel – it regards itself as a leading dairy processor company in the Netherlands and sells organic and conventional dairy-based milk, yoghurt and yoghurt drinks and butter, as well as goats’ milk and a small range of Dutch desserts. VecoZuivel produces dairy for major Dutch retailers and in 2012 started exporting dairy products to China and Southeast Asia. The First NZ Capital note to clients cited a magazine report that Veco Zuivel hoped to make A2-type milk products available to its Dutch supermarket customers this northern summer and was considering exporting this product to China. None of the companies had contacted a2 Milk about their product launches.

An a2 Milk spokesman said its patents, coupled with a suite of brands and trademarks, continued to provide the company with exclusive rights to the production and sale of the a2 Milk brand of A1-protein-free milk for a range of beneficial uses. The company recognised that as the A1-proteinfree concept became more widely understood, other parties would try to benefit from it, he said. He agreed with First NZ Capital this could be regarded as an endorsement of the concept. But the a2 Milk Company’s reputation and its IP protection meant rival companies would not be entitled to infringe on the company’s rights, “and will face clear and wide-ranging restrictions on market initiatives and communication”. In mid-June, a2 Milk updated its forecasts and assured investors it continued to perform strongly. Based on a review of its unaudited financial results to May 31, continuation of recent trading performance and no material change in market conditions in June, it forecast group revenue in the $350-$360 million range and group operating earnings (before interest, taxes, depreciation and amortisation) of $52-$54m for the 2016 financial year. Source : www.farmersweekly.co.nz

Breeding better cows Cheyenne Stein

n the late 1970s when college basketball selectors were searching for their next superstar of the game, there would have been thousands of people to choose from. They were all hard-working with great skills and determined, but not all of them would have gone as far as Michael Jordan. That’s because there’s a ceiling on our ability to perform, a ceiling predetermined by our genetics. The same goes for cows. Melissa Stephen, genetic evaluation developer at DairyNZ, spoke at this year’s DairyNZ Farmers Forum and says the key to continuing genetic improvement is selecting cows that are going to get more out of the resources made available to them. “You have a certain level of resources, you might be grass-based or feed supplement, you might be good at managing fertility, but when it comes to your herd, you want the ones who are going to give you the most back from what you are able to put in them and year after year you want this to be improving – this is genetic improvement.” In the national herd, genetic gain is increasing by about $10 a cow, a year. on an average 400-cow herd that’s just under $5000 per year. Genetic improvement accumulates over time when high genetic merit animals are brought into a herd. They bring more to the herd over their lifetime and, after they die, in the form of their heifer replacements. It is estimated this accumulation is about $250,000 a herd over the past 10 years. That’s worth $3.1 billion to the industry as a whole. What’s driving an increasing profitability in our cows? “We all know that it isn’t just milksolids that drive profit. If you’re getting another kilogram of milksolids, but your animal is also 3kg heavier for that milksolids, that’s a false economy.” In order to have true profitability, there needs to be balanced gain across a range of different traits. This is where Breeding Worth (BW) comes

into play. It allows animals to be ranked across a number of different traits that are of economic importance. From February this year, there were eight traits included in the BW index, with body condition Score (BCS) being the most important. Take-home messages We have come a long way! BW is an effective tool but it needs reliable data Small changes on farm can drive your genetic gain Be careful with calving records Measure cow performance Aim high for your six-week in-calf rate (more calves = more heifers = more choice)

wasn’t included in the BW and ground was being lost in terms of improvement. In 2002, fertility was added to the index, which resulted in a turnaround, and gains started to be made. When breeding for BW, farmers need to be really sure cows with high BW are actually going to be more profitable, Stephen says. “Cows who rank highly in BW should be more profitable. It’s hard to assess across the national herd because of the variation in management and feeding systems on farms. Although animals have a ceiling on their performance, how close they get to that ceiling largely depends on their inputs and environment.” In a study that was part of validating BW, DairyNZ looked at a group of 1500 2005-born Friesian cows from Friesian herds in their fourth lactation.

