Dairy Times June - July 2017 by Advance Info Media & Events

Vol. 2, Issue 03, June-July, 2017 100/-

Indian Dairy Industry:

Value Added Products "The Game Changer" World Celebrates,

"World Milk Day"

IDF WorlD DAIrY summIt

Cold Chain Storage

An emerging industry in India

Living with the alternative

Dairy & Non Dairy Products Grass-fed Dairy An Expanding Market

Monitoring Methane Emissions from

Agriculture & Dairy Farming www.facebook.com/foodprocessing.india

Twitter@BeveragesFood

Join us: Agro-FoodProcessing India

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CONTENTS

FDA To Launch Milk Tester For Rs. 60 in 48 Next Three Months Heritage Foods completes acquisition of Reliance Retail’s dairy business Amul turnover grows 18% to Rs 27,085 crore in 2016-17 Dodla Dairy raises $50 mn from TPG Capital arm Foods aims to treble revenue in 5 years

A team from Osmania University looks at the role of cooperatives in India’s dairy industry

World Milk Day 1st June 2017

Govt hikes milk buying price by Rs 3, retail 50 rates won't be hit Hatsun Agro products meet highest quality standards: CMD New rules to hit cow breeding biz in Punjab 51 Dairy farmers

36 BULK Shipping

ACE TECHNOLOGIES introduces Swiss Can Machinery

India fails to export cheese to Russia

Indian Dairy Industry: Value Added Products the “Game Changer”

37 Living with the alternative

Marking a Decade of Integrated Food Law

Milk adulteration more in North India: FSSAI

Start-up Milk Mantra chalks out Expansion

Amul a bigger brand than HUL: Sodhi

The rebirth of full fat dairy

Training Programme on “Value Addition of Milk” 59 Value-added dairy products draw crowd

39 26

GST levied with mixed reaction by Dairy Industry

Elanpro Redefines Cool Quotient With New Blast Freezers 57

Importance and Implications of phenotypic variability in Gir cattle for breed improvement

The Ceylon Chamber Forms the “Dairy Association for Sri Lanka”

Uttar Pradesh govt to focus on popularising cow milk

Ramdev's fast food chain to take on MNCs Rates for 6 items to be finalized: no levy on milk, bread, cereals 61 PepsiCo moves into India's dairy market with Quaker drink launch Cow milk gets Mother Dairy moo-lah World Milk Day celebration at NDRI, Karnal

Rashtriya Gokul Mission

40 28

International Dairy Expo & Summit China 2017

Grass- fed Dairy An Expanding Market

IDF World Dairy Summit Belfast- UK Dean Foods and KRAFT Macaroni & Cheese announce Pure Love Partnership

Cold Chain Storage - An emerging industry in India

Where the smart money is!

Herd size rises in China World Celebrated World Milk Day

POST EVENT- SIAL

44 Milk Mantra-NSDC organizes learning program for dairy farmers

Arla adds €110 million in value

62 63

66 72

Heritage Foods Ltd. in JV with a European dairy firm GCMMF aims for 20 per cent sales growth in FY18

Starters and Phage Management

Dairies, aerated drink companies eye highmargin milk-based beverages Modi Govt Announces 5 lakh cash awards for best Desi Cow Herds.

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Opportunities in China’s cheese market

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EDITORIAL

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

dairy

www.agronfoodprocessing.com

Times

A Group Publication of Advance Info Media & Events

Vol. 02, Issue 03, June-July, 2017 100/-

Editor In Chief Dr. J.V. Parekh Group Editor Firoz H. Naqvi firoz@advanceinfomedia.com Marketing Executive S.H.Hasni hasan@advanceinfomedia.com Production Manager Syed Shahnawaz Naqvi General Manager Gyanendra Trivedi Graphic Designer Naved H. Kazmi naved@advanceinfomedia.com Circulation Seema Hayat Shaikh seema@advanceinfomedia.com Marketing & Circulation Office 121, 1st floor, Rassaz Multiplex, Station Road, Mira Road (E), Dist. Thane- 401107 Telefax : +91-22-28555069, Tel.: +91-22-28115068 Mob.: +91-9867992299 E-mail: info@agronfoodprocessing.com sub@advanceinfomedia.com Vol. 02 Issue 09, June-July 2017 Annual Subscription Rs.600/By Normal Post Add Rs. 400/-For Courier Charges (Annual) Add Rs. 50/- For Outstation Charges Overseas $80 By Air Mail Email:sub@advanveinfomedia.com Single Copy Cost Rs. 100/Printed, Published & Owned by Firoz H. Naqvi RNI No. MAHENG13830 Regd. Office Advance Info Media & Event 103, AmarJyot Apartments, Pooja Nagar, Mira Road (E) Dist.Thane-401107(Mumbai) Printed At Rolleract Press Services A-83, Ground Floor, Naraina Industrial Area Phase-1, New Delhi -110028

The views expressed in this issue are those of the contributors and are not necessarily those of the magazine. Though every care has been taken to ensure the accuracy and authenticity of the infomation,"Dairy Times" is however not responsible for damages caused by misinterpretation of information expressed and implied within the pages of this issue. All disputes are to be referred to Mumbai Jurisdiction.

t was the World Milk Day on 1st June 2017.The globe has been the best of World Milk Day as it was celebrated with great pomp throughout the world. World Milk Day was an incredible success taking place over 42 hours around the world with 587 events in 79 countries. The day started on June 1, 2017, with dairy farmers raising their glass of milk at sunrise in New Zealand and ended with the sunset in HawaiĂŻ. Milk and all dairy products were celebrated by farmers, staff, families, chefs, nutritionists, doctors, academics, and politicians raising their glasses to Dr. J.V. Parekh the benefits of milk in their lives. 25 events took place in India alone. Milk Editor in Chief being a great source of all the healthy nutrients, (calcium, magnesium, zinc, phosphorus, iodine, iron, potassium, folates, vitamin A, vitamin D, riboflavin, vitamin B12, protein, healthy fat etc.) is required by the body. It is very energetic diet that provides instant energy to the body as it contains high quality proteins including both essential and nonessential amino acids and fatty acids. Intake of dairy products is linked to improved bone health, and may reduce the risk of osteoporosis. With onset of 1st July 2017, GST will be seen extending its tentacles slowly towards the economic market and grasping the situation on the whole. It has already accumulated different reactions from all sectors of the country. Dairy industry seems to be not satisfied with GST and seeks to differ with 4-tier slab tax system. Going through the news and opinion of renowned personalities it will give a clearer picture about its acceptance. Dairy is the key figure of agricultural produce. And applying higher GST again adds to the misery of farmers and consumers at large. Indian Dairy Association has certain recommendations on GST for dairy industry. It largely states that Milk and Milk Products are basically for survival purpose of human being, hence... should not attract higher percentage of any tax whatsoever. For example Ghee which was 5% now attracts 12%, Butter which was at 3% will now be at 12%. Baby foods from 12% now will be available at 18% which are way beyond higher side. Excessive price of milk and milk product shall make it unaffordable to poor strata of society. Thus, making dairy sector unhappy on the implementation of GST rates. Coming to the other facts of Dairy Industry, it is reported by the food safety regulator FSSAI that milk adulteration is more in North India as compared to South. Roughly 2500 samples were collected from source, covering ordinary milkmen and local dairies. It was found that the samples containing additives like sugar, glucose were not only unsafe but also made product substandard. As a measure to control this malice a strip testinf kit to check milk has been developed which is a good news. As milk is of highly perishable nature, major requirement of cold chain infrastructure is of vital importance to increase the productivity of the milk. 101 cold chains have been sanctioned by Food Processing Ministry (MoFPI), out of which 33 are for dairy processing. The MOFPI has sactioned many projects and close to half of the projects are in three states: 21 in Maharashtra, 14 in Uttar Pradesh and 12 in Gujarat. The cold chain projects will leverage a total investments of Rs.3,100 crore for creation of modern infrastructure for the food processing sector. The total expected grant-in-aid for these projects is Rs.838 crore. It will add capacity of 56 lakh litres per day of milk processing. In Maharashtra the proposal approved is for Prabhat Dairy, Fortune Dairy Industries Pvt. Ltd, Vaishno Devi Food Products Pvt. Ltd, Ananth Dudh Pvt. Ltd to name a few. Recently, state government has increased the procurement price of milk that co-operatives pay farmers by Rs. 3 per litre. The government's move is not expected to affect the retail price of milk since it seems the government is only formalizing a rate that is already being offered by private dairies. A farmer will now get Rs. 27 for a litre of cow's milk, up from the Rs. 24 per litre that he gets at present. For buffalo milk, the government has increased the rates to Rs. 36 from the existing Rs. 33. These rates will come into effect from July 1. The hike was one of the main demands of farmer groups during their recent protest.

Advisory Board Mr. R.P. Banerjee SSP Pvt. Ltd- Faridabad

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

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

Mr. V.K. Ghoda Sr. Consultant, Perfect Solution, Vadodarra Mr. Vijay jailkhani Team Ldr, Schreiber Dynamix, Baramati

Dr. Mukund Naware Consultant, Mumbai

Dr. Harsev Singh Ms. Racheline Levi Chief Executive Officer Team Expert, Adepta France

Mr. Devendra Bhai Shah Chairman, Parag Milk Food, Mumbai Mr. Nitin Jain Aurum Equity Partners, Gudgaon

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

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

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

Mr. Subhash Vaidya CEO Dairy Tech Consultancy Serv Mumbai Mr. Dileep Dravid MD & Agro Dairy & Food CS Anand

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Dr. Satish Kulkarni Consultant,Bangalore

Dr. J.B. Prajapati Principal & Dean, SMC Collage of Dairy Science

Dr. Ashok Patel Fr. Princ Scientist & Head, Dairy Technology NDRI Karnal Dr. Suresh B. Gokhale Director Research BAIF Uruli Kanchan Pune

Mr. Vivek Nirmal MD Prabhat Dairy Mumbai

Dr. Trevor Tomkins President, Venture Dairy U.S.A

Dairy Times

Price List

Pricing Trends in Dairy Products: 2017 Domestic milk and milk products Price:

International milk and milk products Price:

Source: Market Watch

Source: USDA

Source: Market Watch

Source: USDA

Source: USDA Source: Market Watch

PepsiCo Plans To Enter Dairy Market

epsiCo India, the maker of Quaker oats, Lays chips and Pepsi Cola, is looking to enter the country's growing dairy market.

With consumption of carbonated soft drinks such as colas going down, the company is keen to increase the share of healthy products in its portfolio. While growth has remained muted (low single digit) in the Rs. 14,000-crore domestic soft drinks market, the dairy segment, pegged at around Rs. 99,000 crore, has grown by 13% in 2016 over 2015, according to Euromonitor. "We are definitely looking at dairy, especially valueadded products," said Vipul Prakash, Senior Vicepresident of beverages category at PepsiCo India. "But it won't be just flavoured milk." PepsiCo's rival CocaCola had forayed into the diary segment last year with ready-to-drink flavoured milk Vio. However, it failed to take off. PepsiCo India's largest bottler Ravi Jaipuria, who also sells Cream Bell ice-cream, is betting on the dairy market with valueadded products. Prakash acknowledged that sales of soft drinks have

Source: USDA

been slowing down in the country. He attributed it to the maturing of the domestic beverage market. "I would be worried if the size of the beverage market had been shrinking," said Prakash. "But that is not the case. A consumer has more choice today than what he had a few years ago, so he may be picking up products other than a sparkling beverage to satiate his drinking needs at different times during the day." Sales of value-added dairy products including lassi and buttermilk have been steadily growing, according to market researcher Nielsen. While volumes of health-based dairy drinks have increased by 30%, soft drinks have grown by only 10% in June 2016 over June 2014. Store base has also increased by 60% for dairy drinks in the same period compared with 10% for soft drinks, said Nielsen.

Dairy Times

National Article

A team from Osmania University looks at the role of cooperatives in India’s dairy industry

ooperative dairies have played a significant role in consolidating the market for milk and allied products. Importantly, they connect the suppliers to the consumers. Dealing with a perishable product such as milk is one challenge for organizing the operations. The other challenge is creating market awareness within the illiterate to partially literate community of small scale suppliers. After surveying the suppliers, both those who invested their own money in the business of dairying and those who took loans to enter this business, it was seen that their perceptions of the Mulkanoor Women’s Cooperative Dairy (MWCD) operations were salient and strong. Three components of the perceptions of suppliers on operations of dairy emerged from factor analysis: membership, internal communications, and market-based operations. The suppliers also reported satisfaction with the overall operations of the dairy. However, with suppliers who live in pucca-houses (concrete slab housing), satisfaction was observed with

both record-keeping and conduct of the elections. Dairy strength Two industries are dominating the Indian market today. The first is payments industry, which has been in the spotlight for political reasons, especially following demonetization. The second is the dairy industry. While it may come as a surprise to most people, investors have been watching the marketplace for milk and allied products. Amul, the biggest player in India, aims to more than double its revenues in the next three years (Ajith, 2016). Several established corporate and even more startup companies are entering this market and fighting for a significant share now. While it appears as mostly unorganized in its operations, the market today is in a phase of consolidation and sprouting of new firms. This market is also fertile with innovations of different kinds coming in, ranging from technology, to breeding and milk processing. One estimate is that the share of the organized sector may go up by six per cent in one year, and that it may double in three years

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(Yu, 2015). Long culture Dairy products and India have a deep connection that dates back to centuries. Part of the national culture is reflected by the country’s rural economy, which is working in the dairy sector. India is the world’s largest producer of dairy products and the largest consumer of dairy. A team from Osmania University looks at the role of cooperatives in India’s dairy industry. The latest statistics from the Food and Agriculture Organization (FAO) of the United Nations indicate that India imports large quantities of dairy products from The Netherlands, New Zealand, Australia and Germany, while exports go to countries such as Algeria, Egypt, Yemen, Saudi Arabia and the United Arab Emirates. The diversity of the countries India trades, shows that... the dairy industry... world. Within India, the state of Uttar Pradesh produces the largest quantity of dairy, and is followed by Rajasthan and Andhra Pradesh.

National Article

The National Dairy Development Board began recording production in Telangana state only in 2015, and the production of the state is close to 42 Lakh tonnes (lakh = 100,000 tonnes). The production of milk and how it reaches the consumer must be carefully understood. In summary, there is milk produced and it is first consumed at the point of production. The surplus at production moves through either the organized sector or the unorganized sector to the consumer market. The organised sector has two broad channels. The first is private companies, and the second is cooperative dairies. Between the two, cooperative dairies contribute more towards milk produce reaching the customer, and there is a tendency for private players to move up into value added products. Key cooperatives The importance of cooperatives in the dairy industry cannot be discounted. They are the agency to which small producers connect and deliver their produce to local markets. Cooperatives have been the primary channel of development of the dairy sector. Therefore, if India wants to scale up production and add value, cooperatives are the first go-to agency. Another reason for this is that setting up a sourcing chain for procuring milk is sometimes difficult and unviable for private players. As a result of the perishable nature of milk and range of skills involved in its production and marketing, dairying requires a number of services that can best be provided by cooperative action. It is not surprising therefore that the cooperative movement has featured prominently in development of the dairy industry worldwide. While farmersâ&#x20AC;&#x2122; cooperatives of various types play a useful role in promoting rural development, dairy cooperatives have special attributes that make them particularly suitable. Among these, they can facilitate the development of remote rural economies, thus upgrading the standard of living for the poor. The main constraint that milk producers seek to overcome by acting collectively is the marketing of their product. The need to be assured of a secure market is a real one. It can be met by dairy farmers cooperatively establishing their own collection system and milk treatment facility in order to convert their perishable primary produce, which requires special

attention, into products with longerkeeping qualities for marketing purposes. Considering that cooperative dairies grew based on the Amul model (or Anand model), and this was with minimum state intervention, makes their success worth celebrating. Briefly put, the cooperative dairyâ&#x20AC;&#x2122;s operations include: a supply of inputs for dairying in form of fodder, animal feed plants and veterinary aids for cattle and buffalos.

Medical services offered by the cooperative

Milk is taken out from the milch animal on the daily basis by the dairy farmers (large, medium and small scale farmers â&#x20AC;&#x201C; this is mostly an activity of suppliers). It also includes the collection of milk by collection centers established by cooperatives. Milk collected by the cooperative societies is sent to the dairy plants where chilling/ processing and packaging of milk/milk products is carried out. The milk and milk products are then transpoted in insulated /refregrated vehicles as per products requirement. The final processed milk and milk products are transported to various retail outlets, supermarkets, and to retail markets from where the processed milk and milk products finally reach the end customers. Some of the issues in managing these operations include meeting seasonal spikes in demand and the ability to measure the quality of procured milk at the source, the complex logic of payments to producers based on fat, solid nonfat (SNF) and quality of milk received, keeping track of truck and tanker routes, as well as capabilities for viewing, monitoring and payment based on route or distance, and visibility into the shelf life and stock-outs of raw material (Singh, 2015).

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13 Subburaj et al (2015) recently compared Tamilnadu Cooperative Milk Producers' Federation with the Gujarat Cooperative Milk Producers' Federation, in order to identify the key differences in their operations. Based on field studies and surveys, researchers found that there were five key areas in which these cooperative dairies were different. They were the creation of a special dairy zone, implementing dynamic milk procurement method, strengthening cooperative societies, the creation of feed banks and increasing fodder productivity, an integrated animal health plan and information technology. This study shows two things: first, the cooperative sounds like a highly defined agency. However, there are regional variations in how they operate; and second, each cooperative has distinct challenges that are presented to them by the geographical and climatic conditions they operate in, other than the cultural challenges. Therefore, it is reasonable to conjecture that the way in which a cooperative sets up its operations should be able to guard against potential risks and leverage the opportunities bestowed by nature and local culture. The motivation to study operations at MWCD is justified in the context of state separation, where Telangana state is competing to be among the top producers. Methods MWCD started milk procurement on 17 August 2002. In 1998-1999, based on the suggestion given by the members for establishing dairy for alternative supplementary income, the Cooperative Development Foundation (CDF) conducted a series of feasibility surveys in the villages and nearby cities, using the technical help of the National Dairy Development Board. The studies revealed that there are 72 villages around Mulkanoor with at least 14,000 litres per day (LPD) marketable surplus. The demand in Warangal city was about 30,000LPD. About 60-70 per cent of the total demand in Warangal A

National Article

Also, the MWCD launched its own brand, Swakrushi. In the context of increasing competition, and with new players entering the milk market segment, it is important for the MWCD to revisit its operations and strategy to make its position strong.

Milk Vendor in India

City was being catered to by unorganized milk vendors. Thus, a dairy union with a capacity of 25,000LPD expandable to 75,000LPD was established. The full capacity of 75,000LPD was reached in 2013.

Towards this goal, the International Livestock Research Institute, Telangana also conducted a survey to assess the alternatives that the MWCD has. Its report also suggested improvements in operations. The research had two main objectives: To find out if suppliers perceive and group together operations activities into categories, so the grouping enables

MWCD to focus effectively in the long run. Secondly, the objective was to find out if the suppliers perceive significant areas for improvement in the operations of the MWCD, so that those aspects may receive due attention in the short run. The study was conducted using a survey method. After initial interactions with the MWCD personnel, a survey with 15 items was prepared with an intention of understanding the satisfaction of specific aspects of the MWCD operations. All items were to be responded on a five-point scale, indicating the level of satisfaction or dissatisfaction. In addition to these items, another five items were included by the researcher with an intention of understanding the satisfaction of suppliers with the MWCDâ&#x20AC;&#x2122;s overall operations. Also, demographic details of the respondents were collected. The final survey was administered to 240 milk suppliers who were connected to the MWCD. All of them have responded. Analysis Factor analysis was performed on the responses to 15 items that looked at specific aspects of operations, to identify if there were any underlying patterns in how suppliers perceived those activities of operations as similar or different. Three factors emerged as significant. These included market-based operations such as marketing, distribution, and payments; internal communications such as conducting meetings, elections, keeping the accounts transparent and communicating the roles and responsibilities; and membership of the suppliers, including their awareness of the cooperative and their right to vote. Later, an analysis of variance (ANOVA) was performed on these specific items to identify any variations in responses of suppliers grouped by the type of house they lived in. For this study, the houses were classified as pucca (concrete slab), cutcha (shack), and semipucca (stronger than a shack, but not as strong as concrete house). Type of house in this study served as a soft proxy for the economic status of the suppliers. Finally, another ANOVA was

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Web: www.harshaenterprises.co Email: sales@harshaenterprises.co/ kiran@harshaenterprises.co

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National Article

performed on the five additional items that measured the overall satisfaction with the operations of MWCD. Again, the basis for classification of suppliers was the type of house they lived in. The premise here is that economic status plays a crucial role in industries such as dairy, which are highly dependent on an agency system such as cooperatives. Results It may be seen that the respondents living in pucca houses have reported on average the lowest satisfaction on both the items. However, it must be noted that this may not be an immediate cause for concern since ratings in general are tending towards satisfactory. While the explicit objective of this study was to assess the satisfaction of suppliers with the operations of the cooperative dairy, there were other aspects that came out

more prominently through conversations with personnel of the dairy and the milk suppliers.

The dairy does well in aspects of marketbased operations such as marketing the product and ensuring timely payments. The type of contracts that the cooperative gets into is also beneficial for the suppliers, ensuring that there is a continuous stream of demand they can serve to, either directly in the milk market or in the valueadded segment. However, the constraint on operations seems not to be so much within the dairy, but at the end of the suppliers. For example, fodder seed production is a major challenge. Most of the milk suppliers do not own large lands where there can be sufficient fodder produce. Also, there is a scope for improving the utilization of crop residues in the area. There was also a need for a credit facility, especially given that the demand for milk is increasing, so that additional animals may be procured and the supply constraint can be handled. Another way of tackling this issue is by raising the output per animal, which requires high quality breeding, and in turn depends on fodder and water facilities. Also, to leverage the facilities already set up by the cooperative dairy, there is also a possibility to include milk producers who are not members yet. Research by P. Kishan Rao,Vinay Kumar Chaganti, S. V. Satyanarayana of the Department of Commerce, Osmania University, Hyderabad, India

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National Article

Indian Dairy Industry: Value Added Products the “Game Changer”

T Nitin Jain, Partner Aurum Equity LLP, Gurgaon.

his summer, the change in taste preference towards dairy beverages is more evitable than ever before.

Buttermilk or chaas costing INR 12-14 per 200 ml is cheaper than a 200 ml carbonated drink and perceived as healthier. Sales of buttermilk, lassi, curd etc are growing at an accelerated pace, and we are seeing dairy companies launching a lot many new products, variants to take advantage of the increasing growth. For example, Parag Milk recently launched a whey protein product under the name of ‘Avataar’, Prabhat Dairy entered the ice-cream segment under the brand called ‘Volup’, North-based Kwality Limited has too launched a host of new value added products. Also, a lot of startups have cropped up selling branded milk shakes, organic milk, flavoured paneer etc. Meanwhile, the 800 pound gorilla in the market - the INR 31,000 crore Amul (FY 16) aggressively launched new products too and is expanding its distribution network (e.g increasing its presence in markets like North India), with the goal to double revenue to INR 65,000 crore by 2020. Dynamics of the Indian dairy valueadded products market Traditional dairy products like liquid milk, butter, ghee, paneer and curd have

a small organized sector comprising only 15-20% of the total market. As the dairy sector evolves, organized market for traditional dairy products is expected to grow at a CAGR of 15-20% per annum for the period FY 2016-2020. Unlike the developed and matured markets, liquid milk in India is nearly 2/3rd of the market, while growth in value added products will outpace growth in liquid milk, it will still have a major chunk of the market even in 2020. The modern value added products like flavoured and frozen yogurt, UHT milk, flavoured milk are expected to grow much faster than market, projected to grow at 25-30% per annum for the next 4 years, growing from a small base.

