INTRODUCTION TO DAIRY INDUSTRY

India is the largest milk producer in the world with an annual production of

84.6million MT. India is 'The Oyster' of the global dairy industry. It offers opportunities galore

toentrepreneurs worldwide, who wish to capitalize on one of the world's largest

and fastestgrowing markets for milk and milk products. A bagful of 'pearls'

awaits the international dairy processor in India. The Indian dairy industry is rapidly

growing, trying to keep pacewith the galloping progress around the world.

Dairy developments have its profound impacton the economy and nutrition levels of

the country. Greater improvement opportunities aregenerated through dairy industryIndias dairy sector is expected to triple its production in the next 10 years in

view of e x p a n d i n g p o t e n t i a l f o r e x p o r t t o E u r o p e a n d t h e W e s t . A l s o ,

I n d i a i s t h e l o w e s t c o s t producer of per litre of milk in the world, at 27 cents, compared with the U.S' 63 cents, andJapans $2.8 dollars. Also to take advantage

of this lowest cost of milk production and increasing production in the country

multinational companies are planning to expand their activities here.

DAIRY DEVELOPMENT

Before the year 1946 there were no milk unions /milk dairy in India. In the year

1946, firstmilk union was formed by a person Mr. Peschenji Edulgi Pollson in Gujarats Khaira districtand the village was Anand. This was named as Anand Milk Union Ltd. i.e., AMUL.At the time, Pollson was purchasing Milk from villagers of Khaira and

Maisa at cheaper rateand then sell the milk and its products in metropolitan cities Mumbai etc. at higher rates andearn more profit.4th January 1946 was a turning point, where people of

Khaira and Maisa district met Sardar Vallabhai Patel, as they were already awakened by the Polsons business. So they thought tostart a cooperative societ y of farmers

who were selling the Milk to Pollson. So, the first cooperative society was started

at Rawrapura. The two primary cooperative societies were established under the leadership

of Murarji Desai.When we were discussing about dairy development, it will be

incomplete without knowingwhat about Dr. Varghese Kurien.Dr. Varghese Kurien is

called as Father of White Revolution in India. He graduated in physics from

Loyola College, Chennai and B.E. (Mech) from Madras Universit y. He iscredited with architecting operation flood the largest dairy development program

in theworld.The chairman of Khaira District Cooperative Milk Producers Union Ltd.

formed TribuvanDairy Plant and this marked the rebirth of AMUL. The AMUL pattern

of cooperative had been a great success. It encouraged Dr. Kurien to set up

NDDB to replicate the AMUL pattern of cooperative across India.Once societies formed

at village level, later district level milk unions established. It includedall societies

coming under that particular district. Once, societies and unions at district levelwere

established, and then State Federations were established. Federation took care of

allthese unions and societies throughout the state.D u r i n g t h e 1 9 5 0 s a n d 1 9 6 0 s , I n d i a

w a s o n e o f t h e l a r g e s t i m p o r t e r s o f d a i r y p r o d u c t s , importing over 40 percent

of milk solids in the total throughput of the dairy industry. Thecommercial import of

milk powder reached its peak at about 53 thousand tons in 1963 -64(Kanitkar, 1999).

This concerned policy makers, and a decision was made to achieve self -sufficiency in

milk production. The major step forward, which has had a far-reaching impact,came in mid -

sixties with the establishment of the National Dairy Development Board (NDDB)

to oversee dairy development in the country. The Operation Flood (OF) program,one of

the world's largest and most successful dairy development programs, was launched

in1970; its main thrust was to organize farmers' cooperatives in rural areas and link

them withurban consumers.

Operation Flood has led to the modernization of India's dairy sector andhas created a

strong network for procurement, processing, and distribution of milk by thecooperative

sector. In 1989, the Government of India launched the Technology Mission onDair y

Development (TMDD) program to support and supplement the efforts of

OperationF l o o d a n d t o e n h a n c e r u r a l e m p l o y m e n t o p p o r t u n i t i e s a n d

i n c o m e g e n e r a t i o n t h r o u g h dairying.India is currently the largest producer of milk

in the world, overwhelmingly thanks to theoutput of millions of smallholder farms. The

OF (Operation Flood) cooperative movementhas been important in dairy marketing in

different parts of the country and undoubtedly has played an important role in

keeping smallholders involved with this fast -growing sector.During the past three

decades, milk production in the country has increased from about 22 million tons in 1970-

71 to 84 million tons in 2001-02 (GOI, 2003). The per capita availabilityof milk, which had

decreased during the pre-OF period, not only kept pace with the growing population but

increased from 107 grams in 1970 to 220 grams in 2000-01.T h e I n d i a n d a i r y i n d u s t r y i s

p o i s e d f o r d r a m a t i c g r o w t h i n t h e c o m i n g d e c a d e s . T h e population growth,

urbanization, income growth, high income elasticity of demand, and changes in

food habits that fueled the increase in milk consumption are expected to continuewell

into the new millennium, creating a veritable Livestock Revolution. As the se

eventsunfold, not all the changes are good, and they have major implications for poverty

alleviation,environmental sustainabilit y, public health, and ethical concerns about

the

treatment of animals as sentient beings. The rapid increase in demand for dairy

products in developingcountries has led to the growth of milk -production activities in

semi-urban areas, which are

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.

