Greening the Indian Dairy Value Chain - Revision history

Ranisha at 13:27, 22 July 2019

2019-07-22T13:27:02Z

Stefan Eibisch at 12:27, 27 July 2018

2018-07-27T12:27:59Z

Stefan Eibisch at 11:41, 26 July 2018

2018-07-26T11:41:40Z

Stefan Eibisch at 11:33, 26 July 2018

2018-07-26T11:33:51Z

Stefan Eibisch at 11:33, 26 July 2018

2018-07-26T11:33:25Z

Stefan Eibisch at 11:32, 26 July 2018

2018-07-26T11:32:04Z

Stefan Eibisch: /* About the Project */

2018-07-26T11:28:38Z

About the Project

Stefan Eibisch at 09:49, 26 July 2018

2018-07-26T09:49:36Z

Stefan Eibisch at 08:16, 25 July 2018

2018-07-25T08:16:13Z

Stefan Eibisch at 14:27, 18 July 2018

2018-07-18T14:27:06Z

@@ Line 1: / Line 1: @@
 [[India Energy Situation|India]] is the world’s top milk producing nation and has the largest number of dairy cattle in the world - in 2014, India’s dairy cows (including indigenous buffalos) accounted for just over 30% of the world’s total number of cattle in 2017 . The dairy sector provides an important secondary source of income for millions of rural families and is a crucial source of employment and opportunity for income generation, particularly for marginal and women farmers. Small, marginal farmers and landless labourers produce most of India’s milk; in fact, 70% of India’s milk suppliers are smallholder farmers with no more than three female cattle.<ref>FAOSTAT – Livestock Primary http://www.fao.org/faostat/en/#data/QL, http://beef2live.com/story-world-cattle-inventory-ranking-countries-0-106905</ref><br/>
@@ Line 49: / Line 48: @@
 </div></div></div></div>
 <br/>

