Dairy Times October November 2016

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Netherlands to host IDF World Dairy Summit

T

he International Dairy Federation's World Dairy Summit in Rotterdam, the Netherlands 16-19 October is set to address the key issues that continue to concern the global dairy industry, ranging from the recent decision by the UK to exit the European Union, to continued low milk prices and the impact of overproduction on the world.

Founded in 1903, the International Dairy Federation (IDF) is a non-profit private sector organization representing the interests of various stakeholders in dairying at the international level.

IDF is committed to furthering current knowledge and science on a wide range of issues by triggering state-of-the-art projects across the dairy chain.

Today, dairy is one of the most vibrant and strategic sectors, with a major impact on national

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economies, public health and the environment.

IDF members are organized in National Committees, which are national associations composed of representatives of all dairy-related national interest groups including dairy farmers, dairy processing industry, dairy suppliers, academics and governments/food control authorities.

Representing the dairy sector as a whole at international level, by providing the best global source of expertise and scientific knowledge in support of the development and promotion of quality milk and milk products, to offer consumers nutrition, health and wellbeing.

IDF aims to identify, elaborate and disseminate best practice at international level in order to guide the dairy sector and harmonise members’ work on a variety of issues along the dairy production chain including animal health and welfare, protection of the environment, nutrition, food safety and hygiene and food standards.

WDS 2016 will cover a wide range of topics. This varies from marketing and economics to food safety, farming and environment & biodiversity.

(Contd on p no,8)

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Amul, 25 others use e-platform to sell dairy items

W

ith the Centre still grappling with the idea of a Pan-Indian electronic marketing platform for agricultural produce which could ensure better price realisation for the farmers, 26 state dairy cooperatives have shown the way: dairy commodities such as butter, skimmed milk power (SMP) and ghee have been traded on an electronic platform created by them since June last year.

The platform has ensured quicker settlement of transaction. The cooperatives, including Gujarat Cooperative Milk Marketing Federation (AMUL), Karnataka Cooperative Milk Producers’ Federation (Nandini) and Bihar State Milk Cooperative Federation (Sudha), earlier used to sell their produce to bulk buyers by issuing time-consuming tenders, thus exposing them to volatility in commodity prices.

The platform promoted by National Dairy Development Board in collaboration with National Cooperative Dairy Federation of India (NCDFI) conducts weekly e-auction where cooperatives sell their produce to big private players, including ITC Foods, Britannia Industries, Vadilal industries, Patanjali etc.

Since the launch of NCDFI E-Market here in June last year, more than Rs 270 crore worth of trade has already taken place. According to KC Supekar, managing director of NCDFI, more than 220 buyers have been registered in the exchange which is expected to

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increase once the digital platform starts trading on commodities such as sugar, cattle feed etc, through this platform. Around 15,000 tonnes of butter, SMP and ghee have been sold through E-Market so far.

“Through quicker and transparent settlement, cooperatives have been able to sell their produce to highest bidders,” Supekar said.

NCDFI E-Market has been launched through the technical support from NCDEX market, a wholly owned subsidiary of commodity bourse NCDEX. Supekar said, the electronic platform is designed in such a way that it set a base price and the volume of dairy products to be sold is announced prior to the auction.

The private bulk buyers bid for the volume of commodities and not the price while the system increases the price once the demand exceeds the volume of dairy commodities offered to be sold on the platform.

For avoiding default in payment by the buyers, a security deposit of Rs. 4,000 per tonne for butter and SMP and Rs. 6,000 per tonne for ghee has to be deposited with the exchange. “All the payments

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between buyers and sellers of dairy products are settled through online bank payment and purchasers take their delivery of the products from concerned dairies,” Supekar said.

NCDFI has been entrusted with the task of ensuring that all the dairy products sold through this electronic platform adhered to the prescribed standards.

Since commencement of its operations, state milk cooperatives from Bihar and Karnataka and Jalgaon milk union have a substantial share in the overall trade in NCDFI E-Market.

Thanks to the dairy cooperatives, India is ranked first in global milk production, with an annual output of 146.3 million tonne (MT) during 201415 compared to 137.6 MT reported in 2013-14, thus recording a growth of 6.26 %. The Food and Agriculture Organization (FAO) has reported a 3.1% increase in world milk production from 765 MT in 2013 to 789 MT in 2014.

NCDFI is an apex body of 26 state-level dairy cooperatives which are connected to 198 district cooperative milk unions and about 1.5 crore dairy farmers in the country.

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6 Vol. 1, Issue 05 - October - November - 2016

PRICE LIST

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

International milk and milk Products Price:

Source : USDA

Source : Market Watch

Source : USDA

Source: Market Watch

Source : USDA

Source: Market Watch

Source : USDA

Source: Market Watch

H

Maharashtra to raise Aarey milk price to beat reselling

owever, the official said they planned to retain the low MRP for hinterlands and use the higher margin from a high end market like Mumbai to cross-subsidies other regions.

“We plan to earn more from high-end markets for the benefit of those who cannot afford milk due to their low purchasing power.

co-operatives. This figure does not take into account the milk brought into Maharashtra from neighbouring states.

This will be a cross-subsidy for such users,” he added. The premium could also be used to ensure a better rate for dairy farmers.

However, the government’s role in the market goes much beyond its smaller market share.

The state government’s milk schemes have a minusculeshare in the greater market ecosystem, accounting for just around 80,000-90,000 litres of daily milk collection against about 1 crore litres of daily production of milk in Maharashtra.

Much of this milk is sold in the Greater Mumbai market, which has a daily demand of 55-60 lakh litres.

Already, a litre of cow’s milk is sold by Aarey at Rs. 34 in areas outside Mumbai and buffalo milk is priced at Rs. 44 in the city- the rate is lower by a rupee outside.

Around 60% of milk, in Maharashtra is collected from the organised sector, with the private sector accounting for the largest chunk followed by

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It intervenes in the market, especially in times of a glut, which forces producers to discard their milk or when there is a shortage.

The average per capita availability of milk in Maharashtra was just around 223 grams per daiy in 2014-15 compared to the national average of 307 grams with food habits in the state not conducive to consumption of milk in the pure form due to reliance on other substitutes like non-vegetarian food to meet protein requirements. Maharashtra ranks seventh in the country in milk production.

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NEWS

Godrej Agrovet eyes diverse buys to milk dairy sector fully

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rom cattle genetics to feed and milk procurement to processing, Agrovet is gearing up for a full play in the dairy chain in a country where demand for milk products is rising at about 22 per cent annually.

“We are looking at being an integrated player in the dairy segment in the long run,” Agrovet MD Balram SinghYadav said.

Agrovet already owns 52 per cent stake in Hyderabad-based Creamline Dairy, giving Godrej an access to the lucrative sector.

It is open to more acquisitions to boost presence in the dairy industry.

Currently, the dairy chain involves multiple players – those working on cattle genetics, enriched cattle feed, milk procurement and processing.

to be comfortable with given its proximity to farmers through its cattle feed and allied services.

“A diverse sourcing network is crucial to the success of the industry given the short shelf life of milk. Direct procurement by farmers backed by infrastructure is thus an imperative,” research firm Crisil said in a report last December.

Creamline currently procures 6 lakh litres milk per day and has a dedicated cold chain.

“They have a robust system in place. We are not looking at upping the stake as Cremaline is cash rich and does not need any money,” Yadav clarifies.

But for the success of Agrovet’s long-term milk story, Yadav is open to further acquisitions.

“Inorganic growth is a possibility in about two to three years.”

“The value chains will eventually become integrated. It could be closely knit integration, where one player will own everything, or loose integration where major players will work with other companies,” said Yadav.

MAHA govt. handed over Nagpur dairy plant to NDDB

T

he Maharashtra government in the presence of Chief Minister Devendra Fadnavis has formally handed over the Nagpur dairy plant to National Dairy Development Board (NDDB)'s wholly owned subsidiary Mother Dairy Fruit and Vegetable Pvt Ltd (MDFVPL) on lease.

An agreement to hand over the dairy plant was signed in Mumbai.

Dairy Times had earlier reported that NDDB with the support of Maharashtra government and intervention of Nitin Gadkari union minister for road transport, highways and shipping have jointly planned dairy development in the region.

Maharashtra government has already sanctioned Rs 300 crore for the period of next three years for the project which will kick off

by October this year.

MDFVPL will immediately refurbish the dairy

plant. The plant is expected to be operational early next year. Once operational the processing facility at Nagpur will support the dairy development project in Vidarbha and Marathwada being taken up jointly by NDDB and Maharashtra government, NDDB officials said.

"The core components of this dairy project are productivity enhancement of milch animals and creation of sustainable farmer owned institutions. MDFVPL has already put in place manpower in this regard and pre project implementation works have been initiated," said the official.

It is expected that at the end of third year, around 60,000 milk producers from about 2,000 villages will benefit from the project receiving milk bill payment in their individual bank accounts.

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Agrovet itself is India’s largest seller of animal feed, through which it has forged connection with lakhs of dairy farmers.

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The domestic market for cattle feed is pegged at 145 million tonnes of which only 7 million tonnes is in the organised sector.

“We have about 10 per cent of the organised market share and have been growing at 12-13 per cent annually for the last five years,” Yadav pointed out.

“We are growing at the pace of the market, but our effort is to grow at a faster pace. One of the key triggers today, we feel with cattle feed, is milk and that is our long-term story also,” he added.

The key to success in the dairy segment is procurement and that is something Godrej seems

Kwality Milk Foods launches new products

K

wality Milk Foods Ltd, former manufacturers of Kwality Walls ice creams, have launched a slew of products including milkshakes in tetra packs, flavoured milk, canned foods and malt-based foods (called MOLTO).

The products of the company would be sold under the brand name Sona.

Rajiv Khanna, MD, Kwality Foods, said the products, which were launched in Tamil Nadu, Pondicherry and parts of Andhra Pradesh, would be available in all southern states later.

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"For the badam milk, there is demand from the Middle East, and we shall soon export them," he added.

The company, which started its milk business in 1996 by setting up a small dairy plant in Kancheepuram, now has a handling capacity of around 2.25 lakh litre of milk per day.

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8 Vol. 1, Issue 05 - October - November - 2016

NEWS (Contd from p no, 1)

IDF Summit

Topics to be addressed in the program, relate to: Economics (including economic sustainability) in the sector • Nutrition • Sustainability • Food safety • Farming and Farmers • Dairy development • Technology • Standards • Marketing/communication Not only will these topics be dealt with in their own right, but also various cross overs between these areas have been programmed as our challenges are becoming more and more multi-factorial complex topics.

At occasions in the programme, there will be a speaker presenting a challenging view on a topic reflecting the opposing views in the outside world.

In the programme there is also a farmers' event that is involving the farmers view and is therefore marked farmers only.

The three days of sessions will close with the Declaration of Rotterdam which is a comprehensive statement on how the dairy sector is going to respond to the various challenges as set by the Sustainable Development Goals of the United Nations.

Of course there will also be time for social interaction during the welcome reception and during the Gala dinner which will be held at inspiring locations.

In order to maximize interaction between all participants during the first 3 days of the Summit the Technical Tours are scheduled after the sessions. An attractive Technical Tours programme is scheduled showing you the best of the Dutch dairy sector.

The Dare to Dairy 2016 IDF World Dairy Summit aims to do just that – engage both those who share our views and those who hold counter views.

Kids in anganwadis to get whole milk

K

arnataka Cabinet has decided to provide whole milk instead of skimmed milk to children in anganwadi centres under the Ksheera Bhagya Scheme.

State Law Minister T B Jayachandra said that as many as 39 lakh children in anganwadi centres will benefit from the initiative. It will cost the state exchequer an additional Rs 42.5 crore a year, he said.

The Cabinet also gave administrative approval for installation of solar panels on rooftops of stateowned warehouses with private investment under PPP model to generate 68 MW of solar energy.

“The budget proposals for 2016-17 had stated that about 150 MW solar power could be generated under the scheme. But we had to scale down the estimated power that could be generated due to logistical reasons,” he said.

Jayachandra said the Cabinet gave its approval for distributing double fortified salt with iodine and iron under the public distribution system (PDS).

The Cabinet decided to extend government guarantee for a loan of Rs 600 crore procured by the Karnataka State Cooperative Marketing Federation and approved a revised estimate of Rs 79.76 crore for a new jail building in Shivamogga.

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Vol. 1, Issue 05 - October - November - 2016

NEWS

India to invest Rs 10 billion in livestock

I

n order to increase livestock and fisheries production in the country India has earmarked over 1000 crore (10 billion) rupees to fund different projects under various programmes run by the union government.

Central government has release Rs INR 129.82 crore (1.3 billion) rupees to nine states for implementation of various poultry and livestock development programmes, and an amount of 164.88 crore (1.6 billion) rupees has been released for vaccination under the Livestock Health and Disease Control programme.

The government has released Rs. INR 17.31 crore (173 million) Rs. to support programmes under the National Programme for Bovine Breeding and the Cattle Mission. For approved projects under the National Programme for Dairy Development, centre has released Rs. INR 239.95 crore (2.4 billion) rupees to 17 States.

