Abstract

The National Dairy Development Board (NDDB) is at a crossroads in 2004. Thanks to 'Operation Flood', India, a milk deficit country in the early 1960s, has become the largest producer of milk in the world by 1999. Millions of small milk producers in more than 74,000 villages have been brought into the fold of the dairy co-operative movement to supply hygienic and fair priced milk to almost 300 million consumers. NDDB has also extended the co-operative movement to edible oil and horticulture. Despite its success, NDDB faces several concerns. Many of the state dairy milk federations are making losses. NDDB's decision to form joint ventures with individual state dairy federations has also been controversial and has triggered sharp differences between the leadership of Amul and NDDB. The failure of the joint venture with the Kerala Co- operative milk marketing federation has only added fuel to the fire. Meanwhile, NDDB's initiatives in marketing frozen fruits, vegetables, edible oils and milk products after initial positive response from the market, have also not succeeded. NDDB realises that it needs another success mantra like 'Operation Flood' to retain the central role it has played over the years in India's co-operative movement.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Kurien, NDDB, National Dairy Development Board, Amul, MILMA, PFI, public financial institution, Safal, Milk, Operation Flood, Dhara, Co-operative, Dairy, Amrita Patel, India's milk production, Marketing milk, Anand Moel of co-operatives