Overall as the dairy market grows at 15%+ over the next few years, there is a transformational shift towards value added products as its contribution is expected to increase to 40% by 2020 with modern value added dairy products becoming a formidable INR 40,000 cr market. What’s driving this fast growth in value-

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added dairy products ? This frenzied growth in value-added dairy products is being driven on the following counts – 1. Affordability – Dairy beverages like chaas, lassi, flavoured milk are priced lower or equivalent to carbonated drinks, and much cheaper than juices or other health drinks 2. Quality – The overall quality of milk has improved dramatically over the years, as direct milk procurement has increased thus cutting off the middle men, investments in plant and machinery, systems and processes to ensure a high sense of manufacturing hygiene 3. Demand for Healthy foods and beverages growing - Indian consumers want more healthier food and beverage options to consume, and are also willing to pay a premium ranging from 20%80%, as per a recent study conducted by research agency Nielson. Conclusion Indian Dairy Industry is evolving at a fast pace, and dairy companies will need to transform themselves from traditional milk companies to FMCG companies, that have strong procurement/ backend to ensure high quality milk to consumers, to nation-wide distribution as ‘localization’ in dairy loses relevance; will need FMCG peers. Also, we believe that with the composition of revenues for dairy companies changing towards a more balanced or favourable mix towards value added products v/s liquid milk, EBIDTA margins that today ranges between 6-8% may increase to teens to mid-teens. This will have a strong positive impact on valuations for dairy companies going forward. In conclusion, dairy companies that embrace this change, and are willing to change the DNA of the company will benefit over the medium and long term.

National Article

Importance and Implications of phenotypic variability in Gir cattle for breed improvement

nimal biodiversity under agro biodiversity occupies a distinctive place within biodiversity. It Dr. Suresh B. Gokhale animals Director Research, BAIF, recognizes Central Research Station, evolved from bio Uruli Kanchan, Pune prospecting, selection and development of few species from animal kingdom to meet the basic human needs for food and livelihood. Indigenous livestock breeds have sustained human livelihood for centuries. Today, they represent a treasure trove of diversity and adaptation that remains largely underexploited. Demand for livestock products is increasing against a background of rapid changes in agricultural sector, genetic erosion of indigenous livestock diversity and increasing impact of climate change. The world faces a challenge to respond quickly yet sustainably to a rapid increase in demand for livestock products, while addressing the poverty and poor nutrition typically found in livestock – producing households. Rapid achievement through the livestock diversity understanding and identification of unique traits of indigenous animal genetic resources

and their utilization within breeds and crossbreeding improvement programs is need of the day. Today, most production systems worldwide depend on native livestock breeds domesticated in the respective region. Animal husbandry provides livestock associated livelihood and employment to economically weaker communities and households, the enterprise has still not reached in the rural households of most areas of the country. Gir is an important cattle breed nationally and internationally. Although countries like Brazil, Mexico, USA, Venezuela and other Latin American countries have imported Gir breed animals and are breeding them successfully, concentration of use has been mainly on beef production and towards adding heat resistance components to their own breeds. Nationally, a wide variety of 20 agroecological zones and 60 subzones exist inhabiting over 40 breeds of cattle (8.89% of world’s cattle breeds) resulted from the evolution over millions of years in association with man’s intervention within specific ecological niche to suit the local needs and they are well adapted to their native ecology. Out of total 190.9 million cattle in India, 166 million

19 are Indigenous, only 20% belonging to recognized breeds. Animal genetic resources of native breeds are largely underutilized and indiscriminate cross breeding has degraded local breeds to a large extent. Almost all the indigenous cattle in India are robust and resilient and are particularly suited to the climate and environment of their respective breeding tract or natural habitat. Heat tolerance and disease resistance are the important qualities of genetic origin inherited by indigenous livestock. Their ability to perform under extreme stress and sub-optimal nutrition, make them most ideal and suitable to prevailing native conditions. Thus, effects of global warming are likely to be minimal in indigenous breeds of cattle. Gir originates from Gujarat state of western region of India. It is necessary to understand the environment of the region. Geo-ecologically, the region is bounded by Thar desert in the north west, the Vindhya Range in the south and the Arabian Sea in the west. It experiences an arid to dry sub humid eco climate, with aridity increasing from the east to the Thar desert in west. Atmospheric temperature varies from 10° C in winter to 42° C in summer. Almost three quarter of the area is rainfed and large part of it is semi-arid. Irrespective of the community to which the land owners of the region belong, majority of them (and about half of the landless) own some animals. During the years when rains fail or in semi-arid /arid areas, income from livestock accounts for about 60% of the farm income. There are many important requirements and challenges for the livestock sector. The key areas of importance include livestock system intensification in the region focused on dairy husbandry. As per GOI (2014), western India livestock sector is holding 22.95% of India’s livestock population consisting 20.35% as cattle fraction. Out of total indigenous cattle population in western region, 14 cattle breeds form 25.1% of population. While 74.9% animals are nondescript. Breeds are distributed in three major types as per their utility (i) Milch breeds- Sahiwal, Gir, Rathi and Tharparkar (ii) Duel

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22 purpose Breeds- Kankrej, Deoni, Gaolao, Hariana, Krishna valley (iii) Draft breeds – Dangi, Khillar, Red Kandhari, Malvi. Nagori. Gir constitute 3.38% of total indigenous population. Since the pure Gir type is noted from Kathiawar region of Gujrat and hence is also called Kathiawar breed. Animals are bred throughout Kathiawar but more specifically in Gir forests and hills situated in southern part of Junagadh district, from where they take name ‘Gir’. Although Gir is pre-eminently a milking breed, the male stock although somewhat slow and lethargic as compared to draught breed is also used for general purpose. Crossing of Gir with local nondescript cattle is practiced since long ago to introduce milking ability in draught animal and draught ability in Gir bulls. The breed is also known to be involved in forming new breeds (for example- Krishna Valley, Deoni etc). Importance of indigenous Gir breed and emphasis required for its improvement need not be stressed separately. Gir cattle in Saurashtra provide milk, manure and draught power. Rearing and maintaining Gir animals in migratory fashion has been a traditional occupation by most of the communities like Maldharis, Ahir and Mer etc., although many of the migratory communities now are settled due to constraint of non/limited availability of grazing land and opposition from farming community to permit cattle passing through their area during migration, they still continue to maintain them not opting for artificial breeding, they use their own bulls intensely selected both for qualitative and quantitative traits and share them amongst other breeders using them by rotation. According to need and societal level developmental pressure, traditional pure breed Gir characters got scattered within breed population although some herds still maintain pure Gir with the help of old knowledge from traditional cow keeping communities, Gaushalas and literature. Attempts have been made by either research scientist and/or Gir breed association to physically and morphologically characterize Gir breed; however as an institution providing Gir breeding services in Gujarat, Rajasthan and Madhya Pradesh states of the country, it is experienced that phenotypic preference of Gir breeders vary from district to district within state and between states. Tens of thousands of artificial

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inseminations annually carried out on Gir farmer herds) was carried out during and Gir type animals in different states January to March 2017 covering four are without any specific emphasis given districts - Amreli, Bhavnagar, Rajkot, for selecting the breeding bulls except and Surendranagar in Saurashtra region making them pregnant for subsequent of Gujarat state. From the total of 13362 milk production. The selection of animals screened, data set of 2024 breeding bull is limited to the extent of lactating adult females (260 from 6 giving preference to a bull calf born from a organized herds-Goshalas and 1764 from mother giving higher lactation milk yield 619 farmer herds from 149 villages) were than the breed average. The experience of selected for studying relationship between providing artificial breeding services to phenotypic traits and milk yield. District Gir cattle in Gujarat state, reveal that Gir wise details are presented in following breeders demand semen of one of the four table: types (strains) of Gir. The strains they indicate are Bhavnagar, Junagarh, Rajkot and Amreli strains. This was evident from the differential consumption of semen of bulls in different operational districts, thus exhibiting specific phenotypic traits of their choice besides expecting higher milk production potential in the bull of their choice. District, village and farmer herd wise distribution of Gir animals Gir breeders expect breeding agency to Following general observations were provide them semen of strain specific recorded while carrying out survey: bulls having higher milk production potential. Extensive discussions with 1. Animal size with feed consumption Gir breeders in breeding tract districts and milk production needs considered for regarding specifications of different economic maintenance. During the survey strains did neither lead to strain specific it was noted that breeder preference for recommendations nor the reference to animal size (large, medium or small) was National Bureau of Animal Genetic varying irrespective of level of feeding or Resources, Karnal, Haryana could guide production. Body Surface Area (BSA) of to conclusive evidence of strains, although an animal can be used as a tool to create the problem of differential requirement awareness among breeders regarding among breeders still exist. importance of economic production standardization. The breeders argue that their traditional approach for selection for breed Replacing existing subjective body size improvement necessarily considers assessment to objective approach using phenotypic and production traits together BSA can help breeders to adopt suitable and hence they would not ignore selection practices. Earlier constraints of phenotypic traits which add beauty estimating animal BSA at laboratory level to their animal besides protecting the is now overcome to easily implementable incremental production. approach at village level by taking a photographic image of animal and using An attempt, therefore was made in computer program for processing to get consultation with farmer breeder’s BSA. The BSA ,therefore was included as representatives, government officials and one of the quantitative trait in processing agricultural university representatives the survey data. to undertake a survey to investigate and arrive at generalized approach for 2. Three types of Gir breeders were noted acceptable phenotypic choices of Gir during the survey: Elite breeders who breeders for their cattle. were generally well to do, maintaining A survey of randomly selected Gir herds selected good animals and were genuinely in breed tract (including goshalas and interested in breed development. Medium

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farmers who were involved in milk production and sale of animals; they possessed good to normal Gir animals. Poor farmers holding one or two animals maintained for livelihood purposes. Category of animals possessed by them varied from excellent to poor.

lactation yield of 305days and BSA. Survey analysis While compiling and scrutinizing the collected information, in all 27 morphometric / Qualitative traits and 9 quantitative characters were considered.

by Surendranagar and included colors like Galakadi, Kabari, Bawali, Krishna Kapila, Pingal, Liladi, Bagali. (tan, dirty white, yellow, white or brown spot present on body coat). The Non spotted population fraction was more (68%).

3. Average herd size at farmer herd was 2.85 while that in goshala was 43. Mean lactation milk yield across the districts studied ranged from 1743.72 Kg. in Surendranagar to 2073.86 kg. in Bhavnagar district.

Correlation between different traits studied under qualitative trait group, those between different traits under quantitative trait group and those between qualitative and quantitative traits groups were calculated. The study included correlations and ranking of the subtype with production performance (in terms of milk production).

The number of animals of this class was found evenly distributed across the districts although comparatively more animals were found in Bhavnagar district followed by those in Rajkot district. This class included animals of Gori, Swarn Kapila, Makadi, Telami (dark or faint color pigmentation in brown) body coat color.

Approach to survey During survey each animal was evaluated based on individual phenotypic trait. The details of traits along with the number of variations recorded in bracket are as follows : Body size (3), Body Coat Color (11), Body Length (2), Loin (2), Forehead (3), Ear Shape(6), Color of Nostrils – Muzzle (3), Eye type (6), Dewlap (3), Horn base (2),Horn Shape(4), Horn Tip Orientation(6), Hump Size (4), Skin Smoothness (2), Tail Length(3), Tail Switch Color (2), Naval Flap (3), Milk Vein (2), Udder Type (3), Teat Shape (3), Teat Tip Type (3), Legs Thickness(2), Legs Color (3), Hoof shape (2), Vulva Color (3), Milking Behavior (2), Herd Behavior (2), Temperament (3). Quantitative observations on measurable phenotypic traits (for example hump circumference, forehead height, forehead breadth, duelap length, dewlap width, tail length) were recorded besides those on body length, chest girth, height at withers,

Body coat color were grouped into 11 classes, designated as Bagali, Bawali, Galakadi, Gori, SwarnKapila, Kabari, Makadi, Liladi, Pingal, Telami, Krishna Kapila. Since all the classes showed patterns- for example like mixture of two colors, shades of brown with shades of white or only shades of brown etc. It was therefore decided to broadly classify body coat color in two broad main subtypes i.e. “Spotted and Non-spotted”. The fraction of population of spotted category in the sample studied was found to be 32%. More number of such animals was found in Amreli district followed

In general the animals in spotted color class were found to give higher milk yield compared to non spotted class. The differences across districts were found important because of the choice exerted by farmers to choose the type of body coat color. Erratic distribution and small number of animals in some classes necessitated their regrouping. The relation between milk yield and individual subtypes in phenotypic class was calculated using correlation method. The traits showing lower estimates were eliminated while those phenotypic traits (like body coat color, forehead height and breadth, ear shape, eye type, naval flap size, udder type, vulva color) showing higher and significant correlation ranging from 50 to 95% with lactation milk yield hinting the importance given by Gir breeders to carefully select bulls of specific phenotypic traits to get the females of beauty traits and the production combined together were considered for further analysis. After ascertaining the number of traits of high correlation with milk yield, an attempt was made to carry out principal component analysis to explore combination of traits giving higher and reliable value so that selection can be made both for phenotypic and quantitative

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(i.e. smaller size, moderate food consuming and higher milk yield) is possible if combined selection index can be prepared based on body surface area, nutrition status and production traits. It was noted that average body size in terms of surface area was found to be 2.0926 Âą 0.78 sq.mtrs.

production traits. Results of analysis indicated that selection based on following phenotypic traits will be effective for safeguarding favored phenotype along with higher milk production. Preliminary results reveal that selection of suitable type of bulls for breeding can be achieved by using the output of such analysis, further, Gir animal

Suggested future approach The scientific community in the country presently is concentrating on searching ways to improve economic traits (Age at first calving, lactation milk yield inter calving period etc.) the observations of the survey indicate: i. The need of investigation into the strategy of whether we should favor spotted or non spotted or both subtypes along with the production traits. ii. Looking at farmer preference at micro regional level, whether we need plan for

district level approach for selection of bulls. iii. Assessing and standardizing size of animal in relation to feeding and production performance need to be arrived at. This could be generalized recommendation irrespective of region provided region / district wise phenotypes are considered. iv. It appears that deeper investigation is needed in arriving at definition of existing strains of Gir based on study of larger population than has been mentioned in the present trend. Besides, survey observations, there is a need for deciding an approach for optimized utilization of culled stock, improvement strategies for animals maintained at Goshalas, strategy for handling breed variations across different states of the country, Breed development strategy in terms of production and reproductive traits improvement, strengthening existing Gir breed association and forming and integrating many more such interested groups across the states are needed. The present coordinated breed development and research efforts from Central and state Government need to be expanded to address many more issues than those covered presently. Instead of taking a generalized breed development and improvement approach by isolated encouragement to Gir breeders giving monitory prize to their high producing animal is likely to be making impact only the big farmers/ breeders capable of spending on their animals for getting the required results. Instead, formation and implementation of integrated breed improvement program incorporating genetic, developmental, extension, farmer / breeder inclusion and marketing aspects would go long way for the benefit of the country. What is needed is right infrastructure, manpower and the knowledge for addressing the improvement in suggested manner and most importantly a will to achieve desired progress.

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Rashtriya Gokul Mission A Step towards upgradation of cattle breed

Livestock Census 2012) has 13 % of the world cattle population. Out of this, 151 million are indigenous, which is 80% of the total cattle population. Country with 108.7 million buffaloes has 57% of the world buffalo population. India is number one in bovine population having 18% of the world population and contributing 20% of the total milk produced in the world.

overnment of India has initiated Rashtriya Gokul Mission in December 2014 exclusively for the development and conservation of indigenous breeds in a scientific and holistic manner. The present India showcases the milk production with a growth rate of 6.28% during last two years 2014-15 and 2015-16, which is much higher than the growth rate of around 4% in the previous years. The per capita availability of milk increased from 307 gram per day in 2013-14 to 340 grams per day in 201516, a growth of 5% which was below 3%

before 2014-15. From sources it is known that India with 190.90 million cattle (as per 19th

For the first time in the world under the scheme National Mission on Bovine Productivity ‘e-pashuhaat’ portal has been developed for connecting breeders and farmers regarding availability of bovine germplasm. Through the portal breeders /farmers can sell and purchase breeding stock. The information on all forms of germplasm including semen, embryos and live animals with all the agencies and stake holders in the country has been uploaded on the portal. Through this portal, farmers will be aware about the availability of quality disease free bovine germplasm with different agencies in the country. The portal will lead to propagation of high genetic merit germplasm. To increase productivity of indigenous cattle population, the allocation for development and conservation of indigenous breeds has been increased by many fold from Rs. 45 crores in 2013 to Rs. 582 crores. “Rashtriya Gokul Mission”, a new initiative under National Programme for Bovine Breeding and Dairy Development has been launched for the first time in the country, with a view to conserve and develop indigenous bovine breeds. The mission also envisages establishment of integrated cattle

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development centres ‘Gokul Grams to develop indigenous breeds including up to 40% nondescript breeds. Till date projects from 27 States have been approved with an allocation of Rs. 582.09 crore and out of this an amount of Rs. 216.54 crores has been released to the States for implementation. Establishment of 14 Gokul grams have been sanctioned under the scheme with an outlay of Rs. 129 crores.

protection of indigenous cattle breeds. Funds have been sanctioned under the scheme for the establishment of 14 Gokul Grams in the country. Details of gokul grams is as under:

recognised by National Bureau of Animal Genetic Resources. No new breeds are proposed to be developed at these centres.

The aim of these centres is to develop and conserve existing indigenous breeds

for implementation of the scheme.

Provision has been made under the scheme for training of manpower required

Two “National Kamdhenu Breeding Centres” are being set up as a Centre of Excellence to develop and conserve Indigenous Breeds in a holistic and scientific manner. The National Kamdhenu Breeding Centre, besides being a repository of indigenous germplasm, will also be a source of Certified Genetics in the Country. An amount of Rs.25.00 Crore has been released to Madhya Pradesh for establishment of National Kamdhenu Breeding Centre in Itarsi, Hoshangabad in Northern region of India and Rs. 25 crore has been released to Andhra Pradesh for establishment of National Kamdhenu Breeding Centre in Chintaladevi, Nellore in Southern region of India. Under Rashtriya Gokul Mission, all the bull mother farms available with State governments and State Implementing Agencies/ State Livestock Development Boards are covered for modernization and strengthening of existing infrastructure. The indigenous breeds of cows besides being heat tolerant and resistant to diseases, are known to produce A2 type milk which protects us from various chronic health problems such as Cardio Vascular Diseases, Diabetes and neurological disorders besides providing several other health benefits. There is a need to market A2 milk separately in the country. Amount of Rs 2 crore each has been sanctioned to Odisha and Karnataka for marketing of A2Milk of indigenous breeds. Allocation under Rashtriya Gokul Mission 'Gokul Grams' are being established under the scheme which will function as centres for the development and

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Cold Chain Storage

- An emerging industry in India

old chain is the process which involves the transportation of temperature-sensitive products along a supply chain through thermal and refrigerated packaging methods to protect the integrity of these shipments. Cold chain management includes all of the means used to ensure to maintain constant temperature (between +2°C and +8°C) for a product that is not heat stable. There are several means in which cold chain products can be transported - refrigerated trucks & railcars, refrigerated cargo ships and air cargo. Although, the sector is fragmented and not mature but there is huge potential for growth. The growth may require change in the way of working and developing new capabilities around handling food collection, storage and transportation posing huge advantage in the current situation of economic growth. An effective cold chain network forms a strong backbone of the food industry. Due to climatic diversification and geographic vastness of our country, India has to build up fragmented infrastructure of cold warehouses, vehicle transportation, associated services and better roadways, railways and bridges. This is the very reason why we require integrated logistical support and cold

By Dr. J.V. Parekh

chain solutions to enable easy accessibility and smooth flow of produce from farms to tables- fresh and safe. The cold chain sector should assist the farmers to extend the shelf life of perishable products, transverse long distances, reach wider market segments and larger consumer base. The Phenomenal Growth The food processing sector comprises two segments- Primary (packaged fruits & vegetables, dairy products etc… constituting around 62% in value) and Value added (processed fruits & vegetables, juices, jam & jelly etc constituting around 38% share in the total processed food industry). Currently, India has 6,300 cold storage facilities unevenly spread across the country, with installed capacity of 30.11 million MT of horticultural and nonhorticultural produces which is not even 10% of the total production. More than 50% of the facilities are currently concentrated in Utter Pradesh (being the highest) followed by Punjab, Maharashtra, Gujarat and West Bengal. 96% of the cold storage is in Private sector; more than 75% of the capacity is utilized for potato and rest 23% are under multi commodity category. Much of this multi-purpose cold storage capacity is located in the states of

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Karnataka, Maharashtra, West Bengal, and Tamil Nadu and in the National Capital Region (NCR). In this sector, the organized players contribute to around 8-10% of the cold chain industry market and 36% of these cold storages have capacity below 1000MT. Role of Cold Chain Sector in Dairy Industry India ranks first in global milk production with an annual rate of 155 million tons and hosts more than 50% of the processed milk products. In the early 1990’s, the dairy industry was subjugated by liquid milk whose share was 80-90%. The traditional dairy products like curd, ice cream, butter and buttermilk were largely unpackaged. Dairy infrastructure needs to be streamlined and standardized adding into the value chain process to bridge the gap between the dairy farmers, milk processors and consumers in the supply chain. There are over 55 million dairy farmers in the private sector and cooperative networks. Milk as we all know is a highly sensitive and perishable product. It has a very short life. Hence, if kept in the controlled climate environment it will reduce the rate of spoilage. This helps extending the shelf life of the milk and milk products. While the degree of life extension due to controlled environment varies from

Schaefer Systems International Pvt Ltd. P: +91/22/7117 0101 • info.in@ssi-schaefer.com • www.ssi-schaefer.com

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30 one product to another, the impact of refrigeration is undoubtedly clear. Any pause in the temperatures across the chain of cold storage will accelerate the rate of decay. It is here where the modern and latest cold chain sector steps in. They are designed to start right from the farms. The produce is pre-cooled within an hour of harvest to suck out the farm heat from the produce and retard decay. Transportation is in refrigerated tankers or reefer trucks, storage is in controlled climate warehouses and retailing is through refrigerated shelves. Such a supply chain not only reduces value loss and damages but also reaches the destination safe and sound.

Cold chain in the dairy sector is divided into two sectors – frozen and chilled. Items like ice cream, frozen meat, seafood and processed food come under the frozen sector, whereas products like milk and dairy products, fruits and vegetables, confectionery and chocolates come under the chilled sector. Chilled products face a number of challenges during transportation, as they need constant controlled temperatures. Thus, innovations in reefer trucks are necessary for the proper distribution of the temperatures. The cold chain sector in India is a combination of surface storage and refrigerated transport. Surface storage mostly account for huge warehouses and cold store godowns.