essentially detached from their supporting land base. The demand for milk and dairy productsis

increasingl y being met in urban and semi -urban areas by industrial dairy farms,

whichoften generate large amounts of waste.Traditionall y, milk production in India

has been closely integrated with crop production. However, environmental problems

escalate with the scale and intensity of operations, rangingfrom the least worrisome in traditional

systems to highly threatening in large-scale farms. The pollution problem in rural areas is

internalized, as the small amount of manure produced isused as fuel or organic

fertilizer to improve the soil for crop and fodder cultivation. In the commercial

production system, a large amount of waste is generated, which needs to

betreated before its disposal or use. Doing so requires not only careful planning but

also largecapital investments to create the infrastructure for waste treatment and its

economic disposal.The establishment of large commercial dairy farms in urban areas

may create some social problems. The growth stimulus coming from the strong demand

for livestock products is nottransmitted to the rural areas, where it could encourage

rural development, more equitabledistribution of income, and poverty alleviation.

Small producers find it difficult to competew i t h l a r g e c o m m e r c i a l u n i t s d u e t o

p o l i c y d i s t o r t i o n s . M i l k p r o d u c t i o n i n r u r a l a r e a s generates supplementary

income and employment opportunities, which are adversely affected by the growth of

commercial dairy farms.

NATIONAL DAIRY DEVELOPMENT BOARD (NDDB)

NDDB has been established in order to support the dairy development in the

India. The NDDB is aimed at

Providing financial assistance to the cooperative dairies.

Providing technical support.

Providing marketing assistance.

Details about NDDB

NDDB has 170 cooperative unions its members.

NDDB has 15 state federations under its operations.

NDDB operates in 285 districts.

NDDB covers nearly 1, 01,000 villages under its operations.Total milk production of the

industry was 21.2 million MT in 1968 and the production has considerably increased to

84.6 million MT in 2004-05 due to the efforts of NDDB.

The Indian Market - A Pyramid Consumer Habits And Practices Milk has been an integral part of Indian food for centuries. The per capita availability of milk in India has grown from 172 gm per person per day in 1972 to 182gm in 1992 and 203 gm in 1998-99.This Is expected to increase to 212gms for 1999-00. However a large part of the population cannot afford milk.At this per capita consumption it is below the world average of 285 gm and even less than 220 gm recommended by the Nutritional Advisory Committee of the Indian Council of Medical Research. There are regional disparities in production and consumption also. The per capita availability in the north is 278 gm, west 174 gm, south 148 gm and in the east only 93 gm per person per day. This disparity is due to concentration of milk production in some pockets and high cost of transportation. Also the output of milk in cereal growing areas is much higher than elsewhere which can be attributed to abundant availability of fodder, crop residues, etc which have a high food value for milch animals. In India about 46 per cent of the total milk produced is consumed in liquid form and 47 per cent is converted into traditional products like cottage butter, ghee, paneer, khoya, curd, malai, etc. Only 7 percent of the milk goes into the production of western products like milk powders, processed butter and processed cheese. The remaining 54% is utilized for conversion to milk products. Among the milk products manufactured by the organized sector some of the prominent ones are ghee, butter, cheese, ice creams, milk powders, malted milk food, condensed milk infants foods etc. Of these ghee alone accountsfor 85%.It is estimated that around 20% of the total milk produced in the country is consumed at producer-household level and remaining is marketed through various cooperatives, private dairies and vendors. Also of the total produce more than 50% is procured by cooperatives and other private dairies.

While for cooperatives of the total milk procured 60% is consumed in fluid form and rest is used for manufacturing processed value added dairy products; for private dairies only 45% is marketed in fluid form and rest is processed into value added dairy products like ghee, makhan etc.Still, several consumers in urban areas prefer to buy loose milk from vendors due to the strong perception that loose milk is fresh. Also, the current level of processing and packaging capacity limits the availability of packaged milk. The preferred dairy animal in India is buffalo unlike the majority of the world market, which is dominated by cow milk. As high as 98% of milk is produced in rural India, which caters to 72% of the total population, whereas the urban sector with 28% population consumes 56% of total milk produced. Even in urban India, as high as 83% of the consumed milk comes from the unorganized traditional sector. Presently only 12% of the milk market is represented by packaged and branded pasteurized milk, valued at about Rs. 8,000 crores. Quality of milk sold by unorganized sector however is inconsistent and so is the price across the season in local areas. Also these vendors add water and caustic soda, which makes the milk unhygienic. India's dairy market is multi-layered. It's shaped like a pyramid with the base made up of a vast market for low-cost milk. The bulk of the demand for milk is among the poor in urban areas whose individual requirement is small, maybe a glassful for use as whitener for their tea and coffee. Nevertheless, it addsup to a sizable volume - millions of litres per day. In the major cities lies an immense growth potential for the modern sector. Presently, barely 778 out of 3,700 cities and towns are served by its milk distribution network, dispensing hygienically packed wholesome, quality pasteurized milk. According to one estimate, Penetration of milk productsWestern table spreads such as butter, margarine and jams are not very popular in India. All India penetration of butter/ margarine is only 4%. This is also largely represented by urban areas, where penetration is higher at 9%. In rural areas, butter/ margarine have penetrated in 2.1% of households only.The use of these products in the large metros is higher, with penetration at 15%.Penetration of cheese is almost nil in rural areas and negligible in

