SUMMER TRAINING REPORT ON

Consumer Behavior in different aspects of FMCG industry

(Organic Dairy Products)
On
Arrow line Organic Products Pvt. Ltd. (The Right Moo)
Submitted in Partial Fulfillment for the award of the degree

Bachelors in Business Administration (b&I)

Batch
2015- 2018
Submitted To: Submitted By:
Divyansh mishra
Roll No: 04235103916

Shri Guru tegh Bahadur Institute of Management & Information

Technology
(Affiliated to Guru Gobind Singh Indraprastha University)

1
 DECLARATION

I hereby declare that the piece of the project entitled Consumer Behavior in
different aspects of FMCG industry (Organic Dairy Products) for partial
fulfillment of the requirements for the award of the degree of Bachelors in Business
Administration is a result of original work done by me under the supervision and
guidance of -------------------

PLACE: NEW DELHI DIVYANSHMISHRA

2
 ACKNOWLEDGEMENT
Words are indeed inadequate to convey my deep sense of gratitude to all those who
have helped me in completing this summer project to the best of my ability. Being a
part of this project has certainly been a unique and a very productive experience on my
part.

I am really thankful to Mr. Rajat Awasthi, General Manager for making all kinds of
arrangements to carry the project successfully and for guiding and helping me to solve
all kinds of queries regarding the project work. His systematic way of working and
incomparable guidance has inspired the pace of the project to a great extent.

I would also like to thank my mentor and project coordinator, ----------------------------

- for guiding and correcting various documents of mine with attention and care. She
has taken pain to go through the project and make necessary correction as and when
needed.

I am very grateful to all teachers of SGTBIM&IT for their useful guidance and advice.

This project would not have been successful without the help of Mr. Rajesh Mishra
Area Sales Manager (ASM), Arrow line Organic Products Pvt. Ltd. (The Right Moo.)

Last but not the least I would like to thank all the employees of Arrow line Organic
Products Pvt. Ltd. (The Right Moo) who have directly or indirectly helped me with
their moral support for the completion of my project.

DIVYANSH MISHRA

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 BONAFIDE CERTIFICATE

This is to certify that as per best of my belief the project entitled Consumer Behavior
in different aspects of FMCG industry (Organic Dairy Products) is the bonafide
research work carried out by DIVYANSH MISHRA, student of BBA, SGTBIM&IT,
New Delhi during June-July 2017, in partial fulfillment of the requirements for the
Summer Training Project of the Degree of Master of Business Administration.

He has worked under my guidance.

--------------------

Name: Rajesh Mishra

Area Sales Manager (ASM)

Counter signed by

-------------------------

Name: Rajat Awasthi

General Manager

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 PREFACE

Two years continuous classroom teaching is not sufficient for student to implement
directly their knowledge in the market, for it a practical exposure of real life situation
is needed to know challenges to be faced in their professional life and for this
introduction of summer training in the academic curriculum is needed combination
with theory.

I got an opportunity to make a project and gather knowledge about various aspects.
The main stay of my project was study on Consumer Behavior in different aspects of
FMCG industry (Organic Dairy Products). The topic specially benefited me since I am
a student of BBA (B&I).

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 EXECUTIVE SUMMARY

It gives me an immense pleasure to present you this entire project. The topic is Sale of
The Right Moo & Consumer Behavior towards the same

The present study analyze the sale & consumer awareness towards The Right Moo
Products, the understanding the Indian organic dairy industry , Report explains
whether the people are aware about The Right Moo as a Organic Products
Manufacturing company or not.

The main objectives of the study are:

To develop an understanding of Organic Dairy Products Industry

To understand the relative position of The Right Moo in the Organic

Dairy Products Industry

To develop an understanding of the degree of awareness consumers

towards The Right Moo

To design this project report, a thorough literature review is conducted which includes
study of journals and articles available on the subject.

A questionnaire was prepared that deals with aspects such as which organic brand the
people would prefer, which is the first brand that the people come across when they
hear about organic, and which organic product could be the turning point in the
industry.

The responses are analyzed by translating each question of the questionnaire used for
survey into separate pie charts and graphs with percentage break-up.

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 INDEX

S.No. Chapters Page No.

1 Introduction 7

Organic Milk & Organic Dairy 8

Difference with the Conventional Milk 9-11

The Right Moo The Right Milk 11-12

Farm Milk vs Organic Milk 13-14

The Right Process 15

The Right Farm 15-16

Why go Organic? 16

Why is Organic expensive? 17

The Right Moo USP 17-18

The Right Moo Products 18-23

Challenges & Growth drivers 23-26

2 Literature Review

3 Data Analysis and Interpretation

4 Findings

5 Suggestions

6 Conclusion

7 Bibliography

8 Annexure

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 Chapter- 1
Introduction
Arrow line Organic Products Private Limited is a Private incorporated on 06 April
2015. It is classified as Non-govt Company and is registered at Registrar of
Companies, Chennai. Its authorized share capital is Rs. 170,000,000 and its paid up
capital is Rs. 160,559,296.It is involved in Production, processing and preservation of
meat, fish, fruit vegetables, oils and fats.

Arrow line Organic Products Private Limited's Annual General Meeting (AGM) was
last held on 15 December 2016 and as per records from Ministry of Corporate Affairs
(MCA), its balance sheet was last filed on 31 March 2016.

Directors of Arrow line Organic Products Private Limited are Kishore Menonparumbil
Menon, Aboli Dhanaykumar Dhole, Puvaloor Sankarasundaram Balasubramaniam,
Milan Kumar Mondal and Sudhir Kumar Shaw.

Arrow line Organic Products Private Limited's Corporate Identification Number is

(CIN) U15122TN2015PTC099926 and its registration number is 99926.Its Email
address is sudhirkumarshaw49@gmail.com and its registered address is Old No.79,
New No.183 T. T. K. Road, Alwarpet, Chennai TN 600018 IN

Arrow line Organic Dairy Private Limited's aim is to provide organic dairy products,
under the brand The Right Moo, across Southern India. Our free-range, organic
farms are located in Tanjore, with clean ground water free of any pollutants and our
dairy plant is located near Chennai. We have high pedigreed Frisian and Dutch
Holstein cows that are not tied being in a free-range farm concept. Everything the cows
eat including the dietary supplements are organic. Our milk is free from synthetic
hormones, antibiotics, steroids, synthetic nutrients, pesticides, urea, heavy metal and
toxins. Our Organic milk is high in Calcium, Omega 3 and Vitamin E the Right Moo's
organic dairy product portfolio includes Cow Milk, Skimmed Cow Milk, Paneer, Slim
Paneer, Curd, Slim Curd, Butter and Ghee.

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 Definition of Organic Dairy & Organic Milk

What is Organic Dairy?

Organic dairy production is a system of farm design and management
practices for producing milk, yogurt, cheese, cream and other dairy products
without the use of pesticides, synthetic fertilizers or antibiotics
Organic milk is produced by rearing cattle in a thoroughly natural environment
cattle that are raised on pastures that comply with organic standards.

The cattle are given only natural grass/ fodder and pesticide/ insecticide-
sprayed grass, other synthetic feed and antibiotics are completely avoided.
Additionally, milk is piped from the udders to the chilling and
pasteurization units directly by automated systems. This ensures no hand
contact that might lead to contamination.

What is Organic Milk?

Organic Milk refers to a number of milk products from livestock raised
according to organic farming methods. In most jurisdictions, use of the term
"organic" or equivalents like "bio" or "eco", on any product is regulated by food
authorities. In general these regulations stipulate that livestock must be: allowed
to graze, be fed an organically certified fodder or compound feed, not be treated
with most drugs (including growth hormone), and in general must be treated
humanely.
There are multiple obstacles to forming firm conclusions regarding possible
safety or health benefits from consuming organic milk or conventional milk,
including the lack of long term clinical studies. The studies that are available
have come to conflicting conclusions with regard to absolute differences in
nutrient content between organic and conventionally produced milk, such as
protein or fatty acid content. The weight of available evidence does not support
the position that there are any clinically relevant differences between organic
and conventionally produced milk, in terms of nutrition or safety.

9
In general, all livestock used to produce organic milk must be maintained using
the methods of organic farming as defined in the jurisdiction where the milk
will be sold, and generally must be certified in order to be marketed as organic.
In general, these laws require that livestock be allowed to graze on pasture, be
fed organic certified feed (which may not include byproducts of animal
slaughter), and that the animals not be treated with drugs (although it is also
illegal to withhold necessary drugs from a sick animal in order to maintain that
animal's organic status).
India: NPOP, (National Program for Organic Production) is the programme set
up to take care of and go with the regulations set up for Organic Production.

