Praveenkumar Pol KMF project

Karnataka Milk Federation, Dharwad Executive Summary KARNATAKA COOPERATIVE MILK PRODUCERS' FEDERATION LIMITED (KMF) KMF is the Apex Body in Karnataka representing Dairy Farmers' Co-operatives. It is the third 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 ma marketing of Mi Milk an and Mil Milk Pr Products. The The Bra Brand ' ' is is th the hou househo ehold nam name fo for Pur Puree 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 organization 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.

Dharwad District Co-operative Milk Producers' Societies' Union Ltd Kousali Institute of Management Studies, Dharwad.

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Karnataka Milk Federation, Dharwad The Union was established in the year 1986 under the Operation Flood II & III. The Union also later took over in 1988 the Milk Products Factory with a drying capacity of 2.1 0 Lakh Liters per day, earlier established by the Karnataka Milk Products Limited (Government of Karnataka Undertaking). The Dharwad Milk Union is Co-operative society among the 13 establishment, under KMF. The Dharwad Milk Union (DMU) is one of the most modern plants in the country. It is located in the spacious 25 acres of land, located in Lakamanahalli Industrial Area, adjacent to the Nation Highway-4. It is patterned the AMUL Milk Dairy, Anand, Gujarat. The Union covers the districts of Dharwad, Karwar, Haveri & Gadag, and has Chilling Centres at Gadag,Haveri, Sirsi, Ron, Nargund, Hirekerur & Kumta with chilling capacity of 0.80 Lakh Liters Per Day. The Union procures and sells on an average 0.68 Lakh Kgs per Day and 0.59 Lakh Liters Per Day respectively. There are 7 Bulk Milk Coolers in the Union.

Project Details PROJECT TITLE:















Karnataka Milk Federation, Dharwad Consumers are attracted through competitively other milk brands. So main objective of the study is to know the consumer preference in choosing the milk and there product, and know the Nandini brand awareness about the Nandini Milk and other other various kind of Nandini Milk Milk Product in the consumer mind in the particular geographical area at Hubli-Dharwad cities. To analyze the consumer attitudes and perception towards price, quality, hygiene, long shelf life and Brand name.. To study what kind of family member group and income people are most interested to consume Nandini milk and their product. To find out what is the present p resent level of loyal consumer of Nandini milk. To know consumer preference about the Nandini. To find out the satisfaction level of Nandini product availability and pricing To find out whether advertisement help the consumer in buying decision.

I have carried out my studies by personally interviewing the customers from all the areas of Hubli and Dharwad. The sample size was 100. I had set the questionnaire based on the above said objectives very carefully.

FINDINGS IN THE ORGANIZATION: Nandini products have a good brand image in the Market.  Pricing strategy of Nandini is appreciated by its customers.  Nandini is started with customer contact programs in order to get first hand feedback from its customer and also to improve its products.















Karnataka Milk Federation, Dharwad  Lack

of consumer awareness about the wide range of products sold.  The dealers wants only more commission because they also suffer same problem with other brands also but they complains with us only. organization n is playing playing an important important role in developin developing g the economic economic viability viability of  The organizatio the villages.  The powder making plant has taken an vital role in Dharwad Milk Union.

SUGGESTIONS ➢ ➢ ➢ ➢ ➢

The retailers and dealers should be satisfied with commission and schemes so that they can improve the sales in the market. The company should come up with new products with different varieties and attributes to attract the customers. To advertise about all the products in the market. The organization can build good infrastructure better than these like maintaining good garden etc. If the company wants to restart the production of “Double Toned Milk”, firstly it has to prov provid idee suff suffic icie ient nt know knowle ledg dgee and and awar awaren enes esss abou aboutt the the attr attrib ibut utes es of products as compared to others.

Milk: India's Number One Farm Commodity Milk is India's number one farm commodity in terms of its contribution to the national economy. In 1994-95, the value of its output based on producer price was Rs. 500,051 millions, exceeding that from paddy (rice). Notwithstanding its top place and the many benefits it bestows on the lower rungs of the rural society, dairying has not received due attention from planners, economists, social scientists and others. For example, the investment in dairying made under the five-year plans is not commensurate with its output. Consequently, its potential has not been adequately tapped.

Milk contains many different nutrients Milk and milk products contain a good balance of protein, fat and carbohydrate and are a very important source of essential nutrients including: ➢

Calcium















Karnataka Milk Federation, Dharwad ➢

Pantothenic acid.

