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CHAPTER-III

AN OVERVIEW OF MADURAI DISTRICT CO - OPERATIVE MILK

PRODUCER’S UNION LIMITED

3.1 Introduction

In a country like India, where a large population is dependent on

agriculture for livelihood, the dairy industry assumes special importance.

Though the dairy industry was not unknown before independence, it was only

after independence that the real growth in the industry was achieved under the

various five year plans. A prestigious project named ‘Operation Flood’ enabled

co-operative dairying in India to be a model for many countries of the world. The

MDCMPU monitors the activities of co-operative dairying in the two milk shed

areas of Madurai and Theni districts after bifurcation also and it has seven zones

namely Melur, Vadipatty, Chellampatti, Usilampatti, Peraiyur, Theni, Andipatty.

As the study area constitutes the Madurai and Theni district, the profile of the

Madurai Aavin Union operating in the district is discussed in this chapter. The

profile of the Union is analysed in terms of its procurement and marketing of

milk, production and sale of milk and milk products and its infrastructure

facilities. The Union’s participation in co-operative societies and the provision of

various facilities to the milk producers through those societies are also explained.

In this chapter both primary and secondary data were constituted. Records

maintained by the District statistics office and the office of the Deputy Director,

Animal Husbandry have provided the details regarding the study area. The data

for writing about the Union have been collected from the records maintained by

the Department of Management Information system of the Union and the

unpublished reports of the various other departments of the union. Discussions

with the officials of the Union enabled the researcher to elucidate the various

issues in this chapter. The primary data have been analysed with the help of

classification of tables using percentage and descriptive statistics for the attitude

towards dairy co-operatives and services rendered by the society. The secondary

data have been analysed with the help of Statistical tools like averages,

percentages and Growth Indices. To make the analysis meaningful, compound

51

growth rates and trend values were computed by using semi-log model for the

variables studied.

3.2 Dairying in India

India dairying is emerging as a successful industry. India represents one

of the world’s largest and fastest growing markets for milk and milk products due

to the increasing disposable incomes among the 250 million strong middle class.

The world dairy is zooming on India for its rapidly growing markets that

promise the ‘moon’. The changing international dairy trade pattern, following

GATT and the emergence of the World Trade Organisation (WTO), offer to the

Indian dairy industry an opportunity to take its bow as an exporter. India’s

enthusiasm to integrate with the world economy is reflected in technological up-

gradation, professional excellence and cost- effective approach.

In India, dairying occupies a prominent place in rural life and provides not

only a subsidiary occupation and better nutritional standards, but also a source of

organic manure and draught power. Though the contribution of overall

agriculture to the Gross Domestic Product (GDP) of the country has declined

during the last decade, the contribution of livestock sector to the Gross Domestic

Product has improved from about 6 to 8.5 percent. It is also pertinent to note that

milk is the single largest contributor in the agriculture sector to the national Gross

Domestic Product. The growth of dairying in India with the total milk production

of 74.3 million tonnes and per capita milk availability of 214 gm/day has been a

commendable achievement and well recognised. The Indian dairy sector is

vibrant with an exciting future and the world dairy industry is also zooming on

India for its rapidly growing markets.1

3.3 Origin of Milk Co-operatives in Tamilnadu

Milk co-operative societies were organised in Tamil Nadu by the State Co-

operative Department in 1920. India’s first co-operative dairy with processing

and marketing facilities was established at Ayyanavaram in Chennai city in 1927.

1 “Book Reviews”, Indian Journal of Agriculture Economics,vol.53,No.1, Jan-Mar,1998.

52

This was followed by the establishment of milk co-operatives in Coimbatore,

Madurai, Trichy, Tanjore, Ooty, Cuddalore and other parts of Tamil Nadu.

The Dairy Development Department was established in 1958. It embarked

upon a large scale development activity. With the aid from New Zealand and

under Colombo Plan, a cattle colony at Madhavaram and also dairy to process

50,000 litres of milk per day was established in 1963. Later another dairy to

handle 50,000 litres of milk per day was established in Madurai in 1967 with the

assistance from the United Nations International Children’s Emergency Fund

(UNICEF). Further, a large number of chilling centres was also established and

organised in the marketing of milk in Chennai and Madurai cities.

The commercial activities of the State Dairy Development Department

were taken over by the Tamil Nadu Dairy Development Corporation in 1972. The

corporation’s activities grew in volume and in variety during these years of its

operation and it became a major change agent under the Operation Flood-I

programme. According to 1977 livestock census, the cattle population was about

10.5 million of which 12 per cent were lactating cows. In addition, the State had

2.9 million buffaloes of which 30 per cent were lactating. Buffaloes formed 25

per cent of the total bovines in the country of which 15 per cent was in Tamil

Nadu. The buffaloes account for nearly 66 per cent of India’s total milk

production.

3.4 Progress under Operation Flood Programme in Tamil Nadu

The Operation Flood-I programme, was started in July 1970. A dairy with

a capacity of 2 lakh liters per day was set up at Ambattur. A feeder balancing

dairy was started at Erode with two chilling centres in Sankarandampalayam and

Sathyamangalam and a cattle feed plan in Industrial Estate in Erode were set up.

Centres at Villupuram and Chinnasalem in South Arcot District were established;

a powder plant of 10 tonnes per day was commissioned at Madurai Dairy and a

Nucleus Jersey Farm with imported animals has been set up at Ooty in Nilgris

District to supply quality semen. A total sum of Rs.15.64 crores was spent during

the period of Operation Flood-I programme.

53

A review of the growth of milk societies in 1976-77 shows that there were

3208 societies in Tamil Nadu, which constituted 20 per cent of the societies in

Tamil Nadu, which stands second to Maharashtra in organising village milk

producers ‘co-operatives.

During Operation Flood-II programme period an additional 1462 Anand

pattern societies were organised by enrolling an additional 1,80,390 members.

The milk procurement was also increased from 3,02,500 litres to 5,22,440 litres

per day. The construction of a new dairy in Salem with the capacity to handle one

lakh litres per day and a new chilling centre at Thiruvannamalai were completed;

Under the drought prone area programme, a new dairy of one lakh litre capacity, a

powder plant with the capacity of producing 10 tonnes milk powder per day and a

buffalo frozen semen station at Chithode in Erode were completed.

With the Operation Flood Programme and International Development

Agencies (IDA) aided projects in operation in Tamil Nadu, Dairy Co-operatives

have been developed at a much faster rate. By the end of December 1986, Tamil

Nadu had 5626 Milk Producers’ Co-operative Societies at the village level, 16

milk producers’ unions at the district level with 28 chilling centres and a

federation at the State level.

It was also envisaged under Operation Flood-III programme to increase

the capacity of 9 dairies from 6.98 lakh litres per day to 16.50 lakh litres per day

by commissioning two more dairies in addition to the expansion of the existing

dairies. The capacity of the metro-dairies would be raised to 7.75 lakh litres per

day from 4.25 lakh litres per day.2

Thrust on the Operation Flood-III is to initiate policies and steps to

increase milk production and procurement to match demand and to build

necessary infra-structure facilities for processing and efficient distribution

network.

New three dairies at Madras, Trichy and Villupuram were established

with a handling capacity of 4 lakh litres, 1.5 lakh litres and 1 lakh litres per day

2 Ramanujam .K.N and T.saroja,” In Tamilnadu Dairy Development”, Tamil Nadu Journal Of Co-

operation, December,1989, vol.81,No.6,pp344-347

54

respectively. The existing dairies were expanded in Ambattur from 3 lakh litres to

4 lakh litres per day. In Madurai from 1.5 lakh litres to 2 lakh litres per day, in

Coimbatore from 1 lakh litres to 2 lakh litres per day. New chilling centres were

established in Theni, Perambalur, Karur, Namakkal and Kodaikannal.

In Tamil Nadu, Co-operative dairying has also paved the way for the

economic emancipation of women in the villages. Dairies are operated and

managed by women themselves. In Thanneerpandal Villages in Periyar District

the concept of Micro Dairies’ has been introduced to make dairying accessible to

small and marginal farmers. The impact of dairy development in the rural

economy of Tamil Nadu is great and wonderful. The dairy co-operatives are the

main springs for this rural development.3

In Tamil Nadu there are `17 districts Dairy co-operatives are run in the

Brand Name Aavin . The Functional societies of each Union as well as women

societies in each district are shown below in table 3.1.

Table 3.1

Functional Societies in Tamil Nadu

S.No Name of the Union Functional Societies Women Societies

1. Kancheepuram-TVR 282 65

2. Villupuram 687 200

3 Vellore 858 188

4 Dharmapuri 534 91

5 Salem 1107 139

6 Erode 718 123

7 Coimbatore 580 83

8 Niligiris 98 3

9 Madurai 794 142

3 Nirmal Singh. “Operation Flood phase –III in Tamil Nadu”, Tamil Nadu Journal of Co-operation,

vol.83,No.1,April, 1991,pp 12-13.

