DAIRY COOPERATIVE MARKET OF INDIA

The Indian Dairy Co-operative Market

India has emerged as the largest milk producing country in the world manufacturing about 92 million tonnes of milk per annum. It could be said of the Indian dairy market as being a pyramid with the base made up of a vast market for low-cost milk. The bulk of the demand for milk is among the poor in urban areas whose individual requirement is small, maybe a glassful for use as whitener for their tea and coffee. Nevertheless, it adds up to a sizable volume - millions of litres per day. In the major cities lies an immense growth potential for the modern sector. Presently, barely 1000 out of 3,700 cities and towns are served by its milk distribution network, dispensing hygienically packed wholesome and quality pasteurized milk. According to one estimate, the packed milk segment would double in the next five years, giving both strength and volume to the modern sector. The narrow tip at the top is a small but affluent market for western type milk products. Indian Cooperative procured about 25.85 million litres milk per day in the 2009-10.

Growing Volumes

The effective milk market is largely confined to urban areas, inhabited by over 25 per cent of the country's population. An estimated 50 per cent of the total milk produced is consumed here. At the turn of the twentieth century, the urban population consuming milk has estimated to have risen by more than 100 million to cross 364 million, a growth of about 40 per cent. The expected rise in urban population would be a boon to Indian dairying. Presently, the organised sector, both cooperative and private, and the traditional sector cater to this market.

Milk Production
- The Upside

Increasing awareness: With India entering the era of economic reforms, agriculture, particularly the livestock sector, is positioned to be a major growth area. The fact that dairying could play a more constructive role in promoting rural welfare and reducing poverty, is increasingly being recognised. For example, milk production alone involves more than 70 million producers, each raising one or two cows/buffaloes. Cow dung is an important input as organic fertilizer for crop production and is also widely used as fuel in rural areas.

- The Downside

Technological gaps: Several areas of the dairy industry can be strengthened by the induction of state-of-the-art technologies from overseas. Those who bring in new technologies or sign joint ventures with foreign companies stand to benefit the most. To make the best out of the present situation, the following areas require immediate remedial action on the part of dairy entrepreneurs:

Raw milk handling needs to be upgraded in terms of physico-chemical and microbiological attributes of the milk collected. The use of clarification and bactofugation in raw milk processing can help improve quality of the milk products.

Better operational efficiencies are needed to improve yields, reduce waste, minimize fat/protein losses during processing, control production costs, save energy and extend shelf-life. The adoption of Good Manufacturing Practices (GMP) and HACCP would help manufacture milk products conforming to international standards and thus make their exports competitive.

Dairy Cooperatives account for the major share of processed liquid milk marketed in the country. Milk is processed and marketed by 170 Milk Producers' Cooperative Unions, which federate into 15 State Cooperative Milk Marketing Federations.

The Dairy Board's programmes and activities seek to strengthen the functioning of Dairy Cooperatives, as producer-owned and controlled organizations. NDDB supports the development of dairy cooperatives by providing them financial assistance and technical expertise, ensuring a better future for India's farmers.

Over the years, brands created by cooperatives have become synonymous with quality and value. Brands like Amul (GCMMF), Mother Dairy (Delhi), Vijaya (AP), Verka (Punjab), Saras (Rajasthan). Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur) are among those that have earned customer confidence.

The Anand Pattern

The milk cooperatives under Operation Flood follow the Anand Pattern, which was pioneered by Dr V Kurien when he was General Manager of the Kaira District Cooperative Milk Produ-cers' Union Limited, Anand.

Dr Kurien nurtured the Union from a daily collection of 500 litres a day in 1948 to one million litres a day in early 1990. He helped set up similar District Cooperative Unions in six other districts of Gujarat, which eventually federated to an apex body, the Gujarat Cooperative Milk Marketing Federation Limited. An establishment, which Dr Kurien now heads as Chairman. The Federation covers more than 1.5 million milk producer families. Procured about 9 million  litres milk per day in 2009-10.

NDDB: Heralding Changes

The past 33 years of the National Dairy Development Board (NDDB) have seen the birth of India's modern dairy industry. The cooperative movement, that NDDB helped to create, has become a model for other deve-loping countries and the international agencies that are concerned with dairy development.

The enormous urban market stimulus has led to sustained production increases, raising per capita availability of milk to nearly 200 grams per day. 
- The dependence on commercial imports of milk solids are done away with. 
- Modernisation and expansion of the dairy industry and its infrastructure, activating a milk grid. 
- Marketing expanded to supply hygienic and fair priced milk to some 300 million consumers in 550 cities and towns. 
- Ninety lakh small producers in 74,000 villages are earning jointly an incremental income of Rs 2500 crores from milk. 
- A nationwide network of multi-tier producers' cooperatives, democratic in structure and professionally managed, has come into existence. Millions of small producers participate in an economic enterprise and improve the quality of their life and environs.

In sum, NDDB is a unique example of organisational development, human resource and cooperative development in India. 

