Professional Documents
Culture Documents
CONTENTS Acknowledgements
Executive summary ......................................................................................................3 1. Background .......................................................................................................... 8 1.1 National context ........................................................................................... 8 1.2 Chhattisgarh State Context...........................................................................9 1.3 Importance of Dairy sub sector in Chhattisgarh State............................. 11 2. Dairy Sub Sector Study Objectives and Methodology......................................12 2.1 Objectives of sub sector study ....................................................................12 2.2 Methodology ................................................................................................13 3. Sub sector Map .......................................................................................................13 3.1The production sub system ...............................................................................14 3.2 The processing sub system ..............................................................................16 3.3 The marketing sub system ............................................................................... 17 3.4 Condition of support industries ..................................................................... 20 3.5 The Policy and Institutional Context ..............................................................21 3.6 The Environmental Context ........................................................................... 22 3.7 Financial Overlays ........................................................................................... 22 4. Key Constraints and Leverage Points .................................................................. 23 4.1 Key constraints at production, processing and marketing........................... 23 4.2 Strategic Choices and Key Recommendations.............................................. 24 Photos .................................................................. Error! Bookmark not defined. Annexures: Glimpses of FGDs and Household Interview...................................... 33
Acknowledgements
Present Sub sector study has involved visits to 5 districts, interaction with rural dairy farmers, commercial units, and suppliers of breed, feed, health services and marketing agencies. Being an intensive field work, study team was beaming with inquisitiveness and explorations. We acknowledge our gratitude to all respondents in the study, who had been kind to openly share their views and perceptions. We are especially thankful to the villagers of Maheshpur, Madguri, Karwan in Saguja and Bastar, who welcomed us and provided insights in the state of affair.
We are extremely grateful to Dr. R.K Singh, Director, CGSIRD, whose guidance and trust motivated us to take up extensive field investigations and analyse the facts in an action framework format. Perhaps making study come out of theoretical understanding level to an actionable intelligence level is what may distinguish this report from any other similar study in the state. If any such action emerges from present study, we dedicate it to the insights of Dr. R.K. Singh.
We would also like to extend our deep felt thanks to Mr. R.S Gautam and Mr. Srinubabu, who had worked incessantly to mange key contacts at various sites and logistics.
We feel indebted to Dr Sankar Dutta, Dean, The Livelihood School, as he has been there behind us providing always a better framework to look into things and brought in his passion for sub sector study.
Executive summary
The Dairy sub Sector in Chhattisgarh state is still in primal stage, though it has good number of cattle population. The rearing of cattle are mainly concentrated in central part of the state surrounding the capital city Raipur. In northern part of the state has significant number of cattle. It is observed that the rearing of livestock animals especially in villages has focus on draught power rather than milk. Smallholder milk productivity is abysmally low, and milk is not considered as major product. The cattle rearing system has been extensive grazing and low input cost based. The study of Dairy sub sector in Chhattisgarh highlighted following major trends/issues There exist commercial dairy in small pockets around Raipur and some major cities. These farms are mainly operated by migrated farmers from UP, Bihar and Jharkand. Demand of milk and milk products are highly skewed with urban centered consumers and local rural demand of milk is very low. The cooperative structure for procurement of milk by Raipur Milk Union (Sanchi brand) has very limited success. Only about 265 societies are active at present. Through out the state majority of the livestock rearers are marginal producers having 4-6 animals per households. Indigenous breeds are pretty common in the state. Though State has progressive breeding policy in place , has good networks of A.I services by Government and Non Government agencies, the successful adoption of A.I has been only in periphery of towns , where assured milk market has been available. It has been of special significance that breeding effort has not matched/ complemented well with input level interventions like green fodder production, concentrate feed supplementation and assured market. Efforts has been isolated service delivery rather than market led demand based model. Three marketing channels can be found in the state. They are1 o Raw milk direct from farmer to rural consumer (less than 5%) o Raw milk via intermediaries (Dhoodia / Chandi) to urban (70%) o Raw milk by dairy farms to consumers and commercial establishment like hotels (25%) Local milk vendors are the most dominant milk sale channels through out the state. The price offered by these local agents is around Rs 20 -25 per litre compared to Rs. 16-18 offered by milk cooperative society. These informal marketing agents have been operating efficiently and controlled more than 90 % of the milk trade in the state. They supply milk to households and hotels with the margin of Rs. 2 / liter over and above the collection rate. These informal milk traders are functioning at the radius of 25 KM from the city. The veterinary service in the state is found to be satisfactory.
