Tuesday, August 21, 2018

ENTREPRENEUR SPECIAL.... White Evolution


White Evolution

Growing demand for fresh and unadulterated milk has encouraged a bunch of young entrepreneurs to enter the premium milk business

Food writer Pawan Soni noticed a new trend recently. A second white revolution was slowly spreading across India.
About 48 years after a movement transformed India from a milk-deficient nation to the world’s largest milk producer, Soni is seeing a flurry of queries on how and where to get pure cow milk. His Facebook platform has seen conversations around quality and safety of milk growing manifold — all thanks to premium milk.

Farm to Table
Premium milk is not another fancy term, says Kanika Yadav, who started Whyte Farms in Alwar to cater to areas in Delhi-NCR. It is fresh, unadulterated and uncontaminated milk delivered within 8-12 hours of milking, explains the teacherturned-entrepreneur who has 200 cows. The first few months of her entrepreneurial venture were spent in educating people in her social circle about premium milk. “I had to explain the difference between the dairy milk we get in pouches and what I was planning. A dairy is just a milk aggregator. It collects milk from villages, processes and packs it before sending it to retailers. The process involves mixing several varieties and may take up to four days. This eliminated freshness and one has no chance of knowing the source of the milk.”
As the farm-to-table movement — the demand by consumers to know the source of the food they eat — spreads, several app-based premium milk delivery services have started delivering fresh and unadulterated milk within hours of milking. Keventers, Binsar Farms, O’Leche, Pride of Cows, Vrindawan Milk, Akshayakalpa, Astra Dairy Farms and Puremilk are among the specialised farms catering to this demand in various parts of the country.
While mothers have for years complained to the milkman about the poor quality they were being served, it was a 2012 report by the Food and Safety Standards Authority of India that laid the foundation for premium milk. A study of samples from across the country said 70% of milk was being adulterated or diluted. The adulterants included detergents and urea. Premium milk suppliers say this started a wide-spread farm-to-table movement in India. People even started asking the condition of the cows and what it was being fed.
Quality comes at a cost, at least in milk. A litre of premium milk costs 80-100 against 36-40 a litre from a dairy in Delhi.
The absence of good milk made Sohrab Sitaram of Keventers launch The Milk Co. He and his partners have a farm of 400 healthy cows of good breed. Milking and packing is done using the latest technology. Milk is bottled and delivered to the customer on the same day. Keventers’ app lets people place an order a couple of days in advance. “We ensure that the entire process — from sourcing to packaging — is entirely automated and without any human intervention.”
India’s milk production increased to 163.7 million tonnes in 2016-17, according to Agriculture Minister Radha Mohan Singh. Per capita availability of milk increased to 351 g in 2016-17. The country’s dairy market is estimated at $120 billion, of which the organised sector accounts for $70 billion. The size of the premium milk segment is not even 1% of the dairy market. But it has potential and is expected to be 5% of this market by 2020.
It is a niche product, says Sohrab, who sells a litre for 95. “In a short span of two months, we have a supply order of 1,000 litres a day. The demand in NCR is in lakhs of litres. But we our focus is on quality. We have to constantly monitor the cows and the process.”
While Delhi’s per capita availability of milk was 35 g a day in 2016-17, according to National Dairy Development Board, Karnataka’s was far higher at 291. This number is good news for Shashi Kumar of Akshayakalpa, an organic milk farm with 2,000 cows in Karnataka that supplies to Bengaluru. The city alone might have a demand of 51 lakh litres of milk a day, he says. For now, he is happy with his supply of 15,000 litres. But he expects the demand to touch 50,000 litres in next five years. “We ensure cows get quality food and are kept in hygienic conditions. We time the milking to the lactation periods so that we don’t have to use artificial means to increase production,” he adds.
Parag Milk, a prominent player in the milk industry, started its premium milk brand Pride of Cows in 2012. It now delivers 25,000 litres a day to Mumbai, Pune and Surat from its farm in Manchar, Maharashtra. It relies on a mechanised rotary parlour for hygienically procured fresh cow milk.
Akshayakalpa was set up in 2012 after Shashi returned from the US. Working in Wipro, he and his 13 colleagues helped fund the initial efforts. Their processing plant and fodder research facility is in Titpur, 150 km from Bengaluru. Shashi does not want to sell his product from premium grocery stores in Bengaluru, lest it dilutes their brand.

AND
Whyte Farms, which has 200 cows in Alwar, delivers within 8-12 hours of milking
Parag Milk’s brand Pride of Cows delivers 25,000 litres a day in Mumbai and Pune from its farm in Manchar, Maharashtra
Parag Milk’s brand Pride of Cows delivers 25,000 litres a day in Mumbai, Pune and Surat from its farm in Manchar, Maharashtra

MILK MATTERS
163.7 mt  India’s milk production in 2016-17
$120 bn   Estimated size of the country’s diary market
$70 bn     Size of the organised sector
 80-100 is cost of a litre of premium milk
 36-40    is cost of a litre from a dairy in Delhi
Premium milk segment is not even 1% of the dairy market
Premium milk segment likely to be 5% of the dairy market by 2020
Amin Ali
ETM12AUG18

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