5. WAYANAD DISTRICT Contents

Contents

Executive Summary ...... 143 5.1 General Features ...... 146 5.2 Trend in Cattle Population ...... 147 5.3 Trend in Milk Production from Bovines ...... 148 5.4 Milk Chilling Facilities in Wayanad District ...... 148 5.5 Milk Processing ...... 149 5.6 Milk Marketing ...... 153 5.7 Milk Procurement ...... 165 5.8 Cattle Shed and Farm Machineries ...... 172 5.9 Cattle Induction ...... 174 5.10 Establishment of Laboratories ...... 176 5.11 Clean Milk Production ...... 176 5.12 Technical Input Services (TIS) ...... 178 5.13 Information and Communication Technology Networking ...... 179 5.14 Manpower Development ...... 181 5.15 Working Capital – Wayand District ...... 184

Wayanad District

142 Executive Summary

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

143 Wayanad District

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

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

The MRCMPU needs to network activity of MRCMPU. Several the various units and DCS for programs have been running for effective information sharing and the last few years. It is suggested communication. The suggested to scale down certain programs. system is a client server The scaled down programs would architecture network with six cost Rs 33.45 lakh. centers one in each district The Union is often on loan either (Palakkad, Malappuram, Kozhikode, to pay the milk price or to meet the Wayanad, Kannur, Kasaragod) and daily expense. In order to avoid a central server system linking all loans/OD an amount of Rs 443.7 the six centers. The data and lakh is suggested as Working information will be made available Capital. to all the districts and DCS. The estimated cost is Rs 149.40 lakh. The suggested programs for Wayanad shall be summed up as The HRD through training and follows. skill development is a routine

Amount Component (Rs in Lakh) Milk processing and packaging 55.00 Milk marketing 406.95 Milk procurement 144.73 Cattle shed and farm machineries 79.50 Cattle induction 92.55 Constructing laboratories 54.00 CMP kits to farmers 17.25 Technical input services 46.00 Information and communication technology 149.40 Human resource development 33.45 Working capital 443.70 Total 1522.53

145 Wayanad District

5.1 General Features provider. About 83 per cent of the Wayanad district formed on 1st farmers are marginal, 11 per cent November 1980 is in the mountain small, 5 per cent semi medium plateau of Western Ghats in and the rest 1 per cent medium Kerala. It is located in the Nilgiris and large. The paddy cultivation in biosphere adjoining Tamil Nadu the district has declined over the and Karnataka states at an years and today much of the altitude of 700-2100 above MSL. cultivable dry land is under high The district is surrounded on the value plantation crops; coffee and east by Nilgiris and Mysore pepper. Dairy farming is germane districts of Tamil Nadu and to the farming system in Wayanad Karnataka respectively, on the complementing the crop north by Coorg district of production and subsisting on the Karnataka, on the south by natural grass, weeds, residues and Malappuram and on the west by bye-products of crop production Kozhikode and Kannur districts of and in turn enriching the soil Kerala. Wayanad is the smallest through manure and water district in the state with an area of retention. Wayanad is one of the 2131 sq.km., 5.5 per cent of the very few districts in the state with total geographical area of the state. some special attributes for dairy The district is subdivided into production. three Taluks/blocks, has 25 The Department of Animal Panchayats, 49 revenue Villages Husbandry provides the animal and one Municipality. The district health and breeding services. The inhabits 8.17 lakh people with a department has one District perfectly well balanced sex ratio of Veterinary Center, two Veterinary 1:1 (2011 census). The density of Poly Clinics, one Regional Artificial population 384/sq.km., against Insemination Center, six the state average of 819/sq.km. is Veterinary Hospitals, seventeen one of the lowest. Agriculture is Veterinary Dispensaries and the major contributor to the seventy four ICDP Sub Centers district economy and employment apart from the District Office

146 Wayanad District functioning at Kalpetta. The DDD 1996 and 2007 and then made a provides the dairy extension and marginal gain from 2007 to 2012. statutory support like auditing of As is evident from the fig. 5.1 both DCS. The department has the the total and in-milk cows showed district office at Kalpetta, three similar trend during this period. dairy extension service units and The total cattle declined by 37.2 one quality control unit. The per cent and cows in milk by 31 MRCMPU has one Dairy Plant of per cent. The in milk buffalo had 50,000 LPD and one P&I unit at mixed fortune. The numbers Kalpetta and one MCP at sharply declined from 2252 to 248 Mananthavady. The Veterinary between 1996 and 2003 and there college at Pookkott, apart from after marginally gained between Veterinary education, also provides 2003 and 2012. Although the animal health and extension accuracy of the data on cattle support. numbers is questionable, it is certain that many dairy farmers in 5.2 Trend in Cattle Population Wayanad district dropped out of The official statistics show that the dairying after 1996 due to cattle population in Wayanad economic and other factors. district declined sharply between

Fig 5.1 Cattle population Wayanad District (source Cattle Census AHD GOK) 140000 120000 100000 80000 60000 Numbers 40000 20000 0 1996 2003 2007 2012 Total Cattle 122303 103694 65459 76777 Cows in milk 29453 30659 20289 33100 Buffalo in milk 2252 248 463 1900

147 Wayanad District

5.3 Trend in Milk Production from the MCP at Mananthavadi from Bovines and the Wayanad Dairy at Kalpetta According to the ISS estimates (Fig. provide the milk chilling facility in 5.2) the annual milk production in the district. The position of milk Wayanad district increased from chilling facility in Wayanad during 82.74 thousand MT in 1997-98 to March 2014 is shown as table 5.1. 114.25 thousand MT in 2011-12 in Since most of the milk collected spite of an immense fall in the total from the BMC’s in the cattle population. Although the Mananthavadi area is being accuracy of the data is questionable, transferred to Kannur dairy, the we have no other option but to Manathavadi chilling station is accept the same because no other now functioning as a pooling authentic data exists. station for the chilled milk from

the neighboring BMCs in order to 5.4 Milk Chilling Facilities in reduce the transportation cost and Wayanad District other over heads. Wayanad is the The BMCs installed in various only district among all the districts DCSs of Wayanad district, apart