Refrigerated transportation counts for mobile trucks, vans, rails and flights. Around 40% of our produce is wasted due

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to inadequate cold chain infrastructure and one third of losses incur during storage and transit leading experts to opine that India has less than half the capacity to meet its current cold chain needs. According to the Federation of Cold Storage Associations of India, small producers in the dairy industry do not avail the amenities which poses a challenge for cold chain services. Nearly 65% of the total dairy farmers are small herd holders and are geographically scattered, that adds to the shortcoming of cold chain. Only the large producers have inbuilt capacity for in-house use. An independent network of cold chain operators with chilling centres up till the last mile of the country is necessary to build a brawny infrastructure. Reefer or refrigerated trucks, vans and small chilling plants are the solutions to the far reaching small herders. The venture of private sector in building up cold chain facilities for dairy field can actually change the scenario with substantial routing of the unorganized and unprocessed milk through an organized channel of cold chains and milk processing plants. The Public Private Partnership or PPP in this area can be implemented by the private sector by planning, designing and development of Bulk Milk Coolers units (BMC) and chilling facilities for milk at strategic locations so that it can cater to a larger milk zone. The cooling or chilling cost of milk can be transferred to the consumer through the processing cost and the farmers would not get taxed for the chilling facilities. The PPP mode can also ensure to Build, Own and Operate cold chain and provide milk testing facilities so that farmers get remunerative prices This is possible by – i). Designing, building and operating animal feed processing plants, milk processing plants. ii). Build, own and operate a cold chain having a fleet of refrigerated vehicles and insulated stainless steel tankers. iii). Lease or redevelop and operate the abandoned and

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sick cooperative milk plants. The other major areas where government can facilitate a conducive environment to foster infrastructure and logistics development in the dairy sector could be in providing land at a subsidized rate for building bulk milk cooling units and dairy plants to keep the project cost on the lower side. Providing special category status to the land used for the dairy so that the registration and other duties/formalities are reduced to a great extent. Providing subsidized electricity supply to the bulk cooling units and milk chilling plants to encourage more takers for the project to name few. The key to the success in sustaining a dairy processing plant business is perfect management of its operations like manufacturing and production systems, plant management, equipment maintenance management, production control, industrial labour relations and skilled trade supervision, strategic manufacturing policy, systems analysis, productivity analysis and cost control, and materials planning. PPP in this context can help through contracting-in models which would entail hiring of one or more number of agencies to cater to an array of services such as: • Maintenance and upkeep of Infrastructure. • Quality testing and nutrient estimation at factory end. • Regular maintenance of cleaning in place systems and conformation to quality standards like ISO, HACCP etc. • Purchase of inventories and materials management. • Transportation There is a need to develop better infrastructure to prevent milk spoilage and for better microbiological quality. The answer to this lies with the key companies from automobile industry like the TATA, ASHOK LEYLAND, EICHER who can provide customized vehicles to suit transportation needs for the dairy industry. In developed countries, chilling facilities are present at farmer level. The domestic demand and consumption of processed and value-added dairy products such as butter, cheese, buttermilk /chhaach, curd, flavoured yoghurts, UHT milk have also grown at a CAGR of 10-15%in the recent decade. The

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trend is visible though the market study of investments, acquisitions, capacity expansion and new product launches by private and global market giants of dairy industry like Amul, Parag Milk, Prabhat Dairy, Heritage, Hatsun Ago Products, Nestle India, Groupe Lactalis, Danone etc…

& marine, poultry & meat products by establishing linkage from farm gate to the consumer, end to end, to reduce losses through efficient storage, transportation and minimal processing. The different components of the cold chain projects are as under:-

31 Pattern of Assistance:The scheme provides grant-in-aid @50% of the total cost of plants & machinery and technical civil works in general areas and 75% for North eastern Region and difficult areas subject to a maximum of Rs.10.00 crores. Release of Grant The grant-in-aid will be admissible for payment only after the private investor has paid his share fully as per the following schedule: • 1st installment of 25% of the total grant under the scheme will be released after ensuring that 25% of the promoter’s contribution and 25% of the term loan has been spent on the project.

Grant from MINISTRY OF FOOD PROCESSING INDUSTRIES (MoFPI) in Cold Chain Industry The objective of the scheme of Cold Chain, Value Addition and Preservation Infrastructure is to provide integrated cold chain and preservation infrastructure facilities without any break from the farm gate to the consumer. It covers pre-cooling facilities at production sites, reefer vans, mobile cooling units as well as value addition centres which include infrastructural facilities like Processing/ Multi-line Processing/ Collection Centres, etc. for horticulture, organic produce, marine, dairy, meat and poultry etc. Individual, Groups of Entrepreneurs, Cooperative Societies, Self Help Groups(SHGs), Farmers Producer Organisations (FPOs), NGOs, Central/ State PSUs etc. with business interest in Cold Chain solutions are eligible to set up integrated cold chain and preservation infrastructure and avail grant under the Scheme.

• Minimal Processing Centre at the farm level and centres is to have facilities for weighing , sorting, grading, waxing, packing, pre-cooling, Controlled Atmosphere (CA) / Modified Atmosphere (MA) cold storage, normal storage and Individual Quick Freezing (IQF). • Mobile pre-cooling vans and reefer trucks. • Distribution hubs with multi product and multi CA/MA chambers, cold storage/ variable humidity chambers, packing facility, Cleaning In Process (CIP) fog treatment, Individual Quick Freezing (IQF), and blast freezing. • Irradiation facility

With a view to promote investment in Cold Chain, Department of Economic Affairs, Ministry of Finance has covered Cold Chain under Infrastructure category. Projects Components:The scheme aims to facilitate the establishment of a strong cold chain for agricultural, horticultural, dairy, fish

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• 2nd installment of another 50% of the total grant under the scheme will be released after ensuring that utilization of first installment of grant and 75% of promoter’s contribution & 75% of term loan has been spent on project. Utilization certificate of the first installment shall be submitted by the promoter at the time of making claim for the second installment. • 3rd and final installment of remaining 25% of the grant assistance will be released after ensuring that the utilization of the second installment and 100% of promoters and 100% of term loan has been investing share on the project and the project has achieved completion & commercial operation has started. Utilization certificate of the second installment shall be submitted by the promoter at the time of making claim for the 3rd and final installment. A few of the approved dairy sector proposals are:-

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Starters and Phage Management

he recent opening up of regulations by the FSSAI has provided a much needed impetus to the innovation Karuna Jayakrishna, in the dairySenior Application Specialist, DuPont Nutrition & Health, South Asia drinks space. As milk-solid prices slump globally, manufacturers are looking at value addition in dairy as a way to get better returns. Over the last year manufacturers have formulated innovative products ranging from milk-shakes, smoothies to probiotic curd, Greek yoghurts and curdbased low-fat dips. This is indeed a new beginning for the Indian dairy industry since this would mean capital investments for capacity expansions and infrastructure up-grade and a boost to milk handling by organized sector. The fermented dairy-products market in India is particularly advancing at a tremendous pace. The main drivers for these include perception of these products by the consumers as local and healthier, the ease with these products can be manufactured and the less sensitivity of consumers towards price –rise of these products. The industrially manufactured products in this space include Dahi, mistidoi, yoghurts with and without fruits, ripened-cheese etc. However, as more and more manufacturers expand their operations in the fermented dairy products space it is important to design control tools for mitigating some of the associated-risks for large-scale production of fermented dairy-products. Bacteriophages are today believed to be the most frequent source of fermentation problems. The objective of this paper is to share the knowledge of bacteriophage management systems and sharing best practices to support performance of starter cultures. Bacteriophages “Bacteriophages” or “phages” can simply be described as viruses that infect bacteria. Bacteriophages are able to multiply only when in contact with growing bacteria.They are mainly made of proteins (head and tail) and the phage head contains genetic material. Their structure makes them very robust and difficult to eliminate. They are very small (almost 10 times smaller than bacteria)

and therefore not visible to the eye or in a normal microscope. Bacteriophages are normally between 20 and 200 nanometers in size and multiply very quickly; one phage can multiply to 10 million in number during a dairy fermentation. In short bacteriophages can be characterized by

• Fast reproduction ( burst size up to 200) • Very specific to host • pH tolerant- easily survives longer periods in cleaning liquids • High resistance to heat and chemical compounds • Fast adaptation to changes of host due to mutations • Can be dormant but infectious for years A bacteriophage infection is initiated by the phage first adhering to the cell surface; one or more bacteriophages can infect a single bacterium and inject their DNA in to the host cell enabling it to use the cellular machinery to its advantage for reproduction. The reproducing phages reach a critical number (burst size) causing the host cell wall to rupture, thus releasing the bacteriophages in the surrounding medium. Bacteriophages are present in all dairy environments and cannot be eradicated. all efforts should be used in order to reach an acceptable level of bacteriophages through optimized cleaning/ disinfection procedures as well as optimal hygienic design of equipment and pipes/valves arrangement. BACTERIOPHAGE CONTROL 1: Below elements are the backbones of an

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effective phage control system: • Cleaning and disinfection with focus on 8 Log cycle reduction of phageseveryday • Direct cultures with good and updated phage resistance- in well-defined rotation systems • Monitoring of phage levels based on a simple acidification test combined with frequent external analysis- to be based on HACCP principles • Hygienic design of processing equipment combined with phage relevant- GMP Cleaning & Disinfection- 8 LOG reductions Bacteriophages are much more resistant to both chemicals and high temperatures than bacteria and yeast/molds. Below guidelines must be used in order to ensure efficient cleaning and disinfection: Cleaning procedure for fermentation vats and all piping, valves and other equipments

1. Flush with water 2. Lye (2% NaOH), 70-90 deg C for min 20 mins 3. Flush with water 4. Acid (0.5% HNO3), 60-70 deg C for minimum 10 mins

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5. Final flush with fresh water In case of high water hardness, a combined cleaning agent can be used for lye cleaning. Acid cleaning has dual purpose- milk stone/ deposit removal and stainless steel surface maintenance (protection against corrosion). It should also be noted that phages in general are inactivated by 10 minutes of treatment below pH 2 or above pH 12 during cleaning or in cleaning detergents. Disinfection should be done after each cleaning. An additional disinfection prior to production start would be optimal in case of phage issues. An optimal disinfection would consist of a chemical disinfection after cleaning and hot water disinfection prior to production start. Below disinfectants are effective against bacteriophages. Concentrations, temperatures and times are quoted for approximately 8 log reductions of phage levels: Direct Cultures in a Rotation System Bulk starters are a real bacteriophage risk due to the additional growth cycle inside the dairy plant wherein the culture can be infected with phages. And bacteriophages are often found in bulk starters, and a phage infected bulk starter creates variation in acidification speed and other related parameters. Cultures for direct Vat inoculation (DVI) only need one growth cycle in production, which means that the phage will have less opportunity to multiply into a population that can cause complete failure of fermentation. Hence a shift from bulk starter to DVI culture can then decrease the phage pressure and make an effective rotation system possible. Hence, the use of cultures for DVI, rather than mother and bulk starters, reduces the risk of phage infection. DVI cultures offer protection especially at dairy plants that lack the resource, skills or equipment for producing bacteriopahage- free bulk starter. In recent years, more and more dairies are opting for DVI cultures as their primary source of Dahi and yoghurt

making. Phage alternatives and CRISPR mediated phage resistance A culture normally consist of few selected strains of same lysotype (phage group)- a typical yoghurt culture can consist of 2-4 types of S. thermophilus combining speed and texture properties and then a Lb. delbrueckii bulgaricus. A classic phage alternate would then consist of S. thermophilus of another lysotype. Modern starter cultures from DuPont have in many cases been immunized against a wide range of known phages. In this type of immunization, starter strains memorize different type of phage that these strains have encountered in the past. This memorization is possible as the starter strains can acquire fragments of bacteriophage from the environment, which are incorporated in what often is referred to as the CRISPR region. Once incorporated, the fragments act as memory chips, which the bacteria can use to quickly identify an attacking phage, which has been encountered in the past. This will allow the starter strain to quickly activate a range of defence mechanisms to prevent a severe phage infection. The advantage of this technology is that it reduces the need for phage alternatives, which use starter strains with different lysotypes. A rotation system for cultures should be individually designed as follows: • Define, test and approve a phage alternative to the preferred culture. It might not always be fully iso- functional, but acceptable variations can occur in relation to fermentation speed, texture, flavor etc • Use the preferred culture as long as the phage pressure can be actively maintained on low level • 3 weeks or longer between rotations gives the most efficient system in relation to reduction of phages for the preferred culture. In case of constant medium- high levels of phages, a design with continuous rotation should be established with 2-3 cultures. The constant and medium/ high level of phages is a clear indication of poor hygienic design of the processing

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33 facilities and/ or lack of appropriate cleaning, disinfection and GMP. It should be noted that that it can take from 3-4 days, before the airborne bacteriophages related to a specific culture have settled out after the rotation of the culture. So air and surface disinfection routines should be considered. Hygienic Design of plant and equipment The optimal design of the fermentation areas (bulk starter tanks, fermentation tanks, filling machines etc) with regard to hygienic aspects should consider the great risk of aerosols and product residues as main vectors in relation to phage infections. Plant Design 2: Below standards can be used as guideline to ensure better phage control: • Airflow should follow product flow • Separate fermentation rooms • No raw milk handling in same room • Separate CIP unit • Change of dress and foot wear for factory and maintenance personnel •HEPA filters- minimum 99.97% removal of 0.3 micrometer particles above fermentation tanks and room • Keep source of ventilation air free of bacteriophage from the dairy plant ( air exhausts from ventilation vs intake of fresh air vs typical wind direction) • Keep source of compressed air free of bacteriophages as well- compressed air not dried properly might even multiply the phage problem due to bacteriological growth inside compressed air system • Hygienic tank design • Keep windows, doors, and gates closed Also the materials used for floor, walls and ceiling have to be washable, so that any product residues can be removed by frequent cleaning. The sanitation can be done by fogging with a disinfectant aerosol for 30-60 min followed by a throughout ventilation before humans and products enter the room again. As time and wear creates broken gaskets, pin holes in tanks and small cracks in pipes etc, it is highly recommended to make an equipment inspection plan, as these faults can render proper cleaning and sanitations impossible. Monitoring A simple, but effective monitoring system can be established based on the acidification test done at dairy level combined with a more comprehensive test done at DuPont’s phage laboratories. Contd on. Pg 76

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WORLD MILK DAY 1st June 2017

hy do we have a ‘Milk Day’? In 2001, the Food and Agriculture Organization (FAO) of the United Nations selected June 1 as World Milk Day, which celebrates the important contributions of the dairy sector to sustainability, economic development, livelihoods and nutrition. World milk day history: World Milk Day was first celebrated 17 years back in 2001, with the help of Food and Agriculture Organization (FAO) of the United Nations all across the world by the participation of many countries. The number of participating countries in the celebration is increasing every year.

Since then, it is celebrated globally every year focusing to publicize the activities related to the milk and milk industries. This celebration has been nationalized by organizing programs related activities on national and international level. It is celebrated to increase the public awareness about the importance of milk and milk products for everyone throughout the whole life. Cow’s milk was first drunk by humans 10,000 years ago in what is now Afghanistan and Iran. By 3000 B.C., Ancient Egyptians were large dairy consumers, and recorded their dairy farming on temple walls. This day is especially organize : • To create public awareness of

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natural milk such as its origin, its early consumption, milk source and various milk products including its economic importance throughout the globe. • Also, to make people aware of the importance of milk consumption by children, younger generation, adults and by senior citizens. Health related problems and benefits of drinking milk. Many countries like Malaysia, Colombia, Romania, Germany, United Arab Emirates, USA etc including India have starting celebrating the WORLD MILK DAY with participation of various consumers and employees from dairy industries.

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a reduced risk of cardiovascular disease and type 2 diabetes, and with lower blood pressure in adults.

Milk is focused as the global food throughout the celebration of world milk day. Varieties of promotional activities (describing the importance of milk as a healthy and balanced diet) are launched by the International Dairy Federation on its website online. Various members of the health organizations take part in the celebration to work together in order to distribute the message of milk importance to the common public through the promotional activities all through the day. World Milk Day celebration has impacted large population to understand them the reality of milk. As milk is an important food for everyone and must to add in the balanced diet on daily basis. Milk is great source of all the healthy nutrients required by the body (calcium, magnesium, zinc, phosphorus, iodine, iron, potassium, folates, vitamin A, vitamin D, riboflavin, vitamin B12, protein, healthy fat) etc. It is very energetic diet that provides instant energy to the body as it contains high quality proteins including both essential and non-essential amino acids and fatty acids. Intake of dairy products is linked to improved bone health, and may reduce the risk of osteoporosis. The intake of dairy products is especially important to bone health during childhood and adolescence, when bone mass is being built. Intake of dairy products is also associated with

On a country basis, after India, the US produces the most milk, and China comes in third. This represents a sustained growth in availability of milk and milk products for the growing population in India. Dairying has become an important source of income for millions of rural households engaged in agriculture. This increased consumption of dairy products is also playing a vital role in improving child nutrition and boosting the livelihoods of smallholder farmers across the region, as they are the source of production for the vast amount of milk and dairy products that we consume. One of the main reasons, India is the highest producer of milk, is that it imports a lot of European cows and cross-breeds them with local varieties. But the most crucial reason is that India has had a successful decades-long programme to source milk from small farmers through cooperatives. One of the prime examples is AMUL. AMUL and Operation Flood: Operation Flood is the program behind “the white revolution.” It created a national milk grid which linked milk producers throughout India with consumers in over 700 towns and cities. It’s worth noting that the majority of Indian milk comes from buffaloes, not cows (the US is still the number one cow-milk-producing country in the world). Variety of activities related to the theme of the celebration were organized by the NGO, private and government health organizations including screen consumer education project of milk by SAMPRO (South African Milk Processors’ Organization), and communication programs aiming to target markets to promote milk health and nutritional advantages. Press releases, articles, news were

35 published to highlight the nutritional health benefits of the milk among consumers. Free milk distribution camps were organized on national level engaging the local celebrities to distribute the free milk packets among children. It was also celebrated by the National Dairy Council online through many activities. Various other programs like discussion, quiz competitions, sports activities, essay writing and etc are organized in the schools, colleges, universities and other educational institutions to encourage students. We want World Milk Day to be known around the world and for people to see the creativity of World Milk Day organizers by having access to live and recorded images of all the events taking place around the world. World Milk Day will build in particular on social media to make sure that all events are shared widely and sometimes live or with little delay. Coordinating with the Global Dairy Platform is essential to make sure that we can continue the momentum throughout 2017 - and beyond! World Milk Day Themes The theme of world milk day 2012 was “Drink Fresh Milk, Body Fit, Smart Brain”. The theme of world milk day 2013 was “Milk for Health and Prosperity of Southeast Asian region”. The theme of world milk day 2014 was “Milk is the First Food for Human” and “World Class Nutrition”. The theme of world milk day 2015 was “Milk is the First Food for Human”. The theme of world milk day 2016 was “Think Milk, Drink Milk”. The theme of world milk day 2017 is “Nutrition”.

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continuing to maintain its certifications and accreditations. The facility is also equipped with an accredited FIBC testing laboratory. Logistics, however, some FIBCs require further design innovation improvements due to their tendency to lean or expand beyond the pallet dimensions.

BULK Shipping A critical link in the powder supply chain is bulk containers, according to Liz Prosser, Marketing Manager for Bulk Lift International

rotecting bulk products from sources of contamination, while also storing and transporting the products safely and efficiently, is a common concern among dairy manufacturers. Having one component without the other is not enough to keep members from both the quality and logistics team happy. Increased regulation and changes in industry standards are leading to a need for changes and improvements in order to adhere to new benchmarks. A critical component for storage and transport in the supply chain is the use of flexible intermediate bulk containers (FIBCs). Also known as bulk bags, FIBCs are widely used in the food industry to store and transport dry bulk powders.

level for its Clean Pack FIBC. The Clean Pack’s performance can be attributed to the manufacturing and design process changes that were introduced by the quality control team members. In addition, the sewers responsible for assembling Clean Pack FIBCs have average employment tenure of eight years with the company. Bulk Lift recently relocated its flagship manufacturing site to a larger production facility in Mexico and is

An incorrectly sized or leaning FIBC can cause damage to the bag resulting in product loss. In 2013 Bulk Lift introduced the Stack- Pac M-Series FIBC, which addressed the propensity to lean, due to its unique octagonal shape and increased surface area, and also minimized the bloating of the filled FIBC without the use of internal corner baffles. Internal baffles, in the past, have been a potential source of contamination. One customer, a Fortune 500 global manufacturer, experienced a 20 per cent product capacity increase with the StackPac M-Series design versus the traditional FIBC it was previously using. In response to US Food Safety Management Act provisions, a unique identifier has also been added to the label of each FIBC for enhanced traceability via QR code scanning technology. What is a FIBC? • Flexible intermediate bulk containers, also known as ‘bulk bags’, were first manufactured sometime in the late 1950s or early 1960s. • Widely used to transport bulk amounts of dry powders. • Can be designed in a variety of styles, including open top and conical discharge. • Made from woven polypropylene or polypropylene fabric of different weights and strengths.

They provide an economical packaging solution, a high degree of safety and a myriad of logistical benefits. Checking production Bulk Lift International, a North American FIBC manufacturer, analyzed current designs and identified areas within the manufacturing process that may contribute to process-related contaminants inside the FIBC.

• Have a very low package to product weight ratio. A FIBC weighing 2-4 kg is commonly used to ship 1,000 kg of dry goods. • Bulklift has sold over 40 million bags worldwide. • Global FIBC market to grow at a CAGR of 7.3% over the period 2014-2019.

By changing the production process in a protected manufacturing environment, incorporating quality control procedures, and measuring the sigma level through a continuous improvement monitoring system, Bulk Lift achieved a 5+ sigma

Source: Bulklift, Infiniti Research, FIBCA

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37 and moving away from fake milks.” The processing of the milk alternatives can be off-putting, he says. “Soy, for example, has a huge impact on the environment – they clear acres of rainforest and it can be GMO and sprayed with pesticides. To make soy a palatable product, it has to be processed to within an inch of its life, and have things added to it to make it close to the texture of milk. From a nutritional perspective it’s not great, and that’s another reason for not opting for plant-based milks.“Vitamins are better absorbed by humans when the product is more natural, versus the synthetic products. It is a bit of a misnomer and people think it’s the healthier choice.” Branching out And, like the milk alternative market, a2 is branching out into areas such as infant nutrition and yogurts. “Our infant formula business is going to be brought to the UK in the future, and we're considering other dairy products such as yogurts,” Miller says. It’s a combination of consumer education and professional knowledge, he notes.

he increase in alternatives to dairy milk is growing. Worldwide sales of non-dairy milk alternatives have more than Rick Miller, Nutrition Manager, a2 milk doubled between 2009 and 2015, up to $21 billion (€19.5bn), according to Euromonitor. Interestingly, the original plant-based drink, soya, is seeing a decline in the US as consumers move on to other drinks such as rice, coconut, almond and cashew, the Financial Times reports. Meanwhile, the US per capita consumption of drinking milk fell by 13 per cent over the last five years, while in Europe it has dipped by 4.1 per cent. Rick Miller, Nutrition Manager at a2 Milk, says there are a number of reasons for this increase. “There has been a recent surge in fresh versions of these types of drinks. And the prevalence of food intolerance, awareness of gut health and interest in preventative medicine has risen

in the last 10-15 years. There has been a lot of focus on the quality of food and its impact on health. The awareness of food allergies has also been sparked by the ride of the rise of the internet, and people are willing to experiment. Dairy seems to be a focus of the trigger, and thus there has been a huge rise in the alternatives on the market.” Adding to milk However, Mintel also reports that of the consumers who consume non-dairy drinks, 90 per cent also consume cow’s milk. This is where branded milks and milks with a difference such as a2 may have the edge. “From the a2 milk perspective, we are returning to real dairy, which is a staple in the diet,” Miller says. “We’re seen as natural compared to alternatives. Making an alternative drink requires a lot of processing, while a2 milk is a natural product – there is no GMO, no added protein powder. It is just collecting milk from a different type of cow, and allows people to drink milk again. It takes people back to a nutritious product,

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“Awareness of the different types of proteins is a barrier, but we’re liaising with medical unions and have been working on research for the past three years. The trials show a clear difference for people with milk intolerance. But it takes a long time to change opinion and to educate doctors and other medical professionals. We have an outreach programme across the world. On the whole, people have heard of lactose intolerance, but not heard of allergies with milk proteins.” On the consumer side, the drive to inform also continues. “Our ad campaigns with various groups such as young families have had real traction, as they discover that a2 milk makes a difference, and we’ve had really positive feedback in our small trials,” Miller concludes.

