A Report

On
Procurement and Inputs

By
VARSHA TIWARI
MBA (RDM) - III SEMESTER

AUGUST 2008

INSTITUTE OF RURAL DEVELPOMENT

LUCKNOW UNIVERSITY
LUCKNOW
 Preface
It is mandatory for every student of MBA from the University of Lucknow to undergo
project training at a reputed organization with a project on live problems. I thus chose to
undergo training at “LUCKNOW PRODUCERS CO-OPERATIVE MILK UNION”, for a
period of 2 months.

My training has become a fruitful experience to me. I have gained a good amount of
experience and abroad idea about the working of the organization.

Date:

“Varsha Tiwari”
MBA (RDM) – III Semester
Lucknow University
Lucknow

Page 1
 Acknowledgement

I did this project work for the partial fulfillment of MBA (RDM) degree. On the
completion of our project, I take the opportunity and pleasure to express my sincere
gratitude and indebtedness to all those who have directly or indirectly helped me in
order of completion of this project.

I would like to thank to all people who supported me and were involved in one
way or another in the preparation of this project. With the biggest contribution to this
project, I would like to thank Mr. D.R. SINGH (Manager, Field Officer) and Dr. UTTAM
(Manager, Veterinary Surgeon), for their continuous guidance and kind support. Their
extraordinary culture and knowledge of the physical and virtual worlds made easy and
inspired me to do this project. They taught me how to apply my skills in a new way in
order to complete this project.

I express my deepest gratitude to our Head of the Institute of Rural

Development, Mr. P.D. MISHRA, who managed to re-direct my thinking towards the
world of the virtual reality and brought new dimensions to my approach towards the
project. I would also like to thank to Dr. SUKANT CHODHURY (Course Coordinator)
for his immense help in our academic exploration and for guiding us throughout and
giving us an ambience to work with zeal and comfort. I would also like to thank the
faculty and staff of the Institute, whose support was irreplaceable, and whose kind and
friendly attitude helped me a lot. I would also like to acknowledge the support of my
classmates and friends.

Lastly, I’m ever thankful to my family.

Varsha Tiwari

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 Table of Contents

Introduction ..................................................................................................................... 6

Dairy Scenario In India :.............................................................................................................. 7

Role of Dairying in Indian Economy ......................................................................................... 8

Operation Flood: ............................................................................................................. 9

Three Phases of Development: ................................................................................................. 9

Phase I......................................................................................................................................10

Phase II .....................................................................................................................................10

Phase III ....................................................................................................................................10

Far reaching consequences................................................................................................11

Parag: The origin........................................................................................................... 11

The start of a revolution: ...........................................................................................................12

Company Profile ........................................................................................................................14

Introduction:............................................................................................................................14

Pradeshik Co-operative Dairy Federation Limited...............................................................15

Organization of the society and its membership: ............................................................16

Milk production:......................................................................................................................16

Technical investment services: ............................................................................................16

Establishment of Automatic Milk Collection Unit and Bulk Milk Coolers:......................17

Payment for the milk:.............................................................................................................17

Exchange: ...............................................................................................................................17

Automatic packing machines for packing of the curd in cups:...................................18

Establishment of milk booths:...............................................................................................18

Marketing of open milk through automatic milk vending machines: ..........................18

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 Door to door sale services of milk and milk products:.....................................................19

Quality assurance: .................................................................................................................19

Employee’s welfare scheme: ..............................................................................................19

No. of Cooperative Unions ........................................................................................... 19

No. of Dairy plants ........................................................................................................ 19

Capacity ........................................................................................................................ 19

Milk Product Range: ..............................................................................................................20

Organization structure ..............................................................................................................21

Aims and Objectives of the Organization.............................................................................22

Cooperative Structure of the Indian Dairy Industry .............................................................24

State Federation (Cooperative Milk Marketing Federation)..........................................24

District Union (District-Level Cooperative Union)..............................................................25

Village Society(Dairy Cooperative Society [DCS]) ..........................................................25

Co-operative milk producer’s union ......................................................................................26

Co-operative Milk Producers Union / Dugdh Utpadak Sahkari Sangh Ltd..................26

Objective Of The Milk Co-operative Societies..................................................................26

Qualification For Membership To The Milk Co-operative Societies...............................27

Principles Of Co-Operatives.................................................................................................27

Principles of Co-operation ............................................................................................. 27

Three Tier Structure of Milk Co-operatives.................................................................... 28

Functions of Primary Milk Producer’s Cooperatives...................................................... 28

Milk Federation Level .................................................................................................... 28

Responsibilities of Milk Federations .............................................................................. 28

Technical Input Facilities ............................................................................................... 29

Duties of Primary Milk Producer’s Societies.................................................................. 29

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Role of Milk Societies in Rural Economy....................................................................... 29

Economic Effects .......................................................................................................... 29

Social Effects ................................................................................................................ 30

Predominant Cow Breeds ............................................................................................. 30

Predominant Buffalo Breeds ......................................................................................... 31

Overview of dairy processing ........................................................................................ 31

Primary production and dairy processing:............................................................................31

Dairy structure and trend: ........................................................................................................32

Dairy structure and machinery:...............................................................................................33

Reception of milk ...................................................................................................................34

The process of reception includes:- .............................................................................. 34

Quality......................................................................................................................................34

Weight......................................................................................................................................35

Composition of milk and presence of additives ..............................................................35

Sampling..................................................................................................................................35

Chilling of Milk.........................................................................................................................36

Pasteurization Plant ...................................................................................................... 36

Condensation Plant ....................................................................................................... 37

2. Determination of milk acidity: ..........................................................................................39

3. Alcohol test: .....................................................................................................................40

4. Clot-on-boiling test: .........................................................................................................40

5. Butterfat determination:...................................................................................................40

6. Determination of milk specific gravity: ............................................................................40

7. Determination of milk specific gravity: ............................................................................41

8. Determination of total solids (TS) and solids-not-fat (SNF) in milk:..............................41

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 9. Determination of moisture content of butter:..................................................................41

Procurement And Input Department.................................................................................42

Cattles on vaccination camp .............................................................................................43

Major strategies of Parag: ........................................................................................................44

Training of the farmers: .............................................................................................................46

Medication and Vaccination:.................................................................................................48

Procurement of milk from the following societies. ......................................................... 51

Hariharpur Village ......................................................................................................................51

Gardhi Village ............................................................................................................................52

Kedora Village............................................................................................................................53

Rehmat nagar Village: .............................................................................................................55

Malauli Village............................................................................................................................56

Other Societies ...........................................................................................................................57

Marketing department: .................................................................................................. 58

Conclusion .................................................................................................................... 60

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Introduction

Dairy Scenario in India:

Indian dairy is emerging as a sunrise industry. India represents one of the world’s
largest and fastest growing market for milk and milk products due to increasing
disposable incomes among 275 millions strong middle class. The reason being, that it is
rural based, land saving and gender neutral, composed of the crop production to offer
more favorable opportunities of employment. Dairy farming provides substantial source
of the landless labor as well as marginal farmers.

During the last 25 years, we have moved from a situation of scarcity and rationing of
milk to a scenario in which dairying proves to be a sure path of rural development. As
per capital availability of milk has been increasing at a rate faster than that of the
increasing population. The large and rising domestic demand for both milk and milk
products with an expanding middle income group, there exists a market for value added
products, especially in cities and towns. There are also the possibilities of covering
surplus into conventional milk products.

