Small-scale traders in ‘clean milk’ strengthen the milk value chain in urban India

Fresh milk traders in Guwahati, Assam, India

Small- and medium-scale milk traders—not big or even small grocery stores—are what links most dairy farmers and consumers in Guwahati, the capital of Assam. Milk and milk products make up a large part of the most nourishing foods available to millions of poor people in this remote, poverty-stricken state of northeastern India. To promote the business of ‘clean milk’ among smaller scale traders, researchers recently trained more than 90 dealers in improved milk handling technique.

For three weeks this July 2010, courses were conducted on clean and hygienic milk handling and distribution for milk traders and vendors. Participants were trained in such specifics as the causes of milk spoilage and disease, hygienic milk handling and transportation, how to conduct tests for milk quality, and ways to ensure milk containers used in all processes of milk handling are sanitized.

The course trainers and materials were provided by staff of the International Livestock Research Institute (ILRI), who are working to educate and skill up relatively informal milk traders in the production and sales of clean milk and milk products. The benefits of this training are many, including not only cleaner, hygienically handled, milk, but also more milk sales, greater customer satisfaction and improved community health.

The trainings are part of a series that will reach more than 300 traders who collect and sell milk on the outskirts of Guwahati. The five modules that make up each training course are being delivered in 12 batches through October 2010.

Led by the Directorate of Dairy Development in Assam, the training program is supported by the Assam Agricultural Competitiveness Project under an initiative of the Joint Coordination & Monitoring Committee, which is bringing together organizations such as Dairy Development, the Veterinary Department, the public health departments in Assam, the Guwahati Municipal Corporation, the Assam Rural Infrastructure & Agricultural Services Society, and ILRI.

ILRI’s participation in this initiative is part of a project, ‘Improvement of the traditional dairy value chains in Assam’, partly funded by the UK Department for International Development’s Research-into-Use program. The project aims to increase demand for locally produced, good-quality milk in Assam and the capacity to supply it. Project members are supporting agents involved in the entire peri-urban traditional dairy value chain, from production, to distribution to the sales of safe, high-quality milk and dairy products.

ILRI dairy project office in Guwahati, Assam, India

ILRI has helped the Directorate of Dairy Development to mobilize Assamese dairy producers, suppliers and processors in the traditional sector as well as policymakers to improve the quality of milk delivered to consumers and to strengthen the dairy sector in general. ILRI is a member of a team strengthening the capacity of the local milk producer & milk traders/vendors association and will work with the Directorate of Dairy Development on a Joint Coordination and Monitoring Committee to monitor the ways that the lessons imparted to the milk traders are implemented and adapted.

Asif Bin Qutub, a project coordinator with ILRI in India and one of the trainers in this course, said that: ‘This training addresses trader needs identified after a baseline survey conducted by ILRI showed that most of the traders had lost potential customers as a result of selling inferior milk due to not following proper milk handling procedures.’

‘The training aims to address other issues as well,’ Qutub said. ‘It provides dealers with information on milk prices and good business practices—information likely to motivate them to improve the quality of the milk they supply to their customers.’

Those trained said their newly acquired knowledge would help them as well as farmers to increase their milk sales, and at higher prices, to reduce their losses from spoilage, and to protect their health and that of their families. They also mentioned that they looked forward to gaining greater approval for their businesses as well as new opportunities.

Sagar Dhakal, vice president of Guwahati’s Milk Suppliers Association, said he and his colleagues had agreed to keep the training materials on display in their offices and to share their training more widely with others in the business.

Those participating in the courses will receive certificates from Assam’s Directorate of Dairy Development and Joint Coordination and Monitoring Committee.

New strategy for pro-poor dairy development in Assam

ILRI and partners recently unveiled a new action plan to help the poor in Assam improve their livelihoods through the dairy sector.

Assam is located in the far North-East corner of India and shares its borders with six Indian States and two countries. The majority of milk is produced by rural smallholders using indigenous cattle and buffalo, but productivity is low in comparison with other States in India. Further, most milk is marketed through traditional and informal channels, estimated at 97% of locally marketed milk, compared to some 80% nationally.  In spite of these constraints, Assam displays strong production potential and inadequate milk supply, so there are many opportunities to grow the dairy sector and help the poor improve their livelihoods.

