CHAPTER-1

INTRODUCTION

1.1 INTRODUCTION:

India is the world leader in milk production with total volume of 121.8
million tons. Driven by steady population growth and rising income, milk
consumption continues to rise in India. Dairy market is currently growing at an
annual growth rate of around 7 per cent in volume terms .The market size of
Indian dairy industry stands at around US$ 45 billion. Since Indias population
is predominantly vegetarian; milk serves as an important part of daily diet. For
most households, milk is a popular beverage due to its nutritional value.

India is predominantly an agrarian economy with more than 75 per cent

of its population living in villages and depending on agriculture and allied
activities for their livelihood. Land and cattle have traditionally been the two
basic income yielding assets of Indian farmers. More than 70 per cent of the
rural households possess a mere 21.8 per cent of land holdings. They, however,
own as much as 64.8 per cent of total milch animals. Thus the distribution of
milch animals is more even and much less skewed than the distribution of land-
holdings. In terms of actual number, the poor, marginal farmers, and landless
labourers form the largest group of rural milk producers

It has been observed in the Food and Agricultural Organization Evaluation

Committee Report, 1976, that dairy development in India offers a unique
advantage over industrialization or agricultural development.
 This premise is based on the spread effect of dairy development, which is
more evenly distributed as compared to the other two alternatives. It especially
benefits the weaker sections. Most of the cultivating households, irrespective of
the size of their land-holdings, own some milch animals or the other.

Cattle rearing continue to be an integral part of Indian agricultural scene.

These animals can easily be maintained on the crop residues, on weeds and
green grass collected by the landless, etc. The largest input, however, is the
intensive use of family labour. It is abundantly available because of lack of
alternative employment opportunities for rural population excepting during the
sowing and harvesting seasons. While this is true for small farmers and landless,
the large land-holders usually employ labour to help in up-keep of their animals.

In India, rural households consume almost 50 percent of total milk

production. The remaining 50 percent is sold in the domestic market. Of the
share of milk sold in the domestic market, almost 50 percent is consumed in
fluid form, 35 percent is consumed as traditional products (cheese, yoghurt and
milk based sweets), and 15 percent is consumed for the protection of butter,
ghee, milk powder and other processed dairy products (including baby foods,
ice cream, whey powder, casein, and milk albumin).

According to Indian Dairy Industry Analysis, India is the worlds largest

milk producer, accounting for around 17% of the global milk production.
Besides, it is one of the largest producers producers as well as consumers of
dairy products; the milk production in India will grow at a CAGR of around 4%
during 2011-2015.
 The government is taking several initiatives and running plans and
programs like National Diary Plan and Intensive Dairy Development Program
to meet the growing demand for milk in the country.

Over the span of three decades, India has transformed from a country of
acute milk shortage to the worlds leading milk producer, with production
exceeding 100 million tonnes in 2006. This phenomenal success is attributed to
a Government initiative known as Operation Flood (19701996) and its intense
focus on dairy development activities.

In that initiative, rural milk shed areas were linked to urban markets
through the development of a network of village cooperatives for procuring and
marketing milk. And milk production and productivity were enhanced by
ensuring the availability of veterinary services, artificial insemination (AI), feed
and farmer education. The investment paid off, promoting production gains of
45 percent per annum.
1.2 ABOUT THE INDUSTRY

The study entitled as A study on ASM Dairy Avinashipalayam, Tirupur.

Through this training I have come to know the various department details and
functional details of ASM Milk producers Ltd., and this is an opportunity to
know about the procedures of an organization.

Training is the systematic process of alternating the behavior knowledge

and awareness among the consumers in a direction to increase organizational
goal achievement. The projects work creates awareness of the external and
internal environment of business organization among the students. The projects
report contains all the functional areas at the organizational and its function.

The company chiefly concentrates on the motivational factors of the

employees. The company also assumes that as long as their employees should
stay there in the organization. The firm essentially frames its production,
purchase, marketing, finance, human resource plan around the concepts of
management and thus supplying the products to their customers.

