CHAPTER IV PROFILE OF DAIRY INDUSTRY IN SANGLI DISTRICT

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1 CHAPTER IV PROFILE OF DAIRY INDUSTRY IN SANGLI DISTRICT 4.1 Introduction: In this chapter, an attempt has been made to evaluate the profile of dairy industry in general and history and development of dairy co-operative societies in particular. The attention is also given on brief review i.e. working and facilities extended by milk union to PDCSs and milk producers etc. of selected sample milk unions of the district. 4.2 Co-operative Movement in Sangli District at a Glance: Sr. No. Table No.4.1 Co-operative Movement in Sangli District At a Glance: 31 st March Name of Society 2008 No. of Societies 139 Sr. No. Name of Society No. of Societies 1 District Central Co-op. Bank 1 12 Industrial Estate 9 2 Primary Agriculture Cooperative Other Industrial 220 Societies societies 3 Urban Banks Dairy Co-operatives Urban Credit Societies Fisheries 81 5 Employee Credit Societies Spinning 22 6 District Market Society 1 17 Irrigation Primary Market Societies Other Productive Sugar Co-operatives Consumer 96 9 Other type Agri. Process Housing 392 Societies 10 Power loom Labour Co-operatives Handloom 3 22 Other Co-op. Societies 505 Total Co-operative Societies 5880 Source: District Assistant Registrar, Co-operative Societies, Sangli The table 4.1 shows that at the end of March 2008 there were 5880 cooperative societies having 1512 thousand members and total capital of Rs. 36, 35,648 in the district. Out of total Co-operative Societies, 748 were Agriculture Credit Societies, 1533 Non Agriculture Credit Societies, 55

2 Marketing Societies, 2106 Productive societies and 1447 Social Service Societies. Out of 2106 Productive Societies, 17 were Co-operative Sugar Factories which produced 4.5 lack MT sugar during the year and 851Dairy Co-operative Societies. During the year , 854 Dairy Cooperative Societies which procured Crore Liter milk and there are 12 cold storages in the district having capacity of 6.5 lack liters. 4.3 History and Development of Dairy Co-operatives in Sangli District: At the beginning milk produced by milk producer s particularly poor farmers was handed over to private individuals, middle men s called Gavalis. The illiterate and poor farmers were exploited by these Gavalis in respect of quality (Fat and SNF), quantity (weight) and price, resulting into putting them at a loss. However due to perishable nature of milk, there was no substitute before the milk producers except to hand over the milk to the Gavalis. Considering this matter of fact and to have constant and steady supply of milk to urban people with remunerative price, the Govt. of Maharashtra decided to start the dairy in western Maharashtra. The Govt. Milk Scheme named as KRISHNA VALLEY MILK PROJECT is set up at Miraj on 25 th March 1961.The main function of this project is to collect and convert excess milk in to by-products. Initially the milk was collected through the Govt. employees called Milk Procurement Supervisors from Primary Milk Collection Centers. The milk producers, small traders as well as Gavali supplies milk to these centers. The Milk Procurement Supervisor gives receipt of milk to milk suppliers on the collection center. The quality of milk totally collected is tested at Krishna Valley Project Miraj. The payment was given regularly after every seven days. As a result, milk producers got confidence about payment, resulting in to increasing milk production in the valley. However, it creates burden on Krishna Valley Project to collect all milk from milk collection centers. Considering this fact and to overcome from this problem Govt. of Maharashtra decided to establish Primary Dairy Co-operative Societies here we called PDCS s at village level. These PDCSs are constituted by farmer member based on principles of co-operation i.e. democracy. Further to increase the 140

3 milk production Govt. provide loan to farmers against milk supplied by them for purchase of milch animals. As a result of all these efforts of Govt. and increased confidence among farmers, again milk production increased resulting to fall short collection capacity of Krishna Valley Project. To overcome this problem Govt. of Maharashtra decided to form group of village societies generally at Taluka level to federate in a sangh Progress of Dairy Co-operatives in Sangli District In Sangli district the first dairy co-operative society established in 1911 in Walwa Taluka. At present the district having 10 milk unions and 854 Primary Dairy Co-operative Societies over 705 revenue villages. Progress of Dairy Cp-operatives in Sangli District during to is presented in table No.4.2 Table No.4.2 Progress of Dairy Cp-operatives in Sangli District during to Sr. No. Year No of DCS No. of Members Total milk collection ooo Daily milk collection ooo No of cold storages Capacity of cold storages Source: DDDO,Sangli (Including all PDCS i.e. some PDCS provided milk to out of district unions and private unions) The table 4.2 shows that the number of Dairy Co-operative Societies during was 806 having members of which was increased up to 854 (4.84%) and (5.95%) respectively during The milk procurement is also increased from thousand lt. to thousand lt. (i.e %) from to The number of cold storages in the district during was 11 having 620 thousand lt. milk storing capacity of which one was closed down during and during two new cold 141