1
The government initiatives for shifting urban dairy farmers through the scheme of Gopal Nagar is very interesting and has resulted in protecting urban livestock rearers. The backward linkages of the Dairy subsector such as availability of quality feeds, green fodder, AI services, extension services etc are not integrated at dairy producers level making present effort dissipated and unyielding. The learning on this front by stakeholders has been slow. Key Recommendations As per existing factor and demand condition of dairy, it is recommended that dairy development in the state should take a cluster approach with making 10 to 15 Kms radius of a town as milk shed area. A set of 1000 to 2000 families having basic dairy resources should be identified a cluster based approach in milk production enhancement should be undertaken. Present dispersed approach of dairy promotion has been not able to take advantages of resources and market. The identified cluster should take up an integrated effort to work on factor conditions like irrigation and fodder production and the whole dairy development process should be divided into phases starting from irrigation and fodder development. It is strongly recommended that rural and semi urban youth having entrepreneurship and dairy farm training at major commercial dairy farm in the state. The training should be imparted in collaboration with commercial farms with focus on practical knowledge and hands on understanding of business. The present dairy livestock health service provisions calls for Promotion of dairy managers/ livestock health workers on scale State development agencies should identify Breeding zone in the central region of state and special program for promoting it as breed development area to supply improved dairy cows/buffaloes to other area within state should be promoted. The present outside state purchase and price has been a detrimental factor in the growth of dairy sector in the state. Commercial dairy farm owners of the state should be involved in policy and action forum of dairy development in the state. Improved bull procurement from commercial farms in the state. Panchyat based bull breeding system with incentives based on crossbred produced is highly desirable. Livestock Insurance has received a very low penetration in the state including organised dairy farms. A central government program on breeding and improved breed livestock insurance is operational but it requires further impetus to work on the state of awareness and promotion. Gokulgram model seem useful provided some close monitoring is kept. Credit and Insurance in Gokulgram should be strengthened. Role of PRIs and suggested model for dairy based livelihood strengthening Panchayati Raj Institutions could play a vita role in input linkages like common land green fodder production, grazing land development and collective payment based storage of dry fodder and hay. VRTI (Vivekanand Research & Training Institute in Bhuj (Gujarat) has developed a model for community managed fee based fodder bank, which can be replicated by Panchayat in the state. Panchayat can prepare and recommend young youths and farmers from village, interested in dairy farming and can link with government programs and input services.
Study team recommends a decenralised milk chilling plant (ranging from 1000 to 5000 ltrs) in the radius of 25 Kms from the major towns. This should be placed on operational route basis and PRI based on business principles may take up role of its management through selecting and appointing an entrepreneur for this purpose. The milk fro a periphery of 5 to 10 Kms may be collected by such a center and payment made on weekly basis. This collective milk may be sold to Dairy cooperatives at a bulk rate and or can be sold to retail customers in urban dwellings by a SHG federation. The average cost of chilling and transportation (if 1000 ltr of milk is procured with seasonal fluctuation less than 30% over the year) will be around Rs 1.50 per liter per day. So a price margin of Rs 3 between procurement and selling can make such organizations work effectively. However some initial investment has to be mobilized as grant as the procurement of 1000 liter will take 6 months to 1 year time and till then break even will be difficult. We recommend to take this whole in three distinct but cohesive phases in the state Phase 1 (one year) Identification of potential milk cluster in radius of around 10 to 15 Km from the town Select target beneficiaries/producers and work on Irrigation sources, green fodder cultivation and improved dairy management Train rural youths on dairy farming and basic livestock health care Capacity building of farmer through exposure, training and video shows Extensive A.I with improved indigenous dairy breed and exotic breed with selected farmers as per state breeding policy Explore and establish input linkage providers Phase 2 (1 to 2 year) Establishment of bulk milk coolers (starting from 1000 ltr capacity) in the area and initiating procurement of milk Strengthen supply of fodder seeds, concentrate feeds, mineral mixture and awareness building on it Regular meeting of milk pourers on quality and milk procurement systems Building capacity of marketing and procurement agency Campaigning in the area for low cost quality milk production Phase 3 (2 to 5 years) Developing institutional capacity of milk production and procurement Networking and inter linking of such procurement centers for mutual learning and systems improvement Facilitating larger level role of community led programs implementation of for integrated benefited of member families Enhance quality of milk and reduce cost of milk production through adopting improved and efficient system Conclusion
