Capitalisation of Livestock Programme Experiences India The Importance of the Informal Milk Sector in India A K Joseph; N Raghunathan; Satish Kulkarni ILRI workshop on safety of animal source foods with an emphasis on the informal sectors, New Delhi, India, 8 February 2011 (A Programme of SDC - IC)

Traditional Milk Channel* Consists of channels served by producers or vendors supplying unprocessed, unbranded milk in loose form or filled in plastic bottles or pouches, in flexible quantities & prices * Defined for the purpose of the AR

AR on Traditional Milk Market – Macro picture Milk Flow in India – 2005-06 ( Production 97.1 mmt ) 33.91 mmt 929 llpd 34.92 % 49.00 mmt 1343 llpd, 50.5% / 77.55% 4.72 mmt 129 llpd , 4.86 % / 7.47% 9.47 mmt 259.5 llpd, 9.75 %/ 15 % Source : Derived from Dairy India 2007, NDDB Annual Report, DAH & D Rs. 1.6 bn. per day Inspite of its enormous size, spread, reach & impact potential, TMS remains sadly neglected in policies, investments & programmes CALPI

Low Production Areas Not Covered by the Organized Sector Source: Derived from Dairy India 2007, NDDB Annual Report 2005-06, DAHD & F TMS impacts the livelihoods of an estimated 46 min producer HHs, 110 min consumer HHs & millions of vendor HHs in India CALPI Parameter Total Covered By OMS Not covered % not covered 1. Districts 604 338 266 44 2. Villages 638,365 188,365 450,000 70 3. Milk Producing House holds (million) 66.94 20.33 46.61 70 4. Milk marketed (Min. mt 2005-06) 63.19 14.19 49.00 77 5. Consumer house holds (million) 142 32 110

aaaaaaaaaa 84.62% 80.65% 77.55% 36.41 mmt 43.97 mmt 49.00 mmt Milk marketed by TMS At the present rate of displacement, TMS would take 6-7 decades to reduce to 10 % of milk marketed CALPI Source : Derived from Dairy India, DAH & D

Stimulating Growth in Areas Left Over by OMS No/Low Market No /Low Infrastructure No Institution Low density of prodn. Low price Low Liv. service Poor quality Slow growth Characteristics of left over areas

Stimulating Growth in low productive Areas thru TMS Link to Market Minimum Infrastructure Flexible Institution Reasonable price Coord Liv. service Support for quality Formal sector comes in early Training

Traditional Milk Sector - Tapping Synergies ‘ Vendor’ & ‘traditional sector’ are highly maligned TMS is likely to stay for many decades to come Is too vast & potential to be neglected Law alone cannot ensure conformity to food stds -ve impact of low price, income & quality on poor Purpose of AR is not promotion of ‘Vendors’, but improve market access, income, quality, productivity & accelerated & inclusive growth Tap synergies to accelerate production & attract competition for the benefit of all CALPI

CALPI Capitalisation of Livestock Programme Experiences India THANKS

aaaaaaaaaa Rate of Annual Growth in Milk Production in India At the present rate of displacement, TMS would take more than 6-7 decades to reduce to 10 % of production

Producers Share in Consumer Rupee

Conformation of Fat and SNF levels in samples from different players Producer samples consistently conformed to total solids figures, whereas vendors’ samples found to be below the standards Institutional consumer samples had the poorest conformation rate

Stimulating Milk Production & Marketing in India Milk Flow + - Compiled Dairy India 1997, x - Tech. of Indian Milk Products, # - Extrapolated Year Milk Producti-on Market-able Surplus Total Coop & Govt. Total Private Total Orgnised Total traditional 1995-96(mmt) + % of marketd 66.2 - 43.03 100 3.97 9.23 2.65 6.15 6.62 15.38 36.41 84.62 Daily lkgpd 1814 1179 109 72.55 181 998 2001-02(mmt) x % of marketd 84.4 - 54.52 100 5.91 10.84 4.64 8.51 10.55 19.35 43.97 80.65 Daily lkgpd 2312 1494 162 127 289 1205 2005-06(mmt) # % of marketd 97.1 - 63.19 - 9.47 14.98 4.72 7.47 14.19 22.45 49.00 77.55 Daily lkgpd 2660 1731 259 129 389 1343