Ots 24 > 24029 > Finalrep

1. INTRODUCTION Goats are small ruminants much valuable for the poor villagers. As goats thrive on leaves, grasses and other such low utility items, and produce a large variety of products like milk, meat, leather, dung (as fertilizer) and Pashmina (or wool) they are very economical. Besides this, the high kidding rate (about twice in 14 months) makes it a valuable asset and acts as a liquid asset for the poor, ready for disposal when in need of money. The total number of goats in India is around 115 million, with Rajasthan having 15 million goats, second to Bihar which is having 17 million goats.(source: www.Indiastat.com) There are around 20 breeds of goats found in India out of which 20% are distinct and 80 % are nondescript. While some of these breeds are good for meat, some are better for milk production. There are many products that can be produced from goat milk like cheese, soap, khoa etc. But these products are not popular among Indian consumers. So, this project is an attempt to estimate the demand of goat milk products among the Indian consumers (besides other estimations) and also to find out the possibility of a goat milk paneer unit in Dholpur (Rajasthan) Area of study: The area of study is the villages of Baseri block in Dholpur district of Rajasthan. If we look at the topography of the district we would find that the area has mainly three types of land. One, the relatively fertile, densely populated plain land. Second, the rocky terrains of Arravalli hills, having forest area (called Daang). And lastly, the ravines of the Chambal River.The Baseri block has forest area of 15000 acres, cultivable wasteland and grazing Land of 35000 acres and uncultivable wasteland of 1 lakh acres. (Source: Block Development Office). Moreover, the area has got short trees in the forest, which can be conveniently eaten by goats.Overall the area is suitable for rearing small ruminants like goat. Though meat is mainly considered as its main product and milk as by product, we have tried to estimate what additional value goat milk can exclusively give to the villagers. Based on this we have the following objectives. 2. OBJECTIVES 1. To estimate the production of goat milk in the villages. 1

2. To find out the products that can be commercially produced from goat milk. 3. To estimate the demand of goat milk. 4. To estimate the demand of goat milk products. 5. To find out a viable option of using the goat milk. Further, in order to explore the possibility for procurement of goat milk it was decided to study an additional objective i.e. 6. To study the existing procurement channel of buffalo milk. 3. METHODOLOGY For objective 1 i.e. to estimate the surplus of goat milk a sample of 43 households was surveyed. The respondents were those who are either rearing goats or have already reared goats. They were administered a questionnaire in Hindi as most of the villagers knew how to read and write Hindi. The households were sampled on the basis of topography, whereby 24 households were surveyed from the hilly region of the Arravallis and 19 were taken from the ravines of the Chambal River. For objective 2 i.e. to find out the products that can be commercially produced from goat milk a structured interview was conducted with the scientists of Central Institute for Research on Goats (CIRG) and also some literature were referred on related subject. For objective 3 i.e. to estimate the demand of goat milk dairies at Dholpur, Agra and Ajmer were visited to see if they are preparing any product exclusively from goat milk. For the purpose two dairies in Agra, one in Ajmer and two in Dholpur were visited. For estimating the demand of goat milk products (objective 4) the hotels and restaurants were surveyed in Jaipur, Agra and Delhi. This was done to find out if they prepare any special dish or use goat milk product in any form. For this purpose a questionnaire was introduced to the chefs of different hotels and restaurants and also the chefs and dieticians were interviewed to get idea about the prospect of use of goat milk product. During the study it was found that paneer can be prepared from pure goat milk. So, a viability of a goat milk paneer unit was done by doing the marketing, technical and financial analysis. 2