The present Sub sector study has delved in to market segmentation of milk in the state and factors affecting dairy productivity. The present constraints and strength of business process at Input, procurement, processing and marketing were studied and dignosed. It is evident that milk market in Chhattisgarh has been concerntrated to pockets of uran area and demand is surpassing the supply. However the milk demands in rural areas and very small towns are not significant to promote decentralised dairy development. The constraints in the state had been on both fronts At input level itself starting from breed to green fodder and if this over taken, market if not linked with urban. Dairy development in the state needs to be cluster based, within vicinity of urban area and undertaken in phased manner. The role of commercial dairy farm, which is significant in share of milk production, needs to be more synergistic with government effort and a functional collaboration on this front is required. State also needs to identify breeding zone in central part and a special scheme of developing local elite cows and buffaloes to act as supply center for other part of the state is required. This could provide further impetus to dairy development in central region and can well supplement the adoption of improved practices. Study team concludes that state has an unique opportunity to work on demand based product (milk) in the state and this could help to generate millions of livelihood in the state on one hand and ensure quality and balanced nutritious food to the public of state on another.
1. Background
In India, the dairy sector is important for various reasons. Among these its complementarities with agriculture and to enrich the protein diet are significant. Beside these functions, it also play role in balancing the rural inequity. Dairying helps the rural poor in having additional regular income. In recent decades the dairy sector has emerged as an important source of rural employment and income in the country. However, these developments are not uniform across the nation. While southern and western India regions have shown tremendous growth in Dairy sector, the central region has been lagging behind. One such poor performing state is Chhattisgrh state. Chhattisgarh is one of the three new states added to the Indian Union in November 2000. The state is endowed with a large and diverse livestock population. Over 75 per cent of all species of livestock in the state is owned by the small holder group. Over 70 per cent of the rural households own livestock and earn supplementary incomes out of them, meager though it is. Livestock sector in Chhattisgarh is therefore extremely livelihood intensive. However, very low productivity and very large numbers are the hallmark of the livestock in Chhattisgarh. As Chhattisgarh State is predominantly agriculture based, the systematic approach for Dairy sector development could enhance the livelihood opportunities for the people. In this connection the Sub Sector study of Dairy in Chhattisgarh was undertaken by The Livelihood School through State Institute of Rural Development, under Backward Region Grant Fund. The main objective of the study is to map and analyse the process of production and to identify scope for interventions. 1.1
National context
The growth of the dairy sector in India during the last three decades has been impressive, at more than five percent per annum and the country has emerged as the largest producer of milk in the world. The following chart 1 shows the steady increase in milk production in the country over last then years. It is well acknowledged that suitable government polices and Operation Flood programe are the chief contributor for the success in the dairy sector in the country. The favorable finance flow under various welfare and development schemes to take up dairy enterprises by the poor rural families has created millions of livelihood across the country. The rapid urbanization in the country and overall economic development has resulted in growing demand for the milk and milk products in the country. The continuous technology development and extension services have added to the development of the dairy sector in the country.
The performance of Indian dairy sector over the last three decades (post-OF period) has been extremely impressive. The milk production in the country has more than trebled to over 80 million tons between 1970-71 and 2000-01 with an average increase of about 4.5 per cent per annum, which in comparison to worlds rate of about 1 per cent is much higher. During the period 2000 to 2006, the milk production increased by around 16% in India but Chhattisgarh was able to increase its milk production by less than 8% only.
