Consultancy Study of Dairy Marketing Development

India with a total milk production of 110 million tonnes remained the largest milk producing country in 2008-09 with a share of close to 15 percent of world milk production. Maharashtra is one of the milk surplus states in India. Total production of milk in Maharashtra is around 7.00 million tonnes. In Maharashtra there are dairies in the cooperative sector, the government sector and the private sector. The total milk production of cooperative and government sector is around 82.00 lakh liters per day (LLPD), with almost equal share of each. The unorganized sector has additional production of around 18.00 LLPD to 20.00 LLPD.

The National Dairy Development Board (NDDB), has proposed around $4 billion (Rs. 173 billion) draft National Dairy Plan (NDP) to increase the country's milk production from the current level to meet the projected demand of 180 million tonnes by 2021-22. Commensurate with this goal, it may be reasonable to project that Maharashtra’s milk production should grow from 7.00 million tonnes to around 13 million tonnes by 2020.

The NDP focuses on:

The NDP focuses on:

(i) Productivity measures to enhance milk production as the average annual incremental production will have to increase from 2.5 million tonnes now to 5 million tonnes over the next 15 years, and,
(ii) Strengthening and expanding infrastructure to procure, process and market milk through existing and new institutional structures.

The NDP plan proposes to increase the share of the organized sector in milk production to 65 percent from the current 30 percent to ensure supply of quality milk to consumers. NDP covers strengthening and expanding infrastructure to procure, process and market milk through existing and new institutional structures, of which Maharashtra state is likely to be a major beneficiary state.

In view of the above, there is a need to explore the potential of introducing proactive measures to increase the productivity and production of milk in Maharashtra, viz.:

Undertaking campaign for production of clean milk (CMP program).
Milk Price based on microbial quality by implementing CMP program.
Milk Payment through smart cards.
Provision of bulk milk coolers (BMCs), automatic weighing and testing machines.
Fully automatic and computerized milk processing facilities.
Establishment of cold chain from farmer to consumer.
Milk marketing through automatic vending machines (not only in Mumbai but even in smallest towns in the state).
Enforcement of stringent quality norms.
Organization of New Generation DCS as per Indian Companies Act applicable to Producers Companies.

Considering various interventions under NDP what is required to be done in the field of Dairy Marketing Development will be studied under MACP. A study is proposed for development of a roadmap for Maharashtra’s dairy industry from Production to Marketing. This study shall be completed during the early two years of the project. Based on the results of this study WB in consultation with GoM at the time of Mid Term Review of MACP will decide whether sub-component of Dairy Marketing Development should be included in MACP and what activities need to be taken. Besides other objectives, this study will cover as to how the dairy development including processing of milk and its marketing development should be tackled; particularly in suicide prone districts of Vidharba region of Maharashtra, and what kind of investment is needed for the same.

The draft TOR for the study will be prepared by ABPF with the support of PCU, and ABPF and PCU will take the technical & over sight role on this. Consultant contracting will be the responsibility of the PCU. If need be PIP for Dairy Marketing Development in Maharashtra form the stage of production till marketing will be prepared by Consultant.

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