Amul – 2014

Abstract

This case describes the challenges faced by Amul in organising the dairy farmers into a co-operative and creating continuous opportunities for value additions. The participants are required to review the developments in the organisation and recommend a future strategy.

This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

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Resources

Exhibit 1: Range of products offered by Amul in 2014

Amul milk: Amul Taaza (double toned, 1.5%, toned 3.0%), Amul Shakti (4.5%)in poly pack, and Amul Gold (6%) fat in tetra pack, with varying fat content in poly packs of 500 ml, 1000 ml, 2 litres and 5 litres. Amul Diamond with a fat content of 7% was introduced in November 2012. Amul UHT milk available in one litre tetra packs.

Amul beverages: Amul Kool flavoured milk was available in tins, glass, and PET bottles in Elaichi (cardamom), Kesar (saffron) and rose flavours. Amul Café with coffee flavour and Amul Koko with chocolate flavour were also available.

Amul bread spreads: Amul butter (500, 100, 20, 8.1 gm), Amul Lite (9500, 200, and 100 gm).

Delicious (500, 200, 100, and single serve packs): bread spread with margarine prepared exclusively from vegetable oils and fats was introduced in 2013. Margarine was known as a butter substitute and was popular in the West.

Amul cheese: cheese blocks (200 gm, 400 gm, and 1 kg), cheese tins (400 gm), cheese slices (200 gm, 400 gm, 750 gm), chiplets (200 gm, 500 gm, and 1 kg).

Amul Gouda cheese: a Dutch variety of cheese made with cow's milk. The cheese is made in Sikkim. Available in packs of 250 gm and 1 kg.

Amul: Amul Pro is a malt-based drink for children.

Amul Emmental cheese: available in a 400 gm pack for the consumer and a large wheel for the institutional segment.

Amul ice cream: ice creams of various flavours in cones, cups, tubs, and take home packs in 1 to 2.2 litre size for home consumption and 5 litre for catering and institutional consumption. Ice cream made with pure milk; vegetable oil is not added.

Amul paneer: available in blocks and diced form. Diced paneer –100 gms, 200 gms and 1 kg; block paneer: 200 gms and 1 kg.

Masti Dahi: curd made from pasteurised toned milk. In Poly Packs – 200 gm, 400 gm, 1 kg, and polypropylene cup –200 gm, 400 gm, 100 gm.

Amul Probiotic Dahi: curd injested with health providing available in 200 gm and 400 gm cups.

Amul ghee: clarified butter available in various pack sizes; pouch: 500 ml and 1 litre tin : 200 ml, 280 ml, 500 ml, 1 litre, 2 Litre, and 5 litre, refill: 200 ml, 500 ml, and 1 litre; PET jar: 200 ml and 500 ml; bulk pack:10 kg plastic bucket, 15 kg tin.

Sagar ghee: packing – pouch: 500 ml and 1 litre, tin: 1 litre, 2 litres, and 5 litres.

Amul cow ghee made from cow's milk was available in pouch form: 500 ml and tin: 1 Ltr

Amul infant milk powder: Amul spray available in 1 kg pouch/tin, 500g pouch/tin/refill, 200g pouch/refill, Rs 10 pack, Rs 5 pack.

Nutramul: malted milk food suitable for all ages, especially children, available in 500 gm and 1 kg packs.

Amul Gulab Jamun: 1 kg (26 units of Gulab Jamun), 500 g (13 units of Gulab Jamun).

Amul Shrikhand: 100 g, 200 g, 500 g, 1 kg, 10 kg, 20 kg available in multiple flavours ranging from Elaichi, Kesar, Mango, BadamPista, Amrakhand, Rajbhog, butterscotch, strawberry, and pineapple.

Amul Mithaimate: sweetened condensed milk available in 400 g tin: for household consumption, 7.5 kg tin: bakery and institutions and 280 kg barrel: for industrial use like biscuit and chocolate manufacturing, etc.

Amul chocolates: 150, 500 gm packs.

Amul fresh cream: 200 ml: for household consumption and 1 Ltr : for caterers, hotels, restaurants and institutions.

Amul butter milk, in 500 gm poly pack.

