Question

Make a project of two cooperative institutions



e.G.Milk cooperative etc with a view to compare the organizational and financial structure of the organizations production capacity and output,marketing strategies,sales,market share etc for 1

Answer 1

Explanation:

The lower the user's switching costs, the: more intense the competitive pressures posed by substitute products. Whether supplier-seller relationships in an industry represent a strong or weak source of competitive pressure is a function of: whether demand for supplier products is high and they are in short supply.

Answer 2

Answer:

Operation Flood and dairy co-operatives emerged in India as the largest rural employment scheme, enabling the

modernization of the dairy sector to a level from where it can take off to meet not only the country’s demand for milk

and milk products but can also exploit global market opportunities. This study reviews the existing status of milk

marketing and dairy co-operatives in India and provides recommendations to meet future challenges. The results of

the study indicate that 80 percent of the milk produced by the rural producer is handled by an unorganized sector and

the remaining 20 percent is handled by an organized sector. It is found that the dairy co-operatives play a vital role

in alleviating rural poverty by augmenting rural milk production and marketing. Involvement of intermediaries; lack

of bargaining power by the producers; and lack of infrastructure facilities for collection, storage, transportation, and

processing are the major constraints which affect the prices received by producers in milk marketing. Milk quality,

product development, infrastructure support development, and global marketing are found to be future challenges of

India’s milk marketing.

Dairying is a centuries-old tradition for millions

of Indian rural households; domesticated animals

have been an integral part of the farming systems

from time immemorial. Milk contributes more to

the national economy than any other farm com-

modity—more than 10.5 billion dollars in 1994-95

(Dairy India 1997). In the context of poverty and

malnutrition, milk has a special role to play for its

many nutritional advantages as well as providing

supplementary income to some 70 million farmers

in over 500,000 remote villages (Dairy India 1997).

More importantly, the farmers earn an average 27.3

percent of their income from dairying, with as high

as 53 percent for landless and as low as 19 percent

for the large farmers (Table 1).

Annual milk production in India has more than

tripled in the last three decades, rising from 21 mil-

lion tons in 1968 to an anticipated 80 million metric

tons in 2001. This rapid growth and modernization

is largely credited to the contribution of dairy co-

operatives under the Operation Flood (OF) Project,

assisted by many multi-lateral agencies including

the European Union, the World Bank, Food and

Agriculture Organization (FAO), and World Food

Program (WFP). Despite the impressive growth in

milk production in the last three decades, produc-

tivity of dairy animals remains very low (Table 2)

and milk-marketing systems primitive. Currently,

more than 80 percent of the milk produced in the

country is marketed by unorganized sectors and

less than 20 percent by the organized sector. The

organized sector involves government and co-op-

eratives; the unorganized sector involves private

organizations.

Marketing of the majority of the milk through

unorganized sectors is likely to dissuade small dairy

farmers from expending production, which is abso-

lutely necessary to keep up with the strong demand

growth. In a recent study, Datta and Ganguly (2002)

estimated Indian milk demand for 2020 under vari-

ous GDP growth rates. The study reported that if the

current growth continues for the next twenty years

(the nation has been growing at a rate between 5 and

7 percent over past five years), milk consumption

is likely to more than double by 2020.

This paper examines the existing status of milk

marketing in India and analyzes the constraints and

opportunities in milk marketing. The first section

reviews background information on milk production

and discusses the existing milk-marketing system

in India. Following this, Operation Flood and its ef-

fects on milk marketing—particularly through dairy

co-operatives—are discussed. Finally, constraints

and the opportunities in the existing milk-marketing

system are discussed and proposed policy implica-

tions are highlighted.

Milk-Marketing System