55

S.No Name of the Union Functional Societies Women Societies

10 Dindigul 183 23

11 Trichy 666 88

12 Tanjore 199 55

13 Pudukkottai 59 4

14 Sivagangai 265 15

15 Virudhunagar 87 18

16 Tirunelveli 375 54

17 Kanyakumari 72 14

Total 6978 1305

Source: Unpublished records of the Union

The table 3.1 shows that the total functional societies in Tamil Nadu are

6,978 societies in 2009. Out of total dairy co-operative societies, 1305 women

societies are functioning. There are 794 Dairy Co-operative societies are

functioning in Madurai Union. Out of total societies, 142 women societies are

functioning in Madurai and Theni districts.

3.5 Profile of the Madurai Aavin Union

In Tamil Nadu, the apex body of the co-operative dairy industry is the

Tamilnadu co-operative dairy industry is the Tamilnadu co-operative milk

producers’ Federation Ltd., Chennai. Throughout the state there are 17 district-

level Unions to cater to the needs of the various districts. The Madurai District

Co-operative Milk Producers’ Union Ltd., is the key institution in bringing about

all-round development in milk production and milk marketing by rendering

services to the primary milk co-operative societies situated at various villages in

Madurai and Theni Districts. All the records that are maintained by this Union

have the combined data for the two milk-shed areas of Madurai and Theni

Districts.

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The Madurai District co-operative milk producers’ Union Ltd., has been

functioning since 1938. It has a modern dairy with technological facilities for

processing of milk and milk products. The Union has been brought under the

operation flood project since 1983. The main object of this scheme is to replicate

the Anand pattern of three tiers structure of co-operatives and thereby to bring

about a white revolution.

The Union has a well-designed organization structure. The supreme

authority of the Union vests with the General Body. The presidents or delegates

of the affiliated primary co-operative societies represent the members at the

General body. The Presidents or delegates of the affiliated primary co-operative

societies represent the members at the General Body. The business of the Union

is professionally managed by the Board of Directors consisting of a Chairman, 8

Directors elected from among the members of the general body and 6 Directors

nominated to represent the NDDB, Department of Animal Husbandry and other

related institutions. The General Manager, appointed by the Government, is

responsible for the day-to-day administration of the Union. The various

departmental heads assist him.

The Union functions through the Department of plant and maintenance,

the Department of quality control, the Department of marketing and the

Department of procurement and inputs is mainly associated with the village level

dairy co-operative societies and serves them through nine procurement teams

stationed at Uthamapalayanm Theni and Andipatty in Theni District and

Vadipatty, Usilampatti, Melur, Thirumangalam, Chellampatty and T.Kallupatty in

Madurai District.

The Union operates with the aim of uplifting the status of the members of

the primary co-operative societies; especially those below the poverty line, by

ensuring a reasonable price for milk supplied by them. It also aims at catering to

the needs of urban consumers for milk and milk products at reasonable prices by

eliminating the private vendors from the marketing field. The Union is engaged

in many activities to achieve its objectives. They are the organization of village

level dairy co-operatives, the procurement of milk, pricing and payment for milk,

57

processing of milk and milk products, marketing of milk and milk products,

supply of inputs such as artificial insemination, veterinary services, supply of

cattle –feed and other developmental programmes.

3.5.1 Organization Structure

The Aavin has three-tier structure, namely

� State level federation,

� District level Union and

� Village level Society.

State Level Federation

The State level federation is named as “TamilNadu co-operative Milk

Producer Federation” (TCMP), which framed policies, draft procedures and

even determines the price for all the products, in the state of TamilNadu.

District Level Union

The District level Union is named as “Madurai District Co-operative Milk

Producers Union Ltd”(MDCMPU) receives milk from societies, which are

chilled, processed and distributed to the public through milk booth outlets.

Village Level Society

The village level society is called as the “Milk producers Co-operative

Society”(MPCS), which procures milk from the farmers of several villages and

transports the same to district level in Madurai Union. It has 804 Societies at

village level.

3.5.2 Objectives of the Organization

• To uplift Socio-economic status of rural milk producers by offering

reasonable price and extending marketing facilities for milk in city and

rural areas.

• To cater the disserting urban consumers need of milk and offer

pasteurized, homogenized milk at competitive prices.

• To provide the hygienic and standard milk to the urban area in order to sell

the extra surplus milk at reasonable price.

• To promote rural economy by means of Co-operative services.

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3.5.3 Functions of the Union

a) Formation of milk producer’s society at village level.

b) Collection of milk from the members and paying remunerative price to

the society.

c) Processing the purchased milk at dairy and produce milk and milk by-

products like Butter, Ghee, etc.,

d) All Dairy welfare benefits are monitored by the Union.

3.5.4 Services rendered by the Union to the Society

A) Collecting milk throughout the year without any restriction.

B) Offering fair price for better quality.

C) Payments of milk cost once in 10 day and three bills for a month.

D) Educating the producers all modern techniques related with the Dairy

development activities.

E) Providing extension practices for clean milk production.

3.5.5 Membership Eligibility

The village should not have any, already existing functioning MPCS and

minimum 25 producers must be in a village. There will be 11 Board of Directors,

which consists of 33 % women and 18% for SC/ST. The member should not be

below 18 years. The MPCS should be registered by Deputy Registrar (Dairying)

of the concerned District.

3.5.6 Year of Establishment

The Madurai Aavin was established in the year 1967. Aavin was

established by the Government of Tamil Nadu. The Foundation stone was laid by

Dr.S.RadahaKrishnan, the President of India. The Madurai dairy (UNICEF aided)

was inaugurated by Smt.IndraGandhi, in January 1967, under the presidentship of

Sri.M.Badthavatsalam, B.A., B.L., Chief Minister of TamilNadu. Aavin was

owned and established by the Government of Tamilnadu. It is a public Limited

Company under Co-operative societies act. The nature of Madurai Aavin Union

is to collect milk from the societies and to process and supply it to the public

through booths.

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3.5.7 Awards

Madurai Aavin Union has got the Shield Award for the best functioning

District Union both in State and District level for the year 1993-94 and

1996&2007. Aavin has also received the award for the best Dairy &Food

processing industry in India level from the National productivity council, New

Delhi in the year 2008.

3.6 Milch animals under Co-operative Ambit

The increase in procurement of milk is also attributable to the increase in

the bovine population of the members of the village-level societies. The members

enjoy loan facilities and subsidies which enable them to buy more milch animals.

Table 3.2 has given the details of milch animals under co-operative Ambit during

a period of 10 years from 2001-10.

Table 3.2

Milch Animals under Co-Operative Ambit

Year No. of. Cows under Co-operative Ambit Growth Indices

2001 10684 100

2002 11196 105

2003 10818 101

2004 10968 103

2005 12840 120

2006 11897 111

2007 12094 113

2008 12469 116

2009 10905 102

2010 11163 104

Source: Unpublished Records of the Union

It is cleared from table 3.2 that there is a constant increase in the number

of cows brought under the Co-operative ambit. Table 3.3 gives the trend and

growth rate of the number of cows brought under the co-operative ambit. Table

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3.3 gives the trend and growth rate of the number of milch animals under co-

operative ambit from 2001-2010.

Table 3.3

Trend and Growth rate of milch animals under co-operative ambit

Model Value of

constant

Value of

Coefficient

Compound

Growth Rate

Value of R2

Semi-log 0.006 9.31 69 0.1026

Source: Computed data

It is seen from table 3.3 the number of milch animals under co-operative

ambit has recorded a positive growth of 69 percent during the study period.

3.7 Pricing of milk

In the Co-operative dairy industry it is the federation which is the apex

body at the state level that fixes the price payable to milk producers of the state.

In TamilNadu, the Tamil Nadu milk producers federation, with the approval of the

state Government, evolves a pricing system which is remunerative to the milk

producers and all the 17 district-level Unions in the State automatically follow this

latest revised milk procurement price is with effect from 16th

February 2011 at

rate of Rs 20 per litre for cow milk, of which the Government is Rs. 0.50 and the

remaining Rs 19.50 is borne by the dairy co-operatives.

3.8 Procurement of Milk

The Madurai Aavin Union has milk plants to handle 1.5 Lakh litres of

milk per day from the dairy Co-operatives. Table 3.4 shows the average

procurement of milk per day from the societies over a period of 11 years from

2001-11.

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Table 3.4

Procurement of Milk from Societies

Year Procurement of Milk

(In litres per day)

Trend Value

2001 100055 104.22

2002 124839 117.41

2003 118998 130.60

2004 120539 143.78

2005 153268 156.97

2006 184135 170.16

2007 205176 183.34

2008 222183 196.53

2009 226354 209.71

2010 207966 222.9

2011 208203 236.09

Source: Unpublished Records of the Union

It is inferred from Table 3.4 that the quantity of milk procured over the

various years there is a constant increase in the quantity of milk procured from the

dairy Co-operative Societies. The increase in the procurement price has

motivated the milk producers to sell all their milk to the dairy co-operatives. The

Union not only procures milk from the dairy co-operative societies in its area of

operation but also procures milk from the neighbouring unions. The neighbouring

unions who have surplus milk send their milk to the Madurai Aavin Union for

conversion into milk products. In 2010, there is a decrease in the procurement of

milk, due to the upcoming of Private dairying.