So far, proposals worth Rs. INR 436.52 crore (4.4 billion) under the blue revolution programme, envisioned for the growth of fisheries production and aquaculture, have been approved.

Under the dairy projects, facilities for processing of 278.6 thousand litres per day (TLPD) and chilling of 93.5 TPLD of milk will be created and 977 Dairy Cooperative Societies formed, said a release issued by the Ministry of Agriculture.

Govt. to invest 1.2 Cr in every village to develop dairy sector in Assam

A

ssam has the potential to grow in the dairy sector and could tap the dairy market in the South-East Asian countries considering the state’s geographical advantage”, said Chief Minister Sarbananda Sonowal while addressing dairy farmers on ‘Celebration of Purabi Milk Day’.

created a market for its products.

“Amul has already created a market for its products in countries like Australia, Middle East and in South East Asia. Assam also has the potential to grow in the dairy sector and it is time to resolve to capture the market in our neighbouring country,” Sonowal said.

Saras planning to foray nationwide

F

ollowing the footsteps of Amul the Rajasthan Cooperative Dairy Federation (RCDF), is planning to sell its products outside the state. Aiming its target, cooperative has started supplying in Ahmedabad, an Amul stronghold.

brand, for technology transfer to increase RCDF's plant efficiency.

GCMMF has a Pan-India presence with its Amul brand. It even set up processing plants in Uttar Pradesh and West Bengal and started local procuring.

The cooperative has drawn up plans to upgrade its processing plants, increase production and spread activities to Uttar Pradesh and Madhya Pradesh as well, where there is a huge unorganised market.

RCDF, too, aims to become a Pan-India brand.

As for its requirements after the expansion of capacity, Sharma said Rajasthan produces 4.5 mld of milk, of which about 50 per cent is the marketable surplus.

RCDF which sells milk and dairy products under the Saras brand processes 2.7 million litres per day (mld) on average, and plans to increase this to four mld within two years.

Rajesh Sharma, Administrator and Managing Director, RCDF, said, "Investments worth Rs 500 crore have been planned to upgrade the 21 existing processing plants." He said RCDF is also looking at starting new plants under public-privatepartnership (PPP) mode. He added that talks are on with Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets the Amul

He informed that Assam government has decided to invest Rs 1.20 crore in each of the 25000 villages in state under Chief Minister’s Samagra Gramin Unnayan Yojana as “One of the priority schemes of the government will be to develop the dairy sector”.

C.M appealed farmers to take up dairy farming to start a milk revolution in the state. Sonowal cited the examples of Gujarat’s Amul which he said has

Observing Assam is yet to become self-sufficient in milk production, the Chief Minister said the state imports two lakh litres of milk every day from outside to cater to the consumer’s requirement.

Referring to the Prime Minister’s development initiative towards the North-East, Sonowal said Narendra Modi has announced to turn the region into an organic hub.

Vijaya dairy will invest

Rs. 150 Cr in Krishna district

V

ijaya Dairy’ the brand of Krishna District Milk Producers Mutually Aided Cooperative Union Limited is planning to set up a mega milk project with an investment of Rs 150 crore in Krishnan district.

The mega project is the dream of milk union chairman Mandava Janaki Ramaiah, who has been the chairman of the dairy for the past 24 years, and set to complete 25 years by February, 2017. He is firm on grounding the project at the earliest.

Janaki Ramaiah is planning to lay the foundation stone for his dream project by end of this year.

The milk union had already identified the land at

Arugolanu village near Hanuman Junction which is centrally located in Krishna district.

Vijaya Dairy is facing competition from private dairies. Sangam Dairy of Guntur has already established its outlets and Visakha Diary is set to establish the outlets here soon. Besides, some other private dairies are also competing with Vijaya Diary.

The milk union wants to enhance its production capacity to one lakh litres per day which will be in addition to present capacity. There is a demand of four lakh litres per day in the district, but the availability of the milk is limited to 2.5 lakh litres at present.

The National Dairy Development Board estimates demand for milk in the country to rise to 180 million tonnes (mt) by 2022 from 140 mt as of now. The country's production has to increase by 5.5 mt every year to achieve this.

DNA for Haryana cows to boost A2 milk supply

T

o promote desi cows in the state as well as enhancing supply of A2 milk Haryana government is set to tag indigenous (desi) cows after testing their DNA.

He informed that out of the Rs 25,000 crore revenue generated by Amul, Rs 18,000 crore directly benefitted the farmers.

Appreciating the efforts of Purabi or West Assam Milk Producers’ Union Ltd (WAMUL), Sonowal said the production of the WAMUL was only 500 litres per day about eight years ago. “Now the production of WAMUL has reached 50,000 litres per day and I want this to increase to 5 lakh litres per day in next ten years,” he said.

However, Amul is still a long way ahead of RCDF. It processes 28 mld of milk, and procures about 14.9 mld. This has risen considerably in the past few years; in 2009-10 it was around 9.09 mld.

About 13 per cent of its milk is sourced from outside Gujarat.

several qualities. It enhances immunity and helps in fighting diseases. However, A2 is present in milk of only desi cows. In case the cow is of mixed breed or a foreign breed, this component is missing. To ensure that the milk that we are supplying has the A2 component, the DNA of the cows will be tested. We will get the testing done by National Dairy Development Board (NDDB). The process will be started soon.”

Sharma said DNA testing will help to prevent mixed breeding. “Once the DNA testing is done, the cows that are of indigenous variety will be tagged. There are three kinds of desi cows including Sahiwal, Haryanvi and Lakhi,” he said.

Government recently launched pasteurised A2 milk from desi cows. A plant has been set up at Kurukshetra that has the capacity to process 5000 litres of milk. The A2 component is present only in desi cows’ milk.

Haryana Dairy Development Co-operative Federation Chairman G L Sharma said, “A2 has

At present, around 3,000 litres of A2 milk is being supplied. Samples are tested everyday by National Dairy Research Institute as well as NDDB. The federation now plans to supply milk on demand across Haryana and Delhi. At present, the supply of milk is mostly restricted to Chandigarh, Panchkula, Kurukshetra and Gurgaon.

Maharashtra to start dairy development plan in Vidarbha

S

howing serious concern over farmers' suicides in the state, the Maharashtra government would implement a dairy development programme in 2000 villages in 8 districts of Vidarbha and Marathwada. The state government would run the programme with the help of National Dairy Development Board.

Chief Minister Devendra Fadnavis held a meeting to discuss this special project for drought-affected Marathwada and Vidarbha. NDDB Chairman Dilip Rath, Maharashtra minister for dairy development Mahadev Jankar, Principal Secretary of the Department ,Vijay Kumar and Dairy Development Commissioner RG Kulkarni were present for the meeting which was held at Varsha, the official residence of the Chief Minister.

Fadnavis informed that the programme would be run in 2,000 villages from 8 districts including

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five districts from Vidarbha and three from the Marathwada region. He added that the programme would provide regular income and livelihood support to 60,000 families. The programme would also provide direct employment opportunities to 3,000 youths from these villages and indirect employment to transporters, distributors, retailers and other allied businesses.

The project would be run for three years and it is expected to generate business of Rs200 crore for milk producers. With involvement of NDDB it is expected to increase the quality of livestock and would also result in increased productivity.

The chief minister said that in Nagpur alone NDDB would be starting 100 milk distribution centres. The government would also start the programme in other parts of the state.

11 Vol. 1, Issue 05 - October - November - 2016

NEWS

Global dairy price recovery to benefit Indian farmers

G

lobal skim milk powder (SMP) prices have hit a 11-month high, which is positive news for Indian dairies and farmers who have borne the brunt of an export market collapse in the last two years.

In August 16 auctions, the average SMP prices were around $2,028 a tonne in the Global Dairy Trade (GDT), an auction platform for internationally traded commodity dairy products. It is a three per cent rise from the prices in the previous auction.

GDT auctions are held twice a month. Prices had started showing signs of recovery since June, after a long period of dull prices. In the June 1 auctions, prices had moved up by about 12 per cent to touch $1,867 a tonne.

Currently, as domestic price of SMP is about 20 per cent more than the international prices of around Rs 155-160 a kg, exporters feel India is not competitive to export SMP. Major players such as the Gujarat Cooperative Milk Marketing Federation (GCMMF) that had exported around 20,000 tonnes of SMP in 2013-14 when prices in the international circuit were high said international prices are likely to firm up further in about a month or so.

prices would increase," he said.

The European Union (EU) still holds a lot of stock of SMP, which is why the prices are still at this level. However, in the next fortnight or so, prices will definitely increase, feels Sodhi.

"Already production is down in the EU because of low commodity prices. Side by side, New Zealand and Australia production has also decreased while the consumption as such has grown," he said.

SMP prices do not support exports. SMP prices have risen six-seven per cent in the past one month or so. India will be competitive in exporting SMP with a further increase of four-five per cent in the international prices. This is expected to happen in around a month or so, and after that, exports would be viable."

The reason Sodhi is upbeat about SMP prices moving up in the international markets is that globally, SMP and Whole Milk Powder (WMP) prices remain in tandem traditionally. "But now WMP prices are around Rs.600 a kg or about 30 per cent more than SMP prices. Naturally, SMP

Parag Milk Foods, too had cut down on its SMP production, as the exports were not viable and focused on other dairy products such as cheese.

Devendra Shah, chairman and managing director of Parag feels SMP exports is not viable at the current prices. "Rs 155-160 a kg is the current domestic prices of SMP, and the global prices are 20-25 per cent lesser than domestic prices.

If prices move up by another five-six per cent in the international market, then exports would be viable," he said.

International media reports suggest after rising nearly three-fold from 2009 to 2014, milk prices

R S Sodhi, Managing Director, Amul, said: "Exports are not yet viable, as current international

Prabhat Dairy to pay farmers via m-Pesa

P

rabhat Dairy has tied up with Vodafone to make payments to dairy farmers at Ahmednagar in Maharashtra through m-Pesa, the money transfer facility of mobile service provider.

The tie-up enables farmers to receive their payment from the centres where they sell milk to the dairy firm. As of now, the facility has been started in 34 villages of Ahmednagar.

Prabhat partners with over 85,000 farmers through its over 500 milk collection centres to collect nine lakh litres of milk a day.

Usually, the company deposits the money payable to farmers in their bank account within 10 days.

Farmers generally travel 10-15 km to withdraw money from their bank account, said the company in a statement.

After the tie-up with Vodafone, farmers will receive an SMS from Vodafone on the amount payable to them from Prabhat.

With Prabhat Dairy and Vodafone tie-up, farmers can collect the money from the milk collection centres by showing the SMS and an identity proof.

Vivek Nirmal, Joint Managing Director, Prabhat Dairy, said farmers do not have to visit any bank or ATM to withdraw money.

An agent of Vodafone will visit Prabhat Collection centre on the payment day and distribute farmers’ dues in cash.

They can also pay their utility bills through this service with the help of the payment centre, he said. Collection centres are located within the village, hence it is easily accessible to the dairy farmers, added Nirmal.

Prabhat Dairy is an integrated milk and dairy products company in India catering to institutional and retail customers.

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halved earlier this year, as farmers increased dairy supplies to try to cash in on an expected surge in demand from China and West Asia. The situation got more critical after Russia banned imports of food from the US, Australia, Canada and EU in August 2014, which led to piling up of a surplus.

Experts, however, say that surplus is waning. One of the world's largest dairy exporter New Zealand saw production falling by 1.6 per cent in the year to May 31. Production in Australia, too, has fallen about two per cent till June.

Sodhi said in FY16, SMP exports was about Rs 300 crore. It used to be around Rs 3,500 crore some time ago.

Amul has exported to Bangladesh, Pakistan, Afghanistan, West Asia, but in very low quantities.

Amul exported about Rs 240 crore worth dairy products in FY16, and around half of this was commodity. Sodhi said it could have been three to four times more, if the market had been favourable.

Even if exports of SMP start, it would have no immediate impact on the prices of liquid milk in India, as liquid milk prices are already more than SMP prices in India, say players.

12 Vol. 1, Issue 05 - October - November - 2016

LATEST TECHNOLOGY

Innovative & Energy

Efficient Evaporators E

vaporation is a unit operation which is used extensively in Dairy, Food Processing, Chemicals and Pharmaceuticals for concentration of liquids.

Tapas Chatarjee In the evaporation process, MD SSP Pvt. Ltd concentration of milk is accomplished by vaporising water, so that the concentrated milk at optimum solids are produced consistently with desired product quality and operating economics.

Since evaporation is one of the most energy intensive processes used for concentration of milk in dairy industry, it is essential that evaporators should be designed from the view point of economical energy utilisation as well as process effectiveness.

Evaporator design consists of three principal elements: • Heat and mass transfer • Vapour liquid separation • Efficient utilisation of energy For evaporators to be efficient, the equipment must be able to accomplish the followings: 1. Transfer maximum amount of heat to the milk

2. Proper separation of liquid and vapour in the vapour separators. Total separation of liquid and vapour will lead to followings : •

No contamination of product with condensate leading to zero pollution • Maintain proper heat and mass transfer balance • Efficient operation due to zero recirculation 3. Making efficient use of energy. The increase

The claimed novelty in this invention is saving of energy and resources by designing multiple effect evaporator without the use of Condenser and Cooling Tower.