Modern Scientific processing technology and managerial incursion are opening up best
opportunities in processing and marketing of various kinds of value added milk products
like flavoured milk, ice cream, cheese and other such delicacies.

The emerging consumption patterns present new challenges for the dairy industry. The
strategy is now shifting from distribution to sales and marketing. Extreme permissibility’s
of milk and possibilities of its contamination necessitate rapid movement of milk difficult.

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Role of Dairying in Indian Economy

It is well established fact that India is basically an agriculture country. Majority of its
population lives in villages, whose primary occupation is agriculture. For farmers,
dairying is a subsidiary source of income. It plays an important role in the agriculture
economy.

1. Dairying fits in well in diversified programs. It is highly recommended to have

diversification of many forms. This diversification will help to use the farm labor
efficiently. Dairying will be one such diversified activity on a farm. In addition to
this, it will be possible to have economic use of buildings and equipments. Since
it is always a risk to have only one source of income, dairying helps in having an
alternative source of income to farmers.

2. Milk animals are efficient consumers of roughages. The difficult types of

roughages such as paddy, straws, wheat straws etc, sometimes go waste on
farms. If the farmers has dairying, these roughages can easily and efficiently be
converted into most nutritious milk

3. Dairying provides a stable income: The most of the agriculture produce show
great fluctuation. The price of dairy products does not show such wide range of
fluctuation in their prices.

4. Income is distributed throughout the year: If the farmers depend only on

agriculture, he would be receiving income from his farm only on harvesting the
crop. This would mean that the income of the farmers would only be seasonal,
since the produce from a dairy animal is distributed almost throughout the year.

5. Dairying aids in the maintenance of soil fertility

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Operation Flood:

A recent World Bank audit shows that of the Rs 200 crores it invested in Operation
Flood II, the net return into the rural economy has been a whopping Rs 24,000 crores
per year over a period of ten years, or a total of Rs 240,000 crores in all. No other major
development program has matched this input-output ratio.

Operation Flood, launched in 1970, has been instrumental in helping the farmers mould
their own development. It is helping reach milk to consumers in 700 towns and cities
through a National Milk Grid. It also helped eradicate the need for middlemen thereby
reducing the seasonal price variations. As a result of the cooperative structure the
whole exercise of production and distribution of milk and milk products has become
economically viable for farmers to undertake on their own. In this manner the farmer
himself can enjoy the fruits of his own labor, instead of surrendering a majority of the
profit to corrupt middlemen.

The operation flood was carried out in three different phases of development namely:-

¾ Phase I
¾ Phase II
¾ Phase III

Three Phases of Development:

The scheme sought to establish milk producers' cooperatives in the villages and make
modern technology available to them. The broad objectives are to increase milk
production ("a flood of milk"), augment rural incomes and transfer to milk producers the
profits of milk marketing which are hitherto enjoyed by well-to-do-middlemen.

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Phase I 

Phase I of Operation Flood was financed by the sale within India of skimmed milk
powder and butter oil gifted by the EC countries via the World Food Program. As
founder-chairman of the National Dairy Development Board (NDDB) of India, Dr Kurien
finalized the plans and negotiated the details of EEC assistance. He looked after the
administration of the scheme as founder-chairman of the erstwhile Indian Dairy
Corporation, the project authority for Operation Flood. During its first phase, the project
aimed at linking India's 18 best milksheds with the milk markets of the four metropolitan
cities of Delhi, Mumbai, Calcutta and Madras.

Phase II 

Phase II of the project, implemented during 1981-85 raised this to some 136 milksheds
linked to over 290 urban markets. The seed capital raised from the sale of WFP/EEC
gift products and World Bank loan had created, by end 1985, a self-sustaining system of
43,000 village cooperatives covering 4.25 million milk producers. Milk powder
production went up from 22,000 tons in the pre project year to 1,40,000 tons in 1989,
thanks to dairies set up under Operation Flood. The EEC gifts thus helped to promote
self-reliance. Direct marketing of milk by producers' cooperatives resulting in the
transfer of profits from milk contracts --increased by several million liters per day.

Phase III 

Phase III of Operation Flood (1985-1996) enabled dairy cooperatives to rapidly build up
the basic infrastructure required to procure and market more and more milk daily.
Facilities were created by the cooperatives to provide better veterinary first-aid health
care services to their producer members.

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Far reaching consequences 

¾ The year 1995-96 marked the termination of Operation Flood III, funded by a
World Bank loan, EEC food aid and internal resources of NDDB. At the
conclusion of Operation Flood III, 72,744 DCSs in 170 milksheds of the country,
having a total membership of 93.14 lakh had been organized. The targets set
have either been effectively achieved or exceeded. However, procurement
targets could not be reached as private agencies started procuring milk from the
cooperative villages, following the new delicensing policy under the
Government's program of economic liberalization.

¾ The conditions for long-term growth in procurement have been created. An

assured market and remunerative producer prices for raw milk, technical input
services including AI, balanced cattle feed and emergency veterinary health
services have all contributed to sustained increases in milk production. Three
state-of-the-art dairies designed to produce quality products for both the
domestic and export markets have been commissioned.

¾ While the demand for milk was rising under Operation Flood the total cattle
population remained more or less static. If milk production had to be increased

• The buffalo and milk breeds of cattle had to be upgraded.

• Non-descript cows had to be crossbred with exotic semen to increase their

milk production to make them more efficient converters of feed

Parag: The origin

The mighty Ganges at it's origin is but a tiny stream in the Gangotri ranges of the
Himalayas. Similar is the story of parag which inspired 'Operation Flood' and heralded

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the 'White Revolution' in India. It began with 20 liters of milk per day, nothing but a
trickle compared to the flood it has become today. Today parag collects, processes and
distributes over a million liters of milk and milk products per day, during the peak, on
behalf of more than a thousand village cooperatives owned by half a million farmer
members. Further, as Ganga-ma carries the aspirations of generations for moksha,
parag too has become a symbol of the aspirations of millions of farmers. Creating a pattern of
liberation and self-reliance for every farmer to follow

The start of a revolution:

The revolution started as awareness among the farmers that grew and matured into a
protest movement and the determination to liberate them. Income of the farmers was
derived almost entirely from seasonal crops. The income from milk buffaloes was
undependable. The marketing and distribution system for the milk was controlled by
private traders and middlemen. As milk is perishable, farmers were compelled to sell it
for whatever they were offered. Often, they had to sell cream and ghee at throwaway
prices. In this situation, the one who gained was the private trader. Gradually, the
realization dawned on the farmers that the exploitation by the trader could be checked
only if marketed their milk themselves. In order to do that they needed to form some sort
of an organization. This realization is what led to the establishment of the PARAG
DAIRY which was formally registered on MARCH 23, 1938

There is no sphere of economic activity to which the principles of cooperation can not
be applied. Milk is produced in the rural areas by small, scattered individuals farmers,
who face problems related to the production as well as marketing of milk. The most
common mode of disposal of milk, though less remunerative is to convert milk into Ghee
and Khoa. In the absence of adequate storage facilities these products are sold at very
low price due to the fact that milk & milk products are perishable commodities. Individual
producer finds it difficult to sell his produce at reasonable price because lack of
resources. This leads to exploitation of milk producers by the middleman. In order to
eliminate middleman and provide remunerative prices for the milk to produces

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Cooperative Dairying came into to existence. For the farmers to form cooperative
societies a sum of Rupees was provided in the first five year plan.

