Karnataka Cooperative Milk Producer’s
Federation Ltd (KMF)
Karnataka Cooperative Milk
Producer’s Federation Ltd (KMF)
Name - Group 2
Deepak Ramakrishnan
Krishna Prasad
Shoaib Shaikh
Sarina Tellis
Jaideep Parchure
Roll No
8
26
51
54
60
Genesis
Issues/concerns of Milk producers/farmers:
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Lack of know-how in terms of increasing the
quantity of milk.
Lack of proper fodder to improve the quality of
milk etc
No access to superior breeding methods
Not given the right price for milk produced
Uncertainty in terms of demand and supply
Excess supply of milk may not be purchased by
the buyer
Milk producers/ Farmers not paid on time by
middle men
Genesis
Issues of a end buyer/consumer:
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Unavailability of quality milk and milk products
Hygienic factors is a major issue
Lack of variety in terms of milk- toned/ skimmed
milk/ fat etc
Shortage of milk when demand is high during
festivals etc
No fixed price
Why have a Diary Cooperative?
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Transparency in the entire process of
cooperative society.
Elimination of middlemen in the Diary sector.
Demand and supply can be balanced. Ex:
excess milk can be converted to Milk Powder
and other milk products like milk peda etc
Right price is given to the Milk Producer thereby
augmenting their livelihood.
Access to information, training and technical
know-how to increase the production of milk,
hygiene conditions and quality of milk.
Assistance in breeding facilities
Availability of the milk across
World Bank Study
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The following are the observations on the effect
of cooperative in Karnataka:
Villages with Dairy Cooperatives are much better
than those without
Families with dairy cattle are economically better
than those without dairy cattle.
Women who had no control on household
income have better control in terms of ‘Milk
Money’.
Single Commodity ‘MILK’ acts a catalyst in the
change of the rural economy
Positive impact on those at the lower end of the
economic ladder in terms of landholding & cattle.
Karnataka Cooperative Milk
Producer’s Federation Ltd (KMF)
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2nd Largest Dairy Co-operative Society
(DCS) in the country
1st in South India in terms of Procurement
and Sales
Core function is to Market Milk and Milk
products
Brand Name – Nandini
13 Milk Unions – procure milk from
Primary DCS
Objectives of KMF
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To market milk and milk products under brand name
‘Nandini’ at the state level
To plan strategies and investments for the market and for
the cooperative
Providing assured and remunerative market for milk
producers/ farmers
Hygiene and Quality milk and milk products to urban
consumers
To build village level co-operative to manage dairy
activities
To facilitate rural development by providing opportunities
to self employment at village level, preventing migration
to urban areas.
Establishment of KMF
Cooperative
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Started in 1974
Diary cooperatives established on the lines of
AMUL.
Three tier structure:
Base Level: Village Diary Cooperatives Societies
(DCS)
Middle Level: District Level Milk Unions
Apex body: KMF
Brand Name: Nandini (Milk and milk products)
Growth Process
1976 - 1977
2009 - 2010 (Upto
July 2009)
Diary Cooperatives
Nos.
416
11,542
Membership
Nos.
37,000
2,018,788
Milk Procurement
Kgs/Day
50,000
3,668,314
Milk Sales
Lts/Day
95,050
2,377,364
Cattle Feed Consumed
Kgs/DCS
220
3,064
Daily Payment to Farmers
Rs. Lac
0.90
449
Turnover
Rs. Crores
3,135
Structure of KMF Cooperatives
KMF
District
Dairies/Milk
Unions
DCS – Village Level
Milk Producers
Milk Cooperative Structure &
Supply Chain
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Milk Producers sell milk to DCS. Commitment of
quantity of milk supplied is given by producers.
Payment is based on the quality of milk supplied.
More SNF and Fat more incentives given.
Milk procurement is done through CANS and BMC
depending upon the location
Apex body – KMF for marketing and distribution of
milk through the brand name - Nandini
Milk Procurement through CANS
and BMC
Members in DCS
25
21.10
17.77
20
14.69
13.28
No of
Members in
DCS (Lacs)
15
9.23
10
3.8
5
1.46
0.69
0
1977
1980
1985
1990
1995
Years
2000
2005
2010
KMF – Milk Unions
13 Milk Unions
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Bangalore Milk Union
Belgaum Milk Union
Bellary Milk Union
Bijapur Milk Union
DK Milk Union
Dharwad Milk Union
Gulbarga Milk Union
Hassan Milk Union
Kolar Milk Union
Mandya Milk Union
Mysore Milk Union
Shimoga Milk Union
Tumkur Milk Union
KMF Nandini Sperm Station
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Engages in superior quality frozen
sperm to all DCS through Milk Union.
One of the Largest producers and
suppliers of quality frozen semen
under the Cooperative Sector.
Cost:
Rs 12/- per dose irrespective of
breed and pedigree to Milk Union
Rs 15/- per dose to all others
Breed
No of doses
Jersey
108,356
Holstein - Friesian
196,350
Murrah
12,138
CATTLE FEED PLANTS
To supply 3 varieties of balanced Cattle Feed & Mineral Mixture,
Karnataka Milk Federation owns Four Cattle Feed plants with
installed capacity of 700 MTs per day and are manufacturing
25,000 MTs Cattle Feed on an average per month.
Present utilization of the plants on an average is more than 140%.
