Article



  • Cold chain innovative in dairy industry

    Indian Cold Chain industry is expected to reach a market size of USD 13 Billion in 2017. This change is primarily driven through rapid change in consumption patterns, fuelled by expansion of the modern trade, QSR, processed food, and dairy industries in India. Thus, in terms of demand for reefer technology, a lot of innovation in technology shall emerge to manage growth in both reefer storage as well as transportation.Dairy is amongst the key sectors contributing to temperature controlled storage and transportation in India currently. Of the total volume stored in multipurpose storage systems, dairy products (including ice cream) contribute close to 20% share, which amounts to approximately 1.64 million MT (2015-16).

          

    India is the largest producer of milk and dairy products. Cold chain in the dairy sector is divided into two sectors – frozen and chilled. Items like ice cream, frozen meat, seafood and processed food come under the frozen sector, whereas products like milk and dairy products, fruits and vegetables, confectionery and chocolates come under the chilled sector. Chilled products face a number of challenges during transportation, as they need controlled temperatures. Thus, innovations in reefer trucks are necessary for the proper distribution of the product.

          

    The Indian dairy industry is worth Rs 4 lakh crore. Of that, the organised sector accounts for 30 per cent. Value-added products like yoghurt and cheese are growing at over 20 per cent per annum,” he added.

    Cold storage transport distribution is of two types. One is primary, which includes self-powered units, and the other is secondary, which comprises vehicle-powered units.

    Phase change material or PCM based solutions for passive temperature control for storage and transport of food products is also being encouraged in the cold chain.  PCM releases and absorbs heat at constant temperatures. The market opportunity for passive cooling enables the development of new products that rely on less continuous power.

    The application of PCM in freezers and coolers is that it provides 12 to 16 hours of back-up with a longer shelf life of the product due to its non-corrosiveness. It helps to maintain a temperature of minus 19 degree Celsius for 16 hours.

    PCM reduces the dependency of power and acts as back-up for critical temperature applications. Each PCM reefer trucks safely consume over 3,600 litres of fuel annually.

    The explosion in demand for high-profit yielding value-added products is giving dairies an impetus to spend heavily on expanding their cold chain infrastructure, both in sourcing as well as distribution. This was not possible earlier with the low-margin liquid milk segment that dominated the product portfolio for dairy companies. Companies are now spending nearly a third of their capex in cold chain and the investments are growing at the rate of 15% year-on-year. 
    The dairy industry in India has been on a steady path of progression since Indian independence. It has grown from producing 17 million tonnes of milk in 1951 to producing 133 million tons in 2013. Today, India is one of the largest milk producing countries in the world. This solid progress is primarily attributable to structural changes in the Indian dairy industry brought about by the advent of dairy cooperatives.

    The performance of the Indian dairy sector during the past three decades has been very impressive. Several factors have contributed to the increased milk production in the country.

    The milk coming to organized sector is processed in close to 1400 dairy processing plants with an installed capacity of close to almost 13.5 crore liters per day. The average capacity utilization is around 60 % in the organized sector’s plant. The processing capacity in India is growing at a high rate of 20-25 % in last 3-4 years.

    While the milk production is growing at slightly above 4.5 %, the demand is showing slightly edge over it at around 6 %. Now the market is becoming conscious about the quality of milk and ready to pay more for better quality and varieties of packed milk and milk products. The competition is becoming fierce. Gone are the days when the processors were minting high value on basic products like pasteurized milk in poly-packs. With Food safety laws becoming more stringent and covering cover cold chain also, the overheads of all the dairies on supply chain from farm to consumer reach; it is need to enhance the system advance.

    Concentrated dairy products such as skimmed milk continue to be the largest item of export. Packaged food segment to grow 9% annually to become Rs 6 lakh crore industries by 2030 .

    There is very little time for Indian dairy farmers to face the challenge of imported milk and milk products under WTO. Our farmers are not yet prepared to solve this problem. It is necessary to take immediate steps to reduce the cost of milk production by increasing the productivity of our animals. We also need to reduce the cost of transportation, storage and processing of milk by reducing intermediary agencies and by adding value to the produce at the block or district level.

    As physical infrastructure and logistics remains a key concern for exports of dairy products from India, an integrated approach for overall enhancement of export logistics in terms of creating cold chain facilities for transportation and storage needs to be adopted. Besides, India needs to focus upon exports of value added products with increased shelf-life and improved packaging to compete in international markets. Concerted efforts to market especially in building global brands and establishing international marketing channels are also called for.

    Despite being the one of the largest milk producing countries in the world, India accounts for a negligible share in the worldwide dairy trade. The ever increasing rise in domestic demand for dairy products and a large demand-supply gap could lead India to be a net importer of dairy products in the near future.