The ‘inventive’ step of this innovation is distribution of vapours of multiple effects in a manner that all vapours are used in the system thus avoiding the need for Condenser and Cooling Tower.

• It's a new knowledge in the field of evaporation technology. This innovation is organized, systematic and rational work based on in-depth knowledge in multi effect evaporation technology.

This invention will transform the dairy industry in terms of energy savings, gentle heat treatment to the product and saving of required space.

in energy efficiency depends on maximum use of regenerated vapours while designing the evaporator, which can be accomplished in several ways : • Use of TVR or MVR • Use of Pre-heaters • Use of Multiple Effect Evaporators (five to seven effects) • Use of Multiple Effect Evaporators without the Condenser and Cooling Tower

This process technology is pending patent.

Basic Features of the Evaporators Highly energy efficient plant.

Enhanced product quality due to lower Delta Tacross the effects.

Operator friendly plant with PLC/SCADA based system.

Steam Consumption Chart

• This technology will save lot of energy and shall also save cost in terms of recurring expenditure and infrastructure. Because of this innovative technological advancement, the utility of the industry will be minimized as there will be no requirement of cold water, Cooling Tower, etc, which will lead to less powder, less steam and utility consumption. For this technology “SSP” has applied for a Patent.

•Though the evaporators are known since more

Multiple Effect Evaporator Evolution of Evaporator in the Dairy Industry During 80's most of the evaporators used to be 2effect or 3effect plant with a specific steam consumption of 0.50 to 0.33 which means one kg of steam at 8kg/cm2 used to evaporate 2 to 3kgs of water.

Extensive research is being carried out to make evaporator more energy efficient. During 90's, 4effect and 5effect evaporators were designed with specific steam consumption of 0.20 to 0.14,i.e.1kg of steam will evaporate 5kg to 7kg of water at 8kg/ cm2 pressure by use of TVR. Recent Development No scale formation in tubes therefore, no brushing required.

Low operation and maintenance cost.

with a minimum surface area. This requirement, more than all other factors, determine the cost of the evaporator system. It also helps in designing a scale free evaporator which improves the quality of the product and helps in reducing the solid losses.

Principle Involved in the Innovation In this invention heat and mass transfer is balanced in such a way that no vapour is being left for condensing in the condenser. Thus eliminating the need for condenser and hence cooling tower.

than 100 years, it is the first time that evaporator can work without condenser and cooling Tower.

In a 6 effect plant with TVR system and vapour suction from 3rd effect 1kg of steam at 8kg/cm2 pressure evaporates10kg of water.

In a 7effect plant with TVR system and suction of vapour from 4th effect 1kg of steam at 8 kg/cm2 pressure evaporates 12kg of water.

Most Energy Efficient Evaporator (Evaporator without condenser & cooling tower) In its earnest desire to develop most energy efficient evaporator, an evaporator is invented,wherein all the generated and regenerated vapour can be used in the evaporator itself,without the necessity of a condenser & CoolingTower. This process technology is pending patent.

Dairy Times

Saving in New Design- 40 TPD (5 vs 6 Effect)

13 Vol. 1, Issue 05 - October - November - 2016

NEWS

MTR foods Milk products should have lower tax rate: Sodhi inaugurates new roposed minimum rate of 12% is double three slabs, with the lowest slab of 12 per cent for products it would ultimately discourage the the current average tax on several milk goods for the poor. producer,” Sodhi said.

Gulab Jamun Mix products.

However, other value-added products such as The much-awaited Constitution Amendment Bill flavoured milk and ice-creams currently attract up Manufacturing paving the way for the Goods and Services Tax to 5 per cent excise duty.

(GST) may have been cleared by the Rajya Sabha With the rollout of GST, excise duty Plant but India’s largest milk products retailer, Gujarat will be subsumed into GST. The single

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TR Foods unveiled their new Gulab Jamun mix manufacturing plant at their manufacturing facility in Bengaluru

recently.

Kumar Gowda, an employee with MTR foods for the last 30 years inaugurated this new plant along with Sanjay Sharma, CEO, MTR Foods as per a release. The main purpose of the plant is to increase production capacity of Gulab Jamun Mix, one of MTR Foods’ largest selling products, and to migrate from manual batching process to auto batching process.

This new plant will substantially increase food safety and improve the work environment for the workers at the plant. The new plant is set to produce 1250 tonnes per month as compared to the existing capacity of 625 tonnes thereby increasing the productivity from 45kg per man hour to 106 kg per man hour.

Cooperative Milk Marketing Federation Limited (GCMMF) is apprehensive about the minimum tax rate its products will face under the new regime.

Value-added products.

While milk, curd (dahi) and buttermilk (chhas) continue to be exempted from tax coverage, some value-added products may end up incurring a higher tax rate — almost double — under GST as against the current average tax rate.

“Today average tax on value-added products such as ghee (butter oil), butter and Tetra-packed milk ranges between 5 and 7 per cent. If these items start attracting GST at 12 per cent — indicated as the lowest slab under the new tax regime, then it would be a dampener on both consumers and producers,” said Rs. Sodhi, Managing Director, GCMMF, which sells the Amul brand of milk products.

Some positives A panel headed by Chief Economic Advisor Arvind Subramanian has put the GST rate structure into

tax is seen as a ‘positive’ for the dairy sector.

Sodhi also noted that milk products such as milk powder, baby food and ice-cream currently attract average tax of 10-12 per cent.

Hence, a slightly higher rate under GST will not affect consumers much.

“We wish the minimum slab under GST be 6 per cent so that goods and commodities like ghee, butter, etc do not suddenly attract almost double the current average tax,” Sodhi said.

Worry for farmers

The overall market size of the products — butter, tetrapack milk and butter oil is estimated to be around ₹25,000 crores, he added.

“The ultimate impact will be on the farmers. As with higher tax and costlier

The new plant and the processing systems will be regulated and monitored by SCADA (Supervisory Control and Data Acquisition). The operations for the primary packing process will be entirely automated and all the powdered raw materials will be carried pneumatically.

On this occasion, Sanjay Sharma, CEO, MTR Foods said “We set out an objective for ourselves to become a 2000 crore company by the year 2020 and one of the ways of reaching this was to deploy almost Rs. 200 crores in infrastructure development in the next 5-6 years.

This new plant is one of the first investments out of the amount allocated – we have spent nearly Rs. 20 crores on the new plant to increase the production capacity of one of our top selling products.

“He further added, “We at MTR Foods understand the importance of long-standing employees and their unwavering dedication towards the organization. We have always respected his hard work, passion and commitment towards his work.

We are extremely happy to have a committed employee like Kumar Gowda inaugurate our plant.”

The turnkey solution for the plant is provided

by Tetra Pak, a Swedish based multinational food packaging and processing company and the key equipments are sourced from Fresco, New Zealand.

www.agronfoodprocessing.com

Dairy Times

Manufacturer of Disposal Plastic Cups and Food Packaging Containers with Multicolor printing

SHRI VIGNESHWARA POLY PRODUCT Beach Road, Koteshwara, Kundapura - 576222, Karnataka, India Phone: +91-8254-261746, +91-8254-325006 Fax : +91-8254-262746 Mobile: +91-9448462746 Web Site: www.shrivigneshwara.com

14 Vol. 1, Issue 05 - October - November - 2016

ARTICEL

Bapu Alumni Association, National Dairy

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orld’s biggest dairy industry is modernising and stretching its wings in different other parts of the world. This is a phase where private dairies are taking lead and every day we see some or the other new variant of milk or milk products in the market. This is an expansion phase for the Indian dairy industry. Due to availability of good quality milk and milk products consumer is also less hesitant of trying products they never had in their lives like flavoured cheese, mozzarella or various types of yogurts.

This is also a phase when global industry is also watching Indian dairy industry closely. Almost all leading technology providers are in India now or planning to come down here. Company like Prabhat Dairy has received its first export order for its cheddar cheese to Iraq. The order is placed by a leading brand in Iraq. Countries like Iraq, North Africa and South East Asia look very promising for Indian dairy products.

Prabhat Dairy has already been exporting to countries like Mauritius, Nigeria, Malaysia, Algeria among others.

Prabhat Dairy has also tied up with Vodafone to make payments to dairy farmers in Ahmednagar in Maharashtra through m-Pesa, the money transfer facility of mobile service provider. This is a milestone.

Tie-up that enables farmers to receive their payment from the centres where they sell milk to the dairy firm. As of now, the facility has been started in 34 villages of Ahmednagar.Prabhat partners with over 85,000 farmers through its over 500 milk collection centers to collect nine lakh liters of milk a day, yet another move towards modernization.

However, there is one region within India that needs to be explored for the growth of dairy industry, and that is North Eastern States of the country. States like Assam has the potential to grow in the dairy sector and could tap the dairy market in the South-East Asian countries considering the state’s geographical advantage.

A company like Amul has already created market for its products in countries like Australia, Middle East and in South East Asia.

Back in Mumbai, Godrej Agrovet is gearing up for a full play in the dairy chain in a country where demand for milk products is rising at about 22 per cent annually. Godrej is looking for a long run in the dairy segment for the growth of its agro division. Godrej Agrovet already owns 52 per cent stake in Hyderabad-based Creamline Dairy, giving Godrej an access to the lucrative sector. Creamline currently procures 6 lakh litres milk per day and has a dedicated cold chain. Godrej Agrovet is open for more acquisitions for furthering their activities in dairy sector.

Kwality Milk Foods Ltd, former manufacturers of Kwality Walls ice creams, has launched a slew of products including milkshakes in tetra packs, flavoured milk, canned foods and malt-based foods called MOLTO. The products of the company would be sold under the brand name Sona.

This time the Netherlands National Committee of IDF is organising IDF World Dairy Summit during 16-21 October,2016 in De Doelen in Rotterdam.The Major challenge for the global dairy sector is how to help nourish a growing population in a sustainable way. We are convinced that dairy will be an important source of safe and sustainable nutrition in the years to come. We are well aware that dairy can only play this role in close collaboration with the global community, including both governmental and non-governmental organisations.

We wish World Dairy Summit fruitful deliberations and valuable outcome for Dairy World.

ahatma Gandhi, popularly regarded as “Father of the Nation”, was a multidimensional personality. Any thing which was dear to the ruralites was dear to him. He had keen interest in dairying, since it was an occupation quite compatible with rural development.

NDRI takes pride for acquainting with Bapu with scientific dairying as back as in 1927 at Bangalore.

Alumni Association of the Institute at Bangalore, thought it appropriate to install a statue of Mahatma Gandhi with ‘Jill’ Cow at the Institute premises and release a publication entitled “Bapu & Dairying”, on the occasion of the Platinum Jubilee of NDRI. Beginning of Gandhiji’s Direct Interest in the Cattle Development The British Surgeon Maj.Maddock, who performed the operation on Gandhiji, in 1927, recommended his convalescence at a place with a temperate climate. Bangalore became the place of choice by the Government of India. He was extended the most cordial welcome by then Maharaja of Mysore and was treated as a State Guest. The State Guest House at Kumarapark, where Gandhiji was lodged was next door to the office of the Imperial Dairy Expert (Govt. of India) where the incumbent of the post, Mr.William Smith was living. This provided a unique opportunity for Gandhiji and Smith to meet together almost every evening and discuss problems of cattle improvement in the country. The problem of “improvement of Village Cattle” was very next to Gandhiji’s heart, so he motivated Mr.Smith to write a series of articles bearing practical suggestions on the subject which Gandhiji started publishing in his own journal “Young India” during 1927. This aroused keen interest amongst the cattle breeders as well as the general public. This also laid the foundation for

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gami, part of the Serac Group, is making plastic bottles more interesting in France and worldwide. Suzanne Christiansen reports from Trappes.

Stylianos Eleftheriou had an idea about plastic bottles when working at another large packaging company. Actually, his idea was about turning plastic sheets into bottles. The CEO of Agami Technologies, a subsidiary of dairy packaging machinery firm Serac Group, thought there could be a simpler way of making plastic bottles back in 2009.

The result was the development of the Agami thermoforming machine, which creates bottles from plastic sheet reels in a vertical process that requires few plastic processing skills. Using either polystyrene or polypropylene, the sheeting is formed into a tube and then into a mould that shapes it. Different colours may also be used, and sleeves. This option has already been quite successful in the drinking yogurt industry, with registered new orders in the US and Europe, such as industry giant Chobani.

Eleftheriou notes the advantages are simple: there is 10-20 per cent less material used than other bottles, and the machine is shipped to the customer, where the customers produce their own bottles. “It is an advantage and a price savings.

The added value stays with the customer, and the logistics are easier.” Reels of plastic are also easier to store than finished bottles, and the company estimates that a ratio of 1:25 in storage space is saved. Electricity consumption has also lowered, with low bottle weight and on-machine decontamination.

