NDDB takes over Prakasam cooperative dairy

To bring out Mother Dairy products from Dec 1

The National Dairy Development Board (NDDB) will bring out its Mother Dairy brand of milk and milk products from the Prakasam District Cooperative Dairy and market them throughout the state from December 1, 2005.

NDDB has taken over the Prakasam cooperative dairy and its milk powder plant at Ongole as the latter failed to repay Rs 63 crore due to the board. This would make Ongole the first production centre of NDDB in the state.

D Venkat, senior manager (quality and plant maintenance), NDDB, told Business Standard that the board would initially invest Rs 1.5 crore in reviving the milk powder plant with a capacity of 30 tonne per day.

"Swedish firm Alfa Laval, which installed the plant, would take up the repair and overhaul works and make the plant ready by next month. The Prakasam dairy had been defunct for 10-12 years, and though the milk powder plant with latest technology was set up 10 years ago, it had remained idle. Of the 7-8 lakh litres of milk produced everyday by farmers in Prakasam district, the society used to collect just 60,000 litres," he said.

After an elected body of employees' union expressed its helplessness to clear the mounting debts, NDDB took over the milk powder plant, processing and marketing of milk. As per the agreement, NDDB would run the dairy for seven years, collect its dues, and later hand it over to the elected body. As a goodwill gesture, NDDB has waived up to Rs 26 crore of the Rs 63 crore owed to it.

"The milk union promised to increase its present milk procurement from 60,000 litres to 1.2 lakh litres per day and sell it to NDDB at a reasonable price. NDDB will process the milk and market it under the Mother Dairy brand," Venkat said.

The milk powder plant, one of the biggest in south India, requires 3 lakh litres of milk per day.

As the Prakasam milk union cannot meet the demand, NDDB would get milk from dairies in Tamil Nadu, Karnataka and Visakhapatnam and convert it into milk powder. It will supply the milk powder back to the milk suppliers after collecting conversion charges from them.

"NDDB will run the milk powder plant at optimum efficiency. It will also make value-added products such as curd, flavoured milk, and a few other products of Mother Dairy brands," he said.