(to fulfil objective 5).The product for viability study was chosen on the basis of the criteria like non-existence of typical flavour in the product, use of pure goat milk as raw material and presence of technical support. Since, paneer is free from the typical flavour, pure goat milk will be used to prepare it and technical assistance can be provided from CIRG; this product unit was chosen for analysis. For objective 6 i.e. to analyze the procurement channel of buffalo milk, structured interview was conducted with the concerned person of Bharatpur Sahkarita Dugdh Utpadak Limited (a unit of RCDF) and the procurement manager of Akash Ganga Food Products Pvt. Ltd., Ajmer ( the manufacturers of Super Chef brand of cheese). 4. SCOPE OF STUDY The survey for estimation of goat milk was limited to the villages of Baseri block. Also, the estimation of milk in the sample was on the basis of respondents' estimation. The hotels, restaurants and hospitals surveyed were limited to Agra, Jaipur and Delhi. Besides this the refusal from some of the important respondents, like the chefs of the restaurants /hotels who had served oriental dishes and could have given more information, limits the study. 5. OBSERVATIONS AND INFERENCES 5.1 Findings from Villages The estimation of milk production is based on the sample survey done in 13 villages, covering 43 households (24 in the hilly area of Arravalli and 19 in the ravines of the River Chambal).The sample data comprises of 908 goats and 321 bucks. As per the sample, the production of milk per goat per day range from 0 to 0.8 litres during the summer season, with an average yield of 0.170 litres per day. Conversely during the winter, it ranges from 0 to as high as 2 litre and average being 0.550 litres per day.

3

Usually, the goats are not milked during the summer (March to July). However if some goats are milked they are milked only once (in the morning). The kid is left with the goat when the later goes for grazing. The kid consumes milk whole day and as a result no milk is left to be milked in the evening. Conversely, during winter, when there is abundance of green fodder available, the kids are not left with the goat and they are stall fed. This time they milk twice a day. Most of the goat milk produced is either consumed at home or sold to the local dudhiya by mixing with buffalo milk. If the dudhiya takes only goat milk he pays Rs 2 or 3 less than the price of buffalo milk, which is around Rs 6 to 8 per litre. These admixed buffalo milk is sold to the consumer as pure buffalo milk. During winter when there is surplus of milk, goat milk is mixed with buffalo milk, changed to ghee and either consumed at home or sold in the market. However, how much milk is consumed and how much is sold to local dudhiya is not known. If we try to find out the marketable surplus of goat milk we can say that whatever is produced is the marketable surplus because the goat milk is not preferred for consumption. In villages, which are near to Sarmathura, the goat milk produced is sold to dudhiyas by mixing with buffalo milk , while in some distant villages (like Bhompura, Shankarpura, Hallupura, Amarpura), where dudhiyas do not go for collecting milk it is changed to ghee by mixing with buffalo milk. 5.2 Prospective Use of Goat Milk Very limited information is available on processing of goat milk and milk products under Indian conditions (Agnihotri and Prasad, 1992). In India goat milk is either consumed or mixed with cow and buffalo milk and then sold. Besides this some of the rearers do not milk the goat and leave for the kids to consume for they believe that it would produce healthy kids that can be sold at good price. Therefore the processing of milk into different products has got limited attention. However, goat milk has been successfully used to produce various product preparations. 5.2.1 Ghee Traditionally ghee is prepared in household by fermenting milk into curd, churning into butter followed by heat clarification. In industry ghee is prepared by batch process directly from cream. 4

Goat milk can be used either singly or after blending with cow and buffalo milk. Goat milk is blended with buffalo milk to overcome the problem of poor cream separation, soft body, typical odour and flavour in ghee. Ghee made from pure goat milk has a typical flavour and a greasy and weak texture. Therefore, blending goat milk with buffalo milk will yield desirable quality of ghee from goat milk.(Arora and Singh,1986) The shelf life of goat milk ghee at 30o C is similar to that of buffalo milk ghee. It is roughly 4 months for ghee prepared by traditional method and 10 months by creamery butter method. (Arora and Singh,1986) 5.2.2 Khoa Traditionally khoa is prepared by simmering milk with vigorous scraping in a shallow iron pan over direct fire until semi-solid mass is formed. Generally, buffalo/cow milk is used to make khoa. But to get desirable quality of goat milk khoa, goat milk should be mixed with equal quantity of buffalo milk, with fat level of the mixture to be standardized to 5% (9.11% SNF) (Jailkhani and De, 1979). However goat milk khoa has a yellow colour, moist surface, slightly hard body and a distinct salty taste. It has a shelf life of 6-8 days at 37 ± 1 o C and 30 days at 5 ± 1o C. Pedas prepared from such khoa by mixing khoa and sugar in the ratio 3:1 has neither salty taste nor the typical flavour. The average yield of khoa is one–sixth of milk. 5.2.3 Chenna Chenna is used in preparation of sweets, popularly 'Rosgolla'. Bhargava and Dubey(1982) observed that chenna prepared by coagulating goat milk (3-4% fat content) with 0.5% lactic acid solution at pH 5.4 and 80o C and cooking chenna balls in 55% sugar solution for 25 minutes yielded good quality 'Rosgolla'. The goat flavour is not a limiting factor in the production of chenna. The yield of chenna from goat milk is 15.8% and shelf-life is less than 1 day at 37 ± 1o C and 5 days at 5 ± 1o C (Jhalkani and De,1979)