4 storages wee established. During the year the total cold storage capacity of the district is 650 thousand Lt. milk per day. It is observed from the above table that there is significant number of DCS was established in the district. It is necessary to increase membership as well as milk production; however the facility of the cold storage is insufficient as compared to milk production. The number of cold storages and their milk storing capacity must be increase to avoid spoilage of milk Talukawise Dairy Co-operative Societies in the Sangli District Talukawise Dairy Co-operative Societies in the Sangli District as on 31st March 2009 is given in the table No. 4.3 Table No. 4.3 Talukawise Dairy Co-operative Societies Taluka Registered In working Closed No. of share Holders Walwa (34.82) (31.15) Miraj (7.40) ( 07.95) K.Mahankal (4.62) (05.05) Jath (9.55) (10.07) Atpadi (7.24) (09.02) palus (3.24) (03.63) Tasgaon (3.85) (05.27) kadegaon (4.47) (05.62) Shirala (21.73) (18.84) Khanapur (3.08) (03.40) Total (100) (100.00) Source: DDDO,Sangli Note: Figures in the parentheses indicates percentage to total The table 4.3 shows that there are 854 primary dairy co-operative societies registered in the Sangli district, of which 649 PDCS are in working whereas 105 PDCS are closed down. The number of share holders increased 142

5 up to the level of during the year which was in the year It is also clear that, Walwa Taluka ranks first in the district in terms of working PDCS i.e.226 (34.82%) and number of share holders i.e (31.15%), followed by Shirala Taluka having 141(21.73%) working PDCS and 8211(18.84%) share holders. Jath Taluka stands third position in working PDCS i.e.62 (9.55%) and number of share holder s i.e.4386 (10.07%), though there is no single Taluka level Milk Union in the Taluka, whereas Miraj ranks fourth in terms of working PDCS and number of share holders. Kavate Mahankal and Kadegaon Taluka stands on the fifth and sixth position having working PDCS of 4.62%and 4.47% respectively. There are least PDCS and share holders in the Khanapur Taluka Talukawise Villages having Dairy Co-operative Societies During the year The Sangli District has an area of 8572 sq. km. having 10 Talukas and 705 revenue villages where Gram Panchayat is exist. The social workers and co-operative leaders of the district have taking efforts to reach cooperative movement in all villages of the district. Particularly they try to open Primary Dairy Co-operatives Societies in villages. Taluka wise total number of revenue villages and villages covered by Dairy Co-operative Societies are given in the table no.4.4 From the table 4.4 it is clear that there are 705 revenue villages in the Sangli District of which only 405 i.e.57.45% villages are covered by cooperative dairy societies. It is not the good sign of balanced growth of dairy co-operatives. If anyone observes the Taluka wise villages covered by cooperative dairy societies, recently formed Kadegaon Taluka shows highest in the district having 100% villages covered by PDCS, followed by Walwa and Shirala taluka in which 92 (93.88%) and 78 (82.11%) respectively villages are covered by dairy co-operatives. The Dairy co-operative societies reach 76.67% and 63.89% villages in Atpadi and Miraj Taluka respectively. Kavate Mahankal Taluka covers 41.67% villages, though two Taluka level milk unions are there. Near about half of the villages in Jath, Palus and Tasgaon Taluka were coverd by PDCS, where as khanapur Taluka coverd only 36.37% villages. 143

6 Table No.4.4 Talukawise Villages having Dairy Co-operative Societies No. of Villages Taluka having Dairy Coop. Society Walwa 92 (93.88) Miraj 46 (63.89) K.Mahankal 25 (41.67) Jath 61 (50.41) Atpadi 46 (76.67) palus 18 (51.43) Tasgaon 35 (50.72) kadegaon 29 (100) Shirala 78 (82.11) Khanapur 24 (36.37) Total 405 Villages without Dairy Co-op. Society (57.45) Source: DDDO,Sangli Note: Figures in the parentheses indicates percentage to total Total Revenue Villages 6 98 (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) 4.4 Talukawise Veterinary, Artificial Insemination Services and Cold Storages Development of any organization is dependent on availability of infrastructure. Dairy industry is not exception for this. Mostly milching capacity of the animals is dependent on feed and fodder, breed and availability of medical aid and artificial insemination. It is essential infrastructure for dairy development. Taluka wise facility of the state and local hospitals, mobile hospitals, livestock breeding and rearing centres and cold storage is shown in the table no