The second plan was drawn up more or less on the pattern of first five year plan. The
emphasis on cooperative farming, production and marketing etc. was given on much a
broaden perspective in the subsequent plans. This ever increasing sense of cooperation
let to the development of milk unions and milk supply societies.

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Company Profile

Name : Lucknow Pradeshik Cooperative Dairy Federation

Brand Name : Parag

Motto : Pure, Natural, Good and Healthy

Introduction: 

Lucknow Pradeshik Co-operative Dairy Federation came into being on 23rd March, 1938
via Registration No. 257. The capital invested was only Rs. 100/- and 220 liters of milk.

Today, over 2 lakh liters of milk is handled in the co-operative production unit and its
annual turnover is Rs. 50 crores. Its present share from state government is 2.21 crores
and from committees is 52.60 lakhs.

Established : 1938

Registration : 23rd March, 1938

First Dairy Inspector : Mr. N. K. Bhargav

Mode of Capital : State Govt. of 90%, Cooperatives 10%

Location : At present- 22, Jopling Road, Lucknow

Area of Distribution : Initially,Bakshi ka Talab, Tewariganj &Gossainganj

Presently : The entire district

Initial Investment : Rs. 100/-

Board of Directors : Mr. Gopal Lal Bandya

Mr. Nirmal Chandra Chaturvedi

Mr. Tej Shankar

Mr. Pushkar Nath Bhatt

In spite of several setbacks and hurdles, the Lucknow Pradeshik Cooperative Dairy
Federation has steadily progressed from strength to strength. Operation flood Phase II,

Page 14
which was implemented in Uttar Pradesh, in the year 1983 – 1984 provided the much
needed impetus to the co-operative, for the past few years, Lucknow Pradeshik Co – operative
Dairy Federation has mentioned it as lead in among the states co – operative in areas
as diverse as distribution, handling and revenue.

Pradeshik Co-operative Dairy Federation Limited

P.C.D.F Ltd. is more than four decades old in the Indian Dairy Industry. A quasi
government organization in the cooperative sector, it is the leading organization in the
dairy sector of Northern India.

To forge a direct link between the producer and the ultimate consumer a three tier co-
operative structure has been evolved comprising of primary societies at the village
level, Milk union in the district level & Federation at the State level.

The rural milk co-opertaives draw their inherent strength from the farmers’ committed
participation. More than 5.91 lacs rural milk producer families of 12500 village level
dairy co-operatives reaffirm their faith by selling surplus milk to P.C.D.F.

Encouraging rural poor in dairying is a priority with P.C.D.F and through its consistent
efforts; P.C.D.F has ensured that the rural masses remain an indispensable part of
dairying.
Parag dairy is working under “Pradeshik cooperative dairy federation limited”,
established on 23 March, 1938 and inaugurated by late “shri Gopal lal pandya”. First
day of the working of the union started with 20 liter of the milk and rupees 100 of the
working capital. Till 60’s milk union had faced various ups and down but the activities of
the same will remain continued despite various constraints. Thereafter the series of the
innovative actions, proper strategies and planning, the milk union has achieved the
capacity of handling of the liquid milk to the tune of 1.50 lakh liters per day. The basic of
this union is to establish the cooperative societies of milk produced by villagers, farmers
are collected in a systematic manner and the same is processed by adopting various
technologies and to supply the milk and milk products to the population living in the city.

Page 15
Organization of the society and its membership: 

It is very pertinent to mention over here that the area of Lucknow district is small to feed
the requirement of the milk because of the fact that the Lucknow is consisting of only 8
blocks and 860 villages and out of which 4 blocks and most of the villages have now
become the part of the Lucknow city which adversely affect the milk production at
villages and the effectiveness of the milk producers.

Milk production:  

The milk federation have started to collect the milk for milk federation Lucknow from the
nearby districts namely sitapur, shahjahanpur, barabanki, raebareilly, sultanpur, gonda,
lakhimpur, basti, bahraich etc, through milk tankers to ensure regular and required
quantity of the milk at milk federation Lucknow.

Now the milk federation Lucknow is working in a very efficient and systematic manner
and also adopted the technological advancement in their day to day working. The milk
federation is producing 36000 kg milk approximately on daily basis, the milk federation
has also diversified their activities by introducing other by-products of the milk.

The success of the project is basically depend on the well being of the of the milk
producers and of their castles for supply of good quality of the milk, the federation has
started various schemes for them i.e. medication for the cattle, fodder for the milk
animals, insurance of the cattle, vaccination etc.

Technical investment services: 

Under “operation flood” various technical services have been made available to deal
with problems like, artificial insemination, infertility, inoculation, vaccination, balanced
diet for cattels, green fodder, and various health programs for animals are provided.
Under the fodder seed scheme the large quantity of the seed are distributed to the
members of the society through society office bearers. The quantity of distribution of
fodder seed has increased year to year. The pilot project of technical investment
services was initially started in 2004-05 under which the societies were established on 6
routes to whom the emergency vetenary services were provided on cost basis, are

Page 16
being provided to milk producers. Simultaneously the cost of the milk is being paid to
milk societies and also to get ensure on low premium to the better quality of the cattle of
the members of the milk producing societies.

Establishment of Automatic Milk Collection Unit and Bulk Milk 

Coolers:  

Under the scheme of pure milk production scheme of government of India and SGSY
scheme started by the state government under which AMCU and BMC to be
established in various milk unions of the district. These schemes have now been started
at various levels and under self financing schemes, various AMCU are being
established under which transparency and reliability of societies is being taken care of.
The number of such units is increasing in a phased manner .The duly of scheme is that
the first installment i.e. 80 percent of the total cost of AMCU will be paid by the society
and the rest amount will be paid by the manufacturing company i.e. in 12 installment by
the milk union and the same will be recovered from the milk societies in 48 installments.
Along with this cooler units are also proposed to be established.

Payment for the milk: 

Lucknow milk union is making the regular payment of the cost of the milk to milk
societies on regular basis, apart from this milk union used to pay dividend to milk
societies and out of of the net profits earned by the lucknow milk union . lucknow milk
union is trying to implement the scheme under which the milk producers are linked with
banks to facilitate payment of the cost of the milk to milk producers through bank
accounts.

Exchange: 

The aim of the lucknow milk union is to pay the reasonable cost of the milk to milk
producers to rural areas without any mediators on the other hand and also to provide

Page 17
the quality milk to the consumers of urban areas at a reasonable price, in this way
lucknow milk union is taking care of the interest of rural and urban population in efficient
manner.

The lucknow milk union is supplying different qualities of milk i.e. toned, whole, janta
milk, homogenized standard milk and also other milk product i.e. ghee, butter, curd,
peda, mattha, flavored milk etc. On daily basis the popularity of the products of the milk
union among the consumers is increasing day by day. The Lucknow milk union ensures
the quality of the product to the satisfaction of the consumer.

The milk federation also sets up milk testing camps in different colonies and important
places of the city to generate awareness among the consumers and to attract more
consumers for parag milk and its products.

Automatic packing machines for packing of the curd in cups:       

Lucknow milk union have since established the automatic curd packing machines
keeping in mind the demand of the consumers, thousands of the curd packing cups are
being packed and being made available to the consumers through various milk booths.

Establishment of milk booths:   

Lucknow milk union has established various milkbars mainly at railway station, jal
sansthan, bhootnath mandir irrigation department, urdu academy etc, to sell the parag
products. The results of such booths are very satisfactory.

