CHAPTER - 3 OVERVIEW OF THE INDUSTRY AND THE COMPANY INDUSTRY PROFILE There is no historical book about milk history

in Europe or the near East in any language of this region, as far as I know. This is remarkable, because one can find books about a lot of foods, especially the basic foods such as bread, meat, fish and vegetables. Milk has become a basic food in northern Europe only since the last 60 to 70 years. Before, there was a rural milk-production nearly everywhere, but only with the main intent to produce butter and some cheese from the sour-milk leftovers. The German milk landscape is pictured in the book as an example. The other European Countries faced a similar development.

Since the upcoming of liquid milk-consumption in the late 19th century, scientific milkresearch was established in Germany. Though specialized milk-science-institutes were then built, none ever researched the history of milk.

There is actually no milk-history, which is worth telling. Milk has never been a basic food in Europe. Therefore the historical sources are minute. And what is known nowadays contradicts the impression of a historical habit of milk consumption for centuries and in ancient times, which is given by the milk-industries and sciences. Because the food-industry and food-science are depending on peoples milk consumption, there is no interest in a research with a result like: only 150 years ago liquid milkconsumption started. Before then, milk was used mainly to get the fat (butter) out of it and a little cheese. A research result like this would make people aware of the possibility to live without Milk-products, which make now 30 to 50% of the daily calorie-intake. So there is an enormous economic and also scientific interest in ignoring the food-history and especially the milk-history in Europe.

It comes to the point that those who ask questions about the history of milk are quickly Designated as milk-critics. Lately some milk-history was detected, when a scientist found the medieval books about milk-products, butter, cheese and whey, in European libraries. These books are all written Medieval Latin language and had to be photographed for conservation. They need to be translated into English, French, German or Italian, but there was and is no money to do so. One medieval book was translated into Italian language by a professor for food science. The professor came, like me, to the conclusion that in medieval times milk-consumption was wildly thought to be dangerous for the health of people. Doctors warned not to eat cheese, because of a lot of illnesses and especially mental and central nervous diseases like epilepsy. Butter was not used wildly and whey was used only as a purgative, to clean the guts, and seen as food for animals (dogs and pigs) or as garbage. In the 16th century things started to change slowly. But milk-production still stayed low. The average milk-production of a cow was seen around 600 kg per lactation. Nowadays it is 6000to 8000 kg and in some countries even more. Let us start now from the beginning. Milking pictures are as old as 6000 y in Egypt and Iraq. From northern India they are about4000 y old. Milking emerged more often in goats than in cows or sheep. The first areas with an appreciable European milk-production were Greece and Italy in ancient times. They still produced mainly goat and sheep-milk to make cheese. Cows were used as workers on the fields, as towing animals. Therefore they could not be milked all the time. When they were milked, their milk was used mainly to make butter. It is interesting why. Cow's milk is the only mammalian milk that encloses an enzyme (euglobulin), which separates the fat-globules form the plasma within a short period of time. When one milks, you just let the milk sit for two hours in wide and flat bowls and you will find the fat on top. When it is sitting even for a day, one will find a big creamy part on the top, which can be taken out and used directly as a fattening source or to make butter. With goat and sheep-milk this would not be possible. Therefore one can even today hardly find goat or sheep-butter. This milk can only be drunk or made creamy cheese out of it. Neither ancient Greeks nor Romans used to eat butter. They thought of it as a barbarian habit. They produced butter only for cosmetic reasons for the upper class. So one can imagine how 'Big' this butter-production was.

In ancient Egypt and Palestine they already used to produce cow-milk butter as foodstuff. The fat supply has been a problem through all times up to the 20th century, when it was Finally solved. So in areas, where there was no other fat source as animals, the milking of Animals and specially cows was an advantage, because the animals had not to be killed in Order to get their fat. These areas were deserts and woody places where nomadic life was still going on, where People did not grow olive trees. In ancient times 2000 to 2500 y ago, only in the Mediterranean area olive oil was produced. Besides the olive tree, there has been no other nameable plant-fat source in the Mediterranean World. Palm-fat was not known at that time. Specialists for olive oil became Greeks and Romans in their classical period, who then did not Need any butter or fat from milking. In Palestine and Egypt fat from plants and animals both Were used, depending of the form of living, nomadic (milk) or sedentary (more plant-oil). In Northern Europe fat was a big food problem. So milking developed there to have some Independent fat-source, besides killing the animals. Like in India, cows were seen as holy, Which prevented them to be slaughtered as young animals. In northern Europe the olive tree Could not grow, and other plants in the woods was not a big deal. So the cream of cow-milk or The fattening goat-milk was a welcomed additional fat source. But the ancient Germans Obviously did not know how to make butter, otherwise the Roman conquerors would have Written about it.

