KLE DR. M.S.

SHESHGIRI

COLLEGE OF ENGINEERING & TECHNOLOGY

Udyambag, Belagavi – 590008

DEPARTMENT OF MBA

A Project Report on

“KMF (Karnataka Milk Federation) - Belagavi”

KARNATAKA CO-OPERATIVE MILK

PRODUCER’S FEDERATION LTD
(K.M.F)

By
RAKSHIT R RAIKAR 02FM23MBA004
GANESH SHANBHAG 02FM23MBA009

Under the Guidance of:

Prof. Keerthi Kulkarni
DEPARTMENT OF MBA
"KMF (Karnataka Milk Federation) -
Belagavi"

Fig 1. KMF Belgaum

Fig 2. Milk distribution and logistics

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 INTRODUCTION

The Karnataka Milk Federation (KMF) Belagavi unit is a crucial part of the cooperative
dairy ecosystem, serving as a backbone for milk procurement, processing, and distribution in
the northern region of Karnataka. As part of the larger Belagavi Milk Union (BEMUL), this
unit works across 14 talukas, involving over 600 dairy cooperative societies. With a daily
procurement capacity of around 1 lakh liters of milk, the unit plays a pivotal role in
supporting local dairy farmers, enhancing rural livelihoods, and contributing to the overall
dairy sector's growth.

Fig 3. KMF Belgaum milk truck loading and chilling sections

KMF Belagavi follows a robust and efficient process of milk procurement, storage, and
treatment. From chilling centers to advanced processing techniques like pasteurization and
homogenization, the unit ensures that the milk produced adheres to high safety and quality
standards. The unit's state-of-the-art technology and adherence to strict milk testing protocols
help deliver superior products to consumers under the popular "Nandini" brand.

Additionally, KMF's Belagavi unit contributes significantly to the regional economy by

offering a diverse product range, including toned milk, ghee, butter, paneer, sweets, and other
dairy products. It also undertakes innovative initiatives like fodder densification and mineral
mixture production to support sustainable dairy farming. Through these efforts, the KMF
Belagavi unit not only empowers local dairy farmers but also strengthens the cooperative
dairy movement in the state

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 Milk Collection and Payment System:
In the southern regions, particularly in Belgaum, buffalo populations are limited. As a result,
buffalo and cow milk are collected separately. Farmers pour their milk at Milk Producers’
Cooperative Societies (MPCs), where payments are made based on the fat content and Solids-
Not-Fat (SNF) percentage in the milk. SNF refers to the non-fat solids, including proteins,
minerals, and lactose. On average, cow milk contains 4.5% fat and 8.5% SNF, whereas
buffalo milk typically has 6% fat and 9% SNF.

To differentiate between milk types, buffalo milk cans are marked in red, while cow milk
cans are marked in blue or green. This system ensures that the two types of milk do not mix.

Payments are calculated based on the milk's volume, fat content, and SNF. Some farmers
may attempt to increase volume by adding water, but this dilutes both fat and SNF, reducing
the payment. Others may adulterate the milk with urea or sugar to artificially boost SNF,
leading to adulteration.

 Adulteration Checks:

At MPCs, adulteration is monitored using adulteration detection strips, while at the main
dairy, machines are used to detect adulterants with high precision, down to 0.002%. This
ensures the integrity and quality of the milk throughout the process.

 Milk Chilling and Preservation:

After collection at the MPCs, milk is transferred to Bulk Milk Coolers (BMCs). The initial
temperature of milk, when drawn from cows or buffaloes, is typically between 30-37°C. If
left at room temperature (27-28°C), the milk’s shelf life is only four hours. To extend its shelf
life, the milk is chilled to below 4°C at BMCs, which halts the growth of spoilage organisms
and pathogens, particularly mesophilic and thermoduric bacteria. This immediate cooling
process preserves milk quality before it is transported to the main dairy.

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 Testing and Pasteurization:

Upon arrival at the dairy, milk is sampled and tested for adulteration, acidity, antibiotics,
aflatoxins, fat, and SNF content. After testing, the milk undergoes pasteurization, a process
that involves heating milk to 72°C for 15 seconds, followed by rapid cooling to below 5°C.
This process kills harmful organisms like Coxiella burnetii and deactivates alkaline
phosphatase, an enzyme that indicates whether milk has been properly pasteurized.

