Amul, now a billion dollar Co-Operative enterprise

Anand (Gujarat), June 23 : Gujarat Co-operative Milk Marketing Federation (GCMMF) popularly known for its products brand name Amul has become India's first billion dollar co-operative unit after touching the record annual turnover of Rs. 5,255.41 crores (52.554 billion rupees).

It has registered quantum growth of 22.9 per cent with an increase of nearly Rs.1,000 crores (10 billion rupees) in absolute terms over the previous fiscal year.

Besides, the GCMMF, the apex marketing body of 13 district milk unions of Gujarat having a membership of at least 27 lakh (2.7 million) milk producers has reached another milestone by processing almost one crore litres of milk in a single day.

This success was announced on the 34th annual General Body meeting by GCMMF held at Anand recently while reviewing the annual performance.

"Last fiscal (2006-07) our milk procurement represented a growth of average 13 to 14 per cent with average milk collection of 7.5 million litres per day. During peak procurement period, we have successfully demonstrated to process almost 10 million litres of milk per day. With this, our sales turnover has gone up by 15 to 20 percent and we have crossed a sales turnover by almost rupees 52.55 billion. This shows an increase of rupees 1,000 crores (10 billion rupees). We are constantly doing equally well and hope to post similar growth in the upcoming years," said B.M. Vyas, Managing Director of Gujarat Co-operative Milk Marketing Federation (GCMMF).

During the fiscal year, Gujarat Co-operative Milk Marketing Federation has done remarkably well in most value added consumer products in which Amul milk pouches have been considered the largest contributor to the turnover with sales up by 48 per cent in value terms.

Ultra Heat Treated (UHT) milk has also shown an impressive growth of 60 per cent.

Sales in the flavoured milk segment rose by 39 per cent while the processed Amul cheese and Amul cheese spread recorded a growth of 27 per cent and 39 per cent respectively.

The dairy whitener Amulya also recorded a growth of 20 per cent and the infant milk powder named Amulspray recorded higher sales of 19 per cent.

Despite a stiff competition from multi national companies (MNCs) in butter category, Amul managed to register double-digit growth in value.

In tune with the lifestyle trends, GCMMF has focussed on healthier life products.

Amul calci plus and Amul shake are new innovative UHT milk category which will hit the market soon.

"Level playing is that our farmers should be protected from subsidies export which may take place from developed world into India. If the duties are lowered, a lot of export subsidies exist in agriculture and when you allow such commodities to come into India with duty free it damages Indian agriculture where our production falls down. And we need the shelter to import and maintain supply," said Vyas.

"So we need to correct things if the exporting country subsidizing their agriculture corresponding import duty should be there so that Indian farmers have level playing field," he added.

Today, being the largest milk-producing nation in the world, India is also self-reliant in terms of milk products. However, we do not have buffer stock mechanism for dairy commodities in India.

Vyas suggested if the country can maintain and consolidate this achievement, the policy makers must put in place an effective buffer stock mechanism for dairy commodities alongside proper management of demand and supply equation from milk products.

Another secret of GCMMF's success could be attributed to its policy of supporting farmer owned organisations and giving them all their dues.

Recently World Bank has initiated to replicate Amul's model in African countries for their co-operative dairy development, which has shown a remarkable growth. By Ami Sharma

ANI