In 2005, the International Livestock Research Institute (ILRI), was invited by the Directorate of Dairy Development (DDD) of the Government of Assam, to collaborate in a comprehensive study on the dairy sector in Assam to identify opportunities to boost the milk sector and improve the livelihoods of smallholder producers.

About Assam

Assam is situated in the far, North-East corner of India. The total geographical area of the State is 78,438 sq kms which accounts for about 2.4% of the country’s total geographical area. In 2001, the population of Assam stood at 26.64 million – representing 2.59% of the total population of India.

The percentage of poor in Assam is the highest among the seven sister States of the North East. Around 36.09% of the State’s population continues to live below the poverty line, a figure considerably above the national average of 26.1% (1999-2000). There is a rural-urban divide: four out of ten people in rural Assam are likely to be below the poverty line, while in urban Assam, the incidence is less than one in ten.

Cattle constitute the largest livestock group followed by goats, pigs and buffaloes. Livestock in Assam are mainly indigenous breeds but the average productivity is poor in comparison with other States of India. The production of milk in Assam in 2002-2003 was estimated at 773 million litres as against 750 million litres in 2001-2002 indicating a nominal increase of 3.06 per cent over.

Action plan presented to stakeholders
On Wednesday 30th May, ILRI and the DDD presented their findings and a draft action at a final stakeholders’ meeting in the Assam capital Guwahati convened by the Assam Minister for Animal Husbandry and Veterinary, the Hon. Khori Singh Enghti. The action plan is based on surveys of 1500 consumers, 600 traditional and formal market agents and 3000 dairy producers in eight districts of Assam. It also includes an analysis of the successes and failures in the formal sector in Assam and an analysis of the quality and safety of milk and dairy products in both the traditional and formal sectors. The data were gathered and analyzed in collaboration with local partners in Assam.

New Strategy for Pro-Poor Dairy Development

Assam Action Plan Highlights

Demand outstrips supply
The report found dairy production to be a feasible option for raising incomes and improving livelihood opportunities, particularly for the rural poor. According to Steve Staal, ILRI’s markets theme director, ‘Our study shows that there is a huge gap between demand and supply. To meet the demand, which is mostly for good quality raw milk, dairy interventions that address productivity, access to livestock services and markets, and improved milk quality in the traditional sector, would result in more income and more employment for rural smallholders.’

Improved productivity and increased production essential
Besides large market potential in rural Assam, the survey also found many farmers expressed a desire to become involved in increased marketed milk production, but low milk yields and lack of a basic marketing infrastructure were identified as major obstacles. The action plan highlights opportunities to increase farm-level production and productivity through improved animals such as cross-breeds, improved fodder and feed technology, and by providing access to livestock services. The action plan also incorporates actions to provide smallholder access to reliable markets to absorb more milk at remunerative prices. The government of Assam have already made efforts to bring smallholders into collective market mechanisms, but marketing of milk through the processed milk channel remains relatively insignificant and smallholders receive little remuneration.

Pro-poor interventions critical
The plan highlights that dairy systems in Assam may be too diverse to have a singular policy thrust. It states: ‘We need to recognize such diversities of the system and place them within pro-poor dairy intervention designs and enable poor households to take part in the process.’

According to the report, no dairy development is possible in Assam unless it addresses the problems faced by the traditional sector. Most of the milk consumed in Assam is ‘raw’ unpasteurized milk supplied by smallholders. The survey found that demand for pasteurised milk was low and its consumption was limited almost entirely to urban areas. Staal emphasised the need for an inclusive plan ‘Any development plan that focused mostly on pasteurised milk is unlikely to yield the desired results. The idea is not to have a parallel competitive system to beat the traditional sector but to strengthen the existing system and help build a blend of modern infrastructure and professionalism.’

Quality standards to be raised
The report also highlights the need to raise quality and hygiene standards. According to Delia Grace, an epidemiologist and food safety specialist at ILRI, ‘Most of the samples analysed did not meet general bacteriological quality standards causing a potential risk to human health. There is an urgent need to create awareness among farmers and distributors to address the problem.’ The report suggests taking immediate steps to provide training packages to milk farmers and distributors and to raise awareness among consumers that all ‘raw’ milk should be boiled before consumption – a practice that is generally followed in Assam.

Assam action plan soon ready for implementation
According to Iain Wright, ILRI’s representative for Asia ‘the report was well received by stakeholders and we are currently incorporating their comments. The final action plan will be released within a month.’

ILRI Assam Dairy Project Staff

Liza and Patro