“We had good evidence that BCS had a direct economic value to farmers and had good data to create a genetic estimation to the trait meaning it could be added.” The ratings on these traits are market-driven. For example milksolids, protein, fat and volume values come directly from Fonterra. “As you can imagine that comes with a challenge as we are in a really volatile industry so profit drivers can change drastically year-to-year, and having an index system that yo-yos from one year to the next isn’t beneficial when you’re in a longterm game like genetic improvement. “To help mitigate this fluctuation, a five-year rolling average is used for most traits. However, this won’t mitigate changes entirely. Values are updated every year in February, which is important because as the market values for these traits change, we need to adjust our breeding direction in response. We don’t want drastic changes, but we do need to respond.” Index-based selection like BW is a really powerful tool for the industry, and a good example of this can be seen when looking at the fertility trait. In the late 1990s, the national herd was in a slide in terms of genetic merit and fertility, because it

“The results were positive; we ended up with a difference in BW of the top 20% and bottom 20% of $130. The top 20% were of an average 100 BW, and the bottom 20% around -30 BW. What we found was the higher BW cows were almost four days quicker to calve, were almost five days quicker to be mated and on average produced 36kg more milksolids.” What can you do in your herd to drive those gains faster? “It comes down to choosing the highest ranking animals and breeding from them. To be able to do that you need to have two things – room to pick and choose, and good data. The strength of BW is in the data behind it. Not every BW is as accurate as the next. The index is reported with an associated reliability, which indicates how likely the index is to change as extra information is gathered. “When you calve a cow, you create a connection

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between the calf, its mother, its father and the grandparents. Once the connections have been made it’s like a sort of data flow pathway. Data from the calf’s parents (ancestry information) flows down to the calf, which we don’t have information for yet until she starts producing.” For a calf, with no production records to use, BW is based on her ancestral information, making parent recording crucial. “In our national herd, parent recording isn’t as good as it could be. We estimate that 20% of cows in the national herd are mis-recorded to their parents. That can undermine the accuracy of the BW, so parentage records are the most important thing you can do on farm to make your BW accurate. “ Measuring animal performance is a key factor in having good data about your animals, because almost all data collected on farm flows into BW in some way. Herd testing, for example, flows in to protein, fat and volume BW, recording timings of mating and calving flows into fertility. “Although some of these measurements come at a cost, things like recording timings of matings and calvings, aside from labour costs and software, are virtually free, and you can still get a lot of value out of it for not much to spend.” As well as data, having room to pick and choose is key to genetic improvement. With a large bull team at farmers’ disposal, there is plenty of room to pick and choose bulls, but cows are a bit trickier. “With the average herd at around 400 cows, we need replacements from 20% of those and they need to be female. So we know that half of those are going to be bulls, so we actually need elite calves from 40% of the herd to get out 20% elite heifers. Allowing for cows not getting in-calf to AI or at all, you actually end up having to aim for getting elite heifers out of most of your herd. cheyenne.stein@nzx.com Source :www.farmersweekly.co.nz

Vol. 1, Issue 04 - August - September - 2016

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27 Vol. 1, Issue 04 - August - September - 2016

ARTICLE

How to Start a Milk Collection Centre

Rykie Visser, export & district sales manager : DeLaval

ransporting milk can be problem. Milk collection centres seem to be the first step in growing production among subsistence dairy farmers. Many success stories around the world indicate how village collection centres can lead to social upliftment and growth in rural dairy production areas. However, it is important to follow basic guidelines and seek the correct advice before setting up a collection centre. Once the milk from several group members is collected at a central location, the milk can be processed or transported to processing centres or markets. Starting a centre Potential producers should decide how many collection centres are need and where the sites should be. Many factors influence this decision. This includes: • The number of milk producers in the collection area • Milk volume of each producer • Total milk volume • Time to transport milk to the collection centre • Distance from members to the centre • Distance from the centre to the processing centre or market • Frequency of milk collection (once or twice per day) Selecting a site If the group of producers plans to process the milk in the future, you might want to select a site that can also be used as a processing centre. In this case it is essential that electricity is available. Hygiene is very important, it will affect the end-quality, for this reason, one should use aluminium / SS cans