MILK COOPS IN INDIA
1) GCMMF
No of Cooperative Unions 12
No. of Dairy plants 19
Capacity 6,595 Thousand Litres per Day 
Milk Product Range: Infant
Milk Food, Instant Milk Mix, Ice-cream, Skim Milk Powder, Ghee, Dairy Whitener, Paneer, Sweetened Condensed Milk, Malai Peda, Gulabjamun Mix, Shrikhand, Pizza Cheese, Butter 
Brand: Amul

2) Mahasangh, Maharashtra
No. of Cooperative Unions 24
No. of Dairy plants 28
Capacity 4,905 Thousand Litres per Day 
Milk Product Range: Pasteurized Butter, Pure Ghee, Lassi, Shrikhand, UHT Milk, Flavoured Milk, Paneer, Peda
Brands: Aarey, Vikas, Mahanand

3) Andhra Pradesh Dairy Devt Coop Federation
No. of Cooperative Unions 9
No. of Dairy plants 12
Capacity 2,437 Thousand Litres per Day 
Milk Product Range: Table Butter, UHT Milk, Skim Milk Powder, Ghee, Flavoured Milk, Khoa, Pasteruized Butter, Kulfi, Processed Cheese
Brand: Vijaya

4) Bihar State Coop Milk Producers Federation 
No. of Cooperative Unions 8
No. of Dairy plants 8
Capacity 586 Thousand LPD
Milk Product Range: Pure Ghee, Butter, Ghee, Paneer, Lassi, Rasagolla, Peda Ice-cream, Milk Cake
Brand: Sudha

5) Haryana Dairy Devt Coop Federation 
No. of Cooperative Unions 5
No. of Dairy plants 5
Capacity 530 Thousand LPD
Milk Product Range: Pure Ghee, Paneer, Butter, 
Brand: Vita 

6) Karnataka Coop Milk Producers Federation 
No. of Cooperative Unions 13
No. of Dairy plants 15
Capacity 2,130 Thousand LPD
Milk Product Range: Skim Milk Powder, Paneer, Pure Ghee, Badam Burfi Gulamjamun, Pasteurized Butter, Pure Milk Khoa, Ice-cream, Tonned Milk Curd
Brand: Nandini

7) Kerala State Coop Milk Mkting Federation
No. of Cooperative Unions 3
No. of Dairy plants 3
Capacity 900 Thousand LPD
Milk Product Range: Instant Dairy Whitener, Ice-cream, Flavoured Milk, Skim Milk Powder, Ghee, Skimmed Milk Curd, Pasteurized Butter, Peda
Brand: Milma

8) Punjab State Coop Milk Producers Federation 
No. of Cooperative Unions 11
No. of Dairy plants 9
Capacity 1,525 Thousand LPD
Milk Product Range: Pure Ghee, sweetened Flavoured Milk, milk Cake, Ice-cream, Curd, Malted Milk Food, Lassi, Pesturized Butter UHT Milk, Processed Cheese, Dairy Whitener, Paneer 
Brand: Verka

9) MP State Coop Dairy Federation
No. of Cooperative Unions 6
No. of Dairy plants 7
Capacity 1,030 Thousand LPD
Milk Product Range: Pure Ghee, Processed Cheese, Lassi, Skim Milk Powder Pasteurized Butter, Flavoured Milk 
Brand: Sneha, Sanchi

10) Orissa State Coop Milk Producer's Federation
No. of Cooperative Unions 5
No. of Dairy plants 5
Capacity 135 Thousand LPD
Milk Product Range: Pure Ghee, Butter, Sweet Curd, 
Brand: Omfed

11) Pradeshik Coop Dairy Federation (UP)
No. of Cooperative Unions 30
No. of Dairy plants 13
Capacity 1,510 Thousand LPD
Milk Product Range: Pure Ghee, Instant Milk Powder, Paneer, Pasteurized Butter, Instant Milk Mix, Skim Milk Powder, White Butter, Milk Cake
Brand: Parag

12) Rajasthan Coop Dairy Federation 
No. of Cooperative Unions 16
No. of Dairy plants 10
Capacity 1,000 Thousand LPD
Milk Product Range: Pure Ghee, Shrikhand, Flavoured Milk, Milk Cake, Cheddar Cheese, Paneer, Pasteurized Butter, UHT Cow Milk
Brand: Saras 

13) WB Coop Milk Production Federation
No. of Cooperative Unions 7
No. of Dairy plants 5
Capacity 1,510 Thousand LPD
Milk Product Range: Table Butter, White Butter, Ghee, 
Brand: Bhagirathi

14) TN Coop Milk Producers Federation
No. of Cooperative Unions 12
No. of Dairy plants 15
Capacity 2,605 Thousand LPD
Milk Product Range: Skim Milk Powder, Milk Khoa, Milk Peda, Pure Ghee Butter, Cheese, Yoghurt, Table Butter, Flavoured Milk Ice-cream, UHT Standardized Milk
Brand: Aavin