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WELCOMEWELCOMETOTO

PRESENTATION ONPRESENTATION ON

“MARKET POTENTIAL OF HIGH-TECH MILKING “MARKET POTENTIAL OF HIGH-TECH MILKING PARLOUR SYSTEM/MILKING SYSTEM IN SELECTED PARLOUR SYSTEM/MILKING SYSTEM IN SELECTED

DISTRICTS OF GUJARAT”DISTRICTS OF GUJARAT”

PRESENTED BY-PRESENTED BY- Mr. Sunil Kumar AgrawalMr. Sunil Kumar Agrawal Reg. No.(04-705-2010)Reg. No.(04-705-2010)

ASPEE AGRIBUSINESS MANAGEMENT INSTITUTEASPEE AGRIBUSINESS MANAGEMENT INSTITUTE NAVSARI AGRICULTURAL UNIVERSITYNAVSARI AGRICULTURAL UNIVERSITY NAVSARI-396450NAVSARI-396450

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Some Facts About Dairy Industry-Some Facts About Dairy Industry-

• India is the top milk producing nation in the world contributing about 15% to the global milk pool.

• According to the 2010 livestock census, there are 166 million indigenous cattle,33 million crossbred cattle and 105 million buffaloes in India.

• The decade wise rate of growth in milk production in India 3.6% is higher than the world average of 1.5% .

• Punjab has the highest productivity of crossbred cows and buffaloes and Hariana is the top ranking state in terms of the milk productivity of indigenous animals.

• About 35% of milk produced in India is processed.• There are over 1000 dairy plants in cooperative, private and public sectors,

registered with the GOI and state governments.• The market size of processed products in the organized and unorganized sector

is estimated at Rs. 255 billion and Rs, 906 billion, respectively.• India has negligible share in world dairy exports (0.2%),.

Source-livestock census 2010

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Company Profile

• Established - 1996 at Mumbai, Maharashtra.• Company is an ISO 9001:2000 certified company.• Manufacturing plant at Kalol and Halol industrial area.Vision –“To become market leader in dairy food processing engineering in India through continuous development of latest technology and constant R&D activities”

Mission-“To become a well recognized organization in dairy and food processing sector. To empower farmers to manage their business with the use of latest technology and sustainability. To become a benchmark in terms of quality and after sales services.

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Growth StoryGrowth Story

Starting of the company with Starting of the company with manufacturing milk cans and manufacturing milk cans and measuring equipments(1996)measuring equipments(1996)

Manufacturing of bulk milk coolerManufacturing of bulk milk cooler (2007)(2007)

Manufacturing of milking machine (2009)

Manufacturing of milking parlour and pilot milk processing unit (2011)

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ProductProduct RangeRangeSr.No. Product category Products

1. Milk CansStainless steel milk cans capacity vary

from 5 lt. to 50 ltrs.

2. Milk measuring equipments

Steel Can Plungers

Stainless Steel Milk Measuring Set

Stainless Steel Funnel

Stainless Steel Can Plungers

3. Milking utensils

Stainless Steel Milk Pails

Stainless Steel Milk Buckets

Stainless Steel Milk Collection Tray

Stainless Steel Floor Tiles

Bulk Milk Coolers

Cow Drinking Bowl

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Cont…

Sr. No. Product category Products

4. Milking machineSingle bucket model

Double bucket model

5.Milking parlour system 4x4 model

5x5 model

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Some Of Company’s Esteemed ClientsSome Of Company’s Esteemed Clients

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The ProjectThe Project

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Objectives Of The Study

1. To study the socio-economic status of progressive dairy farmers of the districts of Mehsana, Sabarkantha and Banaskantha.

2. To know about the competitors exists in the region 3. To know the constraints of dairy farmers to accept milking

macine/parlour system.4. To calculate market potential for high-tech milking machine

system and parlour system. 5. To know the awareness and acceptance for biogas plant

among the dairy farmers.6. To know about the source of financial assistance for dairy

farmers.

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Research MethodologyLocation of the Survey: - Mehsana, Sabarkantha and Banaskantha districts of north Gujarat.

Sources of Information:-Sources of Primary data:- Progressive diary farmersSecondary sources:- Literature, Internet, company report, Cooperative societies.Instrument of data collection :- Pretested Questionnaire for farmersSample Unit:- Progressive dairy farmers of Mehsana, Sabarkantha and Banaskantha districts.

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Sampling Method:

• Non-probabilistic purposive sampling method was used for selection of farmers as only those farmer were selected who are having daily milk production more than 70 liters or more than 10 dairy animals.