instead of plastic containers. Construction Whether you are going to construct a building or shed depends on the funds available. An open shed cover is often sufficient for collecting the milk, smple testing and transporting it to the processing centre. If you want to construct a building, it is best if the floor has hard, washable concrete surface. If your group plans to expand its activities in the future and wants to include milk processing, it might want to construct a building that can also be used for this purpose. Cleaning and disinfection There is a difference between cleaning and disinfection. Cleaning removes materials such as dirt and any residues of milk. Disinfection kills most harmful bacteria.In case of containers used in milk collection both are veery important. To achieve satisfactory level rinse with cold water first, then scrub with a brush and warm water containing detergent. Rinse again with cold water. Sterilise with boiling water (or use disinfecting solutions like hypochlorite) and dry the cans on a drying rack, preferably in the sun. Preservation Milk should be cooled immediately after milking. It should be cooled to 4 degree Centigrate within three hours after collection and should be kept as cold as possible before processing. The best temperature to keep the milk at is 4 degree C. However, in most developing countries this requires some kind of cooling equipment. Milk cooling tanks, depending on the volumes of milk to be kept, are the preferable method. Transport There are many ways to transport milk, such as by

truck, bicycle, or on foot. The group of producers has to decide on the most appropriate way to transport milk in order to keep the transport costs as low as possible. The advantage of transporting milk in small containers is that poor-quality milk is not mixed with good milk. Transport from the farm to the collection centre, processing centre or factory should always be as quick as possible to prevent to spoilage. Hygienic milk transport is also important. Testing for quality When milk arrives at the collection centre, information is needed on the milk. This information could be quantity, quality, hygiene, composition, check on adulteration and so forth. This is needed to determine the amount of money that milk producers will get. The level of information required depends on many factors. Milk testing methods are usually related to the payment system adopted. It is important that the methods are simple and cost-effective.

“organoleptic” tests. It is especially reliable if the person carrying out the tests is experienced. The tester smells the milk, observes the appearance, tastes it if necessary, checks the can for cleanliness, looks for sediment and filters the milk to check its cleanliness. If doubts regarding milk quality arise after the examination, other tests can be done. Milk payment systems The first thing to do before setting a price for the milk is to compile an inventory of prices and payment systems present in the region. Check whether a milk board or governmental department has to approve the milk price. Milk can be priced according to quantity, composition, hygiene or a combination of these criteria. In the interests of equity and in order to promote quality improvement, it is desirable that a payment scheme with quality bonuses is introduced at an early stage. Make sure that the cost of such a payment and testing system is not higher than the advantages gained.

Quality testing can be divided into testing for hygiene and for composition. Testing can become very expensive too. For this reason, one must always balance the costs and benefits of the tests. Make sure that you always clean milk testing equipment thoroughly after use. You can use boiling water for at least one minute, 70% alcohol, or you can hold the equipment in a flame.

Marketing To generate more income from milk production, the group can decide to market the products themselves, as it is easier to access markets as a group. Knowledge of the markets is essential if you want to make profit, and you should gather as much information as possible.

One of the most effective quality tests focuses on taste, smell, visual observation and temperature. In fact, this should always be the first screening of the milk, since it is cheap, quick and does not require any equipment. These tests are also called

It is very important to follow local regulations, like the pasteurization of milk. Raw milk may not be sold to anyone. Contact the local health authorities and get the right advice before deciding to add value to the raw milk.

Dairy Times

28 Vol. 1, Issue 04 - August - September - 2016 Julian Mellentin

ARTICLE

The low-fat fraud I

f you ask a room full of dairy industry executives to raise their arms if they have heard of Ancel Keys, it’s rare for more than one or two people to respond. That’s a pity, because he is the reason why your company markets lowfat yogurts and low-fat milks. Today they make up a large part of dairy sales. But 20 years from now their sales will be in decline as people switch back to full-fat, also because of Ancel Keys. For 30 years, consumer beliefs, new product development efforts and food industry strategy have lived under a scientific orthodoxy, which held that saturated fats in foods increased the risk of

death from heart disease. Surprisingly few people in our industry realise that the focus on reducing fat in foods was the result of the efforts of just one man, whose work is increasingly discredited. Years lost One new revelation after another paint a picture of the misleading of western consumers for nearly half a century by proponents of the low-fat hypothesis. The latest development came in April 2016, when the British Medical Journal (BMJ) featured some never-before-published data undermining a seminal research study from 40 years earlier that, back then, had helped galvanise the negative consensus around saturated fats contributed significantly to the modern scourge of obesity

