1

WELCOME
TO
PRESENTATION ON

MARKET POTENTIAL OF HIGH-TECH MILKING
PARLOUR SYSTEM/MILKING SYSTEM IN SELECTED
DISTRICTS OF GUJARAT


PRESENTED BY-
Mr. Sunil Kumar Agrawal
Reg. No.(04-705-2010)

ASPEE AGRIBUSINESS MANAGEMENT INSTITUTE
NAVSARI AGRICULTURAL UNIVERSITY
NAVSARI-396450
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Some Facts About Dairy Industry-
India is the top milk producing nation in the world contributing about 15% to
the global milk pool.
According to the 2010 livestock census, there are 166 million indigenous
cattle,33 million crossbred cattle and 105 million buffaloes in India.
The decade wise rate of growth in milk production in India 3.6% is higher than
the world average of 1.5% .
Punjab has the highest productivity of crossbred cows and buffaloes and
Hariana is the top ranking state in terms of the milk productivity of indigenous
animals.
About 35% of milk produced in India is processed.
There are over 1000 dairy plants in cooperative, private and public sectors,
registered with the GOI and state governments.
The market size of processed products in the organized and unorganized sector
is estimated at Rs. 255 billion and Rs, 906 billion, respectively.
India has negligible share in world dairy exports (0.2%),.

Source-livestock census 2010






3
Company Profile
Established - 1996 at Mumbai, Maharashtra.
Company is an ISO 9001:2000 certified company.
Manufacturing plant at Kalol and Halol industrial area.
Vision
To become market leader in dairy food processing
engineering in India through continuous development of latest
technology and constant R&D activities

Mission-
To become a well recognized organization in dairy and food
processing sector. To empower farmers to manage their
business with the use of latest technology and sustainability. To
become a benchmark in terms of quality and after sales
services.

4
Growth Story
Starting of the company with
manufacturing milk cans and
measuring equipments(1996)
Manufacturing of bulk milk cooler
(2007)
Manufacturing of milking
machine
(2009)
Manufacturing of milking parlour
and pilot milk processing unit
(2011)
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Product Range
Sr.No. Product category Products

1.

Milk Cans
Stainless steel milk cans capacity vary
from 5 lt. to 50 ltrs.



2.



Milk measuring equipments
Steel Can Plungers
Stainless Steel Milk Measuring Set
Stainless Steel Funnel
Stainless Steel Can Plungers





3.





Milking utensils
Stainless Steel Milk Pails
Stainless Steel Milk Buckets
Stainless Steel Milk Collection Tray
Stainless Steel Floor Tiles
Bulk Milk Coolers
Cow Drinking Bowl
6
Cont

Sr. No.

Product category

Products

4.

Milking machine
Single bucket model
Double bucket model

5.
Milking parlour system 4x4 model
5x5 model
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Some Of Companys Esteemed Clients
8
The Project
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Objectives Of The Study
1. To study the socio-economic status of progressive dairy
farmers of the districts of Mehsana, Sabarkantha and
Banaskantha.
2. To know about the competitors exists in the region
3. To know the constraints of dairy farmers to accept milking
macine/parlour system.
4. To calculate market potential for high-tech milking machine
system and parlour system.
5. To know the awareness and acceptance for biogas plant
among the dairy farmers.
6. To know about the source of financial assistance for dairy
farmers.
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Research Methodology

Location of the Survey: -
Mehsana, Sabarkantha and Banaskantha
districts of north Gujarat.

Sources of Information:-
Sources of Primary data:- Progressive diary farmers
Secondary sources:- Literature, Internet, company report,
Cooperative societies.
Instrument of data collection :- Pretested Questionnaire for
farmers
Sample Unit:-
Progressive dairy farmers of Mehsana, Sabarkantha and
Banaskantha districts.
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Sampling Method:

Non-probabilistic purposive sampling method was used for selection of
farmers as only those farmer were selected who are having daily milk
production more than 70 liters or more than 10 dairy animals.
Sample design-

Sr .no. Name of Dist. No of farmers Selected
1
Sabarkantha
(Idar,Himmatnagar,Malpur,Bayad,Dha
nsura Talukas were selected)
100
2
Banaskantha
(Deese, Deodar,Palanpur, Vadgam,Dhanera
Talukas were selected)
100
3
Mehsana
(Kadi,Kheralu,Satlasana,Bechraji,Vadnagar
Talukas were selected)
100
Total 300
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Data Analysis Technique:-

Data was analyzed quantitatively using simple statistical
analysis tools such as averages and percentages.