• Sample design-Sample design-Sr .no. Name of Dist. No of farmers Selected

1Sabarkantha

(Idar,Himmatnagar,Malpur,Bayad,Dhansura Talukas were selected)

100

2 Banaskantha

(Deese, Deodar,Palanpur, Vadgam,Dhanera Talukas were selected)

100

3Mehsana

(Kadi,Kheralu,Satlasana,Bechraji,Vadnagar Talukas were selected)

100

Total 300

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Data Analysis TechniqueData Analysis Technique:-

• Data was analyzed quantitatively using simple statistical analysis tools such as averages and percentages.

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DATA PROCESSING AND ANALYSIS

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Education Level Of Farmer:

Education level

64

134

4519

38

020406080

100120140160

No.

Of f

arm

ers

15

Land Holdings- (Hac.)

54

114

89

43

0

20

40

60

80

100

120

No. Of farmers

Up to 1hac

1-2 hac 2-4 hac Above 4hac

land holding

16

Age Group Involve In Dairy Business:

37

81

133

49

0

2040

6080

100

120140

No. Of farmers

18-25Yr 26-35Yr 36-45Yr >45Yr

Age group

17

Income Of Farmers From Dairy Business:

92116

5834

020406080

100120

No. of farmer

25000-45000

46000-65000

66000-85000

>85000

Income in Rs.per month

Farmers income

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Dairy As Source Of Income For Dairy As Source Of Income For Farmers-Farmers-

Dairy as source of income

Primary76%

Secondary24%

PrimarySecondory

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No. Of Dairy AnimalsNo. Of Dairy Animals:

95

120

53

32

0

20

40

60

80

100

120

No. of farmers

10 to 15 16-25 26-40 >40

No. of animals

Dairy Animals No.

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Mehsana District Status-Mehsana District Status-

Source-WAPCOS (Mehsana district agriculture plan2011)Source-WAPCOS (Mehsana district agriculture plan2011) cont….cont….

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WAPCOS (Mehsana district agriculture plan)

Source- WAPCOS (Mehsana district agriculture plan 2011)Source- WAPCOS (Mehsana district agriculture plan 2011)

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Sabarkantha District Status-Sabarkantha District Status-

Source: WAPCOS Sabarkantha district agriculture plan2011) cont……

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Source: WAPCOS (Sabarkantha district agriculture plan2011)Source: WAPCOS (Sabarkantha district agriculture plan2011)

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Banaskantha District Status-Banaskantha District Status-

Source: WAPCOS (Banaskantha district agriculture plan2o11)Source: WAPCOS (Banaskantha district agriculture plan2o11) Cont…….Cont…….

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Source: WAPCOS (Banaskantha district agriculture plan2011)Source: WAPCOS (Banaskantha district agriculture plan2011)

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years In Dairy Farming-

67

136

59

38

0

20

40

60

80

100

120

140

No. of farmers

0-5Yr 6-10Yr 11-15Yr >15 Yrs

No. of yrs.

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Source Of Information About New Source Of Information About New Technology In Dairy-Technology In Dairy-

Knowledge about new technology in dairy faming

Dairy cooperative

43%

Fair19%

Friends/relatives21%

Company representativ

e8%

Other9%

Dairy cooperative

Fair

Friends/relatives

CompanyrepresentativeOther

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Method Used For Milking-Method Used For Milking- (N=300)(N=300)

Method of milking

Hand

Milking

89%

Machine

Milking

11%Hand milking

Machine milking

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Which Company’s Milking Machine Which Company’s Milking Machine You Use? (N=33)You Use? (N=33)

Milking machine use

Delaval91%

Other 9%

DelavalOther

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Competitors Of Company

• DeLaval• Samrudhi Industries ,Ahmedabad• Mahesh Eng. Works, Ahmedabad• National innovation foundation, Ahmedabad• Impression engineers, Vadodara• Shree kamdhenu electronics private ltd.,Anand

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Satisfaction With Your Existing Satisfaction With Your Existing Milking Machine? (N=33)Milking Machine? (N=33)

20

13

0

0

5

10

15

20

No .of

farmers

Fully Moderate Unsatisfied

Level of satisfaction

Satisfaction with existing machine

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Current Awareness And Acceptance in Current Awareness And Acceptance in Future For Milking Machine (N=300)Future For Milking Machine (N=300)

Awareness and acceptance level

82 88 7964 67 58

020406080

100

AwarenessAcceptance

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Parameter Will Preferred For Purchasing Parameter Will Preferred For Purchasing Milking Machine System (N=189)Milking Machine System (N=189)

Parameters for purchasing milking machine

Brand

Name

13%

Price

30%Quality

57%

Brand name

Price

Quality

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Reason Behind Not Using Milking Machine Reason Behind Not Using Milking Machine System in future (N=60 Aware but not ready to System in future (N=60 Aware but not ready to accept)accept)

32

107

11

0

5

10

15

20

25

30

35

No.of farmers

High cost Requireskilled labor

Problem inmaintenance

Social value

Reason behind not acceptance

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Awareness For Company-Awareness For Company-

