Three Tier Structure of Dairy Co-operatives

Co-operatives in India are working at three stages viz. production processing and marketing. At the primary level in villages itself, the willing farmers join together to form a Milk Producers Co-operative Society. As already mentioned they form a society popularly known as Village Milk Producers Co-operative Society (VMPCS) as per the agreed principles of milk cooperatives. The secretary of the society appointed by elected representatives runs the day to day affairs of the society viz. collects the milk, tests for its quality, dispatches the milk to the Union/chilling centers, prepares the bill, draws the payment and distribute it to the producers. In addition to this he supplies the seeds and other inputs as available and required from time to time.

The second stage is the milk union at the district level (Milk District Co-operative Union). The membership of the Union consists of all the registered milk producers societies in the district or any other co-operative institution, which undertakes to supply to the Union commodities belonging to its members. The Union/chilling center collects the milk, which is processed/converted into products at the plant owned by the Union. The union at district level arranges the various facilities which other wise a society cannot arrange viz. (i) supplies the milk testing kit and the consumables required for testing, (ii) makes payment for milk procured by the society, (iii) supplies inputs i.e. fodder seed etc. for the producers, (iv) supplies milk products and concentrate feed for sale in the villages and (v) arranges for supply of semen for insemination and first aid to the sick animals in the villages and host of other facilities.

All the unions in the state form a co-operative federation at the state level (State Dairy Development Co-operative Federation). Federation appoints the Chief Executive officer to every union, who administers and runs the day to day activities of the Union, but is supervised by the Board of Directors of the Union. The Federation in turns supplies all the inputs to the Union, markets the produce for all the Unions,collects the money and gives it to the Union of onward transmission to the societies.

In other words it is the three tire system i.e. village level, district level and finally the state level.

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