Only Greek authors mentioned the use of butter as foodstuff for some people living around the Black Sea. So, Greeks and Romans used their olive oil and made out of Goat- and sheep-milk fattening cheeses. The Germans made some kind of cottage cheese out of cow- and goat-milk. This was it. At the beginning of milking, the quality of the cheeses was not the best. Only in the classical Roman times, 2000 y ago, the quality improved so far, that hard cheeses became a delicious Food mainly as a desert. They did not eat as much as the western world does today but Addiction was already known in the upper class: One Roman emperor is said to have died because he ate too much cheese.

In Roman times the hard cheese was the ideal protein- and fattening food for soldiers. It could keep over months and was easily transported. So it became in the conquerors times a food for soldiers and travelers.

When the Romans came to Germany around 50 B.C., they found the Germans not drinking milk, but eating milk in the shape of eating cottage cheese. This was then the only way they used milk. How to make hard lab-cheese was taught by the Romans. In the northern part of Europe north of the Alps, this knowledge vanished after the Roman period, since 400 a. C to 800 A.C., the beginning of the medieval times.

From 800 A.C. on, hard lab-cheeses from goat- and sheep-milk started to be produced in monasteries; north of the Alps mostly goat-milk. There, sheep were held mainly because of wool-production and meat-production, not because of milk-production, whereas in Italy, Greece and South France milk production stayed an economic goal in sheep-farming. In medieval times around 1100 A.C. most of the produced cheese in German countries was goat-cheese. The famous medieval nun Hildegard von Bingen wrote books about health -treatment, Foodstuff, herbage and plants. She mentioned butter (from cows) mainly as cosmetics. And when she used the word cheese, she thought of goat-cheese. This leads to the conclusion, that milk from cows was rare and indeed, cattle were still mainly used as field-workers in Germany and the other northern countries. Hildegard warned people to eat cheese while getting sick of neurological illnesses. Even an emperor made a law, forbidding eating cheese, when someone was sick of epilepsy.

Butter-production from cow-milk as a foodstuff started only around the 14th century and was safely established in the 15th and 16th centuries. In this late medieval times the few books about milk-products were written in Latin language. And the first doctors started to tell people, that milk-products were not as bad as the mainstream was arguing.

The upcoming butter-production divided Europe into two different areas of fat and cheese consumption. The southern countries stayed mainly with olive oil and sheep- and goat-cheese,

the northern countries made cow-milk butter and from the rest, the fatless sour-milk-plasma they made a stinky sour-milk cheese; up to the 19th century the food for the very poor. This cheese was not a lab-cheese, but made through the sour-milk bacteria within the milk itself.

The very poor ate this or whey-cheese and sold their butter to the richer people. The monasteries watched over their lab-cheese recipes strictly, as well as of their brewing recipes. Their lab-cheeses, still mostly of goat-milk, were tastier than the sour-milk-cheeses out of cow's milk. So they could make good money out of it. Monks and nuns were sitting on the fountain and sometimes got addicted. So it is reported that their heads often had to forbid cheese consumption to their monks and nuns.

For normal people, butter and cheese were mostly not of good quality because they lacked the knowledge how to do it. So, most people did not eat lots of this foodstuff. Especially, butter was something for richer people. Another interesting thing: In former German language, the word for whey was not this. What is why they called cheese-water. And cheese-water was garbage or food for animals or used medically as a purgative. In the 17th century, when Dutch emigrants came to German countries to make a business out of butter- and sour-milk-cheese production, they held pigs on the side and made good business from it. The pigs were fed with the cheese-water what made them grow faster and bigger than normal pigs. Probably the effect of estrogens and the IGF's in whey!