Awareness for company

6%

94%

YES

NO

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Present Awareness And Acceptance For High-Present Awareness And Acceptance For High-tech Milking Parlour System? (N=300)tech Milking Parlour System? (N=300)

Awareness and acceptance level

14

21 19

611

7

05

10152025

AwarenessAcceptance

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Potential In Sabarkantha District For High-tech Milking Potential In Sabarkantha District For High-tech Milking Machine system-Machine system-

Total no. of progressive dairy farmers = 948 % Acceptance level= 64%Actual no. of farmers (A)= 606Avg. no. of animals/ farmer (B) =19Total no. of animals (C) = AXB = 11514

Potential In volume terms (One for each 10 animals recommend (D) = C/10 = 1151 machines1151 machines

In terms of value (40000 Rs. For each for single bucket) In In terms of value (40000 Rs. For each for single bucket) In crores=crores=

DX 40000=1151X40000 = DX 40000=1151X40000 = 4.6 Cr.4.6 Cr.For double bucket model = 1151X 55000For double bucket model = 1151X 55000 = 6.33 Cr, = 6.33 Cr,

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Potential In Sabarkantha District For High-tech Potential In Sabarkantha District For High-tech Milking Parlour System-Milking Parlour System-

Total no. of progressive dairy farmers  = 948% Acceptance=6%Actual no. of dairy farmers (A) = 57Avg. no. of animals (B) =19Total no. of animals C= AXB = 1083Potential In volume terms (D) =1083/8= 135 parlours 135 parlours

(As per the model 4x4)(As per the model 4x4)Potential In volume terms (D) =1083/10= 108 parlours 108 parlours

(As per the model 5x5) =(As per the model 5x5) =

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Potential In Banaskantha District For High-tech Milking Potential In Banaskantha District For High-tech Milking Machine System-Machine System-

Total no. of progressive dairy farmers = 836% Acceptance level= 67%Actual no. of farmers (A)= 560Avg. no. of animals/ farmer (B) = 21Total no. of animals (C) = AXB = 11760Potential In volume terms (One for each 10 animals recommend

(D) = C/10 = 1176 machines 1176 machinesIn terms of value (40000 Rs. For each) In crores=In terms of value (40000 Rs. For each) In crores= DX 40000=1176X40000 = DX 40000=1176X40000 = 4.70 Cr. 4.70 Cr. For double bucket model = 1176X 55000For double bucket model = 1176X 55000 = 6.46 Cr, = 6.46 Cr,

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Potential In Banaskantha District For High-tech milking Potential In Banaskantha District For High-tech milking Parlour System-Parlour System-

Total no. of progressive dairy farmers = 836% Acceptance level= 11%Actual no. of farmers (A)= 92Avg. no. of animals/ farmer (B) = 21Total no. of animal (C) = AXB = 92x21=1932Potential In volume terms (As per the model 4x4) D = C/8 = 1932/8 = 241 parlour241 parlourPotential In volume terms (As per the model 5x5) D = 1932/10 = 193 Parlours193 Parlours

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Potential In Mehsana District For High-tech Milking Potential In Mehsana District For High-tech Milking Machine System-Machine System-

Total no. of progressive dairy farmers = 1023% Acceptance level = 58%Actual no. of farmers (A) = 593Avg. no. of animals/ farmer (B) = 16Total no. of animals (C) = AXB = 593x16 = 9488Potential In volume terms (One for each 10 animals recommend

(D) = C/10 = 9488/10 = 949 machines949 machinesIn terms of value (40000 Rs. For each) In croresIn terms of value (40000 Rs. For each) In crores = DX 40000 = 949X40000 = = DX 40000 = 949X40000 = 3.79 Cr.3.79 Cr.For double bucket model = 949 x 55000For double bucket model = 949 x 55000 =5.21 Cr. =5.21 Cr.

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Potential In Mehsana District For High-tech Milking Potential In Mehsana District For High-tech Milking Parlour System-Parlour System-

Total no. of progressive dairy farmers = 1023% Acceptance level= 7%Actual no. of farmers (A) = 72Avg. no. of animals/ farmer (B) = 16Total no. of animal (C) = AXB = 72x16 =1152 Potential In volume terms (One for each 8 animals recommend)

D = C/8 = 1152/8 = 144 parlours 144 parloursPotential In volume terms (As per the model 5x5) D = 1152/10 = 115 parloursparlours

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Loan For Dairy Purpose-Loan For Dairy Purpose-

Farmers having loan for dairy purpose

No76%,228

Yes24%,72

1 Yes

2 No

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Source Of credit-Source Of credit-

