Agrigyan

Write us

info@agrigyan.com

+91 9999052385

Request a call back

If we had more of these!

Annual Reports are usually known for their ‘non readability’ – both in terms of  ‘content’ and ‘production’. Organizations typically tend  to  pack a lot of material which is of little relevance to the lay reader: the text is  usually uninspiring ,interspersed as it is, with mug shots of  political leaders pressing a button, or cutting a ribbon. The production is indifferent, and even when organizations use glossy paper, little attention is paid to the organization of the text, font size, readability and ease of going through different chapters. Not so with the NDDB report for 08-09 which your columnist  received a few days ago.  Like with most things which NDDB does, the report is a pleasure to look at  and with the exception of statement of accounts, is eminently readable. Your columnist read through most of it in a recent flight  from Kolkata to New Delhi, and found it better than the ‘in-flight’ reading material provided by the airline !

Lets start with the  aesthetics of the cover page. Adopted from a mural at Bund Palace, Rajasthan, it has  Kamdhenu (the mythic cow which gives abundant milk) and her calf, decked with  peacock feathers, tassels, jewels and bells ) in a glen with a wide range of flowers and foliage, and a water body in the vicinity with fish, swans, cranes ,ducks ,water lilies and lotus. The calf looks with absolute bliss  at the full udder of the cow, while she  is happy licking  the calf with all her maternal instinct. Here is nature at peace with herself, and one can view the cover page itself for quite a while and feel a sense of serenity. Full marks to the  creative consultants  for choosing this cover !

Now for the report. The Indian milk production scenario is placed in the  global context. We continue to be the world’s largest milk producing nation, and with an anticipated production of 110 million tonnes of milk in the year under review, it amounts to nearly 16% of the global milk production. But what is interesting to note is that even though  the global milk production increased marginally by 1.7%, the prices of  butter milk and SMP (skimmed milk powder)  in the international market  virtually crashed. SMP  fell from $3500 per tonne to $1900 per tonne, while in the case of butter milk the decline was even steeper- it came crashing from $3950 per tonne to $1850 per tonne. By January 2009,prices of dairy commodities in Europe had fell below intervention levels, and export subsidies were announced, which  ushered in a semblance of price stability to the commodity.

Fortunately  for the dairy farmer in India,  domestic prices of  milk and milk products continued to  showed an increase  between 5 to 6 percent for the producers and consumers. The prices of ghee rose  even sharper, while prices of SMP remained  more or less stable. Thanks to the ever increasing demand for milk and milk products on account of robust economic growth in most parts of the country, the NDDB  has drawn up an ambitious  National Dairy Plan to met a projected demand of  about 180 million tonnes of milk by 2021-22,(reference period) with the share of organized  sector in milk rising from current levels of 30 percent to  about 65%  during this time.  The co-op sector would continue to have at least 50% share in the organized milk market in the country, though one does notice a shift in the NDDBs earlier focus on  co-operatives to producer  companies, new generation co-operatives  and co-op type organizations. Whether this dilution of the ‘Kurien Mandate’ augurs well for  both the dairying and the co-op sectors can be determined only after a decade or so – for the present, your columnist  feels that if NDDB also chooses the ‘softer option’ of working  with ‘co -op’ like organizations, the prognosis is not good  at all. It is true that it takes  longer to organize co-operatives, and if  the main objective is milk procurement, then the time and effort required in organizing co-operatives is perhaps not worth it. However, let us examine the counterfactual. Producer companies can be taken over by the ‘corporates’ in a leveraged  buyout option  which is not possible in the case of a producer co-operative. Therefore even though co-operatives are not the flavour of the season, and it was the dogmatic pursuit of the ‘co-operatives – in- command’ syndrome that saw the  exit of Kurien from  Anand, your columnist feels that NDDB should not dilute its focus on co-ops. Wherever required, existing co-operatives  may take up  certain milk sheds as project  areas and foster co-op education and training and make farmers self reliant. Having said all this , a caveat is in order. This columnist feels that while the co-op form of member based, member  centered and democratically controlled enterprises is the best, producer companies are a better bet than Investor Owned Firms or corporates. As Dr Tolia is so fond of saying , ‘let not good be an enemy of the best !’

The Report  goes on to inform the reader  about the steps taken by NDDB  to promote smart cards and micro finance in several milk sheds, new initiatives in product and process development to meet the demands for healthier food options. As the report says ‘ an increasing awareness about  health foods has created  vast business opportunities for  business in healthy, low fat and  fortified foods and beverages. work on a low sugar fibre based probiotic  drink, probiotic whey beverages, low fat  paneer and curcumin fortified butter is  in progress.  Enhancing productivity through  scientific breeding, artificial insemination services, feeding, disease control  and health care services has always been  an integral part of the NDDBs action strategy : what is new is the focus on indigenous breed development  through   pedigree selection . The two local breeds that have been chosen include the  Rathi and Kankrej  in Rajasthan and Gujarat respectively. This is a very positive development  because the ability  of the indigenous cattle to survive in difficult conditions and challenged pasture lands is significantly higher. These breeds would also be much cheaper  than   the Jerseys and Holsteins, and therefore  more amenable for the  marginal and small farmers.