Collective Action in Indian Dairy Industry: A Unique Model

Abstract:

The case study is about the collective action model adopted by the actors in the Indian Dairy industry, and how it contributed to the success of the industry. Started in 1970 by National Dairy Development Board (NDDB), the 'Operation Flood' was one of the world's largest rural development initiatives aimed at increasing milk production and the income of dairy farmers. It was instrumental in the development of the Indian Dairy Industry as it organized dairy farmers into cooperatives, introduced new technologies to help them increase milk production and ensured a stable milk supply to urban and rural consumers. More than a decade after the end of the Operation Flood (1996), the dairy cooperative network continues to thrive.

The case analyses the co-operative business model and its execution. The initiative linked rural dairy cooperatives in India with major cities through a chain of milk production, procurement, processing, and marketing units. Called as the milk grid, the model established the Indian dairy industry as an organized sector with efficient supply chains from production to consumption. The network of village dairy cooperatives, district and regional cooperative unions, and state marketing federations collectively contributed to the project. The case focuses on the collective action of interest groups such as farmers and co-operatives in making the initiative successful. The model linked rural dairy producers to urban consumers through dairy cooperatives, trucking networks, chilling plants and processing plants. By linking production to consumption, the program motivated dairy producers and others involved in the supply chain to invest and increase their earnings from dairying. The case studies the collective action model which was widely credited with promoting commercialization among farmers through the use of production increasing tech¬nologies and its positive effect on income, employment and nutrition position of milk producing households. The case also discusses the issues and challenges faced by cooperative network going forward. This case is aimed at MBA/MS level students as part of the General Management /Strategic Management curriculum. The case will help the students: 1) Study the collective action model adopted by the Indian dairy industry; 2) Explore concepts such as organizing, value chain, supply chain, business model and implementation; 3) Examine the growth of the Indian dairy industry; 4) Understand the need for dairy cooperatives; 5) Study the Operation Flood model and its applications; 6) Understand the issues and challenges faced by the dairy sector in India going forward. The teaching note does not have an analysis of the case.

Issues:

» Study the collective action model adopted by the Indian dairy industry
» Explore concepts such as organizing, value chain, supply chain, business model and implementation
» Examine the growth of the Indian dairy industry
» Understand the need for dairy cooperatives
» Study the Operation Flood model and its applications
» Understand the issues and challenges faced by the dairy sector in India going forward.

Contents:

Keywords:

Collective action model, Indian Dairy industry, Cooperative network, Business model, Inclusive business model, Strategy in action, Value chain, Supply chain, Organizing, Organizational Structure, Strategic planning, Marketing, Sustainability, 'National Milk Grid', 'The Anand Pattern', 'Amul Model', 'Operation Flood' NDDB, rural development, cooperative business model, cooperatives, milk grid, marketing federation, village dairy cooperatives, regional cooperative unions, empowerment

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Case Studies in Business Strategy Volume VI Case Study Volumes Collection	Business Strategy Workbooks Collection