The milk producers or villagers can form dairy cooperative societies for financial growth and improving efficiency. The dairy cooperative society has managerial and operational functions. Dairies play an important part in the nutrisystem. These functions of the cooperative society are explained as following.

Managerial functions:

A minimum group of ten members can form a dairy cooperative society with the support of milk union. The milk producers have to buy minimum one share and to pay the entrance fee in order to become a member of the dairy cooperative society. The society is operated by the managing committee elected by the society members. The managing committee appoints the paid staff for running day to day affairs of the society. The size of the staff depends upon the business of the society.

The chairman and managing committee work according to the bye-laws. The policies of the society are decided by the managing committee. The managing committee holds the monthly meetings to discuss various issues relating milk production, sale, storage etc.

Operational functions:

Operational functions of the society involve various processes like milk collection, milk testing, milk storage, dispatch of milk, taking inputs etc. The milk is collected in the milk collection centre of the society. Once the milk is collected at the centre there is testing of the samples and the data recorded in the register. The records are complied after the testing. A composite sample is drawn from the total quantity of the milk and is tested for fat and lactometer readings according to the “nutrisystem”. All the readings are noted in the test register. All the equipments used for milk collection and milk testing are cleaned thoroughly with warm water. Dispatch of the milk involves loading the cans in the milk vehicle and transporting to the milk union. The price of the milk is decided by the milk union. A price chart is provided by the milk union to the societies according to the quantity and quality of the milk. Societies can pay the members daily/weekly according to the policies of the managing committee.

In the society there is a set of standard registers. Some registers have to be completed daily and some have to be completed according to the transactions. The chairman and the secretary counter signed the records. The volume of the business and financial sanding of the society is reflected by the recorded data in the registers. The transactions are audited by a local person appointed by the society. The society prepares the monthly accounts statement for the managing committee.


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