Model Report For Benchmark Survey

Centrally Sponsored Scheme
NATIONAL PROGRAMME FOR

BOVINE BREEDING AND DAIRY
DEVELOPMENT
Benchmark Survey Report
Sponsored by
Department of Animal Husbandry, Dairying and Fisheries
Government of India
Implemented by
Malabar Regional Cooperative
Milk Producers Union Ltd.
Report from
Dr N.R. Unnithan
2014
ACKNOWLEDGEMENT
I am immensely grateful to Sri. P.T. Gopalakurup, Chairman, and

Sri. P.K. Pathak, Managing Director and other Board of Directors of Kerala
Cooperative Milk Marketing Federation Ltd. (KCMMF) for initiating the
Benchmark Survey for the National Programme for Bovine Breeding and
Dairy Development, a centrally sponsored scheme. I am also indebted to Sri.
K.N. Surendran Nair, Chairman, Sri. K.T. Thomas, Managing Director and other
Board of Directors of Malabar Regional Cooperative Milk Producers Union Ltd.
(MRCMPU) for commissioning the study in Malabar and for their confidence in
entrusting the study with me. During the course of study, I received
considerable support and assistance from several officers and employees of
KCMMF and MRCMPU who were kind enough to spend their time to share
their valuable experience and in providing the required information. They are
too many to be mentioned here. My sincere thanks to all of them especially to
Sri. Jimmy Abraham, General Manager (P&P) and Sri. K.G. Satheesh, Senior
Manager (Mktg & HR) from KCMMF and Sri. Babu Varghese, Manager
(PP) from MRCMPU. My thanks are also due to Sri. G. Selvakumar, Sr.
Manager (P&I) and Sri. P.A. Ramesan, Manager (Mktg) for helping me in
carrying out the household survey in six districts of Malabar. My sincere
thanks to all the respondents of household survey who were kind enough to
spend their valuable time to provide the required information. My sincere
gratitude is also due to Sri. N.P. Roopesh, Technical Officer, Head Office,
MRCMPU for helping me with the data management and for assisting me in
writing up the report.
Thanking all once again,
Thiruvananthapuram Dr Unnithan N.R.

June 2014 Consultant (Dairy & Livestock)
Former MD, KLD Board
Acronyms
AHD/DAH Animal Husbandry Department

AMCU Automatic Milk Collection Unit
APCOS Anand Pattern Cooperative Society
BMC Bulk Milk Cooler
CFU Colony Forming Units
CMP Clean Milk Production
DCS Dairy Cooperative Society
DDD Department of Dairy Development
EMT Electronic Milk Tester
FRMS Fund Release Monitoring System
FSMS Food Safety Management System
FSSA Food Security and Standards Act
GOI Govt of India
GOK Govt of Kerala
HACCP Hazard Analysis and Critical Control Procedure
KCMMF Kerala Cooperative Milk Marketing Federation
Kg Kilogram
LPD Liter Per Day
LLPD Lakh Liter per Day
LR Lactometer Reading
LSG Local Self Government
MBRT Methylene Blue Reduction Time
MCP Milk Chilling Plant
Milma Kerala Cooperative Milk Marketing Federation
MoAH&D Ministry of Animal Husbandry and Dairying
MRCMPU Malabar Regional Cooperative Milk Producers Union
MRDF Malabar Rural Development Foundation
MT Metric Ton
NA Not Available
NDDB National Dairy Development Board
P&I Procurement and Input
PFA Prevention of Food Adulteration
PUF Poly Urethane Foam
QA Quality Assurance
QC Quality Control
QCA Quality as Competitive Advantage
RC Reconstitution
RKVY Rashtriya Krishi Vikas Yojana
RSVY Rastriya Swayam Vikas Yojana
SC Scheduled Caste
SCC Somatic Cell Count
SIQCMP Strengthening Infrastructure for Quality and Clean Milk
Production
SNF Solid Non Fat
SPC Standard Plate Count
ST Scheduled Tribe
TMC Technical Management Committee
TCS Traditional Cooperative Society
TOR Terms of Reference
CONTENTS
Page
No. Topic
No.
1 Introduction 1
2 Palakkad District 11
3 Malappuram District 57
4 Kozhikode District 99
5 Wayanad District 141
6 Kannur District 186
7 Kasaragod District 227
Annex.
Information and Communication System -
1
NPDD
List of Tables
Table Page
Table
No. No.
2.1 Chilling Facility in Palakkad District during March 2014 21
Amount Spent and Infrastructure Created under CSS in
2.2 24
Palakkad Dairy
2.3 Processing Equipments and Machineries in Palakkad Dairy 24
2.4 Infrastructure for Ghee Production Palakkad Dairy 27
Additional Facilities Suggested for Palakkad Dairy under
2.5 28
NPDD
2.6 Milk and Milk Products Sale Palakkad District 30
Market Size for Milk and Market Share in Palakkad District
2.7 31
2013-14
Marketing Facilities Available under MRCMPU in Palakkad
2.8 32
District March 2014
List of Activities and Equipments Suggested for Market
2.9 34
Development in Palakkad District 2014-15 to 2016-17
2.10 Profile of DCS in Palakkad District 2013-14 40
2.11 Palakkad District Av. Milk Quality 2013-14 42
Components Suggested under NPDD for Strengthening the
2.12 43
Milk Procurement in Palakkad District 2014-15 to 2016-17
2.13 Farm Equipments Supplied to Farmers in Palakkad District 46
Cattle Sheds and Farm Machineries Suggested under NPDD
2.14 46
Palakkad District
2.15 Cattle Induction Program Proposed for Palakkad District 47
Equipments and Facilities Suggested for Quality Control Lab
2.16 48
Palakkad Dairy under NPDD (2014-17)
2.17 Assistance under SIQCMP in Palakkad District 48
CMP Kits Suggested under NPDD in Palakkad District (2014-
2.18 49
17)
Technical Input Services Components and Achievements
2.19 50
Palakkad District
2.20 Technical Input Services for Palakkad District 50
Information and Communication Technology Networking-
2.21 52
Palakkad District
Farmers and DCS Employees Trained under IDDP/SIQCMP in
2.22 53
Palakkad District during the Last Five Years
2.23 Training Suggested under NPDD 2014-15 to 2016-17 54
The Amount Required to Pay Milk Value for 21 Days in
2.24 56
Palakkad District
3.1 Chilling Facility in Malappuram 2013-14 67
3.2 Existing Equipments in Nilambur Milk Chilling Plant 69
Equipments Suggested under NPDD for Milk Processing in
3.3 70
Malappuram District
3.4 Milk and Milk Products Sold in Malappuram District 72
3.5 Supply Demand Position in Malappuram District 2014 73
3.6 Existing Marketing Facility Malappuram District 2013-14 74
Introduction
Marketing Infrastructure Proposed for Malappuram District

3.7 74
under NPDD Programme
3.8 Profile of DCS in Malappuram District March 2014 81
3.9 Average Quality of Milk in Malappuram, 2013-14 82
Suggested Support for Milk Procurement under NPDD
3.10 84
Malappuram District
Farm Equipments Supplied from MRCMPU and MRDF to
3.11 86
Farmers in Malappuram District
Cattle Shed and Farm Machineries Proposed under NPDD for
3.12 87
Malappuram District
3.13 Cattle induction Program Proposed in Malappuram District 88
3.14 Establishment of Laboratories under NPDD in Malappuram 89
CMP Kits Supplied under SIQCMP Scheme in Malappuram
3.15 91
District
CMP Kits and Milking Machines Suggested under NPDD for
3.16 92
Malappuram District
Technical Input Services Suggested in Malappuram District
3.17 93
under NPDD
3.18 94
Malappuram District
Employees and Elected Members Trained from
3.19 95
Malappuram District
Proposed Training Program under NPDD
3.20 97
Malappuram District
The Milk value due for 21 Days in Malappuram District to
3.21 98
Farmers
4.1 Milk Chilling Facility in Kozhikode District 2013-14 108
4.2 Quality Comparison of BMC and Dock Collected Milk 108
4.3 Kozhikode Dairy Existing Facilities and Equipments 111
4.4 Equipments Suggested for Kozhikode Dairy 112
4.5 Progress of Milk and Milk Products sale in Kozhikode District 114
Existing Marketing Infrastructure Kozhikode District March
4.6 115
2014
Estimation of Market Size and Market Share of Milma in
4.7 115
Kozhikode District 2014
Additional Marketing Infrastructure Suggested for Kozhikode
4.8 117
District
4.9 Profile of DCS Kozhikode District 2013-14 122
4.10 Kozhikode District Milk Quality (average) 2013-14 124
Milk Procurement Activities Suggested under NPDD
4.11 126
Kozhikode District
4.12 Farm Equipments Supplied to Farmers in Kozhikode District 128
4.13 129
for Kozhikode District
Cattle Induction Program Suggested under NPDD Kozhikode
4.14 130
District
6
Introduction
Establishment of Laboratories in Kozhikode District under

4.15 131
NPDD
CMP Kits Supplied under SIQCMP Scheme in Kozhikode
4.16 133
District
CMP Kits and Milking Machines Suggested for Kozhikode
4.17 133
District under NPDD
Technical Input Services Achievements in Kozhikode District
4.18 134
under Earlier Schemes
Technical Input Services Suggested in Kozhikode District
4.19 135
under NPDD
4.20 137
Kozhikode District
Employees and Elected Members Trained from
4.21 137
Kozhikode District
4.22 Proposed Training Program under NPDD Kozhikode District 139
Amount Required to Pay Milk Value for 21 Days in
4.23 140
Kozhikode District
5.1 Milk Chilling Facility in Wayanad District March 2014 149
5.2 Details of Investments in Wayanad Dairy after Commissioning 150
Milk and Milk Products Manufactured in Wayanad Dairy
5.3 150
during 2013-14
5.4 Wayanad Dairy Existing Facilities and Equipments 151
Additional Equipments Suggested for Wayanad Dairy under
5.5 153
NPDD (2014-17)
Milk Marketing Activities Carried Out in Wayanad District
5.6 154
under CSS
5.7 Milk and Milk Products Sold from Wayanad Dairy 155
5.8 Calculated Market Share in Wayanad District 2013-14 157
Existing Market Promotion Amenities in Wayanad
5.9 158
as on 31-3-2014
The Suggested Infrastructure under NPDD for Marketing in
5.10 161
Wayanad District
5.11 The Profile of DCSs in Wayanad District 167
Quality of Milk Collected from Farmers
5.12 168
in Wayanad District 2013-14
Support for Milk Procurement Suggested for Wayanad District
5.13 170
under NPDD
Farm Equipments Supplied to the Farmers in Wayanad
5.14 172
District
5.15 174
for Wayanad District
5.16 Cattle Induction Program Suggested in Wayanad District 175
5.17 Establishment of Laboratories in Wayanad District 176
CMP Kits Supplied under SIQCMP Scheme in Wayanad
5.18 177
District
CMP Kits and Milking Machines Suggested for
5.19 177
Wayanad District under NPDD
7
Introduction
Technical Input Services Components and Achievements in

5.20 178
Wayanad District
Wayanad District Technical Input Services
5.21 179
Suggested under NPDD
Information and Communication Technology Networking
5.22 181
Wayanad District
Employees and the Elected Members Trained in Wayanad
5.23 182
District
5.24 Proposed Training Program under NPDD Wayanad District 184
5.25 Value of Milk Procured in 21 Days from Wayanad District 184
Working Capital Required in Wayanad District 2014-15 to
5.26 185
2016-17
6.1 Milk Chilling Facility in Kannur District 2013-14 195
6.2 Kannur Dairy: Existing Facilities and Equipments 196
Equipments and Machineries Proposed for Kannur Dairy
6.3 198
under NPDD (2014-2017)
6.4 Milk and Milk Products Sold in Kannur District 200
6.5 Estimation of Market Size for Milk Kannur District 2014 201
Status of Marketing Infrastructure in Kannur District
6.6 202
March 2014
The Suggested Infrastructure under Marketing in Kannur
6.7 205
District
6.8 Profile of DCSs in Kannur District 2013-14 210
6.9 Kannur District Av. Milk Quality 2013-14 211
6.10 Suggested Milk Procurement Activities in Kannur District 213
6.11 Farm Equipments Supplied to Farmers in Kannur District 216
Cattle Sheds and Farm Machineries Proposed under NPDD for
6.12 217
Kannur District
Cattle Induction Program Suggested under NPDD for
6.13 217
Kannur District
6.14 Establishment of Laboratories under NPDD in Kannur District 218
6.15 CMP Kits Supplied under SIQCMP Scheme in Kannur District 219
CMP Kits and Milking Machines suggested under NPDD for
6.16 220
Kannur District
Technical Input Services: Components and Achievements in
6.17 220
Kannur District
Technical Input Services Proposed in Kannur District under
6.18 221
NPDD
6.19 222
Kannur District
6.20 Employees and Elected Members Trained in Kannur District 223
6.21 NPDD HR Kannur District 2014-15 to 2016-17 225
6.22 Milk Collected from Kannur District, Milk Value for 21 Days 226
6.23 Working Capital Requirement for Kannur District 226
7.1 Status of Milk Chilling Facility Kasaragod District, 2013-14 235
Amount Spent and Infrastructure Created under CSS in
7.2 237
Kasaragod Dairy
8
Introduction
Processing and Allied Equipments and Machineries Installed

7.3 238
in Kasaragod Dairy
Equipments and Machineries Suggested for Kasaragod
7.4 240
District under NPDD
Progress in Sale of Milk and Milk Products in Kasaragod,
7.5 243
2013-14
7.6 Estimated Market Size of Milk in Kasaragod District, 2014 244
7.7 Existing Milk Marketing Facilities in Kasaragod, 2013-14 245
7.8 Marketing Infrastructure Suggested for Kasaragod District 248
7.9 Profile of DCS in Kasaragod District March 2014 253
7.10 Kasaragod District Av. Milk Quality 2013-14 254
Kasaragod District Suggested Milk Procurement Facilities
7.11 256
under NPDD 2014-17
7.12 Farm Equipments Supplied to Farmers in Kasaragod District 259
Kasaragod District Cattle Shed and Farm Machineries
7.13 260
Suggested under NPDD 2013-17
Cattle Induction Program Suggested in Kasaragod District
7.14 260
under NPDD 2014-2017
Kasaragod Dairy Laboratory Facilities Requested under NPDD
7.15 261
2014-17
CMP Kits Supplied under SIQCMP Scheme in Kasaragod
7.16 263
District
CMP Kits and Milking Machines Suggested for Kasaragod
7.17 263
District under NPDD
Technical Input Services Components and Achievements
7.18 264
Kasaragod District
7.19 Technical Input Services for Kasaragod District 264
7.20 266
Kasaragod
Training of Employees and Elected Members in Kasaragod
7.21 267
District
Manpower Development Kasaragod District Suggested
7.22 269
Programs under NPDD 2014-15 to 2016-17
Actual and Calculated Milk Value for 21 Days in Kasaragod
7.23 270
District
Working Capital Requirement for Three Years from 2014-15
7.24 271
for Kasaragod District
9
Introduction
1. NATIONAL PROGRAMME FOR BOVINE BREEDING

AND DAIRY DEVELOPMENT (NPBBDD)
Contents
1.1 The Programme 2

1.2 Objectives 3
1.3 Funding Pattern 3
1.4 Funding Limit 4
1.5 Implementing Agencies 4
1.6 Project Preparation and Submission 5
1.7 Benchmark Study 5
1.8 Organization of the Report 10
10
Introduction
1.1 The Programme during the 12th Five Year Plan. It

The Centrally Sponsored Scheme has two components, (a) National
National Programme for Bovine Programme for Bovine Breeding
Breeding and Dairy Development (NPBB), and (b) National
(NPBBD) is being implemented Programme for Dairy Development
nationwide by the Government of (NPDD). NPBB will focus amongst
India. The current phase of the other things on extension of the
programme is from 2014-15 to Field Artificial Insemination (Al)
2016-17 and is likely to be Network, monitoring of Al
continued in subsequent Plans. programme, development and
The NPBBDD has been formulated conservation of indigenous breeds
by merging four ongoing schemes and establishment of breeders'
of the Department of AHD Dairying associations and societies to
and Fisheries. These are the encourage conservation and
National Project for Cattle and development of recognized native
Buffalo Breeding (NPCBB), breeds of cattle and buffalo.
Intensive Dairy Development
The NPDD component of NPBBDD
Programme (IDDP), Strengthening
scheme has been designed to
Infrastructure for Quality and
develop infrastructure from the
Clean Milk Production (SIQ and
grass root level by providing
CMP) and assistance to
financial and technical assistance
cooperatives. This has been done
for dairy development. NPDD will
to integrate milk production and
dairying activities in a scientific focus on creating infrastructure
and holistic manner for attaining related to production, procurement,
higher levels of milk production processing and marketing of milk
and productivity, to meet the by milk unions/federations and
increasing demand for milk in the also extension activities including
country. training of farmers. The major

objectives of NPDD can be
The scheme will be implemented
summarized as follows.
with an allocation of Rs 1800 crore
11
Introduction
1.2 Objectives 1. Milk chilling facilities at

1. Create and strengthen Village, Block and District
infrastructure for production levels.
of quality milk including cold 2. Civil works.
chain infrastructure linking 3. Equipment for Bulk Milk

the farmers to the Coolers and Chilling Centers.
consumers. 4. Milk Processing and

Marketing.
2. Create and strengthen
5. Milk Procurement.
infrastructure for procurement,
processing and marketing of 6. Cattle Shed.
milk. 7. Cattle Induction.
8. Construction/Establishment
3. Create infrastructure for
of Milk and Milk Product
training of dairy farmers.
Testing Laboratories.
4. Strengthen dairy cooperatives/
9. Clean Milk Production Kits.
Producers companies in
10. Technical Input Services.
villages.
11. Information and
5. Increase milk production by Communication Technology.
providing Technical Input 12. Manpower and Skill
Services like cattle feed, Development.
minerals and so on.
13. Working Capital for DCS and
6. Assist rehabilitation of Milk Union.
potentially viable Milk 14. Rehabilitation of Defunct/

Federations/ Milk Unions. Sick.
15. Planning and Monitoring.

1.3 Funding Pattern 16. Centralized MIS Facility for
The major components that will DADF.
be funded under the NPDD are:
In districts where the National
Dairy Plan (NDP) is in operation,
12
Introduction
the NPDD will support only those components put together in a

components that are not included district. However, in the case of
in the former. Milk Unions and Federations
operating in more than one district
The pattern of funding for all
the funds can be pooled for
components under NPDD will be
creating centralized facilities like
100 per cent grant-in-aid except
Milk Powder Plant, Central lab and
for:
so on. However, the maximum
a. Installation of BMC;
assistance will be limited to Rs
b. Milk processing plants;
25.0 crore for processing capacity
c. Milk powder plants; and
one LLPD and more, Rs 15.0 crore
d. Rehabilitation of milk unions
for processing capacity up to
and federations
50,000 LPD and Rs 10.0 crore for
In the case of components a, b and processing capacity up to 20,000
c above, the funds will be limited LPD.
to 50 per cent of approved cost (90
per cent for North Eastern states 1.5 Implementing Agencies
and hilly districts) in NDP The State Implementing Agency
implemented states. In non NDP (SIA) will be the State Dairy
states the assistance will be 75 per Federation for states like Kerala
cent for profit making Unions
and 17 other states (see
(profit of Rs 1 crore and above) and
administrative approval for specific
90 per cent if the profit is less than
states) and Milk Unions in other
Rs 1 crore. In the case of
cases. The End Implementing
component (d) the maximum
Agencies EIAs are the District Milk
assistance will only be 50 per cent
Unions, New Generation Milk
of the project cost.
Producer Companies and District
Rural Development Authority
1.4 Funding Limit
where District Milk Unions do not
The central assistance will be
exist. The other agencies like
limited to Rs 15.0 crore for all
Universities, Colleges and ICAR
13
Introduction
institutions are classified as current study. With the following

Participating Agencies and eligible Terms of Reference (TOR):
for financial support (PIAs) if they 1. The Bench Mark of Milk
are associated or affiliated to SIAs production, Milk Procurement,
or EIAs. Technical Input Services
(including Cattle breeding,
1.6 Project Preparation and Fodder development,
Submission Transport of cattle feed and
A single comprehensive proposal Fodder, Health care, Clean
covering the requirements of all milk production Inputs, Other
EIAs in the state shall be prepared Extensions Activities etc.),
by the SIA and submitted for Milk Processing and Milk
consideration of the GOI. The Marketing, Manpower

development (Cooperative
proposal shall be prepared on the
Development, Training of
basis of a Baseline Survey to be
Farmers/Officials of DCS and
carried out by an independent
Milk Union) and Working
agency.
capital position of MRCMPU
during the year 2013-14.
1.7 Benchmark Study
The guidelines on NPDD mandate 2. The Bench Mark on Milk
a situation analysis. The situation Production and Milk
analysis shall include, a) Pre- Procurement should also
project Baseline survey by an include number of functional
independent agency, b) funding dairy cooperative societies,
under earlier programs, c) role and milk suppliers, and average
capabilities of different players, daily milk procurement per
and d) and areas of operation. dairy co-operative society and
Accordingly, the Malabar Regional for MRCMPU for the year
Cooperative Milk Producers Union 2013-14.
Ltd. (MRCMPU) commissioned the 3. Bench Mark the quality

assessment procedures in
14
Introduction
Dairy cooperative societies discussions, FGD and direct

and assess the current values observation by the
of FAT, SNF and MBRT at the Consultant.
DCS and Dairy levels.
8. Current status, adequacy/
4. Suggest key components inadequacy with reasons in
under Milk Processing and each component (current and
Marketing, Milk Procurement, EOP) and the suggestions for
Technical Inputs, Manpower inclusion under NPDD shall
Development and Working be highlighted.
capital in the NPDD Project
9. All the Bench Mark values/
for MRCMPU with
data shall be provided
justification for the same.
district-wise and at Union
5. Report and validate the level for the year 2013-14.
Annexure from I to VII and
provide data for Annexure VIII 1.7.1 Study Team
to X. which is given along A single man study team of Dr. N.
with this order. Ramachandran Unnithan (Dr N.R.
Unnithan), former Managing
6. The secondary data can be
Director of KLD Board has
gathered on each component
undertaken the study. Dr
from the available/published
Unnithan graduated from Kerala
sources including the reports,
University in 1968 (BVSc) and is a
records and MIS of Milk
Master of Science (Animal Genetics
Unions under the KCMMF.
and Breeding) from the prestigious
7. Primary data can be collected
Institute of Animal Genetics and
from randomly selected
Breeding, University of Edinburgh,
sources like DCS, farmers,
UK. He has more than forty three
sales outlets, distributors and
years of experience in livestock
other agencies and from all
production. Core skills are in the
Processing Dairies under the
design, development and
Unions through surveys, in
management of cattle farms and
depth interviews and
large scale Artificial Insemination
15
Introduction
(AI) programs, evaluation and 2010-11, Bench Mark Centrally

impact studies and applied Sponsored Scheme Strengthening
research. Infrastructure for Quality and
Clean Milk Production
Dr Unnithan has executed a
Thiruvananthapuram, Kollam,
number of evaluation studies and
Alappuzha and Pathanamthitta
field research. Recently concluded
Districts 2011 -12, Baseline Study
study (2010) on Cost of Production
on Establishment of a Dairy Plant
of Milk in Kerala is a landmark
in Malappuram District 2012,
study on the economics of milk
Baseline Study on Malabar Rural
production and marketing in the
Development Foundation 2012,
State. He spearheaded two major
Bench Mark Study on Special
national studies Evaluation of
Package for Mitigation of Agrarian
Central Fodder Development
Distress of Farmers in Idukki
Organization and Strengthening
District are some of them. The
Infrastructure for Quality and Clean
Evaluation Study on Intensive
Milk Production. Among the
Dairy Development Program
several other studies conducted by
(IDDP) 2013 implemented by
him, the Benchmark Survey for
MRCMPU and Evaluation Study
Centrally Sponsored Scheme IDDP
on Strengthening Infrastructure
Idukki District 2011,
for Quality and Clean Milk
Benchmark Survey for Centrally
Production (CMP) 2013 are the
Sponsored Scheme IDDP
recent ones. He has also
Palakkad, Malappuram, Kozhikode,
functioned as Chairman Research
Wayanad, Kannur and Kasaragod
Advisory Council, Project
Districts 2011, Benchmark Study,
Directorate on Cattle, ICAR,
Pathanamthitta District Centrally
Meerut, UP and member of
Sponsored Scheme IDDP 2010-11,
Working Group on Animal
Bench Mark Survey, Ernakulam,
Husbandry & Dairying National
Kottayam and Thrissur Districts
Dairy Plan, 12th FYP, National
Centrally Sponsored Scheme
Planning Commission. Dr
Strengthening Infrastructure for
Unnithans vast experience
Quality and Clean Milk Production
16
Introduction
spanning over forty three years in feed and fodder, milk price, CMP
livestock production and the procedures and so on). The same
insights gained through DCS were studied for gathering
monitoring and evaluations of information on milk procurement
dairy development programs have procedures and quality
enriched the outcome of this administration. Structured and
study. pre-tested questionnaire were
administered to elicit information
1.7.2 Study Method at different levels (Milk
The study has been accomplished Union/DCS) besides Focus Group
through a combination of different Discussion and personal
methods and tools. In order to interviews of farmers in villages.
identify the areas uncovered under The data generated has been
milk procurement and to study the analyzed to make informed
potential for milk collection a list judgments and draw conclusions.
of such Panchayats/Panchayat The details of sample size are
wards were prepared and two presented in table 1.
villages and households were
Table 1.1 Sample DCS and
selected at random and surveyed.
households - Milk Production and
To gather data from the existing
Disposal Survey
DCS area random sampling model
Sl. DCS Households
has been adopted. All DCS in the No.
District
Studied Surveyed
district were stratified into three 1 Palakkad 6 305
categories BMC DCS (having in- 2 Malappuram 3 300
3 Kozhikode 4 300
house BMC), Cluster DCS
4 Wayanad 3 299
(supplying milk to BMC) and 5 Kannur 6 300
Direct DCS (supplying in Dairy). At 6 Kasaragod 6 300
Total 28 1804
least one DCS from each stratum
and 15 farmers from each DCS
In addition to the milk production
was interviewed at random for
survey an independent consumer
chosen parameters (milk
survey has been carried out to
production, milk procurement,
understand milk consumption in
17
Introduction
all the six districts. The district collected from several sources -
has been stratified in to costal, available/ published sources
midland and high land and further including the reports, records and
sub stratified as urban and rural MIS of Milk Union, reports from
based on the revenue classification ISS of AHD, and Economic Review
(Municipality as urban and published by the State Planning
Panchayat as rural). At least one Board, Government of Kerala.
village each has been randomly Also, directed questionnaire were
selected from among the urban developed to gather information on
and rural villages and fifty house qualitative dimensions milk
holds studied to understand the collection procedure, quality
milk and milk powder consumed. testing, milk price payment,
The sample size for the consumer quality of input delivery system,
study can be found from table 1.2. etc. Personal interviews and
discussion with field staff, staff
The data has been analyzed and
members of DCS, executives of the
studied to under stand the milk
Milk Union yielded enormous
production and disposal pattern
volume of information on systems
in villages, and household
and procedures followed in the
consumption of milk in rural and
Field as well as in the Dairy. The
urban areas. The secondary data
market information was gathered
on each component has been
through interviewing retail dealers
Table 1.2 Sample DCS and Households - Milk Consumption Survey
Sl. Rural Urban Total

District
No. Villages Houses Villages Houses Villages Houses
1 Palakkad 2 100 4 200 6 300
2 Malappuram 2 100 4 200 6 300
3 Kozhikode 3 148 3 150 6 298
4 Wayanad 5 250 1 55 6 305
5 Kannur 3 150 3 150 6 300
6 Kasaragod 4 200 2 100 6 300
Total 19 948 17 855 36 1803
18
Introduction
and customers. The information overview of the programs

gained from the market and suggested.
consumption survey has been
extrapolated to deduce the market
size, market share and supply
demand position.
The primary and secondary

data collected and interactions
with officials/farmers/consumers
formed the basis for developing
this report.
1.8 Organization of the Report

The report is organized in seven
Chapters. The first chapter deals
on the contents of NPDD, the
context of the study and method.
The chapters two to seven deals on
milk processing, marketing,
procurement, cattle sheds and
farm mechanization, cattle
induction, milk testing lab, facility
for clean milk production in
villages, technical input services,
application of information
technology in dairy business,
training and working capital for
Milk Union in each district. The
chapters are district wise and an
executive summary in the
beginning provides a quick
19
2. PALAKKAD DISTRICT
Contents
Executive Summary ..........................................................................13

2.1 General Features .........................................................................17
2.2 Trend in Cattle Population ...........................................................19
2.3 Trend in Milk Production .............................................................19
2.4 Milk Chilling ...............................................................................20
2.5 Milk Processing ...........................................................................21
2.6 Milk Marketing ............................................................................29
2.7 Milk Procurement ........................................................................38
2.8 Cattle Shed and Farm Machineries ..............................................45
2.9 Cattle Induction ..........................................................................47
2.10 Establishment of Laboratories ...................................................47
2.11 Clean Milk Production ...............................................................48
2.12 Technical Input Services (TIS) ....................................................49
2.13 Information and Communication Technology Networking ..........51
2.14 Manpower Development.............................................................52
2.15 Working Capital Palakkad District ..........................................55
Introduction
Palakkad District
Palakkad
District
12
Introduction
Executive Summary
The Palakkad district is one of the dairy. Also the product

frontline dairy districts in Kerala. manufacturing line requires
Livestock farming is germane to certain additions on account of the
the vast majority of the farmers in export regulations. In addition, the
the district. The official statistics, dairy requires certain critical
however, show that the cattle equipments, some as standby and
sector, both in numbers and some as replacement. The
output, suffered setbacks since suggested additions and
late nineties. The cattle numbers replacements are estimated to cost
declined by 44 per cent from 1996 Rs 126.00 lakh.
to 2012. On the contrary the in-
The market survey shows that the
milk cows by increased by 44 per
supply-demand gap of milk in
cent during the same period.
Palakkad district is 80,600 LPD.
Concurrent with the increase of
The market share of MRCMPU in
cows in milk, the annual milk
the liquid milk segment in
production has shown an increase
Palakkad district is 47 per cent,
from 242 thousand MT (2001-02)
the highest among all the districts
to 384 MT (2012-13).
in Malabar. The Milk Union is
The MRCMPU has a processing facing fierce competition from the
dairy at Palakkad. The installed competitors, mainly from outside
capacity of the dairy is 1.0 LLPD. state and also from within the
During 2013-14, the dairy district to a smaller level. But the
processed on an average 1.79 market analysis reveals that this is
LLPD, 79 per cent above the not a restricting factor to
installed capacity. At the peak command a better market share.
procurement level during the year, The inadequate market
the dairys capacity utilization was infrastructure is one of the
200 per cent. Hence there is reasons for the low market share.
urgency in expanding the The dairys business plan may also
processing capacity of Palakkad require some revision. Hence an
13
Palakkad District
aggressive marketing strategy milk production and support for

supported by adequate cattle feed transport. The support
infrastructure is required. To suggested for procurement
begin with, new milk parlors and activities in Palakkad district is
Shoppe are suggested to be opened expected to cost Rs 500.35 lakh.
in prominent public places. Wide
The lack of good cattle sheds and
publicity through print and visual
farm machineries are identified as
media is also suggested. Periodic
the major constraints in dairy
market surveys and R&D on
production in Palakkad district.
consumer likes and preferences
Financial support for
(example attractive packing for
strengthening of old cattle
flavored milk, ice cream, peda,
sheds/construction of new ones
etc.) are also suggested. The
and supply of farm machineries
estimated cost on market
and equipments are proposed at a
promotion works out to Rs 382.20
total cost of Rs 82.50 lakh.
lakh.
In order to promote cattle keeping

The MRCMPU has built up an
among the below poverty line (BPL)
extensive net work of DCSs and
and the SC/ ST families, a cattle
BMCs for milk procurement from
induction program is suggested in
farmers. All the DCSs have
Palakkad district. The NABARD
reasonably good milk testing
norms shall be followed for
facilities. All the BMC DCSs have
administering the subsidies. The
facility for MBRT estimation. The
overall support for 240 animals is
field level milk testing, however,
estimated to be Rs 92.55 lakh.
requires further refinement. The
major constraints identified in the It is suggested to establish a
expansion of milk procurement central milk testing lab at
and clean milk production are lack Kozhikode dairy by pooling the
of convenient buildings for DCSs, funds from all the districts. This
absence of good quality water will eliminate the need for
supply facilities with some DCSs replication of the same facilities
and lack of incentives for clean
14
Palakkad District
and expenses in all the districts. Wayanad, Kannur, Kasaragod) and

Some additional equipments and a central server system linking all
furniture are also required in these six centers. The data and
Palakkad dairy lab. All these information will be made available
together are estimated to cost Rs to all the districts and DCSs. The
32.00 lakh. estimated cost of these in
Palakkad district is Rs 149.35
The other farmer beneficiary
lakh.
programs suggested are
distribution of stainless steel The HRD through training and
utensils, milking machines, etc. at skill development is a routine
a cost of Rs 17.49 lakh. activity of MRCMPU in Palakkad
district. Several programs were
The technical input services
running for the past few years. It is
include support for animal
suggested to scale up some of
breeding, animal health care and
these programs. The suggested
prophylaxis, fodder development
programs would cost Rs 57.45
and other associated activities for
lakh.
the benefit of participating farmer
members. The activities suggested The business plan of MRCMPU
except those being attended by the suggests substantial increase in
line departments will cost Rs milk procurement and sale in
48.20 lakh. Palakkad district. The milk
prices are to be paid to the farmers
The Palakkad district needs to
regularly which alone cost Rs 1261
network with the various units and
lakh or more every 21 days. In
the DCSs under MRCMPU for
addition, keeping a buffer stock of
effective information sharing and
raw and finished goods is essential
communication. The suggested
to safeguard an uninterrupted
system is a client server
business. This, as also several
architecture network with six
other requirements force the Milk
centers, one in each district
Union to borrow money from the
(Palakkad, Malappuram, Kozhikode,
open market which causes extra
15
Palakkad District
burden to the Union and the The suggested programs for

farmers. Hence it is suggested that Palakkad shall be summed up as
an amount of Rs 110 lakh shall follows.
be paid to the milk Union as a
one-time assistance for Working
Capital.
Amount
Component
(Rs in Lakh)
Milk processing and packaging 126.00
Milk marketing 382.20
Milk procurement 500.35
Cattle sheds and farm machineries 82.50
Cattle induction 92.55
Central testing laboratory 32.00
CMP kits and milking machines to farmers 17.49
Technical inputs services 48.20
Information and communication technology 149.35
Human resource development 57.45
Working capital 110.00
Total 1598.09
16
Palakkad District
2.1 General Features holding size is 0.39 ha/household.

Palakkad district measuring 4480 The principal farming system is
sq.km. belongs to the Malabar mixed crop livestock farming. The
region. According to the 2011 district contributes to the bulk of
Census, the district population is rice production (40 per cent of the
28.10 lakh and population density States production) in the State.
627/sq.km. which is far below the The much needed roughage, paddy
state average of 859/sq.km. straw, for ruminant nutrition and
Palakkad is surrounded on the milk production is a byproduct of
northwest by Malappuram district paddy production. Like in the rest
on the southwest by Thrissur of the State, bovine is the
district and on the east dominant species of livestock.
by Coimbatore district of Tamil Nearly two decades ago the district
Nadu. The district is sub divided had the highest draught animal
into 5 Taluks and 166 revenue population in the State. The
Villages. The three-tier LSG draught animal population started
include one District Panchayat, declining towards the later part of
thirteen Block Panchayats and the last century and the cattle
ninety three Grama Panchayats. composition changed in favor of
The climate is hot and humid, the cross bred dairy cattle. Milk
hottest months being March to production is extremely livelihood
June. The South West Monsoon intensive to almost all sections of
from June to September provides farming community, more so in
the bulk of the rain. The average the case of marginal, sub marginal
recorded annual rainfall is 2111 and land less groups.
mm (Wikipedia).
Livestock development and milk
Agriculture is the predominant marketing in the district are
income and employment provider looked after by a number of
in Palakkad. The vast majority of institutions. The AHD is in charge
the farmers belong to the marginal of the health care and breeding
group and the average land services. The important
institutions under the Department
17
Palakkad District
include one district office, one dairy and two milk chilling centers
District Veterinary Center, 4 apart from the two Procurement &
Veterinary Poly Clinics, 15 Input services Units one each at
Veterinary Hospitals, 78 Palakkad and Pattambi and one
Veterinary Dispensaries, 3 Mobile straw based cattle feed unit. The
Farm Aid Units, one Mobile district houses the largest cattle
Veterinary Dispensary and 72 feed plant under Milma at
ICDP Sub Centers for AI in cattle. Malampuzha, 8 km away from
The Department of Dairy Palakkad town. The Kerala
Development is in charge of the Livestock Development Board
livestock extension services and responsible for the frozen semen
administration of milk production and genetic
cooperatives. The Department has improvement of dairy cattle in the
one district office, 13 Dairy state has one bull station, one
Extension Service Centers, one training center and one fodder
quality control center and one seed testing lab at Dhoni in
Dairy Training Center. The Palakkad district.
MRCMPU has one milk processing
Fig 2.1 Trend in Cattle population Palakkad District

( source Cattle census Reports DAH GOK)
350000
300000
250000
Nu mb ers
200000
150000
100000
50000
0
1996 2000 2003 2007 2012
Total Cattle 303935 272981 263763 215095 169208
Cows in milk 82378 98034 84787 73986 118900
Buffalo in milk 10646 2198 1506 1379 5400
18
Palakkad District
2.2 Trends in Cattle little known. However, the vertical
Population drop in productive animals did not
Palakkad district has the highest impact the milk production in the
number of cattle, 12 per cent of district.
the total in the State. Cattle make

significant contribution to the 2.3 Trends in Milk
rural economy in the district. The Production
official statistics, however, shows The annual milk production (cattle
that the cattle sector registered and buffalo) increased from 2.43
severe setbacks both in numbers lakh MT during 2001-02 to 3.84
and outputs during the last one lakh MT during 2012-13 (See fig.
decade. The total cattle numbers
2.2). The increase is phenomenal.
went down by 44 per cent.
However, the spurt in milk
Surprisingly, the latest cattle
production from 2008-09 to 2012-
census (2012) shows that the
13 (74%) in less than four years is
proportion of cows in milk in the
incredible. The only possible
total cattle has increased from 27
explanation is the vertical increase
per cent to 70 per cent during the
in number of cows in milk. The
period. The only possible
daily milk yield works out to 8.85
explanation is that the there is
LPD per cow which indeed is
tremendous sex bias in favor of
realistic. The accuracy of ISS
dairy cows than bull/bullocks and
production estimates is debatable.
that the milk cows are purchased
However, in the absence of any
and not home bred and reared
other reliable estimate, the annual
thereby eliminating the dry cows
and young ones (See fig. 2.1). milk production from bovines in
Buffalo in the district was on the Palakkad District is taken as 3.84
verge of extinction, declined by 90 lakh MT and daily production as
per cent from 1996 to 2007 and 1083.04 MT. The pertinent
showed a marginal gain thereafter. question is does the spiraling milk
The reasons for the drastic fall in production show a corresponding

cattle and buffalo numbers are trend in milk procurement.
19
Palakkad District
Fig 2.2 Trend in Bovine Milk Production Palakkad District

(source ISS,DAH Kerala)
450
384.36
400
350
300
242.49
228.98
220.75
Milk '000 MT
216.19
207.67
205.23
250
200
150
100
50
0
2001-02 2002-03 2003-04 2004-05 2005-06 2008-09 2012-13
2.4 Milk Chilling low risk

The milk chilling facilities are the better microbial quality
BMCs installed in DCS and the better milk for product
two Milk chilling plants - one at manufacturing
Attappadi and the other at higher consumer preference
Pattambi. The position of milk (flavor and taste)
chilling in Palakkad district until no milk holidays on bandh
March 2014 is shown in table 2.1. days
Since the district has unused

The village based decentralized
chilling capacity among BMCs
chilling in BMCs is preferred over
additional BMCs are not proposed
the centralized chilling because:
in Palakkad district during the
less expensive
next two to three years.
20
Palakkad District
Table 2.1 Chilling Facility in Palakkad District during March 2014

Sl.
Description Quantity
No.
1 No. of BMCs commissioned up to March 2014 37
2 No. of DCS in which BMCs are positioned (BMC DCS) 33
3 No. of cluster DCS attached to BMCs 82
4 Total installed capacity of BMCs ltr. (TLPD) 150
5 Av. milk collected through BMC 2013-14 LPD 93000
6 % capacity utilization 62
7 Av. MBRT of BMC collected milk (minutes) 185
8 Av. SPC of BMC collected milk CFU/ml (lakh) 36
9 Av. Coliforms of BMC collected milk CFU/ml 3
10 No. of milk chilling plants 2
11 Installed capacity of MCP LPD 45000
12 Av. daily collection in MCPs LPD 46700
14 Av. MBRT from MCP collected milk NA
15 Av. SPC of MCP collected milk NA
16 Av. Coliforms of collected milk NA
17 No. of DCS supplying milk to MCP Attappadi NA
2.5 Milk Processing The Dairy procures milk from

Palakkad district only while the
2.5.1 Current Status
processed milk and milk products
Palakkad is one of the frontline
are marketed in Palakkad as well
dairy districts in the State. The
as in parts of Malappuram district.
district is not only self-sufficient in
The average daily procurement of
milk production but also has
milk during 2013-14 was 1.79
surplus especially during the
LLPD of which nearly 78 per cent
Flush Period (June to September).
is received as chilled milk (chilling
The Palakkad Dairy is the
plants and BMC put together). The
exclusive station to process the
remaining 22 per cent of non-
milk procured from the district.
chilled milk is chilled in the Dairy
This dairy is located at Kalleppully,
and stored.
5 km away from Palakkad town.
21
Palakkad District
2.5.2 Milk Processing Capacity milk procurement in other

and Capacity Utilization districts, Kozhikode and Kannur,
The composite processing capacity too peaks with little scope for
of Palakkad Dairy as decided by transferring the surplus milk.
the capacity of Pasteurizer, Therefore, the Palakkad Dairy is
Refrigeration Plant and Boiler often compelled to make distress
comes to one LLPD. As against sale or convert to SMP sustaining
this, the Dairy processed an heavy loss.
average 79 per cent above the
The dairy development activities
processing capacity.
from government, state and
The month-wise procurement of central, and Milk Union is
milk is shown as fig. 2.3. As is expected to further push up the
evident from the figure, milk production and milk
procurement touched two lakh procurement in the district.
LPD exceeding the handling Therefore, the procurement and
capacity almost 100 per cent processing capacity of the dairy
during Flush period June to calls for expansion.
August. During this period the
22
Palakkad District
Fig2.3 Month wise Mlk Procured

Palakkad Dairy 2013-14 (Source MRCMPU)
250000
200000
150000
Milk LPD
100000
50000
0
e c be r
ry
y
r
ne
ch
Au y
il
o v er
t
ay
be
be
Se gus
ar
pr
l
Ju
ua
ob
Ju
ar
M
em
A
nu
em
em
br
M
ct
Ja
Fe
O
pt
2.5.3 Milk Processing Infra- been enhanced from 9000 LPD to

structure Palakkad Dairy the current level of one LLPD. This
As mentioned above the process was made possible because of the
capacity of Palakkad Dairy has financial support from GOI under
ProcesshallPalakkadDairy
23
Palakkad District
Table 2.2 Amount Spent and Infrastructure Created under CSS in

Palakkad Dairy
Financial
(Rs in Lakh)
Sl.
Description IDDP CMP Physical Facility
No.
Phase Phase
I & II I & II
1 Civil structure 40.8 Nil Production block, general go-
(RMRD, production down
block, cold store, etc.)
2 Processing 82.88 Nil Pasteurizer, Milk silos,
equipments & boiler, refrigeration
machineries added equipments, Homogeniser
ETP, etc.
Total 123.68
the IDDP and SIQCMP schemes as Palakkad Dairy are shown in table
well as the investment made by 2.2.
the MRCMPU from own resources.
The important equipments and
The amount spent under the CSS
machineries available in Palakkad
and the major infrastructure
Dairy are listed in table 2.3.
created for Milk Processing in
Table 2.3 Processing Equipments and Machineries in Palakkad Dairy

Sl.
Name Specification Units
No.
1 Milk Reception
1.1 Can roller conveyor 600 cans/hr 1
1.2 Can washer 600 cans/hr 0
1.3 Dump tank 2 Kl 1
1.4 Can scrubber (SS 304) 500 L 2
1.5 Can steaming block Single can 1
2 Processing/Storage Equipment
2.1 Milk chillers 20 KLPH 1
2.2 Separator 10 KLPH 0
2.3 Tri-purpose centrifuge 10 KLPH 2
2.4 Milk pump 10 KLPH 4
2.5 Un-insulated milk tank 5 KLPH 1
2.6 Horizontal milk storage tank 15 KLPH 3
2.7 Vertical milk storage tank 10 KLPH 1
2.8 Vertical milk storage tank 15KLPH
24
Palakkad District
Sl.
Name Specification Units
No.
2.9 CIP system- Double circuit 20 KLPH 1
2.10 Pasteurizer 10 KLPH 2
2.11 Milk silo 60 KL 2
Pouch filling machine DHG
2.12
mechanical 5000 PPH 8
Pouch filling machine auto SH
2.13
mechanical 2500 PPH 1
2.14 Milk pumps 10000 LPH 4
2.15 Cold store conveyor 1200 cr/hr 1
Date coding device for pouch filling
2.16
machines 60 IMP/Mnt 10
3 Fat Handling
3.1 Sour milk separator 500 LPH 1
3.2 Cream storage tank 2000 LTS 3
3.3 Cream pump 5000 LPH 1
3.4 Ghee boiler 2000 LTS 2
3.5 Ghee settling tank 3000 LTS 3
3.6 Ghee storage tank 3000 LTS 3
3.7 Ghee pump 3000 LPH 1
3.8 Ghee clarifier 2000 LPH 1
3.9 Emulsifying tank 5000 LTS
3.10 Homogenizer 10 KLPH 1
4 Service Equipment
4.1 Refrigeration compressors 30 TR 3
4.2 Chilled water pump 90 KLPH 2
4.3 Chilled water agitator 5 HP 3
4.4 Air handling unit for cold storage/
deep freezer (make/model/cap) 3 TR 4
5 Steam Raising Plant
5.1 Boiler (oil/coal) 1 MT 1
5.2 Water softening plant 2 KLPH 1
6 Compressed Air System
6.1 Air compressors 50 CFM 2
7 Industrial Electrical
7.1 DG set 250 KVA 1
7.2 Transformer 315 KVA 1
8 Water Supply System
8.1 Water storage tank 50 KL 1
25
Palakkad District
The equipments and accessories in conventional/standard procedure

