NDDB

National Dairy Development Board

National Dairy Development Board

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IIFT Part Time 2009-12 IIFT Part Time 2009-12

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1.

1. CASE SCASE S

UMM

UMM

RY

RY

2.

2. CASECASE

HI

HI

ORY

ORY

 Organization Structure  Anand Model

 Operation Flood (White Revolution)

 Model Extension to Other Industry Sectors

3.

3. CC

ON

ON

U

U

ION

ION

 Managerial  Analysis  Managerial Challenges  Managerial Thrust areas

Dairying is a major industry in India:

O

ver 70% of the country's rural households are

engaged in it, making India the second largest

milk

p

roducer in the world, next only to the

United States of 

 A

merica. Milk is also one of 

the very im

p

ortant agricultural commodities in

the country. Hence, the significance of the

dairy sector in India's national economy can be

acce

p

ted without much ado. It is in recognition

of this significance that the central government

has been making efforts to boost the sector.

CASE

 1940²Only private dairies

 1945²Formation of Bombay Milk Scheme at Anand

 1946²Kheda District Cooperative Milk Producer Union Ltd

(KDCMPUL) was formed as the first cooperative society

 1955²KDCMPUL changed its name to Anand Milk Unit Ltd

( AMUL)

 1959²Delhi Milk Scheme launched by Government in DELHI but

it failed in 1960

 1965²Establishment of NDDB at Anand, headed by Dr.

Verghese Kurien

 1965-70²Generated funds by selling European sur plus dairy

products through its cooperatives²Thus a serious threat to end the dairy development movement of Country was converted in to an opportunity

 1970²NDDB launched ³Operation Flood´ which is called White

revolution

 1987²NDDB merged with IDC (Indian Dairy Cooperation), but

retained the name NDDB.

CASE

NDDB

 A cooperative movement

 Unique model of Organization, innovation and

development

 Effective and efficient human resource management

S

_{trategic Goal:}

 Promote, finance and support producer-owned and controlled organizations.

 Strengthen farmer cooperatives

 Support national policies that are favorable to the growth of such institutions.

CASE

A_dopting A_{nand Model}

 Scientific and Professional

Management of V_ertically

integrated structure

ORGANIZATION

STRUCTURE

Distt. Milk Producers Distt. Milk Producers

Union Union

Distt. Milk Producers Distt. Milk Producers

Union Union Primary Village Primary Village Cooperation Cooperation Primary Village Primary Village Cooperation Cooperation Disst. Milk Disst. Milk Producers Union Producers Union Primary Village Primary Village Cooperation Cooperation Primary Village Primary Village Cooperation Cooperation

Features of A_{nand Model}

 Provide support to milk producers

 Ensuring the interests of small producer member   Optimal use of human resources, material and M/C¶s

S_ocio E_{conomic Benefits}

 Generates Employment opportunity

 Women participation to increase household economy and

increase in living standard of their families

 Increased percentage of children going to school

S_{uccessful due to}

 Commitment to the Cooperative system  Professional management

 Efficient and committed top management

Objective:

 Capture a commendable share of its milk market.

 Increase share of milk price obtained by the producers

 Reduce the cost of milk for consumers

 Long term investment in dairying and cattle

development

 Create a nationwide µmilk grid¶

 Increase milk production ("a flood of milk")

 Augment rural incomes

PROCESS IMPLEMENTATION PHASE-I (1970-1978) PHASE-II(1978-1985) PHASE-III(1985-1996)

OPERATION FLOOD

(cont¶d)

 A

id from

O

utside



Food aid (from Euro

p

ean Economic

Community countries) of 126,000 MT

skimmed milk and 42,000 MT butter oil

Results of 1st

Phase-

Milk

p

roduction increased to 32 MT from

20 MT



NDDB created 27 rural milk-sheds in 10

states

OPERATION FLOOD

(cont¶d)

_{Phase 1 (1970-78)}

 A

id from

O

utside

 150 million US $ from World bank

 Food aid (from EEC) of 216,584 MT skimmed milk

and 62,402 MT butter oil.

Results of 2nd

Phase- NDDB created 136 rural milk-sheds

 NDDB created urban milk centers in 22 states.  NDDB established 43000 village cooperatives.

OPERATION FLOOD

(cont¶d)

_{Phase 2 (1978-85)}



Rs. 4.89 billion from its own

p

ocket

 A

id from

O

utside

 365 million US $ from world bank

 Food aid (from EEC) of 75,000 MT skimmed milk

and 25,000 MT butter oil.

Results of 3rd

Phase- NDDB created 290 Urban milk markets covering 15

million population

 Established 6000 women-only cooperatives across

India.

OPERATION FLOOD

(cont¶d)

_{Phase 3 (1985-96)}



Q

uote from World Bank

³

Op

eration Flood had clear benefits for the

p

oor and Women. Individually it has

ex

p

anded the number of children attending

school because of the high income elasticity

of demand for education in Indian villages´

OPERATION FLOOD

(cont¶d)

Model Extension to Other Industry

Sectors



1979-90²Edible

O

il

DH

 A

R

 A

brand

1986²Forestry

NWDB (National

Wasteland and Develo

p

ment board), a

tree grower¶s coo

p

erative



1987²Salt Producing (Sabarmati Salt

Farmer's Society)



1988²Fruits and Vegetables

CONCLUSION

The Dairy Board's programmes and activities seek to strengthen the functioning of Dairy Cooperatives, as producer-owned and controlled organizations. NDDB supports the development of dairy cooperatives by providing them financial assistance and technical

expertise, ensuring a better future for India's farmers.

Macro Impact

Dairy cooperatives generate employment opportunities for farm families.

Livestock contributes about 25.4 per cent to the GDP from agriculture.

MANAGERIAL ANALYSIS

ST

_R

_NG

_H

_{of NDDB}

_R

_NG

_H

_{of NDDB}

 Sensitivity to events

 Problem solving and creativity

 Involvement of Women and Youth often among the

poorest during both planning and implementation stages

 Innovation

 Bulk-vending - saves money and the environment.

 Milk travels as far as 2,200 kilometers to deficit areas, carried

by innovative rail and road milk tankers.

 Automatic Milk Collection Unit and Bulk Milk Cooler at grass

root level ± preserve quality and reduce post-procurement losses.

MANAGERIAL 

CHALLENGE

Market o

p

ened to

p

rivate sector 

ovt ector  rivate sector  Coop ector 

MANGERIAL THRUST

AREAS





Strengthening the coo

Strengthening the coo

p

p

erative frame work

erative frame work

 QQ

uality and

uality and

p

p

lant management

lant management



Productivity enhancement

Productivity enhancement



National information network.

National information network.

Balanced learning habits



Relevant

p

rofessional knowledge

T

_H

A

_{NK YOU!}

T

_H

A

_{NK YOU!}