and Type 2 diabetes instead of mitigating those problems. The institutional disdain for saturated fats that took hold across the western world had the effect of encouraging consumers to eat carbohydrates instead of fats – at least 25% more since the early 1970s. And because carbs break down into glucose, which causes the body to release insulin, high carbohydrate consumption actually has emerged as a huge culprit in obesity, Type 2 diabetes and, over time, heart disease. And the inertia behind the bad science keeps creating more bad science: the new Eatwell guidelines issued in early 2016 by the UK government body called Public Health England, for instance, almost halve the previous recommended daily intake of dairy products because of concerns about fats. Some nutritionists today blame Big Food for flooding the American diet with high-carb and low-fat foods, especially processed-food giants such as General Mills and Kellogg. They were just following the gold standard of the government, and the government was going by what. The study, titled Re-evaluation of the traditional diet-heart hypothesis: analysis of recovered data from Minnesota Coronary Experiment (1968-73), (BMJ 2016; 353:i1246), looked at a randomized trial, using 9,423 people, which had been designed to test whether replacement of saturated fat with vegetable oil reduced coronary heart disease and death by lowering serum cholesterol. The researchers from the US National Institutes of Health (NIH), an agency of the US Department of Health, as well as a number of universities, recovered data that had been collected during the study but never published. This data was analysed according to hypotheses specified back in the 1960s by the original investigators. The findings are clear: 1. Although the intervention did lower blood cholesterol in the subjects, it did not translate to lower risk of death. 2. In fact, the people who had the greatest reductions in cholesterol had a higher – not lower – risk of death. This adds to the ever-growing pile of evidence undermining the credibility of the science promoted by Keys, the father of the low-fat hypothesis and the original lead researcher in the flawed Minnesota study. Keys flawed In the 1950s Ancel Keys, a scientist at the University of Minnesota, relentlessly championed the idea that saturated fats raise serum cholesterol in the blood and, as a result, cause heart attacks and increased risk of death. Keys was in a prime position to promote his idea because he had led the ‘Seven Countries’ study of 13,000 men in seven countries, which ostensibly linked heart disease to diet. In 1961 Keys secured a position on the nutrition committee of the American Heart Association (AHA), whose dietary guidelines were considered the scientific community said – and at the

Dairy Times

time they were relying heavily on flawed studies. Bring back full The latest revelation in the BMJ closely followed the release of a much more recent study in Circulation, another medical journal, in which consumption of full fat dairy, compared with eating lower fat dairy products, cut the risk of getting diabetes by 46% during the study period among a group of more than 3,300 adults. “The science around milk fat and whole milk dairy products has tremendously evolved to the point where we can certainly say strongly that dairy products don’t cause heart disease – even whole milk dairy products – and research is emerging now which shows there might be some benefit to milk-fat consumption,” said Greg Miller, chief science officer of the National Dairy Council. Time lost It’ll take some time before the momentum behind a half-century of bad science on saturated fats fully swings the other way. Industry has got into the habit to call it a gold standard at that time. Soon after, the AHA issued its first-ever guidelines targeting saturated fats and over the next 20 years the alleged evils of saturated fats became the new orthodoxy. We now know that what Keys’ studies – from the Seven Countries to the Minnesota Coronary Experiment – all had in common was that they breached several basic scientific norms. In the Seven study, for example, he looked at more countries than just seven, but selected only those compatible with his hypothesis. France was excluded – a land of high fat consumption but low heart disease – as well as other countries where people consumed a lot of fat yet didn't suffer from high rates of heart disease. Bad science Keys appear to have promulgated flawed science. The exact reasons are lost to history, but his highprofile advocacy of a low-fat diet meant the now long-deceased scientist featured on the cover of Time magazine in 1961. A half-century of false orthodoxy identified animal fats as the biggest villain in the modern diet, contributed to a harmful turn toward high-carbohydrate diets, dictated an incorrect mainstream approach to nutritional advice and regulation, compelled the food and beverage business to emphasize low-fat products that comprised a poor solution to a misdiagnosed problem. It resulted in the ban of whole milk in school lunches, and arguably Ulating to every demand from health lobbyists and government. Those demands have grown over time – yet despite the industry’s compliance with them, resulting in the removal of fat from tens of thousands of products, the food industry continues to take the blame for poor public health. And it is uniquely the food industry that is blamed – makers of computers and video games are not publicly berated for encouraging sedentary lifestyles, nor are city governments lambasted for making it necessary for people to drive rather than walk or cycle. The exposing of the scientific void at the heart of public health advice to consume low-fat dairy suggests that, while responsible companies should continue to listen to what public health officials have to say, they should not be so compliant. It is time to reject many of the demands of public health lobbyists. We are at a turning point.

