Prospects of Value Addition in Milk at Producer’s Level

Ashish Kumar SinghNational Dairy Research Institute

Karnal-132001

• India has distinction of largest milk producer with as estimated figure of 112 MT

• Contribution of livestock sector in national and agriculture GDP is about 5.59% & 31.7% respectively.

• Steady growth rate is livestock sector 4-5 % despite minimal investment in the sector

• Indian dairying is predominantly small holders as small & marginal farmer own about 60% of milch animals and produce 70% of milk

Introduction

Milk Marketing & Utilization Scenario

• Almost 55% of milk is produced is consumed by the produces house hold

• Of the remaining 2/3rd is sold in traditional market mainly by milk vendors.

• Only about 16-17% milk is handle by organized sector.

• Dairy co-operative only procure 7.2% of the total milk produce in country.

• More that 80% of the milk is marketed in unorganized sector

• Low level of value addition in milk is mainly due to lack of options available for their effective utilization.

Shortcomings in Traditional Milk Marketing

• Lack of hygiene and safety measures

• Absence of cold chain often leads to malpractices

• Problems in weights & measures• Middlemen played exploitative role• Less return to dairy farmers• Lesser emphasis on value addition

at producer’s level

Traditional Milk Processing

• Boiling Milk at Household Level• Dahi & lassi Making• Churning dahi into Butter &

chhach• Surplus Butter converted to Ghee• Small Scale Khoa & Chhana

Making• Paneer making at home• Conserve Milk Solids to Meet demands

Traditional Dairy Products (TDP): Soul of Indian Dairy Sector

Traditional dairy processing sector

maximizes household milk use

TDP sector process 54 MT milk that

valued at Rs. 50,000 crore and it is three

times bigger than liquid milk business

Level of value addition is almost 100-200% with annual growth rate of 15-20%

However, introduction of modernization

and technological developments in the

sector is the need of the hour

MILK

Categories of Traditional Indian Dairy Products

BurfiPeda, KundaGulabjamun

Milk Cake

Rasog

olla

Sand

esh

Chhan

a Pod

oDahi

Misti Dahi

Chakka

Shrikhand

Kulfi

KheerPayasam

Khoa

Rabri

Basundi

Makkhan

Ghee

Chhana

Paneer

Heat Desiccation

Fermentation

Fat Concentration

Freezing

Addition of Cereals & Desiccation

Heat and AcidCoagulation

Khoa-basedConfections

Chhana-basedConfections

Imports Points for Value Addition at Producer's Level

• Scenario of milk production, milk utilization and practices of hygiene & safety in identified villages/cluster

• Identification of promising traditional products and appropriate technological packages

• Training methods for ensuring production of quality dairy products

• Sourcing of funds & information regarding subsidies available in different schemes

• Establishment of linkages among stakeholders to promote processing

Suitability of Buffalo Milk for Manufacture TDP

• High total solids : Higher yield

• High fat : Better organolpetic quality in terms of

taste

• High protein : Better texture of Processed Products

• High lactose : Natural sweetness & Browning

• Large fat globule size : More free fat in Khoa & better consistency & flaky

texture in Rabri & Basundi

Prospective Traditional Dairy Products

• Khoa: a heat desiccated product market is valued at Rs. 6500 crore

• Poor quality of khoa in absence of standardized protocol

• Paneer: Heat-acid coagulated dairy products, quite high in demand among urban consumers

• Manufacturing process is simple and small scale processing equipment like kettle & paneer press are available

• Limiting factor is short shelf-life

Whey Utilization for Better Profitability

Major by-product, nutritionally rich fraction & pose environmental threat

Value addition will maximize the profit

Technologies for ready-to-serve whey based fruit beverages, dairy drinks, soups, could be adopted for enhancing the income

Simple manufacturing technologies that can be adopted at small scale

Emphasis should be on appropriate processing and packaging

Dahi & other Fermented Milks

• Round the year consumption and growing trend for packaged dahi

• Nutritious and considered good for health

• Need investment in culture propagation and incubation

• Short set cultures could be used to minimize space and time of processing

• Among the cheeses fresh variety of cheeses including mozzarella cheese could be an attractive option

Ice Cream & Frozen Desserts• One of the most popular Western

dairy product with estimated production of 350 million L/anum valued around Rs. 21,000 millions

• Majority of players are in Organized sector but market exists for small scale processors as well

• Batch type freezing machine could be utilized for production of Ice cream & frozen dessert

• Require continuous cold chain • Kulfi is one of the most promising

TDP both among rural & urban consumers

Small Scale Processing Equipments

• Cream separators & butter churner• Scrapper assisted desiccation for Khoa

manufacture• Double jacketted gas or electrical

heated kettles for heating of milk during paneer manufacture

• Paneer press or hoops• Insulated containers for dahi or

fermeted milk manufacture• Deep freezers with glycol for long term

temperature maintenance

Skid Moulded Milk Processing Module Plate Heat Exchanger

Khoa Making Machine Butter Churner

Cream Separator

Interaction with SHG members

Anmol Mahila Dudh Samiti ROS#138/11-07-2010

Animal health camp

Quality Assurance Training

Product Manufacturing at

Small Scale

Interactive & Problem Solving

Session

Rural Enterprise on Composite Foods

Unit is involved in Manufacturing & Marketing of dairy products including whey based drinks, Bajra lassi and Biscuits, run by 14 resource poor women

Success Story

Conclusion

• Milk processing at producers level minimize the milk losses and maximize the profits to dairy farmers

• However, well defined extension strategies are needed to encourage and train farmers/entrepreneurs

• Suitable equipments have to designed for processing at small scale

• Establishment of marketing linkages to sell these products

Conclusion

• Existence of rural livelihood is facing various problems related to economic breakdown, liberalization and impact of climate change.

• However, with age old tradition of livestock farming and rapidly growing market for livestock products including milk & milk products, are opening new vista for enhancing rural incomes