Years
The country is now the largest milk producer in the world, with dairying providing an important livelihood support for the rural poor in India. The profitability of dairy enterprises, to a large extent, is dependent on the efficiency of the marketing network. However, market access for smallholder livestock producers remains a major constraint in many parts of India, especially in Chhattisgarh State.
which comprises of Sarguja, Koriya & Jashpur Districts. Bilaspur, Raipur, JanjgeerChampa, Raigarh, Rajnandgaon, Kawardha, Durg, Mahasamund, Dhamtari, Korba and parts of Kanker come under "Plains of Chhattisgarh". Out of 137.00 lakh hectares geographical area of Chhattisgarh, 43 per cent area comes under cultivation while 44 per cent is under forest cover. Almost 80 per cent of the population is dependent on agriculture and agriculture related occupations. Agriculture is still the backbone of states economy. Rice is the major crop of the state occupying 2/3rd of the total cropped area while the pulses, oil seed and horticulture occupied 17 per cent, 5 per cent and 2 per cent respectively. How ever the productivity of Rice per ha when compared to national average is 30 per cent less. Due to rain dependency of agriculture, the scope for the second crop post rainy season is severely limited in un irrigated areas. Agriculture is the major source of income for the rural house holds in Chhattisgarh and income from agriculture is supplemented by income from wage labour and income from livestock.
Chhattisgarh has a rich livestock wealth of 1.4 Goat, 20 core animals, as per the 2007 livestock census, of which the maximum of 65 per cent is the cattle Buffalo, 11 population followed by 20 per cent of goat population. Buffalo constitute 11 per cent of the Pig, 3 total while pigs and sheep are 3 and 2 per cent Cattle, 65 Sheep, 2 respectively of the total population. The animals in general are smaller in size and have poor production potential. The growth and reproductive efficiency is also poor. The state government has assigned high priority for promoting livestock production in its Vision 2010 document.
Estimates of Milk Production State wise
(million tonnes) State All India Gujarat Haryana Madhya Pradesh Uttar Pradesh Chhattisgarh 200001 80.607 5.312 4.85 4.761 13.857 0.777 200102 84.406 5.862 4.978 5.283 14.648 0.795 200203 86.159 6.089 5.124 5.343 15.288 0.804 200304 88.082 6.421 5.221 5.388 15.943 0.812 200405 92.484 6.745 5.222 5.506 16.512 0.831 200506 97.066 6.96 5.299 6.283 17.356 0.839
Source:http://www.nddb.org/statistics/milkproduction_states.html
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The per capita availability of milk is only 84g per day as against 224g per day as a national average. The total milk production of Chhattisgarh is only 0.55 million tonnes against 84 million tonnes milk production in India. Thus, the contribution of Chhattisgarh to the national milk production is only 0.65 per cent. Per capita availability of milk in selected states in India; 2000-01 to 2005-06
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Though the milk yield is still low compare to national level, the total milk production in the state is on increasing trend. The below chart 3 depicts that the total milk production in the state was 777 thousand tones in 2000-01 and has increased to 866 Thousand Tonnes in 2007-08. This clearly shows that there exist high potential in the state to harness the benefits from the Dairy sector, there by helping household improve their livelihoods.
01-02
02-03
03-04 Years
04-05
05-06
06-07
07-08
The milk yield in the state (cattle as well as of buffalo) is about half of the national average. Low yield is due to a lack of adoption of technology, feed scarcity and inadequate animal health services. For instance, only 3 per cent of the milk cows in the state belong to crossbreds, much less compared to the national average of 22 per cent. Similarly, the livestock units per veterinarian in the State are about 36000 as compared to the national average of about 8000. Nevertheless with appropriate technological, institutional and policy support Dairy sub sector has considerable potential for growth and thereby could be an important pathway for poverty reduction. Rapid economic growth as being witnessed in the State, is causing a shift in the food consumption basket in favour of dairy products, which offers considerable scope to raise opportunity in Dairy sub sector.
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Compare and contrast the existing process of production with bigger players in the subsector to identify scope for interventions. Identify Best Practices, Quality Control Protocols, and Certification Processes. Conduct inflow-outflow analysis and assess the potential for marketing of products. Identify domestic and international trends, issues and opportunities related to the sub sectors. Propose a marketing strategy for a five year period supplemented by market Information Identify legal hurdles, if any that inhibit effective performance of the subsector. Suggest models of Public, Private and community partnership that can be replicated in various regions and identify role of community, panchayat and private entrepreneurs therein and also suggest necessary changes in policy & legal framework, if any. Identify the extent of market led, state led and civil society led coordination failures in each subsector. Suggest intervention strategy.
