𝐓𝐡𝐞 𝐀𝐦𝐮𝐥 𝐌𝐨𝐝𝐞𝐥
This is how Amul works. It has a three-tiered structure.

Every milk producer of the village is a member of the Village Dairy Cooperative Society. These members elect their representatives. These representatives together manage District Milk Unions.

These district milk unions take care of milk and milk products and their processing. They sell these products to the State Milk Federation. State Milk Federation then acts as the distributor that sells or facilitates the selling of the products in the market.

The revenue gets shared downwards in a similar fashion.

As one can understand from this model, the dairy is in control of the villagers themselves. The district unions manage their processing and packaging.

These unions employ professionals to manage the dairy, processing, packaging, and other links in the supply chain.

Farmer organizations come together under one umbrella of Amul and they directly sell products to consumers through state milk federation.

This elimination of intermediaries could ensure a good quality product at a competitive price. This provided a stable income for marginal farmers in lean seasons as well because there are no intermediaries to take the chunk.

So even when sales are low, they have a steady sum in hand.

This model has become a case study in business schools. It showed the success of cooperatives. It showed how the benefits trickle down from the market to the producer at the bottom of the pyramid.