Difference with the Conventional Milk

Chemical composition
Studies have examined chemical differences in the composition of organic
milk compared with conventional milk. These studies generally suffer
from confounding variables, and are difficult to generalize due to differences
in the tests that were done, the season of testing and brand of milk tested, and
because the vagaries of agriculture affect the chemical composition of milk.
Treatment of the foodstuffs after initial gathering (whether milk is
pasteurized or raw), the length of time between milking and analysis, as well
as conditions of transport and storage, also affect the chemical composition
of a given batch.

Nutrient Content
A 2012 meta-analysis of the scientific literature did not find significant
differences in the vitamin content of organic and conventional plant or
animal products, and found that results varied from study to study. The
authors found 4 studies on each of beta-carotene and alpha-tocopherol levels
in milk; differences were heterogeneous and not significant. The authors
found few studies on fatty acids in milk; all (but for one) were of raw milk,
and suggest that raw organic milk may contain significantly more
beneficial omega-3 fatty acids and vaccenic acid than raw conventional milk.
The authors found no significant differences between organic raw milk and
conventional milk with respect to total protein, total fat, or 7
other vitamins and fatty acids tested. A different review concluded, "Results
to date suggest that the nutritional content of organic milk is similar to that of
conventional milk. There may be a different profile of fatty acids in organic
milk, with a higher proportion of PUFA (polyunsaturated fatty acids) relative
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to other fatty acids, but this effect does not appear to be consistent. This
difference will be smaller in fat-reduced milk."
A less comprehensive review published in 2012 looking only at data from
studies published from 2008 to 2011 found that organic dairy products
contain significantly higher protein, total omega-3 fatty acid, and 5 other
fatty acids, but less linoleic acid, oleic acid, and omega-6 fatty acids than
those of conventional produced milk. It also found that organic dairy
products have significantly higher omega-3 to -6 ratio and 9-desaturase
index than the conventional types.

Chemical and pesticide residue

A consumer concern that drives demand for organic food is the concern that
conventional foods may contain residues of pesticides and chemicals. Many
investigations of organic milk have not measured pesticide residues. One
review of the literature concluded the "available evidence indicates that
regular and organic milk contain similar trace levels of chemical and
pesticide residues."

Health and safety

With respect to scientific knowledge of health and safety benefits from a diet
of organic food, several factors limit our ability to say that there is any health
benefit, or detriment, from such a diet. The 2012 meta-analysis noted that
"there have been no long-term studies of health outcomes of populations
consuming predominantly organic versus conventionally produced food
controlling for socioeconomic factors; such studies would be expensive to
conduct." A 2009 meta-analysis has noted that there have been very few
studies that have looked at direct human health outcomes. In addition, as
discussed above, difficulties in accurately and meaningfully measuring
chemical differences between organic and conventional milk make it difficult
to extrapolate health recommendations based solely on chemical analysis.
The authors of the 2012 meta-analysis ultimately concluded that the review
"(...) identified limited evidence for the superiority of organic foods. The
evidence does not suggest marked health benefits from consuming organic
versus conventional foods, (...)".
A review of the literature published by the American Academy of
Pediatrics published in 2012 concluded: "There is no evidence of clinically
relevant differences in organic and conventional milk. There are few, if any,
nutritional differences between organic and conventional milk. There is no
evidence that any differences that may exist are clinically relevant. There is

11
no evidence that organic milk has clinically significant higher bacterial
contamination levels than does conventional milk. There is no evidence that
conventional milk contains significantly increased amounts of bovine growth
hormone. Any bovine GH that might remain in conventional milk is not
biologically active in humans because of structural differences and
susceptibility to digestion in the stomach."

Taste
One review noted that some consumers like the taste of organic milk, while
others do not, and suggested that the amount of heat treatment is likely to be
a significant factor in determining the taste of the milk. Certain treatments,
such as ultra-heat treatments used by milk producers, can impart a
slight nutty taste to the milk. Overall, the results of taste testing "are not
clear-cut" as to whether organic or conventional milk is preferred.

Economic factors
Compared to conventional milk farms, organic milk farms produce
significantly less milk per cow and cost more to operate. Organic dairy co-
ops have been a successful economic survival strategy for small to medium-
sized producers in the American Midwest. Organic milk accounts for 18% of
milk sales in the US and was worth $2.5 billion in 2016.

The Right Moo - The Right Milk

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When everything the cow consumes is 100% organic, the milk produced is
ORGANIC. The milk produced organically is delicious and has more health
benefits than your average off-the-shelf packet milk. It is packed with natural
nutrients, minerals, enzymes and micronutrients. The milk is also rich in
Omega 3. CLA and Vitamin E, and acts as preventive medicine. By choosing
our organic milk products, you are making the right choice.
Organic milk is one of the most nutritionally complete foods packed with
protein, vitamins and minerals. Studies have found that organic milk (both
regular and skimmed) has more nutrients omega-3 and vitamin E than non-
organic milk. These help reduce the risk of heart disease and also to promote
healthy skin.
1) More of Omega 3
2) High in Calcium
3) High in Vitamin E

Basically the milk will have:

1) No growth hormones
2) No antibiotics
3) No wormers or other preventative medicines
4) 100% organic feed if not on pasture
5) No animal by-products in the feed
6) No artificial roughage in the feed
7) Living conditions that allow movement, have access to outdoors &
sunlight

Hence the milk produced is absolutely pure!

The packet milk that we get every day is full of adulterants like detergents,
white paints, antibiotics, steroids, hormones, toxins, heavy metals etc. This
has been confirmed by government reports from National Dairy Research

13
 Institute on the adulteration of milk in India. Further, we can also expect the
presence of Pesticides, Urea, Nitrate, Aflatoxin M1 etc.
Apart from the assurance of absolute purity, Organic milk involves giving
cows, fresh green grass which leads to naturally occurring Omega 3 in the
milk. Now we dont have to buy Omega 3 capsules anymore! The milk also
has high levels of Calcium, Vitamin E, all of them necessary for good health.
All the prescribed international guidelines are followed to produce the
Organic milk. It is ensured that no pesticides or any kinds of urea get
dispersed on the grass field. No antibiotics, hormones or steroids are injected
in the cows.
The milk has a sweeter taste than regular milk as a result of the cows diet
being largely fresh green grass.
No sugar added, this is just a mark of a happy cow!
As the milk is ultra-pasteurized, many of our customers prefer to drink it
straight.
The milk is 100% safe to consume straight without boiling.
The costs involved in the production of 100% organic food to be fed to the
cattle along with maintaining high-quality standards lead to higher cost.
Specifically, the organic cattle feed is more expensive, fewer cows can be
farmed per hectare of organic land and the volume of milk each organic cow
produces is at a lower, more natural, level. This means that we have to charge
more for the milk to cover our costs for feed, labor, and volume, however,
the milk contains the daily requirement of Omega 3 for an individual. Buying
a good quality Omega 3 capsule will cost you Rs.25, so you are saving that
Rs.25 if you drink The Right Moo milk every day.
For organic confirmation of feed and milk, the product is tested regularly in
the Government lab in Madhavaram as well as other accredited labs. The
reports are uploaded periodically for public viewing on the Website.

Farm Milk Vs Organic Milk

Farm fresh milk companies do not feed their cows Organic feed. As a result,
Pesticides, Urea and Nitrate cannot be avoided. Regular Dairy farms generally
feed Silage feed i.e. 45 days fermented corn feed which sometimes has fungus
which gets converted into Aflatoxin M1 in milk. The green grass intake is also
very low or negligible, so the Omega 3 and Vitamin E content in their milk is
14
negligible. Regular Dairy farms feed synthetic vitamins to cow, whereas we
feed vitamins.
Over 90% of our feed is GRASS. We provide organic feed supplements,
vitamins, natural minerals etc.
PCB (Polychlorinated Biphenyl) were widely used as dielectric and coolant
fluids. It is present in the environment; mainly in soil and water and hence the
chance of getting transferred to the milk. It is ensured that the farm is tested for
PCB.
ORGANIC CERTIFIED feed is grown and procured selfly.
The reason for locating the farm in Thanjavur & Chitoor is because of
availability of good quality water. Farm water is regularly tested for heavy
metal like Lead, Mercury, Arsenic, chromium, and Cadmium. Also, the water is
tested for Pesticides, Urea, Nitrate, PCB etc.
The Right Moo is probably the FIRST COMPANY/FARM in India to have
successfully tested negative for DIOXIN in farm water. The test was done in
Belgian Lab.