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Source: Computed data

3.9 Mode of Payment

The quality of milk procurement is an important factor in deciding the

price of the milk to be paid by the Union to the societies for the milk. When the

milk reaches the Union, the Department of quality control tests the quality of milk

and as per the quality of the milk sent from each society the payment is made to

the society.

The quality of milk is measured in terms of the content of fat and solid

non-fat in the milk. The solid non-fat in milk includes protein, lactose and

minerals. The Fat and SNF together form the total solids. If the society sends

good quality milk they will be able to make a profit out of the sale to the Union.

So they are motivated to get unadulterated milk from the milk producers.

The Union makes the payment to the societies once in ten days and the

societies also maintain the same payment schedule. The Union deducts the

various amounts that the societies owe to the Union and pays the remaining

amount to the societies. The payment to the society is made through accounts

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maintained by them in the local Banks, mainly the Co-operative Banks. Payment

is sent once in tendays through internet Banking system.

3.10 Transportation of milk

The transportation of milk from the societies to the union is done through

a transportation network classified into 29 routes among which 14 are directly

connected to the union and the other 15 are connected to the chilling centre at

Theni.

Milk from societies in Madurai, Melur and Thirumangalam areas is

directly brought to the Madurai Dairy by means of lorries. Tankers are specially

made containers in the form of a thermo flask, which are able to transport the

chilled milk at the same temperature without spoiling it.

3.11 Production of milk and milk products

The milk procured by the Union from the societies and/or from

neighbouring Unions is processed in the dairy plant of the Union and converted

into fluid milk and other milk products such as butter, ghee, milk powder and milk

peda.

3.11.1 Production of Fluid milk

Fluid milk is the most important product of the Union which is required in

bulk by consumers. Milk collected from the societies and the chilling centre is

being chilled at 4oc with the help of chilled water prepared through refrigeration

plant and then stored in insulated milk silos. From these silos, the milk required

to meet the daily sales is drawn out, and processed to form fluid milk.

The processing includes pasteurization, homogenization and

standardization. During pasteurization the milk is heated to a high temperature of

72o C, held at that temperature for 15 seconds and then cooled to a very low

temperature of 4o

C this is to destroy the pathogens, the microbial elements.

Homogenisation is the breaking of fat globules into five parts, which ensures

uniform mixing of fat in the milk. As per the requirement of the prevention of

food Adulteration Act, the fluid milk should contain 8.5 percent solid non-fat. It

may contain any proportion of fat. Standardization is the process of standardizing

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the fluid milk to a given percentage of fat by the abstraction and or addition of

milk fat.

The Union considers various marketing factors to decide the percentage of

fat in the fluid milk. The Union has offered standardized milk with 4.5 per cent

Fat, Toned milk with three percent Fat and whole milk or super thick milk five

percent fat from time to time.

The processed fluid milk is either packed in 500 ml or 200 ml sachet with

the help of packing machines or supplied as such for bulk vending. Till delivery

the sachets are stored in a milk cold room where the temperature is maintained

between 4o C and 6

o C.

Table 3.5 gives details of the average quantity of fluid milk produced per

day over a period of 10 years from 2001 to 2010

Table 3.5

Production of Fluid milk production

Year Production of milk(in

litres per day)

Trend Value

2001 34070.608 4795.31

2002 34731.499 17990.75

2003 34958.870 31186.2

2004 42174.617 44381.65

2005 44323.668 57577.09

2006 52786.026 70772.54

2007 61245.103 83967.99

2008 69363.113 97163.43

2009 58403.014 110358.9

2010 49306.250 123554.3

2011 49338.250 136749.8

Source: Unpublished records of the union

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Table 3.5 shows that there is an uneven increase or decrease in the

quantity of fluid milk produced in the Union. The quantity of the fluid milk

processed depends on its demand both in and outside Madurai.

Source: Computed data

3.11.2 Production of Milk Products

The Madurai Aavin Union is one among the 4 feeder balancing dairies of

Tamil Nadu. A feeder balancing dairy has two distinct functions. The feeder

function is confined to the dispatch of the processed fluid milk. The balancing

function is to balance year-Round supply of milk to meet market demand. This is

made possible by setting up plants to conserve the flush season surplus milk in the

form of skimmed milk powder, white butter or butter oil or frozen cream which is

reconstituted into milk in the lean season.

In Madurai Aavin Union, the surplus milk left after processing of fluid

milk is processed and skimmed by means of cream separator. The separated

cream is pasteurized with the help of a cream pasteurizer and stored. The

skimmed milk left after the separation of cream is being supplied to the powder

plant for converting it into skimmed milk powder. It is this skimmed milk

66

powder which is used for reconstitution purpose during the lean seasons to meet

the demand for fluid milk, when milk is in shortage.

The separated and processed cream is churned and converted into butter

with the help of butter churns. The butter is stored in a deep Freeze Room where

the temperature is maintained between -10o C to -15

0 C. As per the market

demand, the butter is sold as butter or converted into ghee with the help of ghee

boilers and sold.

3.12 Infrastructure Facilities

The Union is able to procure all the milk produced by the milk producers

on all the days mainly because of the extensive infrastructure facilities available.

The Government of TamilNadu in the year 1967 established the Madurai milk

project with the financial assistance from the UNICEF and the New Zealand

Freedom from Hunger Campaign Committee, New Zealand, to handle one lakh

litres of milk per day.

During the period of Operation Flood project the capacity of the plant and

Machinery was increased to handle 1.5 lakh litres of milk per . In 1972, a chilling

centre was established at Theni, with a capacity to handle 10,000 litres of milk

per day. Now the capacity has been expanded to handle 1, 00,000 litres of milk

per day.

3.12.1 Refrigeration Plant

There are six refrigeration plants i.e., 70 TR Frick compressors, which are

used to maintain the temperature of chilled water between 1o C and 2

o C for

chilling the raw milk and for pasteurization. The cold store room temperature also

is maintained with the help of this plant.

3.12.2 Boiler

With the help of boilers, water is converted into steam and this steam is

used in the pasteurization of fluid milk and for melting butter. Boilers are also

used in powder production and the processing of milk products.

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3.12.3 Hydro Flow

With the help of a 21HP submersible pump, water is pumped from an open

well in the Vaigai riverbed to the main dairy sump of capacity 10 lakh litres. This

water is not only used by the Dairy but also supplied to the Post and Telegraph

Department of Madurai.

3.12.4 Electrical

The Dairy gets electrical supply from the TNEB, Madurai. But for

emergency use there are two 255 KVA generators available.

3.12.5 Powder Plant

The powder plant, with a capacity of 10MT/Day was installed and

commissioned in 1975 by the NDDB and L&T. It has two plants – an evaporation

plant and a spray dryer plant.

3.12.6 Transport Vehicles

The dairy has a fleet of vehicles to transport milk into and out of the dairy.

There are eight milk tankers, three milk vans and 10 light vehicles to carry milk &

milk products.

All there infrastructure facilities enable the Union to perform its functions

efficiently to the benefit of milk producers on the one hand and the consumers on

the other.

3.13 Quality Control

Milk is a perishable commodity and quality adherence is very essential.

Adulteration of milk in different forms, including mixing of milk with water and

preparation of synthetic milk, has become a routine in India. The Delhi

Government in 1999 had found over 50 milk samples adulterated out of 414 taken

from various private dairies. 4 Many dairies were found to be using harmful

materials such as caustic soda and urea for preserving milk. Synthetic milk is a

mixture of vegetable oil, soap and skimmed milk powder and does not include

fresh milk at all. Studies conducted in the laboratories of the National Institute of

4 “Act Against Adulteration of Milk HC tells Government”, The Hindu, Madurai

Edition.6.11.200,p5.

68

Nutrition at New Delhi, Calcutta and the twin cities confirmed the presence of

harmful antibiotics and detergents in some samples of synthetic milk.5 It is

reported that the synthetic milk produced in the North contained urea, hydrogen

peroxide and even shampoos in some cases. Unhygienic way of milking and non-

availability of cold chain for transportation of milk to distant places are

responsible for the high microbial content in the milk.

In the wake of all this different ways of adulteration, quality control is an

important aspect of dairy industry. Production of high quality milk requires

hygienic practices during milk production. The dairy premises, plant and

equipment and other systems should be kept clean. Quality testing in terms of

micro biological counts, odour and sediments off-bottom should be adequately

taken care of. The Madurai Aavin Union adheres to a strict quality control

process considering all these factors.