5

5.2.4 Cheese Goat milk produces a soft curd and hence is highly suitable for the manufacture of a large variety of soft cheese. However, the prospects of those varieties are not promising because of non-popularity of such products among Indian consumer. Feta Cheese: Pure goat milk is used to make Feta cheese which is mainly used in Greek and Arabic cuisine. It is rarely used in India. It is mostly consumed in the Middle East countries and some European countries. Paneer: Paneer is an Indian semi-hard cheese. A good quality paneer, free from typical odour and flavour can be prepared by curdling milk at 90 o C with 0.1% citric acid. Paneer yield is around 13% and the rest is whey, which is mostly wasted. Cheddar Cheese: The most popular variety in the English-speaking world was developed in the village of Cheddar in Somerset shire, England in the 16th century. It has around 45-34% moisture. Buffalo milk not considered suitable for the manufacture of Cheddar cheese. The cheese made from buffalo milk is very hard, rubbery and flat flavoured even after a prolonged ripening period. However, by addition of 10-25% goat milk to buffalo milk used in preparing cheddar cheese will help to improve the sensory attributes of buffalo milk cheddar cheese. (Singh et al, 1992) Mozzarella Cheese: Mozzarella cheese is unripened semi-soft cheese having moisture content 55-45%.It is mainly used in pizzas. Mozzarella cheese made from pure goat milk has excessive melting and fat leakage, which is not desirable for pizza. It can be prepared from goat milk and buffalo milk by admixing in the ratio 1:1. Gouda Cheese: Gouda Cheese made from buffalo milk containing 5, 10, 15 % goat milk had higher flavour, body and texture scores.

6

5.2.5 Soap Soaps can also be prepared using fresh, pasteurized goat milk. No other animal-based products are used. In addition to goat milk, olive oil is used to moisturize, coconut oil for lather, and palm oil for a longer-lasting bar. (http://wildheavensfarm.theshoppe.com) Besides the above products goat milk can also be used to prepare curd and yogurt, which are a common day-to-day cuisine for many Indians. 5.3 Demand of goat milk product In Section 5.2 we had seen the various products that can be produced from goat milk. Out of all these products, feta cheese is the one which is mostly consumed in European Union.Greeks are the highest consumers of cheese within the European Union with an average consumption of 23 kg per person per year. The French with an annual per capita cheese consumption of 22 kg, are just one kilo behind the Greeks. Of all the cheese consumed by the Greeks 60% of it is soft cheese, and 40% of all cheese consumed is feta (http://capra.iespana.es/capra/ingles/Internacional/grecia/greece.htm).

Based

on

this

background it was assumed that goat milk cheese might be the only goat milk product used in India. Also, since in general individuals have got apprehension with the goat milk product it may not be consumed in the households. But the institutions like hotels/restaurants (who prepare continental dishes) usually have customers visiting from Middle East, European and North American countries, who might be consuming goat milk products (most probably cheese). Hence, a sample of hotels and restaurants in Agra and Jaipur were surveyed in which the Chefs were interviewed. The main purpose of the interview was to find out whether goat milk is consumed in any form in India. In this sample survey we tried to find out who are the major players, the different type of cheese and paneer demanded in this region. 5.3.1 Demand of Goat Milk Cheese. It was found out in the survey that goat milk cheese is rarely consumed in India. Talking with the chefs, it was found that Feta cheese is used in Greek and Arabian cuisine. And since it has to be imported it is very costly. Hence, we can rarely find any consumers of goat cheese.

