Tuesday, January 22, 2019

77th Dairy Pulse blog : Year 2019 must be an year of intolerance towards non compliance ( with Dairy Pulse from Jan 1-15th 2019)


Dear friends,
New year has begun and hope all of you must be busy with heavy influx of
milk at your processing plant in most part of the country. On one hand the
government is in look out for finding better alternative to polypacking for liquid
milk to protect environment, and on other hand the food regulator is trying to
create a more robust food safety eco system so as to protect consumers
concern about food safety.
With price of milk and milk commodities soaring , dairy industry in India is
going to see a lot of traction after around 18 months or so. We may also see a
bit of decline in milk production due to a large groups of farmers trying out
other diversified sources of agri produce than milk.
Focus on supporting the farmers with better training on producing clean milk
with better productivity and at a lower cost would be adopted by most of
private sector players at a much larger scale.
Its time for the dairy industry to think beyond the perils of adulteration and
farmer's distress in this year and to consolidate more towards making the
sector more profitable for all the stakeholders. The key questions to be
answered to carve out the future of dairy sector in India may start with the
following insight which I realized after talking to my mentors during my recent
annual break.
" The level of excellence of your system is inversely
proportional to tolerance level of your system to accept
anything but excellence."
In other words it is not important to work on improving your system to perform,
rather it is much more important to make your system zero tolerant to any non
compliance.
Let this year be an year of Zero tolerance to adulteration , sub standard
production, contamination of any sort at primary production level, farmer's
distress, unfair trade practice, inability to innovate better and more nutritional
dairy products, etc.
This zero tolerance may begin by making whole of the system to subordinate
Quality assurance for both receiving and releasing nothing but the compliant
and safe food from the factory.
This year I plan to share both domestic as well as global benchmark for
achieving such milestones in different areas of dairy operations.
I would also request all of you to share your story on how you made it happen
at your organizations in past.
Happy ereading
with best regards
Kuldeep Sharma
Chief Thinking Officer
Suruchi Consultants (ISO 9001:2008 Company)
+91-120-4320845
"Sustainable milk production is production by progressive communities"

Thursday, January 17, 2019

Year 2019 must be an year of intolerance towards non compliance

Dear friends,

New year has begun and hope all of you must be busy with heavy influx of milk at your processing plant in most part of the country. On one hand the government is in look out for finding better alternative to polypacking for liquid milk to protect environment, and on other hand the food regulator is trying to create a more robust food safety eco system so as to protect consumers concern about food safety.

With price of milk and milk commodities soaring , dairy industry in India is going to see a lot of traction after around 18 months or so. We may also see a bit of decline in milk production due to a large groups of farmers trying out other diversified sources of agri produce than milk.

Focus on supporting the farmers with better training on producing clean milk with better productivity and at a lower cost would be adopted by most of private sector players at a much larger scale. 

Its time for the dairy industry to think beyond the perils of adulteration and farmer's distress in this year and to consolidate more towards making the sector more profitable for all the stakeholders. The key questions to be answered to carve out the future of dairy sector in India may start with the following insight which I realized after talking to my mentors during my recent annual break.

" The level of  excellence of your system is inversely proportional to tolerance level of your system to accept anything but excellence."

In other words it is not important to work on improving your system to perform, rather it is much more important to make your system zero tolerant to any non compliance.

Let this year be an year of Zero tolerance to adulteration , sub standard production, contamination of any sort at primary production level, farmer's distress, unfair trade practice, inability to innovate better and more nutritional dairy products, etc.

This zero tolerance may begin by making whole of the system to subordinate Quality assurance for both receiving and releasing nothing but the compliant and safe food from the factory.

This year I plan to share both domestic as well as global benchmark for achieving such milestones in different areas of dairy operations.

I would also request all of you to share your story on how you made it happen at your organizations in past.

Happy ereading

with best regards
Kuldeep Sharma
Chief Thinking Officer
Suruchi Consultants (ISO 9001:2008 Company)

+91-120-4320845

Monday, December 17, 2018

Milk pouch used in India could fully cover Delhi and Kolkata together in an year

Dear friends,

Last fortnight the big news was about Unilever acquiring Horlicks at an impressive value of slightly less than USD 5 Billion. Patanjali also hinted for launching their IPO . Keventer's looked confident for gaining a high market share in Long shelf life market of Eastern region through their aseptic range of market milk in Tetrapak.

