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The Erode District Cooperative Milk Producers' Union Limited is a replica of the District Milk Unions in Gujarat State based on the famed "AMUL" system. The Erode Milk Union is, therefore, sandwiched in the middle of the 3-tier system popularly known as the "ANAND" or "AMUL" pattern consisting of an apex State level Federation at Chennai, the Unions at the district level and the primary cooperative societies at the village level.

The Erode Milk Union was registered on 07,02 1975 and started functioning on 1.01.1976. 1ts Area of Operation became the entire Erode District. Milk is now supplied from 749 primary milk cooperative societies to the Feeder Balancing Dairy directly, and through the chilling centers at Sankarndampalayam, Sathyamangalam and Thalavadi. Cattle Feed is being manufactured at the Cattle Feed Plant at Erode.

The entire project has been funded by the National Dairy Development Board, Anand through the Government of Tamilnadu and the Tamilnadu Co-operative Milk Producers' Federation. The Project has been funded under the nationwide Operation Flood Programme with an aim to bring about a socio economic awakening in rural India.

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