Organizing Milk Collection

After planning milk collection, steps are taken to organize collection system. The first step is to undertake extensive surveys in the milk shed area. Availability of milk at various collection points is ascertained based on the number of animal, future potential of milk availability and the presence of competitors. This is followed by route planning and finalization of location for collection and chilling center. Since organization involves interests of producer, processor and consumer, the collection system must be well organized and operated under tight and well controlled manner.

 

i. Objectives

Milk collection system is organized with an objective to collect sufficient quantity of milk for processing plant and to ensure:

• accurate measurement of producers’ deliveries,
•  receipt of unadulterated, clean, hygienic and good quality milk.
•  regular payment to producers and giving incentive for quality production.
•  economic collection and efficient transportation to dairy plant.

  ii. Steps

To organize a good milk collection system, the following steps are considered:

 

Milk survey and location of milk collection/milk-shed area: 

 

Milk survey of is done to establish its potential of milk in the area. Two types of milk survey are required. First is a broad milk shed survey with the aim of defining the likely overall potential of the milk-shed area, the possible general location of collection centers and likely routing for collection vehicles.

In second type, a more detailed comprehensive survey is carried out to ensure the worthwhile location of a collection point. On the basis of number of milkmilch animals, the number of potential producers is established; current milk production and products made are estimated and likely potential in association of other agricultural activities is assessed. A meeting of potential producers may be called and possibility to form a producers’ cooperative or association of milk suppliers should be discussed.

 

Establishment of a collection point: 

Having done the survey on milk potential and possible location of milk collection points in a milk shed area, actions are to be taken to establish the milk collection centers, acquire sites, erect necessary buildings and install the equipment. The collection point will be established at a convenient location, usually central to the potential suppliers and close proximity to the access appropriate road system for onward transportation of milk to the dairy. Availability of adequate and reliable power supply and potable water would be additional requirements if considered for establishing a refrigerated bulk tank and developing some cooling facilities at the centre. Security arrangement to prevent loss of items,an office to work and keep records on supplies, a  laboratory for sample testing and housing facilities for inputs like chemicals and medicines, feeds and equipment can also be provided.

 

Deciding a milk collection route: 

In most cases, sending milk directly from collection centre to main dairy or chilling centre is neither convenient nor economical.Hence, a proper route planning is done taking into account milk availability, permissible route length, road access and village connectivity, and distance of collection points from the site of chilling/dairy plant. The economic route design has a great impact on the progress of milk shed, milk quality and procurement cost. Increase in the cost of milk, on account of quality deterioration or less capacity utilization of vehicle, has direct impact on the total cost. Hence, the following information are needed in deciding a milk collection route:

• Geographical map of the milk shed area indicating road, river and railways.
• Distance map of collection centre and milk producing villages.
• Availability of type of transport vehicles.
•  Details of milk shed area with respect to number of collection points and pattern of expected quality of milk to be collected throughout the year at individual points.
• Expected minimum and maximum time required to carry milk by special route vehicle to the chilling/dairy sites.

  Management of organization: 

Management of organization should be responsible to appoint the staff to collection center.

 

 i) Overall management control:

Overall management control will depend upon and is directly related to the management of the main/central dairy. This may be run by Government or an appointed parasitical dairy authority, a private company or by a producer cooperative. The central management will also manage the collection centers, although, perhaps, by delegation, Thus,the overall management authority of the collection system will supervise the collection points, organize the transport for them, give services and management back-up, provide regular payment and organize production requisites and extension services; generally supporting the collection points. A positive approach of the central management to the development of a collection system is vital and for this, central management must include manager procurement as member in a senior position and give attention to his complaints or advice.

Taking the dairy industry worldwide, organizations of producers are the dominant agencies in the overall management control of development of dairying. This may work as cooperatives or association or companies. The full participation of suppliers can be regarded as vital at a collection point.

  

ii) Collection centre management and staffing:

The organization within a collecting centre is a function of its size. A small village society may consist of a management committee of the cooperative with a chairman and secretary.The secretary may be the only full time member staff, assisted by part time workers. At the time of collection, they will receive and record the milk collected and carry out simple testing.