Maharashtra government once again put pressure on both plastic manufacturers and milk packers to make necessary arrangements for taking product stewardship to save environment. First a ban was notified but later in the wake of incapabilities of the eco system to manage such a huge load of plastic and later to make arrangements for its recycling , the order was postponed for a future date.

I just tried to visualize this menace of plastic being used by milk industry for milk pouching alone. I took some realistic numbers to see how much film is being used for packing milk in India.

Total volume : 5 crore litres in say half liters per day

Number of pouches : 10 crores per day

Size of a pouch film in 500 ml : 32 cm by 15 cm

Total surface area of 10 crore pouches per day : 4.8 sq km

Total surface area covered in an year : 1752 sq km which is slightly more than total area of Del;hi and Kolkatta put together

Daily quantity of plastic being used for 10 crore pouches considering 400 pouches per kg of film : 250 MT per day

Total Carbon foot print of 1 kg of manufacturing plastic  : 6 kg of Co2

Total carbon foot print in an year for plastic being used for packing milk in India : Around half million MT of Co2 emission

 I think these numbers could give a great opportunity for start ups to think out of the box and either develop systems to collect and recycle this plastic into a meaningful output or to develop valuable eco friendly packaging for a daily use commodity like milk.

Another area which needs immediate attention by one and all in this industry is how to produce milk products for world market which are free from aflatoxin, antibiotic and Pesticidal residue. The world market is showing some recovery and Indian manufacturers have a great opportunity to work upon by making products of global standards.

It might require a lot of capacity building at farmers level and our cooperatives are doing a very good job. Couple of leading players like Amul are now going one step further by looking at mycotoxins also. We need to think together, work together and act together by sharing the best practices at primary production level so as to ensure the safety in milk. 

Enforcement may not be the right trigger for such initiative. I think post operation flood , India is facing the crisis of abundance and now we again require someone to lead the nation like Dr Kurien for producing safe milk. In Indian culture also one avatar was not sufficient , as far as I know Vishnuji had to come 10 times to set the things right from multiple perspectives.

I seek suggestions and guidance from all the stakeholders on how to mobilize farmers to produce safe milk and make India the milk bowl of the world.

Happy e reading

with best regards

-- 
-- 
Kuldeep Sharma
Chief Thinking Officer
Suruchi Consultants (ISO 9001:2008 Company)

+91-120-4320845

Wednesday, September 19, 2018

86% of the milk sold in India is safe to drink as per 2011 survey : The truth unveiled

Dear friends,

I feel that the milk quality monitoring through collaboration of various farmer's group and regulator is gaining momentum and even in last fortnight adulterated milk and milk products were caught and confiscated. Now let us start thinking beyond adulteration and dark side of our dairy trade and find out solutions to develop a safe eco system for production, collection, processing and delivery of safe milk through out the supply chain.

I was surprised to see a series of messages on social media as well as print media talking about the same old story of 68% adulterated milk and some serious concern being raised by WHO relating to milk consumption to cancer or other health hazards. With this edition of Dairy Pulse I would request everyone to just delete this virus of 68% adulterated milk ( as per 2011 survey) from our minds. I have seen even senior and wise stakeholders mentioning it . Media just loves such bites but has any one thought of impact of this news on our farmers or industry ? 

So I decided to share the actual interpretation of that report to everyone which may be verified from the report also.

Actually the title of the report must have been as captioned above in the title as 

86% of the milk being sold in India is safe to drink as per 2011 survey


Salient findings of 2011 survey  report

* Not even a single sample was detected with Hydrogen peroxide, Sugar, Starch, Urea and vegetable fat

** Only one sample had salt and two samples had neutralisers and that too from Assam, and Nagaland only.

*** 100 % samples in which detergents  found were from Eastern region only where milk is in shortage .

**** Not even a single sample from any state from North, South ,West and Central region have shown use of any unsafe adulterant in both loose, packed or in rural or urban areas.

