tag:blogger.com,1999:blog-81970859017170561872023-11-16T08:55:16.627-08:00Dairy GuruThink dairyhttp://www.blogger.com/profile/01274876854167304476noreply@blogger.comBlogger116125tag:blogger.com,1999:blog-8197085901717056187.post-18157761629624324362022-05-05T01:02:00.001-07:002022-05-09T01:03:28.887-07:00Don’t underestimate the power of a microbe: Precision Fermentation<p> <span style="background-color: white; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px;">Last week one piece of news made me think deeply and explore the vast impact of this disruption in the future. The news was about Remilk establishing its world’s largest full-scale precision fermentation facility. This center is established in more than 750,000 square feet in Kalundborg, Denmark . At the new facility, Remilk will produce non-animal dairy protein for use in products like cheese, yogurt, and ice cream; in volumes equivalent to that produced by 50,000 cows each year. Considering 10000 Litres per annum of milk production per cow with 65% of them in milk; this plant will have a capacity to produce 1 millions litres per day equivalent to milk proteins.</span></p><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">We have been hearing a lot about many startups entering into the dairy and meat alternative industry using precision fermentation since the last few years. However most of the experts remained skeptical about scaling up of such lab scale endeavours. I thought of exploring the power of such a facility to disrupt the global dairy sector.</p><h4 style="box-sizing: border-box; color: #212121; font-family: Montserrat, sans-serif; font-size: 24px; letter-spacing: -0.05em; line-height: 1.3; margin: 0px 0px 1.4rem;">Minimum Global milk demand</h4><p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">First I looked at the total demand of milk in the world . I applied the 250 ml per capita paradigm by WHO on the population list of 232 countries in the world. I found some very interesting insights which could be seen in the following table. While the top 9 countries requires a minimum of 1.1 Billion litres of milk per day; the bottom 100 countries require 21 million litres of milk. The bottom 50 countries demand 1 million litres of milk per day only.</p><img alt="" class="CToWUd a6T" height="293" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEgaAF8-vDyUUXIyyx2LfMAIbOfdm2c90PrIqjICA5CTuTyU4-gC4B8NfctmTQQWzmmh5pSbNl1oUSwXjb81mgBwcTgrUksLdDEWt-o5pd1IA90Qqt1HtjSk8JRC7AbVdw0GOaQEPTrMj6k5fT1S0BKKm52nnUo6ih2ZGf6zar7J=s0-d-e1-ft" style="border-radius: inherit; border-style: none; box-sizing: border-box; cursor: pointer; height: auto; max-width: 100%; outline: 0px; vertical-align: middle;" tabindex="0" width="343" />Suruchi Research estimates that around 2000 such establishments as that by Remilk are capable of handling the minimum milk demand of the globe without a single cow.<p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">Doesn’t it look plausible now ? I leave the answers to all the experts around who have been ignoring this intervention and not acknowledging it as a threat to the dairy sector.</p><p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">Let us understand more about precision fermentation . As per GFI, “Ancient civilizations used microbial cultures to preserve foods, create alcoholic beverages, and improve the nutritional value and bioavailability of foods ranging from kimchi to tempeh. Over the past century, the role of fermentation has expanded far beyond its historical usage to a much broader range of applications. </p><p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">Fermentation now spans industrial chemistry, biomaterials, therapeutics and medicine, fuels, and advanced food ingredients. The suite of tools developed through fermentation’s evolution is now poised to revolutionize the food sector by accelerating the rise of alternative proteins. </p><h4 style="box-sizing: border-box; color: #212121; font-family: Montserrat, sans-serif; font-size: 24px; letter-spacing: -0.05em; line-height: 1.3; margin: 0px 0px 1.4rem;">Three types of primary fermentation</h4><p id="m_-1272478802968329988gmail-h-traditional-fermentation-uses-intact-live-microorganisms-to-modulate-and-process-plant-derived-ingredients" style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">1. Traditional fermentation uses intact live microorganisms to modulate and process plant-derived ingredients. </p><p id="m_-1272478802968329988gmail-h-biomass-fermentation-leverages-the-fast-growth-and-high-protein-content-of-many-microorganisms-to-efficiently-produce-large-quantities-of-protein" style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">2. Biomass fermentation leverages the fast growth and high protein content of many microorganisms to efficiently produce large quantities of protein. </p><p id="m_-1272478802968329988gmail-h-precision-fermentation-uses-microbial-hosts-as-cell-factories-for-producing-specific-functional-ingredients" style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">3. Precision fermentation uses microbial hosts as “cell factories” for producing specific functional ingredients. </p><p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">These ingredients typically require greater purity than the primary protein ingredients and are incorporated at much lower levels. These functional ingredients can improve sensory characteristics and functional attributes of plant-based products or cultivated meat. </p><p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">Precision fermentation can produce enzymes, flavoring agents, vitamins, natural pigments, and fats. Examples include Perfect Day’s dairy proteins, Clara Foods’ egg proteins, and Impossible Foods’ heme protein. </p><p id="m_-1272478802968329988gmail-h-innovations-are-occurring-across-all-three-types-of-fermentation" style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">Innovations are occurring across all three types of fermentation. </p><h3 style="box-sizing: border-box; color: #212121; font-family: Montserrat, sans-serif; font-size: 28px; letter-spacing: -0.05em; line-height: 1.3; margin: 0px 0px 1.4rem;">Investment and Technologies</h3><p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">There has been huge investments in precision fermentation projects in the past few years. Protein alternative companies raised $530 million in disclosed investment in 2018. In the space of one year this investment increased more than three-fold to $1.66 billion. Despite a global pandemic and financial uncertainty, confidence in protein alternative start-ups was resilient. Surprisingly investment in both 2020 and 2021 in this sector exceeded $3 billion. Historically, ingredient formulation has been the key focus for investors; with these businesses receiving more capital than any other category of food technology. Ingredient formulation describes the blend of proteins (e.g. soy, wheat and pea) . Alongside other plant-based ingredients to form a final meat or dairy alternative product are also used. Here, development chefs play a significant role in the success of the product.</p><img alt="" class="CToWUd a6T" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEiO92ORF03-7xHbW3W9gIAC3SxPpMsBlla7w0efeg2HgbzySm4n4GgcC09IiHa590HcweqDAMJs1T_CmfvF9WH9NfqQi3kbHKFfmEMAvc6g0gJNvkxAF5S30Oh4EsCoE-vSmpmhoEGzAOuggLVtwF22DEdaUo4yhdvn4Ozehb8kWgnG_643DA4ODUheLNY=s0-d-e1-ft" style="border-radius: inherit; border-style: none; box-sizing: border-box; cursor: pointer; height: auto; max-width: 100%; outline: 0px; vertical-align: middle;" tabindex="0" />Source Food Strategy Associates UK<h4 style="box-sizing: border-box; color: #212121; font-family: Montserrat, sans-serif; font-size: 24px; letter-spacing: -0.05em; line-height: 1.3; margin: 0px 0px 1.4rem;">The trend is becoming a craze in India too.</h4><p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">Humane Society International/India recently concluded their second annual Humane Entrepreneurship Program with a pitch day. Their latest cohort displayed various innovations, right from lab generated tissue for cosmetic testing. Bovine milk made from microbes, plant based meat, plant based paneer, plant based egg to cruelty free men’s fashion accessories. The startups were BioDimension Technology, Phyx44, ProMeat, Naya M!lk, Ethik, and Plantish Foods.</p><p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">There are three reasons for technologies like precision fermentation to become the first choice of researchers and investors both.</p><ol style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; list-style-position: initial; margin-bottom: 1rem; margin-top: 0px;"><li style="box-sizing: border-box; margin-left: 15px;">Animal agriculture contributes greatly to global warming with a 16.5 share of global greenhouse emissions.</li><li style="box-sizing: border-box; margin-left: 15px;">Around one third of the freshwater in the world is used for rearing livestocks and manufacturing animal products.</li><li style="box-sizing: border-box; margin-left: 15px;">In certain areas livestock farming also involves cruelty and poor animal husbandry practices as a third factor.</li></ol><p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">In India these three factors may not be applicable at the same levels of severity as in the developed world. However we can not deny the benign cruelty on Indian cattle which have been abandoned by the farmers. This reminds me of a famous quote by Margaret Read.</p><img alt="Bonnie Low-Kramen on Twitter: ""Never underestimate the power of a small group of people to change the world. In fact, it is the only thing that ever has." -Margaret Mead https://t.co/n3HYX9piGv" /" class="CToWUd a6T" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEgfpvpES8HEsEmfHC3tTymtApZup6tuHS3RXM4U85U0JWwbCvKrKxZsMxxTW2JWs9dw84XiO4_-5cMdicOqil3R7gAsqkHoECLwK_b4GHJj29QKpnff6kdJd9eOTMsdL1IX7Or-wBD76SgxJK7BM0o=s0-d-e1-ft" style="border-radius: inherit; border-style: none; box-sizing: border-box; cursor: pointer; height: auto; max-width: 100%; outline: 0px; vertical-align: middle;" tabindex="0" /><h2 style="box-sizing: border-box; color: #212121; font-family: Montserrat, sans-serif; font-size: 32px; letter-spacing: -0.05em; line-height: 1.3; margin: 0px 0px 1.4rem;">Indian scenario</h2><p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">I can see this small group of bio-engineering-enthusiasts building a better world for the coming generations. I won’t be surprised to relish lab made cheese, paneer, protein shakes, greek yogurts, widely available in Indian-markets by 2025-26.</p><p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">It is projected that by 2030, 50% of auto sales in India will be of electric vehicles. The disruption in food also is likely to follow the same trajectory.</p><p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">As per the findings in a report by Rethinkx “<span style="box-sizing: border-box; font-weight: bolder;">By 2030, demand for cow products will have fallen by 70%. Before we reach this point, the U.S. cattle industry will be effectively bankrupt. By 2035, demand for cow products will have shrunk by 80% to 90%.</span> <span style="box-sizing: border-box; font-weight: bolder;">The cost of modern foods and other precision fermentation products will be 50%-80% lower than the animal products they replace</span>;<span style="box-sizing: border-box; font-weight: bolder;"> which will translate into substantially lower prices and increased disposable incomes.</span> “</p><p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">This is the right-time for the experts and think-tank of our country to assess the future-scenarios linked to these disruptions. Underestimating these disruptions today may cost too much tomorrow.</p><p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">I invite comments from all members of our worthy dairy fraternity on their views on this changing scenario.</p><p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">Happy e reading</p><p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">with best regards</p></div><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><br /></div><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><div data-smartmail="gmail_signature" dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><span style="font-size: 12.8px;">-- </span><br style="font-size: 12.8px;" /><div dir="ltr" style="font-size: 12.8px;">Kuldeep Sharma<br /><div>Chief Thinking Officer</div><div>Suruchi Consultants (ISO 9001:2015 Company)</div><div><br /></div><div>+91-9810315831</div><div><img class="CToWUd" height="64" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEjuieeTUWa7KMtSQtpyGhTCyRin90rPrJm77idP6bm0_wNvWSoKN2ISUgrVCZtQvnYJOq8E7mjo42_rscCVAcY__c_gXTnRfuyWZftpdAoyI69sNTQMRfqI1vmJl6zfIuYnJcG-w2MpME3W_Rj_-rMYWZmuFvfR1rVEvEQvhVf1WmDvSS8qjM3xvjmyL2FSvZBpt9SdJxZHA-Yy4g=s0-d-e1-ft" width="96" /></div></div></div></div></div></div></div>Think dairyhttp://www.blogger.com/profile/01274876854167304476noreply@blogger.com0tag:blogger.com,1999:blog-8197085901717056187.post-54539884091595331342022-04-18T01:01:00.001-07:002022-05-09T01:02:16.778-07:00Subsidy to dairy cooperatives must ensure nutritional efficiency also<p> <span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">I recently received a heart touching story from one of my dear friends about the genesis of Syndicate Bank. The bank had merged with Canara Bank in 2020. .</span></p><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><p><em>There are three reasons why Syndicate Bank is important in the evolution of India as a wealth generator</em> ;<em> and for working towards the upliftment of the masses.</em></p><p>"<em>Firstly, it was born out of a belief that an innovative person cannot really generate wealth for himself on a sustainable basis unless he works out a way to make his community wealthy as well.</em></p><p><em>Secondly, it was the only large bank in India to locate its headquarters in a rural area </em>;<em> In the 1930s Manipal was still a village.</em></p><p><em>Thirdly, even before CK Prahalad arrived , its promoters knew about how wealth could be found at the bottom</em>-<em>of</em>-<em>the-pyramid.</em>"</p><h4>Genesis of Syndicate Bank</h4><p>The bank itself was a brainchild of Tonse Madhav Ananth Pai, who went to Bangalore to study medicine. His parents did not allow him to go to Japan for further studies and persuaded him to serve the poor population of his fishing village. That broke the boy's heart. He wanted to study more. And he knew that a fishing village would provide him neither money, nor the intellectual challenge.</p><p>Till one day, he had his Eureka moment. He realised that one reason why he was not earning-enough was because the people around him were also not earning-enough. Could he change that?</p><p>He began strategizing a social revolution that India had never seen or imagined. Dr Pai convinced the poor women visiting him for the treatment of their kids normally. He motivated women to save for the sake of their kids and to ensure that these kids do not end up like their fathers.</p><p>Dr Pai began to accept savings in coins from 0.25 paisa per day. Soon that culminated into a corpus of a few thousand Rupees. The 25 paise deposit scheme came to be known as the Pygmy Deposit scheme.</p><h4>Our story begins from here</h4><p><em>It was time to go to phase 2 of the plan. He told them that their children were falling ill very frequently because they consumed only fish and rice. He urged them to give the children a glass of milk every day. That was impossible. A glass of milk was unaffordable. So Pai urged them to buy a cow for their houses.</em></p><p><em>They laughed: "We cannot afford a glass of milk, and you want us to buy a cow?" But Pai gently told them that he could finance the cows for the women.</em></p><p>And repayment was also painless, he explained: <em><strong>"Just give your child a glass of milk, and I shall purchase the rest of the milk from you and adjust the cost of the cow.</strong></em>" <em>Within a short while, there were so many cows in the village that Pai could not purchase all their milk. <strong>He therefore formed a milk cooperative. </strong>T</em>his must have been amongst the first few Milk cooperatives in India, even before Amul came into existence.</p><p>How inspiring !</p><p>There are two key takeaways from this story. Firstly a doctor endorsed the need for a glass of milk for the children born in a fishing village. Secondly a cooperative is not needed to provide a glass of milk to a child; rather it is made to take care of the milk which is left after giving a glass-of-milk to a child. Importantly this cooperative was created at a place where no one ever thought of introducing milk as a source of protein as the area was having fish as a primary source of proteins.</p><h4>How do most cooperatives behave today ?</h4><p>Now let us look at the current intent of cooperatives . They have a tendency to practically conquer the market and enter into all the red oceans. Most of the time these cooperatives tend to create their presence in Tier1 and 2 cities. There are eight metropolitan tier-1 cities – Delhi, Mumbai, Bangalore, Chennai, Hyderabad, Kolkata, Ahmedabad and Pune. On the other hand, 104 cities are categorised as tier-2. Barring few, most of the cooperatives are hardly interested in entering into the areas where milk is needed to fill the nutritional gaps.</p><p>It is also seen that a few of the cooperatives who are highly subsidised by the government are trying to penetrate into Metro cities like Mumbai and converting the already red ocean into deep red. I feel that the government must lay clear mandate in front of the cooperatives which have been subsidised for market and product diversification. The purpose to subsidise must be larger than the subsidy.</p><h4>Subsidies may be conditional and linked to diversification</h4><p>The Government may ensure that all subsidies are conditional. There is no harm in increasing the subsidies subject to a positive impact on improvement of milk availability in all parts of the country as well as ensuring nutritional sufficiency for all children in the country. They may diversify their markets to develop the areas where the children are malnourished , wasted and stunted. Only 40% states in India produce almost 90% of the milk. Despite subsidizing this sector for so long. Milk must be made as a mandatory product under ODOP program by MOFPI and relevant msme may be funded under PMFME.</p><p>The cooperatives may also diversify their portfolio in order to develop nutritional and fortified dairy products with differential pricing for both rural and urban areas. They may follow the Grameen-Danone model of Bangladesh. These subsidised cooperatives must understand that by making the low value added product portfolio may not make them sustainable.</p><p><em><strong>Subsidies create more of whatever is subsidized. Llewellyn Rockwell</strong></em></p><p>So it is always good to subsidise a valuable context. Currently the milk subsidies are creating surpluses which are then converted into commodities. The future must be to make value added products out of commodities with the judicious use of subsidies.</p><p>India has a very high bandwidth of average milk availability from around 100 to 450 ml in the four regions. The government may develop a master plan to normalise this milk availability; and also ensure that the milk is being converted into nutritional; value -added dairy products and consumed by the neglected segment of the society.</p><p>The readers may also share their comments and insights on how to evolve a more responsible and impactful milk subsidy paradigm.</p><p>Happy e reading</p><p><br /></p><p>with best regards<span style="font-size: 12.8px;">-- </span></p></div><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><div data-smartmail="gmail_signature" dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr" style="font-size: 12.8px;">Kuldeep Sharma<br /><div>Chief Thinking Officer</div><div>Suruchi Consultants (ISO 9001:2015 Company)</div><div><br /></div><div>+91-9810315831</div><div><img class="CToWUd" height="64" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEjuieeTUWa7KMtSQtpyGhTCyRin90rPrJm77idP6bm0_wNvWSoKN2ISUgrVCZtQvnYJOq8E7mjo42_rscCVAcY__c_gXTnRfuyWZftpdAoyI69sNTQMRfqI1vmJl6zfIuYnJcG-w2MpME3W_Rj_-rMYWZmuFvfR1rVEvEQvhVf1WmDvSS8qjM3xvjmyL2FSvZBpt9SdJxZHA-Yy4g=s0-d-e1-ft" width="96" /></div></div></div></div></div></div></div>Think dairyhttp://www.blogger.com/profile/01274876854167304476noreply@blogger.com0tag:blogger.com,1999:blog-8197085901717056187.post-60822386800705159932022-04-07T01:00:00.001-07:002022-05-09T01:00:40.807-07:00Milk subsidy to the farmers : A tool for development or a weapon to kill<p> <span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The Meteorological Department has said that there is a possibility of severe heat in most parts of the country; this year between March and May. The IMD said that areas from west to central and northwest India will have a heat-surge between March and May;and the temperatures will go above normal. In other words, this year’s forecast says that the entire nation will witness a record-breaking surge in temperatures.</span></p><p id="m_-7531019212737428674m_-3997085998538982283gmail-2" style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">There has been an acute shortage of milk in the country. The cost of production of milk is also increasing due to inflationary pressure on feed, fodder and logistics . The farmers need a reasonable price for their produce. The method of imputed costs in agriculture prevails over the computed costs. The dairy farmers are not much aware of their real cost of milk production.</p><h2 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif;">Farm Gate price computation</h2><p id="m_-7531019212737428674m_-3997085998538982283gmail-2" style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Normally the milk buyers fix the Milk procurement prices.The Dairy cooperatives play an important role in deciding the milk prices. Amul has always set up bench marks for giving the best prices to their farmers. Amul is a role model and all other players try to follow the suit .</p><p id="m_-7531019212737428674m_-3997085998538982283gmail-2" style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The procurement of total surplus milk in India is run by the following players in the organised sector :</p><p id="m_-7531019212737428674m_-3997085998538982283gmail-2" style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">a.State run Cooperatives</p><p id="m_-7531019212737428674m_-3997085998538982283gmail-2" style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">b.Private cooperatives</p><p id="m_-7531019212737428674m_-3997085998538982283gmail-2" style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">c. Farmer producer companies</p><p id="m_-7531019212737428674m_-3997085998538982283gmail-2" style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">d. The private sector</p><h2 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif;">Subsidies and Supports are not bad</h2><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Many states in India are giving direct subsidies to milk producers. Only the dairy farmers registered with the state dairy cooperative federation get these subsidies .The dairy farmers must get the necessary support for their sustainability. These supports may cover their major cost of rearing non productive animals in their backyards as well as higher input costs. An in depth cost benefit analysis of dairy farm business must be carried out before computing these subsidies.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">These subsidies also must have an objective of either increasing milk production, improving quality and filling in the gaps between flush and lean production. The farmers may not require the subsidy support throughout the year. It shows the lack of research behind developing a dairy development program by the state cooperatives. These subsidies must be empowering by nature and must have a timeline for discontinuation.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Excessive subsidies start to cross subsidise the inefficiencies of the beneficiary organisations also over a period of time. The most important point is that the subsidies must be democratic and inclusive by its nature.</p><h2 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif;">Milk subsidy -A case study</h2><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">There are many states which are giving milk subsidies to its farmers. The state cooperatives provide these subsidies to their registered members only. Karnataka, Rajasthan, Haryana ( Rs 5 /liter from April to September) , Kerala, Telangana , etc are amongst a few of the states offering these subsidies.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">In one of the states , the subsidies were increased from Rs 2 per litre to Rs 5 per litre from 1st April. There are around 90 lakhs rural households in that state. It is said that around 80% of them rear cattle. Let us say that there are around 70 lakhs rural households which do dairy farming. The state dairy cooperative Federation has around 9 lakhs registered farmers. A large Farmer producer company from the state also has one lakh registered dairy farmers.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">However the subsidy will be provided to 9 lakh farmers of the state cooperative only. Which means that 61 lakhs dairy farmers including 1 lakh from the farmer producer organization will not be able to get this benefit.