Marketing of open milk through automatic milk vending machines:  

Milk union has established automatic vending machines in lucknow city on the pattern of
the milk vending machines established by mother dairy in delhi. Milk union is proposing
to supply the open standard milk to the consumers through F.R.P. tanks using three
wheeler to provide employment to umemployed youth.

Page 18
Door to door sale services of milk and milk products:  

Lucknow milk union has identified star agents on commission basis for supply of the
milk and milk products door to door .In this way the milk union provide employment to
unemployed youth.

Quality assurance:  

To ensure the assured quality of the milk, the milk union has established air conditioned
R.M.R.D(raw milk reception dock) labs with the grant given by U.P. DASP .In the first
step milko testa, milko scan of the milk has been computerized which is working
satisfactory .Apart from this the laboratory is equipped with state-of-the-art equipment
which includes laminar flow,apparatus, phase contrast microscope and B.R. apparatus
are the main instruments, simultaneously is trying to get ISO 9000, ISO 14000 AND
H.A.C.C.P. certification.

Employee’s welfare scheme:  

Management of lucknow milk union has been taking a number of steps for the welfare of
their workers. Employees are being provided help through the Employee Welfare Funds
in case of accidents, cancer, heart attack, paralysis etc. They are felicitated with a
farewell gifts at the time of retirement. All these facilities are also available to the
officers/ employees of P.C.D.F. if they retire from the federation itself.

In the current year, under the payment of bonus act 8.33 percent bonus is given to the
employees. The employees are also given dearness allowance as announced by the
state government as well as benefits of gratuity and job on compassionate grounds to
the dependent of the deceased employee.

No. of Cooperative Unions 30

No. of Dairy plants 16

Capacity 1,680 Thousand Litres per Day

Page 19
Milk Product Range:  

Ghee Milk Cake Paneer ( Cottage cheese)

White Butter Table Butter Skim Milk Powder

Brand: Parag

Page 20
Organization structure

PCDF has ten divisions. Every division has manager who is responsible to general
manager. G.M. of every division is responsible to managing director.

The division heads of each division shall the responsible for the performance and of
their respective division not only at the head office but also in the units/unions and in the
field. These officers shall not merely insure achievement of the targets fixed and
implementation of system for functional areas but promptly attend to the problems of the
units/unions.

The divisional heads shall discharge their duties with in the policy frame laid down by
the managing director & subject of his control & supervision only important performance
and control reports, policy matters, questions involving exception to approved policy,
system development and other important matters need to be put up before the
managing director.

Will before approval & implementation be routed through the management service
division, which will check the plan to see whether they are in conformity with corporate
objective, and will see that they are in conformity with other plans and systems and no
contradiction occurs.

The divisional heads should see the terms made by them and their officers and
adequate and purposive and designate link officers for each officer in their division. All
letters to the NDDB shall before dispatch, be sent to the MSD which take speedy
clearance at the appropriate level. A copy of all such letters shall be the CPM section of
the MSD.

Page 21
Aims and Objectives of the Organization

Dairy development program aims at raising the level of rural milk producers, providing
them with convenient marketing facilities at their door step, as well as good quality milk
and milk products to the consumers, particularly the urban areas at a reasonable price.
Dairying also provides effective supplement to agriculture, especially for the weaker
sections of society in the rural areas. Adequate provision has been made for technical
and attendant services, such as artificial insemination, animal health, fodder, seeds,
green fodder and nutritive cattle food.

• Evaluation of the standard and quality of milk and milk products to be marketed
by the federation.

• Recommending specification for increasing productivity of milk producers and

related milk societies and members of milk union.

• To provide encouragement incentives on production, procedure, processing and

marketing activities of milk products for the economic development of farmer
community.

• To improve livestock health and disease control facilities by providing veterinary

services, artificial insemination and animal health services to help Co-operative
milk unions to achieve this objective.

• To encourage market and research and development programs.

• To help members of milk unions in technology, administrative and financial

assistance.

Page 22
• To arrange collection, storage and transportation of milk and milk products.

• To encourage activities related to development and extension of dairy industry.

To improve the economic status and condition of the milk producers and dairy
industry.

• To establish collection and refrigeration centers, liquid milk units and processing
facilities for distribution and sale of items purchased from various sources.

• “AMUL” products still have to face very tough competition in Lucknow with
PARAG due to the efficient distribution network of the marketing division of the
PCDF.

Page 23
Cooperative Structure of the Indian Dairy Industry

State Federation (Cooperative Milk Marketing Federation) 

Made up of all the cooperative milk producers' unions in a state, a state federation is
responsible for marketing the milk and milk products of member unions. Some
federations also manufacture feed and support other union activities.

Page 24
District Union (District‐Level Cooperative Union) 

Owned by dairy cooperative societies, a district cooperative milk producers’ union buys
all its member societies' milk, then processes and markets the milk and milk products.
Most unions also provide a range of inputs and services to local dairy cooperative
societies and their members, including feed, veterinary care, and animal husbandry, to
sustain the growth of milk production and the cooperatives' business. Union staff train
and provide consulting services to support dairy cooperative society leaders and staff.

Village Society (Dairy Cooperative Society [DCS]) 

Village dairy cooperative societies (DCS) are formed by individual milk producers or
dairy farmers. Any farmer can become a member by buying a share and committing to
sell milk only to that society. Each society has a milk collection center where members

Page 25
take milk every day. Each member's milk is tested for quality with payments based on
the percentage of fat and non-fat solids. At the end of each year, a portion of the
society’s profits is used to pay each member a patronage bonus based on the total
quantity of milk processed.

Co-operative milk producer’s union

Co‐operative Milk Producers Union / Dugdh Utpadak Sahkari Sangh 

Ltd. 

1. Collection of milk from many societies.

2. Develop processing manufacturing and storage facilities.

3. Organize dairy extension activities.

4. Organize available technical inputs for its primary societies i.e.; cattle
feeds, A.I facilities, Green Fodder seeds, vaccination etc.

5. Organize consumer oriented marketing system for milk and milk

products.

Objective of the Milk Co‐operative Societies 

i. To undertake activities necessary for clean and quality milk production and
increase permitted animals to give necessary guidance and assistance to the
members/producers to carry out these activities.

ii. Organize milk collection, testing and payment to the producers.

Page 26
 iii. Organize marketing facilities for milk from members.

iv. Provide leadership for various economic and social activities.

Qualification for Membership to the Milk Co‐operative Societies 

1. He is a resident of the village and has completed 15yrs of age and is

competent to contact.
2. He rears buffalo/cow for milk production.
3. He has taken at least one share and paid an entrance fee of Rs.1.
4. He is new in the business of milk and milk products.
5. He has agreed to supply milk to the society.
6. He is not bankrupt or is not legally disabled.
7. He is not criminally convicted for moral turpitude.

Note : There are milk co-operative societies functional by which litres of milk per
day is received to the milk union through milk routes in different areas of the
district by milk vans.

Principles of Co‐Operatives 

Co-operative regime is an institution in which human beings voluntarily fulfils his

economic self interests through mutual cooperation on equality basis.

Cooperation not only includes a feeling of help and unity but also generates love,
security, joy, sympathy, reverence and compassion in the society.

