1

SUMMARY

ABSTRACT OF THE STUDY:

This is an exploratory study aimed to understand the impact of co-

operative dairies in selected areas of Gujarat, India. The study is based

on three Co-operative dairies located in around Central Gujarat. The

areas have been selected also due to their diversity and specifications

that would also help one assess the impact of the dairies on certain sects

of the community such as the tribals and women.

METHODOLOGY OF THE STUDY:

The study is mainly based on secondary data such as annual reports and

profile notes of the dairies. Along with data from past papers, primary

research was conducted in the form of dairy visits mainly to understand

the perception of the stakeholders. The central Gujarat dairy of Kheda

District named ‘Amul’ is the pioneer in developing dairies all over India.

The Sumul Dairy is an old dairy, which has made dairy development

amongst the tribals of the Surat district acceptable and efficient. The

dairy in Valsad-‘Vasudhara Dairy’ that covers 3 districts of the tribal area

has the largest women participation in the Co-operative society.

In order to look deeper in the strengths of Co-operative dairies;

the performance of dairies have been accessed in terms of specific

indicators such as organizational performance and business

performance.

The increase in number of Co-operative societies and it’s

expansion is has led to an improvement in the functional role of

procurement of milk at the village level. The business performance has

been examined in terms efficiency, cost maximization and net profits

and most importantly the share of the producers in the total revenue

earned.

The impact of Co-operative dairy development is examined in

terms of the impact on economic development, social development,

rural development and human development. These impacts are

prevailing as the socio-economic transformation due to these factors led

to the evolution of the ‘White Revolution’, which changed the face of

milk production in Gujarat.

FINDINGS OF THE STUDY:

The Economic impact was evident as the 80% share of consumer

spending went to the producers. The management costs of the whole

process were insignificant as they were about 4% on an average of the

total cost. The Dairy development has resulted into higher quantum of

production, productivity per animal and the cost of production.

Social Development impact was evident through the reduction in

caste distance, increase in women power and increase in participation

and value of women in the family.

Rural Development was evident through the fact that 15million

farmers are procuring the benefit of regular annual turnover of

Rs. 2,00,000 crores. This is not even close to any rural development

scheme in India.

CONCLUSION:

The impact of the study highlighted impressive achievements of the

development of the Co-operative and triggering its benefits towards

tribals and women milk producers. Therefore, I would like to devote my

future study to understand the links between poverty elevation and the

process of co-operative dairy development. So, India can get a brighter

future.

IMPACT OF CO-OPERATIVE DAIRY

DEVELOPMENT ON RURAL ECONOMY

A CASE OF

SELECTED CO-OPERATIVE DAIRIES

OF GUJARAT

AN EXPLORATORY STUDY

CONTENTS

Sr. No.

Chapter Page No.

1. Introduction 1 - 2

2. Brief History of Co-operative Dairy Development in

Gujarat.

3 - 6

3. Profiles of Selected Dairy Co-operatives 7 - 14

4. Performance of the Co-operative Dairies 15 - 33

5. Socio Economic Transformation of Rural Economy of

Gujarat.

34 - 44

6. Concluding Observations - (Emerging Issues) 45 - 48

Appendix

1. Selected References

2. Tables.

Table No.

Particulars Page No.

Table-1 Organizational Performance 17

Table-2 Business Performance of Amul (Rs. Lakh) 18

Table-3 Organizational Performance of Sumul 21

Table-4 Business Performance of Sumul Dairy 24

Table-5 Income / Expenditure of Sumul Dairy 26

Table-6 Organizational Performance of Vasudhara 28

Table-7 Extension Program 30

Table-8 Business Performance of Vasudhara Dairy 32

Table-9 Income out of Generation Dairying. 38

INTRODUCTION :

The Indian Dairy is the largest sector in the country in terms of

number of animals but the poorest in terms of animal productivity. The

growth was just 0.7% per annum and the per capita availibility of mil fell

from 133 to 100 grams as well. This was mainly due to the large no. of

small animal holders with an average of 1 to 2 animals with yields as low

as one or two litres per animal. This was due to various reasons like

unorganized products, supply deficiency and poor resources that act as a

barrier for the production enhancement. Hence, dairying was largely a

supplementary activity and the production was meant for family

consumption. However, this scenario changed substanially due to the

‘White Revolution’ led under the Anand Pattern Model developed by the

Amul Dairy and replicated under the world famous programmes of the

Operation Flood project initiatied by the National Dairy Development

board in three phases during 1971 t0 1983.

With this backdrop, the intended purpose is to proceed for an

exploratory study of the development of the Dairy co-operative and

examine it’s impact on rural development. At a large scale and specific to

the weaker sections of the society, the paper will have several

limitations. The study is mainly based on annual reports of the dairy Co-

operatives for the past 3 years.

The present study refers to Gujarat state's 3 large Co-operative

dairies that represent 78% of the milk production in Gujarat.

(1) KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD. ANAND

AMUL DAIRY

This dairy of Central Gujarat is the pioneer of dairy development

in India. This dairy has been chosen purely because it was an ANTIDOTE

to monopoly of contractors. It successfully provided an institutional

alternative resulting into ‘ANAND PATTERN DAIRY CO-OPERATIVES

MODEL’ popular in India and due to its success it brought out 'WHITE

REVOLUTION'.

(2) SURAT DISTRICT CO-OPRERATIVE MILK PRODUCER'S UNION (SUMUL)

The basic objective of the present Essay is to highlight the impact

of dairy developments on the weaker sections. This dairy is located in

South Gujarat and prominently has large tribal talukas and more than

55% tribal population and thus it is a tribal dairy Co-operatives to a

larger extend. This has been chosen as it changed the life and livelihood

of Surat District's tribals.

(3) VALSAD DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD

(VASUDHARA)

This dairy has been chosen in the study due to its great popularity

as a Tribal Women Dairy Co-operative. Out of 1046 primary Co-

operatives societies as much as 970 primary Co-operatives are Tribals

Co-operative.

Similar remarkable progress of women Co-operatives could be

seen in Vasudhara Dairy. It has 851 out of 970 products Co-operatives

exclusively run by women that is as much as 88% participation of women

in dairy management. Though indirectly the whole dairy operations at

village level belong to women as all functions are being done by women

only.

Thus, these three specific dairy Co-operatives of three different

places constitute considerable production of Gujarat dairy Co-

operatives. The total number of Dairy Co-operative in Gujarat are 16,000

out of which the dairy Co-operatives under the present study would be

3245. In aggregate i.e. approximate 20% of total Gujarat Dairy

Co-operatives.

(II) HISTORICAL BACK GROUND OF CO-OPERATIVE DAIRY

DEVELOPMENT IN GUJARAT

Gujarat Co-operative development has very vivid history. It needs

to be reviewed briefly as a backdrop to understand the process and

progress of Co-operative dairy development not only in Gujarat but all

over India.

Dairying and Animal husbandry were the oldest agricultural

activities in India. Due to low animal holding with 78-80% small and

marginal farmers who were resources less; dairying was treated as

casual, non marketed family consumption activity conducted without

any purchased inputs but depended on common lands or sides of the

farms for fodder etc.

