The rearing of milch cows is a common and lucrative activity with farmers across Tamil Nadu. Some of our SHG members have one or two animals, many have as many as five. Where the opportunity exists, SHG members sell the milk twice a day to a nearby collection centre which then sends it on to a commercial milk chilling and processing plant.

Around Vembaneri in the Salem area for example, hundreds of MFI SHGs supply milk to the well-known Hatsun Dairy, owners of the Arokya and Hatsun brands of fresh milk. The milk is tested on delivery for fat content and collected in the company’s own cans. Each SHG member has a passbook into which the daily quantity of milk, along with quality parameters, is entered. Payment is made to the SHG members once a week on an appointed day, unfailingly. On an average, a farmer delivers 5 litres a day twice a day and makes between Rs.9.50 and Rs.13 per litre, depending on the quality of the milk. It is not unknown for a farmer to be paid as much as Rs.14 for a litre when the milk is of exceptional quality.

Hatsun, which sells approximately 1.50 million litres of milk every day, also advises farmers on ways to grow herd size, adopt better animal management methods and hygienic milking practices and to use nutritious feed. The company also helps the members with free veterinary advice and vaccination programmes for their cattle.


Note: Figures quoted are approximations and liable to change

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