The plant, to be installed on a turnkey basis by GEA, will process around 90, liters per hour of milk to produce multiple value-added products.
What are the causes of the current milk crisis in India? Over the past few years, private dairy capacities have grown significantly in India. They are mostly in the commodity space skimmed milk powder or SMP, and butter oil.
Even while overall private sector capacities are nearly equal to that of cooperatives, milk handling varies according to the market situation, as private players procure milk only when prices of their end products, SMP and butter oil, are higher and yield good profit for them.
Over the last two years, the private sector has reduced milk handling drastically, because commodity prices have fallen globally, leading to a glut in India. As a result, private dairies have withdrawn from procurement and cut procurement prices. What happened in Maharashtra is a reflection of this.
Why does private sector falter whenever there is more milk? Private players first look at the margins. Cooperatives, on the other hand, take care of the interest of the farmers, even if they run into losses sometimes.
The cooperative model has to provide stable and remunerative prices for milk. Private dairies, being predominantly in the commodity space, stop activities as supplies rise, and turn to cooperatives to buy milk powder and repackage it under their brand.
Cooperatives give higher prices, but where cooperatives are not present, private players give less. Ultimately it is the farmer who decides whom to sell milk to. In States other than Gujarat, cooperatives too have to reduce prices, but not as much as private players.
In some States, subsidy tries to plug the difference to maintain the prices. In the current arrangement, who decides the prices?
Each district union decides its own price payable to the farmers based on their business viability and balance sheet. It keeps changing month to month.
There is no specific model, wherein the government announces a minimum price for milk as seen in the case of Maharashtra. The farmer may produce the milk, but he is not the price setter.
He is a price follower based on market forces. The challenge is that milk prices are not decided based on the input costs.
For the past nine years, we have been able to give 9 per cent average increase every year. But this year we are not able to, because we are also incurring losses in SMP. But in major States like Maharashtra and Uttar Pradesh, cooperative procurement is not happening under a single umbrella.
There would be several cooperatives with their own brand and cost structure. Hence, they are unable to create one strong brand like Amul, where 18 district cooperative unions are connected.
This is the reason for the rise of private dairies and fall in cooperatives structure. Therefore, private players will be able to get the cheapest milk, making commodity production attractive.
Other cooperatives are unable to make profits because of high dependence on commodity prices. What is required to keep the next generation interested in dairy farming? The next generation is interested in any business that looks modern, attractive and remunerative.
It will go with commercial farming. Jobs in cities are limited. There is a need to generate employment at rural level. But the attraction will be best prices. Private sector is good if it develops individual clusters where cooperatives are not present and takes care of the farmers, paying them stable and remunerative prices.
It will improve the procurement and production of milk in those clusters. What are the export prospects for Indian dairy products? After the melamine episode inwe and many other countries put a ban on Chinese imports.
While many other countries lifted the ban, we kept extending it.The Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest dairy product manufacturer and marketing organization through their brand name AMUL (Anand Milk Union Limited).
They have a daily average of million litres of milk collection. GUJARAT COOPERATIVE MILK MARKETING FEDERATION (GCMMF) • India's largest food product marketing organisation with annual turnover () US$ 3.
• It operates through 56 Sales Offices and has a dealer network of dealers and 10 lakh retailers billion • India's largest exporter of Dairy Products • Products are available in USA. Its product range comprises milk, milk powder, health beverages, ghee, butter, cheese, Pizza cheese, Ice-cream, Paneer, chocolates, and traditional Indian sweets, etc GCMMF is India's largest exporter of Dairy Products.
It has been accorded a "Trading House" status. GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status. GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 9 years. Jun 25, · Shri R.
S. Sodhi, Managing Director, GCMMF said that expansion, innovation and brand building are the three pillars of Amul’s strategy to achieve the growth.
We are glad that our efforts are being recognised at the global level. GCMMF is India’s largest food product marketing organisation with annual turnover of Rs. 18, Cr.
(US$ Amul, a brand of the Gujarat Co-operative Milk Marketing Federation (GCMMF), an apex body of 13 milk co-operatives, has clocked a turnover of Rs 4, crore ($ billion) during fiscal to become a billion-dollar entity. The results will be formally declared within a couple of days.