</p><h2 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif;">Does it make the subsidy inclusive in any sense ?</h2><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">In India most of the dairy players increased their milk prices from March 1 st due to very high input costs. This was followed by most other dairy companies including the state cooperative dairy federation we are analysing now. However after the announcement of the Rs 3 additional milk subsidy, the state federation rolled back their price increase. What does this mean in simple business terms ?</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">First you are getting your milk procurement becoming costlier through subsidies, thereby making competition suffer. Secondly you are using this subsidy as a market weapon to maintain your market position by being competitive by Rs 2 per liter. Is it truly a level playing field ? My answer is no.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Can't we see the 15% farmers linked to the state cooperative enjoying their benefits in front of 85% of other farmers in the state.</p><h2 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif;">Reimagine subsidies</h2><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The better way should be to give subsidies to all the dairy farmers and then let the market forces decide on which of the companies collect milk from them. If all the farmers are getting the subsidy then let the most efficient dairy company give as much of a discount to their consumers as they can.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">I wish that the policy makers in India do better due diligence and subsidise the efficient eco system rather than the product or the producer. Let us reimagine this game of subsidies. Let us be more pragmatic and work for better animal productivity, cost effective feed and fodder management and excellent market linkages .</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">I seek your valuable comments and insights on creating a level playing field for the dairy industry in India.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><br /></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Happy ereading.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><br /></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">with best regards</p><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><div data-smartmail="gmail_signature" dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><span style="font-size: 12.8px;">-- </span><br style="font-size: 12.8px;" /><div dir="ltr" style="font-size: 12.8px;">Kuldeep Sharma<br /><div>Chief Thinking Officer</div><div>Suruchi Consultants (ISO 9001:2015 Company)</div><div><br /></div><div>+91-9810315831</div><div><img class="CToWUd" height="64" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEjuieeTUWa7KMtSQtpyGhTCyRin90rPrJm77idP6bm0_wNvWSoKN2ISUgrVCZtQvnYJOq8E7mjo42_rscCVAcY__c_gXTnRfuyWZftpdAoyI69sNTQMRfqI1vmJl6zfIuYnJcG-w2MpME3W_Rj_-rMYWZmuFvfR1rVEvEQvhVf1WmDvSS8qjM3xvjmyL2FSvZBpt9SdJxZHA-Yy4g=s0-d-e1-ft" width="96" /></div></div></div></div></div></div></div>Think dairyhttp://www.blogger.com/profile/01274876854167304476noreply@blogger.com0tag:blogger.com,1999:blog-8197085901717056187.post-56481179676002326452022-03-15T00:57:00.001-07:002022-05-09T00:58:45.631-07:00Who moved Fonterra’s Cheese for the second time in India since 2002 ?<p> <span style="background-color: white; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; white-space: pre-wrap;">Dear Friends,</span></p><p aria-label="Paragraph block" aria-multiline="true" id="m_-7510997486219621802gmail-block-0afad3f2-68cc-462d-879d-4e418cbf6267" role="group" style="background-color: white; box-sizing: inherit; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; line-height: revert; margin-bottom: revert; margin-left: auto; margin-right: auto; margin-top: revert; max-width: 840px; min-width: 1px; white-space: pre-wrap;">Britannia industries Ltd proudly announced their joint venture with Global leader Fonterra from New Zealand on March 25th 2002. The main objectives of the JV were sourcing, manufacturing and distribution of milk and milk products in India. The new company had full access to Fonterra's Research and development strengths . This access was mainly to help in further upgrading product quality and reducing product costs. </p><p aria-label="Paragraph block" aria-multiline="true" id="m_-7510997486219621802gmail-block-e8b76fcf-f5f4-4d12-b28f-2ad2fed90bab" role="group" style="background-color: white; box-sizing: inherit; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; line-height: revert; margin-bottom: revert; margin-left: auto; margin-right: auto; margin-top: revert; max-width: 840px; min-width: 1px; text-align: center; white-space: pre-wrap;"><em style="box-sizing: inherit;">In April 2008 Fonterra chose to exit the JV. </em></p><h4 aria-label="Block: Heading" aria-multiline="true" id="m_-7510997486219621802gmail-block-c8e56cab-1c10-4be2-8b17-9094e2885c0e" role="group" style="background-color: white; box-sizing: inherit; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; font-weight: revert; line-height: revert; margin-bottom: revert; margin-left: auto; margin-right: auto; margin-top: revert; max-width: 840px; min-width: 1px; white-space: pre-wrap;">Why did Fonterra choose to exit ?</h4><p aria-label="Paragraph block" aria-multiline="true" id="m_-7510997486219621802gmail-block-f1434c29-23a2-46ad-86ba-2b733d84e4e4" role="group" style="background-color: white; box-sizing: inherit; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; line-height: revert; margin-bottom: revert; margin-left: auto; margin-right: auto; margin-top: revert; max-width: 840px; min-width: 1px; white-space: pre-wrap;">Ms Vinita Bali, Chairman BIL(in 2008) said Fonterra’s mainstay is ingredients (liquid milk, primarily) and has very little presence in branded business. “The company primarily is a cooperative of several New Zealand farmers and it didn’t see a big opportunity in India right now for its core competency (i.e. ingredients),” she added.</p><p aria-label="Paragraph block" aria-multiline="true" id="m_-7510997486219621802gmail-block-d469cae6-05be-4ea3-a71c-06e101abbd41" role="group" style="background-color: white; box-sizing: inherit; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; line-height: revert; margin-bottom: revert; margin-left: auto; margin-right: auto; margin-top: revert; max-width: 840px; min-width: 1px; white-space: pre-wrap;">Mr Mark Wilson, Fonterra’s Managing Director – Asia Middle East, said: “For several years, Fonterra and Britannia have enjoyed a good business relationship. On an ongoing basis, we cast a critical eye over our investments to ensure that they reflect our key strategic priorities. While we are seeing a lot of growth in India, given the fragmented local milk supply that requires significant development, investing in India’s consumer dairy market is not a core priority for Fonterra at this time.”</p><p aria-label="Paragraph block" aria-multiline="true" id="m_-7510997486219621802gmail-block-218249b2-40de-4c8f-94ad-92a3839a28e0" role="group" style="background-color: white; box-sizing: inherit; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; line-height: revert; margin-bottom: revert; margin-left: auto; margin-right: auto; margin-top: revert; max-width: 840px; min-width: 1px; white-space: pre-wrap;">In the fiscal year 2007-08, the joint venture company registered approximately a turnover of Rs 143 crore but returned a net loss of a little over Rs 5 crore after tax. Its net worth stood at close to just Rs 3 crore as of March 31, 2008.</p><p aria-label="Paragraph block" aria-multiline="true" id="m_-7510997486219621802gmail-block-22567e50-85f1-44f5-aa47-1af920aec059" role="group" style="background-color: white; box-sizing: inherit; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; line-height: revert; margin-bottom: revert; margin-left: auto; margin-right: auto; margin-top: revert; max-width: 840px; min-width: 1px; text-align: center; white-space: pre-wrap;"><em style="box-sizing: inherit;">Later on January 19 2013, Britania bought out Fonterra's stake in dairy joint venture.</em></p><h4 aria-label="Block: Heading" aria-multiline="true" id="m_-7510997486219621802gmail-block-5f033e4c-f308-410e-bacb-17d6a8bd8e4f" role="group" style="background-color: white; box-sizing: inherit; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; font-weight: revert; line-height: revert; margin-bottom: revert; margin-left: auto; margin-right: auto; margin-top: revert; max-width: 840px; min-width: 1px; white-space: pre-wrap;">The Second innings : Fonterra Returns</h4><p aria-label="Paragraph block" aria-multiline="true" id="m_-7510997486219621802gmail-block-3cd9abc7-0ea0-4aaa-a64f-b5267b447c46" role="group" style="background-color: white; box-sizing: inherit; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; line-height: revert; margin-bottom: revert; margin-left: auto; margin-right: auto; margin-top: revert; max-width: 840px; min-width: 1px; white-space: pre-wrap;">On 8th August 2018 exactly after a decade of quitting Indian dairy space, Fonterra returned back. But this time, Fonterra announced a joint venture partnership with one of India’s largest consumer companies; Future Consumer Ltd, to produce a range of consumer and foodservice dairy products . Which will help meet the growing demand for high-quality dairy nutrition in India. The vision of Fonterra's COO Lukas Paravicini on reentering into India are shared as below. </p><p aria-label="Paragraph block" aria-multiline="true" id="m_-7510997486219621802gmail-block-132d2fe3-b756-4d50-915d-7c40f1ed0bb9" role="group" style="background-color: white; box-sizing: inherit; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; line-height: revert; margin-bottom: revert; margin-left: auto; margin-right: auto; margin-top: revert; max-width: 840px; min-width: 1px; white-space: pre-wrap;">This partnership also didn't last long . And last week in March 2022 , Fonterra decided to terminate its JV with Future Consumer Ltd. "Market disruptions during the pandemic and post pandemic times have been the main cause for this decision. Despite all the challenges, this JV launched its Dreamery range of milk shakes, Yogurts and Ghee. Indian consumers lied and appreciated all the products under Dreamery Brand. </p><div style="background-color: white; border-radius: inherit; box-sizing: border-box; color: #222222; display: inline-block; font-family: Arial, Helvetica, sans-serif; font-size: small; height: auto; max-height: 1093.16px; max-width: 1450px; min-height: 20px; min-width: 26.5285px; outline: 0px; width: auto;"><img alt="This image has an empty alt attribute; its file name is image-3-1024x772.png" class="CToWUd a6T" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEiMS0KlpjDbB2ffF6xwU2TiDZ5Psl5r1UIIR7ENxRkPjZDc_bPOBQU439IvvqKowLS1pbDD5JcevYU8wyZozcEmr9Tgd9H8GcdUP18qSy39Vj13yWbLkCjdG7FSWm9appN_hsOouN-OA5qZ1I7-8oHxjlIK9BPJGCgjQkaZKHk7mEaLJGflhH_o=s0-d-e1-ft" style="border-radius: inherit; border: none; box-sizing: inherit; cursor: pointer; display: block; height: inherit; max-width: 100%; outline: 0px; width: inherit;" tabindex="0" /><div style="box-sizing: inherit; outline: 0px;"></div></div><div style="background-color: white; border-radius: inherit; box-sizing: inherit; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small; opacity: 0; outline: 0px;"></div><h4 aria-label="Block: Heading" aria-multiline="true" id="m_-7510997486219621802gmail-block-e3d611b3-d84a-4186-8370-5aba9c048ffe" role="group" style="background-color: white; box-sizing: inherit; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; font-weight: revert; line-height: revert; margin-bottom: revert; margin-left: auto; margin-right: auto; margin-top: revert; max-width: 840px; min-width: 1px; white-space: pre-wrap;">Is Indian turf not fertile for Global dairy players ?</h4><p aria-label="Paragraph block" aria-multiline="true" id="m_-7510997486219621802gmail-block-138ee389-f248-44cb-b3ee-5135a0446b59" role="group" style="background-color: white; box-sizing: inherit; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; line-height: revert; margin-bottom: revert; margin-left: auto; margin-right: auto; margin-top: revert; max-width: 840px; min-width: 1px; white-space: pre-wrap;">The exit of a global leader with presence in around 130 countries from India raises a lot of questions. This is not the first time that a global dairy has quitted business. French leader Danone also moved out of Retail value-added segment of yogurts and milk in 2018. Danone is still continuing to remain invested in India through well established brands like Protinex, Aptamil, Farex, Dexolac and Neocate.</p><p aria-label="Paragraph block" aria-multiline="true" id="m_-7510997486219621802gmail-block-bd856bfe-db1c-4698-987f-3241101381b3" role="group" style="background-color: white; box-sizing: inherit; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; line-height: revert; margin-bottom: revert; margin-left: auto; margin-right: auto; margin-top: revert; max-width: 840px; min-width: 1px; white-space: pre-wrap;">“We will continue to have a presence in India through Anchor Food Professionals and our Ingredients business; and will explore opportunities to grow access for our New Zealand milk as they come up;” Fonterra’s Asia Pacific chief executive, Judith Swales said.</p><p aria-label="Paragraph block" aria-multiline="true" id="m_-7510997486219621802gmail-block-82d9c509-bf94-439a-96ad-026d2238f843" role="group" style="background-color: white; box-sizing: inherit; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; line-height: revert; margin-bottom: revert; margin-left: auto; margin-right: auto; margin-top: revert; max-width: 840px; min-width: 1px; white-space: pre-wrap;">It is surprising to see that while most Indian players improved their bottom lines during the pandemic period; the global giants were unable to take the advantage. </p><p aria-label="Paragraph block" aria-multiline="true" id="m_-7510997486219621802gmail-block-4f41bcc5-9910-498f-b715-c15374d1224a" role="group" style="background-color: white; box-sizing: inherit; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; line-height: revert; margin-bottom: revert; margin-left: auto; margin-right: auto; margin-top: revert; max-width: 840px; min-width: 1px; white-space: pre-wrap;">So what are the key reasons for these large global players to struggle on Indian soil ?</p><p aria-label="Paragraph block" aria-multiline="true" id="m_-7510997486219621802gmail-block-d038eaea-d869-46ae-9ba9-e8fa61772092" role="group" style="background-color: white; box-sizing: inherit; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; line-height: revert; margin-bottom: revert; margin-left: auto; margin-right: auto; margin-top: revert; max-width: 840px; min-width: 1px; white-space: pre-wrap;">Judith quoted that though India was a large dairy consuming population but there was restrictive trade access for New Zealand dairy. The other key reasons as being quoted by other players from time to time are fragmented milk procurement and dependency of fresh milk products sales on General trade. In both the situations the infrastructure requirements at both the terminals of the dairy value chain is a big challenge along with poor cold chain logistics. </p><p aria-label="Paragraph block" aria-multiline="true" id="m_-7510997486219621802gmail-block-6011a212-0c11-4998-b0a2-61ea0ce8fac8" role="group" style="background-color: white; box-sizing: inherit; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; line-height: revert; margin-bottom: revert; margin-left: auto; margin-right: auto; margin-top: revert; max-width: 840px; min-width: 1px; white-space: pre-wrap;">There have been mentions of challenges related to absence of level playing field for private sector players as against the dairy cooperatives. The government also recognises and supports these cooperatives more than the private sector. Protection of cows and dairy farmers has been the main objective of the Indian government which is to a certain extent reasonable also for a developing nation like India. Higher market share of the unorganised sector in the dairy industry is another big problem. </p><h4 aria-label="Block: Heading" aria-multiline="true" id="m_-7510997486219621802gmail-block-7162e7ce-e48b-45cb-9975-9792f8d32c6b" role="group" style="background-color: white; box-sizing: inherit; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; font-weight: revert; line-height: revert; margin-bottom: revert; margin-left: auto; margin-right: auto; margin-top: revert; max-width: 840px; min-width: 1px; white-space: pre-wrap;">Does Value have a different connotation in India ?</h4><p aria-label="Paragraph block" aria-multiline="true" id="m_-7510997486219621802gmail-block-c8ad137d-b953-47a8-8c63-ab0855d88c23" role="group" style="background-color: white; box-sizing: inherit; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; line-height: revert; margin-bottom: revert; margin-left: auto; margin-right: auto; margin-top: revert; max-width: 840px; min-width: 1px; white-space: pre-wrap;">At the end we must also examine the existing product mix of dairy products in India. During the pandemic, most of the companies in liquid milk supplies showed very good results. Indeed Liquid milk became the highest value added product during the pandemics. As far as global players are concerned, it is very difficult for them to build a network of milk procurement as well as market milk distribution at competitive rates. </p><p aria-label="Paragraph block" aria-multiline="true" id="m_-7510997486219621802gmail-block-a7f1c21b-9cae-42b8-9165-10e3dc25a298" role="group" style="background-color: white; box-sizing: inherit; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; line-height: revert; margin-bottom: revert; margin-left: auto; margin-right: auto; margin-top: revert; max-width: 840px; min-width: 1px; white-space: pre-wrap;">The consumers on the other hand are happy talking about health and nutrition but are too price sensitive while spending money to purchase the value added dairy products. They have hardly contributed in uplifting the per capita consumption bar in value added dairy product categories. </p><p aria-label="Paragraph block" aria-multiline="true" id="m_-7510997486219621802gmail-block-8f3acbe5-75f3-4362-943a-40a4df660556" role="group" style="background-color: white; box-sizing: inherit; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; line-height: revert; margin-bottom: revert; margin-left: auto; margin-right: auto; margin-top: revert; max-width: 840px; min-width: 1px; white-space: pre-wrap;">The time is changing and a new era of health and nutrition conscious consumers is coming above the absolute threshold. In this decade the Indian dairy industry is all set for a paradigm shift. The organised sector share is bound to increase from around 40% to close to 60% by 2030. The product mix will also have liquid milk share squeezed to 55-60% from 67% currently and the value added products will almost be 30-35% by 2030. </p><h4 aria-label="Block: Heading" aria-multiline="true" id="m_-7510997486219621802gmail-block-c61fce71-da7f-443d-b85d-bcc223ea8e53" role="group" style="background-color: white; box-sizing: inherit; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; font-weight: revert; line-height: revert; margin-bottom: revert; margin-left: auto; margin-right: auto; margin-top: revert; max-width: 840px; min-width: 1px; white-space: pre-wrap;">Dairy is part of fragmented industries </h4><p aria-label="Paragraph block" aria-multiline="true" id="m_-7510997486219621802gmail-block-8e8efa1e-42e1-4f9d-8c22-beeded1e8306" role="group" style="background-color: white; box-sizing: inherit; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; line-height: revert; margin-bottom: revert; margin-left: auto; margin-right: auto; margin-top: revert; max-width: 840px; min-width: 1px; white-space: pre-wrap;">There is no harm looking at the evolving Indian dairy-market to be more structured across the supply-chain in the future. There are IT professional groups like mooMark , milk lane etc who are creating a smart network of milk procurement . The online delivery companies like Milk Basket, Zepto are doing the same for the last mile delivery. Such startups may create plug-and-play opportunities for the Global brands to establish their local dairy-value-chain in no time in the future.</p><p aria-label="Paragraph block" aria-multiline="true" id="m_-7510997486219621802gmail-block-8ad8bd85-0c86-4aff-be86-7551e7e22bcd" role="group" style="background-color: white; box-sizing: inherit; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; line-height: revert; margin-bottom: revert; margin-left: auto; margin-right: auto; margin-top: revert; max-width: 840px; min-width: 1px; white-space: pre-wrap;">Michael Porter in his seminal work on competitive strategy talked about Fragmented industries in 1980. These are the industries with low entry barriers, no economies of scale, high transportation costs and no size advantage while dealing with the consumers. Dairy comes under this category in India. However now few brands like Amul, Mother Dairy, Hatsun, Parag, Heritage etc are bringing economies of scale with multi state presence.The government is also promoting the large scale investments in the sector . </p><p aria-label="Paragraph block" aria-multiline="true" id="m_-7510997486219621802gmail-block-e6982602-76f2-40d7-871f-11454be6b2ce" role="group" style="background-color: white; box-sizing: inherit; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; line-height: revert; margin-bottom: revert; margin-left: auto; margin-right: auto; margin-top: revert; max-width: 840px; min-width: 1px; white-space: pre-wrap;">The global brands have more insights about the Indian dairy market now than in the past. Nestle, Lactalis have shown the path to deep dive and establish the milk procurement first. Lactalis has also shown that the inorganic growth in India has a cost but it is plausible. Danone and Fonterra have highlighted the complexities of distribution channels for fresh value added products in India. Like Edison , the global players have also learnt a few of the ways which would undermine their big plans to establish a base in the Indian dairy market. </p><p aria-label="Paragraph block" aria-multiline="true" id="m_-7510997486219621802gmail-block-97a1b42b-ebf6-4fce-8e5b-69e3532e7e1f" role="group" style="background-color: white; box-sizing: inherit; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; line-height: revert; margin-bottom: revert; margin-left: auto; margin-right: auto; margin-top: revert; max-width: 840px; min-width: 1px; white-space: pre-wrap;">Global dairy players are not like <em style="box-sizing: inherit;">Hem* and Hall</em> *who felt betrayed and complained. These are like <em style="box-sizing: inherit;">Scurry* and Sniff</em> *who would enthusiastically head out into the maze to find new cheese. I am sure that these players will keep on knocking at the doors of the Indian dairy market till they conquer. </p><p aria-label="Paragraph block" aria-multiline="true" id="m_-7510997486219621802gmail-block-6aab3ca5-8b43-481a-9a53-19443be43b33" role="group" style="background-color: white; box-sizing: inherit; font-family: -apple-system, system-ui, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif; line-height: revert; margin-bottom: revert; margin-left: auto; margin-right: auto; margin-top: revert; max-width: 840px; min-width: 1px; white-space: pre-wrap;">(<span style="box-sizing: inherit; font-weight: 600;"><em style="box-sizing: inherit;">*Characters in "Who moved my cheese" written by Dr Spencer Johnson</em></span>)</p><span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: medium;"><br /></span><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><div data-smartmail="gmail_signature" dir="ltr"><div dir="ltr"><div><span style="font-size: medium;">Do share your valuable insights on the challenges in front of global dairy players to get established in India.</span></div><div><span style="font-size: medium;"><br /></span></div><div><span style="font-size: medium;">Happy e reading </span></div><div><span style="font-size: medium;"><br /></span></div><div><span style="font-size: medium;">with best regards</span></div><div><br /></div><div dir="ltr"><br /></div><div dir="ltr"><br /></div><div dir="ltr"><br /><div dir="ltr">Kuldeep Sharma<br /><div>Chief Thinking Officer</div><div>Suruchi Consultants (ISO 9001:2015 Company)</div><div>+91-98 10 31 58 31</div><div>+91-120-4320845</div><div><img class="CToWUd" height="64" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEjuieeTUWa7KMtSQtpyGhTCyRin90rPrJm77idP6bm0_wNvWSoKN2ISUgrVCZtQvnYJOq8E7mjo42_rscCVAcY__c_gXTnRfuyWZftpdAoyI69sNTQMRfqI1vmJl6zfIuYnJcG-w2MpME3W_Rj_-rMYWZmuFvfR1rVEvEQvhVf1WmDvSS8qjM3xvjmyL2FSvZBpt9SdJxZHA-Yy4g=s0-d-e1-ft" width="96" /></div></div></div></div></div></div>Think dairyhttp://www.blogger.com/profile/01274876854167304476noreply@blogger.com0tag:blogger.com,1999:blog-8197085901717056187.post-13360619805664952662022-03-02T23:55:00.001-08:002022-05-09T00:56:42.198-07:00People don’t want quarter inch drill.They want quarter inch holes<p> <span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">People don't want quarter inch drill.They want quarter inch holes. Theodore Levitt wrote this in an article Marketing Myopia way back in 1960 . The context of this article is to highlight the inability of the marketer to see the big picture. Most of the time the marketers are focussing too narrowly on selling their product and services.