Pasteurization increases the shelf life of milk from just four hours to two days, allowing for
safe delivery to consumers.

 Milk Variants:

The dairy offers five main milk variants, categorized based on their fat and SNF content:
1. Homogenized Cow Milk (HCM) (Green): 3.5% fat, 8.5% SNF.
2. Shubham (Orange): 4.5% fat, 8.5% SNF.
3. Full Cream Milk (FCM) (Chocolate Brown): 6% fat, 9% SNF.
4. Buffalo Milk (Purple): 6% fat, 9% SNF (pure buffalo milk).
5. Premium HCM: 6.5% fat, 9% SNF.

These variants cater to different nutritional preferences, with higher fat options for those
seeking richer nutrition.

 UHT Treatment and Packaging:

The dairy also produces long-life milk products like Good Life, which undergo Ultra-High
Temperature (UHT) treatment. In UHT, milk is heated to 135°C, a process that kills even
spores, extending the shelf life to 180 days. Packaging plays a crucial role in preserving
UHT-treated milk. For example, Good Life milk is packed in Tetra Pak containers made from
multiple layers of polyethylene, paper, and aluminium, which act as barriers against oxygen,
moisture, and sunlight, further enhancing product longevity.

 Yogurt Production:

For yogurt production, Direct Vat Set (DVS) starter cultures, such as Lactobacillus and
Streptococcus thermophilus, are used. The milk is heated to 90°C and then cooled to 40°C,

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the optimal temperature for bacterial growth. During fermentation, lactose is converted into
lactic acid within 4-6 hours, after which the yogurt is cooled to 4°C to halt bacterial activity.

 Other Dairy Products and Farmer Incentives:

In addition to milk, the dairy produces a range of other products, including ghee, paneer,
sweets, and Mysore Pak. Farmers who supply high-quality milk (with at least 4% fat and
8.5% SNF) receive an incentive of ₹5 per Liter from the government.

 Procurement and Distribution:

The dairy procures approximately 200,000 liters of milk daily—160,000 liters of cow milk
and 40,000 liters of buffalo milk. The milk is distributed to markets in Goa and Pune, with
excess milk sent to other unions under the Karnataka Milk Federation (KMF). If necessary,
surplus milk is processed into powder at designated facilities like the Dharwad union.

 Challenges and Market Competition:

Although Belgaum has 14 talukas and a significant farmer population, milk procurement
remains below the target of 500,000 liters per day due to competition from private dairies
offering higher prices. These private dairies are able to pay more to farmers and offer higher
margins to distributors. However, as a government-regulated entity, the Belgaum Milk Union
must balance both farmer and consumer interests, with milk prices fixed by the government.

 Support for Farmers and Quality Assurance:

The Karnataka Milk Federation (KMF) supports farmers by providing veterinary services,
milking machines, and other equipment at subsidized rates. The milk quality is directly
influenced by the nutrition provided to cows, with better nutrition leading to higher fat and
SNF content in the milk.

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 STORAGE

In the Karnataka Milk Federation (KMF) Belagavi unit, milk storage is critical to maintaining
quality throughout the supply chain. Milk is collected from dairy cooperative societies and
quickly transferred to chilling centers. These centers use large bulk milk coolers to rapidly
cool the milk to around 4°C, preventing bacterial growth and ensuring the freshness of the
product.

After chilling, the milk is stored in insulated, stainless steel tanks before being transported to
processing plants. At the processing units, further storage tanks hold the milk during
pasteurization and other treatments. These storage facilities are designed to maintain a
controlled temperature, ensuring that the milk stays fresh and safe for consumption.

Additionally, KMF emphasizes the need for large capacity in storage. For instance, some of
the storage godowns at Belagavi can hold up to 5000 metric tons of raw materials like cattle
feed, which supports milk production. This robust infrastructure ensures that milk is
processed efficiently and distributed while retaining high quality

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 MILK TESTING PROTOCOLS

KMF's Belagavi unit follows rigorous milk testing protocols to ensure quality and safety. The
testing process is carried out at multiple stages, from collection at dairy cooperative societies
to processing in the plant. Here are the key protocols:

1. Initial Quality Checks at Collection:

 SNF (Solid-Not-Fat) and Fat Content Testing: At the milk collection centers, basic
tests for fat and SNF levels are conducted to determine the milk’s quantity and categorize
it for different uses.
 Lactometer Test: This test checks the milk’s density, helping detect any adulteration
with water.

