Transparency in Milk Procurement – the Story of Mahendra Pawar

Mahendra Pawar, our milk collection partner in Rahuri, Ahmednagar, Maharashtra collects close to 1000 liters milk every day at his VLCC.

At Prabhat Dairy, Sunfresh Agro (Groupe Lactalis) we operate 550+ VLCCs (village level collection center), managed by collection partners, who in turn supply milk collected from farmers to our nearest chilling centers (CCs). Pawar, a very enthusiastic young gentleman, was explaining to us how he works hard with existing farmers, makes effort to add new farmers, goes door to door to explain benefits of associating with Lactalis; the biggest among them being absolute transparency in testing, says Pawar. Never ever in his 5 years and lacs of liters with us, has there been a single instance of complaint with fat & SNF measurement in milk poured by farmers. Absolute, impeccable, irrefutable transparency; that’s Lactalis.

Now, just across the road, barely 20 meters from where Pawar operates, is a VLCC of a ‘reputed’ competition brand. And we know, quite regrettably, the value of transparency is not shared by many in the industry. I inquire with Pawar; does the competition center also offer transparency? Does the farmer get paid exactly for the quality that he brings? Yes, says Pawar and adds, there is no other way for him, he’s just across the road. He says, “farmers who pour milk to the competition center, first come to me to get their milk tested”. Just imagine, the farmer supplying milk to competition (for any reason) is more sure of Lactalis than his buyer. Can you get a better certificate?

Is this a story of Mahendra Pawar alone? Thousands of our farmers, hundreds of our collection partners have the same thing to say. With Lactalis you are sure of transparency. There will not be any fudging of even a fraction of a point to ‘manage’ farmer pay-out. In my opinion, this should be hygiene. I will be most happy when entire industry resorts to transparent, honest methods of dealing with milk suppliers and we cease to have this ‘unfortunate’ edge. But for now, transparent practices IS our sharp edge! What is more important? The rate chart hung on the board outside a collection center? or the money that goes to the farmers’ pocket? We pay more, we pay fair for every liter of milk, even as we are competitive on the rate-board.

We are transparent to the milk producers, to all our suppliers, our people, the distributors and consumers, not because that is a competitive edge, but because that is what we are and that is the way to be. We shall remain true to ourselves and to the community whether or not that remains a competitive edge! That’s what we stand for.

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