Sector Detail

Punjab Dairy Cluster Profile

Punjab, with about 21 large dairy processing plants, recorded a milk production of 11.86 million tonnes in 2017-18. This was equal to 6.72% of the country’s total milk production (NDDB, 2019).

Punjab State Cooperative Milk Producers’ Federation Limited (MILKFED) is the major cooperative working in the state1.VERKA is a flagship brand of MILKFED and came into being in 1973 when MILKFED was mandated for milk procurement, quality processing of milk & its products and marketing of these products. “VERKA” was christened after the name of the place where the first plant was setup in Amritsar.

Currently, VERKA sources milk from over 3,50,000 members of around 6,300 village milk producers’ cooperative societies. These village level cooperatives work under 11 district milk producers’ unions with 9 milk plants having a consolidated milk handling capacity of around 20,00,000 litres per day. Each VERKA product is the manifestation of natural goodness unlocked by adopting state-of-the-art technology. More than 1,000 Automotive Milk Collection Stations are deployed in the societies for efficiency and transparency in milk procurement.

Apart from milk, the other dairy products like infant milk food, instant milk mix, skim milk powder, ice-cream, paneer, sweetened condensed milk, dairy whitener and butter are also produced.
The details of the various milk cooperative unions currently operating under the VERKA network are as below,

Apart from these units, Milkfed also has two milk chilling centres at Ferozpur & Faridkot. They are operating two state-of-the-art cattle feed plants at Khanna & Gurdaspur respectively.

The dairy sector in Punjab works on the ‘Anand Model’ for its development. Fresh milk is procured from the milk producers twice a day through village level societies directly without the assistance of any middleman.

These village cooperatives unite at regional level to form regional cooperatives Milk Producers’ Unions and further these Regional Unions federate at the state level to form State Federation.

Excluding the cooperative societies, there are 4 joint sector and 46 private sector dairy plants operating in Punjab. They are not associated with the cooperatives and hence buy milk directly from local producers. The largest private player in the state is Nestle India. The turnover of the dairy sector in Punjab is estimated to be about Rs 20,000 crores. The sector provides direct and indirect employment for to more than 6,50,000 people .

Gujarat Dairy Cluster Profile

Gujarat is among the largest milk producer in the country. In 2017-18, the state produced 13.56 million tons of milk and was responsible for 7.52% of the country’s total production (NDDB, 2019). Gujarat has played an important role in making the country one of the largest milk producers in the world, resulting from the movement started on the eve of independence in 1947, when the rural milk producers of Gujarat stood against their exploitation and formed a cooperative to take over the control of producing, processing and marketing of milk and milk products. This cooperative movement was later institutionalized in the form of 'Operation Flood' and it helped transform India from a milk deficit nation to one of the largest milk producers in the world.

In Gujarat, most districts have cooperatives and their milk processing capacity ranges from 1 lakh litre per day to 35 lakh litre per day. All these cooperatives are members of Gujarat Cooperative Milk Marketing Federation (GCMMF) and GCCMMF markets the products under the brand name 'Amul'. The Gujarat Model, established under Kaira Milk Union Limited, was subsequently extended to the whole country.

Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) is India’s largest food product marketing organization, with annual turnover (2018-19) of USD 4.8 billion. Its daily milk procurement is 23 million litre, from 18,700 village milk cooperative societies, 18 member unions covering 33 districts and 3.6 million milk producer members (GCMMF, 2019). The following table highlights the key performance indicators for GCMMF:

The dairy sector is also an important contributor to the state’s GDP and milk contributes to 22% of the Agricultural GDP of Gujarat. It is also one of the biggest sectors for supporting livelihood in the state, as more than 40% of households in Gujarat are engaged in the dairy and animal husbandry sector. (GLPCL, 2019).

The Amul Model for dairy is a three-tiered structure, with the dairy cooperative societies at the village level, federated under a milk union at district level and a federation of member unions at state level. It is highlighted in the following figure:

There are 18 milk unions in Gujarat and they produce various milk and value-added products, which are marketed across India and several foreign countries. The following are the 18 milk unions in Gujarat:

These milk unions produce more than 30 brand products for Amul, such as processed milk, butter, cheese, curd, ghee, paneer (cottage cheese), milk powders, ice cream, flavored milk, shrikhand, butter milk, sweets, etc.

