With 15% of the world cattle population, India occupies number one position in the world milk production. Tamil Nadu is one of the front line states in milk production. The daily milk production in Tamil Nadu through organized and unorganized sector is roughly around 127 lakh litres per day (LLPD) and out of which 63.50 LLPD of milk is available as market surplus after retaining 50% of the production for own consumption by the producers.

Out of the market surplus of 63.50 LLPD during the year 2004-2005 around 23.76 LLPD has been procured through the Co-operatives and 12.85 LLPD procured by registered private dairies and the balance quantity of milk has been handled by the unorganized sector. Tamil Nadu stands at 4^th position in the country in the milk procurement through Co-operatives. Under the dynamic leadership of our Hon’ble Chief Minister the present Government is taking all possible steps to bring it to number one position in the country by inducting new animals and by increasing productivity. Efforts are also being taken to improve infrastructure facilities in the state to handle more milk to be procured through the Co-operative societies.

2. THE BACKGROUND

The Dairy Development Department was established in 1958 in Tamil Nadu. The administrative and statutory control over all the milk Co-operatives in the State was transferred to the Dairy Development Department on 1.8.1965. The Commissioner for Milk Production and Dairy Development was made the functional Registrar under the Tamil Nadu Co-operative Societies Act.

With the adoption of 'Anand pattern' in the State of Tamil Nadu, Tamil Nadu Co-operative Milk Producers' Federation Limited was registered in the State on 1st February 1981. The commercial activities of the department such as milk procurement, processing, chilling, packing and sale of milk to the consumers etc., hitherto dealt with by the Tamil Nadu Dairy Development Corporation Ltd., were transferred to the newly registered Tamil Nadu Co-operative Milk Producers' Federation Limited, popularly known as "Aavin".

As a result of liberalization policy, private dairies have entered into the field of dairying leading to a healthy competition between the Co-operatives and the private dairies thereby paving the way for the consumers to get the best quality of milk at competitive prices.

The Department has two fold basic objectives:

(i) Assuring a remunerative price for the milk produced by the members of the Milk Producers' Co-operative Societies through a stable, steady and well organized market support.

(ii) Marketing good quality milk and milk products to the consumers at a reasonable price.

Keeping these objectives in mind, a number of activities are undertaken by the Dairy Development Department, viz., provision of free veterinary health cover to all animals owned by the members of milk Co-operatives, implementation of artificial insemination programme, supply of balanced cattle feed and education of farmers with the modern animal husbandry methods and practices. Various trainings are being provided to the producer members in the areas of clean milk production and healthy up-keep of animals.

All activities, which are essential for the upgradation of the milch animals and improving their productivity in the long run, are also undertaken.

Provision of necessary infrastructure facilities for marketing milk and milk products and supply of quality milk to the consumers has been ensured by establishing new Chilling Centres. Pasteurization Plants, Bulk Milk Coolers and adoption of modern processing systems.

4. DEPARTMENTAL SET UP

The Commissioner for Milk Production and Dairy Development is the Head of the Dairy Development Department. He is the State Registering Authority under MMPO 1992 for the State of Tamil Nadu. He is also ex-officio Managing Director of the Tamil Nadu Co-operative Milk Producers' Federation Limited.

The Commissioner for Milk Production and Dairy Development exercises all the statutory powers with regard to the registration of societies, supervision, inspection, inquiry, disputes, liquidation of milk Co-operatives including the District Co-operative Milk Producers' Unions and Federation under the relevant provisions of the Tamil Nadu Co-operative Societies Act, 1983 and Tamil Nadu Co-operative Societies Rules, 1988. He is regulating authority in respect of Dairy Co-operatives and Private dairies. While discharging the statutory functions, the Commissioner for Milk Production and Dairy Development is assisted by the Deputy Milk Commissioner (Co-operation) in the rank of Joint Registrar of Co-operative Societies and a Deputy Registrar at the Headquarters besides 23 Deputy Registrars (Dairying) at the district level.

