A dairy institution is an established dairy organization or body. Dairy institutions vary in size (international, national, regional or local), can be formal or informal and can be within the public or private sector. Dairy institutions include milk producer groups/organizations, cooperatives, regulators, input suppliers, service providers, market agents, research and development organizations, non-governmental organizations, community-based organizations and development partners.
Forming groups or associations benefits dairy producers, traders and processors through improved income, market access and bargaining power. It also results in increased production and improved quality of milk products. Large dairy institutions support the dairy sector by promoting dairy development, policy, advocacy and strategies; facilitating the organization of milk producers, the legal framework and trade; and promoting milk consumption for improved nutrition. In developing countries, one of the main roles of dairy institutions is to improve the competitiveness of small-scale dairy producers in the dairy chain.
Producer groups/organizations
Milk producers can organize themselves into producer groups/organizations to increase profitability and efficiency and strengthen their capacity in milk collection, transport, processing and marketing. Organizations are crucial in enabling milk producers to benefit fully from dairy production, and can contribute to poverty reduction through advocacy and economic empowerment. The activities of milk producer organizations include milk marketing, milk collection, milk processing, facilitating access to services (e.g., health, breeding, financial), and managing the provision of inputs (e.g., feed and credit). Producer organizations are the key to success for small-scale dairying because they enable numerous benefits, such as improved access to urban markets for producers, the sharing of production risks and resources, and improved communication and knowledge sharing.
Milk producer organizations have played a vital role in dairy development throughout the world. In India, for instance, cooperatives of small-scale producers were central to the development of the dairy sector, making the country the world’s largest milk producer. Dairy development was also driven by the establishment of producer organizations in countries such as Bangladesh, Kenya, Nepal and Uganda.