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The rebirth of full fat dairy

It was a nutritional orthodoxy that, in the opinion of many researchers, such as Dr. Ludwig:

Consumers have made up their own minds and are losing their fear of fat

• identified animal fats as the biggest negative in the modern diet, • produced dietary guidelines which pushed consumers toward higher carbohydrate diets, • compelled the food and beverage business to develop and market low fat products, • arguably contributed significantly to our current obesity and other diet-related problems.

It would have been unimaginable 10 years ago: Unilever wants to get out of the polyunsaturated spreads business and sell brands worth $3 billion Julian Mellentin (€2.8 billion) in retail Director Centre for Food & sales. The reason? Sales Health Studies are falling down 8% a year in the US and more in other markets and there’s nothing Unilever can do to pull them back. It’s a perfect case of how powerless companies are in the face of a big trend and the trend in this case is the rehabilitation of dairy fat. Putting aside the scientific arguments about dairy fat, what’s more important is the consumer has made up their own mind and starting with the most health aware consumers, the most educated and the young they are losing their fear of fat. Armed with phones and other mobile devices, people are able to access more information about nutrition than ever before, and they are learning to be more discerning in the data sources they go to. People who have learned to be suspicious of the questionable advice dispensed by some nutritional experts in the past are taking back control, doing their own research and making their own decisions. Consider the following: In 2016 in the US: • sales of whole milk grew 4.6% • sales of skim milk fell 12.6% (an acceleration

of the 3% decline of 2015) • Sales of butter increased by 8%. The Kerrygold brand, marketed by Ornua, (formerly the Irish Dairy Board) was the biggest winner from the trend, with its US sales up by 49% to more than $84 million (€79 million) • Noosa Australian-style yogurt a range launched in 2010 which offers only full fat yogurt reached over $100 million (€94 million) in retail sales. Other “whole milk” yogurt brands are proliferating and they are one of the few growth spots in a US yogurt market where growth has stalled. In Australia: • Full-fat milk sales grew by 9% in 2016 while low-fat milk sales slipped. • Demand for dairy fat has resulted in prices increasing from $3,000 a tonne in mid-2016 to up to $5,000 a tonne now. In Sweden, recent statistics from The Swedish National Board of Health and Welfare show that Swedish butter consumption grew by almost 200% between 2005 and 2012 while the incidence of heart attacks in Sweden continued to fall, for men and women. Swedes cardiovascular health continued to improve despite eating more and more butter (see chart). The outdated claim that dramatically increased butter consumption would also increase the incidence of heart disease is once again crushed by reality. Butter’s simple ingredient list appeals strongly to people’s desire for foods that are as natural as possible. Many millen nials are astounded to learn that butter is made from just cream and salt, while margarine, which their parents grew up regarding as healthier, seems like it’s made from a chemistry set. It’s a seismic shift that 10 years ago was unimaginable. The rehabilitation of fat represents the end of what Dr. David Ludwig of Harvard Medical School has called “the largest public health experiment in history.”

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But almost every month the body of scientific evidence grows that shows that the research on which the low-fat hypothesis was based was incomplete and in many cases even used data selectively(1). By 2010, doubts about the low-fat hypothesis were gaining momentum as more and more studies uncovered no health improvements from reducing saturated fat in the diet (University of Cambridge), and no association between coronary risk and the level of saturated fats in the diet or the bloodstream (Harvard School of Public Health). In fact, it is beginning to look as if saturated fat not only does no harm to cardiovascular health, some types may have benefits(2). The science around whole milk dairy products has evolved to the point where it is clear whole milk dairy products don’t cause heart disease. One study(3) looked at dairy consumption of more than 20,000 and found “No association between milk intake and cardiovascular risk”. For European companies, the move back to full fat will be more challenging since most European regulators and health professionals are still struggling to let go of a negative view about dairy fat that never had any basis in science. Low-fat dairy is not going to go away as people over 50 might be reluctant to give up the ‘low-fat-is-best beliefs’ that they grew up with but low-fat dairy’s share of the market, and particularly the premium market, will continue to decline around the world as people are rediscovering the naturalness, pleasure and culinary usefulness of full-fat dairy. The biggest successes in food and health over the last 20 years have come from

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The Ceylon Chamber Forms the “Dairy Association for Sri Lanka”

he CCC was founded in the year 1839, and is the oldest business Chamber in the Indian Ocean Island of Sri Lanka. The prime focus was to serve the plantation industry, which was the dominant source of the commercial activities of Sri Lanka. Over a period of years, CCC played a catalytic role in the development of the business sector, changed its focus on identifying key issues to assist in the development of strategic plans to meet new challenges and opportunities. Moreover, CCC has the unique feature of Confederation of Chambers of Commerce and Industry, TRADE Associations, Regional Chambers, Employer Organizations and Bilateral Business Councils in Sri Lanka. Sri Lanka is largely self-sufficient in most animal products- apart from dairy. Sri Lanka is about 15-20 percent selfsufficient with its milk products, though that level has been achieved mostly with imported milk powder. Dairy sector is one of the important sectors of the national economy that has high potential for improving the livelihood and income levels of poorer segments in the society whilst fulfilling the nutritional requirements of the population. Currently, Sri Lanka imports approximately 70% of its dairy products requirements spending considerable foreign exchange. Successive governments have embarked on various initiatives to increase local production with the objective of reaching self-sufficiency in milk production. Though the private sector is actively involved in all levels of the dairy value chain, there is no active organised trade body to work closely with the public sector organisations to achieve this goal. In order to fulfil this long felt need, at the request of leading industry stakeholders, products marketed for their “naturally healthy” credentials. As science advances and the negatives about dairy fat are eroded and consumers increasingly ignore the scientifically out of touch health experts and make better informed choices in the supermarket then dairy will retake its position as nature’s health food. For companies willing to invest in their full-fat portfolio, the future is bright. References

the Ceylon Chamber of Commerce has taken the initiative to form the Dairy Association of Sri Lanka to facilitate the sector to deliberate on matters of relevance, reach consensus and lobby their issues and concerns with policy makers for upliftment of Sri Lanka’s dairy industry. The main objective of the Association is to serve as the central forum for consensus building amongst different stakeholders within the dairy industry and to promote the local dairy industry to make it more competitive in the market place. The membership of the Association will comprise individuals or firms engaged in farming, producing, processing, importing of dairy products and providing associated services. 15 leading companies representing above sub sectors of the dairy industry have already joined the association, while many other companies have shown their keen interest in enrolling as members. The formation of The Dairy Association of Sri Lanka took place on 22 February at the Board Room of the Ceylon Chamber of Commerce officiated by Dhara Wijayatilake, CEO of the Chamber with the participation of 15 founder members. At the first meeting of the Association, the Constitution of the Association was unanimously adopted by the members present and following were elected as members of the Executive Committee, the key decision making body of the Association. Richlife Dairies Ltd. Nishantha (1) Re-evaluation of the traditional diet-heart hypothesis: analysis of recovered data from Minnesota Coronary Experiment (1968-73), BMJ 2016; 353 doi: http://dx.doi.org/10.1136/bmj. i1246 (Published 12 April 2016) (2) Association between Dairy Food Consumption and Risk of Myocardial Infarction in Women Differs by Type of Dairy Food; researchers Patterson, Larsson, Wolk, Akesson, Institute of Environmental Medicine, Karolinska

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Jayasooriya (CEO & President); Watawala Dairy Ltd. Binesh Pananwala(CEO); Fonterra Brands Lanka Ltd. Janaka Gallage (Director Finance); Milco Ltd. Kumara Jayarathna (Manager Quality Assurance, Research and Development); and Hayleys Agriculture Holdings Ltd. Dr. Susantha Mallawa Arachchi (General Manager Animal Health) were the elected Vice Presidents of the newly formed Association. Ceylon Cold Stores PLC Head of Procurement Wasantha Malwattege (treasurer), CIC Dairies Ltd. General Manager Production Amal Chandana, Hypromac Engineering Services Proprietor Gamini Rajapaksha and Maliban Milk Products Ltd. Management Consultant Asoka Bandara will function as the Executive Committee members. The new Executive Committee agreed on the need to identify the issues facing the dairy industry and focus on addressing a few key issues as a priority during it's first year of operation. The Association will obtain inputs of members of the Association and all relevant stakeholders in formulating an action plan for development of the dairy industry within a short period. After formulating the action plan, the Association will engage the relevant government authorities and to solicit their support for successful implementation of the action plan. The Association envisages making a concerted effort to develop the Sri Lanka dairy industry for the betterment of all stakeholders in the industry and expects to get all stakeholders in the dairy industry to rally round the Association making it a truly representative trade body for the dairy industry.

Institut, Stockholm, Journal of Nutrition, November 2012. (3) Caren E Smith et al, Associations of the MCM6-rs3754686 proxy for milk intake in Mediterranean and American populations with cardiovascular biomarkers, disease and mortality: Mendelian randomization. Scientific Reports, 2016; 6: 33188 DOI: 10.1038/ srep33188. Source: www.dairyindustries.com

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Grass-fed Dairy -An Expanding Market

onsumers are now starting to look for “grassfed” dairy, following exponential growth in the 100% grass-fed beef sector.

Marie Burcham Farm & Food Policy Analyst The Cornucopia Institute Lewis & Clark Law School Portland, Oregon

So what’s the difference between grass-fed dairy and conventional dairy, and why do consumers care? Cattle, along with sheep and goats, are ruminants, meaning they evolved to eat and subsist on green forage. Conventional agriculture relies on feeding ruminants things they are not meant to eat—grain, soy, and food by-products—to meet the energy needs demanded by cows being pushed for high production. In contrast, organic dairies must pasture their animals during the grazing season. There is a minimum standard required for the amount of graze dairy animals must access if their products are certified organic.

All organic dairy is technically grassfed, but not likely 100% grass-fed. It’s important to know the difference between these two designations, because an animal’s diet affects the milk nutrition, as well as livestock health and well-being. The regulation of the terms “grass-fed” and “100% grass-fed” are not well defined at this point. In January of 2016, the United States Department of Agriculture (USDA) withdrew their previous “grass-fed” and “forage-fed” marketing verification claims for ruminant livestock and their meat products. That change should have no impact on a producer’s ability to apply to the USDA’s Food Safety Inspection Service for a grass-fed claim on their label. However, while marketers cannot perpetuate misinformation in their labelling, consumer understanding of these terms can be a moving target. While dairy products labelled “grass-fed” clearly must have received some grass in their diet, they may still be consuming

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significant amounts of grain and other feed. This is why all organic dairy is considered grass-fed. The alternative, “100% grass-fed,” means the dairy animal received a diet composed entirely of forage (green-growing pasture and stored forage, such as hay). Third-party certifications for grass-fed dairy products are gaining prominence and can give consumers some insight into products while shopping. Third-party certifications all have different standards. These include labels like Certified Grassfed by A Greener World (a program started by Animal Welfare Approved), the American Grassfed Association, and Pennsylvania Certified Organic (which has a 100% Grassfed Organic certification). Some organic certifiers also certify grass-fed operations. There are many benefits to dairy products sourced from 100% grass-fed animals. First, those ruminant livestock get the most natural diet possible, grazing on fresh pasture during the grazing season and usually eating stored forage (such as hay) during the non-grazing season. Because of their diets, these cows are least likely to be found in intensive confinement. Instead, they live outside in social environments. The grass-based

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diet itself makes the livestock healthier, requiring less intervention with drugs or other health remedies. Overall, this management provides many benefits for animal welfare. There is a growing body of evidence showing that dairy from 100% grassbased operations have superior health benefits compared to their grain-fed counterparts. Milk can be a good source of beneficial omega-3 fatty acids if the livestock are allowed to graze on pasture for all, or the majority of, their diet. Another health benefit associated with grass-fed dairy products in particular is the high ratio of Conjugated Linoleic Acids (CLAs). There is some scientific evidence that CLAs may help prevent cancer, acting as potent antioxidants and enhancing immune system function. Like the higher ratio of omega-3s, CLAs are only present in high levels when a dairy animal gets most or all of its diet from fresh-growing grass. Despite the benefits of grass-based dairying, it is still important for consumers to know their product suppliers. Buyers should be aware of a grass-fed label that does not take into account how grazing practices impact the environment. A grassfed label reflects what animals are fed and doesnâ&#x20AC;&#x2122;t necessarily distinguish whether the milk product was produced on well-managed, environmentally friendly farms that are not overgrazed.

41 successful 100% grass-fed dairy operation due to the high-energy demands of pregnancy and lactation, consumer demand is fuelling this market. Many skilled practitioners are stepping up to the plate to meet that demand!

counterparts. That loss of revenue may be offset by lower operating and feed costs, as well as an added revenue stream from being able to sell a greater number of young calves (since their cows live longer, they need fewer in their operation), but it still can place producers on a thin profit margin. However, financial benefits for marketers selling 100% grass-fed milk products are creating incentives for farmers to innovate. While it can be difficult to run a

Choosing dairy products that are both organic and 100% grass-fed should ameliorate concerns of sustainability; improving soils and water quality, while maintaining biodiversity, are all defining principles of organic agriculture. Despite the perceived animal welfare and health benefits associated with 100% grass-fed dairy products, the niche market has grown more slowly than the 100% grass-fed meat industry. It is difficult to have an entirely forage-based dairy. These dairy farmers depend on climates where good grass grows naturally and on livestock breeds that thrive on all-grass diets. The energy demands of lactation result in grassbased farmers producing much less milk per animal than their grain-fed

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There is a lot to look forward to in this growing niche market. Many of the top brands highlighted in The Cornucopia Instituteâ&#x20AC;&#x2122;s soon-to-bereleased organic dairy scorecard sell dairy products from 100% grass-fed cows. The updated dairy report will go into detail about the benefits and challenges of 100% grass-fed dairying. There is no doubt that the growing popularity and availability of these products within the organic industry is something consumers can look forward to. Source: www.cornucopia.com

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Where

the smart money is! Q. What geographical areas do you expect to see the most growth in production in 2017? US farmers have continued to grow Kevin Bellamy throughout the Global Dairy Industry Strategist contraction of Agricultural and Food Bank Rabobank, The Netherlands. output seen around the rest of the world. Supply in January 2017 was up 2.5 per cent on the previous year and strong US domestic demand is maintaining farm gate prices above the costs of production. While animal numbers are up, most of the increase comes from increased yields helped by a (so far) mild winter. While growth will not be uniform (California will continue to contract and midwest production will expand), overall, we expect continued supply growth from the US in 2017. The 2016/17 season in Europe has so far seen prices rise above break-even point for most farmers. While many expect output to rise rapidly, there are significant headwinds. In the UK and Ireland, the uncertainties caused by Brexit will delay or cancel any new investments, environmental constraints including the Dutch phosphate limits will limit animal numbers, lower animal numbers in many regions is due to culling last year, the after effects of the Commission’s subsidies to reduce production and a more cautious approach from dairy companies wanting to avoid overproduction will all suppress the urge to rapidly increase production as happened in 2014. Latin American farmers have had a very bad time in the last couple of years. The economic situation in both Brazil and Argentina led to increasing costs of production and deflated both demand and production falling in double digit percentages. In Brazil, the improving economic situation will stop the decline in 2017 and may lead to slight production growth, but in Argentina the situation is much worse and further declines are expected as farmers continue to leave the industry. Low profitability in Australia and the fallout from Murray Gouldburn Cooperatives price reductions

hit farmers hard. They will finish the 2016/17 season around six per cent down on last year. Although prices have risen, they are unlikely to rise to levels that incentivize a big turnaround in farmer sentiment in the closed season and an increase in cattle exports means that the next season may also see depressed output. New Zealand has also had a poor 2016/17 season with a very wet start for the north island. While things didn’t turn out as bad as originally thought, the season is still 2.6 per cent (May-January) behind last year and will be unlikely to catch up in the final months. Later in the year the New Zealand farmers (after several loss making seasons), assuming favourable weather and continued favourable pricing are likely to recover lost ground. Finally, in China a period of climate issues (hot weather), reduced buying and low international prices for competition, meant that production from Chinese farms reduced. Higher domestic prices and renewed demand growth from Chinese buyers will start to reverse that and we will see a renewed interest in dairy production, albeit not at a fast enough rate to cancel import growth this year. Q. What about Africa? What countries do you expect to be top performers there? It is best to split Africa into three regions; North Africa and the Middle East, West Africa and East Africa. North Africa/ Middle East states like Algeria, Libya and Egypt are significant consumers of dairy products, but production is difficult

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due to the arid climate and most dairy is imported. In West Africa states such as Nigeria, Ghana and Cote d’Ivoire production is also challenging and most supply has been via imported powders. In both regions, low oil prices have

damaged demand in recent years and affordability is the key issue. In East Africa, states such as Ethiopia, Kenya, Tanzania, Uganda, Rwanda and Zambia (particularly members of the East African Congress) all have higher tariff barriers to encourage local production and the climate, particularly in the highlands, is well suited for dairy production. Most have strong population growth driving demand and will continue to increase milk production in the coming years. Q. What do you think is the key issue for African countries? The regions (north, west and east) are very different but all suffer from affordability issues. Dairy is still an expensive option for most African consumers. This has been further exacerbated by the strength of the US dollar against African currencies and the low oil prices received by exporting countries. Consumption is low compared to Western statistics (5-10 litres per capita per year in the west and 20-40 litres a year in the east) but much of the market remains informal. As African economies develop further, population growth and urbanisation will continue. This will drive the need for more formal supply chains, which in turn will drive production and imports. Q. What do you think of recent price increases in Europe? Prices have risen due to a rapid fall in exportable surpluses for global trade. At the same time, demand continued to grow in the US and China, having

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worked through stocks, has returned to the market. We are also seeing good demand growth from southeast Asia. But there are significant headwinds. The current commodity price increases will lessen demand. The strong US dollar against many currencies has forced up the price of dairy products in local currency terms and again stifled demand (and the US dollar is likely to strengthen further as a result of interest rate hikes and government investment). Low oil prices are continuing to reduce buying from oil exporting countries. Unless supply rises rapidly there is no large downward pressure on prices. But at the same time the headwind will deter any further increases – the best guess is we may plateau for a while in the first half of 2017, with the second half dependent on the success of the start of the new New Zealand season. Q. What will the re-entry of China onto the world markets mean? China has become very influential in setting Oceania prices. Exposed companies in both New Zealand and Australia strive to mitigate the risks caused by fluctuating Chinese demand.

It’s likely that New Zealand farmers will bounce back at the start of the 2017/18 season after three very difficult seasons on the trot where they have successfully cut costs to survive. Australian farmers will likely take more time to recover growth as structural issues in the market need to be addressed. Q. What countries will benefit from poorer Chinese production? New Zealand and Australian powders trade on the Global Dairy Trade platform at a premium from supplies from elsewhere in the world showing a preference from Chinese buyers. As more supply has become available from New Zealand in January, we have seen prices in that market moderate, proving the link. Exports from the US have faced strong headwinds due to the strong dollar but exports have increased, so there is definitely some ‘gap filling’ occurring. Q. What insights can you provide on the US export market? The US dollar has remained strong, even given the relatively chaotic policy agenda of the new administration. The US Federal Bank puts a strong case for interest rate increases and the market still

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43 expects investment in US infrastructure, requiring government borrowing, both of which may further strengthen the currency. This should increase imports, particularly of products such as specialist cheese. However, there are still tariff barriers to be overcome, there are still SPS (non-tariff barrier issues) to be overcome, and distribution is a key issue. Getting the cheese to a port is easy, but getting it through a distributor, to a retailer and into stores can be much more difficult. US export market will continue to grow as long as there is a shortage of milk on the world market. But other sources will be cheaper if supply is available. Around 39 per cent of US exports head south to Mexico, so interruption of Mexican trade by tariff barriers, and the tightening of immigration expelling semi-legal farm workers will make things difficult for US dairy players. Add to this the withdrawal from the Trans-Pacific Partnership and the unlikely progress of the Transatlantic Trade and Investment Partnership and, despite growth of production for export in recent years, the US dairy industry exporters will face a more challenging time. Source: www.dairyindustries.com

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Milk Mantra-NSDC organizes learning program for dairy farmers

ilk Mantra along with LabourNet, a National Skill Development Corporation (NSDC) partnered and recently organised a three-day Prior Learning Program under Prime Minister Kaushal Vikash Yojana (PMKVY) for its network farmers in Odisha. This partnership was facilitated by OUAT in their objective to involve private companies who work for sustainable eco development of rural communities. This learning program was organized at Tinitiara village of Gop area where at least 400 farmers were educated on

healthy dairy farming practices for enhanced productivity and profitability. MD & CEO, Milk Mantra, Srikumar Misra said, “We have been conducting such programmes to build the rural ecosystem with our network farmers as part of our EMS extension services since the beginning of Milk Mantra 5 years ago, and it is encouraging to see

the government has also started seeing the importance of training the dairy farmers and helping them sustain a better livelihood. We believe that this association with PMKVY will add value to our efforts and will continue to develop skill of our farmers. We have plans to train as many as 14000 network farmers in one year time.”

Heritage Foods Ltd. in JV with a European dairy firm

eritage Foods Limited (HFL) said it is in the process of entering a Joint Venture (JV) with a European dairy firm for manufacturing and marketing yogurt in India. Executive Director of Heritage Foods, Brahmani Nara said the company aims to achieve USD one billion in the next five years from now. Heritage clocked Rs. 2380 crore revenue in FY 16. This year results are yet to be announced. Being the leading player in curd segment, the company shall launch diverse products in yogurt market, by associating with its international partner. In addition to this, the company will launch new products very soon in beverages segment. This will further strengthen the current large

portfolio of value added products. The negotiations are in the final stage with a European company and will be finalised in a month,” she said. Heritage Foods with presence in 15 states, intends to enter newer markets soon. It also has plans to set up five milk processing units across the country with an investment outlay of Rs. 150 crore. HFL currently handles 14 lakh litres of milk per day. The company along with its core business vertical of milk also aims to further enhance the contribution of value-added products from current 24 per cent to 40 per cent in the next five years. Heritage had already made inroads into western markets like Pune and Mumbai besides Northern market. The management is

confident of achieving these numbers by both organic and inorganic growth,” she added. As a part of inorganic expansion, the company had recently acquired dairy business of Reliance Retail making Heritage Foods a pan India player. Heritage Foods–a company promoted by the family members of Andhra Pradesh Chief Minister, N.Chandrababu Naidu manufactures and markets a full line of dairy products including fresh milk, curd, butter milk, lassi, ice-cream, paneer, butter, ghee, milk powder, flavoured milk, milk sweets and UHT milk and dairy whitener.

GCMMF aims for 20 per cent sales growth in FY18

ujarat Co-operative Milk Marketing Federation Ltd (GCMMF)is the giant that promotes the Amul brand of milk and dairy products. They expect 20 per cent sales growth in 2017-18, a company official said. The firm also had plans to invest Rs. 2,500 crore over the next three years to build new milk processing plants across states to enhance its processing capacities. The dairy firm aims to become India’s biggest FMCG company, surpassing Hindustan Unilever Ltd (HUL) by the end of 2018-19. Managing Director R.S. Sodhi said “we plan to grow 20 per cent in the current fiscal and we wish to be

the biggest FMCG company in India by 2018-19 crossing HUL. If we want to grow by 20 per cent, we must expand milk procurement from outside Gujarat. We procure about 200 lakh litres of milk per day. Of this, around 15 per cent of milk is being procured from outside Gujarat. There is a need to procure 13-14 per cent more milk to meet the growth target.” Apart from Gujarat, the firm collects milk from Rajasthan, Haryana, Uttar Pradesh, Punjab, West Bengal, and Maharashtra. It will start procuring from Bihar and Jharkhand as well. “We are working out to enter Tamil Nadu and Kerala,” he said. Sodhi said, “We invest about Rs. 800 crore every year for setting up new processing

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plants. We have planned to invest Rs. 2,500 crore to build up processing plants across states.” He also said the firm achieved a CAGR of 19 per cent in the last seven years because of higher milk procurement, continuous expansion in terms of adding new markets, launching of new products, and adding new milk processing capacities across India. Sodhi said, GCMMF plans to achieve a turnover of Rs. 50,000 crore by 2020-21. It also intends to enhance its milk processing capacity from the current level of 300 lakh litres per day to 380 lakh litres per day in the next three years.