Farm/Cows
Farms located in Thanjavur, Tamil Nadu and Chittoor, Andhra Pradesh.

Types of cows:
HF Cows Holsteins Friesians (often shortened as Friesians in Europe
[Netherlands, Germany], and Holsteins in North America) are a breed of cattle
known today as the worlds highest production dairy animals.

Tendation towards Sick Cows:

When the cows fall sick, they are quarantined, Antibiotics are given (only in life-
threatening situations) and the cows are sent to milking stations only after all the
medicines in total have been cycled out of her system.
No human contact is involved in the milking process. The environment is maintained
to the highest possible sanitary standard and the milk is straight from GRASS TO
GLASS.

The Right Moo Organic Filter Cold Coffee

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It is a perfect blend of Arabic and Robusta Coffee bean, No Chicory!. It is made
with Organic Skimmed milk, Organic Sulphur free Sugar and Organic Coffee
decoction. Shelf life of 6 months if stored under ambient temperature.

The Right Moo Organic Chocolates

Organic fair trade chocolate blocks are imported from finest company in
Switzerland. Chocolates are usually processed with an alkali, known as the
Dutch Method it removes the bitter taste and infuses it with a darker and
more uniform color. Unfortunately, Cocoa beans processed with alkali loose the
flavonoids and antioxidants found in raw cocoa and good for health. The Right
Moo Organic Chocolate is made without using the Dutch Method using
cocoa beans that have not been treated with synthetic fertilizers, herbicides and
Apesticides. Even our fillings are Organic.
Have it in the cooler at 23 degrees Celsius, not the freezer, to taste and feel the
goodness of our Organic Chocolates.
100% ingredients are made in Switzerland and imported from Switzerland.
Bulk chocolate is imported and are just remolded.
Our Swiss factory is USDA Certified.

The Right Moo Organic Ice-cream

Ice-cream is made from Organic milk and Organic cream & Sulphur free organic
sugar. We use fruits and nuts. Most of the fruits we use are imported from Italy &
Austria. No artificial color or flavor added. All natural.
Real fruits/fruit pulp is added and not artificial Flavors.

The Right Moo Chocolate Truffles

We import Organic Chocolate and also import Organic nut fillings. Each
truffle is hand decorated by experienced chocolatiers. The organic nut paste
used is also USDA certified but as we are creating a new product with
ingredients that have different certification numbers, even though all the
ingredients are certified USDA organic, we cannot claim the final product as
organic USDA Certified organic yet. We have applied for the same.

The Right Process

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We live in a time where the supermarket shelves are stacked with white
liquid labeled as milk, from cows and buffaloes pumped up with steroids and
hormones that barely see, let alone chew, a blade of grass.
The opposite is true with THE RIGHT MOO where ate every step; we ensure
that the milk is produced as nature intended it from cows that graze
outdoors for their grassy and organic diet to bringing it to your doorstep.
Milk is made up of the nutrients in the food a cow eats and the water she
drinks and so the right process of milk production begins with the cow. Our
cows roam the farm freely and enjoy the nutritious organic grass. So the milk
produced is light and rich, nutritious and delicious.
The cows are milked at the farm and instantly stored in bulk coolers. This
reduced the acidity in milk. From bulk coolers to the packaging processes,
nowhere is the milk exposed to human hands or environmental
contamination. Every drop of milk you consume is preserved pure and fresh.

The Right Farm

In search of a suitable location for our farm, we identified the Cauvery
Thanjavur belt to be the perfect setting, far away from the industrial pollution
and with ample clean natural water. We established a 40 acre organic dairy
farm for our Holstein Friesian cattle. Our cows are fed on grass grown on
our 350 acre farm.
Free Range HF Cows on a Grassy Diet
Its a known fact that happy cows give healthier milk. And whats better than
giving the cows the freedom to walk around, graze on nutritious organic
grass on the 40 acre farm. We play soothing music so that our cows relax
and stay happy. The results are evident in the quality of milk that our cows
produce.
Environmentally responsible approach to dairy farming
We also have over 300 acre farm land, set up to produce organic feed for
our cattle. Our organic practices are as per international standards which
mean no GMOs, Urea, Pesticides, Antibiotics, and Hormones. We nourish
the soil and grow out of the ground and feed it to the cows to ensure that the
cows produce milk filled with nutritious goodness.

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Organic NPOP Certification
Our feed is Certified Organic as per NPOP Standards. Our Organic Farm
Management plan under National Program for Organic Production (NPOP)
has been approved by the Organic Certification agency and we are following
the same stringently. NPOP Standards are recognized as equivalent by the
European Union Regulation (EC) NA 834/2007, (EC) NA 889/2008. Our
farm certification is in process per the rule.

Why go ORGANIC?
Many food products we consume on a daily basis contain synthetic/artificial
colors and flavors which have adverse health effects organic products do
not use any chemicals.
Antibiotics in milk Cows as a result of their digestive process pas all the
antibiotics they are injected with into their milk. People, who consume this
milk, develop resistance to antibiotics. Thousands of people die every year as
a result of antibiotic resistance. Organic milk has no antibiotics.
Hormones in milk Cows in traditional dairy farms are regularly injected
with hormones to give extra milk output. Similar to antibiotics, these
hormones are then passed into the cows milk. Such hormones severely effect
young girls and boys leading to the onset of early puberty. Organic milk has
no hormones.
Pesticides As a reader, we are sure you are already aware of the danger of
pesticides in food. Organic food has no pesticides.
Presence of heavy metals in milk Heavy metal contaminants like
mercury, lead, chromium, etc. pose multiple health risks. Organic milk has
no heavy metal presence.
All the unwanted adulterants/contaminants a cow ingests, gets stored mostly
in fat. Maximum contamination is usually found in toned milk or any milk
product which has more than 1% fat. Organic milk is free of all chemicals
and adulterants.
Ice-cream, since it contains a higher percentage of fat, is the more affected
dairy products it has 4 times more fat content than toned milk, Organic ice-
cream is hence much safer than regular ice-cream as its fat has no chemicals.

18
Why is organic expensive?
Not adding urea and pesticides reduces cattle feed and grass crop production
by 40% resulting in much higher feed cost.
Vitamins, protein and other ingredients mixed in our cattle feed are all
natural. These cost 4 times than the chemical/synthetic options.
We ensure no Aflatoxin in our milk and this increases feed cost by 10%.
We do not inject hormones in our cows. This result in a lower output per cow
as compared to conventional dairy farms which again impacts our price.
We do not inject antibiotics into our cows and only give homeopathic
medicine which makes our milk costs higher.
Organically grown fruits and fruit paste cost 50% more than the synthetic
options. We use them to make Aamras, ice-cream etc. The same applies to
the organic coffee we use for making cold coffee.
Using natural colors and flavors increases costs significantly compared to
their synthetic counterparts.
Organic sulphur free sugar that we buy, costs almost twice as much as
regular sugar. We use organic sugar in cold coffee, aamras, ice-cream etc.

The Right Moo USP

The USP of The Right Moo is that all their products are very high in Omega
3. The company has a state-of-the-art automatic milking parlor at dairy farm
(GEA make-rotary type). Milk produced is untouched by hands/no exposure
to even air. Packaging is modern for better product safety and good for
International Market. Most products have long shelf life without cold chain.
Products Quality & Taste are of Global Standards. Flavors and processes are
being developed by Global Experts and the Taste of their products equal to
any company on world class brand.
The Right Moo has tied up with all major Organized Retailers. Sales will also
be through modern retail formats in all major Indian cities with an average of
150 plus shops in each city. Online sales and overnight door delivery in over
30 cities and early morning home delivery in all major cities.

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 The Right Moo is one of its kind in India in terms of size, portfolio, and
value addition etc. the company has majority ownership in the Dairy Farm
with an output of 30000 liters of milk a day.
The company in calendar year 2016 comfortably crossed over 100 crs in
sales and made significant profits.
The company at appropriate time will also enter organic dairy products
export market which is over $ 15 billion in size. Company product prices will
be highly competitive.
Success is all about making the right move at the right time.

The Right Moo Products

1)

The Right Moo Organic Mocha Coffee- A Connoisseur blend of Swiss Organic
Chocolate & Organic Coffee Combined with Organic Low Fat Milk and Organic
Sugar. A Truly Unique experience!

2)

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Push yourself to the next level. GYM Moo is a game Changing Protein Shake packed
with 23g of high quality milk protein to help your body reach its absolute peak.
3)

The Right Moo Organic Swiss Chocolate Milk A Blend of Swiss Organic Chocolate
with Organic Milk & Organic Sugar. A Truly Unique Experience!

