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The total milk produced in the world is estimated at 613 million tonne (mt), and is growing at a CAGR of 1.1 per cent." India is the world's largest milk producer with 91.1 mt of milk production per annum (2003-04 provisional). The overall growth rate of the dairy industry in India is 4 percent, which is almost three times the average growth rate of the dairy industry in the world,"informs Arun Patil, a dairy consultant and managing director,airyplant.com. Buffalo milk is now estimated to account for 57 per cent of the total milk production in India. Despite a higher growth rate, the per capita availability of milk in India (229 gm per day) is lower than the world average (285 gm per day).
The dairy cooperative movement in India continues to be unparalleled in the world in terms of its scope and scale. Launched in Kaira district of Gujarat during India's independence, farmers were encouraged to form a cooperative to counter exploitation in terms of the extremely low prices offered by Poison Dairy for their collection of milk. The primary village dairy coooperative society of milk producers collaborated with others in the district to form the milk producers union, which procured and processed the milk. The union processed milk that was procured from the village dairy cooperatives at its processing plants. In addition to collecting surplus milk, the Kaira union assisted members in expanding production.