(1) Assure a remunerative price for the milk produced by the member of the Milk Producers' Co-operative Societies through a stable, steady and well organized market support.
(2) Distribution of quality milk and milk products to the consumers at reasonable price.

Keeping these objectives in mind, a number of activities are undertaken by the Dairy Development Department, viz., Provision of free veterinary health cover to all animals owned by the members of milk cooperatives, implementation of Artificial Insemination Programme, supply of balanced cattle feed and inculcation of farmers with the modern animal husbandry methods and practices.

All activities, which are essential for the up gradation of the milch animals and improving their productivity in the long run, have been undertaken.

Provision of necessary infrastructure facilities for marketing milk and milk products and supply of quality milk to the consumer has been made by way of establishing new chilling centres, pasteurization plants and adoption of modern processing system.

The Commissioner for Milk Production and Dairy Development is the Head of the Dairy Development Department. He is the functional registrar in respect of Dairy Co-operatives in the State. He is also the Ex-officio Managing Director of the Tamilnadu Cooperative Milk Producers' Federation Limited. i.e. Aavin.

Functions of the Dairy Development Department

The main functions of the Dairy Development Department include Organisation of societies, registration of societies, supervision and control of primary milk cooperatives, District Cooperative Milk Producers Unions and Tamilnadu Cooperative Milk Producers Federation.

The Dairy Development Department exercises statutory function - like Inquiry, Inspection, Surcharge and Super session, appointment of special officers, liquidation and winding up of dormant Societies etc. The Commissioner for Milk Production and Dairy Development, Deputy Milk Commissioner (Co-operation), and Circle Deputy Registrars (Dairying) are vested with quasi-Judicial powers in respect of settlement of disputes, appeal, revision and review under various provisions of Tamilnadu Cooperative Societies Act, 1983 & the Tamilnadu Cooperative societies Rules, 1988 made there under.

Primary Dairy Cooperative Milk Societies

A minimum of 25 or more individuals competent to contract under section 11 of the Indian Contract Act of 1872, owning milch animals, can form a Primary Dairy Cooperative Society, with one or more villages as its area of operation. Such persons have to approach the Circle Deputy Registrar's (Dairying) office functioning at the District for further guidance. The members of Primary Cooperative milk society have to supply milk to the Society which will procure milk on quality basis and they will receive milk cost once in 10 days / 15 days from the Society. Milch animals are provided with free veterinary health cover, artificial insemination and the supply of balanced cattle feed. Inductions of farmers on modern animal husbandry practices are aimed at by upgrading the milch animals and thereby improving their productivity in the long run for the benefit of the members.

Women Milk Producers' Cooperative Societies

In order to encourage the women members to contribute more to the dairy sector, they are being called upon to organise women milk producers' cooperative societies in their respective areas. There are 1210 women milk Producers’ cooperative societies functioning in Tamil Nadu.