P.S. Owners of commercial dairy plants in India handling more than one lac litres milk per day may avail FREE advisory/consulting services from our Mission associate M/s Improvement Innovations Unlimited Inc. Canada for a period of one month through email communications addressed to iiuhumber@gmail.com

1. MADE IN INDIA WHITE GOLD FOR GLOBAL MARKETS
 JaswantSinghBhandair
Purityof contents,nutritional value,microbiological safetyandshelf life are prime considerationsfor
everyconsumerof dairyfoodsworldwide.Immunologicallystrongpopulationof native breedsof dairy
animals,progressive dairyfarmersandnumberone positioninmilkproductionare ourunique assetsto
confidentlyface the emergingglobal competition.Visionary goalslike zerodefect,zeroeffectandmake
inIndiaprojectedby Hon.Prime Ministerare not impossible dreamslogansthatcannotbe translatedin
to realitybyusas prudentdairyprofessionalswholove theirmotherland.
As percritical “S.W.O.T.”analysisof dairybusinessinIndia,ourstrengthsandopportunitiesdefinitely
outweighthe threatsandweaknessesthatcaneasilybe resolvedwithourcollective professional
wisdomandresourcesavailablewithpremierdairyinstitutionslike N.D.R.I.,N .D.D.B.andI.D.A.
Basedon in-depthresearchcarriedoutbyourMissionwiththe helpof our associatesinCanadaand
India,we have identifiedfollowing“WEAKNESSES” that are blockingourwayas hurdlestoupgrade the
statusof our country fromnumberone milkproducingcountrytonumberone milkexportingcountry:-
1. Procurementof absolutelypure milkwithoutanymanipulation,adulterationordilution.
2. Ever increasinghighgapbetweenfarmgate price andconsumerprice of milk.
3. Purity,microbiological safetyandshelf life of pasteurizedmilkanddairyproductsnotstrictly
conformingtointernational qualityrequirements.
4. Undesirable dominance of unethical middlemeninthe value chain.
5. Lack of producttraceabilityandfinancial accountabilityinbusinesstransactions.
ROOTCAUSE ANALYSIS&IMPACT OFTHESE WEAKNESSESON TECHNO-ECONOMICSOFDAIRY BUSINESS
1. Procurementof absolutelypure milkwithoutanymanipulation,adulterationordilution:
Most of the advanceddairycountriesnow dominatingthe global markets,produce onlycow milk
throughcommercial dairyfarms.Dairy plantsinthese countriesdonotpurchase raw milkontwoaxis
basisand have noprobleminprocuringraw milkoncommercial scale withoutanymanipulation,
adulterationordilution.Freezingpointof cow milkof standardcomposition(3.50% Fat & 8.50% S.N.F.)
ismeasuredbyrefractometerindexreadingusingcryoscope andusedasreference benchmark.
Presence of addedwatercanbe accuratelymeasuredandevaluatedwiththistechnique,while
purchasingrawmilk.Undilutedpure milkispurchasedatrelatively higherratesbydairyplants
processingandmarketingpasteurizedmilk.Dilutedmilkispurchasedatdiscountedprice (afterdue
deductionforaddedwater) andusedforproductmanufacturing.Assuchthere isno cost benefitor
hiddengaintosellerforintentional dilutioninraw milk.Due tostringentregulationsagainst
adulterationbeingeffectivelyimplementedbyfoodsafetyauthorities,chancesof adulterationhave
beenvirtuallyruledout.
Countrieslike Indiawhere we have bothcowsand buffaloes,mixedmilkisbeingtradedusing60:40 two
axisformulae.Correctedlactometerreadingismeasuredforeachmilkpurchase transactionbesidesfat
testingtodetermine valueof total milksolids(Fat+S.N.F] bycalculatingS.N.F.usingthe specified
formulai.e.S.N.F.=C.L.R./4+ 0.2x Fat +C.L.R./100. -1-

2. Exploitingthe practical limitationsandcorrelatedproblemsof purchasingmilkusingthismethod,
unethical middlemeninmilkprocurementchainoveraperiodof time have devisedperfectwaysand
meansto syphonoutup to 20 % cost of raw milkas hiddengainforthemselvesbydilutingmixedmilk
and manipulatingmilkcomposition.