13


DATA PROCESSING
AND
ANALYSIS
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Education Level Of Farmer:
Education level
64
134
45
19
38
0
20
40
60
80
100
120
140
160
P
r
i
m
a
r
y
S
e
c
o
n
d
o
r
y
G
r
a
d
u
a
t
e
P
.
G
.
i
l
l
i
t
e
r
a
t
e
N
o
.

O
f

f
a
r
m
e
r
s
15
Land Holdings- (Hac.)
54
114
89
43
0
20
40
60
80
100
120
No. Of
farmers
Up to 1
hac
1-2 hac 2-4 hac Above 4
hac
land holding
16
Age Group Involve In Dairy
Business:
37
81
133
49
0
20
40
60
80
100
120
140
No. Of
farmers
18-25Yr 26-35Yr 36-45Yr >45Yr
Age group
17
Income Of Farmers From Dairy
Business:
92
116
58
34
0
20
40
60
80
100
120
No. of farmer
25000-
45000
46000-
65000
66000-
85000
>85000
Income in Rs.per month
Farmers income
18
Dairy As Source Of Income For
Farmers-
Dairy as source of income
Primary
76%
Secondary
24%
Primary
Secondory
19
No. Of Dairy Animals:
95
120
53
32
0
20
40
60
80
100
120
No. of
farmers
10 to 15 16-25 26-40 >40
No. of animals
Dairy Animals No.
20
Mehsana District Status-
Source-WAPCOS (Mehsana district agriculture plan2011)
cont.

21
WAPCOS (Mehsana district agriculture plan)
Source- WAPCOS (Mehsana district agriculture plan 2011)

22
Sabarkantha District Status-
Source: WAPCOS Sabarkantha district agriculture plan2011)
cont

23
Source: WAPCOS (Sabarkantha district agriculture plan2011)

24
Banaskantha District Status-
Source: WAPCOS (Banaskantha district agriculture plan2o11)
Cont.

25
Source: WAPCOS (Banaskantha district agriculture plan2011)

26
years In Dairy Farming-
67
136
59
38
0
20
40
60
80
100
120
140
No. of
farmers
0-5Yr 6-10Yr 11-15Yr >15 Yrs
No. of yrs.
27
Source Of Information About New
Technology In Dairy-
Knowledge about new technology in dairy
faming
Dai ry
cooperat i ve
4 3 %
Fai r
19 %
Fri ends/ rel at
i ves
2 1%
Company
represent at i v
e
8 %
Ot her
9 %
Dairy cooperative
Fair
Friends/relatives
Company
representative
Other
28
Method Used For Milking- (N=300)
Method of milking
Hand
Milking
89%
Machine
Milking
11%
Hand milking
Machine milking
29
Which Companys Milking Machine
You Use? (N=33)
Milking machine use
Delaval
91%
Other
9%
Delaval
Other
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Competitors Of Company
DeLaval
Samrudhi Industries ,Ahmedabad
Mahesh Eng. Works, Ahmedabad
National innovation foundation, Ahmedabad
Impression engineers, Vadodara
Shree kamdhenu electronics private ltd.,Anand

31
Satisfaction With Your Existing
Milking Machine? (N=33)
20
13
0
0
5
10
15
20
No .of
farmers
Fully Moderate Unsatisfied
Level of satisfaction
Satisfaction with existing machine
32
Current Awareness And Acceptance in
Future For Milking Machine (N=300)
Awareness and acceptance level
82
88
79
64
67
58
0
20
40
60
80
100
S
a
b
a
r
k
a
n
t
h
a
B
a
n
a
s
k
a
n
t
h
a
M
e
h
a
s
a
n
a
Awareness
Acceptance
33
Parameter Will Preferred For Purchasing
Milking Machine System (N=189)
Parameters for purchasing milking machine
Brand
Name
13%
Price
30%
Quality
57%
Brand name
Price
Quality
34
Reason Behind Not Using Milking Machine
System in future (N=60 Aware but not ready to
accept)
32
10
7
11
0
5
10
15
20
25
30
35
No.of farmers
High cost Require
skilled labor
Problem in
maintenance
Social value
Reason behind not acceptance
35
Awareness For Company-
Awareness for company
6%
94%
YES
NO
36
Present Awareness And Acceptance For High-
tech Milking Parlour System? (N=300)
Awareness and acceptance level
14
21
19
6
11
7
0
5
10
15
20
25
S
a
b
a
r
k
a
n
t
h
a
B
a
n
a
s
k
a
n
t
h
a
M
e
h
a
s
a
n
a
Awareness
Acceptance
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Potential In Sabarkantha District For High-tech Milking
Machine system-
Total no. of progressive dairy farmers = 948
% Acceptance level= 64%
Actual no. of farmers (A)= 606
Avg. no. of animals/ farmer (B) =19
Total no. of animals (C) = AXB = 11514