7 Taluka Table No.4.5 Talukawise Veterinary /AI services and cold storages Veterinary Dispensaries Veterinary Hospitals Mobile Hospitals LS Breeding & rearing Centre No. of cold storages Capacity (in 000 Lt.) Walwa Miraj K.Mahankal Jath Atpadi palus Tasgaon kadegaon Shirala Khanapur Total Source: Dy. Commissioner District Animal Husbandry, Sangli District The above table shows that, in Sangli district there are 12 cold storages comprising two cold storages each at Walwa, Kavate Mahankal and Kadegaon Taluka and one each at all other Talukas excluding Khanapur having total milk storage capacity of litres. Milk storage capacity of cold storages in Walwa Taluka is highest followed by Miraj and Tasgaon. In terms of veterinary and AI services Walwa and Jath taluka ranks first having 23 local hospitals, followed by Miraj, Shirala and Tasgaon having 22, 19 and 15 local hospitals respectively. Palus and Atpadi Taluka holds least hospitals in the district. There are three Livestock breeding and rearing centres in Sangli district at Miraj, Kavate Mahankal and Jath each. Mobile hospital is working only one at Shirala Taluka. 4.5 Livestock Population in Sangli District As per 2003 Livestock census Livestock population in sangli District is lakh comprising 25% Cow Class, 33% Buffalo Class, 26% ships, 15% Goats and 1% other livestock. Cow class livestock includes 32% crossbreed and 68% indigenous. Population of Poultry and other birds is lakh. The density of livestock population in sangli District is 164 Sq. Km. 145

8 4.5.1 Milch Livestock Trend in Sangli District The trend of livestock (milch animals) during the period 1977 to 2003 in the district is shown in the table No.4.6 Sr. No. Table No. 4.6 Milch Livestock Trend in Sangli District During 1977 to 2003 Particular Milch Cow (6.78) 2. Milch buffalo (20.61) 3. Sheep & Goats (72.61) 4. Total milch (100) Livestock Source: Livestock Census, 1977 to 2003 (In Thousands) % increase over 1997 to The above table shows the trend of milch animals in the district. The number of milch cow was declined year after year from 1982 to 1997 but there after there is tremendous growth in the number of milch cow. The milch cow during the year 2003 was , it is increase over 1997 at 42.11%.If we observe the trend of buffalo and sheep/goat,they are increased from 1977 to 1997, but later on both the category of the milch animals are decreased by 9.89% and 0.86% respectively. Overall milch livestock is decreased by 0.87% over It is clear from the above information that the trend of animal rearing in the district is changed from buffalo to cow Talukawise and Species wise classification of Livestock Population: Production of milk is depending upon various factors such as availability of quality feed and fodder, whether condition, rain fall, veterinary services and number of animals particularly crossbred cow and buffaloes. Taluka wise and species wise classification of livestock population in the district is given in the table no

9 Sr. No. Table No. 4.7 Talukawise and Species wise classification of Livestock Population Taluka in Sangli District Crossbred Cow Indigenous Cow Buffalo Dry/ Dry/ Dry/ N.C. N.C. Milch Total Milch Total Milch N.C. & & & Other Other Other (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) Total Total ( ) 1 Walwa Miraj Kavate Mahankal 4 Jath Atpadi palus Tasgaon kadegaon Shirala Khanapur Total (9.44) (18.51) Source: Livestock Census 2003 Note : 1.Figures indicates female category only. 2.Figures in parenthesis shows percentage to total (72.05) (100) The above table shows that in Sangli District there are 3.60 lack milch animals comprising 2.59 lack (72.05%) buffalo, 0.67 lack (18.51%) indigenous cow and 0.34 lack (9.44%) crossbred cow. Population of buffalo is highest followed by indigenous cow and crossbred cow. The number of indigenous cow is double than that of crossbred cow. Jath Taluka ranks first in rearing (45%) indigenous cows in the district. Again it shows that the proportion of milch and dry animal including not calved crossbred cow is 100:67 and buffalo proportion is 100:58 where as proportion of indigenous cow is near about equal i.e. 100:99. It is observed from the table no.4.7 that the percentage of buffalo is highest (72.05%) in the district followed by indigenous cow (i.e.18.51%) and crossbred cow (9.44%). It also seen that the more burdens suffered by milk producers due to dry and not calved indigenous cow. The situation is almost same overall in the district. If one can observe the taluka wise proportion of buffalo, crossbred cow and indigenous cow, in Walwa, Shirala and Palus 147

10 Taluka buffalo rearing is highest followed by crossbred cow and lowest number of indigenous cow where as in other taluka s rears maximum buffaloes followed by indigenous cow and lowest number of crossbred cow. It is necessary to change the attitude of milk producers about animal rearing and to create awareness among milk producers about crossbred cow rearing to increase quality and quantity of milk and for better development of dairy industry. 4.6 Milk Procurement in the Sangli District There are 10 milk unions (one District and nine Taluka level) and 649 primary dairy co-operative societies working in the Sangli district. Mostly milk procured by PDCS is supply to Taluka and District level milk unions of the Sangli district, however some PDCS supply their milk to out of district milk unions such as Warana milk union warananagar, Sidharth milk Kolhapur, Koyana dairy Karad etc Taluka wise Procurement of Milk Taluka wise procurement of milk by all the working PDCS and milk unions in the Sangli district during the period to is given in the table no.4.8 From the table no.4.8 it is clear that the milk procurement in the year was 9.12 Crore Lt. which was gone up by 4% (9.50 Crore Lt.) during the year and % (14.78 Crore Lt.) in the year Again it was increased by 12.58% (16.64 crore lt) in the year Milk procurement during the year is reached up to the level of crore litres by increasing 11.18% of the last year. If we observe the milk procurement of each Taluka, it shows increasing trend during the period to During the year the contribution of Walwa Taluka in milk procurement is highest in the district i.e.35.50%, followed by Shirala Taluka procuring 9.66%, where as all other Talukas contribute in between 5 to 8%. The khanapur Taluka procures least in the district i.e.3.94%. 148

