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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Excerpts Contd...


Though the Operation Flood model brought in a series of changes in the dairy sector there were several challenges ahead for the sector. Improving milk production and quality, infrastructure support, and marketing were some of the challenges faced by the dairy sector in India. Factors such as shrinking grazing areas leading to shortage of fodder resources, increasing feed prices (Rs.7000 per tonne from Rs.4500 per tonne in 2009), and traditional practices of production in rural areas affected milk production and widened the demand supply gap. As of 2011, there was a 15 million tonne shortfall in fodder availability...

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Way Forward

Over the years, India had emerged as the world's largest milk producer and it was growing at a faster rate than the world average. However, Amrita Patel (Patel), chairman of NDDB, said that while milk production in India had been able to meet demand by growing at 3.5 million tonnes a year (or 4%), it would now have to grow at 6% to keep up with the demand. The Economic Survey, in early 2011, raised concerns on the stiff increase in milk prices and declared that unless production increased to 180 million tonnes a year over the next decade, India would need to import milk...


Exhibit I: Top 10 Milk Producing Countries in 2009(in Tonnes)
Exhibit II: Constraints Faced by the Dairy Industry
Exhibit III: The Anand Pattern
Exhibit IV: Structure of the Operation Flood Model
Exhibit V-a: Milk Production in India
Exhibit V-b: Estimates of Milk Production - Statewise
Exhibit VI: Growth of Dairy Cooperatives during 2009-10*

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