2. Chilling Center Tests:

 Organoleptic Tests: A sensory check (taste, smell, and appearance) is conducted to
ensure milk is fresh.
 Clot-On-Boiling (COB) Test: This quick test detects the presence of heat-resistant
bacteria by checking if the milk curdles upon boiling.
 Alcohol Test: This test detects acidity in milk, which could indicate bacterial
contamination or spoilage.

3. Advanced Laboratory Testing at Processing Units (Chemical Lab):

 Microbial Testing: The milk is tested for bacterial count, including harmful pathogens
like E. coli, Salmonella, and Listeria. This ensures that the pasteurization process will
effectively remove harmful organisms.
 Antibiotic Residue Testing: Milk is checked for traces of antibiotics, as milk from
treated cows should not enter the supply chain until a withdrawal period has passed.
 Adulteration Testing: Comprehensive tests are conducted to detect adulterants like
detergent, urea, starch, and other foreign substances.
 Freezing Point Test: This checks if any water has been added to the milk by measuring
deviations from milk’s natural freezing point.

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4. Post-Pasteurization Quality Checks:
 Phosphatase Test: After pasteurization, this test ensures the enzyme phosphatase is
inactive, confirming that the milk has been adequately pasteurized.
 Somatic Cell Count (SCC): This test assesses the number of somatic cells in milk, an
indicator of the cow's health and milk hygiene.

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PASTEURIZATION AND OTHER TREATMENTS

The milk pasteurization and treatment process at KMF's Belagavi unit involves several
critical steps to ensure that the milk is safe for consumption and retains its nutritional value.
Here's a breakdown of the key stages:

1. Pasteurization: After milk is collected and stored at the chilling centers, it is

transported to processing units where it undergoes pasteurization. This involves heating the
milk to around 72°C for 15-20 seconds and then quickly cooling it using Plate Heat
Exchangers using liquid ammonia. Pasteurization kills harmful bacteria like E. coli and
Salmonella without affecting the milk's nutritional components, such as proteins and
vitamins.

Fig 4. Pasteurization Unit Fig 5. Homogenizer

2. Homogenization: After pasteurization, the milk often undergoes homogenization. This

mechanical process breaks down fat molecules in the milk from 5-20 micron to <2 micron,
preventing cream from separating and ensuring a uniform texture and taste. It is carried out in
a Homogenizer. Homogenization makes milk smoother and more palatable for consumers.

3. Separation and Standardization: In some cases, the milk is separated into cream
and skimmed milk to create products with varying fat content. The cream can be further
processed into products like butter or ghee. Standardization ensures that milk meets the

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required fat and solid non-fat (SNF) levels for specific products like toned milk or full-cream
milk.

4. Fortification: The milk may also be fortified with vitamins like A and D, which are
essential for health. This step ensures that consumers receive added nutritional benefits from
the milk.

5. Quality Control: Throughout the treatment process, quality checks are conducted to
ensure that the milk is free from contaminants, maintains the correct composition, and meets
national safety standards.

PRODUCT RANGE

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The product range of the Karnataka Milk Federation (KMF) under the "Nandini" brand is
extensive, catering to various consumer needs. KMF offers the following key product
categories:

1. Milk Varieties:
 Nandini Samrudhi Pasteurized Full Cream Milk
Pure pasteurized full cream milk with 6.0% fat and 9.0% SNF. Rich creamier and tastier
milk. Ideal for preparing homemade sweets. Available in 500ml and 1 litre pouches.

 Nandini Special Toned Milk

Nutritious Homogenized milk with 4% Fat and 9% SNF (as against 3% Fat and 8.5% SNF
Toned Milk) with added solids. Much thicker and tastier. Good for preparing thick curds.

 Nandini Shubham Gold Milk

Pure pasteurized milk having 5% Fat and 9% SNF. Processed with all the goodness of
healthy milk for healthy growth in children.

 Nandini Double Toned Milk

Pasteurized Double toned milk. Homogenized milk with Min. 1.5% Fat and Min. 9.0 % SNF.
Ideal for Health-conscious people and senior citizens.