11 Table No. 4.8 Talukawise Milk Procurement Taluka Total (000 Lt.) Total (000 Lt.) Total (000 Lt.) Total (000 Lt.) Total (000 Lt.) Walwa (35.50) Miraj (07.30) K.Mahankal (04.93) Jath (08.28) Atpadi (08.87) palus (07.30) Tasgaon (08.68) kadegaon (05.52) Shirala (09.66) Khanapur (03.94) Total (100.00) Source : DDDO, Sangli (Including all PDCS i.e. some PDCS provided milk to out of district unions and Milk Unions) Note: Figures in parentheses indicates percentage to total Procurement of Milk by Taluka and District Milk Unions: There are 10 milk unions in Sangli district collecting milk from 649 PDCS working in the district as well as from private milk collection centres which are affiliated to respective milk union. Procurement of milk by Taluka and District milk unions during to is shown in the table no. 4.9 The table no.4.9 shows that milk procured by co-operative sector in Sangli district during was lakh Lt which was increased up to lakh lt (i.e.11.30%) during and lakh lt (i.e.1.25%) during Again it was gone up to lakh lt. (i.e.10.45%) during and lakh lt. (31.27%) during while during the year 149

12 the milk procurement was gone down by 5.42% and reached to the level of lakh lt. Table No. 4.9 Procurement of Milk in Sangli District by Taluka and District Milk Unions During to (Figures in lakh Lt.) Year Buffalo Cow Total Increase/ Decrease (%) Average per day Buffalo Cow Total (47.75) (52.25) (100) (48.68) (51.32) (100) (53.43) (46.57) (100) (53.54) (46.46) (100) (50.06) (49.94) (100) (48.08) (51.92) (100) Source: DDDO, Sangl. Note: Figures in parentheses indicates percentage to total The proportion of buffalo milk and cow milk during is near about 48% and 52% respectively, which was 53% and 47% respectively during while it was 48% and 52% respectively at the end of the year It is observed from the above table that milk procurement by cooperative sector is increased from lakh lt. to lakh lt. during to , whereas it is declined up to lakh lt. during (i.e.by 5.42%).The fall in milk procurement during due to other milk unions out of the district collected milk from sangli district. The proportion of the buffalo milk and cow milk is almost equal i.e.48% and 52% respectively Union wise procurement of milk in the month of March 2010 Success of dairy unions can be measured on the basis of procurement of milk. For the development of organization it is necessary to increase procurement of buffalo as well as cow milk. The researcher has made attempt to assess the co-operative dairy unions in the district by considering 150

13 procurement of milk. Average procurement of milk per day in the month of March 2010 is shown in the table no Table no Union wise procurement of milk in the month of March 2010 Sr. No. Name of Union 1 Mohanrao ShindeDudh Sangh, Miraj 2 Vasant Dada District Dudh Sangh,Sangli 3 R.B.P.Dudh Sangh Islampur (Average per day in litres) Buffalo Cow % to total Total milk milk Procurement Sonhira Kadegaon Fattesingh Naik, Shirala Nanaso Sagre, K. Mahankal Sampatrao Deshmukh, Kadepur 8 Hutatma, Walwa Kranti, Kundal Shetkari, Kavate Mahankal Total milk procurement (49.16) Source : DDDO, Sangli (50.84) (100) 100 The table no shows that, per day average milk collection of all the milk union in the district is 4,44,417 lt. comprising 2,18,469 lt. buffalo milk and 2,25,948 lt. cow milk. The percentage of procurement of buffalo milk is 49.16% whereas cow milk is 50.84%. It clears that the trend of buffalo and cow milk production in the district is almost equal. It also reveals that the RBP milk union plays vital role in procurement of milk in the district by procuring 43.27% milk followed by Vasantdada District Milk Union % and Hutatma Milk Union 11.97%.Mohanrao Shinde Milk union procures least in the district i.e. 0.78%. All other milk unions contribute 3% to 6 % in milk procurement. 151

