Karnataka Cooperative Milk Producers’ Federation Limited (KMF) is the Apex Body for the

dairy co-operative movement in Karnataka. 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 16 Milk Unions covering all the districts of 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.

Karnataka Dairy Development Cooperation(KDDC), the first ever World Bank/ International
Development Agency funded Dairy Development Program in the country started in
Karnataka on co-operative lines 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/IDA, Operation Flood II & III. The
Anand Pattern three tier organisation structure – Dairy Cooperative Societies at the village
level, District Milk Unions at the District level to take care of the procurement, processing
and marketing of milk and provide technical input services for enhancing milk production
at producers level and Federation at the state level to co-ordinate the growth of the sector
in the State, are resolutely and harmoniously working hand-in-hand in creating self-
sustaining rural economy based on cooperative dairying. KMF is one of the few federations
in the country, who have converted dairying from a subsidiary occupation into an industry.

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 Federation is striving to create a self-reliant and vibrant rural economy in Karnataka by
providing a supportive and conducive environment for the growth of Dairy Cooperatives as
autonomous economic and social institutions. The Federation is largely successful in
realizing the objectives of dairying during the last four decades of dairy development in
Karnataka State. It is by-and-large successful in providing a viable subsidiary occupation to
unemployed rural poor so as to raise their income earning capacities and to supply
adequate quantity of quality milk at reasonable prices to urban consumers.
The results of effective dairy development by KMF have made a far-reaching and extensive
impact on the rural landscape in Karnataka. The best remunerative milk purchase price to
farmers, efficient and timely input services, delivered at the door-steps to farmers, such as,
unfailing veterinary health services to any remote village, quality artificial insemination for
breed improvements, supply of balanced cattle feed at less than the market price, etc.,
have made the farmers to increasingly patronize their cooperative. The extent of
patronization by farmers is so complete, that the dominant share of marketable surplus
milk of farmers in Karnataka is procured by KMF dairies and hardly there is any organized
private dairy milk procurement, which is widely prevalent in other parts of the country.
The growth process

KEY ITEMS UNIT 1976-77 2018-19 2019-20 2020-21

2021-2022

2022-2023(FEB)

Dairy Co-operatives

Nos

416

16059

16071

16789
17014

17550

DCS Registered

DCS Functioning Nos 14512 14493 14864 15005

15453

Women DCS Registered Nos 4122 4239 4547 4703 4939

Women DCS Functioning Nos 3777 3868 4079 4143 4286

STEP Registered Nos 2374 2474 2585 2855 2855

STEP Functioning Nos 2199 2299 2375 2880 2880

Membership Nos 37000 24.74 Lakhs 24.75 Lakhs 25.71 Lakhs 25.90 Lakhs

26.44

Ann.Avg. Milk Procurement LKPD 0.50 74.80 75.61 78.73 81.66 81.05

Peak Procurement LKPD 84.44 (June’18) 84.44(June’18)

88.30(July’20) 90.62(June’21) 94.18(June’ 22)

Avg.Milk Sales LLPD 95050 35.47 35.57 35.59 37.17 42.83

Avg.Curd sales LKPD 6.28 6.18 5.14 5.92 7.59

Avg.Good life sales LLPD 5.28 6.01 6.80 6.61 6.49

Daily Payment to Farmers Rs.Crores 0.09 18.28 18.12 21.41 22.52 24.26
TotalTurnover(KMF & Unions) Rs.Crores 8.82 14522 16150

16656

19784

13298
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 ONGOING PROJECTS

Establishment of Mega Dairy Plant of capacity 10 – 15 LLPD with 60 MTPD capacity Milk
Powder plant for Hassan Milk Union at Hassan.

Auto storage system & retrieval system for 60 Lakh liters capacity new godown of storing
UHT & PET bottle milk at Hassan Milk Union, Hassan.
3

Setting up of 1 LLPD expandable to 1.5LLPD Dairy and UHT Milk Plant on Design, Build,
Finance, Operate and Transfer (DBFOT) Basis of PPP mode at Haveri chilling centre, Haveri,
Karnataka

Construction of Hostel at Belgaum dairy premises for Farmers children’s in association of

Belgaum Milk Union & KMF.

Construction of new Godown & expansion of Canteen building and other infrastructure
developmental works at Mother Dairy – Yelahanka, Bengaluru.

6 Establishment of different capacity Cattle Feed Plants under PPP mode at Sadali,
Kolar District & Dadesuguru, Raichur district

Setting up of Packaging materials manufacturing Plant on Design, Build, Finance, Operate

and Transfer (DBFOT) Basis of PPP mode at Challaghatta, Bengaluru.

Various Infrastructure developmental works for Kalburgi Milk Union at Karlburgi Dairy
Premises.

Construction of Canteen building, packing materials godown, expansion of Processing hall

, installation of Boiler and RO plant for Ice cream plant at Bellary.

10
Various Infrastructure developmental works under progress for Hassan & Tumkur Milk
Unions.

Sl.No FUTURE PROJECTS

Establishment of Mega Dairy Plant of capacity 10 LLPD for Tumkur Milk Union at Tumkur.

Construction of Raw material godown/ molasses storage tank of different capacities at

various KMF cattle feed Plants.

Hi-tech mega Nandini Dairy Food Park is proposed to be set up in North Karnataka.

KMF is intended to consolidate the overall electricity consumption of KMF units and District
Milk Unions under the Solar Group Captive Generation System as a centralized system for
all unions and KMF units.

5 KMF is intends to establish Mother Dairy Unit-2, which includes central milk
processing unit , milk products unit and other developmental activities at Bengaluru region.

Establishment of New Nandini Packaging Film Palnt.

7 It is proposed to build a Hostel in association with the unions at suitable places for
the children’s of the farmer as requested by the various unions.