Nestle is likely to be threatened in manufacturing its Nestle range of dairy products

Recently, the Nestle India Ltd previously being engaged in reinstating and destroying large scale production of its Maggi instant noodles which has been mounting up to thousands of tonnes as such, is facing impending hardships from its soi-disant largest and oldest plant in in India, situated at Moga. A majority of the milk procurement facility of Nestle is met at Moga, which leads to the manufacture of Nestle dairy products at an accelerating rate. The youth which are being putting on to their Nestle long established family business as dairy farmers do not find it interesting any more. The dairy business seems to be venture some and grueling.

This plant which is situated in Moga is the only one out of the eight plants of Nestle in India where the processing of its various dairy products has been taking place like milk powder, condensed milk, yoghurt and buttermilk. The daily procurement of milk in this plant has been reported to be as 1.4 million kg. The milk and the Nestle nutritional products endowed 47.1% to the annual revenue of Nestle in the last year. But unrelentingly, the total volume of the dairy and the nutritional products had shrunk to about 2.3% from 138,772 tonnes to 135,591 tonnes.

The investment of Nestle in respect of milk collection and the distribution development had shown a downturn phenomenally to Rs.16.18 crore during the last year which was Rs.17.59 core in 2013. According to the annual reports made by the Nestle in the respective years, the figures were Rs.15.78 core in 2012, Rs.13.12 crore in 2011 and Rs.14.31 core in 2010. Due to the danger of degradation of the milk as to curdle quickly at the ambient temperature, the milk procurement has been centered in and around Moga which facilitates easy transportation of milk from the milk collection centers to the processing factories for the manufacturing of Nestle dairy products quickly.

As such it has been brought to light by the factory manager of the Moga plant of Nestle, Satish Srinivasan that the milk procurement of Nestle has been place from 1,640 large farmers and 70,312 small farmers. In this plant about 45% of the capacity is being used for the purpose of manufacturing the Nestle dairy products. But the emerging problem associated with the dairy sector of Nestle is that, the young men engaged in dairy farming are very eager to move to Canada. They are having this ambition because it is a home to a large number of Sikh immigrants.

In a word, it may be concluded that, the Nestle India Ltd is facing impending hardships from its soi-disant largest and oldest plant in India, situated at Moga. The youth which are being putting on to their long established family business as dairy farmers do not find it interesting any more. This business seems to be venture some and grueling. The total volume of the dairy and the nutritional products had shrunk to about 2.3% from 138,772 tonnes to 135,591 tonnes. In Moga plant, about 45% of the capacity is being used for the purpose of manufacturing the Nestle dairy products.

 

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