Amul - a Case Study

Topics: Milk, Powdered milk, Dairy Pages: 24 (7620 words) Published: September 17, 2012

Adopted Company:

Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF) - AMUL

The business the company is into:
Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF) is India's largest food product marketing organisation with annual turnover (2011-12) US$ 2.5 billion. Its daily milk procurement is approx 13 million lit (peak period) per day from 16,117 village milk cooperative societies, 17 member unions covering 24 districts, and 3.18 million milk producer members. -------------------------------------------------

A brief introduction to the history of the company:
The Kaira District Co-operative Milk Producers' Union was registered on December 01, 1946 as a response to exploitation of marginal milk producers by traders or agents of existing dairies in the small town named Anand (in Kaira District of Gujarat). Milk Producers had to travel long distances to deliver milk to the only dairy, the Polson Dairy in Anand. Often milk went sour as producers had to physically carry the milk in individual containers, especially in the summer season. The prices of buffalo and cow milk were arbitrarily determined. Moreover, the government at that time had given monopoly rights to Polson Dairy to collect milk from Anand and supply it to Bombay city in turn. Angered by the unfair and manipulative trade practices, the farmers of Kaira District approached Sardar Vallabhbhai Patel (who later became the first Deputy Prime Minister and Home Minister of free India) under the leadership of the local farmer leader Tribhuvandas Patel. Sardar Patel advised the farmers to form a Cooperative and supply milk directly to the Bombay Milk Scheme instead of selling it to Polson (who did the same but gave low prices to the producers). He sent Morarji Desai (who later became Prime Minister of India) to organize the farmers. In 1946, the farmers of the area went on a milk strike refusing to be further oppressed. Thus the Kaira District Cooperative was established to collect and process milk in the District of Kaira in 1946. Milk collection was also decentralized, as most producers were marginal farmers who were in a position to deliver 1-2 litres of milk per day. Village level cooperatives were established to organize the marginal milk producers in each of these villages. The Cooperative was further developed and managed by Dr.Verghese Kurien along with Mr H.M Dalaya. Dr.Kurien, a World Food Prize and Magsaysay Award winner, was the pioneer of this White Revolution. The first modern dairy of the Kaira Union was established at Anand. Indigenous research and development and technology development at the Cooperative had led to the successful production of skimmed milk powder from buffalo milk for the first time on a commercial scale anywhere in the world. The success of the dairy co-operative movement spread rapidly in Gujarat. Within a short span five other district unions - Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were organized. In order to combine forces and expand the market while saving on advertising and avoid a situation where milk cooperatives would compete against each other it was decided to set up an apex marketing body of dairy cooperative unions in Gujarat. Thus, in 1973, the GCMMF was established. The Kaira District Co-operative Milk Producers’ Union Ltd. which had established the brand name Amul in 1955 decided to hand over the brand name to GCMMF (AMUL). Impressed with the development of dairy cooperatives in Kaira District and its success, Lal Bahadur Shastri, the then Prime Minister of India during his visit to Anand in 1964, asked Dr. Kurien to replicate the Anand type dairy cooperatives all over India. Thus, the National Dairy Development Board was formed and Operation Flood Programme was launched for...
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