14 4.6.4 Seasonal variations in milk collection: Procurement of milk is mostly depend upon calving factor of milch animals which is dependent on whether condition, rain fall as well as availability of fodder. Calving season of milch animals, particularly buffalo and desi (indigenous) cow is generally starting from September i.e. at the end of the rainy season. Calving interval is also affected on milk production. More the calving interval more will be the dry period of animals. It is the basic reason for seasonal variation in milk procurement. During the year , seasonal milk collection in Sangli district is given in the table no.4.11 Table No.4.11 Seasonal variations in milk collection in Sangli district during the year (Average per day in litres) Month Buffalo milk Cow milk Total Increase/ April (51.33) May (47.69) June (43.44) July (41.28) August (41.06) September* (42.54) October* (45.85) November* (50.39) (48.67) (52.31) (56.56) (58.72) (58.94) (57.46) (54.15) (49.61) (100) (100) (100) (100) (100) (100) (100) (100) December* (52.18) (47.82) (100) January* (51.60) (48.40) (100) February (52.24) (47.76) (100) March (49.16) (50.84 ) (100) Source: DDDO, Sangli Note: 1.* Indicates high milking period 2. Figures in the parentheses indicates percentage to total Decrease(%) The table 4.11 reveals the variation in milk collection during the year The period in between end of rainy season and starting of the summer season i.e. September, October, November, December, January and

15 February is the high milking period. Pick period of milk production is reflected particularly in the month of January ( lt. per day).growth rate of milk production is remarkable increased in the month of October (10.46%) and again in December (9.93%) as compared to corresponding last month. From the observation of the above table one interesting fact is found that, the variation in the milk procurement is mostly due to variation in buffalo milk production. There is no vast variation in the milk procurement of cow milk. Because calving period of cow particularly crossbred cow is through out the year. Hence, to increase cow milk production is the remedy for overcome from seasonal variations of milk procurement. 4.7 Milk Distribution Network: Table No Month wise Milk distribution network of co-operative milk unions in Sangli district during (Average per day) In District Out of District By- Maha- Whole Month Buffal Buffal Govt Produ Cow Total Cow Toned Total nand Sale o o cts Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Source: DDDO, Sangl. Now a day s marketing of product is more challenging than production. For marketing of product, the four elements of marketing mix are important i.e. produce, price, distribution and promotion. The most important decision element in the distribution strategy relates to the location so as to attract the maximum number of customers. The milk distribution network of co-operative 153

16 Sr. No milk unions in the Sangli district during the year is shown in the table no.4.12 The above table shows that the co-operative milk unions in the districts are provided milk to various Govt. and private agencies as well as direct to consumers also. During the year unions sold majority of their milk to wholesalers followed by sale in out of district in to poly pack. They also provides maximum amount of milk to State Federation i.e. MAHANAND Mumbai. The milk unions also sold milk to consumers of the district in loose and poly pack. Milk used for preparation of by-products is very low. The share of milk supply to Govt. dairy is too low, mainly because of rate given by Govt. dairy is low as well as they accept milk strictly on S.N.F. basis. Table No Union wise milk distribution network during the month of March 2010 Poly Pack Sale Maha nand (Average per day lt.) Whole sale Out of state Byprodu cts Name of Union Buffal o Cow Toned Total 1 Mohanrao Shinde, Miraj 2 Vasant Dada District Sangh,Sangli 3 R.B.P.Islampur Sonhira Kadegaon Fattesingh Shirala Nanaso Sagare, K. Mahankal 7 Sampatrao Deshmukh, Kadepur 5 8 Hutatma, Walwa Kranti, Kundal Shetkari, K. Mahankal Total Source: DDDO, Sangl. 0 The table 4.13 reveals the milk distribution network of the milk unions in the district during the month of March 2010.The table shows that most of the unions sold their procured milk in Maharashtra on wholesale, whereas 154

17 Hutatma, Walwa and Sampatrao Deshmukh, Kadepur are the multi state milk unions who provides milk out of Maharashtra State. Few unions i.e. Rajarambapu, Islampur, Hutatma,Walwa and Fattesing Naik,Shiral sold their milk through poly pack to customers and some milk to Mahanand Mumbai. These three unions engaged in production of milk by- products. 4.8 WORKING AND PROGRESS OF SAMPLE MILK UNIONS : The working and progress of the selected four sample milk unions i.e. RBP Dudh Sangh Islampur, FNS Dud Sangh hirala, NSS Dudh Sangh Kavate Mahankal and MSS Dudh Sangh Miraj is discussed in the following manner RAJARAMBAPU PATIL CO-OPERATIVE DUDH SANGH LIMITED ISLAMPUR The Rajarambapu Patil Co-operative Dudh Sangh Limited Islampur was established on 30 th December 1975 wide Registration No.SAN/DFG/121/75 by the efforts of Late Rajarambapu Patil. The Sangh started its activity by collecting Lt. milk per day w. e. f. 19 th Feb and during the year Sangh has collected 2,00,000 Lt. per day comprising of 82,298 Lt. Buffalo milk and 1,17,336 Lt. cow milk. In the initial stage Sangh has collects milk from 24 primary dairy co-operative societies in the morning session only. Now sangh collects milk twice a day from 133 Primary Dairy Co-operative Societies through 97 routs. The initial issued capital of the Sangh was Rs which is 1,62,96,950 at the end of the year Union has proved its quality by obtaining ISO 9002 and ISO HACCP marks. Area of Operation and Activities: The area of operation of the Rajarambapu Patil Dudh Sangh,Islampur is Walwa taluka, which is located in between Krishna and Warana river. The distance of the each Primary Dairy Co-operative Society from the Sangh is approximately 25 K.M. The activities undertaken by the sangh were as follows. 155