 Nandini Pasteurized Toned Milk

Karnataka’s highest selling and most preferred milk. Pasteurized Toned milk with Min. 3.0%
fat and Min.8.5 % SNF content make this milk the best choice for all purposes and all
generation

 Nandini Homogenized Cow's Pure Milk

Nutrient rich homogenized milk with Min.3.5% fat and Min. 8.5 % SNF. Enjoy the thickness
and extra creamy feel till the last drop, thus preparing more cups of tea/coffee out of every
pack.

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 Nandini Good Life
Goodlife Cow milk is UHT processed milk with Min.3.0% fat and Min. 8.5% SNF. Suitable
for all generation.

 Good Life Smart

Goodlife Smart Homogenized Double Toned Milk UHT processed milk with Min 1.5% fat
and Min 9.0% SNF fortified with vitamins A and D. Suitable for preparing tea/coffee, milk
shakes and milk delights for people leading a fitness conscious lifestyle.

 Good Life Slim

Goodlife Slim Skimmed Milk is UHT processed milk with Max. 0.5% fat and Min. 9.0%
SNF It is prefect for a healthy lifestyle among fitness conscious people and senior citizen.

 Good Life Plus

Goodlife Cow milk is UHT processed milk with Min 3.5% fat and Min 8.5% SNF. Suitable
for all generation.

2. Curd and Buttermilk:

Nandini Curd: Popular for its thick and creamy texture, available in various pack sizes.
Spiced Buttermilk: Light and flavored, a refreshing drink.

3. Paneer: Fresh, soft Indian cheese used in a variety of dishes, available in vacuum-sealed
packs for freshness. Cow and Buffalo milk is added 50% each then coagulated and put into
molds of 2kg/cm2 and cut.

4. Ghee: Clarified butter made from cow’s milk, available in tin and pouch packaging. This
is one of KMF's flagship products. 2-ton capacity/batch of butter at 114 °C followed by
granulation at 20-27 °C by adding stearic acid is carried out.

5. Butter: Sold as salted and unsalted butter, widely used for baking and cooking.

6. Flavored Milk: Available in several flavors, including chocolate, badam (almond), and
strawberry, this product is popular with children and for on-the-go consumption.

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7. Sweets and Desserts:
Nandini Mysore Pak: A famous traditional Indian sweet.
Pedha: Another popular sweet, made from condensed milk, sugar and cardamom powder.
Milk Peda and other sweets like Khova and Rasgulla are also available.

8. Ice Creams: A variety of flavors and forms, including cups, cones, and family packs.

9. Dairy Whitener: Used for tea, coffee, or desserts as a milk substitute.

Social Responsibilities
Fig 6. KMF Product Range

Nandini Hostels

1. Inauguration: The hostel was inaugurated on 20th September 2007 in Boopasandra,

Bangalore, by the Nandini Dairy Farmers Welfare Trust.

2. Eligibility: It provides accommodation for girl students from families of Nandini Dairy
Farmers pursuing undergraduate, postgraduate, or professional courses.

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3. Capacity and Charges: The hostel can accommodate 290 students, with a monthly charge
of ₹3000 for lodging and food.

4. Admission Process: Students must be approved by their respective Milk Dairy Society and
verified by the district Milk Unions, with final approval from the Trust's Secretary.

5. Facilities: Includes lodging, nutritious meals, a library, biometric security, weekly health
check-ups, CC cameras, female security, and warden.

6. Recreational Activities: The hostel offers indoor and outdoor sports, celebrates religious
and cultural events, and fosters a homely atmosphere.

7. Management: Regular committee meetings are held for effective management of the
hostel.

KSHEERADHARE
An ambitious scheme of Karnataka State Government,the “Ksheerdhare”scheme has been
implemented for the following objectives

Objectives of the Milk Producer Incentive Scheme:

 To make dairy farming profitable at village level to promote and expand dairy farming.
 To motivate youth / unemployed people to take up dairy farming at village level.
 For economic and social security of milk producers engaged in dairy farming.
 For increase in milk production for food security

Scheme implementation details

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 The scheme was implemented on 08.09.2008.
 Incentive came into effect on 09.09.2008 (Rs.2/- per litre)
 Incentive per litre increased from Rs.2/- to Rs.4/- for milk on 14.05.2013.
 Incentive per litre increased from Rs.4/- to Rs.5/- per litre of milk and continued from
19.11.2016.

