Dairy Times February-March 2016 by Advance Info Media & Events

Launching of The Dairy Times

Dairy Times, A Bi-monthly Newspaper from Advance Info Media & Events

dairy

A Bi-Monthly Newspaper Devoted to Milk, Milk Products & Allied Sectors www.agronfoodprocessing.com

Times

Group Publication of Advance Info Media & Evnets

Vol. 01, Issue 01, February -March,2016 100/-

Tel. : +91 80 3090 2200 E-mail : sonarome@sonarome.com www.sonarome.com

Over 2500 delegates to meet at 44th Dairy Industry A Cream Run for dairy industry for conference 2016: Dr. Parekh next 3 Years: Crisil

'Welcome Delegates to the 44 th DIC'

airy Times Newspaper has an objective to establish a platform for Professional, Scientists, Farmers and Equipment Manufacturers in the field of Dairy and Allied Agro Food Business

to discuss at length on these and contemporary burning issues. The event based on the theme 'Make In India' , is expected to attract around 2500-3000 participants representing academia, researchers, dairy professionals, policy makers, milk producers and farmers from across the country and abroad. The conference would also provide an excellent

Dr. J.V. Parekh

to provide opportunities for the dissemination of knowledge and ideas in Research, Planning, Production, Processing and Marketing, which aims at fulfilling the dream of our Hon’ble Prime Minister of India to promote “Make in India” concept in Dairy Industry. Indian Dairy Industry is poised to become globally competitive and become a giant to capture the International Dairy Market by improving the quality of milk and milk products. However, to achieve this mission, low animal productivity and poor quality of milk at the farm level are the major concerns requiring immediate attention. Through value addition and product diversification by adopting advanced scientific intervention and modern technological processing techniques we may perfect the indigenous technologies to cater to the needs of the local population and improve export prospects. Hence, the conference would provide a unique platform

Industries. Oral presentations, products display and live demonstration of dairy equipments will also feature in this Meet. NDRI technologies will be discussed under the broad themes of Adulteration Detection, Dairy Pathogen Detection, Dairy Processing & Dairy Production etc. Interested Industry Participants are welcome to present and semonstrate their technologies/ products/equipments. The industry participants will also share their experiences / observations and future plan during this session. Inputs received from Industry will be useful for developing new technologies / methods and refinement of the existing technologies / methods. One of the main attractions of the 44th Dairy Industry Conference is the Job Fair, which will be organised on February 18 and 19, 2016.

platform for interaction and sharing of experiences on various related themes. The interactions/ discussions will lead to a solid programme that India can launch to make Indian Dairy Industry globally competitive in the emerging market. On the sideline of the 44th Dairy Industry Conference, “Technology Sharing Business Meet” is being organised. During this event, technologies developed at NDRI would be presented, demonstrated and commercialised to interested entrepreneurs &

Through this job fair prospective employers will have an opportunity to recruit fresh students from different streams of Dairying and Animal & Veterinary Sciences, spread across production, processing and management streams. They will get a platform to meet the students, interact with them and select the best among them for their future recruitment plans. For the students, it will be an opportunity to showcase their competence and strengths before the employers for getting a good job of their choice.

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ndia’s organised dairy sector will see a ‘Cream run’ through 2018 with special focus on valueadded products. The sector will see capacity augmentation to around 1,050 lakh litres per day (LLPD) with an overall capex infusion of around 15,000 crore in next three years, ratings agency Crisil highlighted in its latest report on organised dairy players. Increased disposable income and quality consciousness among the consumers along with greater preference for branded milk and milk products, would drive the growth for organised dairy players, who would see faster growth in next three years as against 22 per cent seen in last five years. Commenting on the report, Anuj Sethi, Director, Crisil Ratings, said, “Nearly a third of the overall capex is expected to be undertaken by the largest domestic dairy player, Gujarat Cooperative Milk Marketing Federation (which sells under the ‘Amul’ brand), through its member cooperatives.” “These expansions will be strategically planned to ensure there is geographical diversification that strengthens milk procurement. The revenue share from the organised segment could rise to 25 per cent by 2018 from 19 per cent in 2015,” the report named ‘Cream Run’ stated. The sector is increasingly becoming attractive for private equity players, as it is ranked among the

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Vol. 1, Issue 01 -February-March - 2016

Editorial

From the Editor's Desk

am happy to announce that in association with Advance Info Media & Events, we are launching our first issue of ‘Dairy Times’, a Bi-monthly newspaper exclusively for the milk and milk products Industry in India. We hope that our newspaper will serve you at its best capacity. We hope to satisfy the readers with national, international news, excerpts from the journals, interviews of expert and success stories of leading businessmen of dairy industry through this newspaper. Not only the international market, but also the Indian market has a lot of opportunities. According to the Annual Report 2014-15 of Department of Animal Husbandry, Dairying & Fisheries Ministry of Agriculture, Government of India, the annual growth of milk production in India has increased 3.54 per cent and 3.97 per cent during 2012-13 and 2013-14 respectively. Some of the recent figures on the dairy and dairy products have encouraged us to think for a devoted newspaper on ‘Dairy'. Indian dairy industry produces largest amount of milk in the world, but the processing of dairy products has not been near to the percentage of the developed world. India accounts for around 17 per cent of the global milk production. It is also one of the largest consumers of dairy products. India’s milk and milk products industry is growing at a rate of 16 per cent and 25 per cent respectively. It needs a media which can update industry regularly on the latest researches, technologies, food safety, processing & packaging, supply-chain management and preservation. The Indian dairy industry significantly offers good opportunities for both domestic and foreign conglomerates/investors for entry and expansion. Foreign companies like Danone and Fonterra have set their foot in the Indian dairy industry, while ITC has plans to foray into this segment in a couple of months. Availability of Liquid Milk, Yoghurt, Butter, Ghee, Paneer, Cheese and Cream has increased on the retail shelves. As compared to India’s big food processing industry, the size of the milk industry is bigger and more organised. We already have more than 20 regular publications for food processing industry, but have only one national magazine from IDA and a few regional media for dairy industry. Editor-in-Chief Dr J V Parekh Email: jvparekh72@yahoo.com

t's indeed a great privilege to work with Dr J V Parekh, who is experienced in the modern-dairy industry for the last five decades. I am grateful for his support. Considering his vast experience and contacts in the dairy stream, I am glad that we are launching 'Dairy Times': A Bi-monthly newspaper covering almost all the aspects of the Indian dairy industry.In this context, we assume that ‘Dairy Times’ will be the first bimonthly newspaper for the entire Indian-subcontinent. Indian dairy industry is growing at a faster pace and there is a growing demand for milk and milk-products in the country. It is estimated that the milk segment would record 15 per cent growth in 2016, while, milk-products would witness 25 per cent growth year-on-year, until 2020. We are encouraged by the figures and sensed the urgency to launch this newspaper, contemplating our 12 years of hardcore journalism in food processing industry. Not only this, India also has more than 20 full-fledged dairy institutes and a number of national and regional dairy co-operatives.However, there is a lack of knowledge with regard to use of latest technologies and the trends in the domain. Globally, a tremendous amount of work has been got through in the dairy sector. Much has to be disseminated to our industry, though the growth of processing milk and milk-products has reached in good numbers in the dairy sector. I see that our 'Dairy Times' would now bridge the gap of information and it would provide a significant leverage to its people to express their thoughts. I hope 'Dairy Times' shall continue its endeavour, while holding up the values and quality of the dairy industry. By maintaining the respect and interest of its readers, the newspaper aspires ultimately to inform their opinion of the sector and to strengthen their commitment to its welfare. Last but not the least, I would like to express my considerable appreciation to all authors of the articles and advertisers in this newspaper. These contributions have required a generous contribution of time and effort. It is this willingness to make the effort to share knowledge, concerns and special insights with the dairy community at large that has made our first edition possible. Firoz H Naqvi Group Editor

44th DIC-CONFERENCE HIGHLIGHTS Day-to-Day Plan

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44th DIC Technical Sessions during Conference Session 1: Shifting from scattered to organized animal farms: Sustainability issues. Session 2: Convenience & Specialty Dairy Foods: Catering the changing demographic demands. Session 3: Balanced feeding of animals for economic milk production. Session 4: Carbon Neutral & Zero Waste Technologies for Indian dairy industry. Session 5: Selecting animals for genes: Revisiting the breeding policy towards genomic selection. Session 6: Milk Quality Assurance: Meeting Consumer Demands by 2030. Session 7: Improving udder health status, modern

vaccines and meeting ‘one health’ standards. Session 8: Globalizing ‘Make-in-India’ Dairy Foods & Equipments: Issues & Challenges Session 9: Supply Chain Management: Traceability issues from farm to fork Session 10: Group Dynamics of Milk Cooperatives, Producer Companies, NeoCooperatives: Sustainability & Profitability Issues. Session 11: World trade volatility: Harmonizing norms & practices. Session 12: HRD plans to make Indian Animal & Dairy Education Future Ready. Special Session: Skill Development in Dairing.

44th DIC Farmers' Sessions during Conference Day 1 (18-Feb. 2016). Theme area: Breeding, Feeding and Health management of animals. Day 2 (19 Feb. 2016). Theme area: Crop production, Organic food, fodder production, soil

health and animal crop relationship. Day 3 (20 Feb. 2016). Theme area: Small dairy production units, Milk processing, Milk pricing system and other policy matter issues.

Business to Business Meeting - February 19, 2016

n the sidelines of the 44th Dairy Industry Conference, “Technology Sharing Business Meet” is being organized. During this event, technologies developed at NDRI would be presented, demonstrate and commercialized to interested entrepreneurs /Industries. Oral presentations, products display and live demonstration of dairy equipment will also feature in this Meet. NDRI technologies will be discussed under the broad themes of Adulteration Detection, Dairy Pathogen Detection, Dairy Processing & Dairy Production etc. Interested Industry Participants are welcome to present and semonstrate their technologies/ products/equipments. The industry participants will also share their experiences / observations and future plan during this session. Inputs received from Industry will be useful for developing new

technologies / methods and refinement of the existing technologies / methods.

Job Fair – February 18 & 19, 2016

One of the main attractions of the 44th Dairy Industry Conference is the Job Fair, which will be organized on February 18 and 19, 2016. Through this job fair prospective employers will have an opportunity to recruit fresh students from different streams of Dairying and Animal & Veterinary Sciences, spread across production, processing and management streams. They will get a platform to meet the students, interact with them and select the best among them for their future recruitment plans. For the students, it will be an opportunity to showcase their competence and strengths before the employers for getting a good job of their choice.

International Trade fair International Trade fair concurrent to 44th DIC scheduled during February 18-20, 2016 at National Dairy Research Institute (NDRI), Karnal, Haryana, organized by Koelnmesse YA Tradefair along with Indian Dairy Association (North Zone) is receiving a very good response.

All the stake holders of the dairy industry are invited to be a part of this dedicated dairy industry event.

The International Trade fair concurrent to 44th DIC will have over 100 companies displaying their products and services offered to the dairy industry and will be spread over an exhibition area of approximately 10,000 sq.mt.

International Trade fair concurrent to 44th DIC at National Dairy Research Institute (NDRI), Karnal, Haryana is organised by Koelnmesse YA Tradefair along with Indian Dairy Association (North Zone) .

Dairy Times

A unique feature of this Conference would be organization of Dr. V. Kurien Memorial Lecture.

Vol. 1, Issue 01 -February-March - 2016

Messages

Dairy Times, A Bi-monthly Newspaper from Advance Info Media & Events

dairy

A Bi-Monthly Newspaper Devoted to Milk, Milk Products & Allied Sectors www.agronfoodprocessing.com

Times

Group Publication of Advance Info Media & Evnets

Vol. 01, Issue 01, February -March,2016 100/-

'Industry Stalwarts' Speak

Advisory Board Members -'Dairy Times'

Mr. R. P. Banerjee, Chairman, SSP Pvt. Ltd., Faridabad. Mr. B. M. Vyas, Former Managing Director, Amul, Anand Mr. H R Dave, Deputy Managing Director, NABARD, Mumbai. Dr. G.S. Rajorhia, Former Principal Scientist, NDRI, Karnal. Dr. Harsev Singh, Chief Executive Officer, Reliance Dairy Foods Limited, New Delhi. Ms. Racheline Levi, Team expert, ADEPTA, France. Dr. Mukund Naware, Consultant, Mumbai. Mr. Devendrabhai Shah, Chairman, Parag Milk Foods Pvt. Ltd.Mumbai Dr. B. N. Mathur, Former Director, NDRI, Karnal. Mr. Vivek Nirmal, Managing Director, Prabhat Dairy Ltd., Mumbai. Dr. K R Rao, Former CGM, NABARD, Hyderabad. Mr. Subhash Vaidya, CEO Dairy tech Consultancy Services, Mumbai Dr. Suresh B Gokhale, Director (Research), BAIF Uruli Kanchan, Pune Dr. J. B. Prajapati, Principal & Dean, SMC College of Dairy Science, Anand Agricultural University, Anand. Mr. V. K. Ghoda, Sr. Consultant, Perfect Solutions, Vadodara. Mr. Dileep Dravid, Managing Director, Agro Dairy & Food-Consultancy Services, Anand Mr. Vijay Jailkhani, Team Leader, Schreiber Dynamix Dairies Pvt. Ltd., Baramati. Dr. Satish Kulkarni, Consultant, Bangalore. Mr. Nitin Jain, Aurum Equity Partners, Gudgaon. Dr. Ashok Patel, Former Principal Scientist & Head, Dairy Technology, NDRI, Karnal.

It gives me immense pleasure to know about the launching of Bi-monthly news paper of Dairy Times. This Bi-monthly news paper will help allied sectors of the Dairy industry to communicate about their latest development and potential growth. I take this opportunity to convey my greetings and congratulations to all members of this Bi-monthly news paper Dairy-Times for their activities and endeavor. My best wishes also for Dairy Times to be a grand success and useful to one and all. R P Banerjee Chairman, SSP Pvt. Ltd, Faridabad It is a matter of great pleasure that you have decided to publish a Bi-monthly dairy news paper The decision of publishing Bi-monthly dairy news paper is very apt and timely. Dairy industry of India has made unparalleled progress in the last few decades. But even higher growth in production, processing, marketing, retailing and consumption is sure to take place in the coming decades. All involved in availing this enormous opportunity will need a variety of information and I am sure your Bi-monthly will fill the gap. BM Vyas Ex - MD Amul, Anand

India has a unique milk production and marketing system, as compared to the west, where large commercial units are preferred, most of the milk is produced by small, marginal farmers and landless labourers in the country. A study conducted by FAO in the country indicates that small milk producers are efficient and profitable provided there is an assured market for the output irrespective of the quantum of surplus milk and availability of other inputs and services. In India, about 85% of the total land holdings comprise small and marginal farmers. Dairying in the form of 1-2 animals is integral part of these farm holdings mainly for nutrition and manure. Small herd size is mainly due to non-availability of labour, inadequate availability of feed and fodder and lack of profitable marketing avenues. Many of these small producers can have higher income generation through this activity provided basic infrastructure related to milk production and milk marketing is available for their surplus. There is a need to give impetus on improvements of farm systems of the enterprising dairy producers at existing herd size through breed improvement and better scientific animal management practices. H R Dave, Dy . Managing Director, NABARD, Mumbai

'Dairy Times' is expected to serve as a strong vehicle for dissemination of new knowledge among all the stake holders viz. milk producers, professionals, planners, scientists, academia and dairy industry. It must help the dairymen of India in achieving their aspirations, missions and opportunities in the complex and competitive environment. The newspaper may also focus on the issues related with sustainability, socioeconomic status and well-being of rural producers, processors and consumers in entire dairy value chain. It should motivate the sector to become increasingly responsible for production and distribution of safe and healthy products. The Journal may undertake the promotion of entrepreneurship development among unemployed rural youths for boosting growth of dairying in not so well identified locations. G.S. RAJORHIA, Former Principal Scientist, NDRI, Karnal

I am delighted to know that Dr. J V Parekh and Mr. Firoz H Naqvi of Advance Infomedia are planning to launch 'Dairy Times' Bi-monthly newspaper exclusively for the dairy industry in India. It is indeed a noble idea for communication within and outside the dairy fraternity. In fact, the industry scenario is changing too fast to be reported on bi-monthly basis, but it is still a good to start with proposed schedule. It will definitely provide a platform to those who have been looking to voice the growth of this industry. Surely, it will also help allied sectors of the dairy industry to communicate about their latest developments and its potential for growth. On this occasion, I would like to convey my heartfelt congratulations to you and your team to take up this noble cause in the interest of Indian dairy industry which nobody has thought so far. It is going to be a rough ride at first, but I am sure, the rewards will be more than adequate. Many dream, few dare and very few actually succeed. You have always been the one who had lot of determination and focus. Dr. Harsev Singh, Chief Executive Officer, Reliance Retail Limited Reliance Dairy Foods, New Delhi.

It is with enthusiasm that I join the board of advisory of this new magazine. We will conduct a process of reflection, discussion and research to give each of you the opportunity to better understand the technologies and innovations in the field of dairy industry, to facilitate exchanges and connections between companies from different countries. We will try to bring the magazine on top of the quality to which you are entitled. Between a newspaper and its readers is a mutual attraction, we are at the beginning of the adventure and need your support and encouragement. You'll also be there to react and make the dialogue alive. Rcheline Levi, Team expert, ADEPTA, France With increasing incomes and changes in life style of the people, the Indian dairy industry has to meet the growing demand for milk and high expectations of its quality. This is possible not only when the happenings in the dairy world are reported and highlighted, but also when the shortcomings in our approaches are brought to the notice of the dairymen and other stake holders of the industry through journalism. This will help the systems and sub-systems of the value-chain to check-up and gearup. In this context, the dairy magazines have a definite role to play and fill in the gaps in knowledge and awareness and take the dairy industry forward on the path of success. I welcome this publication to fulfill this timely need and extend my best wishes in this venture. Mukund Naware Dairy Adviser, Mumbai

Dairy Times

Vol. 1, Issue 01 -February-March - 2016

Messages

In anticipation of the rapid growth in the demand for milk is set to touch 200 mn tonnes by 2022 from 132 mn tonnes in 2013, a number of entrepreneurs are vying to enter the dairy industry. Companies such as Coke, ITC and PepsiCo have plans to enter dairy segment. The sector has also seen major PE investments. There is an increasing trend towards the value-added dairy products .Share of value added products in milk and milk derivatives segment is set to grow at 25% Y-o-Y till 2019-20. Value-added dairy products constitute around 20% of total dairy market. In such a scenario the entry of a Dairy News periodical covering latest news and information covering new innovations and ideas on the dairy industry will serve as a communicator to the dairy industry audience. B N Mathur, Former Director, NDRI, Karnal.