</span></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Few weeks back I saw a big hoarding of Zepto stating Delhi's morning milk delivered by Zepto in 10 minutes. On similar lines Blinkit by Grofers started to make claims of 10 minutes delivery of fresh <span class="il">dairy</span> products in 10 minutes. As usual my skeptic instinct forced me to validate the time bound delivery claims made by these players. So I ordered some fresh groceries on each of these platforms. To my surprise , none of them delivered it in 10 minutes.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">They did it before that ! A true Wow moment! It was a real customer delight for me. Why has no one from the <span class="il">dairy</span> sector ever thought about it ?</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">10 minute delivery has always been under criticism by the self indifferent but socially concerned intellectuals. They have always raised issues related to the danger of life of the last mile delivery boys. The point which these people do not understand is that an industry has never borne a child of disruption within its own domain. The dark store concept has disrupted home delivery in the same manner in which cloud kitchens have done for cooked food.</p><h2 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif;">An industry hardly patronise its disruption</h2><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">It is to be noted that neither the Refrigeration industry was disrupted by ice harvester nor the home refrigerators were developed by the refrigeration industry. Nobody ever thought that the iphone 6 would have more than 10x the power of the IBM Deep blue ( the first supercomputer to beat the world chess champion in 1997).</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">An electric car like TESLA has not been made by the Fords, General motors and Toyotas of the world. Same is true with brands like AirBnb, Amazon, Netflix and Google of the world. We must not forget that Google was the 18th search engine in the world. Today Google has turned itself from a noun into a verb for practically all of our search needs. You can google it also if you wish.</p><h2 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif;">What could disrupt our <span class="il">dairy</span> sector ?</h2><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Let us look at the Indian <span class="il">dairy</span> industry. We are the largest producer of milk in the world. India is also host to the largest population of low productivity cattle on earth. We are also amongst the slowest innovators in the <span class="il">dairy</span> sector. We can always feel proud of the innovation done by Amul in 1956 for converting buffalo milk into milk powder and later baby foods. This innovation also helped the Indian <span class="il">dairy</span> sector to compete against the global <span class="il">dairy</span> leaders like New Zealand and Europe. We have been discussing it in various webinars even in current times.But which innovation followed it with the same intensity? I don't know.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">It is very difficult to list disruption in milk processing and <span class="il">dairy</span> technology with a very high level of commercial sustainability. We have 4-5 types of market milk; 2-3 kinds of curd and derivatives; 1 kind of butter , 2 kinds of paneer , two types of ghee and 2-3 kinds of milk powders . This covers almost 80-85% of the total organised sector revenue. Is this achievement good enough for a 8.5 lakh crores sector in last 75 years? The supply chain has remained dependent on general trade and not much on Modern trade. The traceability of products to the last mile is still miles away.</p><h2 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif;">What next ?</h2><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Is the industry too busy focussing on growth or too complacent to ignore the real consumer needs . The largest players of the <span class="il">dairy</span> sector are not the market leader in innovative segments like Yogurts and Greek Yogurt; ambient yogurts ; Organic milk, Sports nutrition, Direct to home delivery, Desi cow A2 certified ghee, Chocolates, ambient Indian sweets, Probiotics etc.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The industry is also keeping a closed eye on the plant protein segments which have the power to disrupt the <span class="il">dairy</span> sector. Alternative protein companies have raised almost $6 billion in investments in the past decade (2010–2020), more than half of which was raised in 2020 alone. The size of the protein based <span class="il">dairy</span> alternative industry is 22.6 B USD which will cross 40 B USD by 2026.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">We must also not forget that as per McKinsey 70% of global grocery investments came to India in 2020. There is a huge opportunity in India to make groceries delivered at the consumer's door step in the shortest time. Convenience is the intrinsic trait of a consumer. Our industry must understand it.</p><h2 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif;">Today's consumer loves Nutrition but not at the cost of convenience</h2><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">My only apprehension is that a major part of the market may become brand indifferent in the wake of convenience. The next disruption may be the storm of white labeled brands in the fresh category like Zepto or Blinkit milk. Big basket has already tried it under BB daily.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">So it's high time for all the stakeholders in the <span class="il">dairy</span> sector to be the proud father of the next disruption.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">You may also share your insights on the next areas of innovation in the Indian <span class="il">dairy</span> sector. </p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Happy e-reading.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><br /></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">with best regards</p><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><div data-smartmail="gmail_signature" dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><span style="font-size: 12.8px;">-- </span><br style="font-size: 12.8px;" /><div dir="ltr" style="font-size: 12.8px;">Kuldeep Sharma<br /><div>Chief Thinking Officer</div><div>Suruchi Consultants (ISO 9001:2015 Company)</div><div><br /></div><div>+91-9810315831</div><div><img class="CToWUd" height="64" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEjuieeTUWa7KMtSQtpyGhTCyRin90rPrJm77idP6bm0_wNvWSoKN2ISUgrVCZtQvnYJOq8E7mjo42_rscCVAcY__c_gXTnRfuyWZftpdAoyI69sNTQMRfqI1vmJl6zfIuYnJcG-w2MpME3W_Rj_-rMYWZmuFvfR1rVEvEQvhVf1WmDvSS8qjM3xvjmyL2FSvZBpt9SdJxZHA-Yy4g=s0-d-e1-ft" width="96" /></div></div></div></div></div></div></div>Think dairyhttp://www.blogger.com/profile/01274876854167304476noreply@blogger.com0tag:blogger.com,1999:blog-8197085901717056187.post-22030213315646291882022-01-31T20:46:00.001-08:002022-05-08T21:49:57.465-07:00Dairying is a stable source of income for farmers: Economic Survey 21-22<p> <span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">A big thank you to all of you for making us reach this 150th edition of Dairy pulse. The journey has been almost six years now. Please find below the excerpts from the Economic Survey 2021-22 related to the Dairy sector. Your long term patronage is highly appreciated.</span></p><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><br /><div><p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">The agriculture sector has experienced buoyant growth in the past two years. The sector, which is the largest employer of workforce, accounted for a sizable 18.8 per cent (2021-22) in Gross Value Added (GVA) of the country registering a growth of 3.6 per cent in 2020-21 and 3.9 per cent in 2021-22. Growth in allied sectors including livestock, dairying and fisheries has been the major drivers of overall growth in the sector.</p><img alt="" class="CToWUd a6T" height="451" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEjsFv0tvgqy9uLJN3NRK1a92rH7BtpiKqedSTFQ6IqqLZO2oebRnmaguZjM9pUEGyzIrJ7Im0EkUmsKG0aeeUEiJhZ9of3hTe3SJR7gAWJF6q6z0EWFVIOCb1x3BY01MzaaR5ee_I7A95WVD92vQl4TjFKLkoui2rF_H_iYkNs0j7Bs8abWRg=s0-d-e1-ft" style="border-radius: inherit; border-style: none; box-sizing: border-box; cursor: pointer; height: auto; max-width: 100%; outline: 0px; vertical-align: middle;" tabindex="0" width="1024" /><p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">Allied sectors including animal husbandry, dairying and fishing are steadily emerging to be high growth sectors. The livestock sector has grown at a CAGR of 8.15 per cent over the last five years ending 2019-20. As revealed by the latest SAS, the sector has been a stable source of income across groups of agricultural households accounting for about 15 per cent of their average monthly income.</p><img alt="" class="CToWUd a6T" height="557" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEjWgkMqyiP_BHJtIqhxyfS1FdpZksItYtiwAeW8qVUvO-cAXcO4STHhzD5UCl7-lFfHP1yricQXsYiMvIucH2s7aA5bRLEQ283zn5_dO-gtu0p6TqhNQUiNp7HCc7DIQqHK1-pfI5Sz-VQT-FBeYjLbxdsOBQuhg9Mgbr2xucD3iiW2rkA4Gw4u=s0-d-e1-ft" style="border-radius: inherit; border-style: none; box-sizing: border-box; cursor: pointer; height: auto; max-width: 100%; outline: 0px; vertical-align: middle;" tabindex="0" width="1024" /><p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">Livestock Sector is an important sub sector of agriculture in the Indian economy. It grew at a CAGR of 8.15 per cent during 2014-15 to 2019-20 (at constant prices). As per the estimates of National Accounts Statistics (NAS) 2020 for sector wise GVA of agriculture and allied sectors, the contribution of livestock in total agriculture and allied sector GVA (at constant prices) has increased from 24.32 per cent (2014-15) to 29.35 per cent (2019-20). Livestock sector contributed 4.35 per cent of total GVA in 2019-20. Development of livestock sector has led to improvement in per capita availability of milk, eggs and meat (Figure 20)</p><img alt="" class="CToWUd a6T" height="487" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEiI9fM7z5SkPG_FFDRJB7CogvAGIuQFIfGeSTgBkwYqtbZpvM2ybXogTjRhoRpUPzt34Eiv-ZYFij2ogWfUg7XIxhh3z80eZNyQ7hgfIKEC6Gi-yDTB9j_hMrvBdLHkKyfxecyT5zVtiCv0uzxEwGRhEl2u2gDExt_-o2TZAit267LoeSZBMPHs=s0-d-e1-ft" style="border-radius: inherit; border-style: none; box-sizing: border-box; cursor: pointer; height: auto; max-width: 100%; outline: 0px; vertical-align: middle;" tabindex="0" width="1024" /><p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">Dairy is the single largest agricultural commodity contributing 5 per cent of the national economy and employing more than 8 crore farmers directly. India is ranked 1st in milk production contributing 23 per cent of global milk production. Milk production in the country has grown at a compound annual growth rate of about 6.2 per cent to reach 209.96 million tonnes in 2020-21 from 146.31 million tonnes in 2014-15 (Figure 21).</p><img alt="" class="CToWUd a6T" height="475" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEiSyuFk-v3RxFJgqR95-DNC_nf5EOkbkkDv55zuppt9wNTUIZMmcNGPE99VHRgiQOHdtrtyjzDzzZ87yfmJwjrayQ3Pcga3mRykw8M2Ccid4_J5TAWk_swwHFOor0TNN3NNE9XlpEE1j7SsvBSLCaTCf8Ac8h0UhV6Q8n5Q47z2re-kDpqNwlcm=s0-d-e1-ft" style="border-radius: inherit; border-style: none; box-sizing: border-box; cursor: pointer; height: auto; max-width: 100%; outline: 0px; vertical-align: middle;" tabindex="0" width="1024" /><p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">The all India per capita availability of milk is 427 grams per day in 2020-21 (provisional). Inter-state variability in milk production and per capita availability of milk during the year 2020-21 is shown in Figure 22.</p><img alt="" class="CToWUd a6T" height="566" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEgZbXTeT3a8tNtiefowOrt4nwg3YgDwqBIn13plbTAJTeahQeYeQUShMVJkR6E_lvpu8DJSRJFo6nvRXDL_OLiQuWi5p4PxmOjXFkK9dvziAStjBtU5Rwr8ABg3nKhiscp5HUn4_djOBRNr6f1bMbQCVZuiJvjdaCqdX56s_DgJG4sdywQv0lJy=s0-d-e1-ft" style="border-radius: inherit; border-style: none; box-sizing: border-box; cursor: pointer; height: auto; max-width: 100%; outline: 0px; vertical-align: middle;" tabindex="0" width="1024" /><h2 style="box-sizing: border-box; color: #212121; font-family: Montserrat, sans-serif; font-size: 32px; letter-spacing: -0.05em; line-height: 1.3; margin: 0px 0px 1.4rem;">Recent Initiatives in Animal Husbandry and Dairy Sector:</h2><h4 style="box-sizing: border-box; color: #212121; font-family: Montserrat, sans-serif; font-size: 24px; letter-spacing: -0.05em; line-height: 1.3; margin: 0px 0px 1.4rem;">National Animal Disease Control Programme</h4><p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">The vaccination under the NADCP was started from 31st January, 2020 onwards and got<br style="box-sizing: border-box;" />disrupted due to a lockdown in the country. FMD vaccination was restarted in May 2020 and the first round of FMD vaccination has been completed in 11 States. During 2021-22, the second<br style="box-sizing: border-box;" />phase of the vaccination commenced from July, 2021 and so far 5 crore animals have been<br style="box-sizing: border-box;" />vaccinated against FMD and 27.8 lakh animals vaccinated against brucellosis till December,2021-22</p><h4 style="box-sizing: border-box; color: #212121; font-family: Montserrat, sans-serif; font-size: 24px; letter-spacing: -0.05em; line-height: 1.3; margin: 0px 0px 1.4rem;">Animal Husbandry Infrastructure Development Fund (AHIDF)</h4><p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">As on 17.12.2021, a total of 76 projects have been approved under the scheme involving a project cost of ₹ 1802.28 crore. The amount of interest subvention released under the scheme was ₹ 12.74 crore during<br style="box-sizing: border-box;" />2020-21 and ₹ 6.40 crore (as on 17.1.2022) during 2021-22</p><h4 style="box-sizing: border-box; color: #212121; font-family: Montserrat, sans-serif; font-size: 24px; letter-spacing: -0.05em; line-height: 1.3; margin: 0px 0px 1.4rem;"><span style="box-sizing: border-box; font-weight: bolder;">Other initiatives</span></h4><p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">Industrial machinery for dairy and Iron & Steel do not figure in the list of top ten import commodities in current year, unlike in April-November, 2019. </p><p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">Kisan Rail service was launched on 7th August 2020 to enable speedy movement of perishables including fruits, vegetables, meat, poultry, fishery and dairy products from production or surplus regions to consumption or deficient regions.</p><p style="box-sizing: border-box; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">Source : Excerpts from “The Economic Survey 2021-22”</p></div><div>Happy e-reading</div><div><br /></div><div>with best regards</div><div><br clear="all" /><div><div data-smartmail="gmail_signature" dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><span style="font-size: 12.8px;">-- </span><br style="font-size: 12.8px;" /><div dir="ltr" style="font-size: 12.8px;">Kuldeep Sharma<br /><div>Chief Thinking Officer</div><div>Suruchi Consultants (ISO 9001:2015 Company)</div><div><br /></div><div>+91-120-4320845</div><div><img class="CToWUd" height="64" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEjuieeTUWa7KMtSQtpyGhTCyRin90rPrJm77idP6bm0_wNvWSoKN2ISUgrVCZtQvnYJOq8E7mjo42_rscCVAcY__c_gXTnRfuyWZftpdAoyI69sNTQMRfqI1vmJl6zfIuYnJcG-w2MpME3W_Rj_-rMYWZmuFvfR1rVEvEQvhVf1WmDvSS8qjM3xvjmyL2FSvZBpt9SdJxZHA-Yy4g=s0-d-e1-ft" width="96" /></div></div></div></div></div></div></div></div></div>Think dairyhttp://www.blogger.com/profile/01274876854167304476noreply@blogger.com0tag:blogger.com,1999:blog-8197085901717056187.post-23194974622820689082022-01-02T20:34:00.001-08:002022-05-08T21:45:57.481-07:00Looking at the dairy industry from here- the only way is to go Up<p> </p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">"As I am touched by the first ray of light, I ask myself can something so wrong feel so right."....Work of Art</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">I saw the sunrise today and it was no less beautiful than it was yesterday. As per Pluto, Beauty lies in the eyes of the beholder . We can see a day coming in between two nights or a night coming in between two days. It's all about perception. Each and every one in the industry is really concerned about the possibilities of a third wave. The media has again won the race. It has again proved that the brains could be washed and the thought process could be enslaved. I may suggest a new year's resolution to all of you....</p><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><img alt="" class="CToWUd" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEgEUnAMfCJy2NIxznVOKcs-y4kF_PLJ4wDBbsMNIXSdk0CP-3KX5i5gsv-zbfEYhGbTIAvdb0NJ0C0XERlWiWUt9kqoSqvKn6OrxgnWgfUAN7zag7TmdN8Ax9UrZ7OqaKeVrzjEUV2xHFW6yIy-tD6-KvYLnsK9PUYsnYZDwCw=s0-d-e1-ft" />Get rid of the idiot box ...Television</div><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">It is doing more harm than good. In microbiology we use media to propagate different kinds of microbes on different types of media. However the media related to ICT and news channels propagate only the pathogens. They will never let good microflora of peace and progress to grow in the ecosystem. We have been conditioned to a level that we do not understand the difference between news channel and vies channel. We are consuming views of anchors or channels in the guise of news of the nation.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Count your blessings</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Let me share my vision for the <span class="il">dairy</span> industry in 2022. It looks balanced. I feel this year to be a balancer. It's been too long since we saw a year which was a win-win for all the stakeholders. Let us look at the blessings which we inherit on the first of January 2022.</p><ol style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><li style="margin-left: 15px;">The milk supplies in most of the states in the country is slightly lesser than the demands. This creates a good opportunity for farmers to get a better price for their milk even at the peak of the flush season.</li><li style="margin-left: 15px;">GDT price index is at its all time high of UsD 1354 on Dec 7th 2021 in the last 8 years. On 18th March 2014 it was at UsD 1332.</li><li style="margin-left: 15px;">SMP prices have not seen a decline since the last 7 years. It was at USD 2660 on 3rd Jan 2017 and has reached to USD 3745 on Dec 21 , 2021.</li><li style="margin-left: 15px;">Butter prices currently at USD 5851/MT are almost matching with that of its prices on 3rd oct 2017 when it was at 5837 USD/MT</li><li style="margin-left: 15px;">AMF prices at USD 6724 are at all time highs in the last 4-5 years with the last high of USD 6836 on Dec 5 2017.</li><li style="margin-left: 15px;">The SMP stocks in the country are at moderate levels in the range of 150000-190000 MT.</li><li style="margin-left: 15px;">Huge orders of SMP and butter are lined up which will help the processors to focus on making new stocks.</li><li style="margin-left: 15px;">The butter stocks in the country have been well consumed and Butter is enjoying the highest possible market price during flush season.</li><li style="margin-left: 15px;">The decline in Horeca sales are not getting impacted too much like the last two years due to emerging supply chain networking for direct to home delivery in almost all parts of the country.</li></ol><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">What could go wrong ?</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Whatever has to go wrong will go wrong-so there is no reason to worry about the same. Still there may be three possible impediments which could disturb the market sentiment during the mid of this year.</p><ol style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><li style="margin-left: 15px;">The third wave calls for longer lock downs due to surge in cases and casualties.There is a bleak possibility for this as Omicron has not yet proven to be anywhere near to its Delta version in terms of vulnerability anywhere in the world.</li><li style="margin-left: 15px;">The chances of milk supplies increasing exorbitantly at the time of these lockdowns ( which are likely to be during 15th Jan to 15th Feb) due to delayed calving theory. It may impact milk prices but will give an opportunity to the processor to make and stock SMP and butter at a reasonable rate. The same may be exported or be utilized during summer when the milk availability is likely to be too short this time.</li><li style="margin-left: 15px;">Opening up of imports from the developed world as an outcome of various FTA which are currently undergoing in a discreet manner. This may be a bigger challenge as it would not only ruin the hopes of millions of farmers' families but also reignite the farmers' agitation in various parts of the country.</li></ol><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><strong>So how does 2022 looks like from here ?</strong></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><strong>The best scenario :</strong></p><ol style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><li style="margin-left: 15px;">Higher milk prices for farmers throughout the year.</li><li style="margin-left: 15px;">Higher exports with subsidy support and otherwise so balancing of <span class="il">dairy</span> stocks</li><li style="margin-left: 15px;">Poor availability of milk during the summer thus higher Commodities prices</li><li style="margin-left: 15px;">Milk production rising again during festival times and the industry starting afresh to build up new stocks in the bumper flush of 2022.</li></ol><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><strong>The worst scenario :</strong></p><ol style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><li style="margin-left: 15px;">Milk prices touching rock bottom</li><li style="margin-left: 15px;"><span class="il">Dairy</span> commodities stocks touching all time high</li><li style="margin-left: 15px;">Q4 results of <span class="il">dairy</span> companies showing dismal performance</li><li style="margin-left: 15px;">Next flush beginning with huge stocks pile up</li><li style="margin-left: 15px;">Poor performance of HORECA due to inadvertent circumstances</li></ol><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The chances for the worst to happen are never more than 0.1%. So 99.9% it is not going to happen.</p><img alt="Our worst misfortunes never happen and most miseries lie in anticipati... Quote by Honore de Balzac - QuotesLyfe" class="CToWUd a6T" height="338" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEiVlh8rZiWqvKOH1Wx9qVC7-aNEhUACbMiTHJSLKQmBmgqrPjbOyXqh1N5CopH1rHPppEM7ZLsc7PnLVou4Y1nWEB2P_zQI4ScLCZMsIth3LdWO0BCeqL6V6dzo0930VxNGBGWiTNvSkJToH04SP0wKVLc1hnELYjoqLJB3NteFikLJD5wV-fWFCc2fJRjuQBeP6GUo1RphbFSUWHHUujT7VulEhsHwyO2Z75k4antrpUPc=w643-h338" style="background-color: white; color: #222222; cursor: pointer; font-family: Arial, Helvetica, sans-serif; font-size: small; outline: 0px;" tabindex="0" width="643" /><span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"></span><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">So what will happen ? Even at the worst the middle path will appear which means...</p><ol style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><li style="margin-left: 15px;">Farmers continuously receive reasonable prices for them to sustain in <span class="il">dairy</span> business.</li><li style="margin-left: 15px;"><span class="il">Dairy</span> processors getting reasonably good prices for their <span class="il">dairy</span> stocks in domestic or export markets</li><li style="margin-left: 15px;">Horeca just be able to perform well with home delivery networks even during lockdowns so as to avoid closures with enough of black in the bottomline.</li><li style="margin-left: 15px;">The next flush is in winter 2022 , starting with reasonably manageable <span class="il">dairy</span> stocks and positive sentiment of the market after winning over the Corona's third wave successfully.</li></ol><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">I will pray for the millions of farmers and our <span class="il">dairy</span> sector. As I could see , the only way is moving up so pull your socks up and give maximum throttle to your <span class="il">dairy</span> engine to make it the best year of all the times.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><br /></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Happy E reading and have a great new year ahead....2022.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Do share your comments and insights.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><br /></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">with best regards</p><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><div data-smartmail="gmail_signature" dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><span style="font-size: 12.8px;">-- </span><br style="font-size: 12.8px;" /><div dir="ltr" style="font-size: 12.8px;">Kuldeep Sharma<br /><div>Chief Thinking Officer</div><div>Suruchi Consultants (ISO 9001:2015 Company)</div><div><br /></div><div>+91-9810315831</div><div><img class="CToWUd" height="64" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEjuieeTUWa7KMtSQtpyGhTCyRin90rPrJm77idP6bm0_wNvWSoKN2ISUgrVCZtQvnYJOq8E7mjo42_rscCVAcY__c_gXTnRfuyWZftpdAoyI69sNTQMRfqI1vmJl6zfIuYnJcG-w2MpME3W_Rj_-rMYWZmuFvfR1rVEvEQvhVf1WmDvSS8qjM3xvjmyL2FSvZBpt9SdJxZHA-Yy4g=s0-d-e1-ft" width="96" /></div></div></div></div></div></div></div>Think dairyhttp://www.blogger.com/profile/01274876854167304476noreply@blogger.com0tag:blogger.com,1999:blog-8197085901717056187.post-42312032213213941492021-12-20T04:05:00.001-08:002021-12-22T04:06:05.048-08:00Central and state government must work in tandem for dairy development<p> <em style="color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Calculus</em><span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"> is a branch of mathematics that involves the study of rates of change. It has two branches. They are named as differential and integral calculus. Life is another name for change. The process of solving problems is nothing but changing the status quo. Let us look at the ways in which dairy problems are being handled in India.