Role of dairy Cooperative in Rural Livelihood and Women Empowerment

Role of dairy Cooperative in Rural Livelihood and Women Empowerment

Ranjana Sinha¹, Deep Narayan Singh², Soni Kumari³ and Suchit Kumar¹

• Assistant Professor, Livestock Farm Complex, BVC, BASU, Patna
• Associate Professor, Livestock Farm Complex, BVC, BASU, Patna
• Assistant Professor, Animal Genetics and Breeding, BVC, BASU, Patna

Dairy cooperatives have become the largest rural employment scheme in India. They have allowed the dairy industry to upgrade to meet the country’s demand for milk and milk products and to take advantage of opportunities in the global market. India is currently the world’s largest producer of milk, with a total production of 239.30 million tonnes of milk and 10.25 million tonnes of meat (BAHS, 2024). The annual increment in milk production is 3.78 % over the previous year (BAHS, 2023). Dairy cooperatives have been found to play an important role in reducing the rural poverty by improving milk production and marketing in rural areas. The main factors influencing the prices that producers obtain in milk marketing include the involvement of middlemen, the producers’ lack of negotiating strength, and the absence of infrastructure facilities for collecting, storage, transportation, processing and marketing. The dairy sector plays a vital role in providing nutritional and economic security in India, particularly for rural households, while also promoting women’s empowerment, as dairy farming is primarily a women-centric activity. Millions of rural people today rely on dairy farming as a vital secondary source of income, especially marginal and female farmers, for whom it provides essential employment and income-generating opportunities. The cooperative movement in the Indian dairy industry is solely responsible for this quick and steady expansion.

Additionally, this industry offers prospects for self-employment, especially for women and underprivileged populations. The dairy industry provides a direct and indirect source of income for 8.4 million small and marginal farmers each year, of whom 71% are women. This indicates that the industry is essential to the empowerment of women and inclusive growth. The expansion of the dairy industry in developing nations has the potential to improve women’s educational achievement and reduce the gender gap.

Contribution of Dairy Cooperative in development of India

Dairy cooperatives in India are organized according to the three-tiered Anand design. Its primary organization is the local milk producers’ cooperative society, which is followed at the top by the milk union and milk federation. Village-level dairy cooperative societies serve two purposes: some are operational (milk trading and input services) and others are managerial (forming the society in accordance with by laws, deciding on policy issues, and creating guidelines for the effective operation of the society). The second tier, the Milk Producers’ Cooperative Union, is responsible for the following functions include procuring, processing, and marketing milk and milk products, organizing and supplying macro-level inputs such as cattle feed, animal health and breeding care, etc.; and organizing training and education for the members of the dairy cooperative society, the board members, and the milk union’s managers and employees. The third tier, the State Milk Marketing Federation, is primarily responsible for the broader marketing of milk and dairy products. It also oversees production planning and manages the State Milk Grid, which facilitates the efficient movement of milk across the state. Additionally, it coordinates with the state government, central government, the National Dairy Development Board (NDDB) and other relevant agencies to ensure organized policy implementation and sectoral development.

In India, women make up the majority of the dairy enterprises. Women have unquestionably historically assisted with dairy and animal husbandry responsibilities in addition to their usual domestic duties. Currently, dairy cooperatives are thought to be the most important step for enhancing the rural milk marketing system, raising the farmers’ portion of consumer rupees and empowering the rural population especially women. The strategy that led to the establishment of a significant number of Women’s Dairy Cooperative Societies (WDCs) at the village level was instrumental in promoting women-focused initiatives. These WDCs were envisioned not only as platforms to enhance women’s participation in the dairy sector and generate additional income but also as formal spaces where women could collectively address a range of issues, including social, personal and community-related concerns.