2.2 Methodology
Dairy Subsector study was carried out using primary data / information. The representative sample was selected. The sample districts include representation from three agro climatic zones of Chhattisgarh. The districts selected were Surguja in north and Bastar in the south Chhattisgarh. Raipur and Durg in central Chhattisgarh and Rajnandgaon in west Chhattisgarh. The study tools included Key Informant Interviews (KII), House hold interviews, using structured and semi structured questionnaires. Focused Group Discussion (FGD) and Participatory Learning and Actions (PLA) with various players in the value chain and critical observations (tools included as Annexure). The interviewees and groups were selected using random stratified sampling method. To minimize the distortions in interpretation and analysis use of audio visual aids were made. While conducting PRA with village community, regarding the risks associated with upgrading the scale of goat rearing, visual placards were used, based on which the groups ranked the associated and perceived risks. Also all the interviews were recorded using sound recorder and the process documented using video recorders.
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Retailers and The consumers The following section explains role and status of the above stakeholders in process production, processing, marketing and other support systems. Using this information, at the end a sub sector map is constructed for easy analysis and to find out leverage points for appropriate decision making.
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genetic potential of the animal. Moreover, it is of temporary nature and does not pass on to the progeny. Sanitary housing, periodical de-worming, regular check up for any disease would help raise the calf to sound body weight at maturity for giving optimum productivity. Animals should be managed in a way to minimize any kind of stress (climatic, nutritional, disease, parasitic etc.) to enable them exhibit all time optimum productive performance. There is a great scope for the improvement in the genetic potential of the nondescript animals by proper breeding methods. The improvement brought about by this method will be of permanent nature and is passed on to the progeny generation also. Skill & Technology sub system Low awareness and capacity in Rural farmers Has high technology variation Abbis dairy has started automated milk parlour whereas Tribes did not milk cow Training class room centric making it less useful for target clients
The demand is more for fresh milk than of the processed milk in the state. Hence, the traditional milk supply is predominantly seen in the state. The fresh milk collected by the milk traders (Dhoodiya) are being supplied to hotels and households in urban area with out any processing. Demands of dairy products are increasing day by day hence there is urgent need for increasing collection of milk and running all the existing plants with their full efficiency.
The major observation on this front are Very low processing Liquid fresh milk is consumer preference Traditional processing in sweets and milk beverages preferred Small volume makes processing economically unviable
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establishments such as hotels in urban areas are the major consumers of the milk accounting for about 45 per cent of the milk, while urban and rural households consumes about 35 percent and 20 percent milk approximately. Major observations on marketing are Demand surpasses production Milk consumption is urban centric phenomenon Liquid milk market is over 85% in the business volume Traditional channel of milkmen and direct selling is still predominant Fresh milk is the preference for consumer
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Traders
Wholesaling
Transporting
Processing
Collection / Bulking
Milk Production
Small Holders(80%))
Input Supplier
Private Traders
Veterinary Department
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At present, unorganized milk traders put a stiff competition to the organized milk sector. Therefore, organized milk marketing has a dual task to attract more and more producersellers to its fold by offering good price, and to help producers to produce more milk. Cooperatives provide their members bargaining power, fair deal, and assistance in improving the productivity of the dairy business. But, the co-operatives have to face some problems also like low literacy of member-farmers, lack of their ownership over productive assets, lack of credit/finance, lack of training facilities, etc. As far as dairy industry is concerned, forecasting of demand, procurement of raw milk, and transportation of processed milk are the vital components of supply chain management. On this front, Indian co-operatives are little susceptible and lag behind the multinational corporations and other private firms. Non-observance of timeliness, inefficient distribution of milk, frequent break-downs of milk vans, delays in loading and unloading at depots lead to disturbed supply of milk and its products.