the urban areas. Per capitaconsumption even among the cheese-consuming households is a poor 2.4kg pa as compared to over 20kg in USA. The lower penetration is due to peculiar food habits, relatively expensive products and also non-availability in many parts of the country. Butter, margarine and cheese products are mainly manufactured by organized sector. Similarly, penetration of ghee is highest in medium sized towns at 37.2% compared to 31.7% in all urban areas and 21.3% in all rural areas. The all India penetration of ghee is 24.1%. In relative terms,penetration of ghee is significantly higher in North and West, which are milk surplus regions. North accounts for 57% of ghee consumption and West for 23%, South & East together account for the balance 20%. A large part of ghee is made at home and by small/ cottage industry from milk. The relative share of branded products in this category is very low at around 1-2%.Milk powder and condensed milk have not been able to garner any significant consumer acceptance in India as indicated by a very low 4.7% penetration. The penetration is higher at 8.1% in urban areas and lower at 3.5% in rural areas. Within urban areas, it is relatively higher in medium sized towns at 8.5% compared to 7.7% in a large metros. Market Size And Growth Market size for milk (sold in loose/ packaged form) is estimated to be 36mn MT valued at Rs470bn. The market is currently growing at round 4% pa in volume terms. 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. The top 6 states viz. Uttar Pradesh, Punjab, Madhya Pradesh, Rajasthan, Tamil Nadu and Gujarat together account for 58% of national production.Milk production grew by a mere 1% pa between 1947 and 1970. Since the early 70's, under Operation Flood, production growth increased significantly averaging over 5% pa.About 75% of milk is consumed at the household level which is not a part of commercial dairy industry.

Loose milk has a larger market in India as it is perceived to be fresh by most consumers. In reality however, it poses a higher risk of adulteration and contamination. The production of milk products, i.e. milk products including infant milk food, malted food, condensed milk & cheese stood at 3.07 lakh MT in 1999. Production of milk powder including infant milk-food has risen to2.25 lakh MT in 1999, whereas that of malted food is at 65000 MT. Cheese and condensed milk production stands at 5000 and 11000 MT respectively in the same year.the packed milk segment would double in the next five years, giving both strength and volume to themodern sector. The narrow tip at the top is a small but affluent market for western type milk products.

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.

MARKETING
The market for dairy cooperative has been encouraging. In 2001 -02

a v e r a g e d a i r y cooperative milk marketing stood at 134.23 lakh liters and is expected to

grow at 5% over thenext five years.- During the last decade the milk supply to each 1000

urban customers has increased from17.5 to 47.3 liters. This increase encourages the cooperative milk marketers.- The annual value of Indias milk production amount to Rs.850

billion.

COOPERATIVE DAIRY UNIONS AFFILIATED TO NDDB

NDDB has 15 state dairies cooperative unions

under the operation. The dairies cooperativeunions are:1.Andhra Pradesh Dairy

Cooperative Federation [APDCF] 2.Bihar Cooperative Milk Producers Federation [BCOMFED] 3.Gujarat

Cooperative Milk Marketing Federation Limited [GCMMF]

4.Haryana Dairy Development Cooperative Federation [HDDCF]

5.Himachal Pradesh State Cooperative Milk Marketing Federation Limited

[HPSCMPF] 6.Karnataka Milk Producers Federation [KMF]7.Kerala State

Cooperative Dairy Federation Ltd [KCMMF]

8.Madhya Pradesh State Cooperative Dairy Federation Ltd [MPCDF]

9.Maharashtra Rajya Sahakari Maryadit Dudh Mahasangh [MAHASONGH] 10.Orissa state cooperative Milk Producers Federation

Ltd [OMPFD]

11.Pradeshik Cooperative Dairy Federation Ltd (UP) [PCDF]

12.Punjab State Cooperative Dairy Federation Ltd [MILKFED]

13.Rajasthan Cooperative Dairy Federation Ltd [RCDF] 14.Tamil Nadu Cooperative Milk Producers Federation Ltd [TCMPF] 15.West Bengal Cooperative Milk Producers Federation Ltd [WBCMPF]

These cooperative unions are affiliated to NDDB and these unions get financial technical andmarketing assistance from NDDTHE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.

COMPANY PROFILE

INTRODUCTION
The Kolhapur District Co-operative Milk producers Union Ltd., Kolhapur was
established on16thMarch 1963 under the Co-operative Act. It made a moderate beginning g by collecting700 liters of Milk per day from 22 societies. Most success stories have a humble beginning &also it has been with Kolhapur Zilla Dudh Utpadak Sangh Maryadit.On 16thMarch 1963 a spark stormed a fire to help the White Revolution revolt heavily, whenon this day came into being the Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd with theintroduction of its popular brand of Gokul Milk & its wide range of Dairy products in to themarket.The Kolhapur District Co-operative Milk Producers Union Ltd., Kolhapur established on16th March, 1963 under Co -operative Societies Act (Regd. No. KPR-PRD [A] 102), made amoderate beginning by collecting 700 liters of milk per day from 22 societies. The basic function of the union during the formative years was to procure the milk and supply it to