The machine can produce bottles from 100 to 500ml size, and has a compact footprint of 4x6 metres, with the ability to produce up to 28,800 bottles per hour.“The market is moving towards polypropylene,” according to Eleftheriou. “There are also different types of closures such as a heat seal lid or screw type closure, which can

Dairy Times

be produced on the machine, and different sized bottles can be made on the same machine.”

Parent company Over the years, Serac has had many competitors in food and beverages, and so decided to specialise in niche markets such as dairy. In 2009, Agami invented its process – very quickly, Serac was interested in the packaging side and entered into a commercial partnership. In 2014, Serac bought Agami outright.

Agami products fit into the overall Serac portfolio by offering innovative packaging with aseptic qualities, according to Vincent Altazin, the product and business development manager at Serac. “For dairy and UHT beverages, aseptic is rather important. We have our expertise and are recognised as a technology specialist in this area.”

New technologies are now being developed for aseptic, in order to sterilise bottles in both wet (with paracetic acid) and dry (H2O2). Light pulse technology is also being explored for sterilising bottles, he notes.

Altazin says the moulds on the machine can be changed over within 30 minutes. Customers can print on the plastic or have shrink sleeves, and all of this may be combined with a variety of bottle shapes.

“We help the customer design a bottle, and once the design has been chosen, we transfer the intellectual property rights to the customer – we don’t retain them,” says Eleftheriou. “Part of the business model is that we supply the machine and the former belongs to the customer, and it can then source plastic from different suppliers.”

The blow moulder can produce 9,000 bottles per hour and 10 machines have been produced at Trappe this year. “We are forecasting building 15 machines, and they run from €500,000 to €2 million each depending on options,” says Altazin.

“Over the next five years we hope to sell 20-30 machines. We have manufacturing in Asia and the US, so that the customer has technical support

15 Vol. 1, Issue 05 - October - November - 2016

ARTICEL

and Dairying Research Institute, Adugodi, Bangalore 560 030 what came to known subsequently as the “Key Village Scheme” of the Government of India, and which later on assumed the form of the scheme for “Intensive Development of areas for Cattle Development” for increased production of milk in the country.

Gandhiji showed keen interest in the improvement of the Pinjrapoles” in the country, with their enormous resources and desired to see their outlook changed from mere religious to utilitarian institutions, so that they could form a facet in the plan for the improvement of the cattle-wealth of the country. A series of articles was published in “Young India” during 1927. This evoked interest of the public in the matter and it provided subsequently the foundation for the plan of improvement of Pinjrapoles, by the Government of India and finally assumed the form of the “GoSamvardhana-Council”.

Gandhiji as a Pupil at the Imperial Dairy Institute, Bangalore As Gandhiji’s interest was aroused by daily discussions with Mr.Smith, he expressed the desire to have first hand idea of the management of cattle on a farm. It was, therefore suggested to him that he could visit the Imperial Dairy Institute farm, whenever convenient to him. Gandhiji’s medical adviser allowed him just three quarters of an hour (from 5 p.m. to 5.45 p.m.) every evening, for the visit to the dairy farm. This started Gandhiji as a dairy student and he used to be at the Institute at the tick of 5 o’ clock every evening along with

Pandit Madan Mohan Malaviya.

It fell to Dr. Kothavalla’s lot to take Gandhiji round the farm, most of the evenings and explain to him various activities. When Dr.Kothavalla would just skim over the subject, in a general way, Gandhiji next day interrupted Dr. Kothavalla abruptly and said “let me make it clear to you that the relationship between you and me just now, is that of a teacher and a pupil, so please explain things to me as fully as to any of your other pupils”. A cow named “Jamna” was suffering from acute cancer. Next morning, authorities put an end to its life and admitted the same to Gandhiji. On hearing the news, he looked like a man hit with a bullet and it came out perhaps most inadvertently from his mouth – “Your Western science could not save such a valuable soul”? Gandhiji told Mr. Smith “You have put an end to Jamna’s life to save her from further suffering, after making sure that it was not possible to save her life. You did not do it with any selfish motive. This comes within my concept of Ahimsa”. Gandhiji was highly appreciative of the crossbred cow, “Jill” (an Ayrshire – Hariana cow) which gave birth to 18 calves and yielded 154779 lbs of milk during her life span. He had a photograph taken with “Jill”, which later gained much popularity. The popularity of “Jill” culminated into construction of a shed in its name at the institute.

Gandhiji – A Farmer On the evening of his final departure when Gandhiji was requested to sign the visitor’s book,

to bottle

locally.”

It takes around six months to build a machine, and Agami has a 3D printer that can show customers what the design will look like via computer assisted design. The model can be tested in-house for resistance, and so forth, and then it can be finetuned in the company’s pilot plant.

Package types Bottle: The plastic bottle is still strongly developing worldwide for various products, with constantly widening ranges such as coffee whiteners, drinking yogurts, chilled or aseptic milks, as well as for value-added niches such as aseptic nutritional drinks. For example, in the drinking yogurt market, the bottle is by far the leading packaging and promises significant growth in the years to come. Market trends also favour the development of small to medium-sized bottles ranging from a few dozens of millilitres to one litre which, through the use of new materials and manufacturing technologies can now display colours and original shapes.

Serac offers Combox PET stretch blow molding technology integrated in single block blow-fillcap units for orders in the dairy market. A real alternative to HDPE, both technologies offer simplicity in plastic processing while being precise. They are favoured for portion packs dedicated to children as they allow the production of bottles that have the shape of a fruit, a spring or a cartoon character.

Serac’s H2F filling units have been designed to be flexible and can fill HDPE, PET, PS or PP bottles, thus enabling manufacturers to diversify.

Flexibility comes from the bottle neck transfer system, which requires only a few tooling parts to be changed to switch from one bottle model to another.

Based on the weight filling technology, H2F units are known for accuracy, which is critical on smallsized packages. They have recently been upgraded

to provide higher performances on bottles ranging from 60 ml up to two litres. Serac offers bottle neck transfer associated with weight filling in its H2F filler.

Cups: The yogurt and dessert market is developing through organic products, limited editions and increasingly sophisticated recipes (several layers of yogurt and fruit, fruit, nuts or cereal chunks included in the product or dosed in a separate compartment to be mixed just before eating), which make dosing operations more complicated.

The market quest for authenticity has also led to the return of traditional packaging such as glass jars or cartons with quaint shapes that cannot be stacked up. Such packaging requires specific technical adaptations on filling units. Serac’s Nova dosing systems can be integrated to existing lines.

They include up to 24 filling heads and provide control for all kinds of products with a range of nozzle solutions. They are adapted to most filling methods, from layered and spiral filling of different ingredients, to complex dessert combinations.

An owner of several Nova lines has recently upgraded its dosing units to cope up with an increasing number of recipes. The Greek yogurt specialist can now produce up to four fruit mixes simultaneously in the same cup and several recipes that are gathered in multi-flavour packs.

For spreadable cheeses that require a hot filling process, Serac has developed a specific tank equipped with a motorised agitator, a double or triple jacket with water circulation that maintains the product at the right temperature (around 75 80°C) and a full temperature monitoring system.

Many niches Whatever the product considered, markets are characterised by an explosive growth of the number of recipes which, in addition to specific adjustments on the machines, call for flexibility.

The second global trend on the market is upgraded levels of hygiene in order to increase food

he wrote his name as M.K.Gandhi – Farmer from Sabarmati. Before leaving Bangalore, Gandhiji in the course of the discussion said, “Now I must put into practice what I have learnt at Bangalore” and he made a special request to Mr.Smith to help him in establishing a “Cattle-cum-dairy farm” at the Sabarmati Ashram.

Gandhiji’s Attitudes towards the Question of Cow Vs Buffalo As years passed by and Gandhiji’s interest in the cattle wealth of the country grew more and more problems came to be faced. One of them was cow Vs Buffalo debate. Gandhiji in spite of his love for the cow did not allow himself to be swayed by mere religious sentiments in this controversy of cow Vs buffalo. With him, the economic aspect leading to the good of the poor cultivator weighed much more in this problem, hence supported buffalo as well.

The Problem of Prevention of Cow Slaughter When the question of enacting a law against the slaughter of cows came up before the Indian Parliament under Gandhiji’s advice, Govt. of India agreed to appoint a Committee consisting of officials and non-officials to go into this question very thoroughly. Accordingly a committee including one dairy expert from Bangalore was constituted. The committee recommended that the slaughter of good cattle must be prohibited. Thus the problem of slaughter of cattle can be minimized eventually. When this was conveyed to Gandhiji unofficially his remark was “just as I thought”.

After that he accepted the slogan that “A bad cow that was nor born would not be slaughtered”. This amply reveals the practical aspects of Gandhiji’s philosophy and principles.

Gandhiji’s Pragmatism on Export of Zebu Cattle The export of zebu cattle from India to foreign

safety. Serac can offer upgrades to packaging decontamination as well as aseptic filling units.

Whether for flavours and packaging consumer testing, or for real conditions market testing, an increasing number of manufacturers are looking for dedicated multi-purpose equipment.

In order to meet this expectation, Serac has developed aseptic pilot bottling lines tailored to the production at low rate of a wide variety of recipes in different packaging (plastic materials and sizes). These pilot lines are derived from Serac’s aseptic filling lines and thus offer the same features for packaging sterilisation, process hygiene and cleaning procedures.

The filling lines enable fast production changes from one packaging or recipe to another through neck transfer systems and quick change of recipes from the control panel.

To further increase flexibility on its aseptic machinery, Serac has also worked out easily cleanable equipment that allows recipes to follow each other without having to go through a fourhour long cleaning and sterilization process. With a single injection of sterile water, pipes can be ready for the next batch. In the best case one recipe can even be used to drain the other.

With the integration of on-site bottle manufacturing solutions in single block blow-fillcap unit (Combox machines) and new solutions for thermoforming bottles out of pre-printed plastic sheets, Serac also contributes to reducing the footprint of the complete packaging lines by avoiding the need for storage tanks, unscramblers, sleeves or labels applicators. For products packed in cups, Serac is working with the same objective on end-of-line integration of case packers for its linear filling machines.

Modular In order to meet all levels of safety requirements, Serac offers a solution for H2O2 controlled decontamination of bottles, cups and caps that provides a better uniformity of treatment and an increased control on decontamination parameters.

Active components concentration and decontamination parameters are continuously monitored and the control system stops the

Dairy Times

countries evoked wide agitation in the country on religious and economic grounds. There were wide spread apprehensions that Indian cattle exported to foreign countries were largely “slaughtered”.

Further, the price rise of ghee in Gujarat was suspected to be the result of export of these cattle. And more importantly, it was feared that the country would be deprived of its best cattle.

Gandhiji was apprised that the agitation was motivated by selfish consideration and was against the interest of the cattle breeders of the country.

Gandhiji was explained that the Indian cattle were not exported for slaughter purposes abroad, the country was not deprived of its best cattle, (in this case Kankrej). The price rise of ghee was not due to the export of Kankrej cattle, as the Ghee was mostly made from buffalo milk in Gujarat and lastly the export of Zebu cattle provided a great stimulus to the breeding industry in the country.

Whereas animal sold locally would fetch about Rs.100, the same animal fetched Rs.1000-2000 when exported.

Gandhiji was soon convinced with the facts regarding the case. He not only refused to lend his support to the unfounded agitation against export of zebu cattle, but took every step to put an end to the agitation. This holds mirror to the practical sense and foresight of him. He was not moved by mere sentiments.

Epilogue Thus Bapu was closely associated with NDRI Bangalore and with Indian Dairying. His approach to dairying developed at the Institute in Bangalore contributed much to the dairy development of our Nation.

Source : Alumni Association National Dairy Research Institute Adugodi Bangalore 560 030

machine as soon as a parameter is out of the tolerance limits. This solution is also interesting from an environmental point of view, since it requires low volumes of H2O2 and no water.

Serac has also developed first-class aseptic filling lines that include dry sterilisation at all stages plus sanitisation of the filling unit itself, a 100 per cent sterile zone plus a controlled area below the neck of the bottle for pharmaceutical level of hygiene within the aseptic enclosure, and enhanced security through the doubling of all gas filtration systems plus constant monitoring of a wide range of sterilization parameters.

In order to assist customers looking for qualification of their line by health authorities, Serac can document its aseptic lines with risk and functional analyses, as well as all necessary certificates.

The Agami thermoforming machines allow customers to produce bottles out of PS or PP reels, and Serac has recently gone a step further by adapting its simple, efficient and reliable solution to the thermoforming of bottles out of pre-printed PP reels.For this particular application, Serac has equipped its Agami machines with sensors and sets of cameras that ensure fast initial machine setting with minimum waste, and systematically check that the PP .sheet is at the right place for the next stroke during production. Dii Serac and Agami: fast facts (Box required) Agami founded in 2009 10 to 20 people Location: Trappes, France SERAC OVERALL Euro 114 million turnover 70 per cent in machines, 30 per cent in services 5,500 machines in more than 100 countries 580 employees globally 46 per cent sales in dairy 6 industrial locations: the US, Brazil and Malaysia, and three sites in France www.dairyindustries.com

16 Vol. 1, Issue 05 - October - November - 2016

NEWS

Britannia Plans own dairy Parag to launch flavoured production, eyes bigger pie cheese slices soon

I

n an attempt to scale up its faltering dairy business, Britannia is planning to start producing all its offerings including cheese, curd, yoghurt and flavoured milk on its own.

