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

2. Karnataka Cooperative Milk Producer’s Federation Ltd (KMF)
Name - Group 2
Roll No
Deepak Ramakrishnan 8
Krishna Prasad 26
Shoaib Shaikh 51
Sarina Tellis 54
Jaideep Parchure 60

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 1976 - 1977 2009 - 2010 (Upto July 2009)
(Upto July 2009)
Diary Cooperatives
Nos.
416
11,542
Membership
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

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
Breed
No of doses
Jersey
108,356
Holstein - Friesian
196,350
Murrah
12,138

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 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

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
                                                  
                                         
                                                  
                                         
                                                  
                                         
MILK - ESSENTIAL FOR NOURISHMENT
 MILK - ESSENTIAL FOR NOURISHMENT
 MILK - ESSENTIAL FOR NOURISHMENT
 MILK - ESSENTIAL FOR NOURISHMENT

21. 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

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