Monday, June 27, 2011

Milk Dairies are beyond the pale

If milk becomes more expensive soon it will not be because India has a shortage. It’s because only we urban consumers will get less to drink. The large dairies responsible for our supply have got kicked out of the market. We will pay the price of their exit.

Delhi is the perfect example. Uttar Pradesh produces 25% more milk than world’s largest exporter New Zealand, and 2.5 times production in Gujarat. Punjab and Rajasthan each beat Australia. North India produces almost half of India’s 108 million tonnes milk. In the midst of plenty, how can there be a crisis?

Yet Mother Dairy, owned by the venerable National Dairy Development Board, one of the pioneers of India’s ‘white’ revolution and a big daddy of the industry, doesn’t have enough fresh milk. It buys from dairy cooperatives in Rajasthan, Punjab, Haryana, Uttar Pradesh and even Bihar. It doesn’t subsidise consumers and can afford to pay farmers well. Even so, 30% of its milk is a re-mix of skimmed milk powder and fat. In summer, that share reaches half.

In the West and the South, dairies use it as a last resort to shore up supply in the lean summer months. In Delhi, it is Mother Dairy’s lifeline. If competitors such as Amul (or Gujarat Cooperative Milk Marketing Federation) and private players don’t chip in, Delhi would have milk riots.

The crisis of supply is everywhere. Mumbai needs about 5 million litres milk daily. The three aging state-owned dairies supplying it can together handle only 1 million litres. What gives?

One, it is a question of price. Milk is a premium food with many uses. Dairies compete against each other as well as factories that put it to different use. Farmers don’t care who buys. They sell milk to the highest bidder. All across the country, milk is flowing to private industry because they pay significantly better. Instead of running away at the sight of these giants, the private sector is ready to fight.

Even among dairies, not all are equally good customers. Farmers in UP who sell to government cooperatives are geting almost Rs.4/kg less compared to farmers in Gujarat. Consequently, while some, such as Amul in Gujarat, buy a third of the local production, North Indian cooperatives get less than 5%. In UP, they don’t even buy 2%. For farmers, these cooperatives have become customers of the last resort.

Competition for milk is further compounded by demand outpacing supply. Industry data compendium, "Dairy India 2007", says the sector is growing barely 3% annually. Though some 75 million farmers have milch cattle, they sell only one out of every two litres in the pail. Or about 50 million tonnes is available for urban India.

This year, the cost of milk has risen even faster because drought decimated pastures and green fodder, while protein-rich oil cakes fed to cattle became expensive. So farmers raised their asking price.     There was another complication. The price of meat also doubled in the last one year. Farmers that couldn’t feed their buffaloes or didn’t make enough money from the milk sent their animals to the slaughterhouse. A smaller herd means less milk. Prices rose further.

In other words, the milk market is now a complete dog fight. Offer of even a rupee extra per kilo is often enough to break a rival’s deal. Ranged on the one side are dairies. On the other, factories that make everything from ghee, paneer and ice creams to casein for industrial use. With their reluctance to pay more in the North, and tough competition from private factories as well as private dairies, cooperatives onbiously are not able to bid away enough to meet consumer demand.

Two, cooperatives botched their one significant edge over private companies. They made virtually no investment in farmer productivity and profits. Had they been smarter, dairies would have figured that price may be important but in business, relationships are everything. People prefer to deal with people they trust. Loyalty and commitment between a company and its suppliers can tide over the toughest times. Last year’s economic recession definitely taught us that.

Cooperatives by their very definition ought to have had an unbeatable network of loyal member-farmers. Ironically, most private factories can now boast of much better direct farm linkages.

Mother Dairy, for instance, depends mostly on contractors, state-owned cooperatives and even some private players. These intermediaries end up hugely inflating the cost of milk at factory gate, and Mother Dairy's consumers bear the brunt.

Such dependence is also a supply management nightmare. Imagine what would happen if the FCI stopped buying wheat directly from farmers, did not pay more than private traders, and depended wholly on the limited infrastructure of state corporations.

A deadly mix of competition from meat and milk powder, feeble farmer relationships and management complacency has crippled dairy cooperatives.

The crisis in milk is actually no different to the fight over sugarcane between gur kolhus and sugar mill owners. As they grew, mills became complacent. They underestimated the ability of gur kolhus to pay and the farmer’s ability to find alternatives. Farmers took revenge by refusing to plant cane or selling to it gur factories.  Today we have a sugar crisis but ample gur. Rather like the currently abundant casein but shortage of liquid milk.

Given their enormous headstart and a great business model, state-owned dairy giants could have easily engineered India’s second milk revolution and benefited farmers and consumers alike. After all, New Zealand’s Fonterra, the world’s largest dairy company, is a cooperative. Amul is among the world’s top 20 dairy companies. Sure, milk can become more expensive. Just let it be for the right reasons. As a consumer, I don’t want farmers to subsidise my family. But please don’t ask me to subsidise public sector lethargy either.

They say competition and the market are like water. They go where they want. The milk market shows size and experience are no guarantee of corporate survival. Even the biggest names need the will to fight. Dozens of small fry are now eating the big fish

Got Milk? Kids Who Eat More Dairy Live Longer



 A new study suggests that children who eat more dairy products live longer lives, the BBC reports. Researchers followed up a 1930s study of childhood diets and found that those who had diets rich in milk, butter, and cheese had lower mortality rates from strokes and other causes. The children with high dairy intakes were not likelier to suffer heart disease, despite their higher fat and cholesterol intake.
Those with the highest dairy intake were 23% more likely to still be alive today than those with the lowest intake, researchers found. Experts said that while the study highlights the importance of including calcium-rich foods in a balanced diet, the results should be treated with caution. They pointed out that the children who ate more dairy products tended to come from wealthier families and so had better overall diets.

The more milk and calcium the children consumed the lower their mortality. It is possible that there is an influence of milk drinking on hormonal or growth factors that set you up to be better off in the long term. - Richard Martin, lead author of the study

Friday, June 24, 2011

Career Opportunities in Dairying

Educational facilities for the Dairy sector

Vidya Dairy: India's First Student Dairy

ACADEMIC INSTITUTIONS

Buffalo Milk Vs. Cow Milk

QRs on Import of Dairy Products Removed

Consumers in India will now have a wider variety with the full-scale dismantling of the remaining import curbs at one stroke in the Export-Import (Exim) Policy for 2001-02 announced by the Government of India on March 31, 2001. It signals the domestic industry to shape up or ship out as they will have to compete with global players.