1.3 INDUSTRY PROFILE

 India is endowed with a largest livestock population in the world having a
total bovine population of 304 million compared to the world's total bovine
population of 1400 million. It accounts for 57.3% of the worlds buffalo
population and 14.7% of the cattle population. As per18thLivestock Census,
2007 the country has 33.06 million cross bred cattle, 199.07 million indigenous
cattle and105.34 million buffaloes. The cross bred cattle are predominant in
Tamil Nadu, Maharashtra, West Bengal, Karnataka, Andhra Pradesh, Uttar
Pradesh and Bihar, While buffaloes are very common in Uttar Pradesh,
Rajasthan, Andhra Pradesh, Madhya Pradesh, Gujarat, Punjab, Haryana and
Bihar.

There has been a major improvement in milk production, which increased

from 17 Million tonnes in 1951 to 127.9 million tonnes during 2011-12. Uttar
Pradesh, Punjab, Madhya Pradesh, Rajasthan, Maharashtra, Gujarat, Andhra
Pradesh, Haryana, Tamil Nadu and Bihar contributed to the extent of 80 per cent
of the total milk production in the country. The per capita availability of the
milk has reached a level of 290 grams per day during the year 2011-12, which is
more than the world average of 284 grams per day. Most of the milk in the
country is produced by small, marginal farmers and landless labourers.

Recognizing the importance of the sector, several key initiatives were

taken by the Govt. in the past ranging from Operation Flood (OF) programme,
Intensive Dairy Development Programme (IDDP), Strengthening infrastructure
for Clean Milk Production, Assistance to Cooperatives, Venture Capital Fund
(VCF) for Dairy, and Dairy Entrepreneurship Development Scheme etc.

In order to meet the rapidly growing demand for milk with a focus to
improve mulch animal productivity and increase milk production, the
Government has approved National Dairy Plan Phase-I (NDP-I) in February,
2012 with a total investment of about Rs.2242 core to be implemented from
2011-12 to 2016-17. NDP-I will help to meet the projected national demand of
150 million tons of milk by 2016-17 from domestic production through
productivity enhancement, strengthening and expanding village level
infrastructure for milk procurement and provide producers with greater access
to markets. NDP-I would focus on 14 major milk producing States - Uttar
Pradesh, Punjab, Haryana, Gujarat, Rajasthan, Madhya Pradesh, Bihar, West
Bengal, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Orissa and
Kerala which account for over 90% of the countrys milk production. Coverage
of NDP- I will however be across the country in terms of benefits accruing from
the scheme.

Department of Animal Husbandry, Dairying & Fisheries, Ministry of

Agriculture, Government of India is also implementing National Programme
on Bovine Breeding & Dairy Development (NPBBDD) from 2013-14 to 2016-
17 through the State Implementing Agencies / End Implementing Agencies /
Participating Agencies.

1.4 HISTORY
 Milk producing animals have been domesticated for thousands of years.
Initially, they were part of the subsistence farming that nomads engaged in. As
the community moved about the country, their animals accompanied them.
Protecting and feeding the animals were a big part of the symbiotic relationship
between the animals and the herders.

In the more recent past, people in agricultural societies owned dairy

animals that they milked for domestic and local (village) consumption, a typical
example of a cottage industry. The animals might serve multiple purposes (for
example, as a draught animal for pulling a plough as a youngster, and at the end
of its useful life as meat). In this case the animals were normally milked by
hand and the herd size was quite small, so that all of the animals could be
milked in less than an hourabout 10 per milker. These tasks were performed
by a dairymaid (dairywoman) or dairyman. The word dairy harkens back to
Middle English dairy, from dye (female servant or dairymaid) and further back
to Old English (kneader of bread).

With industrialisation and urbanisation, the supply of milk became a

commercial industry, with specialised breeds of cattle being developed for dairy,
as distinct from beef or draught animals. Initially, more people were employed
as milkers, but it soon turned to mechanisation with machines designed to do
the milking.