Fig 5.2 Milk Production from Bovines in Wayanad district ( s our ce ISS AHD GOK) 120

100

60 M ilk '000MT 40

0 97-98 2001-02 2004-05 2008-09 2011-12 82.74 92.36 71.02 101.43 114.25

148 Wayanad District in Malabar, collecting chilled milk capacity of 50,000 LPD. This dairy exclusively through BMCs. Also is located at Chuzhali, about 3 Km there are only a few cluster DCSs away from Kalpetta town. The in comparison to other districts. procurement area of the Dairy is As there is unused installed Wayanad district. The average capacity among BMCs in Wayanad milk procurement in 2013-14 was district, the addition of chilling 1,20,900 LPD, 242 per cent of the capacity during the current phase installed capacity. Out of the of NPDD is not recommended. 1,20,900 litre of procured milk in Wayanad Dairy, 1,20,000 litre,

almost 100 per cent was collected 5.5 Milk Processing through BMCs in chilled form. 5.5.1 Processing Capacity and Capacity Utilization The major products of Wayanad Wayanad is one of the frontline Dairy are liquid milk (three dairy districts in the state. The variants), curd, ghee and butter. surplus milk from the district is processed in Wayanad Dairy and 5.5.2 Milk Processing sold in Wayanad, Kannur, Infrastructure – Wayanad Kozhikode and Malappuram Dairy districts. The Dairy started AS stated above the Wayanad functioning in April 2009 with a dairy is one of the show pieces of

Table 5.1 Milk Chilling Facility in Wayanad District March 2014 Sl. Description Value No. 1 No. of BMCs commissioned up to March 2014 45 2 No. of DCS in which BMCs are positioned (BMC DCS) 32 3 No. of cluster DCS attached to BMCs 14 4 Total installed capacity of BMCs ltr. 1, 81, 000 5 Av. milk collected through BMC 2013-14 LPD 1, 07, 500 6 % capacity utilization 59 7 Av. MBRT of BMC collected milk - Minutes 176 8 Av. SPC of BMC collected milk – CFU per ml 302813 9 Av. Coliforms of BMC collected milk – CFU per ml 3100 10 No. of milk chilling plants (Mananthavadi) 1

149 Wayanad District

Table 5.2 Details of Investments in Wayanad Dairy after Commissioning

Sl. Amount Scheme Major Additions No. (Rs in Lakh)

1 IDDP I & II 167.83 Production and service block expansion 2 RSVY 738.139 Wayanad dairy expansion + butter project

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

5.3.

150 Wayanad District

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

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

Table 5.4 Wayanad Dairy Existing Facilities and Equipments

Sl. Facility/Equipment Specification Quantity No. 1 Production Block (Carpet Area) 1.1 Service block 100 1 1.2 General go-down (including SMP stores) 160 1 1.3 Milk/Curd cold storage 200 1 1.4 Butter deep freeze 0 1 1.5 Administration block (Total carpet area) 120 1 1.6 Workers amenities block 100 1 1.7 Tray washing block 160 1 1.8 Effluent treatment plant 600 1 2 Reception Capacity Quantity 2.1 Can roller conveyor 600 cans/hr 1 2.2 Can scrubber (SS 304) 500/hr 2 2.3 Can steaming block Single can 1

151 Wayanad District

Sl. Facility/Equipment Specification Quantity No. 3 Processing/Storage Equipment Capacity Quantity 3.1 Milk chillers 20 KLPH 1 3.2 Tri-purpose centrifuge 10 KLPH 1 3.3 Milk pump 10 KLPH 4 3.4 Un-insulated milk tank 5 KLPH 1 3.5 Horizontal milk storage tank 15 KLPH 3 3.6 Vertical milk storage tank 10 KLPH 1 3.7 CIP system- Double circuit 20 KLPH 1 3.8 Pasteurizer 10 KLPH 1 3.9 Milk silo 60 KL 1 4 Fat Handling Capacity Quantity 4.1 Sour milk separator 500 LPH 1 4.2 Cream storage tank 2000 LTR 3 4.3 Cream pump 5000 LPH 1 4.4 Ghee boiler 2000 LTR 1 4.5 Ghee settling tank 3000 LTR 3 4.6 Ghee storage tank 3000 LTR 3 4.7 Ghee pump 3000 LPH 1 4.8 Ghee clarifier 2000 LPH 1 4.9 Cream transfer tank 1000 LTR 2 5 Recombination Capacity Quantity 5.1 Homogeniser 10 KLPH 1 6 Milk Marketing 6.1 Pouch filling machine dhg. mechanical 5000 PPH 8 6.2 Pouch filling machine auto sh. mechanical 2500 PPH 1 6.3 Milk pumps 10000 LPH 4 6.4 Date coding device for pouch filling machines 60 IMP/Mnt 10 7 Service Equipment Capacity Quantity 7.1 Refrigeration compressors (Make/Model/Type/Cap.) 20 TR 3 7.2 Ice bank tank 100 KL 1 8 Steam Raising Plant Capacity Quantity 8.1 Boiler (Oil/Coal) 1 MT 1 9 Compressed Air System Capacity Quantity 9.1 Air compressors 50 CFM 2 9.2 Industrial electrical 9.3 DG set 250 KVA 2 9.4 Transformer 315 KVA 1