Quantitative restrictions (QRs) have been removed on the import of baby food, SMP, WMP, butter, dairy spreads, ghee, fresh and other cheeses, including processed cheese. These dairy products are among the 715 items on which QRs has been lifted. In addition, import of second-hand capital goods, including equipment, that are less than ten years old will be allowed without obtaining any licence.

The range of basic import duty on the dairy products listed is from 35 to 60 per cent (which can be raised to 120 per cent bound rate duty, if necessary). Any amount of butter and cheese can now be imported on payment of the prescribed customs duty.

The Exim Policy has also made it clear that all imported edible/food products would have to meet the conditions of the Prevention of Food Adulteration Act, 1954 and Rules, 1955 which are currently applicable to products that are manufactured and sold in India. They lay down the definitions and standards of quality for all food commodities. Some of the PFA regulations also deal with labelling requirement, the use of permitted natural and synthetic colours and flavouring agents. It is also mandatory to print the "best before date" along with the month and year. The Act also provides for sampling, inspection and confiscation of food items, along with prescribed penalties for violation. Compliance with these conditions is to be ensured before allowing Customs clearance of the consignment.

Also, all farm commodities and food items will also have to meet the Indian regulations covering health and hygiene. In addition, India's Ministry of Agriculture will issue a bio-safety and SPS (Sanitary and Phyto-Sanitary) permit that will have to be produced before the Customs Officer.

A Standing Group comprising Secretaries of Ministries of Commerce, Revenue, SSI & ARI, Animal Husbandry and Dairying and DGFT would function as a 'war-room' for tracking, collating and analysing data on some 300 "sensitive items of importance to the public". These include dairy products. Every month, the Government would publish a monthly statement about import-status of these items.

The removal of QRs, however, would not leave the Government of India completely exposed. It would still retain three options - import duties, anti-dumping steps and safeguard measures. In the event of unfair trade practices like dumping or subsidization of exports by other countries that may cause injury to the domestic industry, protection under safeguard provisions like the enhancement of import duty, re-imposing of QRs as per WTO regulation, etc, will be available.

The new Exim Policy also places emphasis on promotion of agricultural exports including an appropriate agricultural export policy and launch of Agri Economic Zones, besides extending the Exim schemes such as the Duty Exemption Scheme and the Export Promotion Capital Goods Scheme (EPCG) to the agro sector as well. Yet another step is the Market Access Initiative to underpin industry in R&D, market research, specific market and products studies, warehousing and retail marketing infrastructure in select countries and direct market promotion activity and buyer-seller meets.

For any specific details, please write to: news@IndiaDairy.com
Indian Milk Products Export Regulation Order
The Government of India has notified an order for regulating the exports of milk products from India that calls for subjecting them to quality control inspection prior to their export. These rules aim to help develop India's dairy export. It takes into account the demands and requirements of the world dairy market with the regard to such factors as quality, health requirements, management practices and processing norms.
This comprehensive order bears the title of "Exports of Milk Products (Quality Control, Inspection and Monitoring) Rules 2000" and has come into effect last month from December 12, 2000.
It covers animal health, hygiene in milking production, collection, storage and transportation. It also specifies levels of residues permissible in milk products, microbiological criteria for milk products, packaging, marketing and labelling, storage and transportation requirements, as well as management of herds and dairy plant, employee hygiene and the like.
These rules also mark an important step in upgrading the dairy trade within India and bringing about quality consciousness at all levels of dairying -- from producer to the consumer.

NDDB plans three fold rise in milk procurement

The National Dairy Development Board (NDDB) has drawn up a blueprint for strengthening the cooperative dairy sector. Perspective 2010, as the plan is called, envisaged that milk procurement by cooperatives will increase from the current level of 5.75 million tonnes to 17.8 million tonnes by 2010. The number of dairy cooperative societies will increase from 84,289 to 1,29,480 while membership will increase from 10.62 million to 15.62 million. Milk marketing is expected to rise from the current 4.7 million tonnes to 14 million tonnes.

According to the NDDB Annual Report for 1999-2000 released recently, Perspective 2010 was prepared after NDDB carried out extensive planning exercises with milk cooperative unions and federations across the country. It emphasizes four thrust areas: Strengthening the Cooperative Framework, Productivity Enhancement, Quality and Plant Management and National Information Network.

Thirty-four projects valued at around Rs 2,900 million are currently under execution. In the pipeline are a further 150 projects ranging from expansion of existing processing facilities to setting up of major new dairy plants.

The NDDB Board has already approved the revised lending terms of Perspective 2010. While loans at a very reasonable interest rate are available for building processing capacities, activities related to human resource development, productivity enhancement, quality control and building a national information network will be funded as interest free loans and/or with matching grants.

Currently, research in animal breeding, genetics, nutrition and health are being carried out by the Productivity Enhancement Group. It continued to support the efforts of the cooperatives in enhancing milk production. The Quality Assurance Group worked with cooperatives and unions to identify and address key stages in the quality process, confirming that significant gains can be achieved. Accordingly, 90 per cent of the milk reaching consumers from the cooperatives will be from ISO Certified dairy plants by the year 2010.

The National Information Network Group has initiated development of software and hardware that will link village cooperatives, unions and federations with the NDDB. It has also conducted a number of baseline studies in key milksheds. All cooperative unions will be linked to and through an internet Dairy Information System. About 75 per cent of the unions will use computerised data processing in all major functional areas.

The Perspective 2010 targets call for increased geographical spread, organization of new cooperatives and strengthening of old ones, expanded services and enhanced market.

The 45 cooperative feed plants affiliated to various unions also produced 1.4 million tonnes of cattle feed in 1999-2000, thereby meeting about 50 per cent of the country's supply. It is targetted to increase the daily cattle feed production from 4,066 tonnes to 8,628 tonnes by 2010.

Even though the goals are challenging, NDDB's partnership with federations and unions is well placed to spearhead, a thrust of this magnitude. However, achievement of these objectives will depend in part on an environment where cooperatives can function in a competitive, liberalized economy with the same autonomy and accountability as other forms of enterprise. Also important to success will be favourable trade policies, climatic conditions and the availability of human and material resources.