4)

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Introducing the king of Antioxidant foods! Made with the finest blueberries, Organic
Milk & Organic Sugar! Benefits of Blueberry Low in Calories, But High in Nutrients
Reduce DNA Damage, which may help Protect against Ageing & Cancer - Protect
Cholestrol in the Blood from Becoming Damaged Can Help Maintain Brain Function
and improve Memory Help Reduce Muscle Damage after Strenuous Exercise.
5)

Organic Badam Drink is an excellent blending of Organic Milk, Organic Sugar, and
Organic Almonds 1% Cardamom Powder & Saffron. Our Organic Badam Drink is
high in Protien Calcium. No Synthetic/Chemically made flavors added. No Pesticides,
22
No Urea, No Aflatoxin M1, No Hormones, No Antibiotics, No GMOs, No Heavy
Metals, UHT Treated packed in Tetra Pack for Shelf Life of 6 Months in Ambient
Temperature.
6)

Tasty & Healthy with a Balanced Sugar Mix. Introducing fot the first time in India,
Organic Aamras. Enjoy the True Taste of the King of the fruit realm, The Mango.
Made from Organic Alphonso Mango Pulp, Organic Milk & Organic Sulphur free
Sugar. No Water added (Generally Mango Juice has no Milk & added Water and does
not provide a significant health benefit). Aamras is high in Protein & Calcium. No
Synthetic/Chemically made flavors added. No Pesticides, No Urea, No Aflatoxin M1,
No Hormones, No Antibiotics, No GMOs, No Heavy Metals. High in Calcium Vitamin
E & CLA.

7)

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The Right Moo Organic Cold Coffee is an Instant Nourishing Drink for Coffee Lovers.
Authentic Organic Filter Coffee with no Chicory added. Made with Organic Cow
Milk, Organic Filter Coffee & Organic Sulphur Free Sugar, No Synthetic/Chemically
Made Flavors added. Has 500 mg of Omega 3, Great source of Omega 3 for
Vegetarians. Shelf Life 6 Months.
8)

300 ml (one glass) milk provides you approx 200 mg of Omega 3. Milk untouched by
hand from Holstein-Friesian cows fed Certificate Organic feed. No pesticides, No urea,
No aflatoxin M1, No antibiotics, No hormones, No GMOs, No heavy metals, Amazing
taste- sweeter in taste as cow is given more of green grass. Has high CLA, Calcium &
Vitamin E, and UHT treated free of bacteria- no preservatives used packed in Tetra

24
Pack for shelf life of 6 months in ambient temperature. No boiling required- safe to
drink cold.

Challenges in the Industry

The main challenge is awareness, or the lack of it. People do not know much about
milk. Many even dont know that the packet milk they get in the morning is mixed
with buffalo milk. They dont know that nearly 70% of the milk is contaminated or
adulterated. They dont know the harm bad milk can cause in the long run.

Theres good news for people who believe in eating healthy. The new rise in
entrepreneurial spirit and establishment of countless start-ups has led to the explosion
of the retail market that is continuously spewing out newer & better products and
services. And making the right move is Mr. Kishore Menon & his team with their
company aptly titled, The Right Moo, a company with a strong focus on R&D and QC.
The Right Moo is positioned as an Organic Health Products Company with Organic
Cow Milk as the base & is all set to become one of Indias largest organic dairy
product company.

As mothers heave a huge sigh of relief, the Right Moo has opened the market to a host
of products for holistic family health, preventive health care, special products that
address health and nutritional needs of women & children and supplementary dairy
nutritional needs. The Right Moo is the first company in India to introduce all organic,
chemical free milk in Tetra Packs & they also have the widest range of products in
Tetra pack.

Extensive ground work was done to establish supply chain for organic feed & organic
dairy farm. It started with testing of ground water in the outskirts of the city. A place in
Tanjore was located where the ground water is pure. About 40-45 has been set apart
for the dairy farm. Nearer to the farm is their fodder farm in about 400 odd acres of
land which is leased.

The Right Moo company has pioneered Bio-Organic Stimulation Technology for
preparing cow feed. This ensures digestibility of over 75%. Non-milking cows and
calves are also given organic feed.

The packet-milk that we get in the morning is not cows milk. It is mixed with Buffalo
milk & milk powder to increase thickness. The packet-milk that we get in the morning
is a mixture of milk got from many small farms. This makes it difficult to maintain

25
quality. In most of the small farms milking is done using hands and is open to the
environment. Typical cow shed elements like flies, cow dung & urine, feed etc., could
get in the milk. Normally after milking the milk stays in a can or drum for a prolonged
time and this leads to increase in the bacteria count in the milk dramatically.

According to many Government and lab reports, more than 70% of the milk that we
get in India is adulterated! Some small farmers use unthinkable items like urea,
detergent, starch, paint etc., to mix with milk. Water that cattle drink is very important.
If the water has substances like Lead, Arsenic, Chromium, Cadmium pesticide etc., the
same will be present in the milk. So is the feed. Whatever toxins are there in the feed
gets to the milk.

Another threat to milk we get comes from what is fed to the cows. According to Mr.
Kishore Menon, giving cows & buffalos hormones & steroids to increase the
production is a common practice and all that comes into the milk. Hormones cause
severe health issues in pregnant mothers and in young girls by advancing puberty.
According to researchers, the level of hormones could affect sexual maturation in
children. In addition adults could experience increased risk to hormone sensitive
cancers including breast and prostate cancers. When cattle get unwell they are usually
given anti-biotics which finds its way into the milk. Nearly 99% of the milk that we get
has it. This has a serious consequence it makes us get resistant to certain antibiotics!

There is an urgent need to educate the public and improve industry standards. India
being the largest producer of milk in the world taking up this responsibility we believe
is The Right Move.

The Right Moo has 100% cows HF Breed. The cow feed is all organic. Even vitamins
given to cows are natural. No chemicals, anti-biotics, hormones or steroids are given to
the cows. They go for Ayurvedic and Homeopathy medicines when cow get sick. They
also get their milk periodically tested by a government approved laboratory and the
results are put up in their website.

Right Moo made a soft launch with Nuts and Spices outlets and 75 more outlets in
Chennai a couple of months ago.

When The Right Moo released their ad just after the Chennai rains, it fetched them a
huge response. The Right Moo also offers toned milk and skimmed milk, ghee, paneer
and curd and value added products such as ice-creams, chocolates, flavored milk,
Organic cold coffee etc.

26
 Growth Drivers
1) Increasing health awareness
Rising awareness regarding nutritional values of organic products, along with
growing willingness of consumers to spend on nonconventional dairy products such as
yogurts, probiotic drinks, etc., has resulted in an increasing adoption of organic food.

Additionally Consumers are also becoming aware of the ill-effects from the use of
pesticides in conventional dairy farming.

2) Favorable macroeconomic factors

India's urban population is expected to reach 527 million by 2025 from 420 million
in 2015, which in turn will increase the demand for healthy and nutritious food. The
urban consumers are open to pay increased prices for organic food products.

The Indian middle class (approximately 270 million people with incomes
US$4,000US$20,000) is likely to double over the next 10 years.

3) Innovative offerings from dairy players

Domestic dairy players are increasing their focus on offering products for health
conscious consumers and introducing packaging innovations to strengthen their market
position.

MILMA, the Kerala Co- operative Milk Marketing Federation Ltd, is partnering
with the Netherlands to produce nutritious, high-quality 'Organic Milk' - without using
synthetic feed or antibiotics while rearing the cattle.

4) Increasing support from Government of India

The Government of India (GoI) is promoting organic farming and the consumption
of organic food in the country. Financial assistance is provided to farmers who are
adopting organic farming under various central sector schemes such as National
Mission for Sustainable Agriculture (NMSA), Mission for Integrated Development of
Horticulture (MIDH), National Food Security Mission (NFSM) and Rashtriya Krishi
Vikas Yojana (RKVY).

5) Growing penetration of organized retail

27
 Organized retail is currently at a nascent stage in India, currently accounts for ~8%
share of the retail market and is expected to grow to ~10% of total retail share by 2019.

The presence of retail players such as Big Bazaar, Easy day and Reliance Fresh has
helped in creating awareness among consumers about the organic food options
available in India.

Availability of wide array of organic milk and milk products due to growing
prominence of organized retail, coupled with increasing global connectivity, has led to
easy availability and change in the tastes and preference of domestic consumers.

6) Evolution of e-grocery segment in India

E-grocery market in India is expected to grow at a CAGR of 26% during 2015-2019,

driven by increasing penetration of internet connectivity, growing popularity of mobile
shopping and internet banking without any time and location constraints.