The Madurai Aavin Union adopts a Quality Assurance System (QAS) at

all levels of milk reception, processing, packing, storage and despatch. A person

to separate sour milk first tests milk received and brought in cans. The good milk

is sent into the dairy. A sample is collected from the milk of each society. The

sample is tested for its content of fat by an electronic milk tester and for its

content of SNF by a lactometer. After the milk is pasteurized and homogenised,

samples are taken and tested for microbial count. Similarly at the time the milk is

packed and stored quality tests are conducted. When the milk is despatched,

samples are taken and tested every hour to determine the maximum time the milk

would keep its quality. It is found that in room temperature the milk maintains its

quality for a maximum period of 10 hours. This ensures that the milk will be

fresh when it reaches the consumers and even a few hours after.

The plant and machinery and the related tubes, vessels, sieve and

containers are thoroughly cleaned and sterilized with hot water whose temperature

ranges from 50o C to 110

o C. They are also washed once a week with caustic soda

and soap oil. The premises is cleaned well soon after the collection of milk is

over. The milk tankers are also washed and cleaned well using soap oil and

5 M.Suchilia. 2002.Milk market-not so white… Industrial Economist. May.volXXIII. No.5, p-22.

69

caustic soda. There is an automatic washing machine to wash the milk cans

which bring milk from the societies. This machine has four compartments. In the

first compartment the cans are washed with water and washing soda. In the

second compartment they are washed with soap oil and hard water. In the third

compartment they are again washed with very hard water. In the fourth

compartment they are steamed and sterilized.

In view of the Quality Assurance System adopted by the Madurai Aavin

Union it can confidently compete with the private dairies in terms of quality

control.

3.14 Marketing of Milk and Milk Products

The Union has a full-fledged marketing Department for a) creation of new

markets, b) supervision of sales, c) product planning and development, d)

distribution e) advertising and f) sales forecasting. The distribution of milk and

milk products in the city is controlled by four zonal offices namely the North

Zone, the South Zone , the East Zone and the West Zone which work under the

direction of the Marketing Department of the Union.

3.15 Sales of Fluid Milk

The Union meets the fluid milk demand of the consumers of the city and

district first and if there is surplus milk it is sent to the federation at Chennai or to

the other Unions in the State of TamilNadu or other States of India.

70

Table 3.6

Sales of Fluid Milk (Per Day Average)

Year Sales of Milk(in LPD) Trend Value

2001 83530 77320.22

2002 77339 90808.43

2003 93154 104296.64

2004 113496 117784.85

2005 132317 131273.06

2006 155081 144761.27

2007 179982 158249.48

2008 180121 171737.69

2009 192834 185225.90

2010 155000 157814.11

2011 148000 14201.11

Source: Unpublished records of the union

Table 3.6 shows the details of the average quantity of fluid milk sold per

day locally within the city of Madurai or district during the period of 11 years

from 2001 to 2011. It is clear from Table 3.5 that there was a steady increase in

the sale of fluid milk in Madurai Aavin Union. There is decrease in sale of fluid

milk in the year 2010 and 2011.The main reason is milk is diverted to Chennai

and the procurement is also low.

71

3.16 Packing and Distribution of Fluid Milk

All the various categories of fluid milk sales are affected through the

booths established by the Union in various spots in the city. These booths are

under the control of concessionaires who are paid a commission on the basis of

their quantum of sales. With effect from the year 2000 the rate of commission is

1.5 percent of sales value if the quantity of sales is up to 200 litres per day and

two percent of sales value if the quantity of sales is above 200 litres per day. It is

noted that this variation in the rate of commission is introduced to motivate the

concessionaires to increase their sales of milk. Table 3.7 gives details of number

of booths in Madurai Aavin Union.

72

Table 3.7

Booths in Madurai Aavin Union

Year No .of. Booths Growth Indices

2006 855 100

2007 1002 117.19

2008 1114 130.29

2009 1208 141.28

2010 1231 143.97

Source: Unpublished records of the union

Table 3.7 shows that there was a steady increase in the number of booths.

The Madurai Aavin Union has the different type of seller’s such as Hi-Tech

parlours, depots, dropping points, institutions, retailers, Self-Help Group. The

Union is also distributing milk sachets through retailers who have facilities for

refrigeration. These retailers are given a commission of 10 paise per half-a –litre

sold.

3.17 Distribution of Milk Products

The milk products are sold through parlours established by the Union for

this purpose in the city. Agents, who are offered a commission of four percent on

the sales value, administer these parlours. There are two parlours that sell hot

milk to the traveling public one at the Madurai Railway station and another at the

Arappalayam Bus stand. The Union also adopts direct sales to bulk purchasers. It

is observed that the Union enters into regular contracts with certain institutions

like Railway, Fenner India Ltd., Hotels, Marrigae etc., The Ghee of the Union has

got the prestigious AGMARK certification. So there is a good denmand for it

even outside the State specifically in places namely Jodhpur, Jaipur, Silvasa,

Indore and Pondichery. The products of the Union are branded ‘Aavin’ and are

advertised through Newspapers, Magazines, Radio and television.

73

3.18 Input Services

Supply of inputs for milk production and cattle development is entrusted to

the Union in the Anand pattern. The Union has not only to engage in procurement

and marketing of milk but also has to make constant efforts for increasing the

productivity of the animals of the milk producers in the member societies. The

Union provides a package of input serves to the farmers at their doorsteps.

Important among them being,

1. Artificial Insemination

2. Veterinary services

3. Supply of cattle feed.

3.18.1 Artificial Insemination

Commercial milk production in India is associated with the maintenance of

pedigree crossbreed cow which are proved to be profitable producers of milk.

Cross breeding is concerned with upgrading the genetic qualities of the dairy

animals by crossing them with exotic breeds. At present our country is flooded

with cross breed cows with innumerable permutations and combinations of

different elite exotic breeds with Indian breeds. The exotic breeds are German

Jersey and Hereford Bulls, Brown Swiss Bulls, Reddance bulls from Denmark

and Holstern fresian Bulls of New Zealand. The Indian cattle breeds are sindhi,

sahiva, Tharparkar, Harians Kandrey, Gir, Ongole and Murrah. The central and

state Governments have established a number of cattle breeding farms. Several

Non-Governmental organizations have also taken up cross breeding programmes.

The cross breeding programme has been facilitated through frozen seemen

stations and artificial insemination centers. By artificial insemination the genetic

qualities of local cows and buffaloes are upgraded. The advantage of artificial

insemination, the large number of animals could be served with a relatively small

number of bills. The frozen semen technology is needed for ensuring greater

productivity in artificial insemination programmes. The frozen semen has life

upto 14 to 15 years whereas the liquid semen’s life is only 48 hours. In

TamilNadu there are three farms to produce frozen semen and they are in Ooty,

Hosur and Eachan Kottai.

74

There is an Artificial insemination centre at the Madurai Aavin Union,

which has been functioning since 1980 to provide supply of frozen semen straws

which are obtained from the Nucleus Jerssey farm in ooty owned by the

TamilNadu co-operative milk producers’ federation. The Union has set up a

liquid Nitrogen plan under the OF-II programme with the assistance of the Indian

Dairy Corporation the liquid nitrogen produced have is filled in liquid nitrogen

containers where in the frozen semen straws are preserved. The Union at present

has 160 liquid nitrogen containers many of them being bought with the subsidy

received from the Government under the Integrated Rural Development

Programme.

The Union supplies the liquid nitrogen containers with the frozen semen to

the societies once in a month. The village-level workers are trained in artificial

insemination and so they perform this work under the guidance of the mobile

veterinary doctors who visit the societies. The milk producers whose milch

animals are subjected to artificial insemination are charged Rs 12 for each case.

Table 3.8 shows the number of artificial insemination done and the

number of calve born during the period of 10 years from 2001 to 2010.

Table 3.8

Artificial Insemination Done and Calves Born

Year No. of AI Done Total No.of calves

born

Success Rate

(percentage)

2001 75894 24286 31.99

2002 66700 20677 31.00

2003 64887 20763 31.89

2004 67240 21517 32.00

2005 62038 19852 32.00

2006 70440 22893 33.01

2007 79598 25471 32.00

2008 102315 32741 31.73

2009 109899 35717 32.99

2010 77929 25716 32.99

Source: Unpublished Records of the Union

75

As Table 3.8 shows, the Union is constantly providing this input of

artificial insemination and as a result there are many calves of cow born. The

success rate varies from 31 to 33 percent which means an average of 32 percent.

It is observed that 50 to 60 percent of the calves born are female or heifer calves.

The female calves born generate the next group of milch animals, just within

another 32 months. It is found that an average 156 artificial insemination

centers are functioning at the dairy co-operative societies to cater to the needs of

the milk producers who are members of the societies.

3.18.2 Veterinary Services

The input comprises of first aid, mobile veterinary service, and emergency

health cover for the milch animals and vaccination against contagious and

infectious diseases.