Principles of Co-operation

1. Voluntary and Active membership

2. Democratic control

Page 27
 3. Interest on share capital
4. Sharing of Profits
5. Development of Education
6. Mutual Co-operation

Three Tier Structure of Milk Co-operatives

Level – 1 :- Primary Milk Producer’s Cooperatives

Level – 2 :- District Milk Producer’s Cooperative Union

Level – 3 :- State Milk Producer’s cooperative Federation

Functions of Primary Milk Producer’s Cooperatives

1) Formulating By-laws.
2) Management of Milk Committee
(a) General Body
(b) Managing Committee
3) Formation of Committee
4) Milk Collection and arrangement of transportation

Milk Federation Level

1) General Body
2) Managing Committee
3) CEO/Gen. Manager/In charge/Workmen.

Responsibilities of Milk Federations

¾ Arranging financial inputs for the formation and functioning of Committees.

¾ Arranging transportation of milk.
¾ Arranging infrastructure for milk processing and its marketing
¾ Payments of milk producers.
¾ Arranging technical inputs for the Societies.
¾ Training programs for proper functioning of Societies.
¾ Implementation of State and National level projects.

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Technical Input Facilities

1) Balanced feed for milk cattle.

2) Arranging green fodder for milk cattle.
3) Providing emergency veterinary services.
4) Provision of primary veterinary services.
5) Vaccination of cattle.
6) Arranging artificial insemination for improved breeding of cattle.
7) Publicity and Extension of services.

Duties of Primary Milk Producer’s Societies

1) Enrolling milk producers as members

2) Arranging milk collection and milk testing
3) Arranging payments for the procured milk
4) Implementation of technical inputs run by the milk federation.
5) Any other work assigned by the Federation.

Role of Milk Societies in Rural Economy

1) Promotion of Animal Husbandry

2) Promotion of Dairy
3) Women welfare and self reliance
4) Augmentation of social and economic benefits

Economic Effects

1) Direct profits from sale of milk.

2) Employment generation
3) Economic upliftment through technical inputs
4) Dividend and Bonus
5) Cattle insurance
6) Earnings from cow dung
7) Profits from sale of cattle
8) Indirect gains from Projects.

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Social Effects

1) Incentive to weaker sections

2) Spread of education
3) Generation of employment
4) Dissemination of scientific and technical knowledge
5) Building general awareness
6) Community development
7) Economic self reliance

Predominant Cow Breeds

1) Sahiwal
2) Red Sindhi
3) Gir
4) Jersey
5) Brown Swiss
6) Yorkshire
7) Holstein Friezen
8) Haryana

Page 30
Predominant Buffalo Breeds

1) Murrah
3) Neeli Ravi
4) Surti
5) Mehsana
6) Jaffarabadi
7) Nagpuri
8) Tarai

Overview of dairy processing

Primary production and dairy processing:

The dairy industry is divided into two main production areas:

Page 31
 • The primary production of milk on farms—the keeping of cows (and other
animals such as goats, sheep etc.) for the production of milk for human
consumption;
• The processing of milk—with the objective of extending its saleable life. This
objective is typically achieved by (a) heat treatment to ensure that milk is safe
for human consumption and has an extended keeping quality, and (b)
preparing a variety of dairy products in a semi-dehydrated or dehydrated form
(butter, hard cheese and milk powders), which can be stored.

Dairy structure and trend:

Dairy processing occurs world-wide; however the structure of the industry varies from
country to country. In less developed countries, milk is generally sold directly to the
public, but in major milk producing countries most milk is sold on a wholesale basis. In
Ireland and Australia, for example, many of the large-scale processors are owned by
the farmers as co-operatives, while in the United States individual contracts are agreed
between farmers and processors. Dairy processing industries in the major dairy
producing countries have undergone rationalization, with a trend towards fewer but
larger plants operated by fewer people. As a result, in the United States, Europe,
Australia and New Zealand most dairy processing plants are quite large.

Plants producing market milk and products with short shelf life, such as yogurts, creams
and soft cheeses, tend to be located on the fringe of urban centres close to consumer
markets. Plants manufacturing items with longer shelf life, such as butter, milk powders,
cheese and whey powders, tend to be located in rural areas closer to the milk supply.
The general tendency world-wide, is towards large processing plants specializing in a
limited range of products. There are exceptions, however. In Eastern Europe for
example, due to the former supply-driven concept of the market, it is still very common
for ‘city’ processing plants to be large multi-product plants producing a wide range of
products.

Page 32
The general trend towards large processing plants has provided companies with the
opportunity to acquire bigger, more automated and more efficient equipment. This
technological development has, however, tended to increase environmental loadings in
some areas due to the requirement for long-distance distribution.

Basic dairy processes have changed little in the past decade. Specialized processes
such as ultra filtration (UF), and modern drying processes, have increased the
opportunity for the recovery of milk solids that were formerly discharged. In addition, all
processes have become much more energy efficient and the use of electronic control
systems has allowed improved processing effectiveness and cost savings.

Dairy structure and machinery:

The organization is equipped with sophisticated plants and machinery to manufacture

the various milk products on a big scale.

P.C.D.F. has also the distinction of having the most sophisticated and fully
computerized first vertical dairy in Noida. This is a state-of-the-art project with its various
sections located in the basement and three floors of the building.

A well equipped Central Quality Control Laboratory is based at Lucknow which checks
the organoleptic chemical & microbiological quality of the products.

Page 33
Reception of milk 

Reception Dock

Here decision regarding the acceptance of milk is taken for further processing. Since
the future processing of milk mainly depends upon its quality, the decision of accepting
the milk, must be made very carefully.

The process of reception includes:-

• Unloading
• Sampling
• Testing
• Weighing & Recording

Quality 

Before weighing the milk, its quality should be checked. Taste and smell are good
preliminary indicators of milk quality, and visual observation can also be useful. If the
person receiving the milk suspects that it is of poor quality, he or she can carry out one
of the following tests: acidity, pH, alcohol and clot-on-boiling. These will determine the

Page 34
quality of the milk. Once the person receiving the milk is satisfied with its quality, it can
be weighed and the weight recorded.

Weight 

The quantity of milk received can be estimated either volumetrically or gravimetrically.

Milk processors usually base payments for milk on its solids content, and hence it is
more appropriate to use weight to estimate the quantity of milk being tendered.

In a small-scale processing centre a spring balance and a stainless-steel bucket can be

used to weigh milk. The milk weight must be recorded accurately as losses can be
incurred or underpayments made to suppliers if care is not taken at this stage.

Composition of milk and presence of additives 

A dairy engaged in butter-making will need to base its payments on the butterfat content
of the milk. The milk received will have to be sampled for butterfat analysis. The
procedure for this is dealt with below. Spot checks can also be carried out to test for
added water and the presence of neutralisers if malpractice is suspected.

Sampling 

A representative sample is essential for accurate testing. Milk processors usually pay
for milk or cream on the basis of butterfat analysis, and a single butterfat test may be
used to determine the butterfat content of thousands of litres of milk or cream.
Therefore, an accurate and representative sample must be obtained.

Milk must be mixed thoroughly prior to sampling and analysis to ensure a representative
sample. If the volume of milk is small, e.g. from an individual cow, the milk may be
poured from one bucket to another and a small sample of milk taken immediately. But if
large volumes of milk are handled, the milk or cream must be mixed by stirring.
However, it is very difficult to obtain a representative sample of milk or cream when a
large volume is dumped into a large container. In such a case the milk must be stirred
thoroughly and small samples taken from three or more places in the container. For

Page 35
best results, milk or cream must be sampled when it is at a temperature between 15
and 32°C. If the cream is too cool it will be thick and viscous and will be difficult to
sample.