Julian Mellentin is director of the Centre for Food & Health Studies, a London think tank. E-mail him via suzanne@ bellpublishing.com. Source: www.dairyindustries.com

29 Vol. 1, Issue 04 - August - September - 2016

Dairy Times

30 Vol. 1, Issue 04 - August - September - 2016

INTERNATIONAL NEWS

For More nutritious milk keep cows happy

ant to improve the health of dairy cows, and keep the milk flowing keep them happy as the happy cows produce more nutritious milk with higher levels of calcium, new research suggests. A team of researchers led by Laura Hernandez from the University of Wisconsin-Madison in the US investigated the potential for serotonin (a naturally occurring chemical commonly associated with feelings of happiness) to increase calcium levels in both the milk and blood of dairy cows. Daily infusions with a chemical commonly associated with feelings of happiness were shown to increase calcium levels in the blood of Holstein cows and the milk of Jersey cows that had just given birth.

The results, published in the Journal of Endocrinology, could lead to a better understanding of how to improve the health of dairy cows, and keep the milk flowing. Demand is high for milk rich in calcium and dairy products such as milk, cheese and yoghurt are primary sources of the mineral. But this demand can take its toll on milk-producing cows: Roughly 5-10% of the North American dairy cow population suffers from hypocalcaemia in which calcium levels are low. The risk of this disease is particularly high immediately before and after cows give birth. Hypocalcaemia is considered a major health event in the life of a cow. It is associated with immunological and digestive problems, decreased

pregnancy rates and longer intervals between pregnancies. These all pose a problem for dairy farmers, whose profitability depends upon regular pregnancies and a high-yield of calcium-rich milk. To investigate the potential for serotonin to increase calcium levels in both the milk and blood of dairy cows, the research team infused a chemical that converts to serotonin into 24 dairy cows, in the run up to giving birth. Half the cows were Jersey and half were Holstein, two of the most common breeds. Calcium levels in both the milk and circulating blood were measured throughout the experiment. While serotonin improved the overall calcium status in both breeds, this was brought about in opposite ways. Treated Holstein cows had higher

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levels of calcium in their blood, but lower calcium in their milk (compared to controls). The reverse was true in treated Jersey cows and the higher milk calcium levels were particularly obvious in Jerseys at day 30 of lactation -- suggesting a role for serotonin in maintaining levels throughout lactation. "By studying two breeds we were able to see that regulation of calcium levels is different between the two," says Laura Hernandez head of research team. "Serotonin raised blood calcium in the Holsteins, and milk calcium in the Jerseys. We should also note that serotonin treatment had no effect on milk yield, feed intake or on levels of hormones required for lactation", she added. The next steps are to investigate the molecular mechanism by which serotonin regulates calcium levels, and how this varies between breeds. "We would also like to work on the possibility of using serotonin as a preventative measure for hypocalcaemia in dairy cows," continues Laura Hernandez, "That would allow dairy farmers to maintain the profitability of their businesses, while making sure their cows stay healthy and produce nutritious milk."

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31 Vol. 1, Issue 04 - August - September - 2016

INTERNATIONAL NEWS

Inflated Canadian Industrial milk price will affect dairy prices

fter a price hike by 2.2 percent earlier this year Canadian Dairy Commission is again going to inflate the price of industrial milk for the second time in a year which can affect the prices of dairy products. Commision is inflating price by 2.75 per cent as of Sept. 1, on top of a 2.2 per cent increase that took effect in February. While the price of industrial milk does not directly affect the price of milk at the supermarket, industry experts say other dairy products – including cheese, yogurt and ice cream – will likely get a little bit more costly. According to the dairy commission, the increase is a move to help dairy farmers, who have been seeing less revenue for their products due to decreasing prices in other parts of the world. The latest increase works out to about four cents per litre of milk more for producers. “It makes a big difference for dairy farmers as well as supermarket owners,” said dairy commission spokesperson Chantal Paul. Carmine Caccioppoli, who co-owns the Vincenzo’s grocery store in Waterloo, says his store increased some dairy prices after the February increase, and will try to absorb the September increase without doing the same. “People blame us for the price increases so it’s always difficult for us to put prices up,” he said. Caccioppoli says cheese is one of the products