India, prior to independence, had very low level of per capita

consumption and yields. The urban needs of the milk was met with great

difficulty often substituted by milk powder and rationing of milk. The

municipal corporation of large cities like Mumbai etc. Where entering

contracts with private contractors who were liable to provide pre-

determined quantum of milk for 12 months at pre-determined prices.

Thus, producers were contacted directly as small and tiny

producers were incapable of supplying the pre-determined quantity of

milk at pre-determined prices. It was in 1945, these contractors

transformed into Monopolist as they got exclusive contracts. The price

at which the contractor sold milk to city Municipal Corporation

(Mumbai) were higher and price paid to farmers for procuring was very

low. Thus, giving rise to an exploitative Monopoly system.

Realizing the complex monopoly power of contractors, some of

the farmers mate late Sardar Vallabhbhai Patel who asked late Morarji

Desai to help farmers in consultation with local leaders like late

Tribhuvandas Patel. Late Morarji Desai suggested to establish Co-

operatives dairy as an antidote to contractors monopoly. Farmers

quickly realized the benefit of Co-operatives in terms of increased

bargaining power, resource pooling and increased scale of production

which would enable the dairy Co-operatives to take contract to supply

milk to urban milk scheme of Mumbai State, who declared priority to

Co-operatives against private contractors.

Hence, with 3 villages and around 243 litres of milk Co-operative

got initiated in the District in 1946.

Kaira District milk producers constituted a union of all producers

Co-operative in village to resolve the increasing surplus of milk beyond

the acceptable procurement of milk by Municipal Corporation. It was

during 1954-58 that it was felt that they should have the large Dairy

products manufacturer's plant to convert surplus milk into consumable

products. By this time the Father of dairy Co-operatives late Dr. V. Kurien

joined the hands with late Tribhuvandas Patel who made the history as

winner of Magsasay Award. By the 1970s other districts were also

encouraged by Amul experience to start their dairy Co-operatives and 12

dairy plants started on Anand pattern. For the marketing and smooth

process of co-existence and to eliminate competitions among the

Gujarat dairy Co-operatives, The Gujarat Co-operative Milk Marketing

Federation (GCMMF) was constituted to promote production and

marketing of dairy products. Amul played a very friendly role by

branding all the products of dairy Co-operative members of the

federation.

Thus, evolution of challenges by progress led a specific pattern

“Amul Dairy Co-operative” model with three layers producers

Co-operatives at village level where it is supposed to collect milk for the

dairy and promote milk production with district dairy aided programme

of milk procurement. District Co-operative union of village societies

established DAIRY PLANT and federation of district unions provided

market. By 1970 Co-operative dairy sector of Gujarat became vibrant

without government assistance. It was in 1964-65 Prime Minister came

to inaugurate the Dairy plant of Amul. He was quite impressed by the

growth and benefits to marginal producers. He then expressed his desire

to replicate Amul model in all the states of India, with the condition of

keeping the headquarters in Anand only. Late Dr. Kurien agreed to do so

and thus in 1970, ‘National Dairy Development Board’ (NDDB) came in to

existence under the Ministry of Agriculture of India.

However, there was no fund to execute the plans of NDDB. During

this financial crunch, offer of donation of milk powder was received from

EEC to the Ministry of Agriculture of Government of India. Late Dr.

Kurien advised the government to accept the milk powder aid and

suggested the scheme of OPERATION FLOOD which was implemented

between 1970 to 1996 under three phases. WFP provided 1,26,000 MT

SMO and 42,000 MT of Butter Oil in first phase and Kurien adopted

“Market First Approach” and led development of infrastructure for

development of “National Milk Grid” connecting production point with

consumers market and thus with in 26 years Rs. 1.8 Billion worth of

investment was made for development of Anand pattern dairy Co-

operatives in 10 states of India. By 2000 A.D. India had almost 85,000

villages Co-operatives with more than 106 lakhs members working in

170 milk sheds of India. At present NDDB is engaged in consolidation of

Co-operative dairy sector under National Dairy Plan.

It was in 1991 under the New Economic Policy that Government of

India abolished the monopoly of Co-operatives on the established of

dairy plants and deregulated the Dairy industry for private sector and

multinationals with some regulatory measures such as MILK ORDER

under which Co-operative procurement area were not allowed to be

covered by the private sector to collect milk and quality controls were

also operated.

However, during the last decades of 2000 and 2010 Co-operative

Dairy sector became more stronger from all heads such as Competition,

Investment, Growth, Exports and benefits to producers in comparison

with private dairy holders.

Thus, emergence of Amul pattern dairy Co-operatives mode gave

rise to strongest Co-operatives dairy business. Presently, the Federation

has 15 Dairy union as its members with 31,83,800 producer members of

the 16,914 village products societies making turnover (Sales) of Rs.

13,735 Crores out of which total payout to Milk producers is Rs. 12,492

Crores. Thus, Amul has been rightly coined as largest Co-operatives in

Asia's Dairy Industry.

(III) PROFILES OF CO-OPERATIVE DAIRIES

The performance of Co-operatives dairies and it's impact on rural

producers needs to be seen in the context of the ‘PROFILES’ of the dairy

as the organizational and Economic Profiles and locational Environment

are different among dairies. In the present the brief sketch of peculiar

characteristics, Environment of Work, organizational and Economic

Profiles will provide the idea of relative competence of the different

dairies.

(a) KAIRA DISTRICT CO-OPERATIVE MILK PRODUCER UNION LTD. ANAND

(AMUL)

This area was characterised as a produce of commercial crop of Tobacco,

but a large number of small and marginal farmers were used to

undertake dairying for sales at marginal scale. It does not have big

market centres. The Dairy is pioneer of White Revolution through its

model and was generous enough to allow its brand name for the

replication of the Amul in Gujarat. It a district union with 1195 village

society and 676,349 members.

Distinguishing Features of The Dairy Includes:-

(i) Turnover of Rs.2850 Crores in 2012-13 with 16% growth rate.

(ii) Spread of markets to Pune, Kolkata and Mumbai.

(iii) Exporting products like Cheese, Paneer and Butter etc. to various

international Markets like USA, Singapore, Dubai, Australia,

Malasia, Kuwait etc.

(iv) Known for the most innovative dairy production of cheese out of

Buffalo Milk and Milk Powder of Buffalo Milk leading to

production of chocolate, Delicious, Amul lite and Bakery products

with significant rise in sale by 20% growth rate per annum.

(v) Establishment of satellite dairies in Kolkatta, Pune and Mumbai.

(vi) Adoption of distinguished Technology including ROBOT system of

Automated Processing of dairy plan in Mumbai to Bulk Milk

Coolers to 970 village coops.

(vii) Information Technology is an integrated part of the Business. It

has developed successful SAP-ERP for uniform computer software

system connecting all the societies and retailed and wholesale

market contacts with central server for smooth functioning and

controlling the system.

(viii) Powerful production enhancement for better productivity of

animals through cattle feed (380 MT), artificial Insemination(A.I.)

and animal healthcare with 24 hours mobile vans for animal

health.