Thirty six years after NDDB's founding, a nationwide network of dairy cooperatives serves more than 10 million farmers in over 80,000 villages. More than Rs 50,000 million flows back to the milk producers through their cooperatives each year.
Philippe Jachnik, new President of IDF
At the World Dairy Summit 2000 held in Dresden (Germany) from 16-20 September 2000, Philippe Jachnik, Head of Professional and International Relations at the French Dairy Processors' Association (ATLA), was elected unanimously to a four year term as President of the International Dairy Federation (IDF).
Philippe Jachnik succeeds Jerry Kozak, CEO or the American National Milk Producers Federation (NMPF), who was elected in 1996 in Johannesburg. During his Presidency, the IDF's structures and methods of work were profoundly altered and modernized in the context of a Strategic Plan implemented in 1999.
Philippe Jachnik, 51 years old, joined the dairy sector in 1980 when he became Secretary of the European Dairy Association (EDA, which was called Assilec at the time) for a five year period. He was then employed by the FNCL (French Dairy Cooperatives) where he became the Deputy Director, before being taken on at ATLA when it was founded early in the 1990's.

Mastering several languages, Philippe Jachnik, MBA Insead 1979, has done graduate and post-graduate studies in France (IEP Strasbourg), Belgium (College of Europe, Bruges) and Sweden (International Graduate School, Stockholm).

In the nearly 100 years of its existence (the IDF was founded in 1903), this is the second time that a Frenchman has been elected to the office of President. The first time was from 1959 to 1964 when Andre-Marie Guerault, Vice-President of the FNIL (Federation des Industriels Laitiers frangais -- French Dairy Industry Federation -- which, with the FNCL (Federation des Cooperatives Laitieres -- French Dairy Cooperatives Federation) founded ATLA in the early 1990's.

The IDF's mission is to promote and enhance the image, trade, production and consumption of milk and milk products worldwide by collecting and disseminating scientific, technical and economic information and providing a platform for meaningful exchange of professional knowledge and discussion.

The IDF takes up issues that are of priority importance to its 41 National Committees and to the dairy sector. It aims at:
  • being the foremost point of contact for dairy matters worldwide.
  • providing credible, quality service to all our audiences in a timely way.
The IDF publishes a Bulletin and organizes a range of Conferences or Symposia. Currently, it is in the process of setting up a comprehensive Intranet (which will be developed further into an Extranet).

The IDF cooperates with numerous international structures and organizations, including the Codex Alimentarius, arising from the FAO (Rome) and the WHO (Geneva).

