An Industrial Attachment Report

on

VIKAS DAIRY
Prepared by, Sunit Gajare Sumant Sangle
INSTITUTE OF AGRIBUSINESS MANAGEMENT, NAVSARI

STUDY OF DAIRY CO-OPERATIVE STRUCTURE AND SWOT ANALYSIS WITH SPECIAL REFERENCE TO VIKAS DAIRY

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Contents

Objectives Introduction Company Profile Activities Performed Organizational Structure Processing of Products Management Information System Marketing Channels Marketing Strategies Milk Products Comparison Charts SWOT Analysis Findings Suggestions Learning from project Conclusion

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Objective of StudyTo study the Organizational structure of JMU and its progress towards customers satisfaction. To study the working and marketing activities performed by JMU and also provide a SWOT analysis on the dairy besides, a future perspective of the same.

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INTRODUCTIONJMU is properly known as Jalgaon Milk Union and it was established in 1971 The union has a dairy plant of 3,00,000 lit/day milk processing facilities for liquid milk & other products Union has also four milk chilling centers with a total chilling capacity of 19,00,000 lit/day Six Bulk Milk Cooler with a total chilling capacity of 30,00,000 lit/day A Cattle feed plant of 125 MT/day capacity.

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ACHIEVEMENTS-

The union has been awarded for Productivity Performance in year 1996-97 by National Productivity Council of India . "Bhartiy Udyog Ratn" by Indian Economic Development and research association during the year 1999-2000. Krishi Ratn Dr.Punjabrao Deshmukh "Krishi Gaurav Purskar" in year 2001-2002. The union has been accelerated with ISO 9001:2000 for quality, ISO 22000:2005 for food safety, ISO 14001:2004 for environment management and OHSAS by World Rended Agency DET NORSKE VERITAS (DNV) of Netherland.

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VIKAS

Vikas for enhancing milk production and per capita availability of milk vikas for social and economic upliftment of milk producers vikas for excellence in environmental management system vikas for excellence in food safety management system vikas for excellence in quality management system vikas for strengthening of co-operative movement vikas for empowerment of rural women vikas for self-employment vikas for self-reliance

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COMPANY PROFILEJalgaon Jilha Sahakari Dudh Utpadak Sangh Maryadit, Jalgaon.

ISO : 9001:2008, 22000:2005, 14001:2004 , OHSAS 18001:2007 Certified Dairy Organization For Four integrated International Certificates by DNV, The Netherlands. Maharashtra's first milk cooperative to be certified for four Integrated International Certificates by DNV The Netherlands.

Under the active guidance and management of NDDB,''VIKAS' has acquired the best equipment and latest technology to produce highest quality milk and milk products and an experienced work force.

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ORGANIZATION STRUCTUREManaging Director

Production Manager

Accounts manager

Purchase Manager

Marketing Manager

Manager Administration

Senior Supervisor

Chief Accountant

Purchase Assistant

Sales Supervisor

Administrative Staff

Supervisor

Branch Accountant

Purchase Clerks

Sales Staff

Manager P & I

Clerks Workers

Section Incharge

Assistant Manager

Assistant and helpers

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Administrative Committee:
Chairman: Mr. Deepak Tikku. (Managing Director, NDDB, Anand.)
Managing Director: Mr. Deepak Relan. CEO: Mr. Manoj Limaye.

Members Village Societies Number of Producer Members Number of Functional Village Societies Total Milk Handling Capacity Total Milk Handled (2008-09)

: 558 : 129906 : 766 : 3.0 Lakh Lts. per day : 787 Lakh Lts.

Milk Processing (Daily avg. 2008-09) : 222072 Kgs. per day Milk drying capacity : 15 MT per day
Source: www.vikas.coop.

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Sales Turnover 2003-2004 2004-2005 2005-2006 2006-2007

: Rs. : 77.68 : 83.18 Crores Crores

: 105.14 Crores : 114.15 Crores

2007-2008
2008-2009

: 134.17 Crores
: 159.1 Crores
Source: www.vikas.coop.