@@ Line 1: / Line 1: @@
-[[India_Energy_Situation|India]] is the world’s top milk producing nation and has the largest number of dairy cattle in the world - in 2014, India’s dairy cows (including indigenous buffalos) accounted for just over 30% of the world’s total number of cattle in 2017 . The dairy sector provides an important secondary source of income for millions of rural families and is a crucial source of employment and opportunity for income generation, particularly for marginal and women farmers. Small, marginal farmers and landless labourers produce most of India’s milk; in fact, 70% of India’s milk suppliers are smallholder farmers with no more than three female cattle.<ref>FAOSTAT – Livestock Primary http://www.fao.org/faostat/en/#data/QL, http://beef2live.com/story-world-cattle-inventory-ranking-countries-0-106905</ref><br/>
+[[India Energy Situation|India]] is the world’s top milk producing nation and has the largest number of dairy cattle in the world - in 2014, India’s dairy cows (including indigenous buffalos) accounted for just over 30% of the world’s total number of cattle in 2017 . The dairy sector provides an important secondary source of income for millions of rural families and is a crucial source of employment and opportunity for income generation, particularly for marginal and women farmers. Small, marginal farmers and landless labourers produce most of India’s milk; in fact, 70% of India’s milk suppliers are smallholder farmers with no more than three female cattle.<ref>FAOSTAT – Livestock Primary http://www.fao.org/faostat/en/#data/QL, http://beef2live.com/story-world-cattle-inventory-ranking-countries-0-106905</ref><br/>
 Farmers sell their milk into formal, organised value chains (cooperatives, private domestic processors or multinational companies) and to informal buyers. This article is based on a project which focused on the formal sector and explored the potential for energy savings at the level of processing plants, as well as chilling during procurement and at retail outlets.<ref>Cattle and Dairy Development, Department of Animal Husbandry, Dairying & Fisheries (2017)</ref><br/>
@@ Line 11: / Line 11: @@
 *<u>Thermal energy:</u> This accounts for approximately 70% of the total energy needs in dairy value chains. It is used for powering chilling and storage units, sterilization processes, spray drying, evaporation, pasteurisation and other processes. It is often produced on-site at processing plants, powered by conventional fuels such as oil and gas or biomass (e.g. rice husk).<br/>
-*<u>Electric power:</u> This accounts for the remaining 30% of total energy needs in the dairy value chain. It is used for utilities like pumps, homogenisers and standardisers, but also for refrigeration and cold storage throughout the value chain, milk processing, packaging and additional services. Additionally, ancillary services such as circulatory cleaning-in-place (CIP), washing, and lighting also use electric power.&lt;/span&gt;<br/>
+*<u>Electric power:</u> This accounts for the remaining 30% of total energy needs in the dairy value chain. It is used for utilities like pumps, homogenisers and standardisers, but also for refrigeration and cold storage throughout the value chain, milk processing, packaging and additional services. Additionally, ancillary services such as circulatory cleaning-in-place (CIP), washing, and lighting also use electric power.<br/>
-*<u>Transport:</u> This is an important factor but was not within the scope of this project. The topic of transp&lt;/span&gt;<span lang="en-gb">ort cost and energy needs has<span style="color: black;">been brought up by stakeholders as an area of interest, and </span>has also been mentioned in literature as a challenge.</span><br/>
+*<u>Transport:</u> This is an important factor but was not within the scope of this project. The topic of transp<span lang="en-gb">ort cost and energy needs has<span style="color: black">been brought up by stakeholders as an area of interest, and </span>has also been mentioned in literature as a challenge.</span><br/>
 == Refrigerants used for Milk Cooling<br/> ==
@@ Line 18: / Line 18: @@
 <span lang="en-gb">A refrigerant is a substance used in a heat cycle that normally includes (for enhanced efficiency) a reversible phase transition from a liquid phase to a gas phase. Traditionally, fluorocarbons, especially chlorofluorocarbons, were used as refrigerants, but they are being phased out due to concerns over their contribution to ozone depletion. Many conventional refrigerant compounds have significant ozone depletion effects and large global warming potential, and are therefore the focus of worldwide regulatory scrutiny such as the requirements of the Montreal Protocol<ref>https://en.wikipedia.org/wiki/Montreal_Protocol</ref>.</span><br/>
 <div><div id="ftn1">
-<span lang="en-gb">[[Implications_of_natural_refrigerants_for_cooling_technologies|Natural refrigerants]]&nbsp;such as ammonia can be used in&nbsp;refrigeration&nbsp;systems as a viable,&nbsp;environmentally sustainable, natural alternative to conventional refrigerants such as fluorocarbons and chlorofluorocarbons. Natural refrigerants are not inherently harmless or nontoxic, and require special care when handled.<ref>https://en.wikipedia.org/wiki/Natural_refrigerant</ref></span><br/>
+<span lang="en-gb">[[Implications of natural refrigerants for cooling technologies|Natural refrigerants]]&nbsp;such as ammonia can be used in&nbsp;refrigeration&nbsp;systems as a viable,&nbsp;environmentally sustainable, natural alternative to conventional refrigerants such as fluorocarbons and chlorofluorocarbons. Natural refrigerants are not inherently harmless or nontoxic, and require special care when handled.<ref>https://en.wikipedia.org/wiki/Natural_refrigerant</ref></span><br/>