Milk products also contain ‘high quality proteins’ that are well suited to human needs. Milk proteins increase the value of poorer quality cereal and vegetable proteins in the diet by providing the amino acids these proteins lack. As a food, milk serves the following broad purposes: (a) growth, (b) reproduction, (c) supply supply of energy, (d) maintenance maintenance and repair repair and (e) appetite appetite satisfaction. satisfaction. The requirement requirementss of these categories vary with the individual, and in some instances not all the stated functions of the food need to be served, e.g. adults no longer require food for growth whereas infants do. The funct functio ions ns of a food food are are serv served ed speci specifi fical cally ly thro through ugh the the vari variou ouss nutr nutrit itio iona nall lly y impo import rtan antt components, comprising proteins, carbohydrates, lipids, minerals, vitamins and water. Fat content is closely followed by milk proteins at about 3.4%. Milk proteins in turn are subdivided into casein, comprising approximately 76–80% of the total milk proteins, and the whey proteins, comprising roughly 20–24%.

Modified milks explained: There are many types of milks on the market, including: •

Full cream – full cream milk contains around four per cent fat and is a source of vitamins A and D. For children up to the age of two years, full cream milk is recommended.

•

Reduced fat – expect around half as much fat in reduced fat milk as full cream. Children over the age of two years can drink reduced fat milk.

•

Skim milk – contains less than one per cent fat. Children older than five years can safely consume skim milk. Both reduced fat and skim milk have vitamin A and D added to replace the naturally occurring vitamins that are reduced when the fat is removed.

•

Calcium enriched – generally milks that are enriched with extra calcium are also fat reduced. A 250ml glass of milk contains 408–500mg of calcium.

•

Flavored – these milks can either be full cream or reduced fat. However, most varieties contain a lot of sugar.

•

UHT (ultra-high temperature-treated) milk – is treated with very high heat to allow milk to be stored for long periods.















Karnataka Milk Federation, Dharwad Pasteurization is a process in which the milk is heated till 75 degree Celsius and the milk is exposed to this temperature for about 16 seconds and then the milk is suddenly cooled to 4 degree Celsius. This process is carried carried out to destroy all all the pathogenic bacteria that are present present in raw milk. Pasteurization is a very costly process and it requires the installation of very costly machines.

Unpasteurized milk:

Most milk on the market is pasteurized (heat treated then cooled). Milk that hasn’t been through this process should be avoided. While pasteurization reduces the amount of some vitamins, such as vitamin C, it also kills bacteria. Unpasteurized milk is a health hazard because of the dangers of bacterial diseases.

NUTRITIVE VALUE OF MILK (Values are for 100g)

Buffalo

Cow

Moisture (g)

81.0

87.5

Protein (g)

4.3

3.2

Minerals (g)

0.8

0.8

Carbohydrates (g)

5.0

4.4

Energy (kilocalories)

117.0

67.0

Calcium (mg)

210.00

120.0

Phosphorous (mg)

130.0

90.0

0.2

0.2

Iron (mg) Carotene (ug)

160.0

174.0

















Karnataka Milk Federation, Dharwad

Niacin (mg)

Vitamin B12 (ug)

0.1

0.1

0.1

0.1

Total

3.3

5.6

Free

5.6

8.5

Vitamin C (mg)

1.0

2.0

Sodium (mg)

19.0

73.0

Potassium (mg)

90.0

140.0

Fat (g)

7.97

3.78

Total fatty acids (g)

7.18

3.57

Linoleic acid (g)

0.08

0.09

Linolenic acid (g)

0.09

0.06

Total phospholipids (g)

0.03

0.035

Cholesterol (g)

0.014

0.012

Folic acid (ug)

India: World's Largest Milk Producer

















Karnataka Milk Federation, Dharwad modernization is largely credited to the contribution of dairy cooperatives, under the Operation Flood (OF) Project, assisted by many multi-lateral agencies, including the European Union, the World Bank, FAO and WFP (World Food Program). In the Indian context of poverty and malnutrition, milk has a special role to play for its many nutritional advantages as well as providing supplementary income to some 70 million farmers in over 500,000 remote villages.

