Thursday, January 06, 2011

KARNATAKA DAIRY INDUSTRY: Surge in production

IIPM BBA MBA Institute: Student Notice Board

KMF exports milk to Singapore and other Indian states

The dairy industry in Karnataka is booming. The Karnataka Milk Federation (KMF), the second largest government-run cooperative milk federation in the country after Gujarat Cooperative Milk Marketing Federation, is spearheading the campaign by procuring lakhs of litres milk from in and around Karnataka on daily basis.

The boom has taken place after the price of milk was increased by Rs 3 a litre in the state. Of late KMF has witnessed growth in its production. After it increased procurement price (varies from Rs. 2.50 to 3.50 per litre in different areas) the production is upbeat. Thousands of farmers from across the state flock to pour more milk to the federation.

Last March, KMF witnessed all time low production: 31 lakh litres milk production per day. But just after three months KMF regained its momentum by producing 41,80,000 litres milk per day. According to industry experts, this is all time record compared to the last highest milk production of 40.41 lakh litres per day in June 2009. The federation has more than 22 lakh farmer members attached to 10,600 milk cooperative societies across Karnataka. Besides, it has 13 Milk Unions throughout the state that procure milk from Primary Dairy Cooperative Societies (DCS) and distribute milk to the consumers in various urban and rural markets in Karnataka.

Almost every district in Karnataka has milk producing co-operatives. The milk is collected from farmers, processed and sold in the market by the brand of Nandini. Even milk giant Amul purchases some 50,000 litres per day from KMF. The federation was able to achieve the historic target because of price rise and government support. KMF managing director A.S. Premanath said: 'We are exporting milk not only to the neighbouring states but even to Singapore.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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