-In the Indian dairy industry, [[Implications_of_natural_refrigerants_for_cooling_technologies|natural refrigerants]], especially ammonia, are often used at the level of processing plants, while conventional refrigerants are most likely to be found at the initial aggregation stage which is the first point of milk chilling (bulk milk chillers and milk chilling centres) as well as at the retail level. The hydrochlorofluorocarbon R22 is to be phased out in India by 2030 and is found often at bulk milk chillers and retailers. For this reason, interventions in India’s dairy value chain to replace ozone-depleting substances should initially target bulk milk chillers and milk chilling centres as well as shops and dairy retail outlets. Many dairies operate so-called “milk kiosks”, which are standardised milk selling units.&nbsp; A milk processing plant might run and supply up to 300 of such units in urban areas.<ref>Energy Audit Report of Two Dairies (2018), DevGreen Energy Consulting www.devgreenz.com / confirmed at Stakeholder Workshop, Delhi, April 2018 </ref>&nbsp;These kiosks would be a good entry point to pilot efficient and environmentally sound cooling systems.<br/>
+In the Indian dairy industry, [[Implications of natural refrigerants for cooling technologies|natural refrigerants]], especially ammonia, are often used at the level of processing plants, while conventional refrigerants are most likely to be found at the initial aggregation stage which is the first point of milk chilling (bulk milk chillers and milk chilling centres) as well as at the retail level. The hydrochlorofluorocarbon R22 is to be phased out in India by 2030 and is found often at bulk milk chillers and retailers. For this reason, interventions in India’s dairy value chain to replace ozone-depleting substances should initially target bulk milk chillers and milk chilling centres as well as shops and dairy retail outlets. Many dairies operate so-called “milk kiosks”, which are standardised milk selling units.&nbsp; A milk processing plant might run and supply up to 300 of such units in urban areas.<ref>Energy Audit Report of Two Dairies (2018), DevGreen Energy Consulting www.devgreenz.com / confirmed at Stakeholder Workshop, Delhi, April 2018 </ref>&nbsp;These kiosks would be a good entry point to pilot efficient and environmentally sound cooling systems.<br/>
 == Energy Audits of selected Dairies<br/> ==
-As part of this project, two dairies agreed to allow energy audits to be conducted in their processing plants. Both plants were of medium size, with a daily milk turnover of between 300,000 and 500,000 litres (L). One of the plants is owned by a cooperative (co-op) and the other is owned by a private sector dairy. It was expected that [[Energy_Auditing|auditing]] one modern plant (built in 2016) and one older plant (built in 1982), would provide widely varying results. However, while the savings potential for the older, co-op-run plant was much larger (36% electric power and 13% fuel&nbsp; saving potential) even the modern, privately owned plant showed room to improve its energy efficiency (12% electric power saving potential)<ref>Energy Audit Report of Two Dairies (2018), DevGreen Energy Consulting www.devgreenz.com</ref>. The audits demonstrated that for the proposed measures, payback periods are short (often under 12 months) and upfront investment required is moderate (often less than 10,000 to 20,000 EUR)<ref>Energy Audit Report of Two Dairies (2018), DevGreen Energy Consulting www.devgreenz.com</ref>. An example of such a proposed measure is the replacement of outdated or wrongly dimensioned pumps throughout the dairy processing systems for one of the audited dairies (co-op dairy). Those replacements would create an initial investment of about 7800 euros and result in energy bill savings that would cover the expenses within five months. Interestingly, the highest-impact energy conservation measure for both plants was the replacement of pumps and chillers. [[File:Pilkhuwa Dairy 13.jpg|thumb|300px|Dairy in India]]<br/>
+As part of this project, two dairies agreed to allow energy audits to be conducted in their processing plants. Both plants were of medium size, with a daily milk turnover of between 300,000 and 500,000 litres (L). One of the plants is owned by a cooperative (co-op) and the other is owned by a private sector dairy. It was expected that [[Energy Auditing|auditing]] one modern plant (built in 2016) and one older plant (built in 1982), would provide widely varying results. However, while the savings potential for the older, co-op-run plant was much larger (36% electric power and 13% fuel&nbsp; saving potential) even the modern, privately owned plant showed room to improve its energy efficiency (12% electric power saving potential)<ref>Energy Audit Report of Two Dairies (2018), DevGreen Energy Consulting www.devgreenz.com</ref>. The audits demonstrated that for the proposed measures, payback periods are short (often under 12 months) and upfront investment required is moderate (often less than 10,000 to 20,000 EUR)<ref>Energy Audit Report of Two Dairies (2018), DevGreen Energy Consulting www.devgreenz.com</ref>. An example of such a proposed measure is the replacement of outdated or wrongly dimensioned pumps throughout the dairy processing systems for one of the audited dairies (co-op dairy). Those replacements would create an initial investment of about 7800 euros and result in energy bill savings that would cover the expenses within five months. Interestingly, the highest-impact energy conservation measure for both plants was the replacement of pumps and chillers. [[File:Pilkhuwa Dairy 13.jpg|thumb|300px|Dairy in India]]<br/>
 When those findings were presented at a stakeholder workshop in Delhi in April 2018, it was agreed that the proposed interventions would be appropriate in the majority of dairy plants of similar sizes. Of particular interest to dairy stakeholders was the potential for zero- to low-cost interventions and behavioural changes, which could be implemented by an individual plant manager, before a larger decision about investment in hardware has to be taken by a dairy company.

