- India is a world leader in milk production. Yet, the market is largely unfocused, fragmented, and riddled with misconceptions.
- A former investment banker, Manish Jain has spent the past eight years trying to understand the 80 million farmers behind India’s $30 billion dairy industry. Nitara, his platform, pioneers a farm-to-friend approach that aims to fix a dysfunctional system from the bottom up
- “At every stage, I saw a system trying to consistently mine the farmer, and that farmer mining the cattle,” he said. “Our vision is to upgrade the market as we go along, correct the information asymmetry that exists between the buyer and seller today.”
- Grounded in the science of genetics, nutrition, and management, he counters the existing industry norms by bringing data and digitisation, believing that to milk the situation, he needs to first fix the ecosystem
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Thesis: In the world’s largest milk-producing market, large dairies, private investors, startups, and even cooperatives have a narrow focus: the quantity of milk, its fat and non-soluble fat (SNF) content on the one hand, and the retail customer on the other. The ~$30 billion industry that largely runs on these two rails is a tell-tale patchwork of peaks, plateaus, and plunges. Nearly three-fourths of the 80 million farmers pouring milk into village-level collection centres are unorganised, unwittingly milking their livelihood and cattle to the point of self-defeat.
Counterthesis: Nitara, which means deep roots, is a platform that gets farmers and their ecosystem friends—vets, feed and medicine suppliers, artificial insemination providers, financial lenders, and insurers—within digital reach. In linking nutrition, breeding, herd and disease management for cattle, Nitara has mapped the entire gene pool of India, perhaps the first company in the world to do so. Manish Jain, a former investment banker with DSP Merril Lynch and Deutsche Bank, believes his farmer-to-friend (F2F) approach can raise the
Data from nearly 25,000 farmers and 140,000 cattle on the platform has led Jain to “conservatively” claim a 100% and 50% productivity gain for farmers and non-farmers, respectively, within the first 12 months. In October, Nitara won the International Dairy Federation’s innovation award at the World Summit in Santiago, Chile. Self-funded and averse to any external funding or publicity, Jain’s five out of eight years of dairy daredevilry have been “full of failures”. But he’s girding up.
“Rather than us selecting, we leave it to the farmers to select us”
In Gujarat, there is a village called Vasavad. Six months back, three poor-quality dairies collected 600 litres of milk. They had a bad reputation for selling adulterated milk. Banks wouldn’t lend to the farmers from this village. Today, after Nitara’s intervention, milk procurement has gone up to 2,000 litres, and four quality-focused dairies are buying milk from that village.
Essentially, milk cannot triple in six months from the same cows, but as the tide started turning for farmers, people started seeing the long-term benefits of our platform.
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