152 Wayanad District

Table 5.5 Additional Equipments Suggested for Wayanad Dairy under NPDD (2014-17) Total Sl. No. of Unit Equipments Specification Cost (Rs No. Units Cost (Rs) in Lakh) 1 Milk pump 10 KLPH 4 50000 2.00 2 SS pipes and fittings Lot 1 500000 5.00 3 Cream pumps 5 KL 1 300000 3.00 4 Pouch filling machines 5000 PPH 1 1000000 10.00 5 Deep freezer room 8 TR 1 3500000 35.00 Total 55.00

5.6 Milk Marketing production and the local market being limited, depends on the 5.6.1 Introduction neighboring districts to sell milk. Milk marketing is one of the major The Dairy have three depots functions of MRCMPU. This (refrigerated Reefers) as shown chapter provides an overview of below. the organization of marketing activities of MRCMPU in Wayanad 1. Koothuparamb in Kannur district, the infrastructure District available, the sales achievements 2. Ulliyeri in Kozhikode District of liquid milk and milk products 3. Kottackal in Malappuram during 2013-14, and the key District issues, problems and Each depot has a refrigerated recommendations to address reefer managed by a Depot them. Manager and assisted by two field staff. The depot receives packed 5.6.2 Organization of Marketing milk from Wayanad dairy in bulk The milk marketing in Wayanad vehicles capable of transporting district is looked after by the 12000 liter in one trip. The depots marketing wing in Wayanad dairy operate supply routes using headed by an Asst Manager smaller vehicles to link the sales (Marketing). Wayanad district outlets. This calls for additional being perpetually surplus in milk effort and extra expense, but is 153 Wayanad District rewarding. The depot-wise sales awareness build up. To this end, figures are shown in table 5.6. several programs were carried out. The amount spent on milk The Wayanad district faces marketing in Wayanad on these constant threat of influx of milk programs can be seen in table 5.6. from the neighboring states of Karnataka and Tamil Nadu where The IDDP phase II is continuing the procurement and selling prices and will be completed only in of milk are lower. In addition, 2015-16. several DCSs in the district make direct milk marketing locally. 5.6.3 Supply Chain Hence the marketing of milk from The MRCMPU has more or less Wayanad district demands extra similar supply chain in all the care and attention. districts. The milk and the milk products reach the consumers Among other factors that would from the processing units through help successful milk marketing are the retailers designated as dealers. the availability of adequate The liquid milk is directly supplied marketing personnel, from the Dairy to the dealers and infrastructure, advertisement and the products through the publicity. Earlier, the CSS wholesalers. At the close of March schemes IDDP and SIQCMP 2014, there were 1517 retail provided financial support for both outlets and 21 wholesalers for milk infra structure creation and Products and one distributor for consumer canvassing through milk in Wayanad district. A well

Table 5.6 Milk Marketing Activities Carried Out in Wayanad District under CSS

Sl. Amount spent Scheme Period Major Physical Sectors No. (Rs in Lakh) Puff boxes, outlet Phase 1 IDDP 71.08 renovation, freezers, cold I &II storage at towns. Strengthening of 2 SIQ CMP Phase II 43 marketing infrastructure

154 Wayanad District

developed intending and is much smaller than the off take distribution system exist. The by the Depots (table 5.7). The liquid milk and the products are Dairy sends processed milk to sold to the dealers on advance Koothuparamba depot in Kannur payment. Credit facilities were district, Ulliyery depot in extended to the dealers on a Kozhikode District and Nilambur limited scale. The details of milk and Kottakkal depots in and milk products sold during Malappuram district in large 2013-14 are shown in table 5.7. trucks. As mentioned in the forgoing paragraphs, the Depots The volume of milk and milk organize re-distribution. products sold in Wayanad district

Table 5.7 Milk and Milk Products Sold from Wayanad Dairy

Sl. Dairy Total Koothu- Item Wayanad Kottakkal Ulliyeri No. Average paramba 1 Milk (LPD) 78378 8327 22636 29265 18151 2 Curd (LPD) 15501 1802 5628 2988 5082 3 Cup curd (Kg) Month 694 75 479 60 80 4 B. milk (LPD) 1559 219 577 472 290 5 Ghee (Kg) Month 28728 20510 1093 2959 4166 6 Peda (Kg) Month 2458 438 831 636 554 7 Milma plus (Bottles)/Month 6888 1130 2901 766 2092 8 Ice cream (LTRS) Month 10001 2552 2685 2388 2376 9 Butter (KG) Month 2416 836 898 408 274 10 Water (Bottles) Month 3010 1116 537 592 766 11 Sip up (LTRS) Month 2305 973 347 435 550 12 Chocolate (KG) Month 1406 438 305 339 324 13 Dairy whitener (KG) Month 504 290 178 8 28 14 Mango drink (ltr.) Month 3308 1112 818 635 743 15 Palada mix (Kg) Month 367 70 82 32 184 16 Paneer (KG) Month 113 58 22 12 20 17 Gulab jamun tub (Kg) Month 51 5 23 8 15 18 Cream (Month) 6429 6429 0 0 0

155 Wayanad District

5.6.4 Market Size and Market folds more than the urban market Share of MRCMPU in Wayanad district. Market size is the measurement of Yet another way of understanding the total volume of a gien market. the market is by the end user Market size calculated on a purchase method. The latest standard practice, competitive Census (2011) shows the following. sales approach (bottom up approach), shows that the market Urban population Wayanad district - 31580 for liquid milk in 2013-14 period was 13,000 LPD (Milma plus the Rural population - 785840 competitors). This indeed is a very The HH survey conducted as a conservative figure and pertains part of this study shows that 88 mostly to the urban market. Added per cent of the urban population to this is the rural consumption. and 78 per cent of the rural With the sharp fall in cattle population in Wayanad consume numbers and cattle holdings in milk daily. The average per capita rural areas, the rural market for consumption in rural areas is 110 milk is fast expanding. The market ml and that in urban area is 120 size in rural areas will be several ml. The survey shows that nearly