The management has given itself time till December to firm up its strategy for this division, which now contributes just 5% of its turnover, Managing Director, Varun Berry said.

from the third party. So we are basically traders as far as our dairy business is concerned," Berry has told analysts.

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Britannia has for some time been working on a strategy to scale up its dairy business and has now given itself time till December to start work on it.

"It has taken us far longer than we imagined. In the beginning, we needed to really get the operating model. We are still in the process. We have done three rounds but we are still not satisfied with the output. Now, the deadline for us is the end of this calendar year. If we can do that, we would be a happy lot," Berry said.

"We have successfully piloted five flavours of cheese slices and these products will be placed in the market over the next one week. We are coming up with five new flavours in slice cheese," says Bharat Kedia, Chief Financial Officer at Parag Milk Foods. "No other dairy company has flavoured cheese slice in the market currently and that too suited to the Indian palette."

Without an integrated model, Britannia is not only finding it difficult to scale up the business in the absence of dedicated supply chains, it is also losing out on existing businesses to bigger competitors like Amul.

The strategy, it appears, has been triggered by rising milk prices and competitors like ITC foraying in this space. The cigarettes-to-hotels major has just completed its backward integration by setting up its own dairy farm in Bihar.

Britannia's dairy portfolio, which comprises products like cheese, curd, flavoured yoghurt, ghee and packaged milk, works on the model of outsourcing.

"The cyclicality of dairy business always comes to the fore. The business in largely dependent on milk. So for us to really become a longterm player, it would be very important to get into where our dependence on the third party is reduced. Currently, we are buying our products

"In the case of cheese, the premium gap between us and the market leader still remains as we are still traders with lots of heads to feed. If we have a strategy to become an integrated player in the dairy business, then things can change considerably," he said.

While growth in dairy business was seen during the last few years on account of increasing milk consumption and value-added segments like cheese and yogurt, competition is heating up.

Several private companies made a debut into the market last year, while cooperatives continued to expand their footprint.

Heritage Foods Makes for a Good Bite

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T Intelligence Group: Heritage Food offers a proxy play to the growing demand of packaged milk and milk products in the country fueled by increasing urbanisation. The company has seen sustained financial performance and has bright growth prospects.

An expected turnaround in its retail business will be an additional trigger for the stock which has given 80% returns in the last one year. The company has two major divisions -dairy and retail.

Its other businesses such as bakery, animal feeds are small in size to have any major impact on the financials. In the dairy business, it has a strong presence in the South including Hyderabad, Chennai and Bengaluru.

"We have entered Mumbai and Delhi. In South, we are penetrating into tier II cities such as Mysore, Tirupati, and Vishakhapatnam," said Dr Sambasiva Rao, president, Heritage Foods.

Apart from geographical expansion, the company has also increased the share of value added products, such as curd and butter milk, to 20%

of total revenue from 3% a decade ago. The management expects to take the proportion of value added products to 40% in the medium term.

Though low in profit margin, the milk business is more lucrative due to quick turnover and negative working capital cycle thereby improving the return on investment. "Earlier, curd was made at home but now the demand for packaged curd is rising and so is for ghee, paneer, butter and cheese," said Rao. He believes that this will increase the company's ability to pay the farmers while for procuring milk which remains the biggest challenge.

The company expects 15-20% annual sales growth for the next five years. The operating margin is likely to improve this fiscal with an expected turnaround in the retail business this year. The company's retail business has been a drag. Last year, the management had planned to demerge the business, which was postponed after it took a hit due to floods in Chennai. The management is confident of a turnaround at the operating level this year.

In the June quarter, the operating loss (EBIT loss) of retail business reduced to Rs 5.2 crore from Rs 13.8 crore in the year ago quarter.

Heritage scores over most of its peers across financial parameters and yet its stock valuation remains lower. Hatsun Agro, Parag Milk, Prabhat Dairy trade at trailing price earnings (PE) ratio of 30-80 while it is 25 for Heritage. This is despite the fact that the stock price of Heritage has increased eight times (761%) in five years.

arag Milk Foods is planning to launch flavoured cheese slices this week.

Celebrity chef Ranveer Brar will advertise Parag’s new products.

Parag, like most of its peers such as Amul, Prabhat Dairy, Britannia, etc, has been focusing on the high-margin cheese segment. In the June 2016 quarter, Parag launched Go Cheese wedges- herbs and spices at pan India level which did receive good response.

Another product segment that will grow at a healthy pace for Parag going forward is the whey segment. Whey is a by-product obtained while manufacturing cheese. The company does further processing to sell whey as a branded product and currently sells it only to companies such as Nestle.

Parag now aims to take whey products to retail consumers.

"We are working closely to convert our institutional whey products to consumer whey products. We

have lined up a whey protein beverage launch over the next 2-3 quarters," added Kedia.

Given that the Indian cheese market is expected to grow at a 25-30 per cent compound annual growth rate over the next few years. The market is dominated largely by organised players and is currently about Rs 1,200 crore. Analysts expect the company's cheese revenues to grow 19 per cent over FY16-19 per cent to Rs 600 crore. Cheese currently contributes about 20 per cent to Parag's revenues.

Abneesh Roy, analyst at Edelweiss Securities, says, "I think its a good idea because cheese has been a high growth category over the last few years, but innovations have been far and few.

Indians love spices and such innovations so this product could get a good response. Globally, such flavoured products are quite big. Companies need to keep doing these innovations to grow ahead of the market."

Kedia said that Parag's focus on value-added products is positive as these generate gross margins ranging anywhere between 25 to 40 per cent. The management has guided for 14 per cent revenue growth over FY16-19 and targets net profit margin of atleast 5 per cent or more by FY19 from 2.8 per cent in Q1. While this guidance appears strong, the intensifying competition in the dairy segment across products is a key monitorable, he added.

President inaugurates food park in West Bengal

P

resident Pranab Mukherjee inaugurated a Mega Food Park at Jangipur in Murshidabad, aimed at providing critical food processing infrastructure to the farmers of this backward belt in West Bengal.

The new food park will minimise the wastage of food products, Mukherjee said after inaugurating the Food Park in the presence of West Bengal Governor Keshari Nath Tripathi and Union and State Ministers.

The project, considered close to Mukherjee's heart, was accorded in-principle approval in December 2008 and final approval in March 2010.

It will benefit the farmers of North 24 Parganas, Birbhum, Malda and Burdwan districts.

Noting that India is second in fruit production after Brazil and next only to China in vegetable production, the President hoped that India would minimise the wastage of food products through projects like this.

Speaking at the convocation, the President said he had taken the initiative for establishing the institute when he represented the area in Parliament.

He said his dream was that the people of Murshidabad be well informed and well educated so that they can take their rightful place in the country.

Noting that technology is the key to advancement, he said, "we have created good infrastructure in our higher educational system, but hardly any of the Indian Universities find place in the top global rankings."

Stating that two Indian institutions of higher learning were ranked among the top 100 in the world in 2015, Mukherjee hoped that more institutions would figure high in the rankings in the future.

"We should emphasise on research and innovation.

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Progress is not possible without a knowledge society. Knowledge leads to technology and technology to prosperity," he added.

He added that the food park will help farmers of the area get better price for their produce.

Union Minister of Food Processing Industries Harsimrat Kaur Badal said the promise made by the Centre during the UPA government in 2008 has been fulfilled by the NDA government in 2016.

"The Mega Food Park will leverage an additional investment of about Rs 250 crore in food processing units in the Park, generate a turnover of about Rs 500 crore annually and is expected to provide direct and indirect employment to 6,000 people and benefit about 25,000-30,000 farmers in the catchment areas," she said.

Badal said connecting farmers with food processing infrastructure and creating markets are her primary goals so that farmers get remunerative price of their produce.

"Mega Food Park at Jangipur has been set up at a cost of Rs 132.71 crore approximately in an area of 82.11 acres with a grant of Rs 50 crore provided by my ministry," she added. The food park is equipped with industrial sheds for SMEs, developed industrial plots for lease to food processing units and facilities of 8,000 MT warehouse, 5,000 MT multi-crop cold storage, 10,000 MT potato cold storage, IQF and Pulping line of 1.5 tonne per hour each, 3,000 MT deep freeze and quality control lab.

Union Minister of State for Food Processing Industries Sadhvi Niranjan Jyoti, ministers of West Bengal government and state Congress chief Adhir Ranjan Chowdhury were also present.

Later, Mukherjee attended the first convocation of Management Development Institute-Murshidabad at Jangipur before returning to New Delhi after a three-day visit to West Bengal.

17 Vol. 1, Issue 05 - October - November - 2016

Dairy Times

18 Vol. 1, Issue 05 - October - November - 2016

ARTICEL

Why leadership development is important?

L

eadership development is important because it trains leaders to better engage with employees, gain knowledge of customer needs and wants, and strive to set an example for others. Leaders who seek to improve their own performance often motivate employees to do the same.

Managers who participate in leadership development through professional training and educational programs develop a broad and deep understanding of issues affecting their organizations, such as changes in leadership, accountability and employee empowerment.

Leadership development also enables leaders to boost their own performance, craft solutions to company problems, enhance decision-making skills, brainstorm productivity strategies and promote accountability within the company.

Leadership development helps leaders practice interpersonal skills to maximize employee performance, work cohesively within groups, build alliances and assess office dynamics. Managers who participate in leadership development programs gain opportunities to network with professionals in various industries, make contacts with other leaders, share innovative practices and procedures, and gain insight on differing leadership styles that have proven to be effective.

Leadership development also helps to boost morale of leaders, which can filter to the employee base and generate more enthusiasm for their current roles within the company. Through professional development, leaders gain a better understanding of how employees learn, promote company loyalty, and plan and manage change to adapt to industry trends.

What is leadership style?

Leadership style is a leader's ability to direct, manage, motivate and guide groups of people. In regard to employees, there are implicit and explicit methods that determine the leader's specific style.

Research has proven there are multiple effective leadership styles displayed by leaders in politics, business and other fields.

Common leadership styles include authoritarian or autocratic, participative or democratic and delegative, and laissez-fair. Effective leaders generally incorporate all three styles, using one more predominately. Ineffective leaders use one style exclusively, typically autocratic.

The authoritarian leadership style creates clear and concise expectations about what needs to be accomplished, when it needs to be accomplished and how it needs to be accomplished. Authoritarian leadership concentrates on the decisions and commands of the leader. This leadership style requires leaders to make decisions independently with little input from followers.

The participative leadership style is recognized as the most effective style. Democratic leaders provide direct feedback to followers while participating in group activity. This leadership style encourages input and participation from followers in the decision-making process. However, the leader controls the final say over decisions. Research has shown that the followers are more motivated and creative as a result of feeling engaged.

The delegative leadership style allows followers to make decisions, but the leader remains responsible.

This style is considered the least effective of the three, as followers generally lack guidance and direction. Delegative leadership leads to followers blaming one another for mistakes and refusing to accept responsibility.

Creating an Individual personal leadership development plan Create an individual personal leadership development plan by conducting a thorough self-analysis to identify your strengths and weaknesses. Make a list of the key aspects of a leader and discover areas in which you are lacking, and make a list of goals for improvement. Include

measurable actions to gauge your growth as well as actionable ways to achieve the goals in the plan.

An individual personal leadership development plan allows you to identify the ways in which you can improve your attitude, behavior and strategies to become a better leader within a business environment, starting with an honest review of your current abilities. This can also include collecting feedback from coworkers and employees on your best and worst points, which helps to expose blind spots and identify unknown strengths. This also allows you to make a list of the most important aspects of leadership for you and within your company, such as being open to feedback or communicating with employees on a regular basis.

Use the items in the list to identify clear and specific goals for the plan, and then identify the steps you need to take to achieve the goals. This should include multiple steps that outline the exact methods for change, such as enrolling in classes or changing company policies. It also needs to feature a timeline for achieving the goals as well as a method to track progress, such as a specific metric or meeting with employees to gather additional feedback.

Leadership Development Action Plan Template This template is designed to guide your leadership development activities over the next 12-24 months. Many of the steps require significant effort and/or reflection. Very few require money.

Most of these activities can be self-guided, but it would be very helpful to recruit a mentor to help you along the way.

Please resist the temptation to rush through the steps; the more effort you put into each of the activities below the more you will learn.

1. Do a Self-Assessment: If you have used a selfassessment tool recently (e.g. Strengths Finder, the Myers-Briggs Type Indicator or Kolb Learning Style Inventory), review your results. a. What strengths to you have that you would like to cultivate? b. What strengths do you have that you might be overusing?

2. Create a Life Mission Statement: Your Life Mission Statement can provide insights about your motivation to lead and guide your development efforts in a direction congruent with your long-term goals.

3.

Master Core Skills: Are there any core supervisory skills that you have not yet mastered (e.g. giving feedback, delegating, leading meetings, or hiring/firing)?