For more information about IDF, kindly visit:
http://www.fil-idf.org
NDDB-Zambia MoU on dairy developmentThe Union Cabinet has given its approval to the memorandum of understanding (MoU) signed between India's National Dairy Development Board (NDDB) and the Zambian government for increasing cooperation in the field of development of dairy products.
The MoU seeks to encourage cooperation in the field of dairy science and technology with the objective of increasing dairy production. The objective would be achieved through engagement of joint activities in the areas of dairy development including milk production, procurement, processing, marketing, biotechnology and management of dairy cooperatives.
Amul Says Cheese to the Cyber WorldThe Anand-based Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF), India's largest food products marketing organization, has embarked upon a major e-marketing plan with a focus on increasing its sales and customer reach in India. The plan envisages formation of new Amul Icecream Cyberstores in 100 cities, launch of Amul Cyber clubs in 125 cities, and create four global e-commerce hubs in US, Dubai, India and Singapore. In addition, it will also upgrade gifting services and to evolve the Amul family site as a customized portal for kids, teens and homemakers. GCMMF has already launched Amul Cyberstore in USA in March 1999 and similar cyberstore in India in June 1999. It has launched www.AmulMail.com in September 1999.
National Productivity Awards for DairiesThe Hon'ble Vice-President of India, Mr Krishan Kant, presented awards to Mother Dairy (Delhi), Gokul Dairy (Kolhapur), Baroda Dairy (Baroda) and TIMUL (Muzaffarpur) at the recent 15th National Productivity Awards function held in New Delhi.
The Mother Dairy, Delhi has won the Best Productivity Award (1997-98) third time in a row in the dairy and development production sector. Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd (Gokul Dairy), Kolhapur, Maharashtra, has won the Certificate of Merit (1997-98), 13th award in succession, in the category of animal feed processing industry. The Baroda District Cooperative Milk Producers Union Ltd, Baroda, Gujarat, received the award for the Best Dairy Products Unit. The Tirhut Dugdh Utpadak Sahakari Sangh Ltd (TIMUL), Muzaffarpur, Bihar, was given the Best Productivity Award (1998-99) in the category of dairy processing industry and the Certificate of Merit (1997-98) in dairy development and production sector.
GCMMF in strategic alliance with CAMPCOIndia's Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) is finalizing a deal with the Rs 200-crore Mangalore-based CAMPCO Ltd, a cooperative of arecanut farmers in Karnataka and Kerala (South India). The strategic alliance will give GCMMF access to an additional 3,000 tonnes of cocoa beans and enable it to expand its chocolate business, tripling its current capacity of 1,500 tonnes. The move marks a comeback for GCMMF's Amul brand chocolates after it was edged out of reckoning by competitors Nestle and Cadbury with aggressive product launches and promotions. Post-tieup, the company intends to come out with a wider range, more flavours and better quality of chocolates -- with the Amul name.
Keventer ties-up with Vijaya for UHT MilkKeventer Agro Limited (KAL), Calcutta, the joint venture partner of India's National Dairy Development Board in Metro Dairy Ltd, Calcutta, has tied up with the Andhra Pradesh Dairy Development Cooperative Federation Ltd (Vijaya), Hyderabad, to foray into the UHT milk in Tetra Pak. For the century-old company, which pioneered the speciality food chains and dairy products in India, it is a second time foray into the segment. The company has tied up with Vijaya for launching the 100 per cent pure UHT milk and plans to set up its own plant in Calcutta in the future.
Hindustan Lever Ltd sets up softy kiosksHindustan Lever Ltd (HLL) will mark its entry into the softy ice cream segment by setting up softy kiosks in all major metros of India starting with Chennai (Madras). Traditionally, the domain of small time restaurants and independent outlets, the concept of branding was largely absent in the softy segment. HLL Kwality Wall's will be the first national player to offer softy at Rs 5 per cone. Through its softy business, HLL seeks to double the size of the organized ice cream market in India in a couple of years. This market is currently valued at Rs 10,000 million.
Bengal Nestor's to set up two dairy farms in West BengalBengal Nestor's Industries Ltd (BNIL), a 51:49 per cent joint venture between Purusottam Jalan and West Bengal Industrial Development Corporation (WBIDC), will set up two dairy-cum-model farms in West Bengal in Eastern India. The total capital outlay for both projects is estimated at Rs 300 million. The first such farm is at Aushgram in Bardhaman District of West Bengal. The second project at Panskura in Midnapore district is expected to come up by the end of 2001.
Wells Blue Bunny unveils ice-cream rangeThe US-based $600 million Wells Blue Bunny, a leading ice-cream manufacturer has announced its plans to launch its product range in India's western and southern markets. After test-marketing the range in New Delhi, the company has now launched its new range of frozen desserts and ice-creams in Mumbai (Bombay). Sno Shack Frozen Foods, the marketing partner of Blue Bunny, has plans to import over 25 varieties of exotic novelties, frozen desserts and diet special ice-creams of Blue Bunny into India. It is targeted at the premium segment with the price ranging between Rs 20 for an ice-candy and Rs 450 for half-gallon (1.89 litres). The cups are available at Rs 30 for a 118-ml of serving.
R.C. Chadha, new Chairman of CLFMAMr R C Chadha, Chairman & Managing Director of Poshak Feeds Pvt Ltd, Hyderabad, was unanimously elected as the Chairman of CLFMA for the year 2000-2001 at the recent 33rd Annual General Body Meeting of the CLFMA (Compound Livestock Feed Manufacturers' Association of India) held in Pune. Dr K Srinivasan, General Manager (R&D) of Goldmohur Foods & Feeds Ltd, Bangalore (100% subsidiary of Hindustan Lever Ltd); and, Dr Sanjay Dronawat, Director of Yarana Feeds & Farms, Hubli (Karnataka) were elected unanimously as the Deputy Chairmen of CLFMA. At the first meeting of the newly elected Managing Committee, Mr C Vasanthkumar, Managing Director of Komarla Feeds & Foods Pvt Ltd, Miraj (Maharashtra), was elected unanimously as the Honorary Secretary to CLFMA. Dr S V Vaidya, the retiring Chairman of CLFMA & Chief Executive, Agro Division of Nav Maharashtra Chakan Oil Mills Ltd would be the Ex-Officio member of the Managing Committee.
42nd National Symposium of CLFMAThe Compound Livestock Feed Manufacturer's Association of India (CLFMA), the Indian feed manufacturers' representative body, organized its 42nd National Symposium on "Global Trends in Animal Nutritional Technologies" on September 16, 2000 in Pune, Maharashtra State of Western India.