7

5.3.2 Demand of Processed Cheese It was found that 10 hotels/restaurants were using Amul brand of processed cheese while 2 of them were using Super Chef brand. It was stated by the chefs using Amul, that they use it because it is demanded by their customers who relate Amul with good quality. Those using Super Chef stated that it is better than Amul in taste and less costly. 5.3.3 Demand of Pizza Cheese In case of Pizza cheese, most of the hotels/restaurants do not use Pizza cheese. While 1 of the respondents used Amul Pizza cheese, 2 used Super Chef and 9 do not use Pizza cheese. 5.3.4 Demand of Paneer It was also found that, the average consumption of Paneer is around 2-3 kg per day during lean season and rises to around 8-10 kg per day during the tourist season. The paneer manufactured by local manufacturers are used. No respondent used the big brand like Amul Paneer. Generally, the hoteliers enter into one-year contract with the dairy owners to evade the fluctuation in the price of paneer. The paneer used are made of buffalo milk. 5.4 Demand of goat milk To estimate the demand of goat milk, the dairy owners were interviewed. They were asked whether they use pure goat milk. One of the dairies in Agra had tried making Khoa of goat milk, but was not successful. It had got salty taste. Other owners denied that they have ever used pure goat milk, while they admitted that the buffalo milk they use is 'adultered' with goat milk. At Bharatpur Sahkarita Dugdh Utpadak Limited (a unit of RCDF), buffalo milk is collected, chilled and sent to Mother Dairy, New Delhi. Milk having fat less than 5% is not collected. So the goat milk gets rejected which has fat % of 4-4.5 % (Anjayeyula et al, 1985)

8

5.5 Existing Procurement Channel of Milk In order to develop a procurement system of goat milk, the existing procurement system of buffalo milk was studied. The existing procurement system of Bharatpur Sahkarita Dugdh Utpadak Limited was studied for the purpose. It was found that in pays Rs 5.50 per km to the truck owners and Rs 3.75 per km to the auto-rickshaw owners hired for collection of milk. The average cost per litre for the whole operation is Rs 1.72. 6. POSSIBILITY OF A GOAT MILK PANEER UNIT The possibility of a goat milk paneer unit has been studied by looking at its technical, market and financial aspects. 6.1 Technical Analysis 6.1.1 Procurement System Before describing the procurement system we should know the location of the unit. There are three possible places where the unit can be located- Dholpur, Bari and Sar Mathura (proposed on the basis of the infrastructure facilities like electricity and water). But as distance is one of the main cost drivers of a procurement system, Sar Mathura would be better than other proposed locations. It is known that the goat has been inducted in 7 villages namely, Nayagaon, Domai, Khemri, Gironia, Shankarpura, Hallupura and Barauli. Here Hallupura, Shankarpura, Gironia and Khemri are linked through the same road and hence can be on the same route. The tentative routes are given in Table 1. Thus total distance to be travelled by the procurement vehicle would be 76*2=152 km during the lean season (as milk procurement is to be done only once in the lean season) and 76*2*2=304 km during the abundance season. The procurement vehicle will be hired and the rate to be offered will be Rs 5.50 per km (the rate given by RCDF to hired vehicles) It is expected that these proposed procurement route will cover around 40 villages. The number of goats per village varies from 50 to 200. If we consider on an average 120 goats in

9

each village total goats will be around 4800. And the quantity of milk will vary from 330 litres per day during lean season to 1850 litres per day during flush season. Table 1: Proposed route for milk procurement Route No. Route 1 Route 2 Route 3 Route 4

Route Distance (in km) Jhiri to Sarmathura 32 Madanpura to Sarmathura 26 Domai to Sarmathura 10 Barauli to Sarmathura 8 Total 76