Source: www.amul.com accessed on September 6, 2013

Exhibit 2: Profiles of the Architects of Amul

Mr. Tribhuvandas K. Patel

Tribhuvandas Patel was a social worker who organized the small and marginal milk farmers in Kaira district, Gujarat State, into co-operatives under the guidance of Sardar Vallabhbhai Patel, a national leader who became the Home Minister of Independent India. Born on October 27, 1903, he was among the first of eight children who enrolled for the school opened by Charotar Education Society. He received his primary and secondary education in Anand and worked with Ambalal Motibhai Patel, Secretary of CES. Later he studied at the Gujarat Vidhyapeeth, started by Gandhiji in October 1920. He participated in the opposition to the Rowlatt Act 1919 1 . In 1920, he wrote an essay on cooperation and resolved to persuade the dairy farmers not to send the milk to a government creamery. He started a printing press in Anand in 1924 under the title Charotar Printing Press. He was fined and imprisoned for printing nationalist conflicts. Tribhuvandas owned 20 acres of land and lost 16 acres with the enactment of the Tenancy Act of 1947. He met Sardar Patel in 1938. In 1942 he participated in the civil disobedience and quit India movement and was imprisoned and sentenced for a term of 2.5 years. He was elected vice president of Khaira District Congress Committee.

Tribhuvandas set off on foot to convince the villagers to form a co-operative society for managing the milk business. By October 1946, he was successful in forming two societies one in Hadgud and the other one in Gopalpura. Hadgud was registered as an affiliate primary co-operative on October 7, 1946 and the first milk collection started on that date. Hadgud was predominantly a Muslim community, and Gopalpura was a mixture of Hindus and Christians. In forming the society he developed a principle that the society was open to any villager with a milk cow or a buffalo irrespective of religion, caste or community. The two societies put together collected 250 kg of milk per day and transported it to Anand. By 1946, he had registered five milk societies and formed a co-operative union with 70 promoters. The key union was Anand Taluk cooperative purchase and sales union. He registered the Khaira District Cooperative Milk Producers' Union in December 1946.

Dr. Kurien

Dr. V. Kurien, a post-graduate engineer from Michigan State University, had joined the co-operative as an engineer in 1950 and became the first Chairman and Managing Director of GCMMF when it was formed in 1973. He was a graduate in metallurgy and nuclear physics. He had studied subjects in dairy engineering to fulfil the terms of the Government of India fellowship at the Michigan State University. The University had a well-developed faculty in Dairy Science and Engineering. On his return he was posted as an engineer at the Government Research Creamery at Anand. While working at the creamery he came in contact with Mr. Tribhuvandas Patel. Mr. Patel had leased a part of the facilities at the creamery to process milk collected by Amul. He sought Dr. Kurien's help in repairing and maintaining the equipment. In one of his interactions, Dr. Kurien told Mr. Patel that the co-operative should install its own HTST pasteurizer and cold storage to be successful. Mr. Patel later sought Dr. Kurien's help in erecting and commissioning the plant for pasteurizing the milk. Dr. Kurien resigned from Government service and joined the co-operative as an engineer in 1950. In turn Dr. Kurien met his friend Mr. H. M. Dalaya who had graduated in Dairy Science and Engineering from Michigan State University and worked in Wisconsin for Kraft Food Corporation, the largest cheese manufacturing company in the United States. Between October 1952 and April 1953, Kurien spent five months in New Zealand and two months in Australia to study dairy management processes at the New Zealand Dairy Research Institute at Massey Agricultural College 2 . His fellowship was supported by the Colombo Plan 3 . He had held multiple responsibilities as the Chairman of the Institute of Rural Management at Anand (IRMA) and National Dairy Development Board. Dr. Kurien had received multiple awards from national and international organizations. He was regarded as the father of the white revolution in the country. He died on June 13, 2012.

H.M. Dalaya

Mr. H.M. Dalaya joined Kaira union as Assistant Manager in 1950. He came from Mathura, Uttar Pradesh, and lived in Karachi, Pakistan, before the partition. His family owned Balaram Dairy in Karachi. He studied Dairy Technology at Michigan State University, after his graduation from Poona Agricultural College. Dalaya did his practical training at a milk powder plant of creamery package in Hartford, Wisconsin. He had also worked at the cheese plant of the Kraft Cheese Company. This company was one of the pioneers in developing technology for processing natural cheese and creating saleable products in cubes and slices. On returning to India, he met Mr. Medora, who was a classmate of his batch in Pune Agricultural College and Michigan State University. He met Kurien in Bombay and responded to his request to spend some time in Anand. Dalaya interacted with Tribhuvandas and took charge of the co-operative's pasteurising plant. He was appointed as an Assistant Manager in 1951 on a salary of Rs. 350 a month. Dalaya was later responsible for the development of technologies for converting buffalo milk into milk powder and for converting it to cheese. It was perceived by the dairy technologists that buffalo milk was unsuitable for such conversions.

