At Glance



The Dairy Development Department was established in 1958 in Tamilnadu. The administrative and statutory control over all the milk cooperatives in the State were transferred to the Dairy Development Department on 1.8.1965. The Commissioner for Milk Production and Dairy Development was made as the functional Registrar under the Tamilnadu Cooperative Societies Act. With the adoption of 'Anand pattern' in the State of Tamilnadu, Tamilnadu Co-operative Milk Producers' Federation Limited was registered in the State on 1st February 1981. The commercial activities of the Department such as Milk Procurement, Processing, Chilling, packing and sale of milk to the consumers etc., hitherto dealt with by the Tamilnadu Dairy Development Corporation Ltd., were transferred to the newly registered Tamilnadu Co-operative Milk Producers' Federation Limited, popularly known as "Aavin".

In the wake of liberalization policy, private dairies have also entered into the field of dairying. As per the directions of the Hon'ble Chief Minister of Tamilnadu high priority has been given for improving the performance of milk Co-operatives by adopting a systematic approach and proper strategy in Milk Co-operatives. Significant achievement has been made by Milk Producers' Cooperative Societies, Unions and Federation in the State of Tamilnadu.

The cattle population in India is approximately 15% of total cattle population in the world. India stood no. 1 position in milk production. Tamilnadu is one of the leading state in milk production. The milk production in Tamilnadu per day is 145.88 Lakh litres.


(1) Assure a remunerative price for the milk produced by the member of the Milk Producers' Co-operative Societies through a stable, steady and well organized market support.

(2) Distribution of quality milk and milk products to the consumers at reasonable price.

Keeping these objectives in mind, a number of activities are undertaken by the Dairy Development Department, viz., Provision of free veterinary health cover to all animals owned by the members of milk cooperatives, implementation of Artificial Insemination Programme, supply of balanced cattle feed and inculcation of farmers with the modern animal husbandry methods and practices.

All activities, which are essential for the up gradation of the milch animals and improving their productivity in the long run, have been undertaken.

Provision of necessary infrastructure facilities for marketing milk and milk products and supply of quality milk to the consumer has been made by way of establishing new chilling centres, pasteurization plants and adoption of modern processing system.


The Commissioner for Milk Production and Dairy Development is the Head of the Dairy Development Department. He is the functional registrar in respect of Dairy Co-operatives in the State. He is also the Ex-officio Managing Director of the Tamilnadu Cooperative Milk Producers' Federation Limited. i.e. Aavin.

The Commissioner for Milk Production and Dairy Development exercises all the statutory powers with regard to the registration of societies, supervision, inspection, inquiry, disputes, liquidation of milk cooperatives including the District Cooperative Milk Producers' Unions and Federation under the relevant provisions of the Tamilnadu Cooperative Societies Act, 1983 and Tamilnadu Cooperative Societies Rules, 1988. While discharging the statutory functions, the Commissioner for Milk Production and Dairy Development is assisted by the Deputy Milk Commissioner (Co-operation) in the rank of Joint Registrar of Cooperative Societies and a Deputy Registrar at the Headquarters besides 23 Deputy Registrars (Dairying) at the District level by way of conferring the powers of the functional Registrar.


The main functions of the Dairy Development Department include Organisation of societies, registration of societies, supervision and control of primary milk cooperatives, District Cooperative Milk Producers Unions and Tamilnadu Cooperative Milk Producers Federation.

The Dairy Development Department exercises statutory function - like Inquiry, Inspection, Surcharge and Super session, appointment of special officers, liquidation and winding up of dormant Societies etc. The Commissioner for Milk Production and Dairy Development, Deputy Milk Commissioner (Co-operation), and Circle Deputy Registrars (Dairying) are vested with quasi-Judicial powers in respect of settlement of disputes, appeal, revision and review under various provisions of Tamilnadu Cooperative Societies Act, 1983 & the Tamilnadu Cooperative societies Rules, 1988 made there under.

