OMFED Success Story: How a Cooperative Revolution Transformed Odisha’s Dairy Economy

Dairy, once seen as a fragmented livelihood in rural Odisha, has evolved into a powerful engine of social and economic growth, thanks to OMFED (Odisha State Cooperative Milk Producers’ Federation Ltd.).

Founded in 1985 and headquartered in Bhubaneswar, OMFED has become Odisha’s largest and most trusted dairy brand by connecting thousands of rural milk producers with millions of urban consumers through a farmer-led cooperative model.

Today, the brand stands as a symbol of rural empowerment, brand trust, and sustainable agribusiness, reporting a record turnover of ₹1,028 crore in FY24.

Its journey from a small cooperative initiative to a state-dominant dairy enterprise demonstrates how community ownership and innovation can drive both economic and social transformation.

OMFED Origins: Building a Cooperative Movement in Odisha

OMFED’s story began with a mission to bring fairness, stability, and opportunity to Odisha’s rural dairy farmers. Established to empower local producers and eliminate middlemen, the federation adopted the “Anand Pattern” cooperative model pioneered by Amul ensuring both social impact and economic inclusion.

The cooperative operates through a three-tier structure that seamlessly connects farmers to consumers:

• Village Cooperative Societies (VCS): At the grassroots, individual farmers voluntarily supply milk, ensuring direct participation.
• District Milk Unions (DMUs): These unions collect, chill, and test milk while providing farmers with technical and veterinary support.
• State Federation (OMFED): At the apex, the brand oversees processing, packaging, and marketing dairy products across Odisha, linking rural livelihoods with urban markets.

This inclusive structure eliminated middlemen, ensured fair pricing, and returned profits directly to farmers empowering hundreds of thousands of producers and turning dairy farming into a stable and dignified source of income.

Keys to Success: Empowerment, Quality, and Trust

OMFED’s model isn’t just about milk, it’s about transforming lives. Farmers receive timely payments, training in animal husbandry, and access to feed, breeding, and veterinary care, improving productivity and income stability.

For consumers, OMFED stands for purity, quality, and trust. From milk, curd, and paneer to ghee, sweets, flavored milk, and ice cream, OMFED products have become staples in Odia households. The brand’s strong local identity has made “OMFED” synonymous with milk itself in many homes.

Growth: From Dairy Cooperative to Multi-Category Brand

Over the years, OMFED has evolved beyond dairy into a multi-category enterprise. It has diversified into organic products, horticulture, packaged drinking water, and even chocolates, showcasing its ability to adapt to changing consumer preferences.

Its retail transformation has been equally remarkable. What began as small milk booths has evolved into departmental stores, selling not only OMFED products but also FMCG items and digital services. The cooperative has also ventured into modern retail and e-commerce, with online ordering options and ice cream parlours that boost brand visibility and accessibility.

Collaborations with the National Dairy Development Board (NDDB) and state initiatives such as the Mukhyamantri Kamdhenu Yojana have further strengthened OMFED’s supply chain and enhanced farmer welfare.

Financial Growth and Market Presence

OMFED’s robust structure and diversification strategy have driven impressive financial growth. The cooperative reported a ₹1,028 crore turnover in FY24, marking its best-ever performance.

In the first quarter of FY25 (April–June 2025), it achieved a record ₹247 crore turnover.

With an extensive distribution network spanning nearly every town and city in Odisha, OMFED has become an essential part of the state’s food ecosystem, connecting rural producers and urban consumers with efficiency and transparency.

Currently, the federation is led by Shri Vijay Amruta Kulange, IAS, who was appointed as Managing Director (MD) in March 2024.

Challenges and the Road Ahead

Despite its strong legacy, OMFED faces growing competition from national dairy giants like Amul, Mother Dairy, and Country Delight, as well as local players such as Pragati and Milky Moo (by Milk Mantra, now acquired by Hatsun Agro).

To maintain its leadership and relevance, OMFED is focusing on several strategic priorities:

• Optimizing the supply chain with better logistics, expanded cold storage, and waste reduction.
• Embracing digital transformation through data analytics, real-time tracking, and online sales.
• Expanding into untapped rural and interstate markets while reinforcing its Odia roots.
• Revitalizing its brand identity and modernizing retail experiences to appeal to younger consumers while preserving traditional trust.

These initiatives aim to ensure operational efficiency, consumer convenience, and sustained brand loyalty in an increasingly competitive dairy market.

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A Legacy of Cooperative Excellence

OMFED’s story is more than a dairy success — it’s a testament to the power of collaboration, trust, and purpose-driven leadership.

In a state with limited industrialization, OMFED has created sustainable livelihoods, inspired social change, and instilled local pride through its cooperative model.

By blending heritage with innovation, OMFED continues to redefine how a homegrown enterprise can empower farmers, strengthen rural economies, and earn the enduring trust of millions.