CHAPTER-III AN OVERVIEW OF MADURAI DISTRICT CO - OPERATIVE MILK PRODUCER S UNION LIMITED

Transcription

1 CHAPTER-III AN OVERVIEW OF MADURAI DISTRICT CO - OPERATIVE MILK PRODUCER S UNION LIMITED 3.1 Introduction In a country like India, where a large population is dependent on agriculture for livelihood, the dairy industry assumes special importance. Though the dairy industry was not unknown before independence, it was only after independence that the real growth in the industry was achieved under the various five year plans. A prestigious project named Operation Flood enabled co-operative dairying in India to be a model for many countries of the world. The MDCMPU monitors the activities of co-operative dairying in the two milk shed areas of Madurai and Theni districts after bifurcation also and it has seven zones namely Melur, Vadipatty, Chellampatti, Usilampatti, Peraiyur, Theni, Andipatty. As the study area constitutes the Madurai and Theni district, the profile of the Madurai Aavin Union operating in the district is discussed in this chapter. The profile of the Union is analysed in terms of its procurement and marketing of milk, production and sale of milk and milk products and its infrastructure facilities. The Union s participation in co-operative societies and the provision of various facilities to the milk producers through those societies are also explained. In this chapter both primary and secondary data were constituted. Records maintained by the District statistics office and the office of the Deputy Director, Animal Husbandry have provided the details regarding the study area. The data for writing about the Union have been collected from the records maintained by the Department of Management Information system of the Union and the unpublished reports of the various other departments of the union. Discussions with the officials of the Union enabled the researcher to elucidate the various issues in this chapter. The primary data have been analysed with the help of classification of tables using percentage and descriptive statistics for the attitude towards dairy co-operatives and services rendered by the society. The secondary data have been analysed with the help of Statistical tools like averages, percentages and Growth Indices. To make the analysis meaningful, compound 50

2 growth rates and trend values were computed by using semi-log model for the variables studied. 3.2 Dairying in India India dairying is emerging as a successful industry. India represents one of the world s largest and fastest growing markets for milk and milk products due to the increasing disposable incomes among the 250 million strong middle class. The world dairy is zooming on India for its rapidly growing markets that promise the moon. The changing international dairy trade pattern, following GATT and the emergence of the World Trade Organisation (WTO), offer to the Indian dairy industry an opportunity to take its bow as an exporter. India s enthusiasm to integrate with the world economy is reflected in technological upgradation, professional excellence and cost- effective approach. In India, dairying occupies a prominent place in rural life and provides not only a subsidiary occupation and better nutritional standards, but also a source of organic manure and draught power. Though the contribution of overall agriculture to the Gross Domestic Product (GDP) of the country has declined during the last decade, the contribution of livestock sector to the Gross Domestic Product has improved from about 6 to 8.5 percent. It is also pertinent to note that milk is the single largest contributor in the agriculture sector to the national Gross Domestic Product. The growth of dairying in India with the total milk production of 74.3 million tonnes and per capita milk availability of 214 gm/day has been a commendable achievement and well recognised. The Indian dairy sector is vibrant with an exciting future and the world dairy industry is also zooming on India for its rapidly growing markets Origin of Milk Co-operatives in Tamilnadu Milk co-operative societies were organised in Tamil Nadu by the State Cooperative Department in India s first co-operative dairy with processing and marketing facilities was established at Ayyanavaram in Chennai city in Book Reviews, Indian Journal of Agriculture Economics,vol.53,No.1, Jan-Mar,

3 This was followed by the establishment of milk co-operatives in Coimbatore, Madurai, Trichy, Tanjore, Ooty, Cuddalore and other parts of Tamil Nadu. The Dairy Development Department was established in It embarked upon a large scale development activity. With the aid from New Zealand and under Colombo Plan, a cattle colony at Madhavaram and also dairy to process 50,000 litres of milk per day was established in Later another dairy to handle 50,000 litres of milk per day was established in Madurai in 1967 with the assistance from the United Nations International Children s Emergency Fund (UNICEF). Further, a large number of chilling centres was also established and organised in the marketing of milk in Chennai and Madurai cities. The commercial activities of the State Dairy Development Department were taken over by the Tamil Nadu Dairy Development Corporation in The corporation s activities grew in volume and in variety during these years of its operation and it became a major change agent under the Operation Flood-I programme. According to 1977 livestock census, the cattle population was about 10.5 million of which 12 per cent were lactating cows. In addition, the State had 2.9 million buffaloes of which 30 per cent were lactating. Buffaloes formed 25 per cent of the total bovines in the country of which 15 per cent was in Tamil Nadu. The buffaloes account for nearly 66 per cent of India s total milk production. 3.4 Progress under Operation Flood Programme in Tamil Nadu The Operation Flood-I programme, was started in July A dairy with a capacity of 2 lakh liters per day was set up at Ambattur. A feeder balancing dairy was started at Erode with two chilling centres in Sankarandampalayam and Sathyamangalam and a cattle feed plan in Industrial Estate in Erode were set up. Centres at Villupuram and Chinnasalem in South Arcot District were established; a powder plant of 10 tonnes per day was commissioned at Madurai Dairy and a Nucleus Jersey Farm with imported animals has been set up at Ooty in Nilgris District to supply quality semen. A total sum of Rs crores was spent during the period of Operation Flood-I programme. 52