The functions of the Dairy Development Department include organization of societies, registration of societies, supervision and control of Primary Milk Co-operatives, District Co-operative Milk Producers’ Unions and Tamil Nadu Co-operative Milk Producers’ Federation. It also maintains and increases the supply of liquid milk to the consumers by ensuring food safety and hygienic regulations.

The Dairy Development Department exercises statutory functions like Inquiry, Inspection, Surcharge and Suppression, Appointment of Special Officers, Liquidation and Winding up of dormant societies etc. The Commissioner for Milk Production and Dairy Development, Deputy Milk Commissioner (Co-operation), and Circle Deputy Registrars (Dairying) are vested with quasi-judicial powers in respect of settlement of disputes, appeal, revision and review under various provisions of Tamil Nadu Co-operative Societies Act, 1983 and the Tamil Nadu Co-operative Societies Rules, 1988.

The Commissioner for Milk Production and Dairy Development has been designated as the State Registering Authority for the State of Tamil Nadu, under the provisions of Milk and Milk Products Order 1992. All the dairy units including private dairies handling more than 10,000 LPD of milk or milk products containing milk solids in excess of 500 metric tones per annum have to obtain registration certificate under the provision of Milk and Milk Products Order 1992. The Commissioner for Milk Production and Dairy Development / State Registering Authority has been conferred with powers to register the dairy units having handling capacity from 10,000 LPD to 2,00,000 LPD. The Commissioner / State Registering Authority, Deputy Milk Commissioner (Co-operation), District Collectors and Deputy Registrars (Dairying) have been authorised to carry out supervision and periodic inspection of the dairies. Samples of sachet-milk are being collected from the various selling points and sent to the Quality Control Laboratory, functioning under the direct control of the Commissioner for Milk Production and Dairy Development in the premises of Commissioner for testing the quality of milk and to take further penal action against the erring dairies.

5.1 PRIMARY DAIRY CO-OPERATIVES

A minimum number of 25 or more individuals competent to contract under section 11 of the Indian Contract Act, 1872, owning milch animals, can form a Primary Dairy Co-operative Society, with one or more villages as its area of operation. Such persons have to approach the Circle Deputy Registrar's (Dairying) office functioning at the District for further guidance. The members of Primary Milk Co-operative societies have to pour milk to the Society which will procure milk on quality basis and the members will receive milk cost once in 10 days / 15 days from the Society. Milch animals are provided with free veterinary health cover, artificial insemination and the supply of balanced cattle feed. Induction of farmers on modern animal husbandry practices aimed at by upgrading the milch animals and thereby improving their productivity in the long run for the benefit of the members.

In order to encourage the women members to contribute more to the dairy sector, they are being called upon to organise women milk producers' Co-operative societies in their respective areas. There are 1462 women milk producers’ Co-operative societies functioning in Tamil Nadu. Self Help Group members are being admitted as members in the societies on priority basis.

5.3 APPOINTMENT OF SPECIAL OFFICERS

Since 26.05.2001 the Government issued orders terminating the extended term of office of members of Boards and appointed Special Officers under section 89(1) of Tamil Nadu Co-operative Societies Act, 1983. The personnel of Dairy Development Department and employees of District Co-operative Milk Producers Unions have been appointed as Special Officers in respect of 8652 Primary Milk Co-operative Societies and 360 societies are functioning under the control of Interim Boards. In respect of District Co-operative Milk Producers’ Unions, the Collectors of the respective Districts have been appointed as Special Officers and for Tamil Nadu Co-operative Milk Producers’ Federation Ltd., the Managing Director of the Federation has been appointed as Special Officer. The terms of Special Officers in respect of all Dairy Co-operatives have been extended up to the period of 26.05.2005.

6. DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNIONS (DCMPUs)

There are 17 District Co-operative Milk Producers' Unions functioning in the State of Tamil Nadu covering 30 Districts. There are 16 Dairies in District Co-operative Milk Producers' Unions with an installed processing capacity of 18.92 LLPD . There are 39 Chilling Centres in the District Co-operative Milk Producers' Unions with installed chilling capacities of 12.83 LLPD.

