Dairy co-op turnover touches Rs 11,000 cr

The combine business turnover of the cooperative sector dairies touched Rs 11,000 crores in 2004-05. This follows an impressive 15 per cent growth in the total milk collection of these dairies which rose to a record 20 million kg per day during the year.

This has been revealed in the annual report of the National Dairy Development Board (NDDB), the apex cooperative sector dairy promoter which enjoys the public financial institution status. It has invested close to Rs 2000 crores to build the dairy capacities in the cooperative sector in various states.

The main brands floated by the dairy cooperatives include Amul, Nandinin, Aavin, Vijaya, Milma, Parag, Saras, Verka, Vita and Sudha. The bulk of the additional milk collection during the year was processed into dairy products. The sale of liquid milk rose only by about five per cent.

The report points out that the NDDB's support for clean milk production was extended to 5,663 villages in 2004-05. The total villages covered by dairy cooperatives by the end of the year were 31,991.

The NDDB continued to provide technical support to cooperative milk unions across the country, adding new processing infrastructure and expanding the existing facilities. Support was also provided to various dairy cooperatives to launch consumer education campaigns on the benefits of consuming pasteurised milk.

The Delhi Mother Dairy continued to supplement the sales promotion efforts of the other cooperatives by marketing milk and milk production sourced from them. The largest cooperative sector milk products brand, Amul, has begun aggressive marketing of liquid milk as well.

The report points out that significant drop in lending rates resulted in a decline in the yield on the NDDB's investments. The total surplus amount in 2004-05 was estimated at Rs 55 crores. The NDDB has expressed its willing to render financial and technical assistance for setting up new generation cooperatives.