PERFORMANCE OF SELECTED PRIMARY MILK PRODUCERS COOPERATIVE SOCIETY IN TAMIL NADU

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1 PERFORMANCE OF SELECTED PRIMARY MILK PRODUCERS COOPERATIVE SOCIETY IN TAMIL NADU Mrs. B. S. Vanetha Assistant Professor of Cooperation, Vellalar College for Women, Erode, Tamilnadu, India. Mrs. A. Menakadevi Assistant Professor of Cooperation, Vellalar College for Women, Erode, Tamilnadu, India. ABSTRACT Over the last five decades, significant improvements have taken place in the healthcare mainly with respect to addressing the issues of malnourishment and undernourishment amongst children. This is mainly due to ensuring availability of the right quantity and quality of milk both for the rural households as well as the urban households. Also a great contribution to the GDP of the country has come from the milk dairy cooperative sector. Milk and milk products are perhaps one of the very few consumption items common in all cultures around the world. Indian dairy sector contributes the large share in agricultural gross domestic products. Presently there are around 70,000 village dairy cooperatives across the country. The co-operative societies are federated into 170 district milk producers unions, which in turn have 22-state cooperative dairy federation. Milk production gives employment to more than 72 million dairy farmers. In terms of total production, India is the leading producer of milk in the world followed by United State of America. Keywords: Dairy, Cooperatives, Tamilnadu, Performance, Milk Producers INTRODUCTION Maximum People of thickly populated India live in villages. Majority of them are involved in agriculture. The cattle animal is correlated with agriculture in India as the old method of cultivation is still vogue here. Rearing of cattle animal is also an additional source of income of the villagers in our country. We get from our ancient history that the domistication of the cow and the buffalo dates back to nearly 4000 years. Scriptures of India refer to the wealth through the word Godhan. Maximum proportion of cows and buffaloes of the world are seen in India. But India produces only five percent of the total quantity of milk produced in the whole world. This amount is too inadequate to meet the country s demand. The supply of milk in some parts of India is higher than the local demand. On the other hand, supply of milk in the rest of the country as well as in urban areas is much lower than the demand. DAIRY COOPERATIVE SOCIETIES Most of the milk produced in the country is from the rural areas by small farmers who keep one or two animals. They have to face a number of problems in selling milk profitably such as inadequate transport facilities, non-availability of technical advice and absence of proper processing etc. These problems can be solved to a great extent by the formation of Vol. 2, No. 4, Oct. - Dec.,

2 Dairy-Co-operatives. Co-operatives can reduce the number of intermediaries in the trade and societies will be in a position to supply milk to consumers, at reasonable price. Any assistance the producers may require for increasing production or improving the breed of cattle can be given more easily and effectively through a cooperative organization. A cooperative milk producers society provides a number of services to the dairy farmers such as provision of credit for purchase of milch animals, or meeting initial investment cost, provides technical advice to the farmers for improving the breed and feed of cattle, making available suitable. HISTORY OF DAIRY CO-OPERATIVES IN INDIA The Co-operative movement started in India in the last decade of the 19th Century with two objects in view, i.e. to protect the farmers from the hands of the private money lenders and to improve their economic condition. Madras province was the birth-place of this movement. With the setting up of an Agricultural Co-operative Banks there the movement took root in our Land and slowly gained strength. However, the growth of Co-operative movement in India during British rule was very slow and haphazard one. In most of the cases, the provincial governments took the lead. The foreign ruler had only made some committees or framed a few rules and regulations. But they did not take any wide-ranging programme to spread the movement all over the country. The golden era of Co-operative movement began after India had won freedom. Within two decades of independence the membership of primary societies had increased four times while the share capital and working capital increased 23 and 31 times respectively. The history of Dairy Development Movement in India is a new one. During the pre-independence period this movement was limited to a few pockets of Calcutta, Madras, Bangalore and Gujarat. The most notable of this venture was Kaira District Co-operative Milk Producers Union Limited of Anand, Gujarat. But after independence the National Government took great initiative in setting up new Dairy Cooperatives in many parts of the country. The National Dairy Development Board (NDDB) was set up to make the ambitious project a success. NDDB AN OVERVIEW In 1965, National Dairy Development Board (N.D.D.B) was set up with the object of meeting the increasing demand of milk specially in urban areas as well as developing the rural economy through the enhancement of the milk production of the country. The Milkman of India, the Father of White Revolution in India and the Architect of NDDB. This one an individual Dr. Varghese Kurien has impacted millions of lives in India and put the name of AMUL on the World Map of Milk Dairy Cooperatives. Milk has extraordinary nutritional value and is called a balanced diet. Milk and milk products are one of those very few items commonly consumed across all sections of people around the world. It is interesting to trace the history of organized milk production and the effect it had on the life of the people in various countries. OBJECTIVES / FUNCTIONS OF DAIRY CO-OPERATIVES 1. Arrange for collection center and distribution network. Vol. 2, No. 4, Oct. - Dec.,