(Isn’t it remarkable for a country of our size and with so much of milk trade in place? )

The break up of 68.4% of total non compliance out of 1791 samples from all parts of the country is as follows :

a. Non compliance arising out of fat or snf or both is : 23.7 %
b. Non compliance arising out of addition of powder with fat or snf or both ( in some cases glucose also) is : 30.6 %  
Total non compliance on fat/snf standards or addition of SMP : 54.3%

(Which makes total of non compliance or mixing of edible element for commercial gains as 54.3%. We can not make out whether this glucose was mixed in milk or not as there was not a single case wherein glucose was found alone in milk. It was always found with SMP. We may also infer that the intermediaries supplying to SMP plants may be doing it for commercial gains as they are supplying in large quantities to them. In other words the adulteration was not intended to be done in raw milk for sale directly to consumers.) 

Now let us look at the positive side of this survey which has not been mentioned in any of the media news since last seven years and not even highlighted by any stakeholder for that matter.

Not even a single sample was detected with Hydrogen peroxide, Sugar, Starch, Urea and vegetable fat. Only one sample had salt and two samples had neutralisers , rest all were detergents. Let us examine the results further.

a. Non compliance due to presence of detergents and Neutralisers : 14.05 % 
b   Non compliance due to presence of salt NaCl : 0.05 %
Total non compliance on standards or addition of detergent, neutralizer and salts : 14.1%

Which makes total non compliance of any form as 68.4%

Had media shared this report to the masses 7 years back, then our dairy industry would have been at a much better perceptual positioning with global and domestic stakeholders.

For the first time I am requesting all of you to share it with as many persons you know as possible for the benefit of the industry as well as dairy farmers.

Happy e-learning




Kuldeep Sharma
Chief Thinking Officer
Suruchi Consultants (ISO 9001:2008 Company)

+91-9810315831

Friday, September 7, 2018

Who patronizes adulterated milk and milk product industry in India ?

Dear friends,

Finally after our repetitive requests and sharing of perils of milk and milk products adulteration in Indian markets, a sliver lining was observed in last fortnight. 

There were plenty of raids by the regulator in North India on milk chilling centers and product manufacturing units especially for ghee, panir and khoa. The media also woke up and got sensitized to issue of emerging markets of analogues. Interestingly farmers association and local cooperatives also join these raids and thus reinforces their commitment towards responsible dairying.

I was also  interviewed by media and the first question being asked by them was "what's the harm in eating analogue products ? My straight response to them was that, it was more like cheating innocent consumers who were not aware that the dairy product ,which they are buying is actually not made up of dairy ingredients or from milk. It may be considered under Food Fraud even, but in the absence of very clear definition of food fraud in Indian context , I was unable to assert it further. ( Read first article "Dairy industry rues rising adoption of milk substitutes).

On the other side such products are taking away the opportunity of selling milk by the farmers ,as huge quantities of spurious milk products are being made using non dairy ingredients.

In an inspiring  interview by Sh Pawan Agarwal, CEO FSSAI (which can be watched on http://www.businessworld.in/video/FSSAI-Chief-Answers-Tough-Questions-on-Growing-Concerns-Around-Food-Safety/27-08-2018-1715/#.W4QrYaKcapc.twitter)  talked about integrating efforts of Fssai with ministry of agriculture and animal husbandry to produce safe milk at primary production level itself through sensitization.  This might sow the seeds of good farming practices at primary production levels . As industry we  also look forward for having some thing like farm safety supervisor on the lines of food safety supervisor to disseminate GAP at farmers levels in the country to make them aware of what should be done in order to grow safe food before actually it is processed at FBO level . It may begin with organic farming under Jaivik logo initiative . 

In another interview the regulator has mentioned about ongoing Milk quality Monitoring program under which real time sampling of milk in around 1100 cities in India would reveal the actual status of milk quality in the country by the end of this year including that of pesticide and insecticide traces.

I also request all responsible stakeholders of dairy industry to not to quote the misinterpreted version of milk adulteration survey 2011 in which media quoted that 68 % of milk in India is adulterated. Post that we have also conducted a milk adulteration survey 2016 -17 and now a similar study at a much larger foot print is going on. Such statement leads to a chaotic situation at global levels and it becomes very difficult for Indian dairy exporters to gain bargaining power while exporting their products in developed world. Unnecessarily they have to pass by much stringent market access as against other countries.

