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The design strategy is followed by the dairy management is the key to success for Mulukanoor Dairy. The key design features that made a small beginning such huge success are
  1. Ceiling on the procurement distance: By keeping a limit of 30 Kms on the maximum distance of the village where milk is to be procured from the dairy, we have ensured lowest possible cost per litre of procurement .

  2. Target on Smaller cities: We are able to capture very good market share by concentring on mid sized cities and smaller municipalities around Mulkanoor like Warangal , Siddipet, Karimnagar, Mancherial and Godavari Khani.

  3. Initial Product portfolio: A product portfolio limiting to marketing just milk, curd and buttermilk helped us ensure daily money inflows back from the market easing out working capital requirement.

  4. Local Human Resource: The staff is employed from within the Union villages resulting in less resource cost per litre compared to industry standards

  5. Ensuring higher stakes of members: We have institutionalised patronage linked compulsory development deposits at the rate of 5% of every milk bill that the member realizes

  6. Systematic institution building process: Institution development and capacity building of the members was taken up systematically for a period of 18 months before the launch of dairy.

  7. Minimum performance criteria for members and leaders: Standards for minimum performance of members and leaders were set and performance is being measured accordingly.

  8. Surplus Distribution: The Surplus distribution is done to the members on the basis of total transactions with the cooperative.



Success features of Mulukanoor Dairy

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