3 2. Arrange for processing of milk into milk products. 3. Arrange for selling of milk through their own depot and through licensed vendors. 4. Distribute cattle feed to the milk producers and also provide veterinary services. 5. Provide technical services to member farmers, like artificial insemination, veterinary facilities and supply of quality seeds and root slips for production of green fodder. 6. Protect the hybrid quality of animals. 7. Organize dairy industry on a system of rural milk production and urban marketing. 8. Conduct Research and Development activities to improve the productivity rate. 9. Provide financial assistance to poor farmers to purchase cattle. 10. Encourage co-operation and self-respect among the members. 11. Prepare and undertake necessary projects for dairy development in the area. MILK-MARKETING CHANNELS IN INDIA Unorganized Sector Producer Organized Sector Milk Vendor Government Village Coops Private Wholesaler District Level Milk Producer Union Retailer Retailer Village Leve Milk Producers Cooperative Society DAIRY COOPERATIVES IN TAMIL NADU The Milk Products of Aavin are popular among consumers. Product manufacturing takes place in Dairies run by District Unions and Federation. The product range includes Ghee, Cooking butter, Table butter, Skimmed Milk Powder, Badam Mix Powder and UHT (Ultra High Temperature)Milk varieties, Sugared khova, Unsugared khova, Dates khova, Mysorepa, Paneer, Curd, Pro-biotic curd, Yoghurt, Butter milk, Lassi, Ice cream varieties, Gulab jamun and Flavoured Milk. Aavin milk chocolate has been recently launched. These products are being marketed through Federation and Union parlours. Vol. 2, No. 4, Oct. - Dec.,

4 MILK PROCUREMENT Table 1 Milk procurement by the District unions S. No. Year Average Milk Procurement Per day PERFORMANCE OF SELECTED PRIMARY MILK PRODUCERS COOPERATIVE SOCIETY IN TAMIL NADU This study is made in the 2 primary milk producers cooperative society in Erode District, Tamil Nadu, India namely Thottipalayam Milk Producers Cooperative Society Limited and Pudunallagoundampatty Milk Producers Cooperative Society Limited., S. NO YEAR MEMBERSHIP (No. of members) WORKING CAPITAL (Rs. in lakhs) SALES POSITION (Rs. in lakhs) NET PROFIT (Rs. in lakhs) TMPCS PMPCS TMPCS PMPCS TMPCS PMPCS TMPCS PMPCS The above table shows the membership, working capital, sales and net profit position of the Thottipalayam Milk Producers Cooperative Society Limited and Pudunallagoundampatty Milk Producers Cooperative Society Limited., from to It shows fluctuating trend in the above said period. SERVICE TO MILK CONSUMERS Liquid Milk and Milk Products are sold throughout the State under the brand Aavin. Three liquid Milk Dairies and one Product Dairy are functioning in Chennai metro to process and supply milk and milk products.all the Metro Dairies are certified under International Organization for Standardization (ISO) and Hazard Analysis and Critical Control Point (HACCP) for ensuring quality which authenticates the safety and quality of the milk and milk products sold by Aavin. Metro Dairies have also obtained ISO (International Organization for Standardization) certification for compliance of environmental management system. A 24 hour Consumer Care and Support Cell functions at the Corporate Office Nandanam, in order to obtain feedback from consumers and to redress their grievances equipped with a Toll free No milk depots and 69 milk parlours supply quality milk to consumers. Monthly milk cards after 29 obtaining advance payment are issued to the consumers for sustained supply. Vol. 2, No. 4, Oct. - Dec.,