(ix) Co-operative Development Programme for the village societies is

an integral part of the Dairy Industry. The programmes include

Animal husbandry, cow shed maintenance; milking machines

(580), quality awareness to produce milk of high standard and

quality. As a result, almost 1050 Milk Societies have obtained ISO

certification 300 Co-operative Development Programmes were

conducted at the societies; similarly, employees are also trained

during 2012, 828 employees were trained in India and 82 Abroad.

(x) Total Sanitation (TSC) Project got initiated by Central Ministry of

India for construction of toilets;Dairy has started providing

support loan to members without interest and thus, 6862 toilets

of the 73 societies were constructed.

(xi) Environment Preservation was done very effectively through tree

plantation of 8 Lakh trees covering 310 societies.

(xii) Schemes of Production enhancement is being done for example

“ADARSH DAIRY FARM” was introduced by Amul Dairy Loan and

district Bank support and thus 11780 Milk animals were homed in

milk sheds and 591 Milking Machines were also provided to

members.

(2) SURAT DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.

(SUMUL DAIRY)

Amul is in existence since 66 years old while Sumul was

incorporated 62 years back. However, Even before 1968 Surat district

already had multi product crops and thus seeds of dairy Co-operatives

were already planted:

Some of the basic Characteristics of ‘Sumul’ Dairy could be stated as

follows.

(1) Unlike Amul, Sumul has readily available urban consumers market

in Surat capturing morethan 70% of the Market share.

(2) Since most of the sales include Milk in liquid from; Product

diversification in Sumul was relatively less as compared to Amul.

Yet, It did produce some dairy products out of the surplus milk.

(3) On account of high market share at close vicinity it paid highest

per Kilo Fat price to its producers i.e. Rs. 485 per Kg.

(4) With its 292 full time sales centres and 2903 Surat District Milk

Distributors, average daily sale of milk was 8,09,744 Litres.

(5) ‘Tribal dominance’ was peculiar feature to this dairy as

procurement of milk from dairy Co-operatives in tribal areas was

very higher.

(6) Similarly, in ‘Milk Procurement’ Cow Milk was very significant as

could be seen from the fact 2012-13, Total Milk (Kg) was

39,79,98,669 out of which 11,45,74,390 (Kg) was cow milk. Thus

the ratio of cow milk to total milk was as high as 34 %.

(7) Since Total Milk in liquid from is major saleable product.

Diversification in Milk products unlike Amul was very negligible i.e.

sales of by products like Butter Milk, Sumul Shrikhand, Ice Cream

were regular but sales of Sweets was seasonal.

(8) The Automation at the production level had been done

significantly as it has developed 1503 Automated Milk collection

Centres, 289 Bulk Chilling Plants90 Weighing scales and Milk

Tester and 240 Weighing Scales.

(9) Due to its moto of “Clean Milk Production” it had persuaded 131

societies to get the ISO:9001:2008. (2003) & CODEX HACCP-9000

(2000)

(10) Co-operatives Development and Internal Consultation

Development Programme were conducted regularly to develop

capacity building through Training, Seminar, Workshops etc. By

2012-13, 183 societies and 10230 members and employees

participated & enriched themselves.

(11) Regular production enhancement was being done through variety

of schemes and programmes which includes Sumul DAN (Cattle

feed), Fodder seed distribution, Animal health and Breeding,

Sumul ‘Sumadhur’ laboratories, Temperature Control

Programmes, ‘DIPA’ Programme of Progeny Testing, Sumul

Fertility improvement programmes, NECO Animal Projects and

Sumul Animal Genetics at National Level, A I Centres and chelated

Minerals mixture distribution calf rearing at Sumul breeding

Centre at Vanskui etc.

(12) Sumul had provided benefit of group insurance and public

personal accident policy, milk house Aid, Biogas Project, Wormy

Compost Plant (Bio-Agricultures ) etc to its members.

(13) To promote benefits of Government Projects, it took the

advantage of integrated Dairy Development programme under

which 1654 animals with subsidy of Rs. 34.24 crores were

distributed and Rs. 17,400 were used to purchase milch animals

funded on loan.

(14) Information Technology was widely used in case of BCU data

procurement Real time order Booking system by Mobile, CCTV

Camera Project in Dairy Plant and office, IP Telephony, Vehicle

Tracking system etc.

(15) Total Quality Management was a major achievement of the dairy.

Sumul had made all the efforts to preserve highest quality by

complying to Food safety and Standards Act 2006 in addition to

Prevention of Food Adulteration Act, 1954, and also adhering to

International Milk Quality Standards established by International

Dairy Association. To substantially enhance clean milk production

a scheme involving bacterial count of milk from bulk chilling units

was introduced in July' 07. Accordingly the dairy provides 10 paise

per litre for milk having bacterial count less than 15 lacks per ML

and 5 paise per litre milk having bacterial count 16-30 lacks.

(16) Social and Rural Development drive of the Sumul is remarkable.

The following programmes indicated the social and Rural

Development promotion.

(I) Tree plantation to save environment was done by 776 societies by

celebrating “Milk Society Tree Plantation Day”. This resulted in

plantation of 1127605 saplings & transplantation of 173371

horticulture saplings.

(II) Rural sanitation programme of TSC financed through interest free

loans to encouraged producers to construct toilets and bathrooms

of better quality.

(III) Health promotion programmes for producers and consumers

were organized. For example 38,000 to 40,000 children got

FLAVOURED milk through Anganwadies in district on no profit, no

loss basis. Sumul Healthy Baby competition and drawing

competition for students K.G. to XII standards are most popular

activities.

(IV) Plastic Surgery Project :

Plastic surgery was not only rare but very expensive for poor

producers hence with JIVAN AKSHAY CHARITABLE TRUST

arrangements were made for those who suffered NEONATAZ

DEFECTS.

(17) Sumul Awards Winner

On account of recognisation and appreciation national

awards such as “The ENERGY CONSERVATION AWARD (2012)

JAMANADAS BAJAJ AWARD (2012); NASCOM AND CNBC TV

AWARD (2012) and GSMMC’s Tree plantation Award (2012) were

accredited to Sumul Dairy.

Thus, Tribal producers dominated dairy is very modern, high

quality conscious business unit wedded to powerful Rural and

Social Development of the Villages under its milk shed and

consumers in its market cover.

3. VALSAD DISTRICT CO-OPERATIVES MILK PRODUCERS UNION LTD-

VASUDHARA

With 40 years of its foundation in 1981 Vasudhara Dairy is the latest

among all the three dairies. On account of low level of dairying and high

level of Tribal Agriculture i.e. backward agriculture, N.D.D.B. did not give

a positive feasibility report. Today it has achieved a growth trend beyond

expectation mainly due to management practice and unique leadership

of Moghabhai Desai who holds chairmanship of the union from 1981 till

today.

Interesting and unique characteristic of the dairy are briefly

mentioned below.

1. This dairy encompasses three districts Valsad, Navsari and Dang

with tribals with population exceeding 60% to 99%.