The Commissioner for Milk Production and Dairy Development has been designated as the State Registering Authority for the state of Tamilnadu, under the provisions of Milk and Milk Products Order'92. All the Dairy units including private Dairies handling more than 10,000 lpd of milk or Milk Products containing milk solids in excess of 500 Metric tones per annum have to obtain registration certificate under the provision of Milk and Milk Products Order'92. The Commissioner for Milk Production and Dairy Development / State Registering Authority has been conferred with powers to register the dairy units having handling capacity from 10,000 lpd to 2,00,000 lpd. The Commissioner / State Registering Authority, Deputy Milk Commissioner (Co-operation) / District collectors and Deputy Registrars (Dairying) have been authorized to carry out supervision and periodic inspection of the dairies.


A minimum of 25 or more individuals competent to contract under section 11 of the Indian Contract Act of 1872, owning milch animals, can form a Primary Dairy Cooperative Society, with one or more villages as its area of operation. Such persons have to approach the Circle Deputy Registrar's (Dairying) office functioning at the District for further guidance. The members of Primary Cooperative milk society have to supply milk to the Society which will procure milk on quality basis and they will receive milk cost once in 10 days / 15 days from the Society. Milch animals are provided with free veterinary health cover, artificial insemination and the supply of balanced cattle feed. Inductions of farmers on modern animal husbandry practices are aimed at by upgrading the milch animals and thereby improving their productivity in the long run for the benefit of the members.


In order to encourage the women members to contribute more to the dairy sector, they are being called upon to organise women milk producers' cooperative societies in their respective areas. There are 1210 women milk Producers’ cooperative societies functioning in Tamilnadu.

Primary Milk Cooperative Societies and District cooperative Milk Producers Unions and Federation were previously administered by elected Boards. As the terms of office of the members of elected Board already expired and as they were continuing only on extended term of office as per section 33(10)(aa) of Tamilnadu Cooperative Societies Act, 1983, the Government issued orders terminating the extended term of office of members of Boards of these societies and the Special Officers have been appointed under section 89(1) of Tamilnadu Cooperative Societies Act, 1983. All the primary Milk Cooperative Societies are now functioning under the Control of Special Officers since 26.5.2001. In respect of District Cooperative Milk Producers Unions, the Collectors of respective Districts have been appointed as Special Officers and for Tamilnadu Cooperative Milk Producers Federation Ltd., the Managing Director of the Federation has been appointed as Special Officer. Consequent on the bifurcation of the Dharmapuri District and creation of new District namely Krishnagiri, the District Collector of Krishnagiri has been appointed as Special Officer of Dharmapuri District Cooperative Milk Producers’ Unions Ltd., with effect from 27.2.2004.


There are 17 District Cooperative Milk Producers' Unions functioning in the State of Tamilnadu covering 30 Districts. There are 15 Dairies in District Co-operative Milk Producers' Unions with an installed processing capacity of 19.42 llpd. There are 36 Chilling Centres (Functional) in District Co-operative Milk Producers' Unions with installed chilling capacities of 13.55 llpd.

(1) Establishment of chilling centres

(2) Formation of new milk routes to collect milk produced by the members of the societies.

(3) Collection of milk from societies, process and pack in modern dairy plants by maintaining quality standards.

(4) Supply of quality milk to Chennai Metro under hygienic conditions.

(5) Fixation of procurement and selling price of Milk

(6) Increase of liquid milk sales by introducing innovative sales promotional activities.

(7) Supply of inputs to the members of the societies.

(8) Render Veterinary Health Service and emergency service to the cattle of members of primaries, to impart training on First aid and on Artificial insemination to the staff of member societies.

(9) Extending Artificial insemination services to the cattle owned by the members of Milk Cooperative Societies.

(10) Providing milk cans, Milk 'O' testers and LN2 containers.