Up to the 19th century in German as well as Latin language there was no expression like drinking milk. When the subject in literature is milk, one used the words: eating milk. That shows also that liquid milk was not a usual food. The normal consumption was the collection of the fat for buttering and then eating the sour-milk or making some form of cottage cheese out of it. So milk was always eaten.

And up to the 19th century the yield of a cow was measured not in liter or kg milk like today. The expression was: a cow gives - for instance 50 - pounds of butter a year. The butteryield was the main thing, the normal measurement.

Liquid milk consumption could start only as the industrial revolution brought about the cooling technique, in the 1870s and when enough railroads where build for a quick transportation.

As often, a social habit starts with the rich people. In the late 19th century, richer people in the cities longed for milk from rural areas. Most of the wealthy upper middle-class did not live in solely standing houses in the big cities any more, like they used to do in rural areas.

They could not make their own butter and cheese, what used to be women's work, because there was no room any more. The cities were dusty and strange. In imagining the easy and holistic rural, clean life they or their ancestors used to live, they wished to have some of it back. So they wanted to have milk also in the cities and paid high prices for it. They were not used to the liquid, but to sour-milk and fat. They used the cream for cooking and the rest they ate as sour-milk. Having liquid milk at home, which they could not work with any more, they started to drink it. But the consumption was not much. Only for the early 20th century one can find statements for liquid milk consumption as a habit.

Rural people were not used to liquid milk as a food. For them it was something for children or old or sick people to make them gain weight again. When these people came to the cities as workers, they kept their habit of not using liquid milk. They were used to butter, but in the cities they could not afford it any more. So butter even more became a food for richer people. For the poor, margarine was invented, which they made up to the 20th century out of whey or milk-plasma mixture with cow - body fat (tallow).

The epidemics like cholera, tuberculosis and diphtheria, which killed thousands of people in the cities in the late 19th century was not confined to the proletarians, the poor, but involved also the upper class. And since it was known that these used liquid milk in contrary to the proletarians, scientists thought that not only infected water, but also the liquid milk was a source of the epidemics. Therefore, in the upper class milk was seen as a problematic food quickly. For this, pasteurization of the milk was installed but wildly rejected by rich and poor because of bad taste. Because milk could always be a source of disease, the attitude towards

milk stayed ambivalent also with the main consumers, the upper-class. Only after World War I in the 1920s and 1930s milk-consumption was wildly pushed and promoted by politics as a normal and healthy food for everybody.

Up to World War II milk-consumption steadily increased but stayed low in contrary to today. Butter and self-made sour-milk and a little cheese stayed the main milk-products which were consumed.

USAGE OF MILK IN INDIA: India is the largest producer of milk producing more than 100 million tons of milk per annum. Yet, her per capita milk consumption is around 250 g per day. India has a population of more than 1 billion with diverse food habits, cultures, traditions and religions. Regional variations within the country can be mind boggling. On one hand, the country has plains with long tradition of milk production and consumption. On the other hand, there are forest and hilly regions with no tradition of dairying. Most of coastal belts also do not have much of dairy tradition. Cow is holy for Hindus who make up more than 80 per cent of the population of India. Buffalo enjoys no such holy status. Cow slaughter is banned in many states of India. There are no restrictions on buffalo culling. All this makes India a very complex dairy country. Till about year 2000, India was not on the radar screen of most international dairy companies, since India was neither a major importer nor an exporter of dairy products. Through the 70s,80s and 90s India used to take some milk powder and butter oil as aid. Exports from India were insignificantly small. From 2000 onwards, Indian dairy products, particularly milk powder, casein, whey products and ghee started making their presence felt in global markets.

The decade of 2000-10 will be recorded in dairy history as the decade of exports. But the next decade will be different. Signs of change are already visible. On one hand, India is finding it difficult to sustain exports of dairy products due to low global prices and high domestic prices. On the other hand, some dairy products and companies from India have been able to make their mark on international markets leading to increase in their exports even when the overall global market sentiment has turned negative.

Reintroduction of subsidies by European Union, continuing global economic downturn and devaluation of currency of a major dairy exporting country like New Zealand combined with high domestic prices have made dairy imports into India attractive. The day is not far when India will become a net importer of dairy products. It is expected that initially large-scale imports will be of dairy commodities, which will be used by Indian dairy cooperatives and companies to make reconstituted milk and other branded dairy products. Imports of branded dairy products may trickle in later.

