Hatsun Agro Product (HAP), a private sector dairy company in India with brands Arokya, Hatsun, and Arun Ice creams, has announced its procurement expansion plans in Andhra Pradesh, Telangana and Maharashtra. HAP has over 3100 milk collection centers that benefit farmers across various villages in Andhra Pradesh, Telangana and Maharashtra. HAP plans to aggressively expand this network of milk collection centers in these three states to serve over 1 lakh farmers effectively.
HAP plans to position its milk collection centers further at remote locations to ensure farmers have access to the facility and help them reap the real benefit of having access to such a facility in their own village, thereby providing them with market access leading to prosperity our rural sector.
Hatsun Agro Product procures 100% of the milk directly from farmers and has heavily invested in procurement infrastructure over the years to handle a significant volume of milk effectively.
HAP is India’s first dairy company to work on increasing farmer income by reducing the cost of production. The company has been collaborating at the University level to commercialize its high-yielding, protein-rich hybrid Napier green fodder (kambu/bajra) such as Co-4 and Co-5.
Many of HAP’s farmers have halved the cost of feeding their cows by cultivating Co-4 and Co-5 hybrid fodder. Using cow dung as manure, brush-cutters to save harvesting labor, rain guns to cut water consumption and milking machines, labor costs have reduced significantly.
Milk procurement ecosystem at HAP
- Transparency about farmers in all aspects – weighing, testing and billing in front of them
- Eko Milk Analyser for testing Fat & SNF in front of the farmers
- Cashless payment through direct bank transfer to farmers even before demonetization. This system has single-handedly eliminated mediators and loan sharks.
- Direct payment has brought farmers to the mainstream banking system that was earlier financially excluded and made them credit-worthy.
- An electronic weighing scale is being used for accurate measurement of milk
- All collection centers within 2 kilometers of the farmer’s place to ensure milk is collected fresh from the source
- Timely collection
- Fixed time for route vehicles monitored by a team
- Extension services to farmers by way of feed and fodder inputs, supply of cattle supplements and ethno veterinary care
- Animal husbandry services – support and guidance on clean milk production, disease control, and vaccination by a strong team of artificial inseminators, agronomists, animal husbandry professionals, and over 1,000 procurement staff.
- Hatsun processing and distribution system – Hatsun ensures a complete cold chain from milk procurement, processing and supply chain logistics until the milk and milk products reach the retail point. The collected milk is processed at its own processing facilities and distributed through company exclusive HAP Daily outlets of around 3500.