where the increase is most noticeable, with consumers reacting by buying less of it. “It’s just become a rich man’s product now,” he said. Rising dairy prices are also a concern for restaurant owners. Restaurants Canada vicepresident Pierre Cadieux says the restaurant industry purchases $2.7 billion worth of dairy products each year, and is “frustrated” at passing price increases on to diners. He said that restaurant owners’ main concern isn’t with farmers,

but with the system that regulates dairy prices. “In a freer international trade environment, in a slow-growth economy, can we afford not to have access to lower international prices?” he said. Paul says farmers are getting “good news” from other parts of the dairy sector, as Canadian consumers are buying more butter and other products with higher milk fat contents. Other dairy trends cited by Paul include a long-term increase in the demand for cream, as well as Canadians moving from lowfat yogurts to other varieties.

European dairy struggling with low milk price crisis

uropean farmers are divided in trying to find a solution to the dairy crisis that's engulfing farmers around the globe. It's the second year of low prices for farmers, with large dairy sectors struggling to cope. Some countries are calling for more subsidies, while others are calling for lower production as dairy farmers continue to exit the industry. German dairy farmer Christoph Lupshen isn't shy about telling people how hard it is to be a dairy farmer in Europe. "Right now I earn nothing, every morning I go into the barn I must take some money with me," he said. "It's terrible but it's true." In Northern Ireland, which exports 80 per cent of its dairy, journalist Chris McCulloch says "many are giving up". Unfortunately the next year ahead for some of them means the end of it, seriously means the end of it because they've said "[the] first year they could cope but this year they can't, it's just impossible. If you look in the agricultural press, every week there are some more dairy herds in the thing for sale. From what I heard from a local estate agent recently, he had another 18 herds on his books for this year, to be sold or dispersed." In the Netherlands, the majority of dairy farmers are getting 25 Euro cents (37 Australian cents) per litre, which is still seen as below cost of production. Sjoerd Hofstee, a journalist from the Netherlands, said his country was traditionally a richer dairying nation. But he said farmers in his country were happy to do it tough as it might make the industry easier in the long run. "A lot of farmers, they say we struggle, this is not fun, not good but to be honest it's just the market and maybe we need it to clean it up a bit." Mr Lupschen agreed the only way to fix the problems of the world market was to lower production - something he was happy for his country to lead the way with. "We must start [lowering production] by ourselves", he said.

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32 Vol. 1, Issue 04 - August - September - 2016

Dairy Times

33 Vol. 1, Issue 04 - August - September - 2016

INTERNATIONAL NEWS

International Dairy Expo & Summit China 2016

20 members’ delegation from Indian Dairy and Cattle industries visited the International Dairy Expo & Summit 2016 held in Harbin the Ice City of China from 22 – 24 April 2016. The delegation comprised Indian dairymen from all over India along with Dairy machinery manufacturers and dealers, experts in animal healthcare and suppliers of cattle feed. The delegation was organised by In ORBIT Tours Pvt. Ltd. and led by Mr. Om Prakash – Director In ORBIT, who has been organising Indian Dairy

UHT market set for double digit growth

industry delegations every year from 2008 i.e. 9 years non-stop. On arrival in Harbin City, the delegation was invited as official guests of Govt. of Heilongjiang Province’s official Banquet which was attended by Chinese Ministers, Ambassadors and Consul Generals of many countries and leading personalities from international dairy industry. The Banquet concluded with a symphony performance by Chinese and international musicians. The Indian delegation was also invited to the Official Opening Ceremony which was attended by the world personalities and exhibitors of International Dairy Expo & Summit 2016. The organisors welcomed the In ORBIT’s Indian delegation and presented a kit containing the Catalogue of Exhibitors and informative materials along with Chinese gift. Many members of the Indian delegation initiated business enquiries with international suppliers of plant & machinery. Some members sought representation in India. The Indian delegation also visited China’s largest Dairy Plant i.e.