Sour milk or cream, in which casein has coagulated, must be sampled frequently.
Sampling sour milk follows the same procedure as for fresh milk. If the milk or cream
has been standing for a long time and a deposit has formed on the surface and sides of the
container, it should be warmed while agitating before a sample is removed.

For certain analyses, milk samples can be preserved and stored to await analysis.
Samples of milk or cream for butterfat analysis can be preserved using formalin,
corrosive sublimate or potassium dichromate. For general analyses, formalin is
preferred, because the other two increase the solids content of the milk, influencing total
solids determination.

Chilling of Milk 

After reception of raw milk it is chilled to sufficiently low temperature so that the growth
of micro organism present in the milk is checked.After reception of good quality of raw
milk to sufficiently low temperature so that the growth of micro organism present in the
milk is checked. In this process the temperature of milk should be reduced to less than
10 deg.C preferably 3.4deg.C.

Pasteurization Plant

Page 36
The process of heating every particle of milk and milk products to at least 63deg.C and
holding at such temperature continuously ate least 30 min. or heating it to least
71.5deg.C and holding at such temperature continuously for tat least 15 seconds. All
pasteurized and milk products shall be cooled immediately to a temperature of 10deg.C
or less shall be maintained at that temperature until delivery. Here after pasteurization
takes place where every particle of milk is heated to at least 63o.C and held at such
temperature continuously for at least 30 minutes
All pasteurized milk is cooled immediately to a temperature of 10oC or less & shall be
maintained at that temperature until delivery.

Condensation Plant

Refrigeration department Boiler house

The various temperatures needed throughout the processing of milk is regulated with
the help of this condensation plant and its two prime sections

• Refrigeration Department
• Boiler house

Page 37
Laboratory Testing for Quality Control

Incubator & Hot Air Sterilizer (oven)

Milk collected from the village co-operative societies, goes through 23 stringent quality
tests before being packed as liquid milk or converted into various products and
dispatched for sale.

The quality checks include:-

9 Cleanliness
9 Foreign Particles
9 Organoleptic test
9 Soda test
9 Alcohol test (for freshness)
9 Urea test
9 Glucose
9 Sugar
9 Salt
9 Hydrogen Peroxide
9 Formalin
9 Starch
9 Sodium Thiosulphate

Page 38
 9 Mineral Oil Test (M.O.T)
9 B.R. Reading (for refined oil)
9 Milk Acidity (for sourness of milk)
9 Clot on Boiling
9 Phosphate test (for proper pasteurization of milk to ensure 100% death of
disease causing bacteria)
9 Milk Fat
9 Milk S.N.F (solid not fat)
9 M.B.R.T test (for shelf life)
9 Standard Plate Count
9 Coli form Count (count of disease causing bacteria)

1. Estimation of milk pH by Indicator

A rough estimate of pH may be obtained using paper strips impregnated with an

indicator. Paper strips treated with bromocresol purple and bromothymol blue are
sometimes used on creamery platforms as rejection tests for milk. Bromocresol purple
indicator strips change from yellow to purple between pH 5.2 and 6.0, while
bromothymol blue indicator papers change from straw yellow to blue-green between pH
6.0 and 6.9.

Electrometric measurement of pH

Electrometric determination of pH depends on the potential difference set up

between two electrodes when they are in contact with a test sample. A reference
electrode whose potential is independent of the pH of the solution and an
electrode whose potential is proportional to the hydronium ion concentration of
the test sample are used. Saturated calomel electrodes are usually used as
reference electrodes, and glass electrodes are used to measure pH.

Instruments which measure the current produced by the difference in potential

between the glass and calomel electrodes are called pH meters.

2. Determination of milk acidity:

Page 39
The production of acid in milk is normally termed "souring" and the sour taste of such
milk is due to lactic acid. The percentage of acid present in dairy products at any time is
a rough indication of the age of the milk and the manner in which it has been handled.
As mentioned earlier, fresh milk has an initial acidity due to its buffering capacity.

3. Alcohol test:

The alcohol test, together with the acidity test, is used on fresh milk to indicate whether
it will coagulate on processing. Milk that contains more than 0.21 % acid, or calcium and
magnesium compounds in greater than normal amounts, will coagulate when alcohol is
added

4. Clot-on-boiling test:

Acidity decreases the heat stability of milk. The clot-on- boiling test is used to determine
whether milk is suitable for processing, as it indicates whether milk is likely to coagulate
during processing (usually pasteurisation). It is performed when milk is brought to the
processing plant — if the milk fails the test it is rejected.

The test measures the same characteristics as the alcohol test but is somewhat more
lenient (0.22 to 0.24% acidity, as opposed to 0.21 % for the alcohol test). It has the
advantage that no chemicals are needed. However, its disadvantage is that at high
altitude milk (and all liquids) boils at lower temperature and therefore the test is even
more lenient

5. Butterfat determination:

The main tests used to determine the fat content of milk and milk products are the
Gerber and Babcock tests. Automated methods for testing milk are now used in central
laboratories and at large processing centres.

6. Determination of milk specific gravity:

Specific gravity is the relation between the mass of a given volume of any substance
and that of an equal volume of water at the same temperature.

Page 40
Since 1 ml of water at 4°C weighs 1 g, the mass of any material expressed in g/ml and
its specific gravity (both at 4°C) will have the same numerical value. The specific gravity
of milk averages 1.032, i.e. at 4°C 1 ml of milk weighs 1.032 g.

Since the mass of a given volume of water at a given temperature is known, the volume
of a given mass, or the mass of a given volume of milk, cream, skim milk etc can be
calculated from its specific gravity. For example, one litre of water at 4°C has a mass of
1 kg, and since the average specific gravity of milk is 1.032, one litre of average milk will
have a mass of 1.032 kg.

7. Determination of milk specific gravity:

Specific gravity is the relation between the mass of a given volume of any substance
and that of an equal volume of water at the same temperature.

Since 1 ml of water at 4°C weighs 1 g, the mass of any material expressed in g/ml and
its specific gravity (both at 4°C) will have the same numerical value. The specific gravity
of milk averages 1.032, i.e. at 4°C 1 ml of milk weighs 1.032 g.

Since the mass of a given volume of water at a given temperature is known, the volume
of a given mass, or the mass of a given volume of milk, cream, skim milk etc can be
calculated from its specific gravity. For example, one litre of water at 4°C has a mass of
1 kg, and since the average specific gravity of milk is 1.032, one litre of average milk will
have a mass of 1.032 kg.

8. Determination of total solids (TS) and solids-not-fat (SNF) in milk:

9. Determination of moisture content of butter:

Page 41
10. Preparation & Packing of Milk & Milk Products

Procurement and Input Department 

Procurement and Input is one of the two most important functions of P.C.D.F other than
Marketing. While marketing deals with the consumers, P&I deals primarily with the
village level societies or the most important members of the federation – The Milk
Producers & Suppliers.

As we can see this department is in charge of two separate activities viz.

• Procurement
• Input

Procurement: The process of procurement includes all the activities involved from
milking the animal and getting the milk to the society’s collection point to the testing,
approving and carrying that milk till the factory for marketing.

