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By

Medha Saha

Rohit Kumar Shaw

COMPFED : The Diary Cooperative

Distribution System

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2. How should COMPFED deal with thecompetition it is facing on the milk procurement

front? Can COMPFED leverage its network andresources to apply counter-competitive actionagainst these private agents and middlemen in

an effective manner? How?

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COMPFED can deal with the competition it is facing on the milkprocurement front through:-

(a)Retaining existing farmers

&

(b) Acquiring new farmers.

Problems of COMPFED:-

(i) Better price from competitors

(ii) Irregular bonus payments

(iii) Cannibalization from old union or cooperative members(iv) Registration fee

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COMPFED can leverage its network and resources against these

private agents and middlemen because

It has reach in far-flung and remote areas (un-accessible toother players)

Government backing

High processing capacity

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Proper implementation of existing services & Introduction of new and innovative services

Existing Services

Artificial Insemination Animal Health Program

Cattle feed

Socio-Economic Activities

Training & Development

Bonuses

Technical input to improve milk yield

Steps to be taken by COMPFED

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New and Innovative Services

Better price for milk than the private players.

Changing the bonus pattern for farmers from quarterly or

yearly to weekly or monthly. Un-interrupted Services.

Launch of Pasu-Suraksha, a cattle insurance plan whereCOMPFED will insure the cattle of the farmers.

Awards and Certificates for farmers with highest Quality &Quantity within Villages, Districts, and State.

Legal contract for all employees and cooperative members fornot working as an middlemen (for at-least 5 years), even if theyleft the firm.

Investment for huge infrastructure (for chilling centers,processing and manufacturing, etc.)

Proper communication to new and existing farmers about theunique services.

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Provide refrigerated containers to farmers to store milk (toavoid wastage).

Educating the farmers about the benefits to join the

cooperatives (COMPFED). Cut down intermediaries within COMPFED to give direct benefit

to farmers (adopting a flat structure).

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Introduction of various awareness programs and campaigns torejuvenate the farmers interest in becoming part of thecooperative movement.

Cost reduction and technology management along withmodernization of process and plant (so that price paid to thefarmers can be increased without any extra burden onCOMPFED).

Under-weighing, adulteration and stealing by workers to bedealt firmly to restore confidence.

No registration fee for small farmers.

Flexible time for collection apart from morning and evening.

Prompt payment in cash. Formation of a committee which revises the price paid to the

farmers monthly according to the market demand and supplywith a minimum base price.

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Collection of milk directly from farms in mobile refrigeratedvehicles.

Introduction of a new franchise model.

A Modern Farm

Parlour Gates

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Parlour Building

BackingGates

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Feed Bins

RotatingFeed Bin

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Thank You