World Dairy Leaders' Forum: National Dairy Development Board of India
At the World Dairy Leaders' Forum during teh IDF World Dairy Summit in Cape Town in November 2012, Deepak Tikku, Chairman NDDB Dairy services in India talked about the smallholder dairy development and the National Dairy Plan in India.
There are millions of producers in India, with 2-3 animals each. Dairying is more than a business; it has a huge social dimension. It has a very low Gini coefficient of 0,11*, so any expansion in dairy leads to inclusive growth.
Unless you have a market where you can connect the producer and the consumer it doesn’t help.
At village level they collect the milk, at district level they process the milk, and at state level they market the milk and the milk products.
India is the largest milk producer in the world, currently at 122 million tons per year and with a production growth of 4%/year.
There is a specific need for a small holder model. In India cows are fed mainly crop residues and other by-products, the herds are small and it is quite labour intensive. The average yield is 1000-2000 kg/cow/year. In advanced dairy nations the cows are fed high quality feeds, the herds are large, it is capital intensive, and the average yield per cow and year is 7000-10000 kg.
Of the milk produced 45% is used or consumed on-farm, and 55% is sold. Of the sold milk 70% goes through the unorganised sector, and only 30% through the organised sector. Most households boil the milk before use.
The challenges are mainly increased production. The demand is growing, and production has to increase. The organized sector needs to increase, to ensure quality. We also need to address the environmental concerns, one of them is water.
To address these challenges India is implementing a National Dairy Plan. It is a 15 year plan, and the first phase of six years has just started. There is a 450 M USD funding from the World Bank and government of India. They expect to increase production from 125 M tons to 200 M. They also plan to expand the village based systems for organized sector to handle about 60% of the milk.
They want to increase productivity by increasing the genetic potential. They will use high genetic merit bulls, set up new semen stations, and expand delivery of AI. Natural breeding is more common than AI in India, only about 20% use AI. Under this plan, the AI services will hopefully increase to 50%.
They also want to increase production through nutrition, by utilizing genetic potential with balanced rations.
They also need to increase the village milk procurement system, increase the number of collection points from the current 125 000. Also they want to have milk chilling facilities at strategic locations.
It is very important in a big country such as India, to collect information, to analyse and disseminate it and to monitor activities in disperse areas of the country. There are information systems using available technology to reach farmers and technicians through networks.
Within the project they are also implementing a training & development program that will train about 50000 people.
* The Gini coefficient measures the inequality among values of a frequency distribution (for example levels of income). A Gini coefficient of zero expresses perfect equality, where all values are the same (for example, where everyone has an exactly equal income). A Gini coefficient of one (100 on the percentile scale) expresses maximal inequality among values (for example where only one person has all the income). http://en.wikipedia.org/wiki/Gini_coefficient