Dairy co-ops compete for the huge milk market in Goa
Goa state now has two dairy co-ops competing for its market with the news that Gujarat Co-operative Milk Marketing Federation, which trades as Amul, is opening a processing plant in the region.
In January, the government of Goa granted Amul permission to set up a dairy production unit – the state’s second development of this scale – in a bid to reduce dependence on milk imports.
Goa Dairy, the Goa state milk producers’ co-operative union, also runs a production plant, and counts 165 of the state’s 175 milk-supply societies as members. It is a major milk supplier in the state, selling 85,000 litres per day.
However, Goa is currently only producing 40,000 litres of milk per day, while demand is estimated at 450,000 litres.
New player Amul – India’s largest food products marketing organisation – includes 17 member unions and sells 12 million litres of milk per day in India.
It entered Goa for the first time in 2013 but will now be buying milk directly from farmers in Goa. It has pledged to invest in infrastructure for farmers and provide veterinary services.
The government of Goa will also provide weight-monitoring and milk-testing equipment to every society in the state to help improve production. The initiative forms part of India’s animal wellness programme and its National Dairy Plan.
Also known as Mission Milk, the plan aims to double the country’s milk production to meet the growing demand – with India already the world’s biggest producer and consumer of milk.
In March, Goa Dairy challenged the government’s decision to let Amul build a production plant in Goa on the grounds that Amul was not a multi-state co-operative.
In 1984, Goa Dairy signed an agreement with the National Dairy Development Board stating that no other dairy business would be allowed to carry out a similar activity in Goa. However, the Bombay High Court’s judgement has sided against the petition filed by Goa Dairy.