The Symposium had two technical sessions. The first session was chaired by Dr B V Rajmane. Three speakers from India and abroad made presentations -- Dr Rangesh Paramesh, Medical Advisor (R&D Centre), The Himalaya Drug Co, Bangalore, on "Role of Herbs in Animal Nutrition"; Dr Roelof Raterink, Director (Research & Technology), Provimi Holding, Brussels, Belgium, on "Animal Nutrition in the Twenty-First Century"; and, Dr Naheeda Khan, Marketing Manager (Feed Enzymes), Novo Nordisk Enzymes Ltd, Bagsvaerd, Denmark on "Recent Developments in the Use of Enzymes in Animal Feeds".
The second technical session was chaired by Dr P A Deore. The three speakers who made presentations at this Session were: Dr Friedhelm Brinkhaus, Manager (Research & Ops), Kemin Bio-Technology Inc, Iowa, USA on "Sourcing and Application of Genetic Material for Animal Nutrition"; Dr Isabelle Brongniart, Nutritionist, Guyomrch Nutrition Animale, France; and, Dr Royce A Samford, Agricultural Consultant (Animal Nutrition), USA on "Current Trends in Indian Livestock Nutrition and Management".
There were very active, thought-provoking and prolonged deliberations by participants at the two technical sessions, which provided ample scope for sharing of knowledge and information.
KK Cans enters bulk milk cooler marketKhambete Kothari Cans & Allied Products Pvt Ltd, India's largest manufacturer of aluminium alloy milk cans, has entered the bulk milk cooler market through a tie-up with FIC SpA of Italy.
The Jalgaon (Maharashtra)-based company is already marketing bulk coolers in the country under the `frigomilk' brand. A wide range of capacities from 100 litres to 14,000 litres are being offered. The cooler tanks come in vertical open-type, horizontal open-type as well as cylindrical closed tank type designs. Presently, only the condensers are being fabricated here and the entire stainless steel tank is being imported from Italy. A separate joint venture company with FIC SpA will be set up in early 2001 for manufacturing the seamless tanks in India. The bulk milk cooler segment already has major players such as DeLaval Ltd (formerly Alfa Laval Agri (India), Pune; Indo Stainless Fabtech Pvt Ltd, Chennai; Praj Industries Ltd, Pune; and, Westfalia Separator India Pvt Ltd, New Delhi.
With a Rs 150-million turnover, KKCAP currently has a 60 per cent share in the domestic milk can market. It has recently begun manufacturing stainless steel milk cans, with capacities ranging from 5 to 50 litres. The company also plans to soon enter the production of automatic milking machines, to complement its existing milk can and bulk cooler business.
Write-up on Indian Milk ProductsDairy/food specialists and organizations in the public, cooperative and private sectors in India and abroad engaged in the scientific production of traditional milk products are invited to document their experience for publication in the forthcoming reference book on the Technology of Indian Milk Products, now being readied for the press.
Data and other significant aspects of traditional milk products by way of information on products, equipment/processes developed may also be sent for inclusion in the reference book. A Who's Who section in it will publish profile and achievements of leading dairy players. The type of information we are seeking includes the following:
(a) Technical and economic characteristic of ethnic dairy products, including its composition, origin, uses and the size and share of market;
(b) Process details of upgraded technology in use;
(c) Development/adaptation of new ethnic products, equipment, packaging, quality control, etc;
(d) List of dairy units in India and abroad engaged in the production of ethnic dairy products like ghee, kheer (milk-rice pudding) and other traditional dairy desserts and other sweets. Their production may be in addition to other products like liquid milk, cheese, butter, etc; and,
(e) A list of centres where R&D work in this field is being carried out, with their address and the name of scientist-in-charge.
This reference compendium aims to serve as a practical guide to recommended manufacturing practices, benefitting dairy producers, extension workers, professionals and entrepreneurs as well as a reference book for R & D scientists, students and scholars.
The compilation work on the reference book was started in 1997 at the initiative of a group of senior dairy professionals headed by Dr R.P. Aneja, a noted international dairy consultant and formerly Managing Director, National Dairy Development Board (NDDB). Its other four co-authors are: Dr B.N. Mathur, Director, National Dairy Research Institute (NDRI), Karnal; Dr R.C. Chandan, President, Global Technologies, Inc, Min, USA; Mr A.K. Banerjee, formerly Director (Engineering), NDDB; and, Prof L.K. Vaswani, Institute of Rural Management (IRMA), Anand.
Further details can be had from: The Editor, Technology of Indian Milk Products, c/o Dairy India, A-25 Priyadarshini Vihar, Delhi 110092; Phones: (011) 2243326, 2045681, Telefax: (011) 2243039, Email: yearbook@vsnl.com or from the website at:
http://www.IndiaDairy.com/impbook.html.
"IndiaDairy.com" or "Dairy India Yearbook" will not be held responsible for the comments or advice given under this section. We trust the information we have provided is useful to you.
Reference to any specific commercial product, process, or service does not constitute endorsement, recommendation, or preference by "IndiaDairy.com" or by "Dairy India Yearbook"
Amrita Patel conferred Padma Bhusan
The President of India, Shri K R Narayanan conferred on Dr Amrita Patel, Chairman, National Dairy Development Board (NDDB), the Padma Bhusan at a glittering function in New Delhi in the presence of a distinguished gathering. Dr Patel receives this award for her contributions in the field of dairying and specially for her role in shaping Operation Flood.
Dr Patel, first as Managing Director and later as Chairman of NDDB, played a pivotal role in conceiving, planning and implementing Operation Flood - India's major dairy development programme responsible for making the country not only self-sufficient in milk but also the world's largest milk producer. The programme, unparalleled in scale, scope and impact, has helped promote, finance and rehabilitate the national dairy cooperative structure that presently comprises over 10 million members of about 84,000 village dairy cooperative societies, affiliated to 173 district unions and 22 state dairy federations.
Dr Amrita Patel after graduating in Veterinary Science underwent an advanced training in Animal Nutrition at the Rowett Research Institute in UK. Dr Patel joined Amul in 1965 and thereafter the NDDB in 1971. Her organizing skills were demonstrated as Secretary-General of the International Dairy Congress which India hosted in 1974 and the setting up of India's largest Foot-and- Mouth Disease (FMD) vaccine plant in Hyderabad (Andhra Pradesh). She rose through the ranks of NDDB and took over from the founder-Chairman, Dr V Kurien in 1998. She has held several important positions, including that of Mission Director of the Technology Mission on Dairy Development (TMDD).

