Mehsana Dairy to break away from GCMMF

India’s biggest milk co-operative Gujarat Co-operative Milk Marketing Federation (GCMMF), owner of the Amul brand, is splitting its businesses.

GCMMF’s fourth largest member, Mehsana Dairy, which accounts for over 10% of its revenue, has decided to break away and chart its own path nationally with ‘Dudhsagar’ brand.

Mehsana was one of the founder members of GCMMF in 1973 and until a decade ago procured the most milk for the co-operative.

However, over the years Mehsana’s milk procurement has stagnated at 1.8 million litres a day while it has capacity for 7.3 million litres a day resulting in a debt of Rs 1,500 crore. Meanwhile Banaskantha has become the most productive with a procurement of 5 million litres per day.

Mehsana Dairy has been at loggerheads with GCMMF ever since its former chairman, Vipul Choudhury, was removed as chairman of GCMMF after the BJP came to power at the centre in 2014.

Mehsana Dairy, which is the fourth largest dairy union of GCMMF, has announced it will break away and register itself as a multi-state co-operative (which will enable it to procure and sell across the country).

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