18 1. To collect the milk from member milk producers societies. 2. To processing and manufacture of milk products, such as Butter, Ghee. Shrikhand etc. 3. The marketing of milk and milk products in various regions of Maharashtra. 4. To manufacture balanced cattle feed and supply to members. 5. To operate chilling centers at Ranjani, Atpadi Jath and Karad. 6. To provide veterinary services, AI services, Vaccination etc. 7. To organize various training camps, tours and seminars for employees, members and milk producer farmers. 8. To provide subsidy for purchases of milch animals, chaff cutter, milko tester etc. Membership and Share Capital : The authorized share capital and paid up capital of the Sangh was RS.5 lack and Rs.35,600 respectively at the time of inception which is gone up to Rs.5 crore and Rs.1,62,96,950 at the end of 31 st march 2010.The union has allotted membership to primary dairy co-operative society as well as milk producer farmers also. The table no.4.14 shows the year wise growth of share capital and membership since Table No.4.14 Growth of Membership and Share Capital During to Growth Annual Growt Individual Members Total Year PDCS Govt. Rate Share Capital growth in h Rate (%) Capital (%) ,99,500 4,64, ,34,300 9,34, ,37,900 9,03, ,47,900 9,10, ,31,400 11,83, ,08,85,400 27,54, ,23,26,450 14,41, ,35,28,950 12,02, ,46,73,450 11,44, ,62,96,950 16,23, Source: Compiled from office record of the dudh sangh. 156

19 From the table no it is clear that, there was a marked increase in individual membership (i.e.70.40%) and thereby increases in share capital (i.e.33.87%) in the year It also shows that the growth of the PDCSs and individual membership was steady throughout the study period. In the year total members of the union was 1043 comprising 937 individual, 105 PDCSs and 1 Govt. of Maharashtra which was increased up to 1645 members comprising 1515 individual and 130 PDCSs members at the end of Latter on the share of Govt. of Maharashtra was withdrawn. At the end of the study period i.e the membership reached at 3684 comprising 3551 individual and 133 PDCSs. Financial Position of the Union: The development and success of any organization is mostly depend up on financial position. The financial position of the union during to is shown in the following table. Table No.4.15 Financial Position of the Union (figures in lakh) Sr.No. Year Reserve Fund Investment GP NP Source: Compiled from office record of the dudh sangh. The table 4.15 clears that the reserve fund of the union was Rs lakh in the year which was gone up by 83.86% and reached to Rs lakh in , again it was gone up by % and reached to 157

20 Rs lakh at the end of the year During the year to investment was increased from to lakh i.e.21.52% and during to was from lakh to lakh i.e %, while Net Profit of the union was 5.20 lakh in which was increased to Rs.9.22 lakh i.e.77.31% and again it was increased to Rs lakh i.e % during the year to It is observed from the table 4.15 that the union has strong financial position, however they get low amount of profit and provided maximum facilities to milk producer members and primary dairy co-operative societies which caused the development of dairy business and economical position of the milk producers in the operational area of the union. Profitability of the Union : The efficiency of the milk union measured on the basis of profitability, which means the profit earning capacity of the organization. Any business concern can be increased the profit by increasing sales turnover or by reducing costs with the same level of sales turnover. Since the inception the Union has earned a small margin of profit. In the year union has earned 0.12% net profit as well as the expenses on collection of milk, selling and distribution expenses, processing and by-product manufacturing expenses, administrative expenses were varies between 2% to 6% of total expenses. The expenses on milk purchases and services were 82.16%. The analysis of the expenditure of the union is shown in the table no.4.16 Table No.4.16 Classification of Expenses and Net Profit during the year (Figures in Lakhs) Sr.No. Particular Expenses % to total 1. Milk purchase & services Collection Cost Process and by-product Selling and Distribution Expenses 5. Administrative Expenses Net Profit Total

21 The profitability and viability can also be judged by the services provided by union to its milk producer members and Primary Dairy Cooperative Societies. During the year union has incurred most of the expenses (79.77%) on purchasing of milk from milk producers and giving various services to them followed by selling and distribution i.e.6.94%,processing of milk and by-products i.e.6.67%, administrative expenses i.e.4.15%, while 2.32% on collection of milk. The union has getting profit only 0.15%.The union gives assured income to its members. They distribute rebate (price difference) to the milk producers every year. In addition to that out of its own funds union has provides subsidy and grants to the PDCSs and milk producers for various purposes. It is observed from the table 4.16 that the union has expended most of the income i.e.79.77% on purchases of milk from milk producers and various services provided to them and get normal profit i.e.0.15% only. That means union has accepted the principal of co-operation i.e. motto of service not profit. They also maintain control on administrative, selling and distribution expenses. Milk Procurement: ( to ) Initially Union has collects milk approximately 30 lack litres annually and 9,000 litres per day. At the end of March 2010, annual collection is increased up to 7,28,44,122 litres annually, with 1,99,634 litres per day. The union has collects milk from 133 member Primary Dairy Co-operative Societies with 170 milk collection centres twice a day. For this purpose union has arranged 97 routes and employed 103 vehicles. The procurement of milk during the study period is shown in the table no.4.17 The table 4.17 reveals that the trend of milk collection of the union. During the year union has collected lakh lt. milk comprising lakh lt. buffalo milk and remaining lakh lt. cow milk, which was increased to lakh lt. (i.e %) comprising lakh lt. buffalo milk and lakh lt. cow milk during Again it was increased from lakh Lt to lakh Lt (71.92%) comprising lakh buffalo milk and lakh Lt cow milk at the end of