1. Mengniu Dairy Plant in Beijing. This group of dairies commands 25% share of China’s Milk, Yoghurt, Milk Powder, and Flavoured Milk Products. The Indian delegation also visited commercial centers in Beijing, Shanghai and Harbin. The members expressed their satisfaction and thanked Mr. Om Prakash, for the extensive arrangements made for their grand welcome, technical visits to dairy factories and for the Indian food in all cities of China, which made them feel at home.

he global UHT milk market was valued at US$60.8 billion in 2012 and is expected to grow at a CAGR of 12.8% from 2013 to 2019, to reach an estimated value of $137.7 billion (€121.2bn) in 2019, according to a market report from Persistence Market Research. Europe had the largest share in the UHT milk market in 2012, but the market growth in Asia Pacific is expected to make it the global leader by 2019. Less refrigeration space is making UHT milk the best alternative of preservation. Fresh milk needs refrigeration to prevent it from being spoiled by bacteria. Even under refrigeration, fresh milk can be preserved for only a few days. Cold chains or chill chains are required throughout the procurement of milk from dairy farms until it is stored, processed, packed and delivered to the customers. India and China, two of the largest consumers of milk globally, lack chill chains or refrigeration chains. Poor road infrastructure in India remains another restraint in the development of chill chains in the country. Increasing influence of western culture is also escalating demand for UHT milk market globally. Changing consumer habits in favour of packaged food in populous Asian countries are increasing the consumption of UHT milk in the region. This has also resulted in a rise in the apartment culture in these countries, where people generally stock packaged food and beverage items. In western countries, consumers prefer to stock packaged and processed food items due to their longevity and ease of use. The degree of competition is quite high in the UHT milk market. Companies in the market are engaged in price wars as reduction in the price of UHT milk by one company forces other market players to reduce their prices. Moreover, supermarkets and hypermarkets are the major distribution channels for UHT milk. These retail chains prefer products with the lowest price on offer, thus increasing competitiveness in the market. Some retail chains have also developed their own brands in partnership with small dairy processors. Private label companies have a large share in the European markets.

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Vol. 1, Issue 04 - August - September - 2016

PRE SHOW REPORT

One & Only Show For

Indian Ice Cream Industry-IICE 2016 Indian Ice Cream Congress 2016, 28-29 Sep, Noida

ndian Ice-cream Expo (IICE) is one of the most significant events in the global ice-cream industry, only one of the three of its kind in the world and South-Asia’s only gathering of ice-cream manufacturers. Hundreds of ice cream manufacturers from different parts of the country and world exchange their views on this platform. This is the 6th edition of IICE and it is growing with 100% rate of growth year on year. This is not because we have done something very different but we have actually filled the vacuum in this segment by organizing an event for ice cream industry. Last year in Bangalore IICE 2015 received 2123 visitors, 106 exhibitors and over 618 ice cream companies. IICE 2016 is expected to be bigger in size than all previous shows. Indian Ice Cream sector has become one of the faster growing sectors in Indian food processing industry. Investment in technologies and new trends has broken all previous records in the last 3-4 years.

Companies providing freezing and handling machines, packaging machines and materials, equipment and component suppliers, cone manufacturers, food ingredients companies, cold chain companies especially cold rooms and deep freezers; consultancy services, traders and stockists, raw material suppliers, milk powder and chocolate suppliers, ice cream bands looking for expansions will participate as exhibitors in the show. We are expecting around 200 exhibitors and 3000+ visitors in 2016 at Noida, Delhi-NCR show.

About Indian Ice Cream Industry:

Indian ice cream industry is one of the fastest growing segments of the dairy or food processing industry in India at the moment. Broadly we can see this at two levels, one is organised which is about Rs 10,000 cr and two is unroganised which is unaccounted and experts say that it is as big as organised sector. All the major ice cream companies came together

and established ‘Indian Ice-Cream Manufacturers Association’-IICMA in 2011 as the National Association. Ever since, IICMA has been leading on all fronts by organising seminars, exhibitions, workshops, meeting with government departments, etc.

transportation and display machinery. Right from the point of processing till the cup or cone ice cream needs continuous cold chain facility. This industry is short of cold chain by about 50%. So this is a green spot for all those who are providing cold chain solutions.

Our per capita consumption is way too low when we compare it with the USA or Australia. It is even lesser than in China or Pakistan as well but we have seen in the past 3-4 years it has doubled from 200ML to 400ML which is a significant development. If we carry on with the same rate of growth will soon we can touch the level of China’s per capita consumption which is around a litre. In India ice cream is considered as a seasonal food product and due to various midwife myths people intend to consume it during in summers only. Where as in other countries ice cream is considered as a daily dessert or outing food. If we are able to break these myths our consumption will automatically increase.

Food safety also has been on top of the agendas of the ice cream processing companies and they have improved significantly processing quality and standards of their products in past few years. Still we need to be vigilant to keep a check on each and every entry and exit of the ice cream processing units.

