INFORMATION ABOUT KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION LIMITED, ANAND.
1.1 ABOUT THE COMPANY
1.1.1 History of AMUL
The word
'Amul' is derived from the Sanskrit word ‘Amulya’ which means priceless
or precious.
Founded in 1946,
Amul is managed by the Gujarat Co-operative Milk Marketing Federation Ltd.
(GCMMF), a cooperative organization that currently represents 3.6 million milk
producers across Gujarat.
Amul is symbolized by four hands working together,
representing how individuals collaborate to elevate this union to the top
position in Asia.
Ø The first hand is of farmers,
without whom the organization would not have existed.
Ø The second hand is of
processors, who process the raw material (milk)into finished goods.
Ø The third hand is of the marketer,
without whom the product would not have reached the customers.
Ø The fourth hand is of
customers, without whom the products would have not carried on.
Amul led India's
White Revolution, propelling the country to become the largest producer of milk
and milk products. Tribhuvandas Patel founded Amul with support from Sardar
Vallabhbhai Patel, India's first deputy prime minister.
The Kaira
District Milk Union Limited was established in 1946. Tribhuvandas led the
organization until his passing in the 1970s. In 1949, he approached Dr.
Verghese Kurien and convinced him to join the effort of the White Revolution.
Dr. Verghese Kurien is widely acknowledged as the Founder of Amul.
The Amul
cooperative was formally registered on December 19, 1946, in response to the
exploitation of local milk producers by dealers and agents associated with the
leading dairy of that era, Polson Dairy. Milk prices were arbitrarily set and the government had granted
Polson monopolistic rights to collect milk from dairy farmers in Kaira and
supply it to Mumbai city.
Disturbed by
this mistreatment, the farmers of Kaira sought the counsel of Sardar
Vallabhbhai Patel under the leadership of Tribhuvandas K. Patel. Sardar Patel
suggested forming an organization, known as the Kaira District Co-operative
Milk Producers' Union (KDCMPUL), to supply milk directly to the Bombay Milk
Scheme instead of depending on Polson. He dispatched Morarji Desai to resolve
the farmers' concerns.
In June 1948,
KDCMPUL initiated the pasteurization of milk as part of the 'Bombay Milk
Scheme'. In 1973, under the guidance of Tribhuvandas Patel, Amul marked its
25th Anniversary alongside Morarji Desai, Maniben Patel and Verghese Kurien.
Milk collection
was decentralized because the majority of producers were small-scale farmers
capable of supplying 1–2 liters of milk daily. Cooperatives were established in
each town for this purpose.
Dr. Verghese
Kurien and H.M. Dalaya played pivotal roles in establishing and leading the
cooperative. Dalaya's pioneering achievement in producing skimmed milk powder
from buffalo milk, a world-first and scaling it commercially with Kurien's
support, resulted in the cooperative's first modern dairy in Anand, Gujarat.
This initiative posed competition to several established market participants.
Within a short
period, the cooperative dairy's success extended to neighboring areas of Anand in Gujarat. Consequently,
five unions were established in districts such as Mehsana, Banaskantha, Baroda,
Sabarkantha and Surat, adopting a method often known as the 'Anand model'.
The White Revolution of India started in 1970. In 1973, the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) was established as the central marketing organization for these district cooperatives to unite efforts, broaden market reach, reduce advertising costs, and prevent internal competition. The Kaira Union, which had owned the Amul brand since 1955, transferred its rights to the GCMMF.
Since that time,
GCMMF has grown to become India's largest organization for marketing food
products. It stands as the foremost body of dairy cooperatives in Gujarat,
exclusively managing the marketing of products branded as 'Amul' and 'Sagar'.
On September 30,
2018, Prime Minister Narendra Modi officially opened Amul's chocolate
manufacturing facility located in Mogar, Anand, close to its main headquarters.
1.1.2 Details of AMUL
Table 1.1: Details of AMUL
|
NAME: |
KAIRA DISTRICT
CO-OPERATIVE MILK PRODUCERS’ UNION LIMITED, ANAND. |
|
FORM: |
Co-operative
sector under the Co-operative
Society Act. |
|
REG.OFFICE: |
Kaira
District Co-operative Milk producer’s Union ltd, Anand 3881001. Gujarat,
India. |
|
PROMOTERS: |
(1) Shri Tribhuvandas
Patel (2) Shri Morarji Desai (3) Shri Vallabh Bhai
Patel (4) Dr. Varghese Kurien |
|
AUDITORS: |
Special Auditors
(Milk), Milk Audit Office Anand. |
|
NO. OF VILLAGE
SOCIETIES: |
18,600 |
|
REGISTRATION: |
14th
December 1946. |
1.1.3 The Anand Pattern
Maximising farmer profit and productivity through cooperative effort is the hallmark of the
Anand Pattern.