4 A review of the growth of milk societies in shows that there were 3208 societies in Tamil Nadu, which constituted 20 per cent of the societies in Tamil Nadu, which stands second to Maharashtra in organising village milk producers co-operatives. During Operation Flood-II programme period an additional 1462 Anand pattern societies were organised by enrolling an additional 1,80,390 members. The milk procurement was also increased from 3,02,500 litres to 5,22,440 litres per day. The construction of a new dairy in Salem with the capacity to handle one lakh litres per day and a new chilling centre at Thiruvannamalai were completed; Under the drought prone area programme, a new dairy of one lakh litre capacity, a powder plant with the capacity of producing 10 tonnes milk powder per day and a buffalo frozen semen station at Chithode in Erode were completed. With the Operation Flood Programme and International Development Agencies (IDA) aided projects in operation in Tamil Nadu, Dairy Co-operatives have been developed at a much faster rate. By the end of December 1986, Tamil Nadu had 5626 Milk Producers Co-operative Societies at the village level, 16 milk producers unions at the district level with 28 chilling centres and a federation at the State level. It was also envisaged under Operation Flood-III programme to increase the capacity of 9 dairies from 6.98 lakh litres per day to lakh litres per day by commissioning two more dairies in addition to the expansion of the existing dairies. The capacity of the metro-dairies would be raised to 7.75 lakh litres per day from 4.25 lakh litres per day. 2 Thrust on the Operation Flood-III is to initiate policies and steps to increase milk production and procurement to match demand and to build necessary infra-structure facilities for processing and efficient distribution network. New three dairies at Madras, Trichy and Villupuram were established with a handling capacity of 4 lakh litres, 1.5 lakh litres and 1 lakh litres per day 2 Ramanujam.K.N and T.saroja, In Tamilnadu Dairy Development, Tamil Nadu Journal Of Cooperation, December,1989, vol.81,no.6,pp

5 respectively. The existing dairies were expanded in Ambattur from 3 lakh litres to 4 lakh litres per day. In Madurai from 1.5 lakh litres to 2 lakh litres per day, in Coimbatore from 1 lakh litres to 2 lakh litres per day. New chilling centres were established in Theni, Perambalur, Karur, Namakkal and Kodaikannal. In Tamil Nadu, Co-operative dairying has also paved the way for the economic emancipation of women in the villages. Dairies are operated and managed by women themselves. In Thanneerpandal Villages in Periyar District the concept of Micro Dairies has been introduced to make dairying accessible to small and marginal farmers. The impact of dairy development in the rural economy of Tamil Nadu is great and wonderful. The dairy co-operatives are the main springs for this rural development. 3 In Tamil Nadu there are `17 districts Dairy co-operatives are run in the Brand Name Aavin. The Functional societies of each Union as well as women societies in each district are shown below in table 3.1. Table 3.1 Functional Societies in Tamil Nadu S.No Name of the Union Functional Societies Women Societies 1. Kancheepuram-TVR Villupuram Vellore Dharmapuri Salem Erode Coimbatore Niligiris Madurai Nirmal Singh. Operation Flood phase III in Tamil Nadu, Tamil Nadu Journal of Co-operation, vol.83,no.1,april, 1991,pp

6 S.No Name of the Union Functional Societies Women Societies 10 Dindigul Trichy Tanjore Pudukkottai Sivagangai Virudhunagar Tirunelveli Kanyakumari Total Source: Unpublished records of the Union The table 3.1 shows that the total functional societies in Tamil Nadu are 6,978 societies in Out of total dairy co-operative societies, 1305 women societies are functioning. There are 794 Dairy Co-operative societies are functioning in Madurai Union. Out of total societies, 142 women societies are functioning in Madurai and Theni districts. 3.5 Profile of the Madurai Aavin Union In Tamil Nadu, the apex body of the co-operative dairy industry is the Tamilnadu co-operative dairy industry is the Tamilnadu co-operative milk producers Federation Ltd., Chennai. Throughout the state there are 17 districtlevel Unions to cater to the needs of the various districts. The Madurai District Co-operative Milk Producers Union Ltd., is the key institution in bringing about all-round development in milk production and milk marketing by rendering services to the primary milk co-operative societies situated at various villages in Madurai and Theni Districts. All the records that are maintained by this Union have the combined data for the two milk-shed areas of Madurai and Theni Districts. 55

