Compfed-case study
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COMPFED, the Bihar state milk co-operative federation, has seen a decline in milk procurement over the last two years, adversely affecting profits. This is due to issues like a decrease in milk supply, rising penetration of private players and middlemen, and shifting consumer demand. The document discusses COMPFED's distribution system and recommendations to address the procurement problem by attracting new farmers, improving infrastructure, promoting packaged dairy products, and increasing women's participation in village cooperatives.
Compfed-case study
- 1. COMPFED: Diary Distribution System By Ansh Aggarwal Nivedita Subbaram Varun Balakrishnan
- 3. • India is the largest milk producing country in the world also known as oyster of global dairy industry. • The Bihar state milk co-operative federation ltd (COMFED) was established in 1983 as the implementing agency of operational flood programme of dairy development on “Anand pattern” in Bihar and Jharkhand . • COMFED has been marketing milk and nearly 20 different kinds of milk related product under the brand name SUDHA for over 20 years. • The marketing manager of COMFED realized that milk procurement has gone down drastically over last two years which has caused and adverse affect on overall profit of the state federation.
- 4. • Some of the problems it faced are decline in milk supply , rising penetration of middleman, non state private players , and shift in consumer demand. • Earlier co-operative system operated on two-tier, after 1974 the three tier co-operative system began to operate on a two tier structure. • COMFED’S unique services i) artificial insemination ii) animal health program iii) cattle feed iv) socio economic activities v) training and development
- 6. • Why has the procurement of milk gone down? • How does the penetration of middlemen/private players hinder the profits of COMPFED? • Why cannot COMPFED retain their existing farmers as members and governance of cooperatives ? • What should COMPFED do to attract new farmers? • The role of infrastructure • The distribution system of COMPFED has to be looked upon, what can be done?
- 8. 131.5 147.4 157.3 127.8 89.6 156.2 162.8 173.6 136.9 114.8 0 20 40 60 80 100 120 140 160 180 200 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 VP DR
- 9. 1500 1135 240 67.06 44.67 9.673% 24% 65% 0 200 400 600 800 1000 1200 1400 1600 trihut Shahbad Vikaramsheel Co-operations Memebrs Capacity Utilization
- 10. How does a typical distribution channel look like? Urban farmers Village Coopera tives Unio ns Distrib utors Retail ers Consu mers Rural farmers Village Coopera tives Unio ns Distrib utors Retail ers Consu mers Unoffi cial Vendo rs Co-operative Channel Private PlayersFarmer s Small Agents Contrac tors Private Dairies Retail ers Distrib utors
- 12. • Shelling out initial higher amount for the benefit of the farmers and at the later stage can reduce their bonuses. • Making consumers aware of the benefits of the packaged Dairy products both in Urban and in Rural areas to increase the per capita consumption. • Should extensively promote Tetra pak. • Should have more women members at the higher organizational level in villages. • Should hold annual meetings to retain the farmers and also to attract new farmers.