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The  Tamilnadu Cooperative Milk Producers  Federation Ltd. constituted on the 1st February 1981 is handling the entire commercial activities of procurement, processing and marketing of milk and milk products.  The Federation had implemented the Dairy Development activities with the funds provided by  the National Dairy Development Board under Operation  Flood  Programme in 24 Districts and in Non-operation Flood Districts Dairy Development activities are implemented by the Dairy Development Department through budgetary support both under State/Central Plans.  To facilitate, better administration and qualitative improvement of integrated Dairy Development, there are 17 Districts Cooperative milk Producer’s Unions  covering all 28 Revenue Districts except Chennai.  The Districts covered under each Cooperative Milk Producers’ Union is furnished below.


1. Kancheepuram 2. Villupuram 3. Vellore 4. Dharmapuri
5. Salem 6. Erode 7. Coimbatore 8. Madurai
9. Dindigul 10 The Nilgiris 11 Tiruchirappalli
12  Thanjavur  13. Pudukottai.


1. Sivagangai 2. Virudhunagar 3. Tirunelveli
4. Kanniyakumari

The  normal activities of milk procurement and distribution are being attended to by the District Unions.  However, for genetic improvement of milch animals, the production of frozen semen both for white cattle and black cattle is carried out by the Federation through the two bull mother farms owned and managed by TCMPF.  The Federation also owns four Dairies, one at Ambattur with a capacity of 4.00 lakh litres per day, one at Madhavaram with a capacity of 1.75 Lakh Litres per day,  a Third Dairy at Sholinganallur with a capacity of 4.00 lakh litres per day.  These dairies cater to the processing, packing and distribution of liquid milk in and around Chennai City.  The fourth dairy, a product dairy art Ayyanavaram with a capacity of 12,000 litres per day. is engaged in the manufacture of milk by-products such as Yoghurt, Icecream, Butter Milk and khova.

 The Federation supervises and   coordinates the activities of the District Unions and provides technical expertise as and when required and also undertakes planning and erection/expansion of Dairies and Chilling Centres of the unions on turnkey basis.  The Federation helps the Unions in marketing their milk products like Skimmed milk powder, Ghee, Butter and Cheese both within and outside the state.


TCMPF procured an average of 16.65 LLPD of milk during 1999-2000.  During the current year (i.e. 2000-2001) up to December 2000 the average procurement of milk has increased to 17.00 LLPD. Keeping in view the increased cost of input and Technical Assistance needed for milk production and other expenses for maintenance of milk cattle by the farmers, procurement price payable  to milk producers was revised from 07.04.98  as follows.

Type of Milk Per Kg.  FAT     Rs. P. Per LitreRs.  P
Buffalo Milk From 35.00  to          156.28 From  9.45   to
Cow  Milk From  57.74    to
From   7.51  to


In order to benefit the farmers in Tamil Nadu by providing a remunerative price in the milk procurement, the selling price of milk  was also increased from 16.4.98 as detailed below:

Type of Milk Card Cash  Through A.V.M 
Tonned Milk Rs.10.50 Rs.11.00 Rs.10.50
Standardised Milk Rs.13.00  Rs.13.50 Rs.12.50



The Chennai Dairies have marketed an average of 7.19 Lakh Litres of Milk Per Day  to the consumers during the current year (2000-2001) up to    December ‘2000. Milk is sold in bulk to institutional consumers and to individual consumers through 196 Automatic Vending Units (A.V.M), 182 Fibre reinforcement plastic (F.R.P.) tanks and in sachets through 512 booths and 34 parlours.  34 Consumers Cooperative Societies are functioning in and around Chennai supplying milk to consumers.

       To  cater to different needs  of consumers, the Federation  sells the  following type  of milk to consumers in Chennai metro.

1. Standardised milk .    4.5% Fat and 8.5%S.N.F(Solid Not Fat)
2. Tonned   Milk               3%   Fat  and 8.5% S.N.F
3. Full Cream Milk       6%   Fat  and 9% S.N.F.