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National News

Ultimate corrosion resistance: A4 stainless steel

hen it comes to corrosion resistance, stainless steel is the first choice. Therefore Elesa+Ganter has for many years offered standard parts in A2 grade and most recently also in the even more resistant A4 stainless steel grade. Food sector, pharmaceutical and medical sector, shipbuilding, and offshore constructions are the beneficiaries.

around 120 grades with different alloy proportions. While Elesa+Ganter has so far focused on the use of A2 grade, one of the market leaders in standard parts now offers selected products in the even more corrosion-resistant A4 variant specially intended for use in chloride-rich environment, for instance within reach of the sea. These include the matt shot-blasted handwheels GN 227.4, DIN 39 ball grips, drop-forged DIN 580 eyebolts and eye

Enhanced corrosion resistance has become an ever more important requirement in many different industries â&#x20AC;&#x201C; with stainless steel gaining in importance because the material not only safeguards hygiene standards, but also ensures a long service life, low or no maintenance and therefore makes for safe investments.

nuts DIN 582. The hinges GN 237, GN 128.2 and GN 129.2 are now available in A4 stainless steel, and so are cabinet "U" handles. (GN 425), star knobs (GN 5334.4), three-star handles (GN 5345.4), and one and two-armed clamp nuts (GN 99.6 and GN 99.8) as well as slotted and split set collars (GN 706.2 and GN 707.2). It is mainly the chrome, nickel and molybdenum constituents which lend the A4 austenite steel its high resistance against chloride and acids. All this makes Elesa-Ganterâ&#x20AC;&#x2DC;s A4 standard parts the ideal choice not only for use in shipbuilding or in the offshore industry, but also for the food sector, for pharmaceutical and medical applications or for swimming pool construction with its chlorinated water or water rich in minerals. A wide field, in other words. One reason Elesa+Ganter will gradually enlarge and expand its offer of standard parts in A4 stainless steel.

The Elesa+Ganter range of products has always featured many standard elements made of non-rusting steel. But stainless steel is not necessary the same as stainless steel: todayâ&#x20AC;&#x2122;s material compendiums list

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Dairies, aerated drink companies eye high-margin milk-based beverages

ndian dairies and aerated drink firms are increasingly entering into novel and Western-influenced milk-based beverages that offer significantly higher margins than traditional milk drinks. Leading Indian dairies Amul and Parag Milk Foods are among the frontrunners in launching nutritional and fruit-based milk beverages, an area where global aerated drink giants PepsiCo and CocaCola also made their entry over the past few months. Industry representatives and sector analysts estimate more players from dairies, aerated drinks and fast moving consumer goods entering the highly attractive and rapidly growing new segment of the market. Dairy beverages as a segment is estimated to post sales of $1 billion (Rs. 6,400 crore) in India by fiscal 2021, compared with Rs. 1,280 crore in fiscal 2015, said a report by the Tata Strategic Management Group. According to Bharat Kedia, chief financial officer at Parag Milk Foods, the milkbased beverages segment has the second highest margin -from 25% to as much as 45% -among the value-added segments after powdered nutrition products like whey and infant food. For instance, while a litre of milk is sold at . 40-45, a 200ml pack of flavoured milk ` costs Rs. 20.

As against traditional milk-based beverages like lassi, butter milk and plain flavoured milk, dairies and aerated beverage makers have of late come up with products like oats milk, coffee milk and juices mixed with milk, registering quicker acceptance. Parag Milk Foods, which already has milk-based energy drink Topp Up, has recently launched Slurp, a combination of mango juice and milk, while PepsiCo has come up with oats milk. Amul has been claiming encouraging volumes for its Kool .. Coffee drink. Pankaj Gupta, senior practise head, consumer and retail practise at the Tata Strategic Management Group, said: “As dairies enjoy higher margins, they are focussing more on easy-to-consume form of beverages and are launching various products for every category of age." Elaborating on the shift in consumer tastes and demands, Rabobank analyst Shiva Mudgil said: “The growing demand for milk-based beverages indicates a shift in consumer demand with rising purchasing power. The market is still at a nascent stage in India, but is growing rapidly with newer players entering the fold and expanding rapidly." Beverages are fast emerging as a big

revenue generator for dairies, said Kedia of Parag Milk Foods. According to him, the share of beverages segment to overall revenue at his company could reach double digits in the next five years from a low single digit now. While innovations in new flavours are taking place, Gupta of the Tata Strategic Management Group believes that development of newer pack options for consumers will also result in attractive opportunities for packaging providers. Currently, milk-based beverages are being sold in tetrapaks, metal cans, glass bottles, pet bottle and pouches. “Dairies' next phase of growth would witness market expansion driven by newer consumption occasions or recruiting newer consumers through products and packaging," said Gupta.

Modi Govt Announces 5 lakh cash awards for best Desi Cow Herds.

ere ‘s why it makes sense. In another massive push to both dairy farming and cow protectionism in India, the Modi government has announced a Rs.5 lakhs award for the best kept herds of indigenous or desi cow breeds in India. According to a report, there are a total of 30 prizes worth Rs.5 lakhs, 3 lakhs and 1 lakh to be won by individual breeders, breeder groups and gaushalas (cow shelters). All states were asked to send in their nominations by March 31. The awards will be announced in

cattle breeds in India. The wider focus is on increasing milk production and boosting the dairy industry in India.

November on National Cow Day and are part of the government’s overall effort to increase the number of indigenous milch

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According to the Secretary of the Department of Animal Husbandry and Fisheries, 500 high quality bulls are being selected to produce 7,000 ‘super elite cows’ using advanced breeding techniques. The superior cows are expected to lead to an increase of 5 million indigenous cattle each year. This is not the first time Modi Government has moved to protect desi cows.

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FDA To Launch Milk Tester For Rs.60 In Next Three Months

small strip of paper, coated with chemicals, will help you determine whether the milk you purchased from the neighbourhood shop is pure or adulterated. The milk adulteration strip, developed by the state unit of Food and Drugs Administration (FDA), which changes colour to indicate presence of adulterants in milk, will be available in the market in the next three months. Each strip will cost anywhere between Rs.50 to Rs.60. "It's a revolutionary answer to the problem

of milk adulteration in our country. All those who wants to ensure that the milk their family is consuming doesn't have synthetic or hazardous elements, will be able to check the quality of milk in 2 minutes," said FDA commissioner Dr. Harshdeep Kamble, who worked with scientists to develop the tester. FDA officials and the scientists presented a demonstration to Girish Bapat, Minister for food and civil supplies. Dr. Jayant Khandare, Director and scientist, Right to research, Pune which

developed the tester, called it a challenge “to make something innovative at affordable cost”. “We found that major milk adulterants were urea, salt, glucose, H2O2 (Hydrogen Peroxide) and starch. The group developed strips that could be used to detect adulterants in milk in multiple channels simultaneously, “ said Khandare. THE ADULTERATION STRIP CHANGES COLOUR TO INDICATE THE PRESENCE OF ADULTERANTS IN MILK.

Heritage Foods completes acquisition of Reliance Retail’s dairy business

eritage Foods Ltd has completed the acquisition of dairy business of Reliance Retail Ltd (RRL) which the company had announced during October 2016. The company in a regulatory filing has informed BSE that it has received approval from Competition Commission of India for the acquisition of the dairy business, which enables it to further consolidate the dairy business segment. The company promoted by the family members of Andhra Pradesh Chief Minister N. Chandrababu Naidu, had

executed an agreement to acquire the dairy business of RRL through slump sale. RRL had been operating a pan-India dairy procurement, processing and distribution platform under Dairy Life and Dairy Pure brands, which offer a wide variety of products such as packaged milk, curd, sweeteners and skimmed milk powder. RRL dairy business has been operational since 2007 and generated revenue of Rs 553 crore during 2015-16. It had been procuring 2.25 lakh litres of milk per day from 2,400 villages across 10 states.

Post the transaction, Heritage had announced that RRL will continue to trade in dairy products including Heritage dairy product range though its retail and wholesale channels. During November 2016, in yet another major development, Future Retail had announced that it had proposed to consolidate the retail and allied business of Heritage Foods. The retail business of Heritage Foods includes popular Heritage store chain of 124 stores in three southern cities of Hyderabad, Bengaluru and Chennai.

Amul turnover grows 18% to Rs. 27,085 crore in 2016-17

airy major Amul reported an 18 per cent increase in turnover at Rs. 27,085 crore for the last fiscal on an across-the-board sales increase. Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets Amul brand of milk and dairy products, had posted a turnover of Rs. 22,972 crore. The turnover of GCMMF has increased by about 3.5 times in the last seven years. "We have achieved volume sales growth in all product categories," said R.S. Sodhi, Managing Director, GCMMF. Pouch milk, the highest turnover product,

has shown volume growth in double digits while products like butter, ghee, ice cream, UHT milk, flavoured milk, paneer and fresh cream have also registered a double-digit growth. Sodhi asserted that there was no negative impact of demonetization on its business. He added that member unions of GCMMF have opened more than 12.5 lakh new bank accounts for milk producer members and their almost entire payment is channelized through bank accounts. GCMMF has been achieving a compound

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annual growth rate (CAGR) of more than 20 per cent for the last seven years because of higher milk procurement, continuous expansion in terms of adding new markets, launching of new products and adding new milk processing capacities across India. Amul plans to step up its milk processing capacity to 380 lakh litres per day, from the current 300 lakh litres, in the next three years, said Jethabhai Patel, Chairman, GCMMF.

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Dodla Dairy raises $50 mn from TPG Capital arm

Dodla Dairy sources and processes fresh milk to sell dairy products across 66 regions in the south.

odla Dairy Ltd has secured $50 million (about Rs.321 crore) in funding from TPG Growth, the growth-capital fund of US private equity firm TPG Capital Inc., according to a press statement. The transaction was routed through TPG Growth-managed Rise Fund, which invests in the education, energy, food and agriculture, financial services and healthcare sectors. Rise Fund’s investment in Hyderabad-based Dodla Dairy is its first in India, as well as in the food and agriculture sector. Joy Basu leads the food and agriculture sector team at Rise Fund. The deal is subject to regulatory approvals. The company did not provide any information on how much stake TPG has picked up in Dodla Dairy. Reportedly in March this year, citing unidentified people, that TPG Growth is set to buy a 25% equity stake in Dodla Dairy from US-based investment firm Proterra Investment Partners (formerly Black River Asset Management) in a deal worth Rs. 300 crore. Black River Capital Partners (Food) Fund had acquired the stake in Dodla Dairy for Rs.110 crore in 2012. It was also reported in May last year that

Proterra had started discussions with private equity firms to sell its stake in Dodla Dairy and appointed Edelweiss Financial Services to run the sale process. It could not be immediately ascertained whether TPG bought the stake from Proterra in the latest transaction. Queries emailed to Dodla Dairy and TPG Growth did not elicit any response. Also in March this year that several private equity (PE) funds, including Tata Opportunities Fund, had shown interest in Dodla Dairy and discussions had taken place. Proterra Investment Partners was also in talks with global and domestic PE funds Temasek, Kedaara, Multiples and ADV Partners to sell its stake in Dodla Dairy, “India’s dairy consumption has been experiencing robust growth, fuelled by urbanization, increasing incomes, and health consciousness among consumers,” said Vish Narain, partner at TPG Growth. “Dodla is well-positioned to capitalize on these growth trends. It has a strong management team, an established presence in local markets, and an expanding selection of products. We look forward to working with Dodla to enhance its brand and grow its platform,” he added.

Founded in 1998 by first-generation entrepreneur Sunil Reddy of Nellore in Andhra Pradesh, Dodla Dairy procures and processes fresh milk to sell dairy products across 66 regions in south India. The company sources milk from 250,000 farmers across 7,000 villages every day of the year. It works with more than 3,000 distributors across nine states and its products are sold by more than 50,000 retail outlets across the country. Demand for milk is expected to grow at a compound annual growth rate of 5% to 200 million tonnes in 2022 from 138 million tonnes in 2014, according to the National Dairy Development Board. In order to tap the growing market, private equity and strategic investors have been actively investing in the Indian dairy sector over the last couple of years. TPG Growth, an active investor in the Indian consumer space, owns a controlling stake in Bengaluru-based Rhea Healthcare Pvt. Ltd, which operates a network of mother and child care centres in India under the Motherhood brand, surgical equipment maker Sutures India Pvt. Ltd and India-focused cancer treatment chain Cancer Treatment Services International. Other investments include Lenskart, an online eyewear retailer.

Heritage Foods aims to treble revenue in 5 years

eritage Foods, an entity founded by Andhra Pradesh chief minister, N. Chandrababu Naidu, proposes to treble its annual revenue in the next five years as it eyes a larger presence in the organised dairy market. The latter market is estimated at Rs. 80,000 crore a year and is seeing Patanjali, Coca-Cola, PepsiCo and ITC entering it, even as the existing ones such as Amul, Mother Dairy and Nestle try to consolidate their presence. N. Brahmani, the daughter-in-law of Naidu and Executive Director of Heritage Food said that they were aiming at annual revenue in excess of Rs.6,000 crore by 2020, from Rs.2,328 crore last year. ”We propose to do this both organically and inorganically” she said. “Organically, we will focus on value-added dairy. We will also look at acquisitions that are a strategic fit to our business, giving us access into new markets”.

It has taken a step in that direction by acquiring Reliance Retail’s dairy business, which received a nod from the Competition Commission of India last month. The acquisition includes brands like Dairy Life and Dairy Pure. It will allow Heritage to go strong in the south and Maharashtra, to foray into the north, where the Reliance products are available

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both as packet milk and valueadded dairy items. This is the second acquisition by Heritage in a year. In May 2016, it acquired the assets of Karnataka-based Teja Dairy. This came even as it sold its retail and allied businesses to Future Retail in an all-stock deal, to focus its attention on the dairy segment. As things stand, Heritage now has a presence in all the southern states. And, is getting into the Delhi region, Haryana, Madhya Pradesh, Uttarakhand, Uttar Pradesh, Gujarat, Rajasthan and Odisha. Its milk processing capacity is nearly 1.4 million litres a day, which it proposes to double in the next few years. The company is investing Rs.150 crore in five new plants to improve this capacity, Brahmani said.

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Govt hikes milk buying price by Rs.3, retail rates won't be hit

he Maharashtra government has increased the procurement price of milk that co-operatives pay farmers by Rs. 3 per litre. The government's move is not expected to affect the retail price of milk since it seems the government is only formalizing a rate that is already being offered by private dairies. A farmer will now get Rs. 27 for a litre of cow's milk, up from the Rs. 24 per litre that he gets at present. For buffalo milk, the government has increased the rates to Rs 36 from the existing Rs. 33. These rates will come into effect from July 1. The hike was one of the main demands of farmer groups during their recent protest. The new rates, however, will not have any impact on private dairies who claim they are already paying as much as the new government rate and, sometimes, a bit more too. Gowardhan, Mahanand and Mother's Dairy said they pay Rs. 27 per lit re for cow milk and Rs. 37 per litre for buffalo milk. "We are already paying Rs 28-30 for cow's milk and Rs. 45-46 for buffalo milk to farmers in Maharashtra. In Gujarat, we pay Rs. 48-49 for 7% fat

milk," said Amul Chairman R.S. Sodhi. Amul's entry has forced local dairies to give farmers a better rate. Devendra Shah, Chairman of Parag Milk Foods that owns the Gowardhan brand, said: "The Maharashtra government's proposed hike in milk procurement rates will not impact the private dairy sector as we traditionally have been paying higher rates as compared to cooperative players." Mahanand MD Dilip Shinde said: "Competition is so fierce that unless dairies pay farmers well they will sell to a rival brand. There are 40 brands in Mumbai alone." Local collection agents do sometimes undercut farmers' payment by Rs. 1-2 per litre, prompting distributors to demand that the government focus on transparency. "Dairies do not even give us bills or receipts. How is the state government permitting this at a time when the Centre is demanding transparency in financial dealings?" said Union leader Prakash Nayakal. Dairy development minister Mahadev Jankar said the government is mulling

enacting a law to regulate milk prices of private players. "Currently the government can only fix prices for its own brands like Mahanand, Gokul, but we are exploring a law to be able to fix a price for all the milk brands in the state. There has to be parity in milk prices," said Jankar.

Hatsun Agro products meet highest quality standards: CMD

he Rs . 4,000-crore Hatsun Agro Product Ltd, India’s largest private sector dairy company, has clarified that its products including Arokya, branded liquid milk, meet the highest quality standards. At a press conference R.G. Chandramogan, Chairman and Managing Director, Hatsun Agro, said the company directly procures milk from over 4 lakh farmers spread across 10,500 villages across South India. Payments to farmers are done in a transparent manner and paid directly into their bank accounts. The company has a modern infrastructure to chill and process the milk with over 10,150 collection centres, 98 chilling centres and 395 bulk coolers and over

2,400 distribution centres with cold chain infrastructure. Hatsun Agro collects about 27 lakh litres of milk daily and can handle up to 32 lakh litres and has one-third of the market share in Tamil Nadu where the estimated demand is about 62 lakh litres. The milk is processed and packed in 10 different locations in modern factories with regular tests for quality carried out by the company and statutory authorities including the FSSAI, he asserted. The other major player in Tamil Nadu is Aavin, the dairy cooperative, which has a 40 per cent market share, and is controlled by the government Dairy Development Department. Chandramogan’s comments came in as backdrop of Tamil Nadu Dairy Development Minister, Rajenthra Bhalaji’s comments alleging private dairy companies’ milk are chemically treated to

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extend shelf life and pose a serious health hazard. However, he declined to comment on the Minister tarring the private sector dairy companies with a broad brush stroke. Chandramogan, who is a member of the International Dairy Federation, clarified that his explanation pertains to Hatsun Agro Product, a market leader, which has over 8,000 employees and 36,000 business associates. Arokya Milk and Hatsun Curd are the largest brands in their segments and the company is also known for its flagship Arun Ice Creams, Hatsun branded dairy products and Santosa cattle feed. Hatsun Agro’s products are exported to over 40 countries globally, he said. He also invited journalists to any of the company’s factories in to see for themselves the conditions from procurement to final output.

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New rules to hit cow breeding biz in Punjab Dairy farmers

he Rs. 2,500 crore cow breeding business in Punjab will be hit because of the new rules pertaining to the 'Prevention of Cruelty to Animals', state dairy farmers said. Farmers led by Punjab Progressive Dairy Farmers’ Association (PDFA) described the new rules as “tyrannical”, claiming that they would deal a severe blow to the flourishing business of selling high yielding cows to other states. Punjab is one of the leading states in the country for cattle breeding, and supply almost three lakh high yielding cows -Holstein Friesian and Jersey breeds -to various parts of the country, including Gujarat, Uttar Pradesh, Bihar, Chhattisgarh, Andhra Pradesh and Rajasthan, dairy farmers said. “Some rules in the notification of the environment ministry will adversely hit Rs 2,500 crore worth cow breeding business in Punjab,” PDFA President Daljit Singh Sadarpura said. Expressing displeasure of the some rules, Singh claimed as per new rules only

farmer having farm land could buy and sell cattle. “To prove that he is a farmer, he will have to attach the copies of his farm land records. But, there are several landless farmers who are into dairy farming business. Then how can they buy or rear cattle,” he asked. The centre has banned the sale and purchase of cattle from animal markets for slaughter and prohibited practices which are cruel to animals, including painting of horns and putting ornaments on them. The environment ministry has notified the ‘Prevention of Cruelty to Animals (Regulation of Livestock Markets) Rules, 2017’ under the Prevention of Cruelty to Animals Act. Singh further said farmers could also not sell cattle, which are likely to give birth. “Majority of buyers like to buy cow which is pregnant. This rule will also hamper cow breeding business,” he claimed. Farmers further claimed that the new rules barred any person other than veterinarian

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for giving any medicine or antibiotic to animals. “Cows normally suffer from mastitis (Udder infection) and when this problem arises, cow owner give injection of antibiotic on their own to save their animals,” he said, adding that farmers are usually trained by the government to treat their animal before veterinarians come. They also raised question over the new rules under which no person can twist the tail and ear of animal in order to control them. “If an animal is not ready to move while standing in the middle of the road, farmers usually twist their tail or ear,” he said. Singh said farmers will have to complete a lot of formalities before selling their animals, while apprehending that it would lead to ‘inspector raj’ and corruption. Farmers suggested the Centre to review these rules, and also urged the Congress led government in Punjab to take up this issue with the Government of India to address their concerns.

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ACE TECHNOLOGIES introduces Swiss Can Machinery

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India fails to export cheese to Russia despite nod from relevant authority

espite signing official protocol for imports and inspections of dairy processing plants with Russia during the last two years, India is yet to formally begin sending shipments to the biggest global importer of cheese. As known from the sources following the inspection of a number of dairy processing plants belonging to private sector and dairy cooperatives in India, Russian phyto-sanitary authority Rosselkhoznadzor has given a nod for import of cheese from private sector milk processors Parag Milk Foods and Schreiber Dynamix. However, two years after European Union (EU), Australia and USA imposed sanctions on Russia, following the annexation of Crimea, the exports of dairy products from India is yet to resume. Citing ‘procedural issues’, commerce ministry officials said that they would ask government to approach Russian government to resume cheese exports from India. A year ago, an import protocol was signed with Russia’s Federal Service for Veterinary and Phyto-Sanitary Surveillance and Indian authorities on modalities of dairy products imports. Following the restrictions imposed on Russia on imports of dairy products from Europe two years ago, along with the economic sanctions levied by European countries, Russia has been importing cheese from Belarus, Ukraine and other CIS countries. Meanwhile, industry sources said that domestic cheese price is at least 20% to 30% more than what is prevailing in EU and the US, thus making India’s dairy products exports not viable. The domestic price of cheese is around $5 per kg whereas in EU and in US, prices are in the range of $3.5 to $4 per kg. “We have lost crucial time during last two years, thus lost the price advantage enjoyed then. At present exporting cheese to Russia may not be viable in the current scenario,” a leading private sector dairy player said. Russia’s annual cheese consumption is estimated around 2.3

milk, besides being a big exporter of buffalo meat and marine products. However, exports to Russia have been mostly limited to tea, coffee, guar gum and processed fruit and vegetables. Besides Russia, Agricultura and Processed Food Exports Development Authority (APEDA) is also working towards increasing dairy products exports to neighbouring milkdeficit countries like Pakistan, Bangladesh and Sri Lanka. Most of these countries have imposed India is the world’s largest producer of high import duties on dairy products. lakh tonne. Rosselkhoznadzor had initially approved imports from those Indian farms with at least 1,000 cattle under one ownership. Only Parag and Schreiber Dynamix could meet these norms as the country’s biggest diary cooperative – Gujarat Cooperative Milk Marketing Federation (GCMMF) - popularly known as AMUL, operates through cooperative model where cattles are owned by small farmers. Subsequently, Russian authorities relaxed this norm.