7 The Madurai District co-operative milk producers Union Ltd., has been functioning since It has a modern dairy with technological facilities for processing of milk and milk products. The Union has been brought under the operation flood project since The main object of this scheme is to replicate the Anand pattern of three tiers structure of co-operatives and thereby to bring about a white revolution. The Union has a well-designed organization structure. The supreme authority of the Union vests with the General Body. The presidents or delegates of the affiliated primary co-operative societies represent the members at the General body. The Presidents or delegates of the affiliated primary co-operative societies represent the members at the General Body. The business of the Union is professionally managed by the Board of Directors consisting of a Chairman, 8 Directors elected from among the members of the general body and 6 Directors nominated to represent the NDDB, Department of Animal Husbandry and other related institutions. The General Manager, appointed by the Government, is responsible for the day-to-day administration of the Union. The various departmental heads assist him. The Union functions through the Department of plant and maintenance, the Department of quality control, the Department of marketing and the Department of procurement and inputs is mainly associated with the village level dairy co-operative societies and serves them through nine procurement teams stationed at Uthamapalayanm Theni and Andipatty in Theni District and Vadipatty, Usilampatti, Melur, Thirumangalam, Chellampatty and T.Kallupatty in Madurai District. The Union operates with the aim of uplifting the status of the members of the primary co-operative societies; especially those below the poverty line, by ensuring a reasonable price for milk supplied by them. It also aims at catering to the needs of urban consumers for milk and milk products at reasonable prices by eliminating the private vendors from the marketing field. The Union is engaged in many activities to achieve its objectives. They are the organization of village level dairy co-operatives, the procurement of milk, pricing and payment for milk, 56

8 processing of milk and milk products, marketing of milk and milk products, supply of inputs such as artificial insemination, veterinary services, supply of cattle feed and other developmental programmes Organization Structure The Aavin has three-tier structure, namely State level federation, District level Union and Village level Society. State Level Federation The State level federation is named as TamilNadu co-operative Milk Producer Federation (TCMP), which framed policies, draft procedures and even determines the price for all the products, in the state of TamilNadu. District Level Union The District level Union is named as Madurai District Co-operative Milk Producers Union Ltd (MDCMPU) receives milk from societies, which are chilled, processed and distributed to the public through milk booth outlets. Village Level Society The village level society is called as the Milk producers Co-operative Society (MPCS), which procures milk from the farmers of several villages and transports the same to district level in Madurai Union. It has 804 Societies at village level Objectives of the Organization To uplift Socio-economic status of rural milk producers by offering reasonable price and extending marketing facilities for milk in city and rural areas. To cater the disserting urban consumers need of milk and offer pasteurized, homogenized milk at competitive prices. To provide the hygienic and standard milk to the urban area in order to sell the extra surplus milk at reasonable price. To promote rural economy by means of Co-operative services. 57

9 3.5.3 Functions of the Union a) Formation of milk producer s society at village level. b) Collection of milk from the members and paying remunerative price to the society. c) Processing the purchased milk at dairy and produce milk and milk byproducts like Butter, Ghee, etc., d) All Dairy welfare benefits are monitored by the Union Services rendered by the Union to the Society A) Collecting milk throughout the year without any restriction. B) Offering fair price for better quality. C) Payments of milk cost once in 10 day and three bills for a month. D) Educating the producers all modern techniques related with the Dairy development activities. E) Providing extension practices for clean milk production Membership Eligibility The village should not have any, already existing functioning MPCS and minimum 25 producers must be in a village. There will be 11 Board of Directors, which consists of 33 % women and 18% for SC/ST. The member should not be below 18 years. The MPCS should be registered by Deputy Registrar (Dairying) of the concerned District Year of Establishment The Madurai Aavin was established in the year Aavin was established by the Government of Tamil Nadu. The Foundation stone was laid by Dr.S.RadahaKrishnan, the President of India. The Madurai dairy (UNICEF aided) was inaugurated by Smt.IndraGandhi, in January 1967, under the presidentship of Sri.M.Badthavatsalam, B.A., B.L., Chief Minister of TamilNadu. Aavin was owned and established by the Government of Tamilnadu. It is a public Limited Company under Co-operative societies act. The nature of Madurai Aavin Union is to collect milk from the societies and to process and supply it to the public through booths. 58

10 3.5.7 Awards Madurai Aavin Union has got the Shield Award for the best functioning District Union both in State and District level for the year and 1996&2007. Aavin has also received the award for the best Dairy &Food processing industry in India level from the National productivity council, New Delhi in the year Milch animals under Co-operative Ambit The increase in procurement of milk is also attributable to the increase in the bovine population of the members of the village-level societies. The members enjoy loan facilities and subsidies which enable them to buy more milch animals. Table 3.2 has given the details of milch animals under co-operative Ambit during a period of 10 years from Table 3.2 Milch Animals under Co-Operative Ambit Year No. of. Cows under Co-operative Ambit Growth Indices Source: Unpublished Records of the Union It is cleared from table 3.2 that there is a constant increase in the number of cows brought under the Co-operative ambit. Table 3.3 gives the trend and growth rate of the number of cows brought under the co-operative ambit. Table 59