Haryana Dairy Cluster Profile

Haryana is one of the most progressive states of Republic of India. In the domain of dairy development, it is well known for its productive milch cattle particularly the ‘Murrah’ Buffaloes and Haryana Cows. The economy of the state is predominantly based on agriculture. People rear and breed cattle as a subsidairy occupation. The state is one among the largest milk producer in the country and in 2017-18 the state produced 9.81 million tons of milk and it was responsible for 5.56% of country’s production (NDDB, Milk Production in India, 2019).

The overall growth of the milk production in the state over the past 5 years is as shown in the figure below,

The dairy cluster in Haryana is a combination of both public & private units. Of the total production, Haryana Dairy Development Cooperative Federation (HDDCF) accounts for nearly 90% of the total milk production

The HDDCF registered under Haryana Co-operative Societies Act came into existence on April 1,1977. Its authorized share capital is Rs.4000 lacs. It was established with the primary aim to promote economic interests of the milk producers of Haryana particularly those belonging to weaker sections of the village community by procuring and processing milk into milk products and marketing thereof by itself or through its unions. In furtherance of the above objects, the Federation undertakes various activities for sales promotion of VITA Brand for the Milk Unions. It also extends technical guidance to the Unions in all spheres of personnel, technical, marketing and financial management as well as makes them quality conscious, through use of modern methods of laboratory testing of various products.

The operation of the federation is based on the Anand Pattern. Dairy Cooperatives in Haryana works as per the following three tier system: - i) Milk Producers Cooperative Societies at village level ii) Milk Unions at District level iii) State Dairy Federation at state level

Under the Federation, there are six milk unions in operation. The following table shows the list of district milk unions, their production capacities & the various milk products they produce

Apart from the dairies under HDDCF, three other cooperatives of Amul also operate in Haryana to serve the markets of Delhi – NCR. These include, :

• ™ Banaskantha Dist Coop Milk Producers’ Union Ltd (Banas Dairy)
• Sabarkantha Dist Coop Milk Producers’ Union Ltd (Sabar Dairy)
• Mehsana Dist Coop Milk Producers’ Union Ltd (Dudhmansagar Dairy)

Kerala Dairy Cluster Profile

Kerala is one among the largest milk producing state in India, in 2017-18 the milk production in state was around 2.576 million tons and was responsible for 1.54% of the country’s total production (NDDB, 2019). The graph below shows the increase of milk production during the last 7 years:

The dairy sector in Kerala has evolved over the time and current shape & form of the dairy sector in Kerala started with establishment of Kerala Co-operative Milk Marketing Federation (KCMMF, MILMA) during the Operation Flood Program in 1980 by ‘National Dairy Development Board’. The KCMMF was established as a three-tiered organization.

The farmer memberships that stood at 45,000 during take over from the erstwhile Kerala Livestock Development and Milk Marketing Board during 1983 has grown to over 9.77 lakhs through 3,315 milk cooperatives till February 2019. These primary societies are grouped under three Regional Co-operative Milk Producers’ Unions – Thiruvananthapuram Cooperative Milk Producers Union (TRCMPU) region, Ernakulam Cooperative Milk Producers Union (ERCMPU) and Malabar Cooperative Milk Producers Union region. At the apex level KCMMF functions from the headquarters at Thiruvananthapuram. From the different units managed directly by KCMMF and the various units under regional unions MILMA produces and distributes pasteurized Vitamin – A enriched milk and various milk-based products as well as mango drink throughout the state. MILMA has been instrumental in achieving the national goal of self-sufficiency in milk production in the state.

The dairy sector in Kerala has a three-tiered structure, at the village level the Village Milk Cooperative Societies have the local milk producers as its members. These Village Cooperatives unite at Regional level to form Regional Cooperative Milk Producers’ Unions and further these Regional Unions federate at the State level to form State Federation.