The stripping action is repeated, using both hands for speed. Both
methods result in the milk that was trapped in the milk duct being squirted out
the end into a bucket that is supported between the knees (or rests on the
ground) of the milker, who usually sits on a low stool.
 Historically, the milking and the processing took place close together in
space and time: on a dairy farm. People milked the animals by hand; on farms
where only small numbers are kept, hand-milking may still be practiced. Hand-
milking is accomplished by grasping the teats (often pronounced tit or tits) in
the hand and expressing milk either by squeezing the fingers progressively,
from the udder end to the tip, or by squeezing the teat between thumb and index
finger, then moving the hand downward from udder towards the end of the teat.
The action of the hand or fingers is designed to close off the milk duct at the
udder (upper) end and, by the movement of the fingers, close the duct
progressively to the tip to express the trapped milk. Each half or quarter of the
udder is emptied one milk-duct capacity at a time.

In 1937, it was found that bovine somatotropin (BST or bovine growth

hormone) would increase the yield of milk. Monsanto Company developed a
synthetic (recombinant) version of this hormone (rBST). In February 1994,
rBST was approved by the Food and Drug Administration (FDA) for use in the
U.S. It was common in the U.S., but has lost popularity due to consumer
demands for rBST-free cows. Only about 25% of dairy cows receive rBST
anymore.

However, there are claims that this practice can have negative
consequences for the animals themselves. A European Union scientific
commission was asked to report on the incidence of mastitis and other disorders
in dairy cows, and on other aspects of the welfare of dairy cows.[1] The
commission's statement, subsequently adopted by the European Union, stated
that the use of rBST substantially increased health problems with cows,
including foot problems, mastitis and injection site reactions, impinged on the
welfare of the animals and caused reproductive disorders.

The report concluded that on the basis of the health and welfare of the
animals, rBST should not be used. Health Canada prohibited the sale of rBST in
1999; the recommendations of external committees were that, despite not
finding a significant health risk to humans, the drug presented a threat to animal
health and, for this reason, could not be sold in Canada.

1.5 COMPANY PROFILE

A.S.M Dairy is started in 1985 as a milk manufacturing unit. It was

started by M/s ASM Dairy as a sole trading concern with 100 employees.
Company at its beginning faced a tuff competition in its sales (Tirupur).
 The entire project had been by National Dairy Development board,
through the government of Tamilnadu and Tamilnadu federation. The project
had been funded under the nationwide operation flood program within aim to
bring about a socioeconomic rural India.

Weekly one milk tankers of about 16000 litters condensed milk are
supplied to PARAG Dairy Andra from ASM Dairy
On an average 50,000 liters of raw chilled milk is supplied for Tirupur
sales from ASM Dairy
Milk products Butter, Ghee, Skimmed milk powder, Milk Peda Dairy and
Selling to consumers according their requirements
The Company is on ISO 9001-2000 certified for the skimmed milk power
production.

The main functions of the dairy development department are organization

of societies, registration of societies, supervision and control ASM dairy
federation.

Type : Private

Genre : Milk

Founder : A.S.Mani

Established : 1985
MD : Mr. M.Vengateswaran

Headquarters : Tiruppur, Tamilnadu

Revenue : Rs 7.5 Cr (2014-15)

Email : asmdairy@gmail.com

Website : www.asmdairy.com

CHAPTER 2

MAIN THEME OF THE PROJECT

2.1 OBJECTIVES OF THE PROJECT

The financial assistance is extended for processing of milk with the

following objectives:
 To enhance the keeping quality of milk
To avoid the economic losses to farmers by procuring the milk in time from
them
To manufacture various milk products as per market demand
To provide quality products at affordable prices to the consumers.

To sponsor, promote, manage, acquire, construct or control any plant or work,

which promote projects of general public utility relation to dairying.
To make information available on request to technical services to increase
production of Milk.
To prepare initial feasibility studies of dairying and other dairy related projects
and undertake subsequent designing planning and start up those projects.
To undertake research and development programme related to production and
marketing of milk and milk products

To provide assistance for exchange of information to other international

agencies.