@@ Line 1: / Line 1: @@
 India is the world’s top milk producing nation and has the largest number of dairy cattle in the world - in 2014, India’s dairy cows (including indigenous buffalos) accounted for just over 30% of the world’s total number of cattle in 2017 . The dairy sector provides an important secondary source of income for millions of rural families and is a crucial source of employment and opportunity for income generation, particularly for marginal and women farmers. Small, marginal farmers and landless labourers produce most of India’s milk; in fact, 70% of India’s milk suppliers are smallholder farmers with no more than three female cattle.<ref>FAOSTAT – Livestock Primary http://www.fao.org/faostat/en/#data/QL, http://beef2live.com/story-world-cattle-inventory-ranking-countries-0-106905</ref><br/>
 Farmers sell their milk into formal, organised value chains (cooperatives, private domestic processors or multinational companies) and to informal buyers. This article is based on a project which focused on the formal sector and explored the potential for energy savings at the level of processing plants, as well as chilling during procurement and at retail outlets.<ref>Cattle and Dairy Development, Department of Animal Husbandry, Dairying & Fisheries (2017)</ref><br/>
@@ Line 5: / Line 6: @@
 == Energy in India’s Dairy Sector<br/> ==
-In India, energy costs comprise about 30% of the overall production cost of dairy products<ref>KPMG Consultancy, 2017 (Interview with Abhishek Shah and Suvasis Ghosh in Delhi, April 2017)</ref>. The dairy industry presents good potential to reduce energy consumption and thereby production cost. Significant energy efficiency improvements could be made, for example, by replacing outdated, energy-inefficient technology and by raising awareness of ways to save energy through Operations and Maintenance (O&M) adaption. [[File:Pilkhuwa Dairy 12.jpg |thumb|300px|Milk delivery in India]]<br/>
+In India, energy costs comprise about 30% of the overall production cost of dairy products<ref>KPMG Consultancy, 2017 (Interview with Abhishek Shah and Suvasis Ghosh in Delhi, April 2017)</ref>. The dairy industry presents good potential to reduce energy consumption and thereby production cost. Significant energy efficiency improvements could be made, for example, by replacing outdated, energy-inefficient technology and by raising awareness of ways to save energy through Operations and Maintenance (O&M) adaption. [[File:Pilkhuwa Dairy 12.jpg|thumb|300px|Milk delivery in India]]<br/>
 The general demand for energy in the dairy value chains can be ranked as follows<ref>KPMG Consultancy, 2017 (Interview with Abhishek Shah and Suvasis Ghosh in Delhi, April 2017)</ref>:<br/>
@@ Line 17: / Line 18: @@
 <span lang="en-gb">A refrigerant is a substance used in a heat cycle that normally includes (for enhanced efficiency) a reversible phase transition from a liquid phase to a gas phase. Traditionally, fluorocarbons, especially chlorofluorocarbons, were used as refrigerants, but they are being phased out due to concerns over their contribution to ozone depletion. Many conventional refrigerant compounds have significant ozone depletion effects and large global warming potential, and are therefore the focus of worldwide regulatory scrutiny such as the requirements of the Montreal Protocol<ref>https://en.wikipedia.org/wiki/Montreal_Protocol</ref>.</span><br/>
 <div><div id="ftn1">
-<span lang="en-gb">Natural refrigerants&nbsp;such as ammonia can be used in&nbsp;refrigeration&nbsp;systems as a viable,&nbsp;environmentally sustainable, natural alternative to conventional refrigerants such as fluorocarbons and chlorofluorocarbons. Natural refrigerants are not inherently harmless or nontoxic, and require special care when handled.<ref>https://en.wikipedia.org/wiki/Natural_refrigerant</ref></span><br/>
+<span lang="en-gb">[[Implications_of_natural_refrigerants_for_cooling_technologies|Natural refrigerants]]&nbsp;such as ammonia can be used in&nbsp;refrigeration&nbsp;systems as a viable,&nbsp;environmentally sustainable, natural alternative to conventional refrigerants such as fluorocarbons and chlorofluorocarbons. Natural refrigerants are not inherently harmless or nontoxic, and require special care when handled.<ref>https://en.wikipedia.org/wiki/Natural_refrigerant</ref></span><br/>
-In the Indian dairy industry, natural refrigerants, especially ammonia, are often used at the level of processing plants, while conventional refrigerants are most likely to be found at the initial aggregation stage which is the first point of milk chilling (bulk milk chillers and milk chilling centres) as well as at the retail level. The hydrochlorofluorocarbon R22 is to be phased out in India by 2030 and is found often at bulk milk chillers and retailers. For this reason, interventions in India’s dairy value chain to replace ozone-depleting substances should initially target bulk milk chillers and milk chilling centres as well as shops and dairy retail outlets. Many dairies operate so-called “milk kiosks”, which are standardised milk selling units.&nbsp; A milk processing plant might run and supply up to 300 of such units in urban areas.<ref>Energy Audit Report of Two Dairies (2018), DevGreen Energy Consulting www.devgreenz.com / confirmed at Stakeholder Workshop, Delhi, April 2018 </ref>&nbsp;These kiosks would be a good entry point to pilot efficient and environmentally sound cooling systems.<br/>
+In the Indian dairy industry, [[Implications_of_natural_refrigerants_for_cooling_technologies|natural refrigerants]], especially ammonia, are often used at the level of processing plants, while conventional refrigerants are most likely to be found at the initial aggregation stage which is the first point of milk chilling (bulk milk chillers and milk chilling centres) as well as at the retail level. The hydrochlorofluorocarbon R22 is to be phased out in India by 2030 and is found often at bulk milk chillers and retailers. For this reason, interventions in India’s dairy value chain to replace ozone-depleting substances should initially target bulk milk chillers and milk chilling centres as well as shops and dairy retail outlets. Many dairies operate so-called “milk kiosks”, which are standardised milk selling units.&nbsp; A milk processing plant might run and supply up to 300 of such units in urban areas.<ref>Energy Audit Report of Two Dairies (2018), DevGreen Energy Consulting www.devgreenz.com / confirmed at Stakeholder Workshop, Delhi, April 2018 </ref>&nbsp;These kiosks would be a good entry point to pilot efficient and environmentally sound cooling systems.<br/>
 == Energy Audits of selected Dairies<br/> ==
-As part of this project, two dairies agreed to allow energy audits to be conducted in their processing plants. Both plants were of medium size, with a daily milk turnover of between 300,000 and 500,000 litres (L). One of the plants is owned by a cooperative (co-op) and the other is owned by a private sector dairy. It was expected that auditing one modern plant (built in 2016) and one older plant (built in 1982), would provide widely varying results. However, while the savings potential for the older, co-op-run plant was much larger (36% electric power and 13% fuel&nbsp; saving potential) even the modern, privately owned plant showed room to improve its energy efficiency (12% electric power saving potential)<ref>Energy Audit Report of Two Dairies (2018), DevGreen Energy Consulting www.devgreenz.com</ref>. The audits demonstrated that for the proposed measures, payback periods are short (often under 12 months) and upfront investment required is moderate (often less than 10,000 to 20,000 EUR)<ref>Energy Audit Report of Two Dairies (2018), DevGreen Energy Consulting www.devgreenz.com</ref>. An example of such a proposed measure is the replacement of outdated or wrongly dimensioned pumps throughout the dairy processing systems for one of the audited dairies (co-op dairy). Those replacements would create an initial investment of about 7800 euros and result in energy bill savings that would cover the expenses within five months. Interestingly, the highest-impact energy conservation measure for both plants was the replacement of pumps and chillers. [[File:Pilkhuwa Dairy 13.jpg |thumb|300px|Dairy in India]]<br/>
+As part of this project, two dairies agreed to allow energy audits to be conducted in their processing plants. Both plants were of medium size, with a daily milk turnover of between 300,000 and 500,000 litres (L). One of the plants is owned by a cooperative (co-op) and the other is owned by a private sector dairy. It was expected that [[Energy_Auditing|auditing]] one modern plant (built in 2016) and one older plant (built in 1982), would provide widely varying results. However, while the savings potential for the older, co-op-run plant was much larger (36% electric power and 13% fuel&nbsp; saving potential) even the modern, privately owned plant showed room to improve its energy efficiency (12% electric power saving potential)<ref>Energy Audit Report of Two Dairies (2018), DevGreen Energy Consulting www.devgreenz.com</ref>. The audits demonstrated that for the proposed measures, payback periods are short (often under 12 months) and upfront investment required is moderate (often less than 10,000 to 20,000 EUR)<ref>Energy Audit Report of Two Dairies (2018), DevGreen Energy Consulting www.devgreenz.com</ref>. An example of such a proposed measure is the replacement of outdated or wrongly dimensioned pumps throughout the dairy processing systems for one of the audited dairies (co-op dairy). Those replacements would create an initial investment of about 7800 euros and result in energy bill savings that would cover the expenses within five months. Interestingly, the highest-impact energy conservation measure for both plants was the replacement of pumps and chillers. [[File:Pilkhuwa Dairy 13.jpg|thumb|300px|Dairy in India]]<br/>
 When those findings were presented at a stakeholder workshop in Delhi in April 2018, it was agreed that the proposed interventions would be appropriate in the majority of dairy plants of similar sizes. Of particular interest to dairy stakeholders was the potential for zero- to low-cost interventions and behavioural changes, which could be implemented by an individual plant manager, before a larger decision about investment in hardware has to be taken by a dairy company.