Source: Descriptions presented in Thomas R. Carter, “They Shaped AMUL,” in Amul, the Taste of India, Fifty Years of Milk and Health, Golden Jubilee Commemorative Volume, 1996, Kamath, M. V., 1989, Management Kurien-Style: The Story of the Whilte Revolution, Konark Publishers, Verghese Kurien, 2005, I Too had a Dream,Roli Books, and Ruth Heredia, 1997, The Amul India Story, Tata McGraw HIll

Notes:

  • The Rowlatt Act passed by the British Government empowered the rulers to arrest and imprison anyone suspected of terrorism for two years without a trial. This act was opposed by the freedom fighters.
  • Opened in 1928, Massey Agricultural College was one of the oldest agricultural colleges in New Zealand. It offered undergraduate and post-graduate programmes in Agriculture (https://www.massey.ac.nz/massey/about-massey/history-of-massey-university/1879—1926/ accessed on September 19, 2013).
  • The Colombo Plan was launched on July 1, 1951 as a multi-country co-operative initiative to advance the socio-economic growth of Asian and Pacific countries. Its focus was on mutual help for human resource and infrastructure development (http://www.colombo-plan.org/index.php/about-cps/history/ accessed on September 25, 2013)

Exhibit 3: Capacities of Affiliated Dairies in Lakh Liters Per Day

Dairy

2009

2012

Amul Dairy, Anand

16

21

Dudhsagar Dairy, Mehasana

22

22

Sabar Dairy, Himmatnagar

12

15

Banas Dairy, Palanpur

22

25

Baroda Dairy, Baroda

4

5

Sumul Dairy, Surat

9.5

10

Panchmahal Dairy, Godhra

4

6

Uttam Dairy, Ahmedabad

2

2.5

Gopal Dairy, Rajkot

2.5

2.5

Dudhsagar Dairy, Manesar

9.61

30

Dudhdhara, Bharuch

1

1

Amul Virar Plant, Virar

NA

6

Madhur Dairy Gandhinagar

2

2

Vasudhara Dairy, Boisar

3

4

Vidya Dairy, Anand

1

1

Mother Dairy Gandhinagar

25

35

Sarvottam Dairy, Bhavnagar

NA

3

Amar Dairy, Amreli

NA

2.5

Source: GCMMF Annual Reports: 2009–2010 and 2012–13

Exhibit 4: Key Performance Indicators of GCMMF

Year

Milk procurement average per day (lakh kg per day)

Sales (Rs crore)

Average procurement price paid to the members (Rs per kg fat)

Producer members

Village societies

2000–01

45.76

2259

183

2117555

10675

2001–02

47.32

2337

184

2158576

10852

2002–03

52.35

2746

185

2223796

11132

2003–04

51.13

2894

208

2359875

11400

2004–05

58.89

2923

212

2415375

11615

2005–06

64.38

3774

239

2483032

11962

2006–07

67.25

4279

284

2605487

12782

2007–08

75.9

5255

298

2716378

13141

2008–09

87.19

6711

337

2797937

13328

2009–10

92.82

8005

400

2909597

15322

2010–11

94.57

9774

463

3031186

15712

2011–12

109.25

11668

465

3181320

16117

2012–13

131.03

13735

486

3183800

16914

Source: GCMMF Annual Reports 2009–10 and 2012–13

Exhibit 5: Select Items of Balance Sheet and Profit and Loss Account of GCMMF Rs in Crore

