ráneo): la perspectiva de Gerald Cohen.
3.2.2 Críticas a II) A) analizadas y respondidas por Cohen.
Given that the current project/model is not feasible, we suggest that the company adopt a different model or make significant changes to this model or both. Based on the suitability (fit with) to the broad (general) vision, objectives and operations of multinational dairy companies, we identified four possible models a multinational dairy company can use for meeting its milk supply needs in India.
In the first model (Single Tier Dairy Farming Model) we suggest establishing (multiple) large scale dairy farms that are owned (either wholly or in partnership) and operated by the dairy company. This is similar to the Nellore model that was assessed in this study. But we suggest that the scale be reduced to around 1000 - 1200 cows/farm and also that it be considerably adapted to local conditions. The smaller farm size will fit better into the local context and will reduce visibility (below the radar approach), especially during the initial stages. Also, since total feed requirements will be much lesser, the farm could source its entire feed from a mix of local farmers and agro-industries. Thereby by-passing the need to procure large amounts of productive agricultural land and have own-cropping operations. A contract farming system for procuring maize, hybrid napier and perhaps lucerne from a select group of local farmers can be developed. To reduce animal related risks, instead of NZ Holsteins Friesians, breeds more tolerant to Indian conditions such as crossbred Jerseys and/or crossbred Indian breeds (Gir, Sahiwal or Sindhi) can be used. Also, a seasonal production pattern, with entire
might be a better option. On the whole by developing 5-6 such farms within a region, sufficient scale (100,000 litres/day) can be built up to justify establishment of a processing plant. No dairy company has used this model in India as yet.
In the second model (Two Tier Dairy Farming Model) we suggested establishing a two level farming model consisting of – 1) nucleus farms and 2) satellite farms. The nucleus farms would be the focus of this operation and will be fully owned and operated by the dairy company. It will be significantly larger than existing commercial dairy farms (about 500- 600 animals). Operationally, the nucleus farm will be very similar to a farm described in the single tier dairy farming model (first model).
The satellite farms however will be smaller in size (average size of 50 milking animals/farm) and in relatively close proximity (<150 km) to the nucleus farm. Each of the satellite farms will be owned and managed by local farmers, and will function as distinct entrepreneurial units. But the dairy company will have complete ownership of dairy assets (cows and equipment) and some degree of management control of satellite farms. The dairy company will provide feed and standard support services (health care, breeding, etc.) to all satellite farms at no cost. Costs associated with labour and other operational expenses will be borne by the farmer. The satellite farms will be open to frequent audit/inspection by the dairy company to ensure compliance with mandatory operational standards.
On an average each satellite farm will have 50 milking cows and produce 750 litres/day. The lower production is because these farms will be more adapted to local conditions, especially animal genetics & management systems. Also animals will be on a once a day milking regime because of logistical challenges associated with twice a day collection from all farms. The satellite farms will have a contractual obligation to produce milk of a standard quality and supply 100% of their production to the dairy company. Like in the case of most contract farming models, the dairy company will pay farmers a pre-determined price (approximately Rs 6/litre) plus premiums for quality and volume. Once the model is perfected it allows for a two directional expansion strategy by increasing size and numbers of 1) nucleus farms, and 2) satellite farms.
In the third model (Retail Procurement Model) we suggest sourcing milk from small and large dairy farmers without owning or controlling dairy farms. Most cooperatives and private dairy companies in India use this approach to source milk. The cooperative usually establishes a milk collection centre at each of its primary milk societies (at village level) covering a few hundred farmers and the farmers deliver milk (usually twice a day) to the collection centre. The milk from each collection centre is then transported to a chilling station or processing plant by the cooperative.
Unlike cooperatives, most private companies do not deal with producers directly but instead work with milk procurement agents at the village level. The dairy company negotiates its terms of trade with the agent and the agent in turn negotiates his terms of trade with the producer. The dairy company supplies the agents with milk coolers (Bulk Milk Tanks/ Vat) and necessary equipment for performing routine milk testing at a milk chilling centre. The costs of running the milk chilling centre are usually borne by the agent. The agent has a contractual obligation to supply milk of standard quality and pre-determined volume to the dairy company. A significant drawback with this model is the high risks associated with milk quality and food safety.
In this model instead of investing in farms, we suggest that the dairy company invest in developing a “milk-shed” or “quality milk catchment area” within a region. This milk shed could comprise of around 1000 local (progressive) dairy farmers. Each farmer would have at least 10 dairy animals (i.e. a total of 10,000 milking animals). The farm would be entirely owned and managed by the dairy farmer. But farms would have to comply with certain mandatory good management practices framed by the dairy company. The dairy company will supply farmers with milking equipment (portable milking machines), support services free of cost, and if required feed (at cost). Milk will be picked form each farm twice a day and transported to one of 10 chilling stations (bulk tanks) by the dairy company. Farmers would be paid a premium price for their milk. Additionally premiums based on quality and volume will also be paid.
dairy processor (either privately owned or a cooperative) with well-developed milk sourcing operations in India. The third party will have a contractual obligation to supply milk of specified standard and volume on a regular basis to the dairy company. Through this approach large volume of milk can be sourced from one or few suppliers, thus eliminating the need to establish the elaborate infrastructure required for sourcing milk directly from producers. A few well known dairy/food companies in India (Nestle, Unilever, and Danone) use this model to meet some of their supply needs. But the strength of this model is heavily dependent upon on the capabilities (integrity!) of the third party. The risks associated with poor milk quality and safety is considerably high for this model. The dairy company would therefore have to invest in developing and implementing milk quality/safety monitoring systems across the supply chain. Also, support services and other incentives (premiums) would need to be provided by the dairy company to promote production and ensure compliance.