6. KANNUR DISTRICT Contents Executive Summary .......................................................................... 188 6.1 General Features ........................................................................ 192 6.2 Trend in Cattle Population .......................................................... 193 6.3 Trend in Milk Production from Bovines ....................................... 194 6.4 Milk Chilling ............................................................................... 194 6.5 Milk Processing ........................................................................... 195 6.6 Milk Marketing ...........................................................................199 6.7 Milk Procurement .......................................................................208 6.8 Cattle Shed and Farm Machineries ............................................. 215 6.9 Cattle Induction .......................................................................... 216 6.10 Establishment of Laboratory ..................................................... 218 6.11 Clean Milk Production Kits for Beneficiaries ............................. 219 6.12 Technical Input Services (TIS) ................................................... 220 6.13 Information and Communication Technology Networking .......... 221 6.14 Manpower Development ............................................................ 223 6.15 Working Capital - Kannur District ............................................. 225 Kannur District Kannur District 187 Executive Summary The Kannur district is not among export regulations. In addition, the the frontline dairy districts in dairy requires certain critical Kerala. Yet livestock farming is equipments, some as standby and germane to the vast majority of the some as replacement. The farmers in the district. The official suggested additions and statistics, however, show that the replacements are estimated to cost cattle sector, both in numbers and Rs 273.00 lakh. output, suffered setbacks since The market survey shows that the late nineties. The cattle numbers supply-demand gap of milk in declined by 61 per cent from 1996 Kannur district is 2.67 LLPD. The to 2012 and in-milk cows by 34 market share of MRCMPU in the per cent. Surprisingly the annual liquid milk segment in Kannur milk production fell only district is just 30 per cent which is marginally in spite of the sharp fall not satisfying. The Milk Union is in cattle numbers. facing fierce competition from the The MRCMPU has a processing competitors, mainly from within dairy at Kannur. The installed the district, but also from outside capacity of the dairy is 1.5 LLPD. to a smaller level. But the market During 2013-14, the dairy analysis reveals that this is not a processed on an average 1.04 restricting factor to command a LLPD, almost 20 per cent below better market share. The the installed capacity. Even at the inadequate market infrastructure peak procurement level during the is one of the reasons for the low year, the dairy’s capacity market share. The dairy’s business utilization has only been 75 per plan may also require some cent. Hence there is no urgency in revision. Hence an aggressive expanding the processing capacity marketing strategy supported by of Kannur dairy. But the product adequate infrastructure is manufacturing line requires required. To begin with, new milk certain additions on account of the parlors and Shoppe are suggested 188 Kannur District to be opened in prominent public The lack of good cattle sheds and places. Wide publicity through farm machineries are identified as print and visual media is also the major constraints in dairy suggested. Periodic market surveys production in Kannur district. and R&D on consumer likes and Financial support for preferences (example attractive strengthening of old cattle packing for flavored milk, ice sheds/construction of new ones cream, peda, etc.) are also and supply of farm machineries suggested. The estimated cost on and equipments are proposed at a market promotion works out to Rs total cost of Rs 80.00 lakh. 437.5 lakh. In order to promote cattle keeping The MRCMPU has built up an among the below poverty line (BPL) extensive net work of DCSs and and the SC/ST families, a cattle BMCs for milk procurement from induction program is suggested. farmers. All the DCSs have The NABARD norms shall be reasonably good milk testing followed for administering the facilities. All the BMC DCSs have subsidies. The overall support for facility for MBRT estimation. The 240 animals is estimated to be Rs field level milk testing, however, 92.55 lakh. requires further refinement. The It is suggested to establish a major constraints identified in the central milk testing lab at expansion of milk procurement Kozhikode dairy by pooling the and clean milk production are lack funds from all the districts. This of convenient buildings for DCSs, will eliminate the need for absence of good quality water replication of the same facilities supply facilities with some DCSs and expenses in all the districts. and lack of incentives for clean Some additional equipments and milk production and support for furniture are also required in cattle feed transport. The support Kannur dairy lab. All these suggested for procurement together are estimated to cost Rs activities in Kannur district is 54.00 lakh. expected to cost Rs 233.2 lakh. 189 Kannur District The farmer beneficiary programs running for the past few years. It is proposed are aimed at milk suggested to scale up some of productivity enhancement and these programs. The suggested clean milk production. They programs would cost Rs 57.6 lakh. include distribution of stainless The business plan of MRCMPU steel utensils, milking machines, suggests substantial increase in animal breeding and health cover milk procurement and sale in and commercial fodder production Kannur district. The milk prices for which at the estimated cost are to be paid to the farmers works out to Rs 38.65 lakh. regularly which alone cost rupees The MRCMPU needs to network 300 lakh or more every 21 days. In with the various units and the addition, keeping a buffer stock of DCSs for effective information raw and finished goods is essential sharing and communication. The to safeguard an uninterrupted suggested system is a client server business. This, as also several architecture network with six other requirements force the Milk centers, one in each district Union to borrow money from the (Palakkad, Malappuram, Kozhikode, open market which causes extra Wayanad, Kannur, Kasaragod) and burden to the Union and the a central server system linking all farmers. Hence it is suggested that these six centers. The data and an amount of Rs 117 lakh shall be information will be made available paid to the milk Union as a one- to all the districts and DCSs. The time assistance for Working estimated cost of these in Kannur Capital. district is Rs 123.0 lakh. The Suggestions for Kannur The HRD through training and district abstract of the proposed skill development is a routine program is as follows: The activity of MRCMPU in Kannur suggested programs for Wayanad district. Several programs were shall be summed up as follows. 190 Kannur District Amount Component (Rs in Lakh) Milk processing and packaging 273.00 Milk marketing 437.55 Milk procurement 233.20 Cattle sheds and farm machineries 80.00 Cattle induction 92.55 Central testing laboratory 54.00 CMP kits and milking machines to farmers 17.25 Technical inputs services 30.00 Information and communication technology 123.00 Human resource development 57.60 Working Capital 117.30 Total 1515.40 191 Kannur District 6.1 General Features the 2011 census, the district Kannur district came into population is 25.23 lakh of people, existence on first January 1957. 8.82 lakh in rural and 16.41 in The district is surrounded by the urban areas with an average Coorg district of Karnataka density of population of (Western Ghats) in the East, the 850/sq.km. Agriculture is Kozhikode and Wayanad districts livelihood intensive to majority of in the South, the Lakshadweep sea people. The main crops grown in in the West and the Kasaragod the district are paddy, coconut, district in the North. The district pepper, cashew, tapioca, areca nut occupies 2966 sq.km. of the state and plantation crops like rubber in three geographical regions - and spices. highlands, midlands and lowlands. Dairy cattle are germane to the The highland region comprises farming systems in the district. The mainly of mountains and major livestock population in the district plantations of rubber. The midland comprises of 1,06,237 heads of region, lying between the cattle, 765 buffalo, 55,262 goats mountains and the low lands, is and 4534 pigs as per the latest made up of undulating hills and cattle census (2012). The census valleys. This is an area of intense figures suggest that the cattle agricultural activity. The lowland population in the district is is comparatively narrow and continuously declining. The state comprises of rivers, deltas and departments, AHD and DDD, are seashore. This is a region of the major service providers in coconut and paddy cultivation. livestock sector. Under the AHD, the Kannur district has three Taluks, district has 12 Veterinary hospitals, 129 Villages, nine Blocks, 81 68 dispensaries, five poly clinics, Grama Panchayats and six one mobile dispensary, two mobile Municipal Towns (Thaliparamba, farm-aid units, one District Kannur, Thalassery, Kuthuparamba Veterinary Centre, four Regional