Under leadership of KCMMF, milk procurement has shown a phenomenal growth from 52,000 litres per day during 1983 to over 12.75 lakh litres per day in 2018-19. The average milk sales per day for the 2018-19 was 12.98 lakh litres. It is highlighted in the following figure:

The average daily milk procurement is 9.96 lakh litres from 3,206 village milk cooperative societies, three member unions covering 14 districts, and 9.24 lakh milk producer members. There are 14 dairies under the membership of KCMMF which are scattered over Kerala. These milk unions produce more than 30 brand products for MILMA, such as processed milk, curd, ice cream, ghee, flavored milk, butter, cheese, curd, ghee, paneer (cottage cheese), milk powders, and milk-based sweets and confectionery, etc.

The distribution of major dairies in Kerala is shown below:

Maharashtra Dairy Cluster Profile

In 2018, the total milk production in Maharashtra reached a volume of more than 10 billion litres, growing at a CAGR of 3.82% during 2011-2018. Maharashtra has played an important role in making the country one of the largest milk producers in the world. The state currently represents one of the largest dairy markets in India. Maharashtra contributes 6.29% of the nation’s overall milk production. The milk production in Maharashtra mainly consists of cow milk and buffalo milk. Cow milk dominates the total milk production, accounting for around 58% of the total regional milk production. According to the IMARC group report, the Maharashtra dairy market is further expected to grow at a CAGR of more than 16% during 2019-2024.

Cooperative Status

MRSDMM (Maharashtra Rajya Sahakari Dudh Mahasangh Maryadit) was established on 09th June 1967. At present, MRSDMM has 85 member unions (25 District + 60 Taluka) with more than 24,000 primary milk societies and 25 lakh milk producers. MRSDMM is an apex federation of district/taluka milk unions established to implement the Operation Flood program in Maharashtra. Presently, Mahanand is the largest dairy in Mumbai and one of the largest dairies in Maharashtra.

Mahanand Dairy is a unit run by the MRSDMM. Mahanand Dairy was established on 18th August 1983 with a milk handling capacity of 4 LLPD. The capacity was expanded up to 6 LLPD during the year 1997-98. At present, Mahanand Dairy distributes 300,000 litres of milk per day in Mumbai with the help of one packing depot strategically located at Navi Mumbai. The total sale of milk under Mahanand brand name in the state is 4 LLPD, including the sale of milk in Konkan, Pune & Nagpur region.

Madhya Pradesh Dairy Cluster Profile

Madhya Pradesh is one among the large milk producing state in India, in 2017-18 the milk production in state was around 15.911 million tones and was responsible for 8.5% of the country’s total production (NDDB, 2019). The graph below shows the increase of milk production during the last 7 years:

The dairy sector in Madhya Pradesh has evolved over the time and current shape & form of the dairy sector in Madhya Pradesh started with establishment of Madhya Pradesh Cooperative Dairy Federation (MPCDF). The MPCDF was established as a three-tiered organization.

MP State Cooperative Dairy Federation (MPCDF) is the apex level organization in the system of famous ‘Anand’ pattern dairy cooperative organization in Madhya Pradesh. At the first level there are 6897 functional Dairy Cooperative Society (DCSs) and at the second level there are 6 cooperative milk union. ™

The infrastructure available with the milk union under cooperative sector in the state can be summarized as hereunder:

• 6 Milk Unions
• ™6897 Functional Dairy Cooperative Societies
• 603 Bulk Milk Coolers of 9.88 LLPD capacity
• 59 Chilling Centre of 6.87 LLPD capacity
• 6 Main Dairy Plants of 13.70 LLPD capacity
• ™10 Mini Dairy Plants of 2.53 LLPD Capacity
• ™2 Powder Plants 20 MTPD capacity
• 5 Cattle feed plants of 550 MTPD capacity

For consumers, pasteurized liquid milk of various qualities like Full Cream, Standard, Toned, Double Toned, Cow, Chah, Chai Special and Skim in sachets are marketed in the nearby cities and towns by all the individual Milk Unions (Bhopal, Indore, Ujjain, Gwalior, Jabalpur & Sagar) under the brand name of ‘Sanchi’. They also manufacture a whole range of milk products like Ghee, Table Butter, Shrikhand, Butter Milk, Flavoured Milk (in bottle and sachets), Sweet Curd, Plain Curd, Peda, Plain & Salted Butter Milk, Paneer, Chhena Kheer, Probiotic Curd, Nariyal Barfi, Milk Cake, Rasgulla, Gulab Jamun, Gulab Jamun Mix, Coffee Mix, etc., to cater to their local market .