11 3.3 gives the trend and growth rate of the number of milch animals under cooperative ambit from Table 3.3 Trend and Growth rate of milch animals under co-operative ambit Model Value of Value of Compound Value of R 2 constant Coefficient Growth Rate Semi-log Source: Computed data It is seen from table 3.3 the number of milch animals under co-operative ambit has recorded a positive growth of 69 percent during the study period. 3.7 Pricing of milk In the Co-operative dairy industry it is the federation which is the apex body at the state level that fixes the price payable to milk producers of the state. In TamilNadu, the Tamil Nadu milk producers federation, with the approval of the state Government, evolves a pricing system which is remunerative to the milk producers and all the 17 district-level Unions in the State automatically follow this latest revised milk procurement price is with effect from 16 th February 2011 at rate of Rs 20 per litre for cow milk, of which the Government is Rs and the remaining Rs is borne by the dairy co-operatives. 3.8 Procurement of Milk The Madurai Aavin Union has milk plants to handle 1.5 Lakh litres of milk per day from the dairy Co-operatives. Table 3.4 shows the average procurement of milk per day from the societies over a period of 11 years from

12 Table 3.4 Procurement of Milk from Societies Year Procurement of Milk (In litres per day) Trend Value Source: Unpublished Records of the Union It is inferred from Table 3.4 that the quantity of milk procured over the various years there is a constant increase in the quantity of milk procured from the dairy Co-operative Societies. The increase in the procurement price has motivated the milk producers to sell all their milk to the dairy co-operatives. The Union not only procures milk from the dairy co-operative societies in its area of operation but also procures milk from the neighbouring unions. The neighbouring unions who have surplus milk send their milk to the Madurai Aavin Union for conversion into milk products. In 2010, there is a decrease in the procurement of milk, due to the upcoming of Private dairying. 61

13 Source: Computed data 3.9 Mode of Payment The quality of milk procurement is an important factor in deciding the price of the milk to be paid by the Union to the societies for the milk. When the milk reaches the Union, the Department of quality control tests the quality of milk and as per the quality of the milk sent from each society the payment is made to the society. The quality of milk is measured in terms of the content of fat and solid non-fat in the milk. The solid non-fat in milk includes protein, lactose and minerals. The Fat and SNF together form the total solids. If the society sends good quality milk they will be able to make a profit out of the sale to the Union. So they are motivated to get unadulterated milk from the milk producers. The Union makes the payment to the societies once in ten days and the societies also maintain the same payment schedule. The Union deducts the various amounts that the societies owe to the Union and pays the remaining amount to the societies. The payment to the society is made through accounts 62

14 maintained by them in the local Banks, mainly the Co-operative Banks. Payment is sent once in tendays through internet Banking system Transportation of milk The transportation of milk from the societies to the union is done through a transportation network classified into 29 routes among which 14 are directly connected to the union and the other 15 are connected to the chilling centre at Theni. Milk from societies in Madurai, Melur and Thirumangalam areas is directly brought to the Madurai Dairy by means of lorries. Tankers are specially made containers in the form of a thermo flask, which are able to transport the chilled milk at the same temperature without spoiling it Production of milk and milk products The milk procured by the Union from the societies and/or from neighbouring Unions is processed in the dairy plant of the Union and converted into fluid milk and other milk products such as butter, ghee, milk powder and milk peda Production of Fluid milk Fluid milk is the most important product of the Union which is required in bulk by consumers. Milk collected from the societies and the chilling centre is being chilled at 4 o c with the help of chilled water prepared through refrigeration plant and then stored in insulated milk silos. From these silos, the milk required to meet the daily sales is drawn out, and processed to form fluid milk. The processing includes pasteurization, homogenization and standardization. During pasteurization the milk is heated to a high temperature of 72 o C, held at that temperature for 15 seconds and then cooled to a very low temperature of 4 o C this is to destroy the pathogens, the microbial elements. Homogenisation is the breaking of fat globules into five parts, which ensures uniform mixing of fat in the milk. As per the requirement of the prevention of food Adulteration Act, the fluid milk should contain 8.5 percent solid non-fat. It may contain any proportion of fat. Standardization is the process of standardizing 63

15 the fluid milk to a given percentage of fat by the abstraction and or addition of milk fat. The Union considers various marketing factors to decide the percentage of fat in the fluid milk. The Union has offered standardized milk with 4.5 per cent Fat, Toned milk with three percent Fat and whole milk or super thick milk five percent fat from time to time. The processed fluid milk is either packed in 500 ml or 200 ml sachet with the help of packing machines or supplied as such for bulk vending. Till delivery the sachets are stored in a milk cold room where the temperature is maintained between 4 o C and 6 o C. Table 3.5 gives details of the average quantity of fluid milk produced per day over a period of 10 years from 2001 to 2010 Table 3.5 Production of Fluid milk production Year Production of milk(in litres per day) Trend Value Source: Unpublished records of the union 64

16 Table 3.5 shows that there is an uneven increase or decrease in the quantity of fluid milk produced in the Union. The quantity of the fluid milk processed depends on its demand both in and outside Madurai. Source: Computed data Production of Milk Products The Madurai Aavin Union is one among the 4 feeder balancing dairies of Tamil Nadu. A feeder balancing dairy has two distinct functions. The feeder function is confined to the dispatch of the processed fluid milk. The balancing function is to balance year-round supply of milk to meet market demand. This is made possible by setting up plants to conserve the flush season surplus milk in the form of skimmed milk powder, white butter or butter oil or frozen cream which is reconstituted into milk in the lean season. In Madurai Aavin Union, the surplus milk left after processing of fluid milk is processed and skimmed by means of cream separator. The separated cream is pasteurized with the help of a cream pasteurizer and stored. The skimmed milk left after the separation of cream is being supplied to the powder plant for converting it into skimmed milk powder. It is this skimmed milk 65

