CHAPTER-

PROFILE OF CO-OPERATIVE MILK PRODUCERS UNION

The Dairy Development Department was established in 1958 in Tamilnadu.

The administrative and statutory control over all the milk cooperatives in the State

was transferred to the Dairy Development Department on 1.8.1965. The

Commissioner for Milk Production and Dairy Development was made as the

functional Registrar under the Tamilnadu Cooperative Societies Act. With the

adoption of 'Anand pattern' in the State of Tamilnadu, Tamilnadu 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 Tamilnadu Dairy Development Corporation Ltd., were transferred to

the newly registered Tamilnadu Co-operative Milk Producers' Federation Limited,

popularly known as “Aavin”

In the wake of liberalization policy, private dairies have also entered into the

field of dairying. As per the directions of the Hon'ble Chief Minister of Tamilnadu

high priority has been given for improving the performance of milk Co-operatives

by adopting a systematic approach and proper strategy in Milk Co-operatives.

Significant achievement has been made by Milk Producers' Cooperative Societies,

Unions and Federation in the State of Tamilnadu.

The cattle population in India is approximately 15% of total cattle

population in the world. India stood no. 1 position in milk production. Tamilnadu

is one of the leading state in milk production. The milk production in Tamilnadu

per day is 145.88 Lakh litres.

2. OBJECTIVES OF THE DAIRY DEVELOPMENT DEPARTMENT

(1) Assure a remunerative price for the milk produced by the member of the Milk

Producers' Co-operative Societies through a stable, steady and well organized

market support.

(2) Distribution of quality milk and milk products to the consumers at 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 cooperatives, implementation of

Artificial Insemination Programme, supply of balanced cattle feed and inculcation

of farmers with the modern animal husbandry methods and practices.

All activities, which are essential for the up gradation of the milch animals

and improving their productivity in the long run, have been undertaken.

Provision of necessary infrastructure facilities for marketing milk and milk

products and supply of quality milk to the consumer has been made by way of

establishing new chilling centres, pasteurization plants and adoption of modern

processing system.

3. DEPARTMENTAL SET UP

The Commissioner for Milk Production and Dairy Development is the Head

of the Dairy Development Department. He is the functional registrar in respect of

Dairy Co-operatives in the State. He is also the Ex-officio Managing Director of

the Tamilnadu Cooperative Milk Producers' Federation Limited. i.e. Aavin.

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 cooperatives including the District

Cooperative Milk Producers' Unions and Federation under the relevant provisions

of the Tamilnadu Cooperative Societies Act, 1983 and Tamilnadu Cooperative

Societies Rules, 1988. 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

Cooperative Societies and a Deputy Registrar at the Headquarters besides 23

Deputy Registrars (Dairying) at the District level by way of conferring the powers

of the functional Registrar.

4. FUNCTIONS OF THE DAIRY DEVELOPMENT DEPARTMENT

The main functions of the Dairy Development Department include

Organisation of societies, registration of societies, supervision and control of

primary milk cooperatives, District Cooperative Milk Producers Unions and

Tamilnadu Cooperative Milk Producers Federation.

The Dairy Development Department exercises statutory function - like Inquiry,

Inspection, Surcharge and Super session, 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 Tamilnadu Cooperative Societies Act, 1983 & the Tamilnadu

Cooperative societies Rules, 1988 made there under.

The Commissioner for Milk Production and Dairy Development has been

designated as the State Registering Authority for the state of Tamilnadu, under the

provisions of Milk and Milk Products Order'92. 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'92. 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 authorized to carry out

supervision and periodic inspection of the dairies.

4.1. PRIMARY DAIRY COOPERATIVES MILK SOCIETIES

A minimum of 25 or more individuals competent to contract under section

11 of the Indian Contract Act of 1872, owning milch animals, can form a Primary

Dairy Cooperative 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

Cooperative milk society have to supply milk to the Society which will procure

milk on quality basis and they 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. Inductions of farmers

on modern animal husbandry practices are aimed at by upgrading the milch

animals and thereby improving their productivity in the long run for the benefit of

the members.

4.2. WOMEN MILK PRODUCERS’ COOPERATIVE SOCIETIES

In order to encourage the women members to contribute more to the dairy

sector, they are being called upon to organise women milk producers' cooperative

societies in their respective areas. There are 1210 women milk Producers’

cooperative societies functioning in Tamilnadu.