(11) Salem, Erode, Madurai and Dharmapuri Unions are the Feeder Balancing Dairies. Surplus milk in the District Unions, after meeting their local sales is diverted to the nearest Feeder Balancing Dairies for conversion into milk products, such as Skim Milk Powder, Butter and Ghee.

(12) The three Cattle Feed Plants at Madhavaram, Erode and Kappalur are run by the Kancheepuram - Tiruvallur Union, Erode Union, Madurai Union respectively. The production capacity of these cattle feed plants is 100 MT per day each. The balanced cattle feed produced in the form of pellets and mash are supplied to the members of the Milk Co-operatives, livestock farms manned by the Animal Husbandry Department and to various local bodies including the Corporation of Chennai.


The Tamilnadu Co-operative Milk Producers' Federation Limited is an apex body of 17 District Cooperative Milk Producers' Unions. The Federation has four dairy plants in Chennai, one at Ambattur with a capacity of 4.00 lakh litres per day, another at Madhavaram with a capacity of 2.00 lakh litres per day and the third dairy at Sholinganallur with a capacity of 4.00 lakh litres per day. These dairies collect milk from District Unions process and pack in sachets and send for sale to the consumers in and around Chennai City. The fourth product dairy at Ambattur is engaged in the manufacture of milk products such as Yogurt, ice cream, Khova, Kulab jamoon, Buttermilk, Curd and Mysore pa.


Most of the rural people especially women make their livelihood by rearing milch animals and by supplying milk to the Co-operatives. Keeping this in view and to improve the rural economy and to enhance the personal income of the stake holders in rural area, Government of Tamilnadu directed the Tamilnadu Co-operative Milk Producers’ Federation and District Co-operative Milk Producers’ Union to raise the procurement price of the cow's milk from Rs.18.00 to Rs.20.00 per litre and that of the buffalo’s milk from Rs.26.00 to Rs.28.00 with effect from 18.11.2011 and the milk cost as per the revised procurement price is being disbursed to the Milk producers. (VIEW G.O ) 

Average milk procurement in DCMPUs in lakh litres per day.


Year 2001-2002


Year 2002-2003


Year 2003-2004


Year 2004-2005


Year 2005-2006


Year 2006-2007


Year 2007-2008                   21.64
Year 2008-2009               22.00
Year 2009-2010                22.30
Year 2010-2011  20.66
Year 2011-2012 21.40
Year 2012-2013  26.83


The three wings are carrying out the marketing of milk and milk products of the Federation namely:

1. Metro Liquid milk marketing.
2. Metro Milk Product marketing.
3. Up country marketing.

The product wing of the Federation located at Nandanam directly carries of marketing of the products in Chennai Metro and suburbs. The products are stored at the Godown at Ambattur and distributed to the outlets.

The sale of milk in sachets is being carried out through 18 zones, 292 Federation Depots, 184 Fedn. Distribution Points, 38 Whole Sale Milk Distributors, 89 Milk Retailers and 49 Milk Consumers’ Co-operative Societies and their depots numbering 221 and 142 distribution points. The sale of milk product is being carried out through 25 parlours, 145 Franchise Retail Outlets (FROs), 11 Wholesale dealers, and 2824 Retailers. The Federation also caters to the needs for functions like marriages by booking Special Orders.

Standardised milk, Buffalo milk and double toned milk are being sold through 218 Automatic Vending Machines and 98 FRPs to the city consumers. Milk products are also sold in certain AVM Units. Sachet milk sales are also carried out in AVM units.



To improve the socio economic conditions of poor rural women belongs to SC/ST, asset less women and Self-Help-Group, the Government of India sponsored "STEP" Scheme at a total cost of Rs.649.464 lakh, with 90% Government of India share of Rs.584.518 Lakhs and the balance 10% share of Rs.64.946 Lakhs to be met by the implementing Agency. The period of the scheme is 3 years from 2002 to 2005 and further extended to March 2008, with an objective to identify Self-Help-Group women who are interested in Dairy Sector, for organizing exclusive Women Dairy Cooperative societies and to provide Training and employment opportunities by arranging milch animals loans and to collect milk from them.

