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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 14 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. Chamarajanagar Milk Union has started functioning as 14th Milk Union on KMF wef.01.04.2015 after bifurcation from Mysore-Chamarajanagar Milk Union.

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


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.


Sl.No                                   FUTURE PROJECTS


Establishment of a new Milk Powder Plant with an approximate outlay of Rs. 300 crores in Ramanagara District is envisaged, to meet surplus milk conversion requirement of southern part of Karnataka


Establishment of Milk Powder Plant of 30 metric tonnes capacity at Channarayapatna by KMF through NDDB at a cost of Rs. 104 crores


Planning to establish UHT Flavoured Milk in Pet Bottles, Milk Shakes and Paneer Plant in proposed new Product Block in Mother Dairy


It is envisaged to establish a Corrugated Box Manufacturing Unit at Challaghatta at an approximate cost of Rs. 15 crores


It is planned to undertake erection of silos, construction of housing complex and other essential works at Shikaripura Cattle Feed Plant at a cost of Rs. 15 crores with grants from the Government


It is planned to expand the Nandini Packaging Film Plant at Munnekolala at an approximate cost of Rs. 32 crores


Various development works, Fodder production and bull mother farm development are in progress at Nandini Sperm Station, Hessaraghatta, at a cost of Rs. 4 crores, with grants under National Dairy Plan/GOK will be established


Construction work of Bengaluru Sales Depot will be undertaken at a cost of Rs.1.75 Crores


Construction of a godown at a cost of Rs. 5 crores and conversion of Cap Storage into a godown at a cost of Rs. 1.37 crores at Rajankunte Cattle Feed Plant, are planned


New Cattle Feed Plant of 500 MTD capacity 


Ice Cream Plant at Hassan of 10 TLPD capacity at an estimated cost of Rs. 20 Crores 


Flexi Pack Plant of 80 TLPD capacity at Belgaum Dairy at an estimated cost of Rs. 20 Crores


1.5 LLPD Curd Manufacturing Unit to Bangalore Dairy from Bangalore Union at an estimated cost of Rs. 25 Crores


Mega Dairy at Mandya with capacity of 8 to 12 LLPD at an estimated cost of Rs. 195 Crores


1.5 LLPD capacity UHT Brick Format Plant is under progress at Mother Dairy at an estimated cost of Rs. 30 Crores


3 LLPD to 5 LLPD capacity Mega Dairy at Chikkaballapur under Kolar - Chikkaballapur Union at an estimated cost of Rs.100 Crores

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 in 64000 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.    


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. 5216.25 lakhs has been released by GOK, 37385 milch cows have been purchased and expenditure of Rs. 4509.04 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.677.50 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.2365.53 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.1751.09 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.525.52 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.2322.27 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



National Outlay (Rs. Crores)

Component A

Breed Improvement


Animal Nutrition


Component B

Village based Milk Procurement Systems


Component C

Project Management & Learning




End Implementing Agency (EIA) Contribution


NDDB's Contribution


Grand Total


*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.

KMF Progeny Testing Project under National Dairy Plan (NDP-1)

A  Progeny  Testing  Project  for Production  of  High Genetic  Merit  (HGM) Holstein  Friesian  Bulls under NDP-1 was  launched  in June 2012  with  Karnataka  Milk Federation  as  the  End Implementing  agency (EIA). The total  financial  outlay  for  this Project  over  a period  of  6 years  is Rs  2055 lakhs.                                                                                                                                                                   The  main objectives  of  this  Project: To  produce  genetically   superior quality HF bulls through implementing  a progeny  testing  project in the field

A achieve a steady genetic progress in the cattle population for milk, fat and protein yield and type characters in villages where progeny testing project is being implemented.

The progeny testing project is being implemented in Bangalore and Kolar milk unions covering 5 districts (Bangalore Rural, Bangalore Urban, Ramnagaram , Kolar and Chikkabalapur) in 12 talukas (Bangalore North, Devanahalli, Doddabalapur, Hoskote, Ramnagaram, Chennapatna, Anekal, Siddalagatta, Chintamani, Chikkabalapur , Kolar and Gauribidanur). The Progeny testing activities are carried out in about 650 villages where pure breed HF animals are available.

The Key performance indicators for this project are as under











Minimum no of bulls to be put under test









Test doses to be distributed per bull









Doses  to  be distributed  per  bull









Avg No of daughters registered  per  bull









Avg No of daughters recorded per bull









Number of bull calves available for distribution to semen stations








 Progress  KMF PTP under NDP-1

Bulls have completed Test mating                        50

Presently  bulls are under test                               30

Test inseminations have been carried out          108931

Daughters have been registered                           9922

Daughters are under milk recording                     961

HF Bulls have been distributed                             20


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