B. Producer organisations:

While it was realised that the active participation of members of milk producer organisation should be encouraged it was imperative to involve farmers right from the planning stages. It was further pointed out that many cooperatives fail because of lack of active participation and therefore it is felt that the most well known and active members in the group should be involved to call the meetings and encourage the other activities of the cooperative.

It was pointed out that experience in many developing countries has shown that credit for improvement of production facilities is preferably offered through the buyer/processor of the milk. By deducting repayments from dues for milk supplies such loans can easily be recaptured.