    There is a huge disparity between amount of milk produced in India and the quantity of milk processed. The gap in infrastructure and support logistics is probably the most important cause for the minuscule share of processed and hygienic milk in India. The foray of private sector into this thrust areas can actually change the scenario with substantial routing of the unorganized and unprocessed milk through an organized channel of cold chains and processing plants. The Public Private Partnership or PPP in this area can be implemented by the private sector by planning, design and development of Bulk Milk Coolers units (BMC) and chilling facilities for milk at strategic locations so that it can cater to a large milk zone. The cooling or chilling cost of milk can be transferred to the consumer through the processing cost and the farmers would not get taxed for the chilling facilities.

    The PPP mode can also ensure that Build Own and Operate (BOT),  and milk testing facilities fetch remunerative prices to the farmers. This is possible by  --

    • Design, Build and operate animal feed processing plants, milk processing plants.
    • Build, own and operate a cold chain having a fleet of refrigerated vehicles and insulated stainless steel tankers.
    • Lease, develop and operate the defunct and sick cooperative milk plants.

    The other major areas where the government can facilitate a conducive environment to foster infrastructure and logistics development in the dairy sector could be in

    • Providing land at a subsidized rate for building bulk milk cooling units and dairy plants to keep the project cost on the lower side.
    • Providing special category status to the land being used for the dairy activities so that the registration and other duties are reduced to a great extent.
    • Promulgate specific policy measures for including certain lucrative funding patterns and incentives. There should be 100% depreciation on all investments on physical assets and a 100% tax holiday on any 10 years out of 15 years of operation after inception of the facility to promote uptake of dairy ventures.
    • Provision of duty exemption on import of capital goods which are essential for setting up BCU and processing plants.
    • Facilitation of commercial lending by banks and financial institutions for the projects by assigning a priority status to dairy sector investment and reduced interest rates.
    • Provision of subsidized electricity supply to the Bulk cooling Units and milk chilling plants to promote more no. of takers for the project.

    The key to the success in sustaining a dairy processing plant business is perfect management of its operations like manufacturing and production systems, plant management, equipment maintenance management, production control, industrial labour relations and skilled trade supervision, strategic manufacturing policy, systems analysis, productivity analysis and cost control, and materials planning. In response to such intricacies of the trade, the private sector has achieved a greater level of optimisation of processes and maximum utilisation of resources. PPP in this context can help through contracting-in models which would entail hiring of one or more number of agencies to cater to an array of services such as:

    • Maintenance and upkeep of Infrastructure.
    • Quality testing and nutrient estimation at factory end.
    • Regular maintenance of cleaning in place systems and conformation to quality standards like ISO, HACCP etc.
    • Purchase of inventories and materials management
    • Transportation

    This frame of model would ensure efficiencies in operations in terms of technical efficiencies, operational economy, compliance to quality standards, effective resources management and cos

    Indian Cold Chain industry is expected to reach a market size of USD 13 Billion in 2017. This change is primarily driven through rapid change in consumption patterns, fuelled by expansion of the modern trade, QSR, processed food, and dairy industries in India. Thus, in terms of demand for reefer technology, a lot of innovation in technology shall emerge to manage growth in both reefer storage as well as transportation.Dairy is amongst the key sectors contributing to temperature controlled storage and transportation in India currently. Of the total volume stored in multipurpose storage systems, dairy products (including ice cream) contribute close to 20% share, which amounts to approximately 1.64 million MT (2015-16).

           

    India is the largest producer of milk and dairy products. Cold chain in the dairy sector is divided into two sectors – frozen and chilled. Items like ice cream, frozen meat, seafood and processed food come under the frozen sector, whereas products like milk and dairy products, fruits and vegetables, confectionery and chocolates come under the chilled sector. Chilled products face a number of challenges during transportation, as they need controlled temperatures. Thus, innovations in reefer trucks are necessary for the proper distribution of the product.

          

    The Indian dairy industry is worth Rs 4 lakh crore. Of that, the organised sector accounts for 30 per cent. Value-added products like yoghurt and cheese are growing at over 20 per cent per annum,” he added.

    Cold storage transport distribution is of two types. One is primary, which includes self-powered units, and the other is secondary, which comprises vehicle-powered units.

    Phase change material or PCM based solutions for passive temperature control for storage and transport of food products is also being encouraged in the cold chain.  PCM releases and absorbs heat at constant temperatures. The market opportunity for passive cooling enables the development of new products that rely on less continuous power.

    The application of PCM in freezers and coolers is that it provides 12 to 16 hours of back-up with a longer shelf life of the product due to its non-corrosiveness. It helps to maintain a temperature of minus 19 degree Celsius for 16 hours.

    PCM reduces the dependency of power and acts as back-up for critical temperature applications. Each PCM reefer trucks safely consume over 3,600 litres of fuel annually.

    The explosion in demand for high-profit yielding value-added products is giving dairies an impetus to spend heavily on expanding their cold chain infrastructure, both in sourcing as well as distribution. This was not possible earlier with the low-margin liquid milk segment that dominated the product portfolio for dairy companies. Companies are now spending nearly a third of their capex in cold chain and the investments are growing at the rate of 15% year-on-year. 
    The dairy industry in India has been on a steady path of progression since Indian independence. It has grown from producing 17 million tonnes of milk in 1951 to producing 133 million tons in 2013. Today, India is one of the largest milk producing countries in the world. This solid progress is primarily attributable to structural changes in the Indian dairy industry brought about by the advent of dairy cooperatives.

