How Innovation and Best Practices aid in Value Creation and Realization? – A Case Study of Akshayakalpa in Dairy Sector
Dairy farming forms a secondary source of income for around 70 million rural households, who together produce an estimated 139 million tonnes of milk annually. India is also one of the largest consumers of milk and milk products and as of 2014, the industry was estimated at $70 billion (The Hindu business, 2014). Cooperatives such as Amul play a key role in the milk industry, particularly by handling the production and marketing of milk. This has aided in higher value realization for the milk producing farmers. However, there are many questions about the quality of milk supplied to consumers. Chemical and pathogen free safe milk production and its movement in the dairy value chain has been a significant challenge and recognizing it the Government of India in 2003-04, launched a Scheme called Strengthening Infrastructure for Quality & Clean Milk Production (SIQ-CMP) that aims to improve quality of milk by implementing better milking procedures at the farmer level (Department of Animal Husbandry and Dairying, 2019). Despite its launch and imposition of strict food safety rules and regulations by the Food Safety and Standards Authority of India (FSSAI), milk is found to be the most highly adulterated food product in India (Neo, 2019). According to the results of the FSSAI’s National Milk Quality Survey, 2018, about 10% of the total samples analyzed had contaminants that make it unsafe for consumption and the main reasons for contamination were meagre quality of cattle feed, careless use of antibiotics and poor farm practices (FSSAI, 2018).
How Innovation and Best Practices aid in Value Creation and Realization? – A Case Study of Akshayakalpa in Dairy Sector
Project Team: | Gopal Naik and Prashant Chintapalli |
Sponsor: | IIM Bangalore |
Project Status: | Ongoing (Initiated in July 2019) |
Area: | Economics & Social Science |
Abstract: | Dairy farming forms a secondary source of income for around 70 million rural households, who together produce an estimated 139 million tonnes of milk annually. India is also one of the largest consumers of milk and milk products and as of 2014, the industry was estimated at $70 billion (The Hindu business, 2014). Cooperatives such as Amul play a key role in the milk industry, particularly by handling the production and marketing of milk. This has aided in higher value realization for the milk producing farmers. However, there are many questions about the quality of milk supplied to consumers. Chemical and pathogen free safe milk production and its movement in the dairy value chain has been a significant challenge and recognizing it the Government of India in 2003-04, launched a Scheme called Strengthening Infrastructure for Quality & Clean Milk Production (SIQ-CMP) that aims to improve quality of milk by implementing better milking procedures at the farmer level (Department of Animal Husbandry and Dairying, 2019). Despite its launch and imposition of strict food safety rules and regulations by the Food Safety and Standards Authority of India (FSSAI), milk is found to be the most highly adulterated food product in India (Neo, 2019). According to the results of the FSSAI’s National Milk Quality Survey, 2018, about 10% of the total samples analyzed had contaminants that make it unsafe for consumption and the main reasons for contamination were meagre quality of cattle feed, careless use of antibiotics and poor farm practices (FSSAI, 2018). |