156 Wayanad District

50 per cent households in the The milk parlors are positioned in rural areas own cows and they do strategic positions to attract more not buy any milk especially if they consumers to Milma products. have a lactating cow in the house. Apart from selling the Milma Hence the market size calculated products they also act as a media is shown as table 5.8. to improve the visibility of milk and milk products. The Milma The MRCMPU marketed milk at Shoppe in towns can be the rate of 8327 LPD. This works considered as a bigger version of out to 22 per cent of the market milk parlors to increase the size which indeed is low. Hence the supports under the NPDD visibility of the products and to should all be geared up to improve increase the sales. the market coverage. Among the various marketing infrastructure provided under the 5.6.5 Milk Marketing CSS, the introduction of PUF Infrastructure – Current insulated vehicles in milk Status distribution routes and PUF boxes The table 5.9 shows the facilities in the retail outlets are worth available in Wayanad district for mentioning. With the addition of market promotion.

Table 5.8 Calculated Market Share in Wayanad District 2013-14 Sl. Particulars Rural Urban Total No. 1 Population Wayanad district 785840 31580 817420 2 Cattle holdings % 50 0 50 3 Potential consumers (1/0.5) 392920 31580 424500 4 Actual consumers as per HH survey (%) 78 88 5 Actual consumers (3x4/100) 306478 27790 334268 6 Per capita consumption HH survey 110 120 7 Household demand LPD (5 x 6) 33713 3335 37047 8 Inst Demand (20% of urban demand) 0 667 667 9 Total demand (7 + 8) 33713 4002 37714 10 Milma supply 8327 11 Market share % 22

157 Wayanad District

Table 5.9 Existing Market Promotion Amenities in Wayanad as on 31-3-2014 Sl. Facility/Accessories Quantity No. 1 Wholesalers for milk (No.) Nil 2 Wholesalers for product (No.) 21 3 Distributors for milk (No.) 1 4 Retail outlets milk and products (No.) 1517 5 Milk parlors (No.) 2 6 Milma shoppe (No.) 1 7 % milk routes using PUF vehicles for milk distribution to retail outlets 100 8 PUF box 50 ltr. (No.) 205 9 PUF box 100 ltr. (No.) 107 10 PUF box 150 ltr. (No.) 24 11 PUF box 25 ltr. (No.) 152 12 PUF box 460 ltr. (No.) 9 13 Shipper box for ice cream 40 14 200 liter freezers for dealers (No.) 110 15 200 liter freezers Glass top for dealers (No.) 5 16 120 LTR freezer (No.) 75 17 500 ltr. freezer for dairy (No.) 53 18 Deep freezer 320 ltr. (No.) 124 19 Deep freezer 320 ltr. (Glass top) (No.) 0 20 Visi-cooler 220 ltr. (No.) 108 21 Visi-cooler 320 ltr. (No.) 31 the PUF containers under the Our field exposure visits revealed IDDP scheme during the yester that the retailers wholeheartedly years, the entire milk transport welcomed the PUF boxes because from Wayanad dairy was switched they were proved to be viable over to PUF insulated vehicles. The alternatives for the energy PUF boxes of varying sizes, 50-150 consuming freezers. They occupy liter provided at 50 per cent less space, are easily movable and subsidy in the retail outlets are easy to clean. The boxes retain together with the PUF bodied low temperatures for about 3-4 transport vehicles ensured perfect hours during which the milk is end-to-end cold chain and quality generally sold out. assurance – dairy to consumer.

158 Wayanad District

Freezers, 200 and 120 liter within and outside the district. capacity, are provided to the The market analysis shows that retailers at a subsidized price of Rs there is a wide gap between 5000/- a piece for storing frozen demand and supply. To take Milma products. Apart from ice advantage of these favorable cream, milk is also sometimes factors and to safeguard the stored in freezer cabins. There are interest of the milk producers in many takers for the freezers and the district, further expansion of almost all of them are in use, field the marketing outlets and exposure visits and surveys reveal. developing an aggressive The Visi-coolers are provided at marketing strategy are essential to subsidized price to store products protect the interest of the milk like flavored milk, cup curd, etc. producers in the district (sales outlets in border areas, out side The market in Wayanad district is state parlors, parlors in Various under the perpetual threat from tourist spots, ice cream Canopy private dealers. Also, some of the vehicles in interior routes, etc.). DCSs in Wayanad market sell milk

159 Wayanad District

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

160 Wayanad District inadequate to meet the challenge. Wayanad district for which the Hence MRCMPU has to scale up facilities and equipments their marketing activities in suggested are shown in table 5.10.

