M Shah calls for modern processing plants, stronger fodder systems and expansion of dairy cooperatives across Bihar
PATNA — Bihar’s dairy cooperatives need to move beyond traditional liquid-milk marketing and significantly expand their value-added product portfolio, National Dairy Development Board (NDDB) Chairman M Shah has said.
Addressing a review meeting at the headquarters of the Bihar State Milk Co-operative Federation Ltd (Comfed) in Patna, Shah urged milk unions to focus on products such as ice cream, yoghurt, paneer and fermented dairy products to capture changing consumer demand.
He also called for the establishment of modern dairy processing plants capable of supporting the production and distribution of a wider range of value-added products.
NDDB seeks 60:40 or 50:50 business mix
Highlighting the changing structure of the dairy market, Shah said milk and conventional dairy products currently account for approximately 70% of the business mix, while value-added products contribute around 30%.
He suggested that Bihar’s dairy unions should work toward increasing the contribution of value-added products, with a potential target of 60:40 or even 50:50 between traditional and value-added dairy businesses.
The shift could help dairy cooperatives improve margins, reduce dependence on liquid-milk sales and create additional avenues for absorbing rising milk procurement volumes.
Products such as paneer, yoghurt, ice cream and fermented dairy foods can also provide opportunities to extend shelf life and cater to increasingly diverse consumer preferences.
Cooperatives encouraged to look beyond dairy
Shah also encouraged Bihar’s dairy cooperative network to explore business opportunities outside the conventional dairy sector.
Fruits and vegetables, as well as edible oils, were identified as potential areas for diversification.
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Citing NDDB’s initiatives in the mustard-oil sector, Shah said that linking pricing to parameters such as crude oil quality and moisture content had helped farmers secure returns above the minimum support price.
The approach, he suggested, demonstrates how scientific quality-based pricing can strengthen farmer returns and improve value realisation within agricultural supply chains.
Cow dung seen as another source of value
The NDDB chairman also highlighted the need to improve the economic utilisation of cattle dung.
He called for greater adoption of biogas production and organic manure systems, allowing dairy farmers and cooperatives to convert livestock waste into useful energy and agricultural inputs.
The meeting also stressed the need for scientific systems for disposing of dead animals, an area that requires stronger infrastructure and coordinated management in livestock-producing regions.
Fodder production remains critical
Shah identified quality fodder and fodder-seed production as key priorities for strengthening Bihar’s dairy sector.
He called for the expansion of fodder-development programmes and effective implementation of major government initiatives, including the:
- National Programme for Dairy Development (NPDD)
- National Gokul Mission
- White Revolution 2.0
Better availability of quality fodder is critical for improving animal productivity, controlling milk-production costs and strengthening the economics of dairy farming.
Milk procurement growth and cooperative expansion reviewed
The review meeting also assessed the recent increase in milk procurement in Bihar and discussed measures to expand the cooperative network through the formation of new dairy cooperative societies.
Officials also discussed strengthening Jeevika-Sudha sales outlets, which can provide additional retail access for Sudha dairy products.
The introduction of new varieties of Sudha cattle feed was another issue reviewed during the meeting, highlighting the importance of integrating feed supply with the dairy cooperative system.
A shift from milk collection to a broader dairy value chain
The meeting signals a broader strategic direction for Bihar’s dairy sector.
As milk procurement expands, simply increasing liquid-milk sales may not be sufficient to maximise value for farmers and cooperatives. Greater investment in processing, cold chain, product diversification, feed systems and market development could allow Bihar’s dairy cooperatives to capture more value from every litre of milk procured.
For Comfed and its affiliated unions, the proposed shift toward value-added dairy could therefore become an important component of the next phase of Bihar’s dairy-sector growth.
The message from the NDDB leadership is clear: Bihar’s dairy cooperative movement must evolve from primarily collecting and marketing milk to building a diversified, technology-driven dairy value chain.
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