Project Description

Establishment of a Milk Collection Unit (MCU) in the cluster is one of the income generating projects. Agriculture and specifically cattle and milk production has been traditionally the main occupation of the village communities in the region. Today the overall milk production in the cluster villages is decreasing as there is no access to major milk markets. The milk is being fed to the pigs or bartered to other commodities like coffee. In the process of exchange the milk loses its market value. As the milk is utilizable for preservation for a two hour period it is not feasible for milk producing companies to collect the milk from the cluster villages as there are no milk collection units or dairy plants in the close surroundings.

Background Info
During the last 15 years milk production in Armenia increased approximately by 34%. The overall increase in milk production is a result of increase in the number of cattle, as well as the growing demand of the market in Armenia. According to our research and consultations with dairy producers the triple increase of today’s volume of milk production in Armenia will hardly cover the demand and/or the capacity of dairy plants. Graph 1 shows the statistical information on milk production and the number of cows in Armenia during the last six years.

Despite the increase in milk production and the number of cows in Armenia, the country is still heavily dependent on the imported milk powder, milk cream, yogurt, sour cream, etc. Graph 2 shows the import of the dairy products and byproducts in 2006.

There is a serious demand and market for milk and milk byproducts in Armenia. A milk collection unit in the cluster will boost the milk production and create an opportunity for steady income for the cluster communities.

Milk Collection Unit (MCU)

Milk collection unit (MCU) will not be a standalone project; it will have complementary breed betterment and training projects, micro financing, veterinary point rehabilitation and training, and an overall implementation supervision.

Today the number of cows and volume of the milk produced in the region is not sufficient enough to have a sustainable milk collection unit. Graph 3 shows the overall information on cattle in the cluster region.

MCU will be located close to Azatamut and as the milk is utilizable for preservation for a two hour period, the unit will potentially serve the villages that are not included in the Khashtarak cluster but have milk production potential, like Aygehovit, Achajur, Kayan, etc. The map below shows the two hour radius in addition to the cluster communities.

Today, the farmers of the cluster communities are involved in various agricultural activities, but the main issue in the region remains access to markets. Based on the milk demand in Armenia milk is a product that has the potential market and can be developed in the Khashtarak cluster. Based on research trips of Ashtarak Kat (one of the major dairy production companies in Armenia) and CARD (Center of Agribusiness and Rural Development) the region is ideal for milk production and has enough land to grow forage for the cattle. Although there is a certain amount of milk produced in the region today, due to lack of access to market, the produced milk is either being used by individual farmers to feed their calves or to produce cheese at home and sold in local markets or bartered at significantly lower than market prices.

The milk collection unit will have a milk truck(s) that will collect the milk from the cluster villages and other communities. The milk will be checked in the laboratory of the milk collection unit and will be stored in the cooling tanks of the unit. According to the preliminary agreement Ashtarak Kat will buy the milk from the milk collection unit and transfer it to its processing facilities. The milk collection unit will buy the milk from the members of the communities and sell it at mark up to ensure the sustainability of the unit.

The unit will be located in a building complex in Azatamut that will later on house the other components of the economic facilitation program such as the dairy processing point, a 200-400 cow barn, fertilizer production point, etc. The mayor of Azatamut has expressed his willingness to provide buildings for this enterprise. The community of Azatamut owns four buildings with 4000m2 of total space. Some buildings are in normal condition, some need renovation. But overall the availability of the buildings will bring down the cost of the economic facilitation projects as there will not be a need to construct new buildings for the complex.

Technical Information

Milk transportation - After milking, the milk should be cooled and stored in the milk room of the farm or dairy plant. Due to organizational or economic difficulties, it may not be possible to cool the milk on the farm. Also, in areas far away from the dairy plant, it may be troublesome to collect milk and take it directly to the plant. In such cases, it may be preferable to first take the milk to a collection point, and then transport it to the dairy plant or milk collection unit.