2.2 MILK PROCUREMENT AND PROCESSING

The organized dairy sector (both cooperatives and private) is presently

handles about 15 per cent of total milk production in the country. Thus it
indicates, there is a wide scope for processing of milk and manufacture of milk
products for domestic consumption as well as export.
2.3 PRODUCTS
 Milk Product of ASM DAIRY
ASM DAIRY produces 3 varieties of milk.

Toned Milk (4.5% Fat)

Full Cream Milk (6.0% Fat)

Standardised Milk (4.5% Fat)

CHAPTER 3
 DAIRY PROCESSING

3.1 Chilling of Milk.

3.1.1. Importance of Chilling.

Chilling of milk means rapid cooling of raw milk to sufficiently low

temperature so that the growth of micro-organisms present in milk is checked.
In chilling process the temperature of milk should be reduced to less than 10 0C
preferably 3 - 4 0C. Milk inside the udder is almost sterile and as soon as it
leaves the udder, it is exposed to atmosphere. The microorganisms gain entry
into the milk, the moment it comes to atmosphere. Various sources which
contribute to the micro flora in milk are containers, udder of the animal, dust
and dirt particles, fodder, leaves, atmospheric air, the milker and the animal
itself. The number and types of microorganisms would depend upon the
conditions and the sources of contamination.

As soon as microorganisms get into the milk, they start growing rapidly
because milk contains all the nutrients required for their growth, and the
conditions for their growth Are favourable. If the growth of microorganisms is
not checked then their growth will continue and several biochemical changes
will take place in milk. Due to these changes the quality of milk is adversely
affected so much so that sometimes milk becomes unfit for consumption as
fluid milk.
 Since most of the milk is produced in the rural areas under unhygienic
conditions and atmospheric temperature remains fairly high throughout the year,
keeping quality of raw milk is very low. If milk has to be transported to longer
distances, considerable time is involved between production and heating
process.

During this period milk must be protected from spoilage by the Action of
microorganisms. Chilling, therefore, is considered necessary soon after it is
received at the chilling canters. The most effective means of controlling the
growth of Microorganisms without affecting the physic-chemical properties and
nutritive value of milk is to chill it. Lower temperatures inhibit the growth of
most of the microorganisms. It should be clearly understood that chilling
process does neither kills microorganisms nor it renders milk safe for human
consumption. It is only a means of checking the growth of microorganisms for
some time.

3.1.2. Methods of chilling:

1. Can Immersion
2. In Can Cooling
3. Surface Cooler
4. Tubular Cooler
5. Plate Chillier
6. Bulk Milk Cooler
3.2 PASTEURIZATION OF MILK:

The term pasteurization as applied to market milk today refers to the

process of treating every particle of milk to at least 63 degrees Centigrade for 30
minutes or 72 degrees Centigrade for 15 seconds in approved and properly
operated equipment. After pasteurization, the milk is immediately cooled to 5
degrees Centigrade or below.

Pasteurization is the first step in milk processing. Pasteurization means

heating every particle of the milk or milk product to a specific temperature for a
specified period of time (63C for 30 minutes). This destroys bacteria and other
micro-organisms that may affect consumers' health. It makes the milk safe and
healthy, and also improves the keeping quality, * so that milk and milk products
can be stored for longer periods without being spoilt.
3.2.1 Simple method of pasteurization

Many farmers pasteurize their milk by direct boiling. However, direct

boiling is unhygienic, because it can lead to contamination from outside
particles or bacteria. Direct boiling is also inefficient, i.e. it requires more
energy (more fuel or firewood).
Indirect heating is a better way to pasteurize milk. Place the milk can
inside a larger metal vessel containing water, so that the water forms a jacket
around the milk can. Heat the larger outside vessel using an open flame, or gas
stove, or electrical hot plate.
3.2.2 Other methods of pasteurization

Batch pasteurization: 63C for at least 30 minutes. This is suitable for

small-scale producers and farmer cooperatives.
 High temperature short time (HTST) pasteurization: 72C for at least 15
minutes. This is suitable for processing large quantities of milk, e.g. more than
250 litres at a time.
Ultra high temperature (UHT): 135C. This is used by big factories. It
requires special machinery. UHT milk can be stored for 6 months even without
refrigeration.