Table 5.10 The Suggested Infrastructure under NPDD for Marketing in Wayanad District Total Cost No. of Unit Cost 1 Depot/Parlor (Rs in Units (Rs) Lakh) 1.1 Milk parlor civil 6 50000 3.00 1.2 Milk parlor equipments 6 10000 0.60 1.3 Shoppe support 1 500000 5.00 1.4 Space in super market 9 20000 1.80 1.5 Decorated mobile product vehicle 3 50000 1.50 2 Market Infrastructure 2.1 PUF vehicle container (3 MT) 6 250000 15.00 2.2 PUF box 50 ltr. 210 2000 4.20 2.3 PUF box 100 ltr. 120 4000 4.80 2.4 PUF box 150 ltr. 120 6500 7.80 2.5 PUF box 25 ltr. 30 1300 0.39 2.6 PUF box 460 ltr. 30 15000 4.50 2.7 Shipper box for ice cream 30 6000 1.80 2.8 200 liter freezers for dealers 90 13000 11.70 2.9 200 liter freezers glass top for dealers 90 17000 15.30 2.10 120 LTR freezer 120 11000 13.20 2.11 500 liter freezer for dairy 12 23000 2.76 2.12 Deep freezer 320 liter 90 17000 15.30 2.13 Deep freezer 320 ltr. (Glass top) 150 20000 30.00 2.14 Visi-cooler 220 liter 120 20000 24.00 2.15 Visi-cooler 320 liter 90 30000 27.00 2.16 Canopy with eutectic freezer subsidy 15 100000 15.00 3 Consumer Awareness Programme LS 125.00 and Publicity Materials 3.1 ACP with LED board 120 20000 24.00 4 Freezer subsidy 15 5000 0.75 5 Refrigerator subsidy 15 3000 0.45 6 Rain coats 300 700 2.10 7 Support to milk stockists (RD) 9 200000 18.00 Dealer club meet/orientation/ 8 incentive 8 25000 2.00 9 Market research 30 30.00 Total (2.0.0) 406.95

161 Wayanad District

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

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

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

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

Milk Producers

Milk Chilling Plants BMC DCS (32) Cluster Non BMC DCS Non cluster DCS DCS (2)

WYND DAIRY

Key words: BMC DCS – Dairy Cooperative Society having Bulk Milk Cooler; Cluster DCS: DCS attached to BMC for milk supply; WYND: Wayanad. Figures in brackets – number of DCS

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

166 Wayanad District

Table 5.11 The Profile of DCSs in Wayanad District Sl. Description Quantity No. 1 No. of functional APCOS (31-3-2014) 53 2 No. of farmer members/DCS 1000 (53040) 3 Av. number of suppliers/DCS 345 (18313) 4 Milk procured from farmers in DCS (LPD) 140206 5 Local sales (LPD) 19217 6 Milk supplied to milk union from DCS (LPD) 120989 7 Av. procurement/DCS (LPD) 2645 8 Av. procurement/supplier (LPD) 7.6 9 Av. procurement price paid to DCS (Rs/Kg) 28.48 10 No. of DCs collected <100 LPD 0 11 No. of DCS collected 101 - 200 LPD 1 12 No. of DCS collected 201 - 300 LPD 0 13 No. of DCS collected 301 - 500 LPD 2 14 No. of DCS collected >500 LPD 50 15 Av. fat% 3.9 16 Av. SNF% 8.29 17 No. of BMC DCS (31-3-2014) 32 18 No. of BMCs 45 19 Installed capacity 181000 20 Av. collection through BMCs (LPD) 120000 21 No. of DCSs which supplied at dairy dock 0 22 No. of DCSs provided AMCUs (including DDD) 53 23 No. of DCSs provided analyzer only (including DDD) 15 24 No. of DCSs provided EMTs 53 25 No. of DCSs provided EMT only ( no analyzer) 53 26 No. of DCS provided Gerbers test equipment only NA 27 No. of Panchayat wards in the district 459 28 % coverage under milk procurement 75 29 % wards having potential for milk collection NA 30 No. of DCSs having own building 45 31 No. of DCSs having adequate water supply arrangements 53 32 No. of DCSs having standby generators 30 33 No. of DCSs having Electricity 51 34 No. of milk cans supplied during last five years 395 35 Quantity of milk spoiled (LPD) 4 36 Av. MBRT - milk supplied through BMC 176 37 Av. MBRT - milk supplied at dairy dock 0

167 Wayanad District

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

Table 5.12 Quality of Milk Collected from Farmers in Wayanad District 2013-14

Parameter Values Fat % APCOS 3.99 Fat % non-APCOS NA SNF % APCOS 8.3 SNF % non-APCOS NA Av. MBR time BMC DCS (Mts) 176 Av. MBR time direct DCS (Mts) NA No. of APCOS using/ supplied AMCU 53 No. of APCOS using/ supplied Milk O 53 tester & LR No. of APCOS using/ supplied 53 Gerber’s test & LR

168 Wayanad District

Although all the DCSs in Wayanad Almost all the BMC DCSs possess use AMCUs for quality the equipments for MBRT determination, only a very few estimation. But not all of them use DCSs make use of one of the this provision. components, the auto analyzer, The milk procured from among the reportedly due to the reason that farmers has 3.9 per cent fat and they are slow in performance. 8.3 per cent SNF which are lower Also, some of the analyzers were than those in other districts of found to be erratic in fat and SNF Malabar. Farmer education and estimation while some others introduction of AMCUs can further have inconsistent results. improve the quality. The MBRT of Malfunctioning of the analyzers milk supplied through BMC DCSs cause hardships to the farmers averages 176 minutes (tested in and the DCSs and hence Wayanad Dairy). The microbial discontinued. Some have changed quality of milk in Wayanad is the configuration of the AMCUs by better than that in other districts. hooking EMTs instead of In the years to come, estimation of analyzers. Using EMT defeats the both compositional and bacterial very purpose of AMCUs, quality will have a telling influence automation and instant print out on the marketability of milk. The to farmers. AMCUs are excellent best way to usher in microbial gadgets to ensure transparency in quality monitoring is to pay for milk procurement in village DCSs. bacterial quality also. To begin It avoids the hassles of quality with, it is suggested that the top 2 checking, volume measurement per cent of milk producers and payment of milk price. Hence supplying high quality milk may we are of the opinion that the be paid an incentive. analyzers need to be re-introduced 5.7.5 Key Issues and after rectifying the practical Suggestions difficulties in consultation with the Under the IDDP and SIQCMP manufacturers and suppliers. schemes Rs 515.79 lakh has been 169 Wayanad District invested for promoting the milk a. Buildings procurement activities ranging As pointed out in the forgoing from supply of BMCs to DCSs, sections, a few DCSs function in milking vessels to farmers and rented buildings. Most of them do capacity building of farmers and not have the minimum facilities for elected members in Wayanad hassle free milk collection and district. The IDDP support is dispatch. BMC installation is available for the next two more virtually impossible and effluent years (2014-15 and 2015-16). treatment is a serious problem in Therefore the support requested these DCSs. Therefore, it is under the NPDD for milk suggested to include provision for procurement is meant to stabilize, subsidizing new DCS buildings at sustain and carry forward the the rate of Rs. one lakhs per DCS. achievements already made. The Eight DCSs are identified to have suggested components and the the land and financial capacity to estimated costs can be found in part fund this during the project table 5.13. period.

