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Do GOACAN a favour, circulate this email to your
family members, relatives, neighbours and friends.
Help others be BETTER INFORMED,
The time is come for the people of Goa
to ORGANISE not AGONISE !!
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Negligence milks Goa Dairy dry
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Sharp decline in sales and the ouster of the chairman in an unprecedented 
no-trust motion on Wednesday has indeed soured both relations and 
revenues at the Goa Dairy in Curti-Ponda.

Goa Dairy has regularly been in the news for the wrong reasons. In July 
2005, Chief Minister Pratapsing Rane criticised the quality of cattle feed 
produced by Goa Dairy, stating it was both substandard and expensive 
in comparison to competitive products.

Barely two months later, Animal Husbandry Minister Mickky Pacheco 
and FDA officials raided the Goa Dairy plant, following complaints regarding 
substandard milk.

Then from January onwards, average milk sales have sharply declined from 
93,392 litres per day to 75,742 litres per day in May.

"Goa Dairy was once a profit making body. But since March, it has been 
generating monthly losses of about Rs 20 lakh," says Anup Dessai, former 
chairman and present director at Goa Dairy.

While some say the drop in sales is due to the hike in milk price in January 
from Rs 15.50 to Rs 16.50 per litre and decline in supply of milk, some 
directors at Goa Dairy and a number of milk producers have, instead, 
alleged that sales have plummeted mainly due to mismanagement at Goa Dairy.

Take for instance, the homogenised milk, launched by Goa Dairy in July 2005. 
>From a sale of 3,510 litres per day in January, the sales plunged to 131 
>litres 
in April and in May, not a single litre of homogenised milk was sold.
Dessai has attributed the plunging sales in homogenised milk to the "sheer 
failure in marketing policy."

According to sources, sales at Goa Dairy have steadily declined over the 
past few months, although there is high demand for milk. Some private milk 
producers from outside the State have capitalised on this and have churned 
out high sales in the State.

In addition, decline in local procurement and an increased dependence on 
out-sourcing milk from other States has only added to Goa Dairy's woes.
"Local procurement can be raised if proper cattle feed is made available to 
farmers. But since the past few months, the Goa Dairy's cattle feed plant 
has failed to meet the demand for cattle feed," said Laxman Joshi, a milk 
producer and director at Goa Dairy.

According to Anup Dessai, the Karnataka Milk Federation at Kolar near 
Bangalore has been the main supplier to Goa Dairy for the last six years.
"We had no problems with Kolar for the past five years. Then last year, 
some directors began to take commission from private parties to supply 
milk to Goa Dairy. As such, Goa Dairy reduced its regular order from Kolar. 
In turn, Kolar demanded higher rates because Goa Diary placed a small order."

Commenting on Goa Dairy's Cattle feed plant, Mr Dessai said: "I had set up 
a committee to study the market situation, before making purchases," said 
Mr Desai. "This practice reaped in good results. After I ceased to be chairman, 
this system was stopped and this has affected the cattle feed plant," he added.

On the growing losses at the cattle feed plant, Anup Dessai said the problem 
arose after cotton seed extraction worth a staggering Rs 1.2 crore were 
purchased for the plant in December 2005 and January 2006."We were told 
that the materials were bought at cheaper rates. But when we compared this 
rate with other milk unions, we found our rates much higher. An inquiry is 
now being conducted in the matter," Dessai said.
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HERALD 26/06/06 page 1
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GOA CIVIC AND CONSUMER ACTION NETWORK
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promoting civic and consumer rights in Goa
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GOACAN Post Box 187 Margao, Goa 403 601
GOACAN Post Box 78 Mapusa, Goa 403 507
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