@@ Line 1: / Line 1: @@
 India is the world’s top milk producing nation and has the largest number of dairy cattle in the world - in 2014, India’s dairy cows (including indigenous buffalos) accounted for just over 30% of the world’s total number of cattle in 2017 . The dairy sector provides an important secondary source of income for millions of rural families and is a crucial source of employment and opportunity for income generation, particularly for marginal and women farmers. Small, marginal farmers and landless labourers produce most of India’s milk; in fact, 70% of India’s milk suppliers are smallholder farmers with no more than three female cattle.<ref>FAOSTAT – Livestock Primary http://www.fao.org/faostat/en/#data/QL, http://beef2live.com/story-world-cattle-inventory-ranking-countries-0-106905</ref><br/>
@@ Line 6: / Line 5: @@
 == Energy in India’s Dairy Sector<br/> ==
-In India, energy costs comprise about 30% of the overall production cost of dairy products<ref>KPMG Consultancy, 2017 (Interview with Abhishek Shah and Suvasis Ghosh in Delhi, April 2017)</ref>. The dairy industry presents good potential to reduce energy consumption and thereby production cost. Significant energy efficiency improvements could be made, for example, by replacing outdated, energy-inefficient technology and by raising awareness of ways to save energy through Operations and Maintenance (O&M) adaption. [[File:Pilkhuwa Dairy 12.jpg |thumb|180px|Milk delivery in India]]<br/>
+In India, energy costs comprise about 30% of the overall production cost of dairy products<ref>KPMG Consultancy, 2017 (Interview with Abhishek Shah and Suvasis Ghosh in Delhi, April 2017)</ref>. The dairy industry presents good potential to reduce energy consumption and thereby production cost. Significant energy efficiency improvements could be made, for example, by replacing outdated, energy-inefficient technology and by raising awareness of ways to save energy through Operations and Maintenance (O&M) adaption. [[File:Pilkhuwa Dairy 12.jpg |thumb|300px|Milk delivery in India]]<br/>
 The general demand for energy in the dairy value chains can be ranked as follows<ref>KPMG Consultancy, 2017 (Interview with Abhishek Shah and Suvasis Ghosh in Delhi, April 2017)</ref>:<br/>
@@ Line 24: / Line 23: @@
 == Energy Audits of selected Dairies<br/> ==
-As part of this project, two dairies agreed to allow energy audits to be conducted in their processing plants. Both plants were of medium size, with a daily milk turnover of between 300,000 and 500,000 litres (L). One of the plants is owned by a cooperative (co-op) and the other is owned by a private sector dairy. It was expected that auditing one modern plant (built in 2016) and one older plant (built in 1982), would provide widely varying results. However, while the savings potential for the older, co-op-run plant was much larger (36% electric power and 13% fuel&nbsp; saving potential) even the modern, privately owned plant showed room to improve its energy efficiency (12% electric power saving potential)<ref>Energy Audit Report of Two Dairies (2018), DevGreen Energy Consulting www.devgreenz.com</ref>. The audits demonstrated that for the proposed measures, payback periods are short (often under 12 months) and upfront investment required is moderate (often less than 10,000 to 20,000 EUR)<ref>Energy Audit Report of Two Dairies (2018), DevGreen Energy Consulting www.devgreenz.com</ref>. An example of such a proposed measure is the replacement of outdated or wrongly dimensioned pumps throughout the dairy processing systems for one of the audited dairies (co-op dairy). Those replacements would create an initial investment of about 7800 euros and result in energy bill savings that would cover the expenses within five months. Interestingly, the highest-impact energy conservation measure for both plants was the replacement of pumps and chillers. [[File:Pilkhuwa Dairy 13.jpg |thumb|180px|Dairy in India]]<br/>
+As part of this project, two dairies agreed to allow energy audits to be conducted in their processing plants. Both plants were of medium size, with a daily milk turnover of between 300,000 and 500,000 litres (L). One of the plants is owned by a cooperative (co-op) and the other is owned by a private sector dairy. It was expected that auditing one modern plant (built in 2016) and one older plant (built in 1982), would provide widely varying results. However, while the savings potential for the older, co-op-run plant was much larger (36% electric power and 13% fuel&nbsp; saving potential) even the modern, privately owned plant showed room to improve its energy efficiency (12% electric power saving potential)<ref>Energy Audit Report of Two Dairies (2018), DevGreen Energy Consulting www.devgreenz.com</ref>. The audits demonstrated that for the proposed measures, payback periods are short (often under 12 months) and upfront investment required is moderate (often less than 10,000 to 20,000 EUR)<ref>Energy Audit Report of Two Dairies (2018), DevGreen Energy Consulting www.devgreenz.com</ref>. An example of such a proposed measure is the replacement of outdated or wrongly dimensioned pumps throughout the dairy processing systems for one of the audited dairies (co-op dairy). Those replacements would create an initial investment of about 7800 euros and result in energy bill savings that would cover the expenses within five months. Interestingly, the highest-impact energy conservation measure for both plants was the replacement of pumps and chillers. [[File:Pilkhuwa Dairy 13.jpg |thumb|300px|Dairy in India]]<br/>
 When those findings were presented at a stakeholder workshop in Delhi in April 2018, it was agreed that the proposed interventions would be appropriate in the majority of dairy plants of similar sizes. Of particular interest to dairy stakeholders was the potential for zero- to low-cost interventions and behavioural changes, which could be implemented by an individual plant manager, before a larger decision about investment in hardware has to be taken by a dairy company.

