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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'Operation Flood' Floods India

According to reports, by the end of 1995, approximately Rs 20 billion was invested under the three phases of Operation Flood. NDDB was reported to have earned an incremental return of over Rs 400 billion on this investment. By this time, India's milk production had increased to over 60 mts from 20 mts in 1970; the per capita availability of milk which had declined to 107 grams per day between 1951 and 1970, increased to over 187 grams per day despite the rapid growth in population during this period...

Building on the Success of Operation Flood

Since the late 1990s, NDDB has primarily focused on building on the success of Operation Flood. Its major objectives have been to increase milk and milk product exports; to spread the co-operative movement to other domestic agricultural products; and to help other developing countries replicate the success of the dairy development program in their own countries. So, the organization has been providing extensive support to all co-operative unions in India to help them perform successfully. It has also been dovetailing its activities with those of other government agencies for dairy and agro development. NDDB has been assisting the unions in recruiting and training personnel and offering technical support in the design and selection of dairy equipment and construction of dairy plants...

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Future of Dairy Co-Operative Movement in India

However, Operation Flood failed to replicate the success of Amul in states other than Gujarat. Analysts cited reasons, such as political interference, bureaucratic apathy, lack of a professional approach, and a lack of knowledge among the co-operative board and committee members of how to run co-operatives, for this failure. Commenting on this, Kurien said, "Unless it is truly run as a cooperative, it cannot be a success. If it is not run for economic reasons and the chairman and the board is not elected from among those who produce the milk, it will never succeed..."

The Stalemate Continues

Even by mid-2003, there were no signs of a truce between GCMMF and NDDB. Kurien still vehemently opposed NDDB's strategy while Patel supported it with equal intensity. She said that the proposal was aimed at benefiting co-operatives, by providing a professional marketing network to help them survive competition. "Their marketing is in a huge mess. All we are doing is partnering them to see that they do well," she said. By this time, NDDB had already entered into JVs with the state milk federations of Andhra Pradesh and Kerala, which marketed the Vijaya and Milma brands respectively. As per the JV agreement, these two brands were to be sold under the Mother Dairy brand...

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Exhibit I: Top Milk Producers in the World (1998)
Exhibit II: Salient Features of the Anand Model
Exhibit III: The Anand Model's Structure
Exhibit IV: Socio-Economic Benefits Reaped by Kheda District by Implementing the Anand Model
Exhibit V: Co-Operative Initiatives of NDDB in Other Industry Sectors
Exhibit VI: Dairy Development in India Under Co-Operative Sector (By States) as on March 31, 2000
Exhibit VII: Production and Per Capita Availability of Milk in India
Exhibit VIII: Major State-Level Co-Operative Milk Federations in India
Exhibit IX: A Brief Note on GCMMF

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