Page 42
Input :

Cattle on vaccination camp 

The small rural milk producers have several problems. The major problems faced by the
farmers include small herd strengths, small land holdings, shortages of green and dry
fodder, low productivity of animals, non availability of timely inputs for breeding, feeding
and health care of animals, lack of suitable education/training for skill development for

Page 43
new viable and sustainable technology, inadequate finances, poor rural infrastructure
facilities and lack of proper marketing support for their produce.

The major thrust areas for Parag include the following:-

• effective animal health and management, including control and eradication of

important animal diseases and "Animal Disease information Service" for farmers

• Providing better quality Artificial Insemination service for breeding of animals

• Support for activities under “Operation flood (milk) program (OF)", including
strengthening of existing viable dairies and rehabilitation of sick dairies.

• Special integrated Dairy Development Projects for hilly and backward districts.

• Improving data-base on production of milk and reproduction capacity per animal

to facilitate better planning and forecasting of issues and activities.

• Intensified research on milk products with particular emphasis on " indigenous

milk products " and with particular reference to products suitable for the utilization
of buffalo milk .

• Encouraging milk production through commercial herds and for providing 'quality'
milk for preparation of value-added products.

• Providing adequate credit for dairy sector

• Strengthening activities for fodder production.

Major strategies of Parag:

• Improving overall efficiency of Bull breeding farms, semen stations. Extension

education of farmers

• Improving natural breeding service for buffaloes.

• Testing of breeding bulls for possibility of their being carriers of communicable

reproductive diseases.

Page 44
• Choosing NGOs, progressive farmers as future trainers and training them for
modern management practices for rearing of dairy animals

• Encouraging the farmers to keep proper breeding records

• Taking the help of local teaching and research institute to identify suitable
fodders, feeding schedules, feeding norms using locally available feed resources
and using this information for extensive education of farmer producers

• Utilizing progressive farmers, NGOs as demonstration farms/points to train the

local farmers in producing good quality fodder or utilizing the available feed and
fodder resources including the knowledge of enriching the poor quality fodder.

• Taking the help of local teaching and research institute to identify suitable fodder
trees that can be locally grown on the bunds of farms by the dairy farmers

• Training farmers to conserve the locally available surplus natural grass Take
catch crops/ relay crops etc during the fallow season immediately after the
harvest of main cereal crop. Identifying suitable farming systems for the purpose
for the local area.

• Training the farmers to conserve and make maximum use of the available cattle
dung and urine produced at the farm for utilization as organic manure .

• Establishment of fodder banks at strategic locations for providing fodder during

emergencies and periods of fodder scarcity.

• Training farmers to use locally available feed ingredients to manufacture their

own cattle concentrate feed rather than depending upon the costly compounded
feeds sold at high costs.

• Improving the state veterinary services particularly with respect to adequate

vaccination cover and disease diagnostic services

• Encourage the farmers to use scientific principles of animal management,

cleanliness and hygiene on dairy farms

• Introduce disease surveillance mechanism in the state and use the available
audiovisual media like radio and Television to inform the farmers well in advance

Page 45
 to take precautions of vaccinations etc. so as to prevent disease occurrence and
minimize the risks

• Introduce livestock health insurance schemes for dairy animals.

Although population of crossbred animals has been increased in a large number,

but due to rearing of dairy animals unscientifically, there was poor productivity of
these animals. It was due to poor health standard, infertility problems, of
infestation worms, non-following of vaccination schedule, imbalanced feeding,
lack of use of mineral mixture and uromol bricks feeding in lean periods. With the
inception of PARAG, this issue was taken up by creating awareness regarding
scientific management of dairy units in the district

Training of the farmers:

To create awareness among the dairy keepers, awareness camps, farmers training
camps, exposure visits and demonstration were conducted to educate the dairy farmers
regarding scientific management, balanced feeding, supplementation with mineral
mixture and adoption of vaccination schedule

Page 46
The dairy keepers were also trained on the following lines on scientific dairy
management:

1). Dairy keepers were advised to incorporate mineral mixture in the feed of dairy
animals @ 1-2%.
2). To prepare feed of their own at village level as far as possible by using local and
cheaper ingredients and balance feed preparation were also demonstrated.
3). To feed dairy animals @ 1 Kgfeed/3 liters milk production in cows and 1 Kg per 2.5 l
in buffaloes.
4). During lean period (May-June, Dec.-Jan.), they were advised to feed uromol bricks
@ 1 brick per animal for 10 days.
5). They were advised to follow vaccination schedule particularly for FMD and BQHS.
6). They were advised to get their animals inseminated through AI and not through
natural service.
7). They were advised to grow nutritive grasses such as setaria and hybrid napier on
the bunds and the fodder trees (Beul, mulberry etc.).

Other than the above, the milk testing kits, AMC units, BMC unit and other equipments
needed to set up a society are all supplied to the members under the Procurement and
Input Department.

Page 47
Medication and Vaccination:

Medication Conditions For Use

Alpha-7 For clostridial or blackleg (must be boostered).

Bar Vac CD-T (Fermicon) Prevents enterotoxemia (overeating disease) and

tetanus.

To immunize healthy yet susceptible animals

against enterotoxemia (overeating disease) and
tetanus caused by the toxins of clostridium
C & D Antitoxin
perfringens types C and D and clostridium tetani.

Penicillin injection for treating bacterial pneumonia

(shipping fever) caused by Pasteurella multocida.
Pen-Aqueaous

For emergency use only in the treatment of

anaphylactic shock.
Epinephrine

For immunization against five strains of leptospira.

Lepto 5

Piliguard Pinkeye For healthy cattle to aid in control and prevention of

pinkeye caused by Moraxella bovis.
(Moraxella bovis
Bacterin)

For treatment of the following bacterial infections in

beef cattle due to penicillin-susceptible micro-
organisms that are susceptible to the serum levels
common to this particular dosage form such as:
Pen BP-48 bacterial pneumonia, upper respiratory infections

Page 48
 such as rhinitis or pharyngitis, and blackleg.

For treatment of bacterial pneumonia (shipping

Pfi-Pen G fever) caused by Pasteurella multocida.

For vaccination of healthy cattle against BRSV,

IBR, BVD and PI-3. Bovine rhinotracheitis-virus
diarrhea-parainfluenza-3-respiratory syncytial virus
Respishield 4 (Triangle 4
vaccine. Killed virus. Recommended for all stages
+ Type IIBVD)
of pregnancy, all ages beef or dairy cattle, all
situations where you can't afford the stress of an
MLV vaccine.

Respishield 4L5 (Triangle Vaccinates against BRSV, IBR, BVD, PI-3 and 5-
9 + Type IIBVD) Way Lepto.

For vaccination of healthy cattle to protect against

infectious bovine rhinotrachetis (IBR), bovine virus
diarrhea (BVD), parainfluenza-3 (PI3), bovine
Respishield 4 (Triangle 4
respiratory syncytial virus (BRSV) and infections
+ HS)
caused by Haemophilus somnus.

For use in healthy cattle for the prevention of

blackleg (CI, chauvoel), malignant edema (CI,
septicum), black disease (CI. novyl), and
Ultrabec 7
Clostridium sordel and Clostridium perfringens
types C and D enterotoxemia.