2. The Board of directors is not only tribal dominated, perhaps the

only dairy that is managed by Tribals.

3. Similarly the management exclusively by Tribal is unique. Out of

970, 851 are women managed. As a result as much as 8 out of 14

directors belong to tribal women which itself is a record.

4. Unlike the other two dairy's Annual Reports, this backward areas

dairy annual report clearly mentions its Moto Statement, Quality

Policy, Mission Statement etc.

5. Out of Total Milk Procurement of 3,19,30,732 Kgs. milk, as much

as 14,35,36,092 Kgs of milk is cow milk. This is achieved through

assured price to cow milk and its prime attention for the same.

6. The Milk shed area of the dairy does not have adequate local

market of its liquid milk and products hence, it expanded forcibly

to other states i.e. Maharashtra and Goa and also started

independent dairy and dairy product plants.

7. Dairy is very quality conscious hence, it started building up skills at

the farm level with various training programmes for all members

which included pure management subjects such as management

of societies, computer training, book keeping and leadership

development programme. 27 missions programmes were

conducted covering 301 societies under the programme.

8. Clean milk production programme was highly supported by

mechanization and technology assuring efficiency, accuracy and

hygiene promoting without loss of labour employment. Such state

of Art equipments includes milk weightage and quality testing,

Milko Meters and wide range of equipments like EMT, ACLR,

AMCS, processor based milk collection system generators sets for

stand power requirements and also solar power plants where

actual electricity problems were usual. These facilities were

provided to as much as 291 societies.

9. Technical inputs for the production enhancement are being done

very vigorously. Unique programmes include not only usual

programmes of cattle feed, supply, AI, facilities but also CALF

REARING SCHEME, which includes insurance coverage, nutritional

feed and finance and Fodder Bank for all the year round fodder

supply and finance to stock dry Fodder of Rs. 200 Lacs to 4225

women member with 9% interest. Mobile disease Testing

Laboratory with Rs. 43 lacs is also made available for health care

of animals.

10. Finally, Social and Rural Development with high level women

participation is quite unique. A variety of programmes like wormy

compost schemes, Biogas Plants, Low cost sanitation, Rain Water

Storage Tanks done in collaboration with departments of state

were implemented. The most remarkable is SELF HELP GROUPS

(SHG) development under women dairy Co-operatives leadership

of Mahila Project. At present it has 3000 SHGs with 49, 47, 56,329

members who have saved Rs. 575 Lakh and with 95% recovery

loans were issued to 2588 members.

(5) PERFORMANCE OF THE CO-OPERATIVES DAIRIES :

Performance of the Co-operatives dairies include organizational as

well as business achievements. The organizational performance could be

assessed in terms of quantitative as well as qualitative measures such as

- No. of Primary Co-operative Societies

- Members of the Society

- Size of Society i.e. members per Society

- Milk Procurement

- Milk Procurement Per Society

- Technical Inputs Distribution

- Artificial Insemination

- Sales of Cattle Feed

- Chilling Units in Society

- Milk Collection Centres owned by societies etc.

(B) Business Performance Indicators will Include :

- Milk Procurement

- Total Turnover

- Price Paid toFarmers

- Management Cost

- Net Profits

- Profit Turnover Ratio etc.

Depending upon the availability of data, a small variation in

indicators is expected.

Our referenced period is 2010 to 2013

1. PERFORMANCE OF AMUL DAIRY

(1) Organizational Performance :

The following Table-1 indicate the organizational development

and performance in the area of milk collection and production

enhancement by distribution of technical input provided by the

District Co-operative Union.

Table-1

ORGANIZATIONAL PERFORMANCE

Sr. No.

INDICATORS 2010-2011 2011-2012 2012-2013

1 Primary Milk Co-operative Society

(No)

1162 1176 1195

2 Members of Societies Average

members per societies (No)

634,675

545

669,546

569

676,349

565

3 Milk Procurement form Societies (Kg)

Average Milk Produced by Society

515,961,530

4,43,647

554,784,962

4,71,755

616,189,029

5,15,640

4 Milk Collection Centres owned by

Society (No.)

957 963 970

5 Chilling Units (No.) 741 823 886

6 Insemination Artificial (A.I.) (No.) 882,159 898,472 904,211

7 Sales of Amul (MT)

DAN (Cattle feed)

243,615 288,952 333,470

8 Veterinary First Aid Cases

Special Veterinary Visits

117,319

573,998

116,692

642,995

97,341

692,860

Source : Annual Report of Kheda District Co-operative Union.

Few important observations based on the Table-1 are as follows.

(i) The marginal rise in No. of Societies is due to the fact that 98%(+)

village of the District are already covered, thus saturation point (i)

has reached.

(ii) Average collection is also reasonable as 500 is viability point and

dairy has collected 970 Litres per society.

(B) Business Performance :

Available data from respective Annual Reports are rearranged and

stated in Table-2

Table -2

Business Performance of Amul (Rs. Lakh)

Sr. No.

INDICATORS 2010-2011 2011-2012 2012-2013

1 Total Milk Procurement (Kg) 51.59 56.09 61.70

2 Total Turnover (Sales) Crores (Rs.) 1751 2460 2850

3

Management Cost

(Salaries) Rs. Lakh

Salary 3272 3380 5643

Administrative 255 484 524

4 Price Paid for Farmers 396 452 475

Total Expenditure 175100

Some important observations regarding Amul business progress are as

follows;

(i) With more than 16% rise in turnover etc. between last two years

dairy has achieved more than average inflation rate (10%) and

with 12% rise in comparison of last year.

(ii) Milk Procurement collections rose to 17.0 Lakh Kgs. per day.

(iii) Total sales has increased by 16% which is more than previous year

despite adverse condition of Economy. Similarly, Export was also

gaining heights.

(iv) Management Performance : Management efficiency was in terms

of their cost of managing dairy which was reflected in the salaries

and administrative cost per annum. The management cost was

1.84% of total expenses in 2012-13 and 2.10% in 2010 which are

excellent in the sense that it is far below standard norms of 5%

and the management cost has reduced ever after the inflationary

spiral.

(v) The price paid to farmers by Dairy has increased by 17%.

Thus, overall performance of the Amul Dairy is quite remarkable

even in the adverse economic condition of economy as the status

of economy determines the overall demand for the products,

terrible food based inflation has led cut over consumption of

essential commodities; yet this performance is quite appreciable.

PERFORMANCE OF SUMUL DAIRY :

‘Sumul’ dairy is an urbanized dairy with 75% market share of Surat

city, hence, largest sales proceeds are available from liquid milk sales

(75%) and least from dairy products (15%). On the basis of the available

data two tables of organizational and business performance of Sumul

Dairy are constructed here.

(i) Organizational Performance :

This performance of organizational aspects includes expansion of

societies, size of societies, participation in dairy; and Technical

inputs distributed and utilized. It may be noted that basic

functions of primary milk producers Co-operative society in village

has to perform the task of milk collection, milk production and

production enhancement. In view of these facts the following

Table-3 has been constructed covering last three year under

reference i.e. 2010-11, 2011-12 and 2012-13.

