Dairy production and products
 

Producer groups/organizations

Milk producers can organize themselves into producer groups/organizations to increase profitability and efficiency and strengthen their capacity in milk collection, transport, processing and marketing. Organizations are crucial in enabling milk producers to benefit fully from dairy production, and can contribute to poverty reduction through advocacy and economic empowerment. The activities of milk producer organizations include milk marketing, milk collection, milk processing, facilitating access to services (e.g., health, breeding, financial), and managing the provision of inputs (e.g., feed and credit). Producer organizations are the key to success for small-scale dairying because they enable numerous benefits, such as improved access to urban markets for producers, the sharing of production risks and resources, and improved communication and knowledge sharing.

Milk producer organizations have played a vital role in dairy development throughout the world. In India, for instance, cooperatives of small-scale producers were central to the development of the dairy sector, making the country the world’s largest milk producer. Dairy development was also driven by the establishment of producer organizations in countries such as Bangladesh, Kenya, Nepal and Uganda.