vikas dairy by sun

An Industrial Attachment Report

on

VIKAS DAIRY

Prepared by,Sunit GajareSumant SangleINSTITUTE OF AGRIBUSINESS MANAGEMENT, NAVSARI

STUDY OF DAIRY CO-OPERATIVE STRUCTURE

AND SWOT ANALYSIS WITH SPECIAL REFERENCE TO “VIKAS” DAIRY

INSTITUTE OF AGRIBUSINESS MANAGEMENT, NAVSARI

Title:

Contents-

Objectives Introduction Company Profile Activities Performed Organizational Structure Processing of Products Management Information System Marketing Channels Marketing Strategies Milk Products Comparison Charts SWOT Analysis Findings Suggestions Learning from project Conclusion


Objective of Study-

To study the Organizational structure of JMU and its progress towards customers satisfaction.

To study the working and marketing activities performed by JMU and also provide a SWOT analysis on the dairy besides, a future perspective of the same.


INTRODUCTION-

JMU is properly known as Jalgaon Milk Union and it was established in 1971

The union has a dairy plant of 3,00,000 lit/day milk processing facilities for liquid milk & other products

Union has also four milk chilling centers with a total chilling capacity of 19,00,000 lit/day

Six Bulk Milk Cooler with a total chilling capacity of 30,00,000 lit/day

A Cattle feed plant of 125 MT/day capacity.


The union has been awarded for - Productivity Performance in year 1996-97 by National

Productivity Council of India . "Bhartiy Udyog Ratn" by Indian Economic Development

and research association during the year 1999-2000. Krishi Ratn Dr.Punjabrao Deshmukh "Krishi Gaurav

Purskar" in year 2001-2002. The union has been accelerated with ISO 9001:2000 for

quality, ISO 22000:2005 for food safety, ISO 14001:2004 for environment management and OHSAS by World Rended Agency DET NORSKE VERITAS (DNV) of Netherland.


ACHIEVEMENTS-

“VIKAS”

Vikas for enhancing milk production and per capita availability of milk vikas for social and economic upliftment of milk producers vikas for excellence in environmental management system vikas for excellence in food safety management system vikas for excellence in quality management system vikas for strengthening of co-operative movement vikas for empowerment of rural women vikas for self-employment vikas for self-reliance


COMPANY PROFILE-

Jalgaon Jilha Sahakari Dudh Utpadak Sangh Maryadit, Jalgaon.

ISO : 9001:2008, 22000:2005, 14001:2004 , OHSAS 18001:2007 Certified Dairy Organization For Four integrated International Certificates by DNV, The Netherlands. Maharashtra's first milk cooperative to be certified for four Integrated International Certificates by DNV The Netherlands.

Under the active guidance and management of NDDB,''VIKAS' has acquired the best equipment and latest technology to produce highest quality milk and milk products and an experienced work force.


ORGANIZATION STRUCTURE-


Managing Director

Accounts manager

Purchase Manager

Marketing Manager

Manager Administration

Chief Accountant

Branch Accountant

Clerks

Purchase Assistant

Purchase Clerks

Sales Supervisor

Sales Staff

Section In-charge

Assistant and helpers

Administrative Staff

Production Manager

Senior Supervisor

Supervisor

Workers

Manager P & I

Assistant Manager

Administrative Committee:

Chairman: Mr. Deepak Tikku.(Managing Director, NDDB, Anand.)

Managing Director: Mr. Deepak Relan.

CEO: Mr. Manoj Limaye.


Members Village Societies : 558

Number of Producer Members : 129906

Number of Functional Village

Societies

: 766

Total Milk Handling Capacity : 3.0 Lakh Lts. per day

Total Milk Handled (2008-09) : 787 Lakh Lts.

Milk Processing (Daily avg. 2008-09) : 222072 Kgs. per day

Milk drying capacity : 15 MT per day

Source: www.vikas.coop.


Sales Turnover : Rs.

2003-2004 : 77.68 Crores

2004-2005 : 83.18 Crores

2005-2006 : 105.14 Crores

2006-2007 : 114.15 Crores

2007-2008 : 134.17 Crores

2008-2009 : 159.1 Crores

Source: www.vikas.coop.