Table – 3

ORGANIZATIONAL PERFORMANCE OF SUMUL

(a) ORGANIZATIONAL EXPANSION AND PROCUREMENT

Indicators Reference Year

2010-11 2011-12 2012-13

No. of Societies 1068 1076 1080

No. of Members 2,28,164 2,28,924 2,29,456

Members per Societies 213 212 212

Milk Procurement Collection (Kg) 26,64,56,069

2,49,49

32,60,83,990

3,03,052

39,79,98,669

3,68,517

Milk Procurement per Societies/

Members

1167 1424 1734

Pakka Milk Collection Centres 934 940 948

(b) TECHNICAL INPUTS DISTRIBUTION

Artificial Insemination

A.I. Per Society

3,18,352 3,52,381 3,93,388

Programancy Diagnosed 2,52,853 2,91,242 1,81,906

Success rate % 79 82 45

Health Care of Animals treated

(cases)

6,56,951 4,74,406 5,51,819

Health care of animal Per Societies 61512 44089 51094

Sales of (MT) Sumul Dairy (Feed) 1,40,839 1,50,385 1,63,256

Per Societies (MT) 13187 13976 15116

Source : Annual Reports of the Dairy.

Organizational Performance derived with simple statistical device give a

remarkable observation.

1. Marginal rise in producers societies shows that large no. of villages

of the districts are covered i.e. Sumul has entered the process of

consolidation rather than expansion.

2. Similar is the rise in memberships which is marginal one.

3. Though size of the societies is small as compared to Amul i.e. 213

member per society the collection/procurement per society is 934

Kg per society.

However, Actual performance of production enhancement is

difficult due to serious data gaps. i.e. Bench yields; No. of dairy

animals in milk shed under society holding etc.

4. Technical inputs distribution and enhancement of production is

actual task in which dairy has contributed well for example,

pregnancy ratio of animals after AI is went up to 82% which is

satisfactory.

(II) Business Performance :

The quality of Business performance scene depends upon

available facts from the dairy. Table-4 is constructed in terms of

specific indicators of business progress achieved in last three

years. This Table-4 is stated below.

Table-4

Business Performance of Sumul Dairy

Sr. No.

Indicators 2010-11 2011-12 2012-13

1 Total Turn over 10,87,88,87,371 13,48,28,77,734 15,79,23,70,720

2 % of Income out of

products sales to

farmers

85 86 84

3 Price Paid to Farmers

per Kg Fat

410 485 511

4 % of Management

Cost

3% 2% 3%

5 Net Profit 2,66,38,328 3,10,77,272 3,23,47,885

6 Net Profit Turnover

Ratio

29% 27% 20%

Source : Reports of Sumul Dairy (Surat District Milk Production Co-

operative Union)

Business Performance as depicted in Table-4 provides with some

interesting Facts which are noted below :

1. Total turnover of the Dairy has increased continuously at a rate of

more than 20%.

2. Most of the turnover is due to liquid milk sales in urban market of

Surat city.

3. Net profit turnover ratio is quite higher as much as 29%.

4. Despite inflation, high inputs cost and contracting effective

demand behavior of consumers dairy provided best possible price

to farmers. Within 3 years, it provide competitive price to protect

the real gain by 24%. It is said that Sumul dairy pays highest price

of milk to farmers in Gujarat.

5. The profitable business in favor of producers despite subsidized

inputs to products is largely due to very careful and limited

spending management and Dairy processing and production. This

is well explained in the table bellow which gives an account of

‘ONE RUPEE’ income and its spending.

Table-5

INCOME/EXPENDITURE OF SUMUL DAIRY

Sr. No.

Indicators 2010-11 2011-12 2012-13

1 Income

Milk Sales 76 73 74

Product Sales 16 16 15

Closing Stock 07 10 10

Other Income 01 01 01

2 Expenditure

Milk Purchase 85 86 84

Packing 02 0.02 0.02

Salary/Wages 03 0.02 0.03

Transport 0.02 0.02 0.02

Resource

Development

0.03 0.02 0.02

Electricity Water

Fuel

0.01 0.01 0.01

Processing 0.01 0.01 0.01

Maintenance 0.01 0.01 0.01

Distribution 0.01 0.01 0.01

Depreciation

interest

0.01 0.01 0.01

Bank Commission 0.01 0.01 0.01

Source : Annual Reports of Sumul Dairy

Table-5 : Which presents the Income-Expenditure trend of the Sumul

Dairy for last three years is self explanatory and provides clear evidence

how co-operative dairy is managed in the interest of producer members

as income spending Ratio of 85:15 shows that just by 15% of

expenditure Sumul is doing real business.

It also explains that key input for the diary is raw milk. The cost of

production and productivity of which animal i.e. per litre milk per animal

is the most determining factor of viability of dairy and hence, dairy’s

programmes of Co-operatives development and technical inputs

distribution even at subsidized prices are justified for low cost quality

output at farm level.

3. PERFORMANCE OF VASUDHARA (Valsad District Co-operative Milk

Producers Union)

This district co-operative dairy is just 40 years old as compared to Amul

and Sumul. The milksheds are being backward and Tribal oriented. We

have specially assessed its progress in terms of participation of tribals

and tribal women with this note the following is the picture of Valsad’s

dairy performance.

(A) ORGANIZATIONAL PERFORMANCE :

The specific facts are arranged in a systematic way to depic scenario of

organizational progress. The following Tables-5 and 6 are presented

below.

Table-6

ORGANIZATIONAL PERFORMANCE OF VASUDHARA

Indicators 2010-11 2011-12 2012-13 1981-82 (Inception Period)

Total Functional

Societies

1038 1043 1046 143

Tribal Societies 8 - 965 121

Women Societies 781 822 851 00

Total Milk

Procurement (000 Kg)

138660468 14343644 17566824 2885

From Tribals 80% 80% 159674

(80%)

2164

Average Milk

Procurement (Kg in

Lakh)

2.77 3.20 3.92 4.81

Audit Class A A A A

Crisel Class AA Stable AA Stable AA Stable -

Source : Valsad District Milk Producers Co-operative Society

The tabulated data help us to note the following : -

(i) Valsad Dairy started with just 141 societies. Today it has a

coverage of more than 1046 societies in last three years.

(ii) It is ‘Multi-District’ co-operative union as unlike Kheda and Surat it

covers three districts i.e. Navsari (462 Societies ); Valsad (424

Societies) and Dang (160 Societies).

(iii) The Tribal Co-operative societies and their participation is very

significant. Out of 1,18,340 tribal families it has already covered

76304 families, out of 1046 societies970 societies belong to

Tribals i.e. 86% in facts out of 13 Taluka i.e. Navsari, Jaladpur and

Gandevi. As many as 10 Taluka have no non tribal societies at all it

means they are 100% triabls.

(iv) Tribal area and people are basically resource less with poor

cattle’s mostly cow. To develop co-operative dairy is not as easy

as procurement of milk for Dairy Plant. But increasing average

milk procurement shows that dairy management would be

successful in maximising tribal’s dairying.