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Emphasis needs be given on enrichment of straw/stover, preparation of hay/silage to overcome fodder scarcities during the lean season, conversion of fodder into feed block to facilitate transport of fodder from surplus areas, establishment of fodder banks and promotion of chaff cutters. The productivity as well as carrying capacity of public and forestland are decreasing due to improper management of common property resources and lack of coordination between the different agencies involved. For sustainable and economic livestock production, this problem needs to be addressed through scientific utilisation of traditional pastures and integration with the Watershed Development Programme, especially for silvi-pastoral development. For enhancement of grass production, measures should be taken to bring larger areas under joint forest management and treatment of wastelands and areas under problem soils. Increasing areas under cultivated fodder production needs to be addressed with special emphasis. Efforts should be made to increase productivity through promotion of intensive fodder production technologies, quality fodder seed production by specialised agencies and use of wasteland for tree and bush based fodder production. 3.4.3 Animal Feed Oil cakes, maize and cereal by-products are important ingredients of animal feeds. Coarse grains and cottonseed are traditionally used as cattle feed. Measures should be taken to fill up the deficit in the requirement of feeds in quantitative and qualitative terms. At present, a very small portion of grains produced in the country is utilised for livestock and poultry feeding. Rain-fed and arid zones present enormous prospects for production of feed grains. Steps will be taken to develop specifications for many agro by-products like mango seed kernel, mahua cake, neem cake, soya pulp, whey powder etc. so that these could be utilised for feeding livestock. Quality control of animal feed will be given importance. The existing feed availability through wholesalers and retailers needs to be strengthened.
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The Gopal Nagar scheme was initiated about four years back aiming to shift urban dairy farming activities to a new area exclusively built to rear the animals. This scheme has been in operation in all the major cities. Under this scheme, separate land is identified on outskirt of the city, 5-10 KM from the city limit, and crating infrastructure such as road, water, electricity, fodder and feed shops, veterinary hospitals etc. The land of different size was allotted to all the livestock rearing families of the city area on lease basis. With this farmers build the houses for rearing of animals and shift their animals to this new area. It is observed that, farmers have appreciated very much on Gopal Nagar Schemes and have shifted their animals to the new areas. These new exclusive area for rearing of dairy animals has opened scope for commercial dairy farming by interested individuals. In Durg Gopal Nagar area, few farmers have started mini dairy plant by housing 50-100 animals. Such Gopal Nagar scheme has impacted very positively in protecting the livelihoods of the dairy depending families of urban areas. However, the schemes success is not uniform through out the state.
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Table : Dairy Sub Sector Players, Their Role and Financial Interface Sub sector Role and Present Status Financial interface players Feed and Production of feed and 10-20 percent profit margin is ideal for fodder making accessible to the survival of business. suppliers farmers. Presently their activity in the state is in downward trend owing to decreased demand. However, their role is very much crucial for vibrancy of dairy subsector. Milk Producer Livestock rearing and As most of the family members and production of milk including in the rearing activity, their margin is difficult to assess. However, in terms of price of milk at the final consumers, the producers proportion is about 60-70 per cent which is a good enough. However, as feed and fodder constraints, their net profit margin is on reducing trend. Local Milk Collection of milk from In the existing practice, their margin is trader producer families and selling Rs. 2 per litre. (Dhoodiya) to households / hotels. Some times producer themselves assumes this role Wholesalers / Processed milk from Dairy Their numbers are very few and are Retailers Cooperative / private concentrating in Raipur city. They company are distributed margin is around 5-10 percent. through wholesalers and retailers Transporters Mainly for Cooperatives and They are engaged by dairy cooperative private dairy company and private companies on contract basis and account to Rs. 1-2 Rs per litre.