thegovernment dairy in Tarabai Park, Kolhapur. This modus operandi continued for many years.In 1978, The National Dairy Development Board included Kolhapur District under OperationFlood area and this was the beginning of a new era for the milk union. The project wasfinanced by the National Dairy Development Board (NDDB). On turnkey basis NDDB constructed a 2 lac liters per day capacit y dairy plant at Gokul -Shirgaon. Similarl y, at Gadhinglaj and Bidri chilling centers of 75,000 and 50,000 liters / day capacity were alsoc o n s t r u c t e d w i t h t h e h e l p o f N D D B . T w o m o r e C h i l l i n g c e n t e r s a t G o g a v e a n d a t Tawarewadi have proposed under o p e r a t i o n f l o o d - I I I p r o g r a m m e o f N a t i o n a l D a i r y Development Board. The expansion of Cattle Feed Plant from 100 MTD to 200 MTD has been completed during Oct., 1992, under the financial assistance from National DairyDevelopment Board under OF-II programme.The dairy was commissioned towards the end of 1985. Meanwhile, with the efforts of the National Dairy Development Board, the government milk scheme in Kolhapur was handed over to the Kolhapur Dudh Sangh in 1985. With commissioning of a new dairy at Gokul Shirgaon, the government became defunct. During 1985, the average milk procurement was114836 liters per day with 676 village level societies affiliated to the Dudh Sangh.T h e r e f o r e , the raise in procurement every year has been very fast and i n 1994-95 the average procurement was 376,501 liters per day. In the flush of 19 94,

maximummilk procurement touched figure of 4, 47,262 liters per day.

NATURE OF THE BUSINESS CARRIED

The organisation involved in production of milk products such as Skimmed milk powder,Butter, Ghee, Table butter, Shrikhand, Curd, Paneer and Lassi. It also stores and sells themilk. Thus, the following are the major activities carried by the Kolhapur District Co -operative Milk Producer Union Ltd.,:

Undertake activities of procuring clean and quality milk at main dairy and chillingcenters from dairy farmers through their Village Co-operatives and remunerative price throughout the year on qualitative basis.

Process and convert into products the milk received from the dairy co -operatives,take up commercial production and marketing of Gokul products such as Milk powder, Ghee, Butter, Table Butter and Shrikhand (Sweet Curd). Supply surplusmilk to Mahanand Dairy, Mumbai manage d by Maharashtra Raj ya SahakariMaryadit Dudh Mahasangh (MAHASONGH), Mumbai, Goa Union and to other cities and towns for consumption of consumers.

Manufacture balanced Cattle Feed for supply to the dairy co-operatives in the milk shed at reasonable price.

Convert conventional dairy co -operatives into Anand Pattern and r e g u l a r l y monitor their functions through Extension Services Wing of Procurement and Input Department.

For maintaining rate of milk production in Kolhapur district, here onwards a stressw i l l h a v e t o b e g i v e n o n s c i e n t i f i c b r e e d i n g . S h o r t a g e o f s e m e n m a t e r i a l o f excellent genetic quality is main problem which is being faced in animal breeding.For this matter progeny testing and sire proving programme will have to be taken up. Embryo transfer activit y undergoing in the Kolhapur Union is additional complimentary point for the above programme.

With a view to create awareness and encourage lady farmer members in day to day activities of milk production and management o f co-operative societies, aseparate cell called Co-operative Development Cell is opened.

With the help of NDDB, a training centre is established to train s o c i e t y secretaries, management committees, first aid and milk testers etc for effectivemanagement of Dairy Co-operatives. This facility is also extended to the adjoiningdistrict Milk Union.The above stated products are sold under family brand name of Gokul. Marketing of liquid milk & products outside the state is organized by the federation. Excellence in qualityis maintained to lay a solid foundation for widespread acceptance for Gokul products.

Objectives of the Dudh Sangh

Development of infrastructure for procurement of Milk in rural areas of Kolhapur District to ensure an assured market for Milk producers throughout the year, as well as good remunerative prices. Fulfill the growing need for Milk & Milk products of the consumers in Maharashtra & else where. Organize the Co-operative structure of milk producers at the village level. Supplement the programme extension & inputs, with particul reference to feed & fodder production & implement an

intensive breeding programme for Milk animals to increase

Milk production.

Imparting training for developing human resource at rural level

for effective leadership, Management skills & improvement of

services to rural Milk producers.

4.3.2 VISION
Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd. , K o l h a p u r , c o m m o n l y k n o w n as Gokul is a farmer's Dairy Co-operative organisation dealing with more than 300,000 ruralmilk producers. This professionally managed organisation is working under able and dynamicleadership of its Chairman, Mr. Rajkumar S Hattarki. Its paid -up share Capital is of Rs.150million and its annual turnover is of Rs.3.5 billion.Daily 460,000 liters of milk is handled by the organisation out of which about 80% share is of buffalo milk. Its main dairy of 750,000 LPD capacity with powder plant of 30 M.T. per dayc a p a c i t y i s situated at Kolhapur in Maharashtra State. T his processing facility i s supplemented by a chain of Chilling units located in its operational area.O n t h e m e r i t o f its excellent performance, the organisation has won Indian N a t i o n a l Productivity Council Awards for 11 times during last 11 years.It is highly cautious in observing strict quality control norms in its various operations. To getISO-14000 certification in the upcoming year.W h i l e s t r i v i n g h a r d t o p r o v i d e u t m o s t s a t i s f a c t i o n t o i t s e s t e e m e d c u s t o m e r s i t i s a l s o constantly endeavoring to improve the quality of life of its rural producer members throughexecution of unique village development programmes i.e. Gokul Gram Vikas Yojana.In order to enhance Milk production, the Sangh provides on credit, quality Cattle feed on a'no profit no loss' basis, as well as free A.H. services & nominally charged A.I. services to theProducer members.All-round achievements of organisation is cumulative outcome of visionary directions from its members of Board of Directors, Managing Director, dedicated work put up by its able anddevoted staff and last but

