By

Medha Saha
Rohit Kumar Shaw
COMPFED : The Diary Cooperative
Distribution System
2. How should COMPFED deal with the
competition it is facing on the milk procurement
front? Can COMPFED leverage its network and
resources to apply counter-competitive action
against these private agents and middlemen in
an effective manner? How?
COMPFED can deal with the competition it is facing on the milk
procurement 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


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 to
other players)
Government backing
High processing capacity



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
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 where
COMPFED 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 for
not working as an middlemen (for at-least 5 years), even if they
left the firm.
Investment for huge infrastructure (for chilling centers,
processing and manufacturing, etc.)
Proper communication to new and existing farmers about the
unique services.

Provide refrigerated containers to farmers to store milk (to
avoid 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).


Introduction of various awareness programs and campaigns to
rejuvenate the farmers interest in becoming part of the
cooperative movement.
Cost reduction and technology management along with
modernization of process and plant (so that price paid to the
farmers can be increased without any extra burden on
COMPFED).
Under-weighing, adulteration and stealing by workers to be
dealt 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 supply
with a minimum base price.
Collection of milk directly from farms in mobile refrigerated
vehicles.
Introduction of a new franchise model.

A Modern Farm

Parlour Gates
Parlour Building
Backing
Gates
Feed Bins
Rotating
Feed Bin
Thank You