17 powder which is used for reconstitution purpose during the lean seasons to meet the demand for fluid milk, when milk is in shortage. The separated and processed cream is churned and converted into butter with the help of butter churns. The butter is stored in a deep Freeze Room where the temperature is maintained between -10 o C to C. As per the market demand, the butter is sold as butter or converted into ghee with the help of ghee boilers and sold Infrastructure Facilities The Union is able to procure all the milk produced by the milk producers on all the days mainly because of the extensive infrastructure facilities available. The Government of TamilNadu in the year 1967 established the Madurai milk project with the financial assistance from the UNICEF and the New Zealand Freedom from Hunger Campaign Committee, New Zealand, to handle one lakh litres of milk per day. During the period of Operation Flood project the capacity of the plant and Machinery was increased to handle 1.5 lakh litres of milk per. In 1972, a chilling centre was established at Theni, with a capacity to handle 10,000 litres of milk per day. Now the capacity has been expanded to handle 1, 00,000 litres of milk per day Refrigeration Plant There are six refrigeration plants i.e., 70 TR Frick compressors, which are used to maintain the temperature of chilled water between 1 o C and 2 o C for chilling the raw milk and for pasteurization. The cold store room temperature also is maintained with the help of this plant Boiler With the help of boilers, water is converted into steam and this steam is used in the pasteurization of fluid milk and for melting butter. Boilers are also used in powder production and the processing of milk products. 66

18 Hydro Flow With the help of a 21HP submersible pump, water is pumped from an open well in the Vaigai riverbed to the main dairy sump of capacity 10 lakh litres. This water is not only used by the Dairy but also supplied to the Post and Telegraph Department of Madurai Electrical The Dairy gets electrical supply from the TNEB, Madurai. But for emergency use there are two 255 KVA generators available Powder Plant The powder plant, with a capacity of 10MT/Day was installed and commissioned in 1975 by the NDDB and L&T. It has two plants an evaporation plant and a spray dryer plant Transport Vehicles The dairy has a fleet of vehicles to transport milk into and out of the dairy. There are eight milk tankers, three milk vans and 10 light vehicles to carry milk & milk products. All there infrastructure facilities enable the Union to perform its functions efficiently to the benefit of milk producers on the one hand and the consumers on the other Quality Control Milk is a perishable commodity and quality adherence is very essential. Adulteration of milk in different forms, including mixing of milk with water and preparation of synthetic milk, has become a routine in India. The Delhi Government in 1999 had found over 50 milk samples adulterated out of 414 taken from various private dairies. 4 Many dairies were found to be using harmful materials such as caustic soda and urea for preserving milk. Synthetic milk is a mixture of vegetable oil, soap and skimmed milk powder and does not include fresh milk at all. Studies conducted in the laboratories of the National Institute of 4 Act Against Adulteration of Milk HC tells Government, Edition ,p5. The Hindu, Madurai 67

19 Nutrition at New Delhi, Calcutta and the twin cities confirmed the presence of harmful antibiotics and detergents in some samples of synthetic milk. 5 It is reported that the synthetic milk produced in the North contained urea, hydrogen peroxide and even shampoos in some cases. Unhygienic way of milking and nonavailability of cold chain for transportation of milk to distant places are responsible for the high microbial content in the milk. In the wake of all this different ways of adulteration, quality control is an important aspect of dairy industry. Production of high quality milk requires hygienic practices during milk production. The dairy premises, plant and equipment and other systems should be kept clean. Quality testing in terms of micro biological counts, odour and sediments off-bottom should be adequately taken care of. The Madurai Aavin Union adheres to a strict quality control process considering all these factors. The Madurai Aavin Union adopts a Quality Assurance System (QAS) at all levels of milk reception, processing, packing, storage and despatch. A person to separate sour milk first tests milk received and brought in cans. The good milk is sent into the dairy. A sample is collected from the milk of each society. The sample is tested for its content of fat by an electronic milk tester and for its content of SNF by a lactometer. After the milk is pasteurized and homogenised, samples are taken and tested for microbial count. Similarly at the time the milk is packed and stored quality tests are conducted. When the milk is despatched, samples are taken and tested every hour to determine the maximum time the milk would keep its quality. It is found that in room temperature the milk maintains its quality for a maximum period of 10 hours. This ensures that the milk will be fresh when it reaches the consumers and even a few hours after. The plant and machinery and the related tubes, vessels, sieve and containers are thoroughly cleaned and sterilized with hot water whose temperature ranges from 50 o C to 110 o C. They are also washed once a week with caustic soda and soap oil. The premises is cleaned well soon after the collection of milk is over. The milk tankers are also washed and cleaned well using soap oil and 5 M.Suchilia Milk market-not so white Industrial Economist. May.volXXIII. No.5, p