Page 49
Cattle diseases for which vaccines are available:

1. Cattle viruses such as Bovine Viral Diarrhoea (BVD) and Infectious Bovine
Rhinotracheitis (IBR)

2. Cattle bacteria such as Salmonella spp

3. Cattle parasites, lungworm (husk) (Dictyocaulus viviparus

4. Cattle fungi such as ringworm (Trichophyton verrusosum)

5. Clostridial diseases such as blackleg (Clostridium chauvoei)

6. Cattle pneumonia such as Mannheima spp

7. Calf enteritis such as rotavirus and E.coli

8. Leptospirosis (Leptospira hardjo)

Page 50
Procurement of milk from the following societies

Hariharpur Village

Code : 151

Chairman : Vishwanath Yadav

Secretary : Parmeshwar

Registered on : 9th Sep,1985

The society started with an average milk produce of 6 ltrs per day.At present
approximately 170 ltrs of milk per day is procured by this society

Page 51
Gardhi Village

Chairman : Mr Sushil Kumar

Average milk procured by this society per day is approximately 100 liters

Bulk Milk Cooler Unit (B.M.C.U)

Gardhi is one of the few villages of this district where a B.M.C unit has been installed. A
B.M.C.U is used to cool the milk so it can safely reach the factory without the fear of
curdling. It can cool upto 2000 liters within an hour.

Page 52
Kedora Village

Secretary: Gaya Prasad

Average milk procured by this society is approximately 170 litre per day.

Page 53
Chamartaliya Village

Code: 12

Chairman: Ram chandan

Secretary: Jagat ram

Total members: 201

Average milk procured by this society is approximately 600 litre per day.

Page 54
Rehmat nagar Village:

Code : 010

District : Lucknow

Chairman : Pramod kumar verma

Secretary : Pramod kumar

Total members : 200

Daily collection : 141.6 litre

Page 55
Malauli Village

Mahila Dugdh Utpadak Sahkari Sangh

( Womens dairy co-operative society)

Timings for milk collection : 6:30am – 7:45am

&
7:30pm – 8:30pm

Cost of Milk :

Buffalo – 6.5% fat + 29 on the lactometer

= Rs 15.81

Cow – 4.0% fat + 29 on the lactometer

= Rs 11.56

Page 56
Other Societies

Dadera village: Rajapur (Bakshi ka talab):

( Womens dairy co-operative

Established in : 2001 society)

Established on :1 july,1994
Code : 233
Code : 285
District: Barabanki
District : lucknow
Chairman : Ram dulari
Chairman : pushpa mishra
Secretary : Jagdish
Secretary : Rekha mishra
Members : 45
Members : 42
Daily collection : 120 litre
Daily collection : 80 litres

Saibalpur : Hardoiya village:

Established in : 1994 Code : 02

Code : 139 Established on : 1 June 1983

Disrict : Hardoi District : Lucknow

Chairman : Satya narayan Chairman : Ram naresh Sharma

Secretary : Brijesh Secretary : Prasad

Total members : 35 Total member : 91

Daily collection : 50-60 litre Daily collection : 270

Page 57
Marketing department:

The marketing division of Pradeshik Co-operative Dairy Federation Ltd. is marketing

milk & milk products under a common brand name – PARAG. The clientele includes
several prestigious institutions in U.P. & Delhi besides the Indian Army. The sales
network is spread throughout northern India.
In order to market their products effectively, the marketing division of the federation has
been divided into the following two sub-divisions :–

¾ Liquid Milk Marketing

¾ Milk Product Marketing

These sub divisions are very important because the marketing strategies of both are
entirely different.

Liquid Milk Marketing

At present the liquid milk, under the brand name PARAG is being marketed through
local units/milk union in major cities/motors of U.P. and Delhi under the direction of
P.C.D.F Ltd. Lucknow, Kanpur, Delhi, Varanasi, Meerut are the main centers for
maximum milk demand.
the following types of milk are being marketed by P.C.D.F. Ltd. :–

• Whole milk (full cream) 6% fat 9% S.N.F

Product name : Parag Gold
Available in 500 ml. and 1lt. packs.
• Toned milk 4.5% fat 8.5% S.N.F
Product name : Parag Taaza
Available in 200 ml., 500 ml., & 1lt. packs.
• Janta Milk/Skimmed Milk 0.5% fat 9.0% S.N.F
Product name : Parag Lite
this is 99% fat free and is available in 200 ml. & 500 ml. packs.

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Milk Product Marketing

The milk products marketing division is handling the marketing of Butter, Paneer,
Flavoured Milk, Butter milk, Kheer, Peda, Curd etc. These products reach the ultimate
consumers through one of the following channels:

• Stockiest sale
• Concessionaire sale
• Clearing and forwarding agents.

Note: The Stockiest sale in this system have two intermediaries viz.

Manufacture Stockiest Retailer Consumers

Each of the intermediaries operate on the basic of margins on percentage of

investment. In concessionaire sale only one intermediary is involved that is
manufacture concessionaire consumer. Through this channel, the
products that are highly perishable in nature find their way out. Except U.P. and Delhi, in
other states, Parag products are distributed through clearing overheads by eliminating
the necessity for P.C.D.F. owned warehouses and offices in their states.

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Conclusion:

PARAG is the brand name under which all the milk and milk products are being
marketed by the Pradeshik Co-operative Dairy Federation (P.C.D.F)

P.C.D.F. is a semi government commercial organization working under a three tier

system wherein the P.C.D.F. is at the top having the M.D. [presently Mr. Ashok
Kumar] as the head of the federation.

It is mandatory for the M.D. of P.C.D.F to be an I.A.S officer. This is because according
to the Indian Company Laws, “any organization using more than 40% government
money has to have an I.A.S officer as the top boss” and in P.C.D.F nearly 94% of the
funds are provided by the government.

Under the P.C.D.F comes the different Milk Unions. The milk union we studied about
was the Lucknow Milk Union. This works at the district level.

These departments and their processes are made to function effectively by the proper
governance of the following factors:–

1. Administration
2. Finance
3. Quality Control
4. Production
5. Engineering
6. Storage
7. Marketing Information System

As mentioned above the department of Procurement and Input of the Milk Union deals
with collecting the milk from the different parts of their respective districts from the milk
producers. These milk producers are the villagers enrolled in the co-operative
societies. Thus the societies, falling under the milk unions complete the third tier of this
system.

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These societies work at the village level. These societies have opened a new source of
income to the economically challenged villagers by –

a. Buying the surplus milk of their cattle as well as providing them with all possible
assistance in order to take good care of their cattle and ensure healthy and good
quality milk.

b. Direct dealing with the milk producers has eliminated the exploitation of the
villagers at the hands of the middle men.

c. The facility of easy access to a veterinary doctor has not only helped improve the
health of the ill cattle but has brought about general awareness of better
nurturing their cattle by improved diet, timely vaccinations etc.

d. Being a government aided organization, P.C.D.F. can easily provide insurance

for the cattle to the villagers thereby reducing the impact of loss of a cattle.

e. Introduction of new milk products like kheer, besan laddoo etc have even made
markets easily available for their agricultural produces like rice, sugar, gram etc.

Other activities: Although we know these villagers primarily as milk producers, their
main occupation still remains agriculture. Specially in areas like Malihabad district the
main source of income to the people remains cultivation of mangoes.

Other than that there are lots of other crops grown in these villages like rice, sugarcane,
gram as mentioned above, along with jackfruit, yam, corn etc.

The villagers also commute every day to the cities and work here as labour.

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Agriculture – their main occupation

There are also some talented youth who manage to find themselves a part-time job with
handicrafts and embroidery work like chikan, zardozi etc Besides agriculture they are
also involved in other allied activities as well like pottery, poultry etc.

Allied occupations like – pottery & poultry

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