This growth of 400ML to 1000ML will provide enormous opportunities to the allied segments to grow with the industry. Consumption of chocolate, SMP, additives and machinery is already growing in leaps and bounces but future is even brighter. Allied segment have a challenge in front of them how they cater to this fast growing industry. They also have a challenge to provide good quality machinery in huge numbers along with tons of raw materials to make the ice creams, to provide them good color, flavour and texture also to provide huge amount of primary and secondary packaging to the said industries. There is another area of growth for the allied industry, the cold chain. This is one of the most important aspects of this trade. Without cold chain nothing can be done or planned. Ice cream industry needs huge amount of cold chain machinery,

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In India ice cream industry is mostly regional as there are hundreds of brands focussing only one or two districts or in some case only upto state level. There are very few national brands that are doing business nationally and the major reason behind slow growth is high perishability of ice cream products. In recent times we have seen many companies have improved their supply chain and going beyond the boundaries. Ice cream industry is the biggest victim of bad infrastructure of road and power supply. Due to this, rural India where power comes just for few hours in a day which is not less than 50% of the country’s population is not able to store ice cream for sale on nooks and corners of the inhibited areas. Continuous power supply in these regions will open huge opportunities for ice cream industry to cater all together a new territory for their products. Many international players have also launched their brands nationally with huge investments and tie-ups. This is a very positive trend for the Indian ice cream industry and we see a great future ahead. If the ice cream industry grows consumption of milk and milk products which directly relates with farmers will increase.

Firoz H Naqvi : +91 9867992299 Sameer K: +91 9833325839 Seema Shaikh : +91 8689979988

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35 Vol. 1, Issue 04 - August - September - 2016

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Mr. Devendra Bhai Shah Chairman, Parag Milk Food Pvt. Ltd. Mumbai Dr. J.B. Prajapati Principal & Dean, SMC College of dairy Science,

Mr. H R Dave Deputy M.D Nabard, Mumbai

Dr. B.N. Mathur Former Director, NDRI, Karnal

Dr. G.S. Rajorhia Former Principal Scientist, NDRI, Karnal

Mr. Vivek Nirmal M.D Prabbhat Dairy Ltd. Mumbai

Mr. V.K. Ghoda Sr. Consultant, perfect solution, Vadodaar

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Dr. K.R. Rao Former CGM, Nabard, Hydrabad

Mr. Dileep Dravid M.D Agro dairy & food consultancy services Anand

Dr. Ashok Patel Former Principal Scientist & Head, Dairy Technology, NDRI, Karnal

Mr. Subhash Vaidya CEO Dairy tech consultancy services Mumbai

Mr, Vijay Jailkhani Team Leader, Schreiber dynamix Dairies Pvt. Ltd. Baramati Dr. Trevor Tomkins President.Venture Dairy U.S.A

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Ms. Racheline Levi Team Expert, Adepta, France

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Dr. Mukund Naware Consulant, Mumbai

Dr. Suresh B. Gokhale Director (Research) BAIF Uruli Kanchan, Pune Mr. Nitin Jain Aurum Equity Partners Gudgaon.

EDITOR MARKETING EXECUTIVE PRODUCTION MANAGER GENERAL MANAGER CIRCULATION MANAGER GRAPHIC DESIGNER Firoz H. Naqvi S.H.Hasni Syed Shahnawaz Gyanandra Trivedi Seema Shaikh Naved H.Kazmi 121, 1st Floor, Rassaz, Multiplex, Mira Road (E), Thane -401107. Mob: + 91-09324218405, Tel: +91-22-28115068 /28555069. Email:info@agronfoodprocessing .com, Website :www.agronfoodprocessing.com Printed, Published By -Firoz Haider Naqvi, Printed at: Roller Act Press Services, A-83 Ground Floor, Naraina Industrial Area, Phase -1, New Delhi -110028, Reg Office :103, Amar Jyot Apts, Pooja Nagar, Mira Rd (E) Thane-401107, Delhi Office: F-14/1, Shahin Baugh, Kalandi Kunj Rd, New Delhi -110025 The views expressed in this issue are those of the contributors and not necessarily those of the news paper though every care has been taken to ensure the accuracy and authenticity of information, "Dairy Times" is however not responsible for damages caused by misinterpretation of information expressed and implied with in the pages of this issue. All disputes are to be referred to Mumbai jurisdiction

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