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Category: Mehsana

Dudhsagar Dairy Mahesana

Mehsana

Dudhsagar Dairy Mahesana

Chairman’s Speech

It gives me a great pleasure to present before you the 49th Annual Report and Accounts for the financial year ended on 31st March, 2009. The financial year gone by has been a very good year for our Union. Our turnover crossed Rs.1750 crores recording 18% growth over the previous financial year. However, there is a need for all of us to focus on growth momentum in milk procurement as well. At an average milk price of Rs.300.40 per kg fat, milk procurement during the year was 66.51 crores kg; compared to previous year figures, the growth rate was 6.4%. It is surely a matter of great pride to have achieved a high business growth. But we cannot be complacent. Not remaining satisfied as India’s Largest Co-operative Dairy, we need to evolve as India’s Best Co-operative Dairy achieving quantum
leaps in milk production / productivity / processing & manufacturing capabilities and above all the quality improvements.
As you know we have been pursuing the merger of Mehsana Regional Telibiya Utpatak Sahakari Sangh Ltd. (MRTS) with our Union for the last 1½ years. It is a matter of great pleasure for all of us and an important feat in the history of the Union that the process has since been completed and MRTS is now an integral part of our Union. The Registrar, Co-operative Societies, Gujarat state has formally given approval for the merger whereby all the assets of the MRTS including 47 acres of land now stands transferred to the ownership of our Union. With this merger, there is a real value enhancement to the assets of the Union, increasing our scope and potential, in furtherance of our objectives. We remain grateful to the officials of N.D.D.B, Government of Gjuarat and MRTS for all assistance and help extended, facilitating this merger. We will be able to usefully deploy the Machinery, Storage Tanks, Godowns etc. for a 1000 MT Cattle Feed Plant that we are planning to establish there. Thereby, we will, not only be able to meet the entire feed requirements of our cattle population, but also with the help of GCMMF, be able to sell the surplus to the Associated Dairies and thereafter to all the milk producers in the State of Gujarat.

Of late we have developed a new value-added product viz. SAGAR HYPRODAN and the production has also already been commenced for the last three months. It is very encouraging to note that from the very start itself, we have been receiving very good response from the milk producers. In times to come, let us venture for a differentiated product mix of cattle feeds to cater to the specific needs of animals right from it’s birth through calving, pregnancy, lactation and other stages of its’ life.

The current year 2009-10 happens to be our 50th year of successful existence. Commemorating the event in the interest of Milk Producers, we have decided to celebrate the year as Golden Jubilee Year of our Union. Keeping the milk producers interest in mind, many new initiatives are thought for implementation during the year. Besides the proposal for a 1000 MT Cattle Feed Pant, there is also a plan to establish a 100 MT independent, latest technology Spray Drier Powder Plant.

In the year 2005 when Dudhmansagar Dairy became functional, the daily sales was around 3 lacs kg which within one year reached 4.5 lacs kg; thereafter in the subsequent year, the sales was 5.5 lacs kg per day and now, by the end of current year we would have geared up for an increased production and sales of around 10 lacs kg per day. We have been able to capture a vast market beyond Gujarat in Delhi & NCR areas capable of generating more revenues and consequential benefits. Delhi has a liquid milk market of about 50 lacs kg per day out of which our share is over 20% or 10 lac kgs. This is a matter of great pride for all of us. Major capital spending is required to expand production capacities. As margin money your Board of Directors has recommended an issue of Shares. I am sure that all of you will extend full support to approve the expansion plans and the issue of shares towards meeting our ongoing capital expenditure plans..

As part of our Golden Jubilee Year celebrations, few programs are initiated and many more are in the process of implementation. We have taken insurance policies to cover for Medical, Life and Personal Accident risks of all the 4733 employees of our Societies. ID cards are issued to these employees and the process of issue of Uniforms is in progress. A museum meant to familiarize visitors and members of the Union with our value system is also thought for. Besides, a documentary depicting all important events throughout, since the beginning of our co-operative movement will be made. Programs to improve upon the participation of women in societies, schemes to encourage / award best societies / secretaries of societies are also in consideration. It is also under review as to how Pension & Saving schemes could be introduced for our milk producers.

Schemes are initiated to achieve an uniform color code for all our society buildings. Installation of Bulk Milk Coolers (BMCs) and ISO certifications of Societies are important steps towards quality improvement and let us aim in achieving this twin objective for all our societies.

We must be proud that even in prolonged recession we could sustain and grow. There are enough evidences to suggest that the village economy performed better in comparison to urban areas. I thank all of you for the continued support in achieving this feat. We are aware that dairying is not an easy task. Intrinsically milk is a very delicate and an essential food item that is produced twice a day but calls for immediate processing / disposal both times during the day. If not appropriately and promptly handled with improvement in the entire processes, the business will be subjected to losses.

