Karnataka Cooperative Milk Producer’s Federation Ltd (KMF)

1. Karnataka Cooperative Milk Producer’s Federation Ltd (KMF)

2. Karnataka Cooperative Milk Producer’s Federation Ltd (KMF)

3. Genesis Issues/concerns of Milk producers/farmers: • 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

4. Genesis Issues of a end buyer/consumer: • 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

5. Why have a Diary Cooperative? • 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

6. World Bank Study 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.

7. Karnataka Cooperative Milk Producer’s Federation Ltd (KMF) • 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

8. Objectives of KMF • 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.

9. Establishment of KMF Cooperative • 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)

10. Growth Process

11. Structure of KMF Cooperatives

12. Milk Cooperative Structure & Supply Chain • 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

13. Milk Procurement through CANS and BMC

14. Members in DCS

15. KMF – Milk Unions 13 Milk Unions • 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

16. KMF Nandini Sperm Station • 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

17. 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%. 

18. CENTRAL TRAINING INSTITUTE Domestic Enquiryv    Quality Improvement Techniquesv    Factory Acts & Rulesv    Training of ESI, PF, Bonus, Gratuity Actv    Training on Income Tax, Central Excise Actv    Personal Managementv    Financial Management for Non - Financial Personalsv    Work Culture, Team Buildingv    Marketing Trainingv    Training for Acct. Asst.v    ISO Trainingv    Lab Operators Trainingv    Admn. Asst. Trainingv    Hygiene and Sanitation in Dairy Plantsv    Dairy Plant Maintenancev    QC of Milk, Milk Products and Packaging Materialsv    Energy Conservation in Dairy Plantsv    Tally Package (Computer Training)v    Basic Computer Training

19. 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

20. MILK - ESSENTIAL FOR NOURISHMENT

21. SUPPORT TO TRAINING & EMPLOYMENT PROGRAMME (STEP) The program of STEP advocates the objectives of extending training for upgradationof 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

22. KMF Milk Producers convention Chief Minister Sri B.S.Yeddyurappa was conferred with Ksheera Bandhu Award at State level Milk Producers Convention

23. Product • 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

24. Packaging • 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.

25. Price • 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

26. Place • 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.

27. 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

28. Promotion

29. Technological Advancement • 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.

30. Quality Advancement - UHT • 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.

31. Achievements by KMF • 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

32. Recommendation Marketing and Distribution outside State of Karnataka • 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

33. Recommendation Awareness and Training Program for Milk Producers • 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 • 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.

34. Thank You