Farmers-owned milk producer firms are expected to triple ₹18,000cr in the next five years.
According to the National Dairy Development Board (NDDB), milk procurement by milk producer firms, which are owned by farmers, is expected to nearly triple and reach ₹18,000 crore in value over the next five years.
According to Meenesh Shah, Chairman of the National Dairy Development Board (NDDB), milk production businesses procured milk worth ₹5,575 crore previous fiscal year, and this figure is expected to triple to over ₹18,000 crore in the next five years.
He also informed the board that NDDB, through its subsidiary NDDB Dairy Services, will assist the establishment of more milk producer companies around the country.
Shah was speaking at the IDF World Dairy Summit 2022, which was held in Greater Noida, Uttar Pradesh, from September 12 to 15.
‘The startup notion may have arrived suddenly, but the milk producer companies have been working for a long time,’ he remarked.
According to Shah, over 750,000 farmers, including more than 70% women, have established approximately 20 producer-owned businesses.
‘Since the formation of the first farmers’ association, the number has grown to 20. Until the latest fiscal year (2021-2022), farmer members were paid a whopping ₹27,500 crore in exchange for milk supplied to their respective organizations’ Shah stated.
Some of these milk producer companies also launched value-added dairy products under his leadership.
At the conclusion of the previous fiscal year, 18 of these 20 farmer-owned organizations were active and procured nearly 40 lakh liters of milk each day. Milk production businesses are projected to purchase 100 lakh liters of milk per day during the next five years.
These farmer organizations return up to 85% of sales revenues to members, including almost 5 lakh women. Twelve of the 18 operational entities are entirely owned by women members.
According to the statement, Shreeja Milk Producer Company is the world’s first and largest all-women farmer organization, located at the foothills of the sacred Balaji temple in Tirupati.