SUB-SECTOR

ANALYSIS OF DAIRY
IN TWO CLUSTERS OF
AHMADNAGAR AND
BEED DISTRICT

By: Dipi Gupta

Manjeet Sahu
 OUTLINE
 Objective  Milk production
 Theoretical background  Milk processing
 Framework

 Milk marketing
Methodology
 Sample profile  Constraints
 Geographic maps  Interventions matrix
 Sub-sector maps
 Inputs
* Cattle
* Cattleshed
* Fodder
* Water
* Health and hygiene
 OBJECTIVE OF THE STUDY
 Understand the  Sub-sector map
dynamics of the dairy
sector
 Identify the  Constraint analysis
constraints facing the
sector
 Identification of  Intervention matrix
suitable interventions
 WHAT IS A SUB-SECTOR?
 “ Sub-sector is an interdependent array of
organizations resources, laws and institutions
involved in producing, processing and
distributing an agricultural commodity”. (Marion
et al, 1986)
 “Sub-sector is a network of firms that supply the
raw material, transform them and distribute
finished goods to a particular consumer market”.
(Haggblade and Gamser, 1991)
 SUB-SECTOR ANALYSIS
 a) Examines the relation between enterprises that
produce, procure, process and distribute goods
within a single product group
 b) Identifies the constraints and opportunities
facing these enterprises along with potential
interventions to address them.
 c) Identifies sources of leverage where
interventions can have the greatest impact.
FRAMEWORK OF THE
STUDY
MARKETING

GOVERNMENT
POLICIES
PROCESSING

PRODUCTION
RESEARCH
&
EXTENSION

INPUT
SUPPLIES
 METHODOLOGY
3 level data requirements

VILLAGE STUDY HOUSEHOLD STUDY

MARKETING CHANNELS
STUDY
 METHODOLOGY
 Sample villages
Village Block District
Landakwadi Pathardi Ahmadnagar
Pirewadi Pathardi Ahmadnagar
Morala Ashti Beed
Nagtala Ashti Beed
Pangra Ashti Beed
Lohsar Pathardi Ahmadnagar
Wanjarwadi Shirur Beed
Raimoha Shirur Beed
Dongerkinhi Patoda Beed
Sindphana Shirur Beed
 METHODOLOGY
Data collection tools
 FGDs
 Household surveys
 Semi- structured interviews
 Informal discussions
 SAMPLE PROFILE
Classification of farmer
 0-5 acres: Small farmer
 5-15 acres: Medium farmer
 Above 15 acres: Large farmer
Pathardi Shirur

Number of Average Number of Average

farmers land farmers land
holding in holding
acres
Small farmer 7 4.42 9 2.72

Medium farmer 14 9.34 8 11.87

Large farmer 9 26.67 3 31.66

Relation between land holding and livestock
population #
Occupational background
 Agriculture
 Dairy
 Migration
Livestock population details #
Geographic map of the area
under study
map.tif
map1.tif

Sub-sector map of dairy of the

two clusters
sub-sector maps.doc
 INPUTS
Cattle
 Cattle preferences : #
 Reason:
– Belief-Unsuitable to the climatic conditions
– Scanty rainfall
– Shortage of fodder
– Migration
– Underdeveloped marketing channel
 Cattle Market and Purchase
- Pathardi: Pathardi, Ashti, Loni
- shirur: shirur, Jamkhed
- seasonal trade
- through agent & trust factor, rate
 Cattle shade
 Fodder
Dry Fodder (bajra and jowar)
- Sources: Own farms + Intra village trade #
- Quantity fed #
- Sugarcane in Shirur
Green fodder
• Source: own farm, public land and forest area
• Maize , Yashwant, Stylohimata and Dinanath
grass
• Availability calendar
Concentrates
 Sarki, Singhdana, Sugrass and Wheat husk
 Purchased from market Slide 15
 Feeding
- pattern in both the cluster
- quantity fed #
 Market Rate