Thursday, June 23, 2011

Dairy Farming

Dairy farming
A rotary milking parlor
Dairy farming is a class of agricultural, or an animal husbandry, enterprise, for long-term production of milk, usually from dairy cows but also from goats and sheep, which may be either processed on-site or transported to a dairy factory for processing and eventual retail sale.
Most dairy farms sell the male calves born by their cows, usually for veal production, or breeding depending on quality of the bull calf, rather than raising non-milk-producing stock.[citation needed] Many dairy farms also grow their own feed, typically including corn, alfalfa, and hay. This is fed directly to the cows, or is stored as silage for use during the winter season.


History
Woman hand milking a cow
Dairy farming has been part of agriculture for thousands of years. Historically it has been one part of small, diverse farms. In the last century or so larger farms doing only dairy production have emerged. Large scale dairy farming is only viable where either a large amount of milk is required for production of more durable dairy products such as cheese, butter, etc. or there is a substantial market of people with cash to buy milk, but no cows of their own.
Hand milking
Centralized dairy farming as we understand it primarily developed around villages and cities, where residents were unable to have cows of their own due to a lack of grazing land. Near the town, farmers could make some extra money on the side by having additional animals and selling the milk in town. The dairy farmers would fill barrels with milk in the morning and bring it to market on a wagon. Until the late 19th century, the milking of the cow was done by hand. In the United States, several large dairy operations existed in some northeastern states and in the west, that involved as many as several hundred cows, but an individual milker could not be expected to milk more than a dozen cows a day. Smaller operations predominated.
For most herds, milking took place indoors twice a day,[1] in a barn with the cattle tied by the neck with ropes or held in place by stanchions. Feeding could occur simultaneously with milking in the barn, although most dairy cattle were pastured during the day between milkings. Such examples of this method of dairy farming are difficult to locate, but some are preserved as a historic site for a glimpse into the days gone by. One such instance that is open for this is at Point Reyes National Seashore.[2]
Vacuum bucket milking
Demonstration of a new Soviet milker device. East Germany, 1952
The first milking machines were an extension of the traditional milking pail. The early milker device fit on top of a regular milk pail and sat on the floor under the cow. Following each cow being milked, the bucket would be dumped into a holding tank. This developed into the Surge hanging milker. Prior to milking a cow, a large wide leather strap called a surcingle was put around the cow, across the cow's lower back. The milker device and collection tank hung underneath the cow from the strap. This innovation allowed the cow to move around naturally during the milking process rather than having to stand perfectly still over a bucket on the floor.
With the availability of electric power and suction milking machines, the production levels that were possible in stanchion barns increased but the scale of the operations continued to be limited by the labor intensive nature of the milking process. Attaching and removing milking machines involved repeated heavy lifting of the machinery and its contents several times per cow and the pouring of the milk into milk cans. As a result, it was rare to find single-farmer operations of more than 50 head of cattle.
Step-Saver milk transport
As herd size began to increase, the bucket milker system became laborious. A vacuum milk-transport system known as the Step-Saver was developed to transport milk to the storage tank. The system used a long vacuum hose coiled around a receiver cart, and connected to a vacuum-breaker device in the milkhouse, allowing farmers to milk many cows without the necessity of walking increasingly longer distances carrying heavy buckets of milk.
Milking pipeline
The next innovation in automatic milking was the milk pipeline. This uses a permanent milk-return pipe and a second vacuum pipe that encircles the barn or milking parlor above the rows of cows, with quick-seal entry ports above each cow. By eliminating the need for the milk container, the milking device shrank in size and weight to the point where it could hang under the cow, held up only by the sucking force of the milker nipples on the cow's udder. The milk is pulled up into the milk-return pipe by the vacuum system, and then flows by gravity to the milkhouse vacuum-breaker that puts the milk in the storage tank. The pipeline system greatly reduced the physical labor of milking since the farmer no longer needed to carry around huge heavy buckets of milk from each cow.
The pipeline allowed barn length to keep increasing and expanding, but after a point farmers started to milk the cows in large groups, filling the barn with one-half to one-third of the herd, milking the animals, and then emptying and refilling the barn. As herd sizes continued to increase, this evolved into the more efficient milking parlor.
Milking parlors
Innovation in milking focused on mechanizing the milking parlor (known in New Zealand as a milking shed)to maximize throughput of cows per operator which streamlined the milking process to permit cows to be milked as if on an assembly line, and to reduce physical stresses on the farmer by putting the cows on a platform slightly above the person milking the cows to eliminate having to constantly bend over. Many older and smaller farms still have tie-stall or stanchion barns, but worldwide a majority of commercial farms have parlors.
The milking parlor allowed a concentration of money into a small area, so that more technical monitoring and measuring equipment could be devoted to each milking station in the parlor. Rather than simply milking into a common pipeline for example, the parlor can be equipped with fixed measurement systems that monitor milk volume and record milking statistics for each animal. Tags on the animals allow the parlor system to automatically identify each animal as it enters the parlor.A building also gives shelter to the animals and the milkerfrom extremes of weather.
Recessed parlors
More modern farms use recessed parlors, where the milker stands in a recess such that his arms are at the level of the cow's udder. Recessed parlors can be herringbone, where the cows stand in two angled rows either side of the recess and the milker accesses the udder from the side, parallel, where the cows stand side-by-side and the milker accesses the udder from the rear or, more recently, rotary (or carousel), where the cows are on a raised circular platform, facing the center of the circle, and the platform rotates while the milker stands in one place and accesses the udder from the rear. There are many other styles of milking parlors which are less common.
Herringbone and parallel parlors
In herringbone and parallel parlors, the milker generally milks one row at a time. The milker will move a row of cows from the holding yard into the milking parlor, and milk each cow in that row. Once all or most of the milking machines have been removed from the milked row, the milker releases the cows to their feed. A new group of cows is then loaded into the now vacant side and the process repeats until all cows are milked. Depending on the size of the milking parlor, which normally is the bottleneck, these rows of cows can range from four to sixty at a time.
Rotary parlors
In rotary parlors, the cows are loaded one at a time onto the platform as it slowly rotates. The milker stands near the entry to the parlor and puts the cups on the cows as they move past. By the time the platform has completed almost a full rotation, another milker or a machine removes the cups and the cow steps backwards off the platform and then walks to its feed. Rotary cowsheds, as they are called in New Zealand, started in the 1980s[3][4] but are expensive compared to Herringbone cowshed - the older New Zealand norm[5]. To justify the costs herds have got bigger with 1 person milking 500-600 cows.[citation needed] A rotary is about 25% faster than a herringbone shed for the same number of cows.[citation needed]
Automatic milker take-off
It can be harmful to an animal for it to be over-milked past the point where the udder has stopped releasing milk. Consequently the milking process involves not just applying the milker, but also monitoring the process to determine when the animal has been milked out and the milker should be removed. While parlor operations allowed a farmer to milk many more animals much more quickly, it also increased the number of animals to be monitored simultaneously by the farmer. The automatic take-off system was developed to remove the milker from the cow when the milk flow reaches a preset level, relieving the farmer of the duties of carefully watching over 20 or more animals being milked at the same time.This is a standard procedure in New Zealand.