If so, which would be the most useful to learn about and practice this year given the goals and challenges you have with your current team? a.When (and with whom) will you practice this skill in the coming month? b. Find resources for learning to give feedback, delegate, lead meetings, or hire/fire employees.

4. Identify Exemplars: Choose two leaders to learn from, e.g. a famous leader and an effective leader you have worked with. a. What characteristics do you admire most about the leader with whom you have worked? b. Read a biography or watch a movie about a famous leader you admire.

5. Find a Mentor: If your agency has a formal mentoring program, sign up for it. If your agency doesn't have a program--or if you already have a potential mentor in mind--reach out to a more senior officer who you think would be a good fit for you. Ask them if they would be willing to meet with you for a mentoring session.

(At this stage they would not be commiting to a long-term mentoring relationship.)

a. Before the first meeting, develop a list of your objectives and questions you would like to ask. b. If there is chemistry between the two of you at that initial meeting, ask if they would be willing to mentor you while you work through this Leadership Development Action Plan.

6. Seek Challenging and Varied Experiences: What kind of jobs/tasks do you have the least experience with? a. Turnarounds b. Start-Ups c. Big Leaps in Scope/Scale d. Projects/Task Forces e. Switches between staffer and line manager f. Managing in a Crisis Select one of these experience gaps and seek an opportunity to gain that experience.

Suggested reading: "Making the Most of Developmental Assignments" and "Twenty- Two Ways to Develop Leadership in Staff Managers."

7. Sign Up for Training: Investigate leadership training opportunities in your agency. If resources are available, sign up for an appropriate course.

8. Seek Feedback: Develop a plan for seeking feedback from your subordinates (or peers if you are not a supervisor) Who will you ask?When do you plan to do it?Find resources for learning to receive constructive feedback.

Why Leadership Development Programs Fail ?

Leadership development programs have grown in popularity over the years. It seems that all companies crave for leaders and many are turning to formal leadership development programs as a means to develop talent. Proceed with caution however, as this is an easy idea to come up with but difficult, potentially expensive and definitely time consuming to execute. When it works, it can be a great success, however often these efforts turn into fancy websites vs true development mechanisms. Below are some top reasons why leadership development programs fail: 1. Narrow focus Leaders need to be able to thrive across multiple environments and your program must foster this versatility.

It is often tempting to say that your business doesn’t need this level of adaptability because maybe you have a single business unit or are in a mature industry, however, in today’s dynamic and ever changing world, change is a constant and you will need leaders that can lead change and thrive in any environment.

2. Low expectations and support levels A leadership development program must be made up of top tier talent as well as be treated with top tier expectations. You must demand significantly more from the program members in exchange for higher levels of support, resources and compensation. Invest fully in the program and require superior return on that investment. It is ok to treat the program differently than the rest of the organization, as long as the results justify it. Focus on return.

3. Being one dimensional A leader should be balanced across technical skillsets, behavioral intelligence and business acumen. Your leadership development program should ensure development of all three of these areas of focus. Narrowly focusing on one area will yield one dimensional leaders, which won’t cut it.

Leaders need balance and must work on all aspects of themselves in order to lead organizations to their full potential. Don’t settle for less or you will surely be left with less.

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4.Training vs Developing There is no leadership formula. You can’t necessarily learn leadership like you do algebra.

You instead develop leadership through core concept learning and applying multiple experiences similar to how you would develop your general character throughout your life. In order to get the most out of your program you need to embrace the process and actively coach your members to find their own leadership voice. This customized engagement makes all the difference as there is no one size fits all leadership style.

5.Focused on the theoretical A leadership program will run the risk of creating theorists vs leaders, if not structured to drive real business impact and problem solving. To avoid this, you will need to trust unproven talent to be empowered to play critical business roles. This is often viewed as risky, but it is necessary if you want to have a successful development program.

You need real world experience to create real world leaders.

6. Afraid to rock the boat Leadership programs are meant to be accelerators or they risk simply turning into expensive training mechanisms. Leaders must ultimately lead and your program members will crave the opportunity to do so. You must be willing to feed that need, even if it goes against the traditional career pathing and seniority norms you have. Trying to maintain organizational parity and forcing everyone to “wait in line” will kill progress.

7.Gold star mentality Leadership programs should be a privilege. Your recruiting criteria should reflect the caliber you are looking for and you should be steadfast in these expectations throughout all economic cycles.

Don’t turn your program into an orientation program for anyone that wants it. Likewise, this is a privilege that must be earned, thus it is important to monitor progress and performance throughout and not be afraid to differentiate and take action on laggards. Your program is for the best, don’t accept less than that. Differentiation is necessary.

8.Trying to grow too fast Programs are difficult to implement and require a lot of trial and error in order to optimize a program for your unique needs. What is effective for another organization may not be effective for you. All too often programs try to start out too big and grow too fast without acknowledging that this is a unique and iterative journey that needs to be flexible and patient. Further, expectations need to be grounded to allow for a program to evolve.

Start small and build gradually.

Today’s trend Leadership is a long term and continuous cultivation process and your program needs to be integrated into your business in a meaningful way.

Programs are often started by a few passionate individuals but need to be able to live on their own and not be reliant on those individuals in the long term. Unless the program becomes part of how the business operates and is looked at by all levels as integral to the future, it won’t stand the test of time and will eventually fizzle. These programs require too much effort for it to just be today’s hot initiative. It must be part of how you think about your business.

Developing leaders is complicated and sometimes a formal program is the way to go. However, this is by no means a plug and play endeavor and requires a very high level of engagement and commitment by you and your business. You must take responsibility to actively manage such programs and give it the attention that it warrants.

Often times the maintenance seems more trouble than its worth, but if done well, it can pay off exponentially.

DEEP TRAINING & CONSULTANCY kailash ashar principal thought leader cell: 09869402681 em: dtckba@gmail.com

19 Vol. 1, Issue 05 - October - November - 2016

COVER STORY

New plant to come up in Vizag by Creamline Dairy

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top official from Creamline Dairy products, a subsidiary of Godrej Agrovet Ltd, stated that a new plant will be set up in Andhra Pradesh at the cost of Rs 30 crore.

Godrej Agrovet claimed a majority stake in Creamline Dairy products for Rs 150 crore in December 2015.

The processing capacity of Cream Dairy Products Ltd. is 10 lakh litres milk per day and has market presence in Andhra Pradesh, Tamil Nadu, Karnataka, and parts of Maharashtra.

Chief Executive Officer of Creamline Dairy Products, P Gopalakrishnan said, "We are setting up a new dairy plant at Vishakapatnam with one lakh litre capacity. The investment is about Rs 30 crore." Already we have seven factories, two in Hyderabad, one each in Madanapalli, Vijayawada, Mandya district (Karnataka) and in Nagpur. We also have a powder plant in Ongole (Andhra Pradesh)," After the launch of fortified milk Enrich D – under the Jersey brand which is especially targeted at the health-conscious patrons, he said "We are a strong player in South India. With the new plant we will be able to serve in Odisha too." "The marketing campaign will begin from October 7 onwards," he said, adding the company was in the process of scaling up its business across various categories as the industry was growing 25-30 per cent annually.

Creamline Dairy has about 5,000 outlets in South and has about 800 agents in Tamil Nadu alone`.

Yogurt Bay introduces their latest innovation -Waffle Bay

F

rozen yogurt is a tasty combination of ice-cream with probiotic yogurt is greatly popular with the health-conscious segment.

It has a global market presence and a wellestablished dairy product among the consumers.

Since its inception, frozen yogurt has been promoted widely as a healthy product to capture the wellness and fitness target audience.

The company – Yogurt Bay, a popular brand of frozen yogurt has an impressive list of flavours and with a splendid visual presentation it has captured the market.

After its foray into FMCG sector, and receiving great demand for its product at various music festivals, concerts, weddings, corporate events. It now wants to please the consumers by adding to their list of innovation – Waffle Bay. This product should entice the taste buds of the patrons and they will keep coming back for more.

When Yogurt Bay introduced frozen yogurt in India, they effectively shifted the dessert trend from regular ice cream to innovative flavors of frozen yogurt. The product is now loved and enjoyed by everyone. Beginning in a small square of space in Bandra, Yogurt Bay has opened up 8 stores across the country in a short span of two years, with an aim to double up in the coming months.

The experiment of customizing the flavours as per the likes and preferences has been a huge hit among the regular and new customers. These yogurt ice creams are of excellent quality and are available at a reasonable price. The healthconscious dessert lovers are indulging in this sweet craving for its probiotic content. The products are already available in Mumbai at Reliance stores and will be launched at other supermarkets like D-mart very soon.

Dairy Times

20 Vol. 1, Issue 05 - October - November - 2016

NEWS

Carrier EFFELEX System Design for Distribution Center Refrigeration

C

arrier Commercial Refrigeration, part of Carrier Airconditioning & Refrigeration Limited,India is committed in providing latest technology solution to suit every aspect of today's modern cold chain business.

Customers come with varied and complex needs which are required to be satisfied with reliable, efficient and cost effective solution. One of the examples is the Distribution center refrigeration system where Carrier is providing turnkey

refrigeration solution which includes design, installation and startup of innovative refrigeration systems.Distribution centers are generally owned and operated by logistic providers in India.

Few years back, customers were dependent on overseas solution providers for design as well as equipment supply.

These were higher in cost and also not able to match Indian customer needs.Carrier India started

to work closely with the customers offering small distribution center solutions with condensing units.

With the increase in the cold storage demand, Carrier also evolved in terms of centralized rack system design to suit the customer needs.

Typically, in India cold room operators have to manage their customers’ needs which are highly unpredictable. Hence, they always had a challenge in having a system that will offer them flexibility in terms of temperature range as Freezers and Chiller and also basic need of the industry as efficiency and reliability.Carrier India developed the unique “Efflex Design� system design which provides customer with convertible rooms which can work as Chiller as well as Freezers.

This design along with the best in class energy efficient Carlyle compressor systems, air cooled condenser and automation offers the customers a flexible, efficient and reliable solution.

Typical design study reveals that we are able to achieve good power savings even with air cooled condenser.

Carrier India has installed over 30 distribution center systems in India with this design. Carrier India refrigeration design offers its customer the benefits such as lower power, less maintenance, no cooling water needed and flexible temperature range.

Carrier India has number of installations in the ice cream and frozen foods industry along with the distribution centers with its localized product solutions in terms of condensing units, compressor racks, air cooled condensers and evaporators. Its unique application engineering team coupled with expert project management team strive to meet customer expectations.

Dairy Times

21 Vol. 1, Issue 05 - October - November - 2016

Dairy Times

22 Vol. 1, Issue 05 - October - November - 2016

NEWS

Dairy CEO Conclave 2016: Helping the dairy industry to serve farmers in better way

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B Vista South Asia and Berg & Schmidt India jointly conducted first “Dairy CEO Conclave 2016” on 1 August 2016 at Lonavala, Maharashtra. With 70 eminent personalities from the dairy industry attending this event, it was a 100% success. “Dairy CEO Conclave 2016” succeeded in its motive of generating new ideas that will shape up the future of dairy sector.

The event started with Dr. Dinesh Bhosale, Regional Sales Director, AB Vista South Asia and SV. Bhave, Managing Director, Berg & Schmidt India briefly explaining the philosophies of their respective companies and how their companies could help the dairy sector. HV. Bhawe, Managing Director, Berg & Schmidt, Singapore, explained about latest technologies in Bypass fat production and its application for profitable dairy farming.

Technogel Spa, Italy is a world leader in the manufacture of ice cream

machinery for small scale and industrial production.

Mix Processing Plant with HTST Pasteurizers

Continuos Freezers

Fruit Feeder

Linear Cup / Cone Filler

Fully Automatic Ice Cream Candy Machine

Fully Automatic Extrusion Machine

Capacity range from 600 to 5000 ltrs/hr.

Capacity up to 5000 ltrs/hr.

Capacity range from 3000 to 10000 sticks per hour.

Capacity range from 400 to 1500 ltrs/hr.

Capacity range from 3000 to 12000 pieces per hour.

Capacity range from 5500 to 18000 pieces per hour.

Represented in India:

Parekh International Trading Corporation

PAREKH

125, The Summit Business Bay, Near W.E. Highway Metro Station, Andheri (East), Mumbai - 400093, India.

The event covered various aspects that would help dairy business right from genetics, feed and fodder to marketing by well-known speakers in the industry.

Vishwas Chitale, Director, Chitale Dairy explained about the importance of genetics in dairy animals, breed development, conservation of Indian elite breed’s germplasm, application of genomics in breed upgradation, and selection of desired traits for breed upgradation.

Dr. Prashant Shinde, Commercial Director, Cargill India, summarized recent trends and opportunities in dairy Industry, scenario of Indian dairy industry in 2020, importance of nutrition and breed for farm profit, management and nutrition of calf, and transition cow management. He also talked about role of feed additives in relieving heat stress, latest technologies and farm mechanization for commercial dairy farming.

Dr. Raghvendra Bhatta, Director, ICAR National Institute of Animal Nutrition and Physiology (NIANP), Bangalore, discussed about current situation and future trends in feeds and fodders supply-demand scenario. He briefed about alternate feed resources for climate resilient livestock production, various stress factors impacting production and its solution, and livestock methane mitigation through dietary interventions.