Pathardi cluster Pathardi, Ashti Groundnut oil Rs. 600 for

cake 50 kg

Cotton Sarki Rs. 300 for

50 kg

Wheat husk Rs. 350 for

50 kg

Shirur cluster Dongerkinhi, Raimoha, Groundnut Rs. 650 for

Shirur oilcake 50 kg

Cotton Sarki Rs. 300 for

50 kg

Wheat husk Rs. 250 for

50 kg

Sugrass Rs. 300 for

50 kg
 Water
 Indirect and direct impact

Indigenous Cross breed Buffalo

cows cow

Pathardi 20-25 lts 30-40 lts 28-30 lts

clsuter

Shirur 20-25 lts 50-60 lts 30-35 lts

cluster
Health and hygiene
 Lack of precautionary practices
 Greater incidence of illness among the
cross breed cows
 Average annual expenditure:
Pathardi: Rs. 750
Shirur : Rs. 1000
 MILK PRODUCTION
Factors affecting milk production
Specific to the Animal
 Breed
 Lactation cycle
 Fodder
 Water
Milk production calendar

Milk giving capacity (in percent) per

animal across months

July-October
40

100 Novem ber-

January
60
February-June

Economics of milk production:

cost of milk production.xls
 MILK PROCESSING
 Dahi, Toop for self consumption
 No processing for sale
 Reasons:
- Existence of dairies
- Time consuming
- Labour
 Economics of khoa making:
cost of milk production.xls
 MILK MARKETING
Demand inside the village
 Self consumption #
 Sale to hotels
Demand outside the village
 Mumbai milk union and Dynamix Dairy
Channel
 Private dairy
 Taluka Milk Cooperative
 Dynamix dairy
Private dairies
 Daily milk collection
 Fat basis payment: Rs. 2.20 per litre per fat
 Payment period
 Fat testing
 Extension services
 Commission: 40 paise per litre
Taluka Milk Cooperative
 Chilling centres
 Bonus of 25 paise per litre to private dairy
 Present rate of cow milk as given by the
milk union

Fat\SNF Rate in flush Rate in lean

season season
3.5\8.5 6.75 7.75
3.6\8.5 7.10 8.10
3.7\8.5 7.45 8.45
3.8\8.5 7.80 8.80
3.9\8.5 8.0 9.0
4.0\8.5 8.20 9.20
4.1\8.5 8.30 9.30
4.2\8.5 8.40 9.40
The reality
 Infrequent payments
 Under-reporting of fat
 Exploitation by the private dairy
 No incentive to the private dairy by the
milk cooperative
Dynamix dairy
 9 centres in Pathardi
 Centre at Devrayee: 3800 lts
 Centre at Khandgaon: 2700 lts
 Twice a day milk collection
 Government fixed fat rates
 Franchisee model
 Commission : 60 paise per litre in morning
40 paise per litre in evening
 Extension services
EXTENSION SERVICES
 Veterinary clinics: Grade 1(LDO) and Grade 2
(LSS) dispensaries
 Artificial insemination charges
* Rs. 11 at dispensary level
* Village visit
* Follow up action at 3 months intervals
 Livestock camps
 Vaccination services
 Livestock training
GOVERNMENT POLICY
 Transfer of ownership of chilling centres
 More emphasis on cross breed
CONSTRAINTS OPERATING
IN THE SECTOR
 Erratic monsoons
 Shortage of feed
 Lack of proper health acre facilities
 Lack of awareness among the people about
proper health care practices
 Livelihood pattern of the people
 Misconception about cross breed cows
 Lack of credit facilities
 Lack of organized marketing
 Lack of suitable housing (cattle shed)
 INTERVENTION MATRIX
Category Constraints Proposed
interventions
Business skills -Misconception Livestock training
development about cross breed
cows
-Breeding practices
-Lack of awareness
about proper health
care practcies
Procurement of -Erratic monsoons -Plantation of
inputs -Shortage of feed grasses
-Under-availability -Provision of
of medicines vaccinations and
medicines
 INTERVENTION MATRIX
contd…
Category Constraint Proposed
intervention
Finance -Lack of credit -Loans for
facilities cross breed
-Unforeseen cows
deaths - Insurance
coverage
Marketing Exploitative -Setting up of
channels marketing Doodh Samiti
practices -Collaboration
with Dynamix
dairy
 INTERVENTIONS contd..

Category Constraints Proposed

interventions
Institutions and Improper Networking
policy implementation with livestock
at grass root department,
level institutions and
NGOs
 LEVERAGE POINT
Formation of Doodh Samiti
 Paid employee, 5 members
 Collection of Milk
 Concentrate selling
 Livestock Training and Knowledge Dissemination
 CPR utilization for Fodder
 Loan Facility- inter linking body
 Provision for deworming and vaccination
 Collective Cattle Purchase
 Improved Agricultural Practices
THANK YOU