          Gone are the days of controlled distribution of milk cards to the metro consumers.  Now Aavin milk cards are available liberally to the consumers throughout the month.   Apart from the above, 5 litre milk cards are also being issued to the tea shop / canteens and to the retail outlets through the city zonal offices. Further, sale of milk has also been introduced through Milk Distributors in Chennai.  At present 25 Nos. of Milk distributors have been appointed and around 70,000 litres of milk per day is being despatched to the milk distributors. Federation also cater to the need of consumer by booking special orders for the supply of milk in connection with marriage functions etc.


 Of   the 17 District Unions, Salem, Erode, Madurai,  and Dharmapuri  unions have   Feeder Balancing Dairies.  Surplus milk  in other District unions after meeting the local sale, commitment to Chennai metro and conversion of milk for reconstitution are being diverted to the nearest Feeder Balancing Dairies and converted into products.  The Feeder balancing dairies (FBDs) are producing butter, Skim milk powder (SMP) and ghee from the surplus milk, after meeting the liquid milk demand.

Apart from these products, Cheese is being manufactured at Nilgiris Union, Milk, Flavoured Milk and Mavin mango drink in Tetra packs are being manufactured at Salem union and fun products like ice cream, yogurt, khova are manufactured at Ayanavaram Dairy, Chennai which is under the control of the Federation.  The Federation under the brand name “Aavin” markets the product.  The fun products are sold under  “Aavin goodness”.  The Aavin branded products are agmarked as far as ghee and butter are concerned and ISI certified for SMP and Cheese.

Marketing of the products in Chennai metro and suburbs are directly carried out  by the Federation.   Distribution network includes parlours, Franchise retails outlets (FROs), Wholesale dealers and Milk Consumer Cooperative societies. The details of milk product sold through  CF  Agents,    Bulk  sales  and

Chennai Metro during the year 1999-2000 and 2000-2001 (upto Dec’2000) are furnished below.

S.No Products  1999-2000
2000-2001(up to Dec’2000)
1.  SMP 5146 3544
2. BUTTER 3592 2524
3. GHEE 4414 2954


The Milk Producer’s Cooperative societies are being formed at village level.   In these societies only the “Milk Producers” are enrolled as members.  Milk produced by these members is collected everyday both morning and evening and payments are made to them on ‘quality basis’.   After testing the milk supplied by each member, individually, payment is made at approved rate.  The animals owned by the producer members are provided with animal health cover at the door steps of the members by the Veterinary Assistant Surgeons of the Veterinary Units, procurement teams and input wings. Breeding covered through artificial insemination is also provided at a nominal rate.

In addition to the above the following major activities are undertaken by the TCMPF Ltd / DCMPUs.

a) Provision of veterinary health cover to animals owned by the members of milk cooperatives, implementation of artificial insemination programme, supply of balanced cattle feed and induction of farmers to modern animal husbandry practices.  All these activities are aimed at upgrading the milch animals and thereby improving their productivity in the long run.

b) Provision of necessary infrastructure, for a large scale procurement, processing and marketing of milk.  This will include establishment of chilling centres, pasteurization plants and modern marketing system, to meet the requirements of the consuming public.


The Federation maintains the NJF at Udhagamandalam, which according to a report of the NDDB stand second among the Operation Flood project stations all over India. Frozen Semen Station of exotic and cross breeds are being produced at NJF, Udhagamandalam.  The Buffalo Semen Station is  functioning  at Erode and Murra buffalo frozen semen straws are being  produced in this Centre.

         PROGRAMME (in Lakh  Nos.)