Potential In volume terms (One for each 10 animals recommend
(D) = C/10 = 1151 machines
In terms of value (40000 Rs. For each for single bucket) In
crores=
DX 40000=1151X40000 = 4.6 Cr.
For double bucket model = 1151X 55000 = 6.33 Cr,
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Potential In Sabarkantha District For High-tech
Milking Parlour System-
Total no. of progressive dairy farmers = 948
% Acceptance=6%
Actual no. of dairy farmers (A) = 57
Avg. no. of animals (B) =19
Total no. of animals C= AXB = 1083
Potential In volume terms (D) =1083/8= 135 parlours
(As per the model 4x4)
Potential In volume terms (D) =1083/10= 108 parlours
(As per the model 5x5) =

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Potential In Banaskantha District For High-tech Milking
Machine System-
Total no. of progressive dairy farmers = 836
% Acceptance level= 67%
Actual no. of farmers (A)= 560
Avg. no. of animals/ farmer (B) = 21
Total no. of animals (C) = AXB = 11760
Potential In volume terms (One for each 10 animals recommend
(D) = C/10 = 1176 machines
In terms of value (40000 Rs. For each) In crores=
DX 40000=1176X40000 = 4.70 Cr.
For double bucket model = 1176X 55000 = 6.46 Cr,

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Potential In Banaskantha District For High-tech milking
Parlour System-
Total no. of progressive dairy farmers = 836
% Acceptance level= 11%
Actual no. of farmers (A)= 92
Avg. no. of animals/ farmer (B) = 21
Total no. of animal (C) = AXB = 92x21=1932
Potential In volume terms (As per the model 4x4)
D = C/8 = 1932/8 = 241 parlour
Potential In volume terms (As per the model 5x5)
D = 1932/10 = 193 Parlours
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Potential In Mehsana District For High-tech Milking
Machine System-
Total no. of progressive dairy farmers = 1023
% Acceptance level = 58%
Actual no. of farmers (A) = 593
Avg. no. of animals/ farmer (B) = 16
Total no. of animals (C) = AXB = 593x16 = 9488
Potential In volume terms (One for each 10 animals recommend
(D) = C/10 = 9488/10 = 949 machines
In terms of value (40000 Rs. For each) In crores
= DX 40000 = 949X40000 = 3.79 Cr.
For double bucket model = 949 x 55000 =5.21 Cr.


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Potential In Mehsana District For High-tech Milking
Parlour System-
Total no. of progressive dairy farmers = 1023
% Acceptance level= 7%
Actual no. of farmers (A) = 72
Avg. no. of animals/ farmer (B) = 16
Total no. of animal (C) = AXB = 72x16 =1152
Potential In volume terms (One for each 8 animals recommend)
D = C/8 = 1152/8 = 144 parlours
Potential In volume terms (As per the model 5x5)
D = 1152/10 = 115 parlours