Hansel D’Souza, Adjunct Professor, S. P. Jain School of Global Management explained the concept of commodity and brand and how an industry can work together to make their product a brand. He explained that supply-demand mismatch, price erosions and fluctuations are all associated with a commoditized product.

Advanced processing, packaging and value addition to milk are crucial for profitable dairy venture.

Dr. Suresh Gangawane, Dairy Consultant, briefed about the feeding, breeding and management of dairy animals to improve farm profitability.

Sukhdev Singh, PDFA Punjab, spoke on behalf of farmers describing the success story of Punjab farmers and what all practices have been undertaken by the farmers to achieve high productivity and profitability.

Highlight of the event was a panel discussion moderated by Vijay Sardana (Agri expert). The panel included D. V. Ghanekar (MD, Gokul dairy), Rajiv Mitra (MD, Govind Dairy), Rahul Kumar (MD, Lactalis India), P. R. Patel (MD, Dudhsagar dairy), Ranjit Singh Sohi (PDFA member), Mr. Nagraj Meda (TransGraph Consulting), Dr. Ravindara Sawant (MD, Trimurti Dairy Farm).

Following key points emerged from the panel discussion: • There is a mismatch between cost of production and selling price of milk.

• Escalating feed raw material prices are adding to the pathos of dairy farmers.

• Standards of cattle feed need to be formulated and properly implemented.

• Empowering farmer and improving animal productivity are essential.

• Consumption of value added products is low, the same needs to be promoted.

• Inventory management is essential for a business Dr. A. K. Srivastava, Director, ICAR, National Dairy Research Institute (NDRI), Karnal and Mr. Daljit Singh Gill, President, PDFA, Punjab could not attend the event but interacted with the participants through video. They gave an overview of the dairy sector. The event was rightly concluded by Dr. Ajit Apte who described the management lessons one can learn from the great warrior king Shivaji Maharaj.

Email : info@parekhinternational.com Contact : +91-9819799776 / 22- 26836228 / 29 www.parekhinternational.com

Dairy Times

www.agronfoodprocessing.com

23 Vol. 1, Issue 05 - October - November - 2016

NEWS

Global UHT Milk Market: Asia Pacific to Witness Highest Growth by 2019

G

lobal UHT Milk Market: Asia Pacific to Witness Highest Growth by 2019″. Global UHT milk market is progressing at a CAGR of 12.80% in a forecast period from 2013 to 2019. The global UHT milk market in 2012 was recorded at US$60.8 bn. By the end of 2019, the market is expected to reach US$137.7 bn.

Less refrigeration space is making UHT milk the best alternative of preservation. Fresh milk needs refrigeration to prevent it from being spoiled by bacteria. Even under refrigeration, fresh milk can be preserved for only a few days. Cold chains or chill chains are required throughout the procurement of milk from dairy farms until it is stored, processed, packed and delivered to the customers. India and China, two of the largest consumers of milk globally, lack chill chains or refrigeration chains. Poor road infrastructure in India remains another restraint in the development of chill chains in the country.

Increasing influence of western culture is also escalating the demand for UHT milk market globally. The changing consumer habits in favor of packaged food products in the populous Asian countries are increasing the consumption of UHT milk in the region. This has also resulted in rise in the apartment culture in these countries, where people generally stock packaged food and beverage items. In the western countries, consumer prefer to stock packaged and processed food items due to

their longevity and ease of use.

channels for UTH milk.

These retail chains prefer products with the lowest price on offer, thus increasing the competitiveness in the market. Some retail chains have developed their own brands, known as private labels, in partnership with small dairy processors. They keep their prices low, though the quality of their products is not as good as the branded products in the market.

Private label companies have a large share in the European market.

The degree of competition is quite high in the UHT milk market. Companies in the market are engaged in price wars as reduction in price of UHT milk by one company forces other market players to reduce their prices. Moreover, supermarkets and hypermarkets are the major distribution

As the region is undergoing an economic downturn, people are willing to compromise on quality for price, thus increasing the market share of private labels. Product differentiation is low among the branded products as every company in the market offers a range of products with

Iran Buys German Butter

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erman butter has experienced an increase in sales to Iran from 200 to 1,000 tons in the first five months of the current year, according to the German Dairy Association (MIV). For the full year of 2015, 800 tons of butter from Germany were sold to Iran and in 2014 the sale was 1,500 tons.

Iran was the second most important third country buyer of German butter after Japan last year, which has doubled its import volume of German butter to 1,200 tons.

South Korea and the US, ranked third and fourth, both increased the butter amounts to around 800 tons. Also increased demands were seen from Egypt, Morocco and Macedonia, while Saudi Arabia,Turkey, Singapore and Taiwan reduced their quantities. German exports have increased by 50% to 7,500 tons so far this year.

www.agronfoodprocessing.com

Dairy Times

comparable nutritional inputs. This decreases the switching cost for the consumer, resulting in increased competition among industry players.

The new dietary trend of consuming milk outside home, i.e. in schools, on the sports field, and at the gymnasium is catching up. In many schools, milk is provided to children in order to make drinking milk a habit and here lies the opportunity for UHT milk. UHT milk accounts for a large portion of the total milk consumed in China and its share has been increasing. Growth in the urban population of China is the key reason for the growth of UHT milk in the country.

Europe had the largest share in the UHT milk market in 2012, but the market growth in Asia Pacific is expected to make it the global leader by 2019. The key domestic companies in some of the prominent UHT milk markets are Parmalat, Candia and Dairy Partners Americas. On the other hand, the global players include Nestle, Lactalis and Fonterra.

24 Vol. 1, Issue 05 - October - November - 2016

NEWS

10th Convention of IDEA and National Seminar on “Engineering for Innovative Dairy Products and Process Development” at Milk City Science, Anand Agricultural University, Anand on September 29-30, 2016.

At the inaugural ceremony, Dr. J.B. Prajapati, Principal & Dean, SMC College of Dairy Science, AAU, Anand welcomed the dignitaries and briefed about the academic and research activities of the college and contributions made by the Alma mater to the dairy industry. Er. S.C. Aggarwal, the President of IDEA, in his address MC College of Dairy Science, Anand elaborated on various activities of IDEA and its Agricultural University, Anand in importance as a platform for dairy engineers to collaboration with the Indian Dairy discuss relevant issues and to find innovative Engineers Association (IDEA) hosted the 10th solutions.

Convention of IDEA National seminar on Shri. Ravi Shankar, Managing Director, IDMC, “Engineering for Innovative Dairy Products and Gujarat, the Chief Guest of the function Process Development” at SMC College of Dairy delighted the audience with his spontaneity. He congratulated the IDEA for completing a decade of existence.

The importance of improving engineering solutions for manufacturing traditional Indian dairy products as well as 2- Acetyl Pyrazine Furaneol scaling up the current capacities of such Acetoin L-Menthol Flakes products was his prime Aldehyde C-14 (Peach Aldehyde) Milk Lactone concern. He went on Aldehyde C-18 (Coconut Aldehyde) Ethyl Vanillin to stress upon the idea Allyl Caproate Ethyl Butyrate of utilizing Indian Diacetyl Vanillin and many more.... talent to improve Suitable for Food & Flavour the current scenario rather than relying on foreign intelligence.

He also stated that We also offer aroma chemicals and the equipment 100% natural essential oils manufacturing industry demands people who have knowledge of the process as well.

Dairy engineers are aware of the process www. www.karnatakaaromas.com technology of different aromas@karnatakaaromas.com dairy products, which 080-43468800 makes these individuals priceless to the industry.

S

Europe cutting back milk production

M

ore signs are emerging that European farmers are cutting back milk production.

According to Fonterra’s latest global dairy update, EU production in June fell 2% on the same month last year -- June being the first month since March 2015 that production has fallen vs the same period last year.

Fonterra says more culling, less supplementary feeding and poor weather contributed to the decrease.

The largest EU producers -- UK, France and Germany -- are down 7%, 3% and 1% respectively.

Production for the 12 months to June is up 4% vs the same period in the previous year.

Last week Fonterra surprised everyone by raising its milk price by 50 cents to $5.25/kgMS; with forecast earnings per share now 50-60 cents, the total payout available to farmers will be $5.75$5.85 before retentions.

Fonterra chairman John Wilson notes that since the co-op’s last review in August, global milk supply has kept falling and demand has remained stable.

“Milk production in key dairying regions globally is reducing in response to low milk prices. Milk production in the EU for 2016 is beginning to flatten out and our New Zealand milk collection is

currently 3% lower than last season.”

ASB rural economist Nathan Penny says Fonterra is coming around to the bank’s view sooner than they expected. “Specifically, our view is that dairy markets have fundamentally shifted. In particular, farmers have changed behaviour in response to low milk prices by lowering production.”

Penny expects more production weakness to show this year.

“With that in mind, we expect prices to stabilise over the short term, before lifting again later in the season. As a result, we continue to expect a finalised milk price of $6.00/kgMS for 2016-17.”

US production in July increased 1% vs the same month last year. Milk production for the 12 months to July has increased 1% vs the same period the previous year. The US Department of Agriculture forecasts that milk production for 2016 will be 1.9% up on 2015.

Milk production in NZ for July was 1% up on the same month last year. NZ milk volumes are coming off the low point of the season; volumes will keep rising for several months.

Australian production in July -- the first month in the 2016-17 production season -- fell 10% vs the same month last year.

Elanpro Counter Top Freezer ADD STYLE AND ELEGANCE TO THE SUPER MARKET DISPLAY OPTIONS

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ew Delhi, 8 October, 2016: Elanpro, India’s leading commercial refrigeration company, increases frozen treat menu offerings for the growing super market with Elanpro Counter Top Freezer.

Elanpro Counter Top Freezer is space saving, energy efficient and cost effective solution for

all commercial cold storage needs. With a small footprint and portable, lightweight design, Elanpro Counter top freezer is ideal for super markets, restaurants, delis, bakeries and convenience stores looking to expand their offerings display, while saving valuable counter space.

Elanpro Counter Top Freezer is available in two sizes50 & 60 ltrs. with glass doors.

The product is available with front opening doors as well as top opening – sliding doors. The userfriendly freezer is compact in size and can be cleaned easily for maintaining high standards of hygiene. It features micro processor based

Dairy Times

control for precise temperature and heated/ Low Emisbility glass for zero condensation and perfect display and its very user friendly.

The freezer has solid aluminium door frame, special quality glasses for clear display, high performing cooling system and beautiful aesthetics along with precise temperature controls . It has

high performing unit designed to work at high temperature.

Elanpro has launched this compact design for companies aiming the impulse buying.Designed to meet the impressive display needs, it can be used for displaying products in small quantities or for a newlaunch.

The product provides reliable performance, stunning presentation of products and energy efficiency. Elanpro Counter Top Freezer EKG 60 for Rs. 16,000 and SD 50A for Rs. 27,000 is now available at Elanpro dealer stores.

25 Vol. 1, Issue 05 - October - November - 2016

Dairy Times

26 Vol. 1, Issue 05 - October - November - 2016

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ARTICLE

Measures to alleviate heat stress in dairy cows and reduce economic losses

eat stress is a natural phenomenon that affects dairy cows and other domestic animals in tropical, subtropicaland often in emperate regions of the world during the summer months.

by Dr ir Hassan Taweel, Global Business Development Manager Ruminants, Nutriad, Belgium. nutriad.com Heat and humidity during the summer months combine to make a veryuncomfortable environment for dairy cows.

The thermo-neutral zone of dairy cows ranges from 0 to 25°C, above this critical temperature (combined with humidity) cows begin to alter their basal metabolism and metabolic rate.

To be able to estimate occurrence and severity of heat stress and to evaluate environmental effects on lactating dairy cows, scientists developed an index that combines measures of both ambient temperature and relative humidity. This index is called Temperature Humidity Index (THI).

THI = (1.8 x T + 32) - ((0.55 - 0.0055 x RH) x (1.8 x T - 26) Where T= Temperature in °C, and RH = Relative Humidity in % When THI index ranges from 72-79, cows begin to suffer from mild to moderate heat stress. At THI of more than 80 cows become heat stressed.

It is important to realise that in many temperate regions of the world where summers are mild and temperature rarely exceed 30°C, moderate to severe episodes of heat stress can occur due to high humidity. THI index of 75 or above can occur when temperature is 27°C, if humidity is above 80%.

Furthermore, new data analysis from onfarm studies concluded that milk production in high producing dairy cows began to decline at an average THI of 68.

Heat stress negatively impacts a variety of dairy parameters including milk yield and reproduction and therefore is a significant financial burden. The economic losses to the dairy industry in the USA alone due to heat stress were estimated to be in the range of $900-1,500 million a year. This figure represents a loss in the range of $110- 190 per cow per year. Hence implementing measures to alleviate heat stress and restore cow’s health and production efficiency will have a good return on investment.

Consequences on performance

In an attempt to dissipate body heat, dairy cows react to heat stress by reducing feed intake and rumination time, increasing respiration rate, standing time and water intake, excessive salivation, drooling and panting.

