A confluence of political will, professional expertise, technological deployment and an eye for marketing lifts India from a land of milk deficit to the world's largest milk producer
On 15th August 1947, as India gained independence, her shoulders were burdened with poverty, malnutrition, growing population and unemployment. Milk deficiency was one of the several characteristics that described India as a developing nation. But over the years, with concerted efforts on dairy development, we saw dairying emerge as a strong fall-back option for the rural economy by providing livelihoods and creating wealth for millions of farmers over the following decades. The growth story of Amul and that of India's dairy sector correspond to the growth story of India at 75.
Early years of revolution
In the initial years of independence, India struggled with increased population and stagnating milk production, which was at around 17-20 million tonnes annually.
The British policies had complicated India's local milk businesses with policies supporting the private sector or middle-man-oriented business structures that emboldened private monopolies such as Polson, who exploited small milk producers. The political leaders and farmer representatives felt the need for a revolution, and thus the idea of cooperative dairying was born in
1946 under the guidance of Sardar Vallabhbhai Patel and cooperative leader Tribhuvandas Patel, who formed Amul.
The primary business idea behind this was cooperation. Suppose farmers want a reasonable price for their produce. In that case, they should not just produce it but also aggregate, add value and market it under their brand, and own the entire supply chain of "cow/buffalo-to-consumers" to bring efficiencies, affordability and maintain profitability. This holds for Amul even today.
The Kurian era
The cooperative was formed, but something was missing — professional input and the approach to running a successful business enterprise. In 1949, Dr Varghese Kurien was brought-in, and his contribution brought the remarkable results that we see today. Although the seed was sown by the farmer leader Tribhuvandas Patel, it was nurtured by a professional like Dr Kurien, who made it a large banyan tree.
The leaders of that time wouldn't have thought about what Amul could do, what Dr Kurien could do, or what India could do for the world in the dairy space. At 75 years, we see the strength of cooperatives as a business model for the economic development of 'Bharat' in India.
For Amul, a significant turning point came when Dr Kurien and his colleague, Shri HM Dhalaya, developed milk powder from buffalo milk in the early 1950s. This was followed by cheese and baby food production from buffalo milk. Such use of technology gave Amul an edge over the multinationals. This was one of the initial commercial breakthroughs riding on technological innovation and efficiencies and translated into profitability for the dairy and its milk producers. It became a self-sustaining model.
The leaders of that time wouldn't have thought about what Amul could do, what Dr Kurien could do, or what India could do for the world in the dairy space. At 75 years, we see the strength of cooperatives as a business model for the economic development of 'Bharat' in India.
For Amul, a significant turning point came when Dr Kurien and his colleague, Shri HM Dhalaya, developed milk powder from buffalo milk in the early 1950s. This was followed by cheese and baby food production from buffalo milk. Such use of technology gave Amul an edge over the multinationals. This was one of the initial commercial breakthroughs riding on technological innovation and efficiencies and translated into profitability for the dairy and its milk producers. It became a self-sustaining model.
Source: How co-operative dairying made India, the cream of the world (thehindubusinessline.com)