    The performance of the Indian dairy sector during the past three decades has been very impressive. Several factors have contributed to the increased milk production in the country.

    The milk coming to organized sector is processed in close to 1400 dairy processing plants with an installed capacity of close to almost 13.5 crore liters per day. The average capacity utilization is around 60 % in the organized sector’s plant. The processing capacity in India is growing at a high rate of 20-25 % in last 3-4 years.

    While the milk production is growing at slightly above 4.5 %, the demand is showing slightly edge over it at around 6 %. Now the market is becoming conscious about the quality of milk and ready to pay more for better quality and varieties of packed milk and milk products. The competition is becoming fierce. Gone are the days when the processors were minting high value on basic products like pasteurized milk in poly-packs. With Food safety laws becoming more stringent and covering cover cold chain also, the overheads of all the dairies on supply chain from farm to consumer reach; it is need to enhance the system advance.

    Concentrated dairy products such as skimmed milk continue to be the largest item of export. Packaged food segment to grow 9% annually to become Rs 6 lakh crore industries by 2030 .

    There is very little time for Indian dairy farmers to face the challenge of imported milk and milk products under WTO. Our farmers are not yet prepared to solve this problem. It is necessary to take immediate steps to reduce the cost of milk production by increasing the productivity of our animals. We also need to reduce the cost of transportation, storage and processing of milk by reducing intermediary agencies and by adding value to the produce at the block or district level.

    As physical infrastructure and logistics remains a key concern for exports of dairy products from India, an integrated approach for overall enhancement of export logistics in terms of creating cold chain facilities for transportation and storage needs to be adopted. Besides, India needs to focus upon exports of value added products with increased shelf-life and improved packaging to compete in international markets. Concerted efforts to market especially in building global brands and establishing international marketing channels are also called for.

    Despite being the one of the largest milk producing countries in the world, India accounts for a negligible share in the worldwide dairy trade. The ever increasing rise in domestic demand for dairy products and a large demand-supply gap could lead India to be a net importer of dairy products in the near future.

    There is a huge disparity between amount of milk produced in India and the quantity of milk processed. The gap in infrastructure and support logistics is probably the most important cause for the minuscule share of processed and hygienic milk in India. The foray of private sector into this thrust areas can actually change the scenario with substantial routing of the unorganized and unprocessed milk through an organized channel of cold chains and processing plants. The Public Private Partnership or PPP in this area can be implemented by the private sector by planning, design and development of Bulk Milk Coolers units (BMC) and chilling facilities for milk at strategic locations so that it can cater to a large milk zone. The cooling or chilling cost of milk can be transferred to the consumer through the processing cost and the farmers would not get taxed for the chilling facilities.

    The PPP mode can also ensure that Build Own and Operate (BOT),  and milk testing facilities fetch remunerative prices to the farmers. This is possible by  --

    • Design, Build and operate animal feed processing plants, milk processing plants.
    • Build, own and operate a cold chain having a fleet of refrigerated vehicles and insulated stainless steel tankers.
    • Lease, develop and operate the defunct and sick cooperative milk plants.

    The other major areas where the government can facilitate a conducive environment to foster infrastructure and logistics development in the dairy sector could be in

    • Providing land at a subsidized rate for building bulk milk cooling units and dairy plants to keep the project cost on the lower side.
    • Providing special category status to the land being used for the dairy activities so that the registration and other duties are reduced to a great extent.
    • Promulgate specific policy measures for including certain lucrative funding patterns and incentives. There should be 100% depreciation on all investments on physical assets and a 100% tax holiday on any 10 years out of 15 years of operation after inception of the facility to promote uptake of dairy ventures.
    • Provision of duty exemption on import of capital goods which are essential for setting up BCU and processing plants.
    • Facilitation of commercial lending by banks and financial institutions for the projects by assigning a priority status to dairy sector investment and reduced interest rates.
    • Provision of subsidized electricity supply to the Bulk cooling Units and milk chilling plants to promote more no. of takers for the project.

    The key to the success in sustaining a dairy processing plant business is perfect management of its operations like manufacturing and production systems, plant management, equipment maintenance management, production control, industrial labour relations and skilled trade supervision, strategic manufacturing policy, systems analysis, productivity analysis and cost control, and materials planning. In response to such intricacies of the trade, the private sector has achieved a greater level of optimisation of processes and maximum utilisation of resources. PPP in this context can help through contracting-in models which would entail hiring of one or more number of agencies to cater to an array of services such as:

    • Maintenance and upkeep of Infrastructure.
    • Quality testing and nutrient estimation at factory end.
    • Regular maintenance of cleaning in place systems and conformation to quality standards like ISO, HACCP etc.
    • Purchase of inventories and materials management
    • Transportation

    This frame of model would ensure efficiencies in operations in terms of technical efficiencies, operational economy, compliance to quality standards, effective resources management and cos