Comparative Performance of Cooperatives and Producer Companies in Member Producer’s Income Enhancement: A Case Study of the Milk Sector in Indian Punjab

Abstract

Small producers’ participation in milk collectives such as dairy cooperatives and producer companies is seen as one of the several ways to institutionalize the dairy value chains and leverage their production and marketing strengths. In this context, the study has explored procurement practices of a dairy cooperative vis-à-vis producer company that have recently ventured into direct procurement, processing and retailing of the milk in Indian Punjab and understood their economic impact on the milk producers in Indian Punjab. The findings of the study suggest that both the milk collectives offer higher prices to the producers, resulting in higher profitability than their counterpart non-member milk producers. The findings of the study suggest that the milk collectives need to take additional responsibilities in terms of advancing credit, introducing new production technologies to increase milk productivity and encouraging participation of women milk producers to make such linkages inclusive, effective and sustainable.