Table 1. World's Top Milk Producers. Countries India United States Russian Federation Pakistan Brazil Ukraine Poland New Zealand Australia EC World (includes others)

1998

1997

74 71 33 22 22 14 12

71 71 34 21 21 15 12

12 10 125 557

11 9 125 549

1996 68 70 36 20 19 16 11 10 9 125 542

The origin of Co-operative Milk Producers societies: The mighty Ganges at it's origin is but a tiny stream in the Gangotri ranges of the Himalayas. Similar is the story of Amul which inspired 'Operation Flood' Flood' and heralded the 'White Revolution' in India. It began with two village cooperatives and 250 liters of milk per day, nothing but a trickle compared to the flood flood it has become today. Today Amul collects collects processes

















Karnataka Milk Federation, Dharwad The revolution started as awareness among the farmers that grew and matured into a protest movement and the determination to liberate them. Over four decades ago, the life of a farmer in Kaira District was very much like that of his counterpart anywhere else in India. His income was derived almost entirely from seasonal crops. The income from milch buffaloes was undependable. The marketing and distribution system for the milk was controlled by private traders and middlemen. As milk is perishable, farmers were compelled to sell it for whatever they were offered. Often, they had to sell cream and ghee at throwaway prices. In this situation, the one who gained was the private trader. Gradually, the realization dawned on the farmers that the exploitation by the trader could be checked only if marketed their milk themselves. In order to do that they needed to form some sort of an organization. This realization is what led to the establishm establishment ent of the Kaira District District Cooperative Cooperative Milk Producers' Producers' Union Limited Limited (popularly (popularly known as Amul) which was formally registered on December 14, 1946.

NATIONAL DAIRY DEVELOPMENT BOARD: History: The NDDB NDDB was founded founded to replac replacee exploi exploitat tation ion with with empowe empowerme rment, nt, tradit tradition ion with with Modernity, Stagnation with growth, transforming dairy into and instrument for the development of Indian’s rural people. The The NDDB NDDB was was esta establ blis ishe hed d in 1965; 1965; the the boar board d is regi regist ster ered ed under under the the Soci Societ etie iess Registration Act and the public Trust Act, fulfilling the desire of the Prime Minister of India – the late Lal Bhahaddur Shastri to extend the success of the Kaira Co-operative Milk producers union (AMUL ) TO OTHER PARTS OF India. Dr Vergese Kurien was the founder chairman. The succes successs combin combined ed the wisdom wisdom & energy energy of farmer farmerss with with profes professio sional nal manage management ment to successful successful capture liquid milk and milk product markets markets while supporting supporting farmer’s farmer’s investment investment with inputs and services.

















Karnataka Milk Federation, Dharwad programmer by placing dairy development in the hands of milk producers and the professionals they employ to manage their co-operatives. In addition, NDDB also promotes other commodity based co-operative, allied industries and veterinary biologically on an intensive and nationwide basis.

Objectives of NDDB: ➢

➢ ➢

➢ ➢

To sponsor, promote, manage, acquire, acquire, construct construct or control control any plant or work, work, which which promot promotee projec projects ts of genera generall public public utilit utility y relati relation on to dairying. To make make info informa rmati tion on avai availa labl blee on requ reques estt to tech techni nica call serv servic ices es to increase production of Milk. To prepare initial feasibility studies of dairying and other dairy related projec projects ts and undert undertake ake subseq subsequen uentt design designing ing planni planning ng and start start up those projects. To unde undert rtak akee rese resear arch ch and and deve develo lopm pmen entt prog progra ramm mmed ed rela relate ted d to production and marketing of milk and milk products. pr oducts. To provide assistance for exchange of information to other international agencies.

Services rendered by NDDB: NDDB provide the following services. . Planning dairy and rural development projects.

















Karnataka Milk Federation, Dharwad Karnataka as per the rules and regulations themes and adopted this as the model and starts its operation on this and its very much success on this field. The first dairy in Karnataka was started in Kudige in Kodagu district in 1955, Further in June 1974; an integrated project was launched in Karnataka to restructure and reorganize the dairy industry on the co-operative principle and to lay foundation for a new direction in dairy development. In 1975, the World Bank aided dairy development was initiated. The present Karnataka Milk Federation Federation (KMF) came into existence existence in 1984-as a result result of merging of Karnataka Karnataka Dairy Development Co-operation, small co-operatives and Karnataka Milk Production Development and loose vendors. And in the year 1986 the Karnataka milk federation bifurcated to many parts to work many more towards customers and formers needs and wants and it is de-centralized and regional authority is be given to the managing directors and marketing managers and forms and cooperative societies union to give suggestions to this management. KMF is the Apex Body in Karnataka representing Dairy Farmers' Co-operatives. It is the third 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 ma marketing of Mi Milk an and Mil Milk Pr Products. The The Bra Brand ' ' is is th the hou househo ehold nam name fo for Pur Puree 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 Milk Federation, Dharwad both within and outside the State, all the Milk and Milk products are sold under a common brand name NANDINI. At the end of the March 1998, the network of 8023 Diary Co-operative Societies (DCS) have been established which are spread over 166 taluks of the total 175 taluks in all 27 districts of Karnataka. There are 13 Milk Unions and Dharwad Milk Union (DMU) is one among them. There are 35 Chilling centers, 3 Farm coolers, 15 Liquid milk plants and 2 Product dairies for chilling, processing, conservation and marketing of milk. To supply cattle feed there are 4 cattle feed plants. To impa impart rt trai traini ning ng,, inst instit itut utes es at Bang Bangal alor oree and and region regional al train training ing instit institute utess at Dharwa Dharwad d and Gulbar Gulbarga ga are functioning. Three nitrogen plants (2 plants of 25 CPM and 1 plant of 5 CPM) are been set-up to supply nitrogen, which is used for Refrigeration purpose. Three diagnostic centers have been set-up for monitoring diseases: three fodder farms at Rajk Rajkunt unte, e, Kutt Kuttan anah ahal alli li and and Koda Kodagu gu have have been been setset-up up to supply good quality of fodder and seed production farm at Shahpur has been set-up. The federation giving details of the latest technology in dairy industry etc is published




