3.2.3 Need for pasteurization of milk:

As it is difficult to exercise strict supervision over all milk supplies, it

becomes necessary to pasteurize milk so as to make it safe for human
consumption nutritive value is of the slightest importance.

Advantages:
1. To render milk safe for human consumption by destruction of cent
present pathogenic micro-organisms.
2. To improve the keeping quality of milk by destruction of almost all
spoilage organisms. (85 - 99 %)
Disadvantage:
1. Pasteurization encourages slackening of efforts for sanitary milk
production.
2. It may be used to mask low quality milk.
3. It diminishes significantly the nutritive value of milk.
4. It reduces the cream line or cream value.

3.2.4 Methods of Pasteurization:

There are a number of methods and among them; two methods are most
commonly used in dairy/dairies. They are: -
 A. Batch Pasteurizer (also known as L.T.L.T.)

This is also called the Low Temperature Long Time method. The milk is
heated to 63 degrees Centigrade for 30 minutes and promptly cooled to 5 0C or
below. This method of pasteurization is normally practiced in dairies where
small volume of milk is handled.

B. High Temperature Short Time Pasteurizer (H.T.S.T.)

In this method of pasteurization, the process involves the heating of milk

to 72 degrees Centigrade for 15 seconds. This process or type of pasteurization
is most commonly practiced in dairies where large volume of milk is handled.

3.3 HOMOGENIZATION:

Definition: Homogenization can be defined as the process designed to

reduce the size of fat globules and making a permanent emulsion of milk fat and
serum by the use of machine called as homogenizer. Homogenized milk is
milk, which has been treated in such a manner as to insure breakup of the fat
globules to such extent that after 48 hours of quiescent storage no visible cream
separation occurs on the milk.

Advantages:

1. No formation of cream layer.

2. Fat in milk does not churn due to rough handling or excessive
agitation.
3. becomes more palatable.
4. Produces soft curd and is better digestible, hence recommended for
infant feeding.
Disadvantages:

1. Increased cost of production.

2. Fat recovery is a problem - cannot churn.
3. Greater tendency for milk seepage through bottle caps.
3.4 Processing Construction Requirements

First Talk with Inspection Service (Tennessee Department of Agriculture)

or UT Extension (Department of Food Science & Technology)

Order of Approval Process

Site Approval (TDA)

Facility Approval (TDA)

Waste Water (TDEC)

Potable Water (TDEC)

Septic Tank (Health Department)

Direction of all facility Drains (TDA)

Equipment Approval (TDA)

Prior to Purchase and Installation

After Installation

Plant Layout and Design Approved (TDA)

 Approved Lab (TDA)

Special License (TDA)

Plant Permit

Hauler/Sampler License

Chemical Approval (TDA)

3.5 Composition of Milk

Constituent Concentration(G/L) Proportion Solids (%)

Fat 37.0 28.9
Protein: Casein 27.6 21.6
Protein: whey 6.4 5.0
Non-Protein nitrogen 1.9 1.5
Lactose 48.0 37.5
Ash 7.0 5.5
Total Solids 127.9 100.0

The biological function of milk is to supply nutrition and immunological

protection to the young mammal. In some species, milk is the only food
consumed for weeks or months. Therefore, it must furnish all nutritive
requirements for maintenance and growth, such as energy, amino acids,
minerals, and vitamins.

This chart shows the composition of milk, detailing the major

components as proportions of solids.
3.6 Basic Properties of Milk

Emulsion
Colloidal Solution
Emulsion:

An emulsion is a suspension of droplets of one liquid into another liquid.

Milk is an emulsion of fat in water. Butter is an emulsion of water in fat. The
solute is known as the dispersed phase and the solvent is known as the
continuous phase. Other examples of emulsions include margarine, mayonnaise,
cream, and salad dressing.
Colloidal solution:

A colloidal solution is when matter exists in a state of division in

between a true solution, which is sugar in water, and a suspension, which is
chalk in water. The characteristics of a colloid are small particle size, electrical
charge, and affinity of the particles for water molecules.