Palakkad are inadequate to carry for curd production. The
on the present level of operations. infrastructure available are Curd
Some of them are also due for Pasteurizer, Fill pack machine and
replacement owing to the usual incubation facility. The Milk Union
wear and tear while some others is planning only a nominal
are to be scaled up considering the expansion in the next three years
rising procurement and market and hence minimum additional
demand. facilities are requested.
b. Ghee Production
2.5.4 Product Manufacturing
Palakkad has immense potential to
Palakkad Dairy manufactures
produce and market ghee. Ghee
three products namely Curd, Ghee
market, however, in this part of
and Sambharam (Butter Milk).
the state is fiercely competitive due
a. Curd Production to its proximity to the state of
During the year 2013-14 Palakkad Tamil Nadu. Nevertheless,
dairy produced and marketed on Palakkad dairy produced 45,659
an average 7056 Kg of Curd. The Kg of ghee per month during 2013-
Palakkad Dairy follows the 14. The infrastructure available is
26
Palakkad District
shown in table 2.4. The facility for production facilities (Table 2.5) be
ghee production is scale strengthened/added on priority.
inadequate to meet the current
a. Additional Processing
and future level of production
Capacity for Palakkad Dairy
which needs to be scaled up in the
The additional processing capacity
immediate future.
for Palakkad Dairy is examined on
Table 2.4 Infrastructure for Ghee the basis of:
Production Palakkad Dairy growth in milk procurement
Name Specification Units peak period procurement
Cream pump 5000 LPH 1 demand supply gap in the
Ghee boiler 2000 LTR 2 market
Ghee settling
tank 3000 LTR 3 potential for market
Ghee storage expansion
tank 3000 LTR 3
available infrastructure for
Ghee pump 3000 LPH 1
Ghee clarifier 2000 LPH 1 processing
The past experience suggests that
2.5.5 Key Issues and the milk procurement in Palakkad
Recommendations will grow at the rate of 8 per cent
The installed capacity of the dairy per annum and peaking three to
is scale inadequate for the current four months at the rate of 11 per
scale of operation. It is not cent. Hence, the current
difficult to foresee that the demand procurement, 1.79 LLPD, is
for milk, curd, ghee and expected to reach 2.25 lakh in the
Sambharam will increase in the next three years. And there is little
near future and the Union needs scope to divert the milk until the
to strengthen the curd and ghee newly planned Malappuram dairy
production apart from the facilities is commissioned. Moreover, the
for milk processing to enable the supply demand position in
dairy to generate extra income on Palakkad district is in favour of
minimal investment. Therefore, it market expansion and heightened
is recommended that the following
27
Palakkad District
Table 2.5 Additional Facilities Suggested for Palakkad Dairy under NPDD
No. Total
Sl. Unit
Equipment & Machineries Specification of Cost (Rs
No. Cost (Rs)
Units in Lakh)
1 Milk pump 10 KLPH 4 50000 2.00
2 SS pipes and fittings Lot 1 500000 5.00
3 Milk silo 60 KL 1 2500000 25.00
4 Cream storage tanks 3 KL 1 800000 8.00
5 Cream pumps 5 KL 1 300000 3.00
6 Ghee boiler 2 KL 1 500000 5.00
7 Ghee storage tank 3 KL 1 700000 7.00
8 Ghee clarifier 2 KLPH 1 1500000 15.00
9 Pouch filling machines 5000 PPH 1 1000000 10.00
10 Date coding devices for pouch 60 imp/mnt 4 150000 6.00
filling machines
11 PHE condenser and cooling tower 120 TR 1 4000000 40.00
Total 126.00
coverage. Considering the above production from Palakkad from

requirement, it is suggested to 2014-15 onwards.
enhance the processing capacity to
c. Milk Silo
two LLPD in a phased manner.
The milk procurement in Palakkad
b. Strengthening Ghee is showing an increasing trend and
Production has crossed 2 lakh LPD. The sale
The Palakkad dairy will have has also crossed 1 lakh LPD. To
surplus fat and the best choice is handle the increasing volume of
to convert the surplus fat into milk one more silo is to be
ghee. The ghee market is gradually purchased.
but steadily increasing and the
d. Cream Storage Tank, Cream
Milk Union plans to export more
Pump, Ghee Boiler, Ghee
ghee to the neighbouring
Storage Tank, Ghee Clarifier
countries. The Following
Most of the surplus milk in the
equipments (Table 2.5) are
Union is diverted from Palakkad
suggested to be inducted to the
Dairy to other unions/powder
production line to expand ghee
plants in the form of skim milk.
28
Palakkad District
Hence the fat handling in the dairy dairy to handle the surplus fat in a
is very high compared to other manner to facilitate the export
dairies. So, the above equipments approval separate equipment and
are to be purchased in view of the fittings as shown in table 2.5 are
increasing milk procurement in absolutely essential.
the union.
2.6 Milk Marketing
e. PHE Condenser
We have already increased the 2.6.1 Introduction
capacity of ammonia compressors Milk marketing is one of the major
in the refrigeration plant. Now the functions of MRCMPU. While
capacity of condensers is to be Palakkad has marketable surplus
increased to match with of milk, the other four districts
compressors so as to utilise the under the Union are perpetually
increased capacity for which Plate deficit in milk. The Union therefore
Heat Exchanger with cooling tower is now comfortably placed at the
is to be installed. marketing front. This chapter
provides an overview of the
Since Palakkad dairy reports
marketing organization of
having surplus milk throughout
MRCMPU in Palakkad district,
the year and especially during the
infrastructure available, sales
rainy season the Dairy sends skim
achievements of liquid milk and
milk to other unions or for
major milk products during 2013-
conversion sustaining loss. To save
14, and identifies the key issues
the situation and to generate extra
and problems and makes
profit for milk producers, the Dairy
recommendations to address
plans to export ghee made from
them.
fresh cream. Traceability from
procurement, production and
2.6.2 Organization of Marketing
despatch is a must in the case of
The marketing wing under the
export consignments. Mixing with
Palakkad Dairy organizes the
normal batches for local supply is
marketing functions. The
not allowed. Hence to equip the
marketing area of the Dairy
29
Palakkad District
includes the entire Palakkad and The milk and the milk products
part of Malappuram districts, reach the consumers from the
which is divided into two zones, processing units through the
Palakkad and Pattambi. Each zone retailers designated as dealers.
is under a Marketing Officer. Yet The liquid milk is directly supplied
another Marketing Officer looks from the Dairy to the dealers and
after the market development the products through the
function. Four field staff look after wholesalers. There were 924 retail
the field level activities. outlets and 29 wholesalers in

Palakkad at the close of March
The milk and milk products 2014. Also, a small portion of the
manufactured in Palakkad and products is directly supplied to the
Kozhikode Product Dairies are dealers on cash and carry basis. A
marketed through a well-defined well developed intending and
supply chain and clearly defined distribution system exists. The
routes for the distribution of milk liquid milk and the products are
and milk products to the sold to the dealers on advance
consumers. payment. Credit facilities are

extended to the dealers on a
2.6.3 Supply Chain limited scale. The milk and milk

products sold during 2013-14 is
The Union has more or less similar
shown in table 2.6.
supply chain in all the districts.
Table 2.6 Milk and Milk Products Sale Palakkad District

Sl. Quantity
Milk/Product
No. 2009-10* 2013-14
1 Liquid milk (LPD) 71832 90300
2 Curd (Liter/day) 6270 7056
3 Ghee (Kg/month) 27318 31725
4 Ice cream (Liter/month) 2429 9497
5 Butter milk (200 ml pkts./day) 4692 7911
6 Milk peda (Kg/month) 1505 2761
7 Sip up (Pkts./month) 60000 41450
8 Palada (Kg/month) 122 395
9 Milma plus (Bottles/month) 2613 9591
*Previous benchmark
30
Palakkad District
As is evident from table 2.6, there LLPD (Milma plus the

is substantial growth in the sale of competitors). This indeed is a very
liquid milk and milk products. But conservative figure and pertains
Palakkad is not among the mostly to the urban market. Added
strongholds of MRCMPU for selling to this is the rural consumption.
milk and milk products. It has
Yet another way of arriving at the
only the fourth position for milk
market size is by understanding
sales and sales of major products
the end user purchases as shown
like ghee and curd.
in table 2.7.
2.6.4 Market Size and Market The MRCMPU marketed milk at

Share the rate of 90,300 LPD amounting
Market size is the measurement of to just 47 per cent of the market
the total volume of a given market. size which indeed is low. Hence
Market size calculated on a support under the NPDD should
standard practice, competitive be geared up to improve the
sales approach (bottom up market coverage in Palakkad
approach), shows that the market district.
for liquid milk in 2013-14 is 1.12
Table 2.7 Market Size for Milk and Market Share in Palakkad District 2013-14
Sl.
Description Rural Urban Total
No.
1 Population (census 2011) Numbers 2133124 676810 2809934
2 Cattle holdings % (HH survey) 30
3 Potential consumers (1* 0.7 rural) 1493187 676810 2169997
4 Actual consumer % (HH survey) 50 95
5 Actual consumers (3*4/100) Numbers 746593 642970 1389563
6 Per capita cons. ml (HH survey) 56 195
7 Consumer demand LPD 41809 125379 167188
8 Inst. demand LPD 25076
9 Total demand LPD 41809 150455 192264
10 Milma supply LPD 90300
11 Market share % (total 10/9*100) 47
12 Supply demand gap LPD (Total
demand minus Milma + competitors) 80264
31
Palakkad District
2.6.5 Milk Marketing available to the marketing wing in

Infrastructure Current Palakkad district.
Status
The wide spread marketing
Table 2.8 shows the various
network created by MRCMPU is
support equipment and facilities
delivering quality service to the
Table 2.8 Marketing Facilities Available under MRCMPU in Palakkad

District March 2014
Sl.
Component Quantity
No.
1 Wholesalers for milk (No.) Nil
2 Wholesalers for product (No.) 29
3 Distributors for milk (No.) 0
4 Distributors for milk products (No.) 0
5 Retail outlets milk and products (No.) 924
6 Milk parlors (No.) 4
7 Milma shoppe (No.) 2
8 Marketing depots/Hub (Mobile cold storage) (No.) 1
9 PUF vehicle container (5 MT) (No.) 1
11 PUF vehicle container (1.5 MT) (No.) 1
12 % milk routes using PUF vehicles for milk
distribution to retail outlets 100
13 PUF box 50 Liter (No.) 299
18 Shipper box for ice-cream 27
19 200 liter freezers for dealers (No.) 80
20 200 liter freezers glass top for dealers (No.) 10
21 120 LTR freezer (No.) 40
22 500 Liter freezer for dairy (No.) 33
23 Deep freezer 320 (Liter) (No.) 54
24 Deep freezer 320 (Liter) Glass top (No.) 18
25 Visi-cooler 220 Liter (No.) 26
26 Visi-cooler 320 Liter (No.) 16
32
Palakkad District
consumers. The market survey has marginal and sub marginal

demonstrated that the market farmers in Palakkad district. The
share of MRCMPU for liquid milk MRCMPU has to tap the
is close to 50 per cent only. The unexploited market potential
demand for milk products is also particularly the ever expanding
vertically expanding. In order to semi urban and rural market.
command a higher market share Hence, MRCMPU has to tone up
and to facilitate the position of their marketing activities. The
market leader in dairy business crux of the issues is that the
the MRCMPU need to expand its marketing infrastructure in
marketing functions in Palakkad MRCMPU is inadequate to meet
district. But milk and milk the growing demand and to
product sales are fiercely counter their competitors in
competitive and to keep going Palakkad district for which few
requires aggressive marketing suggestions are placed as table
strategies, continuous upgrading 2.9.
of facilities and promotional
The list of activities and supports
activities.
are listed in table 2.9. The list is
more or less self explanatory. Few
2.6.6 Key Issues and
items deserving special mention
Recommendations
are explained below.
Palakkad district is under
perpetual threat of invasion of a. Milk Parlors
cheap milk from Tamil Nadu. The milk parlors will be positioned
Whenever the consumer price in strategic positions to attract
equilibrium changes, the inflow of more consumers to Milma
milk from Tamil Nadu increases. products. Apart from selling the
The institutional segment is largely Milma products they also act as a
within the hands of private traders media to improve the visibility of
from Tamil Nadu. At the same time milk and milk products. The
milk production is livelihood Milma products will be served in a
intensive to a vast majority of customer friendly environment.
33
Palakkad District
Table 2.9 List of Activities and Equipments Suggested for Market

Development in Palakkad District 2014-15 to 2016-17
Total
No. of Unit Cost
1 Depot/Parlor Cost (Rs
Units (Rs)
Lakh)
1.1 Milk parlor civil 9 50000 4.5
1.2 Milk parlor equipments 9 10000 0.9
1.3 Shoppe support 3 500000 15
1.4 Marketing depot/HUB 0 1200000 0
1.5 Space in super market 15 20000 3
1.6 Decorated mobile product vehicle 3 50000 1.5
2 Marketing Infrastructure for Preserving/
Maintaining Quality of Milk
2.1 PUF vehicle container (5 MT) 0 460000 0
2.2 PUF vehicle container (3 MT) 9 250000 22.5
2.3 PUF box 50 ltr. 60 2000 14
2.4 Shipper box for ice cream 90 6000 5.4
2.5 200 liter freezers for dealers 90 13000 11.7
2.6 200 liter freezers glass top for dealers 60 17000 10.2
2.7 120 LTR freezer 90 11000 9.9
2.8 500 ltr. freezer for dairy 10 23000 2.3
2.9 Deep freezer 320 ltr. 90 17000 15.3
2.10 Deep freezer 320 ltr. (Glass top) 90 20000 18
2.11 Visi-cooler 220 ltr. 120 20000 24
2.12 Visi-cooler 320 ltr. 90 30000 27.00
3 Awareness Programme for Consumers
3.1 Consumer awareness programme LS 134.00
3.2 Canopy with eutectic freezer subsidy 17 100000 17
3.3 Hoarding/traffic circle/wall painting 18 100000 18
3.4 Support to milk stockists (RD) 14 200000 28
Total 382.2
All the parlors started during parlors are suggested in new areas
Phase I, are functioning well and to attract more consumers.
they provide the necessary Therefore nine more parlors are
impetus for higher sales of Milma recommended in the district.
milk and milk products. Additional
34
Palakkad District
b. Milma Shoppe be started in three more towns

Improving the visibility of Milma is during the project period.
important for its business and
c. PUF Bodies
more importantly crucial to
Among the various marketing
sustain milk production and
infrastructure provided,
livelihood support to the resource
introduction of PUF insulated
poor milk producers operating
vehicles for milk distribution and
under hard conditions. Keeping
PUF boxes in the retail outlets are
this in mind MRCMPU started
worth mentioning. With the
Milma Shoppe in Palakkad
addition of the two PUF containers
district. Shoppes are brand shops
under the IDDP scheme during
of Milma with all Milma products
last year, the entire milk transport
available at the outlet and it works
from Palakkad dairy has been
round the clock. It has won the
switched over to PUF insulated
appreciation of one and all and is
vehicles. However, additional
found to be an effective tool to
supply routes are to be operated in
publicize its products. It is
the coming years and more PUF
suggested that similar shops shall
35
Palakkad District
bodies are required. Also, few of Visi-coolers are excellent

the PUF bodies in use are to be equipment to keep products like
replaced. Hence, nine more PUF flavored milk in cool environment.
bodies shall be added, it is Hence, few of them are suggested
suggested. as part of market promotion.
d. PUF Boxes/Visi-Coolers e. Ice Cream Promotion

The freezers are uneconomical for MRCMPU is selling products like
small volume milk storage. The ghee, curd, butter milk, Milk Peda,
PUF boxes of varying sizes, 50-150 Palada Mix, Flavored milk and ice
liter provided at 50 per cent cream. The share of milk products
subsidy in the retail outlets in the total turnover of the Union
coupled with the PUF bodies is around 24 per cent and is
ensure perfect end-to-end cold crucial in its financial security and
chain, namely from the dairy to liquidity. Among all the products,
the consumer. Our field exposure ice cream is the most promising
visits revealed that the retailers one. Unfortunately, Milma now
wholeheartedly welcome the PUF has only less than 5 per cent
boxes because they were accepted market share in the ice cream
as viable alternatives for the segment. The major hurdle
energy consuming freezers. They identified against the market
occupy less space, are easily expansion is the absence of user
movable and easy to clean. The friendly and energy saving freezers
boxes retain low temperatures for at retail points. During IDDP
about 3-4 hours during which the Phase I, SIQCMP the Milk Union
entire milk generally get sold out. invested in freezers at the level of
It is proposed that all retailers retailers and as a result the sales
shall be provided with new or of ice cream have increased from
additional PUF boxes to achieve 2400 Liters per month during
100 per cent cold chain 2010-11 to 9500 liter per month
maintenance. The estimated cost during 2013-14. A three pronged
comes to Rs 15.0 lakh. market intervention appoint
more whole sale dealers, equip all
36
Palakkad District
retail points with suitable size distribution from 14 points for the
freezers and wide publicity next three years will be Rs 28.0
through TV channels is suggested. lakh.
In addition, 17 canopy fitted
g. Consumer Awareness
vehicles are recommended for
Programs
special sales in tourist spots and
Consumer awareness camps are
prominent on road places.
being held and dairy visits
f. Redistribution of Milk organized to explain the chain of
As pointed out in the forgoing activities taken up by the Dairy,
sections the milk distribution in starting from milk reception to
rural and interiors of urban and sales through the retail outlets.
semi urban areas requires to be The consumers also get an
increased. Proper and timely reach opportunity to gather firsthand
is the issue. Because of narrow information on quality assurance
roads the 3 MT vehicles often
followed at various stages of milk
cannot reach the sale points. In
reception, processing and
such situations the milk is
marketing. Advertisement boards
transported in large truck and
and banners are exhibited in busy
stored with a milk dealer (retail
places for publicity on the milk
outlet). The milk from the dealer is
and milk products. The awareness
transported to interior and difficult
activities are scale inadequate and
to reach places using smaller
are not reaching a large segment of
vehicles (Ape type) thereby
general public particularly the
ensuring higher penetration and
rural segment. Considering the
wider reach for the milk. The other
ever expanding rural segment a
advantages include timely supply
better focused and well directed
to the retail outlets and
publicity and awareness campaign
elimination of milk outs during
early mornings and late evenings. is to be launched. Apart from the
The dealer is compensated for the food security and nutritional
extra effort and expense. The importance of milk production and
estimated cost for the re- consumption the importance of
37
Palakkad District
milk as an instrument of livelihood 2.7 Milk Procurement

support for thousands of poor milk
2.7.1 Organization of Milk
producers and as a safe food for
Procurement Palakkad
millions of consumers needs to be
District
highlighted to attract more
Milk procurement is one of the key
consumes in to the Milma fold.
functions of MRCMPU. MRCMPU
Hence, it is suggested that
has established a network of village
consumer awareness programs
level DCSs to procure milk from
should cross the usual styles and
dairy farmers in Palakkad district.
enter into newer frontiers. The
Milk procurement activities in
estimated cost for awareness Palakkad are coordinated from two
camps and publicity during the places, the P&I Unit in Palakkad
next three years will be Rs 134.0 dairy and Pattambi. The
lakh. organization of milk procurement is
illustrated in fig. 2.4.
Fig. 2.4 Organization of Milk Procurement, Palakkad District
Milk
Producers
Cluster Direct
Milk Chilling
BMC DCS DCS
Non BMC DCS DCS Plants (2)
PGT DAIRY
Key words: BMC DCS Dairy Cooperative Society having Bulk Milk Cooler;
Cluster DCS: DCS attached to BMC for milk supply; PGT: Palakkad
38
Palakkad District
The DCSs procure surplus milk among the 74,081 registered milk
from framers and deliver it to the producers in the district on
Palakkad Dairy or to either of the average 24,501 poured milk in the
two Milk Chilling Plants. Milk DCS. The proportion pouring milk
from BMC DCSs/MCPs is chilled is low because the non-producers
(4 0C) and delivered while the milk are not removed from the DCS roll
from other DCS (Direct DCS) is due to the cumbersome mandatory
supplied at room temperature. The procedures. The average
Dairy in turn processes and procurement per DCS was 626
markets the milk in towns and LPD and per supplier 7.94 LPD
other urban agglomerations within during 2013-14. The local sale,
and outside the District. The whole 27,541 LPD, accounts for 14 per
chain of activities - procurement, cent of the daily procurement
processing and marketing - is well indicating healthy production
orchestrated and well executed. trend in the rural areas. The rate
of procurement is appreciable in
2.7.2 Profile of DCS in Palakkad comparison with the Kerala
District standards. However, the DCS
A majority of the DCSs in classified according to the daily
Palakkad district are Anand procurement shows that 19 DCS
Pattern Cooperative Societies were collecting less than 100 LPD
(APCOS). They are producer and yet another 42 DCS daily
cooperatives managed by collected between 100 and 200
democratically elected Board of LPD. The study shows that those
Directors. At the close of March DCS are not economically viable.
2014 Palakkad district had 305 The reasons for poor procurement
functional APCOS. In addition rate are that they are not in ideal
there were 18 non-APCOS directly
locations, non-potential suppliers
under the Department of Dairy
are inducted as members and the
Development.
farmers have better option for
Table 2.10 shows the profile of the selling milk. The relocation of
DCS in Palakkad district. From those DCS needs to be considered.
39
Palakkad District
Table 2.10 Profile of DCS in Palakkad District 2013-14

Sl.
No.
1 Functional APCOS av. 2013-14 305
2 Non APCOs 18
3 No. of farmer members/DCS (243) 74081
4 Av. number of suppliers/DCS (79) 24051
5 Milk farmer procured (LPD) 190964
6 Local sales (LPD) 27541
7 Milk supplied to milk union (LPD) 163423*
8 Av. farmer procurement of milk/DCS (LPD) 626
9 Av. farmer procurement/supplier (LPD) 7.94
10 Av. procurement price paid to DCS (Rs/Kg) 29.38
11 Av. price - Local sales (Rs/liter)
12 No. of DCS collected <100 LPD 19
13 No. of DCS collected 101 - 200 LPD 42
16 No. of DCS collected >500 LPD 18
17 No. of DCS making one time milk collection from farmers
18 Av. fat% 4.23
19 Av. SNF% 8.4
20 No. of BMC DCS 33
21 No. of BMCs 36
22 Installed capacity 145000
23 Av. collection through BMC (LPD) 90800
24 No. of DCS making supply at dairy dock 111
25 No. of DCS provided AMCU (including DDD) 136
26 No. of DCS provided analyzer only (including DDD) 12
27 No. of DCS provided EMT 12
28 No. of DCS provided EMT only (no analyzer) 12
29 No. of DCS provided Gerbers test equipment only 5
30 No. of Panchayat wards in the district
31 % coverage under milk procurement
32 % wards having potential for milk collection
33 No. of DCS in own building 186
34 No. of DCS having adequate water supply arrangements 52
35 No. of DCS having standby generators 2
36 No. of DCS having Electricity 186
37 No. of Milk cans supplied during last five years 2409
38 Milk spoiled (LPD) 39
39 Av. MBRT - milk supplied through BMC 158
40 Av. MBRT - milk supplied at dairy dock 62
* In addition, the traditional DCS in Palakkad district supplied on an average
15617 LPD to the milk Union adding up the total procurement in dairy to
179040
40
Palakkad District
Out of the 305 DCS, 111 DCS was improve the dairy development in
supplying milk direct to the Dairy the area, needs to be examined
during 2013-14. All others supplied under the next phase of IDDP.
milk either to the village BMCs or
to those DCS supplying to MCP. 2.7.4 Milk Quality and Quality
The number of DCS functioning in Administration
own buildings was 166 (61 per cent The MRCMPU follows two axis
of the total) with the rest located in pricing ie, farmers are paid on the
rented buildings. Almost all of them basis of milk fat and SNF content.
have electricity. But only 52 DCS The village cooperatives are
have adequate and proper water equipped to determine the fat and
supply arrangement which is a SNF. Few DCS are also equipped
major hurdle in maintaining good to detect added preservatives,
hygiene standards. In 136 out of adulterants and neutralizers apart
305 (45 per cent) AMCU are used from MBRT estimations.
for milk collection and quality
Because of the quality based
determination.
pricing system, the quality
assessment in DCS is crucial in
2.7.3 Coverage
determining the price to be paid to
The District has 90 Grama
the farmer and winning their
Panchayats with 1451 wards,
confidence. The cooperatives in
apart from 139 Municipal wards.
Palakkad follow any of the three
The data available with the Union
known procedures for quality
shows that 873 wards are covered
assessment - conventional milk
under DCS which works out to
testing (Gerbers test for fat and LR
almost 60 per cent of the total
for SNF determination), Milk O
wards, still leaving out a
Tester for fat and LR for SNF and
significant proportion of them to
Automatic Milk Collection Units
be brought under the procurement
(AMCU) for quality and price
network. Opening new DCS as an
determination. The AMCU would
effort to improve the procurement
be the most desirable because it is
volume, which indirectly would
convenient, error proof, quick and
41
Palakkad District
transparent. Table 2.10 shows that better attention for improving the
62 out of the 264 APCOS (23 per bacterial quality.
cent) in Palakkad use AMCU.
On the quality front, the procured Suggestions
milk has 4.23 per cent fat, and Milk procurement in Palakkad
8.40 per cent SNF which is district is well organized. Under
acceptable for all practical reasons IDDP and SMP Rs 537.54 lakh has
(Table 2.11). Farmer education been invested for a number of
and introduction of AMCU can components ranging from BMC to
further improve the quality. The milking vessels and capacity
average MBRT of milk supplied building of farmers, DCS employees
through BMC DCS is good while and elected members. The IDDP
that of non BMC DCS, 62 minutes, support is currently available
indicates poor bacterial quality (2014-15) and will continue for one
(Table 2.11). In the years to come more year (2015-16). Therefore, the
both compositional and bacterial support suggested here (Table 2.12)
quality will have a telling influence are intended to stabilize and carry
on the marketability of milk and forward the achievements already
therefore the Union needs to pay made.
Table 2.11 Palakkad District Av. Milk Quality 2013-14
Parameter 2009-10
Fat % APCOS 4.23
Fat % non APCOS NA
SNF % APCOS 8.40
SNF % non APCOS NA
Av. MBR time BMC DCS (Mts) 158
Av. MBR time direct DCS (Mts) 62
No. of APCOS using/supplied AMCU 136
No. of APCOS using/supplied Milk O
244
tester & LR
No. of APCOS using/supplied
5
Gerbers test & LR
42
Palakkad District
Table 2.12 Components Suggested under NPDD for Strengthening the Milk
Procurement in Palakkad District 2014-15 to 2016-17
Total Cost
Sl. No. of Unit
Component (Rs in
No. Units Cost (Rs)
Lakh)
1 Buildings for DCS 18 100000 18.00
2 Water supply system 9 60000 5.40
3 Bore well 9 25000 2.25
4 Open well 15 10000 1.50
5 Working capital assistance 3 30000 0.90
6 Aluminium cans 300 2500 7.50
Automatic milk collection
7 units 3 125000 3.75
8 Electronic milk tester 4 15000 0.60
9 Electric centrifuge 8 2500 0.20
10 Weighing scale 3 15000 0.45
11 Hand held billing device 8 10000 0.80
12 Management grant to DCS 8 30000 2.40
13 Subsidy to milk transport 370000 0.5 1.85
Subsidy to cattle feed 100000
14 transport MT 400/MT 400.00
Incentive to better quality 10000
15 milk LPD 0.5 54.75
Total (3.0.0) 500.35
a. Buildings are identified to have the land and

As pointed out in the forgoing financial capacity to do this during
sections, a sizeable number of the project period.
DCS function in rented buildings.
b. Water Supply System
Most of them do not have the
Developing water source and water
minimum facilities for hassle free
supply is becoming increasingly
milk collection and dispatch. BMC
important for the DCS. Water
installation is virtually impossible
harvesting, installing water tanks
and effluent treatment is a serious
and pumping facilities are the keys
issue. Therefore it is suggested to
to a well-established water supply
include provision for subsidizing
system. Most of the DCS find it
new DCS building at the rate of Rs
difficult to mobilize adequate
one lakh per DCS. The buildings
capital for investment. Hence, a
will cost almost four times the
subsidy of Rs 60,000 per unit is
suggested amount. Eighteen DCS
43
Palakkad District
suggested for an estimated nine of the district entails a cost. It is

numbers at a total cost of 5.4 suggested to support and
lakh. Also digging nine bore wells subsidize the cattle feed transport.
at the rate of Rs 25,000 per unit The estimated quantity sold in
and open well at the rate of Rs Palakkad district comes to one
10,000 per unit for fifteen lakh MT in three years. An amount
numbers are suggested for of Rs 400 lakh at the rate of Rs
Palakkad district. 0.4/kg is the average transport
cost. This may be provided as a
c. Automatic Milk Collection
subsidy to the KCMMF so that the
Units
price of cattle feed is kept low.
About 136 DCS use AMCU for milk
collection and quality checking. e. Incentives for Good Quality
Those Units can develop problems. Milk
It is important to have spare units The SIQCMP has instilled
for replacement. It is suggested to considerable enthusiasm among
add three units for replacing the the dairy farmers to produce good
defective ones. They can also be quality milk. The bacterial load of
used as service units to provide raw milk has been reduced
temporary service in case of significantly improving the quality,
breakdown. The estimated cost is especially the organoleptic
Rs 3.75 lakh. properties (taste and flavor) of the
milk, apart from high heat stability
d. Subsidy for Cattle Feed
and longer shelf life. The farmers
Transport
are not compensated for their
Cattle feed is being sold through
extra effort in producing good
the DCS. The farmers
quality milk. As a beginning it is
wholeheartedly welcome the sale of
proposed that the top 5 per cent of
cattle feed through the DCS
the milk may be paid an incentive
because of the convenience, easy
of 50 ps. per liter of milk. The daily
access and credit facility.
procurement is close to 2 LLPD
Transport of cattle feed from feed
and the incentives at the
plant to the DCS in various parts
suggested rate works out to Rs
44
Palakkad District
5000 per day and Rs 18.25 lakh arrangements. The cows remain in
per year (Total Rs 54.75). this shelter most of the time (no
grazing). The hind quarters and
2.8 Cattle Shed and Farm the udder often remain soiled by
Machineries dung and mud. Udder and teat

injury is common. Feeding of water
Clean and hygienic cattle sheds
is only occasional. Therefore, any
are a precondition for clean milk
support for good cattle shed is the
production. A dirty cattle shed
most welcome support for the
contributes substantially towards
dairy farmers in Palakkad district
external contamination of milk and
who belong to the poorest of the
entry of microbes into the udder
poor in the community.
causing sub-clinical or clinical
Considering those aspects the Milk
mastitis. A well-made cattle shed
Union funded cattle shed
should also provide ease of
modifications and building new
operation and animal comfort. The
cattle sheds under the IDDP and
shed should have adequate space
SIQCMP schemes. During the
for the animal, manger, feeding
course of the field work we found
alley, urine and dung channel. The
that the floor of cattle shed are
shed must be well ventilated, easy
well made using the fund allotted.
to clean and should have
However, construction of new
transparent roofing sheets
cattle sheds is very expensive in
interspersed with opaque ones to
Kerala due to the high labor cost
permit sunlight, and facility for
and the cost of materials. The
continuous water Sheds of those
budget provision of Rs 10,000 is
standards are not existing
thoroughly inadequate and will not
Palakkad district. Most of the
meet even 10 per cent of the
sheds are a mere make shift
overall cost. Therefore, it would be
shelter with mud/wood floor,
more sensible if the support could
tile/asbestos/PVC/Silpaulin roof,
be extended for renovation and
dark and musky, all in one floor
modification of the sheds with
(no urine or dung channel)
and without any watering
45
Palakkad District
watering facility rather than channeling support since few years.

insisting on a new cattle shed. Table 2.13 shows the physical
attainments in the immediate past.
On the face of shrinking family size,
changing status of women in the Table 2.13 Farm Equipments
society, and increasing Supplied to Farmers in Palakkad
opportunities for employment in District
other sectors of the economy, the Sl.
Item Quantity
No.
availability of labor for dairy
1 Cattle sheds modified 262
farming is fast declining. Hired 2 Milking machines 62
labor for dairy farm activity except 3 Rubber mats 1160
for milking is uncommon in 4 Pressure washers 84
5 Gen sets 4
Palakkad district. Hence reducing
6 Cow drinker 40
the labor input and making the 7 Chaff cutter- Motorized 20
daily chores as pleasant as possible
is crucial for the very sustenance of It is suggested that the
dairy farming. Considering the assistance may be continued and
economic and social significance of funded under NPBBDD. The
dairying, the MRCMPU has components suggested, quantity
initiated providing financial and the estimated cost can be
support for farm mechanization. found table 2.14.
The Union has been providing and
Table 2.14 Cattle Sheds and Farm Machineries Suggested under NPDD
Palakkad District
Total Cost
No. of Unit Cost
A Cattle Shed (Rs in
Units (Rs)
Lakh)
1 Strengthening of old sheds/
150 15000 22.5
constructing new sheds
2 Auto watering system 150 5000 7.50
Cattle Farm
B
Mechanization
3 Gen set 30 75000 22.50
4 Pressure washers 150 7500 11.25
5 Rubber mats 750 2500 18.75
Total (4.0) 82.5
46
Palakkad District
2.9 Cattle Induction Only the BPL families will be
Cattle induction is an effective way included for cattle induction

activity.
of asset re-distribution. The
50 per cent of cows and
absence of easily accessible loan at
heifers will be reserved for
reasonable interest rate is a major
women.
hurdle. Therefore cattle induction
Women members will be
has been resorted by several
allowed 75 per cent of price
development agencies in the state.
subsidy and others 50 per
The MRCMPU too distributed
cent of purchase price.
heifers to Women farmers to
Transportation cost shall be
promote cattle rearing in the
met in full under the scheme.
District.
75 per cent of insurance
amount shall be included
Cattle keeping in the district are
under the scheme and the
largely in the hands of
balance as beneficiary
economically poor people (BPL
contribution.
families). It continues to be a
major source of their livelihood,
2.10 Establishment of
especially women. Therefore the
following number of cattle (Table
Laboratories
2.15) is recommended to be An amount of Rs 38.59 lakh had

supported under NPDD with the been invested under phase I & II
following conditions: IDDP and SIQCMP and Rs 16.5
Table 2.15 Cattle Induction Program Proposed for Palakkad District
Total Cost
Sl. No. of Unit Cost
Cattle Induction (Rs in
No. Units (Rs)
Lakh)
Capital expenditure
1 Purchase of animals 120 40000 48.00
2 Purchase of heifers 120 30000 36.00
3 Transportation cost of
animals 240 2000 4.80
4 Cattle/Heifer insurance 150 2500 3.75
Total 92.55
47
Palakkad District
lakh by Milk Union in upgrading Although the DCS labs are

the lab. Palakkad Dairy has a equipped to carry out the MBRT a
reasonably well equipped lab. It system to carry out the test by the
should aspire to add more modern DCS staff and to on line link with
gadgets after standardizing the the central lab is yet to be
recently procured equipments and
developed and implemented.
laying out the ground level
testing on a routine. However the
2.11 Clean Milk Production
lab has to go a long way in
equipping and testing procedures Under the CMP scheme the
to meet the FSSA/ISO: 22000- MRCMPU supplied the following

2005 requirements. The following articles to the farmers in Palakkad
suggestions (Table 2.16) are meant (Table 2.17).
as a first step towards this.
Table 2.16 Equipments and Facilities Suggested for Quality Control Lab
Palakkad Dairy under NPDD (2014-17)
Total
Sl. No. of Unit
Component Cost (Rs
No. Units Cost (Rs)
in Lakh)
1 Central milk testing lab 1 0 20.00
2 Purchase of laboratory furniture 1 500000 5.00
3 High capacity pressure jet 1 100000 1.00
4 FSMS monitoring software 1 100000 1.00
5 Accreditation and certification of
dairy establishments under
HACCP/ISO 1 500000 5.00
Total 32.00
Table 2.17 Assistance under SIQCMP in Palakkad District
Sl. Financial
CMP Kits to Farmers Physical
No. (Rs in Lakh)
1 Detergents & chemicals to DCS Lot 15.35
2 Stainless steel utensils to beneficiaries 874 23.04
3 Milking machines 50 25.00
48
Palakkad District
Distribution of CMP kits to farmers all farmers who have acquired

had the least impact on milk quality machines use them. The service
because the farmers discontinued back up and knowledge sharing
the use of chemicals and detergents remain to be improved. It is also
once the free supply is stopped. understood from the field study
Hence, this component may be that many farmers opt out of
dropped from NPDD. The stainless dairying because of the difficulties
steel utensils (the milking vessels in milking cows. Hence, it is
and carrying utensils) on the other suggested that 15 numbers of
hand are being used by the farmers milking machines may be supplied
and they wholeheartedly welcome to the farmers at subsidized (75%)
the component. It is suggested that rate under NPDD. It is also
those equipment may be supplied to suggested that few hand operated
the farmers under the NPDD machines shall be supplied to the
through the DCS. The numbers needy farmers after making a
suggested and the financial scientific and methodical field trial
requirements are given as table in association with KVASU.
2.18.
2.12 Technical Input Services
On the face of the shrinking family
(TIS)
labor and exorbitant wages for
unskilled labor in Kerala, milking Technical input services are meant
machines are extremely beneficial for the participating farmer

members. The component
to the dairy farmers. Our field
exposure visits shows that almost encompasses a variety of farm
Table 2.18 CMP Kits Suggested under NPDD in Palakkad District (2014-17)
Total Cost
Sl. No. of Unit
Components (Rs in
No. Units Cost (Rs)
Lakh)
1 Stainless steel utensil kit/ 1560 400 6.24
accessories
2 Electricity operated milking
15 55000 8.25
machine
Total 1575 14.49
49
Palakkad District
level activities and assistance. TIS This is covered under the NPBB
was a major component of the and hence not recommended. The
IDDP and SIQCMP implemented in animal health and breeding input
the district. The major camps include a pilot program for
components, financial and fertility management of dairy cows
physical attainments in Palakkad among farmers. The program
can be found from table 2.19. envisages identification of infertile
cows, providing management and
The Technical input services are
veterinary support to correct
production incentives to farmers
reproductive disorders if any,
and aids for cost reduction.
standardization and documentation
Therefore they are suggested to be
of the procedures for adoption
included under NPDD as a priority
elsewhere in the State. It is a DCS
component. The most essential
based program centrally controlled
components are listed in table 2.20.
and monitored from HO of
The LN containers are for the MRCMPU.
replacement of the ones in use.
Table 2.19 Technical Input Services Components and Achievements

Palakkad District
Financial Union/ Total
Physical
Component IDDP/ Beneficiary (Rs in
Achievement
SIQCMP (Rs in Lakh) Lakh)
Technical
297 42.3 18.12 60.42
input services
Table 2.20 Technical Input Services for Palakkad District

Total Cost
Sl. No. of Unit
Components (Rs in
No. Units Cost (Rs)
Lakh)
1 Liquid nitrogen plant & containers 6 30000 0
2 Audio visual kits etc. 1 200000 2.00
3 Animal health & breeding input 180 5000 9.00
camps
4 Chaff cutter 36 20000 7.20
5 30 100000 30.00
Commercial fodder production
Total 48.20
50
Palakkad District
Fodder is getting scarcer than 2.13 Information and

before in Palakkad with the decline Communication
in paddy production. Fodder Technology Networking
continues to be one of the major
MRCMPU apart from being a
contributors to the extremely high
farmers organization is a multi-
cost of production of milk in
crore business concern. Its
Kerala. Several isolated fodder
business units are far flung and
promotion activities were
widely distributed. To keep abreast
implemented in the district. But
of the speed and perfection of
none of them could influence the
modern business full utilization of
scale of fodder scarcity. One of
information and communication
them, the conventional homestead
technology is essential. It is also
fodder production, is a tried and
essential that the whole business
failed attempt in Kerala. The
is transparent to its stakeholders,
reasons are many, the most
the farmers. Unfortunately the
important being the land
Milk Union is only in the nursery
fragmentation and the declining
stage of IC technology mainly due
farming activities. On the other
to the lack of adequate funds. At
hand, large land holdings and
present the dairy business is
fallow land are potential source for
partially computerized and
fodder production fodder as a
networked (intranet). The milk
value added crop in irrigated land.
Union proposes to expand the IC
The fodder so produced shall be
network so that the system will
marketed among the DCS
function as a client server
members at cost price. Therefore
architecture network with one
this component is suggested as a
center at each district (Palakkad,
flagship program of NPDD with 30
Malappuram, Kozhikode, Wayanad,
farmers supported at an estimated
Kannur, Kasaragod) and a central
cost of Rs 30 lakh. The amount is
server system linking all these six
meant for land preparation,
centers. Data and information will
planting and developing irrigation
be made available to all the
source.
districts and DCS. The details of
51
Palakkad District
the proposed system are giving as reduction, energy conservation,

annex-1. The expenditure is to be product improvement and so on.
shared between the district Apart from Union employees, the
projects. The part required to be staff and elected members of DCS
completed in Palakkad is shown in and Board are also trained on
table 2.21. appropriate subjects.
2.14 Manpower Development MRCMU has designed several
Training and development training programs as a part of
program of MRCMPU were used as Manpower Development. Table
the main instrument for 2.22 shows the numbers trained
organizational development and to in various categories. The DCS
make strides in productivity staff have been trained at the HRD
standards including cost centre, Kozhikode under MRCMPU
Table 2.21 Information and Communication Technology Networking-

Palakkad District
Total Cost
Component (Rs in
No. Units (Rs)
Lakh)
1 A4 size network laser printer 2 20000 0.40
2 A4 size flat bed scanner 4 5000 0.20
3 Data server 4 900000 36.00
4 Server storage device 2 800000 16.00
5 Server UPS backup 2 700000 14.00
6 42 U server rack 1 100000 1.00
7 Foldable TFT console 1 45000 0.45
8 8 port KVM switch 1 30000 0.30
9 Layer 3 switch 24 port 1 250000 2.50
10 Layer 2 switch 24 port 2 125000 2.50
11 Weblogic server and suite 2 1500000 30.00
12 Oracle application server 2 1500000 30.00
13 Antivirus software 1 100000 1.00
14 Software consultation charges 1 500000 5.00
15 Sub total (9.1.3) 6 0 66.00
16 Leased line communication
1 1000000 10.00
cost
Total 149.35
52
Palakkad District
Table 2.22 Farmers and DCS Employees Trained under IDDP/SIQCMP in

Palakkad District during the Last Five Years
Number of
Sl.
Name of Programme Persons
No.
Trained
1 C D program
a No. of programmes 11
b No. farmers trained 1543
c FIP - Local farmers attended 1135
2 Training of BMC/DCS/MCC staff 44
3 Training of DCS secretary 227
4 Training of DCS employees 178
5 Training on AI 26
6 Training of farmers on GMP/GHP 5801
7 Training of farmers on AH practices 218
8 FIP 111
10 Training on marketing 29
11 Training of management committee
83
members
on the relevant subjects. The visit to a few well run farms. The
trainers were mostly from within farmers were given opportunities
the organization and also experts to see for themselves the success
invited from other organizations. and failure stories. The training for
The duration ranged from one to MRCMPU employees is arranged
three days and the subjects by the Head Office in the
handled were those relevant to the institutions of repute in India,
concerned groups. both inside and outside the state.
An interaction with a test group
The farmers induction program is
showed that the trainings were
normally carried out in the HRD
useful for upgrading their skill and
Centre, Kozhikode. The Dairy
knowledge. An amount of Rs 54.62
Animal Management Training to
lakh had been spent on HRD IDDP
the farmers has been undertaken
and CMP Phase I and II in
in APCOS DCS. The training
Palakkad district.
included lectures by experts and
53
Palakkad District
2.14.1 Key Issues and Marketing staff should be

Suggestions exposed to higher levels of
Future training especially those for knowledge on production and
the middle level employees starting marketing management. They
from Supervisors should be hand should be provided
on training exclusively on subjects opportunity to visit centers of
and skills relevant to them. excellence outside the State.
a. Farmers training should be d. The thrust of capacity

organized in villages with the building of higher level
support of LSG and Village employees should be on
Extension Workers under modern Management Systems
MRCMPU. rather than on technical
subjects. They should be
b. All out and comprehensive
exposed to what happens in
training on Mastitis
dairy sector elsewhere in the
Eradication, Clean Milk
country (eg. Schreiber
Production for farmers,
Dynamix) to widen their
Village Extension Workers
vision and outlook.
and DCS employees should
be initiated on a project mode e. The FIP must be gradually
and results closely watched toned down and tapered out.
and monitored.
The courses suggested and the
c. The Dairy Managers, estimated costs are given in table
Production Officers and 2.23.
Table 2.23 Training Suggested under NPDD 2014-15 to 2016-17

Unit Total Cost
Sl. No. of
Name of Course Units Cost (Rs in
No. Units
(Rs) Lakh)
1 CD programme Numbers 6 80000 4.80
2 Training on mastitis Person 600 300 1.80
3 Training DCS employees &
elected members Lot Lot 20.00
4 MRCMPU employees Person 125 3000 11.00
5 Institutional skill development 20.00
Total 57.6
54
Palakkad District
2.15 Working Capital During lean season union is
Palakkad District procuring milk from other states
The MRCMPU require large for which payments are made in
amount towards Working Capital advance. SMP is also to be stored
in Palakkad district for the to take care of any possible short
payment of milk price, purchase of supply of liquid milk from outside
SMP, cattle feed, packing materials state.
and other expenses. The Dairy has

In both, flush and lean, period the
to maintain minimum quantity of
Milk Union is supplying cattle feed
finished products at all times to
and other inputs to the societies
ensure uninterrupted sales.
on credit basis. Present supply of
Minimum quantity of all raw
cattle feed to societies is more than
materials, consumables packing
600 MT per month.
materials, stores and spares etc.
are also required to maintain The milk value for 21 days comes
smooth processing/production to Rs 1085.6 at the current rate of
operation. procurement and price. This alone
is expected to grow at 8 per cent
The working Capital requirement
per annum and at the end of
of the Union is fluctuating
2016-17 will be 1261 lakh. In
throughout the year depending on
addition to this comes the
local milk procurement. The milk
aforesaid inevitable payments. The
procurement of the Union
Milk Union does not have the
fluctuates between the flush and
adequate cash reserve to meet all
lean season. During Flush
the expenses mentioned above.
(January to May) the working
The Union resorts to soft loans
capital buffer the timely payment
and over drafts to avoid disruption
of milk value to the farmers even
of milk value payments to farmers
while the money is held up in the
and to maintain supplies and
form of inventory like ghee,
services to DCS. The borrowings
skimmed milk powder,
attract interest which in turn
consumables, and cattle feed etc.
limits the farmer beneficiary
55
Palakkad District
programs and investments in

dairy. In coming years the burden
is poised for increase. Hence it is
requested that an amount of Rs.
110.0 lakh may be paid as a one-
time assistance towards working
capital assistance for Palakkad
district. The amount suggested is
far below the milk value for 21
days as shown in table 2.24.
56
Table 2.24 The Amount Required to Pay Milk Value for 21 Days in
Palakkad District
Milk Procurement (Llpd) Average
Total Milk Total Milk
Milk
2013-14 Days Value (Base Value (EOP)
2014-15 2015-16 2016-17 Price/Liter Year) (Lakh) (Lakh)
(Actual) (Rs)
1.79 1.9332 2.08786 2.25488 28.88 21 1085.6 1261.5
45
3. MALAPPURAM DISTRICT
Contents
Executive Summary ..........................................................................59