Key Benefits of Dairy Cooperatives

1. Stable Income for Farmers: Dairy cooperatives ensure that farmers receive regular and fair payments for the milk they supply. By eliminating middlemen and establishing transparent pricing systems, cooperatives protect farmers from market volatility and exploitation. This stable source of income, often on a daily or weekly basis, helps small and marginal farmers meet household needs, invest in better livestock care, and improve their standard of living.
2. Women Empowerment: Dairy cooperatives play a crucial role in empowering rural women by actively involving them in milk production, collection and cooperative management. Women-led dairy cooperative societies provide platforms for income generation, skill development and leadership opportunities. Enhance participation of women in income-generating activities and decision-making.
3. Training and Capacity Building: Training and capacity building play a crucial role in strengthening the operational efficiency and sustainability of dairy cooperatives in India. By equipping farmers, cooperative members, and dairy professionals with modern knowledge and skills such as clean milk production, animal health management, feeding practices, breeding techniques, financial literacy, and governance these initiatives enhance milk productivity, improve product quality, and ensure better market linkages. Capacity-building programs also help cooperatives adopt new technologies, ensure compliance with quality standards, and promote inclusive growth in the dairy sector.
4. Collective Bargaining Power: One of the core strengths of dairy cooperatives is their collective bargaining power, which enables small and marginal dairy farmers to negotiate better prices for their milk and access essential inputs at lower costs. By pooling resources and operating as a unified entity, cooperatives reduce the influence of middlemen and private players who often dominate the supply chain. This collective approach not only ensures fair pricing for producers but also facilitates access to credit, veterinary services, feed, and market information, ultimately improving the economic well-being and sustainability of rural dairy farmers.
5. Efficient Milk Procurement and Marketing: Milk is a perishable commodity, and its procurement and marketing require a streamlined and efficient supply chain to ensure quality, minimize losses, and maintain profitability. Efficient milk procurement and marketing systems are crucial for dairy farmers, cooperatives, processors, and retailers alike. Ensure organized collection, processing, and sale of milk and dairy products. The size of the Indian dairy market was approximately ₹13 lakh crore in 2021 and is projected to grow to around ₹31 lakh crore by 2027. Liquid milk sales by cooperative dairies reached approximately 427 lakh litres per day in the year 2023–24, compared to 411.53 lakh litres per day in 2021–22, marking an increase of 3.76%.
6. Social Development: Dairy cooperatives play a significant role in promoting social development in rural India. By fostering inclusive participation, especially of women and marginalized communities, they empower individuals and promote social equity. These cooperatives often function as platforms for collective decision-making, skill development, and leadership training, leading to stronger community engagement and self-reliance. Additionally, the income generated through dairy activities supports better access to education, healthcare, and nutrition, thereby contributing to the overall well-being and upliftment of rural households. In many regions, dairy cooperatives have also helped reduce rural-urban migration by creating sustainable local livelihoods.
7. Food and Nutritional Security: Milk and milk products are nutrient-dense food, it is a vital part of the Indian diet and plays a key role in addressing malnutrition among populations. Dairy cooperatives contribute significantly to rural development by providing a stable and regular source of income to milk producers. This financial stability empowers rural households to improve their livelihoods and access broader development opportunities, such as education and healthcare. Moreover, dairy cooperatives are entrusted with maintaining the safety and quality of milk through rigorous quality control measures, including systematic testing, hygienic collection practices, and advanced processing infrastructure.

Innovations:

In addition to the creation and strengthening of milk processing, value addition, and chilling facilities, a wide range of other supporting infrastructure is also being developed and enhanced to support the dairy sector. These comprehensive investments aim to create a robust and sustainable dairy ecosystem that enhances productivity, improves quality, reduces operational costs, and ensures long-term resilience.

• Cattle feed and feed supplement plants
• Milk transportation systems such as refrigerated vans and insulated tankers
• Marketing infrastructure, including e-market platforms, bulk milk vending systems, milk parlours, deep freezers, cold storage units, and commodity/cattle feed godowns
• Information and Communication Technology (ICT)systems, such as blockchain technology, data servers, IT solutions, and near-real-time monitoring devices
• Renewable energy infrastructure and energy-efficient systems, including tri-generation (trigen) plants, ensuring that energy generated or saved is directly utilized to reduce operating costs of existing processing plants, Bulk Milk Coolers (BMCs), or milk collection centers
• Packaging support, including PET bottle and other packaging material manufacturing units for dairy purposes
• Training Centre with complete civil infrastructure and supporting facilities
• Support for organic milk production
• Research and Development (R&D) initiatives to foster innovation and sustainability in the dairy sector

Scope

Currently, the dairy cooperative network covers approximately 35% of villages across India, and the organized dairy industry is growing at a steady rate of about 10–12% per year (AMUL, 2019). However, despite this progress, there remains a lack of national uniformity in the reach and effectiveness of dairy cooperatives. The states such as Gujarat, Goa, Maharashtra, Karnataka, and Tamil Nadu have developed strong cooperative marketing structures. In contrast, Himachal Pradesh has the weakest cooperative framework, followed by Haryana, Bihar, Madhya Pradesh, and Punjab. These regional variations highlight the influence of both internal and external factors such as governance, policy support, infrastructure, and farmer engagement on the development and success of dairy cooperatives and the broader dairy industry.