Table 5.13 Support for Milk Procurement Suggested for Wayanad District under NPDD Unit Total Sl. No. of Milk Procurement Cost Cost (Rs No. Units (Rs) in Lakh) 1 Building construction 8 100000 8.00 2 Water supply system 10 60000 6.00 3 Bore well 10 25000 2.50 4 Open well 15 10000 1.50 5 Aluminium cans 300 2500 7.5 6 Electronic milk tester 4 15000 0.6 7 Electric centrifuge 8 2500 0.2 8 Weighing scale 3 15000 0.45 9 Hand held billing device 8 10000 0.8 10 Management grant to DCS 8 30000 2.4 11 Subsidy to milk transport 370000 0.5 1.85 12 Subsidy to cattle feed transport 24128 400 96.512 13 Incentive to better quality milk 900000 0.5 16.42 Total 144.73

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

procurement is near to 1.5 LLPD dung. The shed must be well and the incentive at the suggested ventilated, easy to clean and rate works out to Rs 16.42 lakh. should have transparent roofing sheets interspersed with opaque 5.8 Cattle Shed and Farm ones to permit sunlight, and Machineries facility for continuous feeding of water. Not many cattle sheds of Table 5.14 Farm Equipments the standard mentioned above Supplied to the Farmers in exist in Wayanad district. Some of Wayanad District the sheds are a mere make shift Sl. Item Quantity shelter with mud/wooden floor, No. tiles/asbestos/PVC/Silpaulin roof, 1 Cattle sheds modified 235 1 Milking machines 26 dark and musky, all in one floor 2 Rubber mats 833 (no urine or dung channel) 3 Pressure washers 28 and without any watering 4 Gen sets 5 arrangements. The cows remain in 5 Cow drinker 10 6 Chaff cutter - Motorised 2 this shelter most of the time (no grazing). The hind quarters and Well constructed cattle sheds are a the udder often remain soiled with pre-requisite for clean milk dung, urine and mud. Udder and production. A dirty cattle shed teat injuries are common. Feeding contributes substantially towards of water is only occasional. prevention of external Therefore, any support for good contamination of milk and entry of cattle sheds is a welcome gesture microbes in to the udder causing towards promotion of dairy sub-clinical/clinical mastitis. A production in Wayanad district. well constructed cattle shed Considering the above aspects, the should also provide operational Milk Union could rope in funds for easiness and animal comfort. The cattle shed modification and shed should have adequate space making of new cattle sheds under for the animal, manger, feeding the IDDP and SIQCMP schemes. In alley and channels for urine and the past, 294 cattle sheds were

172 Wayanad District

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

173 Wayanad District

MRCMPU has initiated providing new entrants of cattle farming. To financial support for farm overcome this issue, cattle mechanization. The Union has induction has been resorted to by been providing and channeling several development agencies in support for these activities for the the state as a support scheme. The past few years. However, the MRCMPU too distributed 250 support is scale inadequate and heifers to 50 farmers in Wayanad many more are on queue. It is district to promote cattle rearing. suggested that the assistance may be continued and funded under Cattle keeping in the district has NPBBDD. The components become largely a job of suggested, the quantity and the economically weaker sections of estimated costs can be found in people (BPL families) and women. table 5.15. It continues to be a major means livelihood especially for women. 5.9 Cattle Induction Therefore, a support for The absence of easy access to loan purchasing the following number facility at low interest from banks of cattle is recommended under remains a serious obstacle to the NPDD (table 5.16).

Table 5.15 Cattle Sheds and Farm Machineries Suggested under NPDD for Wayanad District Total No. of Unit Cost A Cattle Shed Cost (Rs Units (Rs) in Lakh) 1 Strengthening of old sheds/constructing new 150 15000 22.5 2 Auto watering system 100 5000 5.00 B Cattle Farm Mechanization 3 Gen set 30 75000 22.5 4 Pressure washers 150 7500 11.25 5 Rubber mats 500 2500 18.75 Total (4.0) 79.5

174 Wayanad District

Table 5.16 Cattle Induction Program Suggested in Wayanad District Unit Total Cost Sl. No. of Cattle Induction Cost (Rs in No. Units (Rs) Lakh) 1 Purchase of cows 120 40000 48.00 2 Purchase of heifers 120 30000 36.00 3 Transportation cost of animals 240 2000 4.80 4 Cattle/Heifer insurance 150 2500 3.75 Total 92.55

Only the BPL families will be Transportation cost shall be included for cattle induction. met in full under the scheme.

Fifty percent of cows and fifty Seventy five percent of the percent of heifers are reserved Insurance premium shall be for women. included under the scheme Women members will be and the balance as allowed 75 per cent subsidy beneficiary contribution. on the purchase price and the others 50 per cent.