</span></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The differential approach considers a broad perspective and then splits it into diverse micro components. Suppose we wish to solve the problem of milk productivity in the country. Then we will split it into various micro factors like feed, breed, environment, nutrition, etc.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The Integral approach considers multiple components within certain limits and tries to integrate them together to solve a bigger problem. Suppose in India we have problems like small land holding, poor farmers income, poor genetics of the animal, low skill level of animal husbandry and poor animal health. Then we integrate them together on certain limits like 1-4 animal holding.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Problem solving approach in India</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">In India we attempt both the approaches. Large institutions like the Ministry of Dairying most of the time take a differential approach and try to work on a bigger problem like doubling the farmers income and attempts in identifying micro components impacting the income of the farmers.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Dairy cooperatives and federations take the integral approach .They try to integrate the micro components like localized breeds, fodder situation, farmer's skill levels, market linkages, etc and then integrate them together by defining the suitable limits within that specific area.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">It seems that in India we are having multiple agencies looking at the problems from different perspectives. The alignment of government schemes with the local interventions is missing somewhere. Some states are focussing on desi cows and commercial utilization of their dung and urine. While others are focussing on bio gas installation.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Critical Issues requiring immediate attention</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">There is no visibility of policies to tackle the following issues:</p><ol style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><li style="margin-left: 15px;">Unsafe milk due to contaminants</li><li style="margin-left: 15px;">Authenticity of milk against analogues and plant based products</li><li style="margin-left: 15px;">Market linkage of small farmer's milk and milk products</li><li style="margin-left: 15px;">Cattle insurance for all and micro finance facilities like Kisan Credit cards</li><li style="margin-left: 15px;">Aging cattle and male cattle population</li><li style="margin-left: 15px;">Distribution and availability of LN2</li><li style="margin-left: 15px;">Distribution and availability of sexed semen</li><li style="margin-left: 15px;">Communication strategy to inform consumers about benefits of milk</li><li style="margin-left: 15px;">Nationwide strategy to promote milk in First 1000 days of life</li><li style="margin-left: 15px;">Promoting milk as a national food so that tarnishing its image may become illegal and punishable offense.</li></ol><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">NDDB is doing a brilliant job. However they need more funds to do the grass root level interventions at a much faster pace than ever. The nation is lacking sharing of information and best practices to a large extent . There must be an integrated effort to link farmers to some relevant social media vehicle and then to share all the tips to them in their local languages.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Inclusion of less than 0.1 million farmers with Kisan credit cards may not be sufficient in a country having almost 100 million dairy farmers. I think that all the state bodies may identify the top three challenges in dairy development. The states must prioritize these three challenges over a five year period and share it with the central ministry.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The ministry then uses these prioritized issues to integrate together using the budgetary limits of finance and geographical limits of the country to direct all ongoing schemes with timelines.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">It's time for the state and central machineries to work in tandem for the benefit of the dairy sector. The situation of small and marginal farmers is not satisfactory . We must not feel complacent with the rate of growth in milk production or our global position as a milk producer. The reality is that our farmers are still poor.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Dairy has yet to become attractive to our farmers as well as youth. We all must listen carefully that real milk comes from cows only. Nothing else could replace it even partially.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Happy E-reading</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">with best regards</p><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><div data-smartmail="gmail_signature" dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><span style="font-size: 12.8px;">-- </span><br style="font-size: 12.8px;" /><div dir="ltr" style="font-size: 12.8px;">Kuldeep Sharma<br /><div>Chief Thinking Officer</div><div>Suruchi Consultants (ISO 9001:2015 Company)</div><div><br /></div><div>+91-120-4320845</div><div><img class="CToWUd" height="64" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEjuieeTUWa7KMtSQtpyGhTCyRin90rPrJm77idP6bm0_wNvWSoKN2ISUgrVCZtQvnYJOq8E7mjo42_rscCVAcY__c_gXTnRfuyWZftpdAoyI69sNTQMRfqI1vmJl6zfIuYnJcG-w2MpME3W_Rj_-rMYWZmuFvfR1rVEvEQvhVf1WmDvSS8qjM3xvjmyL2FSvZBpt9SdJxZHA-Yy4g=s0-d-e1-ft" width="96" /></div></div></div></div></div></div></div>Think dairyhttp://www.blogger.com/profile/01274876854167304476noreply@blogger.com0tag:blogger.com,1999:blog-8197085901717056187.post-50667195321259502652021-12-03T02:01:00.001-08:002021-12-09T02:03:23.247-08:00Omicron a reality or premature arrival of the future<p> <span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The Hindu shared four possible scenarios for a third wave in June 2021. The new variant of Omicron is pushing the whole world towards an abnormal future. Are we ready for this future ? We must also try to anticipate the impact of the third wave on the dairy industry.</span></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">In the first scenario, the daily new cases could be as high as 28,395, which is the same as the second wave. In the second scenario, it could be 36,914, which is 30% more than the second wave. According to the third estimate, the number shoots to 45,432, which is 60% more. In the fourth projection the case count is around 15,000.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The first wave of Covid took everyone by surprise. India came out as a winner with minimum levels of casualties per million heads in the world. We gained a lot of insights during the first wave. However at the time of the second wave we acted more complacent. We believed more in conducting elections and organising religious functions during that period. We paid heavily for that and the number of Corona cases almost quadrupled at 0.4 millions against the earlier peak of 0.1 million during the first wave. That reminds me of a famous quote by Alvin Tofler in his legendary book "The Third Wave".</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Quote by Alvin Toffler</h4><img alt="Alvin Toffler Quotes Illiterate. QuotesGram" class="CToWUd a6T" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEgCU79t5VwzbaW6tV2Qa11qOglfFo57BgdKz6Ac3u43aD7s4IYPzaYZl9ySThLkcpS_J3BogCq_vetTiLlZC5hXJkQmIE8Z-ZNlS-hWNR8-S6Dpomx1AZKo7_-Z0BuGc5gssM9qFpVymMlxYMgWGMBSKmPMdoXPvYaKzJ-uDZicD_73vbwoP9mtCvBPrsQcSjMqq-LNNhjZcoW4ej0yGijzd-Xol2ktENBP5mnB_6tBabKlYWNmX8cVXjB2tRZTzNvqQY7KnEn5dDl3vIGMzTEP-i84HNMoq5z0TXnYklS8ZLqpqyKZXiBsZ4Va1bM=s0-d-e1-ft" style="background-color: white; color: #222222; cursor: pointer; font-family: Arial, Helvetica, sans-serif; font-size: small; outline: 0px;" tabindex="0" /><span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"></span><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Our desk research has shown that India is lagging behind the UK and other developed nations in terms of Covid spread since the beginning. India may have seen the arrival of the third wave anytime from mid of January to February on the basis of the current situation in the UK.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Let us examine the Indian dairy scenario during that period in the next year. Most of the states will have the arrival of flush season. The consumption of dairy products like Ghee, butter, cheese, paneer etc will be at its peak. Out of home dining at hotels and restaurants will be in full swing. The marriage season will also be continuing with higher demands of milk and milk products.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Impact of third wave : Likely scenario</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Third wave will first impact the Horeca as well as the consumption at the marriages. The processors will have to immediately have an extra 20-25% of milk at their disposal and that too in the peak of the flush. This may create the following scenarios.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">a. The milk prices rally will halt and the farmers prices will touch rock bottom.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">b. The Processors will be forced to convert more of their collected milk into commodities. This will increase the dairy commodities stocks exorbitantly and crash dairy commodities prices. This would also mean that the best time for institutional buying may be around the same period.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">c. These stocks will also create a third consecutive summer with low prices of SMP and butter.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">d. If the third wave gets severe ( which we pray almighty to not to happen) then the artificial insemination of animals which got calved during the last quarter of 2021 will be delayed. This will lead to late calving in 2022 thus disturbing the flush again as this year.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">e. The last quarter for most of the dairies (with large share of value added products) may get impacted negatively on both top as well as bottom line.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Key questions to be answered</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">We only hope that the government will learn from the past and avoid all possible triggers for the third wave to get grimmer. There are three instant questions which the government must answer and plan their future course accordingly.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">a. What is the severity of the Omicron variant in terms of spreadability and mortality ?</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">b. What could be a possible course of treatment of this variant (as on date it is being considered a variant with mild symptoms)?</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">c. What is the efficacy of current vaccines in India on this variant of the virus?</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">I believe that the third wave will not exceed the second wave in terms of its severity. I also think that at most the fourth scenario from The Hindu research would be the maxima of the third wave ( if at all it comes). Let us hope that the dairy industry will continue to progress well as it is happening now.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">You may also share your views on possible scenarios in case of the third wave.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Happy e reading</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><br /></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">with best regards</p><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><div data-smartmail="gmail_signature" dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><span style="font-size: 12.8px;">-- </span><br style="font-size: 12.8px;" /><div dir="ltr" style="font-size: 12.8px;">Kuldeep Sharma<br /><div>Chief Thinking Officer</div><div>Suruchi Consultants (ISO 9001:2015 Company)</div><div><br /></div><div>+91-9810315831</div><div><img class="CToWUd" height="64" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEjuieeTUWa7KMtSQtpyGhTCyRin90rPrJm77idP6bm0_wNvWSoKN2ISUgrVCZtQvnYJOq8E7mjo42_rscCVAcY__c_gXTnRfuyWZftpdAoyI69sNTQMRfqI1vmJl6zfIuYnJcG-w2MpME3W_Rj_-rMYWZmuFvfR1rVEvEQvhVf1WmDvSS8qjM3xvjmyL2FSvZBpt9SdJxZHA-Yy4g=s0-d-e1-ft" width="96" /></div></div></div></div></div></div></div>Think dairyhttp://www.blogger.com/profile/01274876854167304476noreply@blogger.com0tag:blogger.com,1999:blog-8197085901717056187.post-83540536645826676522021-11-17T01:59:00.001-08:002021-12-09T02:00:24.368-08:00High heat in SMP and ghee prices- Is it real or a false positive ?<p> <span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">I hope everyone had a great time last fortnight. This Diwali as expected we saw the return of smiles on the faces of consumers as well as shopkeepers. The markets were illuminated with old hustle and bustle. The sale of sweets also touched a new high. The media however did their routine job with negative publicity of milk based sweets.</span></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The dairy commodities market was dull and dark during Diwali. As expected the mahurat sale of ghee on diwali ignited traction in prices. There were numerous news in media which flooded the market and reinforced a positive sentiment amongst the sellers shown below.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><em>"The big fat Indian weddings, subdued for a while now due to the coronavirus pandemic, are likely to get the mojo back with an estimated 25 lakh weddings in just one month between 14 November-13 December....Mint"</em></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">"<em>There are going to be 50 marriage dates in the next nine months."</em></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><em>"Wedding bells send cash registers ringing at hotels, biz expected to be better than last year"...ET</em></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><em>" Global dairy price index is showing an upward trend since August 17 2021" ...GDT</em></p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Dairy Commodities prices began to soar</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">These news suddenly changed the complete landscape of the dairy commodities market. SMP and ghee were hovering around 230-240 in north and 200-220 in western part of the country. The rates changed to Rs 260-280 in north and Rs 230-Rs 240 in western parts. Same happen with the ghee prices also.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">It may get dairy economists a little surprised. Technical analysis of Indian markets shows the following situation.</p><ol style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><li style="margin-left: 15px;">Indian dairy cooperatives still have huge stocks of Powder and ghee in the country.</li><li style="margin-left: 15px;">The country is entering into flush season with the availability of plenty of milk .</li><li style="margin-left: 15px;">The SMP requirements for Milk reconstitution is minimal in dairy plants as well as Ice creams in most parts of the country.</li><li style="margin-left: 15px;">In the last few months despite the government subsidy for exports to a few cooperatives, the export volumes have not shown a significant rise.</li><li style="margin-left: 15px;">The institutional buying for next year's summer may still take some more time.</li></ol><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><em>Higher prices : A fundamental market situation or a trader's game plan</em></h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">There may be some apprehension on poor availability of milk due to the rampant outbreak of LSD, FMD and HS in some parts of the country. The untimely rains in Some parts of South India may also cause postponement of flush by a few weeks. However even with these negative factors, the high dairy commodities don't look to be sustainable .</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The good part is that the stockists and the cooperatives may clear off as much of their older stocks at good prices as possible. This will help them strengthen their cash flows and also to create new stocks for better rotation of their money. This will also be good news for the farmers as the milk prices have again got increased in some parts post Diwali also. In Maharashtra the milk prices are stable after a long time and might see an increase soon.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">It is very difficult to find a true reason behind this change. Still as long as it is helping the industry and farmers without any impact on retail consumers then it is good. </p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Do share your comments on what you think about these recent surge in commodity prices.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Happy ereading.</p><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><div data-smartmail="gmail_signature" dir="ltr"><div dir="ltr"><div dir="ltr"><div><span style="font-size: 12.8px;">with best regards</span></div><div dir="ltr"><span style="font-size: 12.8px;">-- </span><br style="font-size: 12.8px;" /><div dir="ltr" style="font-size: 12.8px;">Kuldeep Sharma<br /><div>Chief Thinking Officer</div><div>Suruchi Consultants (ISO 9001:2015 Company)</div><div><br /></div><div>+91-120-4320845</div><div><img class="CToWUd" height="64" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEjuieeTUWa7KMtSQtpyGhTCyRin90rPrJm77idP6bm0_wNvWSoKN2ISUgrVCZtQvnYJOq8E7mjo42_rscCVAcY__c_gXTnRfuyWZftpdAoyI69sNTQMRfqI1vmJl6zfIuYnJcG-w2MpME3W_Rj_-rMYWZmuFvfR1rVEvEQvhVf1WmDvSS8qjM3xvjmyL2FSvZBpt9SdJxZHA-Yy4g=s0-d-e1-ft" width="96" /></div></div></div></div></div></div></div>Think dairyhttp://www.blogger.com/profile/01274876854167304476noreply@blogger.com0tag:blogger.com,1999:blog-8197085901717056187.post-37271889288254755012021-11-01T02:57:00.001-07:002021-12-09T01:58:15.835-08:00A true dairyman is gifted with virtues of a mother so why to adulterate milk ?<p> <span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Diwali will be in its true elements after two years . The lights of happiness and joy are covering the darkness of pain and despair. Hope is a new certainty. The pain and despair of the pandemic is just fading out.</span></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Corona has made all of us a better human being. We have become more responsible towards ourselves and our near and dear ones. We fought a big battle and the war is still not over.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">“It is easier to change a man's religion than to change his diet.” These are the words of Margaret Meads. Dairy is an essential part of diet for most of the vegetarians in India. The demand for dairy based sweets reaches its peak during the festival times. The demand for such products always surpasses the supply at this time.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">This is the true moment of truth for the dairy. The greed outweighs the value system and adulteration becomes the only way forward.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Greed is good</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The market gets flooded with adulterated milk and milk products during the festival times. We can not expect even the regulator to control it during festival time throughout the country. Self regulation is the only way out of such problems. Ethics are not amongst our top priorities.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">All doctors in the world take a Hippocratic oath. A dairyman doesn't do so. 60% of the times food borne diseases trigger the need of a doctor. Thus it becomes imperative to ignite the value system of a dairyman to provide safe milk and milk products to everyone.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">In the world full of adulteration try to be as pure as cow's fresh milk-Meghna</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Mother's milk is the purest form of milk. A dairyman has to live with a commitment to purpose. The purpose of a dairyman is delivering safe and pure milk to the consumers. It is very easy to become rich in the dairy sector through adulteration. But you do not become wealthy till you have few virtues which money can't buy.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">A true dairyman has the virtues of a mother. The dairyman in one's self is the sole director of such bad practices. It needs discipline and awareness that the consumer is like your own child.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">May this Diwali bring the lights of safety, purity and authenticity in the lives of all the dairymen in the world.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Happy e-reading and Happy Diwali to you and your near and dear ones.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">with best regards</p><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><div data-smartmail="gmail_signature" dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><span style="font-size: 12.8px;">-- </span><br style="font-size: 12.8px;" /><div dir="ltr" style="font-size: 12.8px;">Kuldeep Sharma<br /><div>Chief Thinking Officer</div><div>Suruchi Consultants (ISO 9001:2015 Company)</div><div><br /></div><div>+91-9810315831</div><div><img class="CToWUd" height="64" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEjuieeTUWa7KMtSQtpyGhTCyRin90rPrJm77idP6bm0_wNvWSoKN2ISUgrVCZtQvnYJOq8E7mjo42_rscCVAcY__c_gXTnRfuyWZftpdAoyI69sNTQMRfqI1vmJl6zfIuYnJcG-w2MpME3W_Rj_-rMYWZmuFvfR1rVEvEQvhVf1WmDvSS8qjM3xvjmyL2FSvZBpt9SdJxZHA-Yy4g=s0-d-e1-ft" width="96" /></div></div></div></div></div></div></div>Think dairyhttp://www.blogger.com/profile/01274876854167304476noreply@blogger.com0tag:blogger.com,1999:blog-8197085901717056187.post-87900516821408568192021-10-18T02:56:00.002-07:002021-12-09T01:57:01.148-08:00Show me the silver lining for the dairy farmers<p> <span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">India has received good monsoons this year. Reservoirs are full in almost all the states in the country. The farmers have all the reasons to feel happy except for those who are facing untimely rains in October. Water sufficiency in the country is an insurance against shortage of feed and fodder till next summer.</span></p><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><p>The threat of third wave of Corona is also fading away. The markets have begun to open up with crowds pouring in while distancing themselves from Corona guidelines. Sales at the restaurants is picking up and so is the demand for dairy products in B2B space. The E-commerce sites for dairy as well as D2C platforms are registering phenomenal growth.</p><p>The festival demand for milk and milk product is slightly improving though not matching with the demand in 2019 yet. The dairy plants are focussing more on value added products and enjoying the growth due to shift of demand of unbranded dairy products to the branded ones.</p><h4>The Inflation paradigm</h4><p>As per a report appeared in The ET on Oct 14th "The WPI or wholesale price inflation eased to 10.66% from 11.39% in the previous month but remained in double digits for the sixth month in a row. Food inflation contracted 4.69% in September compared with a 1.29% fall a month ago, while that of manufactured products rose to 11.41% from 11.39% in August. Inflation in potato was -48.95%, onion was -1.91% and fruit was -1.27%. Among manufactured items, prices of basic metals (26.71%), textiles (16.81%) rose. Fuel and power prices rose 24.81% on-year as against 26.09% in August."</p><p>But the country’s economy faces a serious threat -- inflation, especially via the fuel route. A rising trend in international crude prices is only one part of the fuel inflation story as taxes are a big reason behind the current levels of fuel prices. A comparison of price build-up of petrol-diesel brings this out clearly. The tax component of fuel prices was ₹37.83 and ₹28.06 per litre on 14 March 2020, before the Covid-19 pandemic hit. This is now ₹56.26 and ₹44.77 for petrol and diesel.</p><p>It is very difficult for the dairy industry to absorb the fuel inflation under its current cost structure. A simple strategy to absorb this increase is by keeping the farmer's milk prices low. The dairy farmer himself is struggling with higher feed and fodder cost due to increased logistics of all the commodities. The feed prices and other input costs are touching sky.