The Union operates ten mobile veterinary units to provide animal health

cover to the animals of the members of the societies. These mobile Units are

linked to the nine procurement teams. Each mobile veterinary unit has one

veterinary doctor who is assisted by the extension assistant of the procurement

teams. The mobile unit prepares a programme chart by which it makes possible to

visit every society in its route once a week. The societies are informed about the

day and time of the visit of the mobile veterinary unit which visits 10 societies per

day.

On this visit the mobile veterinary unit provides regular health cover to the

milch animals free of cost to the society as well as the milk producer and this

means the cost is borne by the Union. The mobile unit treats sick animals and

offers de-worming of calves. Also vaccinations are given against diseases like

foot and mouth disease, black quarter disease and itches, on or nominal charges.

The Union operates three emergency units to treat those animals which are

in distress as and when they are in need. These emeregency units are linked to the

procurement teams at Theni. Melur and Usilampatty. The emergency treatment is

changed at the rate of Rs 25 per case and it is to be borne by the milk producers

whose milch animals treated.

76

The village level workers appointed by the dairy co-operatives are trained

in first-aid and so they are of help to the milk producers in the first instance.

The Union also carries out a plan of animal health cover namely, the special

sterility camp and they are conducted once in a month in each society. The aim of

this camp is to determine the reasons for the sterility of the milch animals and to

treat them for it. This camp has a follow-up work after three months to determine

the success of the programme . Table 3.9 gives details of the number of milch

animals subjected to regular and those treated in the special sterility camps during

the period of 10 years from 2000 to 2010.

Table 3.9

Animal Health Cover Provided to the Milch Animals

Year No. of Cases Treated in Regular

Veterinary Routes

No. of Cases

Treated in Sterility

Camps

No. of Cases

Treated in

Emergency Routes

2001 88365 Nil 2427

2002 90086 Nil 1059

2003 83701 Nil 1325

2004 52043 Nil 715

2005 57374 Nil 1209

2006 68282 Nil 1961

2007 77579 Nil 1729

2008 70696 176 1750

2009 82884 228 2305

2010 95049 384 2972

Source: Unpublished records of the union

Nil: Scheme not implemented

It is seen from the table 3.9 shows that the number of cases treated in the

regular, emerging veterinary routes and sterility camps. In the year 2010, they

treated 95049 cases against 88365 in 2001. The sterility camps were resumed for

milch animals from 2008 with 176 cases, increased to 384 corresponding to the

year 2010. Compared to the year 2001, the increasing cases were evident in the

year 2010 with 95049 cases. This indicates that veterinary service provided by

77

the Union has been greatly beneficial to the milk producers. The milch animals

will be productive only if it is healthy.

3.18.3 Supply of Cattle Feed

To supplement the nutritive requirements i.e., balanced feed of high milch

animals, fodder and concentrate cattle feed are supplied to the member societies.

Green fodder is an important feed requirement for milch animals. Under

the OF-II project the Union grew fodder on nearly 70 acres of land in various

villages and supplied the fodder to the milk producers free of cost. Now the

Union does not grow fodder but supplies only mini kits of fodder slips and seeds

to the members of societies who have lands to grow fodder.

The Union gets seeds like maize, cowpea, sorghan and stylo grass seeds

from the Central Government Fodder Research Station at Alamadhi, Chennai

through the Tamil Nadu co-operative milk producers’ federation and supplies

these to the societies at free of cost. The societies distribute these seed to the

members according to their necessity. The Union also purchases cool fodder slips

namely Co.I and Co.II from the Government’s Agricultural Department and

supplies them to the members of the societies on a ‘no profit no loss’ basis.

The members of societies who have lands make use of the fodder slips and

seeds and cultivate fodder. It is found from the records of the Union that the land

under cultivation of fodder in the villages measures an average of 550 hectares in

1994-95, 1385 hectares in 1995-96,1195 hectares in 1996-97, 920 hectares in

1997-98, 750 hectares in 1998-99, 645 hectares in 1999-00 and 810 hectares in

2000-01.

Providing adequate and nutritionally balanced food is the quick way of

increasing the milk yield. Computed cattle feed is a good feed for the milch

animals. The Union was originally purchasing and supplying computed cattle

feed to the societies. Since May 1991, the cattle feed plant at Kappalur came

under the control of the Union and the cattle feed produced in this plant has been

supplied to the members of the societies from then on.

78

The cattle feed plant is designed with a capacity to manufacture 100 metric

tonnes of cattle feed per day. It is provided with laboratory facility to check the

quality of raw materials and finished products. Three different varieties of cattle

feed are produced here, namely the special milch Ration/pellet, the special

milch/mash and the calf starter feeds and all of them are marketed under the brand

name ‘Aavin’.

This computed cattle feed is a composition of 13 ingredients namely, de-

oiled rice bran, rice polish,maize, cotton seed extraction, groundnut extraction,

sunflower extraction , tapioca thippi, wheat bran, jowar, molasses, urea, mineral

mixture and common salt. Pellet and mash are packed in 60kg and 50 kg bags

respectively. Since the plant comes under the co-operative organization the cattle

feed is priced at ‘no profit, no loss’ basis.

3.19 Special Development Schemes

Under the Operation Flood Programme the Union adopted various special

schemes with the assistance of the national Dairy Development Board or the

Indian Dairy Corporation. These schemes had been really beneficial to the

members of the primary milk co-operative societies enabling them to own, rear,

care for and feed more and more milch animals. So even after the era of the OF

scheme is over, the Union is continuing some of these schemes either by spending

its own funds or by getting the aid or subsidy of the Government. The schemes

are monitored by the Union and implemented through the primary dairy Co-

operative societies.

3.19.1 Strengthening of Infrastructure and Quality Control & Clean Milk

production (SIQCM)

This scheme was introduced in the year 2006-07. Under this scheme Bulk

milk cooler was launched at co-operatives society/Union which covered 10

villages around it(40 km). Normally the milk from society takes 6 hours to reach

Aavin, and it is possible to get deterioted due to time gap. To prevent this

deterioriation and to preserve the milk, the milk collected from the villages is

poured into the BMC within half an hour. Then the Aavin procured milk from the

machine. It facilitates both co-operative society and the Union. Co-operative

79

society can get better price for their product and Aavin gets quality milk in time.

It was sponsored by the Central Government. 75% of purchase price was covered

by Central Government 25% by Unions. At present BMC is installed at 16

villages.

3.19.2National Agricultural Development programme (NADP)

To promote Dairy Industry, Animal Husbandry & agriculture, the Central

Government established the NADP scheme during the year 2007-08. It has been

functioning for past 2 years. It was sponsored by the Central Government with

the total outlay of 19 lakhs. Under this scheme training was given to selected

members of particular block on feeding of animals, defects and remedies,

maintenance and enhancing infrastructure etc., at NDDB-Anand in the year 2007-

08. During the year 2008-09, 100% subsidy was offered to purchase milk

machines. At present, 39 societies were to purchase milk machines. At present,

39 societies were selected / eligible to receive the machine. Refresher course was

conducted for village people. In the same year, the Union took the members of

the society to Karantaka for attending FIP programme in this regard. Through

NADP mineral machine plant was given at the cost of 5 lakhs.

3.19.3 Buffalo calf rearing scheme

In the year 2008-09, 50 calves were sanctioned to Madurai Aavin Union.

Out of this, 20 were sanctioned to Madurai district. It was sponsored by the

Central Government with total outlay of Rs25, 000 under NADP. In Tamil Nadu,

1000 calves were sanctioned. Members who owned Buffalo calves between 4 to

10 months of age were eligible to obtain free feeding to animals, vaccination

treatment to the calves, free of cost. Insurance was given to calves, free of cost.

3.19.4 Integrated Dairy Farming (IDF)

This scheme was applied to milk Union of Madurai, Thanjavur and

Coimbatore districts. In the year 2008-09, 50 societies were selected and 50%

subsidy was given for purchasing milk animals. The purchase should be made at

other states. It must be centaralised purchasing. The seleted society should

constitute SHG with 25 members. Out of 25 members 5% should be SC category.

It was sponsored by the State Government.

80

3.20 Training Programme

A Training centre had been established under the OF-II project and it is

situated in the main diary complex of the Union. It has been functioning since

May 1986 and its main object is to conduct various training programmes for the

employees committee members and members of the societies. This training

facility is offered to the various categories of trainees of not only Madurai Union

but also other adjacent District Unions.

3.20.1Farmers’ Induction Programme

During the period of the OF-project this programme was directed towards

taking the presidents and board of directors of the primary dairy Co-operative

Societies to Anand to have an on-the-spot study of the implementation of Dairy

Development Schemes in ‘Amul’. This programme is dispensed with, instead, a

farmer orientation programme is conducted.

