Dr. J. V. Parekh Senior Dairy Consultant, Mumbai, India

jvparekh72@yahoo.com

15th African Dairy Conference and Exhibition, 14th August 2019 at

the KICC Nairobi, Kenya On

Sustainable Cooperative Movement, the Case of Amul, Its Applicability in African Dairying

INDIAN  DAIRY  INDUSTRY  PROFILE  (2017-­‐2018)  Human  Popula@on    :  1,350  million  (100  million  dairy  farmer)  Milk  produc@on    :  176.6  million  tonnes  (482  million  litres/Day)  The  livestock  sector  provides  regular  employment  to  8.5%  of  the  total  workforce.  Largest  livestock  popula@on  :                  57%  of  world  buffalo  and  16  %  of  ca[le.      About  70%  of  milk  is  produced  by  marginal  farmers  having  1-­‐4  animals.      Average  Annual  Growth  Rate    :  4.5%        Per  Capita  Milk  Availability    :      380  gms/day        Total  Milch  Herd,  2019      :  120  million      Crossbred  cows        :  30  million      Indigenous  cows        :  50  million      Buffaloes        :  52  million    Milk  yield  per  breedable  bovine  in-­‐milk  :  2,000  kg    Ca[le  Feed  Produc@on      :  5  million  tones    Total  number  of  Processing  Plants    :  2300      Dairy  Plants  Throughput      :  200  million  litres  /day      Value  of  output  of  dairy  industry    :  Euro  93  Billion  

India  :  Milk  Produc@on  &  Availability  

Milk  produc@on  &  Availability,  1960  to  2020  

Strength  of  the  Indian  Dairy  Industry  •  India   is   World’s   largest   milk   producer   from  

just  17  Million  MT   in  1951-­‐52,   the   total  milk  produc@on   in   India  has   reached    176  Million  MT  in  2017-­‐18    

•  India   is  World’s   largest   consumer   of  milk   In  view   of   steady   popula@on   growth,   rising  incomes,   urbaniza@on,   changing   food   habits  the   demand   is   met   by   the   domes@c  produc@on.   From  120   gms  per   capita   to   380  gms  milk  per  day  per  person  

(Con@nue…)  

•  Dairying   and   Animal   Husbandry   contributes  around  Rs  7.7  lakh  crores  per  year  to  the  GDP  which  is  around  4.2  per  cent  of  Na@onal  GDP.    

•  It  has  emerged  as  a  primary  source  of  income  for  about  100  million  rural  households  –  most  of   them   are   landless,   small   or   marginal  farmers.   Animal   Husbandry   and   dairying   is  contribu@ng   around   30   per   cent   of   total  agriculture  GDP.    

•  Milk  is  the  “largest  agriculture  crop  on  India”  and  is  more  than  the  total  value  of  all  pulses  and  grain  put  together.   (Con@nue…)  

  India  has  remained  top  milk  producer  in  the  world  for  the  last  21  years  with  current  milk  produc@on  at  around  176  million  tonnes  per  year  (about  480  million  liters  per  day)  which  is   around   20   percent   of   the   world   milk  produc@on.    

•  Dairy   industry   in   India   is   growing   at   faster  speed  than  the  world  

•  Milk  industry  is  more  of  a  social  service  than  a  core  business  

•  Successful   coopera@ve   mode   –   a   tool   for  socio-­‐economic  change   (Con@nue…)  

•  Dairy   is   a   tool   for   high   employment  genera@on  •  This  is  growing  at  the  rate  of  4.5%  CAGR  in  last  2  decades  as  compared  less  than  2.0%  CAGR  growth  of  the  world.  •  The   beauty   of   the   model   is   that   about  70-­‐85%   of   the   realiza@on   goes   back   to  farmers,  who  own  and  control  the  dairies.    •  Elsewhere   in   the   world,   only   30-­‐40%   of  the   consumer   price   goes   back   to   the  farmer.  

Unique  Feature  of  Indian  Dairying  •  In   India,   unlike   large   dairy   farm   systems,  milk   is     produced   not   in   mass   but   by  masses   –   livelihood     for   small   dairy  holders.  