KSHEERA BHAGYA:

The Ksheera Bhagya Scheme was launched on 1st Aug 2013 by GOK in co-ordination with
KMF to provide nutritious food with protein and fat which is essential for healthy growth and
all-round development of School Children as well as Anganwadi in the State.

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Ksheera Bhagya Scheme was an innovative project conceived by KMF based on the
suggestion of honorable CM of Karnataka to help the poor children of the State and also the
Milk producers to dispose their surplus milk.
Coverage of Ksheera Bhagya Scheme:
# GIST Schools Anganwadi

SCHOOLS / ANGANWADI
1 55683 nos 64000 nos
COVERED

NO. OF SCHOOL /
2 64 lakhs 40 lakhs
ANGANWADI CHILDREN

1st to 10th standard in

government and government
3 BENEFICIARIES Children from 6 months to 6 years
aided schools in all over
Karnataka

WMP required per child is

WMP required per child is 15gms ie.
18gms ie. equivalent to serving
4 MILK POWDER REQUIRED equivalent to serving 150ml of Milk.
150ml of Milk. (given five times
(given five times a week)
a week)

5 MILK REQUIRED PER DAY 5 LLPD 3 LLPD

6 COST/CHILD/ONE SERVE Rs.5.67 Approx. Rs.4.73 Approx.

Animal Health

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Disease Control Program:
1. Foot and Mouth Disease (FMD):
- Vaccination is conducted every 6 months in collaboration with the Department of Animal
Husbandry.
- Aims to cover 11.45 million livestock under the program.

2. Brucellosis:
- Annual vaccination for female calves aged 5-8 months, administered once in their
lifetime.
- Disease screening is conducted for veterinary doctors and technicians.

3. Lumpy Skin Disease (LSD):

- Vaccination is carried out with vaccines supplied by the Department of AHVS.

4. Theileriosis:
- Vaccination is administered every 3 years, with 200,000 doses given annually to cattle of
KMF-registered farmers.

5. Mastitis Control:
- Quarterly screenings using the California Mastitis Test (CMT) for early detection and
treatment of mastitis in milk samples.
- KMF helps 15 milk unions by providing subsidies to prevent antibiotic residues in milk
using Tri-sodium Citrate, a non-antibiotic agent.

Mobile Veterinary Services

Veterinary Health service to sick animals of milk producers, is being provided at Dairy Co-
operative Society(DCS) level. Each DCS will be covered once in a week or fortnight. Service
will be given at subsidized rate and it includes treatment of sick cows/buffaloes, treatment for
infertility cases, Pregnancy diagnosis, etc.,
Weekly health care services are being provided to all the registered member of MPCS at
rs.5/- per animal

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 Emergency Veterinary Services
24*7 Door Step Veterinary emergency health care services are being provided to the
registered members of MPCS

Cattle Insurance
All animals under milk production and pregnant cattle are usually covered under this scheme.
Usually, the insurance period ranges from 1 to 2 years. Milk unions and member producers
will be sharing the premium amount at 50% cost.
So far, 948482 Animals covered under group insurance

Health Camps:

1. General Health Camps:

- Conducted monthly at the MPCS (Milk Producers' Cooperative Societies) level for
general animal health check-ups.

2. Infertility Camps:
- Focused on treating infertile and repeat breeding animals, including those with uterus and
ovary complications.
- Treatment is provided at a subsidized rate.

3. Deworming Camps:
- Conducted twice a year, with a focus on young calves and adult animals using broad-
spectrum anthelmintics.
- Mass deworming is typically done before the Foot and Mouth Disease (FMD) vaccination
program.

Vaccination Programme:

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Vaccination against Foot And Mouth Disease (FMD) will be carried out once in every 6
months in collaboration with the Department of Animal Husbandry and Veterinary Services.
Vaccination against Theileriasis will be taken up every year. Animals under this programme
will be covered once in every 3 years.

Vaccination against Brucellosis will be taken up every year. Female calves in the age group
between 5-8 months will be covered once in life time.

Conclusion
In summary, the Belgaum Milk Union operates with a focus on quality, sustainability, and
farmer support, while also navigating market competition and consumer demand. Through a
robust system of milk collection, testing, pasteurization, and product diversification, the
union ensures that high-quality dairy products reach consumers while supporting local
farmers with fair payments and incentives.

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