Dairy Processing

Dairy Production and Processing as an Enterprise: Retrospect and Prospects

Author: Dr.Dalip K. Gosain

Dairy Production and Processing as an Enterprise: Retrospect and Prospects

DALIP K. GOSAIN

Programme Coordinator

Krishi Vigyan Kendra & Dairy Training Centre

National Dairy Research Institute

Karnal 132001

In India the Micro and Small Enterprises (MSEs) sector plays a pivotal role in the overall industrial economy of the country. It is estimated that in terms of value, the sector accounts for about 39 per cent of the manufacturing output and around 33 per cent of the total export of the country. Further, in recent years the MSE sector has consistently registered higher growth rate compared to the overall industrial sector. The major advantage of the sector is its employment potential at low capital cost. As per available statistics, this sector employs an estimated 31 million persons spread over 12.8 million enterprises and the labour intensity in the MSE sector is estimated to be almost 4 times higher than the large enterprises. (1)

Definition for SMEs is often considered to be an obstacle for business studies and market research. Definitions in use today define thresholds in terms of employment, turnover and assets. They also incorporate a reasonable amount of flexibility around year-to-year changes in these measures so that a business qualifying as an SME in one year can have a reasonable expectation of remaining an SME in the next. The thresholds themselves, however, vary substantially between countries. As the SME thresholds dictate to some extent the provision of government support, countries in which manufacturing and labour-intensive industries are prioritized politically tend to opt for more relaxed thresholds. [1]

India has witnessed remarkable increase in milk production from 17 million tonnes in 1951 to 110 million tonnes in 2010. This increased milk production is because of the scientific interventions made in the areas of scientific dairy farming being practiced under rural situation or by the geometrical propagation of the dairy animals is of great concern to all of us. But it is an admitted fact that the technologies developed in the areas of dairy production and processing have grown fast especially in the last two decades and adoption of these technologies have enhanced the overall milk production in the country.

Dairying in India is being practice as a integral component of the mixed farming system and is the most prevalent farming system in the country. Production of milk from the cattle and buffaloes comprises of Dairy production whereas making different products from the milk is considered as Dairy Processing in a broader sense.

It's only in the recent past that diary production and processing have emerged out as enterprises which have immense potential for generating income and employment especially in the rural areas and also amongst the entrepreneurs in urban areas. .  Krishi Vigyan Kendra and the erstwhile Trainees Trainer Centre (TTC) now known as Dairy Trainers Centre (DTC) of National Dairy Research Institute, is functioning since July, 1976 and till December, 2009 the Kendra and the training centres have organized 1,245 training programmes on Scientific Dairy Farming in which 26,409 beneficiaries were trained whereas in the area of dairy processing 99 training were organized in which 1313 were trained.

In the present paper an attempt has been made to analyse the various enterprises in the area of dairy production and processing in which the trainees were benefited the success stories can replicated in different states of the country by the entrepreneurs to take up dairy farming or dairy processing as a venture for earning the livelihood that will not only generate income for them only but will provide employment who will be employed at their units.

Small Scale and Commercial Dairy Farming Units:

India ranks first in the world as per the milk production is concerned to the tune of 110 million tones. As on today the country has around 199.5 million buffaloes and around 100 million cattle. The country has the wealth of 58 percent buffaloes and around 16 percent cattle of the world. The concept of Scientific Dairy Farming if adopted in totally could be a boom for the Dairy farm families and as well as the entrepreneurs.

Various studies has been conducted by the Krishi Vigyan Kendra have indicated that the trainees have gained the knowledge as well has shown high level of the adoption of the technologies in the area of animal breeding, feeding and health care management and clean milk production that has lead to more milk productions whereby the gain in income has been experienced by the beneficiaries.

The concept of commercial dairy farming is coming up in the country as a whole and the young entrepreneurs both from the rural and urban areas are taking it up as enterprise as the same is also being backed up by the state Dairy Development Departments as well as the banking sector. A handful of the case studies conducted and the impact analysis analyzed through the capacity building programmes organized by the Krishi Vigyan Kendras and Dairy Training Centers are presented here.

In district Karnal the Scientific Dairy Farming is being practiced by the dairy farmers and farm families and by adoption of the dairy production technologies they are getting more milk now through their dairy animals whereby their income has increased. The commercial dairy farmers in the district are having a herd size of 75 diary animals comprising both cattle and buffaloes. They are producing the milk to the tunes of 10-12 hundred liter per day which they are selling to organized processing units.

