Dairy Development

 

Collecting fodder from the forests consumes as much as 6-8 hours daily. A lot of this time and energy is being saved by planting ATI recommended fodder species near homesteads.

Outreach

Districts: 2 (Chamoli & Rudraprayag)

Villages: 395

Beneficiaries: 3900+

Net annual returns: Rs 1.5 crore

Average income: Rs 3500/annum

Dairy has been one of the sub-sectors identified by AT India for intervention due to its potential to significantly impact the incomes of a large number of rural poor, especially rural women. Cattle-rearing has been a time-honored subsistence activity, which continues to be intrinsic to almost every rural household in the remote mountains of Uttarakhand. Although underdeveloped due to its traditional nature, the dairy sub-sector is robust and has immense potential for development and poverty alleviation. This has been borne out by its implementation results.

Despite a short implementation period of 3 years (2003-2006), the dairy development activities have had a greater visible impact than AT India’s other activities. This USAID funded project ended in 2006, but its impact can be gauged from the fact that around 200 (Business Service Providers) BSPs are still going strong. Dairying has now become a recognized and preferable livelihood option. The business prospects and commercial viability of the dairy sub-sector has been proven by successful transformation of subsistence dairy activities into micro-dairies with commercial objectives in more than 300 highland villages.

AT India believes that the local community’s impetus for protection and regeneration of biomass will be heightened by the commercialization of the dairy sub-sector. In keeping with the organization’s conservation imperative, plantation of high quality fodder species in private and common lands forms an integral part of the programme. In addition, the promotion of stall feeding and chaff cutting techniques are expected to alleviate inviolate extraction of valuable Oak species (Quercus leucotrichophora, Q. floriwinda) which is a popular variety of fodder in the region. Open grazing inside the forests, which remains a major threat to ecologically significant plant species in the central Himalayan region, can also be mitigated.

A base line study for dairy sub sector, conducted, by an independent team of consultants for AT India, revealed that the annual average household cash income accruing from various sources, for a household of 5 members, is 25,000 INR ($568).  Project interventions have resulted in a steady income (over a six month milking period) of 2448 INR ($55) per annum for the micro-dairy producers, resulting in an increase in the cash income of 9.8%. In rural areas this is a significant increase in income and another indicator of its significance is the continued participation of 95% of the original clients. Most importantly 99% of the participants are women. As the input and output services (described below in the implementation section) continue to mature, it is projected that annual income to the primary producers from dairy will grow from the current 9.8% of total cash income to an even more significant 15%. Subsistence dairy farmers participating in the project are expected increase their incomes by 13 %- 24% on an annual basis.


Programme Highlights

1. Self-employment, through provision of commercially viable business services, for approximately 203 youth, who act as BSPs (Business Service providers). These services include- animal health and nutrition services (feed), artificial insemination services, micro-insurance services, and milk collection, distribution and marketing services.

2. Development of 4000 commercially oriented micro-dairies with strong market linkages.

3. Market accessibility to micro-dairies through creation of 112 collection, distribution and marketing service providers. 

4. Increased value from sale of fresh milk in the project area from 1, 62,000.00 INR ($3681) to 88, 02, 00.00 (re-check?) INR ($200,000) by the establishment of collection, distribution and market services. 

5. Establishment of a community owned micro-finance institution (UMM) has increased the accessibility of rural poor women to all essential financial services, including saving, credit and insurance.

6. Mobilization of the community towards the common property resource management by linking the Van Panchayats with the fodder cultivation program.

7. Positive impact on forest conservation in the long run, as input services (stall feeding and fodder plantations) for the dairy sub-sector have been established commercially and are being adopted on a large scale.

The following approach was adopted for interventions in the dairy sub-sector:

1. Creating micro-producer networks that can generate and capture economies of scale under Business Development Services (BDS) model. These Networks were organized as Mutually Aided Cooperative Societies (MACS) that enable them to operate in a business like way and at the same time provides a variety of micro-finance services to their members, such as credit, savings, and assets insurance.