CENTRAL TRAINING INSTITUTE
Domestic Enquiry
v Quality Improvement Techniques
v Factory Acts & Rules
v Training of ESI, PF, Bonus, Gratuity Act
v Training on Income Tax, Central Excise Act
v Personal Management
v Financial Management for Non - Financial Personals
v Work Culture, Team Building
v Marketing Training
v Training for Acct. Asst.
v ISO Training
v Lab Operators Training
v Admn. Asst. Training
v Hygiene and Sanitation in Dairy Plants
v Dairy Plant Maintenance
v QC of Milk, Milk Products and Packaging Materials
v Energy Conservation in Dairy Plants
v Tally Package (Computer Training)
v Basic Computer Training
QUALITY CONTROL DIVISION
The Karnataka Milk Federation has accorded highest priority for the
quality of milk and milk products. Hence, the holistic approach of
“Quality Excellence from Cow to Consumer” has been adopted,
wherein constant efforts to improve quality at all stages of milk
production, procurement, processing and marketing are being
made. The Quality Control Division is attempting to facilitate these
quality management and improvement processes
MILK - ESSENTIAL FOR NOURISHMENT
SUPPORT TO TRAINING & EMPLOYMENT PROGRAMME (STEP)
The program of STEP advocates the objectives of extending training for upgradation
of skills and sustainable employment for women through a variety of action-oriented
projects, which employ women in large number.
The scheme covers 8 traditional sectors of employment. Dairying and Animal Husbandry
is one such sector, which gives sustainable employment and income.
The STEP program is implemented with 90% financial assistance from
Government of India's Human Resource Development Division,
Women and Child Development Department. And 10% contribution
should be made by the implementing agencies
KMF Milk Producers convention
Chief Minister Sri B.S.Yeddyurappa was
conferred with Ksheera Bandhu Award
at State level Milk Producers Convention
Product
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Homogenized toned milk
Full cream milk
Slim/ Smart milk
Butter milk
Ghee/ Butter/ Panner/
Cheese
Mysore pak/ Peda/ Gulab
Jamun mix/ Badam Mix/
Ladoo
Flavoured milk
Khova
Ice cream
Milk Powder
Curd
Packaging
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Milk available in Tetrapak, Plastic pouch
depending on the type of milk
Silm/Smart milk is available in Tetrapaks
whereas homogenized milk is available in
Plastic pouch
Tetrapak – 1 ltr packs
Plastic pouch – 500 ml and 1 ltr packs
Also available in 5 lt packs for Industrial and
Hotel/ Restaurant requirements
With reference to other items like butter/ ghee
etc are available in small sizes namely 250 ml
etc.
Price
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Economical pricing which ensure
sustainable existence for the federation
Competitive pricing
Price of 1ltr : Rs 21/- for homogenized
toned milk.
Cost given to milk producer is approx : Rs
12.50/- per ltr
Place
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Currently KMF is marketed only in the
state of Karnataka and the neighboring
state of Goa.
Sold through Milk booths/ Dairy stalls/
Retail stores/ Convenience stores
Availability is 365 days, 24/7 irrespective
of power cut/water cut/ transport strike etc.
Promotion
Mainly through Print media – newspaper/
magazines etc.
 Target audience: Housewives, young
mothers, Children
Emphasis on the following during promotion:
 Promotion of Brand Nandini
 Quality of milk
 Types of milk
 Importance of milk
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Promotion
Technological Advancement
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Coding used to be done manually using
rubber stereos on milk pouches.
This includes printing the manufacturing
date and machine code.
Increase in the no of complaints due to
illegible codes using manual rubber
stereos.
Ink jet printers was used to code one/two
lines on their pouches at the speed of 80
mts/minute.
This technology was further extended to
all their line and brand extensions.
Quality Advancement - UHT
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UHT – Ultra High Temperature
Packaging: Tetrapak
Milk is subjected to temperature of 137
Deg Celsius for 4 seconds
It is instantaneously cooled to retain all the
essential vitamins and nutritional value of
milk.
Storage of milk without refrigeration for
over 60 days.
Achievements by KMF
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Has created total transparency in “Milk
Business”
No black marketing of milk & milk products in the
entire state
Consumers are assured of High quality milk
“Nandini” ata reasonable price 365 days
Varieties of mil as per needs/ usages
Fair price for farmers
Timely payments to producers
Large scale employment at rural area
70% Market share in Karnataka
Recommendation
Marketing and Distribution outside State of Karnataka
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Brand name Nandini needs to be look into markets other
than Karnataka.
Currently it is exporting milk and milk products to Goa
from its Belgaum Milk Union.
There is a market for its products in the state of Kerala
and Andhra Pradesh.
The cooperatives in Kerala and Andhra Pradesh (AP) has
not been successful to the extent of KMF.
There is a scope for improvement with DCS – MILMA in
Kerala.
This market can be explored by KMF.
After successfully launching in Kerala and AP, the
Improvement in branding with emphasis in quality and
technological advancement of its milk and milk products
will be a differentiating factor
Recommendation
Awareness and Training Program for Milk Producers
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To ensure the quality of milk is improved.
The greater the time period between milking the better
the quality of milk.
Awareness in terms of health and hygiene facts of
animals is essential for quality improvement.
Increase in BMC & Improved Transportation system
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Increase in the number of BMC for every district to
ensure tankers (9000 lts capacity) are utilized for
transportation;
Improvement in the CAN transportation network between
the milk producers and chilling stations/BMC.
Current scenario, private entrepreneurs are transporting
the same based on profitability of routes etc. This
requires public/private partnership to be sustainable.
Thank You