22 Table No.4.17 Species wise Milk Collection during to (Figures in Lakh Lt.) Year Buffalo Milk Cow milk Total Increase (%) Daily Milk Collecti on % of Buff. Milk % of Cow Milk Source: Office Records and Annual Reports of the union Note: Milk purchased from outside the area of operation and taken from other milk unions is also included in total milk collection. The table also shows that the ratio of buffalo milk and cow milk was 64:36 during which shows 51:49 in and again it was changed and shows approximately 46:54 at the end of That means buffalo milk production decreases and cow milk production increases day by day. It is observed from the above table that the milk collection in the year has been increased more than three times over the milk collection during In the year collection of buffalo milk is higher than that of cow milk (i.e.64:36) but from the year the share of cow milk in the total milk collection is higher than buffalo milk. The proportion of the buffalo milk and cow milk at the end of the year is 46:54. It indicates that the trend of the cow rearing is increased in the area of Rajarambapu Patil Co-operative Milk Union. It is because of veterinary facilities, financial assistance and subsidy provided by milk union. 160

23 Milk Distribution Network: In the initial stage the union provides liquid milk to Government Dairy Scheme, Miraj and Krishna Khore Dudh Sangh, Sangli, but the price paid by them was low. For obtaining fair price for milk and to increase sale of milk in Mumbai, Union has started its own milk selling centre at Sayan in the year Union has sold more than half of the milk through this centre. Some amount of milk is used for local sale and for making by-products. The remaining milk was supplied to Mahanand Mumbai and Government Dairy Scheme, Miraj. Today Union has sold its milk and milk products at Pune, Mumbai, Satara, Solapur, Konkan and major cities of the Western Maharashtra under the brand name Krishna. The union has full fledged marketing and distribution network. The milk distribution during to is given in the table no.4.18 Year Table No.4.18 Distribution of milk during to (Figures In lakh Lt.) Mahanand Govt. Scheme Local sale and Byproducts Mumbai (Sayan centre) Total Source: Office Records and Annual Reports of the union The above table shows that in the year out of lakh Lt total milk distributed, highest milk sold i.e lakh Lt through its own centre in Mumbai followed by local sale and used for by-products i.e lakh Lt.,while lakh lt milk sold to Govt. milk scheme Miraj and only 7.80 lakh Lt sold to Mahanand. At the end of out of lakh Lt total milk distributed, highest milk sold i.e lakh Lt. through its own centre in Mumbai followed by local sale and used for by-products i.e lakh Lt.,while lakh lt milk sold to Mahanand Mumbai and only 5.54 lakh Lt supplied to Govt. milk scheme Miraj. 161

24 Year It is observed from the above table that milk utilization for manufacture of by- products and local sale is increased from to , while milk supplied to Govt. milk scheme Miraj was decreased as against milk sold to Mahanand is increased in the same period. The Govt. milk scheme Miraj is not running successfully, not giving proper service to union and price received from local sale is remunerative are the reasons for above change. In the year the packing centre of Sayan (Mumbai) was closed down and new unit started at Washi by taking modern dairy plant on lease from Imperial Cold Storage. Due to this modern plant from poly pack 07 to Table No.4.19 Distribution of milk during to (Figures In lakh Lt.) Polly pack sale (washi Centre) Buff (1) Cow (2) Tonne d(3) Total (4) Buffalo (5) Loose sale Cow (6) Total (7) milk sale is increased. The table no. 4.5 shows the sale of milk during Byproduct (8)* Mahanand (9) (74.17) (22.80) (3.03) (71.36) (25.87) (2.78) (64.58) (18.32) (6.73) (66.64) (11.93) (7.08) Source: Office Records and Annual Reports of the union *Includes send for Conversion **Diff. in milk collection & sale Note: Figures in the parenthesis indicates percentage to total milk sale Total (10) ( ) N.A N.A (10.37) (14.36) 8 The table no shows that in the year the sale of milk through poly pack is highest (i.e.74.17%), followed by local sale i.e % and milk used for by-products is only 3.03%. While it shows 64.58% poly pack sale, 18.32% local sale and 6.73% used for by-products during During this year 10.37% (i.e lakh Lt.) milk sold to Mahanand Mumbai. At the end of union has sold milk through poly pack is 66.64% followed by sold to Mahanand 14.36%, local sale 11.93% and milk used for byproducts is 7.08%. It is observed from the above table that poly pack sale is highest because of modern poly pack plant executed in washi. Percentage of milk 162

