Dr. Gajendrakumar Kantilal Bamania, CEO, Xcell Breeding and Livestock Services Pvt Ltd, Ahmedabad, Gujarat, talks about the scope of dairy entrepreneurship.
Indian dairy industry is very huge with highest breeding population. We have around 20 crores cattle and 10 crores buffalos. Out of the 20 crore cattle, 80% of this is indigenous and nondescript. But the milk production from this lot is only average 2.5 litres from each cattle. The remaining are exotic breed such as jersey, HF and so on which provide nearly average 4 to 4.5 litres milk per animal. India has the highest population of bovine. We have covered 27% of the breeding bovine population for insemination in India. Most of us have experience with agriculture and animals as both run together in India.
There are many projects and schemes from the Central and state governments for multiplication of breeds. For example, Gujarat is known for White revolution and has cooperative model in Amul. If we are associated with agriculture and allied activities such as fishery, forestry, and dairy farm, the governments provide various schemes such as ACABC which are excellent. The agripreneur go for training for 2 months run by the Ministry of Agriculture and Farmers Welfare, NABARD, and MANAGE which are good and acceptable ones. Government is providing R.s 18 lakhs for ACABC programs. As a promoter, you may have to initially spend Rs. 10 to 20% of the cost, get subsidy of 35% for open category, and for women and reserve category 44%. All the nationalised banks like SBI, Union Bank of India have their own plans to invite application for the loan and the agripreneur who want to take advantage of ACABC scheme. You can visit www.agriclinics.net and get the practical exposure for good knowledge about the training centres, contact details of nodal training institutes. You have to select the area, call the centres, and get the details of the next session. There is no charge for the training. You may pay Rs. 1000 as security deposit which is refunded after the session. They provide lodging, boarding, and all facilities. You can take advantage of these sessions when you plan to start your own dairy farm.
BMF (Breed Multiplication Farm) is another amazing scheme. When you plan for big farm on 5 acres of land with minimum of 200 animals, be it cattle or buffalo, you can get 50% subsidy for this scheme which is upfront. It is from the Department of Animal Husbandry under Rastriya Gokul Mission to facilitate this model. I define entrepreneurship as extraordinary results with ordinary effort. You have to procure cattle of high genetic merit, disease free heifers, and high quality disease free semen and animals to the farmers. It is a onetime assistance for establishment of breeder farms at 50% project cost as capital subsidy with a maximum of Rs. 2 crores. The entrepreneurs in North Eastern state and hilly states will get 50% of the project cost up to Rs. 60 lakhs. The balance amount is managed by the beneficiary. The loan period, margin money, and collateral are decided by the financial institutions. Under BMF, in case of bank finance project, the beneficiary’s contribution is fixed at 10% of the total project cost. In case of self-finance project, beneficiary contribution shall not exceed 37.5% of the total project cost. National Dairy Development board is implementing agency, inviting expression of interest from eligible entrepreneur.
Any eligible entrepreneur, aggregator, private individual, farmer, SHG, FPO, FCO, JLGs and Section 8 companies can avail the benefits. In case of individuals copy of Aadhar card and Notarized declaration that the individual is not blacklisted are needed. For others, Certificate of Incorporation, Partnership Deed, Copy of Article of Association, Notarised Declaration that that the organisation is not blacklisted are needed. Entrepreneurs and applicants should have appropriate experience in breeding and rearing dairy animals. So proof of activity, certificate of experience in breeding and rearing of dairy animals from a government veterinarian, training certificate from any institute, details of farm management, details of experienced manpower available are also needed. In case you do not have experience, you may hire veterinarian and provide documentary evidence for the same. The aims and objectives are to develop entrepreneurs for cattle and buffalo breeding, making available disease free, high yielding heifers, pregnant heifers, and cows preferably of indigenous breed, to encourage private individual entrepreneurs, FPO, SHG, JLG, and Section 8 companies for establishment of BMF. This also aims at spreading awareness about scientific management practices including animal nutrition, disease prevention, multiplication of high yielding milch animals through scientific breeding including IVF technology and sexed semen.