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ACTIVITIES Annual Breeding Programme Vaccination programme Health Programme Clean Milk Production Women Leadership Development programme Primary milk co-operative society

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Processing of Products

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Farmer Primary Collection & Chilling Center(4oc)

Transportation-(Tankers)

Chilling (at processing plant-4oc)

1,50,000 liter as milk

Separation of Milk
Homogenization-(10,000 lit/hr)

50,000 liter for processing & milk products products

Pasteurization

Separation-(1) Cow Milk (2)Buffelow Milk Storage

Packaging by fill pack machine- (6 machines ) Capacity-80 days/min(40 lit milk/min)-1,50,000/day)1oc,2oc temp
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Stored Milk

Condensing Unit

Drying Unit-Water level Reduced upto-40%

Automizer-12,000rpm

Heating-190oc-200oc -60% becomes vapour & sold out in air through cyclone separator

Milk Powder

Packaging-25kg,1kg
Powder Types-SMP-Fat 1%SNF=97% -WMP-Fat 26% SNF=70%

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Stored milk

Heating

Separation of Cream

Churning

Separation of butter & Fatty portion

Continuous butter making machine-500kg/h

PackagingTable butter -Salted butter =100gm & 500gm packs

Storage-in deepfreeze temp=3oc-20oc

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MANAGEMENT INFORMATION SYSTEM (MIS)

The JMU has developed its own management information system in which the records are maintained. This MIS analyses and compares the sales, production, chilling center wise procurement of current year and previous years data. And Data Sheets are prepared which involves the comparison according to changes in percentage. MIS prepares reports which are used by managers in decision making while performing managerial activities. The following reports are mainly used , Demand Reports. Scheduled Reports.

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MARKETING CHANNEL-

JMU

Distributors (Taluka Level)

Retailer

Consumer

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STRATEGIESQuality management is basic strategy of society. Time management in procurement and distribution of milk and milk products. Creating brand image in consumers mind. STRONG BRAND: Creating strong brand image by wall paintings, dairy visits for consumers, farmers & school children this will increase mouth to mouth publicity of society. Use of Childs and women in advertisements. Distribution is based upon different categories of products.

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Promotional StrategiesTime to time distribution schemes. Distribution of home delivery bags. T-shirts, caps, banners & posters are to be distributed towards the distributors and consumers for promoting sales.

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MAJOR CLIENTSMothers Dairy, Delhi. Metro Dairy, Calcutta and Mumbai. Maharashtra State Milk Federation, Mumbai. Bihar and Kerala State Milk Federations. Taj Group of Hotels.

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MILK PRODUCTS1) Vikas - Cow Milk 3)Vikas Shakti Standardized Buffalo Milk

2)Vikas Gold - Buffalo Milk

4)Vikas Toned Homogenized Toned Milk

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5)Vikas Skimmed Milk Powder

7)Vikas Butter Milk

6)Vikas Flavoured Milk

8)Vikas Kadhi Tak

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9)Vikas Shrikhand

11)Vikas Table Butter

10)Vikas Amrakhand

12)Vikas Cow Ghee

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13)Vikas Buffalo Ghee

15)Vikas Dahi

14)Vikas Paneer - Cottage Cheese

16)Double toned milk

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VIKAS CATTLE FEED PLANTThe Union is manufacturing two types of feeds suiting to the best requirements of average yielders and high yielders. The Plant had produced 30,999 MT Cattle-feed during the year 2008-09.

1.VIKAS BALANCED CATTLEFEED: 2.VIKAS HIGH ENERGY CATTLEFEED:

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1.VIKAS BALANCED CATTLEFEED:

Benefits Of Balanced Cattle Feed:

1) Increase in milk production and Continuity remains constant. 2) Milk production costs reduced. 3) Increases resistance power of animals. 4) Increases fertility power of animals. 5) Reduces dry periods in milking animals. 6) Animals health increases.

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2.VIKAS HIGH ENERGY CATTLEFEED:

Benefits of High energy Cattle Feed:

Increase in milk production. Increases milk fats. Reduces cost of production. Consistancy in milking level of animals. Increases resistance power of animals. Helps in reducing calving periods.