THE MILK UNION: Milk union is a channel of District Co-Operative Societies in organized form for milk procurement. The procurement route is linked to chilling center or a dairy. Dharwad Milk Union is one of such Milk Unions. It is the middle tier of the complex co-operative organization network. Unions are formed by federating the societies in locating geographical area. The milk unions are organized to make them economically viable and the jurisdiction extends from one district to 3 Districts. There are 5 Milk Unions who’s Jurisdiction covers a single district, 4 Unions COVER 2 District, each 3 Unions cover 3 districts and one Union’s territory extends to 4 District. All Unions own their own Milk Processing Facilities.

UNITS OF KARNATAKA MILK FEDERATION: KMF has the following Units functioning directly under its control:



















Karnataka Milk Federation, Dharwad 9. Kola Kolarr Milk Milk Unio Union n 10.Mandya Milk Union 11.Mysore Milk Union 12.Shimoga Milk Union 13.Tumakur Milk Union

FUNCTIONS: These Unions help to organize new Primary Dairy Co-operative Societies. The Union also helps in managing these DCS by assisting in accounts, purchase, process and marketing liquid milk. The Union helps in providing all the input facilities to DCS and channelizes the dairy farmers through DCS. The Union provides the following facilities. ➢

➢ ➢ ➢ ➢

Co-ordination of activities between the unions. ➢ Providing Balanced Cattle Feed. Providing Animal Health Care. Developing the markets for the increasing in milk production. Providing Artificial Insemination facility for breed improvement. To make the brand “ ”as a house hold name.



















Karnataka Milk Federation, Dharwad MILK FEDERATION: The main objective of the federation is to help in formation of Milk Unions through the state and thus forming the state level apes organization. The Federation implements all the project activates. After the project activities are accomplished the federation aims at formulating Marketing strategies in marketing the Milk and Milk Product. The Karnataka Milk Federation which was setup in 1984 has the following functions: ➢

The foremost function of KMF was to co-ordinate the activities between the Union and also in making market available so that production increases ➢ The Federation also manages surpluses and deficiencies of liquid of milk among the milk union and help in disposing milk and milk product at reasonable price ➢ The Federation also manages to market the milk and milk products outside the state. ➢ Provi Provides des Balanc Balanced ed cattle cattle feed, feed, miner mineral al mixtur mixture, e, frozen frozen semen semen straws straws and liquid liquid nitrogen are produced and distributed to Unions Excellence in quality is maintained to lay a solid foundation for widespread acceptance of the milk and milk products. Training Training and developing developing senior managerial personnel, personnel, acquiring acquiring and applying applying all recent technologies, prescribing quality guidelines and norms.



















Karnataka Milk Federation, Dharwad ➢

Veterinary health cover to all animals – Regular and Emergency Services ➢ Artificial Insemination Insemination – Initiated Cluster AI facilities During 2005-06, no. of AI done 13.3 lakhs when compared to 11.4 lakhs AI done in 2003-04-Increase of 16.5% ➢ Embryo transfer technology to upgrade cattle wealth.