Primary Milk Cooperative Societies and District cooperative Milk Producers

Unions and Federation were previously administered by elected Boards. As the

terms of office of the members of elected Board already expired and as they were

continuing only on extended term of office as per section 33(10)(aa) of Tamilnadu

Cooperative Societies Act, 1983, the Government issued orders terminating the

extended term of office of members of Boards of these societies and the Special

Officers have been appointed under section 89(1) of Tamilnadu Cooperative

Societies Act, 1983. All the primary Milk Cooperative Societies are now

functioning under the Control of Special Officers since 26.5.2001. In respect of

District Cooperative Milk Producers Unions, the Collectors of respective Districts

have been appointed as Special Officers and for Tamilnadu Cooperative Milk

Producers Federation Ltd., the Managing Director of the Federation has been

appointed as Special Officer. Consequent on the bifurcation of the Dharmapuri

District and creation of new District namely Krishnagiri, the District Collector of

Krishnagiri has been appointed as Special Officer of Dharmapuri District

Cooperative Milk Producers’ Unions Ltd.,

5. FUNCTIONS OF DISTRICT COOPERATIVE MILK PRODUCERS

UNIONS

There are 17 District Cooperative Milk Producers' Unions functioning in the

State of Tamilnadu covering 30 Districts. There are 15 Dairies in District Co-

operative Milk Producers' Unions with an installed processing capacity of 19.42

llpd. There are 36 Chilling Centres (Functional) in District Co-operative Milk

Producers' Unions with installed chilling capacities of 13.55 llpd.

(1) Establishment of chilling centres

(2) Formation of new milk routes to collect milk produced by the members of the

societies.

(3) Collection of milk from societies, process and pack in modern dairy plants by

maintaining quality standards.

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

(5) Fixation of procurement and selling price of Milk

(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 Cooperative Societies.

(10) Providing milk cans, Milk 'O' testers and LN2 containers.

(11) Salem, Erode, Madurai and Dharmapuri Unions are the Feeder Balancing

Dairies. Surplus milk in the District Unions, after meeting their local sales is

diverted to the nearest Feeder Balancing Dairies for conversion into milk products,

such as Skim Milk Powder, Butter and Ghee.

(12) The three Cattle Feed Plants at Madhavaram, Erode and Kappalur are run by

the Kancheepuram - Tiruvallur Union, Erode Union, Madurai Union respectively.

The production capacity of these cattle feed plants is 100 MT per day each. 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 including the Corporation of

Chennai.

6. FUNCTIONS OF FEDERATION (TCMPF)

The Tamilnadu Co-operative Milk Producers' Federation Limited is an apex

body of 17 District Cooperative Milk Producers' Unions. The Federation has four

dairy plants in Chennai, one at Ambattur with a capacity of 4.00 lakh litres per day,

another at Madhavaram with a capacity of 2.00 lakh litres per day and the third

dairy at Sholinganallur with a capacity of 4.00 lakh litres per day. 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 product dairy at Ambattur is

engaged in the manufacture of milk products such as Yogurt, ice cream, Khova,

Kulab jamoon, Buttermilk, Curd and Mysore pa.

7. MILK PROCUREMENT BY DCMPUs:

Most of the rural people especially women make their livelihood by rearing

milch animals and by supplying milk to the Co-operatives. Keeping this in view

and to improve the rural economy and to enhance the personal income of the stake

holders in rural area, Government of Tamilnadu directed the Tamilnadu Co-

operative Milk Producers’ Federation and District Co-operative Milk Producers’

Union to raise the procurement price of the cow's milk from Rs.15.00 to Rs.17. per

litre and that of the buffalo’s milk from Rs.20.00 to Rs.24.00 with effect from 2011

and the milk cost as per the revised procurement price is being disbursed to the

Milk producers.

PROFILE OF THE COMPANY

The salem District Co-operative Milk Producers’ union ltd., was started in July 1978 by the government of Tamilnadu. The company started its production on 7th oct.1979. the salem unit is collecting milk from surrounding areas. It has 997 Societies for collecting milk i.e.,

SANKAGIRI 149 Socieities

METTUR 97 Socieities

VAZHAPADI 90 Socieities

ATTUR 190 Socieities

RASIPURAM 135 Socieities

NAMAKKAL 118 Socieities

P.VELUR 102 Socieities

Employees

The numbers of employees in the Salem District Co-operative milk producers

union are more than 250 working in the different department of the milk union.

