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05-10-2012, 12:56 PM
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World scenario

India plays an important role in dairy sector. This is of crucial important to the country. The country is the worlds largest milk producer. According for more than 13% of world total milk production and it is the world’s largest consumer of dairy product, consuming almost 100% of its own milk production estimated around 74 million tons in 1998.
Currently, India is non-entity in the international dairy market place. Only small quantities of dairy products are exported to Bangladesh, Shrilanka, Nigeria, the Middle East and very recently to the USA. The WTO provides India with the opportunity to sell their products in the other part of world. Specially to the 150 million non resident Indians all over the world. An ample export potential exists for unique traditional milk products such as ethnic sweets and foods like shrikhand, rasgulla, & paneer. India’s largest dairy company GCMMF recently started exporting ghee, butter, and shrukhand under the amul brand to the USA. This product will soon be available in Canada also.
The India dairy sector’s challenges include the need for improvement in animal feeding, vet services, milk production, collection and transport as well as the need for advances in corporate technology and marketing.
Further liberalization seems to be necessary to make private and foreign investment in dairy sector more attractive. The Indian dairy industry will need this additional investment to keep pace with the fast increasing demands for dairy products. Export opportunities are certainly positive but every liter of milk exported with creates need for further expansion in dairy industries unless and important is growing considerably. On the other hand during the coming WTO-round more pressure will be put on the Indian government to improve the market access for dairy products.



A man takes a muster seeds and sows it in his field. It is the smallest of all seeds, but when it grows up, it has the biggest of all plants. It becomes a tree, so that birds comes and make their nest in its shredded branches.”
This approach of the growing and nesting birds the spirit of co-operation between the natures, the person who shows the seed is the true essence of a co-operative.
“co-operation amongst competitive” is the fundamental principal. One is reminded of the story where the father tells his five sons to break small wood stick individually and then trying toe breaks them when they are join. The sticks do not break.

Co-operative movement in dairy industry:

Milk is perhaps the only agriculture product that a farmer is required to sell twice a day every day of the year. In view to its extremely limited keeping quality, the farmer has also got to sell it within few hours of production , otherwise it becomes a total loss. In India as farming is carried on very small it is not possible for a farmer himself to market what little milk he produce. The production being small it does not become worthwhile for him to sell the milk to the consumer himself. Inevitably, therefore draying so developed that middle man entrench themselves in the milk producing areas to buy the milk from the farmer transport it to the consuming centers and to sell in to the consumer. We are all aware of the tremendous exploitation that the middle man indulges in when marketing agricultural commodities.
Even product like wheat, rice, tobacco, the exploitation of the farmer by middle men is very important but these are products that are needed to be marketed only once a year. These are also products, which the farmer can stock for some time in order to obtain a good market.


We mean by it that the farmer in a particular area or village should become members of co-operative society and that they should over their milk to their society for marketing. If it is found that the quantum of milk collected by the society is very small, and this is usually the case, then a number of those societies federate themselves into union. The union then owns and operates a dairy plant, which will process this milk and market it. In the co-operative system, therefore the farmer will find himself supplying milk to a dairy a bit of whom he owns, in the running of which he say and in the profit of which he has a share. The farmer begins to be receptive to new ideas, which would help him increase the quantity and improve the quality of the milk he produces.
The farmers’ co-operative, sensititive as it must be to the need of the farmer then being to provide technical knowhow and other facilities like veterinary aid, artificial insemination, better feeds. In order to increase the productivity at the farmer’s end. His beings to get into an ever-widening sphere of increased production.


The co-operative society was stated about 26years ago in indices while in the foreign country (Britain). It was established in 1844. i.e. 146 years ago.
In Gujarat the first milk producer union was stated in kheda district were inspire and guided by the sardar patel and the kheda district milk producer union ltd. The co-operative based industry was started in 1946 at Anand name “AMUL DAIRY”.
Following the footstep of “Amul Dairy” the milk producer union was started at Surat in 1951. It is called as surat in “Sumal Dairy”. Then in 1957-58, the other co-operative milk producer union was established in Baroda called “Baroda dairy” in 1960. “Dhanasura Dairy” was started in Mahesana. In Banaskantha district, the “Banas Dairy” was established in 1966.
Dr. V.Kurien the General Manager of Amul Dairy talked to Mr. Bhalabhai Patel a prominent of dairy industry is Sabarkantha District and with great task efforts on the Mr.Bhalubhai Patel the foundation Chairman Mr. C.C. Desai,Mr. Gopalbhai Patel and Mr. Ambabhai Patel. The Sabarkantha district Co-operative Milk producers’ union was established on 27th November 1964 . It called as “Sabar Dairy”. It has got its name as it is situated in the Sabarkantha district first 19 societies registered their names on 20th October 1965. 5100 liters milk was collected and supplied for Ahmedabad.
Ahmedabad municipal dairy could not accept more quantity of milk during the seasons.
For the first seven years the milk union kept in on supplying raw milk to Ahmedabad municipal dairy and could not expand its activities due lack of financial sources. Therefore, in 1970 the milk union submitted proposal to Indian Dairy Corporation for establishment of multiproductdairy plant in Sabarkantha district.
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