Transport from farm to dairy

Can collection - Milk that is available in cans, whether on the farm or at the collection point, can be picked up and transported by many convenient means of transportation. The cans should be protected against the sun at all times to avoid spoilage. It is also advisable to use insulated or refrigerated trucks to transport cooled milk in cans. It is also advisable to use a standard milk can with a smooth surface to avoid logistic and cleaning problems given the multiple suppliers to be involved in the process.

Bulk collection - Milk available in bulk should also be collected in bulk to avoid any extra risk of contamination. Furthermore, the temperature of milk in cans is more difficult to control and the whole process of using cans demands more work and expenses.

Truck-mounted tanks or road tankers can be used but the tanks should be insulated and covered by a shield to protect against strong sunshine.

On the farm, or at the collection unit, the loading hose from a milk transport truck is connected to the outlet valve on the storage tank, and the milk is pumped over. Pumping is stopped as soon as the cooling tank has been emptied, thereby preventing air from being mixed into the milk. The tanker is fitted with a flow meter and pump so that the volume is automatically recorded. In other cases, the storage tank has to be calibrated to make dip-stick measurements reliable.

The tank of the bulk collection vehicle is divided into a number of compartments in order to prevent the milk from sloshing around during transportation.

Milk collection points and units - In scarcely-populated areas, or areas where individual suppliers are far away from the dairy plant and difficult to reach, milk has to be transported over long distances. Transportation to the dairy plant is likely to take a lot of time. In these cases, it is advisable to collect and cool the milk before transporting it to the milk collection unit (MCU).

MCU vs. collection point - The difference between a collection point and a MCU is mainly based on cooling and size. A milk collection point can be a small, central place where small suppliers can deliver their milk. The reception capacity is likely to be between 50-500 liters a day. There is no cooling equipment present at the milk collection point, so the milk should be collected and brought to the MCU within two hours after milking.

At the MCU, there is always cooling equipment and, in most cases, quality testing facilities. The milk must be collected and cooled to < 4 °C not later than three hours after milking has been completed. The reception capacity of a collection centre is generally between 500 and 16 000 liters a day.

MCU ground plan

Example of a MCU

1. Farmer with milk cans
2. Taking sample
3. Milk analysis
4. Weighing
5. Dump tank
6. Pre-cooling
7. Heat recovery unit
8. Condensing unit
9. Storage/cooling tank
10. Milk transport to the dairy and entrance for goods
11. Milk can cleaner
12. Drying frame for cans
13. Farm supply shop
14. Publication board
15. Office MCC manager
16. Storage goods
17. Toilet

Logistic advantages - Transporting cooled milk from a storage tank at a farm or collection unit has many advantages.

It enables the plant to organize an efficient system of collection and transportation. Since the milk has been cooled, it can be picked up at the farm or the collection unit at any hour of the day, without the risk of spoilage.

Each type of collection has its own advantages: can collection is for small farms; bulk collection is for larger suppliers; and there are combinations with transport tanks for farms in between. It is therefore imperative that the situation at hand be fully explored to implement the best strategy possible to collect the milk. However, the most important issue is that the milk must be cooled as quickly as possible.

Requirements - Before implementing the MCU, it is important that the following requirements be met. An adequate supply of electricity, natural gas and water will be needed to run the MCU. The MCU additionally should have a water tank to secure the 24 hour water supply to the facility. Also an electro-generator is required to secure the stable electricity supply and make sure that the facility is able to operate in case of emergencies. Availability must be evaluated as these are not always obtainable on farms and can sometimes only be arranged at relatively high costs. Proper road access for milk transport trucks must also be secured.

As aforementioned, it is important that the farmers be trained to control the quality of milk as there are many controllable factors that affect it. With good milking routines and adequate milking equipment, the risk contamination will be significantly lowered. The farmers should understand the different procedures of using, maintaining and sanitizing their milking area and material to uphold sanitary standards and regulations. It will also be important to properly cool the milk and store it at the appropriate temperature as suitable refrigeration temperatures greatly slows or stops the growth of most bacteria.