This is a one-day orientation programme and is conducted for nearly 20

milk producers attached to a dairy co-operative society. The milk producers are

taken to the training centre on the premises of the Union in Madurai. The Union

provides free transportation facilities to them and also refreshments and lunch.

They are oriented to the co-operative dairy industry.

The Union not only orients the milk producers but also the management

committee members of the dairy co-operative societies. The object of this

orientation course is to help the management committee members of the societies

to be aware of the functioning of the Union and to help them realize their

responsibilities in the proper functioning of the societies.

The management committee members of one or two societies are trained

at a time and the duration of the training programme is three days. The cost of

this programme is Rs. 390 per person and 60 per cent of the cost is borne by the

Union and 40 percent is borne by the related society. The trainees are given a

stipend of Rs 50 per day.

81

3.20.2 Employees’ Training

The various training programmes offered to the casual and regular

employees at present are artificial insemination and veterinary first- aid course,

refresher course and village dairy clerk training. At times, the secretaries are

refresher oriented in administration. When the societies are provided with milk

testers to test the quality of milk, the employees are trained to make use of them.

3.20.3 Artificial Insemination and Veterinary First-Aid Course

This course is offered to the casual staff of the dairy co-operative societies

who are known as village-level workers. The duration of the course is 30 days.

For each course, on an average 20 staff of 20 societies are admitted. The

significance of this course is that, these trained village-level workers are able to

help the milk producers by giving first- aid and artificial insemination to their

milch animals, without waiting for the mobile veterinary unit doctor. The cost of

this training is Rs 3,900 per person, of which, the Union bears 60 percent and the

society bears 40 percent. The trainee is given a stipend of Rs.50 per day.

3.20.4 Refresher Course in Artificial Insemination and Veterinary First Aid

This refresher course for the village-level workers who have already

undergone the original training. This refresher course is for 6 days.

3.20.5 Village Dairy Clerk Training

It is imparted to the village dairy clerks who rein charge of the

maintenance of accounts and are involved in other clerical work. The duration of

this training is 30 days. The cost of the training is Rs 3,900 per person and 60 per

cent of the cost is borne by the Union and the remaining 40 per cent of the cost is

borne by the related society. The trainees are given a stipend of Rs 50 per day.

3.21 Foot and Mouth Disease Control Project

Foot and Mouth Disease is a highly contagious disease of cattle and

buffaloes. Although it is not fatal, there is huge loss due to great reduction in milk

yield and inability of the affected animals to work. The main symptoms of the

disease are fever, diminished appetite, retarded rumination, decreased milk yield

and soreness of the mouth.

82

The Foot and Mouth Disease Project were originally implemented by the

Union with the help of the National Dairy Development Board under the OF-

Project. Vaccinations were administered to the milch animals of the producers,

free of cost for protection of the animals from this dreadful disease. From 1994-

95 onwards, the Union continues this project by spending its funds and collecting

a nominal charge of Rs 20 for every vaccination from the owners of the milch

animals. The Union carries out three rounds of these vaccinations every year for

all the milch animals attached to the milk producers’ societies. The mobile

veterinary unit doctors perform the vaccinations and in case of necessity, the

village level workers who are trained in it administer the vaccinations.

Table 3.10 gives the details of the number of Foot and Mouth disease

vaccination administered to milch animals of the societies during the period of ten

years from 2001 to 2010.

Table 3.10

Vaccinations Administered to the Milch Animals

Source: Unpublished Records of the Union

Year No. of Vaccinations Administered to the Milch Animals

2001 19600

2002 30075

2003 14550

2004 21135

2005 27840

2006 19835

2007 20040

2008 26355

2009 35000

2010 35000

83

It is clear from Table 3.10 that the number of vaccinations administered to

milch animals for the study period.

3.22 Subsidies and Loan Schemes of the Government

The Union acts as a channeling agent and enables the poor farmers, who

are members of the societies, to get the benefit of the various subsidies and loan

schemes of the Government. These schemes help the milk producers in owning

schemes and rearing more milch animals. The Union monitors these schemes and

takes up the responsibility of recovery of the loans from the beneficiaries.

3.23 Functional societies in the Union

One of the prime activities of the Union is organizing milk producers’ co-

operatives at the villages. The department of procurement and Input is

responsible for this function. It carries out this activity through the procurement

team officers and extension assistants. During flush seasons, i.e., December to

May, many milk producers come forward to offer their milk to the Union and this

gives a chance to the Union to organize more societies and they are registered

under the co-operative fold by the Deputy Registrar of co-operative societies.

Since 1983, the Union has been under the effect of Operation Flood I, II

and III with inherent financial assistance from the NDDB and the IDC, with this

finance, the Union was able to provide various facilities, like milk cans, registers,

books of accounts, advances, gifts and bonus to the milk producers and all these

motivated many of them to organize themselves into co-operative societies.

When a few of these facilities were withdrawn, after the era of OF, some milk

producers began to lose interest in dairy co-operatives. As a result these societies

remained non-functional and later became dormant.

It makes the union to have additional responsibility of reviving the

dormant societies through its constructive effort Union’s effort was successful to

some extent, many of them could not be revived and as per rules they got

liquidated, if it remains continuously dormant for more than three years.

Table 3.11 gives details of societies registered, dormant societies, revived

societies by the Union during the period of 10 years from 2001-10.

84

Table 3.11

Milk Co-operative societies in Madurai Aavin Union

year No. of registered

societies during the

year

No. of societies

declared dormant

during the year

No. of societies

Revived from

Dormancy during

the year

Madurai Theni Madurai Theni Madurai Theni

2001 28 19 32 16 32 30

2002 37 17 26 15 24 18

2003 26 11 11 19 17 19

2004 78 19 16 20 56 14

2005 37 32 22 20 18 26

2006 50 37 18 35 27 13

2007 18 15 23 Nil 7 3

2008 21 10 22 4 14 5

2009 18 10 46 Nil 9 25

2010 4 8 18 1 2 6

Source: Unpublished records of the union

Nil: societies not declared dormant / not revived.

It is evident from table 3.11 that there had been a regular increase in the

total number of societies till 2006, due to continuous formation of new societies.

During the year 2007, number of societies had dropped since many of the

societies were declared dormant and eventually got liquidated. From the year

2008, the union has been striving hard either to revive the dormant societies or to

organize new societies near the places of the dormant ones. But some of them

remain non-functional for a long time and they eventually become dormant if it is

not possible to revive them.

All the societies that exist are not functional throughout the year. During

lean seasons – i.e., July to October of the year, many societies remain non-

functional for a long time and they eventually become dormant.

85

Table 3.12 presents details of the number of functional societies in

Madurai Aavin Union during the period of 10 years from 2001 to2010.

Table 3.12

Functional Societies in Madurai Aavin Union

Year No.of.Functional societies

Madurai Theni

2001 337 264

2002 342 267

2003 379 271

2004 392 281

2005 432 341

2006 465 415

2007 490 438

2008 471 445

2009 475 410

2010 475 461

Source: Unpublished records of the union

It can be observed from Table 3.12 that the functional societies of the

union had been increasing gradually. Table 3.13 gives the trend and growth rate

of the functional societies of the union from 2001-10.

86

Table 3.13

Trend and Growth rate of Functional Societies

Madurai

Aavin

Union

Model Value of

Coeffiecient

Value of

constant

Compound

Growth

Rate

Value of

R2

Madurai Semi-log 0.0437 5.8043 44.71 0.8614

Theni Semi-log 0.0728 5.4584 75.61 0.8657

Source: Computed data

It is seen from table 3.13 functional societies of the Union during the

period of 10 years from 2001-10 has recorded a positive growth of 45 and 76

percent during the study period.

3.24 Women Dairy Cooperative Societies

In order to encourage the women members to contribute more to the dairy

sector, they are being called upon to organize women dairy cooperative societies

in their respective areas. There are 1210 women dairy cooperative societies

functioning in Tamilnadu.

Primary Milk Cooperative Societies and District cooperative Milk

Producers Unions and Federation were previously administered by elected

Boards. As the terms of office of the members of elected Board already expired

and as they were continuing only on extended term of office as per section 33(10)

(aa) of Tamilnadu Cooperative Societies Act, 1983, the Government issued orders

terminating the extended term of office of members of Boards of these societies

and the Special Officers have been appointed under section 89(1) of Tamilnadu

Cooperative Societies Act, 1983. All the primary Milk Cooperative Societies are

now functioning under the Control of Special Officers, since 26.5.2001. In respect

of District Cooperative Milk Producers Unions, the Collectors of respective

Districts have been appointed as Special Officers and for Tamilnadu Cooperative

Milk Producers Federation Ltd., the Managing Director of the Federation has been

appointed as Special Officer.6

6 www.Maduraiaavin.com

87

Table 3.14

Women Dairy Co-operative Societies in Madurai Aavin Union

Year No. of. Women Dairy

Co-operative Societies in

Madurai Aavin Union

2001 120

2002 123

2003 135

2004 142

2005 150

2006 156

2007 161

2008 167

2009 172

2010 180

Source: Unpublished records of the union

It is clear from table 3.14 that there is a constant increase in the women

dairy co-operatives in Madurai Aavin Union.