Apart from online grocery start-ups such as Grofers and Big Basket, existing
horizontal marketplaces also see grocery as a viable space. In 2015, snap deal tied up
with Godrej Nature Basket while Pay tm launched a dedicated app for grocery order.

28
Indian Organic Dairy Market
Indian dairy market ( US$ billion)

22.7

8.7 10.2 11

5.4 6.3 7.4

2010 2011 2012 2013 2014 2015 2016

Source: Euro monitor

The rising demand for fresh

and packaged dairy products
and ethnic dairy specialties is
broadening the base of Indias
modern dairy sector, which
accounts for almost 17% of
Indias expenditure on food
Indias dairy products
market is projected to reach
US$22.5 billion by 2020,
growing at a CAGR of 15.3%
during 2010-2020.

The organic dairy market is less than 1% of the total dairy market in India

The unorganized sector comprising of small farmers and cooperatives contribute

primarily to the dairy market. However, over the last few years, the organized
29
sector has been growing rapidly by offering customized and innovative products
(such as organic milk, organic paneer) to the end consumers, thereby causing a rise
in the organized market share.
There is increasing shift of consumers from unpackaged to packaged milk and
milk products, mainly because of its assurance of consistent quality, safety and
hygiene.
Additionally, organic dairy players have tied up with modern trade outlets such
as e-commerce websites and gourmet food retail stores (Natures basket, Le
Marche) to boost sales and increase visibility.

Organic dairy products market is predicted to grow at 15% per annum in the near
future as customers become more conscious and aware about its health benefits
The Indian economy is still quite reliant on agriculture and it contributes nearly
14% of the countrys gross domestic product and almost 60% of the population is
dependent on agriculture. The trend of organic food that was initiated in the
developed regions such as Europe and North America has expanded to
developing countries like India and China. Europe and North America are the
largest consumers of organic food; however, the organic food market in Asia is
likely to account for the highest growth rate over the next five years. The concept
of organic food is gaining widespread acceptability and the market is growing
rapidly in countries like India and China. The growth in the organic food market
of India can be attributed to the radically increasing awareness regarding
organically grown products which is free from pesticides.

Indian organic food market is anticipated to grow at a significant CAGR of

around 19% during 2012-2017. In India, majority of the demand for organic
foods is originating from Tier I cities such as Mumbai, Delhi, Chennai,
Bangalore, Gurgaon and Pune. Companies are witnessing increase in sales as a
result of increasing demand from metro cities and the entry of several new
players in the organic food market offering an online channel for purchase. The
major players in Indian organic food market are Conscious Foods, Sresta, Eco
Farms, Organic India, Navdanya and Morarka Organic Foods. Organic food
usually costs up to 20% to 30% more than conventional food items which is one
of the major challenges in Indian market as majority of the consumers are quite
price sensitive. However, at the same time increasing health consciousness and
increasing disposable income among Indians is incessantly increasing the
demand for organic food.

30
According to TechSci Research report, Global Organic Dairy Products
Market By Product Type, By Region, Competition Forecast and Opportunities,
2011 - 2021, global market for organic dairy products is anticipated to grow at a
CAGR of over 11% during 2016-2021, on account of expanding product
portfolio, easy availability of organic dairy products, robust distribution network,
rising internet penetration and aggressive marketing strategies adopted by major
companies. In 2014, healthcare expenditure across the globe reached 9.94% of
the total GDP, and this is driving consumers to opt for healthy organic products.
Further, Organic Valley, Omsco, Whitewave, and Aurora Organic Dairy are few
of the leading players operating in global organic dairy products market. On the
back of rising disposable income levels and availability of well-developed
infrastructure, Europe and North America are expected to emerge as the leading
demand generators for organic dairy products during 2016-2021.
Organic drinking milk, organic yogurt, organic cheese, organic butter, organic milk
powder and organic probiotics are the major segments in global organic dairy
products market, with organic drinking milk and organic yogurt dominating the
market, globally. However, on the back of attributes such as increasing immunity,
energy, mental strength, reduction in risk of cancer and chronic fatigue and cure for
irritable bowel syndrome intestinal homeostasis, demand for organic probiotics is
expected to witness the fastest growth in global organic dairy products market,
during the forecast period.
Rising awareness about health benefits associated with organic dairy
products, increasing average household annual spending on dairy products, rapid
urbanization, easy accessibility of these products through retailers and online
channels, changing consumer preferences, continuous developments in supply chain
network and implementation of government initiatives to encourage farmers to
switch to organic farming is boosting sales of organic dairy products across the
globe. In addition, introduction of innovative organic dairy products such as energy
based milk drinks, flavored organic milk drinks and variety of organic yogurt and
other organic dairy products are expected to further propel growth in global market
for organic dairy products through 2021., said Mr. Karan Chechi, Research Director
with TechSci Research, a research based global management consulting firm.
Global Organic Dairy Products Market by Product Type, By Region, Competition
Forecast and Opportunities, 2011 - 2021 has evaluated the future growth potential
of global organic dairy products market and provides statistics and information on
market structure, size, share and future growth. The report intends to provide
cutting-edge market intelligence and help decision makers to take sound investment
evaluation. Besides, the report also identifies and analyzes the emerging trends along
with essential drivers, challenges and opportunities present in global organic dairy
products market.

31
 Standards for organic milk production
To produce organic milk farm must be registered with an organic control body and
production system adopted must meet the organic standards. Five organic standards are
important and have a worldwide acceptance, viz. European Union Regulation (1804/
1999), Organic Food Products Act (OFPA) of USA, Draft Guidelines of
Codex/WHO/FAO, United Kingdom Register of Organic Food Standards (UKROFS)
of UK and the International Federation of Organic Agricultural Movements (IFOAM)
basic standards. It has been reported that there are 468 organizations worldwide which
offer organic certification services (Yadav, 2008). Most certification bodies are in
Europe (37%) followed by Asia (31 %) and North America (18%). The countries with
the most certification bodies are US, Japan, China and Germany. Forty per cent of the
certification bodies are approved by the European Union, 32% have ISO 65
accreditation and 28% are accredited under the US National Organic Program. Steps
involved in certification include registration of producers and the processing industries,
provision of basic information on the crops and farm, and inspection and verification
of farm, processing unit, production methods, and production practices by the inspector
appointed by the certifying agency like APEDA (Agricultural Products Export
Development Agency), NSOP (National Standards for Organic Products), USOCA
(Uttrakhand State Organic Certification Authority) appointed by Government of
Uttrakhand, ECOCERT appointed by Ministry of Agriculture, Govt. of India etc. For
the production of organic milk the following recommendations (Alexander, 2010)
should be considered:

a) Conversion to organic from conventional farming: For progressing from

conventional to organic production, conversion planning is very important. Either the
whole farm will be converted in one block or the conversion may be phased over a
number of years. A minimum of two years are required to convert the land to organic
status. Organic milk can be produced from the day when land attains full organic
status. For achieving organic status, herd must have started nine months and feeding
six months prior to the intended organic milk production date.

b) Feeding: All feedstuffs used on the farm must be produced and certified to
organic standards from the start of conversion. All the feed required should be
produced on the farm and maximum use of grazing should be made. At least 60% feed
should be obtained from the farm or from linked organic farms and up to 30% may
come from in-conversion sources. The balance of the ration should meet full organic
standards. Compound rations and purchased blends must be 100 percent organic.
Mineral supplementation is only permitted where trace element requirements cannot be
met by the practices of organic husbandry. Some synthetic vitamins may be used, but
subject to permission being granted by the control body. Clover-based fodders are
crucial for the success of organic dairy farms as they are the main source of nitrogen.
Molasses if used must also be organic.
32
c) Soil fertility: Soil fertility can be maintained by appropriate rotations, alternating
silage and grazing ground where possible and the careful usage of recycled manures
and slurry. Synthetic fertilizers are not permitted for use in organic agriculture but the
use of lime or some natural sources of nutrients is permitted.

d) Livestock manures: Manure may be brought in from other farms that are
organic too. The maximum applied to any one area should not exceed 250 KGN/ha/yr.
Poultry litter from registered organic farms may also be used. For the use of manure
produced on conventional farms permission may be sought from the concerned
authorities.

e) Housing: Space requirements may differ between different control bodies. Cows
must be provided a comfortable, dry bedded lying area. Well bedded loose housing is
preferred. Dairy cows should be provided a minimum of 6m2 per animal. Space
requirements for young stock should range from 1 to1.75m2 per 100 Kg live weight.
Slats used should not be more than half of the floor area available to each group of
stock.

