Client: Malaikkal

Business: Dairy cooperative

Location: India

Gender: Woman

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A loyal ECLOF client has helped more than 20 of her neighbors in Southern India to earn a tidy profit from their milk.

When Malaikkal came to ECLOF India for advice in 2003, her dairy cooperative was losing money. Malaikkal, 55, had founded the co-op in 2000 out of good intentions, but expensive debts and underpricing were destroying profits.

“I now procure nearly 250 liters of milk every day from the members of the cooperative to sell on. This has boosted my business,” says Malaikkal.

The cooperative, in Dindigul district in the state of Tamil Nadu, collects the milk from members’ farms – including Malaikkal’s own – and sells it on to shops. The members, mostly women, own 35 cows in total. The village council and the Department of Rural Development helped Malaikkal set up the co-op in 2000.

“Before I got the first loan from ECLOF”, says Malaikkal, “I had only one cow and I couldn’t grow my business because the money lenders I went to charged exorbitant rates,” – enough to eat up all her profits. Four successive ECLOF loans have helped Malaikkal buy four more cows and pay for her son’s wedding. She has borrowed US$ 1057 since 2004.

With profits from her milk sales she has renovated her and husband Muthan’s house and invested in gold jewellery, which holds its value well.

Malaikkal was so inspired by ECLOF’s help for her business that she decided to set up a group to help other poor women save and get loans. She founded Alukkuvarpatti Self Help Group in 2003.

“What makes Malaikkal so special,” says ECLOF branch manager, ”is that not only has she lifted herself out of poverty, but she encourages others to do the same.”