1) 2) 3) 4) 5) 6)

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Comparison ChartsFig.1(Profit and Loss in Lakh Rs.)Chart Title Profit & Loss (Lakh Profit & Loss (Lakh 1995-96 Rs.), (Lakh Rs.), 2007-08, 152.39 Profit & Loss2006-07, 149.1 Profit & Loss (Lakh Profit & Loss (Lakh Profit & Loss (Lakh Profit & Rs.), (Lakh Loss 2005-06, 107.87 1996-97 Rs.), 1997-98, 122.17 1999-00, 115.28 Rs.), Profit &Rs.), 2002-03, 101.732004-05, 101.69 Loss (Lakh Rs.), 1997-98 Profit & Loss (Lakh Profit & Loss (Lakh Rs.), 2001-02, 78 Profit & Loss (Lakh Rs.), 1998-99, 69.33 2000-01, 62.05 Profit & Loss (Lakh Rs.), 1998-99 Rs.), 2003-04, 54.46 Rs.), 1996-97, 45.34 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 Profit & Loss (Lakh Rs.), 1995-96, 239.68 2006-07 2007-08

Source: 37th Annual Report 2007-2008

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Fig.2 (Primary milk co-op societies)-

Chart Title Primary Milk Primary Milk Primary Milk Co-op Co-opCo-op Primary Milk Primary MilkPrimary Milk Co-opCo-op Co-op Primary Milk Co-op Societies, 2007-08, Primary Societies, Primary Milk Societies, 1999-00, Primary Milk Milk Primary Societies, 2005-06, Societies, 2006-07, Societies, 1997-98,Co-op 2000-01, Milk Co-op Co-opCo-op Primary MilkSocieties, 1998-99,726 Co-op Societies, 706Societies, 2001-02, Societies, 2003-04, 713 Societies, 2002-03, 2004-05, 719 729 681 Societies, 1996-97, 661 669 632 645 658 629 Primary Milk Co-op Societies, 1995-96, 452

1995-96 1996-97 1997-98 1998-99 1999-00 2000-01

Source: 37th Annual Report 2007-2008

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Fig.3 (Average milk collection/day)-

Chart Title Daily Average Daily Average Milk Milk Milk Daily Average Collection (lakh lit), Collection (lakh lit), Collection (lakh lit), 2007-08, 2005-06, 1.59 1.53 1.59 2006-07,

Daily Average Milk Daily Average Milk Collection (lakh lit), Daily Average Milk Daily Average Milk Milk Daily Average Daily Collection (lakh (lakh lit), 2004-05, 1.17 Average Milk lit), (lakh lit), Milk Collection Daily Average Daily Collection (lakh lit), Average Milk Collection Daily Average2000-01, 1.03 Collection (lakh lit), Milk 2001-02, 0.97 1997-98,Collection (lakh lit), 2002-03, 0.95 0.98 Collection (lakh lit), 2003-04, 0.88 1999-00, 0.87 Collection (lakh lit), 1996-97, 0.87 1998-99, 0.72 Daily Average Milk Collection (lakh lit), 1995-96, 0.41

1995-96 1997-98 1999-00 2001-02 2003-04

1996-97 1998-99 2000-01 2002-03 2004-05

Source: 37th Annual Report 2007-2008

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Fig.4 (Average milk sales in 000lit)-

Chart Title
Average Average Milk Sales Milk Sales Average Milk lit), 2006-07, (000' Sales lit), 2007-08, (000' (000' lit), 2005-06, 142.05 139.92 135.03 Average Milk Sales (000' lit), 2004-05, Average Milk Sales 96.88 (000' lit), 2003-04, Average Milk Sales Average Milk Sales 80 (000' lit), 2002-03, Average Milk (000' lit), 2001-02, Average Milk Sales Sales Average Milk Sales 65 (000' (000' lit), 2000-01, lit), 1999-00,56.5 (000' lit), 1998-99, AverageSales Sales Milk Average Milk 46 48.8 39 Average Milk Sales 1997-98, (000' (000' lit), lit), 1996-97, (000' lit), 1995-96,29 22.6 15.6

1995-96 1997-98 1999-00 2001-02 2003-04 2005-06

1996-97 1998-99 2000-01 2002-03 2004-05 2006-07

Source: 37th Annual Report 2007-2008

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Fig.5 ( Cattle feed sales in MT)-

Cattle feed sales (MT)