175 Wayanad District

5.10 Establishment of Central audits and certain equipments and Laboratory software for the maintenance of An amount of Rs 91.82 lakh had these systems are to be acquired. been invested under phase I & II of The amount suggested is towards IDDP and SIQCMP schemes and these items. Rs 39.32 by the Milk Union in Although the DCS labs are upgrading the Wayanad dairy lab. equipped to carry out the MBRT, a The lab has reasonable facilities system to carry out the tests by including equipments for routine the DCS staff and to link the tests. Hence no additional lab results on line with the central lab equipments are proposed under are yet to be implemented in full. NPDD. Any further upgradation of the

But as part of modernizing the DCS labs needs to be considered automatic data capturing system only after fulfilling these in the hygienic systems in the requirements. dairy software for easy monitoring of FSMS and a high capacity 5.11 Clean Milk Production pressure jet are proposed in the Kits for Beneficiaries Project. Under the CMP scheme, the MRCMPU supplied the following The Wayanad dairy is already articles to the farmers in Wayanad ISO:22000 certified dairy by DNV. district (table 5.18). The recertification and surveillance

Table 5.17 Establishment of Laboratories in Wayanad District Unit Amount Sl. Components Units Price (Rs in No. (Rs) Lakh) 1 Central milk testing lab LS 20.00 2 Purchase of laboratory furniture 1 500000 5.00 3 High capacity pressure jet 1 100000 1.00 4 FSMS monitoring software 1 100000 1.00 5 Automatic data capturing system 1 2200000 22.00 6 Accreditation and certification of dairy establishments under HACCP/ISO 1 500000 5.00 Total 54.00

176 Wayanad District

Table 5.18 CMP Kits Supplied under SIQCMP Scheme in Wayanad District

Sl. Financial Component Physical No. (Rs in Lakh) 1 Detergents & chemicals to DCS lot 16.02

2 Stainless steel utensils to beneficiaries 5725 28.49

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

Table 5.19 CMP Kits and Milking Machines Suggested for Wayanad District under NPDD Total Cost Sl. No. of Unit Component (Rs in No. Units Cost (Rs) Lakh) 1 Stainless steel utensil kit/ accessories 1500 400 6.0 2 Electrically operated milking machines & other equipments for hygienic milk handling at village/ farmer level 15 55000 8.25 3 Manual milking machines 50 6000 3.00 Total (7.0) 17.25

177 Wayanad District all the beneficiary farmers of the SIQCMP schemes implemented in earlier schemes use the machines the district. The major components although continuous service back and the financial and physical up is essential. It is suggested that attainments in Wayanad district fifteen more milking machines may can be found in table 5.20. be supplied to the farmers at Those services are under the state subsidized (75%) rate under domain and the line departments NPDD. It is also suggested that a have a variety of schemes for few hand operated machines may supporting those activities. The be supplied for a scientific and efficacy of AI and health care methodical field trial in association delivery at farm gates, however, with KVASU. remain poor, the HH survey

shows. Since those services are of 5.12 Technical Input Services state domains, the change in (TIS) service delivery requires policy The technical input services decisions and to avoid duplication include support for animal of such services (AI, health care, breeding, health care and home stead fodder production etc) prophylaxis, fodder development are not suggested under the and other associated activities for NPDD. The most essential the benefit of participating farmer components suggested on a members. The TIS was a major priority basis can be found in table component under the IDDP and 5.21. Table 5.20 Technical Input Services Components and Achievements in Wayanad District Financial Physical Union/ Total (Rs Component IDDP/ Achievement Beneficiary in Lakh) SIQCMP Technical input 294 farmers 41.5 lakh 17.78 59.28 services

178 Wayanad District

Table 5.21 Wayanad District Technical Input Services Suggested under NPDD Total Sl. No. of Unit Component Cost (Rs No. Units Cost (Rs) in Lakh) 1 Liquid nitrogen containers 6 30000 1.80 2 Audio visual kits etc. 1 200000 2.00 3 Animal health & breeding input camps 180 5000 25.00 4 Chaff cutter 36 20000 7.20 5 Commercial fodder production 10 100000 10.00 Total 46.00

The LN containers are for other hand, large land holdings replacement of the ones in use. and fallow lands are potential The animal health and breeding sources for fodder production – input camps include a pilot fodder as a value added crop in program for fertility management irrigated land. The fodder so of dairy cows among farmers. The produced shall be marketed program envisages identification of amongst the DCS members at the infertile cows, providing cost plus price. The scheme shall management and Veterinary be a flagship program of NPDD. support to correct the reproductive problem, if any, documenting the 5.13 Information and information for adoption Communication elsewhere. It is a DCS based Technology Networking program centrally controlled and The MRCMPU, apart from being a monitored from HO of MRCMPU. farmers’ organization, is also a

The conventional homestead multi- crore business concern. Its’ fodder production is a failed business units are far flung and attempt in Kerala. The reasons are widely distributed. The application many, the most important being and full utilization of Information the land fragmentation and the and Communication Technology declining farming activities. On the (ICT) alone will enable the

179 Wayanad District

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

180 Wayanad District

Table 5.22 Information and Communication Technology Networking Wayanad District Unit Rate Sl. Details (Rs in Units Amt. No. Lakh) 1 Purchase of Computer/HHB 1.1 Desktop 0.50 13 6.50 1.2 Laptop & Netbook 0.60 10 6.00 1.3 Hand held range of computers 0.30 38 11.40 1.4 1000 LPM line printer 0.00 1.5 132 col DMP printer 0.30 1 0.30 1.6 A4 size net work laser printer 0.20 1 0.20 2 Purchase of Servers 2.1 Rack server 9.00 2 18.00 2.2 42 U server rack 1.00 1 1.00 2.3 Server storage device 8.00 1 8.00 2.4 Tape backup 8.00 1 8.00 2.5 UPS for server 7.00 2 14.00 2.6 Server OS & training 3.00 1 3.00 2.7 Weblogic server suite purchase 15.00 1 15.00 2.8 Oracle database 12C 15.00 1 15.00 2.9 Antivirus software 1.00 3 3.00 2.10 Hardware & networking 10.00 1 10.00 2.11 Software consultation charges (AMC) 5.00 1 5.00 2.12 Onsite software analysis and evaluation 5.00 1 5.00 for Union and DCS purchase 3 Software Purchase & Up-gradation 30.00 Charges 3.1 Software consultancy & database administration 10.00 1 10.00 3.2 Leased line communication cost 10.00 1 10.00 Total 149.40