3.1 General Features .........................................................................63
3.2 Trend in Cattle Population ...........................................................65
3.3 Trend in Milk Production from Bovines ........................................66
3.4 Milk Chilling 66
3.5 Milk Processing 67
3.6 Milk Marketing 70
3.7 Milk Procurement 78
3.8 Cattle Shed and Farm Machineries 86
3.9 Cattle Induction88
3.10 Establishment of Laboratory in Malappuram/Kozhikode Dairy and MCP
Nilambur 89
3.11 Clean Milk Production 91
3.12 Technical Input Services (TIS) 92
3.13 Information and Communication Technology Networking 94
3.14 Manpower Development 965
3.15 Working Capital - Malappuram District 97
Palakkad District
Malappuram District
Malappuram
District
58
Palakkad District
Executive Summary
The Malappuram district is not Nilambur. The cost comes to Rs

among the frontline dairy districts 87.00 lakh.
of the state. The cattle farming are
The market survey shows that
at a subsistence level. The official
supply demand gap for milk in
statistics shows that the cattle
Malappuram district is 3.9 LLPD.
numbers declined by 63 per cent
from 1996 to 2012 and in milk
the liquid milk segment is just
cows by 29 per cent. The annual
under 15 per cent which is not
milk production from bovines also
impressive. In milk consumption
declined from 142.29 thousand MT
Malappuram was far behind the
(1997-98) to 98.46 (2011-12).
other districts in Malabar, several
The MRCMPU do not have a studies have shown. Malappuram
processing dairy in Malappuram had a special liking for curd and
district. The milk procured from milk powder. This trend in milk
the district is transported to powder consumption is gradually
Kozhikode dairy for processing and changing in favor of liquid milk.
the processed milk is transported The inadequate market
back to the district and marketed. infrastructure is yet another
These crisscross transports not reason for the low market share of
only attract additional cost but liquid milk in Malappuram district.
also cause quality deterioration Hence an aggressive marketing
and inconsistent supplies to the strategy supported by adequate
dealers and consumers. Therefore infrastructure and consumer
a new Dairy will soon come up in canvassing is required. New milk
Malappuram district, it is parlors and Shoppe are suggested
understood. Until then the to be opened in prominent public
present arrangement will continue. places. Wide publicity through
The investments suggested one print and visual media is also
cold store, one compressor and suggested. Periodic market survey
one DG set are for the MCP, and R&D on consumer preferences
59
Malappuram District
likes and preferences (example sheds constructing new cattle

niche products, attractive packing sheds and supplying farm
for curd, flavored milk ice cream, machineries and equipments on
Peda, etc.) are also suggested. The subsidy price are suggested at a
estimated cost on market total cost of Rs 63.0 lakh.
promotion in Malappuram district
In order to motivate and attract
works out to Rs 394.85 lakh.
cattle keeping among the below
The MRCMPU has built up an poverty line (BPL) families, women
extensive net work of DCS and and SC/ST communities a cattle
BMCs for milk procurement from induction program is suggested.
farmers. Most of the DCS have NABARD norms shall be followed
reasonably good milk testing for administering the subsidies.
facilities. All BMC DCS have The overall expenditure for 240
facility for MBRT estimation. The animals is estimated to be Rs
field level milk testing, however, 92.55 lakh.
It is suggested to establish a
major constraints identified in
central milk testing lab at
milk procurement are lack of
Kozhikode by pooling the funds
convenient buildings for DCS,
from all the districts. This will
inadequacy of good quality water,
eliminate duplication of expense in
incentives for clean milk
all other labs. Malappuram district
production and support for cattle
also can avail this facility. All this
feed transport. The suggested
and certain additional equipments
procurement activities in
and furniture required for
Malappuram district will cost Rs
Malappuram are estimated to cost
137.95 lakh.
is Rs 104.00 lakh.
The lack of good cattle sheds and The other farmer beneficiary
farm machineries are identified to programs suggested are
be a major constraint in dairy distribution of stainless steel
production in Malappuram utensils, milking machines, etc. at
district. Strengthening of old cattle a cost of Rs 17.25 lakh.
60
Malappuram District
The technical input services programs would cost Rs 107.0

include support for animal lakh.
breeding, health care and
The business plan of MRCMPU
suggests substantial increase in
milk procurement and sale in
Malappuram district. The milk
members. The activities suggested
prices are to be paid to the farmers
except those being attended by the
regularly which alone cost Rupees
line departments will cost Rs
224 lakh now and is expected to
46.00 lakh.
progress to Rupees 285 lakh at the
The Malappuram district needs to current rate of growth (8%) in
network the various units and procurement in the next three
DCS for effective information years (Table 3.21). In addition,
sharing and communication. The keeping a buffer stock of raw and
suggested system is a client server finished goods is essential to
architecture network with six safeguard against any possible
centers at each district (Palakkad, contingencies in milk business.
Malappuram, Kozhikode, Wayanad, This, as also several other
Kannur, and Kasaragod) and a requirements force the Milk Union
central server system linking all to borrow money from the open
these six centers the data and market which causes extra burden
information will be made available to the Union and the farmers.
to all the districts and DCS. The Hence it is suggested that an
estimated cost is Rs 150.60 lakh. amount of Rs 285 lakh shall be
paid to the milk Union as a
The HRD through training and
onetime assistance for Working
skill development is a routine
Capital.
activity of MRCMPU. Several
programs were running since few The suggested programs for
years. It is suggested to scale down Malappuram district and the cost
certain programs. The suggested shall be summed up as follows.
61
Malappuram District
Amount
Component
Rs in Lakh
Cattle shed and farm machineries 63.00
Constructing laboratories 104.00
CMP kits to farmers 17.25
Technical input services 46.00
Total 1485.20
62
Malappuram District
3.1 General Features Panchayats. There are 278
Malappuram District, formed in Municipal wards and 1843 Gram
1969, is surrounded by Nilgiris of Panchayat wards in Malappuram
Tamil Nadu in the east, Arabian district.
Sea in the west, Kozhikode and

The official census 2011 shows
Wayanad districts in the north and
that Malappuram district has a
Palakkad and Thrissur districts in
population of 41.10 lakh of which
the south. The district has an area
19.61 lakh are male and 21.49
of 3350 sq.km. which is 9.13 per
lakh female and a sex ratio of 1096
cent of total area of the State. Like
per 1000 males. Malappuram
most other districts of the State,
accounts for 12.31 per cent of the
Malappuram district consists of
total population of the State. The
three natural divisions low land,
decadal growth in population is
midland and high land. The
13.39 per cent in comparison to
topography of the district is highly
the State average of 4.86 per cent
undulating starting from the
and national average of 17.64 per
hilltops covered with thick forests
cent. The density of population as
on the east along the Nilgiris. It
per 2011 census is 1158/sq. km.
gradually slopes down to the
in comparison to 1021 during
valleys and the small hills, before
2001. The literacy rate in
finally ending on the sandy flat
Malappuram is 93.55 per cent
surface of luxuriant coconut
(2011 census). The 2011 Census
groves in the west.
shows that 55.81 per cent of total
Malappuram district consists of six population lives in rural areas and
Taluks (Nilambur, Ernad, 44.19 percent in urban
Tirurangadi, Tirur, Perinthalmanna agglomerations.
and Ponnani), seven Municipalities

The district has more or less the
(Malappuram, Perinthalmanna,
same climatic conditions prevalent
Manjeri, Ponnani, Tirur, Kottakkal
else-where in the state, viz., dry
and Nilambur) fifteen Block
season from December to
Panchayats and 100 Grama
February, hot season from March
63
Malappuram District
to May, and the South West in the district, has got coverage of
Monsoon from October to 26305 hectares. Another
November. The South West important cash crop is arecanut.
Monsoon is usually very heavy and Despite the support of government
nearly 75 per cent of the annual with subsidy and services, with the
rainfall is received during this exception of rubber, crop
season. The climate is generally production is declining.
hot and humid; the range of
The livelihood support of the
temperature varying between 30
0C
marginal and landless farmers
and 20 0C. The Average annual
(small income group) is livestock.
rainfall is 2900 mm (Farm Guide,
The surging household income
2012).
from foreign remittances and
Agriculture continues to be the plantation crops like rubber has
mainstay of the population, sidelined livestock production.
involving 75 per cent of the people, Less than 20 per cent of
directly or indirectly and is the households own some form of
endeavor of small holders. The livestock. Cattle are the most
vast majority of the peasants are prominent species and milk the
small land holders. 2.36 lakh major livestock output.
hectares are holdings below one
The vast network of institutions
hectare. Only 16,107 hectares of
under the state Animal Husbandry
holdings are above 2 hectares. The
Department services the livestock
main crops raised are Paddy,
farmers in the district. The
Coconut, Tapioca, Arecanut,
important institutions include one
Cashew nut, Banana, Rubber,
District Veterinary Center, ninety
Pulses, Ginger, Pepper and Betel
four Veterinary Dispensaries,
vine. Coconut tops with a total
eleven Veterinary Hospitals four
area of one lakh hectares. Paddy is
Veterinary Poly Clinics, one
cultivated in 31,098 hectares.
hundred and sixteen Artificial
Paddy has lost predominance
Insemination Units and one
among crops during the last two
district poultry farm. The
decades. Rubber, a main cash crop
64
Malappuram District
department of Dairy Development 3.2 Trend in Cattle

has a district office and fourteen Population
Dairy Extension Service Units in
The cattle population in
various parts of the district and
Malappuram declined sharply
look after the dairy extension
between 1996 and 2012 (Fig. 3.1)
services. The MRCMPU has one
both the total (63 per cent) and
chilling plant, one P&I Unit at
cows in milk (29 per cent)
Nilambur and two marketing
showed similar trends from 1996
depots at Kottakkal and Nilambur
to 2007 but animals in milk
for milk procurement and sale.
substantially increased between
One hundred and seventy nine
DCS functioning in villages collect, 2007 and 2012. The in milk
test the quality and dispatch milk buffalo had mixed fortune. The
to the processing Dairies, pay the numbers sharply declined from

price of milk at regular intervals to 9615 to 1821 between 1996 and
the dairy farmers and channel the 2007 and thereafter substantially
support and services from the line gained till 2012. Although the
departments and the milk Union. accuracy of data on cattle
Fig 3.1 Cattle population Malappuram District

(source Cattle Census AHD GOK)
250000
200000
Nu m b ers
150000
100000
50000
0
1996 2003 2007 2012
Total Cattle 229765 134703 105329 84131
Cows in milk 62206 40742 33543 57000
Buffalo in milk 9615 1857 1821 4200
65
Malappuram District
numbers is questionable, it is witnessed sharp to moderate

certain that the many dairy increase in milk production.
farmers in Malappuram district Surprisingly, in Malappuram,
opted out of dairying after 1996 animals in milk went up but milk
due to economic and other factors. production declined that is a

difficult situation to explain.
3.3 Trend in Milk Production Although the accuracy of the data

is questionable, we have to accept
from Bovines
these figures as we do not have
According to the ISS estimates
any alternate estimates.
(Fig. 3.2) the annual milk
production in Malappuram
3.4 Milk Chilling
increased from 142 thousand MT
The milk chilling capacity within
in 1997-98 to 174 thousand MT in
Malappuram during 2013-14 is
2001-02 and declined to 98.46
shown in table 3.1.
thousand MT in 2011-12. The
trend in Malappuram district is
During the year the volume of milk
contrary to that observed in other
chilled and supplied to Kozhikode
districts. In almost all other
Dairy was 23,700 liter (53 per cent
districts the last two to three years
of installed chilling capacity). The
Fig 3.2 Milk Production Malappuram district from Bovine

(source ISS AHD GOK)
200
180
160
140
Milk '000MT
120
100
80
60
40
20
0
97-98 2001-02 2004-05 2008-09 2011-12
142.29 173.59 111.43 124.73 98.46
66
Malappuram District
Table 3.1 Chilling Facility in marketable surplus of milk. The

Malappuram 2013-14 milk procured from the district is
Sl.
Source Capacity
being transported to Kozhikode
No.
1 BMC DCS (5) 14000 liter Dairy, processed and transported
2 Milk chilling plant, 30000 liter back to Malappuram and

Nilambur
marketed. Such two-way movement
Total 44000 liter
of milk incurs additional
vast majority of DCS (172 out of transportation cost with the Union
219) in Malappuram district are and the milk producers bearing it.
not linked to the BMC system of Now the Union is selling 67,825
milk procurement and instead liter of milk daily in the district. In
resort to can collection and addition to the Kozhikode Dairy,

transport to dairy dock/MCP. The where the Malappuram milk is
lack of sufficient volume of milk is processed, the Wayanad and
the reason cited for not installing Palakkad Dairies also market milk
more number of BMCs. A policy in the district from different entry
decision to start a processing dairy points. The supplies to the retail
in Malappuram district has outlets are made through direct
already been taken which will routes as well as the Marketing
change the scenario of dairy Depots (Cold Store Units) newly
production in the district. established at Kottakkal, Pattambi
Therefore, additional chilling and Nilambur. Kozhikode,
capacity is not recommended at Palakkad and Kannur Dairies, the
this stage. feeder Dairies for Malappuram
district, have limitations to take
3.5 Milk Processing additional load and for further

expansion. The long distance
Malappuram is the only district
transport causes quality issues as
under MRCMPU without a milk
well. In the wake of the recently
processing facility as the growth in
introduced Food Safety and
milk sales was not impressive and
Standards Act (FSSA), quality will
the district had very small
67
Malappuram District
be a major factor in deciding the farmers in Malappuram the

future marketability of milk. The processing facility in Kozhikode/
absence of a dairy near the Palakkad dairies are to be
market/consumption points enhanced for which the
causes hardships to the retail installation of equipments shown
outlets and customers. From the in table 3.3 are suggested. These
marketing and customer point of equipments could eventually be
view, the dairy should be as near shifted to the upcoming
to the customer as possible. The Malappuram dairy.
Dealers are not satisfied by the
a. Cold Storage/Deep Freezer
morning and evening deliveries
and Refrigeration Compressor
alone. They prefer multiple
A depot has been established in
deliveries every day. Under this
the existing Milk Chilling plant at
compelling situation, it became
Nilambur. The available cold
imperative to have the processing
storage facility is inadequate to
facility in Malappuram compelling
cater to the demand for milk and
the Milk Union and the
ice cream products distributed
Government of Kerala to take a
through the depot. Hence it is
decision.
suggested to install additional new
cold store, deep freezers and
3.5.1 Milk Chilling Plant,
refrigeration compressor.
Nilambur
Tables 3.2 and 3.3 present the b. DG Set
existing and the proposed
The existing DG set capacity will
equipment inventory at the
be in adequate after installing
Nilambur chilling plant and
the cold store, deep freezers and
Malappuram respectively. In the
refrigeration compressor. Hence,
wake of the decision to establish a
new dairy, major upgrading is not the DG set is to be replaced with
suggested. However, to ensure the a 320 kVA DG set.
continued milk procurement from
68
Malappuram District
Table 3.2 Existing Equipments in Nilambur Milk Chilling Plant
Sl. No. Equipment/Facility Capacity Quantity

1 Reception
1.2 Can tipping bar 600 cans/hr 1
1.3 Can drip saver 600 cans/hr 1
1.5 Weigh bowl (SS 304) 600 Kg 1
1.6 Scale for weigh bowl 600 kg 1
2.7 Refrigeration compressors 12 TR 2
(make/model/type/cap.)
2.8 Ice bank tank 100 KL 1
2.9 IBT coil 2000 Mtr 1
2.10 ATN condenser coil 90 Tr 1
2.11 Condenser pump 30 KLPH 3
2.14 DG set 150 KVA 1
2.16 HT protection gear 600 A 1
2.17 LT panel 415 V 1
2.18 Motor control centres 415 V 1
2.19 Push button stations 6 Buttons 1
2.21 Water pumps 20 KLPH 2
69
Malappuram District
Table 3.3 Equipments Suggested under NPDD for Milk Processing in

Malappuram District
Total
Component Specification Cost (Rs
No. Units (Rs)
in Lakh)
1 Milk pump 10 KLPH 4 50000 2.00
3 Refrigeration compressors 30 TR 1 3000000 30.00
with accessories
4 Cold store (including 5 TR 1 2500000 25.00
equipments)
5 DG set 320 KVA 1 2500000 25.00
Total 87.00
3.6 Milk Marketing Dairies (Kozhikode, Wayanad and
3.6.1 Organization of Milk Palakkad), one Product Dairy at

Kozhikode and three milk depots
Marketing
(Kottakkal, Nilambur and
The organization of milk marketing
Pattambi) together share the
activities in Malappuram is
marketing of milk and milk
illustrated as fig. 3.3 In the
products in the district.
absence of a dedicated Dairy for
Malappuram, three processing
Fig. 3.3 Organization of Milk Marketing Activities in Malappuram District
Prod. Dairy WYND Dairy PKD Dairy KKD Dairy,

Ghee, Peda, Milk, Curd, Milk, Curd, Milk, Curd
Palada, Flv Ghee, Butter Ghee, Butter Ice cream,
Milk Milk Milk Butter Milk
Kottakkal Depot Pattambi Depot Nilambur Depot
Wholesalers
70
Retailers
Malappuram District
The milk depot is a recent district is partially serving

marketing concept introduced in Malappuram. The Kottakkal depot
MRCMPU. Each depot will have receives the major supplies from
one or more portable cold rooms to Wayanad Dairy and Kozhikode
store milk and products apart from product Dairy. The Nilambur
the freezers for ice cream. The Depot receives the bulk of the
processed milk and milk products supplies from Kozhikode
are bulk transported from the processing and product dairies
processing centers, stored and re- and small consignment from
distributed to the retailers. The Wayanad Dairy. Pattambi receives
interior and difficult to reach supplies from Palakkad Dairy and
places are reached using small Kozhikode Product Dairy.
transport vehicles (Ape). The
system offers flexibility in 3.6.2 Supply Chain and Sales of
distribution of liquid milk. The Milk and Products
retailers can afford to make late In general milk, curd and butter
indent after assessing the milk are directly distributed from
requirement. The quick and the depots/dairy to the retail
prompt supplies ensure cold chain outlets using PUF insulated mini
maintenance. trucks. The milk products reach
the retail points through the
The remote and interior
wholesalers. In addition, the retail
consumers are better served this
outlets adjacent to the processing
way apart from saving the retailers
Dairies are directly served by the
from the uncertainty of long
Dairies as shown in fig. 3.3. This
waiting for the milk truck.
being the general practice,
Malappuram has two depots, one
sometimes milk is distributed
at Kottakkal and the other at
through the wholesalers and
Nilambur. A third one situated in
products through the milk depots
Pattambi of the neighboring
in Malappuram district depending
71
Malappuram District
on the ease of operation and that the market for liquid milk in
economy. Malappuram district during 2013-
14 was 85,825 LPD (Milma 67,825
Milk and milk products sold in
plus 18,000 by the competitors). In
Malappuram are shown in table
this method the sales of
3.4. It may be seen that milk sales
competitors are assessed through
reported a quantum jump from
a series of interviews and its
2009-10 to 2013-14. Similar
accuracy generally is moderate.
increases are seen in almost all
The sales in this case pertain
milk products as well, except Sip
mostly to urban areas.
Up. The observed spurt is partially
due to the re-organization of Yet another way of calculating the
marketing area and consequent market is by understanding the
addition of depots (earlier booked in end user purchases. The sample
neighboring districts Kozhikode, survey conducted by the study
Palakkad and Wayanad). group (June 2014) shows that the
Nevertheless the recent re- per capita consumption among
organization of marketing function rural people is 105 ml and urban
in Malappuram has yielded results 77 ml. The market size is
in terms of hike in sales. calculated as shown in table 3.5.
3.6.3 Market Size and Market

Share
Market size is the total volume of a
given market. Market size
calculated on a standard practice,
competitive sales approach
(bottom up approach), and shows
Table 3.4 Milk and Milk Products Sold in Malappuram District
Milk/Product 2009-10 2013-14
Liquid milk (LPD) 32356 67825

Curd (Liter/day) 9710 14672
72
Malappuram District
Ghee (Kg/month) 30000 40502

Ice cream (Liter/month) 5200 20332
Butter milk (200 ml Pkts./day) 3927 5683
Milk peda (Kg/month) 2400 4404
Sip up (Pkts./month) 125000 86354
Palada (Kg/month) 300 972
Milma plus (Bottles/month) 4600 16885
73
Malappuram District
Table 3.5 Supply Demand Position in Malappuram District 2014

Sl.
No.
1 Population number 1013721 2072572 3086293
2 Cattle holdings % 20 0 NA
3 Potential consumers (1 x 0.8) 810977 2072572 2883549
4 Actual % consumers as per HH survey 93 77
5 Actual consumers (3 x 4/100) 754208 1595880 2350089
6 Per capita cons survey result (ml per day) 105 77
7 Household consumer demand LPD
(6 x 5/1000) 79192 122883 202075
8 Inst. demand 20% of urban consumption 0 24577 24577
9 Total demand (7+8) 79192 147459 226651
10 Milma supply 67825
11 Market share % 30
The total estimated market in that the supports under the NPDD
Malappuram district is huge, 2.26 and the marketing strategies
LLPD while the MRCMPU should be geared up to improve
marketed 67,825 LPD and their the market coverage in
competitors 18,000 LPD adding up Malappuram district.
to 85,825 LPD leaving a gap of
1.41 LLPD. The market share of 3.6.4 Marketing Infrastructure-
Milma competitors seems to be Current Status
under estimated. The survey Table 3.6 shows the current status
shows that a sizeable section of of marketing facilities available for
Malappuram population, 35 per milk and milk products in
cent, continues to consume milk Malappuram district. Malappuram
powder. The market share of has a moderate network of
Milma is just 30 per cent of the institutions, wholesalers and retail
market size. The entire outlets, set up for marketing milk
institutional segment is catered to and milk products in the district.
by the private dealers from within The market analysis, however,
and outside the state. The market shows that there is a huge
exploitation by Milma suggests potential waiting to be exploited
74
Malappuram District
especially because the rural sector market potential in full, the

is opening up for milk and milk infrastructure needs to be
products and the use of milk strengthened.
powder is gradually but steadily
giving way to liquid milk. Also, the
Recommendations
changing food habits are moving in
Table 3.7 is self-explanatory. Few
favor of milk and products like
items deserving special mention
curd and ghee. To exploit the
are explained below.
Table 3.6 Existing Marketing Facility Malappuram District 2013-14

Sl.
Facility/Equipment Quantity
No.
7 PUF Vehicle Container (1.5 MT) (No.) 1
8 % milk routes using PUF vehicles for milk distribution 100
9 PUF box 50 ltr. (No.) 393
10 PUF box 100 ltr. (No.) 191
11 PUF box 150 ltr. (No.) 54
12 PUF box 25 ltr. (No.) 154
15 120 LTR. freezer (No.) 30
16 Deep freezer 320 ltr. (No.) 25
Table 3.7 Marketing Infrastructure Proposed for Malappuram District

under NPDD Programme
Total
No. of Unit
No. Description Cost (Rs
Units Cost (Rs)
in Lakh)
1 Depot/Parlor
1.1 Milk parlor civil 12 50000 6
1.3 Shoppe support 6 500000 30
1.4 Space in super market 15 20000 3
75
Malappuram District
Total
No. of Unit
No. Description Cost (Rs
Units Cost (Rs)
in Lakh)
2 Marketing Infrastructure for
Preserving/Maintaining Quality
of Milk
2.2 PUF box 25-4600 ltr. 375 LS 12.75
200 liter freezers glass top for
2.5 dealers 120 17000 20.4
2.6 120 LTR freezer 90 11000 9.9
2.8 Deep freezer 320 ltr. 120 17000 20.4
2.9 Deep freezer 320 ltr. (Glass top) 90 20000 18
2.10 Visi-cooler 220 ltr. 120 20000 24
2.11 Freezer subsidy 30 5000 1.5
2.12 Refrigerator subsidy 30 3000 0.9
2.13 Visi-cooler 320 ltr. 90 30000 27.00
2.14 Canopy with eutectic freezer
subsidy 15 100000 15
3 Awareness Programme for
Consumers
3.1 Consumer awareness programme
& publicity 90 50000 180.00
Total 394.85
a. Milk Parlors provide the necessary market

The milk parlors will be positioned stimulus for higher sales of Milma
in strategic locations to attract milk and milk products in the
more consumers to Milma district. Therefore 12 more parlors
products. Apart from selling the are suggested to be established
Milma products the Parlors will in the district. Support for
also act as a media to improve the civil structure, furnishing and
visibility of Milma products. equipments are suggested at a cost
Buyers will be served milk and of Rs 50,000 per parlor.
milk products in a consumer
b. Milma Shoppe
friendly environment. All the
The Milma Shoppe in towns can be
parlors started during Phase I
considered as a bigger version of
IDDP are performing well and they
76
Malappuram District
milk parlors to increase the IDDP scheme during the yester

visibility of the products and to years, the entire milk transport
increase the sales. Improving the from Kozhikode/ Wayanad/
visibility of Milma milk and Palakkad dairies, the feeder dairies
products is important to scale up to Malappuram district, has
its business. Improving the switched over to PUF insulated
business is crucial to sustain milk vehicles. The PUF boxes of varying
production and the livelihood sizes, 50-150 liter provided at 50
support to the resource poor milk per cent subsidy, in the retail
producers operating under the outlets together with the PUF
hard conditions of Malappuram bodied transport vehicles ensure
district. Keeping this in mind, the perfect end-to-end cold chain and
MRCMPU started Milma Shoppe quality supply of dairy products to
in Malappuram district. Shoppe is consumers. Three more PUF
a brand shop of Milma with all the body is suggested as standby
Milma products available at the for replacement of old and
outlet and it works round the unserviceable ones and to operate
clock. It has won the appreciation new routes.
of one and all and is found to be
d. PUF Boxes/Visi-Coolers
an effective tool to publicize its
MRCMPU has effectively
products. It is suggested that six
demonstrated that PUF Boxes is
more shops may be started in
the most suited and the cheapest
towns during the project period.
method to maintain uninterrupted
c. PUF Bodies cold chain from the point of origin
Among the various marketing to the point of consumption.
infrastructures provided under the Freezers are uneconomical to
CSS, the introduction of PUF preserve small volume milk. The
insulated vehicles in milk PUF boxes supplied under the
distribution routes and PUF boxes IDDP/SIQCMP are providing good
in the retail outlets are worth service to this end. Our field
mentioning. With the addition of exposure visits revealed that the
the PUF containers under the retailers wholeheartedly welcome
77
Malappuram District
the PUF boxes because they are market share in the ice cream
viable alternatives for the energy segment. The major hurdle
consuming freezers. They occupy identified against the market
less space, easily movable and expansion in Malappuram district
easy to clean. The boxes maintain is the lack of user friendly and
the temperature cold for about 3-4 energy saving freezers at retail
hours during which the milk is points. During IDDP Phase I,
generally sold out. It is proposed SIQCMP the Milk Union invested
that all retailers shall be provided in retailer level freezers and as a

result the sales of ice cream have
with new or additional PUF boxes
increased from 5200 liter/month
to achieve 100 per cent cold chain
in 2010-11 to 20,332 liter/month
maintenance.
in 2013-14. Yet there is more to be
Visi-coolers are excellent achieved. A three pronged market
equipment to keep the cold of intervention appoint more
products like flavored milk. Hence wholesale dealers, equip all retail
they (the PUF boxes and Visi- points with suitable size freezers
coolers) are suggested as part of and wide publicity through TV
market promotion. channels is suggested. Freezers of

varying sizes are additionally
e. Freezers for Ice Cream required. In addition canopy fitted
Promotion vehicles are recommended for
MRCMPU markets milk products special sales in tourist spots and
such as ghee, curd, butter milk, prominent on road locations.
milk peda, palada mix, flavored
f. Consumer Awareness and
milk and ice cream. The share of
Publicity
milk products in the total turnover
of the Union is around 24 per cent Consumer awareness camps are
and is crucial for its financial being held and dairy visits
security and liquidity. Among all organized to explain the chain of
the products, ice cream is the activities involved in milk
most promising. Unfortunately, procurement from farmers to sales
Milma has less than 5 per cent at retail outlets. The consumers
get an opportunity to gather
78
Malappuram District
firsthand information on quality Malappuram, it is being looked

assurance followed at various after by the P&I Unit functioning
stages of milk reception, at MCP Nilambur. The Unit has
processing and marketing. established a network of village
Advertisement boards and banners
level DCS in the district to
are exhibited in busy places for the
procure milk from dairy farmers.
publicity of the milk and milk
The organization of milk
products. Awareness activities are
procurement is explained in fig.
inadequate to reach all segments
3.4.
of consumers and general public.
Also Malappuram district has its
BMC DCS means a DCS in which
specificities in food habits. Hence,
the BMC is installed, Cluster DCS
it is suggested that consumer
means a DCS which supplies milk
awareness programs should go
to the BMC, and the direct DCS
beyond the usual styles and enter
means a DCS which supplies milk
into newer frontiers to attract more
directly in the Dairy/MCP. The
consumers into the fold of Milma.
milk producer delivers the
An aggressive consumer education
household surplus milk either in
cum advertisement program
the BMC DCS, Cluster DCS or
through all channels of media
Direct DCS. The Cluster DCS in
shall be launched in Malappuram
for two purposes awareness turn delivers the milk to the
creation among all sections of nearest BMC. The direct DCS
people and market promotion - as supply milk direct to dairy dock.
a tool for socio economic 32 DCS dispatch milk direct to the
improvement for which an amount Dairy in Kozhikode. The Pattambi

of Rs125 lakh is suggested. milk chilling plant collects milk
from 28 DCS in Malappuram apart
3.7 Milk Procurement from the 74 from Palakkad district.

Kottakkal MCP collects milk from
22 DCS. The Nilambur milk
Procurement
chilling plant collects milk from
Milk procurement is one of the
122 DCS all in Malappuram. Both
key functions of MRCMPU and in
79
Malappuram District
Fig. 3.4 Organization of Milk Procurement Malappuram
NMBR MCP KKD DAIRY PTMB MCP
BMC DCS
Cluster DCS
Milk
Direct DCS Producers Direct DCS
Key words: NMBR MCP Nilambur Milk Chilling Plant; KKD

Kozhikode; PTMB MCP Pattambi Milk Chilling Plant
chilling plants (Pattambi and Although the Milk Union takes

Nilambur) are feeder units to every possible step to collect the
Kozhikode Dairy. The district has entire milk from the producers,
six BMCs functioning in five DCS. flush season stresses and long
BMC DCS chill the milk before distance transport from
transporting to Kozhikode Dairy. Malappuram to Kozhikode often
The Dairy in turn processes and creates operational issues and
markets the milk in towns and disruption of procurement. The
other urban areas within and past experience of MRCMPU in
outside the district. The whole other districts shows that the
chain of activities - procurement, demand created by a steady and
processing and marketing - is well progressive milk collection coupled
orchestrated and well executed. with remunerative milk price and
80
Malappuram District
regular payment stimulate local The DCS classified according to

milk production. The same daily procurement shows that 20
strategy can be adopted in per cent were collecting less than
Malappuram district too and 100 LPD and yet another 28 per
the pre-requisite is a central cent between 100 and 200 LPD.
processing Dairy. The study shows that those DCS
are not economically viable. The
3.7.2 Profile of DCS in reasons for the poor procurement
Malappuram rate can be attributed to the
Table 3.8 shows the profile of the location of DCS in non-farming
DCS in Malappuram district. From area, induction of non-producers
among the 43,854 registered milk as members and other options for
producers in the district, on an selling milk. The relocation of
average 8700 (19.8%) alone those DCS needs to be considered.
supplied milk during 2013-14. The
Out of 219 DCS, 69 (31%) function
low proportion of suppliers is due
in own building; 121 (55%) have
to non-removal of the non-
electricity and water
producers from the DCS roll
arrangements. The absence of own
because of the cumbersome
building, lack of electricity and
statutory procedures. The average
lack of good quality water in
procurement per DCS was 214
adequate quantity are identified to
LPD and per supplier 4.83 LPD
be the reasons for poor hygiene
during 2013-14. The local sale,
and poor microbial quality of milk.
11243 LPD, accounted for 24 per
The average MBRT of milk from
cent of the daily procurement
majority number of DCS is 65
indicating fair demand for milk
minutes (Table 3.8).
from the locality due to falling milk
production. The rate of
3.7.3 Milk Procurement
procurement per DCS is poor in
Coverage
comparison with other districts of
Malappuram has 1845 Panchayat
the region.
wards of which 50 per cent are
under milk procurement coverage.
81
Malappuram District
Table 3.8 Profile of DCS in Malappuram District March 2014

Sl.
No.
1 No. of functional APCOS (31-3-2014) 219
2 No. of farmer members/DCS 200 (43854)
3 Av. number of suppliers/DCS 39 (8700)
4 Milk procured from farmers in DCS (LPD) 46820
6 Milk supplied to milk union (LPD) 35577
7 Av. farmer procurement/DCS (LPD) 214
8 Av. procurement/supplier (LPD) 5.38
10 Av. price - Local sales (Rs/liter) NA
11 No. of DCs collected <100 LPD 46
16 Av. fat% 3.95
17 Av. SNF% 8.3
18 No. of BMCs 5
20 Av. collection through BMC in MPM district 12500
(LPD)
21 No. of DCS making supply at dairy dock & MCP 13
23 No. of DCS provided analyzer only (including 19
DDD)
26 No. of DCS provided Gerbers test equipment 135
only
27 No. of Panchayat wards in the district 100
28 % coverage under milk procurement 70
29 % wards having potential for milk collection 15
31 No. of DCS having adequate water supply 123
arrangements
33 No. of DCS having electricity 121
34 No. of milk cans supplied during last five years 470
82
Malappuram District
As nearly 25 per cent of the As the price paid to the dairy

geographical area is forest and as farmer is based on the quality of
the costal belt has few cattle, only the milk, facility for assessing it at
about 15 per cent of the left out the DCS is crucial. The
wards have the potential for cooperatives in Malappuram follow
starting new DCS. any of the three known procedures
of quality assessment, namely
3.7.4 Milk Quality and Quality conventional milk testing (Gerbers
Administration in DCS test for fat and LR for SNF
The MRCMPU follows two axes determination), Milk-O-Tester for
pricing i.e., farmers are paid on fat and LR for SNF and Automatic
the basis of milk fat and SNF in Milk Collection Units (AMCU) for
the milk. The village cooperatives quality and price determination.
are equipped to determine the fat The AMCU is the most desirable
and SNF. Few DCS are equipped to because it is convenient, error
detect added preservatives, proof, quick and transparent.
adulterants and neutralizers as Table 3.9 shows that 56 out of 217
well. APCOS possess AMCU.
Table 3.9 Average Quality of Milk in Malappuram, 2013-14
Parameter Values
Fat % APCOS 3.95
Fat % non-APCOS NA
SNF % APCOS 8.30
SNF % non APCOS NA
Av. MBR time direct DCS (Mts) 60
No. of APCOS using/ supplied 56
AMCU
Milk O tester & LR
Gerbers test & LR
83
Malappuram District
Although most of the DCS we are of the opinion that the

possessing AMCU use them for analyzers need to be re-introduced
milk collection very few use the after rectifying the practical issues
auto analyzer (one of the in consultation with the
instruments of AMCU) reportedly manufacturers and suppliers.
due to the slowness in testing. Almost all BMC DCS possess
Some units are reported to be equipments for MBRT estimation.
erratic in fat and SNF estimation But not all of them have started
while some others have using them.
inconsistent results. The poor
About the quality of milk procured
performance of the analyzers
from Malappuram district, the fat
causes hardships to the farmers
content averaged 3.95 per cent,
and DCS and the DCS have
and SNF 8.3 per cent which needs
discontinued its usage or changed
improvement. The average MBRT
the configuration of the system by
of milk from BMC is 95 minutes
substituting EMT instead of
and that of dock supplied milk is
analyzer. The EMT test fat only
60 minutes which again is not
and SNF has to be calculated after
appreciable. In the years to come
taking manual reading of
both compositional and bacterial
lactometer. In such cases the
quality will have a telling influence
farmer cannot understand the fat
on the marketability of milk.
and SNF content in the milk
Farmer education and use of
supplied and cannot get an instant
AMCU can further improve the
print out from the AMCU thus
compositional quality while the
defeating the very purpose of
best way to usher in microbial
introducing AMCU and
quality is to incorporate this as a
automation. AMCUs are excellent
third parameter in the price
gadgets to ensure transparency in
formula. Towards this end, it is
milk procurement in village DCS.
suggested to introduce an
It avoids the hassles of quality
incentive for the good quality
checking, volume measurement
(microbial) milk under the NPDD
and payment of milk price. Hence
as a beginning.
84
Malappuram District
3.7.5 Key Issues and Suggestions a. Buildings

The key issue in Malappuram is the As pointed out in the forgoing
low rate of procurement per DCS sections a sizeable number of DCS
and supplier and the burgeoning function in rented buildings. Most
mismatch between demand and of them do not have the minimum
supply. To address this, Rs 487.89 facilities for hassle free milk
lakh has been invested in collection and dispatch. BMC
Malappuram district under the installation is virtually impossible
IDDP and SIQCMP schemes. The and effluent disposal is a serious
IDDP support is available for two issue. Therefore, it is suggested to
more years (2014-15 and 2015-16). include provision for subsidizing
After considering all those facts and new DCS buildings at the rate of
the need to push the milk Rs one lakh per DCS. Eighteen
production further in Malappuram DCS are identified to have the land
the following suggestions (Table and financial capacity to do this
3.10) are put forward for the during the project period.
consideration of NPDD.
Table 3.10 Suggested Support for Milk Procurement under NPDD
Malappuram District
Sl. No. of Unit Total Cost
Milk Procurement
No. Units Cost (Rs) (Rs in Lakh)
1 Building construction 18 100000 18.00
3 Bore well 10 25000 2.50
4 Open well 15 10000 1.50
7 Automatic milk collection units 3 125000 3.75
14 Subsidy to cattle feed transport 21500 400 86.00
15 Incentive to better quality milk 1000 LPD 0.5 5.50
Total 137.95
85
Malappuram District
b. Water Supply System quantity that will be sold in

Developing water source and Malappuram district in three
water supply is becoming years comes to 21,500 MT. An
increasingly important in amount of Rs 0.4/kg is the
Malappuram. Most of the DCS suggested subsidy for transport
find it difficult to mobilize cost. The total for three years
adequate capital for investment. works out to Rs 86 lakh. The
Hence, a subsidy of Rs 60,000 amount may be provided as
per unit is suggested for 10 subsidy so that the price of cattle
numbers at an estimated cost of feed can be kept low.
Rs 6.0 lakh. Water harvesting,
d. Incentives for Good Quality
installing water tanks and
Milk
pumping facilities are envisaged.
Consequent to the implementation
In addition digging 10 bore wells
of SIQCMP the bacterial content
at the rate of Rs 25,000 per unit
in raw milk has been
and 15 open wells at the rate of
significantly reduced. The low
Rs 10,000 per unit are also
bacterial content improves the
suggested for the district.
organoleptic properties (taste and
c. Subsidy for Cattle Feed flavor) of the milk apart from
Transport heat stability and longer shelf
Milma cattle feed is being sold life. The products made from
through the DCS. The farmers fresh milk (low bacterial milk) are
wholeheartedly welcome the specially liked by the consumers.
arrangement because of the Both the consumer and the Milk
convenience, easy access and Union is benefited from clean
credit facility. The transport of milk but not the producer. The
cattle feed from producer farmers are not compensated for
company to the DCS entails cost. their extra effort to produce good
It is suggested to subsidize the quality milk. As a beginning it is
transport cost. The estimated proposed that the top two per
86
Malappuram District
cent of the milk may be paid an operational ease and animal

incentive of Re 0.50 per liter. The comfort. Most of the cattle sheds
estimated daily procurement is in Malappuram are a mere make
50,000 LPD and the outlay at the shift shelter with mud/wood floor,
suggested rate works out to Rs tile/asbestos/PVC/Silpaulin roof,
5.5 lakh for three years. dark and musky, all in one floor
(no urine or dung channel)
3.8 Cattle Shed and Farm and without any watering
Machineries arrangements. The cows remain in

this shelter most of the time (no
Table 3.11 Farm Equipments grazing). The hind quarters and
Supplied from MRCMPU and the udder often remain soiled by
MRDF to Farmers in Malappuram dung and mud. Udder and teat
District injury is common. Feeding of water
Sl. is only occasional. Considering
Item Quantity
No.
the importance of god cattle sheds,
2 Milking machines 41 the Milk Union procured funds for
3 Rubber mats 673 cattle shed modifications and
4 Pressure washers 16 construction of new cattle sheds
5 Gen sets 2 under the IDDP and SIQCMP
6 Cow drinker 12
schemes. In the past, 228 cattle
7 Chaff cutter - Motorized 2
sheds have been funded under the
Well-constructed cattle sheds are a IDDP/SIQCMP schemes. During
pre-requisite for clean milk the course of the field work we
production. A dirty cattle shed found that the floor of cattle sheds
contributes substantially towards are well made using the allotted
external contamination of milk and fund. However, construction of
entry of microbes in to the udder new cattle sheds is very expensive
causing sub-clinical/clinical in Kerala due to the high labor
mastitis. A well-constructed cattle cost and the cost of materials. The
shed should also provide budget provision of Rs 10,000/- is
87
Malappuram District
thoroughly inadequate and will not cattle keeping and making the
meet even 10 per cent of the daily chores less arduous is
overall cost. Therefore, it would be crucial for the very sustenance of
more sensible if the support could dairy farming. Considering the
be extended for renovation and economic and social significance of
modification of the cattle sheds dairying, the MRCMPU has
with watering facility rather than initiated financial support for farm
insisting on a new cattle shed. The mechanization. The Union has
numbers suggested are given as been providing and channeling
table 3.12. support since the last few years.
However, only few farmers could
On the face of shrinking family
be funded so far and many more
size, changing status of women in
are waiting. It is suggested that
the society, and opportunities for
assistance may be continued and
employment in other sectors of the
funded under NPBBDD. The
economy the availability of labor
components suggested, quantity
for dairy farming is fast declining.
and the estimated cost are
Hired labor for dairy farm activity
presented in table 3.12.
is uncommon in the district.
Hence, reducing the labor for
Table 3.12 Cattle Shed and Farm Machineries Proposed under NPDD for
Malappuram District
Total Cost
Component Units (Rs in
No. Units (Rs)
Lakh)
1 Strengthening of old sheds No.
and constructing new sheds 150 15000 22.50
2 Auto watering system No. 75 5000 3.75

Cattle Farm
Mechanization
3 Gen set No. 9 75000 6.75
4 Pressure washers No. 150 7500 11.25
5 Rubber mats No. 750 2500 18.75
Total (4.0) 1155 63.00
88
Malappuram District
3.9 Cattle Induction recommended to be supported
The lack of easy access to bank under NPDD.
loan at affordable interest remains

Only BPL families will be
a major obstacle for the new
included for cattle induction
entrants into the cattle farming. To
activity.
overcome this issue, cattle
induction schemes have been
Fifty percent of cows and
implemented by several fifty percent of heifers are
development agencies in the State. reserved for women.
The MRCMPU too distributed 1700 Women members will be

heifers to 370 farmers in allowed 75 per cent price
Malappuram to promote cattle subsidy and others 50 per
rearing. cent of purchase price.
Cattle keeping in the district are a Transportation cost shall be
job of economically weaker met in full under the
sections of people (BPL families) scheme.
and women. It continues to be a Seventy five percent of the

major source of securing daily insurance amount shall be
livelihood to them, especially included under the scheme
women. Therefore the following and the balance as
numbers of cattle (Table 3.13) are beneficiary contribution.
Table 3.13 Cattle induction Program Proposed in Malappuram District

Total Cost
Cattle Induction (Rs in
No. Units (Rs)
Lakh)
240 2000 4.80
animals
Total 92.55
89
Malappuram District
3.10 Establishment of necessity to have a central lab by
Laboratory in resource pooling is justifiable
Malappuram/Kozhikode because:
Dairy and MCP 1. As part of modernizing the

Nilambur hygienic systems in the Dairy,
automatic data capturing
An amount of Rs 51.58 lakh had
system, software for easy
been invested under phase I & II of
monitoring of FSMs and a
IDDP and SIQCMP schemes and
high capacity pressure jet is
Rs 22.1 lakh by Milk Union in
proposed in the Project.
upgrading the Kozhikode/MCP
Nilambur dairy lab. The lab has 2. While the Kozhikode dairy
facilities including equipment for has ISO: 22000 certification,
routine tests. However, the recertification and
provision requested for the central surveillance audits and
lab is to develop and equip it. The certain equipment and
suggestion is to turn the Milk software for the maintenance
Testing Lab in Kozhikode dairy of these systems are to be
into a state of the art lab capable acquired. The amount
of carrying out all the mandatory suggested is towards this
and extra mandatory tests. The end.
Table 3.14 Establishment of Laboratories under NPDD in Malappuram

Total Cost
Item of Expenditure (Rs in
No. Units (Rs)
Lakh)
A Capital Expenditure
1 Central milk testing lab 1 LS 70.00
3 Automatic data capturing system 1 2200000 22.00
B Recurring Expenditure
dairy establishments under 1 500000 5.00
HACCP/ISO
Total 104.00
90
Malappuram District
3. Certification audits and all the samples for antibiotic,

subsequent yearly survival pesticide residues are
audits by the officials from analysed in the approved
the accreditation body are to laboratories outside. The lab
be conducted in the once completed can
organization to evaluate the undertake analysis like
food safety system. A number bacterial enumeration,
of hygiene systems, trainings, screening for pesticide and
and other capital investments antibiotic residues, and many
are needed for the above more. Both raw milk and
process. finished products can be
tested monthly. Internal
4. In the light of stringent food
regulatory action can also be
safety laws like Food Safety
taken in instances of non-
and Standards Act, 2011 and
compliance with quality
increasing awareness of the
standards. This lab can also
consumers about food safety
examine consumer
and consumer rights, it is
complaints regarding quality
essential that the
of dairy products. Water
organization acquires FSMS
supply in the farms and
Certification for the entire
processing plant can be
unit for supplying safe
screened for coliform
products with consistent
bacteria. The processing and
quality.
cooling water in the dairy
5. The MRCMPU is upgrading
processing plants are
the Kozhikode dairy lab as
required to be tested on a
Central Milk Testing Lab for
monthly basis, which can be
the union, with modern
carried out in the proposed
testing facilities so that the
lab. The Central Dairy lab
dairies in the all the six
assists in ensuring that all
districts can do the costly
dairy products produced in
analysis of their milk samples
the units meet the high
at a central point. At present
91
Malappuram District
quality standards that the facilitate the improvement of

consumers expect from quality of milk. Only few farmers
MILMA. in the district are the
beneficiaries of this component
and many more are waiting for
Under the SIQCMP scheme the
the benefits. Therefore the
MRCMPU had supplied the
utensils and vessels may be
following articles to the farmers in
supplied through the DCS free of
Malappuram district (Table 3.15).
cost under the NPDD to those
Supplying cleaning agents and
farmers who are yet to receive
sanitizers to farmers had little
them. The numbers suggested
impact on clean milk production.
and the financial requirement is
In practice the farmers discontinue
provided in table 3.16.
the use of chemicals and
disinfectants once the free supply
Milking machines are relevant in
is stopped. Hence the supply of
todays context as the family
free detergent/chemicals for udder
labor for farmstead jobs are
/utensil cleaning is not
steadily declining. Our field
recommended.
exposure visits show that almost
Supplying stainless steel utensils all the beneficiary farmers of
(the milking utensils and earlier schemes use the
carrying vessels) are of use to the machines although continuous
farmers and they wholeheartedly service back up is essential. It is
welcome it. These utensils suggested that twenty farm
Table 3.15 CMP Kits Supplied under SIQCMP Scheme in Malappuram

District
Sl. Financial
Description Physical
No. (Rs in Lakh)
1 Detergents & chemicals to DCS/farmers lot 8.32
2 Stainless steel utensils to beneficiaries 39.01
92
Malappuram District
Table 3.16 CMP Kits and Milking Machines Suggested under NPDD for
Malappuram District
Sl. No. of Unit Cost Total Cost

Components
No. Units (Rs) (Rs in Lakh)
1 Stainless steel utensil kit/
accessories 1500 400 6.0
machine & other equipments
20 55000 11.0
for hygienic milk handling at
Village/Farmer level
3 Manual milking machines 50 6000 3.00
Total (7.0) 17.25
owners owning five or more SIQCMP schemes earlier

milking cows shall be supplied implemented in the district. An
milking machines at subsidized amount of Rs 55.40 lakh have
(75 per cent) rate under NPDD. been spent for providing various
It is also suggested that 50 hand support inputs and services under
operated machines shall be the IDDP/SIQCMP schemes.
supplied to the needy farmers

The TIS are under the state
after making a scientific and
domain and the line departments
methodical field trial in
have a plethora of schemes for
association with KVASU. supporting the farm level activities.
However, as the household survey
3.12 Technical Input Services shows the efficacy of these services
(TIS) especially the AI and health care
The technical input services delivery at farm gates remain poor.
include support for animal Since those services are in the
breeding, health care including domain of the State, the change in
prophylaxis, fodder development service delivery requires policy
and other associated activities for decisions. In order to avoid
the benefit of participating farmer duplication of such services (AI,
members. The TIS was a major health care, homestead fodder
component under the IDDP and production) are not suggested
93
Malappuram District
under the NPDD. The components based program centrally controlled

suggested for Malappuram (Table and monitored from HO of
3.17) are those not covered by the MRCMPU.
line departments and are the most
The conventional homestead
essential.
fodder production is a tried and
The LN containers are for failed program in Kerala. The
replacement of the ones in use. As reasons are many, the most
this component is covered under important being land
the NPBB, separate provision is fragmentation and the declining
not requested. The animal health farming activities. On the other
and breeding input camps include hand large land holdings and
a pilot program for fertility fallow land are potential sources
management of dairy cows among for fodder production fodder as a
farmers. The programs envisage value added crop in irrigated land.
identification of infertile cows, The fodder so produced shall be
providing management and marketed among the DCS
veterinary support to correct members at cost price. The scheme
reproductive problems if any, and shall be a flagship program of
documenting the information for NPDD.
adoption elsewhere. It is a DCS
Table 3.17 Technical Input Services Suggested in Malappuram District

under NPDD
Total Cost
Sl. No. of Unit
Component (Rs in
No. Units Cost (Rs)
Lakh)
1 Liquid nitrogen containers 6 0 0
3 Animal health & breeding
input camps LS 25.00
4 Chaff cutter 36 20000 7.20
5 Commercial fodder
production 10 100000 10.00
Total 46.00
94
Malappuram District
3.13 Information and the Milk Union is in the infant
Communication stages of exploiting the benefits of
Technology Networking IC technology.
The MRCMPU apart from being a

The current status of IC
farmers organization is also a
technology use is that the dairies
multi-crore business concern. Its
are computerized and internally
networked (intranet). Few DCS are
widely distributed. The application
also computerized but not
and full utilization of information
networked. The milk Union
and communication technology
proposes to expand the IC so that
alone will enable the MRCMPU to
the system will function as a client
modernize their units and keep
server architecture network with a
abreast of their competitors. It is
center in each district (Palakkad,
also essential that the whole
Malappuram, Kozhikode, Wayanad,
business of MRCMPU is
Kannur, and Kasaragod) and a
transparent to their stakeholders,
central server system linking all
the dairy farmers. Unfortunately,

Malappuram District
Unit Amount
Sl.
Purchase of Computer/HHB Rate (Rs Units (Rs in
No.
in Lakh) Lakh)
1 Desktop 0.50 16 8.00
2 Laptop & Netbook 0.60 11 6.60
3 Hand held range of computers 0.30 30 9.00
4 Rack server 9.00 3 27.00
5 42 U server rack 1.00 1 1.00
6 Foldable TFT console 0.45 0.00
7 Server storage device 8.00 1 8.00
8 Tape backup 8.00 1 8.00
9 UPS for server 7.00 1 7.00
10 Weblogic server suite purchase 15.00 3 45.00
11 Oracle database 12C 15.00 1 15.00
12 Antivirus software 1.00 1 1.00
13 Hardware & networking 10.00 1 10.00
14 Software consultation charges (AMC) 5.00 1 5.00
Total 150.60
95
Malappuram District
these six centers. The data and reduction, energy conservation

information will be made available and product improvement in
to all the districts and DCS. The MRCMPU. Apart from the Union
details of the proposed system are employees, the staff and elected
given as annex-1. The expenditure members of the DCS and the
is to be shared between the district Board are also trained on
projects. The share of Malappuram appropriate subjects. Table 3.19
district is illustrated as table 3.18. shows the numbers trained in
various categories from
3.14 Manpower Development Malappuram district.
The training and development

The DCS staff has been trained
program is adopted as a tool for
at the HRD Centre, Kozhikode
organizational development and to
under MRCMPU on the relevant
make strides in productivity
subjects. The trainers included
standards including cost
Table 3.19 Employees and Elected Members Trained from

Malappuram District
Number of
Sl.
Training Course Persons
No.
Trained
1 C D program
c FIP- local farmers attended 927
d Management orientation (MCMOP) 80
5 Training on AI 12
8 FIP 543
10 Training of management committee members 83
96
Malappuram District
those from within the upgrading their skill and

organization and also experts knowledge. An amount of Rs 54.4
invited from other organizations. lakh has been spent for various
The duration ranged from one to training programs in
three days and the subjects Malappuram district under the
handled were those relevant to IDDP and CMP Phase I and II.
the concerned groups.