2. Demonstrating and making relevant productivity enhancing techniques- input services to optimize production. These services, which include fodder cultivation demonstrations; fodder plantation; chaff cutting; vermi-composting; veterinary and artificial insemination services are now available through BSPs who provide these services on a profit basis. Click here for more details

Project implementation under the BDS model:

AT India in all its programmes has employed the Business Development Services (BDS) strategy (as mentioned earlier). The basic idea being that the Business Service Providers developed under the model will provide sustainable access to services through private sector providers. It is worthwhile mentioning that that the BDS model adopted by AT India for implementation of dairy-sub sector development project has not only been backed by two market studies, conducted by ORG Marg and MART, New Delhi but has also influenced the implementation of other economic activities in the region.

 

3. The final set of output services is to facilitate creation of local milk grids and networks; thereby creating a dairy marketing network again through BSPs. Click here for more details
 

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Input Services - Productivity Enhancing Technology Demonstrations 

1. Fodder Cultivation & Cattle Feed Demonstrations

The project has facilitated the demonstrations of different fodder cultivations techniques by conducting 1031 winter fodder, 630 summer fodder and 527 monsoon fodder demonstrations on 343 ha of private and common lands in the project area.  The demonstrations have met with great enthusiasm among the clientele; however the limited available arable land is restricting widespread adoption.

Considering low availability of land at the household level, UMM has been promoting fodder development through inclusion of the Van Panchayat common lands with the support of Uttarakhand Livestock Development Board (ULDB). To date UMM has developed 3 Van Panchayats for large scale fodder cultivation on 10 hectares. As part of the technology demonstrations, 891 demonstrations on treatment of dry fodder have been held along with the 144 silage demonstrations.

The demonstrations of cattle feed held initially, has generated demand for feed, which is being met through a developed network of commercial producers, agents and Business Service Providers (BSPs). The indications for adoption of this service is that there are now 27 new BSPs supplying feed to over 4200 micro-dairies contributing an average revenue of Rs 25000 INR/month to these service providers.

2. Plantation of Fodder Trees & Establishment of Chaff cutter Services

The project has also promoted the plantation of 0.62 million sapling of Grewia optiva, Bahunia verigata fodder trees as well as  local fodder trees  on 250 ha of private and common lands in the project area with the participation of SHG members.  It is expected that the project will facilitate the plantation of around 0.34 million more saplings during this monsoon.

The promotion of animal nutrition and feed, fodder cultivation technology, plantation of tree saplings and establishment of 97 chaff cutter services in the project has addressed the environmental concern to a logical extent. As a result, the Van Panchayat has become the commercial entity for fodder services and will sell seeds and saplings to clients and operate nurseries on a commercial basis.

3. Animal Health and Up-gradation Services

The project has facilitated animal up-gradation services including artificial insemination, stud bull services and minor health treatment of cattle. The collaboration with ULDB? has developed 21 Artificial Insemination Services Centers and 15 Stud Bull Service Centers. The trained AI Service providers have conducted 589 artificial inseminations with a 45% success rate of conception, and after receiving Para-vet training, they are now providing veterinary services to the micro-dairies on a commercial basis. A total of 993 veterinary service camps to raise awareness among the farmers have been conducted to date and a total of 12,893 animals repeatedly vaccinated against frequently occurring diseases.

4. Composting Services 

The project has facilitated the adoption of improved vermi-culture composting techniques in 3545 households. The starter-worms are now available through a group of 23 commercial providers.   The composting technology demonstrations have a direct impact on farming in terms of optimal/increased production and in preserving the traditional genetic pool, encouraged by growing organic products. The intervention has contributed a combined income of 8614 INR (? per month) for a group of 23 Business Service providers who now supply the compost and earth worms on demand to farmers.

Output Services

Marketing Services

         The project through its participating SHGs has facilitated the organizing of 61 sub-collectors of milk and 40 major milk collectors. This has resulted in the development of 11 small milk grids at different semi urban locations to augment and support the sale of milk. The creation of collection and distribution services have ensured a significant monthly average income of 2026 INR ($46) for sub collectors, 5830 INR ($132/month) for the major collectors and 4383 INR ($100/month) for the milk grid managers. These are extremely significant increases in incomes for this region or for that matter any part of India. The network has facilitated a significant increase in combined sale of milk from an initial pre-project 90 liters to 4890 liters per day.

Training is also imparted on hygienic production of dairy products like paneer, khoya  and white butter.

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SHG members planting Napier fodder grass

 

 

 

 

 

 

 

 

 

 

 

 

 

Use of chaff cutting machines for stall feeding