Items

2008–09

2009–10

2011–12

2012–13

Share capital

50

50

100

100

Reserves

37

43

58

66

Grants

3.05

2.63

1.97

1.71

General fund

40.6

47.4

34

39

Bad debt reserve fund

3.24

6.82

16

21

Fixed assets

131

151

191

268

Inventories

355

372

53

87

Sundry debtors

22.44

28.92

56

113

Cash and bank balance

462

512

385

189

Loans

13.75

8.4

NA

NA

Current liabilities and provisions

453

516

981

1262

Loans and advances

606

675

20.01

49.8

Sales

6695

7997

11668

13735

Net profit

22

24

32

34

Source: Annual Reports of GCMMF 2009–10 and 2012–13

Exhibit 6: Performance of Punjab Co-operative Miik Producer's Federation

Particulars

Unit

07–08

08–09

09–10

10–11

11–12

Functional societies

Cumulative numbers

6155

6432

6474

6822

7370

Membership

Cumulative numbers in lakh

3.62

3.65

3.65

3.75

3.92

Avg. daily milk procurement

Lakh kg per day

8.21

9.21

9.49

10.48

11.46

Peak milk proc

Lakh kg per day

12.39

14.13

14.88

14.47

17.76

Fodder seed supplied

Tonnes

572

802

1579

2233

3902

Cattle feed sold

Tonnes

86174

93751

100898

92622

90274

Avg. daily city supply

Lakh liter per day

6.16

6.58

7.27

7.94

8.6

Sale of fluid milk

Lakh PKTS/BTLS

61.11

56.38

63.86

55.53

58.77

Sale of sweet lassi

Lakh packets

29.51

31.97

37.57

34.61

34.66

Sale of ice cream

Lakh litres

17.68

16.06

18.59

19.19

17.32

Exports

Rs lakh

1334.9

1500

1085

1149

1723

Turnover

Rs in crore

931

1150

1255

1745

1742

Source: www.verka.coop/result.php accessed on September 20, 2013

Exhibit 7: Range of Products and Brands of Nestlé S.A

Product category

Brands

Baby foods

Cerelac, Gerber, Gerber Graduates, NaturNes and Nestum

Bottled water

Nestlé Pure Life, Perrier, Poland Spring and S. Pellegrino

Cereals

Chocapic, Cini Minis, Cookie Crisp, Estrelitas, Fitness and Nesquick Cereal

Chocolates and confectionery

Aero, Butterfinger, Cailler, Crunch, KitKat, Orion, Smarties and Wonka

Coffee

Nescafé, Nescafé3 in 1, Nescafé Cappuccino, Nescafé Decaff, Nescafé Dolce Gusto, Nescafé Gold, Nespresso

Culinary, chilled and frozen food

Buitoni, Herta, Hot Pockets, Maggi, Stouffer's and Thomy

Dairy

Carnation, Coffee – Mate, La Laitierre and Nido

Drinks

Juicy Juice, Milo, Nesquick and Nestea

Food service

Chef, Chef-Mate, Maggi, Milo, Minor's, Nescafé, Nestea, Sjora, Lean Cuisine, and Stouffer's

Health nutrition

Boost, Nutren Junior, Peptamen and Resource

Ice cream

Dryer's, Extreme, Häagen-Dazs, Movenpick, Nestlé Ice Cream

Pet care

Alpo, Bakers Complete, Beneful, Cat Chow, Chef Michael's Canine Creations, Dog Chow, Fancy Feast, Felix, Friskies, Gourmet, Purina, Purina ONE and Pro Plan

Sports nutrition

PowerBar

Weight management

Jenny Craig

Source: www.Nestle.com accessed on September 6, 2013

Exhibit 8: IFCN Top 20 Milk Production and Processing Countries – 2011

No.

Country

Milk production in mill tonnes natural content

Milk delivered in mill tonnes natural content

1

India

121.2

20.5

2

USA

89

88.5

3

Pakistan

35.6

1.1

4

China

37.4

32.8

5

Brazil

33

22.5

6

Germany

30.3

29.3

7

Russian Federation

31.7

16.4

8

France

25.3

24.7

9

New Zealand

18.9

18.9

10

United Kingdom

14.1

13.8

11

The Netherlands

12

11.6

12

Turkey

12.8

7.1

13

Poland

12.1

9

14

Argentina

12

10.7

15

Italy

11.6

10.8

16

Mexico

11.1

7.7

17

Ukraine

11.1

4.6

18

Australia

9.6

9.3

19

Iran

9.7

7.3

20

Canada

9.2

8.8

Source: www.ifcndairy.org/media/bilder/inhalt/news/DR2012/IFCN-Dairy-Report-2012 accessed on September 3, 2013

Exhibit 9: Major Exporting Countries of Dairy Products

2011

2010

Sr No.

Country

Qty

Value

Sr No.

