ANNUAL-REPORT FOR YEAR 2009-2010

SURSAGAR DAIRY, SURENDRANAGAR

Introduction

Surendranagar District Co-operative Milk Producers’ Union Ltd, Popularly known as

“SURASAGAR DAIRY” - a district level Milk Union came into being in the year 1975

under the Operation Flood Program. Since inception, the Union was managed and

operated by Gujarat Dairy Development Corporation (GDDC) Ltd- a Government of

Gujarat Undertaking & has been engaged in the activities pertaining to the dairying,

animal husbandry, organizing of village level Dairy Co-op. Society (DCS) and farmers’

community development.

In 1995, Gujarat Dairy Development Corporation Ltd. was closed down & since then the

Union has been operating & managing the activities by itself. The Union has created its

own chilling centers. The Union collects milk from its various Dairy Co-operative

Societies & after carrying out the chilling operations on the milk procured, it sends the

milk to the GCMMF affiliated dairies since last ten years.

Presently, the Union has 651 Dairy Co-operative Societies from which it procures the milk

at an average of 2.70 LLPD & the 100% quantity is being sent to Mother Dairy,

Gandhinagar for onward processing.

During the year 2009-10, our Union could achieve a phenomenal growth of 100% over the

previous financial year. This enormous feat could be achieved mainly due to the increase

in the procurement of milk from 2.55 LLPD during the last year to 2.70 LLPD during the

current year & is distinctly attributed to the hard work embarked by the Union in

enhancing the faith of the farmers of Surendranagar district in the Co-operative set-up

which has led to an increase in the no. of Dairy Co-operative Societies from 615 during the

last financial year to 651 during the current year.

Overview

Our Union has continued to play its designated role by accepting flawlessly each and

every drop of milk from its various Dairy Co-operative Societies. Following table depicts

the overall performance of our Union during the current year vis a vis previous year.

Description

2009-10

2008-09

% Change

Dairy Co-operative Societies (in Nos)

651

615

6

Milk Procurement (Lacs Kg)

984

930

6

Turnover (Rs in Crore)

218

186

17

Expenditure per Kg Milk ( in Rs )

0.75

0.70

7

Profit ( Rs. In Lacs)

80

95

-16

Dairy Co-operative Societies

During the year 2009-10, there were 651 Dairy Co-operative Societies as compared to 615

Dairy Co-operative Societies registered during the last financial year depicting a increase

of 36 Dairy Co-operative Societies ( i.e a growth of 6 %)

The Milk Collection pattern of Different Dairy Co-operative Societies is shown below-

221294

561620 651

487377

0

100

200

300

400

500

600

700

800

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Year

No. O

f Socie

ties

0

20

40

60

80

100

120

140

No

. of

soci

etie

s

0-100 201-

300

401-

500

601-

700

801-

900

1001-

1100

1201-

1300

1401-

1500

Milk Collection (Kg/Day)

The Infrastructural Development at society Level is shown in the following graph. As can

be seen from the graph, the level of sophistication & acceptance of modern amenities

among the farmers has improved to a much greater extent.

Milk Price

The Average Per Kg Fat price paid to the farmers during the year 2009-10 has been Rs.

317+25=342 as compared to Rs. 267+24=291 during the previous financial year which

depicts a growth of 17%.

The Average Per Kg milk price paid to the farmers during the year 2009-10 has been Rs.

22.46 as compared to Rs. 19.09 during the previous financial year thereby depicting a

growth of 17 %.

0

200

400

600

800

No. of Socie

ty

March-10 636 604 568

March-09 611 487 465

March-08 548 445 357

March-07 432 239 194

March-06 280 150 70

March-05 169 90 31

Milko-

Tester

Weighing

Scale

Computer

System

22.4619.09

18.1714.9411.8310.54

0

5

10

15

20

25

Per K

g m

ilk p

rice ( in R

s)

2009-10

2008-09

2007-08

2006-07

2005-06

2004-05

Milk Procurement

During the financial year 2009-10, the total milk procurement was 984 Lac Kgs ( 930 Lac

Kgs previous year). Thus, the average milk procurement was 2.70 LLPD ( 2.55 LLPD

previous year), which represents an increase of 6% as compared to previous year. The

peak procurement has been 3.85 LLPD. The average milk procurement during the year

and the peak procurement has been the ever highest achieved since the inception of our

Union.

