Gujarat Cooperative Milk Marketing Federation Limited (Gcmmf)
Gujarat Cooperative Milk Marketing Federation Limited (GCMMF)
Objectives of the case study:
• What are the salient changes in the external environment of GCMMF? Are they posing constraints to GCMMF? What are they?
• Evaluate GCMMF.s response to these changes in terms of (i) the resource requirements of the proposed food products business and (ii) resources and capabilities available at GCMMF.
• Is GCMMF taking what it may think is the easy way out? Can it stay in its core business and make a difference to the milk sector in India (and yet be successful commercially)?
Introduction:
GCMMF was established in the year 1973 with a view to streamline the milk production and supply process in Gujrat. Its main aim was not to maximize profits but to give the dairy farmers a fair deal, who until then were being exploited by the private milk contractors. GCMMF was a great success since its inception. By providing on-time payments to the dairy farmers, veterinary services, cattle feed of good quality, education on better feeding of cattle and facilities for artificial insemination of cattle at cost or below cost gave dairy farmers an incentive to be a member of the cooperative.
In addition to producing and supplying milk of three varieties and dairy products from the surplus milk supply, GCMMF had diversified its business to related areas like edible oils-Dhara and fruit & vegetable based foods-Safal. In the year 2000, GCMMF was faced with a dilemma of whether to stick to its existing product line or to venture into the processed foods market with jams, sauces and fruit juices.
What are the salient changes in the external environment of GCMMF? Are they posing constraints to GCMMF? What are they?
The below, are the changes in the external environment of GCMMF:
Competitors:
GCMMF faced a number of competitors in each of the segments they operated in. Some of these were local player whereas other international competitors had better resources to
Objectives of the case study:
• What are the salient changes in the external environment of GCMMF? Are they posing constraints to GCMMF? What are they?
• Evaluate GCMMF.s response to these changes in terms of (i) the resource requirements of the proposed food products business and (ii) resources and capabilities available at GCMMF.
• Is GCMMF taking what it may think is the easy way out? Can it stay in its core business and make a difference to the milk sector in India (and yet be successful commercially)?
Introduction:
GCMMF was established in the year 1973 with a view to streamline the milk production and supply process in Gujrat. Its main aim was not to maximize profits but to give the dairy farmers a fair deal, who until then were being exploited by the private milk contractors. GCMMF was a great success since its inception. By providing on-time payments to the dairy farmers, veterinary services, cattle feed of good quality, education on better feeding of cattle and facilities for artificial insemination of cattle at cost or below cost gave dairy farmers an incentive to be a member of the cooperative.
In addition to producing and supplying milk of three varieties and dairy products from the surplus milk supply, GCMMF had diversified its business to related areas like edible oils-Dhara and fruit & vegetable based foods-Safal. In the year 2000, GCMMF was faced with a dilemma of whether to stick to its existing product line or to venture into the processed foods market with jams, sauces and fruit juices.
What are the salient changes in the external environment of GCMMF? Are they posing constraints to GCMMF? What are they?
The below, are the changes in the external environment of GCMMF:
Competitors:
GCMMF faced a number of competitors in each of the segments they operated in. Some of these were local player whereas other international competitors had better resources to