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Where Do Dairy Cooperatives Stand Amidst Financial Crisis in India’s Cooperative Societies?

As of yet, several reports have highlighted that brands like Amul (GCMMF) and Mother Dairy have been leading in this sector with significant revenue and dominating the domestic packaged dairy market. 

Apart from national or multi-state cooperatives, some regional cooperatives have, over the period of time, obtained huge recognition. Nandini, under Karnataka Milk Federation, for instance, is the largest dairy cooperative in South India. Similarly, Tamil Nadu's Aavin and Saras, a state-owned dairy cooperative network in Rajasthan, are a few other names. 

Punjab's Verka is also a popular name, not just supplying in Punjab but neighbouring northern states as well. Kerala's Milma and Sudha in Bihar are also major regional players. 

However, a report by Grain highlights how, after a long-time dominance of the cooperatives, the private companies and premium dairy brands are now commanding a nearly 50% split in organised milk handling.

The major reasons cited for their growth include brands focusing heavily on high-margin items like cheese, paneer, probiotic drinks, and yoghurt, which are seeing soaring consumer demand.

Post the deregulation in the 1990s, it has been observed that they have also pressured cooperative margins by intensifying competition for raw milk and largely neglecting rural farmer support services, Grain highlights.

Read the rest at Local Samosa

 

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