Great efforts are required if one has to sustain in a highly competitive environment. Market price of milk & milk products is not within our control and are market driven.

Similarly prices of inputs are also market driven and not within our controls. In such a market scenario, increasing the milk yield per animal, thus reducing the cost per unit of milk is what we can and must aim at. This is, perhaps, the only way that can work as an Aladdin’s magic lamp for us. Let us hope that all our milk producers aim to achieve this -by developing cross-breed calves and bringing them up healthy -using scientific methods viz. artificial insemination, balanced cattle feed, calving in each cycle etc. In this Golden Jubilee year many programs are in store to impart awareness among our milk producers.

We all know how fast developments are taking place. We need to position ourselves appropriately in tune with the time. Do you think that we need to wait another 50 years to achieve what we have achieved during the past 50 years? Nah, so let us join hands to achieve in a decade what we achieved in past 5 decades. This is absolutely not impossible; bare facts corroborate this. Yield per animal in Israel is more than 32 ltrs milk per day and even in Haryana the average milk yield per animal is 7.7 ltrs per day. These facts point to tremendous scope for improving our own milk yield which as of now is as low an average of 3.5 ltrs milk per day for all kinds of breeds. Let us develop a strong desire to excel and to adopt latest technological innovations; undoubtedly, there will be improvements in the milk-yield of our animals.

Financial Results (Rupees in Crores)
Year 2007-08 Year 2008-09
Sales, Profit, Depreciation :
Sales 1482 1750
% Increase over previous year 17% 18%
Profit  before Depreciation 16 16
Depreciation 12 12
Net Profit 3.55 3.72
Segment Sales
Dairy Business 1323 1544
% Increase over previous year 17% 17%
Cattle Feed business 159 176
% Increase over previous year 21% 23%
After providing for Reserves as per the provisions of the Act and Bye laws, your Board of Directors has recommended a dividend of 10% to the Shareholders.
Co-operative Societies
Our milk producers are our strength and we are duty bound in ensuring that they get the best services. Herein below is given a brief account of the services being provided by us.
Animal Husbandry
In animal husbandry, we are much ahead in our practices. Nevertheless, it is a matter of concern to learn from our veterinarians that almost 58% of the illness in animals is caused by insufficient / balanced cattle feed. When we have arrangement in ensuring that our producers get cattle feeds in enough quantities, at their door-step & at reasonable price, there is no reason why our animals are deprived of feeds in sufficient quantities. Because when animals fall sick, our producers will be financially at loss, firstly from loss of milk and then due to costs involved in treating their animals. During the year 5,93,449 animals were treated by our veterinary doctors; the average cost of visit per case works out to be Rs.110. Another important observation during the treatment of animals is that high milk yielding animals are more prone to Mastitis and Sub Clinical Mastitis. Due to this, there is going to be permanent reduction in the milk yield of animals. Cleanliness of udder and the surroundings of animals are of prime importance here. A minimal preventive cost will many times be rewarding from the incremental increase in milk yield. We should use Saaf Kits in ensuring quality through cleanliness, shouldn’t we?
Artificial Insemination
We have been disseminating Progressive Animal Husbandry where the norm is to have improved, cross-bred animals of high milk yield (and not to possess more animals of lesser yield); higher economic benefits will result from such practices. Your Union has increased AH facilities for timely insemination to produce improved and healthy calves. During the year 508 AI Ceentres were functioning and altogether 8,41,860 artificial inseminations were performed. It is my request to all milk producers to adopt only proven Artificial Insemination (AI) techniques replacing traditional or indigenous methods.

With the assistance of DURDA, your Union has been carrying out training programs on artificial insemination. During the year 49 persons were given the training on the same. If trained employees are available in our villages, it will greatly facilitate and ensure timely & proper insemination whenever the same is required.