The CD program includes Suggestions
training in village cooperatives 1. Future training especially
followed by a visit to processing those for the middle level
Dairy/cattle feed plant. Farmers employees starting from the
are the trainees. The farmers level of Supervisors should
Induction program is normally be hand on training
carried out in the HRD Centre, exclusively on subjects and
Kozhikode. The Dairy Animal skills relevant to them.
Management Training to the
2. Farmers training should be
farmers has been undertaken in
organized in the villages
APCOS DCS. The training
with the support of LSG and
visit to a few well run farms. The
under MRCMPU.
farmers were given opportunities
to see for themselves the success 3. All out and comprehensive
and failure stories. training on Mastitis

The training for MRCMPU Production for farmers,
employees is arranged by the Village Extension Workers
Head Office in the institutions of and DCS employees should
repute in India, both inside and
be initiated on a project
outside the State. An interaction
mode and results closely
with a test group showed that the
watched and monitored.
trainings were partially useful for
97
Malappuram District
4. The Dairy Managers, 6. The FIP must be gradually

Production Officers and phased out.
Marketing staff should be
The courses suggested and the
exposed to higher levels of
estimated cost is given in table
knowledge on production
3.20.
and marketing management.
They should be provided 3.15 Working Capital
opportunity to visit centers Malappuram District
of excellence outside the Large amount of Working Capital
state. are needed to ensure smooth and
5. The thrust of capacity uninterrupted supply of raw

materials, consumables, etc. for its
building of higher level
manufacturing and sales
employees should be on
operations.
modern Management
Systems rather than on Each unit shall maintain
technical subjects. They minimum quantity of finished
should be exposed to what products at all times to ensure
happens in dairy sector uninterrupted sales. Minimum
elsewhere in the country (eg: quantity of all raw materials,

consumables packing materials,
Schreiber Dynamix) to
stores and spares, etc. are
widen their vision and
required to maintain smooth
outlook.
processing/production operation.
Table 3.20 Proposed Training Program under NPDD

Malappuram District
Total Cost
Sl. No. of Unit
Name of Course Units (Rs in
No. Units Cost (Rs)
Lakh)
1 CD programme 15 80000 12.0
2 Training DCS employees & elected
members Lot 15.00
Total 107.0
98
Malappuram District
The working capital requirement of The Milk Union do not have

the Union is fluctuating adequate cash reserve to meet the
throughout the year depending on expenses mentioned above. The
local milk procurement. The milk Union resorts to soft loans and
procurement of the Union over drafts to avoid disruption of
fluctuates drastically between the milk value payments to farmers
flush and lean season. Union and to maintain supplied and
needs huge amount of Working services to DCS. The borrowings
Capital during lean season attract interest which in turn
(January to May) and flush season limits the farmer beneficiary
(June, July, October, November). programs and investments in
This is to ensure timely milk value dairy. In coming years the burden
to the farmers even when money is is poised for increase. Hence it is
held up in the form of inventory requested that an amount of Rs
like ghee, skimmed milk powder, 285 lakh may be paid as a onetime
consumables, and cattle feed etc. assistance towards working capital
assistance for Malappuram
During lean season union is
district. The amount requested is
procuring milk from other states for
equal to milk value for 21 days as
which payments are made in
shown in table 3.21.
advance. SMP is also to be stored to
take care of any possible short
supply from outside state. During
flush season funds are needed to
stock ghee, converted SMP, cream,
etc. which are produced in excess of
normal market requirements. In
addition the Milk Union is supplying
cattle feed and other inputs to the
societies on credit basis. Present
supply of cattle feed to societies is
more than 600 MT per month.
99
Table 3.21 The Milk value due for 21 Days in Malappuram District to
Farmers
Milk Procurement (LPD) Average Total Milk Total Milk

Milk Price Days value (Base Value(EOP)
2013-14 2014- 2015- 2016-
(Rs.) Year) (Lakh) (Lakh)
(Actual) 15 16 17
0.37 0.40 0.43 0.47 28.88 21 224.40 285.05
4. KOZHIKODE DISTRICT
Contents
Executive Summary ........................................................................101

4.1 General Features .......................................................................105
4.2 Trend in Cattle Population .........................................................106
4.3 Trend in Milk Production from Bovines ......................................107
4.4 Milk Chilling Facilities in Kozhikode District ..............................107
4.5 Milk Processing .........................................................................109
4.6 Milk Marketing ..........................................................................113
4.7 Milk Procurement ......................................................................120
4.8 Cattle Shed and Farm Machineries ............................................127
4.9 Cattle Induction ........................................................................129
4.10 ........................... Establishment of Laboratory in Kozhikode Dairy
.......................................................................................................130
4.11 Clean Milk Production ............................................................132
4.12 Technical Input Services (TIS) ..................................................134
4.13 Information and Communication Technology Networking .........135
4.14 Manpower Development...........................................................136
4.15 Working Capital - Kozhikode District .......................................139
Malappuram District
Kozhikode District
Kozhikkode
District
100
Malappuram District
Executive Summary
The Kozhikode district is not processing capacity of Kozhikode

among the frontline dairy districts dairy. But the dairy requires
in Kerala. Yet livestock farming is certain critical equipments, some
germane to the vast majority of the as standby and some as
farmers in the district. The official replacement. The suggested
statistics, however, show that the additions and replacements are
Animal Husbandry sector, both in estimated to cost Rs 164.00 lakh.
numbers and output, suffered
setbacks since late nineties. The
cattle numbers declined by 68 per
Kozhikode district is 3.25 LLPD.
cent from 1996 to 2012 and in-
milk cows by 29 per cent.
the liquid milk segment is just 25
Concurrent with the changes in
per cent which is not encouraging.
cattle numbers the annual milk
The Milk Union is facing fierce
production also declined from 197
competition from the competitors,
thousand MT in 2001-02 to 86
mainly from within the district,
thousand MT in 2012-13.
but also from outside to a smaller
The MRCMPU has one milk level. But the market analysis
processing dairy and a Product reveals that this is not a restricting
Dairy at Kozhikode The installed factor to command a better market
capacity of the Processing Dairy at share. The inadequate market
Kozhikode is 1.5 LLPD. During infrastructure is one of the
2013-14, the dairy processed on reasons for the low market share.
an average 1.0 LLPD, 34 per cent The dairys business plan may also
below the installed capacity. Even require some revision. Hence an
at the peak procurement level aggressive marketing strategy
during the year, the dairys supported by adequate
capacity utilization has only been infrastructure is required. To
71 per cent. Hence there is no begin with, new milk parlors and
urgency in expanding the Shoppe are suggested to be opened
101
Kozhikode District
in prominent public places. Wide The lack of good cattle sheds and
publicity through print and visual farm machineries are identified as
media is also suggested. Periodic one of the constraints in dairy
market surveys and R&D on production in Kozhikode district.
consumer likes and preferences Financial support for
(example attractive packing for strengthening of old cattle sheds/
flavored milk, ice cream, peda etc) construction of new ones and
are also suggested. The estimated supply of farm machineries and
cost on market promotion works equipments are proposed at a total
out to Rs 393.4 lakh. cost of Rs 81.25 lakh.
The MRCMPU has built up an In order to promote cattle keeping

extensive net work of DCSs and among the below poverty line (BPL)
BMCs for milk procurement from and the SC/ST women, a cattle
farmers in Kozhikode district. All induction program is suggested.
the DCSs have reasonably good The NABARD norms shall be
milk testing facilities. All the BMC followed for administering the
DCSs have facility for MBRT subsidies. The overall support for
estimation. The field level milk 240 animals is estimated to be Rs
testing, however, requires further 92.55 lakh.
refinement. The major constraints
identified in the expansion of milk
procurement and clean milk
Kozhikode dairy by pooling the
production are lack of convenient
funds from all the districts. This
buildings for DCSs, absence of
will eliminate the need for
good quality water supply facilities
replication of the same facilities
with some DCSs and lack of
and expenses in all the districts.
incentives for clean milk
Some additional equipments and
furniture are also required in
feed transport. The support
Kozhikode dairy lab. All these
suggested for procurement
together are estimated to cost Rs
activities in Kozhikode district is
32.00 lakh.
expected to cost Rs 224.55 lakh.
102
Kozhikode District
The farmer beneficiary programs scale up some of these programs.

proposed are aimed at milk The suggested programs would
productivity enhancement and cost Rs 57.36 lakh.
clean milk production. The current
proposals include animal breeding
and health cover, distribution of
stainless steel utensils, milking
Kozhikode district. The milk prices
machines, and commercial fodder
are to be paid to the farmers
production for which the estimated
regularly which alone cost rupees
cost works out to Rs 61.45 lakh.
643 lakh or more every 21 days.
The Kozhikode needs to network In addition, keeping a buffer stock
with the various units and the of raw and finished goods is
DCSs for effective information essential to safeguard an
sharing and communication. The uninterrupted business. This as
suggested system is a client server also several other requirements
architecture network with force the milk Union to borrow
six centers, one in each money from the open market
district (Palakkad, Malappuram, which causes extra burden to the
Kozhikode, Wayanad, Kannur and Union and the farmers. Hence it is
Kasaragod) and a central server suggested that an amount of Rs
system linking all these six 275 lakh shall be paid to the milk
centers. The data and Union as a one-time assistance for
information will be made available Working Capital for Kozhikode
to all the districts and DCSs. The district.
estimated cost of these is Rs 143.6
Abstract of suggested programmes
lakh.
is as follows:
activity of MRCMPU. Several
programs were running for the
past few years. It is suggested to
103
Kozhikode District
Amount
Component
(Rs in Lakh)
CMP kits to farmers & tech inputs to farmers 61.45
Information and communication sharing 143.60
Total 1525.16
104
Kozhikode District
4.1 General Features coconut, paddy, banana, tubers,

The Kozhikode district came into spices and tree crops. After crop
existence in 1957. The district production livestock sector
situated on the south west coast of provides the vital livelihood
India is surrounded on the north support for farming community.
by Kannur, on the east by The livestock development
Wayanad, on the south by activities are supported both by
Malappuram districts and on the the government departments and
west by the Arabian sea. local self governments apart from
Topographically the district has Milma. The department of Animal
three distinct regions-the sandy Husbandry under GOK provide
coastal belt, the rocky highlands breeding and heath care services
formed by the hilly portion of the through one district center, two
Western Ghats and lateritic poly clinics, 13 hospitals, 71
midland. The total geographical dispensaries and 109 insemination
area of the district is 2,33,330 centers apart from a multitude of
hectare (2344 km2) with 30.86 other functionaries like clinical
lakh people (2011 census) and a lab, RP eradication units etc. The
population density of 1317 department of Dairy Development
persons/sq.km. Nearly 20.73 lakh under GOK provides the extension
people live in urban area and half services, promotes fodder
of that only, 10.13 lakh, in rural development and administers the
area (2011 census). The district is milk co-operatives, both APCOS
subdivided in to three Taluks and and others. The department has
117 Villages, 75 Grama 12 dairy extension units in the
Panchayats, two Municipalities district. The district houses the
and one Municipal Corporation. HQ of Regional Milk Union -
MRCMPU, Kozhikode Dairy a
Agriculture is the major income
capacity of 1.5 lakh LPD, one
and employment provider in rural
product dairy for the manufacture
sector. The major crops raised are
of special milk products and a
105
Kozhikode District
training center. The MRCMPU district declined during this

apart from collection, processing period. The total cattle declined by
and marketing of milk and milk 58 per cent and cows in milk by 29
products also provides cattle per cent between 1996 and 2012.
breeding and extension support The in-milk buffaloes had mixed
through the village dairy fortune, the numbers sharply
cooperatives. Few private agencies declined from 2524 to 156 between
are also marketing milk in the 1996 and 2007 and there after
district. substantially gained between 2003
and 2012. Although the accuracy
4.2 Trend in Cattle of the data on cattle numbers is
Population questionable, it is certain that in
The cattle population in Kozhikode the recent past many dairy
district declined between 1996 and farmers in Kozhikode district
2012, the official statistics shows. dropped out of dairying due to
As is evident from fig. 4.1, both economic and other factors.
the total and in milk cows in the
Fig 4.1 Cattle population Kozhikode District

300000
250000
200000
N u m b ers
150000
100000
50000
0
1996 2003 2007 2012
Total Cattle 262497 169404 133494 109500
Cows in milk 48835 38218 20289 34800
Buffalo in milk 2524 188 156 2600
106
Kozhikode District
4.3 Trend in Milk Production milk went up but the milk
from Bovines production declined, a difficult
According to the ISS estimates situation to explain. Although the
(Fig. 4.2) the annual milk accuracy of the data is
production in Kozhikode district questionable, we have to accept
increased from 128 thousand MT these figures as we dont have any
in 1997-98 to 196.8 thousand MT other authentic data on milk
in 2001-02 and declined to 86.2 production.
thousand MT in 2011-12. The

trend in Kozhikode district is 4.4 Milk Chilling Facilities in
contrary to that observed in other Kozhikode District
districts. In almost all other The milk chilling facility in
districts the last two to three years Kozhikode district during 2013-14
witnessed sharp to moderate (other than Kozhikode dairy) was
increase in milk production. In as shown in table 4.1.
Kozhikode district the animals in
Fig 4.2 Milk Production Kozhikode district from Bovine

( source ISS AHD GOK)
250
200
M ilk '000M T
150
100
50
0
97-98 2001-02 2004-05 2008-09 2011-12
128 196.8 115.5 104.1 86.2
107
Kozhikode District
Table 4.1 Milk Chilling Facility in justifiable from the point of view of
Kozhikode District 2013-14 proximity, from the quality point of
Sl. Volume view is indefensible. The quality

Description
No. (Liter) comparison of BMC supplied and
1 BMC DCS (21) 47000
dock supplied milk (table 4.2)
2 Milk chilling centre, 5000
Mukkom suggest that the microbial quality
3 Milk chilling centre, 15000 of the dock supplied milk is
Vadakara
Total 67000 significantly poor. The FSSA rules
do not permit bacterial load
During 2013-14 the above facility beyond certain level. Therefore it is
together chilled and supplied only prudent that Kozhikode
55,400 liter of milk as against the switch over to BMC system of
installed capacity of 67,000 liter, collection from can collection
(83 per cent of installed capacity), sooner than later. Nevertheless
to Dairy Kozhikode. considering that the implementation
of the SIQCMP is in progress and
A large number of DCS in
DCS are yet to come forward to
Kozhikode district, 70 in March
install BMC, additional chilling
2014, are yet to be linked to the
facility is not proposed under the
BMC system of milk procurement
current phase of NPDD in
and chilling and instead supply
Kozhikode district.
milk at the Dairy. Although this is
Table 4.2 Quality Comparison of BMC and Dock Collected Milk

Sl.
Quality Description Values
No.
1 Av. MBRT of BMC collected milk -
115
Minutes
2 Av. MBRT of milk collected at
60
dairy dock - Minutes
3 Av. SPC of BMC collected milk
33 lakh
CFU per ml
4 Av. SPC of dairy dock collected
55 lakh
milk CFU per ml
5 Av. Coliforms of BMC collected
39000
milk CFU per ml
6 Av. Coliforms of BMC collected
45000
milk CFU per ml
108
Kozhikode District
4.5 Milk Processing dairy dock. The internal (home

district) procurement thus
4.5.1 Processing Capacity and
averaged 65,503 LPD during 2013-
Capacity Utilization
14. In addition to home
MRCMPU have two dairies in
procurement, the Milk Chilling
Kozhikode district the Kozhikode
Centre Kottakkal in Malappuram
Dairy and Product Dairy. The 150
district supplied on an average
KL Kozhikode dairy is functioning
3000 LPD and MCP Nilambur
at Kunnamangalam, 15 Km away
supplied yet another 22,700 LPD.
from Kozhikode city. Both the
The dairy outsourced milk during
dairies are ISO: 22000:2005
Vishu and Onam festival periods
certified.
and also during the lean period
The Kozhikode Dairy procured at during 2013-14. The quantity
an average 55,400 liter of milk averaged 4295 LPD. Hence the
from BMCs during 2013-14. In internal procurement from within
addition the nearby seventy DCS the district (65,503 liter),
directly supplied 10,103 liters of procurement from Malappuram
room temperature milk to the district (25,700 LPD) and 4295
KozhikodeProcessingdairy
109
Kozhikode District
from outside state adds up to equipments and civil structure can

95,498 liter LPD. That is be found from table 4.3.
equivalent to 63 per cent of the
For the current level of production
installed capacity. Theoretically
the Kozhikode dairy is self
the Kozhikode Dairy is
sufficient. At present the dairy is
underutilized.
working below par. Malappuram,
the feeder district to Kozhikode
4.5.2 Milk Processing
dairy, soon will have a new dairy,
Infrastructure
and will take off some load from
Kozhikode Dairy
this dairy. The table 4.4 shows the
The Kozhikode Dairy received
equipments suggested under
financial support of Rs 364.86
NPDD 2014-2017.
lakh from central sector schemes
for scaling up its; processing Milk pumps and cream pumps are
capacity. Over the years, utilising proposed for spare to the original
this and other sources the dairy ones. One pouch filling machine is
has added several facilities in also proposed in the light of
structure, equipments and increased sales and to use as spare
machineries. The current status of in case of some maintenance.
110
Kozhikode District
Table 4.3 Kozhikode Dairy Existing Facilities and Equipments

Sl.
Facility/Equipment Unit Quantity
No.
1 Production Block (Carpet Area All Floor.) Area Numbers
1.1 Service block 240 1
1.2 General go-down (including SMP stores) 350 1
1.3 Milk/curd cold storage 260 1
1.4 Butter deep freeze 50 1
1.5 Administration block (Total carpet area ) 220 1
1.6 Tray washing block 160 1
1.7 Effluent treatment plant 600 1
2 Reception Capacity Quantity
3 Processing/Storage Equipment Capacity Quantity
3.6 Vertical milk storage tank 15KLPH 1
3.7 CIP system - Double circuit 20 KLPH 1
3.8 Pasteuriser 10 KLPH 2
4 Fat Handling Capacity Quantity
4.1 Cream storage tank 2000 LTS 2
5 Recombination Capacity Quantity
5.1 Un-insulated tank 1
6 Milk Marketing Capacity Quantity
6.1 Pouch filling machine DHG mechanical 5000 PPH 8
6.2 Pouch filling machine auto SH mechanical 2500 PPH 1
6.4 Pouch crates 10 LTR 10000
7.0 Service Equipment Capacity Quantity
7.1 Refrigeration compressors
(make/model/type/cap.) 30 TR 4
7.2 Motor for refrigeration compressors (KV) 60 HP 4
7.4 Condenser pump 30 KLPH 2
7.5 Air handling unit for cold storage/deep freezer
(make/model/cap) 3 TR 6
7.6 Deep freezer room 6 TR 1
111
Kozhikode District
Sl.
Facility/Equipment Unit Quantity
No.
8 Steam Raising Plant Capacity Quantity
8.2 Water softening plant 2 KLPH 1
9 Compressed Air System Capacity Quantity
91 Air compressors 50 CFM 3
10 Industrial Electrical Capacity Quantity
10.1 DG set 320 KVA 2
11 Water Supply System Capacity Quantity
Table 4.4 Equipments Suggested for Kozhikode Dairy
Total
Machinery/Equipment Specification Cost (Rs
No. Units (Rs)
in Lakh)
1 Milk pump 10 KLPH 4 50000 2
2 SS pipes and fittings Lot 1 500000 5
3 Cream pumps 5 KL 1 300000 3
4 Pouch filling machines 5000 PPH 1 1000000 10
5 Boiler 2 TON 1 3500000 35
6 Refrigeration compressors with
accessories 30 TR 1 3000000 30
7 Deep freezer room 8 TR 1 3500000 35
8 Date coding devices for pouch
filling machines 60 imp/mnt 6 150000 9
9 Pet bottle sterilizer 50 btls/hr 1 3000000 30
10 Heat desiccation units for CPD 300 Kg 1 500000 5
Total 164.00
Date coding machines is proposed bottling and packaging of sterilised

as an accessory to the packing flavoured milk and other heat
machines since as per FSSA desiccated products like peda and
Labelling requirements, clear date Palada mix.
coding in sachets is a necessity.
By considering the sales growth in
Pet bottle steriliser and heat ice cream, we have proposed a
desiccation units are for Products deep freezer room and
dairy in order to improve the compressors in order to handle
112
Kozhikode District
large volumes of ice cream with The liquid milk is directly supplied
out quality deterioration. from the Dairy to the dealers and
the products through the
4.6 Milk Marketing wholesalers. At the close of March
2014 there were 1561 retail outlets
for milk and 51 wholesalers for
Marketing Kozhikode
milk product distribution from
District
Kozhikode Dairy. A well developed
The marketing wing attached to
intending and distribution system
Kozhikode Dairy organizes the
exist. The liquid milk and the
milk marketing activities in
products are sold to the dealers on
Kozhikode district. The Kozhikode
advance payment. Credit facilities
marketing wing is under a
were extended to the dealers on a
Marketing Manger. He is assisted
limited scale. The milk and milk
by a Marketing Organizer who
products sold during 2013-14 is
looks after the supply
shown as table 4.5.
management. A Marketing Asst
looks after the market There is marginal (4 per cent in
development activities. Four Field three years) growth in sales of milk
Staff supervise the filed level while the growth of certain
activities among the retail outlets. products curd, ice cream and ghee
The Kozhikode marketing wing are substantial. The marketing
markets liquid milk and milk area of Kozhikode dairy has been
products made in Kozhikode Dairy recently downsized and re-
and Product dairies. organized under the other dairies
(Wayanad and Palakkad)
4.6.2 Supply Chain consequent to expansion of
The MRCMPU has more or less production, establishment of Milk
similar supply chain in all the Depots and to economize the
districts. The milk and the milk supply routes and that makes the
products reach the consumers growth in milk sales under
from the processing units through Kozhikode dairy look smaller.
the retailers designated as dealers.
113
Kozhikode District
Table 4.5 Progress of Milk and Milk Products sale in Kozhikode District
Milk/Product 2009-10* 2013-14
Liquid milk (LPD) 88692 92246

Curd (Liter/day) 9362 14060
Ghee (Kg/month) 43161 41069
Ice cream (Liter/month) 3840 15014
Butter milk (200 ml Pkts./day) 3696 11755
Mik peda (Kg/month) 2502 4591
Sip up (Pkts./month) 213924 147785
Palada (Kg/month) 304 985
Milma plus (Bottles/month) 7309 26828
* Previous bench mark
4.6.3 Milk Marketing in Kozhikode district was 1.26
Infrastructure Current LLPD (Milma 1.10 plus 0.16 of the
Status competitors). The sales of
The table 4.6 shows the various
support equipments and other
accuracy cannot be vouched. The
logistics available in Kozhikode
sales pertain mostly to the urban
district for market promotion. The
area and therefore the rural
available infrastructure is in full
consumption is extra.
use.
Yet another way of calculating the
4.6.4 Market Size and Market market is by understanding the
Share of MRCMPU end user purchases. The sample
Market size is the measurement of survey conducted by the study
the total volume of a given market. group shows that the per capita
Market size calculated on a consumption among rural people
standard practice/competitive is 82 ml and urban 95 ml. The
sales approach (bottom up market size is calculated as shown
approach) shows that the market in table 4.7.
for liquid milk in 2013-14 period
114
Kozhikode District
Table 4.6 Existing Marketing Infrastructure Kozhikode District March 2014

Sl.
Particulars Quantity
No.
10 PUF box 100 ltr. (No.) 278
11 PUF box 150 ltr. (No.) 81
12 PUF box 25 ltr. (No.) 148
13 PUF box 460 ltr. (No.) 11
18 500 ltr. freezer for dairy (No.) 15
20 Deep freezer 320 ltr. (Glass top) (No.) 102
21 Visi-cooler 220 ltr. (No.) 180
Table 4.7 Estimation of Market Size and Market Share of Milma in

Kozhikode District 2014
Sl.
Parameter Rural Urban Total
No.
1 Population Kozhikode district 1013721 2072572 3086293
2 Cattle holdings % 18
4 Proportion of people consuming milk in
Kozhikode district- as per HH survey (%) 82 95
6 Per capita consumption HH survey 108 157
7 Household demand LPD (5 x 6/1000) 73616 309124 382740
8 Inst. demand (20% of urban demand) 0 61825 61825
9 Total demand (7+8) 73616 370949 444565
Supply demand gap 2013-14 LLPD 3.25
115
Kozhikode District
The total estimated market in perpetual threat from the private

Kozhikode district is huge, 4.45 dealers. The institutional segment
LLPD while the MRCMPU is largely within the hands of
marketed 1.1 LLPD and their private traders. Because of falling
competitors 18,000 LPD adding up milk production in rural areas the
to 1.3 LLPD leaving a gap of 3.15 market for milk and milk products
LLPD. The survey also showed that is vertically expanding. Also the
few, about 20 per cent, of market analysis shows that there
Kozhikode population continues to is wide gap in supply demand
consume milk powder. The market position. At the same time milk
share of Milma is just 25 per cent production is livelihood intensive
of the market size. The entire to a vast majority of marginal and
institutional segment is with the sub marginal farmers in Kozhikode
private dealers from within and district who largely depend on
outside the state. The market Milma to market their milk. To
situation in Kozhikode suggests take advantage of these favorable
that the marketing strategies must factors and to safeguard the
be geared up to improve the interest of the milk producers in
market coverage in Kozhikode the district further expansion of
district. marketing outlets and developing
an aggressive marketing strategy is
4.6.5 Key Issues and essential to protect the interest of
Recommendations the milk producers in the district
The crux of the issues in for which the components
Kozhikode district is that the suggested are shown as table 4.8.
market coverage by Milma appears
The table is more or less self
to be very low. One of the reasons
explanatory. Few deserving special
is marketing infrastructure in
mention are explained below.
Kozhikode district is inadequate to
meet the growing demand and to a. Milk Parlors
counter their competitors. The The milk parlors will be positioned
Kozhikode district is under the in strategic positions to attract
116
Kozhikode District
Table 4.8 Additional Marketing Infrastructure Suggested for Kozhikode

District
Total
No. of Unit
1 Depot/Parlor Cost (Rs
Units Cost (Rs)
in Lakh)
1.2 Shoppe support 6 500000 30.00
1.3 Space in super market 18 20000 3.60
2 Marketing Infrastructure for
Preserving/Maintaining Quality
of Milk
2.2 PUF box 25 - 460 ltr. 250 LS 11.00
2.3 Shipper box for ice-cream 30 6000 1.80
2.5 200 liter freezers glass top for
dealers 90 17000 15.30
2.6 120 LTR freezer 120 11000 13.20
2.8 Deep freezer 320 ltr. 90 17000 15.30
2.9 Deep freezer 320 ltr. (Glass top) 120 20000 24.00
2.10 Visi-cooler 220 ltr. 90 20000 18.00
2.11 Visi-cooler 320 ltr. 90 30000 27.00
3 Awareness Programme for
Consumers
3.1 Consumer awareness Programme &
Publicity materials (Stand board,
POP material, banners, etc.) LS 161.00
3.2 Freezer subsidy 15 5000 0.75
3.3 Refrigerator subsidy 15 3000 0.45
Support for milk stockists 11 200000 22.00
subsidy 18 100000 18.00
Total 393.40
more consumers to Milma will be served milk and milk

products. Apart from selling the products in a consumer friendly
Milma products they also will act environment. All the parlors
as a media to improve the visibility started during Phase I IDDP are
of milk and milk products. Buyers functioning well and they provide
117
Kozhikode District
the necessary stimulus for higher c. PUF Bodies

sales of Milma milk and milk Among the various marketing
products in the district. Therefore infrastructures provided under the
10 more parlors are suggested to CSS, the introduction of PUF
be established in the district. insulated vehicles in milk
distribution routes and PUF boxes
b. Milma Shoppe
in the retail outlets are worth
The Milma Shoppe in towns can be
mentioning. With the addition of
the PUF containers under the
milk parlors to increase the
IDDP scheme during the yester
visibility of the products and to
years, the entire milk transport
increase the sales. Improving the
from Kozhikode dairy has been
visibility of Milma milk and
switched over to PUF insulated
products is important to scale up
vehicles. The PUF boxes of varying
its business. Improving the
sizes, 50-150 liter provided at 50
business is very crucial to sustain
per cent subsidy in the retail
the milk production and the
outlets together with the PUF
bodied transport vehicle ensure
perfect end-to-end cold chain and
under the hard conditions of
quality assurance dairy to
Kozhikode district. Keeping this in
consumer. Three more PUF body is
mind, MRCMPU started Milma
suggested as standby for
Shoppe in Kozhikode district.
replacement of old and
Shoppe works as a brand shop of
unserviceable ones and to operate
Milma with all Milma products
new routes.
available at the outlet and it works
round the clock. It has won the d. PUF Boxes/Visi-Coolers
appreciation of one and all and is MRCMPU have effectively
found to be an effective tool to demonstrated that PUF Boxes is
publicize its products. It is the most suited and the cheapest
suggested that three more shops method to keep the cold chain
shall be started in towns during uninterrupted from the point of
the project period. origin to the point of consumption.
118
Kozhikode District
Freezers are uneconomical to the Union is around 24 per cent

preserve milk. The PUF boxes and is very crucial in its financial
supplied under the IDDP/SIQCMP security and liquidity. Among all
are doing good service to this end. the products, ice cream is the
Our field exposure visits revealed most promising one. Unfortunately
that the retailers wholeheartedly Milma now has only less than 5
welcome the PUF boxes because per cent market share in the ice
they are viable alternatives for the cream segment. The major hurdle
energy consuming freezers. They identified against the market
occupy less space, are easily expansion in Kozhikode district is
movable and are easy to clean. The the absence of user friendly and
boxes retain the cold for about 3-4 energy saving freezers at retail
hours during which the milk is points. During IDDP Phase I,
generally sold out. It is proposed SIQCMP the Milk Union invested
that all retailers shall be provided for retailer level freezers and as a
with new or additional PUF boxes result the sales of ice cream have
to achieve 100 per cent cold chain increased from 3840 liter/month
maintenance. in 2010-11 to 15,014/month in
2013-14. Yet there is much more
Visi-coolers are excellent
to be achieved. A three pronged
equipment to keep the cold of
market intervention appoint
products like flavored milk. Hence
more whole sale dealers, equip all
they (the PUF boxes and Visi-
retail points with suitable size
coolers) are suggested as part of
freezers and wide publicity
market promotion.
through TV channels is suggested.
e. Freezers for Ice Cream The freezers of varying sizes are
Promotion additionally required. In addition
MRCMPU LTD is selling products canopy fitted vehicles are
like ghee, curd, Butter milk, Milk recommended for special sales in
Peda, Palada Mix, Flavored milk tourist spots and prominent on
and ice cream. The share of milk road places (table 4.8).
products in the total turnover of
119
Kozhikode District
f. Consumer Awareness and in to the fold of Milma. An

Publicity aggressive consumer education
Consumer awareness camps are cum advertisement program
being held and dairy visits through all channels of media
organized to explain the chain of shall be launched in Kozhikode
activities involved in milk district to serve two purposes
procurement from farmers to sales awareness creation among all
from retail outlets. The consumers sections of people and market
get an opportunity to gather first promotion - as a tool for socio
hand information on quality economic improvement for which
assurance followed at various an amount of Rs 161 lakh is
stages of milk reception, suggested.
processing and marketing.
Advertisement boards and banners 4.7 Milk Procurement
are exhibited in busy places for the
publicity of the milk and milk
Procurement
products. The awareness activities
are scale inadequate and are not
functions of MRCMPU. The milk
reaching a large segment of public
procurement in Kozhikode district
particularly those in rural areas.
is looked after by the P&I Unit
Also the Kozhikode district is
functioning at Peringolam
facing fierce competition from
Kozhikode. The Unit has
private dealers, from within and
established a network of village
outside the state. Sustaining and
level DCS in the district to procure
further developing the market is
milk from dairy farmers. The
crucial to the very sustenance of
organization of milk procurement
dairy production in the district.
is explained as fig. 4.3.
Hence it is suggested that the
consumer awareness programs The BMC DCS chill the milk
should cross the usual styles and collected in the society and the
enter into newer frontiers to milk brought from Cluster DCS
attract more and more consumers before transporting to Kozhikode
120
Kozhikode District
Fig. 4.3 Organization of Milk Procurement in Kozhikode District
Milk
Producers
BMC DCS Cluster Non BMC DCS

(23) DCS (151) (201)
(50)
KKD DAIRY
Cluster DCS: DCS attached to BMC for milk supply; KKD: Kozhikode
Figures in brackets - No. of DC
dairy in insulated road tankers. (APCOS). They are producer

The Dairy in turn process and cooperatives managed by a
market the milk in towns and democratically elected Board of
other urban agglomerations within Directors. At the close of March
and outside the district. The whole 2014 the district had 222 of them
chain of activities - procurement, as functional APCOS. In addition
processing and marketing - is well there were seven non-APCOS
orchestrated and well executed. directly under the department
of Dairy Development.
4.7.2 Profile of DCS in
The table 4.9 shows the profile of
Kozhikode District
the DCS in Kozhikode district.
A majority of the DCSs in
From among the 78,973 registered
Kozhikode district are Anand
Pattern Cooperative Societies
121
Kozhikode District
Table 4.9 Profile of DCS Kozhikode District 2013-14

Sl.
No.
3 Av. number of suppliers/DCS 81.6 (18112)
4 Milk procured by DCS from farmers (LPD) 84204
7 Milk procured by DCS from farmers /DCS (LPD) 379.29
10 Av. price - local sales (Rs/liter)
16 No. of DCS making one time milk collection from farmers NA
17 Av. fat% 3.87
18 Av. SNF% 8.29
19 No. of BMC DCS (31-3-2014) 21
20 No. of BMCs 23
22 Av. collection through BMC in KKD. district (LPD) 55400
33 No. of DCS having adequate water supply arrangements 108
35 No. of DCS having Electricity 170
122
Kozhikode District
milk producers in the district at an Out of the 222 DCS, 50 DCS

average 18,112 (23%) alone poured (average) supplied milk direct to
milk during 2013-14. The low dairy during 2013-14. All others
proportion is due to that the non- supplied milk to the BMC DCS or
producers are not removed from Cluster DCS. Seventy eight DCS,
the DCS roll because cumbersome 35 per cent of total DCS, only
statutory procedures. The average functions in own building. Others
procurement per DCS was 379.29 are in rented buildings. One
LPD and per supplier 4.64 LPD hundred and seventy (76%)
during 2013-14. The local sale, have electricity and water
18,701 LPD, account for 21 per arrangements. The absence of own
cent of the daily procurement building, lack of electricity and
indicating falling milk production adequate water is identified to be
and increasing demand in local one of the major constraints in
area. The rate of procurement per maintaining good hygiene
DCS is reasonable in comparison standards of milk.
to other districts in Kerala.
Unlike in other districts of
However the DCS classified
Malabar, 43 per cent of DCS alone
according to the daily procurement
possess AMCU. Large numbers off
shows that 4 per cent were
DCS employ EMT and LR for
collecting less than 100 LPD and
quality determination.
yet another 25 per cent between
100 and 200 LPD. The study
4.7.3 Coverage
shows that those DCS are not
The Kozhikode district has 1378
economically viable. The reasons
Panchayat wards of which almost
for poor procurement rate are that
95 per cent are under the milk
they are not in ideal location, non-
procurement coverage, the recent
potential suppliers are inducted as
survey shows. Only the 5 per cent
members and the farmers have
of the left out wards have the
other option for selling milk. The
potential for starting new DCS. It
relocation of those DCS needs to
is assessed.
be considered.
123
Kozhikode District
4.7.4 Milk Quality and Quality quality assessment namely

Administration among DCS conventional milk testing (Gerbers
test for fat and LR for SNF
The MRCMPU follows two axis
determination), Milk-O-tester for
pricing ie, farmers are paid on the
fat and LR for SNF and Automatic
basis milk fat and SNF in the milk.
Milk Collection Units (AMCU) for
The village cooperatives are
quality and price determination.
equipped to determine the
The AMCU is the most desirable
compositional quality, fat and
because it is convenient, error
SNF. Few DCS are also equipped
proof, quick and transparent. The
to detect added preservatives,
table 4.10 shows that 96 out of
adulterants and neutralizers apart
224 APCOS possess AMCU.
from MBRT estimations.
Although all the majority of DCS
The quality assessment in DCS is
use AMCU for quality
crucial in determining the milk
determination very few DCS use
price for the farmer, in winning
the auto analyzer (one of the
their confidence and overall
instruments of AMCU) reportedly
sustenance of dairy production.
due to the reason that they are
The different cooperatives in
slow to test. Some of units are
Kozhikode district follow either of
also reported to be erratic in fat
the three known procedures of
Table 4.10 Kozhikode District Milk Quality (average) 2013-14
Parameter Value
Fat % APCOS 3.87
Fat % non-APCOS NA
SNF % APCOS 8.29
SNF % non-APCOS NA
Av. MBR time direct DCS (Mts 60
121
tester & LR
No. of APCOS using/supplied Gerbers
135
test & LR
124
Kozhikode District
and SNF estimation while some 8.29 per cent SNF which is
others have inconsistent results. lower than in other districts of
The inappropriate performing of Malabar. Farmer education and
the analyzers cause hardships to introduction of AMCU can further
the farmers and DCS and the DCS improve the quality. The MBRT of
have discontinued its usage. Few milk supplied through BMC DCS
have changed the configuration of averages 115 minutes (tested in
the AMCU by substituting EMT Kozhikode Dairy). In the years to
instead of analyzer. But EMT can come both compositional and
test only fat and not SNF for which bacterial quality will have a telling
again lactometer must be influence on the marketability of
depended thus partially defeating milk. The best way to usher in
the purpose of AMCU, the microbial quality is to pay for
automation, transparency in milk bacterial quality also. It is
collection and instant print out to suggested that an incentive for
farmers. AMCUs are excellent good microbial quality may be
gadgets to ensure transparency in introduced as a beginning towards
milk procurement in village DCS. this end.
It avoids the hassles of quality
checking, volume measurement 4.7.5 Key Issues and
and payment of milk price. Hence Suggestions
we are of the opinion that the Under the IDDP and SIQCMP
analyzers need to be re-introduced schemes an amount of Rs 376.75
after rectifying the practical issues has been invested for procurement
in consultation with the activities ranging from BMC to
manufacturers and suppliers. milking vessels and capacity
Almost all BMC DCS possess the building of farmers and elected
equipments for MBRT estimation. members in Kozhikode district.
But not all of them have started The IDDP support is available for
using. two more years (2014-15 and
2015-16). Therefore the support
About the quality, the procured
suggested for milk procurement
milk has 3.87 per cent fat, and
125
Kozhikode District
under the NPDD is meant to issue. Therefore it is suggested to

stabilize and carry forward the include provision for subsidizing
achievements already made. The new DCS building at the rate of Rs
suggested components and the one lakh per DCS. Eighteen DCS
estimated cost can be found from are identified to have the land and
table 4.11. financial capacity to do this during
the project period.
a. Buildings
As pointed out in the forgoing b. Water Supply System
sections a sizeable number of DCS Developing water source and water
function in rented buildings. Most supply is becoming increasingly
of them do not have the minimum important in Kozhikode district.
facilities for hassle free milk Most of the DCS find it difficult to
collection and dispatch. BMC mobilize adequate capital for
installation is virtually impossible investment. Hence a subsidy of
and effluent disposal is a serious rupees sixty thousand per unit is
Table 4.11 Milk Procurement Activities Suggested under NPDD Kozhikode

District
Total
Sl. No. of Unit
Component Unit Cost (Rs
No. Units Cost (Rs)
in Lakh)
1500
sq.ft.
2 Water supply system No. 10 60000 6.00
3 Bore well No. 10 25000 2.50
4 Open well No. 15 10000 1.50
5 Working capital assistance No. 3 30000 0.90
6 Aluminium cans No. 300 2500 7.5
7 Electronic milk tester No. 4 15000 0.6
8 Electric centrifuge No. 8 2500 0.2
9 Weighing scale No. 3 15000 0.45
10 Hand held billing device No. 8 10000 0.8
12 Subsidy to milk transport KG 370000 0.5 1.85
13 Subsidy to cattle feed transport MT 43000 400 172
14 Incentive to better quality milk LPD 1800 0.5 9.85
Total 224.55
126
Kozhikode District
suggested for ten numbers at an d. Incentives for Good Quality

estimated cost of 6.0 lakh. Water Milk
harvesting, installing water tanks Consequent to the implementation
and pumping facilities are of SIQCMP the bacterial load of
envisaged. In addition digging ten raw milk has been reduced
bore wells at the rate of rupees significantly. The low bacterial
twenty five thousand per unit and count improves the quality
fifteen open wells at the rate of especially the organoleptic
rupees ten thousand per unit are properties (taste and flavor) of the
also suggested for Kozhikode milk apart from heat stability and
district. longer shelf life. The farmers are
not compensated for their extra
c. Subsidy for Cattle Feed
effort to reduce good quality milk.
Transport
As a beginning it is proposed that
the top 2 per cent of the milk may
be paid an incentive of Re 0.50
wholeheartedly welcome the
per liter of milk. The estimated
arrangement because of the
daily procurement is 90,000 LPD
convenience, easy access and
and the incentives at the
credit facility. The transport of
suggested rate works out to Rs
cattle feed from producer
9.85 lakh in three years.
companies to the DCS entails cost.
It is suggested to subsidize the
4.8 Cattle Shed and Farm
transport cost. The estimated
Machineries
quantity sold in Kozhikode
Well constructed cattle sheds are a
district comes to 43,000 MT in
pre-requisite for clean milk
three years. An amount of Rs
production. A dirty cattle shed
0.4/kg is the average transport
contributes substantially towards
cost. The total for three years
external contamination of milk and
works out to Rs 172 lakh. The
entry of microbes in to the udder
amount may be provided as
causing sub-clinical/clinical
subsidy so that the price of cattle
mastitis. A well constructed cattle
feed can be kept low.
127
Kozhikode District
Table 4.12 Farm Equipments past 289 cattle sheds were funded
Supplied to Farmers in Kozhikode under the IDDP/SIQCMP schemes.
District During the course of the field work
Sl. we found that the floor of cattle
Item Quantity
No.
sheds are well made using the
2 Milking machines 64 allotted fund. However,
3 Rubber mats 1275 construction of new cattle sheds is
4 Pressure washers 112 very expensive in Kerala due to the
5 Gen sets 10
high labor cost and the cost of
6 Cow drinker 72
7 Chaff cutter - Motorised 12 materials. The budget provision of
Rs 10,000/- is thoroughly
shed should also provide inadequate and will not meet even
operational easiness and animal 10 per cent of the overall cost.
comfort. Most of the cattle sheds Therefore, it would be more
are a mere make shift shelter with sensible if the support could be
mud/wood floor, tile/asbestos/ extended for renovation and
PVC/Silpaulin roof, dark and modification of the cattle sheds
musky, all in one floor (no urine or with watering facility rather than
dung channel) and without any insisting for a new cattle shed. The
watering arrangements. The cows numbers suggested are given as
remain in this shelter most of the table 4.13.
time (no grazing). The hind
On the face of shrinking family
quarters and the udder often
size, changing status of women in
remain soiled by dung and mud.
the society, opportunities for
Udder and teat injury is common.
employment in other sectors of the
Feeding of water is only
economy the availability of labor
occasional. Considering the
importance of god cattle sheds, the
Milk Union roped in funds for
is uncommon in Kozhikode
cattle shed modifications and
district. Hence reducing the labor
making new cattle sheds under the
for cattle keeping and making the
IDDP and SIQCMP schemes. In the
daily chores less arduous is
128
Kozhikode District
Table 4.13 Cattle Sheds and Farm Machineries Suggested under NPDD for
Kozhikode District
Total Cost
No. of Unit
A Cattle Shed (Rs in
Units Cost (Rs)
Lakh)
1 Strengthening of old
sheds/constructing new 150 15000 22.5
B Cattle Farm
Mechanization
3 Gen set 30 75000 22.5
5 Rubber mats 800 2500 20.00
Total (4.0) 81.25
crucial for the very sustenance of major obstacle for the new
dairy farming. Considering the entrants to enter in to the cattle
economic and social significance of farming. To overcome this issue,
dairying, the MRCMPU has the cattle induction has been
initiated providing financial resorted by several development
support for farm mechanization. agencies in the state as a support
The Union has been providing and scheme. The MRCMPU too
channeling support since few distributed 900 heifers to 180
years. However only few farmers farmers in Kozhikode district to
could be funded so far and many promote cattle rearing.
more are on the queue. It is
The cattle keeping in the district is
suggested that the assistance may
a job of economically weaker
be continued and funded under
sections of people (BPL families)
NPBBDD. The components
and women. It continues to be a
suggested, quantity and the
major source of securing daily
estimated cost can be found from
livelihood to them especially
the table 4.13.
women. Therefore the following
number of cattle (table 4.14) is
4.9 Cattle Induction
recommended to be supported
The lack of easy access to bank
under NPDD.
loan at low interest remains as a
129
Kozhikode District
Table 4.14 Cattle Induction Program Suggested under NPDD

