Karnataka Milk Federation which is most popular as KMF, evolved itself as a premier and most profitable dairy farmers' organization in the State of Karnataka.

As an agency in 1975 to implement the World Bank Aided Dairy Development Projects,Karnataka Dairy Development Corporation (KDDC) was formed, the company grew itself fast and as it spreads the wings of new found rural economic activity - Dairying all over the State, the genesis of apex cooperative body took the shape of KMF in 1984 encompassing entire State with 13 District Co-operative Milk Unions executing the various parameters of Dairy activity - organization of Dairy Co-operatives, Milk Routes, Veterinary Services, Procurement of milk in two shifts of the day, Chilling, Processing of milk, distribution of milk and also establishment of Cattle Feed Plants, Nandini Sperm Station, Liquid Nitrogen Supply, Training Centres - as its main stay.

The entire system was reconstructed on the model of now well known `ANAND' pattern dairy cooperative societies. Eight southern districts of Karnataka was considered initially with a target of organizing 1800 Dairy Co-operative Societies, four Milk Unions and processing facilities were set up to the tune of 6.5 lakhs per day by 1984.

Under Operation Flood - II &III, project which started in 1984 & 1987 covered the remaining parts of Karnataka. Thirteen milk unions were organized in 175 talukas of all 20 districts then and the field work was extended by organizing more dairy cooperative societies. The processing facilities i.e. chilling centers, milk dairies and powder plants were transferred in phases to the administrative control of respective cooperative milk unions and the activities continued to be implemented by these District Organisations. Additional processing facilities were created & existing facilities augmented every decade with the help of Govt. / Zilla Panchayat and NDDB (Under Perspective Plan) to handle ever increasing milk procurement without declaring milk holidays. The processing facility as exists at 57.40 lakh liters/day is further strengthened.