There are majorvariationsincompositionof standardbuffalomilkandcow milki.e.total milksolids,
S.N.F.:Fatratio,Specificgravityandreal monetaryworthperKg. milkorper Kg.milksolids.Moreover
specificgravityof Fat& S.N.F. componentsis significantly oppositetoeachotherso manycomplex
permutationsandcombinationsare possible forunethical middlementodilutemixedmilkfor
manipulatingmilkcompositioncausinghiddenlosstopurchaser.Unfortunatelyfordairybusiness
entrepreneurs,thesehiddenlossesdue todilutionandmanipulationinmilkcompositionremain
undetectedwithconventional milkbillingsystemandsoftwarebeingusedbyone andall inIndiafor
releasingmilkpaymenttosuppliers.
N.D.R.I.evolved“HansaTest”fewdecadesagoto solve complex problemof dilutioninbuffalomilkand
manipulatingdilutedB.M.as cowmilkor vice versa.Thistestcan indicate if cow milkismixedwith
buffalomilkbutitcannotspell outexact% of actual cow milkinmixedmilk.Furtherresearchonthis
subjectcouldnotbe conductedso thischronicproblemof our industrystill remainsunresolved.
Actual case studiesof digital hydro-analysisof milkpurchase transactionsof premierdairyinstitutionsin
Indiawascarried outby our Missionassociate inCanada.Resultsof these analysisindicatedlossof
crores of rupeestothese institutionsonlydue todilutionandmanipulation(assumingnoadulteration
otherthan addedwaterusedformanipulatingmilkcomposition).We sharedthese resultswithsenior
managementof these institutionsbutnoone expressedanydisagreementordoubtregardingaccuracy
of ouranalytical calculations.
Unprecedentedincrease inmilkadulterationinourcountryduringthe lastfew decadesismainlydue to
thiscore issue andunresolvedcomplex problem.Exportof milkanddairyproductsfromIndiato
neighbouringcountrieswouldgrowbyleapsandbounds,if we evolvearithmeticallyaccurate andlogical
solutionforthiscomplex problem.Alldairyplantsespeciallythosehavingsound infrastructure to
procure raw milkdirectlyfrommilkproducerswill have nodifficultyinprocuringpure milk,thereafter,
for productionof milkandproductsstrictlymeetingwithinternationalqualityrequirements.
2. Ever increasinghighgapbetweenfarm gate price andconsumerprice :
Due to steepincrease inthe costof material inputs,manpower,fuel,electricity,packingmaterialsand
marketingetc.total milkhandlingcostsusingconventional processingsystemsandtechniquesfordairy
businessoperationshave increasedmanifold.Inordertocompete withglobal playerswe mustinvestin
researchand developmenttoevolve newconcepts,innovate processing/packagingtechniquesand
introduce costeffectivemarketingstrategies.Indianow importsmanyfastmovingconsumergoods
fromneighboringcountrieslikeChinathatbesidesmeetingcustomerneedsare available inthe market
at pricesmuch lowerthansimilargoodsproducedbyourbusinessentrepreneursusingconventional
/obsolete techniques.Gapbetweenconsumerprice andproducerprice canonlybe reducedeitherby
minimisingcostsoroptimisingvalueaddition. -2-

3. Our global competitorshave alreadyintroducedmanyhighmarginvalue addedproductsinIndia
whereasmajorityof ourcommercial dairyplantsespeciallyinprivate sectorstillcontinuetofocusonly
on conventionalproductmix like Skimmedmilkpowder,whole milkpowder,DairywhitenerandGhee.
We can onlymake milkproductionasustainable businessactivityforrural massesandretain/improve
our marketshare in home andexportmarketsbydrasticallyreducingcostsandoptimisingrevenue
throughvalue addition.Inordertoachieve our Cherishedgoal of “Make inIndia”we needtremendous
effortsonboththese fronts.
3. Purity.Microbiologicalsafetyandshelf lifeof pasteurizedmilkanddairyproductsnotstrictly
conformingtointernational qualityrequirements:
Commonfeaturesof all suchcountriesnow dominatingglobalmarketsirrespectiveof theirmilk
productionlevel ascomparedwithourcountryare quality,productivityandreputationof theirpopular
brands.We can onlyrealize ourprime goalsof playingdominatingrole andtowin goldindairy Olympics
by ensuringthatwhateverwe produce inourcountryeitherforhome consumptionorexportis
absolutelypure,microbiologicallysafe andhavingshelf life notlessthanthatof our global competitors.