20 caustic soda. There is an automatic washing machine to wash the milk cans which bring milk from the societies. This machine has four compartments. In the first compartment the cans are washed with water and washing soda. In the second compartment they are washed with soap oil and hard water. In the third compartment they are again washed with very hard water. In the fourth compartment they are steamed and sterilized. In view of the Quality Assurance System adopted by the Madurai Aavin Union it can confidently compete with the private dairies in terms of quality control Marketing of Milk and Milk Products The Union has a full-fledged marketing Department for a) creation of new markets, b) supervision of sales, c) product planning and development, d) distribution e) advertising and f) sales forecasting. The distribution of milk and milk products in the city is controlled by four zonal offices namely the North Zone, the South Zone, the East Zone and the West Zone which work under the direction of the Marketing Department of the Union Sales of Fluid Milk The Union meets the fluid milk demand of the consumers of the city and district first and if there is surplus milk it is sent to the federation at Chennai or to the other Unions in the State of TamilNadu or other States of India. 69

21 Table 3.6 Sales of Fluid Milk (Per Day Average) Year Sales of Milk(in LPD) Trend Value Source: Unpublished records of the union Table 3.6 shows the details of the average quantity of fluid milk sold per day locally within the city of Madurai or district during the period of 11 years from 2001 to It is clear from Table 3.5 that there was a steady increase in the sale of fluid milk in Madurai Aavin Union. There is decrease in sale of fluid milk in the year 2010 and 2011.The main reason is milk is diverted to Chennai and the procurement is also low. 70

22 3.16 Packing and Distribution of Fluid Milk All the various categories of fluid milk sales are affected through the booths established by the Union in various spots in the city. These booths are under the control of concessionaires who are paid a commission on the basis of their quantum of sales. With effect from the year 2000 the rate of commission is 1.5 percent of sales value if the quantity of sales is up to 200 litres per day and two percent of sales value if the quantity of sales is above 200 litres per day. It is noted that this variation in the rate of commission is introduced to motivate the concessionaires to increase their sales of milk. Table 3.7 gives details of number of booths in Madurai Aavin Union. 71

23 Table 3.7 Booths in Madurai Aavin Union Year No.of. Booths Growth Indices Source: Unpublished records of the union Table 3.7 shows that there was a steady increase in the number of booths. The Madurai Aavin Union has the different type of seller s such as Hi-Tech parlours, depots, dropping points, institutions, retailers, Self-Help Group. The Union is also distributing milk sachets through retailers who have facilities for refrigeration. These retailers are given a commission of 10 paise per half-a litre sold Distribution of Milk Products The milk products are sold through parlours established by the Union for this purpose in the city. Agents, who are offered a commission of four percent on the sales value, administer these parlours. There are two parlours that sell hot milk to the traveling public one at the Madurai Railway station and another at the Arappalayam Bus stand. The Union also adopts direct sales to bulk purchasers. It is observed that the Union enters into regular contracts with certain institutions like Railway, Fenner India Ltd., Hotels, Marrigae etc., The Ghee of the Union has got the prestigious AGMARK certification. So there is a good denmand for it even outside the State specifically in places namely Jodhpur, Jaipur, Silvasa, Indore and Pondichery. The products of the Union are branded Aavin and are advertised through Newspapers, Magazines, Radio and television. 72

24 3.18 Input Services Supply of inputs for milk production and cattle development is entrusted to the Union in the Anand pattern. The Union has not only to engage in procurement and marketing of milk but also has to make constant efforts for increasing the productivity of the animals of the milk producers in the member societies. The Union provides a package of input serves to the farmers at their doorsteps. Important among them being, 1. Artificial Insemination 2. Veterinary services 3. Supply of cattle feed Artificial Insemination Commercial milk production in India is associated with the maintenance of pedigree crossbreed cow which are proved to be profitable producers of milk. Cross breeding is concerned with upgrading the genetic qualities of the dairy animals by crossing them with exotic breeds. At present our country is flooded with cross breed cows with innumerable permutations and combinations of different elite exotic breeds with Indian breeds. The exotic breeds are German Jersey and Hereford Bulls, Brown Swiss Bulls, Reddance bulls from Denmark and Holstern fresian Bulls of New Zealand. The Indian cattle breeds are sindhi, sahiva, Tharparkar, Harians Kandrey, Gir, Ongole and Murrah. The central and state Governments have established a number of cattle breeding farms. Several Non-Governmental organizations have also taken up cross breeding programmes. The cross breeding programme has been facilitated through frozen seemen stations and artificial insemination centers. By artificial insemination the genetic qualities of local cows and buffaloes are upgraded. The advantage of artificial insemination, the large number of animals could be served with a relatively small number of bills. The frozen semen technology is needed for ensuring greater productivity in artificial insemination programmes. The frozen semen has life upto 14 to 15 years whereas the liquid semen s life is only 48 hours. In TamilNadu there are three farms to produce frozen semen and they are in Ooty, Hosur and Eachan Kottai. 73

