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ManagementGrowth StrategyFood & BeverageBeginner1946
Amul: Cooperative Dairy Revolution
The challenge
Amul was founded in 1946 in Anand, Gujarat, when dairy farmers were being exploited by middlemen who paid them a fraction of the market price. Farmers had no bargaining power and no way to store or process milk independently.
The strategy
Tribhuvandas Patel and later Verghese Kurien created a cooperative model where farmers owned the entire value chain — collection, processing, branding, and distribution. Profit flowed back to farmers rather than to middlemen or corporations.
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Try the full case free →Key lessons (preview)
- Cooperative ownership models can create massive value for producers often exploited by middlemen.
- Brand building at the farmer level creates long-term loyalty and pricing power.
- Infrastructure investment in collection and processing is what enables fair farmer payments.