Cattlefeed Cattlefeed sales sales sales Cattlefeed (MT), (MT), (MT), 2007-08, 2005-06, Cattlefeed sales 2006-07, 29746 (MT), 2004-05, Cattlefeed sales 2891228929 27090 (MT), 2003-04, 24001 Cattlefeed sales Cattlefeed sales (MT), 2002-03, (MT), 2001-02, 18562 Cattlefeed 17819 sales (MT), 2000-01, 1995-96 Cattlefeed sales 12803 Cattlefeed Cattlefeed sales sales (MT), 1996-97, 9111 Cattlefeed sales (MT), (MT), 1999-00, 8271 1998-99, 8137 Cattlefeed sales (MT), 1997-98, 6510 (MT), 1995-96, 3777

1996-97

Source: 37th Annual Report 2007-2008

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Fig.6 Production of Milk products (MT)-

Milk Powder, Powder, 1999Milk 199899, 223400, 2194

Butter, 1996-97, Milk Powder, 1997Butter, 2001-02, 1577 Butter, 2005-06, 98, 1467 1463 Butter, 2000-01, 1429 Milk Powder Milk Powder, 1996- 1997-98, Butter, Butter, 2007-08, 1297 Milk Powder, 2000- Butter, 2002-03, Butter, 2004-05, Butter, 2006-07, 97, 1196 1168 1157 01, 1150 Butter, 2003-04, Butter 1114 1099 Milk Powder, 19951052 1002 Milk Powder, 200196, 931 Ghee Butter, 1999-00, 877 02, 824 Butter, 1995-96, 761 Ghee, 2007-08, 452 Ghee, 2006-07, 431 Milk Powder, Powder, 2003- Powder, 2005Milk Milk 2002Milk 264 Milk Powder, 2006Ghee, 2005-06,Powder, 2007Ghee, 2004-05, 03, 2002-03, 193 Ghee, 225 04,Milk Powder, 2004- 230 Ghee, 2001-02, 171 06, 169 07, 149 154 Ghee, 168 2003-04, 168 08, Ghee, 2000-01, 135 Ghee, 1999-00, 117 05, 106 Ghee, 1996-97, 106 Ghee, 1997-98, 1998-99, 84 Ghee, 103 Ghee, 1995-96, 19 Butter, 1998-99, 557

Source: 37th Annual Report 2007-2008

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SWOT ANALYSIS

STRENGTHSBrand Image. Availability of raw material: Technical manpower: Professionally-trained, technical human resource pool Strong Distribution Channel. Quality Excellence.

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WEAKNESSESLarge number of low producing animals. Lack of control over yield. Less focus on other districts. Poor Procurement.

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OPPORTUNITIESExport potential : Specially Milk Powder, Milk Whitener Steps should be taken to introduce value-added products like dairy sweets. This will lead to a greater presence and flexibility in the market place along with brand building. Latest packaging technology can help to retain nutritive value of packaged products and extend their shelf-life

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THREATSMilk vendors, the un-organized sector. Poor microbiological quality of milk. New entrants. Extinction of Indigenous Breeds of Cattle.

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FINDINGS:

Distribution-Procurement dilemma. Use of improved machinery and technology. Sale of Milk and Cattle feed increasing.. But the value added products like Milk powder, Cheese are goes down. Local competitors and milk vendors causes the procurement

SUGGESTIONS -

Increase awareness through mass media, extension programmes and local channels Efforts to increase milk production: Should develop quality breeds and undertake the breeding programme twice in a year. Improve the productivity of breeds of the farmers Good scope exists for value-added products Rather than supplying milk provide the products to the clients Need to divert the Local vendors: so the collection problem will be solved.

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Learning from the Project

Working of the various divisions like Procurement & Inspection, Production, Purchasing, Marketing, Administrative, Computer section, Quality Control, etc.

Marketing and Promotional strategies

Integration of the firm Growth trend of the JMU

CONCLUSIONThe JMU has established marketing and Distribution established the Increased which AI, Animal Health Marketing. a strong brand and performing well in of Milk & Milk Products. It has been Milk Production Programme through Services, Cattle feed Production &

Milk union is providing various technical input services to milk producers of districts to improve the Milch breeds, their health and management & also has undertaken various educational & training programmes for the farmers for efficient management of dairy cooperative. This is resulting into increased milk production in the milk shed. Thus economic upliftment of the producers.

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