A large centre, might be having a refrigerated bulk tank and may employ several staff under a manager. The number will depend on size of a unit and the range of activities carried out for organizing any collection centre. Three important points are:

• Responsibilities and the tasks of these employees have to be clearly defined.
•  Proper training is provided in the form of short courses for a few days. 
• A close supervisory control: A group of centres will be placed under a manager at the dairy, making regular visits and applying close supervisory control.

Operating procedures: Management organizations have to set the operating procedures at a centre, including measurement, quality testing, recording, onward transportation and payments.

Operating stage at collection centre starts with reception of milk from the suppliers.At this stage, milk is graded and tested for acceptance or rejection. Accepted milk is measured, recorded, sampled and analysed for quantity and quality on which suppliers are paid. The centre records should be carefully kept in duplicate with the total checked at the dairy and any discrepancy carefully investigated. A record of test results will also be kept. Check tests at the dairy may be carried out periodically and comparisons are made with individual results.

The milk, once accepted, is stored, perhaps only for an hour or so prior to dispatch.Milk should be kept in the shade in water cooling system or in a large centre, where available, refrigerated storage is done. The supplies are then dispatched to the dairy/chilling centre. Transportation schedules should be carefully planned to minimize time and cost.

Cleanliness of the containers used for milking, carrying, storage, and measuring,etc. should be strictly maintained. Chemicals and detergents may be supplied by the organization.

Payment to the producers should be made at mutual agreed intervals regularly by the centre staff. An acceptable accounting system has to be devised, subject to regular audit. Complaints should be investigated rapidly. Periodic meeting of producers should be arranged. Confidence on the part of all involved is essential.

Supervision and control: Supervision and control of the collection centres include supervisory visit, check measurement, testing and audit. Five to fifteen collection centres are grouped under a field supervisor, working under procurement manager. The field supervisor will visit each centre unannounced at least two or three times a month to supervise a daily collection, review procedures and check stocks, records, any cash and accounts. Periodic meetings of producers may be conducted and complaint resolved. The field supervisor may also be responsible for building up an area, organizing new collection points.Supervision and control will also be carried out through the continuous surveillance of the physical records of the producers’ supplies, deliveries and test results. Any anomalies that are perceived would immediately be investigated. Control will also be applied through financial records, costing and audit. Costing give a check on business efficiency with comparison being made among centres. Regular audit is vital to ensure there is no misuse of funds.

  

iii. Producers Participation

The producer participation in organized milk collection is vital and necessary,particularly at the point of first acceptance of milk. Problems such as, short shelf-life, staleness, heated flavour, developed acidity, measuring and testing results, etc.very often surface at the point of collection. Under such a situation, producer association or cooperative is the best type of organization to run a centre and resolve their suspected problems.

  

iv. Types of Milk Collection Systems

A number of milk collection system have been developed and are being used throughout the world to provide market to the milk producers and obtain sufficiency of milk for processing plant.

 

Direct from the producer: 

The individual producer brings milk and delivers to the dairy plant independently. This practice generally suits the large producers located near the processing plant. There is no obligation of any kind on either side.

The processor is in daily contact with the milk producers. Quality control can be performed in the presence of the producer. Adulterations can be dealt with in the presence of suppliers. The relative nearness and personal contact between producers and processors is excellent. Additional job opportunities among rural people can be created.Dairy has the right to fix the price for milk. Generally low price is offered to producers. Milk producers are normally exploited. Dairy may deny from taking the milk on various grounds. There is no assured market for the milk throughout the year. The dairy because of seasonal variations may not accept all the milk supplied by the producers. Producers do not get incentive for increasing milk production.Neither facilities to increase milk production are provided by dairy nor social and economic needs are taken care of. The profits earned by the dairy are not shared with milk producers.

