Co-operative dairies can be competent sans JVs: Kurien

Verghese Kurien, the chairman of Gujarat Co-operative Milk Marketing Federation (GCMMF) and the father of India's 'White revolution', believes that dairy co-operatives in the country have all the qualities to compete with their counterparts in the corporate sector.

According to Kurien, dairies like Amul does not have to adopt the joint venture model to be competitive against market-savvy corporates.

Kurien feels Amul can be a great example for entities waging war against multinational companies (MNCs), especially in the dairy sector.

"I stress once again that joint ventures in the dairy sector is not a good idea as long as the co-operatives are performing well. Who says that only corporates can be aggressive to market their products and make profits as well as safeguard the interests of the farming community?" said Kurien.

Referring to the huge turnover of GCMMF, over 90 percent of which is from the sales of Amul brand products, Kurien said, "Look at the performance of Amul as a dairy and also try to know about such entities in this sector across the globe. The most successful dairies in countries such as Holland, New Zealand and Denmark have been running the show as co-operatives."

According to him, MNCs like Polson, Glaxo and Jhonson & Jhonson were too big when Amul was set up. These multinationals' might never affected Amul, and it has been growing substantially every year.

He said, "Even in capitalist countries such as the US, 87 per cent of the dairy industry is in the co-operative sector. The government there wants to continue with this model in the dairy sector. But we are trying to change this by making futile attempts to corporatise the dairy sector through joint ventures."

Showing his happiness over the change of guard at the Centre, Kurien said, "I am happy that this government is pro-dairy movement and I expect it to play a crucial role in taking the Indian dairy sector further."

Criticising Amrita Patel, chairman of National Dairy Development Board, for her opinion that the joint venture model would be the future of dairy co-operatives in India, Kurien said, "I have worked for the co-operative movement throughout my life and I strongly believe that this character of the dairy industry should remain intact. Co-operation is an article of faith and faith comes from believing. Those who have faith does not need an explanation."

Kurien, avoiding comments on his successor, said, "Amul has a very good trade name and distribution network which has been expanding day by day. It has been functioning within from able hands."