Evaluation and method of evaluation is done by screening of application as per the qualification criteria. The completeness of documents and detailed project report as per guidelines are evaluated. Upon clearance, a forwarding letter is issued to the branch manager of the Bank where the applicant will apply for availing loan. The selected entrepreneur has to arrange means of finance for establishing BMF, with term loan of 12.5% of the project cost, subsidy limited to Rs. 200 lakhs in case of a Rs. 400 lakhs project, and beneficiary contribution from 10 to 37.5% of the project cost. If you want to develop an animal husbandry, you will get 2 years of moratorium. This will help new entrepreneurs, FPO, FCO, SHG, and JLG. You have to buy the disease free animals for better livelihood and as per the lactation year. the animals should be vaccinated. We can help you in preparing the documents such as Aadhar card, PAN card, organisation GST number, two copies of certificate of incorporation. There are other details required as per the annexures which need to be followed.
What are the emerging trends in dairy industry products that present promising business opportunities for dairy entrepreneurs?
After the outbreak of covid, most of us have become health conscious. In dairy product, people ask for fat and SFN of the product. Milk is collected as per the percentage of fat, SFN, and other criteria. These products are in demand now. Indigenous milk production is also in good demand. Desi cow ghee, Sahiwal cow ghee are getting good rating and are demanded. In North India, Sahiwal milk was sold at Rs. 200 per litre. We have to create the product demand, identify the customers, and then there is huge opportunity for health conscious people in these products.
Can you elaborate on the potential challenges and opportunities associated with technology in dairy farming and processing?
Every problem brings out an opportunity. When you want to do business in the market, you have to convince yourself if you are interested and willing to take up the challenge. Technology has a huge role in business. We are using 5 G which is the high speed internet connectivity to connect people across the globe. With technology and AI, we have started using biometric identification solution. It has its own advantages and challenges. Technology can help you to improve and find suitable solution and get what you need in future.
How does current market demand for organic and sustainable dairy products influence the scope of entrepreneurship in dairy industry?
We need quality food. Especially after covid, people are getting good updates and awareness of organic food. It gives good long life, quality food, and health. Now government is focusing on millets on our plates. Whichever animal we are getting milk from, it should be organic, and so the feed for the cattle should also be organic. For this agriculture should be done organically. I believe organic is the future. People do not mind spending money for such products. We have to identify the niche market, and total customers requiring such type of product.
How do consumer behaviour and preference influence the diversification potential for dairy entrepreneurship in terms of product innovation and value addition?
Innovation and value addition are the need of the hour. About 60% of the population which was living in the rural area is now moving to urban areas because they want to live a quality city life and enjoy. Adaptation of new technology is still open, as we enter the 21st century, AI has a huge role to play in everything with transforming digital innovation. There is a good demand for innovation and value addition. Most of the people take milk in some form or the other, and so quality is very important. Government is encouraging value addition.
How do global and regional market dynamics impact the export potential for dairy entrepreneurs, and what are the key considerations for entering the international market?
India has the highest cattle and buffalo number at 302 million. We are no.1 because the population is high, and milk production is also high. We have to work on many parameters such as somatic cell counts -- If you want to export to USA or Canada, they have different market -- we have to find the way.
What strategies can small dairy entrepreneurs follow to access and compete in larger market effectively?
If you are starting a dairy industry, every year one calf should be added. After the delivery, within 3 months the animal should become pregnant, which is a scientific system for the benefit of the farm and to make profit. If this does not happen, the profit is meagre -- you have to change your business model. In the long term, you have to make use of government schemes. You can consult doctors, attend international exhibitions, and identify the gaps.
What are the key regulatory and compliance aspects that dairy entrepreneur should be aware of to ensure sustainable and legally compliant operations?
