Before the formation of the Union, the dairy business in the State of Sikkim was looked after by Department of Animal Husbandry. Sikkim Livestock Development Corporation was formed in 1977 to look after this business.
Later in order to organise this dairy business on the pattern of AMUL, a team from National Dairy Development Board was deputed to organise milk collection centres and establish modern dairy in the state.
45 milk collection centres was registered by the department of Co-operation and Sikkim Cooperative Milk Producers’ Union Limited came into operation on 1st July 1980, and took over the business from Sikkim Livestock Development Corporation Limited.

• 56 registered milk producers’ cooperative societies.
• 2000 farmer members.

Gangtok Dairy Plant commissioned on 2nd October 1982.

• 112 Milk Producers’ Cooperative Societies organised covering 3600 farmers.
• 35 Artificial Insemination Centres run by the Union.
• Liquid Nitrogen Plant in Gangtok commissioned.
• Cooperative Excellent Award 2012 for best performing Apex Cooperative issued by Cooperative Department, Govt of Sikkim.

Integrated Dairy Development Project started in three districts – East, South & West.

• Follow-up study under ISPS to prepare Turn Around Plan.
• Cooperative Development programme implemented under this Turn Around Plan to train farmers regarding cooperative dairying.

Effluent Treatment Plants installed in dairy plants at Gangtok and Jorethang. A Director of Sikkim Milk Union became one of the Board of Directors of National Cooperative Dairy Federation of India.

New products launched - Ice-cream

National Programme for Dairy Development started.