INPUT PROGRAMME 1999-2000 2000-2001(up to Dec’2000)
Animal under Co-operatiave Ambit 14.20  14.13
Artificial Insemination done  10.55  10.75
Cases treated 8.80 6.70
No of Regular Veterinary units 101 101
No. of Emergency units 35 35
No. of Female calves born 1.13 1.06
Frozen semen straws produced 13.25 9.60
Buffalo frozen semen straws produced 1.35 1.45


 There  are  schemes for the issue of subsidy and loan for the purchase of milch animals under Adi Dravidar Welfare, Adi Dravidar converted into Christianity and Special Central Assistance Scheme(THADCO).  During  the year  1995-96 the unit  cost  of milch animals was Rs.6,000/- out of which a sum of Rs.3,000/- as subsidy and remaining Rs.3,000/- as loan was disbursed to beneficiaries.  The unit cost of milch animal has been increased by the Government from Rs.6,000/- to Rs.12,000/- per animal during the year 1999-2000 resulting in enhancement of subsidy form Rs.3,000/- to Rs.4,000/- per animal for the above scheme (The balance Rs.8,000/- is the loan component).  These schemes are implemented with funds from Government of Tamilnadu and the   Tamilnadu   Adi  Dravidar  Housing  and  Development.    The  details of theprogress made in the above schemes are furnished below.

Year No. of Beneficiaries No. of Animals Inducted Amount Santioned
(In Lakhs)
1998-1999 1358 2716 81.48
1999-2000 6018 12036 481.44*
2000-2001 1018 2036 81.44**

* Rs.400 lakhs for 10,000 Milch animals are awaited from THADCO.
 ** Proposal sent to Government.


 Due to lack of proper feeding to heifer calves in the early ages, which lead to delayed maturity, conception  and calving, the poor farmer are forced to rear the calves without any marginal return which is a loss to the farmers. In order to help the farmer by providing proper feeding to young calves at its earlier ages, the above scheme is being implemented. Under this Scheme, a sum of Rs.10680/- is being provided as 100% subsidy to each beneficiaries towards feed cost of Rs. 10,440/-, Insurance Rs.200/- and Health cover Rs.40/- . During the year 1999-2000, a proposal to enhance the feed cost (Rs.12180/-), Insurance (Rs.200/-)  and health cover (Rs.40/-)  totaling   Rs.12,420/-   has  been   sent   to Govt. and orders are awaited.

Year No.of Beneficiaries No. of Calves enrolled Amount Santioned
1998-1999 2000 2000 213.60
1999-2000 1350 1350 167.67*

* Proposal sent to Govt.


From the year 1998-1999, Milch animals are also supplied to the members of backward classes and minorities with funds from National Backward class Development Corporation and Tamilnadu Backward Class and Minorities and economic Development Corporation. A sum of Rs. 24,000/- was disbursed to theBenifcia -ries as loan for the purchase of 2 milch animals (Rs.12000/- each). The scheme is in operation from 1998-99 only.

During the current year (2000-2001), the loan for the purchase   of  2 milch animals had been enhanced from Rs.24,000/- to Rs.30,000/- (Rs.15,000/- each). The progress under the above scheme is as follows.

Year No. of Beneficiaries No.of Milch Animals Loan Paid
(Rs in Lakhs)
1998-1999 2000 4000 456
1999-2000 2000 4000 456



National Dairy Development Board, Anand have introduced operation Flood schemes in the country and funded various Dairy Development projects in Tamilnadu during the end of previous millennium.  All the projects funded by NDDB under Operation Flood have been completed in Tamilnadu.  NDDB has now come with a new scheme called “Perspective Plan – 2005” Under Vision 2010.for the first five years of the new millennium to provide financial assistance to the Federation and unions.  The significant features of the scheme are improving productivity, quality management at all levels.

TCMPF had submitted a consolidated proposal seeking financial assistance to the tune of Rs.220 crore from NDDB to improve and to provide additional infrastructure facilities in Federation and all the District Union Dairies to be implemented in the next five years.  A team consisting of Hon’ble Ministers for Dairy Development, Transport and Highways, MD, TCMPF and the Deputy Milk Commissioner (Co-operation) , DDD visited Anand and discussed the proposal with the Chairman on 19.7.2000.  Further, Chairman, NDDB had a discussion on the above, with Hon’ble Chief Minister of Tamilnadu on 28.9.2000 at Chennai.   Necessary sanction is awaited from NDDB for the implementation of the above scheme.


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