The month-wise trend of milk collection during the last five financial years has been as under-

22353

254909 269552

199500

11795874772

50344

0

50000

100000

150000

200000

250000

300000

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10Year

Aver

age

Milk

Pro

currem

ent (

in K

Gs)

0

50000

100000

150000

200000

250000

300000

350000

400000

Ava

rage

Milk

Col

lect

ion

(Kg)

2003-04 18557 13194 10554 17310 22190 22780 24441 26374 28474 27911 27469 28954

2004-05 28058 24241 21492 29356 38677 53390 57404 63865 72211 72993 72893 70781

2005-06 62878 52832 42284 45715 58018 67379 77722 84451 93363 100371 103960 109754

2006-07 101923 81189 69441 70548 81058 92441 111194 134184 156830 171183 176486 172363

2007-08 157473 135905 118330 130500 149978 172331 190922 227428 278870 294345 279136 259969

2008-09 230569 200562 171063 168004 195321 215269 254663 300965 327395 349345 339262 311373

2009-10 259758 206701 165459 164857 200750 233800 260277 307983 357144 370881 368827 344207

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

The Taluka-wise dairy co-operative societies and milk collection during the financial year 2009-10 has been as under- Sr. No

Name of Taluka

No. of Societeis

No. of Producers

Total Milk Collection(kg)

Avg. Milk Collection(kg)

Avg.Milk per Societies(kg)

1 Dhrangdhra 72 16016 15034075 41189 572

2 Hadvad 74 15287 14216542 38949 526

3 Wadhvan 56 12208 8906771 24402 436

4 Sayala 74 13499 11383214 31187 421

5 Muli 60 10870 8704228 23847 397

6 Chuda 34 6342 4639406 12711 374

7 Patadi 78 9935 10554573 28917 371

8 Chotilla 111 12582 13960042 38247 345

9 Lakhtar 41 4536 4870086 13343 325

10 Limbdi 52 6487 6117466 16760 322

TOTAL 652 107762 98386403 269552 413

Composition of milk procurred during the year 2009-10

Cow Milk25%

Buffalo Milk75%

Major Expenses

During the year 2008-09, the overall expenses of our Union has been Rs 0.75 per Kg of

milk as compared to Rs. 0.70 per Kg of milk during the previous financial year which

depicts an incease of 7% due to mainly fuel price and manpower expences increases.

Transportation

Cost, 0.36, 48%

Other Cost, 0.09,

12%Salary Cost, 0.14,

19%

Chilling Cost, 0.16,

21%

Year-wise Different type of Cost for per Kg Milk ( in Rs )

0.8

0.51

0.52

0.42

0.35

0.34

0.36

0.48

0.23

0.17

0.14

0.12

0.11

0.14

0.32

0.19

0.16

0.16

0.14

0.14

0.15

0.28

0.12

0.13

0.11

0.11

0.10

0.18

0 0.5 1 1.5 2

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

Transportation Cost Salary Cost Chilling Cost Other Cost

Total=0.97

Total=1.11

Total=1.88

Total=0.85

97

Total=0.72

4597

Total=0.70

4597

Total=0.75

04597

Sales

Our Union sells most of the milk to GCMMF Ltd and sends the same to Mother Dairy,

Gandhinagar (about 983 Lac. Kg during 2009-10 as compared to 931 Lac Kgs during the

year 2008-09) and a small % is sold to the localities as loose milk @ Rs. 24/- Ltr. The sour

milk is utlised by converting the same into Ghee & is sold @ Rs. 220 per kg. Our Union is

also facilitating our member dairy co-operative socities in the purchase of Dhan by

procurring the same from Amul Dairy, Anand and distributing it to them.

Sales Pattern

0

20000

40000

60000

80000

100000

120000

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-100

1000

2000

3000

4000

5000

6000

7000

Milk Sales to MDG ( Amt. In '000 ) Ghee Sales

Chhash Sales ( Amt. In '00 ) Local Milk Sales ( Amt. In '00 )

ANNUAL BUSINESS PLAN FOR YEAR 2010-11

The Business Plan for the financial year 2010-11 has been conceptualized keeping in view

the increase in the procurrement of milk.

The following are the plans for the financial year 2010-11

Increase the total number of Dairy co-op. societies from the exiting 651 to 657 by

the end of the year.

Achieving an average milk procurement of 3.0 LLPD for the Year.

Initiating the packing of AMUL Pouch Milk & distributing the same to the nearest

districts.

Financial Projections

Our Union will achieve a turnover of Rs. 270 crores with the above business plan

targeting to achieve a growth of about 22% as compared to this year. The net surplus is

estimated to be Rs. 85 Lacs.

317

267

24

24

0 50 100 150 200 250 300 350 400

Per K

g

milk

price ( in

Rs)

Milk Price

PriceDifference

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10