Women Empowerment

Women constitute about fifty percent of the poor and the majority of those who take care of animals. Women compose about two-thirds of the 600 million impoverished livestock keepers in the world, and most of them live in rural areas (FAO, 2023). Women play a crucial role in small-scale production, particularly in providing for the nutritional needs and earning a living for the family. According to the assessment, women participated more in livestock production activities overall than men did in all regions with the exception of marketing. Similarly, livestock revenue is positively and significantly impacted by women’s age, animal ownership, involvement in livestock activities, access to input markets, and education. By empowering women to access resources including livestock ownership, easy loans, market access, non-farm earning options, training, and knowledge, women’s participation can be significantly more productive. In rural areas, women perform around 90% of the duties involved with raising animals, such as feeding, cleaning, and milking. It is estimated that women do 70% of the activities associated with livestock.

Role of women in dairy farming

Women are key contributors to dairy farming worldwide, especially in rural and developing regions. They participate at every stage of the dairy value chain from caring for animals to processing and marketing dairy products. Women are often responsible for daily feeding, watering, and maintaining the cleanliness of dairy animals. In many regions, especially in developing countries, women primarily handle the milking of cows and buffaloes. They detect signs of illness or distress in animals and often administer basic first aid or veterinary care. Women may be involved in tracking the reproductive cycles and assisting during calving. Dairy farming has been recognized as a significant opportunity for women’s empowerment because farming and livestock rearing are the primary employment opportunities in rural areas. In an attempt to increase their income and make better use of their labour pool, farmers have turned dairy farming into a secondary enterprise. This decision has a big impact on women’s empowerment.

Dairy is vital to the livelihoods of impoverished women in rural India because it provides them with a practical means of achieving economic independence and social advancement. Dairy cooperatives are crucial for promoting inclusion and providing small-scale farmers, particularly women, with an opportunity to earn a living. The dairy sector in India is dominated by women since women have long played a crucial role in dairy farming and raising livestock. Despite their substantial contributions to dairy farming, women are often overlooked, and their roles remain undervalued and underrecognized. Studies have shown that women tend to devote more time to dairy-related activities than their male counterparts. This disparity underscores the urgent need to acknowledge and support women’s participation in the dairy sector not only to enhance their economic independence, but also to advance broader goals of social justice and gender equality. Empowering women in dairy cooperatives through leadership opportunities, capacity-building programs, and fair access to resources is essential for creating an inclusive and equitable agricultural system.

Women Dairy Cooperatives

Agriculture remains the primary occupation in rural India, where the majority of the population resides, and is closely linked to bovine cultivation. Historical records and scriptures underscore the cultural and economic significance of cattle, with domestication traditions tracing back over 8,000 years. India is currently the largest milk producer in the world, contributing 23% to global production and 52% to Asia’s total output. The dairy sector is the largest agricultural commodity in the country, accounting for over 26% of agricultural GDP and more than 5% of the total GDP.

Dairy cooperatives are widely recognized as a vital mechanism for improving milk marketing systems in rural areas and for empowering rural women. These cooperatives offer efficient marketing services, allowing milk producers to obtain fair prices for their products. Indian policymakers have strategically focused on involving women in dairy cooperatives as a pathway to socio-economic development. Women play a pivotal role in the dairy sector, contributing more than men, with approximately 85% of those engaged in dairying being women. Women also share strong emotional bonds with livestock, often regarding them as integral members of the family. A women-centric approach was adopted as part of the broader strategy, involving the establishment of a substantial number of Women Dairy Cooperative Societies (WDCS) at the village level. The primary objective was to promote WDCS as a means of generating supplementary income for women, while also providing an organized platform to address personal, social, and community-related issues. These cooperatives were envisioned as central hubs for implementing various women-focused development initiatives. The goals of WDCS were not only to provide rural women with economic benefits, but also to equip them with knowledge and skills in forming and managing village-level cooperatives. Additionally, the initiative aimed to provide training in the scientific management of milch animals. Through this process, women could engage in experiential learning, draw meaningful conclusions, and contribute to their own capacity building.

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