During 2018-19 average milk production of milk union was 10.11 lakh kg per day and average packet sale was 7.40 lakh litres per day.

The dairy sector in Madhya Pradesh has a three-tiered structure, at the village level the Village Milk Co-operative Societies have the local milk producers as its members. These Village Cooperatives unite at Regional level to form Regional Co-operative Milk Producers’ Unions and further these Regional Unions federate at the State level to form Apex Federation.

Odisha Dairy Cluster Profile

Odisha is considered as one of the emerging state of India by means of incredible agriculture and allied opportunity. Approximately it’s having land area about 1, 55, 820 square km in the company of thirty districts having a meagre population of 4.6 crores. The economy of the state by and large depends upon agriculture and related subsectors which provides approximately 70 percent of gross state domestic product. The Dairy sector is also an important contributor to State’s Gross Domestic Product (GDP) and milk contributes to 22% to the Agricultural GDP of Odisha and is also one of the biggest sectors for supporting livelihood in the state as more than 40% of house hold in the State are engaged in Dairy and animal husbandry sector. Nevertheless, this sector provides employment and sustenance, directly and indirectly to more than 60 percent of state’s total work force. In Odisha, around 80 percent of rural households depend on livestock and draw about 30 percent of their annual income is from livestock. About 85 percent of livestock are owned by the landless, marginal and small landholding families. Though India ranks first in the world in milk Production, Odisha contributes less than 2% of the total production of milk. The below chart shows the milk production figures in Odisha in the last decade.

The growth and development of Dairy sector in Odisha is reasonably significant in character and is evident from the above chart. The empirical data reveals that milk production (in ‘000 MT) in Odisha during the period 2008-09 to 2018-19 shows positive result i.e. 1598.65 to2311.00, with a CAGR of 3.75%.

Generally, in Odisha most of the milk production is of the milk procured by the formal sector is usually sold in plastic pouches subsequent to pasteurization, homogenization and standardization to 3 percent fat and 8.5 percent Solid Not Fat or 4 percent fat and 9 percent solid non-fats under refrigerated conditions as ‘toned’ milk or cow milk respectively. In this context the role of Dairy cooperative plays an influential agent in strengthening the Dairy sector which will boost the milk production. Furthermore, the cooperative systems are the impending catalysts for justifying the transaction cost, motivating entry into market and promoting growth of milk market in rural communities by paying farmers a remunerative, high price.

Odisha was also not so far lagging in the implementation of various programmes undertaken by the central authority. The Operation Flood-I programme was started in Phulnakhara, Cuttack in 1970. This was a small scheme of collection and of 6000 litres/day from nearby societies of Puri and Cuttack and sold them after processing. The Operation Flood -II programme was started in 1981 which had covered four districts i.e. Cuttack, Puri, Dhenkanal and Bhubaneswar.

The growth of Dairy activities in the State plays as influential role for up-gradation of socioeconomic status of the rural poor. In particular, the state like Odisha signifies the momentous growth in Dairy sector with the help of Odisha State Co-operative Milk Producers Federation Ltd. (OMFED).

Andhra Pradesh & Telengana Cluster Profile

Andhra Pradesh(AP) and Telangana is the third largest milk producing cluster in India, in 2017- 18. The combined milk production in AP and Telangana was around 18.690 million tones and was responsible for 10.59 % of the country’s total production (NDDB, 2019). The Figure 3: Annual milk production in Andhra Pradesh and Telangana over the last few years shows the increase of milk production during the last 7 years in AP and Telangana cluster.

Andhra Pradesh and Telangana cluster has been the 3rd largest milk producer in the country after Uttar Pradesh and Rajasthan. Major contribution is from Andhra Pradesh contributing 73.43% of the total milk production from both states. The CAGR of Andhra Pradesh and Telangana cluster milk production is 6.43%.

The key co-operative dairies unions in the cluster are Andhra Pradesh Dairy development co-operative Federation Limited (APDDCF), Telangana State dairy development co-operative Federation Limited(TSDDCF), Mulukanoor Women’s Mutually Aided Milk Producers Cooperative Union, The Krishna District milk producers mutually aided co-operative union and The Kurnool District Milk Producers Mutually Aided co-operative Union Limited.