f) Animal health: All cohorts and progeny of Bovine Spongiform Encephalopathy cases
must be removed from the herd before starting conversion. Preventive management and
homoeopathic remedies are always encouraged. Veterinary medicines and antibiotics must
not be used as a preventive medicine but may be used to prevent distress in the event of
illness or injury with the withdrawal period at least twice the stated withdrawal period.
Control of mastitis can be done by good management practices including teat dipping, and
culling cows with high cell counts. Parasitic control may be achieved through careful grazing
management practices to minimize exposure to infection. Some anthelmintics which have
been agreed with the control body may be used as part of a control programmed, and to treat
animals where clinical symptoms occur. Vaccination is permitted, under derogation, in cases
where there is a known disease risk. Organic status is lost if animals receive more than three
courses of treatment within one year with the exception of vaccination, treatment for parasites
and any compulsory eradication schemes. Livestock which lose organic status then have to go
through a further conversion period to regain it. If organano phosphorus products are used,
organic status forever.

g) Sources of stock: Purchased cattle must not come from herds which have had a
case of Bovine Spongiform Encephalopathy in the previous six years. When a farm is
converted to organic production the existing livestock can be retained but can never be
sold as organic but the milk from these cows and their progeny can be sold as organic
following the required conversion periods. Up to 10 % of the breeding herd can be
replaced each year from conventional herds. For feeding calves upto the age of 12
weeks whole organic milk should form at least 51 percent of the overall ration. Surplus
calves may be sold to other organic or conventional producers. Stock bulls can be
purchased from conventional farms or hired bulls can be used provided they are

33
managed to organic standards when they come onto the organic farm. Artificial
insemination is also permitted.

h) Selling of organic milk: To access premium prices for organic milk it is necessary
to sell milk through an organically registered processing outlet. Marketing should always be
considered before starting production. Approved sterilants may be used in milking parlors and
dairies.

i) Dairy bred beef calves: If there is no beef enterprise on the dairy farm it is
worth considering making links with organic beef rearers and finishers who might be
interested in purchasing weaned calves. Choice of bull breed should also be given
consideration.

Benefits of organic milk

Organic milk has more beneficial Omega-3, less damaging Omega-6. Omega-3 is an
essential fatty acid which is required for healthy growth and its deficiency leads to
various health problems that have seemed to increase in recent years. Regular intake of
omega 3 fatty acids protects from various diseases and helps to reduce the incidence of
heart disease, inflammation (in skin diseases like eczema), cancer, and arthritis. The
organic milk also contains greater amounts of conjugated linoleic acid (CLA).
Conjugated linoleic acid (CLA) increases the bodys metabolic rate, immunity to
disease, and muscle growth. It also reduces abdominal fat, cholesterol, and allergic
reactions. Organic cows are grazed on pastures that are grown through organic means.
Therefore, their milk is not contaminated with harmful chemicals such as the residues
of pesticides, fertilizers and hormones. Furthermore, this nutrient-rich organic milk
does not contain traces of antibiotics, GM feed, urea, or fertility hormones, as these are
not fed to the cows to increase their milk production. Organic milk has a two to three
times higher concentration of antioxidants like lutein and zeaxanthin than non-organic
milk. Lutein is extremely important for eye health and is effective in preventing
numerous eye diseases such as macular degeneration and cataracts. Zeaxanthin is also
important for good eye health. It protects the eye from UV damage and the impact of
free radicals. It is very helpful in preventing cataracts, diabetic retinopathy, glaucoma
and macular degeneration. Organic milk has a higher concentration of vitamins such as
Vitamin A and Vitamin E than conventional milk. Since organic cows graze on fresh
grass and clover, the milk they produce has about 50% higher Vitamin E and 75%
higher beta carotene.

34
 Organic milk production: Brands in India are ignoring a
crucial requirement to meet rising demand
According to the Economic Survey of 2015-16, India produces 146 million tones of
milk every year, or 18.5 percent of the total worldwide output, pushing the country to
the top of the global chart. Now, almost 68 percent of this 146 million tones was found
to have adulterants ranging from detergent, starch, urea to white paint whereby
water dilution is the least of your worries. But the huge dairy industry is highly
unorganized, as deduced by Dhananjay Singh, 37-year-old co-founder of a company
called Nutoras which was launched in 2012. I was an investment banker with Merrill
Lynch when I started delving into the farming industry, tracking various economies
and found consumption exploding across countries. Consumer burst happens mostly in
the animal-based protein space which can be achieved by sustainable farming. In India,
I felt its an unorganised sector. Statistics and demographics seemed conducive to start
a venture, he says.

Ranging between Rs 60 and Rs 90 per litre, the brands are milking the organic label.
This begs the question what is organic milk? Dairy products differ as per vegetables
and food grains in this sphere. A vegetable, grown from organic seeds not genetically
modified and without the use of chemicals (fertilisers or insecticides) is labelled as
organic produce. However, with milk, the quality of the product can be affected by
various external factors beyond the farmers control. Hence, even if the cows are not
treated with hormones or antibiotics, and fed wholesome feed, the milk may not be up
to WHO standards bacteria levels, aflatoxins, increased somatic cell counts etc. For
example, the most common disease is Mastitis with huge costs to the dairy industry. It
is a mammary gland infection incurred when immediately after milking, the cow has
been allowed to sit or its udders have come in contact with unhygienic areas.

Different countries have varying criteria for declaring milk as organic.

Whereas the USFDA mandates that apart from no chemical treatment, cows must also
be fed organic fodder, India is silent on this point.

A leading factor is that genetically modified hybrid seeds have flooded the market,
capturing the farming scene. A farm producing organic cow feed is a rarity. Hence, the
appropriate tag for Indian dairy would be organically-produced milk.

Mangal Gupta of Lalgoon farms in Maharashtra disagrees completely. If there is no

organic fodder for the cows, one cannot call it organic milk. At the most, it can be
called not-tampered milk since no oxytocin is administered, says this 49-year-old
dairy farmer. His cows produce chemical-free, natural milk which he delivers to clients
in Mumbai. Having started as an organic farmer of exotic vegetables, Mangal realised
that he required cows for its dung as manure. When his infant child did not get

35
sufficient breast milk, the doctor advised pure cows milk. It was then that Gupta
realised the severe lack of pure milk availability in Mumbai. This was the turning point
and he started his current venture.

He goes on to add that 90 percent of his city clientele are those suffering from health
disorders. Consumer base has increased from close relatives of the dairy farmer to
health-conscious urbanites. As more fall victim to lifestyle diseases, most are
switching to organic, especially the large vegetarian section of society whose main
food items are dairy products like ghee, butter, cottage-cheese (paneer) other than
milk.

With such enterprises, one comes to realize that often the entire community benefits.
Dhananjay works with almost 11,000 farmers across Maharashtra to develop a
sustainable ecosystem which benefits the consumers by providing healthy milk, and
also improves animal welfare.

I have worked out a barter system with the farmers who provide cow feed to the farm
in Satara. Part of the payment is in cow dung for their agricultural farming, which has
almost doubled their yield per acre, thereby boosting sustainable practices, says
Dhananjay. Cow dung is a highly beneficial natural fertilizer which also brings back
to life essential microbes and worms, killed by overuse of chemicals, which aerate the
soil and add nutrients to it, says 31-year-old Mithran Jayan, co-owner of The
Farmers Store in Bandra, Mumbai which sells only organic produce.

When it comes to cow feed, there are those farms where the cows are tied or caged,
and those with larger acreage which let their cows roam free. This ensures that the
animal grazes on pasture with a variety of feed, rather than being on a restricted diet,
thereby ensuring the best quality of milk. This is called loose housing or free range.

When it comes to storage, most packaged milk has hydrogen peroxide added to it as a
preservative. In summers, the common phenomenon is reconstituted milk from milk
powder. Lacking these, organically-produced milk must be chilled to 4 degree Celsius
with a shelf life of 72 hours. Hence, long-distance delivery is not possible with regards
to organically produced milk. But it is now being produced all over the country, across
Chennai, Uttar Pradesh, Gujarat and other states, which in turn supply to the major
metropolitan cities of India. These are all individual efforts and supplies although
bigger brands like Amul have also entered the organic milk market. However, any
genuine farmer worth his milk will tell you that there are no regular checks or quality
control in the market for milk.