6.1.2 Production Process The production process proposed is manual using vats for boiling and coagulating milk. However, the goat milk paneer will be vacuum packed to increase its shelf life so that it can be supplied to wider geographical area. 6.2 Market Analysis Present market situation: At present, it seems very few people are using goat milk paneer. (only those who are being supplied from the laboratory of the Goat Product Technology section of CIRG). But there are many consumers of conventional buffalo milk paneer. Here at Dholpur there is only one major manufacturer and supplier of paneer .As there is little difference in the taste of conventional buffalo milk paneer and goat milk paneer and also because the later has better nutritional value there seems to be a prospective market for it. Unionlocal paneer manufacturers, who would Competitors: There are big players likeMember Amul besides compete with the product. Sales Depot Distribution System: If we look at the distribution system of Amul paneer we can estimate the major cost and risk involved in the process of distribution. Amul paneer is sold by GCMMF, W C & F Agent (For storage which has got 42 sales offices locatedand in all the major towns. The supply chain of GCMMF is transportation) given in Figure 1. The commission given to the wholesale dealer is 3 – 4 % while that of retailers is 10--12%

Wholesale Dealer

Retailer 10

Customer

Figure 1: Supply Chain of GCMMF So we can say that as goat milk paneer is a new product, its market has to be developed. It can be positioned as a 'nutritional dish' specifically promoting as a health food targeting children, old age people and those who are conscious about health and nutrition. 6.3 Financial Analysis The financial analysis has been done by taking into account the possible expenses that would be incurred from procurement to market development. It has been assumed that the product produced is completely sold. The analysis has been made under following heads: Initial Investment: The initial investment made is given in Table 2. It is assumed that the factory has been taken on rent and hence no expense in buying the land or in installation of a new factory..

Table 2: Initial Investment

11

Particulars Utensils Cans(5 cans @ 1700) Furniture Packing Machine Refrigerator Construction works Fat Testing Machine(3 unit @Rs 3500) Total

Rs 6,000 8,500 1,000 91,000 11,000 2,000 10,500 130,000

Means of Finance: The means of finance will be loan from bank at an interest rate of 12 %. The repayment of loan be made each year and will be completely repaid in 5 years. The Cash flow for 5 consecutive years have been prepared and shown in Annexure 1. The Cash flow for each year month wise has also been shown in Annexure 2(a) through Annexure 2 (e). Assumptions Made: There are various assumptions made in doing the calculations. The assumptions and calculations are as under: No of milking goats per day: Generally a goat gives birth in the months of March-April and September-October. In calculations assumptions has been made that all goats are giving birth in the month of April and October. Also as April is the summer season the proportion of goat giving kids is less than that of October i.e. the winter season. In April the kidding rate (i.e. the number kids born per goat) is less than the kidding rate in October. In April, Year 1 the initial number of goats is considered to be 1920 (40% of 4800). Thereafter the new kids that are born in April are considered to bear kid after 2 years 1 i.e. in April, Year 3. Hence in April, Year 3 the number of milking goats will be 5470. The calculation is shown below: [From the sample taken it was observed that 30% of the kids born in the months of MarchApril died while in September-October 31 % died. So taking 30 % as the death rate here, we calculated the number of goats that would yield milk after one year. 1

According to G.C. Banerjee, for getting good results, goat should be bred at the age from 14 to 18 months and should kid for the first time when they are about 2 years of age 12

Total goats in first year, in April =3600 No of goats that kidded 40%=1440 No of kids born, considering each goat bear one kid=1440 After mortality @ 30%, no of live kids= 1008 Considering Buck, doe ratio as 50:50, No of goat kids=504 Therefore, total goats that are matured to be pregnant after two year i.e. in April, Year 3 =3600 + 504 = 4104 Out of 4104, about 40% would be pregnant i.e. 1642 Total goats in first year, in October= 3600 No of goats that kidded 70%= 2520 No of kids born, considering each goat bear one kid= 2520 After mortality @ 30%, no of live kids= 1764 Considering Buck, doe ratio as 50:50, No of goat kids= 882 Therefore total goats that are matured to be pregnant after two year in October, Year 3 = 3600 + 882 = 4482 Out of 4482, about 70% would be pregnant i.e. 3137] Similarly the calculation has been made for Year 5. Litre of Milk Yield per day: As per the sample survey during the lean season the yield of milk is taken to be on an average 0.170 litres and in abundance season as 0.550 litres. It has been assumed that the average will be maintained for 6 months uniformly. Hence the calculation has been made for the whole year by dividing the year into 6 months period. Paneer yield per day: About 0.120 kg of paneer is considered being prepared from 1 litre of milk. Price: The price has been decided after looking at the price of the competitors. The price of paneer fluctuates a lot. In Agra and Dholpur It was found that the price varied between Rs 70 to 85 per Kg in different season, while Amul paneer comes in pack of 200 gram priced at Rs 22. Seeing this, the price of goat milk paneer has been set as Rs 20 for 250 gram i.e. Rs 80 per kg. This price has been taken into account while calculating the expected income.