Kozhikode District
Total
Cattle Induction Cost (Rs
No. Units (Rs)
in Lakh)
animals 240 2000 4.80
Total 92.55
Only the BPL families will be IDDP and SIQCMP schemes for
included for cattle induction upgrading the Kozhikode dairy lab.
activity. The lab has facilities including
Fifty percent of cows and fifty equipments for routine tests.
percent of heifers are reserved However the equipments and
for women. activities shown in table 4.15 are
Women members will be required to be added in Kozhikode
allowed 75 per cent of price dairy for the following reasons.
6. As part of modernizing the
hygienic systems in the dairy
Transportation cost shall be
automatic data capturing
met in full under the scheme.
system, software for easy
Seventy five percent of
monitoring of FSMs and a
insurance amount shall be
high capacity pressure jet is
included under the scheme
proposed in the Project.
and the balance as
beneficiary contribution. 7. The Kozhikode dairy is
already ISO: 22000 certified
dairy by DNV. The
recertification and
Laboratory in
surveillance audits and
Kozhikode Dairy
certain equipments and
software for the maintenance
been invested under phase I&II of
130
Kozhikode District
Table 4.15 Establishment of Laboratories in Kozhikode District under NPDD

Total
Sl. No. of Unit
Establishment Laboratories Cost (Rs
No. Units Cost (Rs)
in Lakh)
A Capital Expenditure
1 Central milk testing lab 1 LS 20.00
3 System for quality assurance
(HACCP/ISO) including equipment/
computer hardware and software, etc. 0 0.00
1 Accreditation and certification of dairy
establishments under HACCP/ISO 1 500000 5.00
Total 32
of these systems are to be be conducted in the

acquired. The amount organization to evaluate the
suggested is towards this end. food safety system. A lot of
Hygiene systems, trainings,
8. Certification audits and
and other capital investments
subsequent yearly survival
are needed for the above
audits by the officials from
process.
the accreditation body are to
Laboratory Kozhikode
131
Kozhikode District
9. In the light of stringent food products can be tested

safety laws like Food Safety monthly. Internal regulatory
and Standards Act, 2011 and action can also be taken in
increasing awareness of the instances of non-compliance
consumers about food safety with quality standards. This
and consumer rights, it is lab can also examine
very essential that the consumer complaints
organization acquires FSMS regarding quality of dairy
Certification for the entire products. Farms and
units for supplying safe processing plant water
products with consistent supplies can be screened for
quality. coliform bacteria. The
processing and cooling water
10. The MRCMPU is upgrading
in the dairy processing plants
the Kozhikode dairy lab as
are required to be tested in
Central Milk Testing Lab for
monthly basis, which can be
the union, with modern
carried out in the proposed
testing facilities so that the
lab. The Central Dairy lab
dairies in the all the six
assists in ensuring all dairy
districts can do the costly
products produced in the
analysis of their milk samples
units meet the high quality
in a central point. At present
standards that the
the samples for antibiotic,
consumers expect from
pesticide residues are
MILMA.
analysed in the outside
approved labs. The lab once
completed can undertake 4.11 Clean Milk Production
analysis like bacterial Under the CMP scheme the
enumeration, screening for MRCMPU supplied the following
pesticide and antibiotic articles to the farmers in
residues, etc and more. Both Kozhikode district (Table 4.16).
raw milk and finished
132
Kozhikode District
Table 4.16 CMP Kits Supplied under SIQCMP Scheme in Kozhikode

District
Sl. Financial
Article Physical
No. (Rs in Lakh)
1 Detergents & chemicals to DCS/farmers lot 12.92
2 Stainless steel utensils to beneficiaries lot 53.41
The distribution of detergents and and they whole heartedly welcome

chemicals to farmers had little the component. These utensils
impact on clean milk production. facilitate to improve the initial
In practice the farmers discontinue quality of milk. Only few farmers
the use of chemicals and in the district are the beneficiaries
disinfectants once the free supply of this component and many more
is stopped. Hence the supply of are on the queue. Therefore the
free detergent/chemicals for utensils and vessels may be
udder/utensil cleaning is not supplied through the DCS free of
recommended. cost under the NPDD to those
farmers who are yet to receive
The stainless steel utensils (the
them. The numbers suggested and
milking utensils and carrying
the financial requirements are
vessels) are of use to the farmers
given as table 4.17.
Table 4.17 CMP Kits and Milking Machines Suggested for Kozhikode
District under NPDD
Total
Sl. No. of Unit
Component Cost (Rs
No. Units Cost (Rs)
in Lakh)
1500 400 6.0
accessories
machine & other equipments for
20 55000 11.0
hygienic milk handling at
village/farmer level
Total (7.0) 17.25
133
Kozhikode District
Milking machines are relevant in participating farmer members. The

todays context as the family labor TIS was a major component under
for farmstead jobs are steadily the IDDP and SIQCMP schemes
declining. Our field exposure visits earlier implemented in the district.
shows that almost all the The major components, financial
beneficiary farmers of earlier and physical attainments in
schemes carry out machine Kozhikode district can be found
milking although continuous from table 4.18.
service back up is essential. It is
Those services are under the state
suggested that twenty farm owners
owning five or more milking cows
have a variety of schemes for
shall be supplied milking
supporting those activities. The
machines at subsidized (75%) rate
efficacy of AI and health care
under NPDD. It is also suggested
services at farm points, however,
that fifty hand operated machines
are debatable, the HH survey
shall be supplied to the needy
shows. Since some of those
farmers after making a scientific
services are in the state domains,
and methodical field trial in
a change in the service delivery
association with KVASU.
systems requires policy decisions.
To avoid duplication, such services
(AI, health care, home stead fodder
(TIS)
production, etc.) are not suggested
The technical input services include
to be included under the NPDD.
support for animal breeding, health
The components suggested, the
care and prophylaxis, fodder
most essential ones, on a priority
development and other associated
basis can be found in table 4.19.
activities for the benefit of
Table 4.18 Technical Input Services Achievements in Kozhikode District

under Earlier Schemes
Financial
Physical Union/
Component IDDP/ Total
Achievement Beneficiary
SIQCMP
Technical input
Lot 41.4 17.65 59.05
services
134
Kozhikode District
Table 4.19 Technical Input Services Suggested in Kozhikode District under

NPDD
Total
Component Cost (Rs
No. Units (Rs)
in Lakh)
1 Liquid nitrogen containers 6 0
input camps 180 5000 25.00
4 Chaff cutter 36 20000 7.20
5 Commercial fodder
production 10 100000 10.00
Total 44.2
The LN containers are for program in Kerala. The reasons are

replacement of the ones in use. As many, the most important being
this component is covered under the land fragmentation and the
the NPBB separate provision is not declining farming activities. On the
suggested. The animal health and other hand large land holdings and
breeding input camps include a fallow land are potential source for
pilot program for fertility fodder production fodder as a
management of dairy cows among value added crop in irrigated land.
farmers. The program envisages The fodder so produced shall be
identification of infertile cows, marketed among the DCS members
providing management and at cost price. The scheme shall be a
veterinary support to correct flagship program of NPDD.
reproductive problems if any,
documenting the information for 4.13 Information and
adoption elsewhere. It is a DCS Communication
based program centrally controlled Technology Networking
and monitored from HO of
MRCMPU. The MRCMPU apart from being a
The conventional homestead fodder
multi crore business concern. Its
production is a tried and failed
135
Kozhikode District
widely distributed. The application shared between the district

and full utilization of information projects. The share of Kozhikode
and communication technology district is illustrated as table 4.20.
alone will enable the MRCMPU to
modernize their units and keep 4.14 Manpower Development
abreast with their competitors. It
is also essential that the whole
business of MRCMPU is
transparent to their stakeholders,
the dairy farmers. Unfortunately
the Milk Union is in the infant
reduction, energy conservation
stage in exploiting the benefits of
and product improvement in
I&C technology.
MRCMPU. Apart from the Union
The current status is that the employees, the staff and elected
dairies are computerized and members of the DCS and the
internally networked (intranet). Board are also trained on
Few DCS are also computerized appropriate subjects. The table
but not networked. The milk 4.21 shows the numbers trained in
Union proposes to expand the I&C various categories from Kozhikode
so that the system will function as district.
a client server architecture

The DCS staff has been trained at
network with Six centers at each
the HRD centre, Kozhikode under
district (Palakkad, Malappuram,
MRCMPU on the relevant subjects.
Kozhikode, Wayanad, Kannur,
The trainers included those from
Kasaragod) and a central server
within the organization and also
system linking all these six
invited from other organizations.
centers. The data and information
The duration ranged from one to
will be made available to all the
three days and the subjects
districts and DCS. The details of
handled were those relevant to the
the proposed system are given as
concerned groups.
annex-1. The expenditure is to be
136
Kozhikode District

Kozhikode District
Unit Rate Amt.
Sl.
Components (Rs in Units (Rs in
No.
Lakh) Lakh)
Capital Expenditure
1 Purchase of Computer/HHB
1.1 Desktop 0.50 14 7.00
1.2 Laptop & Netbook 0.60 11 6.60
1.3 Hand held range of computers 0.30 30 9.00
2 Purchase of Servers
2.1 Rack server 9.00 1 9.00
2.2 42 U server rack 1.00 1 1.00
2.3 Server storage device 8.00 1 8.00
2.4 Tape backup 8.00 1 8.00
2.5 UPS for server 7.00 2 14.00
3 Purchase/Installation of Software Systems
3.1 Weblogic server suite purchase 15.00 1 15.00
3.2 Oracle database 12C 15.00 1 15.00
3.3 Antivirus software 1.00 1 1.00
3.4 Software consultation charges (AMC) 5.00 1 5.00
3.5 Onsite software analysis and evaluation for
Union and DCS purchase 5.00 1 5.00
3.6 Software purchase & up-gradation charges 30.00 1 30.00
3.7 Leased line communication cost 10.00 1 10.00
Total 143.60
Table 4.21 Employees and Elected Members Trained from

Kozhikode District
Number of
Sl.
No.
Trained
1 C D Program
c FIP - Local farmers attended 1176
d Management orientation (MCMOP) 73
3 Training of DCS Secretary 179
4 Training of DCS Employees 140
5 Training on AI 20
6 Training of farmers on GMP/ GHP 3513
8 FIP 346
137
Kozhikode District
The CD program includes training 4.14.1 Key Issues and

in village cooperatives followed by Suggestions
a visit to processing Dairy/cattle 7. Future training especially
feed plant. Farmers are the those for the middle level
trainees. The farmers Induction employees starting from
program is normally carried out in Supervisors should be hand
the HRD Centre Kozhikode. The on training exclusively on
Dairy Animal Management subjects and skills relevant to
Training to the farmers has been them.
under taken in APCOS DCS. The 8. Farmers training should be

training included lectures by organized in villages itself
experts and visit to a few well run with the support of LSG and
farms. The farmers were given Village Extension Workers
opportunities to see for themselves under MRCMPU.
the success and failure stories. 9. All out and comprehensive

The training for MRCMPU
employees is arranged by the Head
Office in the institutions of repute
in India, both inside and outside
the state. An interaction with a
be initiated on a project mode
test group showed that the
and results closely watched
trainings were partially useful for
and monitored.
upgrading their skill and
10. The Dairy Managers,
knowledge.
Production Officers and
An amount of Rs 62.16 lakh had Marketing staff should be
been spent for various training exposed to higher levels of
programs in Kozhikode district knowledge on production and
under the IDDP and CMP Phase I marketing management. They
and II. should be provided
138
Kozhikode District
opportunity to visit centers of purchase of SMP, cattle feed,

excellence outside the state. packing materials and other
11. The thrust of capacity expenses. The Dairy has to
building of higher level maintain minimum quantity of
employees should be on finished products at all times to
modern Management ensure uninterrupted sales.
Systems rather than on Minimum quantity of all raw
technical subjects. They materials, consumables packing
should be exposed to what materials, stores and spares, etc.
happens in dairy sector are also required to sustain smooth
elsewhere in the country (eg. processing/production operation.
Schreiber Dynamix) to widen

The working Capital requirement
their vision and outlook.
of the Union is fluctuating
12. The FIP must be gradually throughout the year depending on
phased out. local milk procurement. The milk
The courses suggested and the procurement of the Union
estimated costs are given as table fluctuates between the flush and
4.22. lean season. During Flush

(January to May) the working
4.15 Working Capital capital buffer the timely payment

of milk value to the farmers even
Kozhikode District
The MRCMPU require large amount

towards Working Capital in
Kozhikode district for the payment
of milk value to producers,
Table 4.22 Proposed Training Program under NPDD Kozhikode District

Total
Sl. No. of Unit
Course Unit Cost (Rs
No. Units Cost (Rs)
in Lakh)
1 CD Programme Prog. 15 80000 12.00
2 FIP Person 600 300 8.10
3 Training of DCS/BMC/MCC 0 7.86
4
Training of MRCMPU Person 45 3000 9.40
139
Kozhikode District
employees
5 Institutional skill development Person 45 3000 20.00

Total 57.36
while the money is held up in the The Milk Union does not have the
form of inventory like ghee, adequate cash reserve to meet all
skimmed milk powder, the expenses mentioned above.
consumables, and cattle feed, etc. The Union resorts to soft loans
During lean season union is and over drafts to avoid disruption
procuring milk from other states of milk value payments to farmers
for which payments are made in and to maintain supplies and
advance. During this period services to the DCS. The
sufficient stock of SMP is to be borrowings attract interest which
stored to take care of any possible
in turn limits the farmer
short supply of liquid milk from
beneficiary programs and
outside state.
investments in dairy. In coming
In both, flush and lean, period the years the burden is poised for
Milk Union is supplying cattle feed increase. Hence it is requested
and other inputs to the societies that an amount of Rs 275.0 lakh
on credit basis. Present supply of may be paid as a one-time
cattle feed to societies in assistance towards working capital
Kozhikode district is more than assistance for Kozhikode district.
600 MT per month. The amount suggested is far below

the milk value for 21 days as
The milk value for 21 days in base shown in table 4.23.
year (2013-14) comes to Rs 510.7
lakh at the current rate of
procurement and price. This alone
is expected to grow at 8 per cent
per annum and at the end of
2016-17 will be 643 lakh. In
addition the aforesaid inevitable
payments like that for cattle feed
and consumable are to be made.
140
Table 4.23 The Amount Required to Pay Milk Value for 21 Days in
Kozhikode District
Average Total Milk Total Milk
Milk Procurement (LPD)
Milk Value Value
Days
2013-14 2014- 2015- 2016- Price/liter (Base Year) (EOP)
(Actual) 15 16 17 (Rs) (Lakh) (Lakh)
84200 90936 98211 106068 28.88 21.00 510.66 643.28
5. WAYANAD DISTRICT
Contents

5.4 Milk Chilling Facilities in Wayanad District ................................148
5.5 Milk Processing .........................................................................149
5.6 Milk Marketing ..........................................................................153
5.10 Establishment of Laboratories .................................................176
5.11 Clean Milk Production .............................................................176
5.13 Information and Communication Technology Networking ........179
5.15 Working Capital Wayand District...........................................184
Kozhikode District
Wayanad District
Wayanad
District
142
Kozhikode District
Executive Summary
Wayanad is one of the prominent suggested additions and

dairy districts of Kerala. replacement will cost Rs 55.00
Agriculture is the major lakh.
employment and income provider
The market survey shows that
and cattle rearing are germane to
supply demand gap of milk in
the vast majority of farmers in the
Wayanad district is 24,027 LPD
district. However, recent years
during 2013-14. The market share
have shown that the cattle
of MRCMPU in the liquid milk
numbers have declined by 37 per
segment is low at 22 per cent
cent from 1996 to 2012 and cows
which is not satisfactory. The
in-milk by 32 per cent.
inadequate market infrastructure
Surprisingly, the annual milk
is one of the reasons for the low
production has shown an increase
market share in Wayanad. Hence,
from 83 thousand MT (1997-98) to
an aggressive marketing strategy
114 thousand MT (2011-12).
supported by an adequate
The MRCMPU has a processing infrastructure is required to
dairy at Kalpetta in Wayanad improve the market share of
district. The installed capacity of MRCMPU. Opening of new milk
the dairy is fifty thousand LPD. parlors and Shoppe are suggested
During 2013-14 the Dairy in prominent public places. Wide
processed milk at an average 1.18 publicity through print and visual
LLPD that is 118 per cent above media is also suggested. Periodic
the installed capacity. Hence, there market surveys and R&D on
is an urgent need for expanding consumer preferences (example
the processing capacity of niche products, attractive packing
Wayanad dairy. But considering for flavored milk ice cream, peda,
the expansion works in hand, the etc.) are also suggested. The
major expansion is kept on hold estimated cost of market
and only the unavoidable additions promotion works out to Rs 406.95
are considered now. The lakh.
143
Wayanad District
The MRCMPU has built up an induction program is suggested.

extensive net work of DCS and NABARD norms shall be followed
BMCs for milk procurement from for administering the subsidies.
farmers. All DCS have reasonably The overall expenditure for 240
good milk testing facilities. All animals is estimated to be Rs
BMC DCS have facility for MBRT 92.55 lakh.
estimation. The field level milk
testing, however, requires further
refinement. The major constraints
identified are lack of convenient
buildings for DCS, inadequacy of
will eliminate duplication of
good quality water, incentives for
expense in all the labs. Additional
clean milk production and support
equipments and furniture are also
for cattle feed transport. The
required in Wayanad dairy lab.
suggested procurement activities
The estimated cost is Rs 54.00
in Wayanad district will cost Rs
lakh.
144.73 lakh.
The other farmer beneficiary

The lack of good cattle sheds and
programs suggested are
farm machineries are identified to
distribution of stainless steel
be a major constraint in milk
utensils, milking machines, etc at
production in the district.
a cost of Rs 17.25 lakh.
Strengthening of old cattle sheds,
constructing new cattle sheds and The technical input services
supplying farm machineries and include support for animal
equipments at subsidized prices breeding, health care and
are suggested at a total cost of Rs prophylaxis, fodder development
46.25 lakh. and other associated activities for
In order to motivate and attract
members. The activities suggested
cattle keeping among the below
except those being attended by the
poverty line (BPL) families, and
line departments will cost Rs 46.0
SC/ST communities a cattle
lakh.
144
Wayanad District
The MRCMPU needs to network activity of MRCMPU. Several

the various units and DCS for programs have been running for
effective information sharing and the last few years. It is suggested
communication. The suggested to scale down certain programs.
system is a client server The scaled down programs would
architecture network with six cost Rs 33.45 lakh.
centers one in each district
The Union is often on loan either
(Palakkad, Malappuram, Kozhikode,
to pay the milk price or to meet the
Wayanad, Kannur, Kasaragod) and
daily expense. In order to avoid
a central server system linking all
loans/OD an amount of Rs 443.7
the six centers. The data and
lakh is suggested as Working
information will be made available
Capital.
to all the districts and DCS. The
estimated cost is Rs 149.40 lakh. The suggested programs for
Wayanad shall be summed up as
follows.
Amount
Component
(Rs in Lakh)
Cattle shed and farm machineries 79.50
Constructing laboratories 54.00
CMP kits to farmers 17.25
Technical input services 46.00
Total 1522.53
145
Wayanad District
5.1 General Features provider. About 83 per cent of the

Wayanad district formed on 1st farmers are marginal, 11 per cent
November 1980 is in the mountain small, 5 per cent semi medium
plateau of Western Ghats in and the rest 1 per cent medium
Kerala. It is located in the Nilgiris and large. The paddy cultivation in
biosphere adjoining Tamil Nadu the district has declined over the
and Karnataka states at an years and today much of the
altitude of 700-2100 above MSL. cultivable dry land is under high
The district is surrounded on the value plantation crops; coffee and
east by Nilgiris and Mysore pepper. Dairy farming is germane
districts of Tamil Nadu and to the farming system in Wayanad
Karnataka respectively, on the complementing the crop
north by Coorg district of production and subsisting on the
Karnataka, on the south by natural grass, weeds, residues and
Malappuram and on the west by bye-products of crop production
Kozhikode and Kannur districts of and in turn enriching the soil
Kerala. Wayanad is the smallest through manure and water
district in the state with an area of retention. Wayanad is one of the
2131 sq.km., 5.5 per cent of the very few districts in the state with
total geographical area of the state. some special attributes for dairy
The district is subdivided into production.
three Taluks/blocks, has 25
The Department of Animal
Panchayats, 49 revenue Villages
Husbandry provides the animal
and one Municipality. The district
health and breeding services. The
inhabits 8.17 lakh people with a
department has one District
perfectly well balanced sex ratio of
Veterinary Center, two Veterinary
1:1 (2011 census). The density of
Poly Clinics, one Regional Artificial
population 384/sq.km., against
Insemination Center, six
the state average of 819/sq.km. is
Veterinary Hospitals, seventeen
one of the lowest. Agriculture is Veterinary Dispensaries and
the major contributor to the seventy four ICDP Sub Centers
district economy and employment apart from the District Office
146
Wayanad District
functioning at Kalpetta. The DDD 1996 and 2007 and then made a
provides the dairy extension and marginal gain from 2007 to 2012.
statutory support like auditing of As is evident from the fig. 5.1 both
DCS. The department has the the total and in-milk cows showed
district office at Kalpetta, three similar trend during this period.
dairy extension service units and The total cattle declined by 37.2
one quality control unit. The per cent and cows in milk by 31
MRCMPU has one Dairy Plant of per cent. The in milk buffalo had
50,000 LPD and one P&I unit at mixed fortune. The numbers
Kalpetta and one MCP at sharply declined from 2252 to 248
Mananthavady. The Veterinary between 1996 and 2003 and there
college at Pookkott, apart from after marginally gained between
Veterinary education, also provides 2003 and 2012. Although the
animal health and extension accuracy of the data on cattle
support. numbers is questionable, it is
certain that many dairy farmers in
5.2 Trend in Cattle Population Wayanad district dropped out of
The official statistics show that the dairying after 1996 due to
cattle population in Wayanad economic and other factors.
district declined sharply between
Fig 5.1 Cattle population Wayanad District

140000
120000
100000
N u m b ers
80000
60000
40000
20000
0
1996 2003 2007 2012
Total Cattle 122303 103694 65459 76777
Cows in milk 29453 30659 20289 33100
Buffalo in milk 2252 248 463 1900
147
Wayanad District
5.3 Trend in Milk Production from the MCP at Mananthavadi

from Bovines and the Wayanad Dairy at Kalpetta
According to the ISS estimates (Fig. provide the milk chilling facility in
5.2) the annual milk production in the district. The position of milk
Wayanad district increased from chilling facility in Wayanad during
82.74 thousand MT in 1997-98 to March 2014 is shown as table 5.1.
114.25 thousand MT in 2011-12 in

Since most of the milk collected
spite of an immense fall in the total
from the BMCs in the
cattle population. Although the
Mananthavadi area is being
accuracy of the data is questionable,
transferred to Kannur dairy, the
we have no other option but to
Manathavadi chilling station is
accept the same because no other
now functioning as a pooling
authentic data exists.
station for the chilled milk from
the neighboring BMCs in order to
5.4 Milk Chilling Facilities in
reduce the transportation cost and
Wayanad District
other over heads. Wayanad is the
The BMCs installed in various
only district among all the districts
DCSs of Wayanad district, apart
Fig 5.2 Milk Production from Bovines in

Wayanad district ( source ISS AHD GOK)
120
100
80
M ilk '0 0 0 M T
60
40
20
0
97-98 2001-02 2004-05 2008-09 2011-12
82.74 92.36 71.02 101.43 114.25
148
Wayanad District
in Malabar, collecting chilled milk capacity of 50,000 LPD. This dairy

exclusively through BMCs. Also is located at Chuzhali, about 3 Km
there are only a few cluster DCSs away from Kalpetta town. The
in comparison to other districts. procurement area of the Dairy is
As there is unused installed Wayanad district. The average
capacity among BMCs in Wayanad milk procurement in 2013-14 was
district, the addition of chilling 1,20,900 LPD, 242 per cent of the
capacity during the current phase installed capacity. Out of the
of NPDD is not recommended. 1,20,900 litre of procured milk in

Wayanad Dairy, 1,20,000 litre,
almost 100 per cent was collected
5.5 Milk Processing
through BMCs in chilled form.
5.5.1 Processing Capacity and
Capacity Utilization The major products of Wayanad
Wayanad is one of the frontline Dairy are liquid milk (three
dairy districts in the state. The variants), curd, ghee and butter.
surplus milk from the district is

processed in Wayanad Dairy and 5.5.2 Milk Processing
sold in Wayanad, Kannur, Infrastructure Wayanad
Kozhikode and Malappuram Dairy
districts. The Dairy started AS stated above the Wayanad
functioning in April 2009 with a dairy is one of the show pieces of
Table 5.1 Milk Chilling Facility in Wayanad District March 2014

Sl.
Description Value
No.
2 No. of DCS in which BMCs are positioned (BMC DCS) 32
3 No. of cluster DCS attached to BMCs 14
4 Total installed capacity of BMCs ltr. 1, 81, 000
5 Av. milk collected through BMC 2013-14 LPD 1, 07, 500
7 Av. MBRT of BMC collected milk - Minutes 176
8 Av. SPC of BMC collected milk CFU per ml 302813
9 Av. Coliforms of BMC collected milk CFU per ml 3100
10 No. of milk chilling plants (Mananthavadi) 1
149
Wayanad District
Table 5.2 Details of Investments in Wayanad Dairy after Commissioning

Sl. Amount
Scheme Major Additions
No. (Rs in Lakh)
1 IDDP I & II 167.83 Production and service block

expansion
2 RSVY 738.139 Wayanad dairy expansion +
butter project
MRCMPU. The facilities in Table 5.3 Milk and Milk Products

Wayanad dairy were upgraded Manufactured in Wayanad Dairy
after commissioning utilizing the during 2013-14
funds as shown in table 5.2. Sl. Av. Qty.
Product
No. 2013-14
The Wayanad Dairy is making a 1 Liquid milk LPD 83374
2 Curd Kg PD 15754
variety of products apart from
3 Ghee Kg/month 1079
processing milk. This dairy is the
4 Butter Kg/month 9010
second biggest Profit Centre of (March only)
5 Butter milk 8147
MRCMPU. The processing packets/month
achievements during 2014-15 from 6 Sip up No./month 4193
7 Paneer Kg/month 715
Wayanad Dairy are shown in table
5.3.
150
Wayanad District
In addition to the above standard equipments requiring addition are

products and packing, the dairy shown in table 5.5.
also made Frozen Milk for Cool
Milk pumps and cream pumps are
Bars and Five liter curd and Five
proposed as spare to the original
liter Standard milk (4.5% Fat,
ones since the dairy is handling
8.5% SNF) for bulk consumers
more than its processing capacity.
mainly hotels and institutions.
One pouch filling machine is also

The status of major processing
proposed in the light of increased
equipments can be found in table
sales and to use as spare during
5.4.
maintenance.
The study shows that the
Recently Wayanad dairy has
equipments and the space are
started butter production. In order
adequate for the present level of
to handle butter in large volumes,
activities. All the equipments are
a deep freezer room is essential.
in full use. A few critical
Table 5.4 Wayanad Dairy Existing Facilities and Equipments

Sl.
Facility/Equipment Specification Quantity
No.
1 Production Block (Carpet Area)
1.3 Milk/Curd cold storage 200 1
1.5 Administration block (Total carpet area) 120 1
1.6 Workers amenities block 100 1
2 Reception Capacity Quantity
2.2 Can scrubber (SS 304) 500/hr 2
151
Wayanad District
Sl.
Facility/Equipment Specification Quantity
No.
3 Processing/Storage Equipment Capacity Quantity
3.7 CIP system- Double circuit 20 KLPH 1
4 Fat Handling Capacity Quantity
4.2 Cream storage tank 2000 LTR 3
4.4 Ghee boiler 2000 LTR 1
4.5 Ghee settling tank 3000 LTR 3
4.6 Ghee storage tank 3000 LTR 3
4.9 Cream transfer tank 1000 LTR 2
5 Recombination Capacity Quantity
5.1 Homogeniser 10 KLPH 1
6 Milk Marketing
6.1 Pouch filling machine dhg. mechanical 5000 PPH 8
6.2 Pouch filling machine auto sh. mechanical 2500 PPH 1
6.4 Date coding device for pouch filling
machines 60 IMP/Mnt 10
7 Service Equipment Capacity Quantity
(Make/Model/Type/Cap.) 20 TR 3
8.1 Boiler (Oil/Coal) 1 MT 1
9.2 Industrial electrical
9.3 DG set 250 KVA 2
152
Wayanad District
Table 5.5 Additional Equipments Suggested for Wayanad Dairy under

NPDD (2014-17)
Total
Sl. No. of Unit
Equipments Specification Cost (Rs
No. Units Cost (Rs)
in Lakh)
1 Milk pump 10 KLPH 4 50000 2.00
3 Cream pumps 5 KL 1 300000 3.00
5 Deep freezer room 8 TR 1 3500000 35.00
Total 55.00
5.6 Milk Marketing production and the local market

being limited, depends on the
5.6.1 Introduction
neighboring districts to sell milk.
Milk marketing is one of the major
The Dairy have three depots
functions of MRCMPU. This
(refrigerated Reefers) as shown
chapter provides an overview of
below.
the organization of marketing
activities of MRCMPU in Wayanad 1. Koothuparamb in Kannur
district, the infrastructure District
available, the sales achievements 2. Ulliyeri in Kozhikode District
of liquid milk and milk products 3. Kottackal in Malappuram
during 2013-14, and the key District
issues, problems and Each depot has a refrigerated

recommendations to address reefer managed by a Depot
them. Manager and assisted by two field
staff. The depot receives packed
5.6.2 Organization of Marketing milk from Wayanad dairy in bulk
The milk marketing in Wayanad vehicles capable of transporting
district is looked after by the 12000 liter in one trip. The depots
marketing wing in Wayanad dairy operate supply routes using
headed by an Asst Manager smaller vehicles to link the sales
(Marketing). Wayanad district outlets. This calls for additional
being perpetually surplus in milk effort and extra expense, but is
153
Wayanad District
rewarding. The depot-wise sales awareness build up. To this end,

figures are shown in table 5.6. several programs were carried out.
The amount spent on milk
The Wayanad district faces
marketing in Wayanad on these
constant threat of influx of milk
programs can be seen in table 5.6.
from the neighboring states of
Karnataka and Tamil Nadu where The IDDP phase II is continuing
the procurement and selling prices and will be completed only in
of milk are lower. In addition, 2015-16.
several DCSs in the district make
direct milk marketing locally. 5.6.3 Supply Chain
Hence the marketing of milk from The MRCMPU has more or less
Wayanad district demands extra similar supply chain in all the
care and attention. districts. The milk and the milk
products reach the consumers
Among other factors that would
from the processing units through
help successful milk marketing are
the retailers designated as dealers.
the availability of adequate
The liquid milk is directly supplied
marketing personnel,
from the Dairy to the dealers and
infrastructure, advertisement and
the products through the
publicity. Earlier, the CSS
wholesalers. At the close of March
schemes IDDP and SIQCMP
2014, there were 1517 retail
provided financial support for both
outlets and 21 wholesalers for milk
infra structure creation and
Products and one distributor for
consumer canvassing through
milk in Wayanad district. A well
Table 5.6 Milk Marketing Activities Carried Out in Wayanad District under
CSS
Sl. Amount spent
Scheme Period Major Physical Sectors
No. (Rs in Lakh)
Puff boxes, outlet
Phase
1 IDDP 71.08 renovation, freezers, cold
I &II
storage at towns.
Strengthening of
2 SIQ CMP Phase II 43
marketing infrastructure
154
Wayanad District
developed intending and is much smaller than the off take

distribution system exist. The by the Depots (table 5.7). The
liquid milk and the products are Dairy sends processed milk to
sold to the dealers on advance Koothuparamba depot in Kannur
payment. Credit facilities were district, Ulliyery depot in
extended to the dealers on a Kozhikode District and Nilambur
limited scale. The details of milk and Kottakkal depots in
and milk products sold during Malappuram district in large
2013-14 are shown in table 5.7. trucks. As mentioned in the
forgoing paragraphs, the Depots
The volume of milk and milk
organize re-distribution.
products sold in Wayanad district
Table 5.7 Milk and Milk Products Sold from Wayanad Dairy
Sl. Dairy Total Koothu-

Item Wayanad Kottakkal Ulliyeri
No. Average paramba
1 Milk (LPD) 78378 8327 22636 29265 18151
2 Curd (LPD) 15501 1802 5628 2988 5082
3 Cup curd (Kg) Month 694 75 479 60 80
4 B. milk (LPD) 1559 219 577 472 290
5 Ghee (Kg) Month 28728 20510 1093 2959 4166
6 Peda (Kg) Month 2458 438 831 636 554
7 Milma plus
(Bottles)/Month 6888 1130 2901 766 2092
8 Ice cream (LTRS) Month 10001 2552 2685 2388 2376
9 Butter (KG) Month 2416 836 898 408 274
10 Water (Bottles) Month 3010 1116 537 592 766
11 Sip up (LTRS) Month 2305 973 347 435 550
12 Chocolate (KG) Month 1406 438 305 339 324
13 Dairy whitener (KG)
Month 504 290 178 8 28
14 Mango drink (ltr.) Month 3308 1112 818 635 743
15 Palada mix (Kg) Month 367 70 82 32 184
16 Paneer (KG) Month 113 58 22 12 20
17 Gulab jamun tub (Kg)
Month 51 5 23 8 15
18 Cream (Month) 6429 6429 0 0 0
155
Wayanad District
5.6.4 Market Size and Market folds more than the urban market
Share of MRCMPU in Wayanad district.
Market size is the measurement of
Yet another way of understanding
the total volume of a gien market.
the market is by the end user
Market size calculated on a
purchase method. The latest
standard practice, competitive
Census (2011) shows the following.
sales approach (bottom up
approach), shows that the market Urban population
Wayanad district - 31580
was 13,000 LPD (Milma plus the Rural population - 785840
competitors). This indeed is a very The HH survey conducted as a

conservative figure and pertains part of this study shows that 88
mostly to the urban market. Added per cent of the urban population
to this is the rural consumption. and 78 per cent of the rural
With the sharp fall in cattle population in Wayanad consume
numbers and cattle holdings in milk daily. The average per capita
rural areas, the rural market for consumption in rural areas is 110
milk is fast expanding. The market ml and that in urban area is 120
size in rural areas will be several ml. The survey shows that nearly
156
Wayanad District
50 per cent households in the The milk parlors are positioned in

rural areas own cows and they do strategic positions to attract more
not buy any milk especially if they consumers to Milma products.
have a lactating cow in the house. Apart from selling the Milma
Hence the market size calculated products they also act as a media
is shown as table 5.8. to improve the visibility of milk
and milk products. The Milma
The MRCMPU marketed milk at
Shoppe in towns can be
the rate of 8327 LPD. This works
out to 22 per cent of the market
milk parlors to increase the
size which indeed is low. Hence
the supports under the NPDD visibility of the products and to
should all be geared up to improve increase the sales.
the market coverage. Among the various marketing

infrastructure provided under the
5.6.5 Milk Marketing CSS, the introduction of PUF
Infrastructure Current insulated vehicles in milk
Status distribution routes and PUF boxes
The table 5.9 shows the facilities in the retail outlets are worth
available in Wayanad district for
market promotion.
Table 5.8 Calculated Market Share in Wayanad District 2013-14

Sl.
Particulars Rural Urban Total
No.
1 Population Wayanad district 785840 31580 817420
2 Cattle holdings % 50 0 50
3 Potential consumers (1/0.5) 392920 31580 424500
4 Actual consumers as per HH survey (%) 78 88
5 Actual consumers (3x4/100) 306478 27790 334268
7 Household demand LPD (5 x 6) 33713 3335 37047
8 Inst Demand (20% of urban demand) 0 667 667
9 Total demand (7 + 8) 33713 4002 37714
157
Wayanad District
Table 5.9 Existing Market Promotion Amenities in Wayanad

as on 31-3-2014
Sl.
Facility/Accessories Quantity
No.
3 Distributors for milk (No.) 1
9 PUF box 100 ltr. (No.) 107
10 PUF box 150 ltr. (No.) 24
11 PUF box 25 ltr. (No.) 152
13 Shipper box for ice cream 40
15 200 liter freezers Glass top for dealers (No.) 5
17 500 ltr. freezer for dairy (No.) 53
19 Deep freezer 320 ltr. (Glass top) (No.) 0
the PUF containers under the Our field exposure visits revealed
IDDP scheme during the yester that the retailers wholeheartedly
years, the entire milk transport welcomed the PUF boxes because
from Wayanad dairy was switched they were proved to be viable
over to PUF insulated vehicles. The alternatives for the energy
PUF boxes of varying sizes, 50-150 consuming freezers. They occupy
liter provided at 50 per cent less space, are easily movable and
subsidy in the retail outlets are easy to clean. The boxes retain
together with the PUF bodied low temperatures for about 3-4
transport vehicles ensured perfect hours during which the milk is
end-to-end cold chain and quality generally sold out.
assurance dairy to consumer.
158
Wayanad District
Freezers, 200 and 120 liter within and outside the district.
capacity, are provided to the The market analysis shows that
retailers at a subsidized price of Rs there is a wide gap between
5000/- a piece for storing frozen demand and supply. To take
Milma products. Apart from ice advantage of these favorable
cream, milk is also sometimes factors and to safeguard the
stored in freezer cabins. There are interest of the milk producers in
many takers for the freezers and the district, further expansion of
almost all of them are in use, field the marketing outlets and
exposure visits and surveys reveal. developing an aggressive
The Visi-coolers are provided at marketing strategy are essential to
subsidized price to store products protect the interest of the milk
like flavored milk, cup curd, etc. producers in the district (sales
outlets in border areas, out side
The market in Wayanad district is
state parlors, parlors in Various
under the perpetual threat from
tourist spots, ice cream Canopy
private dealers. Also, some of the
vehicles in interior routes, etc.).
DCSs in Wayanad market sell milk
159
Wayanad District
5.6.6 Consumer Awareness and consumes less. Hence the

Programs MRCMPU has to market the milk
Consumer awareness camps are in the neighboring districts
being held and dairy visits Malappuram, Kozhikode and
organized to explain the chain of Kannur. The long distance
activities involved in milk transport, multi-point stocking
procurement from farmers to sales and re-distribution and timely
from retail outlets. The consumers supply to consumers without
also get an opportunity to gather losing the quality are not only
first hand information on quality challenging but also invite extra
assurance followed at various expenses. Added to that is the
stages of milk reception, processing competition from marketing
and marketing. Advertisement agencies who do not have any long
boards and banners are exhibited term bondage with to the farmers.
in busy places for popularising the The private dealers and certain
milk and milk products. These cooperative organizations are the
popularization activities are real threats to Milma. They always
however scale inadequate and are try to spread rumors about the
not reaching a large segment of the quality of Milma milk, provide
public, particularly those in rural higher sales commission and
areas. Hence it is suggested that incentives to the dealers and even
the consumer awareness programs provide flexible credit. At the same
and the publicity methods should time, milk production in Wayanad
cross the usual styles and enter is livelihood intensive to a vast
into newer frontiers to attract more majority of marginal and sub
and more consumers in to the fold marginal farmers who depend on
of Milma. Milma to market their milk. Hence
the marketing activities in
5.6.7 Key Issues and Wayanad are very crucial to the
Recommendations Milk Union as well as the farmers.
The crux of the issues in Wayanad The existing marketing
is that the district produces more infrastructure of MRCMPU is
160
Wayanad District
inadequate to meet the challenge. Wayanad district for which the

Hence MRCMPU has to scale up facilities and equipments
their marketing activities in suggested are shown in table 5.10.
Table 5.10 The Suggested Infrastructure under NPDD for Marketing in

Wayanad District
Total Cost
No. of Unit Cost
1 Depot/Parlor (Rs in
Units (Rs)
Lakh)
1.3 Shoppe support 1 500000 5.00
1.4 Space in super market 9 20000 1.80
2 Market Infrastructure
2.2 PUF box 50 ltr. 210 2000 4.20
2.3 PUF box 100 ltr. 120 4000 4.80
2.4 PUF box 150 ltr. 120 6500 7.80
2.5 PUF box 25 ltr. 30 1300 0.39
2.6 PUF box 460 ltr. 30 15000 4.50
2.9 200 liter freezers glass top for
dealers 90 17000 15.30
2.10 120 LTR freezer 120 11000 13.20
2.11 500 liter freezer for dairy 12 23000 2.76
2.12 Deep freezer 320 liter 90 17000 15.30
2.13 Deep freezer 320 ltr. (Glass top) 150 20000 30.00
2.14 Visi-cooler 220 liter 120 20000 24.00
2.15 Visi-cooler 320 liter 90 30000 27.00
subsidy 15 100000 15.00
3 Consumer Awareness Programme
LS 125.00
and Publicity Materials
3.1 ACP with LED board 120 20000 24.00
4 Freezer subsidy 15 5000 0.75
5 Refrigerator subsidy 15 3000 0.45
6 Rain coats 300 700 2.10
7 Support to milk stockists (RD) 9 200000 18.00
Dealer club meet/orientation/
8 incentive 8 25000 2.00
9 Market research 30 30.00
Total (2.0.0) 406.95
161
Wayanad District
Most of the suggested articles are established in Wayanad district at

commonly used for market an estimated cost of 3.6 lakh.
promotion. A few deserving special
b. Milma Shoppe
mention are:
The purpose of Milma Shoppe is to
a. Milk Parlors increase the sale of milk and milk
Milk Parlors were established in and products apart from improving
prominent public places during their visibility to generate income
the first Phase of IDDP to promote for the resource poor milk
the sale of milk and milk products. producers in Wayanad district.
Buyers are served milk and milk Keeping this in mind, MRCMPU
products in a consumer friendly started Milma Shoppe in
environment. All parlors in Wayanad district. Shoppe sells all
Wayanad are functioning well and Milma products and they work
publicize the Milma milk and milk round the clock. The shoppe
products in the district. But the already established is found to be
existing numbers are scale an effective tool to publicize milk
inadequate. Therefore six more and milk products. It is suggested
parlors are recommended to be that one more Milma Shoppe be
162
Wayanad District
started in one of the towns in be provided with new or additional

Wayanad district during the PUF boxes to achieve 100 per cent
project period (cost Rs 5.0 lakh). cold chain maintenance (Cost Rs
21.69 lakh).
c. PUF Bodies
In order to give good quality milk Visi-coolers are excellent
and milk products to the equipment to keep the quality of
consumers, MRCMPU Ltd started products like flavored milk. Hence,
investing in PUF insulated vehicles a few of them are suggested as
and PUF Boxes. At present the part of market promotion.
entire processed milk is
e. Freezers for Ice Cream
transported in PUF insulated
Promotion
vehicles. Six more PUF bodies are
MRCMPU Ltd. is selling products
suggested as standby for
like ghee, curd, Butter milk, Milk
replacement of that in use and for
peda, Palada mix, Flavored milk
operation of new routes (Cost Rs
and Ice cream. The share of milk
15.0 lakh).
products in the total turnover of
d. PUF Boxes/Visi-Coolers the Union is around 24 per cent
MRCMPU has effectively and is very crucial in its financial
demonstrated that PUF Boxes are security and liquidity. Among all
the most suited and the cheapest the products, ice cream is the
method to keep the cold chain most promising one. Unfortunately
uninterrupted from the point of Milma now commands only less
origin to the point of consumption. than 5 per cent market share in
Freezers are uneconomical to the ice cream segment. The major
preserve milk. Moreover freezers hurdle identified against the
are capital intensive. The PUF market expansion in Wayanad
boxes supplied under the district is the absence of user
IDDP/SIQCMP are found to friendly and energy saving freezers
substitute the freezers for cold at retail points. During IDDP
preservation of milk. Hence it is Phase I and SIQCMP, the Milk
proposed that all the retailers shall Union supplied few freezers at
163
Wayanad District
subsidized price and the sales of channels of media shall be

ice cream increased from 996 LPD launched in Wayanad district to
in 2010-11 to 3894 liter/month in serve two purposes awareness
2013-14. A three pronged market creation among all sections of
intervention appoint more whole people and market promotion. An
sale dealers, equip all retail points amount of Rs 125 lakh is
with freezers and wide publicity suggested for this activity in
through TV channels, is suggested. Wayanad district (Cost Rs 125
In addition, canopy fitted vehicles lakh).
are recommended for special sales
g. Market Research
in tourist spots and prominent on
Market research supported by
road places (Cost Rs 85.5 lakh).
market survey should form an
f. Consumer Awareness and integral part of the market
Publicity development. The surveys should
Wayanad district is a hot spot for bring forward the consumer
tourism. Effective advertisement preferences and perceptions and
and building up consumer the dairy/market wing should
awareness on milk and milk make suitable adjustments in
consumption can promote the sale production line and marketing. It
of Milma products among the is well known that innovative
general public. Sustaining and changes are the key to capture
further developing the market is new markets. Packing and
crucial to the very sustenance of positioning the milk and milk
milk production in the district as products can go a long way in
well as the state for food security market promotion. Unfortunately
and for livelihood support. Due to this is not given due attention in
inadequate finance, much more is MRCMPU. It is suggested that a
needed to be done in this small provision be made for
direction. Therefore it is strongly market research, Rs 30 lakh in the
recommended that an aggressive proposed NPDD project (Rs 30
consumer education cum lakh).
popularization program through all
164
Wayanad District
5.7 Milk Procurement The BMC DCS means a DCS in

which the BMC is installed,
5.7.1 Organization
Cluster DCS supplies milk to a
BMC, and the direct DCS means a
functions of MRCMPU. The milk
DCS which supplies milk directly
procurement in Wayanad district
to the processing dairy. The milk
is being looked after by the P&I
producer delivers the household
Unit functioning in Wayanad
surplus milk either in the BMC
dairy. The Milk Union has
DCS, Cluster DCS or the Direct
established a network of village
DCS depending on his
level DCSs in the district to
accessibility. The Cluster DCS in
procure the surplus milk from
turn delivers the milk to the
dairy farmers. The organization of
nearest BMC. The direct DCS
milk procurement is explained in
supplies milk direct to the dairy
fig. 5.3.
Fig. 5.3 Organization of Milk Procurement in Wayanad District
Milk
Producers
Milk Chilling Plants

BMC DCS (32) Cluster Non BMC DCS Non cluster
DCS DCS (2)
WYND DAIRY
Key words: BMC DCS Dairy Cooperative Society having Bulk

