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ABOUT US

Karnataka Cooperative Milk Producers' Federation Limited(KMF) is the Apex Body in Karnataka representing Dairy Farmers' Co-operatives. It is the second largest dairy co-operative amongst the dairy cooperatives in the country. In South India it stands first in terms of procurement as well as sales. One of the core functions of the Federation is marketing of Milk and Milk Products. The Brand "nandini" is the household name for Pure and Fresh milk and milk products.

KMF has 13 Milk Unions throughout the State which procure milk from Primary Dairy Cooperative Societies(DCS) and distribute milk to the consumers in various Towns/Cities/Rural markets in Karnataka.

The first ever World Bank funded Dairy Development Program in the country started in Karnataka with the organisation of Village Level Dairy Co-operatives in 1974. The AMUL pattern of dairy co-operatives started functioning in Karnataka from 1974-75 with the financial assistance from World Bank, Operation Flood II & III. The dairy co-operatives were established under the ANAND pattern in a three tier structure with the Village Level Dairy Co-operatives forming the base level, the District Level Milk Unions at the middle level to take care of the procurement, processing and marketing of milk and the Karnataka Milk Federation as the Apex Body to co-ordinate the growth of the sector at the State level.

Coordination of activities among the Unions and developing market for Milk and Milk products is the responsibility of KMF. Marketing Milk in the respective jurisdiction is organized by the respective Milk Unions. Surplus/deficit of liquid milk among the member Milk Unions is monitored by the Federation. While the marketing of all the Milk Products is organized by KMF, both within and outside the State, all the Milk and Milk products are sold under a common brand name NANDINI.

THE GROWTH PROCESS

The growth over the years and activities undertaken by KMF is summarised briefly hereunder:

KEY

ITEMS

       UNIT

1976-77

 

2013-14



2014-15

(Upto June'14)

Dairy Co-operatives

Nos

416

13889 Registered

12334 Functioning

13964 Registered

12414 Functioning

Membership

Nos

37000

22.47 Lakhs

22.60 Lakhs

Ann.Avg. Milk Procurement

Kgs/day

50000

Avg.   51.65

Peak Proc. 56.33 

   (Sep'13) LKPD

Avg.  56.05

 Peak Proc 62.78

 (June'14) LKPD

Milk Sales

Lts/day

95050

30.00 LLPD

Curd:3.18 LKPD 

Good life 3.62 LLPD

(UPTO MAR ’14)

 

31.30 LLPD

Curd: 4.17 LKPD

Good life 3.56 LLPD

(UPTO JUNE ’14)

Cattle Feed Consumed

Kgs/DCS

220

3296

3585

Daily Payment to Farmers

Rs.Lakhs

0.90

1202

13.23

TotalTurnover

(KMF & Unions)

Rs.Crores

8.82

9408

 


UNITS OF KMF

KMF has the following Units functioning directly under its control:

  • Mother Dairy, Yelahanka,Bangalore.
  • Nandini Hi-Tech Product Plant, Channarayapatna.
  • Nandini Milk Products, KMF Complex, Bangalore.
  • Cattle Feed Plants at Rajanukunte/Gubbi/Dharwad/Hassan/Shikaripura.
  • Nandini Sperm Station (formerly known as Bull Breeding Farm & Frozen Semen Bank) at Hessaraghatta.
  • Nandini Packaging Film Plant at Munnekolalu, Marathhalli.
  • Central Training Institute,Bangalore & Training Institutes at Mysore/Dharwad
  • Ice Cream Plant, Bellary.