</p><h4>Show me the silver lining</h4><p>India still has huge stocks of SMP, butter and ghee. A major part of these stocks is with the cooperatives. The global prices of SMP are at an all time high but still we are unable to tap the market. The key demand centre of such products are in China and we may not have an easy market access in that market. Good monsoons are bound to increase the milk production and the winter flush in cow belts may emerge at an earlier date.</p><p>The state governments in South are the biggest impediment in increasing the prices of market milk by the cooperatives. This has led to huge loss making proposition for the cooperative dairies. Even under current circumstances the cooperatives are forced to reduce the farmers milk prices.</p><p>The cascading effect of all the factors above is high costs for farmers and the industry on one hand and lower sales realisation and farm gate prices on the other. Another report says that India will be producing 235 Mill MT of milk in FY 23. Would that have any purpose if the farmers are forced to kneel down to a lower milk prices ? </p><p>Is any one amongst the policy makers really concerned about it?</p><p>Happy e reading !!</p><p><br /></p></div><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">with best regards</div><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><br clear="all" /><div><div data-smartmail="gmail_signature" dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><span style="font-size: 12.8px;">-- </span><br style="font-size: 12.8px;" /><div dir="ltr" style="font-size: 12.8px;">Kuldeep Sharma<br /><div>Chief Thinking Officer</div><div>Suruchi Consultants (ISO 9001:2015 Company)</div><div><br /></div><div>+91-9810315831</div><div><img class="CToWUd" height="64" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEjuieeTUWa7KMtSQtpyGhTCyRin90rPrJm77idP6bm0_wNvWSoKN2ISUgrVCZtQvnYJOq8E7mjo42_rscCVAcY__c_gXTnRfuyWZftpdAoyI69sNTQMRfqI1vmJl6zfIuYnJcG-w2MpME3W_Rj_-rMYWZmuFvfR1rVEvEQvhVf1WmDvSS8qjM3xvjmyL2FSvZBpt9SdJxZHA-Yy4g=s0-d-e1-ft" width="96" /></div></div></div></div></div></div></div></div>Think dairyhttp://www.blogger.com/profile/01274876854167304476noreply@blogger.com0tag:blogger.com,1999:blog-8197085901717056187.post-64286592157304245622021-10-02T02:54:00.001-07:002021-12-09T01:55:36.803-08:00Convenience is mother of inauthenticity : The economics of analogues<p> </p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">What is right is often forgotten by what is convenient . Bodie Thoene</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">I came across news on the growth of home delivery platforms in the last few years. This is a story about Zomato. In FY 18 the company had a turnover of Rs 466 Crores. In the last three years the company grew by 5.5 times to close FY 21 at Rs 2604 Crores. The number of orders delivered grew by 13.1 times from around 30 millions in FY18 to 403.1 millions in FY21.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">In other words the average order value reduced from Rs 150 in FY18 to Rs 65 in FY21. Isn't it strange to see the cost of ordered food getting cheaper than the cost of cooked food at home ? I have been taught since childhood that there is no such thing as a free lunch. The news forced me to question my conventional wisdom and I took the challenge to find the root cause.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Being in the dairy industry for over three decades has conditioned me to look at all the problems from the dairy perspective. So I picked up a simple case of a pizza delivered through a Zomato-like platform. Cheese is the biggest cost in a Cheese pizza . The basic recipe calls for 10 gms of cheese per inch size of the Pizza. So for a 6 inch pizza you need 60 gms and for a 10 inch pizza you need 100 gms of cheese.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The economics of making a Pizza</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The average cost of a 6 inch pizza at online platforms may start from Rs 60 onwards. If the restaurant person uses the basic recipe then he is required to use 60 gms of cheese in this Pizza. The price of mozzarella cheese in Horeca is anywhere between Rs 390-Rs 420 per kgs inclusive of gst. Which means that only the cheese component may cost around Rs 25 in this pizza. The cost of pizza base, packaging, sauces, power, fuel, labour, rent and cost of capital may be considered as Rs 25. This makes the total cost of Rs 50 and a margin of Rs 10 per pizza.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Now let us look at the cost of delivery service. The platforms like Zomato , Swiggy etc charge minimum of 28-30% inclusive of gst for on boarding any such restaurant. The minimum cost of such delivery platforms becomes Rs 18-20 per pizza. As the average order value is Rs 65 so we are considering the small pizza case only. It is very difficult for you to sell on such platforms unless you fall prey to their promotional traps like banners, 50% discount etc.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The easy way out</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">So the restaurant starts to think of an easy way out . The simplest formula is to reduce the quantity of cheese per pizza from 10 gms per inch to 5-6 gms per inch. Some knowledgeable consumers may complain about it. So in order to extract more juice from the consumers pocket the Horeca replaces dairy based cheese with analogues which are available anywhere around Rs 240-Rs 290 per kg inclusive of gst.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">This practice is not prevailing in the pizza segment alone. The restaurants and street food vendors have found an easy way out by replacing their butter with margarine, paneer with tofu or Vanaspati filled paneer and cream with imitation cream. In the menus you will never find the word analogues and everyone is conveniently using the dairy terms like cheese pizza or paneer burger etc.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Consumer patronises taste</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Someone was sharing a story about a cheese sandwich seller in Mumbai who puts around 100 gms of shredded cheese in a sandwich for Rs 35. The visual experience is great. Interestingly the consumer was aware of the market price of cheese . But when asked how one could put Rs 40 worth of cheese in a Rs 35 worth of sandwich , she got a little disturbed. Same thing is happening when in your bun maska or butter toast the person is using a quarter of a 100 gms butter pack and charging Rs 15-20 only. Amul butter costs around Rs 46 for 100 gms which means around Rs 12 for a quarter.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Such stories are very common and consumers all over the country are enjoying the softness of paneer (because of palm oil ) and richness of cheese pizza and sandwich (because of mayonnaise and analogues).</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">I feel that the convenience has closed the consumer's eyes. She wants everything delivered to her at the least cost. The spade of convenience is killing the mark of authenticity. The regulator is silent, the economy of inauthentic businesses is booming and the consumer is happy.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Is this how the dream of our PM Modi ji of "Make in India '' and "Atmanirbhar Bharat" be fulfilled ? I leave you with this question.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Happy e reading</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><br /></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">with best regards</p><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><div data-smartmail="gmail_signature" dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr">-- <br /><div dir="ltr">Kuldeep Sharma<br /><div>Chief Thinking Officer</div><div>Suruchi Consultants (ISO 9001:2015 Company)</div><div>C-49 Sector-65</div><div>Noida 201307</div><div><br /></div><div>+91-120-4320845</div><div><img class="CToWUd" height="64" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEjuieeTUWa7KMtSQtpyGhTCyRin90rPrJm77idP6bm0_wNvWSoKN2ISUgrVCZtQvnYJOq8E7mjo42_rscCVAcY__c_gXTnRfuyWZftpdAoyI69sNTQMRfqI1vmJl6zfIuYnJcG-w2MpME3W_Rj_-rMYWZmuFvfR1rVEvEQvhVf1WmDvSS8qjM3xvjmyL2FSvZBpt9SdJxZHA-Yy4g=s0-d-e1-ft" width="96" /></div></div></div></div></div></div></div></div></div></div></div></div>Think dairyhttp://www.blogger.com/profile/01274876854167304476noreply@blogger.com0tag:blogger.com,1999:blog-8197085901717056187.post-18570025362618603232021-09-16T00:14:00.001-07:002021-09-23T00:14:41.207-07:00Micro market is sufficient for a micro enterprise :PMFME Scheme<p> <span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">PMFME stands for Prime minister Formalisation of Micro Food processing enterprise Scheme. India has over 2.5 million micro food processing enterprises operating in the unorganised or informal sector. This informal sector has only 7% share in investment and 3% in outstanding credit. However this sector generates 74% of the total employment with one third as women and contributing to 12 % of the total output. The unorganised micro food processing sector contributes to 27% of the total value addition done.</span></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">This scheme has an outlay of Rs 10000 Crores. This budgetary allocation is for five years. In most of the states and the UTs the central government will cover 60% of the capital outlay while the states will generate a balance 40%. This scheme targets 200000 micro enterprises in the next five years. This scheme unlike others is focussing on market linkages with established supply chains. The scheme will have provisions for capacity building for both entrepreneurial as well as marketing skills of the micro enterprise.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">PMFME is a three tier Scheme</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">PMFME is a three tier scheme. At the first level it is for an individual enterprise. The individual must be above 18years of age and 8th pass. Only one member from each family will be considered for this scheme. This scheme offers 35% credit linked grant with a maximum limit of Rs 10 lakhs. Banks have been identified for providing collateral free loans. This scheme is also available for existing enterprises also which are being covered under ODOP ( One District One Product) range of products for expansion.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">SHG, cooperatives and FPO with members are also entitled under this scheme. A grant of 35% will be given to these groups. These groups must have a turnover of Rs 1 crore and the project cost may not be more than that. A provision of seed capital of Rs 40000.00 per member is also made for these operational groups in the areas covered under ODOP. The group must have 10% margin for project cost as well as working capital margins.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">PMFME is also designed for community based activities. It is something similar to earlier schemes for developing SPVs( Special Purpose Vehicles) for the common use by the micro enterprises. It may have common facilities for Cold storage, warehousing, packing station, processing units, preservation facilities, etc.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Market linkage is the key to success</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The biggest challenge with micro enterprise is the market. They have to compete with state cooperatives and the private dairies at the time of milk procurement as well as at the marketplace. They also do not have enough funds for branding also. The technologies being used at the micro level are not cost effective and packaging not attractive. Such initiatives only make sense if the government provides protection to them. Like earlier Ice cream was an SSI subject and large players were not allowed to enter.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Such protection could be given by GI tagging for their products. Peda from Mathura or ghee from Chandausi could always be linked to the place of origin. Another way to support this micro enterprise is by setting up Community processing and storage centers. At the time of Covid , I saw a group of farmers set up a Khoa processing unit and a local entrepreneur created cold storage for them. In 2008, we recommended GI tag to 180 small farmers in Mathura region for making Mathura's peda in Brij region. However local pressure by large players hindered the project. Now Mathura's peda is manufactured at all corners of the world without much restrictions.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Technology adoption to differentiate</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The role of technology is to create cost effective products for masses. I recommend this scheme to be integrated with all the research institutions in the country having low cost technologies for making dairy and food products. IIT Delhi has some technology to preserve milk for even 24 hours without chilling. There may be more technologies for extending shelf life of milk products or making local products using low cost technologies. The promotion of community processing plants will also help these small players to get their milk chilled, pasteurised , bottled/pouched and to add value at the market place. Same could be done for making Khoa , paneer or ghee.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Currently Paneer sold in loose has no gst imposed on it. Such gst benefits may be given to entities registered under FSSAI and PMFMSE only. It will be a big support to the micro enterprises.The capacity building of these micro enterprises may also be extended to food safety , apart from entrepreneurship and marketing.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">In the end I have to say that micro means "limited in capacity or scale". However we have a large number of clusters for micro demands of dairy and food products. A micro enterprise must be developed to work with micro markets through micro planning and using micro finance. We must stop giving them big macro hopes or macro vision. They will only be sustainable by harnessing the huge potential of these micro demand pockets in rural and suburban India. We must not forget that we do not use a telescope to get a micro view and vice versa.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><br /></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Happy ereading</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><br /></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">with best regards</p><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><div data-smartmail="gmail_signature" dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><span style="font-size: 12.8px;">-- </span><br style="font-size: 12.8px;" /><div dir="ltr" style="font-size: 12.8px;">Kuldeep Sharma<br /><div>Chief Thinking Officer</div><div>Suruchi Consultants (ISO 9001:2015 Company)</div><div><br /></div><div>+91-9810315831</div><div><img class="CToWUd" height="64" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEjuieeTUWa7KMtSQtpyGhTCyRin90rPrJm77idP6bm0_wNvWSoKN2ISUgrVCZtQvnYJOq8E7mjo42_rscCVAcY__c_gXTnRfuyWZftpdAoyI69sNTQMRfqI1vmJl6zfIuYnJcG-w2MpME3W_Rj_-rMYWZmuFvfR1rVEvEQvhVf1WmDvSS8qjM3xvjmyL2FSvZBpt9SdJxZHA-Yy4g=s0-d-e1-ft" width="96" /></div></div></div></div></div></div></div>Think dairyhttp://www.blogger.com/profile/01274876854167304476noreply@blogger.com0tag:blogger.com,1999:blog-8197085901717056187.post-86663880499559013732021-09-03T00:13:00.001-07:002021-09-23T00:13:54.842-07:00The easiest way to solve a problem is stop participating in the problem<p> <span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Dairy industry in India is passing through an interesting time. With each day passed the threat of a third wave is waning off. Large dairy groups have begun to expand through organic or inorganic growth routes. The sales in Hotels and restaurants is improving because the footfall in markets has improved. Everyone is looking forward to good business during the festival times. Rakshabandhan in north and Onam in south has shown a marked surge in the demand for milk and milk products.</span></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">All industries have to thrive with problems and challenges. Dairy sector also has its own sets of challenges. Covid -19 added to these challenges. The industry took the responsibility and converted most of these problems into opportunities. There were three major areas where the industry focussed in this time of crisis .</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">a. Development and launch of healthy and nutritious immunity boosting dairy products.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">b. Delivery of milk and dairy products at the consumers door steps.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">c. The industry began to expand their capacities for milk value added products.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The government on the contrary has started to solve the problems at their hand. However the timings of solving the same may not be the most appropriate one. I remember a quote by Jonathan Mead which says that " Sometimes the easiest way to solve a problem is to stop participating in the problem."</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">5 Areas in which government jumped too early to explore solutions</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">a. Formation of Ministry of cooperation to streamline functioning of cooperatives</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">b. Implementation of BIS order on tin plates and notification to ban plastic packaging even for packaging of milk and milk products.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">c. Imposing income tax on village level dairy cooperatives societies with milk handling of more than 400 Liters</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">d. Reducing Fat standard from 6% to 5% for the buffalo milk through out the India</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">e. Keeping Lassi out of GST but considering GST on flavoured milk at par with Soya milk drinks, fruit pulp or fruit juices and tender coconut water.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">At times I feel that why the government is not addressing more important issues like bringing in stringent rules on milk and food adulteration, reduction of GST on butter and ghee , making healthy milk products (like fermented milks, flavoured milk and paneer) GST free. I still do not understand that the loose panir with almost 80 % market share is being sold without GST. If the FSSAI norms are to be followed then the majority of this loose panir has vanaspati and vegetable oil added to it. Which means that in India if Panir is made under unhygienic conditions and with adulteration of vegetable oil etc then there is no GST but if the same is made and packed as per FSSAI standards and following GMP then 5% GST will be charged on it.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">How could we have two products with the same composition at differential GST ?</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Lassi and Flavoured milk have almost the same composition. Both of them are healthy products. These products are the need of the hour to boost the immunity of our population under pandemic times. Still we are making one GST free and keeping the other at par with the plant based beverage category. The whole world knows the nutritional benefits of milk beverages over the plant based beverages.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">On one hand we boast about the largest population of buffalo in the world and the immense benefits of buffalo milk , while on the other hand we under-rate the most critical quality of this milk by reducing it's fat standard.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Is the government keeping an eye on farmer's income ?</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Everyone knows the intent of our Prime minister to double the farmer's income. In 2022 this dream has to be reviewed. Shall we consider that the farmer's income has already reached a level wherein the tax authorities come to make some money ? Should we have not waited a bit more to even publicise about it?</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Is the government ready with a substitute cost effective packaging for milk and milk products in the absence of plastics ?</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">We need to find plausible cost effective solutions for packaging milk and milk products. There is no harm in plastics as long as the eco system is responsible enough to follow product stewardship.The problem is not with plastics. The problem is in collecting it back and recycling it. I think it is high time for the industry to make a robust plan and present it to the government on how all the packaging material will be collected back and recycled. On one hand if this law is implemented then lakhs of people will lose their employment while on the other hand if an ecosystem of collection and recycling is created then millions of new employment will be generated. Same is true with enforcement of BIS certification on tin plates. It could have been done after making India self sustainable in meeting its tin demand for food packaging.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">At the end I request all the stakeholders to guide the policy makers in a more practical and pragmatic manner. The silent treatment of any issue does not solve it, it makes it worse. Let us all hope for a trouble free festival time for everyone and particularly our 100 million dairy farmers and their families.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Happy e reading</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">with best regards</p><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><div data-smartmail="gmail_signature" dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><span style="font-size: 12.8px;">-- </span><br style="font-size: 12.8px;" /><div dir="ltr" style="font-size: 12.8px;">Kuldeep Sharma<br /><div>Chief Thinking Officer</div><div>Suruchi Consultants (ISO 9001:2015 Company)</div><div><br /></div><div>+91-9810315831</div><div><img class="CToWUd" height="64" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEjuieeTUWa7KMtSQtpyGhTCyRin90rPrJm77idP6bm0_wNvWSoKN2ISUgrVCZtQvnYJOq8E7mjo42_rscCVAcY__c_gXTnRfuyWZftpdAoyI69sNTQMRfqI1vmJl6zfIuYnJcG-w2MpME3W_Rj_-rMYWZmuFvfR1rVEvEQvhVf1WmDvSS8qjM3xvjmyL2FSvZBpt9SdJxZHA-Yy4g=s0-d-e1-ft" width="96" /></div></div></div></div></div></div></div>Think dairyhttp://www.blogger.com/profile/01274876854167304476noreply@blogger.com0tag:blogger.com,1999:blog-8197085901717056187.post-22725450254568082522021-08-17T00:12:00.001-07:002021-09-23T00:13:16.295-07:00To be authentic is to be at peace with your imperfections<p> <span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Research studies in the past have confirmed the consumer preferences for proteins, dietary-fibres and whole-grains as the healthier-foods. The need for protein based food has been prevailing from pre pandemic times. Dairy based foods are becoming the first choice of consumers during the ongoing pandemic times. The labels of the dairy products in India are trying to reinforce the lineage of the products with a captive dairy farm. Even big dairy brands are also trying to woo the consumers in this way . They are making claims that their products are 100% pure cow /buffalo or A2 at its core and are farm fresh.</span></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Most of the dairies are trying to position themselves in the following four key areas :</p><ol style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><li style="margin-left: 15px;">Purity of product as cow milk/ buffalo milk/ A2 /Fresh farm/ Single Origin (Transmitted)</li><li style="margin-left: 15px;">Process certification like HACCP/ ISO 22000/ FSSC , etc ( Tolerance)</li><li style="margin-left: 15px;">Analysis of purity of milk by using 12/16/22/28/36/42 tests for adulterants and contaminants ( Testing)</li><li style="margin-left: 15px;">Tracking of milk in the supply chain particularly in case of direct to home arrangements.(Traceability)</li></ol><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">4T formula of Authenticity</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The consumers are feeling happy to see such claims. She is also spending more to buy these products with tall claims. I am not sure of the capabilities of these companies and particularly the new startups to make such claims. There seems to be a rat race of writing something good on the labels without verifying whether that is right or not. I consider the above mentioned four points as the four pillars of authenticity of any dairy products. Interestingly these four critical points turn out to be an acronym as 4T . We shall be using 4T as a formula for verifying Authenticity of dairy products from now onwards.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Authentic never means perfect. It simply means conforming to fact and thus worthy of belief. Today the dairy industry has authenticity, as a bigger challenge than food safety. People are selling their products by making false claims on 4Ts. I think that the consumer demands authenticity. She will buy your product if you are truthful. Pure cow or buffalo, Pure A2 or A1/A2, Fresh or direct from the farm are just other ways of lying if you are not following the 4Ts. Simon Sinek has given a very good illustration on the term authenticity as follows .