Milk Cooperatives — Innovative Institutions for Milk Processing and Marketing

This study has examined the role and performance of cooperative milk marketing/processing system in Mandi district of Himachal Pradesh. The ‘Anand Pattern’ of Himachal Pradesh Milk Cooperative Federation (Milkfed) has a three-tier structure comprising primary milk producers’ cooperative societies at the grass root level, milk unions at the district level and State Milkfed at the apex level. Data were collected from 10 primary milk producers’ cooperative societies and a milk processing plant in Mandi district in the year 2013–14. The study has found increase in the number of primary milk cooperative societies from 594 to 765 and memberships from 26,956 to 35,153 in 2011–12. The quantity of milk collected by sample cooperative societies has increased markedly over the years and varied between 17,010 litres to 1, 67,611 litres per society in 2012–13. Pricing of milk was being done uniformly in all the primary milk cooperative societies on the basis of ‘Two Axis Chart’, which is a quite innovative and fair process of price determination. There are various opportunities in terms of growth in membership, high price elasticity of supply and increasing demand for milk and milk products. Therefore, increase in procurement price and upgradation of processing plant would strengthen the financial viability of milk cooperative system that will benefit both producers and consumers.