 

FUTURE PROJECTS

1

Establishment of 30 MT Powder Plant [2nd Unit] at Channaraypatana with a Powder making capacity of 7 Lakh litre at an estimated cost of Rs. 97 Crores

2

Establishment of 3.0 Lakhs litres/day capacity Mega Dairy at Chikkaballapur under Kolar – Chikkaballapur Union  at an estimated cost of Rs. 100 Crores

3

30 MTs per day Powder Plant near Ramanagar at the cost of 200 Crores 

4

Establishment of Mega Dairy with Powder Plant at Mysore at an total cost of Rs.160 crores

5

New Dairy at Chamarajnagar of 2 Lakh Litres Capacity / day with an estimated cost of Rs.95 Crores and establishment of Tetrapack Plant

6

Establishment of 3 Lakh Litres/day capacity Dairy at Davanagere from NDDB at an estimated cost of Rs.80 crores (under appraisal stage)

7

New Hi-tech Dairy at Bagalkot at an estimated cost of Rs. 25 Crores

8

Establishment of 1 TLPD capacity Chilling centre at Hunsur with Packing facility

9

50000 LPD capacity New dairy at Sirsi

10

1 Lakh Litres capacity / day dairy in Udupi District

11 Establishment of 1 Lakh Litre capacity UHT Plant in North Karnataka Bijapur District
12

Establishment of Flexi Pack Unit  & Dairy Expansion / Renovation at Mangalore Dairy at an estimated cost of Rs. 26 Crores

13

Tetra Pack Project of 11 Lakh litres/day capacity at Mother Dairy , Flavoured Milk in Pet bottle and automated production lines for butter, Panner , cheese etc

14

80000LPD capacity New UHT Plant at Koppal

15

Establishment of Flexi Pack Plant of 80 TLPD capacity at Belgaum Dairy  at an estimated cost of  Rs. 25 Crores

16

UHT Processing with Flexi Packing facility unit at Tumkur with 80 TLPD capacity at an estimated cost of Rs. 25 Crores

17

1LLPD  UHT Plant in Bangalore Milk Union area

18

Establishment of 2 Lakh Litre capacity Tetrapack at an estimated cost of Rs.32 Crores at Hassan 

19

300 MTPD Cattle Feed Plant in Ramangara Dist. at the cost of Rs.95 Crores

20

Creation of additional Raw material storage facilities in various cattle feed plants with capacity of 1MTPD at an estimated cost of Rs. 20 crores

21

Establishment of Nandini Cross-breed heifers project (Nandini Cow/Buffaloe heifers Bank) at Hessaraghatta at an estimated cost of Rs. 40 to 50 Crores in 100 acres  of land owned by KMF

22

Strengthening of Nandini Sperm Station under NDP Programme at an estimated cost of Rs. 300 Lakhs and Establishment of PT Project

23

Expansion of Pouch Film Plant at Munnekolalu for 550 MT per month at an estimated cost of Rs. 32 Crores

24

Establishment of Corrugated Box Production Plant at Challaghatta at an estimated cost of Rs.15 Crores

25

Creation of modular deep freezers in all sales Depots

26

Establishment of Fodder Densification at Bellary, Kolar and Dakshin Kannada

27

Modernization of NMP

28

Provide excellent training at Central Training Institute

29

Introduction of Nandini Packaged drinking water and Nandini cookies

30

Release of Rs. 5 Crores funds from KMF to all Dairy Cooperative Societies across the state for improvising with modern amenities


GOK Schemes

1.   Ksheera Bhagya:The innovative and prestigious program of distributing milk to school and Anganwadi children has been launched by the Karnataka Government during 2013-2014. Karnataka Government, for the first time in the history of the country, is distributing 150ml of milk to each child student 3 days a week, free of cost to 65 lakh students studying in Class 1st to 10th in 51000 schools of the state and also 39 lakhs Anganwadi children in64000 Anganwadi centres, through 13 milk unions of KMF, with a daily sale of 7 lakh litres, at the cost of 384 Crore(Upto 31.03.2014). This scheme is benefiting over 1 crore school children out of approximately 6 crore population of Karnataka state, by providing good quality, highly nutritious Nandini milk in the form of Milk powder. This scheme is also benefiting dairy farmers of the state by providing a market for 7 lakh litres surplus milk everyday. Scheme outlay for the year 2014-15 is Rs. 639 crores. 

                         pic1   

                         picKMF          

2.   Amruth Yojane: The Scheme was announced in the state budget during the year 2007-08 for socio-economic upliftment of devdasis, widows and SC and ST women by giving one milch animal to the beneficiary. The cost for one animal was Rs.20,000/- during 2007-08 to 2009-10 and subsequently the unit cost was increased to Rs.35,000/-. For widows and devdasis the subsidy is 50%, for SC - 60% and ST - 75%. 