</p><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><img alt="" class="CToWUd a6T" height="694" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEgTFv1V7cr79PNcMHiuYqeQA82JzHXby6fQnt8p8w_SSbc1Dp5GpsgEUj4Op3Hkywh1PaCkdAdsONxeJPPrh8LsG91LUCRT6Z9j_hFg-pQdrgSByhTq29JojIHIJWM6bcdGSPePEogeb23pNqFFe7KIJ-kI6dbqAqqC=w694-h694" style="cursor: pointer; outline: 0px;" tabindex="0" width="694" /></div><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Imperfections are not bad</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">It's time to embrace the imperfections. Imperfections are not bad. We could offer safe products even after being imperfect or inauthentic on the 4Ts. However the Food safety has more to do with the regulator but authenticity is an overarching theme for doing any food business. It impacts all the stakeholders including farmers, consumers, society, investors, government, regulator, etc. The consumer demands truth and not a perfect offering. Perfection has no meaning in the world of commodities.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Most of these startups need to answer the following questions before making any claim on their labels :</p><ol style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><li style="margin-left: 15px;">Do they really get their milk and milk products tested for -cow/buffalo/A1/A2 before writing it on their labels ?</li><li style="margin-left: 15px;">Are they really owning dairy farms or collecting milk from the farms under 100% of their control ?</li><li style="margin-left: 15px;">Do they regularly get their milk tested daily for all the adulterants and contaminants written on their labels?</li><li style="margin-left: 15px;">Are they really capable of tracking milk from farm to table as they claim?</li></ol><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Authenticity Rating Scale-The future of Food labelling</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">This is the right time for all of us to think beyond nutritional labels. There is a need to test all the foods on an authenticity rating scale. Authenticity rating scale may be calibrated on the basis of parameters of 4T model. We need to look for institutionalisation of this rating system. Any dairy company will be allowed to get their system audited, verified and rated on this scale. We shall have an eco system of such rating agencies out of existing quality certifications and food safety auditing agencies.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">We can also make this rating system as a voluntary standard for seeking investment from any investor or even government agencies.The blue print of this rating system is ready with us now and we seek patronage by the industry. I request cooperation by all of you for making this rating system a reality.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Looking forward to your valuable comments and interested companies may call us back. </p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Happy e reading''</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><br /></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">with best regards</p><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><div data-smartmail="gmail_signature" dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><span style="font-size: 12.8px;">-- </span><br style="font-size: 12.8px;" /><div dir="ltr" style="font-size: 12.8px;">Kuldeep Sharma<br /><div>Chief Thinking Officer</div><div>Suruchi Consultants (ISO 9001:2015 Company)</div><div><br /></div><div>+91-9810315831 (Pl send a whats app message in case the phone is not picked up)</div><div><img class="CToWUd" height="64" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEjuieeTUWa7KMtSQtpyGhTCyRin90rPrJm77idP6bm0_wNvWSoKN2ISUgrVCZtQvnYJOq8E7mjo42_rscCVAcY__c_gXTnRfuyWZftpdAoyI69sNTQMRfqI1vmJl6zfIuYnJcG-w2MpME3W_Rj_-rMYWZmuFvfR1rVEvEQvhVf1WmDvSS8qjM3xvjmyL2FSvZBpt9SdJxZHA-Yy4g=s0-d-e1-ft" width="96" /></div></div></div></div></div></div></div>Think dairyhttp://www.blogger.com/profile/01274876854167304476noreply@blogger.com0tag:blogger.com,1999:blog-8197085901717056187.post-88357596615954923982021-08-09T00:11:00.001-07:002021-09-23T00:12:14.037-07:00Milk Olympics : Difference between Black gold and Desi silver reduces<p> <span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">In a recently revised standard for Buffalo milk by FSSAI, the fat standard is reduced from 6% to 5%.</span><span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"> </span><em style="color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Buffalo</em><span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">-</span><em style="color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">milk is nearly</em><span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">-</span><em style="color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">2</em><span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">-</span><em style="color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">times richer in fat and about 30% higher in milk</em><span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">-</span><em style="color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">solids-not -fat (mSNF) contents</em><span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">-</span><em style="color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">than</em><span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">-</span><em style="color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">cow</em><span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">-</span><em style="color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">milk . One litre of buffalo milk can be equated with one and half litres of Cow milk. Thus 10 liters of buffalo milk equals to 15 Litres of cow milk considering the total milk solids content. Buffalo milk contains higher concentration of protein, and all the essential amino acids, beside fats, lactose and minerals .</em></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Buffalo milk has more than 50% share in the total milk production of India . It also is considered as pure A2 while studies have shown that milk of even Desi cows have certain percentage of A1 in them.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Earlier the standard of Buffalo milk was 6% in Assam, Bihar,Chandigarh, Delhi, Gujarat, Haryana, Jharkhand, Maharashtra, Meghalaya, Punjab, Sikkim, Uttar Pradesh, Uttarakhand,West Bengal which accounts for nearly two thirds of the total buffalo milk production in India.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Earlier standard of Buffalo milk</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The buffalo milk standard for other states was 5% fat in Andaman and Nicobar Islands, Andhra Pradesh, Arunachal Pradesh, Chhatisgarh, Dadra and Nagar Haveli, Goa, Daman and Diu, Himachal Pradesh ,Jammu and Kashmir, Karnataka, Kerala, Lakshadweep, Madhya Pradesh, Manipur, Mizoram, Nagaland, Odisha, Puducherry, Rajasthan, Tamil Nadu, Telangana, Tripura. These states and Uts contributes nearly one third of the total production.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Dairy farmers have found challenge in achieving 9% SNF in buffalo milk in certain areas due to their unawareness about the feeding practices. Fat was never a challenge in most part of the country. Most of the states in eastern and north eastern part were not producing enough to sell it to other states so there was no logic of changing standards because of them.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Buffalo is a more efficient animal</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Buffalo milk is known for its higher fat and thus is priced higher than the cow milk. Buffalo rearing is more efficient than cow farming. <em>Buffalos are known for efficient utilisation of low quality roughages.</em></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><em>There are many challenges also like late at first calving due to delayed maturity, long calving intervals, long dry periods and variable oestrous. Brazil considers buffalos as Black Gold and currently making efforts to attain the status of becoming the prime holder of buffalos stock in the world.</em></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><em>The Free fatty acids content of buffalo milk and ghee are significantly lower than cows. The total and free cholesterol (275 and 212 mg/100 gms ) in ghee are lower in buffalo than those in cows ( 330 and 280 mg/100 gms). So Buffalo ghee is lower in cholesterol also.</em></p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Was normalisation of buffalo milk standard necessary ?</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The normalisation of standards of buffalo milk in the country may prove to be a nightmare for the milk processors. There is a thin line of differentiation between fat of desi cows and buffalo milk if 5% standard is adopted. Most of the milk procurement and price table of milk are made on the basis of milk above and below 5%. While above 5% is considered at higher rates for buffalo milk, the milk below 5% is bought as cow milk at different rates. The dairy farmers are not selling milk as buffalo milk. At the time of sampling or logistics terms like mixed milk or cow milk is used.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Have you ever seen a tanker or shop where Buffalo milk not for sale is written?</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Buffalo milk sales in the market is a recent phenomenon. The equivalent of buffalo milk is Full Cream milk or FCM. It will be an interesting thing to see that suddenly Full cream milk will be valued more than the buffalo milk. Buffalo milk will be loosing its sheen as Black gold. At consumer level the perception of pure buffalo milk is still better than any other milk including FCM. What will be the fate of this category in coming times is still unimaginable.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Ft standard parity of buffalo milk with cow milk will give an opportunity to sell their diluted buffalo milk as fresh farm cow milk at higher prices.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">It seems that the dairies will have to adopt the RT PCR technology for testing the species of milk in order to ensure authenticity of the milk. The same machine will be able to test the milk for A1/A2 also which is another emerging fad.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">I feel that the time has come when authentic milk is a bigger a challenge than safe milk.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">(A blog by Kuldeep Sharma ( Technical details related to buffalo milk has been picked up from the editorial of Dr G S Rajorhia, President IDA in Indian Dairy Man July 2021 edition. Excerpt from his article are shown in italics.)</p><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><div data-smartmail="gmail_signature" dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><span style="font-size: 12.8px;">-- </span><br style="font-size: 12.8px;" /><div dir="ltr" style="font-size: 12.8px;">Kuldeep Sharma<br /><div>Chief Thinking Officer</div><div>Suruchi Consultants (ISO 9001:2015 Company)</div><div><br /></div><div>+91-120-4320845</div><div><img class="CToWUd" height="64" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEjuieeTUWa7KMtSQtpyGhTCyRin90rPrJm77idP6bm0_wNvWSoKN2ISUgrVCZtQvnYJOq8E7mjo42_rscCVAcY__c_gXTnRfuyWZftpdAoyI69sNTQMRfqI1vmJl6zfIuYnJcG-w2MpME3W_Rj_-rMYWZmuFvfR1rVEvEQvhVf1WmDvSS8qjM3xvjmyL2FSvZBpt9SdJxZHA-Yy4g=s0-d-e1-ft" width="96" /></div></div></div></div></div></div></div>Think dairyhttp://www.blogger.com/profile/01274876854167304476noreply@blogger.com0tag:blogger.com,1999:blog-8197085901717056187.post-37801165549787635402021-07-17T00:08:00.005-07:002021-09-23T00:11:13.364-07:00<p> <span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Silence is the new language of masses. We have seen a huge price increase in almost all inputs to the dairy industry in the last one year. Finally the milk prices in India have also become dearer by Rs 2 from this month. As per the news in HT on July 13th , "Retail inflation as measured by the Consumer Price Index (CPI) grew at 6.26% in June on the back of higher food and fuel prices." This is the second straight month that India’s benchmark inflation measure has been above the Reserve Bank of India’s upper tolerance level. Irony is that no one is talking about it.</span></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The prices of Feed inputs , Diesel, petrol, gas, packaging materials , logistics have all gone up by over 50% in the last few months but no one is not talking about it. India is the producer of the costliest milk in the world. Nearly 17 million dairy farmers are pouring around 3-4 litres of milk at 190000 village level societies, twice a day. There is a huge need of logistical support to transport this milk from villages to the chilling-centers and the milk-processing-plants.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Logistics cost of milk in India</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The average logistics cost for milk procurement is around Rs 3-4 per liter depending upon various seasons. The transportation cost of finished milk will also be around the same till the last mile delivery. The inbound logistics cost for all the materials except milk is also around Re 0.5 per liter. It means that the total transportation cost per liter of milk is not less than Rs 6-7 per liter. Let us look at the change in the diesel prices in the last 15 months.</p><img alt="" class="CToWUd a6T" height="206" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEil2LGm4sI_RavaQ12DZAlYkf9UmhEQLHvYUOXqjYGh21Lc40o3wSNEl1P5Z6G_CTZywMhsT3w5P6j_Oj_p3xbOiDfgUoJ4LOfM8KMEsZUpHgLGgp-0J8czpKIRrYIA2DML6GKLk0fRObPhyimH0ALloWJ6nh9zMuQNSb0XjpIr1XdxUnEFE824=w662-h206" style="background-color: white; color: #222222; cursor: pointer; font-family: Arial, Helvetica, sans-serif; font-size: small; outline: 0px;" tabindex="0" width="662" /><div><span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Diesel Prices in India Since April 2020</span><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Now let us try to understand the role of the government behind such a massive rise in the fuel prices. We are seeing an unprecedented rise of around Rs 30 per liter in diesel in the last 15 months which is almost 50% increase. The breakdown of this price is as follows . Irony is that no one is talking about it.</p><img alt="" class="CToWUd a6T" height="223" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEh_dfc93m-96ZzKBXZKrJ6mlK8iyMRBNGE2xT0fc1zEDO_AmZGCj1bF1jFXeDE2RrKdP_1om0CJ272cZ-nmf5BHP9o1dFe2okG5KMfgUDkmsJoSOfCckYUNQnBXUaeijat2-hy4qeu-BIGByZ_luCedJtWEYLEAYVZxKbaC34_8tYoJ4Npa5Ce6=w659-h223" style="background-color: white; color: #222222; cursor: pointer; font-family: Arial, Helvetica, sans-serif; font-size: small; outline: 0px;" tabindex="0" width="659" /></div><div><span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Price break up of diesel at Delhi as on July 1st 2021</span><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">India ranked first in taxing fuel globally in May 2020</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">We can clearly see that there is an Excise duty of 35.65 percent (Rs 31.80) while VAT in Delhi is 14.62 percent (Rs 13.04) of the retail price of Rs 89.18 a litre. Which means that the excise and vat are contributing over 50 % of the total cost of the fuel. Interestingly no one is talking about this too. India has joined the bandwagon of the developing world in becoming the top tax charging nation on Fuel.One can understand the higher tax charged by the developing world as they have a social security network. In India however it is very difficult to comprehend the same reasoning.</p><img alt="Fuel tax-a cash cow for govts world over - BusinessToday" class="CToWUd a6T" height="367" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEgSqjEqOD858sOyy0O2h-_zZHrEQt7tSWGd7gisWwRkdUep7oHKrm-N0sNvHOB07hflPtl0GfjXmXlovpiAr-YlfJ51uy6bh1-Q1dXokPV2-A0GcYJWrNYM2MsYvvZutw9d6H4wut0UrSoJFjikpdBi-sNeVwBHuQ1j4lsll0wR9fSQ5ahGAecsSDJR8EUjH3BO38BLorzBylrl3QEVRM8XdzAoirj8eTNs5JfzaUxAUJzldA=w652-h367" style="background-color: white; color: #222222; cursor: pointer; font-family: Arial, Helvetica, sans-serif; font-size: small; outline: 0px;" tabindex="0" width="652" /></div><div><span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Top tax charging countries of the world (Indian feb 21, Delhi)Under</span><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">We can see that almost 30-40% of our total milk-transportation-cost ( Rs 2.5-3.5 per liter) is due to higher government-taxes on the fuel. How can we control inflation by charging over 50% taxes on fuel? We have not yet discussed the impact of this transportation cost on the input cost of the dairy farmers. Let us look at the government plans for various schemes which have been announced recently. Almost all the schemes from the DAHD are pointing towards increasing the population of the dairy cattle rather than the productivity. The schemes are designed meticulously so as to manage a mobilisation of 4-5 times of the ministry's-total-outlay for the scheme.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Schemes must be SMART</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Some state-governments are doing a better job by offering pointed support like Export-subsidies on SMP.. The ultimate goal of the scheme is to clear off some part of the huge stocks of SMP. It doesn't matter whether only one cooperative will be the beneficiary, as the cascading effect will be good for everyone. The state-government by spending Rs 150 crores only will be able to clear-off 30-50000 MT of SMP-stocks from the country.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Understanding question is the real answer</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Are the policy makers keeping the following points in their mind while drafting policies apart from their relevant development agendas?</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">a. Will the scheme at any point in future be making small and marginal farmers sustainable?</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">b. Will the scheme at any point of time in future be making dairy cooperatives sustainable?</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">c. Will the schemes at any point in future be defining KPIs and target profits for the Cooperatives as done in the corporate sectors?</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">d, Will the schemes at any point in future be level playing field for the dairy sector by linking it to open markets and demand-supply dynamics?</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">e. Will the schemes at any point in future be thinking of dairy economics instead of livestock development?</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">f. Will the schemes at any point in future be considering the interests of the dairy industry and not dairy cooperatives alone?</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">At the end , I will like to share quotes by a great economist and the Noble prize winner ,Milton Friedman who will be having his 109 th birth anniversary on July 31st as follows :</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><strong>"The government solution to a problem is usually as bad as the problem" </strong>.. <strong>Milton Friedman</strong></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">I wish this is not true in the case of all the decisions which our policy makers are taking for the dairy development in the country.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">At times I feel that writing is a struggle against silence and that's what I am doing.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Let us look at the coming festival times and wish a great time ahead for all stakeholders from the dairy industry .</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Happy e reading</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><br /></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><span style="font-size: 12.8px;">with best regards</span></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><span style="font-size: 12.8px;"> </span></p><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><div data-smartmail="gmail_signature" dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr" style="font-size: 12.8px;">Kuldeep Sharma<br /><div>Chief Thinking Officer</div><div>Suruchi Consultants (ISO 9001:2015 Company)</div></div></div></div></div></div></div></div>Think dairyhttp://www.blogger.com/profile/01274876854167304476noreply@blogger.com0tag:blogger.com,1999:blog-8197085901717056187.post-62535005251255004582021-07-01T22:44:00.001-07:002021-07-08T22:45:39.902-07:00Certainty of 3rd wave and uncertainty of its time is keeping dairies on edge<p> <span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Petrol, Diesel, edible oil, groceries and now milk prices have also increased. Cost of food in India increased 5.01 percent in May of 2021 over the same month in the previous year. It is the highest rate in 6 months. The key food products like oils and fats (30.84 percent), non-alcoholic beverages (15.1 percent), fruits (11.98 percent) and pulses (9.39 percent) recorded the biggest increases. This month milk will also give its small contribution to the big inflationary pressure on a common man.</span></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Indian dairy industry is holding the highest levels of stocks of SMP and butter of all times . Farmer's milk prices in most part of the country was again reduced during the second wave. So the current increase in retail milk prices looks like an insurance against something inevitable. We are 125 days away from Diwali which is considered as a true balancer of SMP and ghee stocks. Old stocks gets depleted and the industry starts to produce new stocks during the flush in winters. Diwali is also known to fuel the prices of these commodities so that every one who stocked it , makes good money. A true win win position.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Diwali and prosperity in dairy</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The market prepares itself for Diwali in two phases. The first phase begins around a month before Rakshabandhan which falls on August 22nd this year. Diwali will be celebrated 74 days after Rakshabandhan. So these 100 days starting from the last week of July will decide the fate of the dairy industry this year as well as set the tone for the prices and demands for next year. Second wave is waning fast but the certainty of the 3rd wave and uncertainty of its time is keeping dairies on-edge.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Most of the researchers as well as astrologers are anticipating the third wave to come in September 2021. There are four possible scenarios which could happen. Apart from the third wave not coming at all, it could either come before Diwali or after Diwali. The most vulnerable scenario is this third wave coming before Diwali and that too in September. The wrath of the second wave otherwise also is going to have a great impact on demand sentiment during Diwali. So what should be done ?</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">National Buffer stock of dairy commodities</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">I think this is high time for the government to create a Buffer stock of SMP in the country which could later be used under Food and nutritional security of BPL families, school children and vulnerable populations . It could be used as a generous gesture of our government to support other countries during any natural calamity through donations.The creation of such a buffer will at least clear off some old stock and motivate the industry to buy more milk from the farmers.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The government has again announced a Covid relief package of Rs 6.29 lakh crores. However I was unable to find anything for the dairy sector in it. There are so many farmers centric areas wherein the government could offer relief to the dairy industry. They may listed as follows:</p><ol style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><li style="margin-left: 15px;">Export subsidies to clear off the huge stocks of SMP ( 2.5 lakh to 3 lakh MT)</li><li style="margin-left: 15px;">Working capital interest subvention for stocks of SMP and butter extended to the private sector also</li><li style="margin-left: 15px;">Disallowing political promises during elections to increase or decrease food prices. ( Tamil Nadu's state cooperative Aavin will lose Rs 270 crores this year due to milk price reduction done as an election promise of the new government).</li><li style="margin-left: 15px;">Creation of a national buffer of 50-75000 MT of SMP stocks with NDDB. This volume is sufficient to create a check for the milk procurement price.</li><li style="margin-left: 15px;">Making SMP an essential part of food and nutritional security plans for BPL, School going children and vulnerable population</li><li style="margin-left: 15px;">Making SMP essential part of international donations made by our generous government .