I wish that Dairy Times will cover production, procurement, processing and marketing of milk and milk products along with new technologies, innovations and products developed for the benefit of all the stake holders involved in the sector. It may help in bridging the gap between the entrepreneurs, Industry and equipment manufacturers. I extend my warm greetings and best wishes for all success on the eve of launching the Bi-monthly news paper 'Dairy Times' for the benefit of all the stake holders in the sector. Dr K R Rao Former CGM, NABARD,Hyderabad The Dairy Sector in India has shown tremendous growth over the last few decades and time has come now that we should enter export market of dairy products by adoption of new technologies, educating farmers, milk processors, and handlers in the right directions. I am glad that Dr J.V. Parekh and Mr. Firoz Naqvi are bringing 'Dairy Times', a Bi-monthly news Paper which I hope will help to all concerned in the dairy industry, to achieve the goals. Subhash Vaidya CEO Dairytech Consultancy Services, Mumbai

I am glad to know that 'Dairy Times' a Bi-monthly news paper is being launched with joint efforts of Mr. Firoz H Naqvi and Dr J V Parekh. Considering fast expansion of dairy trade and industry and its important contribution in country’s commerce necessitates wide visibility. Availability of newspapers for augmenting this segment will provide a platform to those who have been looking to voice the growth of this industry. I extend my greetings and good wishes for the 'First Edition' of this newspaper for the month of Feb/Mar 2016. Dr. Suresh B Gokhale Director Research, BAIF Uruli Kanchan Pune

I am happy to learn that Mr Firoz Naqvi of Advance Infomedia and Dr J V Parekh, a renowned dairy consultant of India are launching Dairy Times, a Bi-monthly newspaper for the dairy industry in India. Dairy industry is prospering in India. Only 20-25% of milk produced in India is processed by the organised sector and that is a challenge for all of us to increase it sizably. This gives lot of opportunities to explore better technologies, packaging materials, logistics and so on. I wish that this publication will be able to highlight all the dimensions related to Indian dairy industry and it can become an instrument to promote it. Let science and technology related to milk and milk products help us to live happy and healthy on this earth. Jashbhai B. Prajapati Principal & Dean, SMC College of Dairy Science Coordinator, SASNET– Fermented Foods Chairman, Vidya Dairy, Anand Vice Chairman, IDA, Gujarat State Chapter Anand Agricultural University, Anand

The initiative of Advance Infomedia and Dr. J V Parekh is laudable. There is a growing need of newspaper, magazines and journals dedicated to the dairy sector of India with its global presence of 17 per cent milk production and the dairy sector is poised to become second largest economy in terms of GDP in the next three decades. Dairy sector contributing 26 per cent to India’s GDP is the matter of pride as well as a challenge. The last four decades have witnessed large changes in every facet of integrated dairy industry. The Share of organised sector is expected to grow at the rate of 5 per cent annually, which a fairly good share is considering the milk production at the rate of 7.74 per cent in 2012-13. I am sure the Bi-monthly newspaper will offer an ideal forum for all those engaged directly and indirectly in the pursuit of promoting dairy sector which touches the lives of 65 per cent of India’s population. The phenomenal progress of India’s dairy sector has opened new vistas from producer to consumer and the intervention of multi-disciplinary professionals can bring about radical transformation of this sector in the larger interest of our underprivileged rural population. I take this opportunity to invite the expertise of multidisciplinary professionals, the dairy industry and the academia to actively participate in making this venture a legendary step. Dileep M. Dravid, Managing Director, Agro Dairy & Food-Consultancy Services, Anand I am happy to note that you are coming up with this new media of communication. At present there is no window to communicate with FSSAI for redressal of queries. Let us hope that this bimonthly newspaper will be a medium to communicate the industry views on various aspects. Vijay Jailkhani , Team Leader, QA, Schreiber Dynamix Dairies, Pvt. Ltd, Baramati It is heartening to note that you are launching 'DairyTimes', newsletter in the month of Feb 2016. There is a need for informal and formal exchange of information between all the stake holders of dairying as I see a tremendous potential for growth in this sector in India. I am sure the launch of your newsletter will add another tool for dissemination of knowledge and for sharing information. On this occasion, I take this opportunity to wish you all the success in your endeavours. Satish Kulkarni Consultant, Bengaluru I greatly appreciate receiving your kind invitation to be on the Advisory Panel of the Bi-monthly Dairy Times. It is indeed heartening to earn about the much-needed Dairy periodical conceived by your team. The rapidly growing Dairy Industry of the country will be greatly benefitted from the valuable information about various facets of the industry including state of the industry and the new developments on the research fronts. The magazine is expected to further promote a healthy growth particularly when the international dairy scenario in the context of Indian Dairying is fast changing and poses a stiff challenge to the country’s dairy industry. I will be privileged to be on the Advisory Panel of the periodical and it will be my pleasure to make meaningful contributions to this publication. Ashok A. Patel Valley Park-St. Louis, MO 63088 USA

The white revolution in India has made India not only self-reliant, but net exporter. Since 1996, the Country has been the largest milk producer in the world surpassing the United States of America. During the process of White Revolution, in the beginning, 90% of the Plant & Machinery were sourced from developed countries and merely 10% hardware were manufactured within the country. The untiring efforts of the Indian veterinarians, Dairy Technologists and engineering fraternity has changed the scenario, where India has become inspiration for many other developing nations of the world. An attempt to start a magazine namely 'Dairy Times news paper' by the veterans Dr. J. V. Parekh and Mr. Firoz H. Naqvi is a step in right direction and a matter of admiration for all of us. V K Ghoda, Sr. Consultant, Perfect Solutions, Vadodara

Dairy Times

Vol. 1, Issue 01 -February-March - 2016

Dairy Times

Vol. 1, Issue 01 -February-March - 2016

Exclusive Interview

''Our technology & quality is at par and better than those accessed in developed countries": R P Banerjee Tell us about your journey in the dairy industry.

R P Banerjee

I have been associated with dairy industry for the last 60 years. I was also connected to

Operation Flood programme that is responsible for India to become the highest milk producing country. I was also closely associated with Dr. Verghese Kurien, who had developed indigenous dairy equipment in India. During the 80’s, I founded SSP Pvt Ltd along with Mr. Tapas Chatterjee.

SSP is an ISO 9001:2008 certified company & ASME ‘U’ stamp holder. Since 1977, based on the core competency and knowledge on evaporation and Drying Technology, SSP provides customised turnkey projects & solutions to the industries, pertaining to food processing sector, dairy processing sector, fruit & vegetable processing sector, chemical industries and effluent treatment plant for various industries. We have been providing need-based, customised, highly-energy efficient and cost-effective turnkey projects , for the last 39 years. We try to meet our customers industrial needs. In this regard, we have supplied more than 350 projects that include more than 600 Evaporators & 400 Dryers all over the globe, with marked footprint over 47 countries with cutting edge technology.

‘SSP’ played an important role in the development of dairy industry in India, by indigenously manufacturing highly-energy efficient, costeffective & customised milk processing projects on turnkey basis.

In the dairy sector, we supply plant and machinery for milk processing with powder plant, baby food formulation plant, neutraceutical powder plant Evaporated/ sweetened condensed milk plant, malted milk plant and whey, casein and Lactose processing plant.

In 1969, at the IDA conference held at Chandigarh I was introduced to Dr V Kurien by Mr Rayan, Chief of Nestle. Mr Rayan stated that my company had supplied equipment to Nestle which was better than European equipment. I narrated my experience of working at APV, Kolkata where I handled different projects at Nestle, Glaxo and HLL to Dr Kurien.

We have successfully supplied 86 milk powder plants around the globe. Out of that 40-50% are our repeated clients. The advantages of SSP’s powder plant are innumerable. Highly energy efficient plant, in evaporator, no scale formation in tubes; production of instant quality powder, flexibility in controlling powder quality are some of those to quote a few.

Dr Kurien then invited me to visit Anand to meet Mr V H Shah and expressed that the operation flood for indigenous development of dairy machinery needed similar qualified people. I do not get assistance from multinationals. However, I was appointed as a member of consulting committee by and by.

In its earnest desire to develop most energyefficient evaporator, SSP has invented evaporator, where all the generated and regenerated vapour can be used in the evaporator, without a condenser & cooling tower.

Mr. V H Shah is one of the brilliant engineers, I ever met. His dedication, hardwork and meticulous planning was responsible for laying the foundation for the growth of dairy industry in India. I had the opportunity to work with him through 1969 – 1987. I found him as a great administrator and a humble person who was always thinking about indigenous development of dairy equipment. We discussed how Indian industry would be capable to design, fabricate and commission dairy machinery independently on European technology. The following projects was under his personal attention; Mogar Complex, Sagar Dairy, Dud Sagar Dairy, Banas Dairy, Amul Dairy, Ludhiana Dairy, Bhatinda Dairy, All feeder Balancing Dairies and Mother Dairy. The first 10 TPD milk powder plant, supplied to BANAS DAIRY with a 3 effect evaporator with TVR and Egron type spray dryer – was successful. Similar model was applied to Amul, Indore and Sangam Dairy and all of them were successful. Not only this, Amul’s desire to expand old powder plants with indigenous technology at Amul Dairy was also successful. F-35 powder plant capacity increased from 10 TPD to 20 TPD. F-60 plant capacity in evaporator increased from 45 TPD to 60 TPD matching expansion of F-60 powder plant by providing largest fluid bed dryer of 16.5 sqm area. Today, Prime Minister Modi has announced ‘Make in India’ programme to manufacture everything in India. Such a concept was planned by Dr Kurien around 46 years ago that was implemented by Amul. Therefore, even Indian technology based plant and machinery are exported to other parts of the world in competition with the multinationals. Could you please inform about your company and the products that are dealt with?

in different countries for collaborations and technology-transfer. What needs to be done to become a surplus milk producing country? Despite being, the world’s largest milk producer, India’s productivity per animal is very low, at 987 kg per lactation, compared to the global average of 2038 kg per lactation. Indian breeds of cows are considered inferior in terms of productivity. Indigenous cattle and buffalo make up 45 per cent of the country’s total milk population, in contrast to the cross-bred cows at 10 per cent. Main factor conditions for dairying entail the quality of animals, human resources and technical skills, land availability, capital, credit, infrastructure and other inputs relevant to the value chain. To become a surplus milk producing country, we have to look into proper cattle and buffalo breeding programmes, extension and management on dairy enterprise development, feeding practices. Side by side we have to improve milk transportation facility and cold chain system. What is the best solution to manage supplychain management of Indian milk processing companies in Rural India? Poor road network and lack of investment in cold chain infrastructure have long challenged the country’s dairy industry, Instead of big milk chilling centres, it is better to have small bulk milk cooler for collection and storage of milk. But in remote areas, there is an problem of power. Solarbased vapour absorption system can be adopted for refrigeration system for milk cooling. Recently, Lactoperoxidase System (LPS) is being adopting as an alternative method of milk

Kindly share your opinion on the growth of the Indian dairy industry for the last 5 years and its growth in the next 5 years. According to the industry statistics, dairy production is growing at the rate of 4.5 per cent annually, however, limited resources and inputs, particularly the feed, have reportedly caused dairy prices to rise in the last few years. The government of India (GOI) offers subsidies and other assistance through schemes to enhance production and to address the aforesaid issues. In recent years, more private sector dairy processors have entered the market. Some private sector processors provide accessibility to modern extension services to farmers and such help would improve farm management, feeding, fertility (including artificial insemination and genetics), food and safety/ hygiene and veterinary care. According to National Dairy Development Board (NDDB), the Indian dairy industry is all set to experience high growth rates in the next eight years with demand likely to reach 200 million tonnes by 2022 from 132 million tonnes in 2013. India has the potential to become one of the leading players in milk and milk product exports. How do you compare your company’s stance with developed countries? SSP has developed many technologies in the field of evaporation, drying, extraction, aroma recovery and agglomeration. Our technologies are at par or some times better than technology available in the developed countries. We provide highly-energy efficient, cost-effective and quality industrial projects to industries around the globe with the development of latest technologies by innovative R&D activities. Our R&D centre is even better than that of reputed European companies. Earlier, we used to import technology, now SSP is looking for equipment manufacturers and fabricators

Dairy Times

preservation. It is a protein naturally present in milk. One of its unique biological functions is antibacterial/that—would work effectively in the presence of hydrogen peroxide and thiocyanate. The LPS method is fully effective, cheap, safe and applicable at milk collection points and can prolong the shelf-life of unrefrigerated milk up to 3-4 hours more than that of untreated milk. LPS system - has great potential as it is recommended by the IDF Code of Practice. Is dairy industry mature enough for ‘Private Equity Funds’ Investments? Private equity funds are meant for only established players in the industry but, valuation is a problematic area. So unless there is severe liquidity crunch dairy industry will not like to go for private equity fund. What is your point of view on the demand of milk products? Do you feel setting-up of dairy with value-added products, a good idea to venture? Yes, setting up dairy with value added products seems to be a good venture as I also see that demand for dairy products in India has grown significantly, driven by more consumers, higher incomes and greater interest in nutrition. Consumption of processed and packaged dairy products is increasing in urban areas. Several national and international brands have entered the market and expanded consumers’ expectation of quality. What are your future plans? With the increase in milk availability, requirement for dairy equipment and projects are going up drastically. SSP is planning to supply turnkey projects for dairy industries along with its powder plants.

Vol. 1, Issue 01 -February-March - 2016

Interview

Prabhat focusses on Cheese, Ghee, Dahi, Lassi & Shrikhand

rabhat Dairy Limited, which is an integrated milk and dairy products company in India extends its services to institutionals as well as

Vivek Nirmal

retail customers. The firm that is into ingredient business such as skimmed milk powder, sweetened condensed milk, dairy whitener, concentrated milk and consumer business such as cow ghee, flavoured milk, curd, lassi and chaas had been in the news for raising Rs 400-500 crore from the market via IOP. It is backed by India Agribusiness Fund (IAF), which is sponsored by Rabobank Group. Vivek Nirmal Joint Managing Director, Prabhat Dairy , in an interview with Dr J.V.Parekh, , shares deeper insights into the Indian dairy industry based on his experience. He says “Dairy industry has a brighter future in the value chain in the near future.” Could you please brief about the company? What are your company products and services? Established in 1998, Prabhat Dairy Ltd is an integrated milk and dairy products company in India catering to institutional as well as retail customers. We produce fresh, dry, frozen, cultured and fermented dairy products, including pasteurised milk, flavoured milk, sweetened condensed milk, ultra-pasteurised or ultra-high temperature (UHT) milk, yoghurt, dairy whitener, clarified butter (ghee), milk powder, ingredients for baby foods, Cheese, Paneer Lassi and Chaas. Prabhat majorly has two business verticals B2b and B2c. In B2b company's focus is on premium

dairy ingredients that are supplied to leading Indian companies and major MNC’s in India. In consumer space, company's focus is on daily nutritional products such as Ghee, Dahi, Lassi, Shrikhand etc. The major strength of Prabhat is its procurement network that has been developed in these years. Today Prabhat connects to more than 85000 farmers on a daily basis. Where does India stand globally relating to the use of modern dairy technology? Dairy is one of the old industries prevailing in India. We are the largest Milk producer in the world and I find we are very well advanced in manufacturing technology as compare to developed countries. However, we are lagging behind in the procurement technology, both at milk production and collection level. In milk production, the core areas to be focussed are Fodder, Breeding, Medication and Cattle Management. At the collection level we need to have efficient chilling, transport and milk testing infrastructure. The status of supporting infrastructures and their delivery is still inadequate and concerted efforts are required to bring desired improvement. The strengthening of market linkages, either through expansion of cooperatives or by facilitating contract farming arrangements, would go a long way to ensuring sustainable growth of the Indian dairy sector in the days to come. Though India is the largest producer of milk but the growth in production of milk is still shorter than demand. What needs to be done to optimise the country’s milk productivity? As I said, Milk production is growing at the rate of

4.3per cent, while consumption is growing at 5 per cent leaving a gap between demand and supply. The demand for milk is always going to increase in a vegetarian country like India, where milk is a major source of essential nutrients. However, to fill the gap the major role will be played by production of Cow’s milk as we have already reached optimum milk yield capacity of buffalo milk. In India our cropping pattern is oriented towards grian production, whether cereals, oilseeds or pulses;and only crop residues are fed to the cattle. Hence the nutritional value obtained by the cattle is very low this leads to low productivity in animals. However, major steps are taken at grass root level and we will see the change in the coming years. Private Equity Funds have been a talk of the town in recent years in Indian food processing industry. Do you think dairy industry is mature enough for such type of investments? Dairy is particularly a farmers' business; hence there are many regional players as compare to national players. PE comes in the industries which are evolving very fast. Being the world’s second largest populated nation, with nearly half its population below 25 years of age, food processing companies in India have been an obvious choice for private equity (PE) investors. PE investors tend to like food companies as they grow fast and the business tends to be steady once a brand name has been established. As far Dairy is concerned, this industry is one of the fastest growing segments in India, many local corporate and MNC’s have already started to make a room for them. Hence, I believe this has helped

Dairy Times

in gaining confidence of the investors and making dairy industry to look for. Do you think venturing into value-added segments would serve a significant leverage to the dairy business? Yes, in coming days the industry will be driven by value-added products. Growth for value added products is driven by several factors such as changing lifestyle of consumers, growth in the food services industry, increasing urbanisation, rising need for convenience, better health awareness among end-users, etc. Sensing higher demand for processed milk and milk products, several domestic and global players forayed into different value added segments (leading to higher margins) to gain a higher market share. What is your focus area for growth in the future years? How do you see the future of Indian dairy industry in terms of demand for milk and its by-products? Prabhat is known for its procurement and manufacturing excellence. It has partnered with thousands of farmers and its valuable clients and has been instrumental in their growth as well. While we continue to grow with our current clients our focus product will be Cheese and we have setup the 3rd largest cheese plant in the country. At the same time, Prabhat will focus on its consumers business with daily nutritional products such as Ghee, Dahi, lassi, Shrikhand etc. As I mentioned earlier, the demand for the milk and milk products has grown tremendously due to the changing lifestyles of the consumers, growth in the food services industry, increasing urbanisation, rising need for convenience, with better health awareness among the end-users, this industry is getting mature enough to produce quality products. Also, many regional players are (contd...on pg.9)

Vol. 1, Issue 01 -February-March - 2016

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Vol. 1, Issue 01 -February-March - 2016

INTERVIEW (contd...from pg.7)

emerging actively. Therefore, the industry has a bright future for all in the value-chain. Going forward, where do you see the industry in the next five years? India is among the fastest growing dairy markets in the world and has become the largest global producer of milk. The dairy industry in India is shifting from unorganised to organised sector. Farmers find dairy as a very good remunerative option for fulfilling their daily needs. It is a 365day business and milk is generally considered to be the largest crop of India and adds largest to the agricultural GDP of the country. Domestic milk production grew at 4.3per cent CAGR, to nearly 134 billion litres in fiscal 2014, from 113 billion litres in fiscal 2010. The growth in milk production in India outpaced other large milk producing nations such as United States of America and China, which grew at 2-3per cent CAGR in the past five years. Milk production is growing at a rate of 4.3per cent, while consumption is growing at 5per cent leaving a gap between demand and supply. According to recent OECD-FAO Agricultural

Outlook, the demand for milk and its products in Asia will reach almost 320 MT by 2021. In volume terms the dairy industry grew 4per cent annually in the five years ended fiscal 2015, while the organised sector twice as fast. With changing consumer preference, the volume of milk processed from organised sector is expected to grow 13per cent annually by fiscal 2018, way ahead of a 5per cent annual growth for the industry at large. Please share your broad experiences with the dairy industry? Being a family driven business, I got an early opportunity to enter into the business. During those times, I have witnessed the milk surplus, drought period, exports, technology upgradation, price variation etc. The experience was very warm and I have learnt enormous things from this industry. The chain starts with milk procurement where you get an opportunity to connect with farmers and ends up with consumption of the dairy products by endusers. This gives an opportunity to understand different mindset of people. We have tried to do our very best to contribute to the industry, in these years we had developed ourselves on manufacturing and procurement front by giving training to our team, educating farmers. Overall, my outlook is that the industry warmly welcomes you, and if you have a vision supplemented with hard work, you can reach newer heights.

Dairy Times

Vol. 1, Issue 01 -February-March - 2016

INTERNATIONAL NEWS

Global food prices continue to fall, down by 19% in 2015: FAO prices, which were down by 21% from 2014 levels, as per the FAO price index.

Cut back, EU’s biggest Dairy co-op urges farmers

Abundant supplies in the face of a timid world demand and an appreciating US dollar are the main reasons for the general weakness that has dominated food prices in 2015, the Food and Agriculture Organisation (FAO) said in its monthly Food Price Index.

Our Bureau, Mumbai

nternational food prices dipped by 19% in the last year, the fourth consecutive annual fall, due to a substantial decline in dairy, sugar and vegetable oil prices according to the United Nations food agency. The maximum fall was witnessed in dairy prices, which fell by 28.5% compared to 2014, marking its lowest since 2009. It was followed by sugar

"Over the full year, the index has averaged 164.1 points, nearly 19% less than in 2014, marking the fourth consecutive annual decline," the Food and Agriculture Organisation (FAO) says. The FAO food prices index averaged 154.1 points in December 2015, down 1.5 points (1%) from its revised November value, with international prices of all the food commodities used in the calculation of the Index falling, except for sugar and oils.

Global Dairy Markets in trouble

production was up 5.1% in November over year-earlier levels, and up 8.3% over the threeyear average.