FEEDS AND FODDER: ➢

Fodder crop seeds supplied to farmers. ➢ Urea treatment of straws & Urea Molasses Blocks. ➢ Four cattle feed plants – all ISO certified and operating with more than 100% capacity utilization. ➢ The Federation has sold 1,54,249 MTs of cattle feed during 2004-05. CLEAN MILK PRODUCTION: ➢

Training producers on hygienic management, milking methods and handling of milk. ➢ Milk Producers provided with SS pails, Saff kit, etc. ➢ Electronic Weighing Machines, Automatic Milk Collection Units and Bulk Milk Coolers in DCS.






















MILK PROCUREMENT AND SALES:

*2010 is projected

THE PRODUCTS OF KMF: Milk

Toned Milk, Full Cream Milk, Good Life, Standardized





















Karnataka Milk Federation, Dharwad Turnover

Rs.Crores

3135.00

PERSPECTIVE PLAN 2010: The Operation Flood (OF) Programmed initiated by NDDB in 1970 was a planned attempt to revive India's Dairy Industry from a premature stagnation. The OF Programmed not only propelled the growth of dairy development in India, it also helped India become the world's largest milk producer. OF enhanced the incomes and quality of life for millions of India's dairy farmers, most of them poor and many of them women. It has become India's largest Dairy Development Programmed.





















Karnataka Milk Federation, Dharwad furthe furtherr streng strengthe thenin ning g the Dairy Dairy Develo Developme pment nt Activi Activitie tiess in Karnat Karnataka aka with with an outlay outlay of Rs.250 Rs.250 Crores. Consequen Consequentt to the announcemen announcementt of new lending lending terms and conditions by NDDB through an evolution of an action plan - Perspective 2010 to enable the dairy cooperatives to face the challenges of the increased demand for milk and milk products by focusing efforts in the four major thrust areas of Strengthening the Cooperatives. Enhancing Productivity, Productivity, Managing Quality Quality and building a National National Information Network, Network, plans are under implementation. The 4 Milk Milk Unions Unions viz., viz., Dharwa Dharwad, d, Tumku Tumkur, r, Bijapu Bijapurr and Gulbar Gulbarga ga that that were were having having accumu accumulat lated ed losses losses were were includ included ed for rehabi rehabili litat tation ion progra programme mmers rs under under the the Centrally Sponsored Scheme "Assistance to Cooperatives" which is also under implementation.





















Karnataka Milk Federation, Dharwad The Union was established in the year 1986 under the Operation Flood II & III. The Union also later took over in 1988 the Milk Products Factory with a drying capacity of 2.1 0 Lakh Liters per day, earlier established by the Karnataka Milk Products Limited (Government of Karnataka Undertaking). The Dharwad Milk Union is Co-operative society among the 13 establishment, under KMF. The Dharwad Milk Union (DMU) is one of the most modern plants in the country. It is located in the spacious 25 acres of land, located in Lakamanahalli Industrial Area, adjacent to the Nation Highway-4. It is patterned the AMUL Milk Dairy, Anand, Gujarat. The Union covers the districts of Dharwad, Karwar, Haveri & Gadag, and has Chilling Centres at Gadag,Haveri, Sirsi, Ron, Nargund, Hirekerur & Kumta with chilling capacity of 0.80 Lakh Liters Per Day.





















Karnataka Milk Federation, Dharwad DMU formed 551 milk producer’s co-operative societies in Dharwad, Gadag, Haveri and Uttar Kannada districts. The prediction capacity of DMU is 2 lack liters of milk per day and also has the capacity to produce 12 tons of milk powder, 10 tones of butter, 6 tones of ghee per day.DMU day.DMU is collectin collecting g 70thousand 70thousand liters of milk per day from its societies societies and sells sells 60 thousand liters of milk per day and the remaining milk is used for producing milk products.

FUNCTIONS OF DHARWAD MILK UNION:























Karnataka Milk Federation, Dharwad STATUS NATURE OF BUSINESS

A Co-operative society registered under the Co-operative Act 1959. Procuring & Marketing of Milk Production & Sale of Milk Products.
























The milk collected collected at DCS’s DCS’s ( District District Co-operative Co-operative Society Society ) is brought to the center thought carries trucks etc. the quality and quantity of milk bought is checked at the Reception center by a supervisor.























Karnataka Milk Federation, Dharwad PROCUCT PROFILE

KMF, Dharwad product the following milk and Milk Products.
























TYPE

Toned Milk

FAT 3 .1 %

SNF 8. 5 %























Karnataka Milk Federation, Dharwad the stock position by stores department and indent is sent by different department duly approved by the Managing Director. This department act to purchase materials. materials. It also maintains records of all the suppliers calls calls for Tenders, quotations etc. Quotations

































































































































































































































































































































































































Praveenkumar Pol KMF project

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