most important one is whole hearted involvement of its member producers in policies of organisation.

4.3.3MISSION
The mission identifies the basic function or task of an enterprise or agency or any part of it.Every kind of organized operation has, or at least should have if it is to be meaningful, a purpose or mission. In every social system, enterprises have a basic function or task that isassigned to them by society.So, people sometimes think that the mission of a business, as well as its objective, is to makea profit. It is true that every kind of enterprise must have, a surplus in business, a profit goal or objective if it is to survive and do the task society has entrusted to it.Thus, The Kolhapur District Co-operative Milk Producer Union Ltd. has following missionstatement We Endeavor to satisfy the taste and nutritional requirements of the customers through excellence in marketing by Gokul team, and committed to offering quality products that provide best value for product.

4.7 COMPETITION ANALYSIS

In todays world, every organization is in search of the market potential, the Kolhapur districtis not large as other metros. Thus, the Mumbai city can be easily targeted by the competitors.The main competitor for every dairy is the loose milk vendor. They are the one who have captured major share of the milk supply because of their long term relationship and contacts they havemaintained with the customers. The Kolhapur District Co-operative Milk Producers Union Ltd. The Kolhapuri people taste new brands of milk every year Right now/ till date there are 16c o m p e t i t o r s i n t h e m a r k e t a p a r t f r o m G o k u l . T h e r e 5 m a j o r b r a n d s w h i c h a r e v e r y competitive for Gokul are, Arokya, Mayur. Sahyadri

Arogya Dairy : It procures most of the milk from south side of the Kolhapur District, b e c a u s e t h e i m m e d i a t e s t a t e i s K a r n a t a k a a n d A r o g ya i s o n e o f t h e l e a d i n g d a i r i e s i n Karnataka. It procures 10,000 liters of milk every day. It is located near Desur a village of Belgaum district 10 kms away from city on NH4 A- they supply most of the procured milk tothe some milk societies of The Kolhapur District Co-operative Milk Producers Union Ltd.. Mayur Dairy : It procures milk mainly from districts large scale milk. It procures morethan 25,000 liters per day. It is also located in Kolhapur & the supply milk to Kolhapur aswell as Belgaum district.The standard milk of Mayur dairy contents a fat of 6.5% & 9% with this fat & S.N.F theysupply nearly 10,000 LTPD. Sahyadri milk: The dairy is located in Shinnolli Taluka, Chandgad & district Kolhapu r.This is 115 kms away from Kolhapur city. It procures dairy about 30,000 LTPD which will be supplied in some part of the district as well as in the Karnataka state. Mahalaxmi Dairy : The Mahalaxmi dairy plant is located near Kolhapur, which procure round about 15,000 to 20,000 LTPD & its target market area in Belgaum district, Gokak & inMaharashtra state. Besides, the above main brands to other competitive brands like Krishna, Gopal, Aditya, and Arokya etc.

COMPANY PROFILE NAME THE KOLHAPUR DISTRICT COOPERATIVE MILK PRODUCERS UNION LTD.KOLHAPUR GOKUL DAIRY LOCATION REGISTERD OFFICE ESTABLISHMENT CONSTITUTION PHONE NO. FAX TELEX GRAM WEBSITE 16 TH MARCH 1963 COOPERATIVE SOCIETY (0231) 2672311(5 LINES) (0231) 2672374 195/248 DUDH SANGH www.gokulmilk.coop CHAIRMAN: chairman@gokulmilk.coop MD :md@gokulmilk.coop SALES : B-1 MIDC GOKUL SHIRGAON KOLHAPUR-416234

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD. levels. It also got ISO-9002 Certification in the year of 1998. Here are some details of theawards that we have won over past years.. 1) NATIONAL PRODUCTIVITY COUNCIL AWARD (1stPRIZE) The above image denotes1st Prize for National Productivity Council Award.The 1st Prize was won for the following years 89-90 91-92

and 93-94 (won for both Dairy & Cattle feed categories) 2) NATIONAL PRODUCTIVITY COUNCIL AWARD (2nd PRIZE) Garden city college , Bangalore 22

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD. The above image denotes 2nd Prize for National Productivity Council Award.The 2nd Prize was won for the following years 92-93 (won for both Dairy & Cattle feed categories) 94-95 (won for both Dairy & Cattle feed categories) and 96-97 3) MERIT CERTIFICATE AWARDS The image on the right denotes theMerit Certificate award,this was won for the following years