(v) The secret of the success lies in the management’s efforts for

every extensive extension programmes. It may be noted that it

runs 8 types of extension programmes under which variety of

programmes are follow which may be noted as follow :

Table – 7

EXTENSION PROGRAMME

Sr. No.

Programmes Name No. of Programmes

1 Artificial Insemination and Animal Development 9

2 Animal Health and Animal Insurance 5

3 Social Security Insurance 5

4 Fertility Improvement Project 1

5 Production Enhancement Programme 3

6 Fodder Development Programmes 11

7 Co-operative Development Programmes 4

8 Society Extension Programmes 11

Source : Annual Reports

Thus, as much as 45 programmes are implemented for Tribal’s

Dairy Development.

(vi) Similarly, Valsad dairy development is very smart to take

advantage of state programmes of Tribal development. It has

taken benefits of Integrated Tribal Development Scheme for all

the three districts and also, is taking advantage of primitive tribal

development. Similarly, Dairy has women dominance hence, it is

successful in taking advantage of SGSY, Self Help Group

Development and Schemes of ‘SWALAMBI GRAMIN NARI’ under

which Micro Finance of Rs. 8404 Lakh is provided to 39,000

women with 85% Recovery.

Thus, organizational Development is well achieved despite of

every adversity.

BUSINESS PERFORMANCE :

Valsad District Co-operative Milk Producer’s Vasudhara Dairy business

has to be assessed with two specific limitations of the dairy. One is the

Tribal character and tribal area where procurement of quality milk was

not easy and secondly market for the liquid milk and products at local

levels was limited. The role of federations in this case becomes vital

when surplus milk was procured in some periods. With this background

we proceed to examine business of the dairy with the help of the

following data and additional facts received from the dairy which

indicates the efficient business.

Table - 8

Business Performance of VASUDHARA Dairy

Sr. No.

Indicator 2010-11 2011-12 2012-13

1 Capacity Utilization of Local Plan

(Valsad)

124 119 95

2 Milk Pouch Leakeage ( %) 0.13 0.13 0.16

3 Turn Over (Ltd) 7237381752 8333223199 9954685702

4 Rs. Per Litre 29.88 (BM) 32.69 35.24 (B/M)

5 Price Paid to Farmers (Per Litre) 18.40 (PLT/C) 21.07 23.02 (CM)

6 Management Cost 19.87 (Mixed) 23.18 25.66 (Mixed)

7 Net Profit Turn Over Ratio 7905898 5146935 7950292

Source : BM : Buffalo Milk; CM : Cow Milk, MM : Mix Milk

(1) Efficiency of The Dairy :

The standard indicator of efficiency of dairy is its capacity

utilization as it is directly impacting on cost of the production. This

dairy achieved not only 100% but also exceeded its capacity at the

local level plant. Hence to meet the demand of Mumbai market

Vasudhara had to install a new Dairy Plant at Boisar.

The major sale of liquid milk involved packing and package though

small but significant. Leakage was just 0.13 to 0.16 which was far

below the norms.

(2) Turnover / Sales :

The dairy had achieved 62% market share. It sells 7.78 crores litre

milk in local markets. It sold ghee (261665 Kgs.); 8.01 Lakh Kgs.

Masti Dahi and Butter (21427) litres in 2012-13 over above, these

traditional products. It had started producing Ice cream in Boisar

and Nagpur. This kind of diversification was meant for disposal of

surplus milk and not aiming profits. It could be noted that ultra

modern high value added products like Butter, Cheese, Milk

Powder etc. were not produced yet turn over (sales) had grown by

9.01% in 2012-13; 8.87% in 2011-12 and 15% in 2010-11.

(3) PRICE PAID TO FARMERS (PRODUCERS) :

Record of price paid to producer was very non-traditional but

more transparent generally. Price paid to farmers was stated in

terms Kg. fat price. Vasudhara dairy had declared this record in

terms of Litreprice and also separate price by quality of milk. It is

reported that in 2010-11 the producers got Rs. 29.88 per litres

while in 2012-13 Rs. 35.24 was paid for Buffalo milk that meant

35% rise in price above normal inflation rate. Similarly, cow milk

was also encouraged by in 2012-13 increasing price from Rs. 18 in

2010 to 23.0 per litre i.e. 28% price rise.

IMPACT OF CO-OPERATIVE DAIRY DEVELOPMENT :

The powerful poor producers centric co-operative dairy

development focused to throw development opportunities to even the

most weakest sections i.e. Tribals and women. They have generated a

very solid Impact on Rural Economy at large and Dairy sector in specific.

However, the process of co-operative dairying by 76% small and

marginal producers is so deep and far reaching that its impact was

regarded as “Socio-Economic Transformation or Revolution” and since it

is through “Milk”. It is popularly known as “White Revolution” like Green

Revolution in Agriculture.

The positive consequences of dairy development under “Anand

Pattern”, Co-operative structure led not only Economic but Social

Impacts including Rural and Human Development. A brief review about

the “Impact” are in the following four areas.

(a) Economic Development

(b) Social Development

(c) Rural Development

(d) Human Development

The present overview, is a quick overview of scenario based on

stake holders perception as well as Annual Reports and some past easily

available studies.

(4) ECONOMIC DEVELOPMENT IMPACTS :

(i) Transformation of dairying and animal husbandry as profitable

marketable business

The dairying and animal husbandry was most ancient economic

activity, allied and agricultural Agriculture was the life of rural

society. All farmers used to have animals but milk and butter was

meant for home consumption and butter milk was never sold but

given to all flush season time. Ghee was produced out of surplus

milk in season as there was no marke. It was mostly consumed by

family though this kind of conservation of surplus into product

was net loss making; Thus, over all natural feeding animal

husbandry was never done by market purchased inputs but

through free farm fodder / common land fodder/Grass and free

labour of women with zero investment and positive output for

family.

This scenario got substantially changed by co-operativisation. As

producers though district dairy provided an opportunity to the

Society to produce unlimited milk with assured market and

remunerative market price to all. This provided incentives to

increase animal size and use of feed and fodder; technical inputs

distributed by district co-operative enhanced the yields and thus,

a NON-VIABLE ANCIENT ANIMAL HUSBANDRY got revolutionized

as powerful market oriented DAIRYING.

Three pronned strategy of milk production enhancement namely,

(a) Artificial Insemination (b) Subsidized cattle feed (c) Subsidized

animal health has definitely improved the productivity per animal

and continuesd emphasis on and availability of technology had

improved quality of milk also.

The market's first approach of the co-operative had provided

urban market centres through milk tanks, cooling stations and

better roads. Links between rural producers and urban consumers

developed. As a result, producers started getting remunerative

price while consumers could get adequate supply with reasonable

price. Powerful diversification designed and developed by district

dairy took care of surplus milk in flush seasons. Thus farmers were

able to get their value added with assured market for all the

seasons and producer got remunerative prices irrespective of their

position, size of sales, distance etc. This has not only done

“Economic Miracle” but for the first time farmers realized that

there is ample opportunity for development and they too can

develop with loyalty to co-operative societies. Unfortunately,

dairies did not release yield, and cost , data, otherwise, better and

actual scenario could have developed. However, there are

research studies which have shown that in co-operative area,

production and productivity are higher with less cost as compared

to controlled (Non Co-operative Areas).