5.14 Manpower Development reduction, energy conservation and product improvement in 5.14.1 Current Status MRCMPU. Apart from the Union The training and development employees, the staff and the program is adopted as a tool for elected representatives of the DCS organizational development and to and the Board are also trained on make strides in productivity appropriate subjects. standards including cost

181 Wayanad District

Table 5.23 Employees and the Elected Members Trained in Wayanad District Number of Sl. Course Persons No. Trained 1 Cooperative development program a No. of programmes 15 b No. farmers trained 2102 c FIP- Local farmers attended 1407 d Management orientation 85 2 Training of BMC/DCS/MCC staff 16 3 Training of DCS secretary 113 4 Training of DCS employees 85 5 Training on AI 17 6 Training of farmers on GMP/GHP 3838 7 Training of farmers on AH practices 96 8 FIP 735 10 Training on marketing 20 11 Training of management committee members 39

Table 5.23 shows the numbers Dairy/cattle feed plant. Farmers trained in various categories from are the trainees. The farmers Wayanad district. The DCS staff Induction program is normally has been trained at the HRD carried out in the HRD Centre, centre, Kozhikode under MRCMPU Kozhikode. The Dairy Animal on the relevant subjects. The Management Training to the trainers included those from farmers has been undertaken in within the organization and also APCOS DCSs. The training invited from other organizations. included lectures by experts and The duration ranged from one to visit to a few well run farms. The three days and the subjects farmers were given opportunities handled were those relevant to the to see for themselves the success concerned groups. and failure stories.

The CD program includes training The training for MRCMPU in village cooperatives followed employees is arranged by the Head by a visit to the processing Office in the institutions of repute

182 Wayanad District in India, both inside and outside and DCS employees should the state. An interaction with a be initiated on a project mode test group showed that the and results closely monitored trainings were partially useful for and evaluated. upgrading their knowledge, skills 4. The Dairy Managers, and attitude. Production Officers and Marketing staff should be An amount of Rs 22.58 lakh had exposed to higher levels of been spent on various training knowledge on production and programs in Wayanad district marketing management. They under the IDDP and CMP Phase I should be provided and II. opportunity to visit centers of

excellence outside the 5.14.2 Key Issues and state/country. Suggestions 1. The future training 5. The thrust of capacity programmes especially those building of higher level for the middle level employees employees should be on starting from Supervisors modern Management Systems should be hand on training rather than limiting to exclusively on subjects and technical subjects. They skills relevant to them. should be exposed to the happenings in the dairy 2. Farmers training should be sector elsewhere in the organized in villages country (eg: Schreiber themselves with the support Dynamix) to widen their of LSG and Village Extension vision and outlook. Workers under MRCMPU. 6. The FIP must be gradually 3. All out and comprehensive phased out. training on Mastitis Eradication, Clean Milk The courses suggested and the Production for farmers, estimated costs are given in table Village Extension Workers 5.24.

183 Wayanad District

Table 5.24 Proposed Training Program under NPDD – Wayanad District Total Sl. No. of Unit Course Unit Cost (Rs No. Units Cost (Rs) in Lakh) 1 CD programme Prog. 15 80000 12.00 2 FIP Person 200 300 0.6 3 Secretary Person 125 3000 3.75 4 Tester/Helper Person 125 3000 3.75 5 Training of farmers in GMP/GHP Person 250 2000 5.00 6 Training of farmers in animal Person 66 2000 1.32 husbandry 7 Dairy manager Person 2 20000 0.40 8 Production officers Person 8 20000 1.60 9 Dairy plant supervisors Person 9 20000 1.80 10 Technicians/Operators Person 7 20000 1.40 11 Milk marketing officers Person 7 20000 1.40 12 Training of MC members Person 3 12000 0.36 13 Dairy extension activities Prog. 7 1000 0.07 Total (10.0) 1256 33.45

5.15 Working Capital – The working Capital requirement Wayanad District is fluctuating throughout the year The Dairy shall maintain depending on local milk minimum quantity of finished procurement. During lean season products at all times to ensure during which the procurement uninterrupted sales. Minimum from the district declines, union is quantity of all raw materials, procuring large quantity milk from consumables packing materials, other states for which payments stores and spares etc. are also are made in advance. Large required to maintain smooth quantity of SMP shall also be processing/production operation. stocked to meet any contingencies.

Table 5.25 Value of Milk Procured in 21 Days from Wayanad District

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

184 Wayanad District

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

Table 5.26 Working Capital Required in Wayanad District 2014-15 to 2016-17

Unit 2014- 2015- 2016- Total Working No. of Unit Cost 15 (Rs 16 (Rs 17 (Rs Cost (Rs Capital Units (Rs) Lakh) Lakh) Lakh) Lakh) Purchase of milk KG 80000 300 60.00 90.00 90.00 240 powder Purchase of KG 7000 210 4.20 4.20 6.30 14.7 packing material Purchase of MT 1050 18000 63.00 63.00 63.00 189 cattle feed Total 127.2 157.2 159.3 443.7

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