Projected growth rate of milk production and dairy products consumption

Product

Projected Growth Rate percent per annum

Milk production Ghee consumption Butter consumption Paneer (cottage cheese) Processed cheese Dairy whiteners and condensed milk

3 9 10 10 14 8

Indias milk production will continue to grow at about 3 per cent per annum in spite of difficulties due to stagnant livestock herd size and shortage of fodder. Due to increasing population, per capita availability of milk will increase by only about 1.5 per cent per annum. For an economy growing at about 6 per cent per annum, this increase in availability will be grossly inadequate.

Production growing at only 3 per cent and consumption growing at more than double the rate is obviously going to lead to a mismatch between demand and supply. This will create Opportunities for international dairy companies.

On one hand, India is expected to enter the international market with demand for commodities like skimmed milk powder and butter oil. On the other hand, growing prosperity and fast growth of organized modern retail and western style fast food outlets will lead to increased consumption of products like cheese and table butter. This will throw up opportunities for branded dairy products to enter this huge market of more than a billion people. Helping international as well as Indian companies understand the dairy scenario of India from a macro-level perspective is the prime objective of this study. Facts and statistics, instead of opinions and impressions, are the key building blocks of this report. During the study, we have tried, as far as possible, to rely on official data from some department / ministry / agency / directorate of government of India. This poses a problem since government agencies of India are slow in releasing data. For example, Director General of Commercial Intelligence & Statistics, Kolkata (responsible for compiling data on Indias imports and exports) had till the 1 August 2009 released monthly export data in respect of only December 2008. Department of Animal Husbandrys latest data is given in their Handbook released in December 2006, which gives data only for financial year ended on March 2006. Inadequacy of official data is a perennial problem with most developing countries. Fortunately, in case of India the problem is not as severe. India has one of the oldest and most reliable census systems in the world. India conducts a fairly reliable livestock survey regularly. Data on economic fundamentals is extremely detailed and easily available. Trade data collection system of India is better than of most developing countries and is much more reliable than of most non-democratic countries. Separating the useful and relevant from irrelevant and useless is always a challenge. It is more when so when one has an ocean of data (parts of which may be a bit old). This is a challenge that we are able to undertake with our long experience in India and Indian dairy / livestock industry in particular. We have our ear on the ground in India. We understand the dynamics of fast-changing India. We use the historical data provided by government agencies and rely on our experience and insightful expertise to see trends that others notice much later. We hope that the study helps you get a macro-level understanding of the dairy scenario in India. This may however not answer all the queries that you may have. We look forward to conducting in-depth micro-level studies related to Indian dairy industry for you based on your requirements

COMPANY PROFILE

Dairy Development in India has been acknowledged the world over as one of the most successful development programmed. India is the second largest milk producing country with the production about 78 million tons during 1999 -2000. The milk surplus States in India are Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu. The manufacturing of milk products is concentrated in these milk surplus States. Dairy sector has assumed a great significance by generating income not only to the rural but also to the urban and semi-urban population in the state especially to the women folk by providing self employment opportunity.

Milk and milk products provides essential nutrition to all walks of life. It provides the main source of income next to agriculture. In a tropical country like India, agriculture may fail sometimes, due to monsoon failure but dairying never fail and gives them regular, steady income. The state Dairy Development was established in 1958. The Administrative and statutory controls over the entire milk cooperative in the State were transferred to the Dairy Development on 01.08.1965. The Commissioner for the Milk Production and Dairy Development is the functional registrar under the Tamil Nadu Co-operative Societies Act 1983. With the advent of Anand Pattern in Tamil Nadu Co-operative Milk Products Federation limited was registered on 1st February 1981 as the State level organization. The commercial activities of the department such as procurement, processing, packing and the sale of milk and milk products within and outside the State was entrusted to the Tamil Nadu Co-operative Milk Producers Federation ltd.

In the wake of the liberalization policy, private dairies have entered in the field of dairying. As per the direction of the National Dairy Development Board and Government of Tamil Nadu high priority has been given for improving the performance of Co-operative by adopting a systematic approach and proper strategy implementation in milk co-operatives. Significant achievement has been made by Milk Producers Co-operative Societies, Unions and Federation in the state of Tamil Nadu.