93-94 94-95 4.4 PRODUCT PROFILE The Gokul Dudh Sangh Products are extremely popular in the Local & Distant Markets.Branded as Gokul Products, they include Milk, Shrikhand, Ghee, Table Butter, and SkimmedMilk Powder & White Butter. Garden city college , Bangalore 23

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD. Moreover, Skimmed Milk Powder is IS-Part I & Part II Extra Grade, which is on its way tocapture the global market. In 1988, Liquid Milk Marketing was launched in Mumbai by theDudh Sangh. Sales initially were 16,000 Liters/Day. Today, Standard, Cow & Tonned Milk together account for more than 3.5 Lakh Liters/Day. In 1993 Gokul Milk was launched inPune where the sales are 20,000

Liters/Day. The present sale in local Milk market is 70,000 Litres/Day. Thus, the following chart explains the different types of products of Gokul Dairy: 1) MILK The following table gives the details of the Brand, the different kinds of milk, packing size, Fat, Rates, Moisture, SNF, Carbo-hydrates, Minerals, Protein, andCurd. B r a n d G o k u l Garden city college , Bangalore 24

One more strength of the organisation is it processes the local milk; thereforeit is having reduced transportation cost. It e n j o ys h i g h e s t m a r k e t s h a r e s i n t h e p a c k e d m i l k s e g m e n t i n K o l h a p u r district and some part of Karnataka and Goa states. Weaknesses: There are also some weaknesses of t he organisation. So, following are s o m e o f t h e weaknesses of The Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd.: Poor retail selling and consumer grievance handling Commission paid to its retailers is less compare to other brands Inadequate sales promotional activities. Opportunities: Due to wide coverage and social activities carried by the organisation it has the followingopportunities. There is a scope for developing new area or market share not only inKolhapur district but also in other districts and neighbor states. Availability of buffalo milk improves milk quality. So, it leads to maximumcoverage of market share. Threats: Today the market become borderless, there is a free entry and free exit of any player. Becauseof this, customer enables to get full information about what he is buying or going to buy. Healso has more choices and preferences. Thus, The Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd. also has some threats, as follows: There are no any entry barriers for private players. Low level of consumer awareness. Many consumers are not aware about the Gokul and its products. Persuaded benefits of competing brands Due to low commission for retailer they may prefer to go to other competitors

It has become imperative for the Maharashtra government to permanently rehabilitate the cattle class, in the real sense of the term, so that the residents of Mumbai can get their milk supply from about 28,000 cattle, housed in water-starved Palghar. On the intervention of the Supreme Court, which has addressed an appeal filed by the Mumbai Cattle Traders Association, the state government said it would determine the possibility of a permanent site for the cattle market. The market is located on 25,000 sq ft of land at Goregaon, but the government wants to shift it to a 6,548 sq ft shed in Palghar, Thane. While Palghar has a capacity to supply 5,000 litres of water, the cattle had been using 40,000 litres water a day at Goregaon. Moreover, the new site lacks basic infrastructure. The governments decision is based on a committees recommendation. Earlier, the market was to be shifted near Vasai. But with both Vasai and Virar getting increasingly congested, the government thought it fit to shift the market to Palghar. While dismissing the petition by aggrieved cattle traders four years ago, the Bombay high court termed the governments decision as administrative in nature. The HC also said it will be the responsibility of the government to make arrangements for shifting the market. Mumbais daily requirement of fresh milk is over 50 lakh litres, and by throwing the tabela owners out of the city, there is an expected shortfall of 7.50 lakh litre of milk daily. The cattle traders allege that the government is working with the builder lobby to grab over 150 acres of land in the city, which has sheltered tabelas for over a century. The private tabela owners have 28,000 buffaloes. They say the fresh milk cant last for more than four hours, and it is impossible to transport milk from the shed to Mumbai in that time. Over 40,000 families income depends on the tabelas, it is said.

NUTRITIONAL INFORMATION

Gokul Shakti

NUTRITIONAL INFORMATION Per 100 ml Provides Approximate Calories ................................................47 kcal Fat ... 1.5 g Protein ......................................................3.4 g Carbohydrates ........................................ 4.9 g Calcium ............................................... 110 mg

NUTRITIONAL FACTS

Gokul Classic

'GOKUL' PASTEURISED FULL CREAM MILK *NUTRITIONAL FACTS Energy 95 kcal/100ml Energy from fat 58.5 kcal/100ml Amount ....................................Per 100 ml Total Fat g .........................................6.5 g Saturated Fat g ..................................4.1 g Cholesterol.......................................17 mg Total Carbohydrates g .....................5.2 g Protein g ............................................3.8 g Vitamin A, IU .................................150IU Calcium ........................................ 140 mg * Approximate Values

Gokul Satvik

'GOKUL' PASTEURISED COW MILK *NUTRITIONAL FACTS Energy 66 kcal/100ml Energy from fat 31.5 kcal/100ml Amount ....................................Per 100 ml Total Fat g .........................................3.5 g Saturated Fat g ..................................2.4 g Cholesterol.......................................10 mg Total Carbohydrates g .....................5.1 g Protein g ............................................3.4 g Vitamin A, IU ..................................120IU Calcium ........................................ 110 mg * Approximate Values