36
 Chapter- 2
Literature Review

Consumer Beliefs about Organic Milk vs. Reality

Over the past two decades, organic products have gone from mainstream market
obscurity to being the staple in a growing number of homes across India. For some,
organic is not just a mere purchase of a product from the grocery store, its an entire
lifestyle all its own. A lifestyle that heavily embraces the organic food movement of our
time also seems to encompass many other ideas: sustainability, environmental
responsibility, healthy living, nutritional and natural foods, and lastly animal welfare.
The term organic means a great deal to an increasingly health conscious public by having
a strong, emotional image attached to it. However, this image does not necessarily
represent reality. According to the United States Department of Agricultures (USDA)
Organic Food Production Act (1990), cows that produce milk that is to be certified with
an organic label may not receive any type of growth promoters or hormones, may not be
given antibiotics, and must be fed feed that is 100% certified organic for a full year prior
to certification. Animals must also meet strict animal health and welfare standards, being
provided with access to outdoors.
In breeder stock, treatment cannot occur during the last third of gestation if the progeny
will be sold as organic and must not be used during the lactation period for breeding
stock. The use of synthetic substances for the treatment of animals or for any surgical
procedures is highly restricted, has very specific withdrawal periods and, if necessary,
requires specific orders from a licensed veterinarian for any use. Although the Food and
Drug Administration (FDA) has found no difference in cows that have been treated with
recombinant bovine somatotropin (rBST) and those without, consumers still find it
absolutely unacceptable to give cows any kind of growth hormones.
Factors that contributed to the consumer purchasing organic milk over conventional
included: belief that the injection of growth hormones is considered unacceptable, that
organic foods do not contain genetically modified ingredients, and that conventional
dairy products were seen as less safe than organic. With these consumer attitudes towards
conventional milk still being prominent, clearly the fact that rBST poses no human health
threat has not effectively been disseminated to the consumer. Cows that are producing
milk that is to be labeled organic are not allowed to receive antibiotics (USDA, 2012B).
This is in direct consequence to consumers being concerned over antibiotic residues
ending up in milk. However in all milk, regardless of whether it is organic or
conventional, detectable concentrations of antibiotics is illegal, the milk is not sold for
human consumption, and antibiotic contaminated milk has an estimated cost of $50
37
million in losses annually. Knowing that farmers are legally bound to observe proper
withdrawal times of antibiotics in conventional operations so that antibiotic residues will
not end up in milk should assuage consumers fears. Proper treatment of illness with
antibiotics is good for cow health and will not impact the consumer. Any consumer fear
over antibiotic residue is unfounded. Consumers of organic milk firmly believe that they
are receiving a more nutritious product.
However, according to the Wisconsin Milk Marketing Board (WMMB, 2012), organic
milk and conventional milk are both simply milk- having the same basic compositions
and proportions of carbohydrates, proteins, vitamins and minerals. Studies done on
differences in levels of conjugated linoleic acid (CLA) have yielded mixed results based
on the duration of the study and diet fed to the cows. One twelve month study revealed
that although there was not a difference in major CLA composition, organic milk was
attributed to having higher polyunsaturated fatty acids (PUFA), n-3 fatty acid.
Another study that compared pasture-based operations to conventional farms that fed a
total mixed ration (TMR) found that pasture-fed cows had milk with higher CLA and
unsaturated fatty acid (UFA) concentrations. Due to conflicting evidence, a consumer has
no true guarantee of receiving an 6 increase in CLAs drinking organic milk, but they may
benefit from an increase in PUFA and UFA concentrations. Unlike conventional farms,
organic farms must offer cows access to pasture according to USDA standards (2012B).
Many organic farms are pasture-based operations but only some conventional farms are.
Most modern conventional farms in California utilize a free stall barn according to the
California Milk Advisory Boards (CMAB) brochure Todays California Dairies- Care
of Dairy Cows in California (2012B) and are fed nutritionally balanced TMRs.
However, consumers have developed a New Perception of modern agriculture and
believe that conventional farming is detrimental to animal welfare. Conventional dairy
farms with free stall barns are viewed as inhumane while organic farms with pasture-
based operations are viewed as promoting animal welfare. Organic farms with cows on
pasture makes for a highly marketable product because of consumers emotional
associations of animal wellbeing and a healthy image. Animal welfare is a considerable
factor in what makes organic an appealing choice over conventional because consumers
believe organic milk is a more ethical purchasing choice. In fact, according to McEcheran
and McCleans 2002 study, Over half of respondents regard organic farming as being
better for animal welfare (64%); conventional dairy farming as being too intensive
(53.5%); and that it wasnt acceptable to give cattle hormones to produce more milk
(68.5%).
Further driving the belief that organic operations are more humane is the fact that in order
to be certified organic, animal welfare standards must be met.
In order for conventional farms to sell milk to processors, animal welfare standards do
not necessarily have to be met but a growing number of producers are getting involved in

38
programs such as National Dairy FARM Program: Farmers Assuring Responsible
Management, a quality assurance program that certifies that producers are meeting
animal welfare standards (National Milk Producers Federation, 2012). If consumers wish
to verify a companys involvement in the program, they can view participants on the
programs website. In addition to this program, it should be noted that in order for
farmers to be successful, they need to offer their animals adequate water, feed, shade and
medical treatment not only for the animals wellbeing but for economical reasons as well.
A cow that is not receiving optimum quantities of clean water and a good nutritional diet
will not be producing milk at its maximum capacity. Proper care of animals is a common-
sense, sound business practice for even conventional producers. It is clear that consumers
are somehow not receiving this message. Environmental concern is ranked 4th in
consumers reasons to purchase organic milk behind improved taste, food safety and
health reasons. Consumers clearly believe that organic milk is better for the environment
and even packaging of organic milk products capitalizes on this. Surprisingly though,
recent studies have shown that organic milk production may not be as good for the
environment as originally thought. Although organic production does not use fertilizers,
thereby reducing the potential of nitrate and phosphate runoff, there is 8 actually an
increase in methane emissions by changing from a conventional farm to an organic farm.
Another study found that the global warming potential (a measurement of carbon dioxide
plus carbon dioxide equivalents of methane and nitrous oxide) is considerably higher for
organic over conventional operations and cows treated with rBST had the lowest global
warming potential. The same study showed that this trend continued in water quality and
nitrogen and phosphorus excretion, with organic operations having the highest negative
environmental impact and cows being treated with rBST having the lowest impact.
Furthermore, dairying in general does not have as negative of impact as consumers
believe, with dairy cows producing lower levels of ozone than combustion sources.
Recent advances in technology have also shown hope for great reductions in emissions
for the industry in the future. If an anaerobic digester is used and biogas substitutes on-
farm fossil fuels, a shocking 96% reduction in emissions can be made. In reality,
conventional milk is better for the environment than consumers give it credit for. The
final area of consumer concern explored was the issue of taste preference. Consumers of
organic milk report that improved taste was the primary reason behind their purchase of
organic milk over conventional milk (McEacheran and McClean, 2002). However, this
study did not include an actual sensory evaluation of the differences between the two
types of milks to support the claim that organic milk tasted better. Luckily, two other
sensory tests were run, one comparing organic milk to conventional milk and another
comparing milk from a pasture-based system and milk from a conventional farm feeding
a TMR. Both of 9 these tests showed that consumers could not find a detectable
difference between the conventional milk and the organic/pasture-based system milk. In
essence, although consumers claim that taste difference is the primary reason for
39
purchasing milk, the claim could not be substantiated with sensory tests. As far as taste
goes, there is no difference between organic and conventional milk.

Chapter- 3

Research Methodology

Objectives of the Study

The main objective is to analyze the sales of the Organic Dairy Products in India.
To analyze the main factors affecting the growth of the Indian Organic Dairy
Industry.
To analyze the challenges associated with the Organic Dairy Industry.
To give a brief understanding about the company The Right Moo
To analyze the difference between the Conventional milk and the Organic milk
To get a brief understanding about the Indian Organic Dairy Industry.

This topic describes the methods of the study of the project. Research is a careful
investigation or inquiry especially through search for new facts in branch of knowledge
market research specifies the information. Research problem is the one which requires a
researcher to find out the best solution for the given problem that is to find out the course
of action, the objectives can be obtained optimally in the context of a given environment.

Research Design
A framework or blueprint for conducting the research project. It specifies the details of
the procedures necessary for obtaining the information needed to structure and/or solve
research problems.

Define the information needed.

40
 Design the research.

Specify the measurement and scaling procedures.

Construct and present a questionnaire or an appropriate form for data collection.

Specify the sampling process and sampling size.

Develop a plan of data analysis.

Data Collection
The data are collected by the primary and secondary sources both to know the consumer
awareness towards the Organic Dairy Products.