43
Loan For Dairy Purpose-
Farmers having loan for dairy purpose
No
76%,228
Yes
24%,72
1 Yes
2 No
44
Source Of credit-
10.75%
11.00%
11.25%
10.50%
10.00%
10.20%
10.40%
10.60%
10.80%
11.00%
11.20%
11.40%
Interest rates
HDFC ICICI DENA SBI
Interest rates of different banks
Interest Rate Of Banks For
Dairy-
Source for credit
Others
15%, 11
Equipment
Supplier
6%, 4
Govt. Banks
26%, 19
Private bank
7%, 5
Dairy
Cooperative
46%, 33
Dairy cooperative
Private bank
Govt. Banks
Equipment
Supplier
Others
45
Awareness For Biogas Plant-
Farmers aware about biogas plant
No, 81, 27%
Yes, 219,
73%
Yes
No
46
Farmers Having Biogas
plant- (N=219)
Farmers having biogas plant
Yes , 33,
15%
No, 186, 85%
Yes
No
Farmers interest for biogas plant in future
Yes
34%,102
No
66%,198
1 Yes
2 No
Farmers Interest To Establish
Bio-gas Plant In Future-
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Farmers Having Biogas
plant- (N=219)
Farmers having biogas plant
Yes , 33,
15%
No, 186, 85%
Yes
No
Farmers interest for biogas plant in future
Yes
34%,102
No
66%,198
1 Yes
2 No
Farmers Interest To Establish
Bio-gas Plant In Future-
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FINDINGS
(On the basis of farmers analysis)
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68% farmers are small and medium land holder involved in
dairy farming.
39% farmers are earning 46000-65000 per month from dairy
farming.
76% farmers dairy is their primary business.
89% of farmer of the region is doing hand milking at present.
The main competitor for company in the region is DeLaval.
Awareness for high-tech milking machine is 82%,88% and
79% in district of Sabarkantha, Banaskantha and Mehsana
respectively.
Acceptance for high-tech milking machine is 64%,67% and
58% in district of Sabarkantha, Banaskantha and Mehsana
respectively.
For 43% source of information about new technology for
farmer is dairy cooperative.


50
During purchase of milking machine or other technology in
dairy business 57% of them prefer quality.
For milking machine potential in the districts of
Sabarkantha,Banaskantha and Mehsana is 4.6Cr.,
4.7Cr.,3.79 Cr. respectively for single bucket or for double
bucket it is 6.33 Cr.,9.90 Cr. And 9.65 Cr. Respectively.
Only 18% Progressive dairy farmers are aware about the
high-tech milking Parlour concept.
Only 8% acceptance for high-tech milking Parlour system
among the progressive dairy farmers..
For high-tech milking parlour system potential in
Sabarkantha,Banaskantha and Mehsana is 135,241,144 no.
of unit.

51
Only 6% farmers are aware in this region about the Krishna
Industries.
73% progressive farmers are aware about the Biogas plant.
34% acceptance for Biogas plant among the progressive dairy
farmers.
The main source of credit for farmers is dairy cooperative
because of its easy process and less time consuming process.
The interest rates of banks vary from 10.50% to 11.25% for
credit on dairy.



52
Suggestions-
Company should use full advertisement because there is very
less awareness among the farmers about the company and its
products.
The company should use field demonstration practice for
milking machine and milking parlour system.
Company should establish good dealer network in the region
to cover the whole area.
Company should make the contacts with veterinary doctors of
dairy cooperatives of the districts because he can play major
role in influencing farmers.
Company should make the contract with dairy cooperatives
because farmers prefer to purchase milking machine through
dairy cooperative.
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Companys representative should make direct contact to
farmers for Biogas plant because there is good awareness
among the farmer and also good acceptance so the company
just need to capture the market.
Company should help the farmers to take the advantage of
subsidy on milking machine/palour system.
Company should help the farmer in taking credit from banks.


54
55
As the company has world class quality of product so the
company has good future opportunities from the studied region
but to achieve this market company should highly focus on
awareness and advertisement of the companys product as well
as the company brand.
Dairy farmer of the area also having good economic status so
the acceptance for high-tech milking machine system and
milking parlour system can also increased by increasing
promotional activities like field demonstration for them.
Delavals products are popular among the farmer so the
company has to compete with them.
Company also has good opportunities for its new project on
biogas plant because most of the progressive dairy farmers are
already aware about it .
Initial capital investment for high-tech milking parlour system
is high so the farmers have less acceptance for this, if they get
any kind of subsidy from govt. or any financial support from
the company this acceptance level can be increased.
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Bibliography-
Book-
Dairy cattle principles, practices, problems, profits by
Donaldthe.bath and Frank N. dickingson.
Magazine-
India today- Dairy special
Websites-
http://www.dahd.nic.in
http://frontlineconnect.com
www.nddb.com
www.google.com
www.dairyequiments.com
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