Moreover cows tend to sort their TMR for high energy components and leave theforage part. This leads to less favourable rumen environment and function, lower rumen pH and lower microbial protein production and nutrients digestibility. In addition, maintenance requirements increase as the cows attempts to lose body heat.

Heat stress can decrease feed intake by more than 30% and even on well-managed and well-cooled dairies heat stress can decrease feed intake by 1015%. As a consequence, this leads to a significant reduction in milk yield. Heat stress typically decreases milk yield by 10-15%, even in well cooled dairies.

The impact of temperature on lactose and mineral content of milk is much smallerthan the impact of temperature on protein and fat yields. Generally, in temperate regions, the fat content may average 0.4% lower and the protein content 0.2% lower during hotter periods.

The reduced feed intake and rumen function and increased maintenance requirements caused by heat stress has traditionally been assumed to be primarily responsible for the decrease in milk yield. However, recently it was demonstrated that reduced nutrient intake accounts foronly about 40-50% of the heat stressinduced decrease in milk synthesis.

A large portion of the direct effects of heat stress may be a consequence of changes in endocrine function and nutrient partitioning. Few authors demonstrated, using the model of thermo-neutral pair fed cows, that heat stressed cows show increased insulin effectiveness and sensitivity.

Insulin is a potent anti-lipolytic signal (blocks fat break down) and the primarydriver of cellular glucose entry. Heatstressed cows become hypersensitive to insulin, and will reduce or block adipose mobilisation and increasing glucose ‘burning’ in an attempt to minimize metabolic heat production. This diverts glucose from mammary tissue to other body tissue (primarily skeletal muscle) and reduces glucose supply to the mammarygland for lactose production leading toreduced milk yield. This may be the primary mechanism which accounts for the additional reductions in milk yield that cannot be

explained by decreased feed intake and rumen function.

It has also been shown recently that heat stress during the dry period impairs mammary gland development and alters metabolism in dry and transition cows, which, in turn, reduces milk yield in subsequent lactation even after cows have returned to more comfortable environmental conditions after calving. In addition to its negative effect on intake,rumen function and health, digestibility and milk production and composition, heat stress also negatively affects fertility and reproduction in dairy cows.

Heat stressed cows show a reduced plasma estradiol and LH concentrations and reduced numbers of FSH and LH receptors on granulosa cells. Some data indicates that only 10-20% of inseminations in ‘heat stressed’ cows result in pregnancies.

Measures to alleviate heat stress There are many managerial actions that can be taken at farm level to alleviate heat stress and reduce its impact on production and reproduction efficiency.

Breed and animal selection is one measure; Jersey cows and light colour coated cows can cope better with heatstress than Holstein and dark colour coated cows.

Shaving the cows can help increase evaporative heat loss. Some studies showed that evaporative heat loss is 6-8% higher in shaved cows compared to unshaved cows under the same environmental conditions. Painting surfaces white, providing shade, improving air movement and ventilation in the farm, supplying cold water inabundance and using cooling mats can help the cow lose heat.

The most effective measure, by far, is cooling the cow using a combination of fans and sprinklers.

Many studies showed the effectiveness of this combination compared to either fans or sprinklesseparately.

Moreover, a five-minute cycle (one minute sprinkling followed by four minutes fanning) proved to be more effective than other longer or shorter cycles in reducing respiration rate and alleviating symptoms and consequences of heat stress.

Nutritional strategies Timing and frequency of feeding, i.e. providing most of the ration (80%) during the cooler periods of the day (early morning from 4:00-6:00am, and late evening from 9:00-11:00pm); adding water to

dry rations and thoroughly mixing the ration can help alleviate some of the negative consequences of heat stress on intake and rumen function.

Adding fat (saturated fatty acids), extra minerals (especially Na, k, and Mg to compensate for higher losses from the body due to increased sweating) and extra vitamins (especially A, D, E to compensate decline consumption due to decreasing intake during hot, humid weather) and buffers (especially KHCO3).

Reducing levels of NPN and increasing RUP in ration can help compensate the decline in microbial protein flow to the small intestine (NutriMeth, Nutriad’s coated by-pass methionine is very effective in increasing the supply of metabolisable methionine to high producing dairy cows). Adding preservatives and antioxidants (such as Nutriad’s Bacti-Nil and Oxy-Nil) to the TMR prevents heating, increases freshness and bunk life during hot weather and can preserve TMR nutritional quality and improve feed intake.

Moreover, the use of sensory additives (palatability enhancers, such as Nutriad’s Gusti-Plus) improves the palatability of the TMR during periods of hot weather, reduces sorting and influences eating behavior (meal size and frequency) and resting time, thus stabilising the daily pattern of ruminal pH, and increasing DMI and milk production.

Cows drink up to 50% more water when the THI is above 80, hence supplying cold water, and adding (supplementing) energy/ mineral/vitamins sources via water can be an effective strategy to maintain nutrients intake during hot periods and counteract heat stress.

Supplementing glucogenic energy viawater (i.e propylene glycole, glycerol) can increase glucose supply to the cow during periods of heat stress and help maintain production level.

Other effective nutritional strategies to reduce the impact of heat stress onproduction and reproduction efficiency, include the use of smart feed additives.

As heat stress affects rumen, endocrine and metabolic function, additives that act at both levels (rumen and metabolism) can be employed to alleviate heat stress.

Direct fed microbial (DFM) products based on different strains of fungal extractsand/or yeast cultures have shown to be effective in stabilising rumen function and improving microbial growth and fermentation capacity.

Those DFM are found to be very effective in improving growth rate of major bacterialand fungal species in the rumen especially fibre degrading and/or lactic acid utilizing bacteria.

Addition of DFM (such as Nutriad’s Nutri- Ferm Prime) to the ration improves rumen microbial fermentation and increases microbial protein synthesis and fibre digestion, leading to 4-8% improvement in milk yield. Niacin is another additive that can be used to alleviate heat stress in dairy cows.

Niacin is involved in most energy-yielding pathways within the animal and its cells, therefore it is important for energy metabolism and milk production.Recent research demonstrated that niacin plays a role in the transfer of core body heat to skin via its effect on vasodilatation and possibly sweating rate.

In those studies heat stressed cows supplemented with niacin managed tomaintain lower core body temperature (measured as vaginal and rectal temperature) compared to controls, by increasing evaporative heat loss by 23%. Nutriad’s NutriPP is a protected source of niacin based on our patented microencapsulation technology. It ensures that niacin will escape rumen fermentation and be absorbed from the small intestine into the bloodstream.

27 Vol. 1, Issue 05 - October - November - 2016 The kingdom of organic MILK

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ew export agreements have made OMSCo, the British organic co-operative, competitive on the global stage

OMSCo (Organic Milk Suppliers Cooperative) in the UK launched a new cheese range for export to the US earlier this year. Cheddar cheese with caramelised onion and cheddar cheese with cracked black pepper were specifically developed for the American market alongside a sharp cheddar, and offered in a 6oz packs.

The co-operative partnered with Organic Valley in the US in 2013, when together they launched the Kingdom cheddar cheese brand in the US. Kingdom, which was the first European organic cheese certified with the USDA organic standard, has been successful, leading to the development of the new range.

“Our relationship with Organic Valley continues to go from strength to strength and we’ve worked closely with them to ensure that the market is supplied with high quality, organic cheese produced to USDA standards,” explains Richard Hampton, Managing Director, OMSCo. “The new blends were chosen from a long list of potential candidates following extensive consumer research, and for their appeal as cheese board offerings. Their sales have been doing very well.

“The success of our market and product development has proved a successful strategy for OMSCo, and our members have also worked hard to ensure we produce what the market demands, which in the long term provides stability and financial sustainability for their farming businesses.”

Other areas "Kingdom" is made in the UK, but it is not the majority of OMSCo’s business, Hampton notes.

This lies in the own brand and food service areas, which are the bigger part of the operations. “We are also looking at newer areas such as ingredients, as specific areas of growth,” he states. The sports nutrition and pediatric sectors are also being targeted.

Brexit may be less of a problem for the cooperative, as “we don’t sell very much at all in the European Union,” Hampton notes. “At the moment, we manufacture in the UK for outside the EU, with its attendant tariffs and exports process.

Our focus is on ensuring the right trade deals are working in the countries where we operate.” The current favourable climate, he says, is about the support OMSCo is getting from the end customers and the partners in countries such as the US and China. “Organic Valley in the US is very supportive, and in China, we have a great deal of confidence in our partners,” he says.

Domestic decline One of the reasons for the focus on overseas markets is due to the UK’s domestic milk consumption, which is in long-term decline.

“The UK needs less milk, and export markets have a need for more milk to meet the growing requirements for consumption,” Hampton says.

Globally, the trend for dairy products is upwards, and European organic milk is an easy sell. “I am quite relaxed about the overall situation, as the underlying trend is positive for organic,” he notes.

“It’s not that organic milk is too expensive right now, but regular milk has been too cheap.” www.dairyindustries.com

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28 Vol. 1, Issue 05 - October - November - 2016

NEWS

Milk price recovery happens now – because of supply reaction

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ccording to the IFCN Monitoring the world milk price increased by 35% to a level of 30 USD or 27 EUR/100 kg milk since June 2016. Now, after 2 years of lows in milk pay-out, world production is finally decreasing.

Latest projections confirm that currently world milk demand is growing faster than the supply in 2016 and 2017. Torsten Hemme, Managing Director of IFCN, comments at the annual IFCN Supporter Conference: ‘Further price increases are a logical consequence unless any major dairy demand crisis arises’.

During the 14th IFCN Supporter Conference 2016 IFCN once again brought to the table over 110 analysts and dairy professionals from about 80 leading agribusiness companies. Beside the milk price and supply forecast, the event that was held in Wageningen, The Netherlands,was focusing on the question: “What is the future of dairy farming

systems?”

It is no wonder that business leaders from milk processing companies to feed, animal health and machinery providers look especially into future dairy farms. IFCN has defined future dairy farms as a today’s farm that will be still producing in 10 years. In the past, successful farms have been doubling their cow numbers in 10 years and reaching 5-10% production growth per year. On the other side, in the next 10 years, there will be over 40% less farms in Western Europe.

In workshops the agribusiness partners came to the result that among the sustainable areas of the farms, economic considerations represent

IFCN Combined World Milk Price Indicator

the most limiting factor of growth, compared to social, environmental and risk factors.

Furthermore, the representatives of the dairy industry held a common view that sharing of knowledge and data is the way forward for them to work together. Only with solid data it is possible to develop new techniques and solutions for dairy farms that will be fit for the future and ensure that milk supply meets the increasing future milk demand.

IFCN is grateful to the hosts Friesland Campina and Trouw Nutrition for making this IFCN Supporter Conference a real success.

Top 20 Milk Processors collect 25.4% of produced milk worldwide

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FCN, the Dairy Research Network, released this week the actual IFCN Top 20 Milk Processor list. This list ranks the processor giants of the world by milk intake volume. Together, these top 20 processors collect 200 mill ton ME milk, 25.4% of produced milk worldwide.

Farmers of America lead the ranking in the IFCN Top 20 Milk Processors list with a milk intake of 28.1 mill t ME in 2015. The international cooperation Müller and Arla increased its intake about 1,7-2,0 mill t ME and by this upgrade their position in the list since 2014. Also the German processor DMK gained in the ranking, by the acquisition of the Dutch DOC Kaas company and adding 1 mill t ME to the milk intake. There are new entries in the top 20 list, Agropur and Schreiber Foods, interestingly both placed in the North American market. But not only western processors are key players in the dairy world.

Amul from India and Yili and Mengniu from China collecting together 19.1 mill t ME of milk, nearly 10% of the top 20 processors.

Turn-over per kg of processed milk ranges between 0.5-2.4 USD per kg in 2015, whereas Nestlé and Danone ranked highest and DFA and California Dairies ranked lowest.

The IFCN Top 20 Milk Processor List is biannually released with thorough validated data and comparable variables, what makes this list unique in the dairy economic world. This list is an important tool for the entire dairy industry and supply chain to better judge the perspectives of the national milk production and the global scale of milk processing.

IFCN Top 20 Milk Processors List 2016 Contact person Dr. Anke Heyer Network Management IFCN Schauenburger Strasse 116, 24118 Kiel, Germany Phone: +49 (0)431 – 5606 – 268; Fax: +49 (0)431 – 5606 – 262 E-Mail: info@ifcndairy.orgwww.ifcndairy.org

Advisory Board - 'Dairy Times' Mr. R.P. Banerjee, SSP Pvt. Ltd. Faridabad

Mr. B.M Vyas Former M.D Amul Anand

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

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

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

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

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

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

Dr. Harsev Singh Chief Exceutive Officer,

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

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

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

Mr. Subhash Vaidya CEO Dairy tech consultancy services Mumbai

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

EDITOR IN CHIEF Dr. J.V.Parekh

Ms. Racheline Levi Team Expert, Adepta, France

Dr. Satish Kulkarni Consultant, Bangalore

Dr. Mukund Naware Consulant, Mumbai

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

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

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