Milk Production Management & Dairy Development

Module 14. Dairy development in India phases and schemes

Lesson 25
CO-OPERATIVE DAIRY ORGANIZATIONS: ANAND PATTERN AND PERSPECTIVES

25.1 Introduction

This chapter describes the concept of Anand pattern.

"Anand Pattern" or "Amul Pattern" denotes the cooperative dairy development followed in Kaira district of Gujarat state, where this pioneering pattern developed. The common name used for this pattern originates from the town Anand.

25.2 Milk Marketing System Before the Establishment of "Anand Pattern"

The milk produced in the area was being purchased by middlemen, contractors or private agencies at low cost and the same was being sold to the consumers or Government organizations with high margin of profit. The profit from milk sale so gained was being distributed only among few persons, who never bothered to invest these profits for the producers' benefit or dairy development activities. Additionally during flush season because of ample supply of milk the middlemen used to offer still lower prices for milk to the producers forcing either to convert milk into uneconomical products or alternately heeding to the middlemen's demand resulting in very low return for milk, which was always below the cost of production. The surplus milk converted into products and no market value for the byproducts obtained was leading to unnecessary wastage. This was the system which was replaced by the 'Anand Pattern".

25.3 Evolution of "Anand Pattern"

The success story for this pattern to develop was the cooperation and farmers' desire to have reasonable and uniform price throughout the season for their produce ‘MILK’. It all started way back in 1946 when Government agencies concerned did not heed to the demand by the milk producers to market their produce through the formation of their own cooperative instead of middlemen, contractors and/ or private organization. This resulted in 'Milk Strike' organized on the advice of Late Sardar Vallabhbhai Patel under the leadership of Shri Morarjibhai Desai. This lasted for fifteen days, during which period (because of the cooperation between all producers) not a single drop of milk reached the market, resulting in acute shortage of milk supply to ‘Bombay Milk Scheme’. Its impact was seen in Governments approval of the producers' demand of forming a union to handle milk processing and sale. This formed the basis for the formation of "Kaira District Milk Producers Union" and also the "Anand Pattern" of cooperative Dairy Development.

This pattern has become the best example of what cooperatives can achieve when receptive and loyal milk producers join hands with dedicated workers with required technical and managerial skills. This has become one of the guiding centers for rural development in India and other developing nations. It disproves the wrong notion that promoting cooperatives in developing countries is a bad bargain.

The Union which started in 1946 had only two villages and two societies, where only a handful farmers and few staff were handling 250 liters of milk per day. Today the same Union handles more than 20 lakh liters of milk per day. The growth achieved and the popularity of the products from 'AMUL' in the national market, because of their genuineness, quality and reasonable cost, speaks volumes about the pattern.

25.3.1 Anand Pattern

It is the cooperative way of dairy development, which is primarily controlled by the producers themselves. It is a three tier system composed of village level societies, district level union and state level milk marketing federation. The milk marketing federation performs marketing functions to avoid unhealthy competition between unions to capture the market. All these components aim at bringing better benefits to the producers and ensuring supply of quality products to consumers at reasonable rates. The profit gained in the bargain goes in giving social and monetary benefits to the producers, which ultimately results in dairy development of the region.

25.3.2 Village Societies

In "Anand Pattern" this is the foundation around which all other activities are developed. New village cooperative societies are formed under the guidance of a supervisor or a milk supply officer of the Union. A milk producer irrespective of his economic status, political affiliation and caste becomes a member by paying minimal entry fee and buying a share. One criterion which decides his membership is his undertaking to sell the milk only to the society. The members of the society elect “Society Management Committee' consisting of 9, 11 or 13 members (depending on the by -laws applicable). The committee members who are honorary workers then elect a chairman. The committee employs 3 to 6 paid staff depending on the duties essential for running their day to day affairs. The staff selected is assigned duties of secretary, milk collector, fat tester, clerk, accountant, inseminator, helpers, etc.

Each society consists of a milk collection centre where any one of the family members from the producers' house takes the milk produced in the morning and evening at specified time. At the centre milk is promptly measured and a portion of the sample for testing purpose is taken, to test fat for the purpose of payment. The staff appointed by society and trained by the union, works out the amount to be paid on the basis of milk quantity received and the quality. This everyday checking on quality discourages adulteration. The payment for the milk supplied is done to the producer when he comes for the next delivery. The entry is made in the pass-book of the producer and also in society records to minimize the cheating.

The price offered for milk on the basis of quantity and quality is same throughout the union, irrespective of the society's distance from the union's dairy plant.

The ready cash available to poor rural producers help them greatly in buying their daily necessities and also in purchasing feed for the animal. The profit gained by the Society by the sale of milk to the union and also the bonus received by societies from the Union's profits are utilized for the benefit of the producers in several ways.

Nearly 60 to 70 percent of the profit gained by the Society goes in giving bonus and dividends to the producer members and also in the village developmental work (Like road, dispensaries, schools, libraries, etc.) and 25 percent is kept in reserve fund and 5 percent goes towards depreciation on building of milk collection centre.