The basic functions of the Co-operative Milk Producers Unions are:

(1) Collection of milk from societies, process and pack in modern dairy plants by maintaining quality standards.

(3) Fixation of procurement and selling price of milk.

(4) Supply of quality milk to Chennai Metro under hygienic conditions.

(5) Establishment of Chilling Centres & Bulk Milk Coolers (BMC).

(6) Increase of liquid milk sales by introducing innovative sales promotional activities.

(7) Supply of inputs to the members of the societies.

(8) Render veterinary health service and emergency service to the cattle of members of primaries, to impart training on First Aid and on Artificial Insemination to the staff of member societies.

(9) Extending artificial insemination services to the cattle owned by the members of Milk Societies.

(11) Surplus milk in the District Unions, after meeting their local sales is diverted to the nearest Feeder Balancing Dairies (FBD) for conversion into milk products, such as Skim Milk Powder, Butter and Ghee. Salem, Erode, Madurai and Dharmapuri Unions are the Feeder Balancing Dairies (FBD).

(12) The three Cattle Feed Plants at Madhavaram, Erode and Kappalur are run by the Kancheepuram-Tiruvallur, Erode and Madurai Unions respectively. The production capacity of each of these cattle feed plant is 100 MT per day. The balanced cattle feed produced in the form of pellets and mash are supplied to the members of the Milk Co-operatives, livestock farms manned by the Animal Husbandry Department and to various local bodies.

7. DISTRICT UNIONS

7. 1 MILK PROCUREMENT

Most of the rural people especially women sustain and supplement their income by supplying milk to the Co-operatives through rearing milch animals. Keeping this in view and to improve the rural economy and to enhance the personal income of the stake holders in rural area, Hon'ble Chief Minister of Tamil Nadu, announced to raise the procurement price of the cow's milk from Rs.9.50 to Rs.10.50 per litre and that of the buffalo’s milk from Rs.11.44 to Rs.12.50 with effect from 1.6.2004 and the milk cost as per the revised procurement price is being disbursed to the Milk producers.

Because of the above increase of procurement price, milk producer members are getting additional amount of Rs.7.16 crores per month and Rs.85.90 crores per year over and above the normal procurement price. While increasing the procurement price, the selling price of milk has not been enhanced and thus the Government has protected the interest of the consumers.

The procurement price payable to milk producers was revised from 01.06.2004 as follows:

7.2 INCREASE IN PROCUREMENT

Compared to the average milk procurement of 17.26 Lakh litres per day during the year 2003-04 by the District Co-operative Milk Producers’ Unions, the average milk procurement during the current year 2004-05 up to March 15th 2005, has been 20.53 lakh litres per day. Thus procurement growth rate of 18.95 percent has been registered in this year. An all time high monthly average milk procurement of 22.28 Lakh ltrs per day was achieved during the month of June 2004.

7.3 AVERAGE MILK PROCUREMENT PER DAY

(LAKH LITRES)

Compared to previous years, this year’s average procurement is the highest in the history of "Aavin".

7.4 ENHANCEMENT OF MILK PRODUCTION

In Tamil Nadu, 12.54 lakhs cows and 2.12 lakhs buffaloes are under the Co-operative fold and they are provided with breeding cover through Artificial Insemination programme by using frozen semen, health cover through mobile veterinary units and vaccination of bovine population against Foot and Mouth Disease and Theileriosis disease. Producer members are supplied with cattle feed and fodder for their animals. During the year 2004-2005 up to 15^th March 2005. 16,757 MTs of cattle feed have been produced and 16902 MTs of cattle feed have been sold.

7.5 1000 MILCH ANIMALS LOAN SCHEME

Hon'ble Chief Minister of Tamil Nadu announced, a scheme of " 1000 milch animals in each Panchayat Union" over and above the existing number of milch animals and also ordered to sanction the loans at the minimum rate of interest.

The Government issued the order vide G.O.No. 102, AH & F (MP-I) Department dated 4.8.04 about the modalities for the implementation of the Scheme.