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GST levied with mixed reaction by Dairy Industry

he crucial 14th GST Council meeting at Srinagar on May 18 &19, 2017 has set the ball rolling for the GST rollout targeted for July 1, 2017 with the finalization of GST rate schedule for goods [around 1200 products] and services. Apart from the rates, the Classification Scheme for Services under GST based on Service codes has been prescribed along with the list of services on which GST would be paid under Revere Charge Mechanism (RCM). The list covers 18 services which are grandfathered from the existing RCM list with 100% liability to be discharged by the recipient. It is broadly expected that GST will be an amalgam of VAT, excise duty, octroi, entry tax, mandi expense, cess and so on. None of the dairy items pull in excise duty with the exception of the cleaned sweetenedenhanced milk that likewise in not very many states. The Union government has worked out this rate figuring all the previously mentioned demands. It would be fitting to say that the dairy business is named “cultivating” and the dairy items regarded as “homestead” create as opposed to prepared sustenance. A bulk of services will be taxed at the standard rate of 18% per cent under the four-tier rate structure for services that the GST Council finalized for taxing services. Finance Minister Arun Jaitley stressed that this would not be inflationary, input tax credits for firms will ensure consumer costs won’t go up and that consumers would not have to pay more. With a strong footing the government argued that input tax credits will reduce the final tax burden and prevent services from becoming more expensive. If the companies do pass on the credit they get, government calculations indicate that inflation may decrease by 2%. Currently, most services are taxed at 15% per cent and there have been concerns that in 18 per cent rate under GST would make them more expensive. Several food items such as edible oil, tea, coffee, sugar etc… have been kept at 5%, with exemption for milk and foodgrains. Meanwhile, the government also said that despite the higher standard rate of 18%, service providers would get input tax credit, which will lower the effective incidence of GST. However, analysts said consumers might end up bearing the brunt of the higher tax. It is notable that milk creation in India has

been reliably developing at 4-4.5% every year. This is on the grounds that the milk yielder in India has a consistent ranch to fork linkage through direct access to the constantly expanding market for milk and milk items. The high rate of GST taxation may switch this cycle. After the declaration of GST tax slab members of Indian Dairy Association (IDA) demanded to reschedule the tax slab and put the principal milk products in the lowest tax slab. Following suggestions were recommended by Indian Dairy Association (IDA) to the government for consideration in the above proposed rates of GST on milk and milk products: 1) Skimmed Milk Powder - At present 5% GST is proposed to be applied on Milk Powder. This product is used for processing of Liquid Milk and is not a luxury product. It is not an optional but an essential step in manufacturing process for preserving surplus milk for human consumption. This drying process is used for extending the shelf life of milk in order to make it available as pasteurized milk to the consumers round the year. Therefore, it is a method for conservation of milk solids for later utilization. Milk Powders are manufactured from surplus milk at the time when farmers are not able to sell their product at remunerative prices during the flush period. These powders are converted back into pasteurized milk for human consumption. Levying higher GST on Milk Powders will unduly inflate prices of pasteurized milk to the disadvantage of consumers. Therefore, the Indian Dairy Association’s request is to place Skimmed Milk Powder (04021010) under NIL category. 2) Butter and Ghee - are obtained as a by-product during the manufacturing of Milk Powder. Butter is used for re-constitution during the period of shortage of milk and Ghee is used as a cooking medium in Indian Kitchens. Ghee and Butter are rich sources of energy, essential fatty acids and fat soluble vitamins (A D, E & K) which are most essential ingredients to ensure nutritional security to humans. Due to the deficiency of these vitamins, FSSAI have recommended fortification of milk and milk products with these vitamins. The supply of synthetic vitamins is essentially from Chemical Industry. Fortification is

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a very expensive proposition. Therefore, bringing Butter and Ghee to NIL category of GST will be in the interest of Food Security and Nutritional Security. Imposition of higher GST on Ghee and Butter will result in raising the milk prices and harm the interest of the consumers. Further, the milk procurement prices paid to the Milk Producers will also be adversely affected. Some of the states in India levy Mandi Tax on Ghee. It should be noted that there is no role of State Mandi in sale of Ghee. Tax is imposed despite the Dairy not utilizing the services of Mandi. It is recommended that the Mandi Tax on Ghee be subsumed in GST. 3) Flavoured Milk - is nothing but milk with addition of sugar and some flavours in it to enhance the sensory properties and also to enhance its shelf life. It is, therefore, recommended that Flavoured Milk be mentioned under NIL Category in GST as applicable for pasteurized milk. Flavoured milk is a better alternative for carbonated beverages which carry no nutritional value. 4) Beverages Containing Milk Dairy Plants at present use Whey and Butter Milk available as by-product to produce large number of beverages by incorporating milk solids. Beverages containing milk ingredients are, therefore, like milk and should be taxed at NIL rate under GST. 5) Evaporated Milk - As compared to the cost of transporting liquid milk with that of evaporated milk, it is lowered by 65% per ltr. This is a green initiative taken by the Dairy Plants. The evaporated milk on arrival is converted into pasteurized milk. Therefore, evaporated milk not containing sugar should be categorized under NIL GST. 6) Plain Condensed Milk (Without Sugar) - This class of product is not indicated in the GST rules. However, unsweetened condensed milk is essentially classified as evaporated milk. This category should be mentioned in GST classification as evaporated milk of plain condensed milk. Since plain condensed milk is used for conversion into pasteurized milk, it should be categorized under NIL GST category. 7) Chhana, Paneer and Khoa- At present non-branded and unpacked indigenous milk products are classified under NIL category. Many organized Dairy Plants in India manufacture these products under

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hygienic conditions with assured quality and safety and increased shelf life. The consumers, therefore, receive such safe products made by the dairy plants as per the FSSAI standards. In order to stay in competition with unorganized players, it is recommended that these products produced by the organized sector be classified under NIL category and kept at par with 0406 category. 8) Liquid Nitrogen - Live-Stock Industry uses liquid nitrogen for preservation and transportation of frozen semen at sub zero temperatures for artificial insemination throughout the country for breed improvement. It is also used for preservation for increasing the shelf life of dried milk products. It is, therefore, recommended that nitrogen for use in the Live-Stock Industry be exempted and brought under NIL category of GST. 9) Molasses - At present, India has acute shortage of cattle feeds. Molasses is used for formulation of energy dense cattle feeds. The proposed GST @28 percent will make it more expensive and prove counter-productive for increasing milk production. It is advisable to reduce the GST to 5 per cent from the proposed rate of 28 percent to promote scientific feeding of dairy animals. “Mandi Tax” on Ghee, applicable in some states should be withdrawn. Mandi fee that once was levied on ghee across India has been abolished except in the states of Uttar Pradesh and Rajasthan and that too has been reduced to 2% only. Value-added tax is demanded at 2-5% on drain powders, 5% on chakka (essential crude material for shrikhand), table margarine, cream, and UHT drain stuffed in containers. As indicated by the current taxation administration there is no tax on any of the new dairy items like a crude drain, pasteurizedpackaged drain, dahi, chhachh, lassi and their variations. None of the dairy items pull in excise duty with the exception of the cleaned sweetenedenhanced milk that likewise in not very many states. The Union Government has worked out this rate figuring all the previously mentioned demands. Existing Taxation Regime: Dairy is maybe the main business that can pay to the milk maker around 70% of what is charged from the customer. No other nourishment handling industry in India

can meet such exclusive requirements of the vendors. Excessive price of milk and milk product shall make it unaffordable to poor strata of society. Milk is a perishable item. Therefore, the stage of processing, packaging and conversion to long life styles product is more a need than a luxurious. Processed milk merchandise e.g milk powders, butter, ghee and cheese extend the life of milk that would in any other case perish. This also makes setting up of centres for milk processing and production of dairy products rather capital extensive in addition handling of dairy products calls for pretty reliable and unbreakable cold chain needing heavy capital investment inside the network for income and distribution. It is crucial that a lenient view is taken while imposing GST on the dairy industry. The government ought to create a special category for the dairy industry by exempting all types of liquid milks, sterilized milks, dahi, chhachh, lassi, shrikhand, paneer and so on from levy of GST and create a special category by levying 4% GST on all other dairy products. Let us take a single overall view of tax structure that conveys a clearer picture of then and now:

In dairy segment, liquid milk, unpacked curd, buttermilk and unpacked paneer – will be tax free. Ultra-High-Temperature milk, cream and yoghurt will attract the lowest level of 5% tax. Meanwhile, butter, ghee, dairy spreads

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55 and cheese will be in 12% tax bracket with condensed milk, ice cream taxed at 18%. Chocolates have been put in the highest 28% tax bracket. There is a big question mark that after implementation of GST, will the consumer feel the pinch of it and what will be the market stand on GST on the whole. However, Dr. Harsev Singh, CEO, Relaince Dairy, has a different view about the bill. He thinks that GST is a welcome step except that the tax slab on ghee which was 5-6% in most of the states has been taken to 12% and there seems to be no clarity on stocks already purchased by trade for further selling. Commenting on the issue Dr Harsev Singh said that it will lead to huge tax evasion on ghee by low end brands and unorganized players. However, Reliance Dairy CEO, Dr. Singh differs in the view on the issue, he said that barring ghee apparently there does not seems to be too much concern. Dairy experts welcome the step of bifurcation. T.M. THOMAS Sr. Manager, Calicut Milk Union is of the say that dairy sector is not satisfied as the GST rate of ghee is increased from 5% to 12% and Rate of SMP is increased from 2% to 5%. The rate effect (Increase or Decrease) is to be passed on to the consumer. Thomas said that there is suppose to be a policy to be constituted for watching this. Further to this Milk is not exempted but has a 0% tax. At any time, tax can be levied on it. While T.M. Thomas too believes that this will not lead to tax evasion as the threshold limit is fixed as 20 Lacs. All other persons have to take registration. He said that input tax credit is available on the whole taxes paid including the purchase from unregistered dealer. Considering dairy product its nutritional value for the health of mankind, dairy products should have been brought in the first category that is 0% or exempted items. But still the success of GST depends on the honesty of the trading segment. Since this is a destination based tax system,

56 the end consumer will be victim and Indian market will always be reluctant to GST, he added. Milk being a single agricultural crop, it has highest value more than combined value of wheat and rice. The dairy sector was always seen as major nourishment in the country like India which credits in the health

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motto is the first motto. Milk offers the quality bioavailability of protein, mainly to the vegetarian. Milk is an important nutritional requirement of human beings therefore may also improve the health reputation of the farmer and people at big. Reviewing the above elements, it is reasonable that at par with agriculture

produce, the milk product must be also exempted from any excise responsibility, income tax and similar other taxes. This gesture of authorities could go a long away in accelerating the growth of the Indian dairy industry.

Marking a Decade of Integrated Food Law

ommemorating a decade of integrated food law in the country, and marking 10 years of Food Safety and Standards Authority of India (FSSAI), Prime Minister Narendra Modi underscored the need to focus on empowering consumers so that the manufacturers and suppliers of food products become responsive to consumer needs, demands and expectations. “Safe and hygienic food will create a Swasth Bharat and this has to be cornerstone of the efforts of FSSAI,” PM Modi said. Union Minister of Health and family Welfare J.P.Nadda released the special commemorative volume – a compilation of the history and over 50 invited articles from scientists, experts, industry people and consumer organizations. Shri. C.K.Mishra, Union Health Secretary addressed the audience with inspiring messages on the need for collaborative efforts towards setting up of food standards and its implementation strategies. Appreciating the unrelenting efforts of FSSAI towards food safety In India, union health secretary emphasized upon the two-way communication between the food businesses and the regulator. He advised that the Authority should be fully

aware of the need the concerns of small food businesses. “During the last 10 years, considerable ground has been covered in terms of achieving the goals of laying down scientific standards and regulating the manufacturing, storage, distribution, sale and import of food items for the people of India. FFSAI stands for trust and compliance and the synergy between the industry and the authority will ensure that his trust is well placed,” he said. “One of the most significant provisions of the formation of FFSAI was for setting national benchmarks, regulations and guiding principles for Food Safety and Nutrition. We have completed 10 formative years of this act and are now striving to work towards a collective approach for building safe food culture in India because Food Safety cannot be ensured by enforcement alone” Ashish Bahuguna, Chairperson, FFSAI said. FSSAI announced 10@10 – 10th anniversary with 10 initiatives. The primary focus of the 10@10 initiative is to engage with stakeholders and consumers to create food safety culture in

the country. This bouquet of 10 initiatives focused on safe and nutritious food at home, school, workplace, religious places, in trains and railway stations, in restaurants and other places. The event also saw launch of Food Safety Display Boards that would help to connect the consumers directly to food safety officers. Under the Corporates 4 Food Safety initiative, corporates committed themselves other stakeholders towards food safety as responsible food businesses. “All these initiatives have been developed collaboratively over the past few months along with other stakeholders and partners. The states would be facilitated to implement them on pilot basis over the next few months and thereafter national rollout of these initiatives would be done possibly by next year. Other initiatives of the FSSAI are national milky way quality survey, food fortification, farm to trade – bridging the standards divide, rediscovering the rich culinary heritage of India, standards for organic food, eLearning portal and simplification of registration and licensing regulations,” Pawan Agarwal, CEO, FSSAI said.

Milk adulteration more in North India: FSSAI

ilk adulteration is more in north India compared to southern states, food safety regulator FSSAI said. To address this issue, the regulator has already developed a testing kit to check the quality of milk and is looking for investors for its bulk production. However, more detailed and focused strategy to tackle the menace of adulteration will be developed after conducting one more survey, he added. "A survey conducted three months ago showed in general that milk adulteration was low in southern India, more in

north India," Food Safety and Standards Authority of India (FSSAI) Chairman Ashish Bahuguna said after a meeting of the Central Consumer Protection Council (CCPC). A survey with a sample size of about 2,500 had "some surprising" results as some states reported no adulteration at all, which "I personally cannot believe", he said. Stating that there is no question on the integrity of the results of the recent survey, Bahuguna said, "But we will conduct another survey to get the accurate picture so that to decide a strategy and focus on

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hotspots." He also said, testing kit to check quality of milk has already been developed and the FSSAI is negotiating with investors for mass production and marketing of the kit. The regulator is in the process of developing a testing kit for edible oil as well. The issue of adulteration was discussed in the CCPC meeting, in which Consumer Affairs Minister Ram Vilas Paswan asked the FSSAI to come up with testing kits which consumers can buy at Rs. 15-20.

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Elanpro Redefines Cool Quotient With New Blast Freezers Versatile, easy to use blast freezer, quickly prepares products for short and long-term storage

ith the aim of reducing food waste by escalating its shelf life, ELANPRO, India’s leading commercial refrigeration company, has added a new range of Blast Freezers and Chillers to its product portfolio. An extensive range to manage blast freezing and chilling, ELANPRO SHOCK FREEZER Series is also designed to conserve food in the best possible way. An ideal solution in every food service environment, the range is available in a compact footprint. Available in four variants, the new range of Blast Freezers and Chillers improves workflow in the kitchen. The technically advanced series is designed to evenly chill or freeze products. The product can accommodate staggering quantities frozen foods, meat, quiches, lasagna, fish, vegetables, cream desserts, pies, cakes,

puddings etc. All models rapidly reduce the temperature of hot foods from 90°C down to 3°C in 90 minutes (blast chill) or 70°C down to -18°C in 240 minutes (blast freeze). ELANPRO SHOCK FREEZER Series is designed to quickly and safely cool hot foods from their cooked temperature so that they may then be refrigerated until needed for re therming. The simple and smooth design offers capacities from 8 kgs upto 38 kgs. The Blast Freezer can accommodate 3/ 5/ 10/ 14 GN 1/1 trays depending on the size of the model. An efficient choice for blast chilling and freezing, the product has inbuilt safety alarms which captures high and low temperature, probe failure alarm

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and door alarm. Speaking at the occasion, Mr. Ranjan Jain, Managing Director, Elanpro said, “Our new range of Blast Freezer and Chillers reduces the temperature of edibles faster and offers food safety by minimizing the chances of bacterial contamination. The turbo cooling technology in these blast chillers monitor the temperature in the core, which helps in preventing surface freezing and degradation. It is an economical solution for very busy kitchens and pastry shops” ELANPRO SHOCK FREEZER Series is incredibly easy to use and requires no installations. The product is made of stainless steel with round internal edges for hygienic cleaning. A highly efficient product, the freezer is uniquely designed with self-closing doors which help reducing temperature loss. ELANPRO Blast Freezer comes with 75mm thickness insulation for thermal efficiency. Chilling is automatically controlled to ensure food is maintained in the best possible condition. ELANPRO Blast Freezer and Chiller minimizes product dehydration and ensures food is maintained in the best possible condition. With this product, Elanpro aims at improving the cooking operations whether it be a banqueting service that needs to manage large quantities, or a restaurant kitchen based on day to day cooking. A versatile and flexible product, Elanpro SHOCK FREEZER series is energy efficient, convenient, safe and reliable performance for optimal storage for a wide range of products. Priced at Rs. 1.80 lakhs, the product is now available at Elanpro dealer stores.

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Start-up Milk Mantra chalks out expansion, open to acquisitions

disha-based dairy start-up Milk Mantra is hoping to turn profitable this fiscal.

acquisitions (of processing units), if required, in order to bolster presence in new markets. Milk Mantra has two processing units in Odisha – near Konark and Sambalpur – with a combined capacity of 300,000 litres per day.

On the lookout for acquisitions, the company is now sewing up expansion plans in eastern States namely West Bengal, Jharkhand and Chhattisgarh. Milk Mantra is into milk and value added offerings with a portfolio that includes milk, curd, paneer, chhaas (butter milk), milk-shake, under the ‘Milky Moo’ brand name. According to Srikumar Misra, Founder, MD and CEO, Milk Mantra, the company will look to break even, at an operating level, this fiscal with a turnover of over Rs.200 crore. It closed FY-17 with a turnover of about Rs.150 crore. “FY-18 is our targeted break even year with a topline of more than Rs.200 crore. We will look to clock around Rs.16-17 crore of sales on a monthly basis,” he told. Achieving a target of Rs.200 crore does not look improbable for the company whose topline was just Rs.18 crore in FY13 (the first full year of operations). The start-up has secured four rounds

of funding and is backed by PE players like Neev Fund, Eight Roads Ventures and Aavishkaar Venture Management Services. For Milk Mantra, the plan is to expand beyond its home-State into the neighbouring ones. A conscious focus is on the eastern States. Of the existing 7,000 stores, where its offerings are sold, nearly 6,500 are in Odisha. The remaining are in Kolkata, Ranchi, and Raipur. “By FY-18 we should be present across 10,000 stores including upping our presence in B-C-J (Bengal, Chhattisgarh and Jharkhand) markets. We’ll initially target Kolkata, Bokaro, Jamshedpur, Ranchi, Raipur and Bhilai,” Misra said. Interestingly, the company is open to

“We are open to both inorganic and greenfield development in the region,” he said, adding that if required, additional funding can be explored. Product innovations Misra knows that he has to innovate and there is a strong focus on product innovation. Accordingly making further investments at its R&D facility at Bhubaneswar is being looked at. Incidentally, Milk Mantra has introduced an innovative packaging that increases the shelf life of milk, plans to relaunch its milkshake with curcumin (an extract from turmeric that has several health benefits) targeting the functional beverage category. Probiotic and mango-flavoured curds, litchi-flavoured milkshake are also being launched.

Amul a bigger brand than HUL: Sodhi

he said. GCMMF is also coming up with five new integrated plants in Gujarat, Mumbai, Pune and West Bengal, Sodhi said adding that the annual capital expenditure was Rs. 800 crore.

mul is a bigger brand than Hindustan Unilever Limited (HUL), Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) Managing Director R.S. Sodhi said. Sodhi, announced the official sponsorship of the New Zealand cricket team & said that Amul, a brand wholly owned by GCMMF, is also sold by 18,000 village cooperative societies outside the formal distribution channel in Gujarat. "If that is taken into account, the sales turnover of Amul is over Rs. 38,000

Sodhi said there were also plans to enter the markets of Tamil Nadu and Kerala. crore, including the GCMMF revenue of Rs.27,000 crore," Sodhi said. In its latest initiative Amul is planning to expand its chocolate production capacity by five times involving a cost of Rs. 150 crore,

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Setting a target of Rs. 50,000 crore sales by 2021, Sodhi said that milk production volumes would be increased by 14 per cent yearly with a price increase of six to seven per cent.

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Training Programme on

“Value Addition of Milk” Concludes at Vet Varsity

five-day training course on ‘Value addition of milk ‘organized by College of Dairy Science and Technology, Guru Angad Dev Veterinary and Animal Sciences University concluded on March 10 2017. Congratulating the trainees including 4 women farmers who underwent training in the course, the Chief Guest, Dr.H.K. Verma, Director Extension, GADVASU said that value addition of milk could help to enhance the economic well-being of the large number of people in Punjab. He suggested that the trainee participants to maintain contacts with the University experts and try to excel in the dairy processing and value addition through hard work and innovation. Dr. H.K. Verma, Director, Extension Education, emphasized that there is a need for better marketing of products manufactured by dairy processors through selection of better market place, obtaining better prices through improvement of quality by value addition. He ensured the cooperation from the trained faculty of the college in the future. He said that Directorate of Extension Education is providing training courses in different

livestock activities throughout the year. Dr. A.K. Puniya, Dean, College of Dairy Science & Technology in his address apprised the trainees about the facilities available for farmers in various departments of the college pertaining to value addition of milk. He advised the farmers to convert milk into milk products so as to improve the profit levels as compared to the sale of liquid milk. Dr. Pranav Kumar Singh, Dr.Gopika Talwar and Dr. Santosh Kumar Mishra, course coordinators of training programme provided an overview of the activities

carried out for the participants during the training course. Dr. Talwar informed that training programme was technically designed and provided practical training on manufacture of seven milk products viz. milk cake, paneer, whey drink, dahi, lassi, mozzarella cheese and sterilized flavoured milk. The training covered the microbiological, chemical and economic aspects for proper handling of milk and milk products. Farmers also shared their experiences about the technical sessions of the training and mentioned that they had good practical experience of manufacturing the milk products and other technical know-how. Valedictory session was concluded with the distribution of training certificates to the participants. College is looking forward to conduct more specialized training to benefit more dairy farmers and entrepreneurs in future.

Value-added dairy products draw crowd

fter Patanjali, ITC and Coke , PepsiCo eyes segment. A growing list of companies is eyeing the rapidly growing value-added dairy industry. The segment is dominated by Amul, Mother Dairy and Nestle, but Patanjali, Coca-Cola and ITC have forayed into this space in the past year. With the likely entry of PepsiCo, the market is turning out to be a crowd-puller. ITC forayed into value-added dairy last year with Aashirvaad ghee. “The intention is to craft differentiated and value-added products.

past two years, also launched a ghee and whitening powder last year. According to the firm, ghee is one of Patanjali’s top selling products with sales of over Rs 1,000 crore. Coca-Cola has launched Vio, a milkbased drink and PepsiCo is evaluating a foray into value-added dairy. According to industry estimates, the value-added dairy segment grew over 25 per cent last year, against five per cent growth in fast-moving consumer goods sales.

We are working on capacity improvement in milk processing," said Hemant Malik, Divisional Chief Executive, Foods Division, ITC.

With competition intensifying, traditional players have pulled up their socks. Nestle recently relaunched milk powder Milo in a ready to drink format.

Patanjali, which has bombarded the market with hundreds of products over the

It also launched a number of ready to drink cold beverages under Nescafe and

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Grekyo yogurts. “Mother Dairy was a pioneer in assessing the need for value-added dairy products. Our products are developed through consumer insights that make them the preferred choice," said Randhir Kumar, Deputy General Manager, Marketing (Dairy Products), Mother Dairy Fruit & Vegetable. Activities: • Coca-cola has launched Vio, a milkbased drink. • ITC forayed Aashirvaad Ghee.

into

value-added

• Patanjali launched a ghee and whitening powder last year. • PepsiCo is evaluating a foray into valueadded dairy.