Now the question of the fortnight is that who patronizes this huge market of adulterated milk and milk products ? Is it being governed by some other industries ? Some could easily say that such products are manifestation of the relentless efforts of industries supplying those non dairy ingredients or chemicals . But still the question remains is  "who buys those ingredients and finally who become part of the revenue stream coming out of such spurious/analogue or adulterated milk and milk products "?

The answer is Dairy industry itself. 

If the same question is asked for some different industry then our answer is very simple e.g Who patronizes software piracy business ?.........the answer would be software industry.

So if we ask that who  patronizes adulterated milk and milk product market ?..........then why cant we use our common sense and acknowledge it to be dairy industry itself.

I am glad that last fortnight a large number of stakeholders from cooperative, multinational and private sectors have opened up and shared their concerns over adulterated ghee and analogue product market for paneer and khoa.

I leave the revered group to decide on how you could really make a difference in the lives of dairy farmers as well as safeguard the industry from the biggest Food fraud of the country in form of analogues in both organized and unorganized dairy sector.

One of the ways is simply sharing your concern with the regulator by simply dropping a mail to FSSAI with two requests for 

a. Defining analogues in the standards clearly and disallowing use of any dairy related terms in both product or brand categories and 

b. Requesting the regulator to issue a "Non dairy based product" logo for all those dairy_like products so that consumers could identify it at first glance itself.

Any other suggestion by the group is also welcome.

Happy e reading.

with best regards
-- 
Kuldeep Sharma
Chief Thinking Officer
Suruchi Consultants (ISO 9001:2008 Company)
C-49 Sector-65
Noida 201307

+91 9810315831
Safe Milk Mission : Our Goal for every Indian getting safe milk by 2025


Download Indian Dairy Map 2017 here https://tinyurl.com/y74o9uhc
12 weeks Online Dairy Development Program :  https://youtu.be/5iS432VlGc8
Safe Milk Mission in India : Greed or Compulsion :http://www.youtube.com/v/9sDKaP4ihVM
Episode 1: 3 Tips for getting safe milk by consumers : http://www.youtube.com/v/dqZ-YSZJxLQ    
Episode 2 : 3 Tips for producing safe milk at farmer end : http://www.youtube.com/v/5BQKfIFMiLQ

Friday, August 17, 2018

Lucky Number 3 : Fonterra trying their luck for the third time in India


Dear friends,

Last fortnight was full of news related to new  investments and entry of a few Multinational in dairy space. 
1.      Hindustan Unilever bought frozen dessert business of  Karnataka based Vijaykant Dairy and Food Products under the Aditya milks brand.
2.      Fonterra signed a JV with Future group
3.      Coke planned to relaunch their dairy based vio beverage vertical
4.      ITC began their polypack milk sales in Bihar
5.      Parag milk foods expanded their operations to North India by acquiring dairy processing infrastructure of Danone at Sonepat in Haryana .
6.      Britannia commenced milk procurement directly from the farmers near Pune as well as looking for some other location out of Maharashtra to expand their dairy business by setting up a plant .
7.      Doodhwala.com became the largest player selling around 27000 Liters fresh milk  through online platform and got further rounds of funding. Similar IT set up was also launched in Chennai through a promoter having an integrated dairy farm.
8.      Keventer's launched door delivery supplies of fresh milk through their online portal in Delhi and NCR.
Hearing all these news in just a fortnight is quiet motivating and inspiring for all stakeholders from the dairy sector. Still the issues of surplus stocks, over production of milk, below expectation pricing of milk for farmers are a few which needs quick redressals before certain regions in  Indian dairy sector enter into flush.

The good part is that the different departments of government and ministries are all ears to the suggestions and recommendations emerging out from various farmers group, think tanks  and industry associations for the betterment of industry and sustainability of Indian dairy farmers.

An august  forum of NDRI Graduates consisting of eminent personalities from dairy industry are planning a brainstorm on how to get Indian dairy farmers right price for their produce during their annual event on 14th and 15th sep 2018 at Karnal. We are also organizing a similar round table  in our annual conference on optimizing costs for sustainable dairying on 12th and 13th October at Pune. It would be only when every one would be contributing with their experience to find a plausible solution to this menace.

Now let me share a personal experience which led me to think more deeply on the impact of analog products in panir and cheese category on farmer's income. 