13

Vehicle Fare: As mentioned while discussing the procurement system Rs 5.50 per km is charged from the hired vehicles for 76 km. The vehicle will run once in lean season and twice in winter. Raw Materials: The raw material is the raw goat milk collected from the producers. It is assumed that a producer is paid Rs 7 per litre of milk. Labour: There will be three labours, who will be paid @ Rs 60 per day. Cost of Packing: It is assumed that the product will be sold in pack size of 250 gram and the cost of packing each pack will be 25 paisa per pack.. Salary Expenses: One manager will be appointed who will be paid Rs 3000 plus 1 % commission on the sales value. Market Development Cost: The expenses to be incurred for market development have been assumed to be 2% of the sales value. It can be seen from the Annexure that the unit will not be viable with the existing number of goats. The number of goats has to be increased. So, the number of goats was found that would cause break even. 6.4 Break Even Unit of Goat Seeing that the existing 4800 goats will not be sufficient to establish a viable goat milk paneer unit, the number of goats was found that will make the unit break even. The calculations have been shown in Annexure 3. It was found that if we operate with around 14750 goats the unit will break-even. It was also estimated that the to break even, we should have a daily collection off 1003 litre of goat milk during lean season and 5679 litre during flush season. 7. SUGGESTIONS

14

As seen from the cash flow that the paneer unit may not be viable at the assumed selling price and the costs involved. The value that we can give to the producer is not more than what he normally gets. Annexure 4 shows the value that we can give to the producer for first five years, which is on an average Rs 6.07. However, this amount is the distribution of the whole profit without keeping any reserve. This value per litre will further reduce, if we would keep some proportion of profit as reserve. The unit should be set up only after it is possible to get milk from more number of goats. 7.1 Economical Procurement System The reasons for non-viability of the unit are less amount of milk produced by each goat and the high cost involved in procurement. The milk production per unit of goat can be increased by encouraging stall feeding to atleast those goats that are giving milk. Also, the procurement system can be made economical by hiring those type of vehicles that would cost less. 7.2 Market Development of Goat Milk Paneer: At present there does not seem to exist a market for the product. The market has to be developed. As the product has better nutritional value besides being easily digestible this can be promoted mainly among the health conscious urban people. We can also leverage on the brand value of PRADAN by mentioning this product as “a product by PRADAN for the benefit of both the urban and rural people”. At first, we may look smaller segment of market based on location. Initially we can promote this product in a particular area (say Dholpur) through the retailers as over-the-counter product. The retailers can be encouraged to push the product by high commission which we would be able to give initially, because of small channel of distribution.

15

REFERENCES 

Agnihotri M.K. and Pal U.K. “Potential of Goat Milk and Its Products as Health Food” Indian Food Industry. Sept-Oct 1995 Volume 14(5)



Agnihotri M.K. and Prasad V.S.S. “Biochemistry and Processing of Goat Milk and Milk Products”. Small Ruminants Research, 12 (1993)



Banerjee G.C. A Text Book of Animal Husbandry (Eighth Edition). New Delhi Oxford & IBH Publishing Co. Pvt. Ltd.



Devghare P.R., Goyal A.K, Kumar Shailendra et al . Vyavsayik Bakri Palan. Central Institute of Research on Goats (2000)

16