As perour researchfindingsbesidesinitial qualityof raw milk,postprocessingcontamination,use of
packingmaterialswithoutpropersanitisationandimproperstorage conditionsforproductsthatneed
refrigerationare mainlyresponsible forourpasteurizedmilkanddairyproductsnotstrictlyconforming
to specifiedinternational qualityparameters.Itisa matterof deepconcernforall of usmanagingdairy
businessinIndiathatthere ishardlyanydairyplantmarketingpure pasteurizedmilkhavingshelf lifeof
twoto three weeks like ourcounterpartsinglobal markets.We musttake upthisissue ontoppriority
agendaand make all out effortstocreate centresof excellence inthe formof model dairyplantsto
provide live demonstrationbyensuringthatpasteurizedmilkand all dairyproductsleavingsuchunits
strictlyconformto international requirements.Mandatorythirdparty productcertificationby
internationallyaccreditedqualitytestinglaboratoryforall dairyplants( withoutexception) wouldbe a
rightstepin the rightdirection soas to improve ourimage andstatusin global markets.
4. Undesirable dominance of unethical middlemeninthe value chain:
Cost of raw milkhasmore than 80% contributioninthe overall costof dairybusinessinourcountry.
Unfortunatelymajorityof commercialdairyplantsespeciallyinthe private sectorhave delegatedthisall
importantfunctionof milkprocurementtonetworkof middlemennow dominatingthe value chain.
Ironicallythese middlemenare neitherscientificallytrainednorwillingtofollow ethical trade practices
while handlingmicrobiologicallysensitive fooditemandvaluable materialinputforourdairyplantsto
churn outbestqualitydairyproductsintendedtoexceedcustomerexpectationsbesidesconformingto
international qualitynorms.
There seemstobe no alternative fordairybusinessentrepreneursinourcountrybut to discardthe
prevalentsystemof milkprocurement.They mustswitchontowell documentedfool proof milk
procurementsystemforprocuringabsolutelypure raw milkoncommercial scale directlyfrommilk
producersmaintainingclearcuttransparencyandfinancial accountabilityfordilutionandmanipulation
(hiddenlosses) whilemilkremainsintransitbetweenmilkproducersanddairyplant. -3-

4. 5. Lack of producttraceabilityandfinancial accountabilityinbusinesstransactions:
Advanceddairycountriesfollowasystemof mass productionof milkbyregistereddairyfarmerswho
maintainlarge herdsof dairycattle intheirdairyfarms.
Governmentregulationslike banonsale of raw milkbydairyfarmers,strictmonitoringof raw milk
qualityandtransparentbusinesstransactions betweenmilkproducersanddairyplantsensure assured
quantityof pure milkas pertheirrequirementsthroughoutthe year.Once raw milkisacceptedby
concerneddairyplantthentotal responsibilityformaintainingclearcutproduct traceabilitybetween
dairyplantand consumeristransferredonto thatorganisation.
On the contrary incountrieslike Indiawheredue tosocio-economicconsiderationswe have nochoice
but to encourage productionof milkbymasses.Majorityof these people are marginal orlandlessmilk
producers.Keepinginviewliteracylevel andweakfinancial statusof thisrural segmentof society,we
mustcontinue tofollowthispolicysoasto provide sustainable incomeandemploymentopportunities
for them.More than 70% milkreachingourdairyplantsisbeingcontributedbythem.Underthese
conditionsonlywell manageddairyplantshavingwelldocumentedfoolproof systemandwellorganised
infrastructural networkwouldbe able toprocure requiredqualityof pure raw milkas pertheirbusiness
needsdirectlyfrommilkproducers.
Innovative conceptandcosteffective documentedsystemthat canensure perfectproducttraceability
and financial accountabilityinall businesstransactionsbetweenmilkproducers,dairyplantsand
consumerisneedof the hour forour country forupgradingraw milkquality,productivityand
profitabilityof dairybusiness.
