GCMMF's Cooperative Structure
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Case Code: BSTR205 Case Length: 15 Pages Period: 1991-2006 Pub Date: 2006 Teaching Note: Not Available |
Price: Rs.300 Organization: GCMMF, AMUL, NDDB Industry: Dairy Products Countries: India Themes: - |
Abstract Case Intro 1 Case Intro 2 Excerpts
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.
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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