National Dairy Development Board: A Successful Indian Dairy Co-operative Movement|Business Strategy|Case Study|Case Studies

National Dairy Development Board: A Successful Indian Dairy Co-operative Movement

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Case Details:

Case Code : BSTR088
Case Length : 22 Pages
Period : 1940 - 1999
Organization : FAO, NDDB, GCMMF
Pub Date : 2004
Teaching Note :Not Available
Countries : India
Industry : Food & Agriculture

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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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Formation of NDDB

While Amul laid the foundation for a systematic approach to dairy development in India, through the early 1950s, the government also began its efforts to modernize the dairy industry. As a part of this, it made modernization of the industry a priority under the first Five-Year Plan of India in 1951. Under this, the government set itself the goal of providing hygienic milk to the growing urban population. To achieve this goal, the government encouraged establishment of dairy co-operative societies and also organized 'milk schemes' in all major cities across the country. It also implemented the Intensive Cattle Development Project (ICDP), which focused on artificial insemination and veterinary services and the Small Farmer Development Agencies (SFDA) which offered cattle farmers (milk producers), financial aid to enhance milk production. In 1959, the government introduced the 'Delhi Milk Scheme' to cater to the milk requirements of the national capital, Delhi. Under this scheme, government milk plants collected milk at chilling centers through middlemen...

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Operation Flood

In 1970, the government approved the 'Operation Flood' program proposed by Kurien. However, as per the statutes under which NDDB was registered, it was not authorized to handle government funds.

To overcome this hurdle, the government established the Indian Dairy Corporation (IDC), a public sector company. IDC was made responsible for receiving donated commodities (for Operation Flood), for undertaking quality tests, looking after storage and transfer of those commodities to dairy plants for sale and then receiving the sale proceeds. In effect, IDC operated as a finance and promotion entity, while NDDB functioned as a technical support entity to the 'Operation Flood' program. Operation Flood aimed to create a 'flood of milk' across the country, to augment rural incomes and to empower milk producers so that they would become self-dependent and earn profits from marketing their produce (See Table I for the program's objectives)...

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