Primary Data

The primary sources are those through which data can be collected by first hand. The
data has been collected directly from respondents with the help of questionnaires and
analysis was done on the basis of response received from the customers. The
questionnaire has been designed in such a manner that the consumers perception level
can be measured easily.

Secondary Data
Secondary data means data that are already available i.e. they refer the data which have
already been collected and analyzed by someone else. When the researcher utilizes
secondary data, than he has to look into various sources from where he can obtain them,
in this case he is certainly not confronted with the problems that are usually associated
with the collection of original data. Secondary data may either be published data or
unpublished data. Usually published data are available in:

The main source of information for the project was

41
 Weekly magazine

Internet

Newspapers

Research Period
Research work is done in 6-8 weeks from 01st June 2017 to 31st July 2017.

Sample Size
The sample of 100 Customers were taken.

Tools for Analysis

Graphical tools used are Pie chart and Bar diagram.

Limitations
All efforts have been made to present a true picture of the SATISFACTION level of
employees towards IR Accessories Private Limited, but there are certain limitations to be
kept in mind while going through the report.

a) Sample Size:-
The size of samples greatly affects the survey results, but the size may not be substantial,
may be too short for the conduct of survey.

42
 b) Time:-
Time constraints were a great barrier as the work was to be completed in a given time
period.

c) Information may be biased:-

Respondents answer may be biased; it may be influenced by other factors such as fellow
employees, friends, Relatives etc.

d) Limited area of Study:-

The area of study is also greatly affecting the study done; this study is done in limited
area only.

43
 Chapter 4
Data Analysis & Interpretation
Q1. How often do you buy Organic Products?

a) Several times a week

b) Once a week
c) Once a month
d) Few times a year

Particulars No. of Respondents Percentage

Several times a week 13 13%
Once a week 62 62%
Once a month 17 17%
Few times a year 8 8%
Total 100

Several times a week

Once a week
Once a month
Few times a year

44
Q2. Where do you usually buy organic products?

a) Generic supermarket/retailer
b) Organic health store
c) Online
d) Producer/farm
e) Other

Particulars No. of Respondents Percentage

Generic 23 23%
supermarket/retailer
Organic health store 16 16%
Online 47 47%
Producer/farm 8 8%
Other 6 6%
Total 100

Organic health store

Online
Producer/farm
Other
Total

Q3. In what way has the economic downturn affected your organic purchases?

a) Increased spend
b) Stayed the same
c) Reduced spent

45
 Particulars No. of Respondents Percentage
Increased spend - -
Stayed the same 23 23%
Reduced spent 77 77%
Total 100

90
80
70
60
50
40 Series1
30
20
10
0
Increased spend Stayed the same Reduced spent

Q4. Why do you choose organic products?

a) Ethical reasons
b) Protect the environment (sustainability)
c) Prefer the taste/texture/feeling etc.
d) Quality of product
e) Peace of mind

Particulars No. of Respondents Percentage

Ethical reasons 3 3%
Protect the environment (sustainability) 30 30%
Prefer the taste/texture/feeling etc. 21 21%
Quality of product 46 46%
Peace of mind - -
Total 100

46
 Ethical reasons

Protect the environment

(sustainability)
Prefer the
taste/texture/feeling etc.
Quality of product

Peace of mind

Q5. If the price of organic products continued to rise, would you continue to purchase
organic products?

a) Yes
b) No
c) Not sure

Particulars No. of Respondents Percentage

Yes 34 34
No 43 43
Not sure 23 23
total 100

50
45
40
35
30
25
Series1
20
15
10
5
0
Yes No Not sure

47
 Interpretation

Most of the consumers buy organic products once a week.

Mostly consumers buy organic products via. Online Portal
Economic downturn would result in the less spending for the organic
products.
Most of the consumers buy organic products because of their good quality.
If the prices of the organic products continued to raise it would affect the
sales of those products severely.

Suggestions
Consumers are very much affected by any price rise of any organic product
whether dairy product or any other which ultimately result in the downfall of sales
of these products. So companies must not raise the prices frequently.
By the study, I got to know mostly people buy organic products via online portal
so companies must do digital marketing in order to promote the industry.
Companies must promote the health benefits associated with the usage of organic
products.
High prices of these products hamper the growth of this industry, as people think
twice before buying these high priced organic products.

48
 Summary & Conclusion
The project could be summarized explaining the Indian Organic Dairy Market and the
Global Organic Dairy market. The growth drivers in the Organic Dairy Market and the
challenges present in the Organic Dairy Products Market are also explained in the project.

While working in The Right Moo, I got to gain the thorough knowledge about The
Organic Dairy Products Industry and their products.

The main motive of the companies engaging in producing organic products whether its a
Dairy Product or any other is to provide people with a healthy and a pure natural product.

Organic Milk is produced in the farm where cows only eat organic feed and when a cow
eats organic it gives pure organic milk.

As being in the sales and marketing team, I got to know about the consumer behavior
towards this particular Organic Product as being a new entrant in the Industry the major
problem we faced was the lack of knowledge in the mind of the consumers about The
Right Moo which made it difficult for us to get a breakthrough in the market.

Another major problem we faced was the high price of the product.

As youngsters prefer fast food and beverages rather than anything organic because of its
high price, I myself would prefer the same.

But this trend is changing slowly and gradually going towards the stage where people are
becoming health conscious especially mothers who want their children to eat only healthy
food.

Keeping that in mind, The Right Moo launched its Organic Milk in Tetra pack of 1kg.

Pure Organic Chocolates and Organic Milk Shakes were also launched for the young age
group. But the problems with these products were their high prices and the lack of
promotion.

How can we expect the sales if our target customer doesnt know whats coming in the
market which could be done via advertising, promotions, sampling etc.

49
The milk produced organically is delicious and has more health benefits than your
average off-the-shelf packet milk. It is packed with natural nutrients, minerals, enzymes
and micronutrients. The milk is also rich in Omega 3. CLA and Vitamin E.

No growth hormones, No antibiotics, No wormers or other preventative

medicines, 100% organic feed if not on pasture, No animal by-products in the
feed, No artificial roughage in the feed, Living conditions that allow movement,
have access to outdoors & sunlight.
Rising awareness about health benefits associated with organic dairy
products, increasing average household annual spending on dairy products, rapid
urbanization, easy accessibility of these products through retailers and online
channels, changing consumer preferences, continuous developments in supply
chain network and implementation of government initiatives to encourage farmers
to switch to organic farming is boosting sales of organic dairy products across the
globe. In addition, introduction of innovative organic dairy products such as
energy based milk drinks, flavored organic milk drinks and variety of organic
yogurt and other organic dairy products are expected to further propel growth in
global market for organic dairy products through 2021.
It can be concluded that in the coming time The Organic Dairy Products Industry is
about to grow at a very high rate, the problem of being sold at a high rate is also slowly
declining with the increase in the buying capacity of the people and the people being
conscious about their health.

This health consciousness results in their purchasing of organic products and ultimately
increasing the sales of the companies providing these Organic Products.

According to me it could be said that Organic Foods and Beverages Industry has a very
promising Future in India and it could become a leading Industry in coming years
because of people becoming more & more health conscious.

50
 Bibliography
Books

1) Kamboj ML, Prasad S, 2013. Organic Dairy Farming in India: Prospects, Practices and
Constraints. In: New Paradigms in Livestock Production from Traditional to Commercial
Farming and Beyond.

2) Health Benefits of Organic vs. Conventional Milk. Mercola.com.

http://openlibrary.org/

3) Introduction to Organic Dairy Farming. Extension

http://www.extension.org/pages/18325/introduction-to-organic-dairy-farming#.

4) Yadav AK, 2008. The strategic significance of organic farming to India, In Global
Organic Agribusiness India Arrives!

5) Literature review from journals of marketing of Organic Dairy Products

Wikipedia

Company Website

www.therightmoo.com

Articles on Organic Industry in India

51
 Annexure
Q1. How often do you buy Organic Products?

a) Several times a week

b) Once a week
c) Once a month
d) Few times a year

Q2. Where do you usually buy organic products?

a) Generic supermarket/retailer
b) Organic health store
c) Online
d) Producer/farm
e) Other

Q3. In what way has the economic downturn affected your organic purchases?

a) Increased spend
b) Stayed the same
c) Reduced spent

Q4. Why do you choose organic products?

a) Ethical reasons
b) Protect the environment (sustainability)
c) Prefer the taste/texture/feeling etc.
d) Quality of product
e) Peace of mind

Q5. If the price of organic products continued to rise, would you continue to purchase
organic products?

a) Yes
b) No
c) Not sure

52
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