Dairy segment in Tamil Nadu presents opportunity for investments

Port Wings is bringing out series of articles on the major issues pertaining to the EXIM sector every week till the Tamil Nadu Government’s Global Investors Meet (GIM). This week, we analyse about the dairy segment in attracting investments.

Source: http://www.portwings.in/articlesinterviews/dairy-segment-in-tamil-nadu-presents-opportunity-for-investments/

Chennai:

Port Wings News Network:

The transition of the Indian milk industry from a situation of net import to that of surplus has been led by the efforts of National Dairy Development Board's Operation Flood programme under the aegis of the former Chairman of the board Dr. Kurien.

Launched in 1970, Operation Flood has led to the modernization of India's dairy sector and created a strong network for procurement processing and distribution of milk by the co-operative sector. Per capita availability of milk has increased from 132 gm per day in 1950 to over 220 gm per day in 1998. The main thrust of Operation Flood was to organize dairy cooperatives in the milkshed areas of the village, and to link them to the four Metro cities, which are the main markets for milk. The efforts undertaken by NDDB have not only led to enhanced production, improvement in methods of processing and development of a strong marketing network, but have also led to the emergence of dairying as an important source of employment and income generation in the rural areas.

STATUS OF TAMIL NADU IN DAIRY SEGMENT:

Operation Flood has been one of the world's largest dairy development programme and looking at the success achieved in India by adopting the co-operative route, a few other countries have also replicated the model of India's White Revolution.

And the revolution has largely helped the state like Tamil Nadu to understand its true potential in the segment.

According to information available, nearly 70 lakh litres of milk being handled daily by cooperatives linked to Tamil Nadu Co-operative Milk Producers' Federation Limited and the organised players in the private sector. And it has helped the state to emerge as the second largest dairy player in the country after Gujarat.

AMUL- THE SUCCESS STORY:

Amul, an Rs 30,000-crore company, is completely managed and controlled by farmers from village collection to administrative set up. Due to systematic efforts, they gained a global brand and it helps Gujarat to market in dairy products in many countries.

On the other hand, though the Tamil Nadu state ranks second in dairy segment, its flawed policies curtailed the growth and made the Tamil Nadu Co-operative Milk Producers' Federation Limited (AAVIN) just a state player in dairy segment.

TECHNOLOGY IS THE KEY:

In an agricultural fair organised jointly by the Coimbatore District Small Industries Association (Codissia) and Tamil Nadu Agricultural University at the Codissia Trade Fair Complex recently, Mr K Rathnam, Managing Director, Amul Dairy, was very categorical in emphasizing that technology is the key for improving the dairy sector in Tamil Nadu.

According to Mr Rathnam, the potential is huge, but what we need is well-channelised system besides a stress on the need for improvements in infrastructure and imbibing technological advancements at the farm (primary level) itself.

In his opinion, commercial dairy farms have not been successful in India as 90 per cent of the dairy farms are with the poor and marginal farmers. To break the jinx, you will need to set up a processing plant at the farm itself and brand the product.

OPPORTUNITY BEFORE TAMIL NADU GOVERNMENT:

According to experts, the dairy segment in Tamil Nadu throws huge opportunity for investment both in technology upgradation as well as in processing and value-addition. If the investments started pouring in, it could help the coastal state, which has been blessed with three major ports and a few aircargo-handling airports, to attain a new status in export of value-added milk-related products.

With the availability of milk from rural areas, Global Investors Meet could help the Tamil Nadu government to brand it as leading player in dairy segment from the region and attract investments for the dairy sector, added experts.