SCIENTIFICINNOVATIONSANDLOGICALSOLUTIONSEVOLVEDBYOUR MISSION ASSOCIATES:
Good newsforpremierdairyinstitutionsandethical dairybusinessentrepreneursinIndiaisthatour
Missionassociateshave successfullyevolvedscientificallylogical,arithmeticallyaccurate andeasyto
implementsolutionsforthese core issuesandunresolvedproblemsmentionedabove.Pilotproject case
studiesundertakenandfieldtrialsconductedbyourassociatesinIndiaandabroadto evaluate
effectivenessof these solutionshave producedexceptionallyencouragingresults.
 Our Missionassociate M/sImprovementInnovationsUnlimitedInc.Canadahassuccessfully
evolvedsoftware solutionforcomplex unresolvedproblemcausinghiddenlossof croresof
rupeestodairybusinessentrepreneursinSouthAsiancountrieswhere mixedbuffaloandcow
milkispurchasedontwo axisbasis.Software hasbeendesignedforcarryingoutdigital hydro
analysisof mixedmilkcontainingbuffalomilk,cow milkandaddedwater(intermixinginany
ratiofor these components).Itwill clearlyindicatequantityof standardbuffalomilk(6.50%Fat,
8.84% S.N.F,15.34% total milksolidscorrespondingto29 C.L.R.) and Standardcow milk(3.50%
Fat, 8.50% S.N.F.12% total milksolidscorrespondingto30 C.L.R.) andamount of addedwater
usedformanipulatingmixedmilkcomposition. Onlysoftware inputinformationrequiredfor
carryingout thismicro level investigationandanalysisisconventional informationalreadybeing
collectedandcompiledbymilkprocurementdepartmentandsuppliedtomilkbillingunitof
finance departmentforpreparingmilkbillsforpaymenttosuppliers. -4-

5. Hiddenlossinmilkpurchase transactionsdue tomanipulationanddilution(Assumingno
adulterationexceptaddedwaterusedformanipulationinmilkcomposition) canbe accurately
calculated withaccuracy up to decimal points.
Thissoftware solutionwill serveasanaccurate and effectivetool inthe handsof managementto
assess,control andeliminate hiddenlossinmilkpurchase transactions.
Accurate analytical identification of adecease isonlyfirstrightsteptowardsrecoveryfromachronic
ailment.Importance of consultingaspecialistformedical prescriptionorsurgical operationcannot
be underminedtoachieve longterm healthobjective.
Besidesprovidingauseful software solution,ourMission associate hasalsocreatedaunique
documentedsystemforprocuringabsolutelypure buffalomilk,cow milkormixedmilkwithoutany
manipulation,adulterationordilutionthroughdedicatednetworkof ethical milkproducersor
service providersfullyaccountable forsupplyingraw milkmeetingwithspecifiedquality
requirementsandfinancial lossif anydue todilutionandmanipulation.Resultsof fieldtrialsand
actual case studiesundertakenbyuswhile implementingthissystemindicate thatitispossible to
procure undiluted(B.M.+C.M) containingmore than15.34% total milksolidsandC.L.R.> 29 on
commercial scale withcompletecontrol ondilutionandmanipulation.Underthe conditionsnow
prevailinginIndiaitis,therefore,quite possible toprocure absolutelypure milksuitable for
productionof pasteurizedmilkandvalue addedproductsstrictlyconformingtointernationalquality
requirements.
 We have conceivedaninnovative farmerfriendlyandconsumerfriendlybusinessplanforour
country for pasteurizedmilksupplyinthe home market.Itissupportedbygreentechnology,
cost effectiveprocessing,recyclablepackingmaterialsandconsumerfriendlydistributionof
milk.Implementationof thisscheme canreduce total costof milkhandlingby more than50%
fromprevalentlevels.Resultantcostsavingscouldbe sharedappropriatelybetween
participatingmilkproducers,consumersandethical dairybusinessentrepreneurs.
 Organically produced pure buffalo milk or cow milk of immunologically strong native breeds of
dairy animals could be projected as preventive health care tonic and our premium value added
product for global markets. Our Mission associate has successfully conducted field trials to
produce pasteurized/sterilisedmilkinIndiameetingwithinternational qualityrequirementsfor
purity, microbiological safety and shelf life.
