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Milk production in Baramati doubles
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Saturday, 06 January, 2007, 08 : 00 AM [IST]
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gh a successful modern dairy business model.
A largescale private milk processing company, innovative funding from a public sector bank and enthusiastic dairy farmers have made it possible and the milk is going into large food brands from HLL to Britannia to Nestle. Funding has come from State Bank of India's contract farming and value chain financing, while Schreiber Dynamix Dairies Ltd has brought in the processing power and this has touched a wide base of one lakh milk producers in the milkshed area of seven districts of western Maharashtra.
"We are seeing a payout of Rs 300 crore to milk producers every year," Rajesh Lele, VP, milk procurement, Dynamix, said. To ensure consistent supply and quality of milk, Dynamix set up Sahyadri Agro Produce & Dairy Ltd for backward integration and building a network of bulk coolers. For most of the products milk has to be fresh which these bulk coolers provide to the company while the farmers get payments directly in their bank account immediately. The chain has gone to 101 villages covering 7,011milk producers and procuring 90,000 litres of milk per day at a premium of 40 paise per litre over the government rate.
Under contract farming, farmers in the region got Rs 4.5 crore loans from SBI for buying 1,700 cross-breed milch cows so that they can make the best of the opportunities. "Milk production in Baramati taluka has gone up from 95,000 litres to 1,75,000 litres and the primary reason was that we are buying all the milk and in fact we are falling short of supplies to meet our demand," Lele said. Sahyadri plans to set up 250 milk coolers by the end of this fiscal and in the next fiscal the state wants to double it to 500.
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