Dairy Hub AAAP Seminar Bangkok Nov 29, 2012 2012-11-29 Agenda - - PowerPoint PPT Presentation

Dairy Hub

AAAP Seminar Bangkok Nov 29, 2012

2012-11-29

Agenda

2012-11-29

►Background ►Dairy Hub defined & why Dairy Hubs ►Dairy Hubs step by step approach ►Dairy Hub economics ►Measured achievements in Bangladesh & next

steps

Dairy Hub in Bangladesh

► Tetra Pak customers have been struggling with access to

raw milk since the launch of packaged milk in 2005

− Inconsistent Quality − Fluctuations in supply

► PRAN took on the initiative to secure Raw Milk jointly

with FfDO convinced from the Success of pilot project with Small Holder Dairy Farmers (collaboration between PRAN, FfDO, &

CARE ..an NGO) in improving milking productivity

► PRAN decided to adopt the Pakistan Dairy Hub model

after evaluating of practices in Australia, New Zealand, USA, Israel, India, & Pakistan

Background

2012-11-29

Dairy Hub Defined

►This is a one-herd concept that encompasses small-

holder farmers from 20-30 villages within 20 – 25 kilometres radius

►Concentrated and focused services to small holders

to make dairy farming more profitable

►It aims to educate & empower the dairy farmers by

providing them training advice and veterinary services (services are provided free or at cost)

►All activities are recorded at farm level ►Managed and owned by a private processor

2012-11-29

Why Dairy Hubs?

►Fierce competition for the processors by small

dairies and city buyers

►Adulteration / Fabrication of milk ►Lack of frequent agricultural-services related to

modern dairy techniques

►Communication gap (Farmer and processor) ►Lack of skills in Modern Dairy Farming and Training

• f farmers

2012-11-29

These issues have some implications……….

►Low milk yield per animal ►Low milk density / square kilometre ►High collection cost per litre of milk ►Low quality of milk (TBC) ►Demand supply gap and no farmer loyalty ►Seasonality

2012-11-29

One herd concept

Dairy Hub – Solution for Sustainability

► Managed by dedicated dairy processor Long term relationship and loyalty building Producer / small farmer Village Milk collection point

15 to 25 KMS

Dairy Hub Dairy / Processor Quality control

2012-11-29

►Profitability

• Nutrition Management
• Management of transition and fresh cows close to

calving (step-up feeding)

• Feeding managent to optimize the true genetic

potential of the cows

• Calf management

Dairy Hub step-by-step approach

1

2012-11-29

►Profitability

• Nutrition Management Cows
• Register the individual cows’ production every

fortnight by an extension officer

• Create proper feeding practises around calving
• Create feed rations with best available fodder and

concetrates to optimize milk production

• Convince farmers to go to zero grazing
• Create proper additional feeding plans for farmers

who persists with grazing their cows

Dairy Hub step-by-step approach

1

2012-11-29

►Profitability

• Nutrition Management Young Stock
• Calf management to develop the calves into fast

growing young stock

• Feeding management to create a proper growth

and development of the digestion system

• Feeding management of the heifers to give

adequate growth for optimal calving age

• Register the weight gain of the young stock every

month

Dairy Hub step-by-step approach

1

2012-11-29

► Feed shall not be viewed as a cost only, it shall be viewed

as an “investment” as well

► It is not possible to get more production out of a cow than

the input

► The cost per kg feed is important to consider, but the

concentration of nutrients in each kg feed has to be considered as well

► Always calculate the feed cost per kg milk as the most

important measure in feeding management economy

► Current milk price is BDT 40 ≈ 50 US Cents, this price level

is at higher level in comparison to the other countries in the region

► Actual production cost will be assessed but with the current

milk price the dairy farmer will be profitable

Feeding management economy

2012-11-29

►Milk Quality

• Training on high quality milk production

(hygiene around milking, clean buckets, fast delivery, etc)

• Introduction of hygiene packages (detergents,

brushes, teat dip, milk cups, CMT, etc)

• Introduction of mechanized milking equipment
• n selected farms

Dairy Hub step-by-step approach

2

2012-11-29

Hygiene aspects to prevent bacteria development

2012-11-29

►Animal health

• Register all activities performed by vet service,

AI, etc on the farms.

• Herd/cow card (AI, vaccination, de-worming,

treatments, etc.)

Dairy Hub step-by-step approach

3

2012-11-29

Dairy Hub Economics:

Main Investment Items:

• Cooling tanks – 20 VCC & Main cooling facility
• Generators
• Motor Bikes
• Lab Equipment & Office Facilities i.e. computers
• Milk Tankers – Transport
• Electricity Installations

Total USD 945,000

2012-11-29

Dairy Hub Economics

Main Operational Cost Items:

• Staff & Personnel
• Repair & Maintenance
• Fuel – Electricity, Trucks & Motor Bikes
• Financial Depreciation (20%)
• Financial Interest (20%)

Total USD 585,000 per annum or 48,400 per month Sufficient throughput of daily milk through the dairy hub needs to be achieved to ensure sustainability

2012-11-29

Chatmohar, Pabna located in the northern part of Bangladesh, Distance from Dhaka: 235 km

VMCC

Dairy HUB Location - Bangladesh

2012-11-29

Key Success Factors

Dairy Hub Productivity

► Collection Cost competitive to Traditional Collections System ► 71% increase in collection

− 361,000 L (Sept 2011) 619,000 L (Sept 2012), (Peak 849,000 L, Feb)

► Milk Quality

− 35% reduction in Total Plate Count − 14% reduction in Somatic Cell Count

Farmers’ Profitability

► 37% Increase in Yield (5.8  7.9 L/Cow/ Day) ► 33% increase in income (1023 farmers)

− $100  $133/Farmers/Month

Win-Win for both PRAN & Dairy Farmers

2012-11-29

Month wise collection from start

2012-11-29

100 200 300 400 500 600 700 800 900

PRAN Dairy Hub, Chatmohor, Pabna. Month wise Milk Collection (Thousand Ltrs)

Qnty Thousand liters

Impacts and Benefits

►Farmers

• Access to the market
• Increased income
• Investment opportunities
• Job opportunities

►Processor

• Profitable Dairy Business
• Employment of high qualified staff

►Society

• Access to high quality and safe domestic Dairy

products

2012-11-29

►PRAN Planning 2013 until 2016

− Establish a Dairy Academy for training of staff and other

people interested to work in the Dairy sector

− Establish an additional 3 Dairy Hubs (a total of 5) − Optimize the total collection per HUB (each HUB has

initially a capacity of 30,000 L/day, but can easily expand to 50,000 L/day)

− Encourage farmers to invest and develop their Dairy

business

Accelerate Dairy Hub Ramp Up

2012-11-29

Traditional Farms

2012-11-29

New investments

2012-11-29

Village Milk Collection Center

2012-11-29

Local Transports

2012-11-29

Local Transports

2012-11-29

Chatmohar HUB

2012-11-29

Chatmohar HUB

2012-11-29

Milk delivered from the VMC

2012-11-29

Laboratory

2012-11-29

Milk Quality Tests

2012-11-29

Pouring into the pump cistern

2012-11-29

Pouring into the pump cistern

2012-11-29

Modern Transport Trucks

2012-11-29

High Quality and Safe Products

Questions & Thank You

2012-11-29