Collective Action in Indian Dairy Industry: A Unique Model

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Case Details:

Case Code : BSTR395
Case Length : 19 Pages
Period : 2000-2011
Pub Date : 2011
Teaching Note :Not Available
Organization : National Dairy Development Board
Industry : Agri-business; Dairy
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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In 2011, India emerged as the world's largest milk producer with an estimated 112.5 million tonnes of milk production recorded since 2010.i The National Dairy Development Board (NDDB),1 sought to usher in another White Revolution by launching the First Phase of the National Dairy Plan to double milk production in India and meet the projected demand for milk production of 180 million tonnes by 2020-21. Despite India being a leading milk producer, it was feared that if production did not grow faster, it would fail to keep pace with future demand. India's transformation into a milk surplus country was largely due to the collective action model implemented by NDDB as part of Operation Flood (1970-1996).

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Acknowledged globally as one of the most successful rural development programs, Operation Flood transformed the country's dairy sector into a demand driven and profitable business proposition. This model had a vertically integrated three-tiered structure with the dairy cooperative societies at the village level federated under a milk union at the district level and a federation of member unions at the state level. While the village cooperatives procured milk from the producers, the district unions transported and processed the milk products.

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1] Established in 1965, NDDB is a national level body involved in promoting, financing, and supporting the dairy development program in India. It seeks to strengthen farmer cooperatives and support national policies that favor the growth of such institutions.

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