TSDDCF seeks to usher in an era of rural property in Telangana State through organized commercial dairying based on the principals of cooperatives. To transform itself into an instrument and vehicle for development of village based dairy sector integrating the milk producers at the village level with the consumer in the urban markets and metropolitan markets. TSDDCF should facilitate seam less linkage of the milk producer with the milk consumer. The milk producers should own and manage the systems and institutions of procurement, processing and marketing.

History of APDDCF and TSDDCF

1960-1972- Integrated Milk Project - IMP

• Started dairying in the organized sector
• Emerged as dependable major subsiDairy occupation to Agriculture

1972-1974-Dairy Development Department

• Emerged as single agency under Organized Sector
• Expanded dairying in the State;
• Developed dairy infrastructure

1974-1981-A.P Dairy Development Corporation Ltd. Under Indian Companies Act 1956

• APDDC Ltd became functional from 2-4-1974 with authorized share capital of Rs. 5 Crore & asset value of Rs. 7.17 Crore
• Built strong marketing network under popular VIJAYA brand (next to Amul)

1981- A.P Dairy Dev. Coop. Federation Ltd. Under APCS Act 1964

• Implemented 3-tier cooperative structure

5th-May-2016-The Telangana State Dairy Development Cooperative Federation Ltd is registered.

TamilNadu Dairy Cluster Profile

Tamil Nadu is one of the frontline States in milk production with 206 lakh litres per day1 25 Lakh litres per day (LLPD) is retained for household consumption. About 51% of total milk production i.e. 105 LLPD is procured through unorganized sector and 37% i.e. 76 LLPD is procured through organized sector like Dairy cooperatives and private sector dairies.

Tamil Nadu Cooperative Milk Producers’ Federation (TCMPF) was formed in 1981 and operates with 3 tier structure, Primary Milk Producers Cooperative societies (PMCS) at Village level, Milk Producers Union at District level and Federation at State/apex level. The Federation is marketing the milk and milk products in the brand name of ‘Aavin’. The major roles of the Federation apart from marketing in Chennai Metro are to guide and monitor activities like procurement, marketing, milk handling, infrastructure creation, quality control and implementation of various schemes.

The share of State Dairy cooperative (TCMPF) in overall milk production is around 18.50%. Under the dairy cooperative ambit, there are 19 district cooperatives milk producers Union, 12,585 village level primary Milk Producers Cooperative Societies (MPCS) having 20.30 lakh members. Tamil Nadu stands fourth among the State dairy cooperatives with a daily average milk procurement of 33.23 lakh litres.The average milk procurement has increased by 13% during 2018-2019 compared to 2017-2018.

TCMPF produces range of milk products under the Aavin brand like sweets, milk powder, beverages, Ice creams, fermented products, Coagulated products & others etc. Aavin is also exporting milk products to International Countries like Singapore, Hong Kong & Qatar5.

Primary Milk Producers’ Cooperative Societies

The milk producers’ society means, a registered society with the principal object of arranging for, and undertaking the purchase of milk produced by its members and storing, processing and marketing such milk and its by-products. There are 12,585 Primary Milk Cooperative Societies at village level, out of which 2,075 are all Women Cooperative Milk Producers’ Societies. These primary milk cooperative societies are procuring milk daily from their members and selling around 4.5 LLPD to meet out the local demand. The remaining quantum of milk is being sent to the District Unions and Metro dairies.

District Milk Producers Cooperative Union

There are 19 District Cooperative Milk Producers’ Unions in Tamil Nadu, covering all the revenue districts. The management of DCMPU has been vested with an elected Board, headed by its President. The administrative head of the DCMPU is the General Manager. The unions procure milk from the Milk Producers’ Cooperative Societies (MPCS) process and market it to the consumers. The surplus milk is sent to Chennai Metro Dairies / Feeder Balancing Dairies for sale/conversion. DCMPUs are the implementing agencies for various welfare schemes of the State and Central Governments.

Primary Milk Consumers Cooperative Societies:

Similar to the operations of the MPCS, to protect the interest of the milk consumers, the milk consumer cooperative societies (MCCS) were formed. They receive milk in sachets and milk products from Federation / District Cooperative Milk Producers Unions and supply it to the consumers. There are about 62 Milk Consumer Cooperative Societies functioning across the State.