impact of co-operative dairy development on rural economy of india
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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.
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