Under the scheme as on June 2014 a Sum of Rs. 5160.00 lakhs has been released by GOK, 37385 milch cows have been purchased and expenditure of Rs. 4411.31 lakhs has been incurred.

3.   Financial Assistance / Relief ( 1000 DCS Organization): This scheme was announced in the budget during the year 2009-10 with an objective to improve rural milk marketing network by organizing more number of Dairy Cooperative Societies (DCS) in the Union of Northern Karnataka namely Dharwad, Bijapur, Gulbarga, Raichur/Bellary and Belgaum. Government of Karnataka is giving financial assistance for organizing DCS at Rs.70,000/- per DCS. Upto 2012-13 a sum of Rs. 735 lakhs released and as on June 1022 DCS has been organized and financial expenditure is Rs.661.40 lakhs.

4.   Infrastructure Development: Under the scheme during the year 2013-14 Government of Karnataka approved and sanctioned project for Rs.65 Crore such as Establishment(Completion works) and expansion of Shikaripura Cattle Plant at Rs.25 crore, Establishment of Cheese plant at Kolar Dairy at Rs.5 Crore, Strengthening of Dairy at Dharwad at Rs.10 Crore, Strengthening of Chilling Centre in Bellary Milk Union area at Rs.5 Crore, Strengthening of Chilling Centre in Gulbarga Milk Union area at Rs.5 Crore, Strengthening of Nandini milk production unit at Rs.8 Crore and Fodder development activities at Nandini Sperm Station, Hessarghatta at Rs.7 Crore. Government has released Rs.65 Crore. The programmes are under implementation.

 

6.   Milk Incentives to Milk Producers: Government announced this scheme during the year 2008-09 with an objective to encourage rural farmers to take up dairying by giving Rs.2/- per litre. Government with effect from 14.5.2013 enhanced this incentive to Rs.4/- per litre. Under this scheme upto April 2014 Government of Karnataka has released a sum of  Rs.2147.05 Crores . On an average of 7.80 lakhs milk producers per month are being benefitted by this scheme.

GOI Scheme:

  • Clean Milk production (CMP): This programme was initiated to improve the quality of raw milk at the DCS level. For this new technologies and many new equipment like Bulk Milk Coolers (BMC), Automatic Milk Collection Units (AMCU), Electronic Milko Testers, (EMT), Electronic Weigh Scale etc., were incorporated in the prospective plan to bring about changes at producer level. Under the Scheme so far a sum of  Rs.1774.24 lakhs has been released by Government of India and Rs.1722.24 lakhs has been utilized.
  • Fodder development Scheme: To improve the availability of variety of Fodder seeds, grass land development, to improve utilization of dry fodder, encouraging chaffing, bailing, densification etc., Government of India from 2005-06 has so far released Rs.771.13 lakhs out of which Rs.150 lakhs is revolving fund for fodder seed development and Rs.621.13 Lakhs for activities such as provision of Hand and Power Driver Chauf Cutter, establishment of Silage making units and Azola cultivation. Under the scheme as June 2014 a sum of Rs.523.19 lakhs has been utilized and balance is under implementation.
  • Intensive Dairy Development Project: (IDDP): Under the scheme grants are released for Processing and Marketing Milk activities, Technical input services and establishment of chilling centre BMC, dairies etc., Government of India has approved 2 project proposals in respect of :
    (1) Chitradurga Dist of Shimoga Union and released Rs.124.30 and
    (2) Bagalkote Dist of Bijapur-Bagalkote Milk Union and released Rs.111.65. The programme is under implementation
  • Rashtriya Krishi Vikas Yojane: (RKVY): Under the Scheme grants have been released for a)Accelerating Dairy Development activities at Bijapur, Gulbarga and Bellary Union, b)Bio-security Measure at Nandini Sperm Station, c)Strengthening Training centers, d)Establishment of Fodder densification units, e)Urea enrichment for crop residue programme, e) Establishment of Areca Sheath Powdering plant, g)Establishment of Mineral mixture plant at Dharwad cattle feed plant, h)Calf rearing Programme under National Mission for Protein Supplement, and i)Dairy infrastructure development in northern districts of Karnataka. So far a sum of Rs.3687.00 lakhs has been released to KMF. Rs.1858.76 lakhs has been utilized. The programmes are under progress.

