GCMMF's Cooperative Structure
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Case Code: BSTR205 Case Length: 15 Pages Period: 1991-2006 Pub Date: 2006 Teaching Note: Not Available |
Price: Rs.300 Organization: GCMMF, AMUL, NDDB Industry: Dairy Products Countries: India Themes: - |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
The Anand Pattern
The Anand Pattern had a three-tier structure. At the bottom of the three-tier structure were VCSs. These were associated with milk unions at the district. The district unions collectively formed a state level federation. The VCS procured milk from the members; district unions transported and processed the milk products, while the role of the federation was that of marketing, strategic planning and investment.
The milk from the farmers was managed by professionals, while the facilities to process the milk were owned by the farmers themselves.
Village Cooperative Society
The VCS was formed by primary producers under the guidance of a supervisor from the district union. On an average, each VCS had 200 members. The main task of the society was to collect milk from the members and make payments based on the quality and quantity of the produce. A farmer could become a member of the cooperative by committing himself/herself to supply a certain quantity of milk...
GCMMF's Organizaton Structure
GCMMF was a lean organization. At the helm of affairs was the Managing Director (MD) operating from Anand. The MD was assisted by four General Managers (GM) and four Assistant General Managers (AGM).
The four GMs were responsible for marketing of dairy products, human resources development & marketing (new businesses), finance and quality assurance. The four AGMs looked after functions of marketing, systems, co-operative services and technical projects. GCMMF divided the country into five zones, each headed by a zonal manager, who was responsible for sales of all the AMUL products within that zone. The zonal managers reported to the MD and also to the GM/AGM functionally. Under the zonal manager were branch managers. Each branch had three product managers who reported to the branch manager. The product managers in each branch were assisted by sales officers and field sales persons...
The NDDB-GCMMF Tussle
While GCMMF laid the foundation for the development of dairy industry in India, the Indian Government on its part made efforts to support the dairy industry in the country by encouraging the establishment of dairy cooperative societies. The government came up with the Delhi Milk Scheme in 1959 and several state governments also introduced similar schemes during the 1960s. Most of these schemes were not successful because of the middlemen and contractors, who exploited the Government-run plants owing to the perishable nature of milk. When the milk supply was insufficient, the Government purchased imported milk powder which made things worse for dairy farmers. As milk supplies to urban areas could not be maintained in the summer months, state governments started rationing the sale of milk...
The Road Ahead
Several sections of the media and the analysts opined that GCMMF had been unfair with Kurien. They said that Kurien's fears of NDDB taking the cooperatives away from the farmers appeared to be coming true. Kurien feared that Mother Dairy might take undue advantage of the cooperative retail chain to push its interests forward. He felt that sooner or later the government would divest its stake in the joint ventures, and the dairy farmer would be the ultimate loser. According to Kurien, "There is an inherent contradiction that the government-owned NDDB, through its subsidiaries, is getting into fresh business activities at a time when the Centre is considering further divestment in all existing areas including those in the dairy sector such as the Delhi Milk Scheme." On the contrary, some analysts were of the view that Kurien opposed the joint venture between NDDB and state federations as he feared that stronger regional brands would make the market highly competitive for AMUL....
Exhibits
Exhibit I: The Anand Pattern
Exhibit II: Functions of Village Cooperative Societies, District Union and State Federation
Exhibit III: Organization Structure of GCMMF
Exhibit IV: NDDB and Operation Flood
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