Its estimated daily purchase of milk is 2, 80,000 lts., but actually it is collecting

only 2,72,228 lts. Of milk daily. The company started one Training Institute in the

year 1985 for workers and also students. The salem unit not only produces milk,

but also produces by – products of milk, i.e.,

BUTTER GHEE MANGOJUICE FLAVOURED MILK BUTTER MILK MILK POWDER

The ghee from Salem Diary is very famous and the brand is well known

Nationwide. The company is planning to start its franchise retail outlets at Salem

Districts.

India stands number one in the world milk production with 84 Million Tons.

Tamil Nadu is one of the major contributors. The Salem District Co-operative Milk

producers Union Ltd is a major member of Tamil Nadu Milk Producers Federation

Ltd., Chennai. This dairy was commissioned in September 1983 with the help of

NDDB as Feeder Balancing Dairy. Its main is to cater the needs of the Metro

Dairies local demand and to convert the surplus milk into Butter, Ghee and Skim

Milk Powder. Under this, there are three Chilling Centres located at Attur,

Namakkal and Paramathi Velur. The established capacity of the Dairy plant is

1,00,000 LPD which was expanded to handle 3,00,000 LPD. The procurement and

processing responsibility rests upon the Union and the production scheduling and

Marketing of the products are performed by the Federation.

The Dairy complex is situated in an area of about 46 acres of land bound by

Sithaur and Dhalavaipatti Villages in the initial stage, the Union had Procured only

a quantity of 33,000 litres of milk per day with 227 primary Milk producers Co-

operative Societies. Gradually the Union developed its activities and reached a

daily average of 38,2000 liter per day.

The Aseptic Packaging Station and Skim Milk Powder Plants is the unique

feature of this Dairy. The products being prepared here are:

(i) Processed milk (Real Milk, High Fat Milk, Toned Milk and Double

Toned Milk) (ii) Butter (iii) Ghee (iv) Skim Milk Powder (v) UHT

Treated Milk (AAVIN-Homogenised and Standardized, Maavin

Flavoured Milk, Amul Taaza, and Amul Gold).

RECEPTION OF MILK BY TANKERS

The incoming tankers are taken to the electronic weighbridge and the gross

weight is recorded. The seals are checked, opened and well agitated by means of a

long handled plunger. Then the samples are taken, tested for temperature and

MBRT, based on which tankers are unloaded. The milk is taken inside through a

plate chiller to storage tank. After unloading the milk, the empty tanker is again

weighted to arrive at the actual net weight of milk.

The unique feature of Salem Dairy is that, it has a separate reception lab,

which deals with maintenance and control of quality of Milk and other processing

factors.

RAW MILK RECEPTION DOCK (RMRD)

The milk is received in the plant twice daily- morning and evening. The

morning collection begins at 8.15 am and ends at 11.30 pm collecting on an

average of 1, 50,000 litres. The evening collection is on average of 1, 30,000 litres.

The dairy covers 26 routes from where milk arrives in cans. The dairy has 3

chilling centers located at Attur, Namakkal and Paramathi Velur from where milk

is brought in insulated road milk tankers.

MILK PROCUREMENT (AVERAGE)

Salem : 1,49,301 Liters.

Chilling centers

Attur : 1,20,080 Liters.

Namakkal : 41,029 Liters.

P.Vellur : 49,976 Liters.

Bulk milk cooler : 21,805 Liters.

RECEPTION MILK IN CANS

The milk cans are received society wise and evaluations done

organolepticaly. If doubtful, COB test is done. The good milk is tipped and

weighed with the help of an electronic balance. The weight is taken society wise

and recorded accordingly. Representative samples are taken from each society lot.

The milk is pumped from the dump tank to the plate chiller and is stored in raw

milk storage tanks (6 in number).

PROCESSING SECTION

The milk (chilled) stored in the raw milk storage tank after reception is taken

for pasteurization and then stored in silos provided. Of the total milk procured

nearly 65 % under go separation to cream and skim milk. The skim milk is used for

standardisation and also used for milk powder preperation. The cream obtained is

used for butter and ghee preparation and also for standardisation.

PRE PACK SECTION

The processed milk is packed in sachets for marketing. For this a Pre pack

section is maintained at a different building in Salem Dairy.

BUTTER SECTION

The pasteurized creams at 10∘C from the cream storage tanks are taken for

butter preparation, with help of the butter churn or the continuous butter-making

machine (CBM). The butter obtained is either used for conversion into ghee or for

sales in 500g packs or 20kg Bulk packs. The butter sold is of two types cooking

butter (unsalted butter) and table butter (salted butter).

Cleaning

Cleaning of the butter churn is CIP, which is done after each batch.

The CBM is cleaned manually. This is done once in two days, causing no

accumulation of cream. The cleaning is done after dismantling and washing with

hot water, detergent solution, raw water, hot water, and chlorine solution.