Fully automated robotic milking
In the 1980s and 1990s, robotic milking systems were developed and introduced (principally in the EU). Thousands of these systems are now in routine operation. In these systems the cow has a high degree of autonomy to choose her time of milking within pre-defined windows. These systems are generally limited to intensively managed systems although research continues to match them to the requirements of grazing cattle and to develop sensors to detect animal health and fertility automatically.
History of milk preservation methods
Cool temperature has been the main method by which milk freshness has been extended. When windmills and well pumps were invented, one of its first uses on the farm besides providing water for animals was for cooling milk, to extend the storage life before being transported to the town market.
The naturally cold underground water would be continuously pumped into a tub or other containers of milk set in the tub to cool after milking. This method of milk cooling was extremely popular before the arrival of electricity and refrigeration.
Refrigeration
When refrigeration first arrived (the 19th century) the equipment was initially used to cool cans of milk, which were filled by hand milking. These cans were placed into a cooled water bath to remove heat and keep them cool until they were able to be transported to a collection facility. As more automated methods were developed for harvesting milk, hand milking was replaced and, as a result, the milk can was replaced by a bulk milk cooler. 'Ice banks' were the first type of bulk milk cooler. This was a double wall vessel with evaporator coils and water located between the walls at the bottom and sides of the tank. A small refrigeration compressor was used to remove heat from the evaporator coils. Ice eventually builds up around the coils, until it reaches a thickness of about three inches surrounding each pipe, and the cooling system shuts off. When the milking operation starts, only the milk agitator and the water circulation pump, which flows water across the ice and the steel walls of the tank, are needed to reduce the incoming milk to a temperature below 5 degrees.
This cooling method worked well for smaller dairies, however was fairly inefficient and was unable to meet the increasingly higher cooling demand of larger milking parlors. In the mid-1950s direct expansion refrigeration was first applied directly to the bulk milk cooler. This type of cooling utilizes an evaporator built directly into the inner wall of the storage tank to remove heat from the milk. Direct expansion is able to cool milk at a much faster rate than early ice bank type coolers and is still the primary method for bulk tank cooling today on small to medium sized operations.
Another device which has contributed significantly to milk quality is the plate heat exchanger (PHE). This device utilizes a number of specially designed stainless steel plates with small spaces between them. Milk is passed between every other set of plates with water being passed between the balance of the plates to remove heat from the milk. This method of cooling can remove large amounts of heat from the milk in a very short time, thus drastically slowing bacteria growth and thereby improving milk quality. Ground water is the most common source of cooling medium for this device. Dairy cows consume approximately 3 gallons of water for every gallon of milk production and prefer to drink slightly warm water as opposed to cold ground water. For this reason, PHE's can result in drastically improved milk quality, reduced operating costs for the dairymen by reducing the refrigeration load on his bulk milk cooler, and increased milk production by supplying the cows with a source of fresh warm water.
Plate heat exchangers have also evolved as a result of the increase of dairy farm herd sizes in the US. As a dairyman increases the size of his herd, he must also increase the capacity of his milking parlor in order to harvest the additional milk. This increase in parlor sizes has resulted in tremendous increases in milk throughput and cooling demand. Today's larger farms produce milk at a rate which direct expansion refrigeration systems on bulk milk coolers cannot cool in a timely manner. PHE's are typically utilized in this instance to rapidly cool the milk to the desired temperature (or close to it) before it reaches the bulk milk tank. Typically, ground water is still utilized to provide some initial cooling to bring the milk to between 55 and 70 °F (21 °C). A second (and sometimes third) section of the PHE is added to remove the remaining heat with a mixture of chilled pure water and propylene glycol. These chiller systems can be made to incorporate large evaporator surface areas and high chilled water flow rates to cool high flow rates of milk.
Milking operation
Milking machines are held in place automatically by a vacuum system that draws the ambient air pressure down from 15 to 21 pounds per square inch (100 to 140 kPa) of vacuum. The vacuum is also used to lift milk vertically through small diameter hoses, into the receiving can. A milk lift pump draws the milk from the receiving can through large diameter stainless steel piping, through the plate cooler, then into a refrigerated bulk tank.
Milk is extracted from the cow's udder by flexible rubber sheaths known as liners or inflations that are surrounded by a rigid air chamber. A pulsating flow of ambient air and vacuum is applied to the inflation's air chamber during the milking process. When ambient air is allowed to enter the chamber, the vacuum inside the inflation causes the inflation to collapse around the cow's teat, squeezing the milk out of teat in a similar fashion as a baby calf's mouth massaging the teat. When the vacuum is reapplied in the chamber the flexible rubber inflation relaxes and opens up, preparing for the next squeezing cycle.
It takes the average cow three to five minutes to give her milk. Some cows are faster or slower. Slow-milking cows may take up to fifteen minutes to let down all their milk. Milking speed is only minorly related to the quantity of milk the cow produces — milking speed is a separate factor from milk quantity; milk quantity is not determinative of milking speed. Because most milkers milk cattle in groups, the milker can only process a group of cows at the speed of the slowest-milking cow. For this reason, many farmers will cull slow-milking cows.
The extracted milk passes through a strainer and plate heat exchangers before entering the tank, where it can be stored safely for a few days at approximately 42 °F (6 °C). At pre-arranged times, a milk truck arrives and pumps the milk from the tank for transport to a dairy factory where it will be pasteurized and processed into many products.
Animal waste from large dairies
Dairy CAFO - EPA
As measured in phosphorus, the waste output of 5,000 cows roughly equals a municipality of 70,000 people.[6] In the U.S., dairy operations with more than 1,000 cows meet the EPA definition of a CAFO (Concentrated Animal Feeding Operation), and are subject to EPA regulations.[7] For example, in the San Joaquin Valley of California a number of dairies have been established on a very large scale. Each dairy consists of several modern milking parlor set-ups operated as a single enterprise. Each milking parlor is surrounded by a set of 3 or 4 loafing barns housing 1,500 or 2,000 cattle. Some of the larger dairies have planned 10 or more series of loafing barns and milking parlors in this arrangement, so that the total operation may include as many as 15,000 or 20,000 cows. The milking process for these dairies is similar to a smaller dairy with a single milking parlor but repeated several times. The size and concentration of cattle creates major environmental issues associated with manure handling and disposal, which requires substantial areas of cropland (a ratio of 5 or 6 cows to the acre, or several thousand acres for dairies of this size) for manure spreading and dispersion, or several-acre methane digesters. Air pollution from methane gas associated with manure management also is a major concern. As a result, proposals to develop dairies of this size can be controversial and provoke substantial opposition from environmentalists including the Sierra Club and local activists.[8][9]
The potential impact of large dairies was demonstrated when a massive manure spill occurred on a 5,000-cow dairy in Upstate New York, contaminating a 20-mile (32 km) stretch of the Black River, and killing 375,000 fish. On Aug. 10, 2005, a manure storage lagoon collapsed releasing 3,000,000 US gallons (11,000,000 l; 2,500,000 imp gal) of manure into the Black River. Subsequently the New York Department of Environmental Conservation mandated a settlement package of $2.2 million against the dairy.[6]
When properly managed, dairy and other livestock waste, due to its nutrient content (N, P, K), makes an excellent fertilizer promoting crop growth, increasing soil organic matter, and improving overall soil fertility and tilth characteristics. Most dairy farms in the United States are required to develop nutrient management plans for their farms, to help balance the flow of nutrients and reduce the risks of environmental pollution. These plans encourage producers to monitor all nutrients coming onto the farm as feed, forage, animals, fertilizer, etc. and all nutrients exiting the farm as product, crop, animals, manure, etc.[10] For example, a precision approach to animal feeding results in less overfeeding of nutrients and a subsequent decrease in environmental excretion of nutrients, such as phosphorus. In recent years, nutritionists have realized that requirements for phosphorus are much lower than previously thought.[11] These changes have allowed dairy producers to reduce the amount of phosphorus being fed to their cows with a reduction in environmental pollution.[12]
In New Zealand the average dairy farmer has 500 cows which are milked twice per day taking about 2 hours per milking.[citation needed] All cows are grazed on grass pasture.[clarification needed] Dung and urine from the milking shed is flushed into drains by large high pressure hoses, which lead to open pits. Over time the solid matter settles to the bottom and is removed by truck about once per year. The relatively clean water is allowed to percolate through natural swamp and creeks back to major rivers. Local authorities check that water entering rivers meets minimum standards. Farmers are fined and forced to change their systems to meet the standards. Repeated infringement means the farm is closed down. Local councils often supply large numbers of native swamp plants grown in their own nurseries to farmer at a low cost. Planting is also done by environmental groups, and schools as part of their science program and groups of unemployed on relief work.[citation needed]
Use of hormones
It is possible to maintain higher milk production by injecting cows with growth hormones known as recombinant BST or rBST, but this is controversial due to its effects on animal and possibly human health. The European Union, Japan, Australia, New Zealand and Canada have banned its use[13][14] due to these concerns.
In the US however, no such prohibition exists, and approximately 17.2% of dairy cows are treated in this way.[15] The U.S. Food and Drug Administration states that no "significant difference" has been found between milk from treated and non-treated cows[16] but based on consumer concerns several milk purchasers and resellers have elected not to purchase milk produced with rBST. [17][18] [18] [19] [20]
Management of the herd
Modern dairy farmers use milking machines and sophisticated plumbing systems to harvest and store the milk from the cows, which are usually milked two or three times daily. In New Zealand some[clarification needed] farmers seeking a better life style, are milking only once per day, trading a slight reduction in production of milk for increased leisure time.[21] During the summer months, cows may be turned out to graze in pastures, both day and night, and are brought into the barn to be milked.
Barns may also incorporate tunnel ventilation into the architecture of the barn structure.[22] This ventilation system is highly efficient and involves opening both ends of the structure allowing cool air to blow through the building. Farmers with this type of structure keep cows inside during the summer months to prevent sunburn[clarification needed] and damage to udders. During the winter months the cows may be kept in the barn, which is warmed by their collective body heat. Even in winter, the heat produced by the cattle requires the barns to be ventilated for cooling purposes. Many[clarification needed] modern facilities, and particularly those in tropical areas, keep all animals inside at all times to facilitate herd management.
Housing can be either loose in stalls (called cow cubicles in UK). There is little research available on dimensions required for cow stalls, and much housing can be out of date, however increasingly companies are making farmers aware of the benefits, in terms of animal welfare, health and milk production.[citation needed]
In the southern hemisphere such as in Australia and New Zealand, cows spend most of their lives outside on pasture, although they may receive supplementation during periods of low pasture availabliity.[23] Typical supplementary feeds in Australasia are hay, silage or ground maize. The trend in New Zealand is towards feeding cows on a concrete pad to prevent loss of feed by trampling. In New Zealand slower growing winter pasture is rationed. It is carefully controlled by light weight portable electric break feeding fences run on mains power that can be easily repositioned.
The production of milk requires that the cow be in lactation, which is a result of the cow having given birth to a calf. The cycle of insemination, pregnancy, parturition, and lactation, followed by a "dry" period of about two months before calving which allows udder tissue to regenerate. Dairy operations therefore include both the production of milk and the production of calves. Bull calves are either castrated and raised as steers for beef production or veal.
Health and well-being
Common ailments affecting dairy cows include infectious disease (e.g. mastitis, endometritis and digital dermatitis), metabolic disease (e.g. milk fever and ketosis) and injuries caused by their environment (e.g. hoof and hock lesions).[24]
Lameness is commonly considered one of the most significant animal welfare issues for dairy cattle.[24][25][26][27] It can be caused by a number of sources, including infections of the hoof tissue (e.g. fungal infections that cause dermatitis) and physical damage causing bruising or lesions (e.g. ulcers or hemorrhage of the hoof).[27] While housing and management features common in modern conventional dairy farms (such as concrete barn floors, limited access to pasture and suboptimal bed-stall design) have been identified as contributing risk factors,[28] small farms in developing countries can also demonstrate high rates.[29]
Market
Holstein cows on a dairy farm, Comboyne, New South Wales
There is a great deal of variation in the pattern of dairy production worldwide. Many countries which are large producers consume most of this internally, while others (in particular New Zealand), export a large percentage of their production. Internal consumption is often in the form of liquid milk, while the bulk of international trade is in processed dairy products such as milk powder.
Worldwide, the largest producer is India, the largest exporter is New Zealand,[30][31] and the largest importer is Japan.