25 sold to Mahanand is also increased while overall sale was decreased in the year Collection of milk from outside the operational area is reduced by unions is the reason of decline in sale. Seasonal Variations in Procurement of Milk: Table No.4.20 Seasonal variations in milk procurement and substitute arrangement made by Union Increase Increase Achievement of Own Bulk Purchase in Own in Bulk milk(total) Procurement Proc.(%) Purchase Month (%) Over Over April May June (-6) July August September October November December January February (-25) March (-45) Source: Compiled from Office Record Milk production is highly depending upon season. Generally majority of Indian buffalo take place between July and October. In Indian there are two main seasons of milk production i.e. lean season from March to August and Flush season from September to February. The milk production in winter (Flush) season is normally double than that of lean (summer) season. The price of the milk in lean season is increased but lack of sufficient milk in summer season the price of milk does not cover the cost of labour, cost of procurement and cost of processing. As a result majority of milk unions suffered losses. On the other hand in flush season sometimes unions declare Milk Holidays. 163

26 However, cows have two calving seasons, i.e. in April/May and in December, resulting regular supply of milk throughout the year and seasonal variations are decreased. By considering this facts RBP give attention to increase the number of cows with the milk producers. Apart from this to avoid gap between procurement and marketing of milk, RBP Dudh Sangh purchase milk from other milk unions. Month wise total milk collection comprising its own procurement and bulk purchase from other unions during 2007and 2008 is indicated in the table 4.20 Milk Products Manufactured The Table No.4.21 shows the annual production of milk by-products during the year Table no.4.21 Classification of milk products Manufactured (In MT) Sr.No. Product Name Shrikhand Ghee Floured Milk Curd Basundee Lassi Butter Milk Paneer Table Butter Cream Total Source: Office Records and Annual Reports of the union The Table No.4.21 shows that the union has produced MT various milk product during the year. Of the total by-products ghee production is highest i.e MT followed by shrikhand, curd, lassi and cream. The flavoured milk, basundi, pannir table butter etc are also the famous products which are produced by the union. It is observed from the distribution pattern of collected milk that near about only 7% milk is used for the manufacture of various types of byproducts. It may be due to extra profit margin for liquid milk sale than milk 164

27 products. But for the proper utilization of extra milk at the time of flush season,it is necessary to increase the production of milk powder and other milk products. Cattle Feed Production: The cattle feed plant of 10 MT daily capacity was started by the union at Islampur MIDC area on 18 th July The main object of the cattle feed plant is to supply quality feed to milk producer members and PDCSs on fair price. On 29 th November 1987, another cattle feed plant was started having daily capacity of 40 MT. Again on 1 st August 1999, one new project was started having daily capacity of 40 MT at Kupawad (Sangli). In addition to that union has started the production of Mineral Mixture from the year Production of Cattle Feed and Mineral Mixture during study period is shown in the table no.4.22 Table No.4.22 Production of Cattle Feed and Mineral Mixture Year Cattle Feed (In lakh Bags) Mineral Mixture (In MT) Nil Nil Nil ,81 Nil Source: Compiled from Office Record The table no reveals that the production of Cattle Feed and Mineral Mixture is increased steadily during study period. It also shows that the tendency of milk producers towards the use of balanced cattle feed is increasing day by day. The Union has supply the cattle feed to their members on subsidized rates. The union has allotted gifts on occasion of festivals to 165

28 feed purchasers as well as they provide coupon through feed bag and make a lucky dry from them. In addition to that Union has sold cattle feed in Karnataka, Goa and Marathawada region of the Maharashtra State. Veterinary Aid and AI Services: The Union has commissioned its own veterinary department from 1991 for giving veterinary and AI services to members. In addition to that Union has started 10 Sub-centers at various places in Walwa Block. Under this department and sub-centers Union has provides the services such as vaccination, AI, Pregnancy Testing, Medicine, Operation and emergency services. During the study period veterinary and AI services provided by Union is shown in the table no.4.23 The table no.4.23 shows that, during the study period union has provided veterinary and AI services to thousand milch animals. Of the animal served highest number of animal treated as vaccination i.e (42.29%) followed by AI services i.e (28.29), medicine i.e (27.13), pregnancy testing i.e.17.2 (2.09%) and 1.56 thousand i.e.0.19% operations. It is also clear that in the year veterinary and AI services provided thousand animals which was increased up to thousand (68.67%) in and from thousand to thousand (50.68%) during to It is observed that the awareness of AI and vaccination among milk producer farmers is increased. The small and marginal farmers get maximum benefit of the veterinary and AI services, resulting into increase in milk production and income of the milk producers. In addition to that, to maintain balance between milk productions during all seasons the sangh has implemented Hit Synchronization Programme for creating artificial hit among milch animals. Union has hit synchronized about 1549 cows and buffaloes during the year 2008 and provided 75% subsidy for medicines. 166

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