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Processing Aggregation is difficult due to low quantity and disperse production base Low consciousness on quality aspects of milk both by producer and traders. Marketing Skewed consumer base to urban areas High dependence on traditional traders
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(Gujarat) has developed a model for community managed fee based fodder bank, which can be replicated by Panchayat in the state. Panchayat can prepare and recommend young youths and farmers from village, interested in dairy farming and can link with government programs and input services. Study team recommends a decenralised milk chilling plant (ranging from 1000 to 5000 ltrs) in the radius of 25 Kms from the major towns. This should be placed on operational route basis and PRI based on business principles may take up role of its management through selecting and appointing an entrepreneur for this purpose. The milk fro a periphery of 5 to 10 Kms may be collected by such a center and payment made on weekly basis. This collective milk may be sold to Dairy cooperatives at a bulk rate and or can be sold to retail customers in urban dwellings by a SHG federation. The average cost of chilling and transportation (if 1000 ltr of milk is procured with seasonal fluctuation less than 30% over the year) will be Rural BMC at Dholpur in Rajasthan around Rs 1.50 per liter per day. So a price margin of Rs 3 between procurement and selling can make such organizations work effectively. However some initial investment has to be mobilized as grant as the procurement of 1000 liter will take 6 months to 1 year time and till then break even will be difficult. We recommend to take this whole in three distinct but cohesive phases in the state Phase 1 (one year) Identification of potential milk cluster in radius of around 10 to 15 Km from the town Select target beneficiaries/producers and work on Irrigation sources, green fodder cultivation and improved dairy management Train rural youths on dairy farming and basic livestock health care Capacity building of farmer through exposure, training and video shows Extensive A.I with improved indigenous dairy breed and exotic breed with selected farmers as per state breeding policy Explore and establish input linkage providers Phase 2 (1 to 2 year) Establishment of bulk milk coolers (starting from 1000 ltr capacity) in the area and initiating procurement of milk Strengthen supply of fodder seeds, concentrate feeds, mineral mixture and awareness building on it Regular meeting of milk pourers on quality and milk procurement systems Building capacity of marketing and procurement agency Campaigning in the area for low cost quality milk production Phase 3 (2 to 5 years) Developing institutional capacity of milk production and procurement
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Networking and inter linking of such procurement centers for mutual learning and systems improvement Facilitating larger level role of community led programs implementation of for integrated benefited of member families Enhance quality of milk and reduce cost of milk production through adopting improved and efficient system Conclusion The present Sub sector study has delved in to market segmentation of milk in the state and factors affecting dairy productivity. The present constraints and strength of business process at Input, procurement, processing and marketing were studied and dignosed. It is evident that milk market in Chhattisgarh has been concerntrated to pockets of uran area and demand is surpassing the supply. However the milk demands in rural areas and very small towns are not significant to promote decentralised dairy development. The constraints in the state had been on both fronts At input level itself starting from breed to green fodder and if this over taken, market if not linked with urban. Dairy development in the state needs to be cluster based, within vicinity of urban area and undertaken in phased manner. The role of commercial dairy farm, which is significant in share of milk production, needs to be more synergistic with government effort and a functional collaboration on this front is required. State also needs to identify breeding zone in central part and a special scheme of developing local elite cows and buffaloes to act as supply center for other part of the state is required. This could provide further impetus to dairy development in central region and can well supplement the adoption of improved practices. Study team concludes that state has an unique opportunity to work on demand based product (milk) in the state and this could help to generate millions of livelihood in the state on one hand and ensure quality and balanced nutritious food to the public of state on another.
26
Gopal Nagar
FGD at Ambikapur
27
Dairy plant
Cattle Shed
28
29
30
31
AI Service by Department
32
33
50% of the cattle population is cross breed and 50% are desi (local breed. Breeding through AI, the AVFO comes for the AI when called. Cross breed cows yield 4-5 Ltr of milk at a time. Cattle fed with animal feed, wheat husks, cooked dalia. If fed properly would cost Rs.50.Grazin land very limited, are stall fed. Green fodder cultivation very less.Not aware of the use of mineral mixture. Straw chopping machine has a commercial potential. Milk rate: Rs. 20/Ltr in village. Calves sold locally in Rs.1500-2500 Female calve (jersey) sold in Rs. 3000- Rs. 4000. Ploughing done mainly with Oxens. There are more than 20 tractors in the village, but are not suitable for ploughing in rainy season. Vaccination, De worming done in cattle. Vet hospital 1 km (karwan sub centre) F1 of Jersey is profitable.
