Dairy Business Jan, 21 2017

Brilliant future for Startups in Dairy Industry

National Cooperative Dairy Federation of India (NCDFI)is the apex organisation for the cooperative dairy sector. Its primary objective is to facilitate the working of dairy cooperatives through coordination, networking and advocacy

By Ekta Sharma
Brilliant future for Startups in Dairy Industry

National Cooperative Dairy Federation of India (NCDFI), based at Anand (Gujarat), is the apex organisation for the cooperative dairy sector. Its members include federal dairy cooperatives of states and union territories. Primary objective of NCDFI is to facilitate the working of dairy cooperatives through coordination, networking and advocacy. Important activities of NCDFI includes; coordinating sale of milk and milk products of its members to the Ministry of Defence and other para military organisations. We spoke to Chairman of NCDFI, Subhash Chandra Mandge on steps taken by NCDFI to boost business for milk cooperatives.

What steps NCDFI is taking to boost business for milk cooperatives?

NCDFI is doing a lot to boost businesses for milk cooperatives. It is coordinating on supply of milk and milk products to defence service through APO – Army Purchase Organisations from member cooperatives. It is also offering e-market platform to cooperative sellers and multiple buyers to get better deal for their products like Scheme Milk Powder, Butter, Ghee, Whole Milk Powder.

How is the Government body supporting franchise model in your industry?

As I am aware there is no government support for Franchise model now. However, earlier, Central government supported Mother Dairy (Vending booth at Delhi managed by Ex- servicemen).

Can you tell us about the issues related to supply chain management of Indian dairy sector with focus on both cooperative and private sector?

I think major issues are maintaining proper cold chain and effective delivery of the products.

According to you which are the Top 5 dairy brands of India?

In my opinion these are-

  • Gujarat Co-Operative Milk Marketing Federation – AMUL
  • Karnataka Milk Federation – NANDINI
  • Rajasthan Co-Operative Dairy Federation – SARAS
  • Bihar Milk Federation - SUDHA
  • Tamilnadu Co-operative Milk Producers' Federation Limited – Aavin

Five years down the line where do you see Indian dairy Industry.

With the progress policies of the Government I foresee bright future for the Industry.

Enlighten us about your coordination with Ministry of Defence and supplies to IRCTC.

In July 2009, Indian Railway Catering and Tourism Corporation (IRCTC) entered into an agreement with the NCDFI to procure milk and milk products of NCDFI member organisations. The agreement is extended periodically and valid till December 2016. During the year 2015-16, many member organisations have supplied milk and milk products to IRCTC base kitchens and pantry cars in Rajdhani/ Shatabadi Express trains under this arrangement. The Ministry of Defence (MoD) policy to procure milk and milk products through NCDFI is also renewed for a further period of three years and will be valid upto September 2018. Now as per new guidelines, only NCDFI member cooperatives can participate in these product supplies.

What are your views on demonetisation in terms of Dairy industry?

With the support from various agencies and banks, farmers are encouraged to open their account for on-line transfer of the milk bill. There is good progress on this front which is proving to be very helpful.

Any word for the start-ups who wish to invest in the dairy Industry?

Startups can easily approach respective Milk Federations to start a parlour. There is a brilliant future ahead in this industry.

Related: How are dairy brands milking big benefits from small formats

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