ACTIVITIES -

Annual Breeding ProgrammeVaccination programmeHealth Programme Clean Milk ProductionWomen Leadership Development programmePrimary milk co-operative society


Processing of Products



MILK PROCESSING

FLOWCHART

Farmer

Chilling (at processing plant-4oc)

Primary Collection & Chilling Center(4oc)

Transportation-(Tankers)

Separation of Milk

Homogenization-(10,000 lit/hr)

Pasteurization

Separation-(1) Cow Milk

(2)Buffelow Milk

Storage

Packaging by fill pack machine- (6 machines )

Capacity-80 days/min(40 lit milk/min)-1,50,000/day)-1oc,2oc temp

1,50,000 liter as milk

50,000 liter for processing & milk products products

MILK POWDER

FLOWCHART


Stored Milk

Condensing Unit

Drying Unit-Water level Reduced upto-40%

Automizer-12,000rpm

Heating-190oc-200oc -60% becomes vapour & sold out in air through cyclone separator

Milk Powder

Packaging-25kg,1kg

Powder Types-SMP-Fat 1%SNF=97%

-WMP-Fat 26% SNF=70%


BUTTER PROCESSING

FLOWCHART

Stored milk

Heating

Separation of Cream

Churning

Separation of butter & Fatty portion

Continuous butter making machine-500kg/h

Packaging-

Table butter -Salted butter

=100gm & 500gm packs

Storage-in deepfreeze temp=3oc-20oc

MANAGEMENT INFORMATION SYSTEM (MIS)

The JMU has developed its own management information system in which the records are maintained. This MIS analyses and compares the sales, production, chilling center wise procurement of current year and previous years data. And Data Sheets are prepared which involves the comparison according to changes in percentage.

MIS prepares reports which are used by managers in decision making while performing managerial activities.

The following reports are mainly used , Demand Reports. Scheduled Reports.


MARKETING CHANNEL-


JMU

Distributors (Taluka Level)

Retailer

Consumer

STRATEGIES-

Quality management is basic strategy of society. Time management in procurement and distribution of

milk and milk products. Creating brand image in consumers mind. STRONG BRAND: Creating strong brand image by wall

paintings, dairy visits for consumers, farmers & school children this will increase mouth to mouth publicity of society.

Use of Childs and women in advertisements. Distribution is based upon different categories of

products.


Promotional Strategies-

Time to time distribution schemes. Distribution of home delivery bags. T-shirts, caps, banners & posters are to be

distributed towards the distributors and consumers for promoting sales.


MAJOR CLIENTS-

Mothers Dairy, Delhi. Metro Dairy, Calcutta and Mumbai. Maharashtra State Milk Federation, Mumbai. Bihar and Kerala State Milk Federations. Taj Group of Hotels.


MILK PRODUCTS-


1) Vikas - Cow Milk

2)Vikas Gold - Buffalo Milk

3)Vikas Shakti - Standardized Buffalo Milk

4)Vikas Toned -Homogenized Toned Milk


5)Vikas Skimmed Milk Powder

6)Vikas Flavoured Milk

7)Vikas Butter Milk

8)Vikas Kadhi Tak


9)Vikas Shrikhand

10)Vikas Amrakhand

11)Vikas Table Butter

12)Vikas Cow Ghee


13)Vikas Buffalo Ghee

14)Vikas Paneer - Cottage Cheese

15)Vikas Dahi

16)Double toned milk

“VIKAS” CATTLE FEED PLANT-

The Union is manufacturing two types of feeds suiting to the best requirements of average yielders and high yielders. The Plant had produced 30,999 MT Cattle-feed during the year 2008-09.

1.VIKAS BALANCED CATTLEFEED:2.VIKAS HIGH ENERGY CATTLEFEED:


1.VIKAS BALANCED CATTLEFEED:


Benefits Of Balanced Cattle Feed:

1) Increase in milk production and Continuity remains constant.

2) Milk production costs reduced.3) Increases resistance power of animals.4) Increases fertility power of animals.5) Reduces dry periods in milking animals.6) Animals health increases.

2.VIKAS HIGH ENERGY CATTLEFEED:


Benefits of High energy Cattle Feed:

1) Increase in milk production.2) Increases milk fats.3) Reduces cost of production.4) Consistancy in milking level of animals.5) Increases resistance power of animals.6) Helps in reducing calving periods.