Country

Qty

Value

1

Germany

58,53,689.00

10,514.00

1

Germany

56,99,891.00

9,239.00

2

France

35,66,512.00

8,259.00

2

France

36,19,399.00

8,167.00

3

New Zealand

19,41,259.00

8,028.00

3

New Zealand

20,85,375.00

7,082.00

4

Netherlands

23,57,812.00

7,938.00

4

Netherlands

26,66,313.00

6,768.00

5

USA

13,00,576.00

3,641.00

5

Ireland

13,94,774.00

3,402.00

6

Belgium

16,86,453.00

3,316.00

6

USA

24,61,605.00

3,020.00

7

Ireland

7,52,273.00

2,904.00

7

Belgium

17,19,100.00

3,002.00

8

Italy

7,05,301.00

2,861.00

8

Denmark

9,11,710.00

2,969.00

9

Denmark

7,86,438.00

2,709.00

9

Italy

7,64,139.00

2,960.00

10

Australia

5,44,957.00

2,036.00

10

Australia

6,11,632.00

1,966.00

Source: agriexchange.apeda.gov.in/indexp/Product_description_32head.aspx?gcode=0404 Accessed on September 7, 2013

Exhibit 10: Major Importing Countries of Dairy Products

2011

2010

Sl No.

Country

Qty

Value

Sl No.

Country

Qty

Value

1

Germany

14,03,801.00

2,104.00

1

United Kingdom

23,58,018.00

6,621.00

2

Saudi Arabia

4,89,570.00

1,805.00

2

Germany

35,01,271.00

5,920.00

3

Russian Federation

4,76,813.00

2,021.00

3

Italy

34,75,528.00

4,508.00

4

Spain

11,88,107.00

2,372.00

4

France

15,21,045.00

3,255.00

5

China

9,06,045.00

2,620.00

5

Belgium

16,77,021.00

3,231.00

6

United Kingdom

11,69,123.00

3,560.00

6

Netherlands

18,85,471.00

2,835.00

7

France

15,38,029.00

3,860.00

7

USA

5,16,977.00

2,833.00

8

Netherlands

24,57,011.00

3,868.00

8

Saudi Arabia

8,24,148.00

2,819.00

9

Belgium

17,51,834.00

3,918.00

9

Spain

11,99,301.00

2,109.00

10

Italy

36,23,450.00

5,166.00

10

China

7,45,386.00

1,970.00

Total

1,74,23,581.00

36,403.00

Total

1,77,04,166.00

36,101.00

Source: agriexchange.apeda.gov.in/indexp/Product_description_32head.aspx?gcode=0404 Accessed on September 7, 2013

Exhibit 11: Top 20 Milk Processing Companies 2012

No.

Company name

Country

Location of dairy processing plants

Market share in % of world milk production

Milk intake in mill. tonnes

Dairy turnover US-$ Billion

1

Fonterra Co-operative Group

New Zealand

International

3

21.6

16.4

2

Dairy Farmers of America

USA

USA

2.4

17.1

13

3

Groupe Lactalls (Parmala)

France

International

2.1

15

16.9

4

Nestlé

Switzerland

International

2.1

14.9

19.1

5

Dean Foods

USA

USA

1.7

12

13.1

6

Arts Foods/MUH/Milk Link

Denmark/Sweden

Denmark/Sweden/ DE/United Kingdom

1.7

12

12

7

Friesland Campina

The Netherlands

Netherlands/DE

1.4

10.1

13.4

8

Danone

France

International

1.1

8.2

15.6

9

Kraft Foods

USA

International

1.1

7.8

7.5

10

DMK

Germany

Germany

1

6.9

6.4

11

Sapute Inc.

Canada/USA

Canada/USA/Argentina

0.9

6.3

7

12

Glanbia Group

Ireland

International

0.8

6

3.9

13

Land O'Lakes Inc.

USA

USA

0.8

5.9

4.3

14

California Dairies Inc.

USA

USA

0.6

4.6

3

15

Unternehmensgruppe Theo Muller

Germany

International

0.6

4.4

6.5

16

Groupe Sodlaal

France

France

0.6

4.1**

5.7

17

Mengnlu Dairy Company Ltd.

China

China

0.6

4.1

5.8

18

GCMMF (Amul)

India

India

0.6

4**

2.5

19

Yill Group

China

China

0.6

4

5.8

20

Bongrain SA

France

International

0.5

3.6

5.5

Sum of Top 20

24%

172.8

183.4

**Estimated.

Source: www.ifcndairy.org/media/bilder/inhalt/news/DR2012/IFCN-Dairy-Report 2012 accessed on September 3, 2013