A couple of months back I received a call from a milk processor from Mumbai. He had a good sales of around 3 MT of panir per day and he was paying a good price to the farmers for milk. Suddenly a branded product from a leading dairy in western India launched a product which was sounding line panir and was made up of vegetable fat with milk solids. This product was available at around 60 % of the price of original panir . Similar cheap products were available in unpacked category also ( so called adulterated panir using vanaspati) due to absence of any standards for analog products under FSSAI.

The sale of this entrepreneur in Mumbai dropped down to 600 Kgs of panir per day and he was really in a mess. The farmers were contacting him regularly and he was not in a position to face them.Though he was trying to find solutions to make use of some technology by making panir cost effective and competitive with this analog product. When I worked on numbers then I found that if some technology could increase the yield of panir from 20 % to 30 % with full cream milk, then and only then his price could be compared to this analog product. On similar lines Mozarella cheese requires an increase in yield from 11 % to 15 % to match the price of analog with standardized milk.

I began to look at the manufacturing processes for both the products but could not find any quick solution and I better leave this issue for the research Institutes/organizations in dairy and food space space to launch studies to get better high yielding technologies  for making panir and cheese. 

In order to get the standards defined , I recommended it back to FSSAI to look at developing not only standards for analog products but also to develop labeling norms so as to prevent any culprit to sell analog dairy products with look alike names like Cheez, Paneera, Cheezy, Pizza Topping etc.

In my earlier blogs I have already mentioned about the immense adulteration in ghee segment and power of analog cream, butter (margarine) and ghee ( cooking medium ) to refrain farmers from selling their  production to  dairy industry with the shift in demand to these low cost unhealthy alternatives. 

I also request the research Institutes/labs to find appropriate technologies to identify mixing of vegetable oils in desi ghee at both qualitative and quantitative manner. We have a few sponsors who are ready to award the researcher for establishing protocol of testing adulterated ghee in a fool proof and scientifically proven manner. If required such studies could be imparted to IITs, ISC,NPL ,NDRI, and NCL also.


While the whole world including India is looking at Food frauds as the next big challenge, it is high time for industry and authorities to come together and prevent these culprits to sell products to innocent consumers due to sheer  ignorance and awareness. We have also recommended that a separate logo of non dairy product must be developed and be appropriately positioned on the packaging of such analogues so that the consumer is made aware . Even restaurants selling such analog products in their recipes must also mention that "analog panir or analog cheese used".

Looking at the large production levels of Ghee, Panir, channa and increasing demand of cheese in QSR and HORECA in the country, such practices may devoid our farmers to sell at least 10 % of their produce to the market. Most of the rasogolla manufacturers have already stopped making rasogolla with fat thus this analog might not affect the demand of milk but they might shift to making rasogolla with smp only.

At the end of the game the loser is either the farmer or the consumer. May I request all the stake holders of the industry to think over it and raise their voice and make representations to FSSAI through associations, groups or even at individual level .

It is high time for all of us to raise our voice. I alone may not be sufficient enough to handle this national crisis starting from adulterated milk itself.

Happy e learning.

with best regards

Kuldeep Sharma

Chief Thinking Officer 
Suruchi Consultants
C-49 sector-65
Noida

thinkdairy@gmail.com


Our Safe Milk Mission : Getting all consumers in India to get safe milk by 2025

Monday, July 16, 2018

Adulterated ghee and analog milk fat sector : A wolf in the sheep's clothing (65th Dairy Pulse 1st to 15th July, 2018)


Dear friends,

Last fortnight saw some good developments in terms of government extending support to dairy farmers and dairy sectors through their export subsidies policies and large players like Amul coming to the rescue of both farmers and consumers in Maharashtra. An interesting article in Business Today on organic milk farming( in which I was being interviewed by the journalist Ms Radhika  ) talked a lot about emerging trends in this sector with a few success stories. Two underlying facts about this sector as shared by me were long gestation period of this sector ( so a start up needs to be patient enough for 5-6 years at least with deep pockets) and  need of regulatory for organic foods ( on which FSSAI is already doing a commendable work). A news related to new norms for organic certification requirements from FSSAI is also part of this bulletin.

A very good news related to dairy sector is about an investment of close to 140-150 billion Rupees ( Rs 14000-15000 Crores)  in next three years as per Crisil report. Amul is looking at around 35 -40 % of this investment followed up by other leading private sector players like Hatsun, Heritage, Parag and others. It would definitely shows a positive sentiment in the sector for those who are getting too depressed due to current dairy situation in India.