</li></ol><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Key Mantra</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">First wave of pandemic was a natural happening and second and more such waves will be our response to that. It is time for the dairy industry to optimise their costs and improve efficiencies. We can no longer survive with costliest raw milk and inefficient operations.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">It is also time to follow the Covid protocols and get the complete staff vaccinated.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Happy e reading</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><br /></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">with best regards</p><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><div data-smartmail="gmail_signature" dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><span style="font-size: 12.8px;">-- </span><br style="font-size: 12.8px;" /><div dir="ltr" style="font-size: 12.8px;">Kuldeep Sharma<br /><div>Chief Thinking Officer</div><div>Suruchi Consultants (ISO 9001:2015 Company)</div><div><br /></div><div>+91-120-4320845</div><div><img class="CToWUd" height="64" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEjuieeTUWa7KMtSQtpyGhTCyRin90rPrJm77idP6bm0_wNvWSoKN2ISUgrVCZtQvnYJOq8E7mjo42_rscCVAcY__c_gXTnRfuyWZftpdAoyI69sNTQMRfqI1vmJl6zfIuYnJcG-w2MpME3W_Rj_-rMYWZmuFvfR1rVEvEQvhVf1WmDvSS8qjM3xvjmyL2FSvZBpt9SdJxZHA-Yy4g=s0-d-e1-ft" width="96" /></div></div></div></div></div></div></div>Think dairyhttp://www.blogger.com/profile/01274876854167304476noreply@blogger.com0tag:blogger.com,1999:blog-8197085901717056187.post-84078027474272105042021-06-16T22:44:00.002-07:002021-07-08T22:44:27.768-07:00Food Processing PLI Scheme : One size fits for all policy may not work<p> <span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Trade Promotion Council of India organised a webinar on 17th June on the following topic ;"Leveraging PLI scheme for optimal push to large- scale manufacturing in India ". Please find below my sharing in the webinar.</span></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Let us look at the salient features of this scheme from dairy sector perspectives. We shall be examining its guidelines in a pointed way in order to make it relevant to existing dairy players. This scheme is the best bet for the taxpayers money because it is 100% result oriented. Nothing is going to reach anyone's pocket till the applicant has attained the targets.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><strong><em>How does the dairy industry benefit from the PLI scheme </em></strong>?</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">As the scheme has an export focussed orientation so let us look at the status of Indian dairy exports. <strong>India's Export</strong> of <strong>Dairy</strong> products was 51,421.85 MT to the world for the worth of Rs. 1,341.03 Crores or 186.71 USD Millions during the year <strong>2019-20</strong>. It showed a 44% decline over the exports in 2018-19 . Just to set the context ; the dairy imports of our neighbouring country Sri Lanka was almost double of that in the same period.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">During the pandemic with all its constraints; India managed to export dairy products worth Rs 554 crore to more than 110 countries and till Nov 2020 . UAE remained as the biggest market for Indian dairy products during that period.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><br />Milk from Uttar Pradesh (30 Mill MT), Rajasthan (23 Mill MT), Andhra Pradesh (15 Mill MT) , Maharashtra ( 12 Mill MT) and Gujarat (14 Mill MT) have largely contributed to these exports. India’s dairy exports from FY16 to FY 19 touched Rs 5,500 crore .</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><br />The top exported products in that period were ; ghee (Rs 1,521 crore). followed by Butter (Rs 1,486 crore), farm cheese (Rs 435 crore) and milk cream (Rs 230 crore). There’s also been a small market for buttermilk (Rs 20 crore). Whole milk carton export has been worth just Rs 0.5 lakh.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Domestic growth of selected dairy products under PLI</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Milk beverages, Mozzarella cheese , Ice creams and sweets are showing a promising double digit growth. Global markets are not growing as fast as Indian market ; except in the South east Asian region where we are not exporting. Indian dairy products have market access issues with most developed countries in the world. So without resolving those bilateral or multilateral issues exports of our dairy products globally might be a challenge.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><strong><em>How this scheme will lead to the development of ancillary units and growth of connected service sectors leading to job creation and expansion of manufacturing capacity </em></strong></h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Dairy is a single raw material industry and is highly inclusive thus the key beneficiaries are going to be the farmers. In terms of ancillary or allied sector the next big beneficiary is the packaging material. Supply chain and logistics players have also got room to expand under the scheme. Plant and machineries and Utilities suppliers along with civil infrastructure players will also be benefited.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><strong><em>What are the major challenges and ways to address it</em></strong></h4><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">1. The first issue is the baseline year.</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">If 2019-2020 is being used as a reference year then most of the players are still struggling to catch up with the same level of demand even in current year FY 22 . FY 21 went off very bad for all of the dairy products considered under the PLI scheme. Ice creams, frozen desserts and beverages took a bad hit due to the impulsive nature of these products and in the absence of opening up of schools and people going out the demand got impacted drastically. Sweets could neither be exported much nor had a great demand due to limitations on gathering during festivals and marriages.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Mozzarella cheese with a major share of demand in HORECA segment nose dived in demand. The slight respite was an increase in cheese in the retail segment with increased consumption at home. The changed consumer behavior towards healthy and immunity boosting products led to slight increase in consumption of cheese and paneer as a protein supplement. Even the demand of meat and meat products got converted to cheese and panir demand. This trend was not repeated during the second wave of Covid due to poor purchasing power in the target segment at large.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">So, if the base year is shifted to FY 21 then it would set a level playing field for all the applicant to start their journey well.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">2. Limits on investment</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The investment requirements for Mozzarella cheese has been defined very well as Rs 23 crores for 10 MTPD. However for other segments of dairy products like ice cream, beverages and dairy based sweets these were not defined specifically and thus a requirement of Rs 100 Crores in the minimum commitment for investment in those categories is a challenge. A rider of Rs 100 crores and Rs 500 Crores in turnover for these categories of product will leave this scheme valid only for 4-5 large players in the country. These limits must be rationally evaluated and must be brought down to more realistic levels.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">3.Asset Turnover ratio in dairy sector</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">In general the Asset turnover ratio is considered at around 1:5 or more under this scheme. Research shows that even the listed established companies with a similar product mix profile this ratio of asset turnover is swell below 1:5.Even by following the guidelines, for a Mozzarella plant of 10 TPD at 23 crores the turnover will not be more than Rs 90 crores even at 100% cap utilisation for 300 days . This makes the Asset to turnover ratio as 1:3.9 only. It is thus a challenge for someone having a green field to achieve such targets right from the beginning.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">4. Getting investments is difficult</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Bringing in investments currently is a tough task. The financial institutions are not so open to releasing funds. However the incentive commitment on incremental sales under the scheme may provide some brownie points to the applicant but still arranging for equivalent collaterals at a crashed rates of real estate may always be challenging for the small players.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">5. Let schemes and ministries do not act in silos</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">There are some very good ongoing schemes like Animal husbandry infrastructure fund which is supporting new investments in value added dairy segments through 3% interest subvention and 25% credit guarantee. It’s the right time to not run different schemes in silos; rather synergies need to be created by the policy makers by bringing all sector specific schemes under a single window. All the ministries may collaborate at the backend for smooth implementation of the schemes.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">6. Consider Byproducts also under the scheme</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Butter and ghee are the main byproducts while making all the dairy products except ice creams or frozen desserts. Under those circumstances adding Ghee as a mandated product under the scheme may help the applicant to achieve the targets in a more pragmatic manner. In the initial drafts of this scheme I was that desi ghee was one of the considered products under the dairy category.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">7. Be empathetic to applicant's cashflow</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">A bank guaranty of 3% of total investments for small players means a cash block of 35. The banks are as stringent in issuing bank guaranty as in term loan or working capital. As the applicant has to actual fund his cash flows and the government is not paying anything upfront so some relaxation in this area is desirable.</p><h5 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif;">8. Financial year considerations for technical civil costs and plant and machineries must be aligned</h5><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">From Apr-Nov 2019 almost 2.6% of total imports was that of dairy machinery which was also amongst the top 10 imports at that time . Similarly dairy machineries must have arrived in FY 21 also. But the technical civil cost for the food processing sector is being considered from FY 22 while machineries are considered from FY 21 onwards. A slight adjustment here may make a few more companies eligible for the scheme.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">9. Category III may also cover industry specific needed expenditures</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Lastly for category III in our dairy and food sector, certain country specific voluntary quality certifications like BRC etc, selective sampling at modern trade and consumer tasting panels for products in diverse markets is a big cost. It is as important as having fashion shows for the textiles sector. Inclusion of these costs under category III for branding may also be considered if not done so far.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Last but not the least, this scheme has some precedence in the mobile phone segment. That segment has an altogether different ecosystem and requirements. For the dairy and food sector where millions of farmers are involved, I would like the scheme to have more flexibility and quicker windows for reviews and adjustments.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Stay safe always</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Happy e-reading</p><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><div data-smartmail="gmail_signature" dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><span style="font-size: 12.8px;">-- </span><br style="font-size: 12.8px;" /><div dir="ltr" style="font-size: 12.8px;">Kuldeep Sharma<br /><div>Chief Thinking Officer</div><div>Suruchi Consultants (ISO 9001:2015 Company)</div><div><br /></div><div>+91-120-4320845</div></div></div></div></div></div></div>Think dairyhttp://www.blogger.com/profile/01274876854167304476noreply@blogger.com0tag:blogger.com,1999:blog-8197085901717056187.post-34974960174297704932021-06-02T01:08:00.005-07:002021-06-02T01:08:54.821-07:00Justice delayed is justice denied; Why delay the law to protect milk label ?<p> <span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Milk is the first food for life. The integrity of milk labels is under threat today. This *protection of the integrity of milk and dairy is vital* . In a changing business environment the production and placement on the market of imitations can pose potential health risks for consumers. There has been quite some delay by the food regulator FSSAI in India to enact the law for protecting the integrity of milk labels. This is a benign injustice to 100 millions small and marginal dairy farmers as well as 1.3 billions dairy consumers in India.</span></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Delayed justice always bears a cost. Currently that cost is borne by none other than the poor small and marginal farmers associated with dairy farming. The problem doesn't end here . The dairy processors have made huge investments to ensure smooth supply of milk and products to the market. There is a huge eco system of stakeholders from the private and public sector also which is at stake due to this delay.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><br /></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Currently the plant based dairy products industry is taking the generic dairy industry heads on. They are doing it by publicising the false notion of dairy being bad as it is an outcome of cow cruelty. The frame of reference being considered by so called social organisations is utterly from a western context of dairy farming. Commercial dairy farming has a dual dimension of dairy and beef in the western world. The farmers keep the animals for 2-3 lactation cycles only for dairy purpose.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Cow is part of a farmer's family</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">In Indian culture a cow is an eternal part of a farmer's family. There is no counting of the number of lactations that animals spend in the backyard of an Indian farmer. The ban on cow slaughter in India resolves any further doubt on mishandling of this sacred animal in an Indian context.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"> </p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The natural origin, nutritional value, functional properties and sensory characteristics of milk and milk products have created a uniquely positive consumer perception. This also is helpful in creating a strong market position of milk and milk products all over the world.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Codex Alimentarius adopted the The Codex general standard for the use of Dairy terms (GSUDT) in 1999. The mandate was to ensure the correct use of dairy terms intended for milk and milk products. The same also ensured fair practices in the food trade . The purpose was to avoid any confusion or misleading of consumers by the use of dairy terms on non-dairy-products.</p><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">GSUDT Rules</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The clear rules as laid down in the GSUDT *provide an internationally accepted framework to protect the integrity of milk and milk products against nutritionally inferior imitation products that attempt to take advantage of the natural and healthy image of milk and milk products*. Its application assists consumers all over the world in making their own purchasing decisions regarding milk products versus non-milk products and it ensures fair<br />practices in the food trade.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"> Codex Alimentarius under GSUDT has given two simple definitions<br /></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"> for the milk and milk products as given below. So where is the confusion on this? What's wrong in calling milk and milk products by the names which are generic and popular ? What's wrong is restricting all other food products not matching the criteria to be known by some other names? We have not seen any authority banning the production of any such analogue products. The regulation is not about banning them. It is only about ethics and integrity of an age-old traditional range of food products.</p><img alt="" class="CToWUd a6T" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEj045Nw_eFIgg7CC48k7yco7ilk0Yk91F2tjva3WQxj9kEm3AcUoZHaKo3oNQqpcTRkQWL4gUYPwAEm_iUo3P-5xW5zJHwIUrt7IhIFRz5AJm1YwJAb4_e2f98NUs8pBAySIdGoyniL5TOlzgi0zg2J4OKzBFV2YO33eRuODhAzQBeS0eqzIMUH=s0-d-e1-ft" style="background-color: white; color: #222222; cursor: pointer; font-family: Arial, Helvetica, sans-serif; font-size: small; outline: 0px;" tabindex="0" /><span style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Definitions as per GSDUT for milk and milk products</span><h4 style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Dairy terms augment analogues more than their intrinsic nutritional power</h4><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">It seems that the dairy nomenclature gives an easy route to these plant based derivatives in the consumer minds. They wish to piggyback the benefits of strong positioning of dairy products by introducing their less nutritional analogues products. There are 3 key questions to be answered at this stage ?</p><ol style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><li style="margin-left: 15px;">If milk and milk products are so bad then why do they name their plant-based and cell-based laboratory-made products with dairy terms ?</li><li style="margin-left: 15px;">Why don't they be innovative enough in coining new nomenclature for their dairy-like products eg in categories of milk, cheese, yogurts, ice-cream etc ?</li><li style="margin-left: 15px;">If their products are so nutritional then why don't they let the consumer decide on what is good for them without talking negative about a generic industry ?</li></ol><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">A </p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">I think it is the right time for the regulator FSSAI to enact the law related to analogues. The draft notification for the same was released in July 2020. The law will also be giving an opportunity for all dairy processors to use a logo to simplify consumer-choice-process. At the end, the menace of use of veg-oil in ghee, paneer, khoa and cheese with or without declaration would also be contained well.</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Happy e reading</p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><br /></p><p style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">with best regards</p><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><div data-smartmail="gmail_signature" dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><span style="font-size: 12.8px;">-- </span><br style="font-size: 12.8px;" /><div dir="ltr" style="font-size: 12.8px;">Kuldeep Sharma<br /><div>Chief Thinking Officer</div><div>Suruchi Consultants (ISO 9001:2015 Company)</div><div><br /></div><div>+91-120-4320845</div><div style="text-align: center;"><img class="CToWUd" height="64" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEjuieeTUWa7KMtSQtpyGhTCyRin90rPrJm77idP6bm0_wNvWSoKN2ISUgrVCZtQvnYJOq8E7mjo42_rscCVAcY__c_gXTnRfuyWZftpdAoyI69sNTQMRfqI1vmJl6zfIuYnJcG-w2MpME3W_Rj_-rMYWZmuFvfR1rVEvEQvhVf1WmDvSS8qjM3xvjmyL2FSvZBpt9SdJxZHA-Yy4g=s0-d-e1-ft" width="96" /></div></div></div></div></div></div></div>Think dairyhttp://www.blogger.com/profile/01274876854167304476noreply@blogger.com0tag:blogger.com,1999:blog-8197085901717056187.post-87388127240721091442021-05-18T04:17:00.001-07:002021-05-18T04:22:53.277-07:00Carbon free Enviro labelling : Are we prepared for emerging consumer trends ?<p> <span face="Arial, Helvetica, sans-serif" style="background-color: white; color: #222222; font-size: small;">I hope all of you are safe and fine with your near and dear ones. The dairy scenario in India is following the doctrine of mirror neurons. History is repeating itself and farmgate milk prices have already plummeted in double digits. The milk supply chain has yet not been impacted like last year but rural India is facing the wrath of pandemic for the first time. A few companies in the south India have already reduced retail prices for market milk but other parts of the country are still silent.</span></p><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><br /></div><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">A recent article by a noted publication shared the apprehensions of Indian dairy sector being culled out by the global players on account of green-house gas (GHG) emissions of Indian cattle. We could always have a reasonable and legitimate defence by giving lots of examples of the developed world being a bigger culprit than us in GHG emissions. </div><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><br /></div><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Consumerism is the king and the current trends worldwide are showing a positive attitude towards ecolabels and the environmental footprint behind a food. As per a study done in the EU , 57% of EU consumers look for such environmental labels while buying foods. Agriculture linked food chains contribute to around 25% of all GHG emissions.In the absence of firm regulatory, not many manufacturers are opting for climate linked labeling of their foods.</div><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><br /></div><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">It is also an interesting point to note that a large segment of consumers do not even trust the climate change related information. They even believe that there is no human hand of any sorts in climate change.</div><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><br /></div><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">Further research has interestingly unleashed that the carbon footprint of food is of some interest to the food consumers. <b><u>Carbon scoring is slated to be the next big thing in food labeling.</u></b> Carbon emissions are also becoming an area of concern for manufacturers and retailers. They could always highlight the decreasing levels of Carbon emission with their efforts and build positioning around that.</div><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><br /></div><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">The stakeholders have begun <b> Life cycle assessment (LCA) </b> of their food chain so as to even forecast the time frame in which they would become carbon free.Research studies are indicating that a large population of consumers are shifting their choices to the brands which could help them reduce carbon emissions. </div><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><br /></div><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">A recent research study by <b>Mckinsey</b> about the emerging trends in post covid era revealed that ;</div><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><br /></div><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;">"<span style="font-family: Helvetica;">Pursuit of health and wellness continues to be on consumers’ minds; 42 percent of consumers that purchased more dairy alternatives during the pandemic than before did so based on perceived health benefits, a 14 percent increase from 37 percent in 2019. <b>Similarly, an eye toward sustainability as a reason to purchase products increased significantly, with dairy consumers focused on both carbon emissions and packaging."</b></span><span style="font-family: Helvetica;"><b> </b></span></div><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><span style="font-family: Helvetica;"><b><br /></b></span></div><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><span style="font-family: Helvetica;"><b>Now the key question to be asked is whether the regulatory around the world is ready for such claims on the food label.</b></span></div><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><span style="font-family: Helvetica;"><b><br /></b></span></div><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><span style="font-family: Helvetica;">Regulatory authorities of the developed world, especially USA, EU, etc have already developed green books or green guides for the processors to validate their claims. Such consumer trends are not too far away from South asian markets like India, China, Thailand, etc. <b>Covid though has slowed down life but sped up the changes in consumer behaviour.</b> So isn't it high time for Indian food regulatory and other stakeholders to start preparing for the environmental labelling on food for the future. </span></div><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><span style="font-family: Helvetica;"><br /></span></div><div style="background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhlnULWFpntEjVKPp0BOzmE4lhoVQx9ouCM79igAAZnO7M9y8tPtEMhk5Gvzf_isL37BfKNE-SxDmLh_u8pyyNoEcOE9NZn5MwIrvxgH4dqpInuk3ftfkujg8l2ENIXTk9vYYlI898TwfY/s1637/logo.