Exhibit 12: Significant Importers of Dairy Products from India

Product: Dairy Products. Value in crore, quantity in tons

2010–11

2011–12

2012–13

Country

Qty

Value

Qty

Value

Qty

Value

Afghanistan

561.7

840.81

0.9

2.85

1,076.73

1,798.20

Algeria

187

244.64

0

0

6,092.50

9,514.09

Australia

738.77

1,016.87

758.92

1,569.89

715.82

1,564.87

Bahrain

674.49

1,194.65

347.48

744.63

1,118.97

2,216.85

Bangladesh

4,979.66

6,492.05

68.21

177.3

17,869.63

25,910.72

Bhutan

540.84

482.12

217.59

86.07

755.5

1,526.73

Egypt Arab Republic

3,647.35

6,643.98

807.34

1,636.23

11,260.74

17,906.48

Hong Kong

542.81

606.72

473.14

544.3

434.46

577.28

Korea Republic

351.98

455

114.97

222.78

3.11

18.79

Kuwait

533.02

1,043.25

408.26

942.46

560.75

1,307.50

Malaysia

113.22

167.63

112.49

219.91

743.34

1,183.67

Mauritius

126.99

222.65

106.88

259.61

129.27

318.38

Nepal

3,058.70

4,403.21

12,002.66

3,502.68

3,282.13

3,092.73

Pakistan

1,444.48

2,145.33

0

0

4,247.76

6,644.10

Saudi Arabia

1,079.61

1,570.59

465.7

1,158.80

5,681.88

9,911.70

South Africa

131.69

299.89

8.2

14.73

8.65

28.81

Sri Lanka

139.23

209.95

123.13

243.6

133.95

253.76

Syria

599.21

910.99

99.4

187.8

1,500.00

2,297.38

Tanzania Republic

44.13

67.77

13.86

19.81

44.41

73.71

Thailand

356.8

725.25

97.27

216.85

570.52

973.91

United Arab Emirates

5,845.35

9,479.37

4,036.08

9,365.33

7,026.47

14,281.75

United States

654.45

1,068.88

524.79

1,111.40

845.52

2,110.34

Total exports to all countries

37,435.86

54,797.42

25,639.49

28,935.62

87,824.18

1,41,209.78

Source: agriexchange.apeda.gov.in/indexp/Product_description_32head.aspx?gcode=0404 Accessed on September 7, 2013

Appendix I: Cheese Making and Types of Cheese

Cheese making is more than 4000 years old. There are numerous types of cheese (cheese.com) depending on the country and region of origin, nature of pasteurization, fat content, colour, and texture. It is generally made from cow's milk. It is also made from the milk of other cattle like buffalo, goats, and camel. It contains fat and protein from milk.

Cheddar cheese, made from cow's milk originated in England in the region of Somerset. It is pale yellow in colour with a fat content of 9%.

Mozzarella cheese made from cow's or buffalo's milk originated in Italy. It is white in colour and has a fat content of 45%.

Emmental cheese originated in Switzerland. It is made from cow's milk. It is pale yellow in colour with a fat content of 40%.

Gouda cheese originated in Gouda, The Netherlands. It is made from cow's milk and has a fat content of 46%.

Paneer, originating in India, is a fresh cheese made from both cow's and buffalo's milk. It has a fat content of 20.8%.

Dairies added value by adding spices and processing the natural cheese further to form slices, cubes, and sauces.

Parmesan cheese also originated in Italy. It is an extra hard cheese made from cow's milk.

Earlier, the enzyme that was added to curdle the milk for making cheese was obtained from the intestine of a calf. Over the years, synthetic alternatives were developed. This made production of cheese for vegetarians possible. Industrial scale cheese making started in 1815 in Switzerland.

Whey is the liquid left behind after the curd from the milk is removed.

Source: www.cheese.com accessed on September 5, 2013

Appendix 2: Production of milk over the years

Year

Milk (million tonnes)

1950–51

17

1955–56

19

1960–61

20

1968–69

21.2

1973–74

23.2

1979–80

30.4

1980–81

31.6

1981–82

34.3

1982–1983

35.8

1983–84

38.8

1984–85

41.5

1985–86

44

1986–87

46.1

1987–88

46.7

1988–89

48.4

1989–90

51.4

1990–91

53.9

1991–92

55.7

1992–93

58

1993–94

60.6

1994–95

63

1995–96

66.2

1996–97

69.1

1997–98

72.1

1998–99

75.4

1999–2000

78.3

2000–01

80.6

2001–02

84.4

2002–03

86.2

2003–04

88.1

2004–05

92.5

2005–06

97.1

2006–07

102.6

2007–08

107.9

2008–09

112.2

2009–10

116.4

2010–11

121.8

2011–12

127.9

This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

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