An interesting article in Indian Express strongly professed the idea of India to focus on revenue generation through its livestock beyond milk also. It states that if Modi ji wishes to double the farmer's income then Livestock sector must be able to gain its revenue from both of its streams like beef and milk. In current scenario the prices of milk or prices of SMP in global market is not the only reason for farmer's pathetic position. It is like harvesting half of the crop and maintaining the rest at your farm without any realization. A farmer has to keep animals with him irrespective of their productivity and maintain them with their limited resources and have to sustain the whole dairy farm business on paltry revenue generated through milk only. In rest part of the world animals maintained kept for beef purpose are reserves to be used on a rainy day.

Now let us focus on the title of today's blog in which I am trying to highlight the perils of this analog as well as adulterated category of products which are taking away the opportunity of emerging boom in higher consumption of milk and milk products due to improvement in socio economic condition of India. These products are also responsible for poor state of dairy farmers in a benign manner.

Just look at  the news which talks about sale of Ghee flavored cheap edible oils under the label of Desi ghee in central India's markets of MP, Rajasthan etc. It is not the only region where such cases are present, you may find in whole of India desi ghee being sold either adulterated with palm oil etc or simply using ghee flavored combination of  a mixture of oils, hydrogenated ( or partially hydrogenated)  fat and some typical fat based agents like dolphin oils to adjust all the regulator's requirements of BR, RM, FFAs etc. Even some brands of large dairy players are also negotiated with their qualities through some channel partners or some unknown patrons. Currently it seems that all scientific tests requirements by FSSAI for desi ghee have been very well manipulated by these culprits and they can easily pass all the tests even after adding edible oils and other low price fat based alternatives. 

Simultaneously under the nose of all of us there is a new segment which is very comfortably strengthening its foundation which is of cooking media. These people make use of edible oil, hydrogenated fat and milk fat ( to the tune of 5% or so) and later in their advertisements or packaging use terms like Desi or Ghee in a deceptive manner. All large format modern trade including the largest one are more than happy selling them as they are much cheaper in prices and lures innocent consumers due to lack of clarity on terms being used.


Considering Ghee market to be of around 15-20000 Crores and at an average price of Rs 300/kg accounts for around 7 % of total milk being produced in India or 14 % of the total marketable surplus milk in India . In this market we are not considering the ghee made at homes in rural as well as urban India. 

Suppose that till date these people are able to replace only 5 % of the total ghee market which is a highly conservative figure for the sake of understanding the hole this sector is creating in the pockets of poor farmers. Milk equivalent of 5 % ghee equivalent is equal to half billion liters of milk or total annual milk production of whole of North Eastern states ( except Assam), Goa, Puducherry, Chandigarh, Dadar and Nagar Haveli put together.

At 10 % it is equivalent to whole of Himachal Pradesh and at 20 % you wont believe but it would cover total production of any of the states Odissha, Uttrakhand, J&K, Jharkhand  etc along with that of Delhi.

Key findings from above  : Only 5 %  adulterated ghee in market is equivalent to half billion litres of milk.


All these players from analog sector or spurious ghee supplying channels are showing better growth rates than  their dairy counterparts in all analog categories of cream, butter or cooking media on one hand or largely adulterated desi ghee  on the other hand. I am amazed that why the industry is so silent and letting these players grow and take away the rights of dairy farmers by supplying spurious products in the guise of desi ghee or butter or cream so easily.

I have already made a representation to the FSSAI for analog products and requested scientific panel in person to get the testing procedures for desi ghee redefined so that these adulterated products may be checked. I firmly believe that if the industry come together and make a proper representation to the FSSAI and other relevant authorities then surely our farmers would be able to get better prices for their products and would be able to dispose higher volumes of milk also.

In my forthcoming blogs I shall be covering on analog cheese and panir market where the situation is much worse than Ghee and fat based products.  As in case of panir and cheese the value chain is just at the door steps of farmers.

Happy e reading

with best regards

Kuldeep Sharma
Chief Thinking Officer
Suruchi Consultants (ISO 9001:2008 Company)
C-49 Sector-65
Noida 201307
thinkdairy@gmail.com