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Dairy Cooperatives in India

Dairy Cooperatives in India

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Published by Shafqat Shaikh

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Published by: Shafqat Shaikh on Nov 21, 2010
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02/22/2011

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DAIRY COOPERATIVES IN INDIA
It was in 1904 when the seed of cooperation was sown inIndia with the passage of  first Cooperative Act. Since then, the cooperative movement has made rapid strides inall fields of socio-economic activities. In the fields of agriculture credit, fertilizer disbursement, sugar production, handloom, etc, the cooperatives have created astrong niche. However, the contribution of cooperatives to Indias dairy industry isenormous. The cooperatives have ushered in milk revolution in the country.The dairy industry has made India proud in recent times. India is the leading producer of milk in the world. Dairy cooperatives are the backbone of Indian dairy industry.Dairy cooperatives haveexcelled in their areas of cooperatives. The figures justify this. When the cooperativedairy movement was started, the daily per capita milk consumption was 106ml. Today,it is 250ml or 90 kg per year. Milk is the country's number one agricultural commodity.The estimated value of milk to producers, most of them marginal, small, and landlessis more than $20.What is the reason for success of dairy cooperatives? The reason is simple. It isempowerment. These cooperatives are not controlled by the government. Thefarmers own and manage them based upon the needs and demands of thecommunity. The germs of milk revolution were laid down way back in 1946 in a smalltown called Anand in Western India.Tired of exploitation bytraders and local private dairy, the milk producers organized themselves into village dairy cooperatives. These cooperatives federated into theKaira Milk Producers Union. Soon it had its first dairy plant. It started producing andmarketing milk products under the brand name Amul. Under the charismaticleadershipof V. Kurien, the father of milk revolution, the Amul model of cooperativessoon became an example for others to emulate. The government wanted the Amulmodel to be replicated in other parts of the country. Its own controlled dairycooperatives had failed. Amul is today the most popular brand of milk.Operation Flood the worlds dairy development program inspired by the Amul modeland implemented by National Dairy Development Board- was implemented in threephases in the country between 1970 and 1996. Milk was collected daily by village
 
dairy cooperatives and sent to milk producers' unions who sold it as liquid milk andprocessed products through their federal marketingcooperatives. The Operation Flood Program has had a tremendous impact. There hasbeen rapid growth in Indias milk production, around 4 to 5 percent annually.The Operation Flood Program has also contributed to the socio-economicdevelopment of rural milk producers. It has made the poor less poor. It has alsoestablished an effective partnership between farmers and professionals in the dairyindustry. The professionals use the latest technologies in the dairy industry, basedupon clear-cut assessment of the situation. No doubt dairy cooperatives are the mostprofessionally managed sector of the Indian cooperatives.The de-licensing of the dairy industry has not threatened dairy cooperatives. Theyseem to march ahead despite the entry of the private sector and multinationals. Amulhas overtaken others in the ice-cream market.Britanniahas been forced to withdrawfrom the liquid milk market in many parts of the country. The biggest strength of dairycooperatives is their labour intensiveness. Cost effectiveness is another importantfactor. Dairy cooperatives have effectively used the toil of farmers to develop self-reliance. It is unique. The future is indeed bright for dairy cooperatives.
National Co-operative Dairy Federation of India
The NCDFI was registered in 1970 under the Multi State Cooperative Societies Act,1984. Its primary objective is to facilitate the working of dairy cooperatives throughcoordination, networking and advocacy. Important activities of the NCDFI arecoordinating the sale of different products by its members to the Ministry of Defence andother institutions, management of Rail Milk Tankers, coordinating the sale of frozensemen doses and farm produce of the Sabarmati Ashram Gaushala, providing supportto members and affiliated organisations in computerising their operations andinformation systems and offering other need based services to members. The NCDFIalso functions as a representative of its members on different bodies including theNational Cooperative Union of India and the International Cooperative Alliance.
 
The highest milk producer in the entire globe – India boasts of that status. India isotherwise known as the ‘Oyster’ of the global dairy industry, with opportunities galore tothe entrepreneurs globally. Anyone might want to capitalize on the largest and fastestgrowing milk and mil products' market. The dairy industry in India has been witnessing
 
rapid growth. The liberalized economy provides more opportunities for MNCs andforeign investors to release the full potential of this industry.The main aim of the Indian dairy industry is only to better manage the nationalresources to enhance milk production and upgrade milk processing using innovativetechnologies.
 
Potential for investment in the dairy industry
Some areas of Indian dairy industry can be toned up by the evocation of differentiatedtechnologies and equipment from overseas. These include:
1.
Raw milk handling: The raw milk handling needs to be elevated in terms of physicochemical and microbiological properties of the milk in a combinedmanner. The use of clarification and bactofugation in raw milk processing canaid better the quality of the milk products.2.Milk processing: Better operational ratios are required to amend the yields andabridge wastage, lessen fat/protein losses during processing, control productioncosts, save energy and broaden shelf life. The adoption of GMP (GoodManufacturing Practices) and HACCP (Hazard Analysis Critical Control Points)would help produce milk products adapting to the international standards.3.Packaging: Another area that can be improved is the range of packing machinesfor the manufacture of butter, cheese and alike. Better packaging can assist inretaining the nutritive value of products packed and thus broaden the shelf life.A cold chain distribution system is required for proper storage and transfer of dairy products.4.Value-added products: There's vast scope for value-added products likedesserts, puddings, custards, sauces, mousse, stirred yoghurt, nectars andsherbets to capture the dairy market in India.The Indian dairy industry has aimed at better mananamegemt of the national resourcesto enhance milk production and upgrade milk processing involving new innovativetechnologies. Multinational dairy giants can also make their foray in the Indian dairymarket in this challenging scenario and create a win-win situation for both.
 
India's Milk Product Mix
Fluid Milk46.0%Ghee27.5%Butter6.5%Curd 7.0%Khoa (Partially Dehydrated Condensed Milk)6.5%Milk Powders, including IMF3.5%Paneer & Chhana (Cottage Cheese)2.0%Others, including Cream, Ice Cream1.0%
 

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