25 There is an Artificial insemination centre at the Madurai Aavin Union, which has been functioning since 1980 to provide supply of frozen semen straws which are obtained from the Nucleus Jerssey farm in ooty owned by the TamilNadu co-operative milk producers federation. The Union has set up a liquid Nitrogen plan under the OF-II programme with the assistance of the Indian Dairy Corporation the liquid nitrogen produced have is filled in liquid nitrogen containers where in the frozen semen straws are preserved. The Union at present has 160 liquid nitrogen containers many of them being bought with the subsidy received from the Government under the Integrated Rural Development Programme. The Union supplies the liquid nitrogen containers with the frozen semen to the societies once in a month. The village-level workers are trained in artificial insemination and so they perform this work under the guidance of the mobile veterinary doctors who visit the societies. The milk producers whose milch animals are subjected to artificial insemination are charged Rs 12 for each case. Table 3.8 shows the number of artificial insemination done and the number of calve born during the period of 10 years from 2001 to Table 3.8 Artificial Insemination Done and Calves Born Year No. of AI Done Total No.of calves born Success Rate (percentage) Source: Unpublished Records of the Union 74

26 As Table 3.8 shows, the Union is constantly providing this input of artificial insemination and as a result there are many calves of cow born. The success rate varies from 31 to 33 percent which means an average of 32 percent. It is observed that 50 to 60 percent of the calves born are female or heifer calves. The female calves born generate the next group of milch animals, just within another 32 months. It is found that an average 156 artificial insemination centers are functioning at the dairy co-operative societies to cater to the needs of the milk producers who are members of the societies Veterinary Services The input comprises of first aid, mobile veterinary service, and emergency health cover for the milch animals and vaccination against contagious and infectious diseases. The Union operates ten mobile veterinary units to provide animal health cover to the animals of the members of the societies. These mobile Units are linked to the nine procurement teams. Each mobile veterinary unit has one veterinary doctor who is assisted by the extension assistant of the procurement teams. The mobile unit prepares a programme chart by which it makes possible to visit every society in its route once a week. The societies are informed about the day and time of the visit of the mobile veterinary unit which visits 10 societies per day. On this visit the mobile veterinary unit provides regular health cover to the milch animals free of cost to the society as well as the milk producer and this means the cost is borne by the Union. The mobile unit treats sick animals and offers de-worming of calves. Also vaccinations are given against diseases like foot and mouth disease, black quarter disease and itches, on or nominal charges. The Union operates three emergency units to treat those animals which are in distress as and when they are in need. These emeregency units are linked to the procurement teams at Theni. Melur and Usilampatty. The emergency treatment is changed at the rate of Rs 25 per case and it is to be borne by the milk producers whose milch animals treated. 75

27 The village level workers appointed by the dairy co-operatives are trained in first-aid and so they are of help to the milk producers in the first instance. The Union also carries out a plan of animal health cover namely, the special sterility camp and they are conducted once in a month in each society. The aim of this camp is to determine the reasons for the sterility of the milch animals and to treat them for it. This camp has a follow-up work after three months to determine the success of the programme. Table 3.9 gives details of the number of milch animals subjected to regular and those treated in the special sterility camps during the period of 10 years from 2000 to Year Table 3.9 Animal Health Cover Provided to the Milch Animals No. of Cases Treated in Regular Veterinary Routes No. of Cases Treated in Sterility Camps No. of Cases Treated in Emergency Routes Nil Nil Nil Nil Nil Nil Nil Source: Unpublished records of the union Nil: Scheme not implemented It is seen from the table 3.9 shows that the number of cases treated in the regular, emerging veterinary routes and sterility camps. In the year 2010, they treated cases against in The sterility camps were resumed for milch animals from 2008 with 176 cases, increased to 384 corresponding to the year Compared to the year 2001, the increasing cases were evident in the year 2010 with cases. This indicates that veterinary service provided by 76

28 the Union has been greatly beneficial to the milk producers. The milch animals will be productive only if it is healthy Supply of Cattle Feed To supplement the nutritive requirements i.e., balanced feed of high milch animals, fodder and concentrate cattle feed are supplied to the member societies. Green fodder is an important feed requirement for milch animals. Under the OF-II project the Union grew fodder on nearly 70 acres of land in various villages and supplied the fodder to the milk producers free of cost. Now the Union does not grow fodder but supplies only mini kits of fodder slips and seeds to the members of societies who have lands to grow fodder. The Union gets seeds like maize, cowpea, sorghan and stylo grass seeds from the Central Government Fodder Research Station at Alamadhi, Chennai through the Tamil Nadu co-operative milk producers federation and supplies these to the societies at free of cost. The societies distribute these seed to the members according to their necessity. The Union also purchases cool fodder slips namely Co.I and Co.II from the Government s Agricultural Department and supplies them to the members of the societies on a no profit no loss basis. The members of societies who have lands make use of the fodder slips and seeds and cultivate fodder. It is found from the records of the Union that the land under cultivation of fodder in the villages measures an average of 550 hectares in , 1385 hectares in ,1195 hectares in , 920 hectares in , 750 hectares in , 645 hectares in and 810 hectares in Providing adequate and nutritionally balanced food is the quick way of increasing the milk yield. Computed cattle feed is a good feed for the milch animals. The Union was originally purchasing and supplying computed cattle feed to the societies. Since May 1991, the cattle feed plant at Kappalur came under the control of the Union and the cattle feed produced in this plant has been supplied to the members of the societies from then on. 77

