Analyzing the effectiveness of a Dairy Cooperative/The cost of Milk Production

Agricultural cooperatives have been a unique way of addressing the concerns of the producers and consumers regarding pricing, storage, marketing, and other such activities of bringing the commodity to the market. One of such sectors is the dairy, where there are cooperatives in both the developed and developing countries. Amul Dairy, a milk cooperative in India is, synonymous with quality of its milk and milk products as well as fair prices to both the consumer and producer. In this paper, we examine the effectiveness of Amul by comparing the procurement prices offered by the dairy cooperative to the cost of producing milk. We must caution about the conclusions that we draw from this project as the study is conducted in only one village out of the many where Amul operates.