The Anand
Pattern refers to a cohesive cooperative structure that handles goods marketing, processing and procurement. It empowers producers to determine their
business strategies, utilise advanced production and marketing techniques and
access services that would otherwise be beyond their means or capabilities.
The Anand
Pattern succeeds because it empowers individuals to take responsibility for
their growth by forming cooperatives where professionals report to producers
who elect leaders. Farmers themselves own and oversee essential infrastructure
such as national and state markets, dairy and cattle feed facilities and local
cooperative networks. Over time, Anand Pattern cooperatives have strengthened
the relationship between producers and consumers.
1.1.4 Three-tier structure
Village Society:
In the Anand
Pattern, a Village Dairy Cooperative Society (DCS) is established by milk
producers. Any producer can join the DCS by purchasing a share and agreeing to
exclusively sell their milk to society. Each DCS operates a milk collection
center where members deliver their milk daily. The quality of each member's milk
is assessed and payments are calculated based on the percentage of fat and SNF
(Solid-Not-Fat). At the end of each year, a portion of the DCS's profits is
distributed to members as a patronage bonus, determined by the quantity of milk
supplied.
The District Union:
A District
Cooperative Milk Producers' Union is collectively owned by dairy cooperative
societies. The Union purchases all the milk from these societies, processes it and
markets both fluid milk and dairy products. Most Unions offer various services
and supplies to Dairy Cooperative Societies (DCSs) and their members, including
feed, veterinary care, and artificial insemination to enhance milk production
and sustain cooperative operations. Union personnel are involved in training
and providing advisory services to support DCS leaders and staff.
The State Federation:
The milk producers' unions within a state come together to establish a State Federation, which manages the marketing of fluid milk and products from its member unions. Some federations also engage in feed manufacturing and assist with various other activities of the unions.
1.2 ABOUT THE INDUSTRY
1.2.1 Dairy Industry in the World
In Asia, milk production totaled 446.9 million tonnes in
2023, marking a 2.7 percent increase from the previous year, equivalent to an
additional 11.8 million tonnes. This growth positioned Asia as the source of 46
percent of global milk production, driven primarily by significant expansions
in India and China. Pakistan, Türkiye, Uzbekistan and Kazakhstan also made
noticeable increases in milk output, while Japan and the Republic of Korea
reported notable declines.
In India, milk production increased to 236 million tonnes in 2023, up 2.5 percent from the year before. This growth was fueled by more dairy cows. However, factors like unusual weather delaying winter, fewer calves born due to reduced artificial insemination during COVID-19 in 2020 and challenges such as expensive fodder, lower demand for milk and heat stress slowed down milk production. In China, milk production went up by 6.6 percent in 2023. This rise was driven by higher prices farmers received for milk and supportive government policies that encouraged the growth of dairy farms and milk production in earlier years. Much of the increased milk came from large farms that could afford to transport milk from where it's produced in the north to places where it's consumed and processed in the south. Better productivity, helped by removing less efficient cows, also boosted milk production. In Pakistan, milk production rose to 64.3 million tonnes in 2023, up by 2.8 percent compared to the year before. This increase was supported by more dairy cows, although heavy rains during the monsoon season disrupted production. Türkiye's milk output also rebounded by 2.0 percent to 22 million tonnes in 2023, following two years of decline. This recovery was due to better weather, more animal feed available and improved milk production per cow.
In Japan, milk production fell because of several issues. These included lower profits for farmers due to higher feed costs and the weaker Japanese yen. There were also fewer sales in stores and not enough workers. However, more business in hotels, restaurants and institutions helped balance some of the drop in retail sales. Meanwhile, countries like the Republic of Korea, Syria, Iraq and Thailand also saw significant declines in milk production.
In Europe, milk
production rose slightly by 0.3 percent in 2023, reaching 233.6 million tonnes.
This increase means there was nearly 800,000 tonnes more milk produced compared
to the year before. The growth mainly came from higher production in countries
like Russia, the European Union and Belarus. However, Ukraine and Norway saw
noticeable drops in milk production during the same period.
In Russia, efforts to make production more efficient, such as improving how dairy herds are managed and feeding cows better in big dairy farms, helped increase milk production. Farm mergers also played a big role in making farms more productive, especially the large ones. In the European Union, milk production went up slightly by 0.3 percent in 2023, which is almost half a million tonnes more, after three years of it going down. This increase was mostly because of finding ways to be more productive. Despite fewer dairy cows as less efficient smaller farms closed due to lower profits for producers, milk production in Russia improved due to better weather conditions in 2023, which lowered feed costs somewhat, although they are still high.