•  Small   and   marginal   farmers   with   land  holdings    of  less  than  2  hectare  account  for  the  larger    share  in  the  ownership  of  dairy  animal  as  well  as    milk  produc@on  

•  It   plays   important   role   in   providing  employment   to   farmers,   especially  women  

Role  of  Women  in  Indian  dairying  About  70  percent  of  total  work  force  engaged  in  dairying  are  women    and  the  share  of  women  in  the  total  @me  spent  on  dairying  by  all  the    household  members  is  64%.  

India’s  Small  holder  system  •  Mixed  crop-­‐livestock  system  is  suitable  for  the  countries  where  the  by-­‐products    of  one  are  used  as  inputs  for  the  other  and  thus  they  co-­‐exist,  support  each  other    and  do  not  compete.  

•  The  use  of  crop  residues  as  animal  feed,  dung  as  manure  and  domes@c  fuel,  and    livestock  as  draught  power,  protect  the  environment  from  an  overuse  of  chemical    fer@lizers  and  fossil-­‐fuels.  

The  Birth  of  Amul  (  Anand  Milk  Union  Ltd.)  

•  It  all  began  when  milk  became  a  symbol  of  protest    •  Founded  in  1946  to  stop  the  exploita@on  by  middlemen    •  Inspired  by  the  freedom  movement    

GCMMF  (Amul)  Gujarat   Coopera@ve   Milk   Marke@ng  Federa@on   Ltd.   (GCMMF),   is   India's   largest  food   product   marke@ng   organisa@on   with  annual   turnover   (2018-­‐19)   US$   4.8   billion   .  Its   daily   milk   procurement   is   approx   23  million   lit   per   day   from   18700   village   milk  coopera@ve   socie@es,   18   member   unions  covering   33   districts,   and   3.6   million   milk  producer  members.  

 

The  Amul  Model  

What  are  the  Challenges  The   factors   which   are   impac@ng   the  sustainability   of   dairying   include  chal lenges   associated   with   low  produc@vity   of   milch   animals,   price  vola@lity   due   to   integra@on   with   the  global   market,   lack   of   awareness   on  scien@fic   animal   management,   animal  healthcare,   shio   to   non-­‐dairy   ac@vi@es  especially  by  the  younger  genera@on.  

Produc@vity  Enhancement  through  Gene@c  Progress  

Advanced  Reproduc@ve  Technologies  (ARTs)  to  accelerate  the  gene@c  progress  to  increase  produc@vity,  produc@on  and  return  to  farmers.  These  ARTs  include  –   (Con@nue…)  

1.   Use  of  sex  sorted  semen   in  our  AI  programmes  to  produce  only  female  calves.    

2.   Use   of   genomic   applica@on   in   our   selec@on  programmes  has  immense  poten@al  to  expedite  the   gene@c   progress.   Use   of   genomics   will  increase   the   accuracy   of   our   animal   selec@on  programme.  

3.   Ovum   pick-­‐up   and   In-­‐vitro   Embryo   produc@on  technology   is   a   powerful   tool   for   introducing  superior  germplasm  in  our  milch  animal  herd  at  a  much   faster   rate   and   thereby   shortening   the  period  of  gene@c  progress.    

Ensuring  Healthier  Animals  NDDB   has   been   propaga@ng   the  concept   of   Ethno   Veterinary   Medicine  (EVM)  for  14  major  ailments  in  bovines.  This   offers   a   very   cost-­‐effec@ve,   easy  and   effec@ve   op@on   to   the   farmers   to  manage   these   ailments   including  mas@@s   with   ingredients   which   are  usually  available  locally.  This  will  reduce  the  use  of  drugs  &  an@bio@cs.  

Improving  Animal  Produc@vity  through  Scien@fic  Nutri@onal  Technologies  

Ra@on   Balancing   Programme   (RBP)  under   Na@onal   Dairy   Plan-­‐   Phase   I  covering  about  2.8  million  milch  animals  has   successfully   demonstrated   that  feeding   balanced   ra@on   to   milch  animals   results   in   improved   milk   yield  and   increase   in   net   income   of   farmers  by  Rs.  15-­‐25  per  day.    