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1082" data-original-width="1637" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhlnULWFpntEjVKPp0BOzmE4lhoVQx9ouCM79igAAZnO7M9y8tPtEMhk5Gvzf_isL37BfKNE-SxDmLh_u8pyyNoEcOE9NZn5MwIrvxgH4dqpInuk3ftfkujg8l2ENIXTk9vYYlI898TwfY/s320/logo.jpg" width="320" /></a></div><br /><span style="font-family: Helvetica;"><br /></span></div>Think dairyhttp://www.blogger.com/profile/01274876854167304476noreply@blogger.com0tag:blogger.com,1999:blog-8197085901717056187.post-78951483192386750122021-05-17T23:34:00.002-07:002021-05-18T23:37:27.742-07:00Today is yesterday’s effect and tomorrow’s cause<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgl_F-e6sftfNZu0gmka90xmyZkpVs6o4hpNGtEFeqDX3E0FP5fj_fI7D87klqwefnVKYz_cK0dBXYWXdOYaPzj9MLw9Yopv_afez7nBxHwXbR0UOmwsFerJo_2pv9S4GUCtY1RTJl26aQ/s517/corona_vaccination_dairynews7x7.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="229" data-original-width="517" height="276" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgl_F-e6sftfNZu0gmka90xmyZkpVs6o4hpNGtEFeqDX3E0FP5fj_fI7D87klqwefnVKYz_cK0dBXYWXdOYaPzj9MLw9Yopv_afez7nBxHwXbR0UOmwsFerJo_2pv9S4GUCtY1RTJl26aQ/w620-h276/corona_vaccination_dairynews7x7.png" width="620" /></a></div><br /> <span style="background-color: white; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px;">Today I don’t have words to express my gratitude towards your love and support. T</span><span style="box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; font-weight: bolder;">oday is the first edition of the sixth year of Dairy Pulse.</span><span style="background-color: white; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px;"> </span><span style="background-color: white; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px;">I realised it after looking at the 131st edition number being put on the current issue of Dairy Pulse . In the last six years ,our efforts were to share every relevant information from the dairy sector with you. Thanks for being such a big support.</span><p></p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;"><br style="box-sizing: border-box;" />Today’s scenario is very unique and the old story of Chicken and egg is repeating itself. The coming 2-3 weeks are very special. As most likely size of the population vaccinated against Corona would create a shield against the population likely to get affected by Corona.</p><h4 style="background-color: white; box-sizing: border-box; color: #212121; font-family: Montserrat, sans-serif; font-size: 24px; letter-spacing: -0.05em; line-height: 25px; margin-bottom: 0.5rem; margin-top: 0px;"><br style="box-sizing: border-box;" />The statistics goes as below for April 15th 2021 :</h4><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">Number of people recovered from Corona : 12.5 MillionTotal number of Vaccination done ( both first and second) : 117.5 million<br style="box-sizing: border-box;" />Now lets get back to the chicken and egg story. Vaccination in India began from Jan 16th and let us look at its relationship with surge in Corona cases.<br style="box-sizing: border-box;" />Corona cases reported on Jan 16 : 15144Vaccination done on Jan 16th : 191181<br style="box-sizing: border-box;" />Corona cases reported on April 15th : 217353</p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">Vaccination done till April 15th : 117.2 million doses<br style="box-sizing: border-box;" /></p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">I wonder if the surge in Corona cases causing people to get vaccinated or the surge in vaccination causing Corona to grow exponentially. I pray to god that the former be true.<br style="box-sizing: border-box;" /></p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">The government knows their job well and let us leave it to them to decide on how to curb Corona 2.0 in India. I am worried about the dairy sector. Night, day, weekend and fortnightly curfews are back in most parts of the country.</p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">Milk prices have shown dip in a few of the largest milk producing states in the country. The dairy commodity prices have plunged in the absence of demand . Horeca demand has plummeted again along with weakening of demand for chilled and frozen dairy products. </p><h4 style="background-color: white; box-sizing: border-box; color: #212121; font-family: Montserrat, sans-serif; font-size: 24px; letter-spacing: -0.05em; line-height: 25px; margin-bottom: 0.5rem; margin-top: 0px;">When would see the next peak of Corona ?<br style="box-sizing: border-box;" /></h4><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">A million dollar question at this moment is when would the peak of Corona cases touch in India. Has it really got some correlation with the rate of vaccination.? Would the curve be kinky this time or a gradually declining curve? Today over 7% of the population has got vaccinated but it is still not clear on the absolute threshold from where the corona cases will gradually start to fall. The last question to be answered is whether we could avoid complete lockdown in the country ?</p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">Amidst all this confusion I better thought to prepare a 10 point list of immediate actions to be taken up by all the stakeholders so as to avoid mistakes which impacted the industry last year. Proactive approach generally has never harmed anyone .</p><h4 style="background-color: white; box-sizing: border-box; color: #212121; font-family: Montserrat, sans-serif; font-size: 24px; letter-spacing: -0.05em; line-height: 25px; margin-bottom: 0.5rem; margin-top: 0px;">10 points action plan for all the stakeholders</h4><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;"><br style="box-sizing: border-box;" />1. All the helpdesks created by the government and various departments for farmers support must be made active and their numbers must be shared through high publicity.</p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">2. Semen, Liquid Nitrogen , veterinary medicines, feed and fodder , silage etc must be ensured in plenty along with its transportation so that the calving cycles might not get impacted.</p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">3. All front line dairy workers across the dairy value chain must be vaccinated on first priority and be issued curfew passes with immediate effect. Online provisions may also be made regarding this.</p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">4. All critical and essential feed ingredients must be put under some kind of essential commodity act and its hoarding must be banned. There has been an almost 50-60% surge in soya and 10-20% surge in mustard and sunflower DOC since Feb 12th.</p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">5. The regulator FSSAI must be more vigilant to check sales of adulterated milk, paneer, ghee and khoa during this period. The miscreants try to locally supply this material under curfew like conditions. This in turn creates a milk surplus at farmers level.</p><h4 style="background-color: white; box-sizing: border-box; color: #212121; font-family: Montserrat, sans-serif; font-size: 24px; letter-spacing: -0.05em; line-height: 25px; margin-bottom: 0.5rem; margin-top: 0px;">Stocking and hoarding for profit booking must be checked</h4><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">6. Raw material stocks for packaging material of food products must be brought under essential commodities like law so that hoarders must be punished. </p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">7. An online arrangement for getting the curfew passes for dairy workers must be in place. Most of the time barring a few large players, these passes were not issued to small and medium sized dairy players. </p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">8. There should not be any restriction on government cooperatives to supply milk in a city or in containment zones. Private sector also follows the same process from milk collection to processing . Sales of dairy products by the private sector is also equally important as that from the cooperative sector.</p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">9. All departments of animal husbandry must keep an online record of medicines, semen , vaccines for animals and stock out positions in any of these categories must be avoided.</p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">10. Lastly the government must procure whole of the good quality milk powder stocks of older dates from both cooperatives and the private sector. These stocks may be distributed to BPL, mid day meal scheme( by sending it to the homes of school children if schools are closed), destitutes and jobless migrants ( at Panchayat levels). This would help in clearing the stocks which would in turn help in converting more milk into powder in case the situation worsens. <br style="box-sizing: border-box;" /></p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">I am sure that there may be many more things which could be done but actions based on last year experiences must be given priorities. </p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;"><br style="box-sizing: border-box;" /><span style="box-sizing: border-box; font-weight: bolder;">That reminds me of a famous quote by Phillip Gribble that<br style="box-sizing: border-box;" />” Today is yesterday’s effect and tomorrow’s cause.”</span><br style="box-sizing: border-box;" /></p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">Let us hope that this problem is controlled very soon . May our industry gains full momentum from the second quarter onwards.</p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">A dairy blog by Kuldeep Sharma Chief editor Dairynews7x7</p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;"><br /></p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;"><a href="https://dairynews7x7.com/today-is-yesterdays-effect-and-tomorrows-cause/">Today is yesterday's effect and tomorrow's cause - (dairynews7x7.com)</a></p>Think dairyhttp://www.blogger.com/profile/01274876854167304476noreply@blogger.com0tag:blogger.com,1999:blog-8197085901717056187.post-28601461254396566422021-05-17T23:22:00.010-07:002021-05-18T23:38:14.215-07:00Don’t follow a trend , Follow your heart : A blog by Kuldeep Sharma<p> <span style="background-color: white; color: #222222; font-size: 16px;">India recorded over 3.57 lakh new covid-19 cases in the 24 hours ending 8 am Tuesday, taking the total infections past the 2 crore mark. With this the country reported a decline in daily spike for the third consecutive day. Over 34 lakh cases are currently active, the lowest rise in active cases in a month, while over 1.66 crore people have recovered after testing positive. That reminds me a great quote as follows .</span></p><h4 style="background-color: white; box-sizing: border-box; color: #212121; font-family: Montserrat, sans-serif; font-size: 24px; letter-spacing: -0.05em; line-height: 25px; margin-bottom: 0.5rem; margin-top: 0px;"><span style="box-sizing: border-box; font-weight: bolder;">Don’t follow a trend , Follow your heart : Krist Novoselic</span></h4><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">Interestingly amid a surge in coronavirus cases our PM Modi took some key decisions to boost availability of medical personnel in fighting Covid-19. He said that the final year MBBS students and BSc GNM-qualified nurses can be deployed for Covid duties. He added that the medical personnel completing 100 days of Covid duties will be given priority in forthcoming regular government recruitments. This decision will be a milestone in India fighting battle of Corona.</p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">Corona has not stopped Atmanirbhar Abhiyan of the current government. Guidelines for the long awaited PLI scheme by Ministry of Food processing has been unleashed. An expression of interest has been floated and the last date for applying is June 17th 2021. The scheme has focussed on Mozzarella cheese , Ice cream, Milk beverage, buttermilk and Indian traditional sweets amongst the dairy products.</p><h4 style="background-color: white; box-sizing: border-box; color: #212121; font-family: Montserrat, sans-serif; font-size: 24px; letter-spacing: -0.05em; line-height: 25px; margin-bottom: 0.5rem; margin-top: 0px;">Details of PLI scheme</h4><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">The scheme is launched under three categories and is open for (i) Proprietary Firm or Partnership Firm or Limited Liability Partnership (LLP) or a Company registered in India (ii) Co-operatives; and (iii) SME as defined under MSME development act.</p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;"><span style="box-sizing: border-box; font-weight: bolder;">Category</span><span style="box-sizing: border-box; font-weight: bolder;">–</span><span style="box-sizing: border-box; font-weight: bolder;">I</span>: Applicants are large entities who apply for Incentive based on Sales and Investment Criteria. Applicant under this category could undertake Branding & Marketing activities abroad also and apply for grant under the scheme with a common application.</p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;"><span style="box-sizing: border-box; font-weight: bolder;">Category–II:</span> SMEs Applicants manufacturing innovative/ organic products who apply for PLI Incentive based on Sales.</p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;"><span style="box-sizing: border-box; font-weight: bolder;">Category–III:</span> Applicants applying solely for grant for undertaking Branding & Marketing activities abroad.</p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">For Mozzarella cheese under Category I the eligibility criteria is Rs 150 crores sales in food products and a minimum investment outlay of Rs 23 crores for a 10 MTPD plant. The outlay would cover Plant and machineries as well as technical building. It could be a green field project or an expansion by any registered entity.</p><h4 style="background-color: white; box-sizing: border-box; color: #212121; font-family: Montserrat, sans-serif; font-size: 24px; letter-spacing: -0.05em; line-height: 25px; margin-bottom: 0.5rem; margin-top: 0px;">Coverage of product mix</h4><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">Mozzarella cheese in Bulk and consumer Packaging which gets covered under HS Code 0406. All other cheese except Mozzarella ( HSN 04061000-4000) are excluded from this scheme. Minimum CAGR in sales expected for availing PLI is 15% in cheese category.Incentives will be given to this segment of products at the rate of 10% for first 3 years and then gradually reducing to 8%,6% and 4% in 2024-25, 2025-26 and 2026-27 respectively.</p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">Other products from the dairy sector are<br style="box-sizing: border-box;" />1. Ice Cream: Impulse Ice Cream, Take Home Ice-Cream, Frozen Dessert:<br style="box-sizing: border-box;" />2. Milk Based Beverages- Yoghurt, Buttermilk, Lassi etc. <br style="box-sizing: border-box;" />3. Packaged Indian traditional sweets under HS code 2106</p><h4 style="background-color: white; box-sizing: border-box; color: #212121; font-family: Montserrat, sans-serif; font-size: 24px; letter-spacing: -0.05em; line-height: 25px; margin-bottom: 0.5rem; margin-top: 0px;">Incentive computation criteria</h4><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">Minimum CAGR in sales expected for availing Production Linked Incentive for these categories of products is 10%. Incentives will be given to this segment of products at the rate of 10% for first 4 years . And then gradually reducing to 9% and 8% in 2025-26 and 2026-27.</p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">Base Year for calculation of Incremental Sales would be 2019-20 for the first 4 years. For 5th & 6th years, the Base year would shift to 2021-22 & 2022-23 respectively. </p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">The proposals/ Eols, will only be received at online portal: https://plimofpi.ifciltd.com . Last date for submission of application is <span style="box-sizing: border-box; font-weight: bolder;">17.06.2021 upto 5:00 PM</span>. </p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">It is yet another initiative by the government of India for the creation of global food manufacturing champions .</p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">Let us all pray for our nation and the kind of future which it is capable of creating. As some one has said it rightly that a great future doesn’t require a great past. So the only path which is visible from here goes up only.</p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">Stay safe, Stay healthy</p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;">A blog by Kuldeep Sharma</p><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;"><a href="https://dairynews7x7.com/dont-follow-a-trend-follow-your-heart-a-blog-by-kuldeep-sharma/">Don't follow a trend , Follow your heart : A blog by Kuldeep Sharma - (dairynews7x7.com)</a></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSH7L7RaVzIFrb9GKc3w0hbU6LM7KKuyXryPhdVwYqtPBWdUo6WhEnBHLJ6i2-OdjkXImIzpQ_9LLN2-NitoY42m5v7SI44jrwGW9mIAD9H9EZCIWx8w4z5Vbvng6qmvpVuT5tCYL_byk/s720/follow-your-heart.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="340" data-original-width="720" height="302" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSH7L7RaVzIFrb9GKc3w0hbU6LM7KKuyXryPhdVwYqtPBWdUo6WhEnBHLJ6i2-OdjkXImIzpQ_9LLN2-NitoY42m5v7SI44jrwGW9mIAD9H9EZCIWx8w4z5Vbvng6qmvpVuT5tCYL_byk/w640-h302/follow-your-heart.jpg" width="640" /></a></div><br /><p style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Work Sans", sans-serif; font-size: 16px; margin-bottom: 20px; margin-top: 0px;"><br /></p><p><br /></p>Think dairyhttp://www.blogger.com/profile/01274876854167304476noreply@blogger.com0tag:blogger.com,1999:blog-8197085901717056187.post-32915808716213610342021-04-02T05:29:00.001-07:002021-04-02T05:29:13.495-07:00The secret of Life is this : The cow does not give milk<p> </p><p style="-webkit-text-stroke-width: 0px; background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;">Last fortnight the whole nation celebrated Holi. The colours are back in life. The corona cases in some parts of the country have again surged to match last year's growth rate. By the grace of god Corona is not registering its presence in the states undergoing elections. Probably Corona also believes in the power of democracy.</p><p style="-webkit-text-stroke-width: 0px; background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;">The government is fulfilling all their promises made in the Atma Nirbhar package for the dairy sector. Last week Production linked Incentive scheme amounting Rs 10800 Crores also got cabinet nod for the food processing sector. Buffalo Mozzarella cheese and desi ghee are the two major dairy products which have been considered under this scheme.</p><h4 style="-webkit-text-stroke-width: 0px; background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; letter-spacing: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;">Animal husbandry infrastructure development fund</h4><p style="-webkit-text-stroke-width: 0px; background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;">The Rs 15000 Crores, Animal husbandry infrastructure development fund has already cleared Rs 870 crores of projects in this year. The salient features of this scheme as against other schemes implemented earlier are as follows :</p><ol style="-webkit-text-stroke-width: 0px; background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><li style="margin-left: 15px;">This scheme covers MSME in private sector, FPOs and cooperatives through FPOs.</li><li style="margin-left: 15px;">It is available for new projects as well as for strengthening and expansion of existing dairy projects also.</li><li style="margin-left: 15px;">This covers products like Ice cream, Cheese, UHT milk, Milk powder, Whey powder, flavoured milk. It covers other Value added dairy products also.</li><li style="margin-left: 15px;">It covers all kinds of feed and fodder making setups like Animal feed plants, Total mixed ration block units . Mineral mixture. By pass protein, Enriched silage making units with feed testing laboratories are also covered under this scheme.</li><li style="margin-left: 15px;">Now even breeding farms can be established under this scheme making a 360 degree coverage of the sector.</li></ol><p style="-webkit-text-stroke-width: 0px; background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;">The scheme offers a 3% interest subvention on the complete project cost . Land cost, working capital , old machineries and personal vehicles are not covered under the scheme. The policy makers have capped the lending rates also at 2% above the EBLR or external Benchmark lending rate. Department of animal husbandry will provide credit guarantee to the tune of 25% to all MSME having viable projects for their total credit facility available.</p><h4 style="-webkit-text-stroke-width: 0px; background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; letter-spacing: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;">Shifting consumer behaviour</h4><p style="-webkit-text-stroke-width: 0px; background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;">The real time for growth of the dairy sector has arrived. A major shift in consumer behaviour from loose to packed dairy and food products will anchor newer demand points. In dairy sector this new demand could be anywhere from 10-20 million litres per day per year for next 5-7 years. This way the organised dairy sector foot print will increase from 35-40% in 2021 to 60-65 % by 2027-28.</p><p style="-webkit-text-stroke-width: 0px; background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;">This reminds me of an old story which says that "The secret of Life is this : The cow does not give milk". You have to milk the cow. There is this generation that thinks that cows give milk. The reality is that one has to get up at 4 AM in the morning, go to the field,walk through the corral full of manure,tie the tail, hobble the legs of the cow, sit on the stool,place the bucket and milk the cow.</p><p style="-webkit-text-stroke-width: 0px; background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;">Same is true for the industry. The cow ( government schemes) in this case does not give milk. You have to do the hard work to get the milk (benefits like grants, interest subvention, credit guaranty etc). The hard work includes the following actions.</p><ol style="-webkit-text-stroke-width: 0px; background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><li style="margin-left: 15px;">Market assessment and future projections of demand for complete dairy product mix</li><li style="margin-left: 15px;">Setting target for market share in a plausible manner</li><li style="margin-left: 15px;">Drawing out an action plan for modernisation/expansion of your existing set up or a greenfield project.</li><li style="margin-left: 15px;">Identification of Location and Land for acquisition</li><li style="margin-left: 15px;">Project designing and estimating project cost</li><li style="margin-left: 15px;">Aligning the same with the most appropriate scheme</li><li style="margin-left: 15px;">Getting all necessary approvals from other departments like Pollution, NGT , Land use , etc.</li><li style="margin-left: 15px;">Applying for the scheme at "Udyami Mitra "portal of SIDBI.</li><li style="margin-left: 15px;">Choosing a bank of your choice</li><li style="margin-left: 15px;">Wait for the appraisal and clearance of the project</li><li style="margin-left: 15px;">Begin your journey after getting the approval</li></ol><p style="-webkit-text-stroke-width: 0px; background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;">Current environment is very conducive for investments in the dairy sector. Soon we shall be sharing the details of the PLI scheme after getting the guidelines. A few more schemes on dairy entrepreneurship are also on the anvil and will be available soon for dairy startups also.</p><p style="-webkit-text-stroke-width: 0px; background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;">Happy e reading</p><p style="-webkit-text-stroke-width: 0px; background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><br /></p><p style="-webkit-text-stroke-width: 0px; background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;">with best regards</p><div style="-webkit-text-stroke-width: 0px; background-color: white; color: #222222; font-family: Arial, Helvetica, sans-serif; font-size: small; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><div data-smartmail="gmail_signature" dir="ltr"><div dir="ltr"><div><div dir="ltr"><div><div dir="ltr"><span style="font-size: 12.8px;">-- </span><br style="font-size: 12.8px;" /><div dir="ltr" style="font-size: 12.8px;">Kuldeep Sharma<br /><div>Chief Thinking Officer</div><div>Suruchi Consultants (ISO 9001:2015 Company)</div><div><br /></div><div>+91-9810315831</div><div><img class="CToWUd" height="64" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEjuieeTUWa7KMtSQtpyGhTCyRin90rPrJm77idP6bm0_wNvWSoKN2ISUgrVCZtQvnYJOq8E7mjo42_rscCVAcY__c_gXTnRfuyWZftpdAoyI69sNTQMRfqI1vmJl6zfIuYnJcG-w2MpME3W_Rj_-rMYWZmuFvfR1rVEvEQvhVf1WmDvSS8qjM3xvjmyL2FSvZBpt9SdJxZHA-Yy4g=s0-d-e1-ft" width="96" /></div></div></div></div></div></div></div></div></div>Think dairyhttp://www.blogger.com/profile/01274876854167304476noreply@blogger.com0