The Coimbatore district co-operative milk producers union ltd (CDCMPU) was started on the 3 tier formation, with the AMUL pattern in Gujarat.

1937 - Started as Coimbatore district co-operative milk supply union. 1976 - Coimbatore district co-operative milk producers union ltd. 1979 Amalgamated as ED-1116, Coimbatore district co-operative milk producers union ltd (CDCMPU), as on 15.09.1979.

TWO FOLD OBJECTIVES OF DAIRY DEVELOPMENT DEPARTMENT: Assure a remunerative price of the milk produced by the milk producers union societies through a stable, steady and well market support. Distribution of quality milk and milk products at reasonable price to the customers.

SPECIAL FEATURES OF THE COMPANY:

Weekly four rail milk tankers of about 16000 liters of condensed milk are supplied to Mother Dairy, Delhi from the Coimbatore Dairy. On an average 80,000 liters of raw chilled milk is supplied for Chennai metro sales from Coimbatore Dairy. Milk products like Butter, Ghee, Skimmed milk powder, Milk Pedal, Flavored milk, Butter milk, Badam milk powder, Ice cream are produced at Coimbatore Dairy and selling to customers according their requirements.

The company is an ISO 9001=2000 certified and ISI certified for the skimmed milk powder production and the Coimbatore Dairy ghee is sold with AGMARK certificate. National wide database laboratory established at Coimbatore District out of 15 milk producers union selected by National Dairy Development Board in India. Union is selling ghee to Tirupati Thirumala Devasthanam in tankers for Laddu preparation.

FUNCTIONS OF DISTRICT CO-OPERATIVE MILK PRODUCERS UNION: Establishment of chilling centers Formation of new milk route to collect the milk produced by the member societies. Collection of milk from societies, process and pack in modern dairy plant by maintaining quality standards. Fixation of procurement and selling price of milk. Increase of milk sales by introducing innovative sales promotion activities. Supply of inputs to the member societies obtained from unions. The union also spends 154.42 lakhs, 169 lakhs, 187.74 lakhs, and 219.28 lakhs for the past five years marketing, which includes transport and agents commission. The union spends about Rs.3 lakhs for the advertisement. To provide artificial insemination and veterinary aid facilities to the milk producers.

DAIRY DEVELOPMENT DEPARTMENT POLICY NOTE 2011-2012 As we all know that Animal Husbandry generates a regular stream of supplementary income to farmers, this Government will place special emphasis on the Animal Husbandry Sector. We propose to achieve the objective of increased Production of milk by creating a Second White Revolution. -Tamil Nadu Governments Budget Speech 2011

INTRODUCTION To fulfill the above stated perspective plan of the Government and to protect the interest of the poor people, the Dairy Development Department is going to give a fresh vigor to various schemes implemented by it across the State. The ultimate Aim will be to usher in a second white revolution as envisaged by the Government. Milk is considered to be one of the excellent foods for the people. It is the important source of first class proteins. It is an essential food for the new born babies. Traditionally, Dairying and pasturing activity was done according to the Domestic requirement. Due to urbanization, the demand for milk in urban area has increased. This necessitated procuring, processing and distribution of milk in scientific manner. This resulted in organized dairying activities for service to the society as well as improving rural economy.

AIM OF THE DEPARTMENT The aim of the Department is: To bring the un-organized dairy sector into organized sector in a phased manner. To monitor, supervise and regulate dairy activities. To improve input activities and animal healthcare for increasing milk production and also to work towards remunerative price to the milk producers. To encourage liquid milk availability and supply of clean processed milk following hygienic and food safety measures to the consumers at reasonable price. To ensure quality of milk and milk products as per the statutory specifications.

