Milked! A Study of Contributions by Selected State Dairy Federations across India.

 Never cry over spilled milk,
For you can always make cheese out of it and smile😁

The idea of having cooperatives in the dairy sector of agriculture was popularised with the onset of the White Revolution. The underlying project which many of us don’t know about is that previously it was “Operation Flood” by Dr. Varghese Kurian initiated earlier in 1970, that ultimately culminated in the revolution. It is the world’s largest dairy development program making India the leading producer of milk in the world.

Dairy development on the cooperative line is deemed the most successful technique for assisting the rural poor without disrupting village social structures and offering a stable market for milk at regulated rates, affordable cattle feed, and competent veterinary and extension services. It is also seen as one of the pioneers in women empowerment with providing not only employment but even entrepreneurial opportunities to women, especially from the rural areas. 

During the time of the ongoing Covid-19 pandemic, the dairy sector as a whole has remained strong with almost no disruptions in its supply chains, as well as not only maintaining but observing a slight rise in its revenue as well. This starking feature of the same, intrigued our interest to observe its contributions to the Indian economy. To most of us, Amul is the face of dairy cooperatives. But with time, there are numerous state dairy federations that have evolved on the structure of the “Anand Model” of Amul and are contributing significantly to the development of their respective states. Let’s know a little bit more about five such state dairy federations or dairy cooperatives (DCs)- 

SANCHI

Source- www.sanchidairy.com

Sanchi, formally known as the Madhya Pradesh State Cooperative Dairy Federation Limited, was founded in the year 1980 through Operation Flood Program in the state. It was based on the structure of the Anand cooperative system (AMUL). It is a family of 6 Cooperative milk unions from across the state and currently has 7145 minor working milk cooperatives under it. It was amongst the first who took up the initiative of free home delivery of its products amongst the pandemic to ease out difficulties. It is one of the twelve DCs having an exclusive membership for women in India. It has received the highest assistance for the purchase of milk testing machines, about 90.9% of all the DCs combined. One of its functions includes providing milk powder and white butter to unions as and when required as well as effective channeling of the surplus of the aforementioned items to the needful individuals or sections of the society. It additionally assists the farmers registered with it with various fodder development programs, animal aid, and loan. 


NANDINI

Source- www.kmfnandini.coop


Nandini is the brand name of Karnataka Co-Operative Milk Producer’s Federation Limited (KMF). It is the second-largest dairy cooperative in the country after Gujarat (Amul). It comprises 14 milk unions under it. It is the first World Bank (International Development Agency) funded Dairy Development program in India. It initiated the STEP (Support to Training and Employment Programmes) for Women in October 1997. Since then, KMF has successfully developed over 800 Women Dairy Cooperative Societies (WDCs). It is also involved in organizing gender sensitization programs to promote girl child education and widow remarriages. Learning by example, they also undertake visits to Amul, to get inspired by the functioning of the world’s biggest dairy cooperative. Ksheera Sanjeevani, launched in 2014, aims to provide employment directly to 750 women by orienting and assisting them towards dairy farming activities and setting up their own cooperatives. Notably, KMF is known to send 40 metric tonnes of milk powder to Jammu and Kashmir flood victims in 2014. Evolving with time, Nandini has also started to serve diversified items like sandwiches, shakes, bun samosas etc. which are much demanded by the busy college-going students and employees in Bangalore since these can be grabbed easily while on the go.


SARAS


Source- sarasmilkfed.rajasthan.gov.in


Saras/ Saras milkfed/ Jaipur Dairy, formally known as the Rajasthan Cooperative Dairy Federation (RCDF), was initially launched in the year 1975, having taken charge of the successful implementation of Operation Flood in the state in the year 1977. With seven major milk unions under it, namely- Ajmer, Bhilwara, Bikaner, Jaipur, Jodhpur, Kota, and Udaipur, it provides training in these centers on several areas related to the management of DCs, expanding from- Management Committee member, milk tester and checker, first aid worker, dairy animal management, etc. In an attempt to go eco-friendly, it has started to power most of its units with solar panels under massive rooftop solar projects initiated in the year 2019. The dairy, majorly based out of Jaipur has undertaken various rainwater harvesting projects as well considering the semi-arid condition of the city and the state. It has installed several Effluent Treatment plants to treat its wastewater that is generated in the manufacturing and processing stages and to reuse the same for secondary purposes once treated. One of the notable initiatives by Saras is its custom to promote the sales of loose milk by encouraging people to get their own container for milk. Today, it sells about 11,000 liters of loose milk to reduce the use of plastic packaging and contribute to a greener country. 

MOTHER DAIRY

Source- www.motherdairy.com

In 1965, India's white revolution began with the founding of the National Dairy Development Board (NDDB). Mother Dairy is a wholly-owned subsidiary of NDDB, established in 1974. Mother Dairy is a project that is part of Operation Flood and aims to make India a milk sufficient nation. Mother Dairy is the single largest milk brand in Delhi, India, selling about 1.9 million liters of milk per day. Mother Dairy has a 40 percent market share in the organized sector in and around Delhi, owing to consistent quality and service during times of crisis such as floods, transport strikes, and curfews. In addition to milk, it is now the only dairy company to offer additional products in a variety of disciplines such as fruits, vegetables, edible oils, milk and dairy products, and packaged sweets. Safal is Mother Dairy's fruit and vegetable division. In Delhi, Safal is the largest retailer of fresh fruits and vegetables. They currently have 400 retail shops in and around Delhi, as well as roughly 23 in Bangalore.