Our Bureau, Mumbai

utter prices took the biggest drop, 5.9%, and are now trading at $1.43/lb. Cheddar cheese was down 3.4%, at $1.30/lb. Skim milk powder dropped 3.2%, and is trading at just 83¢/lb. In contrast, U.S. prices for butter, at $2.25/lb, and bulk cheddar, at $1.53, are well above these world prices. That makes global sales difficult, unless sales incentives are offered. U.S. skim milk prices, in contrast, are at 75¢/lb., which makes them competitive. Part of the problem has been milk production growth in the European Union (EU). Overall, EU

EU dairy quotas were lifted last spring, and it seem European dairy farmers are taking advantage of their freedom to increase milk output. Dutch farmers were up 13.8% over last November, and German farms pushed milk output up nearly 5%. The only EU country to report lower production was Italy, down 5% over year ago and down almost 3% over the threeyear average.

t a time when global milk supplies are overflowing and free trade agreements are requiring countries to eliminate or scale back dairy subsidies, some co-ops and countries are implementing creative ways to provide extra money to their dairy producers to keep them competitive and thriving or to

urope’s largest dairy co-op, Friesland Campina, is providing an incentive to members NOT to increase milk production. The move is only a “temporary” measure until mid-February, says the Dutch coop, but underlines the concerns of European processors that milk deliveries are running ahead of the market’s ability to sell milk products either on the domestic or international market. Farmers will receive EUR2.00 per 100 kilograms compensation for deliveries less or equal to the volume they supplied during the week December 13-17 - the equivalent of a 5% income bonus – said the co-op. The move follows a 3.9% increase in milk deliveries throughout the EU in the 10 months to the end of October, compared to the same period a year earlier. In the Netherlands the rise was 5.2%. But in October alone there was an 11.4% yearon-year rise in Dutch milk production. There have been even greater rises in

Dairy auction rally for butter, but powders squeezed

On the flip side, New Zealand was down nearly 2% January through November 2015 compared to the same 11 months of 2014. Australia was down 2.9% over the same period. U.S. production has also been tepid, up just 0.6% in November and plus 2.8% over the three-year average. For more on world milk production, Both prices and volume were down today on the Global Dairy Trade (GDT) auction in New Zealand, with the weighted average price down 1.4% to $2,405 per metric ton. Analysts believe prices must climb to at least $3,000/ton for a global price recovery to occur.

Argentina, Holland Offer Subsidies to Manage Milk Supply

Our Bureau, Mumbai

encourage them to cut back on production. “While higher milk production benefits the dairy farm, unplanned and unmanaged growth can be quite challenging for a dairy cooperative. Cooperatives often find themselves in a precarious situation when lower milk prices drive higher production because they must buy all of their members’ milk,” says Sara Dorland, analyst with the Daily Dairy Report and managing partner at Ceres Dairy Risk Management, Seattle. “At the same time, though, they tend to have difficulty processing and finding a good market for the milk in times of oversupply.” Co-ops generally take one of two approaches to address excessive milk production. “They either carry a stick or offer a carrot on that stick,” says Dorland. Most often quota programs, which are designed to reduce milk flows, fine producers for overproduction.

milk output in Ireland – another major dairy export nation. Irish milk production rose 11.4% in the year to the end of October - or 14.2% between April and October. During 2015 it was coping with an extra 600 million kilograms more milk than the previous year – an increase of 6.4%. This is despite “investing heavily” in additional processing capacity, said the co-op. It adds that there are signs that members are cutting back, with November production down. However, farmers faced with falling prices find themselves in a dilemma. Many are producing more just to make ends meet, says Harm Wiegersma, chairman of the Dutch dairy producers’ union, who also delivers to Friesland Campina. He blames the end of quotas for the current situation. It was an “historic mistake” he told Dutch News: “We warned there would be too much milk but Friesland Campina said it would be easy to process.” Friesland Campina has a lower guaranteed milk price for January of EUR29.25 euro per 100kg of milk – EUR0.75 less than in December.

Our Bureau, Mumbai

t could have been worse – but a New Year’s price lift failed to materialise at the first global dairy auction of 2016 (Jan 5). The major commodities either took a tumble or in the case of skimmed milk powder (SMP) barely moved from the last event. However, the SMP headline average of USD1,890 (EUR1,739 / GBP1,282) reflects the big volumes of regular heat from Fonterra’s New Zealand operations and to a lesser extend its premium powders, such as age guaranteed and UHT. We don’t know how rival sellers Amul and Arla fared because under auction rules, prices that don’t meet traders’ Starting bids are not published. None were. And in Arla’s case, two of its offers – medium-heat regular from Sweden and medium-heat instant from Denmark – went unsold. Fonterra may have hoped for a continued upturn in whole milk powder (WMP) prices. But it was out of luck: what looked like a prolonged price rally at recent events appears to be over. The WMP average dipped -2.2% from the price at the last auction to USD2,210 per tonne. Although in GDT ‘weighted’ calculations, the fall was worse: a drop of -4.4%. Worse, there were precious few takers for Fonterra’s premium age at time of delivery (ATOD) products: five of the delivery slots to July went unsold. And the lot that did, for delivery in April, went for the below-average price of USD2,195. Instant and UHT products attracted higher prices, as did later deliveries (from May) of regular WMP. Fonterra had increased the volumes

Dairy Times

of anhydrous milk fat (AMF) on offer at this event after a long, if uneven, rally in prices since August. This recovery has stalled for now, with a -2% drop in price from the last auction to USD3,644 per tonne. Other smaller-volume products did better – putting the -1.6% fall in the overall GDT Price Index a little more into perspective. Butter, Dairy Markets said, would increase – and it did by an average of 5.6% to an average of USD3,314 (EUR3,049) per tonne – continuing its rally since mid-November. Butter milk powder (BMP) also lifted slightly (+1%) to an auction average of US$1,586 per tonne Cheddar, too, enjoyed an upturn of by 3.7% to an average USD2,964 per tonne. This is virtually the same price as the middle of January last year. From that point it dived to USD2,636 in February before rising the following month to USD3,377 per tonne. That was its high point in 2015 and cheddar has been on a rollercoaster journey ever since.

Vol. 1, Issue 01 -February-March - 2016

INTERVIEW

''Indian Govt should give subsidy if companies buy international standard equipment": Rcheline Levi B Rcheline Levi

ringing together, within a single organisation, the ADEPTA, the (Association for the Development of International Exchanges of Food Processing Products and Techniques) created in

1977 with backing from the French Ministry of Agriculture and Fisheries, accompanies the international development of equipment manufacturers, suppliers of input, experts and engineering and design departments in the agriculture and agri-food industry. For the progress of dairy in India our editor in chief Dr J.V.PAREKH talked to Rcheline Levi a team expert of ADEPTA. Levi looks after large scale farming, milk and meat sectors in India, Central Asia, Ukraine and Russia. In a short interview to our editor Levi told how technologies of France can help India to get the better results in dairy business. Here is the glimpse of an interview. India is the largest producer of the milk in the global market still it lacks the edge on the export front. What will be your 5 points suggestion to

the industry as a whole to tap global market? • Improve Yield of cows, develop cold chain • Soften regulation on breeding, importation of cows (Montbéliarde for instance which are not allowed yet…, or Abondance or Tarentaise) • Reduce custom duties on importation of cold chain and process machinery. • Adopt International Standard on equipment and product • Create a Semi - Independent Agency for regulation with professional.

If we look at the technological advancements in the dairy processing units, apart from a few front line companies, companies in general are not using updated technologies. What are your suggestions to them? How in the long run they will lose their business further if not upgraded? Govt should give subsidy if Indian companies buy international standard equipment, or efficient equipment which helps to develop the production. Custom duties for European equipment should be at Asian rate from Harvesting to Processing and packaging.

What are the services and support ADEPTA provides to the food & agriculture industry in general and dairy industry in particular? · Providing equipment, Transfer of Technology and Knowhow • Assisting for Regulations from Harvest to Process

How is the French technology useful in Indian Dairy Industry? Some French companies already sell equipment, are established, some have started at the level of Pre-harvest by 2008, we are now slowly bringing our technology to process as well. The Indian demand is for small capacities even for Dahi. It will take more time to get added value product. France has a unique expertise: Farmers, Manufacturers, Dairies works together. France who is the European leader in Food processing can definitely bring its expertise. In dairy industry we can sell cows who will allow farmers to get better yield. We can also sell equipment to improve shelf life of fresh product and reduce cost of energy and maintenance. Production of Milk in India is not growing with the pace of demand, where are we lagging behind? Production per animal is too low, nothing has been done to improve yield of local cow so far. India

Dairy Times

should import other breeds that are recognized to give better yield, but these cows will give more milk if they are bred in hygienic conditions. Can you share some case study in brief of a country which has solved the demand and supply issues with or without help of ADEPTA? Several companies can work together in order to answer a targeted demand. For instance Astan En Qods Foundation (Iran) came to France, they wanted to develop their orchards and fruit production and process, we organised meetings with French companies (Seeds providers, Grading equipment, greenhouses, refrigeration for storage rooms etc, etc) all these French companies have proposed a turnkey project, and Iranian foundation is studying it. We did the same for Swine production in China Same for Poultry production in Gabon. French companies in dairy industry worked together for Chobani project in USA and so many others all over the world.

Vol. 1, Issue 01 -February-March - 2016

NEWS

SUMUL to set up dairy biz in Goa

Our Bureau, Mumbai

the government.

n a major decision the Goa government has granted permission to Amul to set up a second dairy in the state at Kundaim. Surat district cooperative milk producers union limited (SUMUL), which entered Goa market under the brand name of Amul, will now procure milk directly from producers in the state which was earlier done only by Goa Dairy. The state's requirement is 4.5 lakh litres per day while the state is producing only above 40,000 litres per day. The first dairy in the state was set up by Goa Dairy. Officers believe that it would not only increase milk production but also benefit dairy farmers in the state, The government has granted permission to SUMUL to establish the Amul pattern of dairy business in Goa to procure locally high quality milk. SUMUL will set up an automated milk collection system connected through GPRS to the department of animal husbandry and veterinary services for farmers who procure milk for the union under a one-time incentive payment provided by

The decision is significant as the state government always had confrontations with the Goa state milk producers' cooperative union, popularly known as Goa Dairy, for various reasons, including increasing milk prices without consulting the state government. SUMUL, in its proposal, has said that they will work for the benefit of dairy business in the entire state of Goa alongside other similar agencies as notified by the state government. "The rate of milk would be decided by SUMUL dairy at Surat. Presently the procurement price is Rs 23.32 (cow milk with 3.1% fat) and Rs. 35.81 (buff milk with 6.1 % fat)," SUMUL stated in the proposal. SUMUL may also provide mobile veterinary clinic services to the four talukas if the same is required with ultra sound facilities. SUMUL will also provide high-yielding milch animals from Surat district to the farmers of Goa under Kamdhenu scheme.

ATC eyes to promote dairy in Punjab Our Bureau, Mumbai

he Australian Trade Commission (ATC) is looking at sharing innovative ideas to increase milk production and promote precision farming with the twin ideas of 'crop per drop' and 'reduce inputs, grow production in country A two-member Australian business development delegation came to the 8th National Livestock Championship in Muktsar on Saturday to explore ways to promote dairy development in Punjab and exchange of farmers between the state and their country. Imran Saeed Khan, regional business development manager, ATC says, "We are working to promote dairy trade in the Indian subcontinent, which shows immense possibilities for rapid growth. India needs genetic improvement in its cattle and fodder development to make cattle healthier. The Holstein-Freisan cows in Australia and Pakistan are much stronger and healthier than in India. The same can come true in India, if more is spent on R&D."

Anirban Deb, Business Development Manager (Agribusiness, Food and Beverages), ATC, says, "There are immense possibilities in dairy development in India on the lines of Australia. We have 1.6 million cows as compared to 72 million cows in India, but we got milk output of 9,500 million litres per year and in India, the annual milk production is 135,000 million litres. Average milk production per year per cattle is nearly 6,000 litres in Australia, while it is 1,900 litres in India." Deb said that this was made possible due to innovative ideas and precision farming. "We also gave thrust to fodder development by adopting Rhodes grass, which is very rich in proteins," he adds.

GCMMF appoints Jetha Bharwad as its first vice-chairman Kerala Milk Federation launches

‘Milki-Jack’

Our Bureau, Mumbai

n an innovative approach to a yellowish flesh and a faintly sweet smell of the jackfruit, Central Products Dairy of Malabar Regional Co-operative Milk Producers Union, under the aegis of Kerala Co-operative Milk Marketing Federation Limited (MILMA) has recently launched Milki-Jack. Radhakrishnan S, manager, Central Products Dairy, Beypore, North-Kozhikode explains, “ Milki – Jack, a milk dessicated product made out of milk, jackfruit pulp, sugar and with added, dried coconut chips. This product is prepared from all natural ingredients such as, milk, jackfruit and coconut. No any artificial colour or flavor is added into it.”

Our Bureau, Mumbai

He informed that this product had been introduced into the market of Malabar region, covering six northern districts----Kasargod, Kannur, Wayanad, Palakkad, Kozhikode and Malappuram, after the trails carried out in the state laboratories, including its taste and acceptance to the public. Interestingly, the product is gradually becoming familiar in other southern districts of Kerala. Perhaps, this is the only product made at this dairy for the entire Kerala market in the state to be sold through ‘Milma’ network. Elaborating on the pricing aspect, he mentioned that it was priced at Rs 50 for 150 gram pack size in plastic tub. The tub contains around 7 to 8 pieces of milki jack.

GCMMF sees upward growth trend

Our Bureau, Mumbai

ow AMUL is different from others is clear from the fact that while milk producers the world over are plagued by dwindling returns, farmers connected to GCMMF-owner of Amul have seen growth in their income. GCMMF, MD, R S Sodhi says, “All over the world milk producers are crying for getting 30 to 50 % lower prices due to crash in the commodity market, whereas milk producers in Gujarat are rejoicing merely over 5-8% due to wise initiative taken 70 years ago by not only producing milk, but also owning processing and marketing of value-added products only through cooperative institutions.” The GCMMF anticipates at least 20% CAGR growth in the next five years, implying its turnover would exceed Rs.50,000 crore by the year 2019-20. Sodhi added that those

or the first time in its history, the Gujarat Co-operative Milk Marketing Federation – the apex marketing body of all the district dairy unions of Gujarat that markets brand Amul, has created a separate post of vice chairman by bringing a change in its bye-laws. Panchmahalsbased Panchamrut Dairy’s chief Jetha Bharwad is likely to become the first vice chairman of the (GCMMF). On the other hand, Minister of State for Department of Health, Government of Gujarat and BJP MLA Shankarbhai Chaudhary has been elected unopposed as Chairman of Banas dairy. Mavjibhai Desai has been elected Vice-Chairman

GCMMF is also banking on a largest milk powder plant with capacity of 120 MT per day in Palanpur, a butter plant at Gandhinagar with capacity of 40 MT per day, new dairy plants at Faridabad, Kanpur, Lucknow, Kolkata and Varanasi.

After a historical win, Chaudhary thanked board of directors and milk producers for his unopposed election. In the election, Chaudhary-led panel won with 2/3rd majority. His panel won 8 seats while rival Bhatol saw victory of his only 3 candidates Poll was on for 14 seats. Banas Dairy was established by Galbabhai Nanjibhai Chaudhary who through his hard work continued the functioning of dairy even during the time of severe water scarcity in north Gujarat. The dairy now involves Rs. 5,000 crore management.

Godrej Agrovet owns 51% stake in Creamline Dairy Our Bureau, Mumbai

odrej Agrovet Limited (GAVL), an agribusiness company and a subsidiary of Godrej Industries Ltd, recently announced acquisition of controlling stake in Creamline Dairy Products Ltd. GAVL is an existing shareholder in the company with a stake of 26%. With this transaction, Godrej Agrovet will own over 51% of Creamline. Commenting on the acquisition, Balram Singh Yadav, Managing Director Godrej Agrovet, says,, "We have been shareholders of Creamline since the last 10 years and have seen the company build a highly successful dairy business during this time. As the company embarks on its ambitious future growth plan, we believe GAVL will be able to bring in significant value to the business by helping it develop successful brands and add more value-added products to its current portfolio.”

plans entailed GCMMF to increase procurement to at least 12% from 156.17 lakh litres per day in 2014-15 to 270 lakh litres per day in 2019-20.

unopposed. Meanwhile, Parthy Bhai Bhatol was ousted from the milk unions of Amul after a gap of 24 years.

“As the company scales up its operations in new geographies, Creamline can get immense leverage through the Godrej Agrovet brand which a strong recall with dairy farmers through our cattle feed business., he adds. Godrej Agrovet has close to 20% market share in the organised cattle feed market. It hopes to build

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an entire cattle feed to high quality milk/milk product value proposition post this acquisition. The company has product offerings across the entire lifecycle of cows, thereby helping the overall productivity of the animal. Creamline is a prominent dairy company in South India with significant operations across Telangana, Andhra Pradesh, Tamil Nadu, and Karnataka and in Nagpur in Central India. The company has strong farm linkages across the four southern states, which assures it quality milk supply around the year. The retail presence of the company is strengthened by its "Jersey" brand of milk and its derivatives. The company also operates dedicated "Jersey" milk parlors across southern India. K Bhaskar Reddy, managing director, Creamline Dairy, states, "We value our decade-long association with Godrej Agrovet immensely and are delighted to take it to the next level. Godrej Agrovet is one of the largest animal feed companies with significant cattle feed presence. As we expand our business, we think Godrej Agrovet will add significant value to our business through their long association with Indian dairy farmers and knowledge on building long-lasting brands. Creamline expects to close FY16 with more than Rs 1,000 crore in sales. Creamline envisages doubling its turnover in the coming 3 to 4 years."

Vol. 1, Issue 01 -February-March - 2016

NEWS

(contd...from pg.1)

top 10 sectors monitored closely by PE players. From accounting for just 2 per cent of total PE investment a decade ago, the Indian dairy sector is now attracting over 6 per cent on a much larger base. Over 900 crore has been invested in the sector since 2010. However, management of logistics costs and secured procurement would be crucial to profitability and cash flows in the business, it added. The growth for organised dairy players is driven by value-added products, which grew 23 per cent annually compared with 15 per cent for liquid milk. In the branded segment, consumption of paneer, cheese, curd, butter, ice-cream and lassi has increased faster than milk. The share of value-added products in fiscal 2015 is estimated at 43 per cent, up from 35 per cent in fiscal 2010.

Milk production in India to grow at 14% by 2021-22: A study Our Bureau, Mumbai

tudy anticipates that milk production in India will further grow at a CAGR of around 14% between 2015-16 and 202122, according to latest research report Indian Dairy Industry Outlook 2022, with an annual output of 138 million tonnes, India is the largest producer of milk in the world. It is also one of the largest producers and consumers of dairy products. The Indian dairy industry offers good opportunities to both domestic and foreign investors for entry and expansion and it has been growing exponentially in the country due to its trich nutritional qualities, dairy products' consumption . The Indian Dairy Industry holds an inimitable space in the country for its high employment potential and for ensuring the availability of nutritious, yet affordable, food for India's everincreasing population. Getting the tag of largest milk producer was made possible by Operation Flood and the historic dairy cooperative movement; and as production increased, the dairy industry started showing promising growth potential. Rising disposable incomes and growing demand for dairy products are likely to fuel the Indian dairy industry's growth over the next few years. Further, the report covers analysis of the primary dairy market and markets of its sub-segments, like liquid milk, yoghurt, butter, ghee, paneer, cheese, dairy whitener, condensed milk, infant formula, Ice Cream and Cream, and EXIM data of major dairy commodities extracted through intensive primary research and detailed secondary.

www.agronfoodprocessing.com

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Vol. 1, Issue 01 -February-March - 2016

NEWS

CM Inaugurates New Block Mother Dairy Invested at Sangam Dairy US$11.5m in Jharkhand Guntur district. Sangam Dairy has constructed an ultra modern block for the production of cultured milk products like butter milk, curd and lassi and is first of its kind in the state. The unit can produce 100 metric tonnes of product a day.

(NDDB), has invested US$11.5m in the fruit and vegetable processing project that has an annual capacity of 25,000 tonnes.

