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Cooperative – Private Partnership

Shri Harsev Singh
Chief Executive (Dairy Business), RIL

History of dairy development

  • Treta & Dwaper era – river of milk flowed.
  • Lord Krishna era – Gwalens were selling milk in Mathura
  • 1500-2000BC – Aryan were first to domesticate cattle for tilling and milk -Priced milk more than meat and forbade slaughter – Domesticated buffaloes

History contd.

  • 1929-30 Polson Dairy
  • 1945 - Aarey Milk colony
  • 1946- AMUL
  • 1970 - Operation Flood
  • 1990s - Glasnost and prestroika in dairy industry - liberalisation
  • 1990s – Milk & milk products order.

History contd.

  • Mushroom growth of private dairies
  • Tried to en-cash the inefficiencies of coops.
  • Tried to maximize the profit by ignoring farmers and consumers.
  • Indulged in unethical practices
  • Increased incidences of adulteration / synthetic milk.

What is Partnership?

  •  Partnership is
  •  Built on the expertise of each partner
  • To meet the clearly defined goals for each of the partners
  • Win-win situation for each partner

Why Partnership

  • To leverage on the strengths of each other
  • To ensure efficiencies and maximize returns to the stake holders
  • To exploit the advantage of being the highest milk producing country with competitive milk production cost in the world
  • To ensure safety and well being of the countrymen
  • To use local resources effectively and jointly develop the cattle wealth.

cenario in other countries

  • Partnership of Coopavel and Embrapa dairy in Brazil for adoption of new     technologies.
    In US, Rodale Institute, the Atlantic Dairy Coop a farmer owned marketing coop representing 40 % of the dairies in southeastern Pennsylvania , the Chesapeake Bay Foundation, Pennsylvania Association for Sustainable Agriculture, and Penn State Have formed Dairy Network Partnership to reduce the pollution problem.
  • After the Uganda turmoil, Uganda dairy business, which reduced to shambles was built up with private and Land O' Lakes Cooperative partnership by using various methods to improve the dairy industry.
  • Nestle and Kraft have tied up with coops of respective countries in Europe and USA for their milk requirement.
  • World wide coops are actively involved in private label manufacturing for MNCs.

Ongoing partnership activities in India ???
What can be future strategy?

  • Amendment in Coop Act to enable coops to have partnership with private sector. - Govt. to encourage this partnership
    - To some extent Company Act provides some solution - a step in the right direction
  • Areas of cooperation
    - Coops can be excellent suppliers for milk to private dairies.
    - Coops can do private labeling for private sector companies.

Future strategies...
- Coops can share their under utilized processing facilities with private sector plants.

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