BEDROC did a milk chain analysis among the existing milk producers and found villages were rich in natural fodder, and transportation of milk, better feeds and veterinary care for cattle to improve productivity, better prices for milk produced and most importantly, marketing of milk to further markets at higher prices were the issues that need to be addressed.10 milk societies were planned on the Anand pattern and federated as a district level body registered as Nagai Milk Producers’ Company Ltd under the Producer Company Act. The first of these societies were set up in early July with a membership of 53 milk pouring members that soon rose to 93. The total membership also saw a rise from 153 to 173.

Collection that began with 110 liters soon averaged 250 liters and the total cash paid out, fortnightly, for milk value to producers in July was Rs.99, 000. Since procurement price was quality based, it served as an incentive for milk producers to feed and care for their cattle better so the quality of milk reaching the collection centre improved from 3.5% to 4.6% fat.

Each collection centre has milk testing equipment for quality checks and other facilities for book keeping and accounting. The collected milk will be brought to the society and payment made based on the aggregate quality.

In the planning process, it was assumed the collection centre would collect maybe 100 litres per day but when the society began functioning, the collection rose to 250 litres. BEDROC also engaged in social mobilisation and many farmers signed up as members.