National News

Uttar Pradesh Govt. to focus on popularising cow milk In the next one year, our endeavour will augment the total capacity of milk collection to 10 lakh litres per day: Uttar Pradesh minister Laxmi Narayan Chaudhary

n a bid to revive the dairy industry in the state, the Uttar Pradesh government has decided to popularise cow milk and the by-products of milk. The government has also decided to set up a one-lakh litre capacity milk processing plant in Kannauj this year. “And, in the next one year, our endeavour will be augment the total capacity of milk collection to 10 lakh litres per day,” Uttar Pradesh minister Laxmi Narayan Chaudhary has said. Making a strong pitch for popularising cow milk in the state, he said based on its utility and usefulness, the state government has decided to undertake measures for its wider publicity. To promote cow milk, the Uttar Pradesh government will be going for separate packaging of cow milk and ghee. The Minister, who was recently on an official tour of Chhattisgarh, said in UP, it is the fat content, which determines the price of the milk, while in Chhattisgarh, it is its usage, which actually determines its cost. “In UP, cow milk costs Rs. 22 per litre, while buffalo milk is priced at Rs. 35 a litre. In Chhattisgarh, one litre of cow milk costs Rs. 120,” Chaudhary,

UP minister for Dairy Development, Religious Affairs, Culture, Minority Welfare, Muslim Waqf and Haj told PTI in an interview. Listing the benefits of cow milk, he said, “Cow milk has very high nutritional value. It boosts immunity and helps in combating fat and cholesterol. Ghee made of cow milk is used as a base is preparation of various ayurvedic medicines”. To promote cow milk, the government will be going for separate packaging of cow milk and ghee. Observing that milk collection by the UP government-run Pradeshik Co-operative Dairy Federation has declined in last five years, Chaudhary said, “In the last five years, milk collection has come down from 7-8 lakh litres per

day to almost 2 lakh litres per day. “Dairy industry is facing a loss of almost Rs 400 crore. To revive the dairy industry in the state, the government has already issued directions to focus on by-products of milk such as sweets and products”. Accusing the Akhilesh Yadav-led Samajwadi Party government of destroying the dairy industry, he said, “The former SP government virtually destroyed the dairy industry in the state. The co-operative dairies operating at the district level were forced to wind up, resulting in dip in milk collection.” In order to give a boost to the dairy industry, the state government has decided to send students from agricultural universities and other institutes for a two-month-long training programme to Anand in Gujarat, under the guidance of the National Dairy Development Board (NDDB). To a question on having Aadhaar-like unique identification number for cows and cattle to prevent their smuggling, Chaudhary said, “We are already working on it. Apart from this, work is also going on to revive the Gau Sevaa Aayog.”

Ramdev's fast food chain to take on MNCs Patanjali claims Rs.10,516cr revenue in fiscal 2016-17

oga teacher Ramdev is cooking up a recipe to take on multinational fast food chains, including KFC, McDonald's and Subway . With vegetarian food catching up as a global trend due to health benefits, Ramdev told TOI that he is working on launching a quick service restaurant (QSR) chain across the country that will offer 400 recipes . "We will not divide our menu into North Indian and South Indian," Ramdev said. "We will give people choice because there is nothing tastier and healthier than vegetarian Indian food. When we get these recipes together, all these multinationals serving chicken or mutton will have a hard time countering us." True to his word, nearly 60-70% of all fast food sold in the country , including burgers and pizzas, are vegetarian. Most international QSR chains operating in

the country have tweaked their menu with vegetarian food items to suit Indian palates. Ramdev said, he is also looking to open his restaurants in international markets. "I have travelled to many countries and vegetarianism is catching on like wildfire," he said. "People stand in queues to get access to vegetarian food." Ramdev, along with Patanjali Ayurved's MD & CEO Acharya Balkrishna, also announced the company's interest to foray

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into textiles to compete with companies such as Levis, Nike and Adidas with products such as jeans and sportswear. Ramdev said, the Haridwar-based FMCG player has recorded Rs. 10,561 crore in revenue for 2016-17 with most of its products, including ghee and toothpaste, garnering healthy market share in their respective categories. We will become the largest home-grown FMCG player in the next one year," said Ramdev. The company's aim is to double its revenue year-on-year, Balkrishna added. From around Rs. 2,000 crore in 2014-15, the company has managed to grow its revenue exponentially . It plans to double the number of its distributors to 12,000 within a year and employ around five lakh people going forward from one lakh at present.

National News

PepsiCo moves into India's dairy market with Quaker drink launch

Pepsico is making its first move into India's growing dairy market with the launch of a ready-to-drink milk product under its Quaker Oats brand. The US group said the new Quaker Oats plus Milk product aims to target the "breakfast nutrition" market. The company said it will initially sell the product in two flavours - almond and mango - in 180ml cartons for drinking onthe-go, tetra-pack, priced at Rs.30/-. Deepika Warrier, Vice-President,

Nutrition Category, Pepsico India, said: “We are a food & beverage company and this product brings together the nutritional value of oats and the goodness of milk. We are trying to create a new subcategory with this grain dairy beverage which has been developed using our patented “SoluOats technology”, to blend oats with milk. We have clearly taken our time to enter the dairy segment as we wanted to enter the market with the right proposition that will address the nutrition needs of the time-starved millennials and young Indian consumers, ” she added.

The launch comes hot on the heels of PepsiCo's expansion of its portfolio in India, announced earlier this year, with a line of breakfast dishes under the Quaker brand based on local, traditional delicacies. PepsiCo said the Quaker Nutri Foods line, including popular dishes such as Idli, Dosa, Upma, and Khichdi, represent "a healthier version of some of the most loved ready-to-cook Indian breakfast dishes".

In a posting on social media, PepsiCo said the product had been launched "in association" with former Indian cricketer Sachin Tendulkar. "He's the co-creator of this range, as it's with his insights that we have developed our products," PepsiCo said, without providing further details.

Rates for 6 items to be finalized: no levy on milk, bread, cereals

he Goods and Services Tax (GST) Council agreed upon fitment of various goods in the tax slabs of zero, 5, 12, 18 and 28 per cent on the first day of its two-day meeting. No GST will be levied on Prasadam cereals, kumkum/ bindi and contraceptives, among others, while a 28 per cent GST will be levied on items such as pan masala, motor vehicles, molasses, chewing gums and chocolates containing cocoa. Most processed food items will attract a GST rate of 5 per cent including that on frozen fish, skimmed milk powder, cane sugars and Sweetmeats(mithai), the list of item-wise tax rates released by the Central Board of excise and Customs showed. Condensed milk, pastries and cakes, agarbatties, mobile phones, electrically operated vehicles will attract 12 per cent rate under the proposed indirect tax regime. While LPG for household

domestic consumers will attract 5 per cent tax, butter and cheese have been placed in the 12 per cent category. Tax rates on six items-beedi, biscuits, textiles, footwear, precious metals and power-driven agricultural machinery-are yet to be finalized and are likely to be taken up for discussion on the second day of the GST Council meeting. Finance minister Arun Jaitley said that if rates for all items are not decided in this 14th meeting of the Council, then another meeting will be called soon to complete the fitment exercise.

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Cow milk gets Mother Dairy moo-lah

onsumers are taking to cow milk, which has far less fat than buffalo milk, according to sales figures of Mother Dairy Fruit & Vegetable. In less than a year of launch, packaged branded cow milk by the wholly owned subsidiary of the National Dairy Development Board (NDDB) has touched around Rs 500 crore in sales, contributing 8-10% to its overall revenue, the company said. It had launched cow milk in June 2016. It has also introduced a new cow milk brand in the east, called 'Dailycious'. Other value-added products, including paneer and yogurt made from cow milk, are in the pipeline. "Small unorganised players, who were selling 'cow milk' in cans at exorbitant prices in pockets such as Gurgaon, prompted us to get into the category," said �rganEsedr7o

Sandeep Ghosh, Business Head (milk), Mother Dairy Fruit & Vegetable. "At we

young consumers because cow milk is perceived to have a 'lighter' taste." Milk, paraded as cow milk, was being sold for Rs 120 a litre by small players, said Ghosh. Mother Dairy charges Rs 52 for a litre of buffalo milk and Rs 42 for cow milk. Buffalo milk has 6% fat and cow

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milk has 3.5-4%. "Buffalo milk is more expensive due to the higher percentage of fat," he said. However, consumers in the south prefer buffalo milk for the higher percentage of fat, said Ghosh. "Cow milk is gaining traction in the north, east and the west,"

he said. "Growth in markets such as Hyderabad has been tepid." While sales of Mother Dairy cow milk have been growing at around 8% monthon-month, it has cannibalised a portion of the company's toned milk category because both are offered at similar price points. Gowardhan, Amul and Mother Dairy, Calcutta are among the other brands that sell cow milk. Yoga guru Ramdev-led Patanjali is also set to enter the branded cow milk market.

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"While we have launched powdered milk, we will soon introduce packaged liquid milk," a Patanjali spokesperson told. Ghosh said, "Competition will only help expand the market.". Mother Dairy has set up procurement points of cow milk in places such as Tirupati, Bihar, Rajasthan and Maharashtra.

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National News

World Milk Day celebration at

National Dairy Research Institute, Karnal

ne such celebration of World Milk Day 1st June 2017 was observed at ICAR- National Dairy Research Institute, Karnal. The institute launched an innovative kit for the detection of maltodextrin, an adulterant of recent time in milk. The paper strip based kit has been developed at in Dairy Chemistry Division of ICAR-NDRI and can detect 0.01% level of maltodextrin in milk. The kit has been developed by a group of scientists – Dr.Rajan Sharma, Dr.Y.S.Rajput and Dr. Bimlesh Mann and commercialized to two students of NDRI namely Mr.Manoj Kumar Maurya

and Mr.Babbar Singh who have become entrepreneurs and the kit is available in the market with the brand name of delstrip™. Presently the strips are being manufactured in the Technology Business Incubator (TBI) facility at ICAR NDRI, Karnal. Maltodextrin is an adulteration of recent time and is a hydrolyzed product of starch which is difficult to detect by existing methods. Unscrupulous people are taking benefit of this and adding maltodextrin in milk and various milk products. The developed kit is capable of detecting adulteration of milk products such as dahi, khoa etc with maltodextrin too. An exhibition on the theme of “Quality Milk For Healthy Life” was inaugurated by Dr. R.R.B Singh Director, NDRI said that milk is one of the most precious gift of nature which contains almost all the

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nutrients required to support a life and can be consumed by individuals of all ages. He said that adulteration of food products including milk is a menace in India and NDRI is working proactively to develop tools to tackle this menace. In this direction, a series of paper strip based tests have been developed by NDRI which can rapidly detect adulteration of milk with neutralizers, added urea, glucose, hydrogen peroxide, sucrose and maltodextrin.

International News

Report on the 10th visit of Indian delegation to

International Dairy Expo & Summit China 2017 held at Harbin

23 members’ delegation from Indian Dairy and Cattle feed industries visited the International Dairy Expo & Summit 2017 held in Harbin the Ice City of China from 21 – 23 April 2017. The delegation comprised Indian dairymen from all over India, experts in dairy & animal healthcare including Mr. Anil Sharma, Hon’ble Minister for Animal Husbandry, Government of Himachal Pradesh. The delegation was organized by InORBIT Tours Pvt. Ltd. and led by Mr. Om Prakash – Director InORBIT Tours Pvt. Ltd., who has been organizing Indian Dairy industry delegations every year from 2008 i.e. 10 years non-stop. On arrival in Harbin City, the delegation was invited as official guests of Govt. of Heilongjiang Province’s official Banquet which was attended by Chinese Ministers, Ambassadors and Consul Generals of many countries and leading personalities from international dairy industry. The Banquet concluded with speeches by Chinese and international dairy experts. The Indian delegation was also invited to the Official Opening Ceremony which was attended by the world personalities and exhibitors of International Dairy Expo & Summit 2017. The Organizers welcomed the In ORBIT’s Indian delegation and presented a kit containing the Catalogue of Exhibitors and informative materials for all delegates. At International Dairy Expo

& Summit 2017, 310 exhibitors from 20 countries demonstrated their machines, materials and technology. The summit was addressed by global experts on various aspects of dairy related issues. Business Initiatives: Many members of the Indian delegation initiated business enquiries with international suppliers of plant & machinery. Some members seeked representation in India. The Indian delegation also visited 2 of China’s largest Dairy Institute & Plants i.e. 1. Nestle Dairy Farming & Research Institute in Harbin. 2. Mengniu Dairy Plant in Beijing. The Indian delegation also visited commercial centers in Beijing, Shanghai and Harbin. The members expressed their satisfaction and thanked Mr. Om Prakash, for the extensive arrangements for their grand welcome, technical visits to dairy factories and the Indian food in all cities of China, which made them feel at home. Report about the International Dairy Expo in China Professionals both in China and across the world in Dairy Industry met in Harbin. International Dairy Expo/China’17 opened in Harbin International Exhibition

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Center. As one of the most significant annual grand events in Chinese dairy industry, the scale of the exhibition of this year had reached 25000sqm. 310 exhibitors from 20 countries had participated in the expo, who displayed their advanced technology and products in the world for the buyers and delegates, with their exhibits covering the whole dairy industry chain, including cow cultivation, farm equipment and facilities, processing and packaging, ingredients, various kinds of dairy products, etc. China International Dairy Expo, included 6 national pavilions representing France, the United States, the Netherlands, Germany, Russia, and New Zealand. Chinese Dairy Industry Technology Innovation Alliance Zone, China State Farm Dairy Alliance Zone, Dairy Processing Technology Achievements Zone, China Dairy Suppliers Union Zone, and Domestic Ranch Fresh Milk Bar Union Zone revealed their products and achievements from different perspectives. 7 from the 10 Biggest Enterprises in World Dairy Industry participated in the Expo, Visitors from 36 countries and Regions gathered in Harbin to discuss the development of the Dairy Industry Visitors from 36 countries and regions had a great gathering in Harbin, including Canada, China, France, Germany, Holland, India, Ireland, Italy, Korea, New Zealand, Russia, UK, USA & New Zealand. On-site Activities meticulously presented, from Cultivation, Processing to Market Consumption Exhibitors and visitors joined in the activities presented by the Organizers, besides the visit, exchange, negotiation, purchase and trade cooperation. Ice City Harbin Welcomed Prestigious Experts and Experienced Professionals in the Dairy Industry From breeding to feeding and illness, from

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farm management to the innovative development of dairy equipment, the experts from the chain of cultivation prepared dozens of both high-end and practical professional forums. Nearly hundreds of experts, scholars and professionals with rich farm experiences in the dairy industry shared their knowledge and research achievements with the show delegates and visitors during the show period. Innovation and Quality Safety of Dairy Industry Focused Forums on the chain of dairy product processing and market focused on innovation and quality safety of dairy products. Detailed and in-depth discussions on the topics of infant and child powder, cheese, yoghurt, pasteurized milk, Goat Milk, especially, the interpretation on laws and regulations of quality safety, the development of testing technology, was covered by 6 seminars and from different perspectives. Calf area arranged on-site, Safety of Dairy Industry emphasized Calf Area was arranged on-site. Some healthy and lovely dairy cows and goats met visitors and staff from media. They showed how the cows and goats on the farm are raised carefully. Under the safe and hygienic feeding environment, the quality of milk produced by cows and goats is high, nutritious and healthy. China Great Wall International Exhibition Co. Ltd., hoped that consumers and media staff could see themselves and gained confidence in domestic dairy products, hence the green image of the Chinese dairy industry was rebuilt. Events: International Dairy Summit 2017 *“Wisdom-Pooling” Dairy Farm– Change Dairy Life & Product with New Technology. *Breeding disease Prevention and Treatment in Dairy Cattle *The way of Israel Dairy Farm to Profitability *Dairy Products Quality and Dairy Product Test Technology *Adapt to the adjustment of agricultural structure advancing the application of new animal husbandry machinery and equipment *Science of Early Stage of Life, Nutrition and Health Demolish traditional concept, Cure cow mastitis scientifically *Nestle DFI Farm Management with NCE *National Dairy Replacements Evaluation Report Release Conference *Academician (experts) Forum – Universal

Education on Healthy Life *Cow Feed & Nutrition *Evolution of farm mode and Development of guest ranch. *Technology integration promotion council of advancing quality and efficiency on cattle feeding *Infant Formula Milk Powder Registration System and Market New Pattern *Experience-sharing session of The annual Best Farmer in China dairy ceremony. Comments by Mr. Anil Sharma Hon’ble Minister for Animal Husbandry Himachal State – India - Mr. Anil Sharma expressed his satisfaction for his visit to International Dairy Expo & Summit 2017. He commented about organizing World Dairy Event by China and its capability to get the participation of more than 20 countries to exhibit their machines, materials and technology. He expressed that India being the leading producer of milk and dairy products can adopt certain technologies offered by the world leaders in dairy and dairy products. He was also interviewed by Chinese Television. Mr. Anil Sharma also expressed his heartiest satisfaction for professionally organizing the tour

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65 and congratulated Mr. Om - Director, In ORBIT Tours Pvt. Ltd., for his dedicated efforts every year to benefit the Indian dairy industry. Comments by Shri. Ganpatsingh Solanki – Vice Chairman, Baroda Dist. Coop Milk Producers' Union Ltd., - Mr. Ganpatsingh Solanki – Vice Chairman, Baroda Dist. Coop Milk Producers' Union Ltd., also spoke about the efforts put by InORBIT Tours and especially by Mr. Om Prakash to organize the tour in a professional manner in China, where language and Indian food both are problems, but because of Mr. Om Prakash’s expertise the Indian delegates felt at home. He thanked Mr. Om Prakash for excellent arrangements of Hotels, Indian food, technical visits and for the exceptional experience of China. On behalf of his team he expressed his desire to participate in future similar tours to other countries. More information can be obtained from Mr. Om Prakash – Director, In ORBIT Tours Pvt. Ltd., Tel: 022 24229281/40436868 email: omprakash@inorbittours.com

International News

IDF World Dairy Summit

ide-ranging and engaging, the IDF World Dairy Summit 2017 programme will provide a comprehensive examination of all the major issues making a difference to the world of dairy, as well as insights into how delegates can, in turn, make a difference to the sector’s future. The conference opens on Monday 30th October with the World Dairy Political/ Agricultural Leaders Forum. This brand new Forum will provide a platform for the political and agricultural leaders that will shape the sector’s operating environment. This will be followed by the World Dairy Leaders Forum which will see senior company leaders discuss their vision for the sector’s future. The IDF will then showcase its work in the IDF Forum in the afternoon. Parallel conference sessions will then run from Tuesday 31st October to Thursday 2nd November. Authoritative speakers from around the globe will cover the full spectrum of subjects from economics to antimicrobial resistance. Each session will include panel discussions with recognized sector leaders and delegates

will be given ample opportunity to participate and contribute to the debate. All conference sessions will take place entirely in the Belfast Waterfront, one of Europe’s foremost conference facilities, scoring consistently high in the AIPC Apex Award for World’s Best Convention Centre. The event will then conclude with a number of technical tours on the Friday. As always, the IDF WDS 2017 will be the foremost international conference event for all dairy sector leaders and stakeholders. Dairy Policy and Economics The Dairy Policy and Economics conference session will focus on four complementary themes. The first session will deal with trade policy. Brexit and the advent of the Trump administration has created a new trade policy landscape that will present significant challenges and opportunities for all major dairy trading nations. At the same time the slowing of the multi-lateral trade liberalisation process has resulted in a proliferation of bilateral agreements which has created a new competitive environment in the world market. The second theme will be the dairy price

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cycle and price risk management. Whilst volatility is a certainty, the existence of predictable price cycles in the dairy sector has yet to be established. Futures contracts have shown themselves to be a powerful tool to manage price risk in the dairy sector in the USA, but have yet to fully establish themselves in the EU. The third theme will be the farm restructuring. Whilst self-evidently a reality of the sector the relative importance of the fundamental drivers behind this process remain opaque. The last session will explore new market opportunities around the world with a particular focus on Africa. Delegates will receive presentations from topline speakers that will give them a comprehensive insight into these critical areas of dairy policy and economics. Delegates will also be given the opportunity to quiz and interact with the presenters to ensure that their points of interests are thoroughly addressed. Dairy Science and Technology Conference The IDF WDS 2017 Dairy Science and Technology Conference will focus on the unique characteristics of the dairy matrix and will explore the benefits and opportunities associated with it. Research is increasingly pointing to the idea that the health effects of dairy products extend beyond the benefits of the individual nutrients contained in them, and rely

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instead on the combination and interaction of the nutrients within the food matrix. Speakers from all over the world will present the latest research in the area of the dairy food matrix and its components, as well as how the matrix is affected by current and novel processing technologies. Presentations will also focus on the effect of the dairy matrix on nutrient digestion and key metabolites in the body. The wide range of topics discussed during the day will provide the basis for a stimulating Leaders’ Forum at the end of the afternoon, in which R&D leaders from dairy companies worldwide will discuss the commercial applications of the science, as well as opportunities for the future. Delegates attending the conference can expect to gain a deeper understanding of the unparalleled features of the dairy matrix and to be brought up to speed with the latest science and research development in this area. Delegates will also have the opportunity to interact with the speakers and with the leaders to discuss what the future holds and to exchange perspectives from different regions of the world. Food Safety Conference The IDF WDS 2017 Food Safety Conference will revolve around new areas of interest in food safety and authenticity and the potential of innovative technologies for improving the food safety, quality and integrity of dairy products around the world. Leading authorities from the United Nations, academia, research institutes, government departments and the food industry will explore how the dairy sector can make use of the latest science to improve controls along the supply chain. The Conference will focus on threats and opportunities in the area of food authenticity, will explore the potential associated with whole genome sequencing and its application in the area of food safety, and will outline the emerging trends and issues related to environmental contaminants in milk and dairy products. Key speakers from the day and food safety leaders from the food industry will participate in an interactive Q&A session at the end of the afternoon, during which delegates will have the opportunity to challenge the panel and share perspectives on the topics discussed.

Delegates can expect to receive cutting edge presentations in the area of food safety and authenticity, as well as stimulating discussions with speakers and other delegates. Animal Health and Welfare The conference is focusing on three main areas, Welfare, Breeding and Disease Control, with an interactive Leaders forum at the end of the day. The Welfare session is looking to cover Cow Personality and behaviour traits, the Application of the OIE Animal Welfare Index in a practical environment and Animal welfare as seen from the customer’s perspective. The Breeding session is looking to cover the many developments that are happening to produce robust and sustainable cows to ensure that dairy remains an economic and productive part of the world’s diet for years to come. With genomics, gene editing and gene data all being used to make a difference in dairy. The Disease control session will discuss the Global view on disease control, eradication and management. To bring things down to a more local level there will be a presentation on the control and eradication of BVD in Scandinavia. The third topic is the use of Social psychology to get farmer buy-in to disease prevention and control. Delegates will come away from this conference with a better understanding of the dairy cow and the importance of breeding the right cow and keeping her in the best environment for the economic benefit of the farmer and the consumer. Antimicrobial Resistance The growth of antimicrobial resistance is a major threat to human and animal health. The dairy sector has to make its contribution to addressing this challenge. However the science behind the relationship between on farm practices and the threat to human health is not

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67 fully appreciated by all parties. The huge diversity of dairy farming systems around the world and the enormous differences in regulatory environments makes the development of concerted action by the sector particularly difficult. Nevertheless the dairy sector is alive to the issue and has made great strides at the international and institutional to help the industry move forward. The half day conference session will provide a comprehensive oversight into these issues from a range of top quality speakers. Delegates will also have the opportunity to interact with the presenters to ensure points of concern are raised and addressed. Marketing The theme of the Marketing Conference is “Dairy marketing can make a difference”, and will have 4 sessions: Session 1: Dairy Marketing Leaders’ Forum, in which leading dairy marketers will share their thoughts on key issues for dairy marketing over the next 5 years. Session 2: Global Dairy Markets, which will reflect the work recently completed by an IDF Task Force. In particular, this session will look at consumer attitudes and behaviour in established dairy markets, large cities, and in rural communities. This session will also consider opportunities for dairy in food service and ingredients markets. Session 3: Sports Affinity Groups, which will build on the work of IDF’s IMP Group and GDP. One of the challenges in affinity group communication is content generation, and this session will draw on case studies and experience in communicating with elite, Olympian athletes. Session 4: Yves Boutannat IMP Trophy presentations. Nutrition Conference International experts in nutrition and health can join the World Dairy Summit for a day of presentations and discussion on ‘Life-course Nutrition: Making a Difference with Dairy’. At each stage of life, milk and dairy products make a contribution to unique nutrition requirements and challenges. As well as overviewing the basics, our speakers will focus on new research from each life stage.

