Dairy Farming Manual
What should you know about dairy cooperatives?
1 What is a dairy cooperative and why join? (5-16)
A dairy cooperative is:
- a group of people working together to help each other and share benefits.
|2 What does a dairy cooperative do? (17-35)
A dairy cooperative:
|3 What types of dairy cooperative are there?
|4 How can you organise a dairy cooperative?
What is a dairy cooperative?
|5 A group of people working together
- they put their labour and resources together to benefit all members.
6 A cooperative is democratic:
- each member has one vote.
|7 By members working as a group, the cooperative
can help by:
- making the best use of the money and resources which each member has
- buying large quantities of necessary items at lower prices such as concentrates
- sharing the costs of collection, processing and distribution
- making production more efficient and increasing employment
- making a profit to share between members.
|10 Each year, some of the surplus money goes to the cooperative for financial, social and training services|
| 11 and the members share the rest of
So you get more benefit by joining other farmers in a dairy
12 and sometimes your dairy cooperative can get more benefits by working with other dairy cooperatives.
Why join a dairy cooperative?
|13 Without a cooperative,
you must spend a long time
- to send your milk to the chilling plant
- to collect your feed
|14 or deal with a middle man who takes a high profit and may be corrupt.|
|15 With a cooperative,
you can have milk collecting points in each village or group of
The collecting points can also provide feed and other requirements.
|16 By sharing, you:
- spend less time travelling
- reduce the cost of feed because the coop buys in bulk.
What does a dairy cooperative do?
|17 It organizes members for efficient collection, processing and distribution of milk.|
|18 It checks milk quality
- on the farm
- during processing
- during retail.
19 It sets milk prices paid to members.
It negotiates sale prices for milk on behalf of all members.
|20 It supplies:
- animal feeds
- farm and household supplies.
|21 The cooperative
necessary for cooperative activities.
|22 Each farmer needs:
- an open milking bucket
- a milking bucket with a hood
- a milk transport can, large enough to hold all the milk with:
- a lid
- a wide neck to allow cleaning.
|24 For example: 1 cow needs: 1 x 10 l milk can
1 farmer with 4 cows needs:
- 4 x 10 l milk cans and
- 1 x 40 l milk transport can.
|25 Each milk collecting
- milk transport cans.
|28 The processing plant collects milk from the chilling centres and, therefore, needs larger capacity.|
|29 The cooperative
- A.I. services
- veterinary services.
|30 For this work, a cooperative needs:
- extension workers
- milk recorders (where there is official milk recording).
|31 It provides training:
- in husbandry
- and cooperatives.
|32 The cooperative keeps records of all credits and debits|
|33 and produces balance sheets
- milk collection and marketing
- sales of cattle feed and consumer goods
- other activities.
|34 An internal auditor checks:
|35 Cooperative officers or private auditors approved
by the cooperative:
- do the final auditing
- report to the meeting of all the members.
What types of cooperatives are there?
36 This type of cooperative only supports dairying, dairy feeds and milk processing.
|37 In some countries, e.g. India, the cooperative
does not give credit.
The bank may offer credit to members of the cooperative.
|38 In other countries, e.g. Indonesia and Thailand,
the cooperative does offer credit.
|39 Only milk producers can be members of these single-purpose cooperatives.|
40 This type of cooperative supports other activities besides dairying:
- crop production e.g. smallholder tea
- general sales outlets e.g. in Indonesia.
| 42 Milk producers,
tea producers, consumers and others can join multi-purpose cooperatives.
|43 Some cooperatives process milk from members
and market the products.
Profits are shared with members.
|How can you organize a cooperative?
44 You choose the:
- right man
- for the right job
- in the right structure.
What are the duties of each group?
|45 The General Assembly has
a President and a Secretary elected from the members.
- elect and dismiss the President, Secretary, Board of Directors and Management
- approve budgets and rules
- vote on other important subjects.
|46 The Board of Directors
a Chairman, Secretary, Cashier and
and is responsible to the General Assembly.
- arrange meetings of the General Assembly
- interpret rules
- supervise management
- set and review budgets.
|47 The Supervisory Board
has an Auditor and Inspectors.
- check accounts
- supervise administration
- check production
- call meetings if necessary.
|48 The Advisory Board has
in many fields.
It can give specialist advice on:
|49 The General Manager and
the Section Managers:
- manage the personnel
- make sure to achieve objectives
- report activities and budgets to the Board of Directors.
In small cooperatives members will do most of the jobs above.
Large cooperatives will employ specialists where necessary.