Dairy Co-operatives Objectives and Functions

Objectives / Functions of Dairy Co-operatives
1. Arrange for collection center and distribution network.
2. Arrange for processing of milk into milk products.
3. Arrange for selling of milk through their own depot and through licensed vendors.
4. Distribute cattle feed to the milk producers and also provide veterinary services.
5. Provide technical services to member farmers, like artificial insemination, veterinary facilities and supply of quality seeds and root slips for production of green fodder.
6. Protect the hybrid quality of animals.
7. Organise dairy industry on a system of rural milk production and urban marketing.
8. Conduct Research and Development activities to improve the productivity rate.
9. Provide financial assistance to poor farmers to purchase cattle.
10. Encourage co-operation and self-respect among the members.
11. Prepare and undertake necessary projects for dairy development in the area.

Problems of Dairy Co-operatives

1. Supply of inputs through the network of dairy co-operatives is not satisfactory.
2. Irregular payments to milk producers have frustrated them.
3. Balance cattle feed and fodder seed is not available regularly, which compelled farmers to use traditional feed.
4. Frozen semen technology to ensure grater productivity is used popularly.
5. Reach and effectiveness of animal health cover is still unlimited.
6. Framers induction programme is given low priority.
7. Dairy co-operatives are facing cutthroat competition with milk vendors.
8. Lack of proper coordination with district level authorities.

Benefits of Dairy Co-operatives for Members

Excludable Benefits:

1. Reliable access to the market for the milk produced.
2. Field services, insurance and market information.
3. Knowledge about the industry costs, returns and practices in the industry.
4. Access to value added margin from dairy processing activities.
5. Representation into legislative process at low cost.
6. Negotiation of overdue premiums.

Non-Excludable Benefits:

1. Balancing milk supplies among dairies.
2. Transporting milk to locations where needed.
3. Providing milk to deficit areas seasonally.
4. Affecting policies and trade practices in favour of milk producers.
5. Providing leadership for effective legislative process.

ANAND PATTERN

Anand Pattern is a doctrine of rural development. Mulani has identified 14 key elements of Anand Pattern.

1. Single commodity approach
2. Member ownership and control of the co-operative
3. Democratic control and Decentralised decisions making
4. Three-tired structure i.e. Village Diary Cooperative, District Dairy Cooperative Unions and Dairy Federation.
5. Use of professional managers and technologies
6. Accountability of professionals to members.
7. Coordination of milk procurement, processing and marketing
8. Annual audit of village co-operatives and district unions.
9. Daily or weekly payment of milk as per the quality
10. Investment in village social expenses capital
11. Autonomy of unions in fixing of prices
12. Adoption of Anand Pattern byelaws.