PRIMARY DAIRY COOPERATIVES MILK SOCIETIES A minimum of 25 or more individuals competent to contract under section 11 of the Indian Contract Act of 1872, owning Mulch animals, can form a Primary Dairy Cooperative Society, with one or more villages as its area of operation. Such persons have to approach the Circle Deputy Registrar's (Dairying) office functioning at the District for further guidance. The members of Primary Cooperative milk society have to supply milk to the Society which will

procure milk on quality basis and they will receive milk cost once in 10 days / 15 days from the Society. Mulch animals are provided with free veterinary health cover, artificial insemination and the supply of balanced cattle feed. Inductions of farmers on modern animal husbandry practices are aimed at by upgrading the Mulch animals and thereby improving their productivity in the long run for the benefit of the members. Quality Control Lab To ensure supply of quality milk to consumers, a well established Quality Control Laboratory is functioning under the direct control of Commissioner for Milk Production and Dairy Development at Coimbatore District co-operative milk producers union, Perur. The Dairy Officer and Assistant Dairy Officer are authorized to collect samples of Milk and Milk Products. Samples of Milk and Milk Products are tested in the laboratory to ensure supply of quality milk and milk products to consumers.

SERVICE TO MILK CONSUMERS The brand name of Aavin of Tamil Nadu Milk Co-operatives symbolizes quality milk products. Quality Control Laboratories have been established at Trichy and Salem at a financial outlay of Rs.40.00 lakhs. As part of quality policy, all metro dairies have obtained International Organization for Standardization (ISO) and Hazard Analysis and Critical Control Point (HACCP) Certificates. Hazard Analysis and Critical Control Point (HACCP) is a quality system which ensures food safety and quality in Milk and Milk Products sold by Aavin .Metro Dairies have obtained ISO: 14001certification for compliance of environmental management system. A Toll free No.18004253300 has been provided to contact the consumer cell of the Federation at Nandanam functioning round the clock to lodge grievances. Steps are taken to redress the Consumer grievances immediately. 165 Milk Parlors are functioning in the metro to cater the needs of the consumers.

BENEFITS EXTENDED TO EMPLOYEES 1. Bonus and ex-gratia are distributed to the employees of the Federation and Unions. 2. Deepavali and Pongal Gift packets containing milk products are distributed to employees of the Dairy Co-operatives.

3. Productivity linked incentives are disbursed to the Dairy Co-operative Employees.

STATE LEVEL AND CENTRAL SCHEMES TO AAVIN: o Financial Assistance to Aavin for Milk Cost Payment to Producers. o Dairy and Milk Powder Plant. o National Agricultural Development Programmed (NADP) 2011-12. o Special Programmed for Dairy Development as a part of National Mission for Protein Supplement (NMPS) 2011-12. o Strengthening Infrastructure for Quality and Clean Milk Production. o Assistance to Co-operatives- Rehabilitation of Unions. WOMEN MILK PRODUCERS COOPERATIVE SOCIETIES In order to encourage the women members to contribute more to the dairy sector, they are being called upon to organize women milk producers' cooperative societies in their respective areas. There are 1210 women milk Producers cooperative societies functioning in Tamil Nadu. Primary Milk Cooperative Societies and District cooperative Milk Producers Unions and Federation were previously administered by elected Boards. As the terms of office of the members of elected Board already expired and as they were continuing only on extended term of office as per section 33(10) (aa) of Tamil Nadu Cooperative Societies Act, 1983, the Government issued orders terminating the extended term of office of members of Boards of these societies and the Special Officers have been appointed under section 89(1) of Tamil Nadu Cooperative Societies Act, 1983. All the primary Milk Cooperative Societies are now functioning under the Control of Special Officers since 26.5.2001. In respect of District Cooperative Milk Producers Unions, the Collectors of respective Districts have been appointed as Special Officers and for Tamil Nadu Cooperative Milk Producers Federation Ltd., the Managing Director of the Federation has been appointed as Special Officer. Consequent on the bifurcation of the Dharmapuri District and creation of new District namely Krishnagiri, the

District Collector of Krishnagiri has been appointed as Special Officer of Dharmapuri District Cooperative Milk Producers Unions Ltd., with effect from 27.2.2004. VISION 2011-2016 In order to enable ushering in of a Second White revolution in the State, the following strategies are envisioned by the Department: Provision of Doorstep Veterinary and Emergency health services. Subsidized Artificial Insemination Services. Presently 2,644 Artificial Insemination centers are functioning. Totally around16.00 lakhs Artificial Inseminations are carried out in a year and Rs.15/- is charged per Artificial Insemination. Presently, the Department of Animal Husbandry is chargingRs.10/- per Artificial Insemination. Further to lessen the financial burden of the milk producers, Unions will charge Rs.10/- per artificial insemination on par with Animal Husbandry Department. Rs.5/- per Artificial Insemination will be subsidized by the State Government.