In light of the G.O., " Beneficiaries Identification Committee" has been appointed in all societies throughout the State.

Under the Chairmanship of Collector, monitoring committee have been appointed, in order to review the progress.

So far, 3,02,778 applications have been received and 2,79,828 applications have been processed by the Beneficiaries Identification Committee and forwarded to the Nationalised banks for sanctioning the loan.

So far, 11,773 beneficiaries have been given milch animals under this scheme.

The Artificial Insemination facilities are made available to the farmers through 2392 Dairy Co-operative Societies. The village level workers in the Milk Producers Co-operative Societies are being imparted training in artificial insemination technology. During the year 2004-2005 upto Feb'2005, 11.52 lakh milch cattle were inseminated with frozen semen and 2.99 lakh calves of superior germ plasm were born out of which 1.40 lakh calves are females. Throughout India, Tamil Nadu is ranking first in carrying out maximum Artificial Insemination cases, which has definitely helped to improve genetic potential of bovine population in the State.

District Co-operative Milk Producers' Unions are operating mobile veterinary units with qualified Veterinary Doctors who have treated 5.16 lakhs cases during 2004-2005 upto February 2005. 5214 Dairy Co-operative Societies are covered under animal health programme. To attend to the distress calls received from the members, emergency veterinary units are also operated. During the year 2004-2005 upto February 2005, 65 regular veterinary units and 21 emergency units have been operated under the control of District Co-operative Milk Producers' Unions.

7.7 BREEDING PROGRAMME

For breeding, 73 bulls of superior germplasm are maintained at Nucleus Jersey and Stud Farm (NJF) at Udhagamandalam. Frozen semen straws of 13.31 lakhs of White Cattle and 0.58 lakhs of Black Cattle were produced at NJF at Udhagamandalam and in the Buffalo Frozen Semen Station (BFSS) at Erode respectively during the year 2004-2005 upto February 2005. NJF at Udhagamandalam is the first semen station in the country to obtain ISO certification.

The Tamil Nadu Co-operative Milk Producers' Federation Limited is an apex body of 17 District Co-operative Milk Producers' Unions. The Federation has four dairies in Chennai, one at Ambattur with a capacity of 4.00 LLPD another at Madhavaram with a capacity of 2.00 LLPD and the third dairy at Sholinganallur with a capacity of 4.00 LLPD. These dairies collect milk from District Unions, process and pack in sachets and send for sale to the consumers in and around Chennai City. The fourth dairy is the product dairy at Ambattur, which is engaged in the manufacture of milk products such as Yogurt, Ice Cream, Khova, and Gulab jamun, Buttermilk, Lassi, Curd and Mysore Pa.

The marketing of Milk and Milk Products of the Federation is being carried out by the wings namely:

1. Metro Liquid Milk marketing.
2. Metro Product marketing.
3. Up-country marketing.

Marketing of the products in Chennai Metro and suburbs are directly carried out by the product wing of the Federation located at Nandanam in Chennai. These products are stored at the godown of Ambattur and distributed to the outlets.

Four types of milk sold in sachets are:

(i) Double Toned Milk - 2% Fat 9% SNF

(ii) Toned Milk - 3% Fat 8.5% SNF

(iii) Standardised Milk - 4.5% Fat 8.5% SNF

(iv) Full Cream Milk - 6% Fat 9% SNF

The sale of milk in sachets is being carried out through 24 zones, 517 Depots, 390 Distribution Points, 40 Whole Sale Milk Distributors, 88 Milk Retailers and 50 Milk Consumers’ Co-operative Societies. The sale of milk products is being carried out through 42 parlours, 154 Franchise Retail Outlets (FROs), 12 Wholesale dealers, and 2900 Retailers. The Federation also caters to the needs of the functions like marriages by booking special orders.

Standardised milk, buffalo milk and double toned milk are being sold through 218 Automatic Vending Machines (AVMs) and 165 FRPs to the city consumers. Milk products are also sold in certain AVM Units. Sachet milk sale is also done through AVMs.

