India Dairy

Value chain and model

Under the model, the entire value chain – from procurement, to processing and marketing – is controlled by the farmer’s cooperative, which is directly linked to the final customer (see Figure 1). There are no middlemen; the cooperative collects the milk directly at the producers’ doorsteps.The model envisages that democratic elections are held every three years, to elect the members of the management committees who, in turn, elect the chairman. This ensures an active participation of farmers in decision-making, as well as transparency and democratic management.Membership is open to anyone who owns at least one cow and is able to provide at least 700 litres of milk per year. The final price of Amul products are decided by GCMMF, which conducts market surveys on aspects including the costs of milk, labour, processing, packaging, advertising, transportation and taxes.amul value chain