BUTTER PACKING MACHINE

It has capacity of about 40 packets per min (800 Kg/H). The packing

machine is of complicated mechanism working on a motor and a vacuum pump.

The butter to be packed is fed manually into the hopper, which has twin-screw

conveyors into a mould on a rotating head, which helps in the continuous supply of

butter. The vacuum pump helps in parchment paper movement. 500g blocks are

wrapped in parchment paper. This is packed manually in cartons.

GHEE SECTION

Butter meant for ghee manufacture is first taken into the melting vats of

1000 litre capacity each. Here a hot water tank is maintained at the side of the vat

where raw waters gets mixed with steam and the generated hot water is circulated

through coils provided inside the vat. Here the butter is melted to a temperature of

80∘C/hr and gets converted into butter oil. Agitator is provided which is stopped

when colour appears. The melted butter forms three layers with denatured curd

particles at the top, fat at the middle layer and buttermilk at the bottom. After

allowing it to stand for same time buttermilk is drained out and the melted fat is

pumped into the ghee kettle. The process is called as personification method.

POWDER PLANT

There is a well maintained Powder Plant at Salem Dairy for the production

of skim milk powder from pasteurized skim milk out of 3.8 Lakh milk procured,

weekly 80,000 Litre of skim milk is used for conversion into skim milk powder,

remaining 20,000 Litre is sent to Erode dairy for powder Production. The Plant has

been established for the Production of 10 Tonnes Powder/day. But the running

capacity is 8 Tonnes per day.

The Powder Plant consists of two sections. Evaporation section and drying

section. The main purpose of doing so is to reduce the load on the drier, the skim

milk gets concentrated to 40 %. When it comes out of the Evaporation Plant.

ASEPTIC PACKAGING STATION

Salem dairy is a unique one, which is having an Ultra High Temperature

treatment plant which started functioning from January 1989. The UHT treated

milk helps to increase the shelf life of milk to 120 days at room temperature thus

eliminating the refrigeration cost.

The main products prepared and packed here are AAVIN – (Toned Milk and

Standardized Milk) in 1000ml and 200ml packs, Flavored milk – cardamom,

Chocolate, Pista, Strawberry in 200ml packs and MAAVIN (Mango drink-200ml).

Custom packing for other products companies dike AMUL, HPMC, Heinz India

LTD, etc are undertaken here. Amul manufactures Toned Milk (3.0% Fat/ 8.5%

SNF) and standardized (4.5% Fat/ 8.5% SNF) under the brand names Amul Taaza

and Amul Gold respectively.

Flavoured Milk

The various flavoured milk prepared here are,

(i) Chocolate Flavoured Milk

(ii) Cardamom Flavoured Milk

(iii) Strawberry Flavoured Milk

(iv) Pista Flavoured Milk

These are packed in 200ml tetra brik packs.

MAAVIN – Fruit Juice

Mango drink is prepared and marked under the brand name MAAVIN for

which a separate pasteurization unit is maintained in the APS because of its fibrous

nature.

QUALITY CONTROL LAB

Quality control is one of the major operations in dairy industry and it starts right

room the reception and continues till the dispatch of the product. There are two

laboratories, which control the quality aspect of milk and milk products, one for

chemical quality analysis and another for microbial analysis.

A reception lab is located in Raw Milk Reception Doc, which assess the

quality of incoming raw milk.

TRAINING PROGRAMMES

Intensive training programmes are carried out by the union to educate the

farmers. These include Night meetings, Film shows, visits to the dairy are conducted

at village level to explain about clean milk production, latest technology in milk

production, etc.

Some important points are

Steps are taken for upliftment of the women producers.

Farmers Induction Programme – Daily, a group of 20 to 25 farmers are brought

to the union and educated about the activities performed there.

Training is given to secretaries and village Level Workers (VLW) for doing

AI and First Aid Services.

INPUT

Under animal health care 12 veterinary units are working regularly. 6

veterinary emergency units are working round the clock for attending cases at the

door step of producer.

Some Inputs are

Infertility camps are being conducted.

Distribution of Balanced Cattle Feed to the producers.

Distribution of Fodder Seeds and Fodder Slips.

TECHNOLOGY MISSION OF P&I

Cooperative Development Cell

Support Training Employment Programme (STEP)

FMD Control

Calf Rearing Scheme

Training Centre

Fodder Development

Silvipasture Scheme

Some of these Schemes do not exist, but had a great impact on the procurement.