SUDHA

Source- www.sudha.coop

Sudha, formally known as the Bihar State Milk Co-operative Federation Ltd.(COMFED), was established in 1983 as a part of Operation Flood. Sudha has expanded from five district-level milk producers in March 1997, covering eighteen districts to eight district-level milk producers covering thirty-three districts in Bihar. Milk producers and society functionaries are trained in many elements of dairying, clean milk production, society operation, artificial insemination, and other topics at the Farmer's Training Centres (run by Comfed) in Patna, Barauni, and Begusarai. Sudha, the Bihar State Milk Cooperative Federation, intended to consolidate its market in Guwahati in 2018 before extending to other Northeastern states. Sudha presented a range of dairy products in Guwahati, including pouch milk in two variations, curd, paneer, lassi, chhach, peda, misti doi, and cream, in accordance with this policy. Over the past couple of years, the state and the organization have channelized their focus towards increasing the numbers of plants in various districts, especially in Bhagalpur and Purnia districts, in order to help farmers increase their income.  

From the examples above, it is clear to one that a dairy cooperative is just so much more than farmers producing and selling milk together. Various initiatives, by numerous DCs, have helped in community development from promoting managerial skills and education, women and child empowerment to even sustainability.  Dairy cooperatives have been successful in effectively utilizing farmers' struggle to build self-sufficiency. They are the fuel that keeps our rural economy growing and moving. Despite the entry of the private sector and multinational corporations, they appear to be moving forward. They have been successful in adapting to changes and making the best out of the first mover’s advantage in the dairy sector. Since they are based out of local people, they enjoy higher trust than foreign or their private competitors. With this, they are expanding their operations each day and even evolving their services to serving small meals and snacks apart from dairy products. The Dairy Cooperatives have grown tremendously making India proud of its dairy market.  

Written By- Nandini De Chowdhury (1933357) and S. Manasvini (1933363) of 5 ECOH A



Comments

  1. Great Work. Very well explained and got to know more about state owned cooperatives for the dairy industry. Felt that AMUL could also have been explained and also how AMUL was able to increase its sales and profits even in the time of pandemic, (the model opted by AMUL was to increase the supply even when the demand was low from the hospitality industry, and focus more on consumer consumption).

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    Replies
    1. The comment about AMUL model was from Sufi and Shibin

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    2. Thank you for your suggestion on AMUL. However, we didn't take up AMUL as we wanted to explore other not so prominent dairy cooperatives as part of the white revolution. AMUL is very popular and has become the mainstream face of white revolution and 'operation flood'. This blog aims at shedding light on some dairy cooperatives which failed to get such attention but have played a vital role in the white revolution of India.

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    3. Ok....Thank you for the reply!!!

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  2. Very well written article! We did not know about Sanchi earlier and this article definitely introduces new information for readers. The only thing we would like to suggest is to include certain statistics, for example - Revenue of DCs as a percentage of GDP, Revenue of the entire industry from exports and imports from liberalization. These statistics would give a stronger backing to the brilliant argument.

    -Aditya and Joel (Group 27)

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    1. This comment has been removed by the author.

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    2. Thank you for your response! We and wanted to give more statistics for a comprehensive picture on this topic, but we faced with inconsistency and lack of sufficient data. Hence, we stuck to a more qualitative approach rather than a quantitative one.

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    3. I understand the lack of data and other restrains however, I commend your efforts for coming up with this insightful analysis. Keep up the good work!

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  3. Beautifully written article. The introduction to several state federations and their current spot in the competition was very insightful. The topic too, I think, is very relevant. A comparative study of the federations and a private enterprise would have given us more insights into the competition, product quality, future possibilities and demand variation. Overall the blog was neat and cute to read, very informative.
    Ashish & Govindan

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    1. Thank you for your suggestion! The success of the white revolution is dominated by dairy cooperatives rather than private enterprises. Due to it's negligible significance in the white revolution, we didn't consider it as an important aspect while talking about the white revolution.

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  4. Well explained. Could you please give insights about the future opportunities that cooperatives will have under the new farm laws?

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    1. Thank you for your suggestion! This blog aims at providing an understanding into the contributions of the dairy cooperatives to the white revolution which impacted the economy as a whole. Including the impact of farm laws would digress from the main theme of this blog i.e. 'white revolution'.

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    2. Thank you for the reply and clarification. All the best.

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  5. To read such a beautiful article was satisfying and worthwhile. It has been well articulated and follows a logical connection of the dots. We have gained a lot of knowledge through this blog and the only thing that lacked was utilization of tables or graph maybe showing the evolution of the dairy sector. Along with that we think that though the blog mentions more about the contributions, it doesn't really reflect much on the competitions from the private companies.
    Overall it a treat to read such an informative article. Great work!!
    Suryansh & Aman

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    1. The evolution of the dairy sector in India as whole would have to be enumerated with emphasis on domestic as well as private competitors. Doing so, could lead to deviation from our subject, that is the development in the cooperatives under the White Revolution as per the scope of our course (3 units) for the CIA. The competition by private sectors is summed up in a jist in the end. Focusing on the same brings into various other factors into consideration, this making the entire argument about domestic and international market whereas our focus is just growth of domestic dairies under White Revolution

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    2. Got it. Thank you for the reply and good work again!!

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