Taking  Digital  Technology  to  Farmers  With   registra@on   of   more   than   17.5  million   milch   animals   for   providing  animal   breeding,   nutri@on   and   health  services   to   10.2  million  milk   producers,  the   database   has   created   huge  opportuni@es   to   analyse   the   impact   of  animal   breeding,   nutri@on   and   health  interven@ons   to   improve   on   the  schemes  and  quality  of  service  delivery.  

Crea@ng  Efficient  Dairy  Infrastructure  Crea@ng   Efficient   Dairy   Infrastructure  for   process   automa@on,   u@lisa@on   of  non-­‐conven@onal   sources   of   energy,  reduc@on   in   losses,   savings   in   u@lity  consump@on.   These   would   lead   to  efficient  plant  opera@ons,   reduced  cost  of  opera@ons  and  improved  opera@onal  safety   and   hence   be[er   returns   to   the  dairy  farmers.    

Quality  of  Food  and  Feed  • NDDB   has   recently   launched   ‘Quality  M a r k ’   f o r   P r o d u c e r   Own e d  Ins@tu@ons.   This   provides   dairy  c o o p e r a @ v e s   a n d   p r o d u c e r  ins@tu@ons   the   much-­‐needed   brand  iden@ty  and  a  compe@@ve  edge.    • NDDB   has   launched   a   ‘Quality   Mark’  for   ca[le   feed   and   mineral   mixtures  manufactured  in  the  coopera@ve  

Africa   today   is  where   India  was  40   years   ago.   In   the   coming  decade,  Africa  will  drive  growth  for   global   markets.   McKinsey  es@mates  Africa  has  60  per  cent  of   the   world’s   uncul@vated  arable   land,   making   it   ripe   for  green  revolu@on.    

Dairy  Industry  In  Africa  

(Con&nue…)  

•  Dairy   is  one  of   the  most   important  agricultural   sector   in   Sub-­‐Saharan  Africa   with   a   huge   poten@al   for  a l l e v i a@on   o f   pove r t y   and  improving   food   security   and  nutri@on.  

•  Produc@vity   is   extremely   low   with  some   countries   in   Africa   recording  as   low   as   200   kgs   per   year   cow  compared   to   over   10000   kgs   per  cow  per  year  in  some  countries.  (Con@nue…)  

•  Infrastructure  s@ll  undeveloped  •  Milk   consump@on   in   Africa   is   the  lowest   es@mated   at   36kgs   per   capita  per   annum   as   compared   to   WHO  recommended   consump@on   of   200  kgs.    

•  Dairy  produc@on  growth  is  s@ll  below  the   2%   mark,   with   the   total  con@nental  produc@on  accoun@ng  for  less   than   3%   of   the   total   world   milk  produc@on.  

Opportuni@es  In  Dairy  Sector  In  Africa  

There   is   a   poten@al   in   inves@ng   in  processing  of  milk  for  local  markets  and   exports.   The   opening   of   milk  plants   through   Indian   investments  wi l l   provide   the   low   cost/  affordable   technologies   and  equ ipment   fo r   sma l l   s ca le  processing.   (Con@nue…)  

•  Establishment  of  reliable  collec@on  centers  in  the  major  producing  areas  and  transporta@on  of  milk  to  the  processing  plants.  

•  Establishment  of  more  processing  plants  to  cater  for  the  excess  produc@on  for  Bu[er,  Cheese,  Yoghurt,  Ice  Cream,  etc.   (Con@nue…)  

•  Local  commercial  dairy  breeding  and  produc@on  of  Semen  will  reduce  the  importa@on  of  heifers.  •  Local  and  regional  cold  distribu@on  chain  to  minimize  produc@on  loss  and  deteriora@on.  

Indian  Dairy  Market  worth  US$  84  billion  

Interna@onal  Market  Analysis  Research  and  Consul@ng  Group  (IMARC),  2015  

THANK YOU ALL !