  

Through middlemen: 

The producers, normally in our countries, are having one or two milch animals. The milk is produced for the farmer’s family and the surplus is sold locally or converted into a product. Under this situation, a dealer system usually arises in which a middleman collects the surplus milk, carries it to the processor or to a market in nearby villages or towns and then sells it. Dairy plants has no direct contact with the actual producers directly. The traditional middleman acts as agent between the dairy plant and small milk producers. Sometimes, milk producers are given loan for purchase of milch animals with the agreement that the milk produced will have to be sold to the lender only on his fixed price. Apparently,it seems to be simple and flexible system. It is economical as head load, shoulder sling, bicycle, motorcycle etc. are used as mode of transportation. It saves time of small milk producers/suppliers. Milk is usually of poor quality. More proximity of using preservatives, neutralizer etc. Milk could be supplied to limited distance. Price for the milk received by the producer is very low. Producers do not get any incentive or help for milk production. Milk producer, generally, remains a debtor.

Through agent or contractors: Some dairies enter into an agreement with the authorized agents/contractors for the supply of certain quantity of milk for a specific period. Normally, the price for the milk, its quality and quantity in different seasons are mutually agreed upon. Other details such as mode of payment, timings,transportation of milk, settlement of dispute if any and penalties for failure, etc. are decided at the time of making agreement. Contractors make their own arrangement to collect, chill and transport the milk in cans, tankers, bulk tanks, etc. by their own vehicles. Dairy is no way concerned with milk production and management of milk collection, transportation and incurring expenses on it. Dairy has not to deal with large number of producers but only a few contractors.

Milk producers are, invariably, exploited by the contractors and the dairy as well.Quality of milk, in general, is poor, adulterated and fabricated. Once becoming dependent on the supply of milk by contractors, dairy yields to their dictat. Producers get very low price for milk and profits are taken by the contractors. Often milk producers remain debtor to the agent and they do not have freedom to sell their produce elsewhere. No facilities for increasing milk production nor for the social enlistment are provided. This system of milk procurement encourages red tapism/ corruption.

 

Through cooperatives: 

At the village level, farmers organize themselves in a cooperative society, which establishes milk collection centres. The society members deliver milk twice a day to the milk collection centres where milk is weighed/measured, tested, and price is paid to farmers according to its quantity and quality.The village society supplies/sells milk to its own district cooperative dairy plant. It transports milk in cans by truck or by insulated road milk tanker, if there is a chilling centre. Besides milk collection, the society also provides technical input services such as artificial insemination, veterinary aids, concentrated cattle feed and fodder seeds, and counselling to society members to enhance milk production.Unlike the other systems of procurement, the milk producer is the owner of the dairy. He has the right to decide the price of milk and also to get the share of profit made by the dairy. This system gives self-reliance to the producers for solving their problems in a collective manner. This is a foolproof system to eliminate all the demerits of other types of milk collection.

  

Directly from dairy/chilling plants: 

Improvement in refrigeration and transportation facilities has made possible to procure milk in bulk quantities from distant places.One dairy situated at thousand kilometers away can get milk from another dairy in good condition. The milk is either chilled or processed and chilled to a temperature just above 4°C and transported through road/rail tankers(insulated or refrigerated)depending upon the distance and volume of milk. Milk at the receiving dairy is usually reprocessed,packaged and delivered to the consumers. Dairies situated in big cities like Kolkata, Delhi, Mumbai, Chennai, etc. are procuring milk utilizing this system from neighbouring or far-off states of this country.

  

Through Government agencies: 

Dairying is being considered as an instrument of social upliftment. Hence, in areas, regions, states or countries, where dairy development is still under infancy, Govt. is providing all sorts of inputs to help farmers to adopt dairy farming by providing ready market for their produce i.e.milk. Under this programme, milk is collected at collection centre,established and managed by Govt. staff or agency in the village itself. The milk is measured,tested and paid (daily, weekly, fortnightly or monthly) for the supply. Milk so collected is either transported to a chilling centre and/or a processing dairy or market.

Government support encourages milk production in the area. Ready market at door-steps provides milk production incentive to farmers. Payment on quality and quantity basis at fixed periodic interval increases reliability and assurance among the milk producers. Some times loan is also provided for purchasing animals with subsidies on easy terms to repay.