Before independence there was wide scale exploitation of poor and marginal milk producers by monopolist Polson dairy farm. Also lack of technology and improper supply system added terrains to the milk producer. Thus milk producers decided to pool their resources. In these prevailing circumstances and under the leadership of Tribhuvandas Patel and Sardar Vallabhbhai Patel farmers unite to form a cooperative society which directly sells milk to Bombay society. Later on this Kaira union was nourished by Dr. Kurien and Shri H M Dalaya. This movement gathered a huge success and within short span of time the model was replicated in some other districts of Gujarat like Mehsana, Banaskantha, Baroda Sabarkantha and Surat. To avoid competition among all cooperatives, an apex body of all cooperatives was formed called GCMMF.
After this cooperative movement attained a pace many changes took place. In 1952 Bombay government terminated contract with Polson and signed afresh with Amul. By 1948 more than 400 farmers joined in more village societies and quantity of milk handled by one union increased from 250-5000 litres per day. With the aid of UNICEF Dairy and milk powder plant was established in 1955. Amul also pioneered the production of milk powder and baby food from buffalo milk in 1960 first time in the world.
The structure of Amul was formulated in a three tier system: - Dairy cooperative society being at the bottom village level and Milk federation at the top state level with Milk union at the