In milk, the whey proteins are in colloidal solution. The casein proteins
are in colloidal suspension.

3.7 Changes in Milk Composition:

Changes in composition
Breed
Diet
Season
 Stage of lactation

Changes in composition:

The composition of milk may change due to differences in relative rates

of synthesis and secretion of milk components by the mammary gland.
Variations are due to differences among species, between individuals
within a strain, and between conditions affecting an individual. Conditions
affecting the cows may include the weather or seasons and the stage of
lactation.

Breed:

The US mostly uses milk from cows of the larger breeds, such as
Holsteins and Brown Swiss because of the lower fat content and greater milk
production. Breeds such as the Guernseys and the Jerseys have higher fat
contents in their milks. Both the Guernseys and the Jerseys have a fat content
of 5.2%, whereas the Holsteins and the Brown Swiss have fat contents of 3.5%.
Diet:

The composition of the cows diet and the form in which they are fed
affect the composition of milk and especially milk fat. High fat and/or low
roughage diets can reduce the fat content of milk. Diet has small effects on
protein content and none on lactose content.

When mammals give birth, their first secreted milk is called colostrum,
and it differs greatly in composition from regular milk. Colostrum contains
more mineral salts and protein and less lactose than normal milk. Also, fat
content, calcium, sodium, magnesium, phosphorus, and chloride are higher in
colostrum than in normal milk. Whey content is about 11% in colostrum as
opposed to 0.65% in normal milk.

Colostrum contains extremely high immunoglobulin (I) content. Its

accumulate in the mammary gland before parturition and transfer immunity to
the baby cow. This immunoglobulin protects the baby cow until it can establish
its own Immunity.

3.8 Milk Fat

Milk fat globule

Membrane
Rupture of FGM
Density
 Low magnification milk fat droplets
(2-10 _m in diameter)
Milk fats consist of a mixture of compounds including triacylglycerols,
diacylglycerols, monoacylglycerols, phospholipids, cerebrosides, gangliosides,
sterols and sterol esters and derivatives, carotenoids, tocopherol, vitamins A,D,
E, C, B1, and B2 and free fatty acids. They are not soluble in water, or aqueous
liquids.
Milk fat is secreted from the mammary epithelial cells as fat globules.
The average size of a milk fat globule is about 3um in diameter, but they
can Range from 1 to 18 um.

The milk fat globule is encapsulated by a lipid bilayer membrane made

up of proteins, phospholipids, lipoproteins, cerebrosides, nucleic acids,
enzymes, trace elements, and bound water. The FGM (fat globule membrane)
provides stabilization for the fat globule in the aqueous environment of the milk
serum.
When the FGM membrane is ruptured, the fat globules join together into
a solid mass of fat. (This is what happens during the production of butter).
Milk fat globules are the largest particles in milk but they are also the lightest.
 They have a lower density than milk serum, so the globules rise to the
surface, which is how cream is formed. The density difference is used to
separate milk fat from whole milk in high speed, continuous flow, and
centrifugal separators.
3.8.1 Milk Fat
Composition
Triacylglycerols

o All fats belong to a group of chemical substances called esters, which are
Compounds of alcohols and acids. Milk fat is a mixture of different fatty acid
esters called triglycerides.

o Triglycerides (triacylglycerols) account for 97-98% of the total fat in cows

milk.

o The remaining lipid classes are di- and mono-acylglycerols, phospholipids, free
fatty acids, and cholesterol and its esters.
o A triglyceride contains a glycerol backbone. This glycerol backbone is in red on
the picture on this slide. Free fatty acids are attached to the glycerol backbone
by an ester bond. Each glycerol molecule can bond three fatty acid molecules.
About 437 fatty acids have been identified in the milk fat of cows.

o These fatty acids all vary in chain length, number, position, and geometric
isomerization of double bonds (cis or Trans). If you are have not learned about
fatty acids in your other classes.

o A fatty acid molecule is composed of a hydrocarbon chain and a carboxyl

Group. In saturated fatty acids, the carbon atoms are linked together in a chain
By single bonds. In unsaturated fatty acids, there are one or more double
Bonds in the hydrocarbon chain.

o Fatty acids in milk come from three main sources: from the feed, from the
Mobilization of reserve tissue, and from de novo (from the beginning)
Synthesis within the cow.