The chief minister also interacted with the farmers at Vadlamudi and later, participated in the ‘Janmabhoomi - Maa Vooru’ programme at Chanchupeta in Tenali town. Our Bureau, Mumbai

other Dairy, the Indian food group, is to set up a fruit and vegetable processing plant in Jharkhand state, expanding its presence in the eastern part of the country. The company, a subsidiary of the government agency the National Dairy Development Board

Our Bureau, Mumbai

hief Minister N Chandrababu Naidu inaugurated Cultured Milk Products Block of Sangam Dairy at Vadlamudi village in

Odisha govt forms new panel to boost milk production Our Bureau, Mumbai

n a bid to promote milk-processing industries, Odisha government has constituted a coordination committee under the chairmanship of the secretary of the Micro, Small and Micro Enterprises (MSME) department. The six-member panel would suggest the areas and specific locations where private entrepreneurs can set up milk-processing units and engage farmers for milk production. The panel would also place before the government proposals to

provide subsidies to eligible entrepreneurs. The subsidies would be provided under Odisha Food Processing Policy-2013 and National Mission on Food Processing (NMFP), according to sources. The five other members of the panel are the Director of Agriculture and Food Products, the Director of Animal Husbandry and Veterinary Services, and the Managing director of Odisha State Cooperative Milk Producers’ Federation Limited (OMFED), the Director of Industries Department, and a representative of the milkprocessing industries.

Danone launches ready-to-eat custard in 2 pack sizes

available in a premix format which is often time consuming and tedious to make. With this launch, the company introduces readyto-eat custard which will be quick and easy to serve.

Our Bureau, Mumbai

anone, a leading food company, has launched an innovation in the packaged food industry with its ‘ready-to-eat' custard. With the launch of the new product, the company adds one more offering to its dessert portfolio apart from Misthi Doi for the Indian market. According to a press release issued by the company, the new product is available in vanilla flavour in a 900 ml family pack and 200 ml trial pack priced at Rs 150 and Rs 40 respectively. The product is available in retail stores across India. Made with 80% toned milk, it is a 100% vegetarian product and is extremely convenient to use. Custard is a popular dessert consumed in many Indian households. So far, custard has been

Laurent Marcel, managing director, Danone India, says, “In today’s world everything is faster and more complex; hence food industry needs to respond to the changing lifestyles and nutritional needs. As we grow our business in India, we plan to create a diverse product portfolio for our consumers tailored to the nutritional needs and Indian taste. Indian consumers are ready for value-added dairy products and we believe this product will be loved by Indian consumers of all age groups.”

A Mother Dairy official said the plant will process tomatoes for making ketchups and green peas. The plant will also process fruits like banana, guava, mango, papaya and litchi for juice and pulp concentrates. The plant is expected to be operational by the end of this fiscal year March 2017. Mother Dairy's fruit and vegetables arm is called Safal, selling branded products and having its own retail outlets in Delhi. Dairy was set up in 1974 to help make India a milk sufficient nation. As well as dairy and fruit and veg, its portfolio now also includes products, edible oils and jams.

Dairy recovery slower than expected, admits Rabobank Our Bureau, Mumbai

lobal dairy demand will gradually improve over the next 12 months, says Rabobank in its latest quarterly report.

Chinese imports are also likely to stabilise in the first half of 2016, it says, as demand outpaces local supply growth and stocks are reduced. The second half of 2016 will “offer more hope for sellers”, as China import-buying finally resumes growth, as domestic stock reaches normal levels, adding to the upward momentum provided by lower retail prices and rising incomes. The lack of Russian sales has overshadowed what has been a keen expansion of trade in other markets. Both factors should reduce “drag” on international trade that Russia and China have exerted over the last 12 months. On the minus side, the need to clear product to less-high-paying regions kept prices “extremely low” and led to the rise of more “bottom-of-thepyramid products”, targeted at poorer consumers in emerging markets. The report confirms the frequently held view that the world is producing too much milk. On the supply side, Rabobank forecasts production growth in the Big 7 dairy export blocs of just

-0.1% year on year as against -0.6% in its last quarterly report. Poor weather and low prices have limited US and New Zealand growth. But in the EU low prices have not had the same effect. It believes there will be only a small slowing in EU milk production through the first half of 2016. A “modest” growth in consumption in export regions should see exportable surpluses of new milk reduce by 4% in the first half – “tightening the market somewhat during this period”. At the same time, lower pricing and some improvement in income growth will foster improved buying in deficit regions – those not meeting their milk needs domestically. Crucially, these dynamics will see excess inventories gradually eroded as the first half of 2016 progresses, “with stocks approaching normal by around mid-year”. Pricing pressure will still build in early 2016 and Rabobank admits it expects a “somewhat weaker trajectory” to the recovery than it did a few months ago. However, based partly on USDA forecasts, Rabobank predicts that whole milk powder (WMP) to rise to USD 3,200 per tonne by the fourth quarter of 2016, from a current average of USD 2,500. Skimmed milk powder (SMP) is forecast to rise from USD 2,070 to USD 2,800 per tonne.

EU refugee milk scheme in ‘final stages’ Our Bureau, Mumbai he European Commission is still working on the details of a special EU food distribution scheme for refugees, first announced in September last year.

The EUR30 million schemes, under which the Commission would buy dairy products from EU farmers and supply them to refugee centre’s, is now “in its final stages” according to a spokesperson. The plan was revealed in September, when the Commission announced its EUR500 mln emergency farmer aid package – made up mainly of targeted aid envelopes for all 28 EU member states, aimed mostly at compensating dairy producers struggling with low prices due to oversupply. Then, the EU executive indicated that the EUR30 mln scheme would see its humanitarian aid and civil protection department (DG Echo) provide surplus dairy products to refugees, via

Dairy Times

existing charitable organisations, in EU and non-EU countries. EU Agriculture Commission Phil Hogan stated that “EU milk will be made available for the nutritional needs of refugees, in particular those displaced in difficult conditions in our neighbouring countries”. It was not made clear whether the EUR30 mln would actually come from the EUR500 mln farmer aid package, but Hogan said there were “sufficient funds” in the EU budget. However, Dairy Markets’ sister publication Agra Europe revealed last week (Jan 7) that the scheme has still not been finalised, four months after it was first announced. The details of the plan “are still being worked on,” said a source – suggesting potential budgetary or logistical hurdles. Liquid or powder? With the latest estimate of the EU average raw milk price standing at 30.6 euro cents, for December, EUR 30 mln would allow the scheme to buy up just under 10 million litres of milk – though the Commission also cited milk powder as a possibility.

Vol. 1, Issue 01 -February-March - 2016

ARTICLE

Private Equity investments driving growth and facilitating consolidation in the Indian Dairy sector

Nitin Jain

he total dairy market in India is estimated to be INR 3,000 bn ($60 bn) comprising nearly 40% of the total Food & Beverages market. Of this the organised dairy segment is curently just 20%

or INR 600 bn., and represents a significant opportunity for growth for the next decade or more. The total dairy market is projected to grow by a CAGR of 10-11% to nearly INR 5,000 bn or ($82 bn) by 20161. The organised dairy market in India is dominated by the co-operatives which have a 55-60% share of the market. The Amul Group (including Gujarat Cooperative Milk Marketing Federation) had a turnover of INR 191 bn ($3.2 bn) in FY 2013 and holds nearly one-third share of the organized market. While basic milk and ghee are indeed the dominant products contributing to almost 70% of the market, growth is driven by a significantly higher growth in value-added products like cheese, paneer, flavoured drinks etc. Dairy market megmentation by products There is significant interest from foreign investors as well as global dairy majors to participate in the high-growth Indian dairy industry. The organised dairy sector in India is expected to grow at 15% for nearly a decade more. Given the size and scale of the Indian dairy industry, as well as the headroom for growth, there has been a significant interest from private equity investors and recently global dairy companies to invest in the dairy sector in India. Private Equity Investments in the Dairy Sector in India In the last 5 years, USD 150 mn has been invested by private equity investors in the Indian dairy industry, of which USD 125 mn has come in the last 15 months. The capital raised has largely been invested in backward and forward integration • For instance, Carlyle invested USD 12 mn in Tirumala Milk Products in 2010. •

In the last three years, Tirumala has strengthened its supply chain by adding over 100 chilling stations, expanded geographical distribution to Gujarat, Maharashtra and Rajasthan apart from its traditional stronghold in southern states like Tamilnadu, Karnataka and Andhra Pradesh. The company’s revenues have nearly tripled in last three years from INR 5.8 bn in FY 10 to INR 14.2 bn in FY 13.

in favour of value-added products Lactalis Group Revenue Breakup in CY12 In India, low value added products like milk and ghee contribute nearly 70% of the dairy market. In contrast, value added products form substantial portion of the market in the developed world. For instance, Lactalis, the world’s largest dairy company has only 25% of revenues coming from milk, while the remaining 75% is from valueadded products. See graph. Private equity investors are encouraging and assisting Indian companies to move up the value chain as the margins are higher. In the last few years, Indian dairy companies are seen expanding their product basket by launching products like flavoured milk, various varieties of cheese, flavoured yogurt, etc. The market will mature over several phases of growth. But the action has begun. Overall, the dairy industry is undergoing a metamorphosis. The industry is still at its early stages and would need several phases of growth, coupled with consolidation to develop into a more mature market. The current phase has seen several private equity investments for growth capital (refer to table), with the industry simultaneously undergoing consolidation. For instance, Hatsun Agro products acquired Jyothi Dairy in October 2013 as part of the strategy to strengthen its distribution in Andhra Pradesh; Lactalis Group announced acquisition of Tirumala Milk products. We believe high growth in the dairy sector as projected in the medium and long term is sustainable. As the market evolves and matures over time, we think there will be further opportunities for investment of growth capital as well as Mergers & Acquisitions in the sector. Nitin Jain Aurum Equity Partners LLP Email: nitinjain@aurumequity.com

As the market matures, we will see the share of low value added products dropping significantly

Dairy Times

Vol. 1, Issue 01 -February-March - 2016

FEATURE NEWS However, over a period of time, there has been enormous changes in the trend in packaging due to innovations in packaging technology leading to the availability of many options of packaging materials. "Packaging constitutes an important link between the manufacturers and ultimate consumers for safe delivery of the product through different stages of production, storage, transport, distribution and marketing." Innovation Packaging Concepts for Dairy Product In recent days, packaging technology has made remarkable innovations for packaging of dairy products by way of introducing many cutting-edge technologies such as:

ccording to a study carried out by Packaging Machinery Manufactures Institute, (PMMI), USA in 2013 global milk production is estimated to grow Dr. N.C Saha

from 692 million tonnes in 2010 to 827 million tonnes in 2020, a 19% increase. The European Union EU-28 (the 28th member of state was added in July, 2013), India and the USA were the largest milk producers in 2010 and are expected to remain the same in 2020. However, it is also highlighted that duringthe period of 2010 and 2020, the following trend is expected to change: l EU-28 share is projected to shrink slightly. l Share of India and China are projected to increase. l Share of other regions / countries are expected to remain equal. " Though, cutting-edge technology is developed in this particular sector, the need for innovation is continuous; thus one has to keep up research and development initiatives so as to develop new package designs with alternate packaging materials withoptimum cost, thus satisfying the modern consumers." Due to worldwide growth in dairy consumption, nearly all countries / regions are projected to increase their production volumes. However, another study report revealed that among all, India is the world’s largest producer of milk, accounting for more than 16% of world milk production. At the same time, India is considered to be the largest consumer of dairy products in the world. The total amount of milk produced has tripled from 23 million tonnes back in 1973 to 95 million tonnes in 2008 and it is 135 million tonnes by 2015. However, the projected demand for milk by 2021 - 2022 is estimated at 180 million tonnes, which implies that milk production will have to be doubled. The advancements in dairy technology has enabled to produce a large number of dairy

products i.e. milk and milk products for human consumption. New Product Formulation As in any industry, the critical point or key to remain competitive is product and package innovation. The trend towards consumer leading a healthier lifestyle is sparking a slew of innovative dairy products, protein drinks and extended shelflife beverages. Nearly half (48%) of the dairy processors are responding to consumer demands for healthier choices with new products that are of: • Low fat • Fat free • Reduced sodium and sugar • Lactose free • Organic • Probiotic culture, fortified with nutrients, calcium and protein. "In recent days, packaging technology has made remarkable innovations for packaging of dairy products by way of introducing many cuttingedge technologies." There is also growing awareness among consumers for GMO-free (Genetically Modified Organism) dairy products. By adding more natural ingredients, many dairy manufactures are able to simplify their ingredient label – further answering the demand for healthier food products. Packaging is a technique of using the most appropriate contours and components to protect, carry, identify and merchandise any product. It constitutes an important link between the manufacturers and ultimate consumers for safe delivery of the product through different stages of production, storage,transport, distribution and marketing. Though, great efforts have been made in producing high grade processed milk or manufactured dairy products; unless they are delivered in a fresh, sound and suitable form to the consumers, they are likely to be rejected, thus causing enormous wastage. However, the loss can be offset to a great extent by adequate protective packaging to withstand the hazards of climatic changes, transportation,

handling etc. Role of Packaging for Dairy Products Dairy products or milk and milk based products are highly perishable in nature. Due to this, fresh milk is required to be processed either by pasteurisation, sterilisation or ultra high sterilisation (UHT) technique in order to achieve the desired shelf-life. However, the processed milk cannot be marketed until the product is packed in containers made of either flexible or rigid packaging materials. Normally, the milk is processed primarily in the dairy factory and transported either, in bulk or in consumer package. Bulk Package Liquid fresh sterilised milk is normally transported in a refrigerated tanker for a short distance. However, in recent days, the market for processed milk packed in consumer packages is growing. Current Packaging System for Dairy Products in Consumer Package The liquid fresh pasteurised milk used to be made available only in 200 ml glass bottle with aluminum caps for distribution in the local market.

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• Rigid PP bottles for flavoured milk as a replacement of glass bottles. • Cheese spread in laminated squeezable plastic tube for children. • Cardboard pulp containers with inner plastic bag, termed as green packs. • Introduction of MEN’s yogurt in a number for containers of 190 gms and 370 gms to attract a special market segment. • Cottage cheese in curved bottom thermoformed containers with wide month to enable easy scoop up. • Portable Pouch for Yogurt: Chobain Greek yogurt is now available in portable pouch which is consumer-friendly as it does not require a spoon. • Cow shaped milk containers made of HDPE to attract consumers. • Project Carton: A uniquely designed paperboard carton for packaging of UHT milk. The design has an in-built plastic spout to facilitate pouring of milk. • Shredded Cheese Stand-up Pouch: This special design of stand-up pouch is more functional as the pouch has zippers for better closing. • Milk and Cookies in a Single Container: This particular package enables the brand owner to market single serving portable package made of PET. Conclusion India is the largest producer as well as consumer of milk products. Moreover, since the geographical area is so vast, there is a need to develop well priced and innovative packaging technology to enhance shelf-life, make the packages consumer friendly and light in weight (so as to reduce freight cost). The package should have convenience features and attractive graphic design to enhance eye appeal. Though, cutting-edge technology is developed in this particular sector, the need for innovation is continuous; thus one has to keep up research and development initiatives so as to develop new package designs with alternate packaging materials with optimum cost, thus satisfying the modern consumers. (The writer is a Director at Indian Institute of Packaging(IIP), Mumbai. He can be contacted at iip@iip-in.com)

Vol. 1, Issue 01 -February-March - 2016

FEATURE NEWS

Controversy on A1 and A2 B -casein in milk

Dr. J.V. Parekh - Casein is one of the major proteins in milk of cows, buffaloes and other mammals. Research studies have shown that there are different variants of β -casein in milk evolved over hundreds of years due to mutation and selective breeding for high milk and protein yields. There are 15 known variants of β -casein out of which A1 and A2 are major. β-casein-A1 (alleged bad casein) differs from A2-casein only by one amino acid at position 67 (proline in A2 and histidine in A1). This substitution increased susceptibility of A1 β-casein to hydrolysis by digestive enzymes to produce physiologically active β-casomprohin (BCM), a decapetide. The controversy is that one group of scientists claim BCM a cause of many health problems in human whereas other groups report beneficial effects of BCM and declare both types of milk safe for children and adults. About A2 milk

Milk that does not contain A1 ß-casein, but contains the alternate A2 ß-casein, is known as A2 milk. Cows that produce ß-casein that is solely of the A2 type are known as A2 cows. Presence of A1 and A2 in different breeds: The scientists at National Bureau of Animal Genetic Resources (NBAGR), Karnal, India scanned breeds of Indian cows and found that in five milky yielding Indian cows viz. Red Sindhi, Sahiwal, Tharparkar, Rathi and Gir. The status of the A2 allele was 100 per cent, while in other Indian breeds used for farming, its status as around 94 per cent. Genotype Frequencies of Different Cow Breeds Indian cows having humps are predominantly of A2 whereas European and American are of A1 type. Genomic studies have shown that animals belonging to Genus Bos, which includes Indicus (Indian humped Zebu), Taurus (Exotic) and Yak were initially of A2/A2 type only and due to mutation some animals became A1. But, with advent of selective breeding for high production, better fertility and protein quality, unconsciously A1 allele carrying bulls that were genetically superior were used in breeding programs. Artificial insemination (A. I.) of large number of cows with semen of such bulls multiplied A1 gene frequency over time. Several surveys have shown that A1 / A2 frequency is not breed-specific but area-specific. For example, in North America and North Europe A1 frequency in Holstein Friesen (HF) breed cow is very high (> 90%) but in German HF A2 frequency is high (97 %). In other countries A1 frequency in HF ranges between (40 – 65%). In Guernsey breed from USA / Europe A2 frequency in cows and breeding bulls is very high (> 98 %) almost equal to Indian breeds. In case of Jersey A2 gene frequency is higher (60-80%) globally. Kerry breed from Ireland and Spotted breed from Hungary has A2 frequency above 75%. In Indian hump breed cows A2 gene frequency is around 98 %. So it is preposterous to brand exotic cows as ‘dirty’ or ‘poisonous’. If we compare other milch species, buffalo, goat and sheep these have only A2 genes hence milk from these animals would be exclusive A2/A2 type. Research of Indian scientists on A1 / A2