NECO Project
As per a survey carried out by the Union, in the year 2005, 1,42,888 animals, almost 19% of the total animal population, have Not Even Conceived Once (NECO Animals). On treating such animals in 242 societies, it was observed that 14704 of the animals treated conceived recording a 70% success in the treatment carried out. In the current year, 242 more societies are being taken up under this program.
Program to Create Genetically Improved Bulls
The Union and NDDB have entered into an agreement for implementing a joint, five-year Project aimed at creating genetically improved ‘Mehsani breed’ bulls. NDDB will be providing financial and technical support for the implementation of this Project. As of now 47 villages have been selected for implementation under this Project.
Vaccination Programs
From time to time the Union has been carrying out vaccination programs with the assistance of the Government and BAIF. As a result, we could, to a great extent, avoid spreading of contagious deceases in animals. During the year 6,02,141 animals were vaccinated for FMD, 16,425 Theileriosis, 2,03,906 for HS and ²,179 for anti rabies. Also, during the year mass de-worming doses were given to 7,42,319 animals. For different programs we have received Government assistance of Rs.89 Lacs.
Insurance Schemes
The participation in the insurance schemes of our members and their family was very satisfactory as evident from the figures given below:
Particulars Year 2007-08 Year 2008-09
Janashree Ordinary Janashree Ordinary
No of Societies 1452 1451 1431 1430
Members joined 206957 179594 216597 189674
No of claims 1236 492 1139 429
Claim amount – in lacs rupees 344.77 127.25 362.30 110.50
Education Assistance – in lacs rupees 218.02 - 249.05 -
The participation for Cattle Insurance does not, however, point to any encouraging initiative by our milk producers. This will only lead to loss in income to our milk producers besides reduced milk production and procurement. If with a marginal cost animals are insured, unexpected losses can be mitigated. During the year the Union has given Rs.57,85,271/-towards cattle insurance premium subsidy, in insuring 60074 animals of our milk producers.
Cattle Feed Production & Supply
Cattle Feed constitutes to be one of the most important factors in milk production and in the maintenance and care of animals. Therefore ensuring availability of cattle feed to our milk producers – timely and at the most reasonable price – shall be one of our main endeavors. With a rise of about 19% in raw material prices, during the year, we were left with no other alternatives than to increase the price of Sagardan and Hyprodan. Still we could manage supplying high quality balanced feed at a very reasonable price in comparison to the quality and price of other feeds available in the market. During the year we could supply 2,56,225 MT of cattle feed utilizing the production capacities of both the cattle feed plants at 95%. However, it is important to note that in 250 Societies, Sagardan is neither known as an essential cattle feed nor given to the animals. We must ensure that even these Societies use cattle feed.
Society Building & Color schemes
It is a matter of great pride not only for our co-operative institution but the entire village to have one’s own Society Building. These Society Buildings will greatly facilitate milk procurement, sale of cattle feed and other co-operative activities. Union has evolved Society Building schemes and the assistance is available according to society categories. Presently 703 societies have their own buildings. Necessary actions are initiated to construct buildings in 83 more societies. It is my earnest request to all the societies which have no buildings to take necessary steps in this direction and your Union will only be happy to extend all possible assistance in this regard. During the year 68 societies have taken the benefit of the Society Building Color Scheme.
Quality & ISO Certification
We are committed to the production and supply of safe and quality milk & milk products to the best satisfaction of the customer requirements. Our main dairy plant at Mehsana, Chilling Centres at Vihar, Kadi and Harij have already got certifications for Food Safety (ISO: 22000) and Quality (ISO: 9001). Our main dairy plant is also certified for Environment Preservation practices – ISO: 14001. Besides, both our Cattle Feed Plants (CFP Ubkhal & CFP Boriavi) and 85 milk societies have also been added to the list of Centres / Societies with ISO: 9001 certifications.
During the current financial year 2009-10 we have plans to take ISO: 22000 and ISO: 9001 certifications for Dudhmansagar Dairy – Manesar and for our Chilling Centres at Kheralu and Hansapur. A hundred more milk societies will also be included for ISO: 9001 certification. Looking ahead, let us include 100 societies every year for ISO certifications.
In 119 societies, bulk coolers of different capacities are installed. It is a matter of great pleasure to note that in view of the benefits of Bulk Coolers, many more societies have come forward for installation of Bulk Milk Coolers in their area. During the current year 75 more societies will be covered for Bulk Coolers. There is, however, some delay, as is our experience, in obtaining assistance from the Government. During the year we have been able to get Government assistance of Rs.38 Lacs for installation of Bulk Coolers under the Clean Milk Production (CMP) scheme.
Goal Setting
We are all familiar with and capable of formulating our own mission and goal setting in our endeavor to grow and excel. Let us, therefore, in furtherance of our objective, aim at becoming the best among all societies or the best among all Unions, as the case may be. Let us achieve this by improving our quality standards throughout the value chain from the producers of milk to the ultimate consumers of our products.
Vote of thanks
Our achievements would not have been possible without the co-operation from each one and all of you who actively took part in this endeavor. On behalf of the Board of Directors, I express my sincere thanks to all who extended their support to the success of our overall operations.

We are also thankful to the Board of Directors of Gujarat Co-operative Milk Marketing Federation Limited (GCMMF) for their continued support.

I also express my sincere thanks to the Government of Gujarat, the Government of India, the National Dairy Development Board (NDDB), Banks and all Institutions who extended their support during the financial year.

Dudhsagar Research Association has always been supportive in carrying out various activities for the benefit of our milk producers. I express my thanks to the Board of Directors of DURDA.

I also express my heartiest thanks to the Management, Departmental Heads, Officers, Staff and Workers of the Union and also all members of the societies for their valuable co-operation and the support.

Jay Co-operation….
On behalf of the Board of Directors
Date: 18-05-2009, Vipul M Chaudhary
Place: Mehsana (Chairman)