The Punjab State Cooperative Milk Producers’ Federation Ltd, popularly known as Milkfed Punjab, came into existence in December 1973 to boost the dairy farming in the state. The objectives of the Federation were to provide a remunerative market to the Milk Producers in the State through value addition and effective marketing of the produce. The other objective was to provide technical inputs to the milk producers for enhancement of milk production.

Although the federation was registered much earlier, it took its current bigger role, in year 1983 when all the milk plants of the erstwhile Punjab Dairy Development Corporation Limited were handed over to Cooperative sector under Operation Flood, to give the farmers a better deal and customer’s better products. The setup of the organization is a three tier system, Milk Producers Cooperative Societies at the village level, Milk Unions at District level and Federation as an Apex Body at State level. MILKFED Punjab has continuously advanced towards its coveted objectives well defined in its byelaws. Currently Milkfed Punjab has around 7500 village milk producers’ cooperative societies, with over 4,00,000 members. These village level cooperatives work under 11 district milk producers’ unions with 10 milk plants having a consolidated milk handling capacity of around 18,00,000 litres per day.