5 DAIRY COOPERATIVES AND ECONOMIC DEVELOPMENT Before the cooperative movement began, the dairy industry in the Kaira District was being exploited by middlemen who supplied milk to the consumer. It began as a response to this exploitation and put an end to it. It grew mainly because it responded to the farmers financial needs as well as service. It has thrived because it is owned by farmers who have a stake in its success. And because it has been managed by capable professionals and strengthened by dedicated scientists, technologists and workers, it has forged ahead. Now a day in India, there are 75,000 dairy co-operative societies, spread all over the country with a membership of 10 million. The farmer in the village is now assured of a better future thanks to these cooperatives. Recently one of the European Embassies in Delhi requested us for information on the five biggest "companies" in the dairy business. The first three are in the cooperative sector The Gujarat Co-operative Milk Marketing Federation (GCMMF). The Kaira District Cooperative Milk Producers' Union Limited and The Mehsana District Cooperative Milk Producers' Union. The Kaira District Cooperative is the second best in the country. It helped to create GCMMF, the apex body of all cooperatives in Gujarat. PROBLEMS OF DAIRY CO-OPERATIVES 1. Supply of inputs through the network of dairy co-operatives is not satisfactory. 2. Irregular payments to milk producers have frustrated them. 3. Balance cattle feed and fodder seed is not available regularly, which compelled farmers to use traditional feed. 4. Frozen semen technology to ensure greater productivity is used popularly. 5. Reach and effectiveness of animal health cover is still unlimited. 6. Framers induction programme is given low priority. 7. Dairy co-operatives are facing cutthroat competition with milk vendors. 8. Lack of proper coordination with district level authorities. BENEFITS OF DAIRY CO-OPERATIVES FOR MEMBERS Excludable Benefits: 1. Reliable access to the market for the milk produced. 2. Field services, insurance and market information. 3. Knowledge about the industry costs, returns and practices in the industry. 4. Access to value added margin from dairy processing activities. 5. Representation into legislative process at low cost. 6. Negotiation of overdue premiums. Non-Excludable Benefits: 1. Balancing milk supplies among dairies. 2. Transporting milk to locations where needed. 3. Providing milk to deficit areas seasonally. 4. Affecting policies and trade practices in favour of milk producers. 5. Providing leadership for effective legislative process. Vol. 2, No. 4, Oct. - Dec.,

6 CONCLUSION The dairy cooperative movement in India and several other countries has proved to be a great success towards changing the lives of the citizens and bringing about a total revolution in this sector. Automation has taken place in a big way to take care of the quality. There is lot of scope for further technological innovations in this sector. REFERENCES 1. Veerakumar G. (2009), Problems and Prospects of Milk co-operatives in Kerala, The Cooperator, 46(90, March 2009, NCUI, New Delhi, Selvamani and Celine Rani (2008), Dairy Co-operatives and Development of Rura Women in the Era of Globalisation, Indian Co-operative review, New Delhi, 46(20, October 2008, Soundarapandian M and Srividya Gayathri K (2008), Karukkampalyam Milk Producers Co operative Society- A Case study, Indian Co-operative review, 46(1), July 2008, New Delhi, Ramanujam.K.N and Periaswamy N (2008), Development of Dairy Co-operatives, Indian Co-operative review, 45(30, January 2008, New Delhi, Jayakumari. J.J (2008), Dairy Co-operatives- Crafting India s Economic Development, Tamilnadu Journal of Co-operation, 8(3), July 2008, Vol. 2, No. 4, Oct. - Dec.,