10.75%

11.00%

11.25%

10.50%

10.00%

10.20%

10.40%

10.60%

10.80%

11.00%

11.20%

11.40%

Interest rates

HDFC ICICI DENA SBI

Interest rates of different banks

Interest Rate Of Banks For Interest Rate Of Banks For Dairy-Dairy-

Source for credit

Others

15%, 11

Equipment

Supplier

6%, 4

Govt. Banks

26%, 19

Private bank

7%, 5

Dairy

Cooperative

46%, 33

Dairy cooperative

Private bank

Govt. Banks

Equipment

SupplierOthers

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Awareness For Biogas Plant-Awareness For Biogas Plant-

Farmers aware about biogas plant

No, 81, 27%

Yes, 219,

73%

Yes

No

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Farmers Having Biogas Farmers Having Biogas plant- (N=219)plant- (N=219)

Farmers having biogas plant

Yes , 33, 15%

No, 186, 85%

Yes No

Farmers interest for biogas plant in future

Yes 34%,102

No66%,198

1 Yes 2 No

Farmers Interest To Establish Farmers Interest To Establish Bio-gas Plant In Future- Bio-gas Plant In Future-

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Farmers Having Biogas Farmers Having Biogas plant- (N=219)plant- (N=219)

Farmers having biogas plant

Yes , 33, 15%

No, 186, 85%

Yes No

Farmers interest for biogas plant in future

Yes 34%,102

No66%,198

1 Yes 2 No

Farmers Interest To Establish Farmers Interest To Establish Bio-gas Plant In Future- Bio-gas Plant In Future-

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FINDINGS(On the basis of farmers analysis)

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• 68% farmers are small and medium land holder involved in dairy farming.

• 39% farmers are earning 46000-65000 per month from dairy farming.

• 76% farmers’ dairy is their primary business. • 89% of farmer of the region is doing hand milking at present.• The main competitor for company in the region is DeLaval.• Awareness for high-tech milking machine is 82%,88% and 79%

in district of Sabarkantha, Banaskantha and Mehsana respectively.• Acceptance for high-tech milking machine is 64%,67% and 58%

in district of Sabarkantha, Banaskantha and Mehsana respectively.• For 43% source of information about new technology for farmer

is dairy cooperative.

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• During purchase of milking machine or other technology in dairy business 57% of them prefer quality.

• For milking machine potential in the districts of Sabarkantha,Banaskantha and Mehsana is 4.6Cr., 4.7Cr.,3.79 Cr. respectively for single bucket or for double bucket it is 6.33 Cr.,9.90 Cr. And 9.65 Cr. Respectively.

• Only 18% Progressive dairy farmers are aware about the high-tech milking Parlour concept.

• Only 8% acceptance for high-tech milking Parlour system among the progressive dairy farmers..

• For high-tech milking parlour system potential in Sabarkantha,Banaskantha and Mehsana is 135,241,144 no. of unit.

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• Only 6% farmers are aware in this region about the Krishna Industries.

• 73% progressive farmers are aware about the Biogas plant.• 34% acceptance for Biogas plant among the progressive dairy

farmers.• The main source of credit for farmers is dairy cooperative

because of its easy process and less time consuming process.• The interest rates of banks vary from 10.50% to 11.25% for

credit on dairy.

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Suggestions-Suggestions-• Company should use full advertisement because there is very

less awareness among the farmers about the company and its products.

• The company should use field demonstration practice for milking machine and milking parlour system.

• Company should establish good dealer network in the region to cover the whole area.

• Company should make the contacts with veterinary doctors of dairy cooperatives of the districts because he can play major role in influencing farmers.

• Company should make the contract with dairy cooperatives because farmers prefer to purchase milking machine through dairy cooperative.

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• Company’s representative should make direct contact to farmers for Biogas plant because there is good awareness among the farmer and also good acceptance so the company just need to capture the market.

• Company should help the farmers to take the advantage of subsidy on milking machine/palour system.

• Company should help the farmer in taking credit from banks.

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• As the company has world class quality of product so the company has good future opportunities from the studied region but to achieve this market company should highly focus on awareness and advertisement of the company’s product as well as the company brand.

• Dairy farmer of the area also having good economic status so the acceptance for high-tech milking machine system and milking parlour system can also increased by increasing promotional activities like field demonstration for them.

• Delaval’s products are popular among the farmer so the company has to compete with them.

• Company also has good opportunities for its new project on biogas plant because most of the progressive dairy farmers are already aware about it .

• Initial capital investment for high-tech milking parlour system is high so the farmers have less acceptance for this, if they get any kind of subsidy from govt. or any financial support from the company this acceptance level can be increased.

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Bibliography-Book- Dairy cattle principles, practices, problems, profits by

Donaldthe.bath and Frank N. dickingson.Magazine- India today- Dairy specialWebsites-• http://www.dahd.nic.in• http://frontlineconnect.com• www.nddb.com• www.google.com• www.dairyequiments.com

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