LOGISTICS (AAREY MILK CENTRE) 1. Govt run organization and not profit motive. Consumer subsidies are granted.

Aim to stabilize the price in the mkt. 2. Decrease in sales from 2008-12 after the WTO agreement in 2010 signed by various states. Other co-operatives like Mahananda were allowed and hence post the entering of the private sector, the market in Mumbai has been opened to all. The market has already been established. 3. There was an intention to allow more people to enter into the mkt so as to reduce the losses which they were suffering due to losses borne due to the subsidies provided. 4. All districts of Mahahrashtra. Animals are less for commercial purposes only excess of domestic consumption is sold to the mkt and through Co-Operatives. Low yielding animals and only 2 time milking in the day. The milk is collected in the morning from the taluka should reach within 4 hours from collection after which it is chilled immediately for better shelf life. If the villages are far away then each vehicle will cover less number of villages. 5. Initial quality check up is done and then chilled at the taluka after which it moves to the district where it is pasturised and bought to Mumbai. The entire production of the rural areas is not sufficient to meet the urban requirements. In summer there is a huge shortage of the milk whereby it is converted into Skimmed milk powder which is converted into reformed milk in the range of 5%-25%. If green is to be purchased more and hence higher prices will be charged for the same. 6. In excess condition , the milk will be converted into milk powder(life of 2 years) and butter at 26 degrees. 7. Once the milk reaches Mumbai, the pipelines are cleaned re-pasturise it before selling it to the final customers. The milk in order to have atleast a shelf life of 7 years at room temperatures was the reason why this milk was re-pasturised. Cow milk shld have 3.5% fat and free from cholesterol and 6-9 % for buffalos milk and these are the legal standards and if these stds are exceeded the providers are offered 20p extra per litre. The costing is made on this basis and are attempting to keep a some profit margin on the same to enhance survival. 8. All the vehicles for transportation of the milk are insulated as they are in the range of 450-700 kms. The vehicles are owned by the contractors and no more held by Aarey and if the milk does not reach the centre within the given time the responsibility lies with the contractor. 9. There are no intermediaries for Aarey and will only check the number of seals on the milk. 10. The 70 paise commission is for the milk procurement from Aarey to the booth only. The booth in combination decide to the contractor for transportation purposes. Aarey rates are ex-dairy rates inclusive of the 2.20 commission rates. (Dharit n Vinod to explain this) 11. 1 month advance booking only for Eid and money taken 3 days advance. 12. More milk to be procured from the rural areas itself in case of excess of demand or the milk powder to be used. 40% of the demands are met from the milk powder but has to be preplanned. The communication is made to the rural areas which is reliable and established. The eid customers have also been reduced due to the subsidiary products produced lie loose milk, butter etc.

13. In case of wastages, the loss is responsibility of the retailer or the previous person from whom the milk is purchased. The retailer and the transporter have their arrangements together in order to ensure minimization of losses. 14. The booth is to be maintained by the retailers themselves. The land has been allowed by the BMC to maintain and the ground rent was earlier born by Aarey till 2000 and they were charging Rs.200/- per month from these retailers but going forward it was to be maintained by the booth owners themselves. 15. Share of 2% in the market. Future prediction is difficult to make since Government decisions depending on the ruling party will depend. 16. The storage capacity has to be =to be amount of pasterised milk which is 4.5 lakh capacity. 17. Hazard Analysis Critical Control point where by all the cleanliness, breakdown, volume, quality checks are taken into consideration. 18. In case of delay, the milk is allowed to come into the dairy but it will be utilized for some other purpose rather than going waste. 19. Milking machines and an automatic feeding machine to the animals whereby the food drops in the vessel and passed on to the next animal line. 20. Aarey milk is a mixture of Cows milk and Buffalos milk. Apart from few states the number of buffalos are comparatively less. They are sensitive to diseases and maintaining them is very high. 21. Importing of animals is a tactic adopted but increases the cost of production since they have to be adjusted so as to make them robust to the Indian climatic conditions. Cross breeding is another technique adotpted. Jalgaon and Solapur are the only two places in Maharashtra which have large number of buffaloes and irrigated land with huge capacity of Bananas and Buffaloes. 4-5 hours of bath will increase production by .5 % 22. The reason for the price difference in Mumbai with Rest of Maharashtra is due to the cost of production and the urban areas of Mumbai.