[The Food Safety and Standards
Authority of India found in 2012 that nearly 70 percent of the milk
samples it tested nationwide did not meet food safety standards. A majority of
samples were diluted with water or contained impurities like urea, liquid
formaldehyde and detergent solution.]
By Max Bearak
Within a day, the milk — never touched
by human hands — is bottled and whisked away to hotels, restaurants and homes
in nearby cities.
The dairy, Pride of Cows, is
one of the largest players in the growing business of farm-to-table milk, part
of India India
Devendra Shah, the chairman of Pride
of Cows’ parent company, Parag Milk Foods, regularly uses the word “love” to
describe his operation, referring to his cows as “pampered and cherished.”
This new marketing approach targets an
increasingly health-conscious and brand-savvy Indian consumer, a growing niche
within an already swelling middle class that has the means to afford costlier
products. But the appeal of this milk is as much about food safety, after a
milk adulteration scandal shocked the nation.
The Food Safety and Standards
Authority of India found in 2012 that nearly 70 percent of the milk
samples it tested nationwide did not meet food safety standards. A majority of
samples were diluted with water or contained impurities like urea, liquid
formaldehyde and detergent solution.
In a
country where dairy is considered a fundamental life force, let alone most
people’s main source of animal protein, the revelations struck many as
surreptitious sacrilege. This past January, India West Bengal in amending their penal codes to
punish milk adulteration with possible life sentences.
Indian entrepreneurs have responded
to regular milk’s troubled reputation by leasing farms and opening dairies that
pledge fresh, 100 percent pure milk.
Nikhil Vora, a former managing
director at a market analysis firm in Mumbai, said that the so-called
farm-to-home market accounted for less than 1 percent of the $70 billion market
for milk, cheese, yogurt and other dairy products. But the segment is forecast
to increase by more than 20 percent a year.
Pride of Cows provides 10,000 liters
daily to customers through its subscription service in Mumbai and nearby Pune,
including five-star hotels and a French crêperie called Suzette. The milk costs
about 75 rupees ($1.24) a liter, almost double the rate for pasteurized milk at
a neighborhood store.
Pride of Cows reaches customers much
the same way a new winery or brewery might. The company regularly attends food
exhibitions and invites potential or existing customers to the farm for guided
tours. Pride of Cows has also expanded its outreach into schools, mostly
private, hosting workshops on nutrition and enrolling 150 students for a
planned 45-day internship this summer through which participants “will get hands-on
experience in the various aspects of Pride of Cows’ business operations,”
according to a company spokeswoman.
The Parisian who runs Suzette,
Jérémie Sabbagh, said he tried Pride of Cows’ milk at a food exhibition and was
struck by the “huge difference in taste.” “We realized at some point that many
of our customers were already their customers,” he said.
The appetite for upscale food
products in India
“It’s mostly those who’ve just
started a family and want to make sure that they are eating the healthiest
possible food,” Mr. Kapoor said. “These are well-placed professionals who may
be influenced by the organic food movement abroad.”
The push into such premium products
comes even as the broader economy shows signs of weakness. Chakradhar Gade, a
graduate of the Indian Institute of Management who quit his job as a financial
analyst, sees the dairy business as recession-proof.
About a year and a half ago, Mr. Gade
and a business partner subcontracted a farm just outside Delhi Delhi
Most milk adulteration occurs at the
small-scale farms that supply most major milk companies. By adding water,
farmers can increase the volume they are able to sell, while other additives
increase the fat content and thus the value of the milk.
Mr. Gade spends 5 percent of his
revenue on quality control. An independent lab tests his milk weekly as it
leaves his farm, checking for water, fat and 24 other adulterants.
Despite the extra costs, the company
is charging the going rate for regular milk, and Mr. Gade said many customers
immediately wanted to make the switch. He plans to keep his prices low until he
has a more solid customer base.
After adding four more farms, Country
Fresh Milk now delivers milk, cheese and clarified butter to 1,000 customers in
Gurgaon. He said his goal was to eventually supply 4 percent of Gurgaon’s daily
milk consumption, which he estimates is around 500,000 liters a day.
Sanjay Sharma, the founder of Mothers
Nature Foods, also in Gurgaon, said he saw pure milk as a moral imperative as
well as a business opportunity.
“My guru, Avdhoot Shivanand Baba,
advised me to start this business,” Mr. Sharma said, referring to his spiritual
adviser. “He explained the concept of ‘life force energy’ to me, wherein the
fresher the food, the greater the energy that one can derive from it.”
Formerly a flight instructor in California Europe , Mr. Sharma bought two cows because
he missed the quality of milk he was able to get abroad. Three years later, his
company has over 500 cows on two farms, and 2,000 customers.
At Mr. Sharma’s new farm in Alwar,
Rajasthan, he operates a “spa for cows,” where he is landscaping waterfalls
into the pasture to replicate a “village atmosphere” that he says cows are used
to. “I thought if I can make my cows healthy and happy,” Mr. Sharma said, “then
I’ll also get even more good hormones in the milk.”
“Big Milk is slow poison,” he said,
referring to India