The networking and collaboration with other stakeholders in dairy value chain such as cooperatives and processors contribute to the success of dairy entrepreneurship ventures. Gujarat has a strong collaborative in Amul for dairy. For value chain you need to identify your market where you want to sell, preparing value added products, identify the basic product you can collaborate for. We have to identify what we need, and accordingly we have to pick the model to make progressive dairy. We have to prepare the plan well. Government is now encouraging big farms, and so we need to focus on that.
info@xcellbreeding.com
9627489580/9427035480 WA/call
Indian dairy industry is very huge with highest breeding population. We have around 20 crores cattle and 10 crores buffalos. Out of the 20 crore cattle, 80% of this is indigenous and nondescript. But the milk production from this lot is only average 2.5 litres from each cattle. The remaining are exotic breed such as jersey, HF and so on which provide nearly average 4 to 4.5 litres milk per animal. India has the highest population of bovine. We have covered 27% of the breeding bovine population for insemination in India. Most of us have experience with agriculture and animals as both run together in India.
There are many projects and schemes from the Central and state governments for multiplication of breeds. For example, Gujarat is known for White revolution and has cooperative model in Amul. If we are associated with agriculture and allied activities such as fishery, forestry, and dairy farm, the governments provide various schemes such as ACABC which are excellent. The agripreneur go for training for 2 months run by the Ministry of Agriculture and Farmers Welfare, NABARD, and MANAGE which are good and acceptable ones. Government is providing R.s 18 lakhs for ACABC programs. As a promoter, you may have to initially spend Rs. 10 to 20% of the cost, get subsidy of 35% for open category, and for women and reserve category 44%. All the nationalised banks like SBI, Union Bank of India have their own plans to invite application for the loan and the agripreneur who want to take advantage of ACABC scheme. You can visit www.agriclinics.net and get the practical exposure for good knowledge about the training centres, contact details of nodal training institutes. You have to select the area, call the centres, and get the details of the next session. There is no charge for the training. You may pay Rs. 1000 as security deposit which is refunded after the session. They provide lodging, boarding, and all facilities. You can take advantage of these sessions when you plan to start your own dairy farm.
BMF (Breed Multiplication Farm) is another amazing scheme. When you plan for big farm on 5 acres of land with minimum of 200 animals, be it cattle or buffalo, you can get 50% subsidy for this scheme which is upfront. It is from the Department of Animal Husbandry under Rastriya Gokul Mission to facilitate this model. I define entrepreneurship as extraordinary results with ordinary effort. You have to procure cattle of high genetic merit, disease free heifers, and high quality disease free semen and animals to the farmers. It is a onetime assistance for establishment of breeder farms at 50% project cost as capital subsidy with a maximum of Rs. 2 crores. The entrepreneurs in North Eastern state and hilly states will get 50% of the project cost up to Rs. 60 lakhs. The balance amount is managed by the beneficiary. The loan period, margin money, and collateral are decided by the financial institutions. Under BMF, in case of bank finance project, the beneficiary’s contribution is fixed at 10% of the total project cost. In case of self-finance project, beneficiary contribution shall not exceed 37.5% of the total project cost. National Dairy Development board is implementing agency, inviting expression of interest from eligible entrepreneur.
Any eligible entrepreneur, aggregator, private individual, farmer, SHG, FPO, FCO, JLGs and Section 8 companies can avail the benefits. In case of individuals copy of Aadhar card and Notarized declaration that the individual is not blacklisted are needed. For others, Certificate of Incorporation, Partnership Deed, Copy of Article of Association, Notarised Declaration that that the organisation is not blacklisted are needed. Entrepreneurs and applicants should have appropriate experience in breeding and rearing dairy animals. So proof of activity, certificate of experience in breeding and rearing of dairy animals from a government veterinarian, training certificate from any institute, details of farm management, details of experienced manpower available are also needed. In case you do not have experience, you may hire veterinarian and provide documentary evidence for the same. The aims and objectives are to develop entrepreneurs for cattle and buffalo breeding, making available disease free, high yielding heifers, pregnant heifers, and cows preferably of indigenous breed, to encourage private individual entrepreneurs, FPO, SHG, JLG, and Section 8 companies for establishment of BMF. This also aims at spreading awareness about scientific management practices including animal nutrition, disease prevention, multiplication of high yielding milch animals through scientific breeding including IVF technology and sexed semen.