This is mis-information propagated in social media to malign Indian scientists. National Bureau of Animal Genetic Resources (NBAGR), a renowned research institute in Karnal, has been active in surveying the A1/A2 situation in India since 2009. Their first report confirmed that A2 gene frequency in Indian breeds of cattle is around 98 % (almost 100 % in major milk breeds), whereas all the buffalo breeds studied were found to be of A2A2 type. Their further work in screening samples of HF, Jersey and crossbred bulls used in A. I. program also showed that these were predominantly carrying A2 allele. Recent studies published in 2012 also clarified that even in crossbred cow population predominant gene is A2. NBAGR has therefore rightly concluded that the situation in India demanded vigilance on breeding program but no immediate need to change breeding strategy. In April 2015 Indian Council of Agricultural Research, New Delhi has approved a study involving University of Punjab, NDRI and NBAGR to investigate and gather evidence about health safety of milk from Indian crossbred cows. Health Hazards Due to A1 Milk The scare about so called harmful effects of A1 milk in media is being spread by ill-informed group of activists. Firstly, one should understand that there is a huge difference between ‘causal factor’ and ‘risk factor’ as the later only increases risk of a disease but cannot cause the disease on its own. The published survey reports although point out risk association but overzealous campaigners have started labeling these as disease causal factors. The controversy started with papers published starting from late 1990s by Dr. Elliott’s group in Australia. One such paper has reported results of a survey wherein food consumption trends in 20 developed countries were compared with official mortality rates due to chronic heart diseases (CHD), juvenile insulin-dependent type I diabetes mellitus (DM-I) and other diseases. The survey reported strong association between high A1 β-casein consumption and CHD / DMI. The association was found to be stronger in high altitude countries, such as North America and North Europe. India was not included part of the study and moreover, it is not high altitude and has radically distinct socio-economic attributes. So these results cannot be extrapolated to India and the controversy for us stops there only. Survey based epidemiology studies that compare situations in different countries in respect of food consumption and disease prevalence or mortality have several inherent limitations. These papers attracted lot of criticism as inferences drawn were overarching and erroneous. The assumption in the report was that every individual in the country was exposed to equal level of risk factor (for example A1-casein-milk), which we know cannot be true due to socio-economic differences within the country. Lastly results of such surveys provide flexible opportunity to the industry, media and scientists to pick up and magnify as per their perceptions. For example in these and other reports even rice, wheat and soy have been alleged to be comparatively stronger diabetogenic than milk but did not attract so much of media and public attention. Lastly, in such chaotic situation sane and independent voices of even eminent scientists group do not get attention. Dr. Truswell a renowned scientist from Australia in 2005 and European Food Safety Authority in 2009 after critically going through available literature published excellent papers rebutting claims about A1 casein milk but in media these are scarcely mentioned. For establishing causal or risk association between factor and disease there are set criteria (also called Mills Canons); out of these two are considered

critically important: (a) dose-response effect and (b) biological explanation with direct evidence. As per survey result although average A1β-casein consumption in France and Australia is similar (0.3 g / day) the mortality rates due to CHD are 88 and 33 per lakh population, respectively. Sweden, Austria, Iceland, Canada, Germany have A1 β-casein consumption varying between 0.3 to 2.8 g per day the mortality rates due to CHD are 70-80 per lakh. Moreover, although A1 β-casein milk consumption patterns have not changed in USA, Australia, Switzerland over last decade but CHD mortality has dropped considerably. The hypothesis therefore fails to satisfy dose response as well as exposure elimination / reduction criteria. Evidence of correlation to Type –I Diabetes mellitus Since diseases like DM-I is result of complex interactions between many factors the survey must be adjusted for known confounding factors else the association is likely to be distorted. In developed countries children consume cow milk proteins as ‘infant formula’, which is a very small proportion of national milk consumption and many formula have whey and reduced levels of casein. Scientists have earlier proved strong association between failure to breast-feeding during first three months of age and incidence of DM-I hence data should have been adjusted for this confounding factor. In many countries protein source in infant formula may be from some other country where A1/A2 frequencies are different hence national averages of consumption therefore may be misleading. For these shortcomings of such surveys Epidemiologists are unanimous in view that comparison of data between the countries might at best be considered as the starting point for framing a hypothesis and conduct of experiments to gather direct evidence. Are there direct experimental evidence in laboratory animals? A number of studies on DM-I in laboratory animal models have been published in reputed international journals. However, there is only one publication on association of CHD and BCM done in rabbit, which is not considered as a human model for this disease. BCM has been found to bind specific opioid receptors and a neural cell hence it is has been suspected to be one of the factors causing autism, schizophrenia and other neurological disorders. In these either cell culture was used or in laboratory animals BCM was injected intracranial, inside the brain or intraperitoneal; obviously these are artifactual routes. In order to obtain credible evidence of involvement of A1- β-casein milk and DM-I a multi-centre experiment in genetically susceptible mice model was carried out simultaneously at research labs in London, Ottawa and New Zealand. The diet to be fed to treatment group and various other control groups was prepared centrally and the researchers were kept blind to feed contents. The results from London and Ottawa laboratories showed that compared to mice fed on A1-β casein diet, incidence of DM-I was substantially higher in mice fed on control diet consisting of wheat gluten, soy and other ingredients. The New Zealand experiment conducted by a researcher proponent of A1-harmful effects theory, was abandoned half way due to a disease outbreak in mice colony but for unknown reasons they did repeat such a robustly designed experiment. Considering the available scientific data various panels of learned and reputed scientists have concluded that as yet there is no credible evidence to suggest that consuming A1 milk is related to CHD, DM-I, Schizophrenia Autism, etc. There is also no evidence to suggest that consumption of A2 type milk would provide protection or sparing effects from these diseases. What is the stand of Public authorities on this issue? Two international Study Groups comprising

Dairy Times

renowned scientists, one in New Zealand and the other by European Union (European Food Safety Authority), have gone through available publications and evidences on the subject and have concluded that fear about A1 milk was unfounded. There are also independent panel reports which have concluded that as yet there is no clinching evidence as yet to ring public warning. The controversy in few developed countries appears to be driven by commercial motives as in New Zealand a company called A2 Corporation has been formed which owns A2 related patents and brand name and has been demanding mandatory testing of animals for purpose of labeling. Obviously, a small group of ‘Activists’ type of researchers is driving this controversy but unless concrete evidence emerges India should not fall prey to this propaganda. What are the lessons for India? In order to reiterate good qualities in indigenous cows there is no need to denounce exotic breeds or crossbreds. The hypothesis of A1 milk association with few chronic diseases drawn from a survey done in western countries’ population should not be extrapolated to India. Considering the contribution of buffalo, indigenous cows and crossbred population in India’s milk pool and based on the assumption that β-casein is 45% of total protein and that around 25% of the β-casein may be from A1 allele cows, the average consumption of A1 milk in India would be around 0.24 g / day; 5 – 10 times lower than countries surveyed. So there is no cause to panic. The Indian scientists should not consider the issue as buried but remain vigilant and monitor the situation periodically. The vested interest groups should not whip up passions and mis-information campaign but should leave such matters to the wisdom of our scientists and the scientists should become more vocal in stating facts. Lastly, if there is demand from consumers for A2 milk as a matter of choice, the Government of India and state governments should come up with policy guidelines and entrust the certification powers with the agency that is currently certifying organic milk, otherwise the consumers are likely to be rigged. Promotion of Desi Cow Promotion for A2 milk will help farmers shift to traditional breeds which very well integrate with natural farming systems. Promotion of A2 milk will also make hundreds of gaushalas spread across the State turn economically viable. Due to better quality of Indian cattle milk which is 100% A2 type and concern of breed purify, there is a yearning need to save and improve our own milk breeds for proper nutrition and employment, thus making our society healthier and our villagers / farmers economically sound. FSSAI’s Opinion on A1 A2 Milk Whether FSSAI is contemplating standards to identify the two types of milk i.e. A1 and A2 milk. Presently, there is no move to identify two types of milk i.e. A1 and A2 milk by regulators.

Vol. 1, Issue 01 -February-March - 2016

EVENT REVIEW

"Effective methods are needed to check adulteration at the collection Centres": Sodhi

ational Seminar on Pure, Safe and Nutritious milk was organised jointly by Indian Dairy Association (Gujarat State Chapter) and SMC college of Dairy Science during 11-12 December 2015 at AAU, Anand. More than 500 delegates from dairy industry and academic institutions from all over India attended the programme. After paying tribute to Dr.V.Kurien speakers and dairy industry stalwarts deliberated intensely on the issues of milk, its safety concerns through hygienic production and handling, problem of adulteration and nutritional attributes. The body strongly reacted against anti-milk campaign by some agencies and advising the policy makers against import of dairy products to protect the milk producers of the country. Mr. R. S. Sodhi, managing director, GCMMF Ltd, the chief guest of the function, began his keynote address by reminding the audience that milk was once a rationed commodity and was a privilege thing. He paid homage to Dr. V. Kurien, Father of

‘White Revolution’ whose effort made milk available to common man and remarked that India was the largest producer as well as consumer of milk in the world. He also addressed various reasons for volatility of price of milk and milk products in the international market. He foresighted that average daily intake of milk will rise to 850 g/day on an average, by 2050 which will require a production of 540 MMT, that poses the challenge to increase the domestic milk production. He also cautioned to some international agencies' projection that India would be deficit in milk in the coming years and permit imports. If government does this, it will be extremely harmful to our farmers. Rather government should take effective steps to promote local milk production. He further added that even if each milk producer add one more animal, it would take care of required milk production in the coming years. Sodhi then pin-pointed that innovations have revolutionised the dairy industry from production, procurement, processing and marketing finally ensuring the quality adding that, Indian dairy industry has a unique and efficient distribution pattern for milk, owing to which we are able to pay better prices to the farmers. He further addressed various challenges faced by dairy industry such as adulteration and the need for an effective method to check adulteration at the collection areas. He emphasised that the shift of consumer preference from locally sold loose milk to branded packaged milk could increase the demand for branded milk

and a check for adulteration in a better way. Later, he concluded that there was a need to protect the goodwill of the stakeholders of the Indian dairy industry. Dr. N. C. Patel, Vice-Chancellor, AAU, Anand, in his Presidential address recalled the contribution of Dr. Kurien and Tribhuvandas Patel to the ‘AMUL’ model. He portrayed Cow and Buffalo as biological machines and gave a vision to in-vitro synthesis of milk as a future of dairy industry. He also realised the gravity of today’s scenario, and the need to develop small scale sophisticated machinery in rural areas to ensure quality and safety for the betterment of farmers and the society at a large. He stressed on the need of value-addition as an inseparable step to meet the burgeoning customer needs and the incorporation of milk as nutraceuticals. At the inaugural function, Dr. J. B. Prajapati, VicePresident (IDA) and Principal SMC College of Dairy Science in his welcome address, highlighted on activities of IDA and SMC College of Dairy Science jointly since 1998 and when the first State Chapter of Indian Dairy Association was openedby Dr Kurien on 27th January 1998. He reminded that we were concerned with the issues related to pure and nutritious milk and such a seminar could come up with recommendations of concern to the policy makers. Dr. K. Rathnam, Managing Director, Amul Dairy, Anand, threw some light on the theme of safe and nutritious milk and what industry can do to ensure it. Dr. H.G. Koshia, Commissioner, Food & Drugs Control Admin. Government of Gujarat

and the Guest of Honour, highlighted the steps that are taken by FSSAI for ensuring the quality and safety of milk that reaches the customers. He congratulated the Dairy Science College for producing skilled technocrats. He also made the audience regurgitate the enforcement of e-governance, to make the work of citizens’ smooth and incorporate transparency in the process. H. K. Gupta, Hon Secretary IDA delivered the vote of thanks. Faculty consisted of Dr K Rathnam, MD, Amul Dairy, Anand; Mr. A K Dhagat, Sr GM, Amul Fed Dairy, Gandhinagar; Dr TSR Murali, Chief R&D Officer, Mother Dairy Fruit & Veg. P. Ltd. Delhi; Dr. (Prof.) K.D. Aparnathi, SMC College of Dairy Science, Anand; Dr. J.V. Parekh, Consultant, Mumbai; Mr. Sameer Saxena, Sr Manager, GCMMF Ltd, Anand; Dr. Dinesh G Shah, Indi Foss Analytical P Ltd, Ahmedabad; Mr. Parvinder Singh, GEA Process Engineering (I) Pvt. Ltd, Vadodara; Dr. (Prof.) P.C. Vasavada, University of Wisconsin, USA; Mr. Aditya Jain, Sr Mgr., NDDB Anand;Dr (Prof.) Atanu Jana, SMC College of Dairy Science, Anand, Dr. Anindita Mehta, CERC, Ahmedabad, Dr. Bency Kathayat, Amul Dairy, Anand;Mr. Mohd Abdul Kalam Azad, Milk Vita, Bangladesh and many other experts and policy makers were present on the occasion. The programme had a cultural eve, specially executed by the students of SMC College of Dairy Science and special attraction was ‘Manthan’, a play of ‘Amul India Story’ in its raw form, which received a huge applaud from the audience.

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Dairy Times

Vol. 1, Issue 01 -February-March - 2016

STATISTICS

Dairy Products Pricing; Latest Trends Domestic milk and milk products price:

International milk and milk products price:

Source :USDA

Dairy Times

Vol. 1, Issue 01 -February-March - 2016

A REPORT

A Premier Institute: NDRI,Karnal

stablishment The National Dairy Research Institute (NDRI), Karnal is India's premier institute for dairy research. The institute was accorded the status of Deemed University in the year 1989. The institute was originally started as Imperial Institute of Animal Husbandry and Dairying in 1923 at Bangalore. It was expanded and renamed as Imperial Dairy Institute in 1936 and was known as National Dairy Research Institute after independence in 1947. Subsequently, in 1955, NDRI headquarters was shifted to Karnal. Facilities at Bangalore were retained to function as a Regional Station to serve the Southern States. In 1964, Eastern Regional Station of the Institute was established at Kalyani in West Bengal. Both these Regional Stations continue to provide region specific R&D support for dairy development in these areas. In 1970, NDRI was brought under the wings of the Indian Council of Agricultural Research to provide greater operational autonomy to the Institute in research management functions. In 1989, status of Deemed University was conferred to the Institute for further strengthening the academic programmes for human resource development. Working area The National Dairy Research Institute as the premier Dairy Research Institution undertakes research, teaching and extension activities towards dairy development in the country. Being the National Institute, it conducts basic and applied research with the objective to enhance animal

productivity and also to develop cost effective technologies for the benefit of the teeming millions. Further, the Institute provides high quality manpower to meet the human resource requirements for the overall dairy development in the country. The Institute also undertakes extension programmes for transferring the know-how from the laboratory to the farmers’ fields. The National Dairy Research Institute as country's premier Dairy Research institution has developed considerable expertise over the last five decades in different areas of Dairy Production, Processing, Management and Human Resource Development. Information generated at the Institute and the services offered have contributed to the growth of Dairy Industry as a whole and well-being of millions of milk producers and consumers of milk and milk products. Realizing the challenging need of global Dairy Trade, the Institute is continuously working to develop its R&D and HRD programmes to better serve the nation in terms of food security, employment generation, poverty alleviation and economic prosperity. Courses Offered The Institute offers Ph.D and Masters programmes in twelve disciplines. 1. Dairy Microbiology 2. Dairy Chemistry 3. Dairy Technology 4. Dairy Engineering 5. Animal Biochemistry 6. Animal Biotechnology 7. Animal Genetics & Breeding 8. Livestock Production & Management 9. Animal Nutrition 10. Animal Physiology 11. Agricultural Economics/ Livestock Economics/ Dairy Economics 12. Dairy Extension Education 13. Agronomy (Forage Production) B-Tech (Dairy Technology) This highly sought after four year degree (8 semesters) programme offers intensive training in processing and quality control of milk and dairy products and engineering aspects of dairy processing equipments. Achievements which burst us with pride PRATHAM: National Dairy Research Institute

has gathered world repute by making the first IVF (in vitro fertilization) buffalo in the world. SAMRUPA: The world's first cloned buffalo calf, was to be India's answer to Dolly the sheep. But unlike Dolly, the first mammal cloned 13 years ago, who lived for seven years, Samrupa succumbed to a lung infection, five days after it was born. First cloned Calf: On Feb 6, 2009, the first cloned calf was born. The Scientists of NDRI had developed a landmark technique and had created the first cloned buffalo calf. GARIMA: The world’s second cloned buffalo worth Rs 7 crore under National Agricultural Innovation Project funded by World Bank, calf through the Advanced Hand-guided Cloning Technique was born at NDRI, Karnal on June 6, 2009. Gamini: On Aug 22, 2010 a cloned calf of female buffalo ‘Garima-2’ nicknamed Gamini was born from embryonic stem cell. Shrestha: On Aug 26, 2010 a cloned calf of male buffalo 'Shrestha' was born from somatic cell of an ear from an elite bull; it is producing good-quality fertile semen. Noori: On 9 March 2012, world's first pashmina goat alone was born and was named Noori. She was produce by a process of cloning using the nuclear transfer method. Mahima: On 25th January 2013 by normal parturition a female calf was born from cloned buffalo Garima.. In the world, it is the first calf born from cloned buffaloes, produced through hand guided cloning technique. Swaran: On Mar 18, 2013 a clone of male buffalo ‘Swaran’ was born from the somatic cell of semen; it is alive and healthy. Purnima: On Sept 6, 2013 a clone of female buffalo ‘Purnima’ born from high milk-yielding animal. Lalima: On May 2, 2014 'Lalima’ was born through the NDRI's ‘hand-guided cloning technique’. Rajat: On July 23, 2014 a male cloned calf named 'RAJAT’ was produced through the "Hand-guided Cloning Technique”. Dairy Achievements Development/standardization of processes and techniques for the manufacture of concentrated

milk product such as sweetened condensed and evaporated milks from buffalo milk. Development of ‘Degcure’ for curing Degnala disease. Ten calves produced from a single donor cow in one year’s time through ETT. Cytogenetic profiles of various breeds of cattle, buffaloes and goats elucidated. Development of Hansa test for detection of adulteration of cow milk with buffalo milk. Protocol for embryo transfer technology standardized for cattle and buffalo Protocols for transferring IVF goat embryos to synchronized recipient goats using laparoscopy standardized resulting in the birth of first in vitro fertilized goat kid in the country at NDRI. A large animal treadmill for cattle and buffaloes fabricated for experimentation on work capacity to determine draught animal power in bullocks. This treadmill is the only one of its kind in India and South East Asia. Highly sensitive antiserum against progesterone has been development. Urea-molasses block lick development for use as a good source of nitrogen and minerals to cattle during scarcity period. Development of processes for manufacturing of low fat, sugar free desserts & Rasogulla using artificial sweeteners and bulking agents. Development of different varieties of beverages including sports drinks using whey. Simple, accurate and rapid methods for estimation of major and minor constituents, heat stability tests and detection of adulterants etc., for milk and milk products such as “synthetic milk” adulteration in milk Development of a process for production of low cholesterol ghee. Innovations in lactometer design and for estimation of SNF in milk to suit Indian conditions. Test kit for detection of various adulterants in milk. PCR test kit development for detection of food borne pathogens in milk and milk products. Development of continuous ghee, and channa making machines. Cream separator attachment for domestic mixies and food processors. Development of process for conversion of ghee into recombined Butter (Butter G).

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Dairy Times

Vol. 1, Issue 01 -February-March - 2016

INTERNATIONAL NEWS

Innovations update: Indian dairy worries over smarter, faster, and safer EU-India FTA

Our Bureau, Mumbai

microbiology testing breakthrough promises to save the dairy industry millions through superior product shelf life and enhanced protein concentration. The system developed by Irish tech company Oculer claims to cut detection times for thermo uric bacteria from 72 to 24 hours. Such rapid detection should significantly reduce spoiling of product and help eradicate shelf-life issues. It should also advance the elimination of the bacteria entirely in other milk-related products, such as milk Powder destined for the infant formula industry. In Ireland alone the savings could amount EUR200 million. At the official launch, Ireland’s Environment minister Alan Kelly praised what he called an “international breakthrough” for microbiology diagnostics and added: “With sales of dairy products forecast to reach USD494 billion in 2015, this breakthrough has the potential to reach into every single market in the world.” Tetra Pak has extended the application of its Onestep processing technology. Producers can now prepare UHT milk from powder in one continuous step, reducing operational cost by up to 40% per cent, and cutting carbon impact by more than a half. The technology removes the multiple steps of pasteurisation and intermediate storage: skimmed milk powder (SMP) is mixed with pre-heated water to make a concentrate, which is then blended with the precise amount of water and fat before undergoing UHT treatment. The technology will help cut costs for companies in the Middle East, Far East and Africa, where milk is routinely reconstituted from powder. Saudi Arabia’s Sadafco, one of the largest producers of recombined milk products, piloted the technology. Sadafco’s manufacturing director, Raffaael Reinders, said: “Thanks to the new solution, we

have been able to reduce energy consumption by up to 40%, resulting in a smaller environmental footprint, whilst doubling production capacity. In addition, the new system has enabled us to reduce production losses by as much as a third. The return on investment for the two lines was less than two years.” The US dairy tech company Dairyvative Technologies has developed a system for concentrating milk to give it a longer shelf life. Pasteurised milk can be concentrated into a liquid one-seventh of its original volume. The end product is lactose-free and has a shelf life of as much as 12 months without refrigeration. Milk proteins stay intact, maintaining nutrient and flavour profiles, the company says. Dairyvative has entered into a partnership with dispensing equipment maker Cornelius Inc with the potential of worldwide distribution. It expects to launch the technology next year after raising USD2.5 mln from investors. An Australian company, Camperdown Dairy International, has introduced a system which will enable Chinese consumers to scan cans of infant milk formula with their smart phones and trace the product back to its factory. Every can has a unique identifier, matching it back to the batch it was produced from. And the cans will also feature a “contamination-proof” lid and spoon system, to guarantee the product on the inside matches brand labeling on the outside of the package. Camperdown’s milk powder manager, Gavin Evans, predicts that other companies would be forced to follow suit.

Our Bureau, Mumbai

he Land workers’ Alliance is hosting smallscale dairy producers from the UK and India as part of the Oxford Real Farming Conference to discuss the current dairy crisis. The UK dairy industry is in a state of ongoing crisis with the prices paid to farmers far below the cost of production. Instead of guaranteeing a fair price for dairy farmers however, the government’s response has been to announce a strategy for increasing the export of milk products to Asia. The target for this milk has been China and Russia, but the export of milk to Russia has been banned in the sanctions and China has started to increase its own milk production in an attempt to supply the Russian market. Therefore,the looming new export market is India - home of the world's strongest “people's milk” industry. The EU-India Free Trade Agreement, currently under negotiation, seeks to remove tariffs on European dairy exports to India. Kannaiyan Subramaniam, a dairy farmer from Tamil Nadu, India, and representative of the South Indian Coordination Committee of Farmers movements (SICCFM) and La Via Campesina (LVC) says, "The corporate controlled European dairy exports to India and the global south have the potential to wipe out small scale milk producers from the planet. We need more regulation on production and a reduction of subsidies in developed countries to ensure good livelihoods for peasant farmers." Jyoti Fernandes, a small-scale dairy farmer from Dorset and representative of the Land workers’ Alliance (LWA) and European Coordination of

Our Bureau,Mumbai

U - The private storage aid for butter and skimmed milk powder will be extended until 30 September 2016, following the approval by Member States of a proposal made by the European Commission. The Commission put in place private storage aid

"The Commission will take all necessary steps to safeguard the livelihoods of our dairy farmers and indeed, the sustainability of our agri-food sector sector as a whole. I will use all the measures I possess to stabilise the market."

