What is the primary function of milk marketing cooperatives?

The primary function of milk marketing cooperatives is to process surplus milk. These cooperatives play a crucial role in the dairy industry by gathering milk from multiple dairy farmers and managing the distribution to various markets, which includes processing it into products like cheese, yogurt, and butter. This processing capability allows cooperatives to effectively handle fluctuations in milk supply and demand, ensuring that dairy farmers receive stable pricing and that consumers have access to processed dairy products.

While marketing milk directly to consumers is valuable, it is not the primary focus of cooperatives, as they typically serve more as intermediaries between farmers and larger markets. Similarly, regulating dairy prices is the responsibility of government agencies rather than cooperatives. Providing loans to farmers can be a function of cooperatives, but it is not their primary purpose; instead, the emphasis is primarily on processing and marketing the milk produced by cooperative members.