25.3.3 District Milk Producers' Union

It represents all societies in the district. It consists of 19 members Board of Directors. Twelve members among them are elected from representative Societies and one representative from financing institutions, a nominee member from district cooperative department, one dairy expert and one from milk marketing federation and remaining three from individual members. The Board elects a Chairman, a Vice-Chairman. The board forms policies and the Managing Director appointed by the board implements the policies.

The union's main functions are (i) to buy all the milk from Societies and process it, (ii) sustain the growth of milk cooperatives and (iii) to provide technical assistance in the form of better feeds, veterinary care, artificial insemination facilities, etc.

The milk collection for the Union is done by yearly contract. This has helped in speedy transport of milk from collection centers to dairy. The cost of the procurements is borne by the union. The collection is done at specified timings by use of trucks/tankers from different locations.

The empty milk cans used in the collection centers are supplied after cleaning and sanitization from the union's Dairy Plant to reduce the microbial load and to minimize spoilage.

The processing plant managed by the Union receives the milk, where it is graded. From each society the milk is pooled and weighed and sample tasted for fat and S.N.F. A minimum of 6 percent fat and 9 percent S.N.F. is fixed, since the milk received is mainly from buffaloes. The society receives its payment for milk once in ten days on the basis of fat and also on the quality of milk.

The union decides about the processing of milk into its products. The milk may be sold as liquid milk after heat processing and / or it may be converted into products like butter, milk powder, baby food, weaning food, ghee, cheese, etc. The sale of these products is managed at Cooperative Milk Marketing Federation at state level.

The union has qualified veterinary doctors and fleet of mobile veterinary dispensaries for animal health care. The union is able to attend to emergency calls for 24 hours by charging a nominal fee from members and higher amount from non members per visit. The Union trains society staff in artificial insemination and also in veterinary first aid. These have become a boon to producers. The first aid facilities are also subsidized. The staff of the society doing the artificial insemination job is paid an honorarium for his work by the society.

The union also looks after the nutritional aspects of the animal by providing balanced feed concentrates to its members at subsidized rates. This has become possible because of its own plant of cattle feed and specialists supervising this job. The union also assists the farmers in the cultivation of green fodder like lucerne and hybrid Napier. It is also trying to improve fodder conditions by transforming neglected grazing areas into irrigated fodder farms.

The union educates the farmers and producers by circulating free copies of printed literature written by specialists, in local language, at regular intervals on varied topics of animal husbandry, quality control of milk and cooperative movement. Its extension staff educates the rural producers and also women folk by organizing get together in societies regularly. The producers and their family members are taken on organized tours for showing them different developmental activities of the union. This is providing to them education in non - school format.

The strong supervisory service of the union is helping in guiding, rectifying and control of the society, so that it remains efficient, strong and viable unit providing benefit to the producers. The union has seven year development plan where practical rural oriented projects are taken. The union evaluates the progress regularly and fixes targets. The artificial insemination service provided by the union has helped in reducing dry periods and increasing calving rate. For this purpose the frozen semen is sent daily by trucks to the subcentres situated in societies, where the service is provided by the union trained society staff.

25.4 Contributions made by "Anand Pattern"

"Anand Pattern" has produced its impact by way of contributing to the development of Rural India particularly dairy development aspects in following manner It has shown to the educated and illiterate masses alike that cooperatives can become efficient systems of rural development when they are well organized and managed by loyal and efficient workers.

• It has taught a lesson that it is necessary to have all round approach for upgrading of existing dairy herd by looking to the existing rural economy.

• It is helping the consumers in the supply of genuine quality dairy products at reasonable cost.

• For rural poor and landless producers it has become a steady and regular source of income.

• More employment opportunities in rural areas are generated, which may ultimately have the way in limiting the exodus of rural poor in search of jobs to urban areas.

• Untapped potentials of rural women folk are better utilized by involving them in the dairy herd management.

• It has some impact on restricting the transfer of high yielding dairy animals to big cities and finally to slaughter houses, by its role on the producer's economy.

• Small scale and cottage industries have developed around these areas which are of immense help to the dairy industries, which have further increased the employment opportunities in this region.

• It is educating the rural masses in and around these regions on the use of modern technologies for better returns.

• Democratic set up is strengthened and the caste barriers are weakened.

• The profits from sale of milk are being invested for village improvement.

• The bulk handling of milk has reduced wastage of milk nutrients to considerable extent since byproducts are also utilized and sold.

• Milk from surplus area is available at reasonable price to consumers in areas where there is shortage.

• Overall, it is strengthening the nation by building up its rural infrastructure.

"Anand Pattern" which is now well recognized has made progress with all these odds. It has become the ray of hope for rural poor and for the dairy development in India. The testimony of its success and inherent qualities can be seen by the rapid progress several unions in Gujarat have made by adopting this pattern.