Amul, also known as the Gujarat Cooperative Milk Marketing Federation (GCMMF), signed a Memorandum of Understanding (MOU) with the Mongolian Institute of Technology on May 17.
“Under this cooperation agreement, the Joint Technical Cooperation Programme aimed to strengthen capacities of Mongolian stakeholders in rural milk procurement, processing and marketing of dairy products based on Amul’s dairy cooperative pattern will be guided by Gujarat Cooperative Milk Marketing Federation,” said a statement sent to DairyReporter.com by Amul.
Amul - owned by 3.6m Indian milk producers - plans to work with existing dairy cooperatives and milk processors in Mongolia to create an "effective procurement system" in two cities, Ulaanbaatar and Darkhan, and two provinces, Bayankhongor and Ovorkhangai.
It insists, however, that there will be "no financial investment" in the Mongolian dairy sector.
“It is our endeavor to help fellow milk producers in any part of the development world without expecting any returns. So, this project too is without expectation of any financial gain/income," it said.
The signing of an MOU by Amul and the Mongolian Institute of Technology coincided with a visit by India Prime Minister Narenda Modi to the country's capital, Ulan Bator, on Sunday.
Addressing the Mongolian parliament, Modi said: “We can use India’s expertise in dairy to launch a white revolution on these steppes.”
"Effective milk procurement system"
The proposed cooperation between Amul and the Institute of Technology grew from a visit by the Mongolian Ambassador to India to Amul in June 2014.
"During the visit they proposed that Amul should help Mongolia in restructuring of milk procurement, processing and marketing operations to achieve desired socioeconomic development of farmers of Mongolia," the Amul statement continued.
"It was discussed that GCMMF should facilitate Mongolian milk producers to restructure the dairy industry of Mongolia."
In April 2015, GCMMF delegation traveled to Mongolia, visiting dairy plants to assess the country's processing capabilities and the Institute of Technology in Ulaanbaatar to meet industry stakeholders.
Following the GCMMF visit, the Mongolian government proposed the MOA.
First and foremost, Amul will assist Mongolia in the development of an "effective milk procurement system."
It will also help Mongolia provide training on the establishment of dairy cooperatives and milk producer organisations, breeding, health and dairy processing.