Milk Cooler; Cluster DCS: DCS attached to BMC for milk supply;
WYND: Wayanad.
Figures in brackets number of DCS
165
Wayanad District
dock. BMC DCS chills the milk proportion supplying milk is low
before transporting to Wayanad because the non-producers are not
dairy in insulated road tankers. removed from the DCS roll due to
The Dairy in turn processes the the cumbersome mandatory
milk and markets in towns and procedures. The average
other urban agglomerations within procurement per DCS was 2645
and outside the district. The whole LPD and per supplier 7.6 LPD
chain of activities - procurement, during 2013-14. The local sale,
processing and marketing - is well 19,217 LPD, accounted for 14 per
orchestrated and executed. cent of the daily procurement
indicating that a majority of the
5.7.2 Profile of DCSs in farmers are producers and the
Wayanad District milk buyers are only a few. The
A majority of the DCSs in rate of procurement per DCS is
Wayanad district is Anand Pattern excellent in comparison to the
Co-operative Societies (APCOS). other districts in Kerala. The DCSs
They are producer cooperatives classified according to the daily
managed by a democratically collection shows that a majority of
elected Management Committee. the DCSs collect more than 500
At the close of March 2014 the LPD and are extremely viable. The
district had 53 functional APCOS. DCSs in Wayanad, unlike in other
In addition, one non-APCOS districts, command larger areas
existed directly under the control and have several sub centers to
of the department of Dairy collect milk. Out of the 53 DCSs,
Development. none supplied milk direct to the
dairy during 2013-14. Eighty five
Table 5.11 shows the profile of the
percent of the DCSs function in
DCSs in Wayanad district. From
own buildings. Others are in
amongst the 53,040 registered
rented buildings. Almost all of
milk producers in the district, on
them have electricity and water
an average 18,313 (34.5%) alone
supply arrangements.
supplied milk to the DCS in the
district during 2013-14. The
166
Wayanad District
Table 5.11 The Profile of DCSs in Wayanad District

Sl.
No.
3 Av. number of suppliers/DCS 345 (18313)
6 Milk supplied to milk union from DCS (LPD) 120989
7 Av. procurement/DCS (LPD) 2645
15 Av. fat% 3.9
16 Av. SNF% 8.29
17 No. of BMC DCS (31-3-2014) 32
18 No. of BMCs 45
20 Av. collection through BMCs (LPD) 120000
21 No. of DCSs which supplied at dairy dock 0
22 No. of DCSs provided AMCUs (including DDD) 53
23 No. of DCSs provided analyzer only (including
DDD) 15
24 No. of DCSs provided EMTs 53
25 No. of DCSs provided EMT only ( no analyzer) 53
26 No. of DCS provided Gerbers test equipment
only NA
29 % wards having potential for milk collection NA
30 No. of DCSs having own building 45
31 No. of DCSs having adequate water supply
arrangements 53
32 No. of DCSs having standby generators 30
33 No. of DCSs having Electricity 51
35 Quantity of milk spoiled (LPD) 4
167
Wayanad District
Unlike in other districts of on the basis milk fat and SNF in

Malabar, all the DCSs possess the milk. The table 5.12 shows the
AMCUs for milk procurement and average fat and SNF value of milk
quality determination. collected from the farmers in
Wayanad district during 2013-14.
5.7.3 Coverage
The village cooperatives are
The recent survey shows that the
equipped to determine the
Wayanad district has 459
compositional quality, fat and
Panchayat wards in 53 Panchayats
SNF. Milk from each supplier is
of which almost 75 per cent are
tested for fat and SNF. A few
under milk procurement coverage.
DCSs are also equipped to detect
The assessment shows that only added preservatives, adulterants
less than 5 per cent of the left out and neutralizers apart from MBRT
wards have the potential for estimations. The DCSs have
starting new DCSs. AMCUs, Milk Analyzers, EMTs and
also Gerbers fat test equipment.
5.7.4 Milk Quality and Quality Different DCSs use different
Administration of Raw Milk equipments for quality
The MRCMPU follows the two axis determination. AMCUs are the best
pricing system ie, farmers are paid of all.
Table 5.12 Quality of Milk Collected from Farmers

in Wayanad District 2013-14
Parameter Values
Fat % APCOS 3.99
Fat % non-APCOS NA
SNF % APCOS 8.3
SNF % non-APCOS NA
Av. MBR time direct DCS (Mts) NA
No. of APCOS using/ supplied AMCU 53
No. of APCOS using/ supplied Milk O
53
tester & LR
No. of APCOS using/ supplied
53
Gerbers test & LR
168
Wayanad District
Although all the DCSs in Wayanad Almost all the BMC DCSs possess
use AMCUs for quality the equipments for MBRT
determination, only a very few estimation. But not all of them use
DCSs make use of one of the this provision.
components, the auto analyzer,

The milk procured from among the
reportedly due to the reason that
farmers has 3.9 per cent fat and
they are slow in performance.
8.3 per cent SNF which are lower
Also, some of the analyzers were
than those in other districts of
found to be erratic in fat and SNF
Malabar. Farmer education and
estimation while some others
introduction of AMCUs can further
have inconsistent results. improve the quality. The MBRT of
Malfunctioning of the analyzers milk supplied through BMC DCSs
cause hardships to the farmers averages 176 minutes (tested in
and the DCSs and hence Wayanad Dairy). The microbial
discontinued. Some have changed quality of milk in Wayanad is
the configuration of the AMCUs by better than that in other districts.
hooking EMTs instead of In the years to come, estimation of
analyzers. Using EMT defeats the both compositional and bacterial
very purpose of AMCUs, quality will have a telling influence
automation and instant print out on the marketability of milk. The
to farmers. AMCUs are excellent best way to usher in microbial
gadgets to ensure transparency in quality monitoring is to pay for
milk procurement in village DCSs. bacterial quality also. To begin
It avoids the hassles of quality with, it is suggested that the top 2
checking, volume measurement per cent of milk producers
and payment of milk price. Hence supplying high quality milk may
we are of the opinion that the be paid an incentive.
analyzers need to be re-introduced

after rectifying the practical
Suggestions
difficulties in consultation with the
Under the IDDP and SIQCMP
manufacturers and suppliers.
schemes Rs 515.79 lakh has been
169
Wayanad District
invested for promoting the milk a. Buildings

procurement activities ranging As pointed out in the forgoing
from supply of BMCs to DCSs, sections, a few DCSs function in
milking vessels to farmers and rented buildings. Most of them do
capacity building of farmers and not have the minimum facilities for
elected members in Wayanad hassle free milk collection and
district. The IDDP support is dispatch. BMC installation is
available for the next two more virtually impossible and effluent
years (2014-15 and 2015-16). treatment is a serious problem in
Therefore the support requested these DCSs. Therefore, it is
under the NPDD for milk suggested to include provision for
procurement is meant to stabilize, subsidizing new DCS buildings at
sustain and carry forward the the rate of Rs. one lakhs per DCS.
achievements already made. The Eight DCSs are identified to have
suggested components and the the land and financial capacity to
estimated costs can be found in part fund this during the project
table 5.13. period.
Table 5.13 Support for Milk Procurement Suggested for Wayanad District
under NPDD
Unit Total
Sl. No. of
Milk Procurement Cost Cost (Rs
No. Units
(Rs) in Lakh)
3 Bore well 10 25000 2.50
4 Open well 15 10000 1.50
12 Subsidy to cattle feed
transport 24128 400 96.512
13 Incentive to better quality
milk 900000 0.5 16.42
Total 144.73
170
Wayanad District
b. Water Supply System estimated quantity sold in

Developing water source and water Wayanad district comes to 24,000
supply is becoming increasingly MT in three years. An amount of
important in Wayanad district. Rs 0.4/kg is the average transport
Most of the DCSs find it difficult to cost and the total funds required
mobilize adequate capital for come to Rs 96.5 lakh. The amount
investment. Hence a subsidy of may be provided as a subsidy so
rupees sixty thousand per unit is that the price of cattle feed can be
suggested for ten DCSs at an kept low.
estimated cost of 6.0 lakh. Water
d. Incentives for Good Quality
harvesting, installing water tanks
Milk
and pumping facilities are
The SIQCMP has instilled
envisaged. In addition, digging of
considerable enthusiasm among
ten bore wells at the rate of rupees
the dairy farmers to produce good
twenty five thousand per unit and
quality milk. As a result, the
fifteen open wells at the rate of
bacterial content of the raw milk
rupees ten thousand per unit are
collected from farmers has reduced
also suggested in Wayanad
significantly. The low bacterial
district.
count immensely improves the
c. Subsidy for Cattle Feed quality, especially the organoleptic
Transport properties (taste and flavor) of the
Cattle feed is being sold through milk apart from heat stability and
the DCSs. The farmers in Wayanad longer shelf life. Such milk is
district (hilly district) ideally suited for product
wholeheartedly welcome the manufacturing. It is beneficial to
arrangement because of the the consumers also. The farmers
convenience, easy access and the are not compensated for their
credit facility extended by the extra effort in producing such
DCS. The transport of cattle feed clean milk. As a beginning, it is
from the plants to the DCSs proposed that the top 2 per cent of
entails cost. It is suggested to the milk may be paid an incentive
subsidize the transport cost. The of 50 ps. per liter of milk. The daily
171
Wayanad District
procurement is near to 1.5 LLPD dung. The shed must be well

and the incentive at the suggested ventilated, easy to clean and
rate works out to Rs 16.42 lakh. should have transparent roofing
sheets interspersed with opaque
5.8 Cattle Shed and Farm ones to permit sunlight, and
Machineries facility for continuous feeding of

water. Not many cattle sheds of
Table 5.14 Farm Equipments the standard mentioned above
Supplied to the Farmers in exist in Wayanad district. Some of
Wayanad District the sheds are a mere make shift
Sl. shelter with mud/wooden floor,
Item Quantity
No.
tiles/asbestos/PVC/Silpaulin roof,
1 Milking machines 26 dark and musky, all in one floor
2 Rubber mats 833 (no urine or dung channel)
3 Pressure washers 28
and without any watering
4 Gen sets 5
arrangements. The cows remain in
5 Cow drinker 10
6 Chaff cutter - Motorised 2 this shelter most of the time (no
grazing). The hind quarters and
Well constructed cattle sheds are a the udder often remain soiled with
pre-requisite for clean milk dung, urine and mud. Udder and
production. A dirty cattle shed teat injuries are common. Feeding
contributes substantially towards of water is only occasional.
prevention of external Therefore, any support for good
contamination of milk and entry of cattle sheds is a welcome gesture
microbes in to the udder causing towards promotion of dairy
sub-clinical/clinical mastitis. A production in Wayanad district.
well constructed cattle shed Considering the above aspects, the
should also provide operational Milk Union could rope in funds for
easiness and animal comfort. The cattle shed modification and
shed should have adequate space making of new cattle sheds under
for the animal, manger, feeding the IDDP and SIQCMP schemes. In
alley and channels for urine and the past, 294 cattle sheds were
172
Wayanad District
funded under the IDDP/SIQCMP with watering facility rather than

schemes in Wayanad district. insisting on a new cattle shed.
During the course of the field
On the face of the shrinking family
work, we observed that the funds
size, the changing status of women
provided are utilized properly and
in the society and the
the floor of the cattle sheds is
opportunities for employment in
well constructed. However,
other sectors of the economy, the
construction of new cattle sheds is
availability of labor for dairy
very expensive in Kerala due to the
farming is fast declining. Hired
high cost of labor and the
labor for dairy farm activity is
materials. The budget provision of
uncommon in Wayanad district.
Rs 10,000/- is thoroughly
Hence making the daily chores less
inadequate and will not meet even
arduous and reducing the daily
10 per cent of the overall cost.
labor requirement are crucial for
Therefore, it would be more
the very sustenance of dairy
sensible if the support could be
farming. Considering the economic
extended for renovation and
and social significance, the
modification of the cattle sheds
173
Wayanad District
MRCMPU has initiated providing new entrants of cattle farming. To

financial support for farm overcome this issue, cattle
mechanization. The Union has induction has been resorted to by
been providing and channeling several development agencies in
support for these activities for the the state as a support scheme. The
past few years. However, the MRCMPU too distributed 250
support is scale inadequate and heifers to 50 farmers in Wayanad
many more are on queue. It is district to promote cattle rearing.
suggested that the assistance may
be continued and funded under Cattle keeping in the district has
NPBBDD. The components become largely a job of
suggested, the quantity and the economically weaker sections of
estimated costs can be found in people (BPL families) and women.
table 5.15. It continues to be a major means
livelihood especially for women.
5.9 Cattle Induction Therefore, a support for
The absence of easy access to loan purchasing the following number
facility at low interest from banks of cattle is recommended under
remains a serious obstacle to the NPDD (table 5.16).
Table 5.15 Cattle Sheds and Farm Machineries Suggested under NPDD for
Wayanad District
Total
No. of Unit Cost
A Cattle Shed Cost (Rs
Units (Rs)
in Lakh)
B Cattle Farm
Mechanization
3 Gen set 30 75000 22.5
5 Rubber mats 500 2500 18.75
Total (4.0) 79.5
174
Wayanad District
Table 5.16 Cattle Induction Program Suggested in Wayanad District

Unit Total Cost
Sl. No. of
Cattle Induction Cost (Rs in
No. Units
(Rs) Lakh)
1 Purchase of cows 120 40000 48.00
animals 240 2000 4.80
Total 92.55
Only the BPL families will be Transportation cost shall be

included for cattle induction. met in full under the scheme.
Fifty percent of cows and fifty Seventy five percent of the

percent of heifers are reserved Insurance premium shall be
for women. included under the scheme
Women members will be and the balance as
allowed 75 per cent subsidy beneficiary contribution.
on the purchase price and the
others 50 per cent.
175
Wayanad District
5.10 Establishment of Central audits and certain equipments and
Laboratory software for the maintenance of
An amount of Rs 91.82 lakh had these systems are to be acquired.
been invested under phase I & II of The amount suggested is towards
IDDP and SIQCMP schemes and these items.
Rs 39.32 by the Milk Union in

Although the DCS labs are
upgrading the Wayanad dairy lab.
equipped to carry out the MBRT, a
The lab has reasonable facilities
system to carry out the tests by
including equipments for routine
the DCS staff and to link the
tests. Hence no additional lab
results on line with the central lab
equipments are proposed under
are yet to be implemented in full.
NPDD.
Any further upgradation of the
But as part of modernizing the DCS labs needs to be considered
automatic data capturing system only after fulfilling these
in the hygienic systems in the requirements.
dairy software for easy monitoring

of FSMS and a high capacity 5.11 Clean Milk Production
pressure jet are proposed in the Kits for Beneficiaries
Project. Under the CMP scheme, the
MRCMPU supplied the following
The Wayanad dairy is already articles to the farmers in Wayanad
ISO:22000 certified dairy by DNV. district (table 5.18).
The recertification and surveillance
Table 5.17 Establishment of Laboratories in Wayanad District

Unit Amount
Sl.
Components Units Price (Rs in
No.
(Rs) Lakh)
1 Central milk testing lab LS 20.00
HACCP/ISO 1 500000 5.00
Total 54.00
176
Wayanad District
Table 5.18 CMP Kits Supplied under SIQCMP Scheme in Wayanad District
Sl. Financial
Component Physical
No. (Rs in Lakh)
1 Detergents & chemicals to DCS lot 16.02
The distribution of CMP kits to quality of milk. Many more farmers

farmers had little impact on clean are to receive the vessels in
milk production. The farmers Wayanad district. Therefore the
discontinue the use of chemicals utensils and vessels may be
and disinfectants once the free supplied through the DCSs free of
supply is stopped. Hence, a cost under the NPDD to those
continuous supply of free farmers who are yet to receive
detergents/chemicals for udder/ them. The numbers suggested and
utensil cleaning is not desirable. the financial requirements are
given in table 5.19.
On the other hand, the stainless
steel utensils (the milking vessels Milking machines are relevant in
and carrying utensils) are of use to todays context as the availability
the farmers and they whole of family labor for farmstead jobs
heartedly welcome the component. are steadily declining. Our field
It has helped to improve the initial exposure visits shows that almost
Table 5.19 CMP Kits and Milking Machines Suggested for

Wayanad District under NPDD
Total Cost
Sl. No. of Unit
Component (Rs in
No. Units Cost (Rs)
Lakh)
accessories 1500 400 6.0
2 Electrically operated milking
machines & other equipments for
hygienic milk handling at village/
farmer level 15 55000 8.25
Total (7.0) 17.25
177
Wayanad District
all the beneficiary farmers of the SIQCMP schemes implemented in

earlier schemes use the machines the district. The major components
although continuous service back and the financial and physical
up is essential. It is suggested that attainments in Wayanad district
fifteen more milking machines may can be found in table 5.20.
be supplied to the farmers at
Those services are under the state
subsidized (75%) rate under
NPDD. It is also suggested that a
have a variety of schemes for
few hand operated machines may
supporting those activities. The
be supplied for a scientific and
efficacy of AI and health care
methodical field trial in association
delivery at farm gates, however,
with KVASU.
remain poor, the HH survey
shows. Since those services are of
state domains, the change in
(TIS)
service delivery requires policy
The technical input services
decisions and to avoid duplication
include support for animal
of such services (AI, health care,
breeding, health care and
home stead fodder production etc)
are not suggested under the
NPDD. The most essential
components suggested on a
members. The TIS was a major
priority basis can be found in table
component under the IDDP and
5.21.
Table 5.20 Technical Input Services Components and Achievements in
Wayanad District
Financial
Physical Union/ Total (Rs
Component IDDP/
Achievement Beneficiary in Lakh)
SIQCMP
Technical input
294 farmers 41.5 lakh 17.78 59.28
services
178
Wayanad District
Table 5.21 Wayanad District Technical Input Services

Suggested under NPDD
Total
Sl. No. of Unit
Component Cost (Rs
No. Units Cost (Rs)
in Lakh)
1 Liquid nitrogen containers 6 30000 1.80
input camps 180 5000 25.00
4 Chaff cutter 36 20000 7.20
5 Commercial fodder
production 10 100000 10.00
Total 46.00
The LN containers are for other hand, large land holdings

replacement of the ones in use. and fallow lands are potential
The animal health and breeding sources for fodder production
input camps include a pilot fodder as a value added crop in
program for fertility management irrigated land. The fodder so
of dairy cows among farmers. The produced shall be marketed
program envisages identification of amongst the DCS members at the
infertile cows, providing cost plus price. The scheme shall
management and Veterinary be a flagship program of NPDD.
support to correct the reproductive
problem, if any, documenting the 5.13 Information and
information for adoption Communication
elsewhere. It is a DCS based Technology Networking
program centrally controlled and The MRCMPU, apart from being a
monitored from HO of MRCMPU.
farmers organization, is also a
The conventional homestead multi- crore business concern. Its
fodder production is a failed business units are far flung and
attempt in Kerala. The reasons are widely distributed. The application
many, the most important being and full utilization of Information
the land fragmentation and the and Communication Technology
declining farming activities. On the (ICT) alone will enable the
179
Wayanad District
MRCMPU to modernize their units functions as a client server

and keep abreast with their architecture network with Six
competitors. It is also essential centers, one each in each district
that the whole business of (Palakkad, Malappuram,
MRCMPU remains transparent to Kozhikode, Wayanad, Kannur,
their stakeholders, the dairy Kasaragod) and a central server
farmers. Unfortunately the Milk system linking all these six
Union is in the infant stage in centers. The information will be
exploiting the benefits of ICT. made available to all the districts
and DCSs. The details of the
The current status is that the
proposed system are given as
dairy operations are computerized
annex-1. The expenditure is
and internally networked
proposed to be shared among the
(intranet). A few DCSs are also
district projects. The share of
computerized but not networked.
Wayanad district is illustrated in
The milk Union proposes to
table 5.22.
expand the ICT so that the system
180
Wayanad District
Table 5.22 Information and Communication Technology Networking

Wayanad District
Unit Rate
Sl.
Details (Rs in Units Amt.
No.
Lakh)
1 Purchase of Computer/HHB
1.1 Desktop 0.50 13 6.50
1.2 Laptop & Netbook 0.60 10 6.00
1.4 1000 LPM line printer 0.00
1.5 132 col DMP printer 0.30 1 0.30
1.6 A4 size net work laser printer 0.20 1 0.20
2.1 Rack server 9.00 2 18.00
2.2 42 U server rack 1.00 1 1.00
2.4 Tape backup 8.00 1 8.00
2.5 UPS for server 7.00 2 14.00
2.6 Server OS & training 3.00 1 3.00
2.10 Hardware & networking 10.00 1 10.00
2.11 Software consultation charges (AMC) 5.00 1 5.00
2.12 Onsite software analysis and evaluation
5.00 1 5.00
for Union and DCS purchase
3 Software Purchase & Up-gradation
30.00
Charges
3.1 Software consultancy & database
administration 10.00 1 10.00
3.2 Leased line communication cost 10.00 1 10.00
Total 149.40
5.14 Manpower Development reduction, energy conservation

and product improvement in
5.14.1 Current Status
MRCMPU. Apart from the Union
employees, the staff and the
elected representatives of the DCS
and the Board are also trained on
appropriate subjects.
181
Wayanad District
Table 5.23 Employees and the Elected Members Trained in Wayanad

District
Number of
Sl.
Course Persons
No.
Trained
1 Cooperative development program
c FIP- Local farmers attended 1407
d Management orientation 85
5 Training on AI 17
8 FIP 735
Table 5.23 shows the numbers Dairy/cattle feed plant. Farmers

trained in various categories from are the trainees. The farmers
Wayanad district. The DCS staff Induction program is normally
has been trained at the HRD carried out in the HRD Centre,
centre, Kozhikode under MRCMPU Kozhikode. The Dairy Animal
on the relevant subjects. The Management Training to the
trainers included those from farmers has been undertaken in
within the organization and also APCOS DCSs. The training
invited from other organizations. included lectures by experts and
The duration ranged from one to visit to a few well run farms. The
three days and the subjects farmers were given opportunities
handled were those relevant to the to see for themselves the success
concerned groups. and failure stories.
The CD program includes training The training for MRCMPU

in village cooperatives followed employees is arranged by the Head
by a visit to the processing Office in the institutions of repute
182
Wayanad District
in India, both inside and outside and DCS employees should

the state. An interaction with a be initiated on a project mode
test group showed that the and results closely monitored
trainings were partially useful for and evaluated.
upgrading their knowledge, skills
and attitude.
been spent on various training
knowledge on production and
programs in Wayanad district
marketing management. They
under the IDDP and CMP Phase I
should be provided
and II.
opportunity to visit centers of
excellence outside the
state/country.
Suggestions
13. The future training 17. The thrust of capacity
programmes especially those building of higher level
for the middle level employees employees should be on
starting from Supervisors modern Management Systems
should be hand on training rather than limiting to
exclusively on subjects and technical subjects. They
skills relevant to them. should be exposed to the
happenings in the dairy
14. Farmers training should be
sector elsewhere in the
organized in villages
country (eg: Schreiber
themselves with the support
Dynamix) to widen their
of LSG and Village Extension
vision and outlook.
Workers under MRCMPU.
18. The FIP must be gradually
15. All out and comprehensive
phased out.
Eradication, Clean Milk The courses suggested and the
Production for farmers, estimated costs are given in table
Village Extension Workers 5.24.
183
Wayanad District
Table 5.24 Proposed Training Program under NPDD Wayanad District

Total
Sl. No. of Unit
Course Unit Cost (Rs
No. Units Cost (Rs)
in Lakh)
1 CD programme Prog. 15 80000 12.00
2 FIP Person 200 300 0.6
3 Secretary Person 125 3000 3.75
4 Tester/Helper Person 125 3000 3.75
5 Training of farmers in GMP/GHP Person 250 2000 5.00
6 Training of farmers in animal
Person 66 2000 1.32
husbandry
7 Dairy manager Person 2 20000 0.40
8 Production officers Person 8 20000 1.60
9 Dairy plant supervisors Person 9 20000 1.80
10 Technicians/Operators Person 7 20000 1.40
11 Milk marketing officers Person 7 20000 1.40
12 Training of MC members Person 3 12000 0.36
13 Dairy extension activities Prog. 7 1000 0.07
Total (10.0) 1256 33.45
5.15 Working Capital The working Capital requirement
Wayanad District is fluctuating throughout the year

depending on local milk
The Dairy shall maintain
procurement. During lean season
minimum quantity of finished
during which the procurement
products at all times to ensure
from the district declines, union is
uninterrupted sales. Minimum
procuring large quantity milk from
quantity of all raw materials,
other states for which payments
consumables packing materials,
are made in advance. Large
stores and spares etc. are also
quantity of SMP shall also be
required to maintain smooth
stocked to meet any contingencies.
processing/production operation.
Table 5.25 Value of Milk Procured in 21 Days from Wayanad District
Milk Procurement (LLPD) Average Total Milk Total Milk

Milk Value (Base Value
District 2013-14 2014- 2015- 2016- Days
Price Year) (EOP)
(Actual) 15 16 17 (Rs) (Lakh) (Lakh)
184
Wayanad District
Wayanad 1.22 1.15 1.34 1.44 28.88 21 739.9056 873.3312

During flush season funds are district comes to Rs 740 lakh in
needed to stock ghee, converted 2013-14 which is expected to go as
SMP, cream, etc. which are high as 873 lakh in 2016-17 (table
produced in excess of normal 5.25). The Union proposes to meet
market requirements. Union is this amount from the internal
supplying cattle feed and other reserves while the amount for the
inputs to the societies on credit purchase of milk powder, cattle
basis. Present supply of cattle feed feed and packing material has to
to societies is more than 1200 MT be found from other sources. This
per month. It is expected to amount works out to Rs 443.7 as
increase significantly in the shown in table 5.26.
coming years.
It is suggested that an amount of
At the current procurement price, 443.7 lakh may be provided as
the value of 21 days milk collected working capital for Wayanad
from the societies in Wayanad district under the NPDD.
Table 5.26 Working Capital Required in Wayanad District 2014-15 to

2016-17
Unit 2014- 2015- 2016- Total

Working No. of
Unit Cost 15 (Rs 16 (Rs 17 (Rs Cost (Rs
Capital Units
(Rs) Lakh) Lakh) Lakh) Lakh)
Purchase of milk
KG 80000 300 60.00 90.00 90.00 240
powder
Purchase of
KG 7000 210 4.20 4.20 6.30 14.7
packing material
Purchase of
MT 1050 18000 63.00 63.00 63.00 189
cattle feed
Total 127.2 157.2 159.3 443.7
185
6. KANNUR DISTRICT
Contents
Executive Summary..........................................................................188
6.1 General Features ........................................................................192
6.2 Trend in Cattle Population ..........................................................193
6.3 Trend in Milk Production from Bovines .......................................194
6.4 Milk Chilling 194
6.5 Milk Processing 195
6.6 Milk Marketing 199
6.7 Milk Procurement 208
6.8 Cattle Shed and Farm Machineries 215
6.9 Cattle Induction 216
6.10 Establishment of Laboratory 218
6.11 Clean Milk Production Kits for Beneficiaries 219
6.12 Technical Input Services (TIS) 220
6.13 Information and Communication Technology Networking 221
6.14 Manpower Development 223
6.15 Working Capital - Kannur District 225
Wayanad District
Kannur District
KannurDistrict
187
Wayanad District
Executive Summary
The Kannur district is not among export regulations. In addition, the

the frontline dairy districts in dairy requires certain critical
Kerala. Yet livestock farming is equipments, some as standby and
germane to the vast majority of the some as replacement. The
farmers in the district. The official suggested additions and
statistics, however, show that the replacements are estimated to cost
cattle sector, both in numbers and Rs 273.00 lakh.
output, suffered setbacks since
late nineties. The cattle numbers
declined by 61 per cent from 1996
Kannur district is 2.67 LLPD. The
to 2012 and in-milk cows by 34
market share of MRCMPU in the
per cent. Surprisingly the annual
liquid milk segment in Kannur
milk production fell only
district is just 30 per cent which is
marginally in spite of the sharp fall
not satisfying. The Milk Union is
in cattle numbers.
facing fierce competition from the
The MRCMPU has a processing competitors, mainly from within
dairy at Kannur. The installed the district, but also from outside
capacity of the dairy is 1.5 LLPD. to a smaller level. But the market
During 2013-14, the dairy analysis reveals that this is not a
processed on an average 1.04 restricting factor to command a
LLPD, almost 20 per cent below better market share. The
the installed capacity. Even at the inadequate market infrastructure
peak procurement level during the is one of the reasons for the low
year, the dairys capacity market share. The dairys business
utilization has only been 75 per plan may also require some
cent. Hence there is no urgency in revision. Hence an aggressive
expanding the processing capacity marketing strategy supported by
of Kannur dairy. But the product adequate infrastructure is
manufacturing line requires required. To begin with, new milk
certain additions on account of the parlors and Shoppe are suggested
188
Kannur District
to be opened in prominent public The lack of good cattle sheds and

places. Wide publicity through farm machineries are identified as
print and visual media is also the major constraints in dairy
suggested. Periodic market surveys production in Kannur district.
and R&D on consumer likes and Financial support for
preferences (example attractive strengthening of old cattle
packing for flavored milk, ice sheds/construction of new ones
cream, peda, etc.) are also and supply of farm machineries
suggested. The estimated cost on and equipments are proposed at a
market promotion works out to Rs total cost of Rs 80.00 lakh.
437.5 lakh.
In order to promote cattle keeping
The MRCMPU has built up an among the below poverty line (BPL)
extensive net work of DCSs and and the SC/ST families, a cattle
BMCs for milk procurement from induction program is suggested.
farmers. All the DCSs have The NABARD norms shall be
reasonably good milk testing followed for administering the
facilities. All the BMC DCSs have subsidies. The overall support for
facility for MBRT estimation. The 240 animals is estimated to be Rs
field level milk testing, however, 92.55 lakh.
major constraints identified in the
expansion of milk procurement
and clean milk production are lack
of convenient buildings for DCSs,
will eliminate the need for
absence of good quality water
replication of the same facilities
supply facilities with some DCSs
and expenses in all the districts.
and lack of incentives for clean
Some additional equipments and
milk production and support for
furniture are also required in
cattle feed transport. The support
Kannur dairy lab. All these
suggested for procurement
together are estimated to cost Rs
activities in Kannur district is
54.00 lakh.
expected to cost Rs 233.2 lakh.
189
Kannur District
The farmer beneficiary programs running for the past few years. It is
proposed are aimed at milk suggested to scale up some of
productivity enhancement and these programs. The suggested
clean milk production. They programs would cost Rs 57.6 lakh.
include distribution of stainless
steel utensils, milking machines,
animal breeding and health cover
and commercial fodder production
Kannur district. The milk prices
for which at the estimated cost
are to be paid to the farmers
works out to Rs 38.65 lakh.
regularly which alone cost rupees
The MRCMPU needs to network 300 lakh or more every 21 days. In
with the various units and the addition, keeping a buffer stock of
DCSs for effective information raw and finished goods is essential
sharing and communication. The to safeguard an uninterrupted
suggested system is a client server business. This, as also several
architecture network with six other requirements force the Milk
centers, one in each district Union to borrow money from the
(Palakkad, Malappuram, Kozhikode, open market which causes extra
Wayanad, Kannur, Kasaragod) and burden to the Union and the
a central server system linking all farmers. Hence it is suggested that
these six centers. The data and an amount of Rs 117 lakh shall be
information will be made available paid to the milk Union as a one-
to all the districts and DCSs. The time assistance for Working
estimated cost of these in Kannur Capital.
district is Rs 123.0 lakh.
The Suggestions for Kannur
The HRD through training and district abstract of the proposed
skill development is a routine program is as follows: The
activity of MRCMPU in Kannur suggested programs for Wayanad
district. Several programs were shall be summed up as follows.
190
Kannur District
Amount
Component
(Rs in Lakh)
CMP kits and milking machines to farmers 17.25
Technical inputs services 30.00
Working Capital 117.30
Total 1515.40
191
Kannur District
6.1 General Features the 2011 census, the district

Kannur district came into population is 25.23 lakh of people,
existence on first January 1957. 8.82 lakh in rural and 16.41 in
The district is surrounded by the urban areas with an average
Coorg district of Karnataka density of population of
(Western Ghats) in the East, the 850/sq.km. Agriculture is
Kozhikode and Wayanad districts livelihood intensive to majority of
in the South, the Lakshadweep sea people. The main crops grown in
in the West and the Kasaragod the district are paddy, coconut,
district in the North. The district pepper, cashew, tapioca, areca nut
occupies 2966 sq.km. of the state and plantation crops like rubber
in three geographical regions - and spices.
highlands, midlands and lowlands.
Dairy cattle are germane to the
The highland region comprises
farming systems in the district. The
mainly of mountains and major
livestock population in the district
plantations of rubber. The midland
comprises of 1,06,237 heads of
region, lying between the
cattle, 765 buffalo, 55,262 goats
mountains and the low lands, is
and 4534 pigs as per the latest
made up of undulating hills and
cattle census (2012). The census
valleys. This is an area of intense
figures suggest that the cattle
agricultural activity. The lowland
population in the district is
is comparatively narrow and
continuously declining. The state
comprises of rivers, deltas and
departments, AHD and DDD, are
seashore. This is a region of
the major service providers in
coconut and paddy cultivation.
livestock sector. Under the AHD, the
Kannur district has three Taluks, district has 12 Veterinary hospitals,
129 Villages, nine Blocks, 81 68 dispensaries, five poly clinics,
Grama Panchayats and six one mobile dispensary, two mobile
Municipal Towns (Thaliparamba, farm-aid units, one District
Kannur, Thalassery, Kuthuparamba Veterinary Centre, four Regional
Payyannur and Mattannur). As per Artificial Insemination centers and
one hundred and fifty one AI sub
192
Kannur District
centers. The DDD has one Dy. district declined during this
Director Office (District Office), nine period. The total cattle declined by
Dairy Extension Offices and one 61 per cent and cows in milk by 34
quality control office in the district. per cent between 1996 and 2012.
MRCMPU has a processing dairy The in-milk buffaloes had mixed
here with a capacity of 1,00,000 fortune, the numbers sharply
LPD of milk. Traditionally, milk and declined from 4519 to 146 between
curd are being brought in from 1996 and 2007 and then
Tamil Nadu to this region. marginally gained between 2007
and 2012. Although the accuracy
6.2 Trend in Cattle Population of the data on cattle numbers is
The cattle population in Kannur questionable, it is certain that in
district declined between 1996 and the recent past many dairy
2012, the official statistics shows. farmers in Kannur district dropped
As is evident from fig. 6.1, both the out of dairying due to economic
total and in milk cows in the and other factors.
Fig 6.1 Cattle population Kannur District

( source Cattle census reports, DAH, GOK)
300000
250000
Cattle/Buffalo Num ber
200000
150000
100000
50000
0
1996 2003 2007 2012
Total Cattle 272011 159858 119144 106237

Cow s in Milk 75890 52111 43203 50200
Buffalo in milk 4519 269 146 2100
193
Kannur District
6.3 Trend in Milk Production 6.4 Milk Chilling

from Bovines The BMCs installed in DCSs, apart
According to the ISS estimates from the dairy at Kannur, provide
(Fig. 6.2) the annual milk the milk chilling facility in Kannur
production in Kannur district district. The position of milk
increased from 140.8 thousand MT chilling in Kannur district (other
in 1997-98 to 147.3 thousand MT than Dairy) during March 2014 is
during 2001-02, then sharply given in table 6.1.
declined to 105 thousand MT
The Kannur district has unused
during 2004-05 and thereafter
chilling capacity. More over a new
made spectacular recovery to
Dairy is soon coming up in
139.3 thousand MT during 2011-
Kannur. Therefore, at this stage,
12. Although the accuracy of the
there is no need to create
data is questionable, we have to
additional chilling capacity for
accept these figures as we dont
milk in Kannur district.
have any other authentic data on
milk production.
Fig 6.2 Milk Production Kannur District

(Source ISS AHD GOK)
1 4 7 .3
1 4 0 .8
1 3 9 .3
160
1 2 2 .4
140
105
120
M ilk in '000M T
100
80
60
40
20
0
1997-98 2001-02 2004-05 2008-09 2011-12
194
Kannur District
Table 6.1 Milk Chilling Facility in Kannur District 2013-14

Sl.
No.
2 No. of DCSs in which BMCs are positioned (BMC DCSs) 23
3 No. of cluster DCSs attached to BMCs 126
4 Total installed capacity of BMCs ltr. 52000
5 Av. milk collected through BMCs 2013-14 LPD 41100
8 Av. SPC of BMC collected milk CFU per ml 180000
9 Av. Coliforms of BMC collected milk CFU per ml 40000
10 No. of milk chilling plants Nil
6.5 Milk Processing The capacity of the dairy was

expanded from 60,000 LPD to
6.5.1 Processing Capacity and 1,00,000 LPD during 2002-03 and
Capacity Utilization further upgraded to 1,50,000 LPD
The Kannur district has one dairy during 2009-10. The sources of
at Pallikkunnu, six kilometers milk for Kannur dairy are the milk
from Kannur town near NH 47. procured from farmers in the
KannurDairy
195
Kannur District
district and that supplied from the Kannur dairy also produces
Wayanad Dairy/Chilling Plant. The curd, ghee and buttermilk
average procurement of milk from (Sambharam). They export ghee to
Kannur district during 2013-14 the Middle-East countries.
was 50,700 LPD of which 41,110
liter (81%) was received as chilled 6.5.2 Milk Processing
milk from BMCs. Infrastructure Kannur
Dairy
In addition 40,061 liter (average) of
As stated above, the Kannur dairy
pre-chilled milk was received from
has undergone major upgradation
other units of the Milk Union. The
during the last decade. The dairy
dairy also imported 13,250 LPD
is one of the show pieces of
(average) chilled/processed milk
MRCMPU and it is managed
during summer/festival times from
professionally. In the process of
other states. The total inflow of
upgradation, the civil structures
milk during 2013-14 was 1,04,011
were modified and expanded.
LPD which works out to 69 per
Several equipments were added in
cent of the installed capacity.
the process line, and the quality
The Kannur Dairy processes three checking and monitoring. The
variants of liquid milk. In addition current stays of major equipments

can be found from table 6.2.
Table 6.2 Kannur Dairy: Existing Facilities and Equipments

Sl. No. Facility Unit Numbers
1 Production Block (Carpet area all floors)
1.3 Milk/Curd cold storage 200 1
1.5 Administration block (Total carpet area ) 120 1
1.6 Workers amenities block 100 1
2 Reception
196
Kannur District
Sl. No. Facility Unit Numbers

3.6 CIP system - Double circuit 20 KLPH 1
4 Fat Handling
4.2 Cream storage tank 2000 LTR 3
4.4 Ghee boiler 2000 LTR 1
4.5 Ghee settling tank 3000 LTR 3
4.6 Ghee storage tank 3000 LTR 3
4.9 Cream transfer tank 1000 LTR 2
5 Recombination
5.1 Emulsifying tank 5000 LTR
5.2 Homogenizer 10 KLPH 1
6 Milk Marketing
6.1 Pouch filling machine DHG mechanical 5000 PPH 8
6.2 Pouch filling machine auto SH mechanical 2500 PPH 1
6.3 Voltage stabiliser 25 KVA 1
6.5 Cold store conveyor 1200 cr/hr 1
6.6 Pouch crate washer 1200 cr/hr 1
6.7 Date coding device for pouch filling machines 60 IMP/Mnt
7 Service Equipment Capacity Quantity
7.2 Motor for refrigeration compressors (KV) 40 HP 3
7.6 Air handling unit for cold storage/deep
freezer (make/model/cap) 3 TR 3
10 Industrial Electrical Capacity Quantity
10.1 DG set 250 KVA 2
10.3 LT panel 415 V 1
11 Water Supply System Capacity Quantity
197
Kannur District
All the equipments are in full use. Traceability is a must in the case
The evaluation of current status of export consignments during the
and the need assessment shows procurement, production and
that some of the critical despatch. Mixing with normal
equipments require replacement. batches for local supply is not at
Taking in to consideration these all allowed. Hence a separate silo
aspects, the following equipments and fat handling equipments are
are suggested to be included under suggested for Kannur dairy under
NPDD (table 6.3). NPDD. All the other equipments
like milk pumps are proposed as
The Kannur dairy has recently got
spare to the existing ones.
export approval for ghee.
Table 6.3 Equipments and Machineries Proposed for Kannur Dairy under
NPDD (2014-2017)
Total
Sl. Milk Processing & No. of Unit Cost
Speciation Cost (Rs
No. Marketing Units (Rs)
in Lakh)
1 Milk pump 10 KLPH 4 50000 2.00
3 Tri-purpose centrifuge 10 KLPH 1 3500000 35.00
4 Milk silo 60 KL 1 2500000 25.00
5 Cream storage tanks 3 KL 1 800000 8.00
6 Cream pumps 5 KL 1 300000 3.00
7 Ghee boiler 2 KL 1 500000 5.00
8 Ghee storage tank 3 KL 1 700000 7.00
9 Ghee clarifier 2 KLPH 1 1500000 15.00
11 Crate washer 1200 TPH 1 1000000 10.00
12 Boiler 2 TON 1 3500000 35.00
13 Refrigeration compressors
30 TR 1 3000000 30.00
with accessories
14 Cold store (including
5 TR 1 2500000 25.00
equipments)
15 Date coding devices for pouch 60
2 150000 3.00
filling machines imp/mnt
16 LT electrical 0 1 3000000 30.00
17 DG set 320 KVA 1 2500000 25.00
Total 273.00
198
Kannur District
As per the FSSA, the cold store marketing wing has an Asst.
temp must be below 5 0C for Manager, Asst. Marketing Officer
storage of milk. Since the cold and four field staff. The
store in Kannur dairy is very old, Koothuparamba Depot is under a
an additional cold store is needed Marketing Organizer assisted by
along with strengthening of two field staff. The Kannur Dairy
refrigeration by adding high markets liquid milk and milk
efficiency compressors. Hence they products manufactured in the
are also suggested under the dairy plus the products procured
NPDD.
from the Product Dairy at
Kozhikode.
6.6 Milk Marketing
6.6.1 Introduction 6.6.3 Supply Chain

Milk marketing is one of the major The MRCMPU has more or less
functions of MRCMPU. The similar supply chain in all the
chapter on Milk Marketing districts. The milk and the milk
provides an overview of the products reach the consumers
marketing organization of from the processing units through
MRCMPU in Kannur district, the the retailers designated as dealers.
infrastructure available and the The liquid milk is directly supplied
sales achievements of liquid milk from the Dairy to the dealers and
and major milk products during the products through the
2013-14. The chapter also wholesalers. At the close of March
identifies the key issues and 2014, there were 1344 retail
problems and provides outlets and 19 wholesalers for milk
recommendations to address them. and milk products distribution in
Kannur district. A well developed
6.6.2 Marketing Organization intending and distribution system
The marketing wings attached to exists. The liquid milk and the
Kannur Dairy and Koothuparamba products are sold to the dealers on
Depot (Cold Storage) organize the advance payment. Credit facilities
marketing activities. The Kannur were extended to the dealers on a
199
Kannur District
limited scale. The milk and milk in Kannur district was 1.36 LLPD
products sold during 2013-14 are (Milma 1.20 plus 0.16 of the
shown in table 6.4. competitors). The sales of
The table shows that there is a
marginal (12% in three years)
accuracy cannot be vouched. The
growth in sale of milk while the
sales pertain mostly to the urban
growth in certain products- curd,
area and therefore the rural
ice cream and ghee- are
consumption is extra.
substantial.
Yet another way of calculating the
6.6.4 Market Size and Market market is by understanding the
Share of MRCMPU end user purchases. The sample
Market size is the measurement of survey conducted by the study
the total volume of a given market. group shows that the per capita
Market size calculated on a consumption among the rural
standard practice/ competitive people is 150 ml and that of urban
sales approach (bottom up 173 ml. The market size is
approach) shows that the market calculated as shown in table 6.5.
Table 6.4 Milk and Milk Products Sold in Kannur District
Sl. No. Milk/Products 2009-10* 2013-14
1 Liquid milk (LPD) 108062 120450

3 Ghee (Kg/month) 28415 30007
5 Butter milk (200 ml Pkts./day) 6979 8435
* Previous bench mark figures
200
Kannur District
Table 6.5 Estimation of Market Size for Milk Kannur District 2014
Sl. No. Description Rural Urban Total

1 Population Kannur district 882017 1640986 2523003
2 Cattle holdings % 18 50
3 Potential consumers (1/0.82) 723254 1640986 2364240
4 Proportion of population that consume
milk in Kannur (HH survey) (%) 80 93
7 Household demand LPD (5 x 6) 86790 264018 350809
8 Inst. demand (20% of urban demand) 0 52804 52804
9 Total demand (7 + 8) 86790 316822 403612
The MRCMPU marketed milk at products, they also act as a media

the rate of 1.2 LLPD. This works for improving the visibility of milk
out to 25 per cent of the market and milk products. The Milma
size which indeed is low. Hence Shoppe in towns can be
supports under the NPDD should considered as a bigger version of
all be geared up to improve the milk parlors to increase the
market coverage. visibility of the products and to
increase the sales.
6.6.5 Milk Marketing
Infrastructure Current
infrastructure provided under the
Status
CSS, the introduction of PUF
The table 6.6 shows the various
insulated vehicles in milk
support equipments and other
distribution routes and PUF boxes
logistics available in Kannur
in the retail outlets are worth
district for market promotion.
The milk parlors are positioned in the PUF containers under the
strategic locations to attract more IDDP scheme during yester years,
consumers to Milma products. the entire milk transport from
Apart from selling the Milma Kasaragod dairy has switched over
201
Kannur District
to PUF insulated vehicles. The energy consuming freezers. They

PUF boxes of varying sizes, 50-150 occupy less space, are easily
liter, provided at 50 per cent movable and are easy to clean. The
subsidy in the retail outlets boxes retain the low temperatures
together with the PUF bodied for about 3-4 hours during which
transport vehicles, ensure perfect the milk is generally sold out.
end-to-end cold chain and quality
Freezers, 200 and 120 liter
assurance dairy to consumer.
capacity, are provided to the
Our field exposure visits revealed
retailers at a subsidized price of Rs
that the retailers wholeheartedly
5000/- a piece for storing frozen
welcome the PUF boxes because
Milma products. Apart from ice
they are viable alternatives for the
Table 6.6 Status of Marketing Infrastructure in Kannur District
March 2014
Sl. No. Facility/Equipment Quantity

2 Wholesalers for products (No.) 19
3 Retail outlets of milk and products (No.) 1344
7 PUF vehicle containers (3 MT) (No.) 34
8 PUF vehicle containers (1.5 MT) (No.) 3
10 PUF boxes 50 liter (No.) 524
15 Shipper box for ice cream 33
18 120 LTR freezers (No.) 75
19 500 liter freezers 24
202
Kannur District
cream, milk is also sometimes is a wide gap between supply-

stored in freezer cabins. The takers demand. To take advantage of
for the freezers are many and these favorable factors and to
almost all the freezers are in use, safeguard the interests of the milk
field exposure visits and surveys producers in the district, a further
reveal. The Visi-coolers are expansion of the marketing outlets
provided at subsidized price to and development of an aggressive
store products like flavored milk, marketing strategy are essential to
cup curd etc. protect the interests of the milk
producers in the district.
The Kannur district is under
perpetual threat from the private Consumer awareness camps are
dealers. On the one hand, the milk being held and dairy visits
production is declining in the rural organized to explain the chain of
areas and on the other, the market activities involved from milk
for milk and milk products are procurement from farmers to sales
vertically expanding. Also the from retail outlets. The consumers
market analysis shows that there also get an opportunity to gather
Milk Parlor Kannur Dairy
203
Kannur District
first hand information on the cooperative organizations are the

quality assurance followed at real threat to Milma. They provide
various stages of milk reception, higher sales commission and
processing and marketing. incentives to the dealers and even
Advertisement boards and banners provide flexible credit. The
are exhibited in busy places for institutional segment is largely
publicity of the milk and milk within the hands of the private
products. The advertisement traders. At the same time, milk
activities are scale inadequate and production is livelihood intensive
are not reaching a large segment of to a vast majority of the marginal
the public particularly those in and sub marginal farmers of
rural areas. The milk marketing in Kannur district who depend on
Kannur district is increasingly Milma to market their milk. The
becoming competitive. The market MRCMPU has to tap the
study reveals that a huge part of unexploited market potential
the market remains unexploited particularly the rural market to
(see 6.5). Hence it is suggested increase the market share and to
that the consumer awareness net extra income for dairy
programs and the publicity development in the district. Hence
measures should cross the usual MRCMPU has to scale up their
styles and explore newer frontiers marketing activities in Kannur
to attract more and more district for which a few suggestions
consumers in to the fold of Milma. are placed below (table 6.7).
The table is more or less self

explanatory. A few items deserving
Recommendations
special mention are explained
The crux of the issues in Kannur
below.
is that the marketing organization
is inadequate to exploit the a. Milk Parlors
unsaturated potential and to Milk Parlors were established in
counter the competitors. The prominent public places during
private dealers and certain the first Phase of IDDP to promote
204
Kannur District
Table 6.7 The Suggested Infrastructure under Marketing in Kannur District

