Nagapattinam is a cattle friendly, paddy growing area with an immense potential for organizing dairy collectives and developing a vibrant dairy industry. It lacks centralized support structures like access to organized milk markets, veterinary care and access to feed and fodder. Most of the milk produced is consumed locally and/or bought by private agents at Rs.12 to 14 per liter and sold at Rs.18 to 26. Most milk producers are small farmers with one or two low-yielding cows leading to a dependency on private milk collectors due to the negative economy of scale.