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4) Household Interviews
1) Village : Kugda Basti, Raipur District. Farmer Name: Pappu Yadav Farmer profile: Rears about 20 cattles (all are non descript type) and about 30 goats. Key points emerging out of interview: Aware about loan facilities for purchase of animals from banks, but not availed so far. Aware about animal insurance but not taken. Milk yield is very less and sufficient to meet the local demand in the village itself. No need to find outside market. Price for milk in the village is Rs. 12 to 15 per litter for both cow and buffalow milk. There is no price difference between these two. There is outside milkman or Chandi to buy the milk in the village. Dung will be used to make dung cake and also used as compost for agriculture field. These dung cake will be come to use in the rainy season for two months. There is no problem of water availability in the village even in summer seasons. There are tanks near village. Dry fodder i.e paddy straw is the only feed available to the animal. Extension service regarding animal husbandry is very weak in the village. No veterinary doctors visit the villages to give awareness to the farmers. Women are involving more in activities related to animal husbandry. Farmer Name: Satpal Chowdary
Farmer Profile: Migrated from UP settled in Bilai. Main occupation is rearing cows. Has about 40 cross breed animals. Availed the space at Gokul Nagar and shifted his animal rearing business from Bilai town to Gokul Nagar. Key points emerging out of interview: The Gokul Nagar has 164 plots developed by corporation for shifting animal husbandry activity from town. The plot size is based on number of animals. For a household haven 100 animals 100 ft X60ft space was allotted. For 70 animals 80X60 sq ft, for 50 animals 60X60 sq.ft, 30-40 animals 60X50 sq.ft. 15-20 animals 60X40 sq.ft, 10-15 animal 60X30 sq.ft, < 10 animals 50X30 sq. ft plots were allotted. The plots were allotted on lease basis for 15 years and the rate was Rs. 35 / sq. ft. The scheme was started in 2005 and took abot four years to complete. All infrastructures such as roads, drains, water facilities, veterinary hospitals, feed and fodder shop, and electricity are provided. For fodders 10 shops are built. The houses were constructed by households themselves. Houses should be built only for animals and for staying of 1-2 care takers. 35
The scheme has not supported for purchase of animals. Majority are rearing Murra buffalow and Jersey cows. Cow gives 15-20 litre milk and 10-12 lt by buffallow. Cost of rearing is around Rs 70/animal/day. Feed and fodder Rs. 60 and Rs 10 for labour charges. Feeds from Batapara near Raipur and the cost is Rs. 12/kg. Milk rate Rs. 16-17 per litre and for buffallow milk up to Rs. 25 and sells to hotels. Sanchi dairy offers less price. Their price is Rs 18-19 per litre. They have Bilai Urban Dhood cooperative society of 668 members. It is a private society and society negotiated to reduce the plot rate from Rs. 60 /sq ft to Rs. 35/Sq ft. Green fodder is not available. They feed only dry fodder and concentrates. Veterinary service is good in the area. There exist AI service with Murra and fee is Rs. 5 only. Demand for milk is very good in the area especially from Hotels, sweet shops. Some hotels purchase five to ten tons of milk every day. Government should provide loan facilities to purchase animals. As they do not have any agriculture land no bank is willing to lend any loan to them. They are aware about animal insurance scheme. Dairy business is facing lots of problems. Milk price is not in tune with other input costs. As a result it is not paying preposition right now. The milk price should be increased to Rs. 40 per litre to meet all the costs. Rs. 300 / tractor load is the price for cow dung. Gobar gas plant is installed in Gokul Nagar to provide lighting and gobar gas to all plots. Yet to function.
Brief profile: Provision shop owner who also trades cattle feed. Five years back he had about 70 dairy animals but now rears only 5-7 animals. He has given up this dairy business owing to problems like water, green fodder and land availability in the city. Just five years back the dairy business was one of the main activities in Damda village and on an average people used to rear 30 animals, all are of local breeds. But now a days people have given up this business mainly due to non remunerative price to milk on one hand and increased cost of inputs. Though the local demand for milk is good, the milk price is not remunerative now a days. To protect the livelihoods of the city based dairy farmers, Chattisgarh state has implemented Gokut Nagar scheme and provided all needed facilities like water, space, gobar management, feed and fodder availability, veterinary service etc at one place. This scheme is implemented in all 36
major cities, mainly in district head quarters, in about 100-200 acres of land outside the city. This has reduced the hygienic problem in the city. This scheme is a very good initiative by the government. He is trading all kinds of feeds like wheet feed, peas feed etc and sells about 1.5 quintals per day. The selling price of the feed ranges from Rs. 10 to 12 per kg. The farmers feed about 4 kg sof feed (2 kgs each in morning and evening) and spends about Rs 50 per animal per day on feed. Over all cost of animal rearing is Rs 100 per day per animal and can expect Rs 120-140 income during milking period. He purchases the feed from Durg from a wholesale trader. The demand for feed is gradually decreasing as the cattle population in the area is slowly reducing.
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