The Amul pattern co-operative dairies were established in 13

districts covering 27 to 30 lakh farmers. It covered more than 71-

75% villages of the state out of 58,85,981 rural families. 27 lakh

families are directly commenced with dairying, while 13 lakh

family are indirectly involved in it for their livelihood. Gujarat

livestock structure has substantially changed, low yielding Deshi

cows are declining but cross bred cows number is increasing,

number of buffaloes has continued to increase. Datas have shown

that yield rates achieved by cross bred cows was best of all.

Farmers followed this pattern i.e. indigenous cow milk

productivity had increased yields from 2.355 Kg per day in 1983-

84 to 3.48 Kg in 2007-08. Within the same period, cross bred had

yielded rise from 6.79 to 8.23 Kg and in case of buffaloes, It had

increased for 3.5 Kg per day to 4.38. Very slow rise in yield calls for

Rapid Actions to promote better production Gujarat is 5th in milk

production of India and as its per capita availability has improved

from 237 to 386 grams per day.

(ii) SOCIAL DEVELOPMENT :

Rural society is very caste rigid and slow in mobility. With very low

level of status of women, Co-operative dairy development led

social transformation. This could have happened due to three

factors.

1) Co-operative society is open for all ‘caste’ members. By rule, any

entry of any producer is undeniable.

2) All the members were ‘equal’ beneficiaries of the society.

Societies could not reject milk of Harijans or pay less price simply

because they were harijans. Equal participation by sale and equal

remunerative price was undeniable to any person.

3) No privilege was given to any caste or position in co-operative

dairies. All had to be in queue and get their money income in

specific ways applicable to all i.e. price per Kg by Fat.

4) Women are the main occupants of dairying so they started

earning milk income directly and their command on the family

also increased as got empowered to use the income. This gave a

complete new status to women. The family life of producers

improved, many tribals stopped drinking and beating their wives

etc. Women got participation in crucial decision making in family.

All these ‘changes’ took place due to the impact of dairy Co-

operatives.

(iii) RURAL DEVELOPMENT :

Co-operative Dairy Development was India’s largest Rural

Development programmes thanks to late Dr. V. Kurien who had

been instrumental in transforming liver of 15 million farmers

across the country. He was able to leverage an initial investment

of Rs. 1300 Crores into regular annual income of Rs. 200,000

Crores to farmers of India.

Co-operative Dairy Development had played a Vital Role in “Rural

Development directly and indirectly. It shall now be seen how it

had played such a positive and successful role.

(A) DIRECT – RURAL DEVELOPMENT IMPACT :

Rural Development is defined in terms of the promotion of

livelihood of the weaker section by ensuring income and

employment. Thus, Rural Development meant promotion of

income through remunerative employment and inclusion of the

weaker sections. A well developed co-operative sector of Gujarat

co-operatives in 15 districts which included our three dairies also

showed how much income got generated. This is reflected in the

following :

Table –9

Income out of Generation Dairying

Sr. No.

Items 1982-83 2002-03 2012-13

1 Price per Kg Procurement of Milk (Rs.) 108 185 486

2 Total Payout to Milk Producers (Rs. Crores) 768 2136 12492

3 Members (No.) NA 23,59,875 31,83,800

4 Society Village (No.) 10,000 11,400 16,914

5 District Co-operative Member Unions (No.) 12 13 15

Source : Annual Report Co-operative Milk Marketing Federation-2012-13

The rural development in terms of Income generation is self

explanatory as almost 17,000 out of 18,000 villages of Gujarat got

regular milk income. 31-32 lakh producer got the income of Rs.

12,492 crores through Gujarat Federation. Within last four years

their remunerative price increased from 68% to 70% higher than

inflation rates. This had reflected in the livelihood of the rural

people. In fact, this had changed the entire face of village and the

living standards were very close to urban area. Their share in the

telecommunication; retailed trade and entertainment etc had

increased which also included International travels as evident

from Air Flight company offices in Anand.

Employment in Rural sector was created by various ways. Dairying

was labour intensive and hence a good number of work hours

were needed for various activities of dairying. Dairy plant itself

affected indirect employment of skilled and unskilled labourers as

well as small business of chemicals, equipments and auto parts

etc. In fact a study had shown that a 1 Rupee investment in dairy

lead to 76 Rs. worth of employment. The nature of dairy related

employment had provided solution to seasonal unemployment.

The dairy development is Inclusive development, as smallest

farmer also could participate with one /two animals and in fact

78% producers members had 1 - 2 animals only. Relatively equal

benefits were ensured subject to that larger no. of animal holder

may get larger income due to great milk sales to societies. Thus,

co-operative development not only ensured rural development,

but also provided an evidence of most powerful institutional

instrument to participate in market for all. An increase in non-

agricultural development was also seen.

(B) CO-OPERATIVE DAIRY AS RURAL DEVELOPMENT AGENCY :

One of the recent changes in dairy Co-operatives was their direct

participation in Rural Development Programmes of the state. We

have seen that in case of all the three districts dairy Co-operatives

have participated in rural development programmes. This kind of

participation is briefly illustrated below :

(A) Amul Dairy :

Amul Dairy is central Agency for

(a) Intensive Cattle Development Programmes of State

(1) SGSY District Programme of Dairy Animal Programme

(2) Adarsh Dairy Farm Scheme

(3) Tree Plantation (8 Lakh)

(4) NGO – Tribhuvan Das Foundation for Health of Producers

(5) Bio-Gas Plants

(B) Sumul Dairy :

(I) Integrated Dairy Development Programme of Rs. 60/- Crores

(II) Integrated Tribal Development Department

(III) Wormy Compost (Bio – Agriculture)

(IV) Bio-Gas Project

(V) Rural Sanitation Project

(VI) Plastic Surgery Projects

(VII) Tree Plantation Project

(C) Valsad - Vasudhara Dairy :

‘Vasudhara’ had concentrated on Tribal and Women Development

and had participated in various programmes under “Total

Extension” Schemes. These programmes were as follows:

(I) Swawlambi Gramin Nari Scheme

(II) Self Help Group Development Project

(III) Vermi Compost Schemes

(IV) Biogas Plants

(V) Low-cost Sanitation

(VI) Low cost Women and Children Health Programme of UNICEF

(VII) Integrated Primitive Tribal Development

(VIII) Rain Water Storage Tanks Project of WASMO

(IX) Model Animal Sheds

(X) Integrated Dairy Development Programmes

(XI) Tree Plantation

(Almost Rs. 18 Crores was received by the dairy under tribal

development. A special Rural Development Foundation (Public) Trust in

the name of “Tribhuvan Das Foundation” for the more intensive Rural

Development Programmes.

Hence it can be said that Dairies were doing a wonderful work for

the Rural Development.

