NDDB developing Business Plan to revive MP state dairy cooperative

The Madhya Pradesh Cooperative Dairy Federation (MPCDF) aims to revitalize the financially distressed Gwalior and Jabalpur milk unions by leveraging the expertise of the National Dairy Development Board (NDDB). The NDDB is currently preparing a comprehensive business roadmap for the MPCDF, with the report expected to be delivered by the end of August.

As part of a memorandum of understanding signed with the MPCDF in July, the board will provide technical guidance and share its extensive knowledge with the dairy federation of Madhya Pradesh.

"We are optimistic about the revival and modernization of the Gwalior and Jabalpur plants through this collaboration," said Dr. Satish Kumar, managing director of MPCDF. "NDDB is expected to present a detailed business roadmap for bolstering the dairy cooperative sector and reviving operations at the loss-making units by the end of August."

Business Plan making by NDDB

The business plan devised by NDDB will emphasize upgrading and strengthening the cooperative dairy sector by implementing state-of-the-art measures.

The Gwalior milk union collects approximately 22,000-25,000 liters of milk per day from three districts, with around 18,000 liters per day being consumed through the sale of packaged milk. "Despite having six districts, milk collection only occurs in three," said Anurag Singh Sengar, CEO of Gwalior Sahakari Dugdh Sangh. "We have a powder plant but have been unable to utilize it due to insufficient milk collection. The primary factors contributing to lower milk collection in the region are quality concerns and the disinterest of farmers, who prefer selling to other states such as Maharashtra, Delhi, Uttar Pradesh, and Rajasthan."

NDDB's involvement is seen as crucial in addressing these challenges. The collaboration is expected to introduce best practices and innovative solutions to improve milk quality and increase farmer participation in the cooperative system.

Financial Challenges

Dr. Kumar expressed confidence that with NDDB's expertise, the Gwalior and Jabalpur milk unions would not only overcome their current financial difficulties but also become models of success for other cooperatives in the region. "This initiative will not only help in reviving the operations but also in enhancing the overall efficiency and profitability of the dairy sector in Madhya Pradesh," he added.

The MPCDF hopes that the successful implementation of NDDB's business roadmap will encourage more farmers to participate in the cooperative system, thereby increasing milk collection and optimizing the utilization of existing facilities like the powder plant.

The collaboration between MPCDF and NDDB represents a significant step towards modernizing the dairy industry in Madhya Pradesh, ensuring sustainable growth and better livelihoods for dairy farmers in the state.