The Hindu Business Line : Hatsun’s ‘Project White Gold’ set for full-scale launch

Chennai, Aug 15 Mr Pazhani Muthu, a sextagenarian of Karumapuram in Tamil Nadu’s Salem district, was a small farmer growing vegetables in his farm a few years ago. That was just enough to meet the needs of his family of four, including two sons. But as his sons grew up and needs increased, he had to look for various ways to improve his income.

Two things came in handy for him. One, his interest in rearing cows since he was a marginal farmer and two, the five-odd acres that his family had been holding on to for a long time.

Mr Pazhani Muthu was among the farmers who were handpicked by Hatsun Agro Product Ltd for its pilot run of the “Project White Gold”. Thanks to the project, he is now one of the successful and budding dairy farmers in the region so much so that his engineering graduate son has opted to help his family in dairy farming! Today, the 20-odd cows that the family owns give nearly 270 litres of milk a day. At an average Rs 12 a litre, it works to Rs 3,240. If one were to deduct the input costs of Rs 7 a litre, he would still end up making Rs 1,350 a day.

Project modalities

“Project White Gold aims at reducing the cost of production for every dairy farmer. It also aims at increasing the average yield of milk of the animal besides cutting labour costs and ensuring partial mechanisation,” says Dr M. Murugesan, who takes care of the veterinary side of Hastun for the project. “In turn, the company gains by ensuring that it gets milk from these farmers on a long-term basis,” he says.

“The project ensures that the cattle’s lactating period extends for 300 days. It also improves the life cycle of the cows,” says Mr Shane Whittaker, a dairy specialist from New Zealand who heads this project. He was interacting with journalists who were taken by Hatsun to its milk plant in Salem recently.

“For this project, either the Holstein-Friesian or Jersey cows are used or the semen of these bulls are inseminated in the local cattle. We are going in for more cross-breeds of the Holstein-Friesian or Jersey to make them disease resistant and yield more milk,” says Dr Murugesan. In comparison to these cows, the domestic varieties yield lower milk and their lactating period extends to only 250 days.

“We have now completed experimentation of the pilot project and are all set to begin the project. But the problem is getting loans for the deserving dairy farmers,” says Mr Whittaker.

Joining Norms

About 130 farmers were roped in for the pilot project. “By the year-end, at least 1,000 farmers will be covered by the project,” Mr Whittaker says.

But to be roped in by Hatsun, there are a few hurdles a dairy farmer will have to clear. First is that the farmer should have a land holding of not less than five acres. “The land-holdings are necessary for the farmers to grow their own fodder. While two types (O3 and O14) of grass are grown on one acre each, another acre will go for cultivating desmanthes and one acre for sorghum,” says Mr Whittaker.

Next, the farmer should show interest in dairying. The firm has its own way of finding out whether a farmer is interested or not and once a farmer is short-listed, the firm itself arranges for bank loans. A farmer will have to invest around Rs 8.5 lakh for rearing 25 cows. Even he has problems to raise that amount as loan, there is another plan where 10 cows could be reared. (See table).

Once the bank agrees to extend the loan, then a tri-partite agreement is signed wherein the company undertakes to remit the farmer’s dues to the bank from the milk he/she supplies.

“Our project can ensure that a farmer can get 200-220 litres of milk a day from his cattle all the 365 days in a year. Currently, pubic sector banks such as State Bank of India are providing loans to the farmers. Private banks have come forward to extend loans but they are quoting higher interest rates. That will mean, the farmer will have to pay Rs 32,000 a year more. We don’t want the farmer to pay more as interest,” says Mr Whittaker.

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