Evaluation and method of evaluation is done by screening of application as per the qualification criteria. The completeness of documents and detailed project report as per guidelines are evaluated. Upon clearance, a forwarding letter is issued to the branch manager of the Bank where the applicant will apply for availing loan. The selected entrepreneur has to arrange means of finance for establishing BMF, with term loan of 12.5% of the project cost, subsidy limited to Rs. 200 lakhs in case of a Rs. 400 lakhs project, and beneficiary contribution from 10 to 37.5% of the project cost. If you want to develop an animal husbandry, you will get 2 years of moratorium. This will help new entrepreneurs, FPO, FCO, SHG, and JLG. You have to buy the disease free animals for better livelihood and as per the lactation year. the animals should be vaccinated. We can help you in preparing the documents such as Aadhar card, PAN card, organisation GST number, two copies of certificate of incorporation. There are other details required as per the annexures which need to be followed.
What are the emerging trends in dairy industry products that present promising business opportunities for dairy entrepreneurs?
After the outbreak of covid, most of us have become health conscious. In dairy product, people ask for fat and SFN of the product. Milk is collected as per the percentage of fat, SFN, and other criteria. These products are in demand now. Indigenous milk production is also in good demand. Desi cow ghee, Sahiwal cow ghee are getting good rating and are demanded. In North India, Sahiwal milk was sold at Rs. 200 per litre. We have to create the product demand, identify the customers, and then there is huge opportunity for health conscious people in these products.
Can you elaborate on the potential challenges and opportunities associated with technology in dairy farming and processing?
Every problem brings out an opportunity. When you want to do business in the market, you have to convince yourself if you are interested and willing to take up the challenge. Technology has a huge role in business. We are using 5 G which is the high speed internet connectivity to connect people across the globe. With technology and AI, we have started using biometric identification solution. It has its own advantages and challenges. Technology can help you to improve and find suitable solution and get what you need in future.
How does current market demand for organic and sustainable dairy products influence the scope of entrepreneurship in dairy industry?
We need quality food. Especially after covid, people are getting good updates and awareness of organic food. It gives good long life, quality food, and health. Now government is focusing on millets on our plates. Whichever animal we are getting milk from, it should be organic, and so the feed for the cattle should also be organic. For this agriculture should be done organically. I believe organic is the future. People do not mind spending money for such products. We have to identify the niche market, and total customers requiring such type of product.
How do consumer behaviour and preference influence the diversification potential for dairy entrepreneurship in terms of product innovation and value addition?
Innovation and value addition are the need of the hour. About 60% of the population which was living in the rural area is now moving to urban areas because they want to live a quality city life and enjoy. Adaptation of new technology is still open, as we enter the 21st century, AI has a huge role to play in everything with transforming digital innovation. There is a good demand for innovation and value addition. Most of the people take milk in some form or the other, and so quality is very important. Government is encouraging value addition.
How do global and regional market dynamics impact the export potential for dairy entrepreneurs, and what are the key considerations for entering the international market?
India has the highest cattle and buffalo number at 302 million. We are no.1 because the population is high, and milk production is also high. We have to work on many parameters such as somatic cell counts -- If you want to export to USA or Canada, they have different market -- we have to find the way.
What strategies can small dairy entrepreneurs follow to access and compete in larger market effectively?
If you are starting a dairy industry, every year one calf should be added. After the delivery, within 3 months the animal should become pregnant, which is a scientific system for the benefit of the farm and to make profit. If this does not happen, the profit is meagre -- you have to change your business model. In the long term, you have to make use of government schemes. You can consult doctors, attend international exhibitions, and identify the gaps.
What are the key regulatory and compliance aspects that dairy entrepreneur should be aware of to ensure sustainable and legally compliant operations?
The networking and collaboration with other stakeholders in dairy value chain such as cooperatives and processors contribute to the success of dairy entrepreneurship ventures. Gujarat has a strong collaborative in Amul for dairy. For value chain you need to identify your market where you want to sell, preparing value added products, identify the basic product you can collaborate for. We have to identify what we need, and accordingly we have to pick the model to make progressive dairy. We have to prepare the plan well. Government is now encouraging big farms, and so we need to focus on that.
info@xcellbreeding.com
9627489580/9427035480 WA/call