03-10-2012, 12:45 PM
The Dairy Industry in Andhra Pradesh
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INTRODUCTION
DAIRY INDUSTRY
The dairy industry in Andhra Pradesh has grown by leaps and bounds over the past few years to be currently worth Rs 5,000 crore. With around 200 small and large dairy farms coming up in the city in the past four years, the agro-based dairy business seems more lucrative than ever.
The rise in the demand for milk and milk products has catapulted the state to the third position in the country in terms of milk production with 1.12 crore tonnes produced in 2010-11. With dairy farms and processing plants of different sizes scattered across city suburbs such as Shadnagar, Patencheru, Madhapur and along the Nagarjuna Sagar and Siddipet Roads, industry experts peg the mushrooming of these farms and of those across the state to the burgeoning population and the retail revolution in the city.
Significantly, in a bid to protect their lands, many farm owners set up dairy farms on the city outskirts. Dairy farming consultant Dr Padmakar Rao says, "The availability of good quality fodder and access to water helped these farmers on the outskirts of the city to get a foothold in the business."
Experts pointed out that though the government had liberalised its policies on private entities making a foray into the dairy business in late 1991, it is only now that the private players have made substantial progress.
K Durga Prasad, chief operating officer, Heritage Foods India Ltd, says, "Earlier the market was monopolized by APDDCF and Visakha Dairy. Now, there are many private players such as Heritage, Tirumala and Creamline apart from others such as Masqati and Bilal.
Waking up to the big money in milk, Andhra Pradesh Dairy Development Cooperative Federation ( APDDFC) will start mapping every drop of milk procured and sold. The cooperative had a turnover of Rs 450 crore in the last fiscal and milk sales have registered a growth of 9.82% with 1,395 lakh litres sold in 2011-12, according to vice-chairman and managing director, Mohd Ali Rafath.
LOGISTICS:
Logistics is the management of the flow of resources, not only goods, between the point of origin and the point of destination in order to meet the requirements of customers or corporations. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and often security. Today the complexity of production logistics can be modeled, analyzed, visualized and optimized by plant simulation software, but is constantly changing. This can involve anything from consumer goods such as food, to IT materials, to aerospace and defense equipment.
Logistics is one of the main functions within a company. The main targets of logistics can be divided into performance related and cost related. They are high due date reliability, short delivery times, low inventory level and high capacity utilization. But when decisions need to be made, there is always a trade off between these targets.
LOGISICS IN THE DAIRY INDUSTRY
In the dairy industry logistics play a very important role for the procurement of milk or the distribution of milk. We are all known that milk has a highly perishable nature; If we will not supply the milk on time to the dairy plant it will be spoiled. For this reason in the dairy industry the proper management of logistics and supply chain management will accomplish the major role. Management of logistics system will decide the future growth the of the company and as well as it helps to achieve the effectiveness in the distribution system
The dairy industry is a supplier of fresh products on a daily basis, so the cost of transport is a major cost element. Apart from the cost of purchasing raw milk and distributing dairy products this sector which already suffers high transport costs through political intervention (environmental taxation, fuel prices) has to take account of increase in its logistics costs. The introduction of motorway charges for heavy goods vehicles has result in further increases of about 15 %. There are new EU-Regulations since April 2007 about reduced lead- and calmtimes of the Drivers. This brings further increases.
These changes will have a significant effect on the competitiveness of the sector which is facing increasing competition from abroad. Despite increasing logistics costs, the excess production of raw milk is exerting a downward pressure on market prices. Consequently it is vital to optimise the process costs of the logistics procedures whilst meeting customer expectations efficiently.
COMPANY PROFILE
AP Dairy Development Cooperative Federation Ltd manufactures milk and milk product under the popular brand name "VIJAYA" and sells the same not only in A.P but across the country. it was an enterprise of one million farmers. It started in the year 1960 as integrated milk product under the auspices of the Dairy Development Department for collection of surplus milk in rural areas at the door steps of the framers and to provide quality milk to the urban and semi urban consumers.
APDDCF offers a wide spectrum of milk products in India, under the brand name VIJAYA. It also manufactures products such as Sterilized Flavored Milk, indigenous unripened cheese, desiccated sweets, and Buttermilk. Milk & Dairy Products, Butter, Cheese, Milk, Ghee, Ice Creams, Chocolate, Curd, Lassie, Flavored Milk , UHT Milk, Fluid Milk, Milk Powder, Skimmed Milk Powder Non-Dairy Cream, Buttermilk, Condensed Milk, Cottage Cheese. Now it was also entering into the beverages industry that was manufacturing of mineral water under the name of vijaya water.