milk supply chain of visakha dairy

The Milk Supply Chain

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Submitted BY

S.HAVISHGitam School Of international business2010-2012

We’ve studied the supply chain of Visakha cooperative dairy. The issues & constraints in each stage of the supply chain were identified. We have given some suggestions for improvements in the supply chain. Some benefits which the farmers are expecting from the Cooperative dairy and Government were also discussed.

Executive Summary

The Supply Chain1

Need to Know

Process Flow

Summing Up

2

3

4

5 Thought to take Away

The Supply Chain1

Need to Know

Process Flow

Summing Up

2

3

4

5 Thought to take Away

Production of

Milk

Collection of

Milk

RetailingDistribution

ChillingProcessing

Farmer Collection Centre

Chilling Centre Dairy Distributors Retailers

45-60 mns 45 mns 7 hours 2 hours

Process

Facility/ Partner

The Supply Chain…

Consumer

5 hours

Temperature Constraints Chilling Centre: 40 C Dairy: 2-40 C

16 hours

The Supply Chain1

Need to Know

Process Flow

Summing Up

2

3

4

5 Thought to take Away

Milk Production(2009)• India- 108.5MT, followed by USA- 80MT• Andhra Pradesh- 9.57MT(2nd rank)

Per Capita Availability of Milk (2009)• India- 258 gms/day• Andhra Pradesh- 317gms/day

Per Capita Monthly Consumption Expenditure(2005) • Rural- 47.3 Rs• Urban- 83.3 Rs

Livestock Population(2003) India has 53% of world Buffalo population and 15% of world Cattle

population

Cattle• India-185.2Million• Andhra Pradesh- 9.3Million

Buffaloes• India-97.9Million• Andhra Pradesh- 10.6Million

Visakha Dairy• Procurement (Lts in Lakhs) Year 2007-08= 1407.71• Milk Sales (Lts in Lakhs) Year 2007-08= 1426.84

Dairy Information • No. of Milk Chilling Centers- 3 • No. of Bulk Cooling Centers- 84 • No. of Feed Mixing Plants- 2 • Union Training Centers - 1 • No. of societies - 1545 • No.of Women Societies- 67 • No. of Producers in Societies- 179146 • No. of Women Members- 33245 • No. of Veterinary First Aid Centers- 661 • No. of Emergency Veterinary Routes- 19

The Supply Chain1

Need to Know

Process Flow

Summing Up

2

3

4

5 Thought to take Away

MILK-SUPPLY CHAIN

MILKING COLLECTION CENTRE

(Measuring of Milk Weight & Fat

Content)

CHILLING CENTRE

(Temp= 4°C)

STOREPROCESSPACKAGE

RETAILER CONSUMER

Farmer

Production of

Milk

Milking the cow

Transportation of milk to the collection centre

The End-to-End Chain…

Collection Centre

Collection of Milk

Collection centre (Kendram)

Collecting the Sample milk

Weighing the milk

Testing for fat content

Dispatch to chilling center

Visakha Dairy Supply Chain…

CHILLING CENTRE

CHILLING

Unloading

Loading into the tank truck

Visakha Dairy Supply Chain…

Chilling the Milk in Tankers

Average fat content

Dispatch

Dairy

PROCESSING

Storing & Processing

Packing

Processing (ex. Pasteurization)

Visakha Dairy Supply Chain…

DISTRIBUTORS

DISTRIBUTION

Visakha Dairy trucks

Visakha Dairy Supply Chain…

RETAILERS

RETAILING

• Non-Exclusive Retailers

Visakha Dairy Supply Chain…Visakha Dairy Supply Chain…

• Exclusive Retailers

CONSUMER

Types of Milk Types of Consumers

Visakha Dairy Supply Chain…

7PM-8PM-Distribution of unpacked Milk8PM-3AM – Chilling & Distribution to Dairy3AM-8AM- Processing 8AM-12PM-Chilling & Packing12PM-2PM-Distribution to Retailers

The Supply Chain1

Need to Know

Process Flow

Summing Up

2

3

4

5 Thought to take Away

Strengths Threats

Weaknesses Opportunities

SWOT ANALYSIS

STRENGTHS Continuous Demand Improved transportation facilities Availability of raw material Manpower Availability of processing equipment

WEAKNESSES Perishability Logistics of procurement Diseases Seasonal fluctuations in milk production patterns

THREATS Foreign products entry Increasing chemical contaminants Drought conditions

OPPORTUNITIES Value addition (product development, packaging) Export potential Employment generation

The Supply Chain1

Need to Know

Process Flow

Summing Up

2

3

4

5 Thought to take Away

Conclusion

• The Supply Chain of Visakha Dairy was studied• The prices depend on the fat content of the

milk• Farmers requirements

Ways to Improve Productivity

• Setting up of Dairy Research Institutes• Genomic Practices• Reefer cans from the collection point

Thank You