(4) HUMAN DEVELOPMENT :

Human Development was generally assessed in terms of

educational and health status. Educational level included capacity

building apart from formal education. Health status was seen in terms of

the health of pregnant women, Infants Nutritional status of children /

women, infant mortality rates sex ratio etc. While, we have no firm

evidence of the human development status of the villages under dairy

Co-operatives, efforts and programmes executed by the dairy Co-

operatives do help us to believe that there must have been positive

Human development in the dairy Co-operatives.

(1) Amul Dairy – Kheda District :

(A) Education :

- No Direct Programme of Formal Education Promotion

- Capacity Building and Skill Building Programmes for variety of vital

component of Human development since 6 decades these include

- Co-operative Development

- Milk Business Management

- Quality Management

- Leadership Development

- Advanced Training to employees in India and abroad for

management

(B) Health :

- An increased milk income made possible to improve milk

consumption also which is source of nutrition for poor households

comparative study has shown per capita.

- Milk consumption is better and greater in case of co-operative

area as compared to Non co-operative Area.

- Very historical step is taken by the dairy by establishing Tribuvan

Das Foundation which is an NGO focusing on health and education

promotion of the member of the dairy co-operatives.

- Kheda District was ranked 14th in 1991 and 12th in 2004 in inter

district comparison of Human Development.

(2) SUMUL :

(I) Education :

Sumul also don’t offer any direct intervention in formal education

but attemps to improve skill of the producers by providing training

and capacity building in the relevant areas such as (a)Co-operative

development programmes (b) Internal consultant development

programmes (c) Quality Management Programmes (d) Leadership

Programmes. Sometimes Board members and management

participated in IRMA workshop and National/ International Dairy

seminar organized by Indian Dairy Associations.

(II) Health Care :

While there was are a lot of concern for cattle health care, but not

much for the producers, Of late some subsidized plastic surgery

project had started in collaboration with charitable trust. To

improve health of children, subsidized milk is provided in

Anganwadi Health child and mother competition are organized to

increase the Awareness of child care etc.

Like Amul, Sumul has no systematic NGO to promote education

and health in their milk sheds. Surat District ranked 5th in 1991

and 9th in 2004.

(III) VALSAD – VASUDHARA :

Unlike its women and rural development programme Vasudhara

also had no large intervention of promoting health and education

of its producers except some casual programmes. These

programmes included co-operative development training; Self

Help Group development programmes etc. In the area of health

care UNICEF supported health care programme*.

Vasudhara dairy is not engaged in serious Human development

programme. Despite this Navsari ranked 3rd in 1991 and upgraded

to 1s t rank in 2004, Valsad had the top rank constantly, while Dang

was last i.e. 24th and 23rd in the inter district HRD index of 1991-

2004.

Thus, despite considerable scope and competence and

accessibility and organizational set up dairies did not bother to

undertake human development related intervention and villages

are left on their own in this inadequacy removal.

6. CONCLUDING NOTES :

Our overviews of the Co-operatives Dairy Development through

three districts Co-operatives help us to understand the

appreciable achievements as well as certain areas of concern

which may become road block either to slower down the growth

or reduce its growth.

The major achievements of these dairies may be briefly stated

which are significantly different in their character and age of

foundation

MAJOR ACHIEVEMENTS :

1. All the dairies have achieved reasonable growth measured in

terms of turnover.

2. It could also protect producers by paying continuously high price

of procurement and helped preserving real benefits against

inflation.

3. The management cost is less than 5% in case of all three dairies

and within limits of prescribed norms.

4. The project mode in management has paid against traditional co-

operative management

5. Modernization in the area of information, communication and

even energy is remarkable.

6. Amul made history of highest diversification; Sumul made history

of use of technology at dairy farm level and Vasudhara made a

history of development through tribals and women without

secured adequate local market.

7. Rural development related programmes of Vasudhara, SGSY

Programmes of Amul and energy conservation programm of

Sumul deserved special attention.

8. ‘Quality’ consciousness, quality management and quality

certification from independent agencies in case of all the dairies

had shown strength even to contest with international markets.

9. Co-operative Development Programmes and training has certainly

increased loyalty of producers with clear understanding and

hence, this well understanding commitment to co-operative

producers society shut the doors of procurement from their milk

shed and thus, privates will have no chance to enter the dairy

industry at least in Gujarat.

10. Finally, As we have shown in our “Impact” Analysis. The co-

operativesociety villages must be different than non- co-operative

(Control) villages. It is proved beyond doubt by the research

studies that co-operative milk producers have got better income,

employment, livelihood and greater social harmony with women

empowerment along with greater chances of improving health

and educational level leading to great ranking in human

development.

MAJOR AREA OF CONCERN :

1. District co-operative union reports were good documents

reporting their working. However to make the documents more

useful and transparent the data on cost of production of milk

should be published along with price paid to producers. This will

help in justifying the increasing consumer price.

Similarly, A lot of production enhancement activities were

undertaken but reports are silent on their consequences. What is

an extend of ‘Milk yields’ was increased and at what cost? It was

not known to us then it is most likely that we may not have a

correct idea of actual performance in production enhancement.

2. Just District level ‘Dairy Plans’ have been viable by its best

utilization (nearly 100%) Similarly, at farm level also, we need to

make milk animal holding viable with least cost of inputs and high

level of output.

3. Rapid Co-operative Development in early periods of 1970-80-90’s

was due to leadership of Patel-Kurien under whom co-operative

principles and values are strictly followed, where farmers were

loyal to society and managers (Including Kurien) believed that

farmers were their masters; members also left politics outside the

doors of the societies and union and federation.Has this scenario

remained same today? Increasing politization has started

defeating co-operative spirit and values. Since co-operatives are

the source of strength of small and tiny producers to compete the

rivals, the very existence of the co-operative dairies will depend

on the retaining and promoting Co-operative principles and values

in the practice.

4. Review of the Vasudhara dairy specifically shows that there was

indiscriminative policy of collection of milk from the members by

the federation which compels the dairy to go for less profitable

alternatives and its network of co-operative society is the most

powerful changer of rural society.

5. The relation between dairy development and rural development

are unbreakable. In fact, Co-operative dairies could come out as

the largest ‘Peoples’ programme of rural development. A

remarkable work is done by dairies; However, it needs to be

better organized in terms of independent NGO on the line of

Tribuvandas Foundation of Amul Dairy. Like Vasudhara dairy there

is strong linkages with government rural development department

and other lined department to secure funds and enlarge the

activities for the better living of rural commodities. ‘PURA’ is also

one where dairies could participate and reduce the urban life

attraction among rural youth. A blue print of intervention for

Rural Development could be prepared under the leadership of

state federation of district milk producers unions.

6. Finally, on the lines of Rural Development by direct intervention,

in rural schools, colleges and farmers educational institutions and

health care. Dairy Societies could play a powerful role in improving

the quantum and quality of education and health which was not

only source of human capital but instrument of real economic

development. In any case the co-operative dairy development left

a impression of positive powerful changer for much better rural

life among their producers and demonstrating to the rest a path of

development.

Sumul Dairy

Amul Dairy at Anand, Kheda.

Sumul at Surat.