The paper focuses on Idara-e-Kissan, a vertically integrated cooperative in the dairy sector, which procures fresh milk, processes it and uses the profits earned in urban milk product markets to provide development services to member farmers. The analysis suggests that, compared to a control group of non-members, the cooperative's members had 29% higher net returns per milk animal, 9% more milk buffaloes, 6% fewer dry buffaloes and they used three times more milk fat-enhancing cottonseed cake. The members had better access to animal vaccination, artificial insemination, and visits from livestock extension workers; they were able to secure more animal treatments per year, and reported greater satisfaction with service provision. The cooperative's successes were more modest in areas where the benefits of inputs and services provided were more public, e.g. livestock breed improvement and enhancing fodder productivity, indicating that there is an important role for the government in supplying public goods such as livestock/agriculture R&D.
JEL Classification: L66, Q12, Q16, Q181 The traditional milk collector who goes from door to door collects the milk and sells it to other consumers in the village, nearby town, or to milk shops or beoparis/dodhis from the town. 2 Village milk collector, a term popularized by commercial milk collectors such as Nestle, Idara-e-Kissan and others, refers to the person collecting milk from farmers on their behalf. The VMC does not go from door to door but maintains a fixed place in the village where the individual farmers bring their milk.