Nagapattinam is an extremely cattle friendly area and has got a good potential for dairy industry. However, lack of organized collection systems or processing facilities within the district has not been conducive for its growth potential. Nevertheless, there are many private agents within the district who collect the milk for other private dairies set up outside the district. This has led to the milk producers getting Rs.10 - Rs.14 per litre of milk while selling prices range from Rs.18 to Rs.26 per litre. The low milk yield potential of milch animals has also led to dependence on milk collectors due to the negative economy of scale.

Collectivisation of the milk producers and setting up of an organized milk collection system was seen as a viable and feasible intervention to support the livelihoods of these milk producers.

Producer based organizations, on the lines of Anand Pattern has been planned and initiated as a part of this intervention. The governance of this initiative will be completely with the milk producers.

Goal of Nampco:

To promote dairy development in the district through community participation and ownership


1.Make dairying a remunerative occupation for the milk producers through better procurement, processing and marketing facilities
2.Improve the productivity and yield of the milch animals through better cattle management
3.Facilitate better provision of  inputs like veterinary care and support, feed and fodder and necessary technological support to the milk producers for improving the management

10 societies will be formed by end of 2010. All the 10 presently planned societies have been federated as a district level body and this Federation has been registered under the Producer Company Act under the name of Nagai Milk Producer Company Ltd (NAMPCO).


Overall Structure:

  • Federation of Societies at District level
  • Milk Collective at Village level which will be solely a member based organization. All producer members become members of the General Body of that Collective
  • Each Milk Collective can have up to 7 Collection Centres
  • Only milk producers can become members at the society level
  • There will be a Governing Body at the Society level consisting of elected members from the General Body
  • The Executive Committee consisting of President, Secretary and Treasurer will be elected from among the Governing Body members
  • Nominated representatives from the Executive Committee will represent the Society at the Federation/ Company level.

Procurement at Collective level:

  • Milk from each member collected based on the quality (Fat and SNF%).
  • Payment on a fortnightly basis. Individual passbooks given to each member which will contain milk pouring details

Computing will be done per member based on the quality parameters of Fat and SNF

Inputs at the Collective Level:

  • Women will be encouraged to take up responsibility of inputs committee
  • Feed, fodder, bricks etc can be purchased in bulk and supplied to the members on installment basis to be deducted from their weekly payment
  • Seed money available can be used for bulk purchases of inputs
  • The veterinary care available is good and easily accessible in most places. Emergency care can be provided by the Society
  • The Society/ Federation will get into a long term contract with a local veterinarian for providing emergency services
  • All such services will be costed and deducted in easy installments from the milk value payable
  • Fodder cultivated by members/ others can also be purchased by the Society and made available to its members
  • Medicines will be made available by the project for the project period. However, it can be costed and recouped by the Society for future capital


  • Apex Body of all Milk Collectives
  • Already registered as Nagai Milk Producer Company (NAMPCO)
  • Member based- only institutional members (milk collectives)
  • Governed by an elected Board from among the Presidents of all the member Units
  • Ensuring that the Organisation is “of the producers, by the producers and for the producers
  • Currently will be directly operating the Central Processing Unit
  • All Branded products will be sold only under the banner of this Federation