HATSUN
Corporate

Process of Procurement

Hatsun's procures fresh milk directly from the farmers.  To facilitate it in this process Hatsun has around 4,500 'Hatsun Milk Banks' (HMBs) covering over 8,000 villages.  Everyday 3 lakh plus farmers pour their milk at these HMBs.  At the HMBs every farmer's milk is tested for its quality.  Based on the quality, per liter price of milk is determined with the help of a two way price chart.  The two parameters tested for determining quality is Fat and SNF.

Based on the quality and the number of liters poured by the farmer, his or her total amount is calculated.  This process is done for each and every farmer who pours milk at the HMB.  Once all the tests are done, each farmer's data (quantity, Fat & SNF% along with the farmer's unique number) is entered in a scan-able data sheet.  This sheet is sent to the Hatsun's computer center where it is scanned and based on the same the farmer is paid every week on a fixed day of the week. The entire farmer's data base is managed through a state-of-the-art computer software system. It would not be out of place to mention that Hatsun has been paying the farmers on time every week without any exception –rain or shine.  Hatsun takes great pride in maintaining this track record for the last two decades.  The entire dairy farming community in the milk shed where Hatsun operates is aware of this unique track record.

Hatsun operates more than 800 rural milk procurement routes.  These routes have a regular route plan with the timing to pick up milk cans for each HMB/village in the morning and evening.  All the farmers have to pour the milk before the milk truck reaches their HMB.  Once all the farmers have poured their milk, the milk is collected in cans and loaded on to the trucks on the precise time fixed for picking the cans at the HMB.  After collecting milk from all the allotted HMBs the milk procurement vehicle arrives at the Hatsun Milk Chilling Center (CC).  The vehicle has to arrive at the milk chilling center at the fixed arrival time for the vehicle at the CC. At the CC the milk is tested again for more parameters than at the HMB.  Once the milk is tested organoleptically it is weighed, a sample is taken for more detailed tests and pumped to the chilling unit.  The samples are taken for detailed testing.  Once all the vehicles arrive and all the milk transferred for chilling the samples are taken for testing.  Once the tests are completed and the suitability of the entire CCs milk is confirmed to meet Hatsun's strict quality norms, the milk is loaded into a road milk tanker and sent to the dairy.  At the dairy the milk is put through more tests before taking it up further processing.

In order to get adequate quantity of quality (as per the rigorous QA norms) milk, Hatsun undertakes a series of measures to help the farmers.  Some of the measures taken are as follows:

  • Animal Health Care - One of the primary concerns of the dairy farmer is 'who will take care of my milch animal?'  To erase this question from the farmer's mind, Hatsun has been having a team of qualified veterinary doctors to take care of the farmer's milch animal.  These doctors visit the villages regularly on a fixed time.  The farmers bring their animal requiring treatment and he/she is charged a nominal amount for the services.
  • Artificial Insemination - In order to ensure that the farmer's milch animal produce a calf every year, Hatsun has trained Inseminators who visit the farmers daily.  At that time the farmers bring their milch animals which require insemination based on the symptoms shown by the animal.
  • Fodder - Hatsun encourages the farmers to cultivate their own fodder.  A team of agricultural graduates are available with Hatsun.  These agricultural graduates visit the farmers' field test the soil conditions and asses the water quality and quantity.  Based on the results they advise on what variety of fodder to grow and also the package of practices to be adopted to ensure the success of the fodder crops.
  • Balanced Cattle feed - Hatsun manufactures cattle feed as per its own formulation based on the needs of its farmers. The cattle feed are sold to the farmers on credit through the HMBs and the amount is deducted from the farmer's weekly milk bill.
  • Advice for larger farms - The average milch animal holding in the milk shed where Hatsun is operating was two animals per farmer.  One of the constraints faced by the farmers limiting his animal holding was the shortage of labour.  To support the farmer increase his animal holding Hatsun sources appropriate technology/equipments to help the farmer automate his farm to an optimum level.  Milking machines, brush cutters, chaff cutters etc., are some of the equipments made popular among the dairy farming community by Hatsun.