National Dairy Plan

Necessity of NDP - Demand for milk is increasing rapidly in the country due to increasing population and growing incomes. According to the estimates of Planning Commission, the demand for milk is likely to be about 155 million tonnes (4,247 LKPD) by 2016-17 and 200 million tonnes (5,479 LKPD) by 2021-22. Annual average increase in the production of milk over the last 10 years has been around 3.5 million tonnes per annum, whereas there is a need to reach an average of 6 million tonnes per year over the next 12 years to meet the ever increasing demand. Hence, the National Dairy Plan (NDP) was envisaged and the first phase of NDP (NDP-I) is proposed to be implemented from 2012-13 to 2017-18.

The objectives of the NDP I : (i) Increase the productivity of milch animals and thereby increase milk production to meet the rapidly growing demand for milk; and (ii) To help provide rural milk producers with greater access to the organized milk processing sector.

The National Outlay for NDP - 1

Component

Activity

National Outlay (Rs. Crores)

Component A

Breed Improvement

715

Animal Nutrition

425

Component B

Village based Milk Procurement Systems

488

Component C

Project Management & Learning

132

Sub-total*

1760

End Implementing Agency (EIA) Contribution

282

NDDB's Contribution

200

Grand Total

2242

*Sources of Funds - World Bank (IDA) Rs.1584 crores & GOI - Rs. 176 crores


Component A - Increasing Productivity through scientific breeding and feeding

(a) Breeding - To accelerate genetic progress, the proportion of milch animals bred through AI to be raised from the present 20 per cent to 35 per cent.

(b) Increasing the production of High Genetic Merit (HGM) bulls for production of semen through progeny testing (PT) and pedigree selection (PS) programs and the import of exotic purebred bulls or equivalent embryos or frozen semen doses

(c) Increasing the production of high quality disease-free semen

(d) Setting up a pilot model for viable doorstep AI delivery services through a professional service provider. Viable doorstep AI delivery services (based on SOPs) is proposed to be implemented. About 3,000 trained mobile AI technicians would be performing up to 4 million AIs per annum.

(e) Nutrition -

i. Ration Balancing Program (RBP) - The project plans to cover about 2.7 million milch animals in 40,000 villages using about 40,000 Local Resource Persons (LRPs), who would be identified, trained and supervised by existing dairy cooperatives and producer companies. Trained LRPs would educate milk producers on the use of technologies such as feeding milch animals with bypass protein, bypass fat, area-specific mineral mixtures, treated or enriched crop residues, etc.

ii. Fodder development - Extension initiatives would cover increasing fodder yields by making available quality fodder seed to farmers, and demonstrations in silage making, conservation of green fodder through silage making and enrichment/densification of biomass for use in fodder deficit areas

(f) Computerized information systems for Enhancing Productivity -

Breeding services in villages - capturing data on activities such as identification of animals, AI, pregnancy diagnosis, calving, milk recording, typing, growth measurement of calves and thereafter providing analytical information to various stakeholders.

Ration balancing advisory services in villages - through the use of simple user-friendly computerized software by LRPs to formulate balanced and least-cost rations using locally available feed materials and offering advice on an appropriate ration at the farmers' doorstep.

Component B - Promoting and strengthening village based milk procurement systems

Investments would be made in village level infrastructure for milk collection and bulking such as milk cans, bulk milk coolers for a cluster of villages, associated weighing and testing equipment and related IT equipment. The main expected results from the interventions proposed under this initiative are an increase in the number of additional villages covered and more milk producers organised into Dairy Cooperative Societies and Milk Producer Institutions.

Component C - Project management and learning

EIAs will be funded to put in place computerised information systems for collection of data and dissemination of information related to breeding, nutrition and village based milk procurement systems.

Capacity building -NDP I recognizes that skilled/trained human resources will be essential and critical for the successful implementation of the project. Therefore, facilitate training and development of field personnel.