Dairy farming in a system's perspective has various sub-systems like breeding, feeding, fodder production, fodder conservation, health care, management, shelters and milk production.  Each of these sub-systems has a direct or indirect bearing on the herd productivity. There is need that the animal breeders and the dairy farmers should under stand the significance of each sub-system of dairy farming which requires systematic planning, so that the sustainable dairy production continues through scientific breeding of dairy animals.

In various areas of breeding, feeding, health care and management skills could be developed whereby using these entrepreneurs can take any of these ventures for earning their livelihood.

Breeding: In this area of dairy farming the progressive dairy farmers of the district Karnal and from other district of Haryana, Punjab states are producing elite cross breed cattle like Karan Fries as well as Murah buffaloes which they are selling at higher prize whereby they are gaining income from this venture. Some of the young unemployed youth may be identified in various districts and be trained as lay inseminators in providing Artificial Insemination services for dairy animals in villages this will provide employment to these youth in the rural areas and rural people will be benefited from the services provided by them for their dairy animals.

Feeding: In the area of feeding through adoption of the cost effective technologies the milk production cost has been lowered whereby the dairy farmers have gained in income. Through the silage making and feeding technologies the commercial dairy farmers are getting good income.  Some of the progressive dairy farmers have established at their own dairy farms small scale feed formulation unit. Based on the complete  ration formulation technologies provided by the NDRI experts these enterprising dairy farmers are making the cattle feed at their farm as they are not purchasing the costly feed from other agencies whereby they are saving money.

One of the entrepreneur have established feed formulation factory at Karnal and the factory is producing the complete feed in quintals every day and the same is being sold at Haryana, Punjab and Himachal Pardesh. Entrepreneurs can take up this activity as a business enterprise.

Mineral mixture is essentially required and is to be fed to dairy animals. It was observed that a self help group of women of Parmanu area of Solan District after imparted training were manufacturing mineral mixture which they were not only feeding to their dairy animals but were also engaged in selling it to other dairy farm families at a cheaper price with better quality. The entrepreneurs can learn the lesson from these examples and can enter in the venture they are interested in.

The KVKs can play an important role to promote Dairy Production and Dairy Processing as an Enterprise through training programmes. Since July 1976 till December 2009 KVK of NDRI organized total 3601 trainings in which:  74,706 participants were trained. Out of all training programmes this KVK organized 1245 trainings on Scientific Dairy Farming and 99 on Dairy Processing in which 26,409 and 1313 participants were trained.

The experts of this KVK could record the highest milk yield of 59.5 Kg. in one cross bred cattle in one day on 21-22 February 2009 in a village. The trainees not only sell the milk in the town or to the milk plants through scientific dairy farms but the superior germ plasm of cross-bred cattle have gone to various states of the country through cross bred animals. In a study conducted in ten villages of Karnal indicated that the knowledge level of the respondents in areas of dairying, viz., breeding, feeding health care, management and fodder production was 35.42, 48.56, 51.28, 53.43 and 56.04 per cent, respectively whereas, the extent of adoption of recommended dairy farming practices was 73.76, 68.32, 61.56, 63.60 and 37.53 per cent in these areas respectively. The overall adoption level was 58.26 per cent.

Impact of the training porgarmmes in the area of Dairy Processing

In the area of dairy processing, methodologies for separation of cream from milk, preparation of butter, indigenous dairy products like ‘ghee', ‘channa', ‘khoa', curd, ‘paneer', ‘burfi', ‘kalakand', ‘gulabjamun', ‘rasogolla', etc. were demonstrated through training programmes to the small-scale dairy owners and entrepreneurs. Small-scale dairy owners and the trainees have adopted these technologies. There are nearly 70 small-scale dairies in Karnal district and each dairy handles around 2-16 quintals of milk per day depending upon the infrastructure facilities with the dairy owners and the availability of milk. Most dairy owners have adopted the dairy processing technologies. The KVK experts have helped the trainees in formulating the projects and provided the information for the required equipments and skills to start this venture.

Conclusion:
Based on the analyzed data and the impact studies it was found that after attending the various training prograames on dairy production and processing there was gain in knowledge and skill of the beneficiaries. After adoption of the newer technologies learnt by the entrepreneurs they experienced significant gain in income and employment. It is recommended that various KVK should tailor and organize need based vocational training programmes for entrepreneurship development so that the dairy production and processing as enterprises are promoted  to benefit the rural people.

References:
[1]wiki/Small_and_medium_enterprises+sector+accounts+for+about+39%+of+the+manufacturing+output

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