Institution Building

NDDB's approach to Institution Building primarily aims at rural prosperity by means of systemic and value-based strengthening of the capacities of primary members, management committee members and staff of village Dairy Cooperative Societies (DCS) as also the professionals and elected boards of Milk Producers' Cooperative Unions.



In this era of Globalization and liberalization when operational boundaries have reduced and socio-economic, cultural restrictions relaxed, Institution Building focuses on enabling a cooperative to become viable, self-reliant, dynamic, truly member-owned and controlled enterprise. The approach attempts to assist dairy cooperatives to strengthen their business through better governance, improved operational efficiencies, professional approach towards management and performance, while striving to bring about its self-sustaining all-round improvement over the long term.


Design & Process

The first step in Institution Building focuses on helping all those associated with the cooperative to achieve a shared vision -- most importantly among the producer members and their elected representatives. The process begins with enabling the board or the management committee to evolve a set of organisational values and to define the Mission – the purpose for the institution's existence. This is followed by developing a strategic plan, including long term objectives. Next, the strategic plan is elaborated through an action plan detailing the activities to be undertaken to achieve its objectives. The design and process share a common conceptual base, but are implemented in a different way for village Dairy Cooperative Societies (DCS) and Milk Producers' Cooperative Unions.


Dairy Cooperative Societies (DCS)

A Dairy Cooperative Society (DCS) is the grass root/village level cooperative institution where members supply their surplus milk and buy the various services provided by the cooperative.



Dairy cooperative societies will operate as vibrant local business enterprises serving their members' needs effectively and economically. This will be evidenced by the three segments of DCS (members, secretary and other staff, and the Management Committee Members) owning their responsibilities.


  • The business of the society grows consistently and service-needs of members are met timely. 
  • The DCS works towards improving the business relations with the Union (providing quality milk, availing services offered by the Union and promoting and popularising the Union's business activities).

At the DCS level, all the three segments i.e. the members, staff and Management Committee Members (MCMs) are addressed to bring about desired visible and measurable changes. The IB process at DCS level constitutes undertaking a set of focused efforts to achieve the desired transformation.



The process involves making a set of facilitation efforts at the DCS level. The core themes behind these efforts are:


  •  Attitude does not change by knowledge alone but by practice and more positive reference.
  •  To sustain changes we need critical mass to be involved
  •  To harness energy we need emphatic involvement towards an expected result
  •  Social expectation is one of the greatest source of inspiration

Milk Producers' Cooperative Unions

A Cooperative Union is the district level institution formed by the union of village level Dairy cooperative Societies for the purpose of collection, processing, marketing of milk and for organising services for the benefit of members. It is expected that:




  • Union will become a vibrant business enterprise matching its competence to the best in industry towards achieving higher goals in procurement, processing, marketing, productivity and members' responsiveness. 
  • Union will develop and implement a long term plan and exhaustive competitive strategy. Union will adopt and implement policy based governance All the stakeholders of union will work together in order to bring about visible changes in the lives of producers. The IB process at union constitutes undertaking a set of focussed efforts to achieve the desired transformations.