:: Dairy Development activities in Tamilnadu started early in the year 1920. The first cooperative dairy was set up at Chennai city during the year 1927. The State Dairy Development Department in the state was established in 1958.

:: The first modern Dairy plant with a capacity to handle 50000 litres per day of pasteurised milk was established in the year 1963 at Madhavaram near Chennai with the aid from New Zealand. A dairy to handle 50000 litres of milk per day was set up at Madurai with the assistance of UNICEF in 1967.
:: The State department for dairying started milk procurement through organized village cooperatives in the year 1962. The system consisted of supervised milking at the village level and transport of the raw milk in aluminum cans through hired transport vehicles to milk chilling plant or directly to the dairy. The farmers were paid on volume basis for the milk purchased with different price structure for cow milk and buffalo milk.
:: The societies advanced loans to the farmers for purchase of milch animals. Under the Five Year Plan of the State Government a number of pasteurisation plants were set up in the cooperative sector in major towns. The milk procurement during 1972 was around 0.60 LLPD against the present procurement of 17 LLPD.