With the establishment of such societies, more cows and other dairy animals are reared. these animals are taken care of, treated against diseases and their populace develops. due to this, hygienic cows are produced and the standard of living of their owner increases. this results in the increase in PPP i.e. purchase power parity. this increases GDP per person and on an average, the GDP of the nation increases and the country develops.
He milk producers of the village with the support of the milk union form a village dairy cooperative society. The milk producers become members by buying a minimum of one share of the society and paying an entrance fee as per the bye-laws. All these members form the general body of the society, which has the supreme powers subject to the State Cooperative Act, Rules and Bye-laws.    The society has an elected Managing Committee (MC) including the Chairman from amongst the member producers as per the provisions of the bye-laws. All the positions of the MC are honorary. The committee employs paid staff to run the day-to-day affairs of the society. The number of such staff depends upon the size of the business of the society.The provisions of the bye-laws govern the term of the MC and the Chairman of the society. The committee decides policy matters and frames guidelines for efficient running of the society. The committee holds its monthly meetings to discuss issues pertaining to society, members, milk producers, suggestions/guidelines provided by the Milk Union and other relevant matters.