The Dairy Development Department was established in 1958 in Tamilnadu. The administrative and statutory control over all the milk cooperatives in the State were transferred to the Dairy Development Department on 1.8.1965. The Commissioner for Milk Production and Dairy Development was made as the functional Registrar under the Tamilnadu Cooperative Societies Act. With the adoption of 'Anand pattern' in the State of Tamilnadu, Tamilnadu Co-operative Milk Producers' Federation Limited was registered in the State on 1st February 1981. The commercial activities of the Department such as Milk Procurement, Processing, Chilling, packing and sale of milk to the consumers etc., hitherto dealt with by the Tamilnadu Dairy Development Corporation Ltd., were transferred to the newly registered Tamilnadu Co-operative Milk Producers' Federation Limited, popularly known as "Aavin".
In the wake of liberalization policy, private dairies have also entered into the field of dairying. As per the directions of the Hon'ble Chief Minister of Tamilnadu high priority has been given for improving the performance of milk Co-operatives by adopting a systematic approach and proper strategy in Milk Co-operatives. Significant achievement has been made by Milk Producers' Cooperative Societies, Unions and Federation in the State of Tamilnadu.
The cattle population in India is approximately 15% of total cattle population in the world. India stood no. 1 position in milk production. Tamilnadu is one of the leading state in milk production. The milk production in Tamilnadu per day is 145.88 Lakh litres.