29 The cattle feed plant is designed with a capacity to manufacture 100 metric tonnes of cattle feed per day. It is provided with laboratory facility to check the quality of raw materials and finished products. Three different varieties of cattle feed are produced here, namely the special milch Ration/pellet, the special milch/mash and the calf starter feeds and all of them are marketed under the brand name Aavin. This computed cattle feed is a composition of 13 ingredients namely, deoiled rice bran, rice polish,maize, cotton seed extraction, groundnut extraction, sunflower extraction, tapioca thippi, wheat bran, jowar, molasses, urea, mineral mixture and common salt. Pellet and mash are packed in 60kg and 50 kg bags respectively. Since the plant comes under the co-operative organization the cattle feed is priced at no profit, no loss basis Special Development Schemes Under the Operation Flood Programme the Union adopted various special schemes with the assistance of the national Dairy Development Board or the Indian Dairy Corporation. These schemes had been really beneficial to the members of the primary milk co-operative societies enabling them to own, rear, care for and feed more and more milch animals. So even after the era of the OF scheme is over, the Union is continuing some of these schemes either by spending its own funds or by getting the aid or subsidy of the Government. The schemes are monitored by the Union and implemented through the primary dairy Cooperative societies Strengthening of Infrastructure and Quality Control & Clean Milk production (SIQCM) This scheme was introduced in the year Under this scheme Bulk milk cooler was launched at co-operatives society/union which covered 10 villages around it(40 km). Normally the milk from society takes 6 hours to reach Aavin, and it is possible to get deterioted due to time gap. To prevent this deterioriation and to preserve the milk, the milk collected from the villages is poured into the BMC within half an hour. Then the Aavin procured milk from the machine. It facilitates both co-operative society and the Union. Co-operative 78

30 society can get better price for their product and Aavin gets quality milk in time. It was sponsored by the Central Government. 75% of purchase price was covered by Central Government 25% by Unions. At present BMC is installed at 16 villages National Agricultural Development programme (NADP) To promote Dairy Industry, Animal Husbandry & agriculture, the Central Government established the NADP scheme during the year It has been functioning for past 2 years. It was sponsored by the Central Government with the total outlay of 19 lakhs. Under this scheme training was given to selected members of particular block on feeding of animals, defects and remedies, maintenance and enhancing infrastructure etc., at NDDB-Anand in the year During the year , 100% subsidy was offered to purchase milk machines. At present, 39 societies were to purchase milk machines. At present, 39 societies were selected / eligible to receive the machine. Refresher course was conducted for village people. In the same year, the Union took the members of the society to Karantaka for attending FIP programme in this regard. Through NADP mineral machine plant was given at the cost of 5 lakhs Buffalo calf rearing scheme In the year , 50 calves were sanctioned to Madurai Aavin Union. Out of this, 20 were sanctioned to Madurai district. It was sponsored by the Central Government with total outlay of Rs25, 000 under NADP. In Tamil Nadu, 1000 calves were sanctioned. Members who owned Buffalo calves between 4 to 10 months of age were eligible to obtain free feeding to animals, vaccination treatment to the calves, free of cost. Insurance was given to calves, free of cost Integrated Dairy Farming (IDF) This scheme was applied to milk Union of Madurai, Thanjavur and Coimbatore districts. In the year , 50 societies were selected and 50% subsidy was given for purchasing milk animals. The purchase should be made at other states. It must be centaralised purchasing. The seleted society should constitute SHG with 25 members. Out of 25 members 5% should be SC category. It was sponsored by the State Government. 79

31 3.20 Training Programme A Training centre had been established under the OF-II project and it is situated in the main diary complex of the Union. It has been functioning since May 1986 and its main object is to conduct various training programmes for the employees committee members and members of the societies. This training facility is offered to the various categories of trainees of not only Madurai Union but also other adjacent District Unions Farmers Induction Programme During the period of the OF-project this programme was directed towards taking the presidents and board of directors of the primary dairy Co-operative Societies to Anand to have an on-the-spot study of the implementation of Dairy Development Schemes in Amul. This programme is dispensed with, instead, a farmer orientation programme is conducted. This is a one-day orientation programme and is conducted for nearly 20 milk producers attached to a dairy co-operative society. The milk producers are taken to the training centre on the premises of the Union in Madurai. The Union provides free transportation facilities to them and also refreshments and lunch. They are oriented to the co-operative dairy industry. The Union not only orients the milk producers but also the management committee members of the dairy co-operative societies. The object of this orientation course is to help the management committee members of the societies to be aware of the functioning of the Union and to help them realize their responsibilities in the proper functioning of the societies. The management committee members of one or two societies are trained at a time and the duration of the training programme is three days. The cost of this programme is Rs. 390 per person and 60 per cent of the cost is borne by the Union and 40 percent is borne by the related society. The trainees are given a stipend of Rs 50 per day. 80