The Anand model

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To quote this work: « Dervillé Marie, Jenin Léa, Dorin Bruno, Aubron Claire, 2019. The Anand model: formal and informal rules structuring productive forces, International seminar "Milk and Dairy in India’s Development Path. Lessons, challenges and perspectives", India International Centre, New Delhi, 17-18 December»

Transcript of The Anand model

To quote this work: « Dervillé Marie, Jenin Léa, DorinBruno, Aubron Claire, 2019. The Anand model: formal andinformal rules structuring productive forces, Internationalseminar "Milk and Dairy in India’s Development Path.Lessons, challenges and perspectives", India InternationalCentre, New Delhi, 17-18 December»

I- The Anand model: formal and informal rulesstructuring productive forces

Marie Dervillé, Léa Jenin, Bruno Dorin, Claire Aubron

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Methodology: Gujarat value chains

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Thomas Esteban & Marie Dervillé in 2016

Building of collective resources in the industry

Milk and Milk Product Order(1992 - 2002)

Producer CompanyAct (2003)

IndianCompany Act(1956)

Gujarat CooperativeAct (1961)

NDDB (1965)

Mother Dairy(1974)

NDDB DairyService (NDS) (2009)

LEGAL

FRAMEWORK

1965 199519901955 1986 201019701950 2000 20201980 20151978

Liberalisationreforms

IndustryAct(1951)

Essential CommodityAct (1955)

Kaira strike(1946) Processing unit

+ Amul brand (1955)

GCMMF (1973)

IDCM IndianImmunologicalsIRMA

MDFVPL

FSSAI Act(2006)

GST Act(2017)

Amulextension out of Gujarat

Maahi(2012)

INDIA world largest Milk producers

INDIA > EU

1960

COMMONPOOL

RESSOURCES

COOPERATIVE industrialisation

continued(exclusion zones)

COMPETITION+ diversification of cooperative/MPC models

BUSI

NESS

MODELS

Dr Kurien(1950)

Fat basedmilk price(1956)

OF 1 2 3 NDP I

Demonetisation(2018)

Cattle tradefor slaugtherban & debate

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District

Village

Nation

STATE

zoning

CooperationCooperation & competition

Legend

Dairy

products

Milk

& Chilled milk

Milk Price + Bonus+ services

3 tiers Anand Pattern

CO

NSU

MER

S

Cooperation fostered at initial stages

Milk

Federation

Union

DCS

Union

DCS

Producers

Promote, Finance,Support, Coordinate

Agricultural Policy, Cooperative & Company act; Trade policy

NDDB & subsidiaries

MOTHER DAIRY

Pasteurized Milk for Metros

Spatial & products complementarity

RETA

ILER

S

Dairy productsFederation

Union

DCS DCS DCS

Prod.

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Diversity of cooperatives in Gujarat

• Diversity of business models• Diversity of conditions to access market for farmers

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0

500 000

1 000 000

1 500 000

2 000 000

2 500 000

1945 1965 1985 2005

Lite

rs/d

ay

Amul Dairy Rajkot Vasudhara

Maharashtra

West Bengal

Punjab

Within the federation

NDDB: key governance structure

Common-pool resources

Governancemechanisms

Promotional Boards

Bargaining Boards

One desk Board

Supply management Boards

NDDBInnovation strategy, reputation & market structuring

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Farmers’ inclusiveness limited to users rightsInnovation capacity

& productive solutionsCollective reputation & bargaining power

Rights (stakeholders) Rights (stakeholders)

User

s

Generic skills (clean milking) and technical and organizational solutions

(feed, technology…)

(Farmers, DCS & Unions)

Price stability, quality premium & bonus for fresh whole milk

(Farmers, DCS & Unions)

Mana

-ger

Research and extension targeting & planning

(NDDB, Unions, Federations, ICAR & Universities )

Value creation & sharing rules

(quality payment grid, intake principle)

(Unions, Farmers representatives, Federation, NDDB)

Owner

Innovations strategy (ex: machineries, products, genetics, feeding;

products and Business Models)

(NDDB & subsidiaries, main federations)

Market segments (initially bulk milk & products diversification) & conventions(Industrial quality; productivity except for

farming)

(Federations, NDDB)

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