India is the largest milk producer in the World with more than one lakh

Dairy Cooperative Societies (DCSs) operating under 170 milk unions

throughout the country, involving more than 12 million farmers. The
Karnataka Co-operative Milk Producers’ Federation Ltd. (KMF) operates
in 27 districts with 11,500 dairy co-operative societies covering 19,500
villages involving 1.5 million farmers.

The Indian Dairy Industry, world's largest producer/supplier of milk, has

revolutionized the milk production and supply. This Industry is now
supporting millions of farmers across rural India through a large number
of milk co-operatives. This movement has ensured a number of benefits
to the farmers. These benefits comprise of both financial and non-
financial. They include, among others, assured market, a reasonably
remunerative, fixed and assured price, relieving them fi*om the clutches
of middlemen, etc.

Karnataka Co-operative Milk Producers' Federation Limited (KMF) which

was established on May 1, 1984 has taken, on its part, tremendous strides
in its operations all over the state of Karnataka. The Federation has now
established 13 Milk Unions which cater to almost 35% of the population
of Karnataka through its Milk Unions dotted in major cities of Karnataka,
Over the last two decades, KMF has met with a good degree of success in
marketing its brand of milk and milk products all over the state, A few
important aspects presented in the following table substantiate the
continuous expansion in, and growth of, activities of KMF

The major activities of KMF are

1. Procurement,

2. Processing and

3. Marketing of milk and milk products.

 Flow chart of milk movement

Weigh Bridge

Reception Dock Quality testing

Uploading through chiller

Raw Milk silo

Pasteurization & Standardization

Processed Milk Silo’s Quality Testing

Issues

Pre-pack Skimmed ICP cream Bulk milk Flavored

dispatch
milk milk

Cold
Butter
Powder
section
plant
Market

Bulk

packing
 Workflow model of production system

Production OUTPUT
INPUT
Process

 Operation or
 Raw materials
processes

 Men
 Inspection

 Machine Products
 Storage

 Power Energy
 Production
] planning &

DATA COLLECTION: -

The data collection is one of the important aspects in the research design
purely because, it is the way that how we can get answer to the research
question.

SOURCES OF DATA COLLECTION: -

All the details are collected from secondary sources only. Secondary data
includes, the annual reports, financial reports of the company etc.,
discussion with the concerned officials has also helped to verify and
evaluate the variations and results either to confirm it.
The data is collected in two ways:

Primary Data

Secondary Data

Primary Data: - The primary data collection is one of the key tools used by
the researcher for data collection. It is the first hand information collected
by the researcher from the respondents directly. Primary data is collected
through observation and communication

Secondary Data: -The secondary data is another form of data collection,

where the data is collected from the existing records, company manual
and form previously carried out research work and also through internet.

Primary as well as secondary data was collected and analysed for

evaluating the objectives of the study.
INTEGRATED BUSINESS PLAN:-

Preparation of Integrated Business Plan in consultation with the Division

Heads. Integrated Business Plan is prepared after taking into
consideration the various experience, growth demand and supply, export
or import policy of the Government, Government legislations on various
issues, statutory levies, geographical conditions – particularly because we
deal with agro based perishable commodity. Since the market is volatile
and also market conditions. Hence, preparation of Integrated Business
Plan meticulously is a very important task for the Federation.

Source of income :-

The main source of income for the Federation is as under:-

Direct income on account of sale of milk and milk products at Mother

Dairy - one of the units of the Federation

Conversion income at Mother Dairy i.e., if the surplus milk received at

Mother Dairy is being converted into Skim Milk powder, for which
specified amount is charged and hence the conversion amount.

A certain amount of profit on sale of cattle feed by the Federation earns

4% as service charges.

Costing:- The Federation does not have a pre-determined costing system

because most of the time the fixation of selling price of milk depends on
various factors like competitor’s entry in to the market, their pricing of
the products, and interference from the Government etc. Because of
these, costing does not play a role in decision making; that is the reason
the member milk unions and Federation sometimes lose heavily on crude
method only to assist the Management in certain decision making.

Computerization- The Federation has computerized all its financial

activities right from generation of receipts, vouchers, invoicing,
generation and submission of information to the Management. The
Federation has also succeeded in networking of the finance sections so
that the information flows easily and speedily.