Gokul Taza

'GOKUL' PASTEURISED TONED MILK *NUTRITIONAL FACTS Energy 61 kcal/100ml Energy from fat 27 kcal/100ml Amount ....................................Per 100 ml Total Fat g .........................................3.0 g Total Carbohydrates g .......................5.1 g Protein g ............................................3.4 g Calcium ........................................ 110 mg * Approximate Values

Gokul Shakti

'GOKUL' PASTEURISED DOUBLE TONED MILK *NUTRITIONAL FACTS Energy 50 kcal/100ml Energy from fat 13.5 kcal/100ml Amount ............................................Per 100 ml Total Fat g .................................................1.5 g Total Carbohydrates g ...............................5.2 g Protein g ....................................................3.8 g Calcium .................................................. 95 mg * Approximate Values

4 Milk

market segmentation: Study on the consumers preferences in urban Albania Problem statement
Albania has been, is, and will remain for years a country where agriculture will play a very important role. Currently agriculture makes up about 23% of GDP (MoAFCP 2008a). Therefore it is important to consider agriculture in any of the countrys strategic planning. Despite the importance of agriculture for the national economy, Albania is a net importer of agricultural products. The ratio of exports to imports in total is 1:8, with the value of total import of milk products in 2007 at 12,803,463 Euros (MoAFCP 2007). However, in the process of approximation to the European Union (EU), Albania seeks potential export opportunities to EU and international food markets. Milk is among the traditionally produced agricultural goods in Albania. The dairy industry, and along with it the milk collection system, are still in the course of modernizing structures and technologies. In the late 1990s, the first private milk processing plants were established in different regions of the country. Most small processing units use traditional craftsmanship technologies until today. Actually there are a number of modern processing plants operating successfully, although these are struggling with the competition from informal markets. Nevertheless, consumers are discovering their preference for processed products. In the last ten years Albania has gone through a lot of changes, which has also been reflected in the Albanians diet, product preferences and quality. As milk is a very important component of the Albanians diet, in this study we are trying to focus in different preferences of consumers toward milk attributes. These preferences might lead to market segmentations, in which producers and policy makers might focus to improve the product quality and to meet the consumers needs. The evolution experienced by the food sector along with the availability of higher computational power has greatly changed in the last ten years the models analysts employ to explore the purchase and consumption patterns of the post-industrial society. Nowhere is the change in determinants of food selection by consumers more evident than in urban food markets. Here consumers are furthest removed from food production processes, and hence more dependent on cues and labeling information. Typical food products must now compete in markets, which are wider and more segmented than they have ever been. Within this context, the purpose of this research is to analyze and contrast the preferences of urban Albanian consumers with regards to milk, which is a traditional component of the Albanians diet, widely adopted throughout Albania. Due to the significance of livestock and milk production, particularly in rural areas, MoAFCP has selected the milk sector as a policy priority. The Albanian government and MoAFCP are inclined to support primary production and the dairy industry. One of their stated objectives is to improve the competitiveness of products in order to substitute for import and increase export potential. (Petrick, Schreiber, Weingarten, 2003)

Objectives
The main purpose of this study is to analyze if there are differences in the consumers preferences in choosing milk in the market, especially to differentiate consumers behavior towards fresh and UHT milk. In other words the study tries to find out how different consumers consider different 5

attributes of milk, when they buy the product. From these differences we can than determine the market segmentation toward this. Objective: Determine the differences in consumers preferences on milk in Albanias three main urban districts Tirana, Fieri and Berati Hypothesis of the study: KOLHAPUR ZILLA SAHAKARI DUDH UTPADAK SANG
SR.NO. BRAND NAME WARANA TYPE OF MILK QTY. IN ML 500 500 500 500 500 BAG WEIGHT (GM) 512 PASTEURISED COW MILK WHOLE TONED STD 2 MOTHER DAIRY TONED 515 517 518 519 PASTEURISED WHOLE MILK PASTEURISED TONED MILK STANDARDISED PASTEURISED MILK HOMOGENISED & PASTEURISED MILK MILK TYPE

DECLARA ADDRESS

COW

SHRI WARANA SAHAKAR SANGH LTD.TATYASAHE WARANANAGAR. PIN 416 85 PACKED AT-PLOT NO YARD,TURBHE,NAVI MUM

SWARAJ

COW

500

514

PASTEURISED HOMO. COW MILK

PACKED AT-IGLOO COLD APM YARD,TURBHE,NAV DISRI.BY- MOTHER DAIR LTD.PATPARGANJ,DELHI (011)22474277/1455 SWARAJ DUDH PRAKALP POULTRY FARM PVT.LTD PHALTAN,DIST.-SATARA, PACKED AT-PLOT NO.46/ 18,VASHI, NAVI MUMBAI-

KANHAIYA

TONED (FRESH) COW COW (ANNAPURNA) TONED (TEJ)

500 500 500 500

522 515 517 516

HOMO. & PASTEURISED TONED MILK PASTEURISED HOMO. COW MILK HOMO.PASTEURISED COW MILK HOMO. & PASTEURISED TONED MILK WITH VIT A

PROCESSED BY- SHRI KR FARMS PVT LTD. PACKED DISTRIBUTORS. 409B,NA LANE,PUNE-411030. PH-9

MAHANAND

AMUL

TONED (TAAZA) COW

500

517

PASTEURISED HOMO. TONED MILK PASTEURISED & HOMOGENISED COW MILK PASTEURISED TONED MILK HOMO.PASTEURISED COW MILK PASTEURISED FULL CREAM MILK