VISION FOR THE YEAR 2011-12 Organization / Revival of Milk Producers Co-Operative Societies; During the year 2011-12, it is proposed to Organize / revive 1,500 Primary Cooperative societies of which already 999 societies are registered/ revived.

Milk procurement: It is proposed to increase milk procurement to 25 lakhs liters of milk per day at the level of primary societies by forming new Milk Producers Cooperative Societies, bringing more producers to cooperative fold by ensuring animal health care and providing cattle feed.

Milk Marketing: 10.50 lakhs liters per day (llpd) of milk is sold in Chennai metro and 10.00 lak (llpd) of milk at the District Unions. Milk is being sold to Government hospitals and other institutions by Federation and DCMPUs.

MILK PROCUREMENT BY DCMPUs: PRICE REVISION Most of the rural people especially women make their livelihood by rearing milch animals and by supplying milk to the Co-operatives. Keeping this in view and to improve the rural economy and to enhance the personal income of the stake holders in rural area, Government of Tamil Nadu directed the Tamil Nadu Co-operative Milk Producers Federation and District Cooperative Milk Producers Union to raise the procurement price of the cow's milk from Rs.18.00 to Rs.20.00 per liter and that of the buffalos milk from Rs.26.00 to Rs.28.00 with effect from 18.11.2011 and the milk cost as per the revised procurement price is being disbursed to the Milk producers.

PRODUCTS HANDLING IN AAVIN COMBATORE: 1. Pasteurized toned milk 2. Standardized milk 3. Full cream milk 4. Double toned milk 5. Ghee 6. Cheese 7. Flavored milk (strawberry, cardamom,chocolate,pineapple, pista) 8. Ice creams (cups, sticks & cones) 9. Milk sweets Gulab Jamun, Mysurpa, milk khoa. 10. Butter 11. Panner 12. Curd sachets & cups.

UPCOMING EVENTS OF COIMBATORE AAVIN: INSTALLATION OF 16 BULK MILK COOLING CENTRES IN COIMBATORE. HI-TECH MILK PARLOURS TO BE OPENED AT 20 LOCATIONS IN THE CITY. PRODUCT DIVERSIFICATION. MODERNIZATION OF THE PLANTS AT THE COST OF Rs.27.27 CRORES.

Procurement Data of AAVIN: No. of. DCS registered No. of .DCS functioning No. of women in DCS Total no of members Avg milk procurement in 2011 Avg milk procurement at present Avg milk sales during 2011 No. of milk chilling centers No. of distribution routes Total milk sales units Total no of milk booths Total no of milk coffee par lour Milk procurement team Total no of employees Other staff members Milk collection route Milk supply route Total cattle buffaloes Total cattle cows 655 595 91 112597 143000 2.6 llpd 160 llpd 4 27 8 512 7 7 360 411 56 27 5782 64834

Procurement team Team officers members pouring milk Non-members pouring milk % of pouring members No of villages covered by DCS Mode of milk bill payment to DCS Avg milk cost per week No of dormant societies Total no of revenue village Dcs covered with revenue village % of village covered

5 19 16220 3745 14% 993 Weekly twice Rs.2.76 Cr 53 481 448 93%

Organization Chart OF AAVIN, Coimbatore.

DGM(p&I)

DGM PRODUCTION

TIRUPUR

P&I

UDUMALAPEATTI

DAIRY

SHANMUGAPURAM

STORES

ANNUR

TRANSPORATION

ADMINISTRATION

ACCOUNTS

MARKETING

PURCHASE

QUALITY CONTROL

RS PURAM

ANNUR

SHANMUGAPURAM

TIRUPUR

UDUMALAPEATTI

DAIRY DEPARTMENTS STRUCTURE:

PROCUREMENT

DAIRY

MARKETING

STORES

TRANSPORT

IR

ACCOUNTS

PURCHASE

QUALITY CONTROL

CIVIL

PACKING

FOODER FARM

DISPATCH