Scientificinnovative techniquesmentionedabove woulddrasticallyreduce total milkhandling
costs andhelpus to optimise profitabilityandexportpotentialof dairybusiness.
 Keepinginview unresolvedcomplex problems inprocuringabsolutelypure milkunderconditions
nowprevailinginIndiaasthe mainreasonandpost processinglimitationsof milkprocessingdairy
plantsinIndiaour associate conductedfieldtrialstoprocure/process/packpure buffaloandcow
milkproducedinIndia.PasteurizedmilkandsterilisedmilkproducedbyourMissionassociate using
innovative milkprocessingtechnologyattainedshelf life of three weeksandsix monthsrespectively
besidesmeetingwithotherinternational qualityrequirements.
We are now confidentthatsimilarresultscouldbe replicatedinwellmanageddairyplantsprocuring
pure milkandimplementinglatestI.S.O.concepts inletterandspirit. -5-

6.  We conducteddeepprobe andinvestigationstoknow asto whycommercial dairyplantsinIndia
prefertoprocure rawmilkthroughmilkcontractorswhoskillfullymanage tocontrol networkof
middlemen.Theydonotmissanyopportunityto exploitneedymilkproducersin all possible
ways. Underlyingmainreasonthatcame out fromthisstudyis that althoughnotonlyqualityof
raw milkismuchbetterand landedcostof milkremains lowerindirectmilkprocurement
throughactual milkproducersbutdue tounresolvedtechno-commercialproblemsrelatingto
hiddenlossesdue tomanipulation,adulterationanddilutionitbecomesdifficulttomanage
qualityandlandedcostof milk.
We successfullyintroducedandimplementedinnovative conceptof “APNIDAIRY”(informal
cooperative network) formilkprocurementinacommercial dairyplantandprocurednearlyone
lac litresmilkperdayhavingmore than15.34% total milksolidsandincurringonlynominal
hiddenlossinmilkpurchase transactions.
Our Missionfeelsthatinnovativeideaof informal consumercooperativesestablishingdirectfly
overlinkbetweencommercial dairyfarmersandurbanconsumerswouldbe yetanotherstepin
the right directiontocontrol adulterationinmilkandneutralise undesirabledominance of
unethical middlemeninvalue chain.Pilotprojectbasedonthisconceptisbeingsuccessfully
implementedbyourMissionat Chandigarhforthe lastmore thanthree years.
 Due to wide spreadmistrustandmenace of adulterationinmilkthere isurgentneedtolaunch
consumerawarenessprogramswiththe prime objectivetoempowerthemtotestadulteration
inmilkthroughsimple platformteststhatcanbe conductedinconsumerkitchenatnominal
expense.OurMissionhas alsoconductedsuccessful trialsof thisconceptonpilotscale.
Our Missionassociate isworkingonyetanotherresearchprojectthatwill ensure 100% product
traceabilityfromcowtoconsumer(CtoC). Withour successinthismissionsterilisedmilk
havingshelf lifeof more thansix monthscontainedinaglassbottle witha label indicating
identitytagnumberof cow,Unique identitycode numberof dairyfarmer,time anddate of
milkingthe animal,milkprocessing time anddate besidesotherstatutoryinformationrequired
understate regulationswouldbecome areality.Scientificinnovationslike thiswouldhelpusto
opennewexportavenuesforourvalue addedmilkformulationsandallieddairyproducts.
Our Missionisquite optimisticaboutfuture of dairybusinessinourcountryand we wouldbe
too willingtoshare our researchfindingswithethical dairybusinessentrepreneursandalsohelp
themfor theirdairydevelopmentprogramsthatwouldharmoniouslybalancethe interestsof
needydairyfarmers,healthconsciousconsumersandethical dairybusinessentrepreneurs.
 MissionDirectorInternational ImprovementMission
Managing DirectorInnovative BusinessImprovementsPvt.Ltd.India.
DirectorImprovementInnovationsUnlimitedInc.Canada.
E. Mail: iiuhumber@gmail.com Website:http//:www:apnidairy.com
PresentAddress:177 Regencyview heights,Vaughn,OntarioCanadaL6A3V3 -6-