MILK SELLING PRICE

The selling price of Toned / Standardised / Full Cream milk in sachets and in AVM units are as detailed below:

Sachet Milk

Milk at AVM

The Federation also co-ordinates the activities of the District Unions and provides technical expertise as and when required and also undertakes planning and erection, expansion and commissioning of Dairy Plants and Chilling Centres of the unions on turnkey basis. The Federation helps the unions in marketing their milk products like skim milk powder, ghee, butter and cheese in Tamil Nadu and in other States.

9. QUALITY CONTROL LABORATORY

A Quality Control Laboratory is functioning under the direct control of Commissioner for Milk Production and Dairy Development. With a view to ensure the supply of quality milk to the consumers, milk samples are being collected from sales points and shops and quality of samples are tested at the above said laboratory.

Total No. of Dairies registered under MMPO 1992

a. Co-operative Dairies - 16 Nos.

b. Private Dairies - 22 Nos.

d. Aavin samples tested in the lab - 114 Nos.

e. Private Dairy Samples tested - 85 Nos.

The Government of India formulated a scheme called ‘Assistance to Co-operative’ to rehabilitate the loss-making District Co-operative Milk unions and Federation to offset the losses and make them viable through a suitable rehabilitation plan. The plan envisages 50 percent grant from Government of India and 50 percent grant from State Government to wipe out cash loss in District Co-operative Milk Producers' Unions and make them viable with a suitable rehabilitation plan.

National Dairy Development Board after their preliminary assessment has selected two District Unions namely Erode and Villupuram. Out of the total grant of 13 crores both the Government of Tamil Nadu and Govt. of India have released their 50% equal share of 6.5 crores to Villupuram and Erode Union respectively. Both the Unions have utilised the amount to settle the milk cost dues to the producers and started earning profit from the very first year of the implementation.

During the current year, National Dairy Development Board had selected Dharmapuri Co-operative Milk Producers’ Union for availing assistance under the rehabilitation plan, and accordingly necessary proposal has been sent to National Dairy Development Board, Anand for onward transmission to Government of India.

A scheme of "Support to Training and Employment Programme" for women was introduced during 2002-2003 with the objective to identify women from self help groups, marginalized assetless rural women of SC / ST to enhance the socio – economic conditions of the rural women who are interested in the Dairy sector at the cost of Rs. 649.463 Lakhs. The area of operation of the scheme consists of the Salem, Erode, Coimbatore, Vellore, Villupuram, Dharmapuri and the Trichy District Co-operative Milk Producers Unions and at the end of the scheme 10,000 women will be trained on the principles of the co-operative law, artificial inseminations, first aid, farmers induction programme and dairy animal management, use of milk testing instruments, detection of adulteration in milk. In addition to this, infrastructure like SS milk cans, LN2 container for artificial insemination, furniture and Travis, 5 ltr SS pails has been given to all the members of these Women Dairy Co-operative Societies (WDCS) to bring the milk to the societies. Further these societies were provided with managerial subsidy, milk chilling cost, milk commission and margin money for purchase of milch animals. This scheme is implemented with 90% assistance from Government of India while the District Co-operative Milk producers' Unions on behalf of the beneficiaries meet the remaining 10%.

Till date Rs.159.942 Lakhs has been spent against Rs.132.480 Lakhs of grant released by Government of India as first installment for the first year. The balance grant of Rs. 452.036 Lakhs is yet to be released by the Government of India. So far, 131 Women Dairy Co-operative Societies (WDCS) have been formed with 9158 women beneficiaries as members against the target of formation of 145 WDCS and enrolment of 10,000 members till 2004-2005, and on an average 22592 ltrs of milk is being procured from these societies every day. Due to the implementation of this scheme, the beneficiaries are getting an average income of Rs.46 per day.

The Dairy Development Department of the State have requested the Government of India for releasing the entire balance grant of Rs. 452.036 lakhs and to extend the period of the project for another 2 years to complete all components of the scheme as per the target envisaged in the project.