Dairy-based Livelihoods
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litres was set up. In 2012, a third BMC of
5,000 litres was added and at present the
installed storage capacity is 13,000 litres.
The peak procurement is 12,000 litres during
the winter months and comes down to 40
per cent during the summermonths. Average
procurement has been 4,800 litres per day.
It was crucial to open the supply lines
with different bulk purchasers of milk to
get a good price for the milk collected at the
diary. When Maitree started its operations
in Tonk, there were no other comparable
institutional players. As a result, Maitree
was able to get a good supply of milk from
its members and a good price from the local
vendors. However, to organise the milk
collection centres, milk routes and also to
ensure payments based on fat content as
per individual pourer, were the major chal-
lenges faced and tackled by the federation
leaders with the support of SRIJAN profes-
sionals. Apart from the capacity to handle
management issues, women also had to find
time from their other regular tasks to make
the new systems and processes work. The
women have now learnt to balance their
different roles and responsibility towards
the dairy and the Federation.
Maitree, since the last 6 years, has been
selling to bulk buyers and to a few institu-
tional buyers as well. While the total milk
volume increased, losses also increased as in
flush season, prices paid by the institutional
buyers were uneconomical. Maitree received
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35 per litre from the buyers but had to pay
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33 to
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34 to the pourers.
Since November 2014, the company
commenced retail marketing at the sug-
gestion of dairy consultants. The milk is
procured within 2.5 hours, chilled, pouched
and packed in ice boxes and sold. Testing for
bacterial counting is also done. Necessary
government clearances and licenses such as
the Food Safety and Standards Authority of
India (FSSAI) license have been procured for
selling the milk. Two outlets were opened
where unpasteurised raw milk is pouched
and sold. The taste of unpasteurised milk is
appreciated by the consumers. Sixty per cent
of the milk is sold as raw milk with no
standardisation or mixing of powder. The
rest of the milk is processed as curd, butter
milk, cream, ghee and skimmed milk for
marketing.
The company is using mobile technology
—WhatsApp—to communicate with
dealers and also with secretaries of milk
collection centres. Another group is being
established with pashusakhis. The company
has a contact person in each area who helps
resolve local issues. Saras is the major
competitor, followed by Payas and in some
pockets, Amul. However, the demand for
milk is high according to the company,
especially in villages where the animal
population is low.
Staffing
At present, the dairy engages 4 route super-
visors, 2 lab in-charges, 1 doctor, 1 accoun-
tant, 4 cleaners and 2 drivers. The company’s
CEO is a professional from SRIJAN and is
on the payroll of SRIJAN.
Financials
The total investment required to get the
company on its feet were over
`
10.5 mil-
lion. The producers’ company did not have
enough capital to establish even the mini-
mum infrastructure required for managing
a dairy business involving so many mem-
bers. Assets such as bulk milk chilling units
(BMCUs), fat-testing machines, lacto scans,
milk van and other dairy equipments had to
be acquired. Expenses also had to be incurred
onwinning the trust of the communitymem-
bers, thus slowlyweaning themaway fromthe
traditional practices of production, building
community groups, developing leadership
and organising exposure visits. As the com-
pany’s balance sheet was not strong enough
to negotiate loans from banks, SRIJAN had
to supplement its funds with support from
donors such as the Axis Bank Foundation
(ABF), American India Foundation (AIF),
Government of Rajasthan, RajasthanMission
on Skill and Livelihoods (RMoL) and Sir
Ratan Tata Trust (SRTT). Till 2013–14, the
company received grants.