The EU-India Free Trade Agreement negotiations were launched in 2007, but are not yet finalised. One of the barriers to completion of the FTA is India’s opposition to reducing tariffs on dairy products - which the European Dairy Association (EDA) and the EU dairy trade association (Eucolait) have been lobbying in the negotiations to put tariffs down to near zero levels. The Indian government is currently imposing tariffs on imported milk products to protect India’s thriving dairy industry. If the Indian dairy market, targeted by EU dairy producers, were to lower tariffs on agricultural and dairy products, it would have serious implications on Indian dairy farmers because their products risk competitive pressures from cheap EU imports of powdered milk from large scale dairy farms, which the EU heavily subsidises and protects.

in promoting bone health, reducing the risk of insidious chronic diseases and conditions demonstrates why milk is offered with every school meal and dairy foods are prominent parts of other nutrition assistance programmes,” Connie Tipton, president and CEO of IDFA was quoted as saying.

EU holds out Storage Aid for Butter, Skimmed Milk Powder till Sept 2016

Speaking at an event on the milk sector in the European Parliament, Commissioner Hogan was quoted as saying "We want our farmers and dairy operators of all sizes to get a fair price for their hard work. We want them to continue delivering a world class product. We want to provide them with a greater degree of security and sustainability in their livelihood.

The majority of milk production in India is carried out by small-scale, often landless farmers, who get a large share of the total price paid by consumers. So it offers many of India’s farmers a way out of poverty. The Indian dairy sector is the major source of income for an estimated 90 million people.

New US Child Nutrition Bill to headway milk consumption

He adds, “As a new entry to the market, we’ve made sure we introduce our very first product into the market up there with this technology attached. We want to be at the forefront of that use of technology to give people confidence in the product they’re buying.”

schemes for butter and skimmed milk powder in summer 2014 to support producers who were reportedly facing the effects of the Russian import ban. Following continued worldwide market continue imbalance, private storage aid schemes have already been extended three times since its introduction to ensure continuity of support.

Via Campesina (ECVC) explains, "Not only will these free trade agreements destroy the livelihoods of 90 million Indian dairy farmers, it will severely impact the livelihoods of small scale dairy farmers in Europe by forcing us into competition on a volatile international market. We need a guaranteed fair price and protection of domestic markets rather than export strategies and free trade."

Our Bureau, Mumbai

S - The Senate Agriculture Committee has recently approved legislation to enhance the quality of nutrition in federal feeding programmes, including provisions that would help reverse the decline of milk consumption in schools and improve the health of America’s children, according to the International Dairy Foods Association (IDFA) and the National Milk Producers Federation (NMPF). IDFA and NMPF reportedly said that almost all age groups consumed less dairy than recommended by the newly-released 2015 Dietary Guidelines for Americans (DGA), and this legislation offers the opportunity to improve dairy intake among the nation’s youth. The organisations reported that the new nutrition bill reflected the latest findings of the DGA, which indicated that consumption of dairy foods provides numerous health benefits, including a lower risk of diabetes, metabolic syndrome, cardiovascular disease and obesity. “Along with dairy’s long-established role

Dairy Times

Jim Mulhern, president and CEO of NMPF, said that passage of the legislation: “Will help reverse the trend of declining milk consumption in schools, a trend that unfortunately is in direct conflict with federal DietaryGuidelines, which say children should be drinking more milk for lifelong health. "If the trend is allowed to continue, it will have serious consequences for children’s health today and throughout their adult lives,” he said. According to Mulhern during the year between 2012 to 2014, schools served 187 million fewer half-pints of milk, although total public school enrollment grew during that period. The Senate bill also calls on USDA to address the needs of lactose-intolerant students by offering lactose-free milk through the USDA Foods Programme. The child nutrition re-authorisation bill is now expected to move to the full Senate for consideration.

Vol. 1, Issue 01 -February-March - 2016

INTERVIEW

‘Private Equity Investments play a vital role in development and growth of Dairy industry’: Devendra Shah It serves a wide range of products such as ghee, fresh milk, skim milk powder, whole milk powder, paneer, an array of processed and natural cheese, cheese spreads, butter, dahi, dairy whitener and gulab jamun mix under the brand names of 'Gowardhan' and 'Go' ,all made from 100% fresh cow milk. Dr J V Parekh in an exclusive interview Devendra Shah, goes over with a fine-tooth comb to familiarise Indian dairy industry, its challenges and the view of the dairy player, its newer opportunities in the industry that it has to offer: Excerpts:

Devendra Shah

umbai-based private dairy player, Parag Milk Foods Ltd, one of India's elite private sector dairy company, with a diverse portfolio in over 15 consumer centric product categories provide the best global source of expertise and scientific knowledge in support of the development and promotion of quality cow’s milk and milk products. The company aims to identify, elaborate and disseminate best practices at all its infrastructures. A dairy farm set on global standards, a modern fully automated cheese plant with state of the art technology, a ghee plant with traditional way of making ghee-like made at home and an UHT milk processing plant using the best equipment from one of the leading plant equipment manufacture.

What are the services/products you are dealing with, please brief us about your business? We are one of the leading manufacturers and marketers of dairy-based branded foods in India. We commenced our business in 1992 with collection and distribution of milk and have now developed into a dairy-based branded consumer products company with an integrated business model, manufacturing a diverse range of products including cheese, ghee (clarified butter), fresh milk, whey proteins, paneer, curd, yoghurt, milk powders and dairy based beverages targeting a wide range of consumer groups through several brands. A significant portion of our product range includes long shelf-life food and beverage products that enable us to sell our products to retail and institutional customers across India. We derive all of our products only from cows’ milk. Our aggregate milk processing capacity is 2 million litres per day and our cheese plant has the

largest production capacity in India, with a raw cheese production capacity of 40 MT. Our brands and products along with their target consumer base are set forth below: How do you look at the Indian dairy industry and its growth in the last 5 years & in the next 5 years? Indian Dairy industry is growing and it has huge opportunities to tap on. Technologically where do we stand if we compare it with the developed countries? Technology plays a vital role in every industries growth so it is helping Indian dairy industry to grow as well. Though India is the largest producer of milk but the growth of production of milk is still shorter than demand, what needs to be done to become a surplus milk producing country? Education on animal husbandry is a must. Another vital aspect that private players brought in was the ability to produce milk. Traditionally, India constitutes a huge cattle population but the average milk producing capacity of an Indian cow is much lesser than that of its western counterpart.

Growth/demand of milk products other than milk has also been on higher side in India, do you see it as a good venture for value addition in the Industry? Private dairy companies have introduced new innovative approaches and newer technologies that have enhanced the quality and productivity of the sector. Earlier, the major issue for a dairy company was the procurement of quality milk for manufacturing & processing milk products which was efficiently tackled by promoting, educating and creating awareness about effective methods of dairy farming among the farmer community.

Availability of more and more chilling centres is the best solution to it.

With proper education, the dairy farmers have also realised their importance in the value chain and are adopting advanced technologies to make the process efficient, effective and fully automated. They have brought about a overwhelming change in improving fodder and feeding practices, teaching farmers to take better care of the health and nutrition of their animals, and promoting selective mechanisation to save on labour. Today the outcome is that industry is experiencing improved milk quality, profitability and animal wellbeing, while the processing has become less erroneous and time consuming.

Private Equity Funds have been talk of the

Accordng to industry sleuths, revenues from the

Supply chain management has been a critical area for Indian milk processing companies, what is the best solution to manage it even in the remotest areas?

Dairy Industry Conference (Feb 18-20, 2016) Venue: NDRI, Karnal, Haryana, India Contact: Mr A.K.Sharma ph: -0184-2259293 Email: aksndri55@gmail.com www.ndri.res.in

town in recent years in Indian food processing industry and successful, do you think dairy industry is mature enough for this type of investments? IDFC and Motilal Oswal are two Private Equity players are engaged with Parag Milk Foods. These type of investments helps entire industry to grow.

Canadian Dairy Innova�on Summit (April 13‐14, 2016) Venue: Amsterdam, The Netherlands Contact: Arena Interna�onal www.arena-international.com/dairy

Foodex (April 18‐20, 2016) Venue: Birmingham, UK Contact: William Reed Health Claims Workshop www.foodex.co.uk (Feb 18-20, 2016) Venue:Brussels, Belgium Dairy UK Dinner (June 29, 2016) Contact: Nutrition & Health Claims Venue: London, UK Europe Contact: Dairy, UK www.healthclaims.eu www.dairyuk.com Interna�onal C�eese Awards (July Ice-cream Expo (Feb 18-20, 2016) 26‐27, 2016) Venue: Aventura, US Venue: Nantwich, UK Contact: IDFA Contact: Nantwich Agricultural www.idfa.org Society Interna�onal Sweetener Colloquium www.internationalcheeseawards.co.uk (Feb 21‐24, 2016) India Interna�onal Dairy �xpo 2017 Venue: Aventura, US (Feb‐16‐18, 2017) Contact: IDFA Venue: Bombay Conven�on and www.idfa.org E�hibi�on Centre, Mumbai Contact:Mukhtar Pathan , ph: ‐040‐ GulFood (Feb 21‐25, 2016) 65707722 Venue: Dubai World Trade Centre Email: maarcservices@gmail.com www.gulfoodmanufacturing.com Web: m.pathan@koelnmesseindia.com IDF Parallel Symposia (April 11‐13, 2016) (The dates and ��e are sub�ected to Venue: Dublin, Ireland Contact: Interna�onal Dairy Federa�on change. We will not be responsible www.idﬁngredientsandcheese2016.com to any changes. Please contact the sources directly)

Dairy Times

(contd...on pg.25)

Vol. 1, Issue 01 -February-March - 2016

NEWS

Mumbai HC calls on govt and FDA on milk adulteration plea

filed by Colonel (retired) Chandrashekhar Unni and activist Abhijeet Bannerjee through advocate Gunratan Sadavarte claimed that 30 per cent of the milk samples tested in the state showed adulteration whereas 46 per cent samples were sub-standard.

DSM’s Delvotest T receives external validation for dairy antibiotic residue testing

Sadavarte reportedly informed that the research was conducted by a consumer NGO – Mumbai Grahak Panchayat, between 2012-2015.

Our Bureau, Mumbai

umbai high court has recently issued notices to the Maharashtra government and the Food and Drug Administration (FDA), after hearing a public interest litigation (PIL) alleging that there was a mass adulteration in milk in the state. In response to the plea, the court has sought reply from the state government and the FDA. According to media reports, The PIL, that was

The survey showed samples being collected in Mumbai, Pune, Thane, Raigad and Ratnagiri. The survey argued that out of the total samples collected, around 30 per cent of it were adulterated and these samples were adulterated with urea, starch, sugar and water. Second, it reportedly claimed that milk suppliers had written a letter to the legal metrology department admitting that they charged Rs 2 on extra 1 litre packet and on a total of 45 lakh litres of milk packets.

Indian dairy players to tap Russian market Sodhi states, “We also have asked Indian government to convey this to the Russian government. The demands they are making are impractical.”

Our Bureau, Mumbai

n a bid to import cheese from Indian dairy players, India has inquired Russia to review the stringent conditions-livestock of at least 1,000 cattle heads to be eligible—it has laid down to tap Russian market. In this regard, recently, a senior official from Amul, India’s leading dairy player, accompanied prime minister Narendra Modi on his tour of Russia, seeking a review of the condition that is posing a huge hurdle as most of the dairy businesses in India depend on cooperatives to procure milk. As per the conditions laid down by the Russian government, only two dairy players are likely to qualify while missing out almost all the dairy players from India. R S Sodhi, MD, Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) [Amul], states, “The demands put before the Indian dairy players by the Russian government are highly impractical, 1,000 cattle cannot satisfy a huge consumer base of Amul. Thus, we have cooperative model. Even if we take it as a mandatory requirement, how can we stand before the competition on foreign soil?” He adds, “We need to have more milk procurement to satisfy foreign demands. One-thousand cattle can generate a maximum of 40,000 litre of milk, which is very less. We have several products on our portfolio at Amul. How to meet huge demands with such a small quantity of milk? Amul has a cooperative model of operation, which enables us to procure more.”

Our Bureau, Mumbai

SM Food Specialties announces the successful validation of its testing tool, Delvotest® T, for determining up to 27 antibiotic residues in raw cow’s milk and dairy ingredients, such as milk powders. The report, published by Taylor & Francis,reviews the test’s ability to identify multiple antibiotic residues. Validation was performed by two independent facilities in Europe and Asia in accordance with the European Community Reference Laboratories (CRL) guidelines. Delvotest® T is a broad-spectrum test which

and freezing," says a senior officer. For the purpose of creating awareness on the subject, a government resolution released on Friday claims to circulate the contact details of all committee members so that consumers can lodge their complaints against any kind of illegal overcharging by vendors. The committee has also been asked to closely study the entire process of packaged food leaving the source and reaching the destination. "It will fix the problem after studying it in detail and then discuss the outcome," the officer adds.

Throwing light on the issue, Anup Chatterjee, director, business development, Schreiber Dynamix Dairies, Pune, Maharashtra, comments, “Russia has a huge demand for cheese. Russians have a habit of eating cheese. Russian government has imposed sanctions on imports from the European Union. This is a result of not following the Russian guidelines. This can be a warning that Russian government is strict with its laws.” Our Bureau, Mumbai

Officials of Export Inspection Council (EIC) are said to have prepared guidelines for disease-free procurement of milk but these have been delayed due to the pending approval from ministry of industry and trade, India. Meanwhile, various suggestions were put forth during the dialogue with the Russian government's representative. A source close to the ministry, avers, “We suggested that one can put up a check post at the milk procurement centres where a clearance certificate can be issued to ensure that the milk procured is free from contaminants and other illnesses.”

Ingrid Damen, Business Line Manager Food & Crop Protection at DSM Food Specialties comments: “The presence of antibiotic residues in raw milk poses a significant risk to consumer health, including allergic reactions and antibiotic resistance. It is therefore vital that farmers, dairies and milk control laboratories take specific measures to determine the quality and safety of their milk. Delvotest T is a proven tool to help identify the antibiotic residues in cow’s milk, and we welcome the results of this new validation study.”

Five-member committee to probe into over-priced milk issue

Nevertheless, the protocol is expected to establish a new market for Indian dairy players. In the past, Amul had appreciated the protocol as it will open new markets for the dairy industry.

He confirms, “The representatives from the Russian government have already visited Indian dairies earlier and have selected only two dairy players from India who matched their requirements. Schreiber Brazil is already one of the prime exporter of dairy products and solutions to Russia. We are seeking real business out of this deal.”

identifies a variety of antibiotics with particularly high sensitivity for tetracyclines. In this validation study, Delvotest® T was evaluated against five criteria, including the screening target concentration (STC) detection capability, false-positive (FP) and false negative (FN) rates, robustness and cross-reactivity. The report states that “this multi-residue test was easy to use (no specialised analyst required), cost effective (no sample preparation), fast in terms of result delivery (3hrs 15mins) and robust since incubation temperature change and delay of reading did not impact the final result.”

looded with complaints of packaged food, particularly milk being sold at higher than the printed price, the food and civil supplies department has set up a vigilance committee headed by the minister himself to probe the alleged irregularity. The five-member committee set up at the state level recently also comprises the department secretary and at least two residents selected by the government. The committee is expected to meet every month to review the situation, with minimum 50 per cent of its members attending. On similar lines, a four-member committee has been set up at the municipal level for better implementation of the measures. Department sources said one of the major reasons behind the problem was staff crunch. "It is not possible for one food inspector to physically check so many outlets and stalls. Therefore, to address the issue for now, the government will create awareness about the actual price of the products, which includes cost of transportation

Dairy Times

The resolution makes it mandatory for the committee to hold monthly review meetings from time to time. These meetings should at least have 50 per cent attendance and should last for minimum one hour. The committee's tenure has been fixed for three years. The issue of disparity in milk prices was raised by leader of opposition in legislative council Dhananjay Munde during the budget session of the state legislature in March 2015. Following the debate, in May 2015, the Maharashtra government had asked milk cooperative societies and distributors to slash prices by Rs.2 to Rs.5. "I have directed the milk cooperative societies and distributors to slash the market price of milk by Rs.2 to Rs.5 as they have been earning more than double the procurement rates," Khadse confirms. "These milk distributors have been procuring milk from farmers at Rs.14-16, while their market ranges between Rs.40 and Rs.60."

Vol. 1, Issue 01 -February-March - 2016

CHEESE MARKET

India the next big cheese market

By Basma Hussain

ntroduction India is the largest producer of milk, which is the most widely produced agricultural commodity worldwide. With the ease of availability of raw material, the milk processing industry is registering new levels of growth. Among the processed dairy products, the most promising segment both in terms of consumer demand and business profitability is the cheese segment. Traditionally, India is not a cheese consuming nation as the Indian consumer's palate has been adapted to the softer Indian variant of cheese called paneer. But, in recent years, given the magnitude of the demand from Indian consumers, India is the next big market in terms of

cheese consumption. India is second only to the EU-27 bloc that collectively produces over 156 million tons, as per the USDA. Further, India’s milk production is expected to total 170 million tons, by 2020, thus surpassing the global average growth rate of approximately 7 per cent. With the ease of availability of raw material, the asyet-nascent milk processing industry is registering new levels of growth. Milk processing in India accounts for approximately 35-36 per cent of the total production, with a majority of the share being consumed in a farm-fresh, or non-pasteurized, state sold through unorganised channels, while the organised dairy segment constitutes merely around 15-20 per cent of the total processing market. The main value-added products include milk powder, whitener, packaged milk, butter, ghee, yogurt, cheese, and ready-to-drink milk products, which are, thanks to high consumer demand, growing at anywhere between 15 and 25 per cent.

un-spreadable processed cheese. The segment is well organised, comprises regional, Indian, and international players, and is registering high levels of entrepreneurial activity. On the other hand, the unprocessed cheese market is largely associated with the soft cheese category in India, usually associated with paneer. The traditional soft cheese constitutes over 55 percent of the total market, with only a small fraction thereof being contributed by the organised sector and is expected to continually form the major chunk, given the Indian consumer’s behavior, for years to come. The market has been dominated by the cooperatives and regional players, with only a few international players making any inroads. The Gujarat Cooperative Milk Marketing Federation (GCMMF) with its Amul brand of cheese has been the pioneer and is a formidable player enjoying a majority share in the market, followed by Britannia. The imported gourmet cheese market currently occupies a mere 5-7 percent of the total cheese market, but this niche segment is growing at over 30 percent. The rest of the market is split between other players such as Parag Milk Foods, Gowardhan Foods, Danone, Milky Mist, Heritage Foods, Mother Dairy, Vijaya Foods, Milkfed and Verka. Some of the global brands that have a long-standing presence in India include Dabon International, Bongrain SA, Kraft’s, Fromageries Bel, and Arla Cheese. GCMMF with the Amul brand continues to be the main operator in the branded cheese market in India. It pioneered the market for processed, branded cheese. Britannia Industries joined the fray in the cheese market in mid-1990s through an arrangement with Dynamix Dairy Industries (DDI). Britannia’s cheese is sold in tins in the form of cubes, and in individually wrapped slices. The network covers some 60,000 dairy outlets equipped with cold cabinets, refrigerators and insulated boxes. Amul covers some 500,000 retail outlets. Britannia has launched new variants of flavoured cheese. The cheese cubes are available in three flavours Masala Mania, Mirchi Poppers and Cream ’n Onion. Amul has a cheese spread in garlic and pepper flavours. Pune-based Parag Milk Foods, a player in the

