GCMMF's Cooperative Structure

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Case Details:

Case Code : BSTR205
Case Length : 15 Pages
Pages Period : 1991-2006
Organization : GCMMF, AMUL, NDDB
Pub Date : 2006
Teaching Note :Not Available
Countries : India
Industry : Dairy Products

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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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End of an Era Contd...

The dairy cooperative movement made farmers independent and enabled them to manage their affairs without any interference from the government or bureaucracy. The Anand Pattern was replicated in several federations across India, helping India become the largest milk producer in the world. Kurien explained the phenomenon, "You must understand the importance of what we have been able to achieve. We are the world's largest producer of milk. With the help of lakhs of farmers, we created a global enterprise."7

Background Note

In the 1940s, farmers in Gujarat had few options - they had to sell their milk either to private milk contractors or to the single private dairy - Polson's Dairy. Polson's used to collect, chill and supply milk to the Bombay Milk Scheme, which supplied milk in Bombay and some cities in Gujarat. Polson's Dairy used its monopoly position to determine the quality and quantity of milk the farmers supplied and paid them very low prices. In 1945, encouraged by the nationalist leader Sardar Vallabhbhai Patel, Tribhuvandas Patel (Patel), a farmer and social worker in Kaira District, began organizing dairy farmers into cooperatives, which could sell the milk directly to the Bombay Milk Scheme.

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Patel encouraged the milk producers to form cooperatives to combat the monopoly of Polson's Dairy. The dairy farmers then went a step further and decided to form their own union to deal directly with the final buyer. In 1946, the milk producers' union, Kaira District Cooperative Milk Producers' Union Ltd.

(KDCMPUL) was registered with Patel as its first chairman. It began with two village cooperatives which collected 250 liters of milk every day. KDCMPUL functioned at the district level; at the village level there were cooperative societies called Village Cooperative Society (VCS).

By June 1948, KDCMPUL started pasteurizing8 milk so that it could be supplied to Bombay (Mumbai). By then, several other milk producers became a part of the cooperative and the milk collection in Kaira increased to 5,000 liters a day. In 1949, a mechanical engineer, Kurien, who was working at the Dairy Research Institute, Anand, began helping the KDCMPUL in the utilization of chilling and pasteurizing equipment...

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7] Sandeep Bamzai, "Maybe, I Still Have Several Aces Up My Sleeve," Hindustan Times, March 20, 2006.

8] Pasteurization, named after its inventor, French scientist Louis Pasteur, is the process of heating food to high temperatures so as to kill harmful organisms such as bacteria, viruses, protozoa, molds and yeast. After pasteurization, the milk is kept in refrigerators to prevent growth of bacteria.


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