Total
Sl. No. of Unit
Depot/Parlor Cost (Rs
No. Units Cost (Rs)
in Lakh)
1 Milk parlor civil 15 50000 7.50
2 Milk parlor equipments 15 10000 1.50
3 Shoppe support 5 500000 25.00
4 Space in super markets 30 20000 6.00
5 Decorated mobile product vehicle 3 50000 1.50
6 PUF vehicle containers (3 MT) 7 250000 17.50
7 PUF boxes 25 460 liter 400 2000 12.00
8 Shipper boxes for ice cream 120 6000 7.20
9 200 liter freezers for dealers 120 13000 15.60
10 200 liter freezers glass top for
dealers 90 17000 15.30
11 120 LTR freezers 90 11000 9.90
12 500 liter freezers for dairy 20 23000 4.60
13 Deep freezers 320 liter 105 17000 17.85
14 Deep freezers 320 ltr. (Glass top) 90 20000 18.00
15 Visi-coolers 220 liter 90 20000 18.00
16 Visi-coolers 320 liter 75 30000 22.50
17 Advertisement & consumer
awareness LS 140.00
18 Canopy with eutectic freezer
subsidy 9 100000 9.00
19 Hoarding/traffic circle/wall
painting 6 100000 6.00
20 Banners at festival venue 300 200 0.60
21 Painting/Vinyl sticker - PUF
containers 45 20000 9.00
22 Support to milk stockiest (RD) 15 200000 30.00
23 Dealer club meet/orientation/
incentive 12 25000 3.00
24 Effluent treatment plant (ETP) 1 4000000 40.00
Total 437.55
the sale of milk and milk products. district. Therefore 15 more parlors
Buyers are served milk and milk are suggested to be established in
products in a consumer friendly the district (Rs 9 lakh).
environment. All the parlors started
b. Milma Shoppe
during Phase I are functioning well
Improving the visibility of Milma
and they provide the necessary
milk and products is important to
stimulus for higher sales of Milma
scale up its business. Improving
milk and milk products in the
205
Kannur District
the business is very crucial to a cost of 17.5 lakh for operating

sustain milk production and new routes.
MRCMPU have effectively
under the hard conditions in
demonstrated that PUF Boxes are
Kannur district. Keeping this in
the most suited and the cheapest
mind, MRCMPU started Milma
Shoppe in Kannur district. method to keep the cold chain
Shoppe works as a brand shop of uninterrupted from the point of
Milma with all Milma products origin to the point of consumption.
available at the outlet and it works Freezers are uneconomical to
round the clock. It has won the preserve milk. Moreover freezers
appreciation of one and all and is are capital intensive and expensive
found to be an effective tool to to maintain. The PUF boxes
publicize its products. From the supplied under the IDDP/SIQCMP
past experience of Milma, the are doing good service to this end.
Milma shoppe is an effective It is proposed that all the retailers
instrument to promote milk and be provided with new or additional
other products. It is suggested PUF boxes at a cost of Rs 12 lakh
that five more shoppe be started in to achieve 100 per cent cold chain
towns during the project period (Rs maintenance.
25 lakh).
Visi-coolers are excellent
c. PUF Bodies equipment to keep low
In order to give good quality milk temperatures of the products like
and milk products to the
flavored milk. Hence a few of them
consumers, MRCMPU started
are suggested as part of the
investing in PUF insulated vehicles
market promotion.
and PUF Boxes. At present the
entire processed milk transported e. Ice Cream Promotion
is in PUF insulated vehicles. Seven MRCMPU Ltd. is selling products
more PUF bodies are suggested at like ghee, curd, Butter milk, Milk
206
Kannur District
Peda, Palada Mix, Flavored milk f. Advertising and Consumer

and ice cream. The share of milk Awareness
products in the total turnover of Kannur district is facing fierce
the Union is around 24 per cent competition from private dealers,
and is very crucial for its financial from within and outside the state.
security and liquidity. Among all Sustaining and further developing
the products, ice cream is the the market is crucial to the very
most promising one. Unfortunately sustenance of milk production in
Milma now has only less than 5 the district as well as the state and
for food security and livelihood
per cent market share in the ice
support. Unfortunately, not
cream segment. The major hurdle
enough efforts are made in this
identified in the market expansion
direction and it indirectly
in Kannur district is the absence
causes several socio-political
of user friendly and energy saving
repercussions in the field of dairy
freezers at the retail points. During
production. Therefore it is
IDDP Phase I, SIQCMP the Milk
strongly recommended that an
Union invested on retailer level
aggressive consumer education
freezers and as a result the sales
cum advertisement program
of ice cream have increased from
through all channels of media be
3684 liter/month in 2010-11 to
launched in Kannur district to
14,404/month in 2013-14. A three
serve two purposes market
pronged market intervention-
promotion and awareness creation
appointment of more wholesale amongst all the sections of people
dealers, equipping all retail points and as a tool for socio economic
with suitable size freezers and improvement (Rs 437.55 lakh).
wide publicity through TV
channels- is suggested. In 6.6.7 ETP
addition, canopy fitted vehicles are The ETP is meant for Kannur
recommended for special sales Dairy. The existing ETP is
promotion in tourist spots and inefficient and scale inadequate to
prominent on-road locations. handle the effluents from the
207
Kannur District
Dairy. As the Kannur is gearing up being looked after by the P&I Unit
for production enhancement and functioning in Kannur Dairy. The
scaling up of daily processing, the Unit has established a network of
capacity enhancement of ETP is village level DCSs in the district to
inevitable. From the statutory and procure milk from the dairy
hygiene point of view, it is farmers. The organization of milk
suggested that a higher capacity procurement is explained as fig.
ETP be established at Kannur. 6.3.
The Cluster DCS deliver the milk

6.7 Milk Procurement
to the nearest BMC. BMC DCSs
6.7.1 Organization of Milk chill the milk before transporting
Procurement to Kannur dairy in insulated road
Milk procurement is one of the key tankers. The Dairy in turn
functions of MRCMPU. The milk processes and markets the milk in
procurement in Kannur district is
Fig. 6.3 Organization of Milk Procurement in Kannur District
Milk
Producers
Cluster
BMC DCSs DCSs Non BMC DCSs
(126)
(23) (7)
`
KNR DAIRY
Key words: BMC DCSs Dairy Cooperative Societies having Bulk Milk
Coolers; Cluster DCSs: DCSs attached to BMCs for milk supply.
KNR: Kannur
Figures in brackets- Number of DCS
208
Kannur District
towns and other urban procedures. The average

agglomerations within and outside procurement per DCS was 444
the district. The whole chain of LPD and per supplier 5.62 LPD
activities- procurement, processing during 2013-14. The local sale was
and marketing - is well 19,853 LPD which accounted for
orchestrated and well executed. 29 per cent of the daily
procurement indicating an
6.7.2 Profile of DCS in Kannur increase in demand in the local
District area. The rate of procurement per
A majority of the DCSs in Kannur DCS is reasonable in comparison
district are Anand Pattern to the other districts in Kerala.
Cooperative Societies (APCOS). However, the DCSs classified
They are producer cooperatives according to the daily procurement
managed by a democratically shows that 12 DCS (8%) were
elected Board of Directors. At the collecting less than 100 LPD and
close of March 2014 the district yet another 20 (13%) DCSs
had 156 functional APCOS. In between 100 and 200 LPD. The
addition, there were twelve non- study showed that those DCSs
APCOS functioning directly under were not economically viable. The
the department of Dairy reasons for the poor procurement
Development. are that they are not in ideal
location, non-potential suppliers
Table 6.8 shows the profile of the
DCSs in Kannur district. From
farmers have better option for
amongst the 46,773 registered
selling milk. The relocation of
milk producers in the district, on
some of those DCSs needs to be
an average, only 12,330 (26%)
considered.
poured milk in the DCS during
2013-14. The proportion pouring Out of the 156 DCSs, only 7 DCSs
milk is low because the non- supplied milk directly to the dairy
producers are not removed during 2013-14. All others
from the DCS rolls due to supplied milk to the BMC DCSs or
the cumbersome mandatory Cluster DCSs. Seventy DCSs, 45
209
Kannur District
Table 6.8 Profile of DCSs in Kannur District 2013-14

Sl. No. Description Quantity
2 No. of farmer members/DCS 300(46773)
3 Av. number of suppliers 79 (12330)
7 Av. procurement/DCS (LPD) 444.25
10 Av. price - Local sales (Rs/liter)
11 No. of DCs collected <100LPD 12
16 No. of DCS making one time milk collection
from farmers
17 Av. fat% 3.99
18 Av. SNF% 8.3
19 No. of BMC DCS (31-3-2014) 23
20 No. of BMCs 23
25 No. of DCS provided analyzer only (including
DDD) 77
27 No. of DCS provided EMT only (no analyzer) NA
28 No. of DCS provided Gerbers test equipment
only 13
33 No. of DCS having adequate water supply
arrangements 125
37 Milk spoiled (LPD)
Note: Figures in brackets total numbers
210
Kannur District
per cent of the total DCSs only shows. The assessment is that
functioned in own buildings. only a 10 per cent of the left out
Others are in rented buildings. wards have the potential for
Almost all of them have electricity starting new DCSs.
and water supply arrangements.
The geographical coverage is
The absence of own buildings and
excellent, but the number of
the lack of adequate water in a
farmers pouring milk per DCS is
few, are identified to be some of
not encouraging.
the major constraints in
maintaining good Hygienic
6.7.4 Milk Quality and Quality
standards of milk.
Administration
Unlike in other districts of The MRCMPU follows two-axis
Malabar, only 43 per cent of the pricing system ie, farmers are paid
DCSs possess AMCUs. A large on the basis the milk fat and the
number off DCSs employ EMTs SNF in the milk. The village
and LRs for quality determination. cooperatives are equipped to
determine the compositional
6.7.3 Coverage quality, fat and SNF. A few DCSs
The Kannur district has 1215 are also equipped to detect added
Panchayat wards of which almost preservatives, adulterants and
70 per cent are under milk neutralizers, apart from MBRT
procurement, the recent survey estimations.
Table 6.9 Kannur District Av. Milk Quality 2013-14

Parameter Value
Fat % APCOS 3.99
Fat % non-APCOS NA
SNF % APCOS 8.3
SNF % non-APCOS NA
Av. MBR time BMC DCSs (Mts) 150
Av. MBR time direct DCSs (Mts) 133
No. of APCOS using/supplied AMCUs 68
129
testers & LRs
13
test & LRs
211
Kannur District
Because of the quality based MBRT of the milk supplied

pricing system, the quality through the BMC DCSs, 150
assessment in DCSs is crucial in minutes, is good while the MBRT
determining the milk price for the in non-BMC DCSs, 50 minutes, is
farmer, in winning their confidence very poor. In the years to come,
and the overall sustenance of dairy both the compositional and the
production. All the cooperatives in bacterial quality will have a telling
Kannur follow either of the three influence on the marketability of
known procedures of quality milk and therefore the Union
assessment namely conventional needs to pay more attention to
milk testing (Gerbers test for fat improve the bacterial quality. The
and LR for SNF determination), best way to usher in clean milk
Milk-O-Tester for fat and production is to pay for better
Lactometer for SNF and Automatic bacterial quality. It is suggested
Milk Collection Units (AMCU). Of that an incentive for good quality
these, the AMCUs are the most milk may be introduced as a
desirable because they are beginning towards this end.
convenient, error proof, quick and
transparent. The table 6.9 shows 6.7.5 Key Issues and
that out of the 156 APCOSs, 68 Suggestions
possess AMCUs. Only less than Under the IDDP and SIQCMP a
half of the DCSs possessing total of Rs 327.21 lakh has been
AMCUs regularly use them invested in Kannur district for the
reportedly due to some snags in procurement activities ranging
the analyzers. from supply of BMCs to milking
vessels and capacity building of
On the quality front, the procured
farmers and elected members. The
milk has 3.99 per cent fat, and
IDDP support is available for two
8.30 per cent SNF which are lower
more years (2014-15 and 2015-
than those in the other districts of
16). Therefore the support
Malabar. Farmer education and
requested under the NPDD is
introduction of AMCUs can further
meant to stabilize and carry
improve the quality. The average
212
Kannur District
forward the achievements already include a provision for subsidizing

made. The suggested components new DCS buildings at the rate of
and the estimated costs are shown Rs. one lakh per DCS, Rs 18.0
in table 6.10. lakh. Eighteen DCSs are identified
to have the land and financial
6.7.6 DCS Buildings capacity to do this with the
As pointed out in the forgoing support mentioned above during
sections, a sizeable number of the project period (table 6.10).
DCSs function in rented buildings.
Most of them do not have even the 6.7.7 Water Supply System
minimum facilities for hassle free Developing water sources and
milk collection and dispatch. BMC water supply are becoming
installation is virtually impossible increasingly important in Kannur
and effluent treatment is a serious district. Most of the DCSs find it
issue. Therefore, it is suggested to difficult to mobilize adequate
Table 6.10 Suggested Milk Procurement Activities in Kannur District

Total Cost
Sl. No. of Unit
Milk Procurement (Rs in
No. Units Cost (Rs)
Lakh)
3 Bore well 9 25000 2.25
4 Open well 15 10000 1.50
7 Automatic milk collection
units 3 125000 3.75
14 Subsidy to cattle feed
transport 45000 400 180
15 Incentive to better quality
milk 1533000 0.5 7.6
Total 233.20
213
Kannur District
capital for investment. Hence a arrangement because of the

subsidy of rupees sixty thousand convenience, easy access and the
per unit is suggested for nine credit facility. The transport of
DCSs at an estimated cost of 5.4 cattle feed from the feed plants to
lakh. Water harvesting, installing the DCSs entails cost. It is
water tanks and pumping facilities suggested to subsidize the
are envisaged under the support. transport cost. The estimated
In addition, digging nine bore wells quantity of cattle feed sold in
at the rate of rupees twenty five Kannur district comes to one
thousand per unit and fifteen open lakhs MT in three years. An
wells at the rate of rupees ten amount of Rs 0.4/kg is the average
thousand per unit are also transport cost. This may be
suggested for Kannur district provided as a subsidy for cattle
(table 6.10). feed so that the landed price of
cattle feed remains low (table
6.7.8 Automatic Milk Collection 6.10).
Units
About 68 DCSs use AMCUs for 6.7.10 Incentives for Good
milk collection and quality Quality Milk
checking. It is important to have The SIQCMP has instilled
stand-by units for replacement in considerable enthusiasm among
case of breakdown. It is suggested the dairy farmers to produce good
to include three units as quality milk. As a result, the
service/replacement units. The bacterial content in raw milk has
estimated cost is Rs 3.75 lakh reduced significantly. The low
(table 6.10). bacterial count improves the
quality especially the organoleptic
6.7.9 Subsidy for Cattle Feed properties (taste and flavor) of the
Transport milk, apart from heat stability and
Cattle feed is being sold through longer shelf life. The farmers are
the DCSs. The farmers not compensated for their extra
wholeheartedly welcome the efforts to produce clean milk. As a
214
Kannur District
beginning, it is proposed that the the sheds are a mere make shift
top 2 per cent of the milk shall be shelter with mud/wood floor,
paid an incentive of 50 ps per liter tile/asbestos/PVC/Silpaulin roof,
of milk. The daily procurement is dark and musky, all in one floor
near to 70,000 LPD and the (no urine or dung channel)
incentives at the suggested rate and without any watering
works out to Rs 7.6 lakh. arrangements. The cows remain in
this shelter most of the time (no
6.8 Cattle Shed and Farm grazing). The hind quarters and
Machineries the udder often remain soiled by
Well constructed cattle sheds are a dung and mud. Udder and teat
pre-requisite for clean milk injury is common. Feeding of water
production. A dirty cattle shed is only occasional. Therefore, any
contributes substantially towards support for good cattle shed is a
external contamination of milk and welcome gesture towards the
entry of microbes in to the udder poorest of the poor dairy farmers
causing sub-clinical/clinical in Kannur district.
mastitis. A well constructed cattle

Considering those aspects, the
shed should also provide
Milk Union roped in funds for
operational easiness and animal
cattle shed modification and
comfort. The shed should have
construction of new cattle sheds
adequate space for the animal,
under the IDDP and SIQCMP
manger, feeding alley, urine and
schemes (Table 6.11). During the
dung channels. The shed must be
course of the field work, we found
well ventilated, easy to clean and
that the floor of these cattle sheds
should have transparent roofing
is well made using the allotted
sheets interspersed with opaque
funds. However, construction of
ones to permit sunlight, and
new cattle sheds is very expensive
facility for continuous water
in Kerala due to the high labor
feeding. Not many cattle sheds
cost and the cost of materials. The
conforming to the above standards
budget provision of Rs 10,000/- is
exist in Kannur district. Most of
thoroughly inadequate and will not
215
Kannur District
meet even 10 per cent of the dairy farming. Considering the

overall cost of a new cattle shed. economic and social significance of
Therefore, it would be more dairying, the MRCMPU has
sensible if the support could be initiated providing financial
extended for renovation and support for farm mechanization.
modification of the cattle sheds The Union has been providing and
with watering facility rather than channeling support since a few
insisting on a new cattle shed. years. Table 6.11 shows the
physical achievements in Kannur
Table 6.11 Farm Equipments
district in the immediate past.
Supplied to Farmers in Kannur
District It is suggested that the assistance
Sl. may be continued and funded
Item Quantity
No.
under NPBBDD. The components
1 Cattle sheds 198
suggested, the quantity and the
2 Milking machines 26
3 Rubber mats 833 estimated cost can be found in
4 Pressure washers 28 table 6.12.
5 Gen sets 5
6 Cow drinker 10
6.9 Cattle Induction
7 Chaff cutter - Motorised 2
The absence of easily accessible
On the face of the shrinking family loan at reasonable interest from
size, the changing status of women banks remains a major obstacle
in society and better opportunities for the new entrepreneurs. Cattle
for employment in other sectors of induction has been resorted to by
the economy, the availability of several development agencies in
labor for dairy farming, is fast the state as a support scheme. The
declining. Hired labor for dairy MRCMPU too distributed 450
farm activity is uncommon in heifers to 90 farmers in Kannur
Kannur district. Hence reducing district to promote cattle rearing in
the labor input and making the the district.
daily chores less arduous are

Cattle keeping in the district is
crucial for the very sustenance of
largely a job of the economically
216
Kannur District
Table 6.12 Cattle Sheds and Farm Machineries Proposed under NPDD for
Kannur District
Total
No. of Unit Cost
A Cattle Shed Cost (Rs
Units (Rs)
in Lakh)
B Cattle Farm
Mechanization
3 Gen set 30 75000 22.5
5 Rubber mats 750 2500 18.75
Total (4.0) 80.00
weaker sections of people (BPL Fifty percent of the cows and

families) and women. It continues fifty percent of the heifers
to be a major source of securing proposed are reserved for
their livelihood especially women. women.
Therefore, the following number of Women members will be
cattle (table 6.13) is recommended allowed 75 per cent of price
to be inducted with the support
subsidy and the others 50
under NPDD.
per cent.
Only the BPL families will be The transportation cost
included for cattle induction shall be met in full under
activity. the scheme.
Table 6.13 Cattle Induction Program Suggested under NPDD for
Kannur District
Unit Total
Sl. No. of
Cattle Induction Cost Cost (Rs
No. Units
(Rs) in Lakh)
1 Capital expenditure 0
4 Transportation cost 240 2000 4.80
Total 92.55
217
Kannur District
Seventy five percent of the automatic data capturing

Insurance premium shall be system, software for easy
included under the scheme monitoring of FSMS and a high
and the balance will be capacity pressure jet are
beneficiary contribution. proposed in the Project.
The Kannur dairy is already an

ISO:22000 certified dairy by
Laboratories
DNV. The recertification and
surveillance audits and certain
been invested under phase I & II
equipments and software for the
of IDDP and SIQCMP schemes
maintenance of these systems
and Rs 12.12 by the Milk Union
are to be acquired. The amount
in upgrading the Kannur dairy
suggested is towards this end.
lab. The lab has reasonable
facilities including equipments Although the DCS labs are
for routine tests. Therefore, equipped to carry out the MBRT,
laboratory equipments are not a system to carry out the test by
proposed in the project. But as a the DCS staff and to link it on
part of modernization of the line with the central lab are yet
hygienic systems in the dairy,
Table 6.14 Establishment of Laboratories under NPDD in Kannur District

Total
Component Cost (Rs
No. Units (Rs.)
in Lakh)
2 Purchase of laboratory furniture
(set) 1 500000 5.00
HACCP/ISO 1 500000 5.00
7 Sub-total (6.2) 1 0 5.00
Total 54.00
218
Kannur District
to be implemented in full. Any used by the farmers and they

further upgradation of the DCS whole heartedly welcome the
labs needs to be considered only component. It has helped to
after fulfilling this requirement. improve the initial quality of milk.

As per the norms, many more
6.11 Clean Milk Production farmers are to receive the vessels

in Kannur district. Therefore the
Kits for Beneficiaries
utensils and vessels may be
Under the CMP scheme the
supplied to those farmers who are
MRCMPU supplied the articles
yet to receive them through the
shown in table 6.15 to the farmers
DCS free of cost under the NPDD.
in Kannur district.
The numbers suggested and the
The distribution of CMP kits to financial requirements are given in
farmers made little impact on table 6.16.
clean milk production because the
Milking machines are very useful
farmers discontinued the use of
for the farmers. Our field exposure
chemicals and disinfectants once
visits show that almost all the
the free supply was stopped.
beneficiary farmers use the
Hence the supply of free
machines although continuous
detergents/chemicals for udder/
service back up is essential. It is
utensil cleaning is not
suggested that fifteen milking
recommended.
machines may be supplied to the
On the other hand, the stainless
farmers at subsidized (75%) rate
steel utensils (the milking utensils
under NPDD. It is also suggested
and carrying vessels) are being
Table 6.15 CMP Kits Supplied under SIQCMP Scheme in Kannur District
Sl. Financial
CMP Kits Physical
No. (Rs in Lakh)
1 Detergents & chemicals to DCSs lot 12.12
219
Kannur District
Table 6.16 CMP Kits and Milking Machines suggested under NPDD for
Kannur District
Total
Sl. No. of Unit
Component Cost (Rs
No. Units Cost (Rs)
in lakh)
1 Stainless steel utensil kit/accessories 1500 400 6.0
2 Electricity operated milking machine
& other equipments for hygienic milk 15 55000 8.25
handling at village/farmer level
Total (7.0) 0 17.25
that a few hand operated The TIS was a major component

machines shall also be supplied to under the IDDP and SIQCMP
the needy farmers after making a schemes implemented in the
scientific and methodical field trial district. The major components
in association with KVASU. and the financial and physical
achievements in Kannur district
can be found in table 6.17.
(TIS) Those services are under the state
The technical input services domain and the line departments
include support for animal have a variety of schemes for
breeding, health care including supporting those activities. The
prophylaxis, fodder development efficacy of AI and health care
and other associated activities for services at farm points, however,
the participating farmer members. are debatable, the HH survey
Table 6.17 Technical Input Services: Components and Achievements in

Kannur District
Financial
Union/
Physical IDDP/ Total (Rs
Component Beneficiary
Achievements SIQCMP in Lakh)
(Rs in Lakh)
(Rs in Lakh)
Technical input
services 200 26.40 11.31 37.71
220
Kannur District
shows. Since some of those fodder production is a failed

services are in the state domains, attempt in Kerala. The reasons are
a change in the service delivery many, the most important being
systems requires policy decisions. the land fragmentation and the
To avoid duplication, such services declining farming activities. On the
(AI, health care, home stead fodder other hand, large land holdings
production, etc.) are not suggested and fallow lands are potential
to be included under the NPDD. sources for fodder production
The components suggested, the fodder as a value added crop in
most essential ones, on a priority irrigated land. The fodder so
basis can be found in table 6.18. produced shall be marketed
among the DCSs members at cost
The LN containers are for
price. The scheme shall be a
replacement of the ones in use in
flagship program of NPDD.
AI Centers under the Milk Union.
The animal health and breeding
6.13 Information and
input camps include fertility
Communication
management of dairy cows among
Technology Networking
the farmers. It is a DCS based
The MRCMPU, apart from being a
program centrally controlled and
farmers organization, is also a
multi- crore business concern. Its
Table 6.18 Technical Input Services Proposed in Kannur District under
NPDD
Sl. No. of Unit Total Cost
Component
No. Units Cost (Rs) (Rs In lakh)
1 Liquid nitrogen
containers 6 30000 1.80
2 Audio visual kits etc 1 200000 2.00
3 Animal health &
breeding input camps 180 5000 9.00
4 Chaff cutter 36 20000 7.20
5 Commercial fodder
production 10 100000 10.00
Total 30.00
221
Kannur District
widely distributed. The application system functions as a client

and full utilization of information server architecture network
and communication technology with Six centers, one in each
alone will enable the MRCMPU to district (Palakkad, Malappuram,
keep abreast with its competitors. Kozhikode, Wayanad, Kannur,
It is also essential that the whole Kasaragod) and a central server
business of MRCMPU is system linking all these six
transparent to their stakeholders, centers. The data and information
the farmers. Unfortunately the will be made available to all the
Milk Union is in the nursery stage districts and DCSs. The details of
of exploiting the I&C technology. the proposed system are given as
The current status is that the annex-1. The expenditure is to be
dairies are computerized and shared among the district projects.
internally networked (intranet). The share of Kannur district is
The milk Union proposes to illustrated in table 6.19.
expand the I&CT so that the

Kannur District
Unit Amount
Sl.
Expense Head Rate (Rs Units (Rs in
No.
in Lakh) Lakh)
Purchase of computer/HHB
1 Desktop 0.50 13 6.50
2 Laptop & Netbook 0.60 10 6.00
3 Hand held range of computers 0.30 38 11.40
4 A4 size flat bed scanner 0.05 2 0.10
5 Rack server 9.00 2 18.00
6 42 U server rack 1.00 0.00
7 Server storage device 8.00 1 8.00
8 Tape backup 8.00 1 8.00
9 UPS for server 7.00 2 14.00
10 Weblogic server suite purchase 15.00 1 15.00
11 Oracle database 12C 15.00 1 15.00
12 Antivirus software 1.00 1 1.00
13 Hardware & networking 10.00 1 10.00
14 Software consultation charges (AMC) 5.00 1 5.00
15 Onsite software analysis and evaluation
for union and DCS purchase 5.00 1 5.00
Total 123.00
222
Kannur District
6.14 Manpower Development Kannur district. The DCS staff has

been trained at the HRD centre,
Kozhikode under MRCMPU on the
relevant subjects. The trainers
included those from within the
organization and also those invited
from other organizations. The
reduction, energy conservation
duration ranged from one to three
and product improvement by
days and the subjects handled
MRCMPU. Apart from Union
were those relevant to the
employees, the staff and the
concerned groups.
elected representatives of the
DCSs and the Board are also The CD program includes training
trained on appropriate areas. in village cooperatives followed by
a visit to the processing
The table 6.20 shows the numbers
Dairy/cattle feed plant. Farmers
trained in various categories from
Table 6.20 Employees and Elected Members Trained in Kannur

District
Number of
Sl.
Course Persons
No.
Trained
d Management orientation 84
5 Training on AI 29
8 FIP 764
10 Training in marketing 18
223
Kannur District
are the trainees. The Farmers starting from Supervisors,

Induction Program is normally should be hands-on training
carried out in the HRD Centre, exclusively on subjects and
Kozhikode. The Dairy Animal skills relevant to them.
Management Training to the
20. The farmers training should
farmers has been under taken in
be organized in villages
APCOS DCSs. The training
themselves with the support
of LSG and the Village
visit to a few well run farms. The
Extension Workers under
farmers were given opportunities
MRCMPU.
to see for themselves the success
21. All out and comprehensive
and failure stories.
The training for MRCMPU Eradication, Clean Milk
employees is arranged by the Head Production for farmers,
Office in the institutions of repute Village Extension Workers
in India, both inside and outside and DCS employees should
the state. An interaction with a be initiated on a project mode
test group showed that the and the results closely
trainings were partially useful in watched and monitored.
upgrading their skill and
knowledge.
An amount of Rs 23.47 lakh has
been spent on various training
knowledge on production and
programs from IDDP and CMP
marketing management.
Phase I and II in Kannur district.
They should be provided
excellence outside the state.
Suggestions
19. The future training 23. The thrust of capacity
programmes especially those building of higher level
for the middle level employees employees should be on
224
Kannur District
Modern Management Systems required to maintain smooth

rather than on technical processing/production operation.
subjects. They should be The working Capital requirement
exposed to new developments of the Union is fluctuating
in the dairy sector elsewhere throughout the year depending on
in the country (eg. Schreiber local milk procurement. During
Dynamix) to widen their lean season the Milk Union is
vision and outlook. procuring large quantity of milk

from other states for which
payments are made in advance. In
phased out.
addition, SMP is to be stocked to
The courses suggested and the meet any contingencies.
estimated costs are given in table
During flush season funds are
6.21.
needed to stock ghee, converted
SMP, cream, etc. which are
6.15 Working Capital
produced in excess of normal
Kannur District
market requirements. Union is
Kannur Dairy shall maintain supplying cattle feed and other
minimum quantity of finished inputs to the societies on credit
products at all times to ensure basis. Present supply of cattle feed
uninterrupted sales. Minimum to societies is more than 1000 MT
quantity of all raw materials, per month. It is expected to
consumables packing materials, increase significantly in the
stores and spares, etc. are coming years.
Table 6.21 NPDD HR Kannur District 2014-15 to 2016-17

Total
Sl. No. of Unit
Name of Course Units Cost (Rs
No. Units Cost (Rs)
in Lakh)
1 CD programme 6 80000 4.80
2 Training on mastitis Person 600 300 1.80
3 Training DCS employees &
elected members Lot 20.00
Total 57.6
225
Kannur District
Table 6.22 Milk Collected from Kannur District, Milk Value for 21 Days
Average Total Milk Total Milk
Milk Procurement (LLPD)
Milk Value Value
Days
2013-14 2014- 2015- 2016- Price (Base Year) (EOP)
(Actual) 15 16 17 (Rs.) (Lakh) (Lakh)
0.51 0.54 0.6 0.65 28.88 21 309.30 394.21
Union is at present resorting to The Union shall meet this expense

short-term loan from banks to from internal sources if working
meet its working capital capital for SMP, cattle feed
requirements. As the volume of purchase etc can be funded under
business is increasing, the NPDD as a one-time assistance. A
dependence on bank loan will be total amount of Rs 117.30 lakh
more in the coming years. (table 6.23) is suggested towards
the Working Capital (Purchase of
Value of 21 days milk collected
milk powder, cattle feed and
from the societies by the Malabar
packing material) for Kannur
Union is more than Rs 309 lakh in
District. The amount suggested is
the year 2013-14 which is
lower than the amount required to
expected to increase to Rs 394 in
pay the milk value for 21 days
the next three years (table 6.22).
(table 6.22).
Table 6.23 Working Capital Requirement for Kannur District
2014- 2015- 2016- Total

No. of Unit
Components Unit 15 (Rs 16 (Rs 17 (Rs Cost (Rs
Units Cost
Lakh) Lakh) Lakh) Lakh)
Purchase of milk
powder KG 28000 300 24.00 24.00 36.00 84
Purchase of
packing material KG 3000 210 2.10 2.10 2.10 6.3
Purchase of
cattle feed MT 150 18000 9.00 9.00 9.00 27
Total 35.1 35.1 47.1 117.3
226
7. KASARAGOD DISTRICT
Contents

7.4 Milk Chilling Facilities in Kasaragod District ..............................235
7.5 Milk Processing .........................................................................236
7.6 Milk Marketing ..........................................................................242
7.10 Establishment of Laboratories .................................................261
7.11 Clean Milk Production .............................................................262
7.13 Information and Communication Technology Networking ........265
7.15 Working Capital Kasaragod District .......................................269
Kannur District
Kasaragod District
228
Kannur District
229
Kannur District
Executive Summary
Kasaragod, while not a front line processing capacity of the dairy at

district in dairying in Kerala, has a Kanhangad. The installed capacity
vast majority of its population is only 30,000 LPD, but during
dependent on livestock rearing. 2013-14 the dairy processed
However, the period since 2000 35,530 LPD. At the current growth
has witnessed a serious setback rate of 7 per cent per annum the
with the cattle numbers declining processing capacity will have to be
55 per cent (from 2001 to 2012) increased to 45,000 LPD in the
and milk production falling by 27 next three years. The
per cent from 1997-98 to 2011-12. enhancement of capacity and
Market survey shows that modifications will cost Rs 282.0
demand- supply gap is widening in lakh.
the district and is currently of the
The MRCMPU has built up an
order of 1.8 LLPD. The share of
extensive network of DCS and
MRCMPU is under 19 per cent
BMCs for milk procurement and
which is not satisfactory. The Milk
testing. While all BMC level DCS
Union is facing fierce competition,
have facility for MBRT estimation,
including those from the
the field level milk testing requires
neighbouring Karnataka. Hence,
further refinement. The major
an aggressive marketing strategy
constraints identified are lack of
with proper infrastructure
convenient buildings for DCS,
development, periodic market
inadequacy of good quality water,
survey on consumer preferences,
lack of incentives for clean milk
product development and
marketing is called for. The
feed transport. The procurement
estimated cost of market
support programmes suggested in
promotion works out to Rs 382
Kasaragod would cost Rs 449 lakh.
lakh.
It is recommended that a central
One of the limitations of MRCMPU milk testing lab be established at
in Kasaragod is the low milk the Kozhikode dairy by pooling the
230
Kasaragod District
funds from all the districts commercial fodder production at a

eliminating duplication of cost of Rs 40.15 lakh. Along with
investments. The estimated cost is these programmes the extant HRD
Rs 32.00 lakh. through training and skill
development may also be
On the production front, one of the
continued but at a lower scale, the
major problems in Kasaragod is
cost of which is expected to be Rs
the low motivation among the poor
27.4 lakh.
and SC/ST groups in cattle
keeping. In order to attract a larger MRCMPU needs to build an
number from among these groups, effective information sharing and
a cattle induction programme communication system by
estimated to cost Rs 92.55 lakh is networking various units and
suggested. Among the cattle DCS. The suggested system- a
keepers, lack of proper cattle client server architecture network
sheds and absence of farm with a center at each district
machineries too is a problem. (Palakkad, Malappuram, Kozhikode,
Modernizing old cattle sheds, Wayanad, Kannur, and Kasaragod)
supporting new sheds and and a central server system linking
supplying machineries and all the six centers - will make data
equipment costing Rs 70.0 lakh is and information available to all the
suggested. The other farmer districts and DCS. The estimated
programmes suggested are cost is Rs 115.80 lakh.
distribution of stainless steel
Abstract of suggested programmes
utensils, milking machines, animal
is as follows.
breeding and health cover and
231
Kasaragod District
Amount
Component (Rs in Lakh)
Cattle sheds and farm mechanization 80.00
Establishment of labs 32.00
CMP kits 17.65
Technical input service 28.20
Information and communication networking 115.80
HRD 57.45
Total 1536.60
232
Kasaragod District
7.1 General Features holdings are marginal (less than 2

The district of Kasaragod located in ha) and their share in the total
the northern tip of Kerala was cultivated area is 70 per cent. In
carved out of Kannur in 1984 and hilly areas the important crops are
occupies an area of 1992 sq.km. It rubber, cashew and ginger. In the
is bordered in the north and east skeletal plateau areas, cashew
by Karnataka State, Kannur trees are cultivated, while in some
district in the South, and Arabian patches, areca nut, pepper and
sea in the West. Based on physical cocoa are grown. In the coastal
features, the district can be divided tract, paddy, coconut, areca nut,
into three natural divisions - the cashew, tobacco, vegetables and
lowland bordering the sea, the tapioca are cultivated.
midland consisting of the
Livestock rearing is a subsistence
undulating country and the forest-
activity and cattle are the
clad highland on the extreme east.
predominant species with farmers
For the purpose of administration
adopting crossbreeding of cattle as
the district is sub divided into two
a means of genetic improvement
Taluks, Hosdurg and Kasaragod
for higher milk yield. But
and seventy five villages. The
Kasaragod has the highest
district has one District Panchayat,
proportion of native cattle among
six Block Panchayats, seventy five
all the districts in the State.
Gram Panchayats with a total of
Recently there has been growing
600 wards and two Municipalities
interest to promote the native
with seventy five wards. The district
cattle of Kasaragod as a breed
houses 13.07 lakh people and has
Kasaragod Dwarf.
a density of population of
656/sq.km. (2011 census). The Department of Animal
Husbandry is the major service
Agriculture forms the mainstay of
provider for cattle breeding and
the population of the district. The
heath care. The Department has
average land holding size is 0.469
one DVC, two RAIC, six Veterinary
ha. Nearly 95 per cent of the land
Hospitals, thirty three Veterinary
233
Kasaragod District
dispensaries and 245 AI centers in and cows in milk by 58 per cent.

the district. The DDD also has its The in-milk buffalo had mixed
presence in the district with a fortunes. Between 1996 and 2007
district officer at Kasaragod, four the numbers sharply declined from
Dairy Extension Service Centers, 3943 to 800 and marginally gained
and one Quality Control Unit. The between 2007 and 2012. Although
MRCMPU has a dairy at the accuracy of data on cattle
Kanhangad with a capacity of numbers is questionable, it is
30,000 LPD with procurement and certain that many dairy farmers
marketing division under it. opted out of dairying in the recent
past due to several factors, both
7.2 Trend in Cattle Population economic and otherwise.
The cattle population in the
district declined between 1996 and 7.3 Trend in Milk Production
2012 (Fig. 7.1), with both the total According to ISS estimates (Fig.
and cows in milk showing 7.2) - the annual milk production
declines; the total cattle increased from 70.62 thousand MT
population declined by 55 per cent to 81.66 MT between 1997-98 and
Fig 7.1 Cattle population Kasaragod District

(source ISS, DAH. GOK)
250000
200000
N u m b ers
150000
100000
50000
0
1996 2003 2007 2012
Total Cattle 192866 143637 82604 87824
Cows in milk 45261 38541 25525 19200
Buffalo in milk 3943 463 800 1400
234
Kasaragod District
Fig 7.2 Milk Production Kasaragod district

(source ISS DAH GOK)
100
90
80
70
M ilk '000M T
60
50
40
30
20
10
0
97-98 2001-02 2004-05 2008-09 2011-12
70.62 81.66 66.14 88.17 51.94
2001-02, declined to 66.14 that the observed increase in milk

thousand MT by 2004-05 and procurement is due to other
made spectacular recovery and factors phasing out of traditional
increase to 88.17 thousand MT by milk disposal channels, increase in
2008-09. But the latest estimate of number of APCOS over the years
the DAH shows that milk and consequent increase in
production again fell to an all time procurement volume of MRCMPU
low of 52 thousand MT in 2011- (before he formation of APCOS the
12. However the milk procurement milk was being sold in local
figures of MRCMPU, for Kasaragod market through vendors, direct
district (see the graph below) producer to consumers and
shows that the milk procurement traditional societies selling milk in
from the Kasaragod district is in towns for which there was no
sharp increase from 1994-95. account or data). In any case the
Although this could be construed accuracy of the ISS data is
as direct indication of increased questionable.
milk production, it is also possible
235
Kasaragod District
7.4 Milk Chilling Facilities in provide the milk chilling facility in
Kasaragod District Kasaragod district. The position of
The BMCs installed in DCS apart milk chilling in the district during
from the dairy at Kanhangad March 2014 is as follows.
Table 7.1 Status of Milk Chilling Facility Kasaragod District, 2013-14

Sl.
No.
2 No. of DCS in which BMCs are positioned 2014 12
3 No. of Cluster DCS attached to BMCs2014 118
4 Total installed capacity of BMCs liters per day 43000
(LPD)
5 Average milk collected through BMC 2013-14 27800
in LPD
8 Av. SPC of BMC collected milk CFU/ml 90000
9 Av. Coliforms of BMC collected milk CFU/ml 40000
10 No. of Milk Chilling Plants Nil
236
Kasaragod District
As the district has adequate Other units/district 7455 LPD

chilling capacity to accommodate a Outside state 4132 LPD
possible growth in milk production Reconstitution +
excess adjusted 2131 LPD
and procurement in the next three
years additional chilling facility is Therefore the daily handling
not recommended. averaged 49,256 LPD, 64 per cent

above the installed capacity.
During festival and Flush period
7.5 Milk Processing
the daily handling further went up.
Kasaragod is not among the
In addition to the liquid milk the
frontline dairy districts in the
unit make curd at an average 3695
State. The district has one dairy of
kg/day (2013-14) and buttermilk,
30,000 LPD capacity, located in
154,474 pkts./month.
Kanhangad, for processing and
packing milk and milk products. Dairy development activities of the
The dairy under the MRCMPU is government, state and central, and
the youngest Dairy commissioned Milk Union is expected to raise
in 2002. milk production and procurement
in the District. Therefore,
7.5.1 Processing Capacity and procurement and processing
Capacity Utilization capacity of the Dairy calls for
The average procurement of milk expansion.
during 2013-14 was 35,530 LPD of

which 27,800 liter (78 per cent) 7.5.2 Milk Processing
was procured from the BMCs as Infrastructure

Kasaragod Dairy
chilled milk. The remaining 22 per
The processing facility in
cent of raw milk received was
Kasaragod Dairy has been
chilled in the Dairy and stored. In
upgraded with the support from
addition to the procurement from
GOI and using own funds. The
home district the dairy received
details of governmental funds
the following quantity of milk from
utilized can be seen from table 7.2.
other sources.
236
Kasaragod District
Table 7.2 Amount Spent and Infrastructure Created under CSS in

Kasaragod Dairy
Financial
(Rs in Lakh)
Sl.
Component IDDP CMP Physical Facility
No.
Phase Phase
I & II I & II
1 Civil structure (RMRD, 57.5 Nil Production block, general go-
production block, cold down
store, etc.
2 Processing equipments & 101.84 Nil Pasteurizer, milk silos, boiler,
machineries added refrigeration equipments,
Homogeniser ETP, etc.
Total 159.34
The important equipments and cream during storage which was

machineries now available in adversely affecting the ghee
Kasaragod Dairy are listed in quality. Therefore, the Milk Union
table 7.3. They are inadequate to had taken a policy decision to
carry on the present level of equip Kasaragod Dairy to produce
operations. Also some of them ghee. The addition and

modification to create space to
(pasteurizer) deserve to be
install equipments is going on. A
replaced due to the usual wear
Cream storage tank and a cream
and tear while some others (Tri-
pump have been purchased in
purpose Centrifuge, homogeniser
advance under IDDP phase II and
etc.) are to be scaled up
are in the dairy at the time of
considering the growth in
survey.
procurement and the market
demand.
The Dairy transfers surplus fat to Recommendations
Kannur dairy, which is functioning The installed capacity of the dairy
near full capacity. Moreover, some is insufficient to carry out the
quality deterioration was taking current scale of operation. It is
place by mixing the old and new not difficult to foresee that the
237
Kasaragod District
Table 7.3 Processing and Allied Equipments and Machineries Installed in

Kasaragod Dairy
A Processing/Storage Equipment Capacity Quantity
1 Bulk coolers
2 Milk chillers 10 KLPH 1
3 Milk pump 10 KLPH 4
4 Horizontal milk storage tank 15 KLPH 2
5 Pasteuriser 10 KLPH 1
6 Milk silo 60 KL 1
B Fat Handling
7 Sour milk separator 500 LPH 1
8 Cream storage tank 2000 LTS 2
9 Cream pump 5000 LPH 1
10 Cream transfer tank 1000 LTR 2
C Milk Marketing
11 Pouch filling machine DHG mechanical 5000 PPH 4
12 Pouch crates 10 LTR 5000
13 Milk pumps 10000 LPH 2
14 Cold store conveyor 1200 cr/hr 1
15 Pouch crate washer 1200 cr/hr 1
16 Date coding device for pouch filling machines 60 IMP/Mnt 6
D Service Equipment
17 Refrigeration compressors
18 Motor for refrigeration compressors (KV) 40 HP 3
19 Ice bank tank 100 KL 1
20 Chilled water pump 90 KLPH 2
21 Chilled water agitator 5 HP 2
22 Air handling unit for cold storage/Deep freezer
(make/model/cap) 3 TR 1
E Steam Raising Plant
23 Boiler (oil/coal) 1 MT 1
24 Chimney 32 Mts. 1
F Compressed Air System
25 Air compressors 50 CFM 3
26 Receivers 500 lts. 3
G Industrial- Electrical
27 DG set 150 KVA
28 DG set 250 KVA 1
29 Transformer 250 KVA 1
H Water Supply System
30 Water storage tank 50 KL 1
31 Water pumps 20 KLPH 1
238
Kasaragod District
demand for milk, curd, ghee and growth in milk procurement

sambharam will increase in the peak period procurement
near future and the Union needs demand supply gap in the
to urgently strengthen the curd market
and ghee production apart from potential for market
the facilities for milk processing as expansion
it enables the dairy to generate available infrastructure for
extra income on minimal processing
investment. Therefore, it is
The past experience suggests that
recommended that the following
the milk procurement in
production facilities be
Kasaragod will grow at the rate of
strengthened/added on priority.
7 per cent per annum and during
peak three to four months at the
7.5.4 Additional Processing
rate of 14-15 per cent above the
Capacity for Kasaragod
normal procurement. Hence the
Dairy
current procurement, 36,000 LPD
The additional processing capacity
is expected to reach 45,000 LPD in
for Kasaragod Dairy is examined
the next three years and 52,000
on the basis of:
Curd process hall Kasaragod Dairy
239
Kasaragod District
LPD in the next five years. And efficiency. Hence they are to be
there is little scope to divert the replaced.
milk until the newly planned
b. SS Pipes and Fittings In
Kannur Dairy is commissioned.
order to provide additional milk
Moreover, the supply demand
lines and cleaning lines for the
position in Kasaragod is in favour
new equipments additional SS
of market expansion and larger
pipe lines and valves are
coverage. Considering the above
required.
requirements it is suggested to
enhance the processing capacity to c. Pasteurizer - The existing
50,000 LPD in a phased manner pasteurizer is giving lesser
(as suggested in table 7.4). throughput due to prolonged
usage. Heat transfer efficiency
a. Milk Pumps - Three milk
is very low and the spare parts
pumps available at Dairy are
of the pasteurizer are not easily
very old and of very poor
Table 7.4 Equipments and Machineries Suggested for Kasaragod District
under NPDD
Total
Sl. Milk Processing & Marketing No. of Unit Cost
Capacity Cost (Rs
No. Equipments Units (Rs)
in Lakh)
1 Milk pump 10 KLPH 3 50000 1.5
2 Horizontal milk storage tank 10 KLPH 0 500000 0
3 SS pipes and fittings Lot 1 500000 5
4 Pasteurizer 10 KLPH 1 2500000 25
5 Homogenizer 10 KLPH 1 6000000 60
6 Tri-purpose centrifuge 10 KLPH 1 3500000 35
7 Automatic CIP system 20 KLPH 1 4500000 45
8 Cream pumps 5 KL 1 300000 3
9 Pouch filling machines 5000 PPH 1 1000000 10
10 Cold store (including equipments) 5 TR 1 2500000 25
11 Deep freezer room 8 TR 1 3500000 35
12 Date coding devices for pouch 60
filling machines imp/mnt 5 150000 7.5
13 LT electricals LS 1 3000000 30
Total 282
240
Kasaragod District
available. Hence, it is essential various equipments as

that the old pasteurizer be prescribed in the FSSA Act.
replaced by a new pasteurizer Hence, the existing manual
of 10 KLPH with better cleaning system is to be
regeneration efficiency. replaced with an Automatic CIP
system.
d. Homogeniser - The Dairy has
an old homogeniser of 5 KLPH g. Cream Pump - In order to meet
capacity, which does not match volume of fat to be handled in
with the flow rate of 10 KLPH the near future a cream pump
pasteurizer. As about 70 per will be essential.
cent of the milk sale is in the
h. Pouch Filling Machine - The
form of homogenised milk,
number of pouch filling
which is increasing, to meet the
machines in the Dairy is
demand the dairy has to have a
inadequate to handle the
10 KLPH homogeniser.
volume of milk, curd and
e. Tri-purpose Centrifuge - At butter milk planned to be
present the dairy has only one packed. Hence, a new pouch
tri purpose centrifuge which is filling machine is to be
being used for milk purchased.
standardisation as well as skim
i. Cold Store - The present cold
milk production for curd
store equipments in the Dairy
making. To complete the
does not have adequate
processing in time as per the
capacity to store the milk and
market demand installation of
milk products as per the
an additional tri purpose
temperature specified in FSSA
Centrifuge is called for.
act to maintain the cold chain.
f. Automatic CIP System - The Hence additional equipments
dairy does not have an are to be installed in the cold
automatic CIP system to ensure store.
cleaning and sanitisation of
241
Kasaragod District
j. Deep Freezer Room - To infrastructure available, sales

handle the increase in ice achievements of liquid milk and
cream sale, the storage major milk products during 2013-
capacity of ice cream is to be 14, identifies the key issues and
improved by the installation of problems and finally makes
deep freezer rooms and recommendations to address
refrigeration compressors. them.
k. Date Coding Devices - The

