The Birth of Amul Essay Example
The Birth of Amul Essay Example

The Birth of Amul Essay Example

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  • Pages: 3 (637 words)
  • Published: March 9, 2017
  • Type: Essay
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The Kaira District Cooperative Milk Producers’ Union Limited was registered on December 14, 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.

These agents arbitrarily decided the prices depending on the production and the season Angered by the unfair and manipulative trade practices, the farmers of Kaira District approached Sardar Vallabhbhai 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. Thus the

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Kaira District Cooperative was established to collect and process milk in the District of Kaira in 1946. The Cooperative was further developed & managed by Dr. V Kurien along with Shri H M Dalaya.

The first modern dairy of the Kaira Union was established at Anand (which popularly came to be known as AMUL dairy after its brand name). Indigenous R&D and technology development at the Cooperative had led to the successful production of skimmed milk powder from buffalo milk – the first time on a commercial scale anywhere in the world. The foundations of a modern dairy industry in India were thus laid since India had one of the largest buffalo populations in the world. Management The Amul Model is a three-tier cooperative structure.

This structure consists of a Dairy Cooperative Society at the village level affiliated to a Milk

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Union at the District level which in turn is further federated into a Milk Federation at the State level. The above three-tier structure was set-up in order to delegate the various functions, milk collection is done at the Village Dairy Society, Milk Procurement & Processing at the District Milk Union and Milk & Milk Products Marketing at the State Milk Federation. This helps in eliminating not only internal competition but also ensuring that economies of scale is achieved Village Dairy Cooperative Society (VDCS)

District Cooperative Milk Producers’ Union (Milk Union) State Cooperative Milk Federation (Federation) Dr. Verghese Kurien He was the chairman of the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF). GCMMF is an apex cooperative organization that manages the Amul food brand. He is recognised as the man behind the success of the Amul brand. Amul had a revenue of $1b USD in 2006-07. Kurien helped modernise Anand model of cooperative dairy development and thus engineered the White Revolution in India, and made India the largest milk producer in the world he was posted as a dairy engineer at the government creamery, Anand, in May 1949.

Around the same time, the infant cooperative dairy, Kaira District Co-operative Milk Producers' Union (KDCMPUL), now famous as Amul -- was fighting a battle with the Polson Dairy, which was privately owned. Young Kurien, fed up with being at the government creamery, which held no challenge, volunteered to help Shri Tribhuvandas Patel, the Chairman of KDCMPUL, to set up a processing plant. This marked the birth of AMUL. Kurien has since then built this organization into one of the largest and most successful institutions in India.

The Amul pattern of cooperatives

had been so successful, in 1965, then Prime Minister of India, Shri Lal Bahadur Shastri, created the National Dairy Development Board (NDDB) (NDDB) to replicate the program on a nationwide basis citing Kurien's "extraordinary and dynamic leadership" upon naming him chairman. Kurien also set up GCMMF (Gujarat Cooperative Milk Marketing Federation) in 1973 to sell the products produced by the dairies. Today GCMMF sells AMUL brand products not only in India but also overseas. He quit the post of GCMMF Chairman in 2006 following disagreements with GCMMF management.

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