3.25 Members in Madurai Aavin Union

The excellent ground work done by the National Dairy Development

Board and the Integrated Cattle Development Programme almost two decades

ago. Through the OF- Project to convince farmers that dairy farming on scientific

lines could provide them with a very handsome source of income, have started

yielding results. Many farmers in Madurai District have taken to dairy farming

and have come under the co-operative fold since they are provided with a ready

market for their milk.

Table 3.15 shows the number of milk producers who are members of the

dairying co-operative societies who are functioning during the period of 10 years

from 2001 to 2010.

88

Table 3.15

Members in Madurai Aavin Union

Year

No.of.members of

Co-operative Societies

Madurai Theni

2001 35964 23850

2002 34812 23900

2003 35313 24010

2004 37287 24200

2005 37377 24311

2006 35445 24898

2007 37978 25432

2008 37506 25530

2009 38195 25699

2010 38460 25906

Source: Unpublished records of the union

It is evident from table 3.15 that initially there had been continuous

increase in the number of milk producers’ co-operative societies in their

respective village. Table 3.16 gives the trend and growth rate of the Members in

the Madurai Aavin Union from 2001-10.

89

Table 3.16

Trend and Growth rate of the Members in the Madurai Aavin Union

Madurai

Aavin Union

Model Value of

Coefficient

Value of

constant

Compound

Growth

Rate

Value of

R2

Madurai Semi-log 0.0094 10.4617 95 0.62101

Theni Semi-log 0.0104 10.0593 11 0.94939

Source: Computed data

It is seen from table 3.16 members in Madurai Aavin Union during the

period of 10 years from 2001-10 has recorded a positive growth of 95 and 11

percent during the study period.

3.26 Women Members in Madurai Aavin Union

The table 3.17 shows the number of women milk producers who are

members of the dairying co-operative societies function is under the Union during

the period of 10 years from 2001 to 2010.

90

Table 3.17

Women Members of Dairy Co-operative Societies

Year No.of.women members of

Co-operative Societies

Madurai Theni

2001 11280 15800

2002 11980 15825

2003 12880 15900

2004 13680 16200

2005 13420 16741

2006 14680 17140

2007 15620 17469

2008 14586 17519

2009 14700 17610

2010 15039 17802

Source: Unpublished records of the union

It is evident from table 3.17 that initially there had been continuous

increase in the number of women members in societies in their respective village.

In spite of the competition from the private sector, the number of milk producers

supplying milk to the societies is high. The societies buy all the milk offered by

the members and pay them a good rate of price for the milk and also provide them

a package of services, which are the main reasons for the milk producer’s

continuing as members of co-operatives.

Table 3.18 gives the trend and growth rate of the Women Members in the

Madurai Aavin Union from 2001-10.

91

Table 3.18

Trend and growth rate of the Women Members in the Madurai Aavin Union

Madurai

Aavin

Union

Model

Value of

Coeffiecient

Value of

constant

Compound

Growth

Rate

Value of

R2

Madurai Semi-log 0.0310 9.3555 3.158 0.8011

Theni Semi-log 0.0154 9.6429 1.561 0.9452

Source: Computed data

It is seen from table 3.18 women members in Madurai Aavin Union during

the period of 10 years from 2001-10 has recorded a positive growth during the

study period.

Source: Computed data

92

3.27 Women Self-Help Groups in Madurai Aavin Union

A self-Help group is a homogeneous group of 10 to 20 women. These

women select their own leader and also fix the tenure for such leadership. Self-

Help Groups are extremely helpful in allowing the NGOs to get to know a large

number of individuals intimately and to relate to them in a variety of ways

including facilitation credit availability. Self-Help Groups are also serving as

decentralized centres of administration for Non-Governmental Organizations, who

take the responsibility for forming this self-help group.7

Self-Help Groups can become an extra ordinary tool for women’s

empowerment provided, the nurturing agencies take care to design their

interventions to improve the confidence level of the members through better

participation in self-help group meetings and more interactions with outsiders.

Through this process, members develop communication skills and are able to put

forward their views confidently.

The self-help groups have emerged as an alternative model to help the

rural poor. The self-help groups are informal groups whose members pool their

savings and lend within the group on rotational need basis. They have a common

perception of needs and collective action.

The National Bank for Agricultural and Rural Development (NABARD)

had started a program of linking self-help groups with banks in 1992 on a pilot

basis. Since then, the scheme has established credit links with 16 Commercial

Banks and 12 Regional rural Banks and 15 Co-operative Banks.

Though the self help groups helped women to create several crores worth

of assets, they were not the owners of these assets but were passing them to the

men-folk. This trend should be reversed by creating awareness among women of

their true share in nation building. The co-operative movement provides for

economic emancipation especially for women through group action rather than

individual action. In Madurai Aavin there are totally 936 Milk producers’

societies and many self Help Groups for supplying milk. Procurement of milk

7 Ramarajan K.N op.cit.22

93

from SHG members was started in the year 2006. The table 3.19 shows number of

Self-Help Groups organised in Madurai Aavin Union.

Table 3.19

Women Self-Help-Groups in Madurai Aavin Union

Year No. of SHGs

2006 8

2007 264

2008 425

2009 515

2010 300

2011 261

Source: Unpublished records of the Union

The above table 3.19 shows that there were 8 SHG members supplying their milk

in the year 2006. It has increased gradually as 264 SHG in the year 2007 to 515

SHGS during the year 2009.

Madurai milk procurement activities are done through nine milk

.procurement teams located in Madurai, Usilampatty , Peraiyur, Melur, Vadipatti,

Chellampatti, Andipatty, Theni, Bodi. Involving women self-Help group

members as co-members of the Madurai co-operative Milk producers Union Ltd

had produced encouraging results as their contribution towards milk procurement

was 35,000 litres per day. But in the year 2010 and 2011, there is decrease in the

groups because of the non-payment of incentive of 0.50 paise per litre of milk

poured during the year 2008-09and 2009-10. This is the main reason for decline

in self-help group.

3.28 Milk Production through Self-Help-Groups

Milk produced by SHG members and Supply to Madurai Aavin Union

through them are shown in the table 3.20 were as follows:

94

Table 3.20

Milk Production through SHGs

Year Total production(litres per day)

2006 1200

2007 14850

2008 34850

2009 39650

Source: Unpublished records of the Union

The table 3.20 shows that the Milk Production in Madurai Aavin by the

Self-Help-Groups has increased gradually from 1200 litres per day in 2006 to

39,650 litres per day in 2009.

3.29 Procurement of Milk through Self-Help Groups

The procurement of milk from self-Help Group members for the year 2010

from Madurai and Theni District are shown below

Table 3.21

Procurement of Milk through SHGs in Madurai Aavin Union

Sl.No Name of the Team Total Milk Procurement

(Litres per day)

1 Madurai 2480

2 Melur 1895

3 Tirumnagalam 3690

4 Chellampatti 1670

5 Usilampatti 2415

Madurai Total 12150

6 Andipatti 17670

7 Theni 9015

8 Bodi 10592

Theni Total 37277

Grand Total 49427

Source: Unpublished records of the Union

95

The above table 3.21 shows that Madurai Aavin milk procurement

activities are done through eight milk procurement teams located in Madurai,

Melur, Thirumnagalam, Chellampatti, Usilampatty,Andipatty, Theni, Bodi. Self-

Help Group members are called as “LOYAL AMBASSADORS” under the

“clean milk” concept. Technical inputs had been provided to all the 340 women

SHG members to improve the quality of the milk procured. The number of SHG

members would be increased to 1000.

3.30. Attitude towards Dairy Co-operatives

Dairying is an important form of occupation of the Indian Farmers. As

any farming activity; dairy too has advantages and disadvantages in terms of

which the farmer develops an attitude towards it by virtue of many factors namely

benefit of technologies, input availability, risk involved, marketing facility and

supportive services. Such factors are therefore decisive for active formation of

milk co-operatives in their villages. The attitudes towards dairy co operative

among the respondents are analysed with the help of the attitude towards fifteen

variables related to dairy co operatives. In order to narrate the 15 variables into

meaningful descriptive statistics applied for further analysis. The mean

satisfaction and the standard deviation of the opinion are shown in below table

3.22.