This forecast also accounts for the fact that, although Europe and North America are the primary cheese markets today, a saturation therein is forcing suppliers to look elsewhere, to such currently major importers as Japan and Russia, and to developing markets like India. The Indian cheese market is presently worth around USD 237 mn, but is expected to grow at roughly 15-20 percent annually.The Indian cheese market is expected to grow at a CAGR of nearly 18% during 2015-2020. Product-wise, the global market deals in almost 3,000 varieties of cheese, whereas in India only about 40-45 variants are being marketed, presenting much room for the market’s expansion. By industry estimates, the current household penetration in terms of cheese consumption is less than 7-8 percent. The per capita consumption of cheese in India is a mere 200 gm. per year in contrast to the global average of 7 kg per annum; the average for urban India, however, is 700 gm. per person. Geographically, the top six cities consume approximately 60 percent of all the cheese sold in India. The cheese arcade In India, the processed cheese market forms almost 45 percent of the total market that is likely to grow a higher-than-average CAGR of around 25 percent, which includes all spreads, cubes, slices, tins, slabs, etc. Within the processed cheese segment, around 60 percent of the market is dominated by

cheese business, with the brand name Go (for Gowardhan), is selling Cheddar and Mozzarella, and planning to introduce Emmental cheese in the market. All the cheese products of Gowardhan are made in the world-class facility situated at Manchar (near Pune) in state-of-art advanced cheese plant, with staggering capacity of producing 40 MT cheese per day. The assorted cheese products catered to by Gowardhan includes processed cheese and cheese spreads, cheese slices, sandwich slices, pizza cheese, Mozzarella cheese, pizza topping, Cheddar cheese (including Orange Cheddar), Gouda cheese, Monterey Jack cheese, Colby cheese, Emmental cheese, Parmesan cheese, cheese wedges, and Nacho cheese. They cater to Mozzarella cheese in shredded and diced forms too. French cheese major, Fromageries Bel, has entered the Indian market with La Vache Kirit(popularly

known as ‘The Laughing Cow’). The Bel product is being produced at Bel’s facility in Poland exclusively for the Indian market. Fromageries Bel has launched laughing Kirit (creamy cheese in cube form) and Babybel (semi-hard with a wax coating appropriate for sandwiches). Along with ‘Laughing Cow,’ Woerle’s Australian cheese brand, ‘Happy Cow,’ Nestle and Kraft’s brands have started marketing their products in the Indian market. Himalaya International Ltd, Himachal Pradesh, prepares Mozzarella cheese, exclusively for export. La Ferme Cheese was started to develop a line of handmade farm cheeses for the citizens of Auroville, Pondicherry. The firm adopts traditional methods for cheese making. The team includes professional Indian, Dutch and French cheesemakers who use natural whole cow milk, salts, vegetarian enzymes and seasoning cultures. From fresh cheese including Mozzarella, Feta, Ricotta, to seasoned cheeses like Lofabu, Auroblochon, Parmesan, and Jeera cheese, La Ferme produces about 100 kg of handmade cheese in over 10 varieties daily. Foreign brands in India include Provolone, Colby, Mozzarella and Parmesan from Italy, Cheddar from Dutch and Gruyère. The US-based Philip Morris, which brought in its Kraft cheese brand earlier, has gained a significant presence in the market. The rest of the market is spread among Verka, Nandini and Vijaya. Dabur claims a product range of 20 varieties of cheese under Le Bon brand. Dabon has a manufacturing facility at Noida with an installed capacity of 12,000 tonne per annum. Players such as Dabon have realised the importance of “Indianisation” and added paneer to their portfolio, while others are adding tins, cubes, slabs, sticks, etc. to their product offerings. In terms of prices, the average unit price has registered an increase over the past year as a result of consumers upgrading to more premium variants as well as an increase in milk prices and inflation in general. Premium imported cheese has takers too. Westernstyle processed cheese is sold by large companies under their brands. The processed cheese market including its variants like processed cheese, cheese spreads, Mozzarella, flavoured and spiced cheese, is estimated to be 10,000 tonne per annum (HS & SL estimates). The four metro cities alone account for > 60 % of the consumption. Mumbai is the largest market, accounting for 30% of cheese sold in the country, followed by Delhi (20%), Kolkata (7%) and Chennai (6%). Types of cheese in India The kinds of cheese that are available today in India vary and are classified as hard cheese, soft cheese and very hard cheese: Cheddar Cheddar is a kind of hard cheese that is relatively more famous than other hard cheese types. Cheddar can be mild or sharp flavoured and can be smooth or dry, depending on the age of the cheese. It can be anything from just a month old to even two years old. Cheddar cheese is normally used for cooking purposes and as ingredients for soups

Dairy Times

and sauces. Cheese is also used for grating and melting. Mozzarella Cheese Mozzarella cheese is of two types (a) low-moisture (45-54% moisture) part skim Mozzarella (referred to as pizza cheese) and (b) full-fat Mozzarella cheese (high moisture – up to 60%). These are common in the marketplace. The high demand for Mozzarella cheese is owing to its emergence as an integral part of pizzas. Even though this cheese is often substituted with other cheese when making pizza, nothing can make a pizza look, feel and taste - like mozzarella cheese can. Pizza cheese creates a stringy (stretch) look when a hot pizza is pulled apart or cut. Mozzarella made from buffalo milk has a richer concentration of proteins, minerals, nutrients as compared to cow milk cheese. Emmental Cheese Emmental is a type of Swiss cheese made from whole cow's milk. Emmental is a firm cheese with a pale yellow colour and possesses a buttery, mildly sharp, slightly nutty taste. Emmental features the characteristic holes or ‘eyes’ typical of Swiss cheese. The holes in such cheese are formed by gas bubbles (carbon dioxide) released by the bacteria (starter culture). Since the cheese melts very well, it is frequently used in sauces and grilled sandwiches. Emmental is one of the two main cheeses (along with Gruyère) in the traditional fondue recipe. Processed Cheese and Cheese Spreads Pasteurised processed cheese (maximum 47% moisture) is prepared by grinding, blending, and heating one or more natural cheeses (of different stage of ripening) together in presence of emulsifying salts (sodium salts of citrates or phosphates) to all achieve uniformity and prolonged keeping quality. Pasteurised processed cheese products usually have good melting properties. Cheese spread is similar to pasteurised processed cheese food except that an edible stabiliser is added and the moisture permitted is greater (i.e. maximum 60%) than for processed cheese. This allows for smooth spreading at refrigeration temperature. Future Cheese represents one of the fastest growing markets among dairy products. Traditionally, India has been a paneer consuming market which is dominated by the unorganized players. The rise in food service outlets (e.g. Pizza Hut, Domino’s etc.) across the country and changing food habits has triggered a robust increase in the demand for cheese in India. According to a new report from IMARC Group entitled “Dairy Industry in India: Market Size, Growth, Prices, Segments, Cooperatives, Private Dairies, Procurement and Distribution”, the Indian cheese market in terms of sales values is expected to grow at a CAGR of around 31% during 20152020. The Indian fast food market represents a major driver of the cheese industry in the country. The Indian fast food market is currently worth over a billion dollars and growing at 25%-30% annually. Cheese is quite popularly taken with a number of fast foods such as pizzas, burgers, garlic breads, sandwiches, etc. Apart from Western dishes, the popularity of cheese is also increasing in traditional Indian dishes. Cheese is also being added as a taste enhancer in a number of traditional Indian recipes such as dosa, Parathas, uttapam, etc. Also rising disposable income and government initiatives are the major factors contributing to the growth of cheese in the country.

Vol. 1, Issue 01 -February-March - 2016 (contd...from pg.22)

share of organised dairy segment could rise to 25% by 2017-18 from 19% in 2014-15 as the organised dairy industry grew at a rate of 22% a year in the past five years, against 17% for the entire dairy industry. The demand for branded milk and valueadded products are expected to grow 13-15% and 22-24%, respectively over the medium term. What is the future plan of your company & how you see future growth of Indian dairy industry? We believe that our brands are one of our key strengths and that our customers, distributors, stockists and members of the financial community associate our brands with trusted and superior quality products. We undertake extensive consumer and market research to gauge the various aspects of a product and plan our marketing campaigns. On the basis of our product and market based research studies, which we conduct on an ongoing basis, we intend to continue to enhance the brand recall of our products through strategic branding initiatives, through the social media and consumer engagement programmes. We use various media channels to promote our brands including placing advertisements and commercials on television, newspapers, hoardings and on digital media. We also extensively promote our brands at stores and super-markets through in-shop activities and engage in consumer activities such as cooking competitions and school contact programmes. We constantly focus on research and development to distinguish ourselves from our competitors to enable us to introduce new products based on consumer preferences and demand. We propose to set up a research and development centre at our Manchar facility to develop new products and processes and a technology centre at our Subsidiary for training and development activities and focus on animal husbandry. We intend to increase the share of our value-added product portfolio by focusing on health and nutrition to cater to evolving consumer trends.

NEWS

McKinsey & Company Study Shows Bold Changes Can Bring Greater Growth for Dairy Our Bureau, Mumbai

he future is vibrant for US dairy companies willing to make bold changes to pursue high-growth opportunity areas,according to new research from McKinsey & Company released recently at Dairy Forum 2016 in Phoenix. In a presentation to nearly 1,000 dairy executives from across the country and Canada, McKinsey consultants outlined the challenges and opportunities facing the industry, concluding that future growth in the competitive dairy landscape will require decisive focus and fortitude to implement a combination of new strategies. Today’s presentation, “Growth in an Evolving Dairy Market: Strategies for US Dairy Companies,” hinged on independent research that McKinsey & Company conducted last fall specifically for discussion at Dairy Forum 2016. The research involved in-depth interviews with 33 dairy executives followed by a broader survey of 61 dairy companies representing all dairy products and business models. The research findings also included responses from 10 McKinsey consultants with expertise in retail and dairy in both the United States and abroad. Paul Carbonneau, a McKinsey partner, and Ludovic Meilhac, an associate partner, told today’s audience that the global imbalance of growth in dairy consumption leaves U.S. dairy manufacturers with the option of chasing international opportunities or competing for share in the increasingly competitive home market. Based on the research, the consultants believe U.S. dairy companies should consider

four strategic responses – global growth, growth beyond traditional business models, insight-driven innovation, and operational and performance excellence – to capture growth in the current evolving environment. Some manufacturers, they said, will grow by capturing share in the global market and employing “best-in-class” international export and local production capabilities. Other companies, excited about the prospects of ingredients and product categories beyond traditional dairy, will succeed by redefining their businesses and broadening their consumer bases. Targeting these markets will require “fit-for-purpose divisions” and tightly focused sales. Noting that consumer preferences, particularly among Millennials, are evolving faster than ever before, Carbonneau and Meilhac explained the benefits of insight-driven innovation. Companies with top-notch consumer insight and product development capabilities can win consumers over through innovative product portfolios, they said. Growth opportunities are also available to companies that heighten their efforts on operation and performance excellence, the consultants said. For dairy companies to remain competitive, they will need additional emphasis on network optimization, manufacturing and procurement efficiencies, supply chain and logistics, and instore execution. “Growth often requires changing how you do your business,” Carbonneau said, offering recent transitions made by companies in the carbonated soft drink industry as a good example. Facing

Dairy Times

annual declines in consumption, these soft drink companies redefined their businesses from being “cola-players” to companies that succeed by leveraging existing assets – such as worldclass distribution and marketing and packaging capabilities – and becoming “lifestyle refreshment companies.” The soft drink companies have many parallels with companies in the dairy industry, Carbonneau said. He encouraged the dairy executives to consider adopting new growth-oriented definitions that would move them from makers of milk, cheese, yogurt or ice cream to health-and-wellness lifestyle companies in the food and beverage category. McKinsey & Company has prepared a white paper, “Got growth? Opportunities and challenges for US dairy industry,” that highlights the research findings and suggested responses in more detail which is available on its website.

Vol. 1, Issue 01 -February-March - 2016

INTERVIEW

From Make in India to Make in Rural India Through Dairying

BOUT: Fortyfive years after Operation Flood - that made India the world's largest milk producer - India continues to be on By R.S. Sodhi the lookout for the next breakthrough in agricultural produce and productivity. As Indias population grows, it desperately needs the next big burst in productivity to feed the millions being adding to the population year after year. What's the roadmap to the next White Revolution? R.S. Sodhi, Managing Director, Gujarat Cooperative Milk Marketing Federation, suggests the way forward. India is the largest producer of milk. It is a matter of pride. I feel privileged to have closely witnessed a part of India's journey from being a milk-deficient nation to becoming its largest producer. It is an honour to be a witness to the revolution that started about 50 years ago with Operation Flood that was the basis of this achievement. While it is great to take pride in past achievements, one should not rest on one's laurels but keep looking ahead, anticipate, and prepare oneself to take challenges headon. One of the greatest lessons my mentor, Dr. Verghese Kurien, gave me was this - "In every crisis, if you look carefully, you will spot an opportunity. My insistence is on finding and seizing that opportunity." Considering the dynamic environment we

live in today, I find that the dairy industry is full of opportunities. It is a vital part of the global food system and plays a key role in sustainability of rural areas. The world is currently witnessing significant volatility in farm-gate prices. However, prices to Amul farmers have been rising. The prime reason is that our farmers own not only production but also processing and marketing of milk and milk products. Also, a significant part of their earning comes from value-added products rather than bulk sales. A rise in demand for milk and milk products is being seen worldwide and the industry is globalising. However, the question of how we can give impetus to the industry to continue reaping its economic benefits still remains. The dairy industry in India is unique. With six lakh villages housing about 90 crore people, dairying is not just a large economic activity but also an integral part of our social and cultural heritage. Its uniqueness lies in its unifying power, in the fact that no other industry touches lives of millions of farmers, of which 70 per cent are landless. Complementing this are Indian climatic conditions that support animal husbandry. Dairy, in effect, could become a great tool for equitable growth and income distribution.

What remains is providing market access by offering stable and remunerative prices to farmers and encouraging this generations-old sustainable livelihood source. We have, over the years, come far from being an agrarian economy to become a more service sector-driven one, achieving accelerated gross domestic product growth. Every economy aspires to grow; growth, however, has a flip side - inflation. Further, if growth is heavily skewed towards the urban side, it magnifies the impact of inflation owing to the income gap. To keep this evil under check, we need balanced and inclusive growth. For inclusive growth, it is pertinent that our villages progress, and if villages are to progress, dairy, an integral part of the rural economy and livelihood, must also progress. Current Scenario in India The unemployment rate in India rose to 4.9 per cent in 2014 from 4.7 per cent in 2013, mainly on account of increase in joblessness in rural areas. While the unemployment rate dropped in urban areas to 5.5 per cent in 2014 from 5.7 per cent in the previous year, the unemployment rate in rural areas increased from 4.4 per cent to 4.7 per cent during the period. In this context, the Make in India initiative, which aims at job creation, should focus on rural India to ensure impact. Thus, Make in Rural India is the way to go. For this, what can be better than the dairy sector, a sector that touches the lives of millions of farmers twice every day? Apart from a well-conceived strategy for increasing productivity of milch animals through superior breeding, nutrition and health practices such as the National Dairy Plan, we need to learn from the best practices across the world. Outlook India is expected to see significant growth in milk production. However, with growing demand led by increasing income levels on the one hand and limited scope for increasing cattle population due to natural resource constrains on the other, the sector is likely to face newer challenges. Let us have a closer look at the outlook for the Indian dairy industry. 1. More mouths to feed than hands to produce implies need to increase productivity: Food still accounts for the highest share of monthly household expenditure in India at 31 per cent. Within food, milk and dairy products account for the highest share after cereals. The per capita milk availability in India has gone up from 126 gm per day in 1960 to 359 gm per day in 2015. This is despite our population rising by three times during the period. Global percapita milk availability has actually declined by 9 per cent over the past 10 years. However, it is important to note that by 2025, India will beat China to become the most populous country in the world with 1.4 billion people. Further, by 2060, 56 per cent Indians will reside in urban areas and 44 per cent in rural areas. India is likely to have 143 cities with a population of more than one million by 2060. On the other hand, the number of villages will witness only a marginal increase, from 640,000 lakh in 2012 to just 675,000 lakh in 2060. This clearly indicates that India will face the problem of 'mouths to feed' growing faster than 'hands to produce'. This will require a continuous increase in milk production. Augmenting production through breeding and technological innovations would be the right way to deal with this crisis. The Indian model of milk production is characterised by low input-low output. Despite lack of water

and gradually declining arable land, dairy farming is on the rise. This has been made possible by optimal integration of production unit (the cow), technologies and equipment, operator (the farmer) and production environment (the dairy farm). Apart from a well-conceived strategy for increasing productivity of milch animals through superior breeding, nutrition and health practices such as the National Dairy Plan, we need to learn from the best practices across the world. For instance, Israel's Super Cows that produce 12,000 litres milk a year are the result of advanced feed, technology and breeding practices. Thus, trusting capabilities of our farmers and integrating them with superior, even imported, technology, feed and fodder is the way ahead. 2. Policy changes should precede structural changes to ensure innovation: Innovation would necessitate encouraging dairy entrepreneurs in cooperative as well as private sector. This would require policies that safeguard the interests of small players. It is important to note that the government should not lose sight of long-term goals for shortterm gains. Free trade agreements, or FTAs, for instance, will allow EU governmentsubsidised products to be imported from Europe with little entry barriers. In the EU 2014/20 budget, 363 billion euros have been allocated for farm subsidies, which will make EU farm and dairy products ridiculously cheap compared to Indian products. We must also take lessons from China's FTAs with New Zealand and Australia. From an economic perspective, this agreement has essentially secured a greater share of growing Chinese market for the two nations. The FTAs have been a remarkable success for developed nations' dairy industries. Australian dairy exports to China, for example, have almost quadrupled between 2008 and 2012. In such circumstances, the so-called 'Free' Trade Agreement could well turn out to be our costliest trade agreement. We cannot compromise the economic and commercial rights of farmers and consumers to provide impetus to India's exports. Dr. Kurien faced a similar situation many years ago. It was pathbreaking to think of monetising the dairy commodities received as grants from the EEC so that we do not retard our own capabilities. This idea led to the birth of Operation Flood whose outcomes are insurmountable. 3. Professional institutions 'of the farmers, by the farmers, for the farmers': Though change is the only constant, it cannot be based solely on the profit motives of middlemen. Dr. Kurien's belief in entrepreneurship of farmers and the potential of Indian markets helped him in successfully building 200-plus people's institutions. The per capita milk availability in India has gone up from 120 gm per day in 1960 to 359 gm per day in 2015. This despite our population rising by three times during the period. However, he drove each of these institutions like businesses, combining professional management with technological expertise. The idea is to nurture dairy entrepreneurs through effective training of youth at the village level coupled with dedicated leadership and professional management of farmers' institutions. This will, in effect, instil efficiency in the system so that farmers are not forced to demand grants and external support for financing the inbuilt inefficiencies of the system.