@@ Line 6: / Line 6: @@
 == Energy in India’s Dairy Sector<br/> ==
-In India, energy costs comprise about 30% of the overall production cost of dairy products<ref>KPMG Consultancy, 2017 (Interview with Abhishek Shah and Suvasis Ghosh in Delhi, April 2017)</ref>. The dairy industry presents good potential to reduce energy consumption and thereby production cost. Significant energy efficiency improvements could be made, for example, by replacing outdated, energy-inefficient technology and by raising awareness of ways to save energy through Operations and Maintenance (O&M) adaption. [[File:Pilkhuwa Dairy 12.JPG|thumb|300px|Milk delivery in India]]<br/>
+In India, energy costs comprise about 30% of the overall production cost of dairy products<ref>KPMG Consultancy, 2017 (Interview with Abhishek Shah and Suvasis Ghosh in Delhi, April 2017)</ref>. The dairy industry presents good potential to reduce energy consumption and thereby production cost. Significant energy efficiency improvements could be made, for example, by replacing outdated, energy-inefficient technology and by raising awareness of ways to save energy through Operations and Maintenance (O&M) adaption. [[File:Pilkhuwa Dairy 12.jpg |thumb|180px|Milk delivery in India]]<br/>
 The general demand for energy in the dairy value chains can be ranked as follows<ref>KPMG Consultancy, 2017 (Interview with Abhishek Shah and Suvasis Ghosh in Delhi, April 2017)</ref>:<br/>
@@ Line 24: / Line 24: @@
 == Energy Audits of selected Dairies<br/> ==
-As part of this project, two dairies agreed to allow energy audits to be conducted in their processing plants. Both plants were of medium size, with a daily milk turnover of between 300,000 and 500,000 litres (L). One of the plants is owned by a cooperative (co-op) and the other is owned by a private sector dairy. It was expected that auditing one modern plant (built in 2016) and one older plant (built in 1982), would provide widely varying results. However, while the savings potential for the older, co-op-run plant was much larger (36% electric power and 13% fuel&nbsp; saving potential) even the modern, privately owned plant showed room to improve its energy efficiency (12% electric power saving potential)<ref>Energy Audit Report of Two Dairies (2018), DevGreen Energy Consulting www.devgreenz.com</ref>. The audits demonstrated that for the proposed measures, payback periods are short (often under 12 months) and upfront investment required is moderate (often less than 10,000 to 20,000 EUR)<ref>Energy Audit Report of Two Dairies (2018), DevGreen Energy Consulting www.devgreenz.com</ref>. An example of such a proposed measure is the replacement of outdated or wrongly dimensioned pumps throughout the dairy processing systems for one of the audited dairies (co-op dairy). Those replacements would create an initial investment of about 7800 euros and result in energy bill savings that would cover the expenses within five months. Interestingly, the highest-impact energy conservation measure for both plants was the replacement of pumps and chillers. [[File:Pilkhuwa Dairy 13.JPG|thumb|300px|Dairy in India]]<br/>
+As part of this project, two dairies agreed to allow energy audits to be conducted in their processing plants. Both plants were of medium size, with a daily milk turnover of between 300,000 and 500,000 litres (L). One of the plants is owned by a cooperative (co-op) and the other is owned by a private sector dairy. It was expected that auditing one modern plant (built in 2016) and one older plant (built in 1982), would provide widely varying results. However, while the savings potential for the older, co-op-run plant was much larger (36% electric power and 13% fuel&nbsp; saving potential) even the modern, privately owned plant showed room to improve its energy efficiency (12% electric power saving potential)<ref>Energy Audit Report of Two Dairies (2018), DevGreen Energy Consulting www.devgreenz.com</ref>. The audits demonstrated that for the proposed measures, payback periods are short (often under 12 months) and upfront investment required is moderate (often less than 10,000 to 20,000 EUR)<ref>Energy Audit Report of Two Dairies (2018), DevGreen Energy Consulting www.devgreenz.com</ref>. An example of such a proposed measure is the replacement of outdated or wrongly dimensioned pumps throughout the dairy processing systems for one of the audited dairies (co-op dairy). Those replacements would create an initial investment of about 7800 euros and result in energy bill savings that would cover the expenses within five months. Interestingly, the highest-impact energy conservation measure for both plants was the replacement of pumps and chillers. [[File:Pilkhuwa Dairy 13.jpg |thumb|180px|Dairy in India]]<br/>
 When those findings were presented at a stakeholder workshop in Delhi in April 2018, it was agreed that the proposed interventions would be appropriate in the majority of dairy plants of similar sizes. Of particular interest to dairy stakeholders was the potential for zero- to low-cost interventions and behavioural changes, which could be implemented by an individual plant manager, before a larger decision about investment in hardware has to be taken by a dairy company.