Comparison Charts-

Fig.1(Profit and Loss in Lakh Rs.)-


1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

-300

-250

-200

-150

-100

-50

0

50

100

150

200

-239.68

45.34

122.17

69.33

115.28

62.0578

101.73

54.46

101.69107.87

149.1 152.39

Profit & Loss (Lakh Rs.)

Profit & Loss (Lakh Rs.)

Source: 37th Annual Report 2007-2008

Fig.2 (Primary milk co-op societies)-


1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

0

100

200

300

400

500

600

700

800

452

629

681661

706 726669 632 645 658

713 719 729

Primary Milk Co-op Societies

Primary Milk Co-op Societies


Fig.3 (Average milk collection/day)-


1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

0.41

0.870000000000002

0.98

0.720000000000001

0.870000000000002

1.030.970000000000001

0.950000000000001 0.88

1.17

1.59 1.531.59

Daily Average Milk Collection (lakh lit)

Daily Average Milk Col-lection (lakh lit)


Fig.4 (Average milk sales in 000’lit)-


1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

0

20

40

60

80

100

120

140

160

15.622.6 29

39 46 48.856.5

65

80

96.88

135.03139.92 142.05

Average Milk Sales (000' lit)

Average Milk Sales (000' lit)


Fig.5 ( Cattle feed sales in MT)-


1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

0

5000

10000

15000

20000

25000

30000

35000

3777

9111

65108137 8271

12803

1781918562

2400127090

289122892929746

Cattle feed sales (MT)

Cattlefeed sales (MT)


Fig.6 Production of Milk products (MT)-


1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

0

500

1000

1500

2000

2500

931

1196

1467

2234 2194

1150

824

225 168 106 169 149 154

761

1577

1168

557

877

12971463

11141002

1099

1429

10521157

19106 103 84 117 135 171 193 168 230 264

431 452

Milk PowderButterGhee


SWOT ANALYSIS-

STRENGTHS-

Brand Image.

Availability of raw material:

Technical manpower: Professionally-trained, technical human resource pool

Strong Distribution Channel.

Quality Excellence.


WEAKNESSES-

Large number of low producing animals.

Lack of control over yield.

Less focus on other districts.

Poor Procurement.


OPPORTUNITIES-

Export potential : Specially Milk Powder, Milk Whitener

Steps should be taken to introduce value-added products like dairy sweets. This will lead to a greater presence and flexibility in the market place along with brand building.

Latest packaging technology can help to retain nutritive value of packaged products and extend their shelf-life


THREATS-

Milk vendors, the un-organized sector.

Poor microbiological quality of milk.

New entrants.

Extinction of Indigenous Breeds of Cattle.


FINDINGS:

Distribution-Procurement dilemma. Use of improved machinery and technology. Sale of Milk and Cattle feed increasing.. But

the value added products like Milk powder, Cheese are goes down.

Local competitors and milk vendors causes the procurement

SUGGESTIONS -

Increase awareness through mass media, extension programmes and local channels

Efforts to increase milk production: Should develop quality breeds and undertake the breeding programme twice in a year.

Improve the productivity of breeds of the farmers Good scope exists for value-added products Rather than supplying milk provide the products to the

clients Need to divert the Local vendors: so the collection

problem will be solved.


Learning from the Project-

Working of the various divisions like Procurement & Inspection, Production, Purchasing, Marketing, Administrative, Computer section, Quality Control, etc.

Marketing and Promotional strategies

Integration of the firm

Growth trend of the JMU

CONCLUSION-

The JMU has established a strong brand and performing well in marketing and Distribution of Milk & Milk Products. It has been established the Increased Milk Production Programme through which AI, Animal Health Services, Cattle feed Production & Marketing.

Milk union is providing various technical input services to milk producers of districts to improve the Milch breeds, their health and management & also has undertaken various educational & training programmes for the farmers for efficient management of dairy co-operative. This is resulting into increased milk production in the milk shed. Thus economic upliftment of the producers.



Any ?


Thank You..

vikas dairy by sun

Documents

integrated

increases

management

total chilling

vikas balanced

cattle feed

lakh profit

managing director