In South America, milk production rose to 68 million tonnes in 2023, increasing by 0.7 percent compared to 2022. Brazil, the largest milk producer in the region, along with Peru and Uruguay, drove this growth. In Brazil, milk production rebounded after two years of decline, thanks to steady output during the peak production period from June to December. Similar conditions also supported increased milk output in Peru and Uruguay. By contrast, milk production in Argentina declined due to lower availability of animal feed and a significant devaluation of the national currency, which raised prices for corn and reduced profits for farmers. Government aid programs partly offset these profit losses for affected farmers. In Chile, Colombia and Ecuador, milk output also decreased due to expensive inputs, low prices at the farm level and challenges in production caused by adverse weather conditions.
In Central America and the Caribbean, milk production grew by 1.2 percent to reach 20.3 million tonnes in 2023. This rise was mainly fueled by Mexico, which contributes 70 percent of the region's total output. The increase can be attributed to greater local demand for milk, enhancements in production facilities, the merging of farms and a decrease in feed costs.
In North
America, milk production reached 112.8 million tonnes in 2023, showing a slight
increase of 0.3 percent from the previous year. In the United States, milk
output saw a small rise primarily due to improved yields, even though some
farmers sold off their dairy cows due to lower profits. Meanwhile, in Canada,
milk production also went up thanks to higher yields, supported in part by
better prices at the farm level and stability in the market, which are benefits
of the managed production system.
In Oceania, milk production grew to 29.7 million tonnes in 2023, a slight increase of 0.8 percent from the previous year, driven by recoveries in New Zealand and Australia. New Zealand's output rose by 0.9 per cent to 21.2 million tonnes, thanks to improvements in milk solids per cow and better herd quality, despite fewer cows and smaller herds. Good early-year pasture conditions helped productivity, though adverse weather at times hampered production. Australia saw a 0.5 per cent rebound to 8.5 million tonnes after two years of decline, supported by lower input costs and favourable weather, along with higher global dairy prices and farmgate prices from processors contributing to the increase.
In Africa, milk production totalled 53.8 million tonnes in 2023, staying mostly steady overall, though some countries saw significant changes. Countries like Tanzania and Kenya increased their milk output due to better yields, more cows and favourable weather or lower costs. On the other hand, Egypt and Ethiopia experienced decreases in milk production because of high food prices or currency depreciation, which reduced demand for milk products. Droughts and conflicts also continued to disrupt livestock farming across Africa, affecting traditional ways of raising animals.
1.2.2 Dairy Industry in India
Dairy farming has been a long-standing rural practice in India for centuries. Towards the late 1800s, military dairy farms and cooperative milk unions were set up throughout the country, marking the start of a transition towards semi-commercial dairy operations.
In the past, most families in those countries either had their cow or got milk from wealthy families who shared it with their neighbors. Before the 1850s, milk had to be produced close to where people lived because it spoiled quickly and there weren't good ways to keep it cold or transport it long distances.
India's dairy
sector has experienced rapid growth. During this period, numerous modern milk
plants and dairy product manufacturers have been established. These
organizations have effectively engaged in regular commercial production,
including pasteurized bottled milk, as well as a variety of dairy products from
both Western and Indian traditions.
As India moved into the 20th and 21st centuries, its dairy sector underwent substantial transformation. The establishment of the National Dairy Development Board (NDDB) in 1965 was a crucial milestone. Through initiatives like Operation Flood, the NDDB sought to modernize dairy farming techniques, boost milk output and establish a more structured dairy infrastructure nationwide.
Operation Flood, also referred to as the White Revolution, sparked the creation of dairy cooperatives such as "Amul" in Gujarat and "Nandini" in Karnataka, among others. These cooperatives empowered farmers by improving their access to markets, ensuring fair milk prices and enhancing dairy facilities. Consequently, India achieved the status of the world's top milk producer, surpassing both the United States and European nations.
In recent years,
India's dairy industry has grown larger and more advanced. The country has
introduced modern dairy technologies, including automated milking systems and
state-of-the-art milk processing plants with advanced machinery for packaging
and distribution. These advancements have not only boosted efficiency but also
ensured higher standards of hygiene and product quality.
Statistical data related to milk production in India: -
Table 1.2 Milk production (major states)
|
STATE/UT-WISE
ESTIMATES OF MILK PRODUCTION ('000 TONNES) |
|
|
State |
2022-23 |
|
Uttar Pradesh |
36,242 |
|
Rajasthan |
33,307 |
|
Madhya Pradesh |
20,122 |
|
Gujarat |
17,281 |
|
Andhra Pradesh |
15,448 |
|
Maharashtra |
15,042 |
|
Punjab |
14,301 |
|
Karnataka |
12,829 |
|
Bihar |
12,503 |
|
Haryana |
11,966 |
For more information :https://www.amuldairy.com/
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