(a)PACKED AT-PLOT NO. 18,VASHI, NAVI MUMBAIDAIRY,4/3,BHILAREWADI HAWELI,PUNE-411046 M RAJYA SAHAKARI DUDH WESTERN EXPRESS HIG MUM.65 KAIRA CAN CO.LTD. TIEC ROAD MUMBAI-400011 M OP. MILK MARKETING FE

AAREY

500

493

MAHARASHTRA SHASHA VIBHAG PRASHASKIY IMA FACE,MUMBAI-400018

KRISHNA

TONED (TAJAGI) COW FCM

500 500 500

515 516 517

RAJARAMBAPU PATIL SA NO.A-1 & 16-19 MIDC ISLA SANGALI (02342)220136,2 AT-PLOT NO.46/6,APM YA MUMBAI-400703

STD 9 GOVIND COW

500 500

518 522

PASTEURISED STANDARD MILK HOMO. & PASTEURISED COW MILK

GOVIND MILK & MILK PRO GANESHSHERI,PANDHAR ROAD,PHALATAN,DIST.S PACKED AT PLOT NO.46 MUMBAI.PH-(022)2788961

10

AMBAI

STD

500

517

PASTEURISED STANDARDISED MILK

MAHALAXMI SAHAKARI D LTD.KOLHAPUR A/P.HAM KAGAL,DIST.KOLHAPUR PACKED AT - INDL.AREA - 400705

11

RAJHANS

COW

500

517

PASTEURISED HOMO. COW MILK

SANGAMNER TALUKA SA UTP.PRAKRIYA SANGH L (AMRUTNAGAR) TAL.- SA PH.-(02425)225410

SR.NO.

BRAND NAME HEERA

TYPE OF MILK

QTY. IN ML 500

BAG WEIGHT (GM) 529

MILK TYPE PASTEURISED HOMO. TONED MILK PASTEURISED HOMO. COW MILK PASTEURISED HOMO, TONED MILK PASTEURISED HOMO. COW MILK PASTEURISED HOMO. COW MILK

DECLARA ADDRESS

12

TONED

HIRANYAKESHI GHATPR MULTISTATE CO-OP UNIO DIST.KOLHAPUR

13

MUKUND MADHU 14 GANESH

COW TONED COW

500 250 500

510 252 517

MULIKA DAIRY, A/P. VADG PARNER, DIST. AHMEDN MULIKA DAIRY, A/P. VADG PARNER, DIST. AHMEDN GANESH MILK PRODUCT MARKET, SECTOR 1-A, K MUMBAI - 400709 CO

15

VIKRAM

COW

500

518

VIKRAM MILK & MILK PRO SANGAVI, TAL. PHALTAN 021662164252, PKD. AT. I PLOT NO. 46/16, SECTOR MUMBAY.

16 17

MAULI SONAI

COW COW

500 500

524 504

PASTEURIZED HOMO. COW MILK PASTEURISED HOMO. COW MILK PASTERISED HOMO. TONED MILK PASTERISED HOMO. TONED MILK

MULA AGRO PRODUCTS RAHURI, DIST. AHMEDNA INDAPUR DAIRY & MILK P GOKHALI, TAL. INDAPUR 02111 282740, 282440

18

TUKAI

TONED

250

257

GAVALIBABA DAIRY FAR PARNER, DIST-AHMEDNA 02488289913

19

SURUCHI

TONED

500

507

SURUCHI DAIRY IND.PVT SHIRUR,DIST-PUNE 4122

20

DWARKA

COW

500

513

PASTEURISED HOMO. COW MILK

MILK RAFT DAIRY TECH. APPART.SHIVAJI RD. OPP PKD.AT.HIRRANYAKESHI MULTISTATE CO-OP.UNIO INDS.AREA,MIDC,TURBH

21 22 23

ANANT AMOL SHIVAMRUT SHIVAMRUT

COW TONED COW TONED COW

500 250 500 500 500

500 254 512 514 513 PASTEURISED HOMO. TONED MILK PASTEURISED HOMO. COW MILK PASTEURISED HOMO. TONED MILK PASTEURISED HOMO. COW MILK PASTEURISED HOMO. COW MILK PASTEURISED HOMO. COW MILK

ANANT DUDH PVT.LTD. A PUNE-412205,CONTACT 0 MAULI AGRO PRODUCTS (NEVASA PHATA) TAL. NE SHIVAMRUT DUDH UTPA AKLUJ, TAL. MALSHIRAS, 02185 222566, 222126

24

AMRUT DHARA SANDIP

AMRUT DAIRY, PLOT NO. MANGAON, DIST. RAIGAD 251251

25

COW

500

504

26

SARATHI

COW

500

516

SUDARSHAN MILK & AGR G/122, M.I.D.C. AHMEDNA 2779182/83 SUYOG MILK & AGRO PR NIRGUDSAR, TAL. AMBEG

Different consumers regarding, age, education, sex, income level etc. react differently towards

MILK MARKET SHARE MUMBAI

Coperative Milk Sale 41% Private Milk sale 17% Loose Milksale 42%