Table 3.22

Descriptive Statistics for Attitude towards Dairy Co-operatives

S.No. Attitude Mean Std. Deviation

1. Opportunity to earn profit 4.1280 0.81051

2. Prevention of diseases 3.7060 0.81541

3. Cost of fodder 2.3300 0.96486

4. Availability of fodder 2.8540 0.89122

5. Availability of Insurance 3.7480 0.74941

6. Availability of high yielding animals 3.6800 0.99377

7. Facilities at Insemination centres 4.1560 0.83730

96

S.No. Attitude Mean Std. Deviation

8. Self employment 4.4420 0.58251

9. Reasonable income 3.5920 1.00177

10. Provision of employment 4.1620 0.74892

11. Availability of loans and advances 3.9840 0.87251

12. Veterinary services 4.1220 0.57600

13. Labour management 3.1720 0.94668

14. Enjoy the Dividend 4.0960 0.94688

15. Availability of Training 4.3900 0.70633

Source: Primary data

From the above table the statements with high agreement level are exhibited in

their means. The highest means were observed for the following statements

� Self employment, with a mean satisfaction score of 4.4420,

� Availability of Training, with a mean satisfaction score of 4.3900 and

� Facilities at Insemination centres with, a mean satisfaction score of

4.1560

The statements with low agreement level are exhibited in their means. The lowest

means were observed for the following statements

� Cost of fodder with a mean satisfaction score of 2.3300,

� Availability of fodder with a mean satisfaction score of 2.8540 and

� Labour management with a mean satisfaction score of 3.1720.

The highest variation in agreement was observed for the statement,

� Reasonable income, with a standard deviation of 1.00177,

� Availability of high yielding animals, with a standard deviation of

.99377 and

� Cost of fodder, with a standard deviation of .96486.

The lowest variation in agreement was observed for the statement,

97

� Veterinary services, with a standard deviation of .57600,

� Self employment, with a standard deviation of .58251 and

� Availability of Training, with a standard deviation of .70633.

3.31 Attitude of members towards the services of the society

Co-operative dairying has definitely enabled the socio- economic

transformation of the milk producers in the study area. But during the survey, the

milk producers have expressed that the facilities enjoyed by them during the

various phases of OF from 1983 to 1998 are withdrawn one by one. Hence the

opinions of the milk producers regarding the facilities provided by the dairy co

operatives are elucidated.

The dairy co operative structure has thrived in the study area for more than

27 years. The milk producers have been asked to express their opinions through a

set of questions in the interview schedule, as to whether they agree or to the

claims of the dairy co operatives in regard to the facilities provided by them. The

agreement level of the study respondents towards the services of the Union is

shown below.

Table 3.23

Attitude of Members towards the services of the Society

SERVICES SDA DA NANDA A SA

The society makes payment of milk

on the basis of fat and SNF and thus

we get a fair price for our milk

Count 0 0 20 290 190

% .0% .0% 4.0% 58.0% 38.0%

The Society provides ready market

for milk, it avoids middleman in

marketing milk

Count 0 0 18 232 250

% .0% .0% 3.6% 46.4% 50.0%

The Society collects milk at one’s

owns doorsteps, and we do not face

the problem of transportation.

Count 0 42 61 231 166

% .0% 8.4% 12.2% 46.2% 33.2%

The computed cattle feed of the

society improves the milk yield of

the animals

Count 0 28 89 225 158

% .0% 5.6% 17.8% 45.0% 31.6%

98

SERVICES SDA DA NANDA A SA

The Society gives training to later

developments

Count 3 12 88 207 190

% .6% 2.4% 17.6% 41.4% 38.0%

The Society helps getting the loans

and subsidies in time.

Count 26 56 93 174 151

% 5.2% 11.2% 18.6% 34.8% 30.2%

The veterinary doctors give all

necessary services to keep our

animals healthy

Count 16 32 62 229 161

%

3.2% 6.4% 12.4% 45.8% 32.2%

The emergency service doctors active

in time to serve the animals in

distress.

Count 0 0 34 284 182

% .0% .0% 6.8% 56.8% 36.4%

The Society is impartial in providing

the services to all

Count 9 21 75 251 144

% 1.8% 4.2% 15.0% 50.2% 28.8%

The cattle bought with the help of the

society are insured

Count 6 32 129 234 99

% 1.2% 6.4% 25.8% 46.8% 19.8%

Source: Primary data

The table above shows the percentage and number of persons reporting

strongly agree, agree, neither agree nor disagree, disagree and highly disagree. To

know the services that had high agreement and lowest agreement descriptive

statistics such as mean and standard deviation were calculated and is shown in the

table 3.20 below.

3.31.1. Descriptive Statistics for Attitude of members towards the services of

the society

The descriptive statistics mean and standard deviation for the agreement

level of the study respondents towards the services of the society is shown below.

99

Table 3.24

Descriptive Statistics for Attitude of Members towards the Services of the

Society

SERVICES MEAN STD.

DEVIATION

The society makes payment of milk on the basis of

fat and SNF and thus we get a fair price for our milk

4.3400 0.55228

The Society provides ready market for milk, it

avoids middleman in marketing of milk

4.4640 0.56687

The Society collects milk at one’s own doorsteps,

and we do not face the problem of transportation.

4.0420 0.88872

The computed cattle feed of the society improves the

milk yield of the animals

4.0260 0.84780

The Society gives training to later developments 4.1380 0.82966

The Society helps getting the loans and subsidies in

time.

3.7360 1.15628

The veterinary doctors give all necessary services to

keep our animals healthy

3.9740 0.99564

The emergency service doctors active in time to

serve the animals in distress.

4.2960 0.58743

The Society is impartial in providing the services to

all

4.0000 0.87723

The cattle bought with the help of the society are

insured

3.7760 0.87827

Source: Primary data

100

From the table 3.24 the agreement of the women towards services rendered by the

Union was high with regard to

� The Society provides ready market for milk, it avoids middleman

in marketing of milk, with a mean agreement score of 4.4640,

� The society makes payment of milk on the basis of fat and SNF

and thus they get a fair price for them milk, with a mean agreement

score of 4.3400 and

� The emergency service doctors active in time to serve the animals

in distress, with a mean agreement score of 4.2960

The agreement was low with regard to

� The veterinary doctors give all necessary services to keep their

animals healthy with a mean agreement score of 3.9740,

� The cattle bought with the help of the society are insured with a

mean agreement score of 3.7760 and

� The Society helps getting the loans and subsidies in time with a

mean agreement score of 3.9740.

The highest variation in agreement was observed for the statement,

� The Society helps getting the loans and subsidies in time., with a

standard deviation of 1.15628,

� The Society collects milk at one’s own doorsteps, and they do not

face the problem of transportation, with a standard deviation of

.88872 and

� The cattle bought with the help of the society are insured, with a

standard deviation of .87827.

The lowest variation in agreement was observed for the statement,

� The society makes payment of milk on the basis of fat and SNF

and thus they get a fair price for their milk, with a standard

deviation of .55228,

� The Society provides ready market for milk, it avoids middleman

in marketing of milk, with a standard deviation of .56687 and

� The emergency service doctors active in time to serve the animals

in distress, with a standard deviation of .58743.

101

3.32 Summary

The ‘Anand pattern’ has a three tier structure with the Co-operative milk

producer’s Societies at the gross roots, milk Co-operative Unions at the district

level and the Co-operative milk federation at the state-level. While the Co-

operative milk producers’ Societies are primarily engaged in the procurement of

milk, the district-level Union is entrusted with the critical task of providing a

remunerative market for the milk, safe transportation of milk from the places of

production and conversion of milk into products for enhancing its marketability

and such other activities for the betterment of economic and social conditions of

the milk producers.

The Madurai District Co-operative milk producers’ Union Ltd., which is at

the intermediary level of the three-tier structure, involves itself in all the activities

conducive for the dairy development in the milk – shed area comprising of

Madurai and Theni districts. The Union had an early origin in the year 1938 as a

small milk supply society but got raised to the status of a Co-operative Dairy

Union in 1983. Since then, its contribution to Co-operative dairying has been

noteworthy.

The Madurai Aavin Union has the credit of being one of the few Unions

selected for co-operative dairy development during the operation flood project,

phase-I. The Union is found to have made the best use of financial and

administrative assistance received under the Operation Flood Project. Many dairy

co-operative societies were organized and numerous milk producers and milch

animals were brought under the co-operative ambit. There was considerable

increase in the quantity of milk procured, processed and marketed by the Union.

The Union provided various input services like artificial insemination, veterinary

services and supply of cattle feed, thereby enabling the milk producers to have an

economically viable occupation, dairy farming.

In Madurai Aavin Union, participation of women is seen not only in

women dairy co-operatives societies but also in General societies, Aadidravidar

societies. The self-Help-Groups in the Union have gradually increased from 8

groups to 515 groups in the year 2009. They supply 49,427 litres of milk per day

102

to Madurai Aavin. The researcher analyses the attitude of the members towards

dairy co-operative through Descriptive statistics. The highest agreement of

attitude towards dairy co-operative is self employment, training facilities,

Artificial Insemination centres. The attitude of the sample respondents towards

the services rendered by society are the highest agreement score to the society

provides ready market for their milk, payment of milk, doctors are actively

serving in emergency period. Thus, it shows Maduari Aavin Union played a

significant role to the society members.