@@ Line 37: / Line 37: @@
 Profit margins are thin in the dairy sector and it is likely that a supportive financial environment will have to be created to encourage investment into energy conservation measures and the wider rollout of clean energy and energy efficiency in the sector. In the initial assessment, it emerged that the ESCO <ref>An energy service company (ESCO) is a commercial or non-profit business providing a broad range of energy solutions including designs and implementation of energy savings projects, retrofitting, energy conservation, energy infrastructure outsourcing, power generation and energy supply, and risk management, often with a focuses on innovative financing methods.</ref>&nbsp;model is not yet widely known to dairy stakeholders. ESCOs assess buildings and industrial systems and install improvements without cost to the client; payback of this investment and profit are realized through savings of the client’s energy bills. After coverage of the ESCO’s investment, the implemented improvements belong to the client who benefits from future energy savings directly.&nbsp; This model could be recommended to implement recommended changes in the dairy industry.<br/>
 <div><div id="ftn1">
 == About the Project<br/> ==
-The project “Greening India’s Dairy Value Chain” is a follow-up project to “Business Cases for Clean Energy Cooling Solutions in Dairy Value Chains”, funded by the Federal Ministry for Economic Cooperation and Development commissioned GIZ project Powering Agriculture and implemented by REEEP. The two projects ran from 1 December 2016 until 31 May 2018. The second project carried out a more detailed analysis of potential clean energy and energy efficiency interventions in India’s dairy sector, which included additional research on the dairy processing industry, refrigerants, and the policy and regulatory environment. Two sample energy audits were conducted to understand the energy savings potentials in dairy processing plants. The results of these were presented in a stakeholder workshop, where the applicability of the recommendations to the wider sector was discussed.<br/>
+The project “Greening India’s Dairy Value Chain” is a follow-up project to “Business Cases for Clean Energy Cooling Solutions in Dairy Value Chains”, funded by the Federal Ministry for Economic Cooperation and Development commissioned GIZ project Powering Agriculture and implemented by REEEP. The two projects ran from 1 December 2016 until 31 May 2018. The second project carried out a more detailed analysis of potential clean energy and energy efficiency interventions in India’s dairy sector, which included additional research on the dairy processing industry, refrigerants, and the policy and regulatory environment. Two sample energy audits were conducted to understand the energy savings potentials in dairy processing plants. The results of these were presented in a stakeholder workshop, where the applicability of the recommendations to the wider sector was discussed. See this [[Clean_Energy_Solutions_for_Milk_Cooling_in_India_and_Kenya|article]] for more information.<br/>
 == References<br/> ==