3.8.2 Milk Fat - Composition

Saturated and unsaturated fatty acids
Distribution of fatty acids
 Stearic Acid (saturated fatty acid)
The main source of lipid is from the cows food. Little synthesis of fatty
acids occurs in the mammary gland. When the cow consumes food, the lipid is
hydrolyzed to free fatty acids within the rumen of the cow. This means that
unsaturated fatty acids are usually hydrogenated into saturated fatty acids.
Hydrogenation is the addition of hydrogen on unsaturated bonds between
carbon atoms.

Although it seems that milk fat would be mostly saturated in nature, over
30% of milk fat is still unsaturated. The unsaturated milk fat is predominately
oleic acid (C18:1). Stearic acid (a saturated fatty acid) enters the mammary
gland, but within the gland there is a specific C18:0 desaturase which converts
stearic acid to the unsaturated oleic acid. As a result, there is a significant
amount of unsaturated fat in milk. Just know that a desaturase is an enzyme
which removes two hydrogen atoms from the fatty acid, creating a double
bond, but you can learn more about these enzymes in upper level
biochemistry classes.

From the rumen, the fatty acids have two places they can go: 1. the
bloodstream to be deposited as reserve fat or to be metabolized to produce
energy, or 2. the mammary gland.

3.8.3 Distribution of fatty acids

Milk fat of cows can be separated into long-chain and short-chain fatty
acids fractions by distillation or chromatography. The short chain fraction
contains mostly butyrate.
3.8.4 Milk Fat

Changes in milk fat characteristics

- Dietary manipulation
- Seasonal changes

The characteristics of milk fat are highly dependent on the nature of the
preformed fatty acids available in feedstuff. Therefore, it is possible to
manipulate the composition of milk fat by dietary means.

The physical properties of butterfat can be controlled by dietary means

because the melting properties of the triglyceride are related to fatty acid
composition. For example, by dietary manipulation, butter which can be spread
directly from the refrigerator can be produced. On the other hand, butter that is
physically stable at high temperatures can also be made.

During colder winter months, there are more pre-formed fatty acids in the
cows diet than during the summer months. During the summer, cows graze on
grass and drink more water than in the winter months.
3.8.5Principal Fatty Acids in Milk Fat
4.1 SWOT ANALYSIS OF DAIRY INDUSTRY

Strengths:

Flexibility of product mix is tremendous, with balancing equipment.

Technical manpower is professionally-trained, technical human resource pool,
built over last 30 years.
There is a basic raw material need for the dairy industry; that is, milk is
available in abundance.
India has a plentiful supply of technically skilled labourers.
There is an easy availability of technological infrastructure.
India has all the key elements required for a free market system.
The vast livestock population of the country could prove to be a vital asset for
the country and unlike many other natural resources which will deplete over
the years, a sustainable livestock production system will continue to propel
Indian economy.
As the milk productivity of our animals is low, there is a vast scope for
improvement of the milk production and consequently increased marketable
surplus of milk for processing.
Purchasing power of the consumers is on the upswing with growing economy
& continually increasing population of middle class.
Milk consumption in India is regular part of the dietary programme
irrespective of the region and hence demand is likely to rise continuously.
Large number of dairy plants (678 as on March 31, 2004) in public and
cooperative sectors besides several others in the private sector is coming up.
Vast pool of highly trained and qualified technical manpower is available at all
levels to support R&D as well as industry operations.
Large number of small and marginal farmers involved in dairying.
An effective marketing channel helps to meet the demands of the urban
consumer.
Weaknesses:

Bad roads and inadequate transportation facility make milk procurement

problematic.
Competition is becoming tougher day by day.
Lack of control over milk yield.
Hough cross breeding programmers have significantly improved animal
productivity, milk production system in many parts of the country is still
largely dominated by low yielding animals.
Poor condition of roads and erratic power supply remain a major challenge
for procurement and supply of good quality raw milk. Furthermore, raw milk
collection systems in certain parts of the country remain fairly
underdeveloped.
Majority of producers is unaware about scientific dairy farming, clean milk
production and value chain.
Seasonal fluctuations in milk production pattern, regional imbalance of milk
supply and species-wise variation (buffalo, cow, goat etc.) in milk quality
received by milk plants continue to pose serious handicaps.
Absence of comprehensive and reliable milk production data, impact
assessment studies are almost non-existent, investments in dairy research is
also not commensurate with returns and potential.
Large share of milk (7085%) of marketable surplus goes through informal
channel where quality is a big concern
Very little competition to cooperatives because private sector was not
allowed to participate in until recently
Milk production is scattered over a large number of farmers producing
miniscule quantities.
Low milk prices because of lower prices declared by cooperatives, which
results in low prices of milk paid by all players.
 Ad hoc export policies and a ban on exports.
Quality of milk and milk products are a barrier to entry to the export market,
especially the EU and the USA.
Lack of policy focus on strengthening indigenous breeds.
Farmers prices are not based on fat measurement, which affects their
profitability
Opportunities:

Retailing of dairy products also promises great investment opportunities for

standardization and upgrading dairy products in the main metropolitan cities.
There is a great scope for investment in the manufacturing of finished dairy
products such as cheese sauce and cheese powders.
Excessive grazing pressure on marginal and small community lands has
resulted in almost complete degradation of land.
Organized dairy industry handles only 15% of the milk produced. Cost
effective technologies, mechanization, and quality control measures are
seldom exercised in unorganized sector and remain key issues to be
addressed.
Potential for exports due to low cost of production.
Overall positive growth environment, which is triggering the Government to
enhance infrastructure.
There is a gross lack of awareness among farmers about the quality
parameters, including microbiological and chemical contaminants as well as
residual antibiotics.
Middlemen still control a very large proportion of the milk procurement.
Serious efforts need to be taken to eliminate them from the supply chain.
Entry of multinationals could result in a large portion of milk being diverted
towards value added products which, though it augers well for the producers,
is likely to affect the availability of liquid milk supply for mass consumption
especially for the poor urban class.
A parallel economy is thriving on adulterated liquid milk including synthetic
milk in certain pockets which needs to nip in the bud.
Increased farmer income by exploiting the high demand.
Increased consumer sophistication and awareness of quality reception of
quality packaged products slowly.
Threats:

Today milk vendors are occupying the pride of place in the industry.
Organized dissemination of information about the harm that they are doing to
producers and consumers should see steady decline in their importance.
Expanding market will see creation of enormous job and self-employment
Opportunities.
Emphasis on milk fat and not on SNF content maintaining relatively lower
prices of milk.
Large informal markets that extend credit are constraining farmers.
Low productivity and scattered production leading to high cost of
transportation.
Economy is growing at the rate of nearly 8% of GDP. Consequently, the
investment opportunities are also increasing continually.
Demand for dairy products is income elastic. Continued rise in middle class
population will see shift in the consumption pattern in favour of value added
products besides the growth in demand for liquid milk.
Large portion of the population does not care about quality issues in milk.
Because of high price sensitivity for dairy products, people are not willing to
pay for quality.
Significant increase in maize prices can increase feed prices.
5.1 CONCLUSION:
Dairy has a lot of potential to improve rural incomes, nutrition and
women empowerment, and hence is a very critical area for investment. A well-
developed industry will enable millions of farmers to capitalize on the emerging
opportunities and make a significant impact on rural incomes. On the flip side,
weak efforts towards dairy development also can have a significant but negative
impact on the dairy industry. The growth rate has been sluggish over the past
few years. With an increase in demand on one hand and sluggish supply on the
other, there is a likely shortfall in demand in the coming years.