7.6.2 Organization of Marketing
present date coding devices are
The marketing wing attached to
of friction type mechanical
Kasaragod Dairy organizes the
coders creating problems
marketing functions. The
leading to customer complaints
marketing wing has a Marketing
and legal issues. In order to
Organizer and three Marketing
have better clarity in printing of
Assistants (Field Staff). The
manufacturing date on the
Kasaragod Dairy markets liquid
pouches it is proposed to
milk and milk products within the
install thermal printers in the
district. The marketing area of the
pouch filling machines.
Dairy is subdivided in to three
l. LT Electricals - The zones and each zone is under a
installation of above Marketing Assistant.
machineries requires proper

electrical power supply. 7.6.3 Supply Chain
The Union has more or less similar
supply chain for all the districts.
7.6 Milk Marketing
The milk and the milk products
7.6.1 Introduction reach the consumers from the
Milk marketing is one of the major processing units through the
functions of MRCMPU. This retailers designated as dealers.
chapter provides an overview The liquid milk is directly supplied
of the marketing organization from the Dairy to the dealers and
of MRCMPU in Kasaragod, the products through the
242
Kasaragod District
wholesalers. There were 926 retail Market size calculated on a

outlets and 14 wholesalers in standard practice of competitive
Kasaragod at the close of March sales approach (bottom up
2014. A well developed intending approach) shows that the market
and distribution system exist. The for liquid milk in Kasaragod
liquid milk and the products are district during 2013-14 was
sold to the dealers on advance 57,193 LPD (Milma 44,193 plus
payment. Credit facilities were 13,000 by the competitors). In this
extended to the dealers on a method the sales of competitors
limited scale. The milk and milk are assessed through a series of
products sold during 2013-14 is interviews and its accuracy
shown in table 7.5. It may be seen generally is moderate. The sales in
that while the growth in sales of this method mostly pertain to the
milk is marginal, the growth of urban areas excluding the rural
sales of curd, ice cream and ghee market. Yet another way of
are substantial. calculating the market size is by
understanding the end user
7.6.4 Market Size and Market purchases. The sample survey in
Share of MRCMPU rural and urban area conducted in
Market size is measured as the six selected locations by the study
total volume of a given market. group (June 2014) shows that the
Table 7.5 Progress in Sale of Milk and Milk Products in Kasaragod, 2013-14
Quantity
No. Milk/Product
2009-10* 2013-14
1 Liquid milk (LPD) 43280 44193
3 Ghee (Kg/month) 10910 12149
5 Butter milk (200 ml Pkts./day) 4076 5613
* Previous benchmark
243
Kasaragod District
Table 7.6 Estimated Market Size of Milk in Kasaragod District, 2014

Sl.
No.
1 Population number 798328 509047 1307375
2 Cattle holdings % 25 NA
4 Actual % consumers as per HH survey 74 95
6 Per capita cons. Survey result 151 174
7 Household consumer demand LPD
(6 x 5/1000) 66904 84145 151049
8 Inst. demand 20% of urban consumption 0 16829 16829
9 Total demand (7+8) 66904 100975 167878
per capita consumption among the substitute milk powder for milk.
rural population in Kasaragod is The entire institutional segment is
151 ml and urban 174 ml per day. catered to by the private dealers
The market size is shown in table from within and outside the State.
7.6. The low market share of Milma is
sufficient justification for NPDD
The total estimated market in
support to develop a business plan
Kasaragod is huge, 1.68 LLPD
and marketing strategy for the
while the MRCMPU marketed
district.
44,193 LPD and their competitors
13,000 LPD adding up to 57,193
7.6.5 Milk Marketing
LPD leaving a gap of 1.22 LLPD.
Infrastructure Current
The market share of Milma is just
Status
under 26 per cent of the market
Table 7.7 presents the various
size which is low. The market
support infrastructure and
share of competitors at six per
logistics available in Kasaragod
cent seems to be under estimated.
for market promotion.
The survey shows that a small
segment of the population, 13 per
cent rural and 10 per cent urban,
244
Kasaragod District
Table 7.7 Existing Milk Marketing Facilities in Kasaragod, 2013-14
Sl. No. Component Numbers
1 Wholesalers for the produce 14

2 Dealers (Retail outlet) for milk 926
10 PUF box 100 ltr. (No.) 28
11 PUF box 150 ltr. (No.) 30
17 120 liter freezer (No.) 70
The milk parlors are positioned in addition of the PUF containers

busy public places to attract under the IDDP scheme during the
consumers to Milma products. yester years, the entire milk
Apart from selling the Milma transport from the Dairy has been
products they also serve as a switched over to PUF insulated
media to improve the visibility of vehicles. The PUF boxes of varying
milk and milk products. Four such sizes, 50-150 liter, provided at 50
parlors exist in Kasaragod district. per cent subsidy in the retail
outlets ensures perfect end-to-end
cold chain, namely from the Dairy
infrastructure provided,
to the consumer. Our field
introduction of PUF insulated
exposure visits revealed that
vehicles for milk distribution and
retailers whole heartedly welcomed
PUF boxes in the retail outlets are
the PUF boxes because they are
worth mentioning. With the
viable alternatives for the energy
245
Kasaragod District
consuming freezers. They occupy counter the invasion of milk and

less space, are easily movable and milk products from across the
easy to clean. The boxes retain low border. Because of falling milk
temperatures for about 3-4 hours production in rural areas the
during which the entire milk market for milk and milk products
generally get sold out. is expanding rapidly. Also, market
analysis shows that there is wide
Freezers, 200 and 120 liter
gap in the supply demand
capacity, are provided to the
position. To take advantage of
retailers at a subsidized price of Rs
these favorable factors and to
5000 a piece for storing frozen
safeguard the interest of the milk
Milma products. Apart from ice
producers in the district further
cream, sometimes milk is also
expansion of marketing outlets
stored in these. There are many
and developing an aggressive
takers for the freezers and almost
marketing strategy is called for.
all of whom we visited was found
to use them. The Visi-coolers are Consumer awareness camps are
provided at subsidized price to being held and Dairy visits
store products like flavored milk, organized to explain the chain of
cup curd and so on. activities taken up by the dairy,
starting from milk reception to
Kasaragod district is under
sales through the retail outlets.
perpetual threat from the border
The consumers also get an
districts of Karnataka in the sales
opportunity to gather first hand
of milk and milk products. The
information on quality assurance
Karnataka marketers are operating
followed at various stages of milk
at an advantage as the selling
reception, processing and
price for milk in Karnataka is
marketing. Advertisement boards
always lower than that in Kerala.
and banners are exhibited in busy
Added to that the marketing
places for the publicity of the milk
network created by MRCMPU in
and milk products.
Kasaragod is inadequate to
246
Kasaragod District
7.6.6 Key Issues and to improve the real and perceived

Recommendations quality of milk and milk products.
The crux of the issues in As a part of the strategy
Kasaragod is related to the normal Transporter Cum Distributor
market forces. Milk is cheaper (TCD) scheme, Redistribution
across the border. Whenever the scheme, Super Market scheme,
consumer price equilibrium Frozen milk scheme, New dealers
changes the inflow of milk from incentive scheme, starting of Drive
Karnataka tends to increase. The in Parlors and so on will have to
institutional segment is dominated be promoted.
by private traders bringing milk
a. Milk Parlors
from outside the State. At the
The number of milk parlors now
same time milk production is
functioning in Kasaragod district is
livelihood intensive to a vast
few. The already functioning
majority of marginal and sub
parlors have proven that they are
marginal farmers of the district.
an effective media to promote the
Therefore, the question is how to
sale of Milma milk and milk
safeguard the interest of
products. Therefore nine parlors
Kasaragod farmers? The MRCMPU
are recommended for the district.
has to scale up their marketing
It is suggested that the dealers be
activities in Kasaragod is the
provided initial establishment
answer. The marketing facilities
support of Rs 60,000 per parlor.
available in Kasaragod district are
inadequate to provide quality b. Milma Shoppe
service to the consumers. The Improving the visibility of Milma is
activities and facilities required to important to scale up its business.
improve the marketing of milk in Improving the business is very
Kasaragod is shown in table 7.8. crucial to sustain the milk
production and livelihood support
To establish quality as a
to the resource poor milk
Sustainable Competitive
producers of Kasaragod. Milma
Advantage (SCA), MRCMPU will
shoppe, apart from selling the milk
continue to make all-round efforts
247
Kasaragod District
Table 7.8 Marketing Infrastructure Suggested for Kasaragod District

Total
Total Unit
Sl. Estimated
Component Physical Cost
No. Cost (Rs
EOP (Rs)
in Lakh)
1 Milk parlor civil 9 50000 4.50
2 Milk parlor equipments 9 10000 0.90
3 Shoppe support 5 500000 25.00
4 Space in super market 30 20000 6.00
5 Decorated mobile product vehicle 3 50000 1.50
6 PUF vehicle container (5 MT) 1 460000 4.60
7 PUF vehicle container (3 MT) 3 250000 7.50
8 PUF box 25 - 460 liter 300 2000 11.50
9 Shipper box for ice cream 45 6000 2.70
10 200 liter freezers for dealers 120 13000 15.60
11 200 liter freezers glass top for dealers 120 17000 20.40
12 120 liter freezer 120 11000 13.20
13 500 liter freezer for dairy 10 23000 2.30
14 Deep freezer 320 ltr. 90 17000 15.30
15 Deep freezer 320 ltr. (Glass top) 90 20000 18.00
16 Visi-cooler 220 ltr. 120 20000 24.00
17 Visi-cooler 320 ltr. 80 30000 24.00
18 Consumer awareness programme 90 50000 75.00
19 Advertisement and miscellaneous
items like tin board, chain board,
outlet painting, flex board, etc. 450 600 80.00
20 ACP with LED board 150 20000 30.00
21 Canopy with eutectic freezer subsidy 15 100000 15.00
22 Support to milk stockists (RD) 12 200000 24.00
Dealer club meet/orientation/
23
incentive 6 25000 1.50
24 Effluent treatment plant (ETP) 1 4000000 40.00
Total 462.50
and milk products, are effective in shall be started under the NPDD.
publicizing. The few number of The new franchises shall be
Shoppe now functioning in provided a subsidy of Rs 5 lakh to
Kasaragod are inadequate to serve establish and furnish the Shoppe
the urban population. Therefore it and to meet the rent during the
is suggested that five new Shoppe initial period.
248
Kasaragod District
c. PUF Bodies boxes supplied under the

In order to give good quality milk IDDP/SIQCMP are doing good
and milk products to the service. But less than 50 per cent
consumers, MRCMPU requires dealer points have PUF boxes. In
more number of PUF bodies. At order to popularize and spread
present the entire processed milk their use three hundred more PUF
is transported in PUF insulated boxes of varying sizes are
vehicles. In order to ensure suggested for Kasaragod. Visi-
uninterrupted cold chain in milk coolers are excellent equipment to
transport four more PUF body is keep products like flavored milk in
suggested as standby and to cool temperatures. Most of the
operate new supply routes. private companies provide Visi-
coolers free of cost to promote
their milk. Hence, 200 of them are
MRCMPU have effectively
suggested as part of market
demonstrated that PUF Boxes is
promotion.
well suited and the cheapest to
preserve milk at the dealer point. e. Ice Cream Promotion
Freezers are uneconomic to store The share of value added milk
small volumes of milk. Moreover products in the total turnover of
they are capital intensive. The PUF the Union is crucial to the
Canopy & Freezer for ice cream sales Kasaragod
249
Kasaragod District
financial viability of MRCMPU. dairying in the district as well as

Among all the products, ice cream the food security and livelihood
is the most promising one. support. Therefore it is strongly
Unfortunately, Milma now has recommended that an aggressive
only less than 5 per cent market out of box consumer education
share in the ice cream segment. program and publicity through all
The major hurdle identified against channels, printed and visual
the market expansion in media, shall be launched in
Kasaragod is the absence of user Kasaragod to serve two purposes
friendly and energy saving freezers awareness creation among all
at retail points. A three pronged sections of population and market
market intervention appoint promotion - as a tool for socio-
more whole sale dealers, equip all economic improvement. An
retail points and wide publicity estimated amount of Rs 150 lakh
through TV channels is suggested. will be required for this.
The wholesalers and dealers shall
g. Effluent Treatment Plant
be provided freezers at subsidized
(ETP)
prices as is busing done by the
The ETP is meant for Kasaragod
competitors. Freezers of varying
Dairy. The existing ETP is
size numbering 500 will be
inefficient and the scale
required to command a sizeable
market. In addition canopy with inadequate to handle the effluents
Eutectic Freezers, 15 numbers, are from the small Dairy. As the
recommended for special sales in Kasaragod is gearing up for
tourist spots and prominent on production enhancement and
road places. scaling up of processing facility the

capacity enhancement of ETP is
f. Consumer Awareness
inevitable. The place where the
Kasaragod faces fierce competition
ETP is functioning needs to be
from private dealers from within
changed to the corner of the
and outside the state. Sustaining
campus. From the statutory and
and further developing the market
hygiene point of view it is
is crucial to the very sustenance of
250
Kasaragod District
suggested that a higher capacity procure milk from the dairy

ETP may be established at the farmers. The organization of milk
Dairy at an estimated cost of Rs 40 procurement is explained as fig.
lakh. 7.3.
BMC DCS means a DCS in which

7.7 Milk Procurement
the BMC is installed, Cluster DCS
7.7.1 Milk Procurement means a DCS which supplies milk
Milk procurement is one of the key to the BMC, and the direct DCS
functions of MRCMPU. The milk means a DCS which supplies milk
procurement in Kasaragod is directly in the Dairy/MCP. The
looked after by the P&I Unit milk producer-deliver the
functioning under the Dairy. The household surplus milk either in
Unit has established a network of the BMC DCS, Cluster DCS or
village level DCS in the district to Direct DCS. The Cluster DCS in
Fig. 7.3 Organization of Milk Procurement in Kasaragod District
Farmer
Milk
ClusterDCS BMCDCS DirectDCS
KGD DAIIRY
Cluster DCS - DCS attached to BMC for milk supply; Direct DCS DCS
supplying milk to Dairy; KGD Kasaragod.
251
Kasaragod District
turn delivers the milk to the removed from the DCS roll due to
nearest BMC. The BMC chills and the cumbersome mandatory
delivers the milk to the Dairy. The procedures. The average
direct DCS supply milk direct to procurement per DCS was 348
dairy dock. The Dairy in turn LPD and per supplier 9.1 LPD
process and market the milk in during 2013-14. The local sale,
towns and other urban 9773 LPD, accounts for 22 per
agglomerations within and outside cent of the daily procurement
the district. The whole chain of indicating healthy production
activities - procurement, trend in the rural areas. The rate
processing and marketing - is well of procurement is appreciable in
orchestrated and well executed. the light of Kerala standards.
However, the DCS classified
A majority of the DCSs in
according to the daily procurement
Kasaragod are Anand Pattern
shows that 11 DCS were collecting
Cooperative Societies (APCOS).
less than 100 LPD and yet another
They are producer cooperatives
30 DCS between 100 and 200
managed by a democratically
LPD. The study shows that those
elected Board of Directors. At the
DCS are not economically viable.
close of March 2014 the district
The reasons for poor procurement
had 128 functional APCOS. In
rate are that they are not in ideal
addition there were 5 non-APCOS
locations, non-potential suppliers
directly under the department of
Dairy Development.
farmers have other options for
Table 7.9 shows the profile of the selling milk. The relocation of
DCS in Kasaragod. From among those DCS needs to be considered.
the 22,408 registered milk

Out of the 128 DCS only 17 DCS
producers in the district at an
supplied milk directly to the Dairy
average 4890 (22 per cent) alone
during 2013-14. All others
poured milk in the DCS. The
supplied milk either to the village
proportion pouring milk is low
BMCs or to those DCS supplying
because the non-producers are not
252
Kasaragod District
Table 7.9 Profile of DCS in Kasaragod District March 2014
Sl. No. Description Quantity

2 No. of farmer members/DCS 175
(22408)*
3 Av. number of Suppliers/DCS 60 (7638)
4 Milk farmer procured (LPD) 44601
7 Av. procurement/DCS (LPD) 348
8 Av. DCS procurement/supplier (LPD) 5.83
10 Av. price - Local sales (Rs/liter) NA
11 No. of DCs collected <100LPD 11
12 No. of DCS collected 101-200 LPD 30
16 No. of DCS making one time milk collection from
farmers NA
17 Av. fat% 4.1
18 Av. SNF% 8.4
19 No. of BMC DCS (31-3-2014) 12
20 No. of BMCs 12
33 No. of DCS having adequate water supply
arrangements 35
* Figures in brackets are the total numbers
253
Kasaragod District
to MCP. Only 41 DCS, 32 per cent per DCS is not encouraging.

of the total DCS, function in own Surprisingly, with the exception of
building; others are in rented Wayanad district, 9.1 LPD per
buildings. Almost all of them have supplier, is one of the highest
electricity. But only 35 DCS have among all the districts under
adequate and proper water supply MRCMPU. The assessment is that
arrangements. The absence of own only 5 per cent of the remaining
building and lack of adequate wards have the potential for
water is identified to be one of the starting new DCS.
major constraints in maintaining
good hygiene standards. It is 7.7.3 Milk Quality and Quality
gratifying to note that 104 out of Administration
128 (81 per cent) have AMCU for The MRCMPU follows two axis
milk collection. pricing, that is, farmers are paid
on the basis of milk fat and SNF
7.7.2 Coverage content. The village cooperatives
Kasaragod district has 665 are equipped to determine the
Panchayat wards of which almost compositional quality, fat and
80 per cent are under milk SNF. Few DCS are also equipped
procurement coverage scheme. The to detect added preservatives,
geographical coverage is excellent adulterants and neutralizers apart
but the volume of milk collected from MBRT estimations.
Table 7.10 Kasaragod District Av. Milk Quality 2013-14
Parameter Values
Fat % APCOS 5.1
Fat % non-APCOS NA
SNF % APCOS 8.4
SNF % non-APCOS NA
Av. MBR time BMC DCS (Mts.) 127
Av. MBR time direct DCS (Mts.) 133
34
tester & LR
7
test & LR
254
Kasaragod District
Because of the quality based BMC DCS, 127 minutes is

pricing system, the quality comparable with the non BMC
assessment in DCS is crucial in DCS, 133 minutes. This need to be
determining the milk price for the further investigated. In the years
farmer, in winning their confidence to come both compositional and
and overall sustenance of dairy bacterial quality will have a telling
production. The different influence on the marketability of
cooperatives in Kasaragod follow milk and therefore the Union
one of the three known procedures needs to pay better attention for
of quality assessment namely improving the bacterial quality.
conventional milk testing (Gerbers The best way to usher in microbial
test for fat and LR for SNF quality is to pay for bacterial
determination), Milk O Tester for quality. It is suggested that an
fat and LR for SNF and Automatic incentive for good quality milk may
Milk Collection Units (AMCU) for be introduced as a beginning.
quality and price determination.
The AMCU is the most desirable 7.7.4 Key Issues and
because it is convenient, error Suggestions
proof, quick and transparent. Under the IDDP and SIQCMP Rs
Table 7.10 shows that 104 out of 380.85 lakh has been invested for
128 APCOS (81 per cent) possess procurement activities ranging
AMCU. Less than half of DCS from BMC to milking vessels and
possessing AMCU regularly use capacity building of farmers and
the full set of AMCU reportedly elected members. The IDDP
due to some snags in the support is available for two more
analyzers. years (2014-15 and 2015-16).

Therefore the support requested
The average of procured milk has under the NPDD is meant to
4.1 per cent fat, and 8.40 per cent stabilize and carry forward the
SNF. Farmer education and achievements already made. The
introduction of AMCU can further reasons for the suggestion of
improve the quality. The average major/new components are
MBRT of milk supplied through illustrated below.
255
Kasaragod District
1. Buildings 2. Water Supply System

As pointed out in the forgoing Developing water source and water
sections a sizeable number of DCS supply is becoming increasingly
function in rented buildings. Most important in Kasaragod. Most of
of them do not have the minimum the DCS find it difficult to mobilize
facilities for hassle free milk adequate capital for investment.
collection and dispatch. BMC Hence, a subsidy of Rs 60,000 per
installation is virtually impossible unit is suggested for 10 DCS at an
and effluent treatment is a serious estimated cost of Rs 6 lakh. Water
issue. Therefore it is suggested to harvesting, installing water tanks
include provision for subsidizing and pumping facilities are
new DCS buildings at the rate of envisaged. In addition digging 10
Rs one lakh per DCS. The number bore wells at the rate of Rs 25,000
of DCS identified to have the land per unit and 15 open wells at the
and financial capacity to do this rate of Rs 10,000 per unit are also
are 18 during the project period. suggested.
Table 7.11 Kasaragod District Suggested Milk Procurement Facilities under

NPDD 2014-17
Unit Total
Sl. No. of
Milk Procurement Cost Cost (Rs
No. Units
(Rs) in Lakh)
3 Bore well 10 25000 2.50
4 Open well 15 10000 1.50
6 Automatic milk collection units 3 125000 3.75
12 Subsidy for milk transport 370000 0.5 1.85
13 Subsidy to cattle feed transport
MT 32200 400 128.8
14 Incentive to better quality milk 900000 0.5 4.5
Total 178.85
256
Kasaragod District
3. Automatic Milk Collection 5. Incentives for Good Quality

Units Milk
About 104 DCS use AMCU for milk The SIQCMP has instilled
collection and quality checking. It considerable enthusiasm among
is important to have standby units the dairy farmers to produce good
for replacement in case of quality milk. The bacterial content
breakdown. It is suggested to in raw milk has been significantly
include three units as reduced. The low bacterial count
service/replacement units. The improves the quality especially the
estimated cost is Rs 3.75 lakh. organoleptic properties (taste and
flavor) of the milk apart from high
4. Subsidy for Cattle Feed
heat stability and longer shelf life.
Transport
The good quality milk (good taste
and flavor) are cherished by the
consumers. Thus the consumers
wholeheartedly welcome the
and Milk Union are reaping
arrangement because of the
benefits while the farmers are not
convenience, easy access and the
compensated for their extra effort
credit facility extended by the
to produce good quality milk. It is
DCS. The transport of cattle feed
legitimate that they are motivated
from producer companies to the
through some incentives to
DCS entails cost. It is suggested to
produce and supply clean milk.
subsidize the transport cost. The
Towards this end it is proposed
estimated quantity sold in
that the top 2 per cent of the milk
Kasaragod comes to 32,200 MT in
may be paid an incentive of 50 ps.
three years. An amount of Rs
per liter of milk. The daily
0.4/kg is the suggested subsidy on
procurement is close to 40,000
transport cost and the total Rs
LPD and the incentives at the
128.8 lakh. This may be provided
suggested rate works out to Rs 4.5
as cattle feed subsidy so that the
lakh in a year.
price of cattle feed can be kept low.
257
Kasaragod District
7.8 Cattle Shed and Farm ones to permit sunlight, and
Machineries facility for continuous water
Well constructed cattle sheds are a feeding. No cattle shed meeting
precondition for clean milk such standards exists in
production. A dirty cattle shed Kasaragod. Most of the sheds are a
contributes substantially towards mere make shift shelter with
external contamination of milk and mud/wood floor, tile/asbestos/
entry of microbes in to the udder PVC/Silpaulin roof, dark and
causing sub-clinical/clinical musky, all in one floor (no urine or
mastitis. A well constructed cattle dung channel) and without any
shed should also provide watering arrangements. The cows
operational easiness and animal remain in this shelter most of the
comfort. The shed should have time (no grazing). The hind
adequate space for the animal, quarters and the udder often
manger, feeding alley, urine and remain soiled by dung and mud.
dung channel. The shed must be Udder and teat injury is common.
well ventilated, easy to clean and Feeding of water is only
should have transparent roofing occasional. Therefore, any support
sheets interspersed with opaque for good cattle shed is the most
New cattle shed constructed under SIQCMP, Kasaragod
258
Kasaragod District
welcome support for the poorest of is uncommon in Kasaragod.

the poor dairy farmers in Hence, reducing the labor and
Kasaragod. Considering these making the daily chores less
deficiencies, the Milk Union arduous is crucial for the
funded cattle shed modifications sustenance of dairy farming.
and building new cattle sheds Considering the economic and
under the IDDP and SIQCMP social significance of dairying, the
schemes. During the course of the MRCMPU has initiated providing
field work we found that the floor financial support for farm
of cattle sheds are well made using mechanization. Table 7.12 shows
the fund allotted. However, the physical attainments in the
construction of new cattle sheds is immediate past.
very expensive in Kerala due to the
Table 7.12 Farm Equipments
high labor cost and the cost of
Supplied to Farmers in Kasaragod
materials. The budget provision
District
of Rs 10,000 is thoroughly
Sl.
inadequate and will not meet even Item Quantity
No.
10 per cent of the overall cost. 1 Cattle sheds modified Nil
Therefore, it would be more 2 Milking machines 28
3 Rubber mats 793
sensible if the support could be
4 Pressure washers 17
extended for renovation and
5 Gen sets 3
modification of the cattle sheds 6 Cow drinker 2
with watering facility rather than 7 Chaff cutter - Motorised 3
insisting on a new cattle shed.

It is suggested that the assistance
On the face of shrinking family may be continued and funded
size, changing status of women in under NPBBDD. The components
the society, opportunities for suggested, quantity and the
employment in other sectors of the estimated cost are presented in
economy the availability of labor table 7.13.
259
Kasaragod District
Table 7.13 Kasaragod District Cattle Shed and Farm Machineries

Suggested under NPDD 2013-17
Unit Total
No. of
A Cattle Shed Cost Cost (Rs
Units
(Rs) in lakh)
Cattle Farm
B
Mechanization
3 Gen set 30 75000 22.5
5 Rubber mats 500 2500 18.75
Total (4.0) 80.00
7.9 Cattle Induction heifers to 50 farmers to promote

Cattle induction is a common cattle rearing in the district.
procedure adopted to re-distribute
The cattle keeping in the district is
the asset among the different
largely a job of economically
sections of the community. The
weaker sections of people (BPL
absence of easily accessible loan at
families). It continues to be an
reasonable interest rate adds on
important source of livelihood for
the importance of this activity.
them, especially women. Therefore,
Therefore cattle induction has
distributing the following number
been resorted to by several
of cattle (Table 7.14) is
development agencies in the State.
recommended under NPDD.
The MRCMPU too distributed 250
Table 7.14 Cattle Induction Program Suggested in Kasaragod District under

NPDD 2014-2017
Unit Total
Sl. No. of
Cattle Induction Cost Cost (Rs
No. Units
(Rs) in Lakh)
1 Capital expenditure 0
animals 240 2000 4.80
Total 92.55
260
Kasaragod District
Only the BPL families will be 7.10 Establishment of
included for cattle induction Laboratories

activity. An amount of Rs 37.85 lakh had
been invested under phase I & II
Fifty percent of cows and fifty
IDDP and SIQCMP and Rs 16.22
percent of heifers are reserved
by Milk Union in upgrading the
for women. Kasaragod dairy lab.
Women members will be
The Kasaragod dairy lab requires
allowed 75 per cent of price
to add more modern gadgets after
lay out of the recently acquired
equipments and standardizing the
Transportation cost shall be ground level testing procedures.
met in full under the scheme. The lab has to go a long way in
equipping and testing procedures
Seventy five percent of
to meet with the FSSA
Insurance amount shall be
requirements. The following
included under the scheme
suggestions (Table 7.15) are as an
and the balance as interim measure to improve and
beneficiary contribution. equip the lab to acquire
HACCP/ISO certification.
Table 7.15 Kasaragod Dairy Laboratory Facilities Requested under NPDD

2014-17
Unit Total
Sl. No. of
Component Cost Cost (Rs
No. Units
(Rs) in Lakh)
2 Purchase of laboratory
furniture 1 500000 5.00
5 Accreditation and certification
of dairy establishments under
HACCP/ISO 1 500000 5.00
Total 32.00
261
Kasaragod District
The facilities and provision other sections. An amount of Rs

requested under Kasaragod dairy 1,00,000 will be required for the
lab may be seen in table 7.15. To software. The Kasaragod Dairy has
establish a central lab in ISO 9001:2008 certification. The
Kozhikode dairy to carry out all Dairy is preparing to acquire ISO
the tests stipulated under the 22000:2005. This calls for
FSSA 2011 and to achieve ISO observing certain protocols
22000-2005, Rs 20 lakh is including audit requirements. An
requested. The central lab will be amount of Rs 5.0 lakh is the
equipped to carry out all the estimated requirement.
sophisticated tests both in the raw
Although the DCS labs are
and processed milk. Detection of
equipped to carry out the MBRT, a
Antibiotic residues, heavy and
system to carry out the test by the
light metal content, pesticide
DCS staff and to link on line with
residues and so on requires very
the central lab is yet to be
expensive equipments like
implemented in full.
spectrophotometer. By establishing
a central lab the duplication of
expense can be avoided. At the
same time the samples from the Kits for Farmer
sister labs like Kasaragod can be Beneficiaries
tested. Hence the suggestion is The MRCMPU supplied the
highly justifiable. following articles under the
SIQCMP scheme to the farmers in
The Kasaragod lab is badly in need Kasaragod (Table 7.16).
of lab furniture. An amount of Rs
5.0 lakh will be required to acquire The distribution of CMP kits to
the absolutely essential furniture. farmers has the least impact on
A high capacity jet is essential to clean milk production because the
clean the 60 KL milk silo. The farmers generally discontinue the
FSMS monitoring software is use once the free supply is
essential to handle the lab and the stopped. Hence, this component is
data generated and network with not recommended to be continued
262
Kasaragod District
Table 7.16 CMP Kits Supplied under SIQCMP Scheme in Kasaragod

District
Financial
Sl.
Item Physical (Rs in
No.
Lakh)
CMP Kits to Farmers
1 Detergents & chemicals to DCS Lot 11.42
Total 33.24
under NPDD. On the other hand, Milking machines are also very
the stainless steel utensils (the beneficial to the farmers. My field
milking utensils and carrying exposure visits shows that almost
vessels) supplied are being used by all recipients of the machines
the farmers and they whole under the IDDP/SIQCMP schemes
heartedly welcome the component. regularly use them although
It is suggested that those continuous service back up is
equipments may be supplied to the essential. It is suggested that nine
farmers under the NPDD also. The numbers of milking machines may
numbers suggested and the be supplied to the farmers
financial requirement is given in possessing five or more cows at
table 7.17. subsidized (75 per cent) rate under
Table 7.17 CMP Kits and Milking Machines Suggested for Kasaragod
District under NPDD
Total
Component Cost (Rs
No. Units (Rs)
in Lakh)
Stainless steel utensil kit/
1 1600 400 6.40
accessories
machine & other equipments for
15 55000 8.25
hygienic milk handling at
village/farmer level
Total (7.0) 17.65
263
Kasaragod District
NPDD. It is also suggested that physical attainments in Kasaragod

few hand operated machines shall district are presented in table
be supplied to the needy farmers 7.18.
after making a scientific and
The Technical input services are
methodical field trial in association
production incentives to farmers
with KVASU.
and are expected to reduce the
cost of production of milk. Those
components are in the state
(TIS)
The technical input services earlier
are in charge. Our field experience
implemented under the IDDP/
shows that the quality of delivery
SIQCMP schemes encompasses a
of services like veterinary care and
variety of farm level activities and
AI at the farm gates is deplorably
assistance. The TIS was a major
poor. The story of several other
component of those schemes. The
services is also not different. A
components, financial and
total re-orientation of those
Table 7.18 Technical Input Services Components and Achievements

Kasaragod District
Financial
Physical Union/
Component IDDP/ Total
Achievement Beneficiary
SIQCMP
Tech input services 200 25.6 10.97 36.57
Table 7.19 Technical Input Services for Kasaragod District

Total
Component Cost (Rs
No. Units (Rs)
in Lakh)
1 Liquid nitrogen containers 6 30000 0
2 Audio visual kits, etc. 1 200000 2.00
input camps 180 5000 9.00
4 Chaff cutter 36 20000 7.20
5 Commercial fodder
production 10 100000 10.00
Total 28.20
264
Kasaragod District
services through Milk Union and added crop in irrigated land. The
DCS will be beneficial both for the fodder so produced shall be
state exchequer and the farmers. marketed among the DCS
This is often told but not done. members at cost price. The scheme
Hoping that this will happen none shall be a flagship program of
of those schemes handled by the NPDD.
line departments/NDP scheme is
included. The following components 7.13 Information and
are suggested to be included under Communication
NPDD as a priority component. Technology Networking
The most essential components
are listed in table 7.19. The MRCMPU apart from a
The LN containers included are for
multi crore business concern. Its
replacement of the ones being
used in AI Centers. Since they are
widely distributed. To keep abreast
covered under NDP the facility can
with the speed and perfection of
be used under that scheme. The
modern business in full the
animal input camps include
utilization of information and
fertility management of dairy cows
communication technology is
among farmers. It is a DCS based
essential. It is also essential that
program centrally controlled and
the whole business is transparent
to the stakeholders, the farmers.
Unfortunately, the Milk Union is in
fodder production is a failed
the infantile stage of exploiting the
attempt in Kerala. The reasons are
IC technology. At present the dairy
many, the most important being
and associated activities are
the land fragmentation and the
partially computerized and
decline in farming activities. On
networked (intranet). The Milk
the other hand, large land
Union proposes to expand the IC
holdings and fallow land are
so that the system will function as
potential source for fodder
a client server architecture
production fodder as a value
265
Kasaragod District
network with 6 centers at each districts and DCS. The details of

district (Palakkad, Malappuram, the proposed system are given as
Kozhikode, Wayanad, Kannur, annex-1. The expenditure is to be
Kasaragod) and a central server shared between the district
system linking all these six projects. The share of Kasaragod
centers. The data and information district is illustrated as table 7.20.
will be made available to all the

Kasaragod
Unit
A Capital Expenditure Units Amount
Rate
1 Purchase of Computer/ HHB
1.1 Desktop 0.50 14 7.00
1.2 Laptop & Netbook 0.60 10 6.00
1.4 A4 size net work laser printer 0.20 0.00
1.5 A4 size flat bed scanner 0.05
2.1 Rack server 9.00 2 18.00
2.3 Tape backup 8.00 1 8.00
2.4 UPS for server 7.00 1 7.00
3 Purchase/Installation of Software
Systems
3.4 Hardware & networking 10.00 1 10.00
3.5 Software consultation charges
(AMC) 5.00 1 5.00
3.6 Onsite software analysis and
evaluation for Union and DCS
purchase 5.00 1 5.00
3.7 Software purchase & up-gradation
charges 30.00
1 Software consultancy & data base
administration 10.00 0.00
2 Leased line communication cost 10.00 0.00
Sub-total (capital) 71 115.80
Sub-total (recurring) 0.00
Total 115.80
266
Kasaragod District
7.14 Manpower Development district. The DCS staff has been

The MRCMPU adopted training trained at the HRD centre,
and development program as a tool Kozhikode under MRCMPU on the
for organizational development and relevant subjects. The trainers
to make strides on productivity included those from within the
standards including cost organization and also invited from
reduction, energy conservation, other organizations. The duration
and product improvement. Apart ranged from one to three days and
from Union employees, the staff the subjects handled were those
and elected members of DCS and relevant to the concerned groups.
Board are also trained on
The CD program includes training
appropriate subjects.
in village cooperatives followed by
MRCMU has designed several a visit to processing Dairy/cattle
training programs as a part of feed plant. Farmers are the
Manpower Development. The table trainees. The farmers induction
7.21 shows the numbers trained in program is normally carried out in
various categories from Kasaragod the HRD Centre, Kozhikode. The
Table 7.21 Training of Employees and Elected Members in

Kasaragod District
Number of
Sl.
No.
Trained
2 Training of BMC/DCS/MCC staff
5 Training on AI 113
8 FIP 3838
267
Kasaragod District
Dairy Animal Management 26. Farmers training should be

Training to the farmers has been organized in villages with the
under taken in APCOS DCS. The support of LSG and Village
training included lectures by Extension Workers under
experts and visit to a few well run MRCMPU.
farms. The farmers were given 27. All out and comprehensive
opportunities to see for themselves training on Mastitis
the success and failure stories. Eradication, Clean Milk
The training for MRCMPU
employees is arranged by the Head
Office in the institutions of repute
be initiated on a project mode
in India, both inside and outside
and results closely monitored
the state. An interaction with a
and evaluated.
test group showed that the
trainings were useful for upgrading
their skill and knowledge.
An amount of Rs 56.63 lakh had exposed to higher levels of
been spent on HRD IDDP and CMP knowledge on production and
Phase I and II in Kasaragod marketing management. They
district. should be provided

excellence outside the State.
Suggestions 29. The thrust of capacity
25. Future training especially building of higher level
those for the middle level employees should be on
employees starting from modern Management Systems
Supervisors should be hand rather than on technical
on training exclusively on subjects. They should be
subjects and skills relevant to exposed to what happens in
them. the dairy sector elsewhere in
268
Kasaragod District
the country (eg: Schreiber supply of raw materials,

Dynamix) to widen their consumables, etc. for the
vision and outlook. manufacturing and sales
operations of milk and milk
products in Kasaragod district.
toned down and tapered out.
Minimum quantity of all raw
The courses suggested for Kasaragod
materials, consumables packing
district and the estimated cost are
materials, stores and spares etc.
given as table 7.22.
are to be stored.
7.15 Working Capital The working Capital requirement
Kasaragod District of the Union is fluctuating
Working Capital is essential to throughout the year depending on
ensure smooth and uninterrupted local milk procurement. The milk
Table 7.22 Manpower Development Kasaragod District Suggested Programs

under NPDD 2014-15 to 2016-17
Unit Total
Sl. No. of
Name of Course Units Cost Cost (Rs
No. Units
(Rs) in Lakh)
1 CD programme 15 80000 12.00
2 FIP Person 600 300 1.80
4 Secretary Person 125 3000 3.75
5 Tester/Helper Person 125 3000 3.75
6 MCC/P&I staff Person 12 20000 2.4
7 Training on AI Person 20 2000 0.40
8 Training of farmers in GMP/GHP Person 250 2000 5.00
9 Training of farmers on animal
husbandry Person 66 2000 1.32
10 Training of dairy personnel
10.1 Dairy manager Person 2 20000 0.40
10.2 Production officers Person 8 20000 1.60
10.3 Dairy plant supervisors Person 9 20000 1.80
10.4 Technicians/Operators Person 7 20000 1.40
10.5 Milk marketing officers Person 7 20000 1.40
11 Training of MC members Person 3 12000 0.36
12 Institutional skill development 0 0 0 20.00
13 Dairy extension activities Prog. 7 1000 0.07
Total 57.45
269
Kasaragod District
procurement of the Union requirements. As the volume of

fluctuates between the flush and business is increasing, the
lean season. During lean season dependence on bank loan will be
union is procuring large quantity more in the coming years.
milk from other states for which
The working capital grant
payments are made in advance.
proposed under the NPDD will give
Large quantity of SMP shall be
good relief to the Union, as it will
kept especially during lean season
reduce heavy dependence on the
to meet the market demand for
banks for loan, as well as savings
liquid milk, curd, etc. During flush
in expenditure towards interest.
season funds are needed to stock
ghee, converted SMP, cream, etc. Value of 21 days milk collected
which are produced in excess of from the societies by the Malabar
normal market requirements. Union is about Rs 218 lakh during
Union is supplying cattle feed and 2013-14 which is expected to
other inputs to the societies on increase to Rs 248 lakh in the next
credit basis. Present supply of three years as shown in table 7.23.
cattle feed to societies is more than
700 MT per month. It is expected The Milk Union will be able to
to increase significantly in the manage the milk value from
coming years. internal resources if the funds for

the inventories and other goods
Union is at present resorting to are met from other sources. The
short-term loan from banks to amount required is shown in table
meet its working capital 7.24. It is far below the calculated
Table 7.23 Actual and Calculated Milk Value for 21 Days in Kasaragod
District
Milk Procurement (LLPD) Total

Average Total Milk
Milk
Milk Value
District 2013- Days Value
2014- 2015- 2016- Price (Base Year)
14 (EOP)
15 16 17 (Rs) (Lakh)
(Actual) (Lakh)
Kasaragod 0.36 0.35 0.38 0.41 28.88 21 218.33 248.66
270
Kasaragod District
milk value for 21 days. Hence an

amount of Rs 189.6 lakh is
suggested as working capital for
Kasaragod district on the basis of
the calculation shown in table
7.24.
271
Kasaragod District
Table 7.24 Working Capital Requirement for Three Years from 2014-15 for
Kasaragod District
Working No. of Unit 2014- 2015- 2016- Total

Unit
Capital Units Cost 15 16 17 Cost
Purchase of milk
KG 50000 300 45.00 60.00 45.00 150
powder
Purchase of
KG 6000 210 4.20 4.20 4.20 12.6
packing material
Purchase of
MT 150 18000 9.00 9.00 9.00 27
cattle feed
Total 56150 58.2 73.2 58.2 189.6
Annex-1
Information and Communication System - NPDD
The NPBBDD System will function as a client server architecture network with Six
centers at each district (Palakkad, Malappuram, Kozhikode, Wayanad, Kannur,
Kasaragod) and a central server system linking all these six centers with the following
objectives.
The Pilot project on Information and technology,

networking which is to make the data and
information available to all the DCS under
MRCMPU. The data processed from the Dairy is
stored on a Data Server which is called rack
server. This rack server is mounted inside a rack
for easy management purpose. The information
contains day to day activities of the dairy and the
societies linked to that dairy and also BMCS
related information (qty., quality, chilling cost, etc.) and period wise payment system
for the societies/BMCs.
The data in the rack server need to backup frequently

to store that data in a backup storage device for cold as
well as hot backup and also to backup to tape for the
data portability regularly to avoid data loss and to keep
data away in a secured place for a long period of time.
The HHB system is used to communicate with the society

collection centers and on the data collected via HHB from
collection center is imported directly to the society package to
avoid manual error and intervention for the easy processing the
data sheet and invoices and also will be used for the Marketing
(iv)
Kasaragod District
product ordering and cash collection activities.
The data and information is processed based on

Three-tier architecture (oracle database platform)
as a clientserver architecture in which the
computer data and data access can be developed
and maintained as independent modules for the
fast processing of transaction and information to
the DCS.
(v)
Kasaragod District
With the help of oracle web logic suite which can be used for
the clustering of data that enables scaling of applications with
high availability of data to the users for processing and can
deploy on cloud environment. This is a Server software
application that runs on a middle tier, between back-end
databases and related applications and browser-based thin
clients. Web Logic use to develop to connect users in a
distributed computing environment and to facilitate the
integration of applications with distributed corporate data and
applications.
Antivirus software to make the system protected from most

viruses, worms, Trojan horses, and other unwanted invaders
that can make the system malfunction. So to keep the system
(Hardware & Software) healthy and functional, need to
install a proper antivirus and should be updated with the
latest updations.
Desktop, Printers and switches - use to communicate among dairies

and DSC for data sharing among clients inside and outside for the
proper function of the system.
Onsite Software Analysis and evaluation includes the onsite

installation of Software at the DSC and Dairies and also to provide
proper training on how to use the software and its attached resources.
Software consultancy charges for our Enterprise

Resource Planning Solution for integrating all the
modules to make it centralized.
Lease line cost for the interconnectivity between Dairies and its
Subcentres (including MCC/MCP/Depots) for centralized management
and availability of data at any time from any locations under the units of
MRCMPU.
(vi)

Model Report For Benchmark Survey

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Centrally Sponsored Scheme

NATIONAL PROGRAMME FOR

Benchmark Survey Report

I am immensely grateful to Sri. P.T. Gopalakurup, Chairman, and

Thanking all once again,

Thiruvananthapuram Dr Unnithan N.R.

AHD/DAH Animal Husbandry Department

5 Wayanad District 141

6 Kannur District 186

7 Kasaragod District 227

Marketing Infrastructure Proposed for Malappuram District

Establishment of Laboratories in Kozhikode District under

Technical Input Services Components and Achievements in

Processing and Allied Equipments and Machineries Installed

1. NATIONAL PROGRAMME FOR BOVINE BREEDING

1.1 The Programme 2

1.1 The Programme during the 12th Five Year Plan. It

and holistic manner for attaining related to production, procurement,

higher levels of milk production processing and marketing of milk

and productivity, to meet the by milk unions/federations and

increasing demand for milk in the also extension activities including

country. training of farmers. The major

1.2 Objectives 1. Milk chilling facilities at

infrastructure for production levels.

of quality milk including cold 2. Civil works.

chain infrastructure linking 3. Equipment for Bulk Milk

consumers. 4. Milk Processing and

milk. 7. Cattle Induction.

potentially viable Milk 14. Rehabilitation of Defunct/

15. Planning and Monitoring.

the NPDD will support only those components put together in a

institutions are classified as current study. With the following

A single comprehensive proposal Fodder, Health care, Clean

covering the requirements of all milk production Inputs, Other

EIAs in the state shall be prepared Extensions Activities etc.),

by the SIA and submitted for Milk Processing and Milk

consideration of the GOI. The Marketing, Manpower

a situation analysis. The situation Production and Milk

analysis shall include, a) Pre- Procurement should also

project Baseline survey by an include number of functional

independent agency, b) funding dairy cooperative societies,

under earlier programs, c) role and milk suppliers, and average

capabilities of different players, daily milk procurement per

and d) and areas of operation. dairy co-operative society and

Accordingly, the Malabar Regional for MRCMPU for the year

Cooperative Milk Producers Union 2013-14.

Ltd. (MRCMPU) commissioned the 3. Bench Mark the quality

Dairy cooperative societies discussions, FGD and direct

(AI) programs, evaluation and 2010-11, Bench Mark Centrally

Table 1.2 Sample DCS and Households - Milk Consumption Survey

Sl. Rural Urban Total

and customers. The information overview of the programs

The primary and secondary

1.8 Organization of the Report

Executive Summary ..........................................................................13

The Palakkad district is one of the dairy. Also the product

aggressive marketing strategy milk production and support for

In order to promote cattle keeping

and expenses in all the districts. Wayanad, Kannur, Kasaragod) and

burden to the Union and the The suggested programs for

2.1 General Features holding size is 0.39 ha/household.

Fig 2.1 Trend in Cattle population Palakkad District