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4. Opportunity in global trade: India is surrounded by countries and regions that are milk-deficient, such as the Middle East, South Asia and Southeast Asia. There is ample scope for export of value-added milk products to Bangladesh, China, Singapore, Thailand, Malaysia, Philippines, Japan, the UAE, Oman and other gulf countries, all of which are located close to India. At present, the population of South Asia alone is growing at 1.3 per cent a year; it is likely to be 2.2 billion by 2050. This presents an opportunity for India's dairy industry. 5. 'Healthy practices', a pre-requisite for healthy dairying: Along with raising productivity of milch animals to cater to domestic as well as international demand, it is important that we work on further improving quality, both in terms of input as well as output. There is a strong need to take concrete steps towards educating the farmers. Almost every element in the environment contributes to the quality of milk, a commodity that comes from every corner of the country twice every day. Thus, agricultural practices, sanitation, quality of drinking water & fodder, type and quality of pipelines - all of these need to be aligned to the goal of healthy milk. It is interesting to note that Europe started adopting healthy agricultural and sanitation practices at the grassroots level in the 1970s and could implement its stringent quality norms only in the late 1990s. The so-called 'Free' Trade Agreement could well turn out to be our costliest trade agreement. We cannot compromise the economic and commercial rights of farmers and consumers to provide impetus to India's exports. Also, with weather uncertainties rising, it has become all the more important that our farmers display a high sense of hygiene and know-how of animal health and nutrition. Combined with availability of on-demand veterinary service and high-quality cattle feed, this is bound to yield significant positive results in enhancing our milk output. 6. Looking beyond: It is important to understand the multiple dimensions of milk. The value of milk produced in the country was Rs 4,18,000 crore in 2014/15, making it one of the key commodities in India. More than that, milk is the answer to questions of economic self-sufficiency of the rural lot. The business provides employment to the landless and land owners alike and the income thus generated checks urban to rural migration. In addition, milk, being a complete nutrition, will play a key role in combating malnutrition and poverty. Thus, growth of the dairy sector in a setting of weak infrastructure and governance has given rise to certain challenges. To meet these, the sector requires renewed attention and investments from government and agricultural research and development community. (Courtesy:Business Today, Delhi Edition, January 17, 2016)

Vol. 1, Issue 01 -February-March - 2016

COMPANY PROFILE

Vino Tech provides cutting edge Eggless Belgian technologies to the Ice Cream industry Waffles: A E rising trend in full gear! N. Srinivasan ( Proprietor)

he new trend has shifted to its 4th gear and is running in full speed. Many of the Industry people, new enthusiastic, small and big cafeterias, chocolaterias, ice-cream parlours, bakeries, dessert Nitin Mamania

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stablished in the year 2006, Vino Technical Service, proudly introduce themselves as one

of the prominent manufacturer, exporter and supplier of a diverse range of Homogenizers, Pasteurizers, Plunger Pumps, Ice cream Equipment, Pumps and Pumping Equipment. The gamut offered is extensively used for different purposes in food, beverages, pharmaceutical, petrochemical, cosmetic and engineering industries. With the assistance of Good Manufacturing Processes (GMP) and cutting edge technology, company is able to acquire a huge clientele all across the globe. Under the able guidance of mentor of the company N. Srinivasan, they are able to carve a niche for themselves in this domain. With their rich experience of 5 years and indepth knowledge about the process, company is

maintaining pace with the international market demands. With the assistance of our competent team and R & D department, company offers precision engineered pumps and pumping equipment. They are well versed with the latest technological advancement and market research. Also, they have state-of-the art manufacturing facilities which include latest machineries, tools and equipment to manufacture the comprehensive range. Timely delivery and customization provision are some of the key factors that help them to gain total customer satisfaction from our global clients. Vino Tech deals mostly in India, Sri Lanka & Around Colombo, DehiwalaMount Lavinia, Moratuwa, Sri Jayawardenapura Kotte, Negombo, Kandy, Kalmunai, Vavuniya, Galle, Trincomalee, Batticaloa, Jaffna, Katunayake, Dambulla, Kolonnawa, Anuradhapura, Ratnapura, Badulla, Matara, Puttalam, Chavakacheri, Kattankudy, Matale, Kalutara,

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Mannar, Panadura, Beruwala, Ja-Ela, Point Pedro, Kelaniya, Peliyagoda, Kurunegala, Wattala, Gampola, Nuwara Eliya, Valvettithurai, Chilaw, Eravur, Avissawella, Weligama, Ambalangoda, Ampara, Kegalle, Hatton, Nawalapitiya, Balangoda, Hambantota, Tangalle, Moneragala, Gampaha, Horana, Wattegama, Minuwangoda, Bandarawela, Kuliyapitiya, Haputale, Talawakele, Kadugannawa, Harispattuwa, Embilipitiya & Sigiriya.

28 Milk Industry must recreate its existence: Experts Vol. 1, Issue 01 -February-March - 2016

Our Bureau, Mumbai hough milk prices continue to rise at regular intervals, all is not well with the milk industry. Milk dealers and farmers

costs Rs. 120. On an average, dairy farmers spend Rs. 300 on a cow a day. Apart from this, maintenance and labour costs also add up to the total expenditure. Since most families involve themselves as workers in the business, the labour cost gets adjusted.”

continue to suffer due to various problems. But experts dealing with the issue see scope for improving the situation by taking a holistic view.

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Farmers say they are the most affected as they say the price of feeds has risen over the years. Tamil Nadu Milk Producers Association secretary Rajendran says, “Milk production cost has increased over the years. When we were using indigenous breeds, the feed would be mostly green fodder, dry fodder (maize and corn stem), rice bran, rice porridge and other household bio waste. But for mixed breed from Jersey, Holstein Friesian (introduced in the 1980s) which give more milk, the feed has to be very good.”

While dairy farmers are worried about the increasing cost of feed, dealers feel betrayed that the commission rates have not been increased for the past 13 years. Tamilnadu Milk Dealers Welfare Association president S A Ponnuswamy says, “Milk industry consists not only of customers and milk producers, it also has milk distributors, wholesalers and dealers. While private milk companies give a commission of Rs. 4 for every litre, Aavin provides only Rs. 1.50 per litre which must be shared between the wholesalers and dealers. If a milk dealer sells 500 litres of milk a day, he would get only Rs. 250 as commission. This forces many retailers to stock private milk.” Regarding the prices for milk, monthly card-

Explaining, Rajendran says, “To get one litre of milk, a mixed breed must be fed 400 gm of concentrate (rice bran + pulses, vitamins and other salts). For producing at least 10 litres of milk, one has to feed 4 kg of concentrates. And a 70 kg bag of concentrates cost around Rs. 1,300 while 10 kg of corn stem costs Rs. 300, and 10 kg of maize stem

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holders pay Rs. 2-3 per litre less than the MRP (maximum retail price), wholesalers and dealers get around Rs 1.50 per litre and co-operative societies get 0.50 paise less the MRP. If the rate system is streamlined and common rate is fixed, it will benefit every stakeholder involved in the milk trade, say experts. Perambur MLA and CPI (M) leader A Soundararajan, who participated in various protests on behalf of milk farmers and dealers, says, “Increasing procurement centres, milk procurement price, sale of milk and its products is the solution.” He feels Aavin must take steps to increase the sale of milk through various methods like introduction of 200 ml milk in the noon-meal scheme for schoolchildren. Some years ago, the State government stopped the scheme of supplying 200 ml milk to all students of the noon-meal scheme. If the scheme is re-introduced, milk sales will increase to 20 lakh litres per day.

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rick India Limited has been awarded “COMPANY OF THE YEAR AWARD” by Indo-American Chamber of Commerce (IACC-NIC) at their “Business Leadership Awards and Fellowship Night” on 14th September 2015, at Hyatt Regency, Bhikaji Cama Place, New Delhi. The Chief Guest of the event, Mr. Ravi Shankar Prasad, Hon’ble Minster for Communications and Information technology, presented this award to the Managing Director, Mr. Jasmohan Singh in the presence of Mr. Lalit Bhasin, Regional President and the Members of the Regional Council.

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Vol. 1, Issue 01 -February-March - 2016

NEWS

Telangana to scrap subsidy for dairy farmers producing more than 25 litres/day Our Bureau, Mumbai

amakrishna, a 30-year-old dairy farmer with seven buffaloes in a village in Telangana’s Ranga Reddy district, is in a fix now. The animals yield about 30 litres a day. This would mean about a daily income of 700. Though Vijaya Dairy, the public sector cooperative dairy, gives him 23 a litre – 6 short of the cost of production – a subsidy of 4/litre from the State government comes handy for him. “But we are not going to get this subsidy any longer. The State government has decided to do away with this subsidy for farmers who produce more than 25 litres a day. I have only one option before me – to reduce the number of buffaloes or to forgo the subsidy,” he said. Farmers managing small and medium dairy units that produce more than 25 litres are worried. Citing the example of the neighbouring Karnataka, they want the government to increase the subsidy to 7 from 4 a litre, instead of removing the subsidy. Opposing the government move, the Progressive Dairy Farmers’ Association has said the move

could severely impact the livelihoods of farmers, who were already in severe distress because of the severe drought. The government, which introduced the subsidy scheme a year ago for dairy farmers that supply milk to the Vijaya dairy, said it was not in a position to continue the scheme any longer. It spends 70 crore a year on the scheme that covers 81,000 farmers.

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This has come as a shocker to farmers as it could impact their livelihoods. “While we spend 29-31 to produce a litre of milk, we are getting only 23. If the government removes this incentive, it would severely impact our livelihoods,” Kandala Bal Reddy, General Secretary of Progressive Dairy Farmers’ Association, told BusinessLine.

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He said it was not fair on part of the government to leave out farmers that produce more than 25 litres. “The neighbouring Karnataka is spending 1,000 crore a year on the scheme. We urge the government to enhance the subsidy to 7/litre instead of diluting the scheme,” he said.

Mah govt.invests Rs. 50 crore for upswing of dairies

A government official, however, argued that majority of the farmers would still continue to get the benefit. “As many as 78,550 farmers would get the subsidy of 60 crore. Only a fraction of big farmers are excluded,” he argued.

He said the cooperative dairy charges 15 for handling on every litre it procured and sold. “Compare this with 10 in Karantaka. The local government can reduce the handling charges and pass on the benefit to milk producers and consumers,” he said.

28th-29th September 2016 Expo Center, Sector-62, Noida,(Delhi NCR)

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market and took away that business from the governmentrun dairies.

Our Bureau, Mumbai Maharashtra government is planning to revive its dairies and has earmarked 50 crore for their revival. It is also working to create a pan-Maharashtra brand in the State. A senior state government official said that a detailed study would be undertaken as how the government dairies could be turned around based on existing land and other infrastructure adding that a lot of attention would be given for creating its own brand and niche products in the market. Dairying could become a big money spinner for the State government. Currently, the state government dairies are only processing less than 1.20 lakh litres of milk per day out of the 125 lakh litres processed in the state. Private dairies process about 72 lakh litres and the rest is taken care by the co-operative dairies. The state’s government premier dairy Aarey was established in 1949 at Aarey colony, Goregaon and it was inaugurated by first Prime Minister Jawaharlal Nehru. Located in the western suburbs of Mumbai, the central dairy and surrounding colony is spread over 3,166 acres of prime land. The official highlighted that detail studies would be undertaken as to leverage the locational advantage of Aarey as well as other dairies in the State. Funding options for reviving the business would be considered in great detail. Since 1980s, the state government-controlled dairies have been on the decline as a number of cooperatives and private dairies entered in the same

The official said that the state government assumed that cooperatives dairies would be more efficient due to which the state dairies took a back seat. However, due to corruption and in-efficiencies that process never took critical mass. In the process, the farmers suffered a lot of hardships. Therefore, the new government wants to revive its dairies using the existing land and infrastructure. Chief Minister Devendra Fadnavis in a recent interview with BusinessLine had reportedly said that the government dairies would revive and a brand similar to Amul having a national reach would be created.

Letters to the Editor:

Regarding Indo-Russian dairy export negotiations , In July 2015, the Ministry of Commerce requested the Russian authorities namely, FSVPS to include a clause in the protocol, which would enable the protocol to be rediscussed after six months. The Russian side was initially reluctant but finally agreed to include the provision in Nov 2015. Then again the Indian side insisted that a particular clause which states that the Indian enterprise exporting dairy products to the Russian Federation, should have captive farms having at least 1000 heads, to be dropped. ‘What we want is that the protocol between Indian and Russian Governments should be concluded as soon as possible.

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121, 1st Floor, Rassaz Multiplex, Mira Road (E), Thane - 401107. India. Tel: +91-22-28555069 / 28115068.Email: info@indianicecreamcongress.in Web: www.indianicecreamcongress.in INDIAN ICE CREAM MANUFACTURERS ASSOCIATION Sudhir Shah-+91-9849025027 (Secretary IICMA) Samrat A. Upadhyay- +91-76988 69800 (Secretary General – IICMA) Regd. Ofce : A/801, 8th Floor, “Time Square” Building,C. G. Road, Nr. Lal Bunglow Char Rasta, Navrangpura, Ahmedabad - 380 009, Email: info@iicma.in Web: www.iicma.in

Vol. 1, Issue 01 -February-March - 2016

NEWS

Prabhat Dairy well placed in organised dairy space: Edelweiss

Our Bureau, Mumbai Prabhat Dairy is rapidly advancing towards becoming a B2C player (targeting 50% revenue contribution by FY19 from ~28% in H1FY16), while continuing to grow its B2B business. The companyâ&#x20AC;&#x2122;s 20 ton per day capacity cheese plant (third largest in the country) will drive growth in coming years. Initially, it is betting big on the Horeca (hotels, restaurants, catering) segment, which presents a huge conversion opportunity from unorganised to organised. One risk we envisage is likely increase in milk prices due to draught-like situation anticipated in Q4FY16 (to hit realisations). We believe Prabhat is well placed to milk growth in the organised dairy space (dairy space is expected to grow at faster growth in next 3 years as against 22% seen in past 5 years). Prabhat is targeting to bolster revenue contribution from the consumer segment to 40% by FY17. Dahi, UHT milk, paneer and cow ghee are the products that the company is focusing on currently. Going forward, cheese and shrikhand (to be launched in Q4FY16) will drive growth â&#x20AC;&#x201C; cheese has the potential to contribute ~INR3bn at peak capacity utilisation.

Hatsun Agro posts strong growth in Q3 despite tough conditions Our Bureau, Mumbai

atsun Agro has reported a 60 per cent jump in net profit for the third quarter of the current year, as compared to the corresponding period of the previous year. Investments in expanding capacities, infrastructure and branding, have all paid off giving the company, the largest private sector dairy player, the benefit of economies of scale. Net profit Hatsun has reported a net profit of 17.55 crore (10.87 crore) on a total income of 830.09 crore (713.22 crore) for the quarter ended December 31, 2015. The company procures and markets liquid milk under the brand name Arokya; ice creams branded Arun Icecreams and Ibaco; a range of dairy products under the brand Hatsun. RG Chandramogan, Managing Director of Hatsun Agro, said the company has managed to report a good performance despite adverse weather conditions, including intense rains and flooding in Tamil Nadu. Ice cream sales Sales of ice creams and curd had been hit more than usual during the season, which is even under normal conditions a low period. Situation returned to normal around December 15, and the worst is behind, he said.

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Vol. 1, Issue 01 -February-March - 2016

Dairy Times

Vol. 1, Issue 01 -February-March - 2016

NEWS

Novel Outlook & Opportunities For Indian Dairy IndustryFacinating World Of Functional Dairy Products & Ingredients By Dr. Rajiv Shah Scenario of Indian Food & Dairy Industry: India is world's largest milk producer, accounting for more than 16% of world's total milk Dr. Rajiv Shah production, as well as world's largest consumer of dairy products too. The total amount of milk produced has tripled from 23 million tonnes back in 1973 and expected a production level of 155 million tonnes in 2016. As per CRISIL Research estimates, the size of the Indian dairy and milk products industry stood at around Rs. 3,050 billion (≈50 billion USD) in 2012-13 & Rs 4,650-4,700 billion in 2014-15 (≈75 billion USD). The size of the Indian food industry was said to be about Rs. 8,80,000 crore (140 billion USD) in 2006-07. It was estimated around Rs.1,320,000 crore (212 billion USD) by 2015 with the expanding contribution of processed food from 43 percent to 53 percent. India’s food and beverages (F&B) industry will expand at an average annual pace of 24% to reach Rs.3.8 trillion in sales by the March, 2017. India’s food processing industry will reach USD 255 billion by FY2016 & is growing at around 10 percent annually, the country’s food ingredient sector is growing at around 15 percent. Functional Foods & Nutraceuticals: Functional Foods & Nutraceuticals are no longer new to dairy & food industry. It was estimated that the global functional food market revenue for the year 2013 was around $175 billion. With an annual average growth rate of about 10-15% the global market for functional food was around $230 billion in 2015 & is estimated at $278.96 bn by 2021. In 2013, top global functional food markets by country/region were: Japan (40%); US (38%); Europe (14%) & Australia (8%). India does not account for < 1% any significant production of functional foods. In these contexts, Indian Dairy Industry should also look beyond traditional dairy products – to the fascinating new world of functional dairy products & ingredients. Milk & Dairy Products as Functional Foods / Nutraceuticals: Milk and dairy products [especially fermented dairy products like synbiotic dairy products (probiotics & prebiotics), yoghurt, acidophilus/ bifidus milk, kefir, koumiss, dahi, chhas, lassi etc.] have been associated with health benefits for many years due to their rich content of diverse components viz. proteins, lipids, carbohydrates, minerals & vitamins. Many of complex milk components can be now fractionated as such or in modified form into individual entity e.g. specific proteins [Milk Protein Concentrate (MPC)contains 40–90% milk protein, Acid & Rennet Casein, Caseinates (Sodium, Calcium, Ammonium & Potassium salts), Whey Protein Concentrate (WPC),Whey Protein Isolate (WPI),Whey Protein Hydrolysate (WPH),α-lactalbumin,βlactoglobulin, Bovine lactoferrin, Bovine serum albumin (BSA), Immunoglobulins -especially from colostrums, Milk Fat Globule Proteins], fatty acid & lipid components [conjugated linoleic acid, Omega-3-Fatty Acids, Oleic Acid, Vaccenic Acid, Phospho/Sphingolipids, Butyric Acid, 13-Methyltetradecanoic Acid], lactose and other minor oligosaccharides (GalactooligosaccharidesGOS, lactulose; the major and essential minerals [such as calcium, magnesium as well as phosphorous]; and vitamins [especially the fatsoluble vitamins A, D, E and K as well as some of the water-soluble vitamins such as B12, riboflavin and C]. Milk proteins-casein as well as whey proteins- can be enzymatically modified to form bioactive peptides, which exhibits antibacterial, antiviral and antimicrobial action in general; EDITOR IN CHIEF Dr. J.V.Parekh

anti-inflammatory action; anti-thrombotic action; opioid, protection against metabolic syndrome, e.g., hypertension, serum lipid levels, glucose balance and body mass index; and protection against cancer and obesity. Hence, milk & dairy products as well as their individual fractionated components can form important ingredients in formulation of dairy based functional foods & nutraceuticals. Increasing recent findings have revealed the health benefits of milk and dairy products through an array of bioactivities such as modulating digestive and gastrointestinal functions, controlling probiotic microbial growth and immunoregulation, accelerating bone growth, and maintaining bone health. Recently, studies have been conducted to determine new health benefits of milk and dairy foods, such as maintenance of cardiovascular health, prevention of obesity and diabetes (lowfat milk), and antitumor activity (especially colorectal, bladder, and breast cancers). For example, numerous cohort studies demonstrated that higher intake of dairy foods, particularly lowfat milk, is associated with a decreased risk of

EDITOR Firoz H. Naqvi

CONSULTING EDITOR Basma Husain

colorectal cancer. Dairy products can be considered nutraceuticals without any fortification; furthermore, almost all types of nutrients can be fortified in milk. Various fortified dairy products are consumed by target populations, including elderly individuals, infants, youth, and pregnant women. Each population exhibits their own health needs, and fortified dairy foods can provide more nutraceuticals than the dairy product itself. Milk and dairy products provide all the necessary nutrients for healthy living for human beings of all age group. For the neonates, the colostrum produced by the mother during the 48–72 hours postpartum is the only source of all the necessary nutrients and the protection against microbial infection through the immunoglobulins. Babies obtain nourishment for several more months from milk with the additional benefits from the associated bacteria such as the bifidobacteria in their gut, especially breast-fed babies. For adults, milk and dairy products are consumed for their sensory qualities, nutritional value and for their many bioactive components. Based on all these facts, milk and dairy products

MARKETING EXECUTIVE S.H.Hasni

PRODUCTION MANAGER Syed Shahnawaz

as well as individual components are considered an important constituent of functional foods and have seen an increase in their production in the last few decades. Many of these functional dairy ingredients are now commercially produced by European & US companies & find increasing applications in formulation of Infant, Adult, Medical as well as Sports Nutrition Products in the category of “Functional Foods”. In India still the field is nascent; both for production of functional dairy ingredients as well as functional foods. Some leading functional dairy ingredient manufacturers in the world are: Arla Foods Ingredients, Sweden.; Fonterra, New Zealand; Saputo, Canada & USA; Glanbia Nutritionals, USA; Davisco Foods International, Inc., USA; Ingredia Nutritional, France; FrieslandCampina – DMV International and The Netherlands. (Dr. Rajiv Shah is a Technical ConsultantFunctional Foods & Nutraceuticals, has more than 35 years of professional experience..He can be contacted on +919825356851 or e-mail: rajiv10shah@gmail.com.)

GENERAL MANAGER Gyanandra Trivedi

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121, 1st Floor, Rassaz, Multiplex, Mira Road (E), Thane -401107. 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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