← Older revision		Revision as of 14:27, 18 July 2018
Line 1:		Line 1:
−
−	~~= Greening the Indian Dairy Value Chain<br/> =~~
−
	India is the world’s top milk producing nation and has the largest number of dairy cattle in the world - in 2014, India’s dairy cows (including indigenous buffalos) accounted for just over 30% of the world’s total number of cattle in 2017 . The dairy sector provides an important secondary source of income for millions of rural families and is a crucial source of employment and opportunity for income generation, particularly for marginal and women farmers. Small, marginal farmers and landless labourers produce most of India’s milk; in fact, 70% of India’s milk suppliers are smallholder farmers with no more than three female cattle.<ref>FAOSTAT – Livestock Primary http://www.fao.org/faostat/en/#data/QL, http://beef2live.com/story-world-cattle-inventory-ranking-countries-0-106905</ref><br/>		India is the world’s top milk producing nation and has the largest number of dairy cattle in the world - in 2014, India’s dairy cows (including indigenous buffalos) accounted for just over 30% of the world’s total number of cattle in 2017 . The dairy sector provides an important secondary source of income for millions of rural families and is a crucial source of employment and opportunity for income generation, particularly for marginal and women farmers. Small, marginal farmers and landless labourers produce most of India’s milk; in fact, 70% of India’s milk suppliers are smallholder farmers with no more than three female cattle.<ref>FAOSTAT – Livestock Primary http://www.fao.org/faostat/en/#data/QL, http://beef2live.com/story-world-cattle-inventory-ranking-countries-0-106905</ref><br/>