World production
Rank
Country
Production (109kg/y)[32]
1
114.4
2
79.3
3
35.2 (needs validation)
4
32.5
5
28.5
6
28.5
7
26.2
8
24.2
9
17.3
10
13.9
11
12.2
12
12
13
11.5
14
11.0
15
10.6
16
10.2
17
9.6
18
8.7
19
8.5
20
8.1

European Union
The European Union is the largest milk producer in the world, with 143.7 million tonnes in 2003. This data, encompassing the present 25 member countries, can be further broken down into the production of the original 15 member countries, with 122 million tonnes, and the new 10 mainly former Eastern European countries with 21.7 million tonnes.
Dairy production is heavily distorted due to the Common Agricultural Policy—being subsidized in some areas, and subject to production quotas in other.

Rank
Country
Production (109kg/y)[33]
1
28.5
2
24.6
3
15.0
4
11.9
5
11.0
6
10.8
7
6.6
8
5.4
9
4.7
10
3.2
11
3.2
12
3.1
13
2.7
14
2.5
15
1.9
16
1.9
17
1.8

United States
In the United States, the top five dairy states are, in order by total milk production; California,[34] Wisconsin, Idaho, New York and Pennsylvania.[35] Dairy farming is also an important industry in Florida, Minnesota, Ohio and Vermont.[36] There are 65,000 dairy farms in the United States.[37]
Pennsylvania, however, is the state with the heaviest dependence on dairy farming — there it is the number one industry. Pennsylvania is home to 8,500 farms and 555,000 dairy cows. Milk produced in Pennsylvania yields about US$1.5 billion in farm revenue every year, and is sold to various states up and down the east coast.[38]
Milk prices collapsed in 2009. Senator Bernie Sanders accused Dean Foods of controlling 40% of the country's milk market. He has requested the United States Department of Justice to pursue `an anti-trust investigation.[39] Dean Foods says it buys 15% of the country's raw milk.[40]
Competition
Most milk-consuming countries have a local dairy farming industry, and most producing countries maintain significant subsidies and trade barriers to protect domestic producers from foreign competition[citation needed], but New Zealand, the largest dairy exporting country, does not apply any subsidies to dairy production.[41]
The milking of cows was traditionally a labor-intensive operation and still is in less developed countries. Small farms need several people to milk and care for only a few dozen cows, though for many farms these employees have traditionally been the children of the farm family, giving rise to the term "family farm".
Advances in technology have mostly led to the radical redefinition of "family farms" in industrialized countries such as the United States. With farms of hundreds of cows producing large volumes of milk, the larger and more efficient dairy farms are more able to weather severe changes in milk price and operate profitably, while "traditional" very small farms generally do not have the equity or cash flow to do so. The common public perception of large corporate farms supplanting smaller ones is generally a misconception, as many small family farms expand to take advantage of economies of scale, and incorporate the business to limit the legal liabilities of the owners and simplify such things as tax management.[citation needed]
Before large scale mechanization arrived in the 1950s, keeping a dozen milk cows for the sale of milk was profitable.[citation needed] Now most dairies must have more than one hundred cows being milked at a time in order to be profitable, with other cows and heifers waiting to be "freshened" to join the milking herd . In New Zealand the average herd size, for the 2009/2010 season, is 376 cows. [42]
Herd size in the US varies between 1,200 on the West Coast and Southwest, where large farms are commonplace, to roughly 50 in the Northeast, where land-base is a significant limiting factor to herd size. The average herd size in the U.S. is about one hundred cows per farm.[citation needed]
Currently, concerns regarding monopolies created by Dean Foods, Kraft, and other major buyers of bulk dairy products on the Chicago Mercantile Exchange have been raised, as American dairy farms have suffered extreme price depression and chaotic fluctuations while processors and retailers report record profits. Many theorize that unregulated imports of milk protein concentrate used by processors to boost cheese yield has artificially and unfairly influenced the markets in an effort to force consolidation and vertical integration in what has historically been a highly diversified industry.