This Scheme is implemented in 7 District Cooperative Milk Producers' Unions viz. Salem, Erode, Dharmapuri, Vellore, Villupuram, Coimbatore and Trichy comprising of 13 Revenue Districts. Through this scheme 145 Women Dairy Cooperative Societies were organized. These societies were provided with animal health cover, Artificial Insemination cover supply of balanced Cattle Feed, fodder production, vaccination programme, Managerial subsidy, milk chilling cost, milk commission and margin money to the members for the purchase of milch animals. At the end of the scheme 10000 women would have been trained on the principles of Cooperative law, Artificial insemination and First-aid to Cattle, Farmers induction programme, Dairy Animal Management, use of milk testing equipments, defection of adulteration in milk etc., In addition to this, the Women Dairy Cooperative Societies are provided with infrastructure facilities.

The Federation and District Coop. Milk Producers; Union ensure market for all the milk produced by the beneficiaries under this scheme through out the year at remunerative price in order to make the project viable.

The targeted 145 Women Dairy Cooperative Societies have been organized and enrolled 10150 women members. The average milk procurement from STEP societies are 26283 litres per day with an average income of Rs.60/- per day per beneficiary.

With the implementation of STEP scheme the average income of beneficiary will be enhanced from Rs.7000/- per year to rs.20000/- per year at the end of this project.


Government of India have accorded sanction for Rs.312.15 lakhs to Sivagangai District Cooperative Milk Producers’ Union as full grant to implement ‘Intensive Dairy Development Programme’ in Sivagangai and Ramanathapuram Districts. First year grant of Rs.55.45 Lakh was received and utilized. Second year (2006-2007) grant of Rs.102.14 Lakh has been received and being utilised by the union.

Under this programme, funds have been sanctioned to unions to improve milk procurement, milk sales, creation of infrastructure required for milk processing and marketing, extension of input activities, manpower development in districts for a period of five years.

During the year 2006-2007, GOI accorded administrative approval for the implementation of ‘Intensive Dairy Development Programme’ in Tirunelveli and Kanyakumari DCMPUs for a total outlay of Rs.554.06 Lakhs and Rs.291.77 Lakhs respectively. Tirunelveli, Thoothukudi and Kanyakumari Districts will be benefited under this scheme.

The first year grant of Rs.49.83 Lakh was received and being utilised by Kanyakumari union. The first year grant of Rs.204.50 Lakh for Tirunelveli union is in the process of release.

Besides, a proposal for Rs.899.875 Lakh has also been sent to Govt. of India to avail financial assistance to improve dairy development activities in Thanjavur milk union.


Government of India sponsored a scheme called ‘Strengthening Infrastructure for Quality and Clean Milk Production’ to strengthen infrastructure facilities and to ensure Clean milk production at village level. The period of the scheme is two / three years.

Objective of the scheme is to train farmers on clean milk production activities, to provide chemicals and utensils to pouring members, to strengthen district union dairies / chilling centres laboratory and to install bulk milk coolers at societies to improve initial quality of milk.

Government of India will release the entire amount as full grant for training, provision of antiseptic solutions, supply of stainless steel utensils and modernization of Quality Control Labs at Dairies / Chilling Centres. Government of India will release 75 percent as grant for installation of bulk milk coolers and the remaining 25 percent will be met by the concerned beneficiary District Unions.

Government of India so far has sanctioned Rs.1224.21 lakhs to Vellore, Villupuram, Trichy, Dharmapuri, Salem Kancheepuram-Tiruvallur, Erode, Nilgiris and Madurai milk Unions for the implementation of the scheme.

Under these schemes, 48001 members will be benefited, 90 Bulk Milk Coolers will be installed and the chilling capacity will be increased by another 3.71 lakhs LPD.

Posted Date : 19/05/2014 Posted By : Admin