The ‘early nutrition’ session will cover hot topics such as the importance of iodine during pregnancy on cognitive outcomes, new insights into the management of cow’s milk allergy, as well as the role of the infant microbiome in maintaining health. The importance of dairy intakes for children and teenagers may be familiar territory for many, but understanding how to communicate this with the rise of dairy alternatives, popular diets, and influence from celebrity and self-styled nutrition experts, is a challenge for nutrition professionals….and one which will be addressed at the World Dairy Summit. ‘Healthy Ageing: Making a Difference with Dairy’ promises to be an engaging session, covering the importance of dairy in adult diets for healthy ageing of muscle, bone, and cognitive health. The final session of the day will be the Nutrition Leader’s Forum, addressing how dairy can make a difference in combating global malnutrition, and how the dairy industry can help meet the challenge within the sustainable development goals set out by the Food and Agriculture Organisation of the United Nations. Delegates will get an overview of the importance of dairy consumption throughout the life course, and will also gain cutting-edge insights into hot topics in nutrition research, and the bigger picture challenges for the dairy industry. Farm Management The three main sessions for the Farm Management Conference are covering Information, Animals and People, with an interactive Leaders forum at the end of the day.

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The Information session covers the use of Big Data, Precision Technology and the Dairy Farm of the Future, where delegates will learn how all of the information that is being captured from the dairy herd is leading to many changes in the sector around the world and with many new developments in the pipeline. The animal session will be looking at the challenges of producing dairy around the world from feeding advice being delivered remotely, managing cows in challenging environments through to programmes to enhance the wealth and nutrition of farmers in developing countries. Attracting and retaining people in the business is a challenge for all farm managers so this session on Change Management and People Management will be an ideal opportunity to pick up some tips to have the best team to make a difference in dairy. Delegates should come away from this conference well equipped to get the best out of their cows and their team for the long term future of dairy. Sustainability The global dairy sector has led the agriculture in embracing the concept of sustainability and proactively working towards addressing its challenges and opportunities. But theory requires concrete practice for it to be realised. For dairy this means specific investment in actions throughout the supply chain. The sustainability conference session will therefore focus on examples from around the world on changes being put in place at the farm, processing, retail and consumer level.

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The day will start with leading examples of changes being made in farming practices which will be followed by the second morning session looking at efforts being made by dairy processors. The afternoon will then tackle retail sector and consumer behaviour. The session will address sustainability in its truest sense as a multi-faceted concept that embraces environmental, economic and social elements. Delegates attending the conference session will receive from speakers drawn from around the world a stronger appreciation of the steps taken by the sector to give the pursuit of sustainability real substance and to ensure that dairy can remain at the forefront of tackling the sustainability agenda. Emerging topics Conference The IDF WDS 2017 Emerging Topics Conference shines a light on up-andcoming areas of interest to the dairy sector and provides delegates with the latest on the science and technology that is creating new opportunities for the industry. The sessions will explore the hype around the use of dairy products for 3D food printing, the essential need for good cyber security in an ever-threatened technological environment, as well as the role of food additives in new technological innovations. This half-day Conference will challenge delegates with exciting new prospects and will provide the foundations for future discussions on these key and emerging topics.

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Dean Foods and KRAFT Macaroni & Cheese AnnouncePure Love Partnership DairyPure® Brand Milk and KRAFT Mac & Cheese Cook Up the Perfect Bowl Dean Foods Company and KRAFT Macaroni & Cheese announced today they are joining forces in a strategic collaboration, spotlighting Dean's DairyPure® brand milk and KRAFT Macaroni & Cheese (KMC). The partnership between the country's first and largest national fresh white milk brand and one of America's most iconic home-cooked dinners brings together the shared benefits the two brands offer: high quality, great-tasting kitchen staples consumers can feel good about serving their families. Dean Foods launched DairyPure in 2015, making it America's largest fresh white milk brand. Backed by its exclusive 5-Point Purity Promise,

DairyPure offers consumers across the country a fresh milk cold-shipped from their local dairy, with no artificial growth hormones and always tested for antibiotics. Also in 2015, KRAFT removed artificial flavors, preservatives and dyes from its famous Macaroni & Cheese recipe, while still delivering the same delicious taste parents and kids love. Together, in 2017, Dean and KRAFT Mac & Cheese will launch a Pure Love cobranded ad campaign, including in-store POS, special product labels and tags, IRCs and digital marketing and social media content support. Given the significant scale of both brands, coupled with their natural synergy, the partnership will provide a strategic growth opportunity for both. "With its 5-Point Purity Promise, DairyPure brand milk delivers fresh, nourishing and quality dairy products to American families, pure and simple," said

Ralph Scozzafava, CEO of Dean Foods. "We are proud of that, and our partnership with KRAFT brings the DairyPure promise to millions of consumers who love Macaroni & Cheese." “Kraft Macaroni & Cheese has been a family favorite for over 80 years. We gave consumers even more reasons to love it last year with our move to no artificial flavors, preservatives, or dyes. Dairy Pure brand milk is the ideal partner to make a tasty bowl of Kraft M&C," said Jessica Gilbertson, Head of Meals at Kraft Heinz. Source : Dean Foods Company (U.S.A).

Herd size rises in China

ESPITE THEIR large herd sizes China is still a long way from becoming self-sufficient in dairy and it is highly unlikely it ever will, says Matthew Smith, Alltech’s vice-president Asia Pacific. That is one of the messages gleaned from a visit by 14 Alltech China representatives last month to look at New Zealand dairy farms. Smith said commercially milked cows in China would be about four million. “I think that is a positive message because it shows you quite clearly that the Chinese dairy industry would still be a long way from being self-sufficient in terms of cow numbers, the number of farms and the availability to grow forages,” he said. Smith said his visiting colleagues do on-farm audits in China to evaluate efficiency and look closely at nutrition. They are involved in the “sea change that is happening in China in terms of consolidation of farms”. Anything less than about 600 cows in China would be considered a very small farm now. All cows are indoor fed using

silages and grain. “There are a number of people who have tried for years to put our system in place with grazing cows but the weather has not allowed them to do that in terms of making sure they get forage all year round,” he said. “The message that came home to me – and I worked in China for a number of years – is that for a business to remain profitable or relatively profitable, scale is the only way to go. We have seen a huge increase in China in the numbers of

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cows on farm as opposed to the number of farms. The number of farms is in rapid decline.” While the dairy herd in terms of milking cows would be around about four million, in China it is difficult to get accurate figures. “That’s why it is always good to try to travel to the country or spend time with people who are working in the country.” They visited farms in the Waikato, a large goat milking enterprise in Karaka, some larger Northland dairy operations and spent time on a marae. “They were very excited about looking at the goat operation because it is very high value milk in the stores in China, it is very much sought after – currently there is no milking goat herd in China. That is a niche market that will continue to grow here and in Australia. It is not necessarily a replicable model in China.” “I am sure that trend for specialisation will continue.” Source: www.dairynewsaustralia.com.au

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World Celebrated World Milk Day Following the hashtag: analysis on engagement and events Here are some of the great events which took place around the world:

orld Milk Day was an incredible success taking place over 42 hours around the world with 587 events in 79 countries reaching 402 million impressions on #World Milk Day and a total of 625 million impressions for the month of May on social media. The Day started on June 1, 2017, with dairy farmers raising their glass of milk at sunrise in New Zealand and ended with the sunset in Hawaii. Milk and all dairy products were celebrated by farmers, staff, families, chefs, nutritionists, doctors, academics, and politicians raising their glasses to the benefits of milk in their lives. Besides individuals raising a glass, World Milk Day events included open houses at dairy farms, milk donations to schools, contributions to food banks, photo contests, sports competitions, fairs, dance shows, parties, nutrition conferences, tastings, exhibitions, food carts, and milk bars. These wonderful activities were organized by thousands of people, dairy farmers, cooperatives, national dairy associations, schools, and nutrition groups. The #WorldMilkDay social media feed took over www.worldmilkday2017. com homepage with instant and live updates about all the news as they were being shared on social media with #WorldMilkDay and @worldmilkday. National campaigns took place in Nigeria with #MilkMatter, in France with #Levonsnotreverredelait, in the US, with #UndeniablyDairy and #JuneDairyMonth, in the EU with #MilkMoments. Dairy companies ran employee programs, such as “Pass the Glass” by Friesland Campina or the “Grass to Glass” campaign by Fonterra. On June 1, 2017, the world celebrated the important contributions of the dairy sector to sustainability, economic development, livelihoods and nutrition.

AFGHANISTAN: The Ministry of Agriculture, Irrigation and Livestock, FAO, IFAD, and the Ministry of Education hosted a series of activities, including a marathon, family runs, farm visits, concerts, conferences, contests, and seminars. ARGENTINA: A free music recital was held in Cordoba organized by Proyecto Vaso de Leche, which aims at fighting children malnutrition. The public was invited to donate milk powder to support the organization. AUSTRALIA: Dairy Connect and milk processor, Lion, launched “Milk Loves You Back” campaign featuring Hawthorn’s AFL star and Brownlow Medal winner Shane Crawford swearing by the nutritional benefits of fresh milk. CANADA: Dairy Farmers of Canada held a bilingual Twitter party. 23 events were held, including a picture contest from The Rajasthan Association of North America, who invited people to share a picture with friends or family consuming milk or dairy products. CHILE: Consorcio Lechero organized several events including a puppet show for 150 children, dairy product donations to charities, and a nutrition seminar for 120 medical professionals. COLOMBIA: Alqueria Colombia launched the Nutrition Factory (La Fabrica de la Nutricion) to contribute to children nutrition. 24,000 vulnerable children benefited from milk donations. DENMARK: Arla headquarters featured a milk bar headed by the nutrition team showcasing dairy products for their staff. They raised a glass and recorded a video. FRANCE: The French national association, CNIEL, released a commercial that played on June 1 on national TV. Open houses took place in many dairy farms across the country. GERMANY: 5 races, called “Fit with Milk”, took place in Bavaria with milk ambassadors (influencers and sports

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enthusiasts). In other regions, open houses and information events took place on dairy farms.

INDIA: 25 events took place in India alone. The Minister of Agriculture and Farmers’ welfare, Radha Mohan Singh, addressed a gathering at the National Kamdhernu and Gopal Ratna Awards in New Delhi and shared 3 posts on his Twitter account with 132,000 followers. “In India countless gallons of milk is poured on Shiva Linga in the Hindu temples as per the holy rituals”Credit: @chatorinikki INDONESIA: The Cattle Buffalo and Animal Husbandry Club of Padjadjaran University organized an awareness activity for the general public encouraging the daily consumption of milk. IRELAND: The National Dairy Council of Ireland launched a new sports nutrition booklet that explains how the nutrients in milk can assist in recovery after exercise. ISRAEL: Children celebrated Chavout, the Feast of Weeks, with dairy product baskets at schools. ITALY: The city of Bologna organized a milk drive in all the local schools, and the Embassies of India and Switzerland to the UN in Rome cohosted a Dining with Dairy Event. The Global Agenda for Sustainable Livestock, in conjunction with the Governments of Switzerland and India and the Global Dairy Platform, hosted a technical event at FAO to advance and improve dairy production. JAPAN: - Milk Association raised a glass with their staff. A photo essay also took place to promote the role of dairy farms. MALAWI: The University of Science

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74 and Technology held a ceremony with students and faculty. MAURITANIA: As part of Ramadan celebrations, a family held a reunion in Nouakchott serving date milk-shake for Iftar. MEXICO: The Secretary of Agriculture, Livestock, Rural Development, Fisheries and Food carried out a social media campaign on @SAGARPA_mx with videos, interviews and infographics. A public festival, cycling race, and donations of dairy products also took place. MYANMAR: Friesland Campina partnered with the Myanmar Football federation and healthcare professionals to raise awareness of milk. NEW ZEALAND: Fonterra organised a Photo competition. Winners were provided a year’s worth of milk supply. Staff, schools and public submitted photos of themselves ‘raising a glass’. Other events included a surprise dairy gift box giveaway to government officials, dairy farmers “Raising a Glass” to the sunrise, and more. THE NETHERLANDS: To celebrate World Milk Day on 1 June, FrieslandCampina created a fun video of employees, member farmers, and consumers ‘Passing the Glass’ around the world! NIGERIA: Arla Dano Nigeria ran activities including a social media

campaign with online influencers, bloggers, and artists, to encourage people to give milk to children for good nutrition. A series of celebrations took place at a stadium involving school children, and Arla staff in Lagos raised their glasses to milk. PARAGUAY: 5 and 10k running races called “Si a la leche” took place to raise funds for malnourished infants. RUSSIA: Omsk children painted trolley buses before they went on a city tour. Games, contests, and animations rewarded children with delicious and healthy milk prizes. SRI LANKA: Watawala Dairy Limited celebrated with a donation of milk and meals to the community, a musical show, a cricket tournament, and a marathon race. These activities were joined by a screening of videos of other World Milk Day events taking place around the world. SPAIN: A charity in Valencia, Kanguros_ LV, launched a solidarity campaign to collect milk for malnourished children called “1000x1000”. TANZANIA: Heifer International launched a school milk feeding program to boost the nutritional status of 10,000 children ages 9 and younger, who will be provided with fresh milk every day of the 210-day school year. UGANDA: SNV World organized a national nutrition and school feeding

day with 34,000 children as part of their Inclusive Dairy Enterprise project. UNITED KINGDOM: The Dairy Council of Great Britain issued the “milk manifesto” to national press signed by national experts from nutrition, dieticians, and medicine summarizing the evidence supporting the nutritional benefits of dairy products. Many other events took place including raise a glass, donations, contests, and fairs.

UNITED STATES: 280 events took place. Dairy Farmers of America celebrated by traveling across Kansas City with a group of dairy mixologists serving milk and cookies in the Mobile Milk Bar. DFA’s celebrations earned 20 PR mentions, including featured segments on all 4 network news programs! Kemps ran a surprise cow car in Minnesota distributing free half pints of milk. Many farm tours took place. VIETNAM: Dairy Vietnam, the country’s first International Milk and Dairy Products Exhibition, was held in Hanoi. Vinamilk brought school children to the event for many entertaining activities.

POST EVENT- SIAL

eld under the patronage of HH Sheikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister of the UAE, Minister of Presidential Affairs and Chairman of Abu Dhabi Food Control Authority and inaugurated by HE Sheikh Nahyan Bin Mubarak Al Nahyan Head of the United Arab Emirates Ministry of Culture, Youth, and Social Development, the three-day showcase witnessed a string of major onsite announcements. The 7th annual SIAL Middle East exhibition, the fastest growing event for the region’s food, drink and hospitality sectors, concluded on 7th December at the Abu Dhabi National Exhibition

Cuisine by SIAL competition • Record number of entries for the SIAL Innovation World Champions awards with a total of 150 new and innovative products

Centre (ADNEC) with a record number of visitors and deals worth billions of dirhams conclude. • Over 16,000 trade visitors attended industry showcase • More than 1000 chefs competed in the La

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• 30 country pavilions at the show SIAL 2016, which is organized in strategic partnership with the Abu Dhabi Food Control Authority (ADFCA). SIAL Middle East is part of SIAL Group, the world’s largest network of professional B2B food exhibitions which include SIAL Paris, SIAL China, SIAL Canada, SIAL ASEAN Manila and SIAL InterFOOD Jakarta.

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Arla adds €110 million in value

dded value milk products by Arla Foods UK successfully added £95 million (€110m) in value to the category in 2016, with 1.5 million shoppers trading up from standard fresh milk to an Arla branded product offering additional benefits, the company says. This trend is consistent across the total milk category, as five million consumers traded up to added value milk options in 2016 and is having a direct impact on performance. In 2015, the category declined £148m (€171m) but only £23m (€27m) in 2016, with improvement on pricing and retailers supporting new and existing add value milk. The change has been most noticeable with Arla’s portfolio, without it, the overall category would have declined £118m (€136m) in 2016. The £95m (€110m) is the value of all the sales of Arla’s value added milk in 2016, minus the value sales figure if they were sold at the price of standard fresh. Arla branded milk grew 12% in 2016 with launches of the award winning ArlaB.O.B, Arla Farmers Milk, Arla Organic Farm Milk and Arla Cravendale 250ml. In addition, Arla has worked closely with its retailer customers to provide greater choice for consumers, with products such as ASDA Vitamin D Milk and launched in 2015, Morrisons Milk for Farmers. Tomas Pietrangeli, Managing Director at Arla Foods UK, says, “Innovation is at the core of everything we do and it is fantastic to see consumers respond so well to it and change their attitudes to milk. “Milk has always been a nutritious staple for British consumers, but it is exciting to see people increasingly view it as more than that – a desirable, versatile drink suitable for different occasions and with different benefits. This is reinvigorating the category and driving value for our farmer owners.”

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76 Contd from. Pg 33

The acidification test indicates whether a sample contains bacteriophages/ inhibitory substances, which inhibit the growth of the tested/ used culture. One tube with milk is inoculated with the culture (control) and a second tube with the culture and the test sample. A delay in acidification of 0.05 pH units or more indicates inhibitory material, in most cases bacteriophages. Sterile filtrates for both the acidification test as well as for external tests are made by simple paper filtration of the sample and after that the clear filtrate is filtered through a 0.45 micrometer sterile filter. A quantitative spot test of bacteriophages is done on single strains only. A weighed impact of a defined culture consisting of several single strains can then be calculated. The objective of monitoring is to determine and maintain acceptable levels of bacteriophages and be aware of trends towards a higher level whereby a rotation of culture can be necessary. Acceptable means production can be done without any acidification delays and with acceptable product quality. Conclusion: When these elements in phage control are done as per above guidelines, a low and acceptable phage level over time can be reached. No production hassles, constant yield and constant product quality now become part of the daily routine Bibliography / References : Figure 1 : The Bacteriophages, Volume 1, by Richard Calendar Figure 2: Todar’s online Textbook of Bacteriology by Kenneth TodarPhd. 1: IDF (1991) Practical Phage Control, Bulletin No. 263, International Dairy Federation, Brussels. 2: Dairy Microbiology Handbook. The Microbiology of Milk and Milk products by Richard K Robinson

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Events

Month

July 2017

August 2017

INTERNATIONAL EXPO FOOD WORLD (15th to 17th) Chennai Trade Centre, Nandambakkam, Chennai, India www.salexpo.org

HKTDC- FOOD EXPO (17th -21st) Hong Kong Conven�on & Exhibi�on Centre www.hktdc.com/hkfoodexpo

August 2017 Packplus (3rd to 6th ) Pragati Maidan, New Delhi, India.

www.PackPlus.in

DAIRY UNIVERSE INDIA 2017 (21st-23rd) Praga� Maidan, New Delhi www.dairyuniverseinda.com International Food Tech

(21st to 23rd August ) New Delhi, India Website: www.foodtecindia.com

September 2017

September 2017 FOOD INGREDIENTS ASIA (13th -15) BANGKOK Interna�onal Trade& Exb Centre Bangkok, Thailand www.ﬁasia.com PPMA Show (26th– 28th) NEC Birmingham www.ppmashow.co.uk Tea & Coffee World Cup (26th -28th) Singapore www.tcworldcup.com October 2017

FOODpro 2017Chennai Trade Centre, (7th-9th) Chennai , India www.foodpro.in Annapoorna Mumbai

(14th to 16th September) Bombay Exhibition Centre in Mumbai, India. www.tradefairdates.com

Indian Ice Cream Congress & Expo (15th to 16th) Bombay Convention & Exhibition Centre, Nesco, Goregaon (E) Mumbai Website: www.indianicecreamcongress.in

October 2017 (26th-28th) indiapack pacprocess Praga� Maidan, india www.pacprocess-india.com November 2017 Food Tec Expo (9th-11th) Bombay Exhibi�on Centre , Mumbai www.ubmindia.in IDEA 23rd– 24th Indian Dairy Engineers Associa�on Pune

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WORLD DAIRY EXPO (3rd -7th) Alliant Energy Centre, Madison, WI USA www.worlddairyexpo.com ANUGA (7th -11th) Cologne , Germany www.anuga.com FOOD WEEK KOREA (25th-28th) Coex Exhibi�on Centre, Seoul, South Korea. www.koreafoodweek.com IDF WORLD DAIRY SUMMIT BELFAST (29th– 3rd) www.ﬁl.idf.org/idf-world-dairy-summit2017 SWOP- Processing & Packaging (7th-10th) Shanghai New International Expo Centre, China www.mds.cn

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Opportunities in China’s cheese market China’s cheese manufacturers are advancing fast to get their share in the high-speed cheese market in China, according to CCM research.

ccording to CCM’s research, the cheese industry in China saw increasing demand for cheese during 2015-2016. The main sales channels are food services such as hotels, catering and the baking business. Even though the retail sector only accounts for 24% of sales in the whole Chinese cheese market, the future looks encouraging. According to the Cheese China 2016, report by Mintel, retail sales are expected to rise at a CAGR of almost 13% until the year 2021. Hence, the amount of distributed cheese would end up at 38,830 tonnes. Moreover, looking at countries around China, like Japan and Vietnam, the potential for cheese sales in retail stores is shifting. Those two Asian countries already have a retail portion of cheese at about 41% 73% respectively.

of milk is constantly going down, the cheese business is a promising upmarket diversification. Currently, only a few Chinese manufacturers have a share in the cheese business by delivering to brands such as McDonald’s, Milkana and Savencia.

Nevertheless, China is also exporting cheese to several countries, even if the main destination is a short hop to nearby Hong Kong. Surprisingly, Italy is the second ranked destination of cheese from China, according to the data from China Customs. For Chinese manufacturers, the jump into the cheese business could be an effective way out of the sluggish dairy market in China. While the purchase price

After a strong infiltration of cheese into China’s first and second tier cities in previous years, the most attractive and fast growing opportunities for manufacturers and traders can be found nowadays in the third and fourth tier cities in China. Bakeries and western style restaurants are witnessing a surging demand for cheese from their customers. China’s dairy manufacturers have discovered the expanding interest and started to get into the cheese business as well. However, according to CCM, about 90% of cheese in China is still imported, which is about 90,000 tonnes yearly. The main exporting country for China’s cheese demand remains New Zealand with a quantity of cheese exported to China of more than 51 million kg and a value of over US$216 million (€204.7m). The second ranked is Australia with almost 20 million kg and the US is third with almost nine million kg. The top exporting countries of cheese and curd in China 2016 show that China’s cheese import is highly concentrated in the Oceania region, while European countries, which are traditionally famous for cheese products, are trailing behind.

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The supplying Chinese companies are Bright Dairy & Food and Beijing Sanyuan Food, according to CCM. Other companies in China are putting effort into the development of cheese products to get their share in this rising market. One example is Yili, which is developing a cheese product for the Chinese palate. China Mengniu Dairy is working on launching its own cheese products as well.

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