Who are we?

Kerala Co-operative Milk Marketing Federation (KCMMF), popularly called milma was established in April, 1980 with its Head Office at Thiruvananthapuram for the successful implementation of the Operation Flood ( a dairy programme launched in 1970 under the aegis of National Dairy Development Board(NDDB). The name milma represents:y y y y y y y y y y 2678 Primary milk co-operative societies now functioning as on 31.03.2010 8.31 lakhs farmer members Three Regional Co-operative Milk Producers' Union Thirteen Dairies capable of handling 12lakhs litres of milk per day Ten Milk Chilling Centres Two Cattle Feed Plants with cumulative capacity of 600MT per day One Milk Powder Plant of 10MT per day capacity A well established Training Centre 5,200 retail outlets Over 32,000 people working either directly or indirectly for the functioning of milma

Apart from these we serve millions of consumers day-in and day-out. The name MILMA has been derived from the cumbersome predecessor, Kerala Livestock Development Board and Milk Marketing Board (KLD&MMB). KLD&MMB existed from 1976 to 1981. The name MILMA was coined at the official level by Mr. S. Nagarajan IAS. A 1961 batch Indian Administrative Service (IAS) officer, he took over KLD&MMB as its first chairman. Milk distribution in Kerala was available at only a few locations in Kerala. The distribution and sale was handled by the employees of the Board. The consumers had to purchase coupon booklets in advance and exchange the coupons in exchange for milk. No mechanism existed to tally the sale of milk and the coupons received. Mr. Nagarajan bought about a change in this system by making the consumer pay for milk at the time of purchase instead of the coupon booklet system. Moreover at that time milk was being sold in bottles and for the first time in India he introduced milk in liter sachets. He had a prototype machine for packaging milk in sachets installed in Thiruvananthapuram. From the public sector he moved the sale of milk to the private sector. Milk booths permits were issued to private entities for the sale of milk from MILMA. From 1981 onwards under the advice of Dr. V. Kurien, by forming cooperative societies Prayar Gopalakrishnan and others were able to introduce MILMA to the whole of Kerala.[

Our mission

Milma - The Farmer's Organisation

milma is an Organisation of the farmers. They are the producers of the raw material-milk, the shareholders in the organisation and the Chairman and Board of Directors are elected from among them. The Farmers are members of the A P C O S (Anand Pattern C-opertaive Societies). The Presidents of the APCOS form the General Body of the Regional Milk Unions, which Federate to form the KCMMF. milma provides the members of APCOS with various services at nominal / concessional prices.
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Procurement of Milk: First and foremost, milma provides assured milk market and procures milk from even the remotest societies. Twice a day our milk collection trucks go to the societies and collect milk. In areas which are not accessible by road, other means of collections are employed. Veterinary Service: Our veterinary services are the most popular component of our input activities. The veterinary wing operates two types of veterinary routes, regular and emergency. Cattle feed Plants: Balanced cattle feed is the major centralised input provided to the dairy farmers of the State from the Federation. There is a high level of acceptability for this product in the market. Training Centre: In keeping with the ideology of placing the instruments of progress in the hands of the farmers themselves. An orientation programme is offered to the farmers to equip them with the basic and the fundamentals of co-operatives, accounting, testing, laws etc. A full-fledged training Centre is functioning at Trichur. Co-operative Development Activities: The inherent togetherness brought about by being a part of a Society was seen as a potential platform for disemination of related information and discussion of various issues that crop up in the normal village life style. Thus was born the idea of a Co-operative Development Wing which held activities that saw the village as a whole and the Society a nodal point, ie these activities went one step ahead by seeing the milk suppliers not merely as a farmer member but went on to see them as a part of the farbric of the village. The issues dealt with human health aspects, nutrution aspect, scientific managment techniques of dairying and such varied topic with the help of leading experts in the concerned where desciminated. This is more of a socially motivating exercise than an image building venture. Embryo Transfer: In an effort to bring the results of research into the field conditions, Embryo Transfer Technology has been introduced to upgrade cattle wealth. ET was started in 1990 and so far, had a commendable 48% success rate which is compara

The Objectives
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To channelise marketable surplus milk from the rural areas to urban deficit areas to maximize the returns to the producer and provide quality milk and milk products to the consumers . To carryout activities for promoting Production, Procurement, Processing and Marketing of milk and milk products for economic development of the farming community. To build up a viable dairy industry in the State. To provide constant market and stable price to the dairy farmers for their produce.

Our Network
The Motto of Co-operation of "of the people, by the people and for the people" is the foundation of the "three tier system" followed by the organisation. At the village level we have the Village Milk Co-operative Societies which have the local milk producers as its members. These Village Co-operatives unite at the Regional level and form Regional Co-operative Milk Producers' Unions. These Unions are federated at the State level to form State Federation namely Kerala Co-operative Milk Marketing Federation( KCMMF). Our

Commercial Units:-

Central Products Dairy

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Alappuzha Dairy is directly managed by the Kerala Cooperative Milk Marketing Federation. An Asceptic Packing Station (Tetrapack unit) and Milk Powder Factory are also established in the dairy compound, which are only one of its kind in Kerala. Central Products Dairy (CPD) was commissioned on 23rd December 1987 with a capacity of 60000 LPD. E-mail: cpdmilma@dataone.in

y Milk Powder Factory Capacity - 10 MT per day Facilities are available to produce normal and instant varieties of Skim Milk Powder, whole milk powder, baby foods, 4.5 MT ghee per day production facility is also provided. Looking forward to have tie-ups with reputed firms for spray drying operations to utilise spare capacity

Cattle Feed Plants

Milma has two cattle feed plants, one each at Pattanacad in Alappuzha District and Malampuzha in Palakkadu District. The plant at Pattanakad was established in 1985 with an investment of 142 lakhs and the installed capacity of the plant was 100 MT per day. Later during 1993 this plant was expanded to 300 MT per day capacity at an investment of 307.5 lakhs. This plant can also produce pellet form of cattle feed. The plant at Malampuzha was set up by Animal Husbandry Department, Government of Kerala in 1972 with an installed capacity of 100 MT per day and later during April 1983 it was handed over to KCMMF as part of the agreement between Government of Kerala and NDDB for implementation of Operation Flood II programme in Kerala. This plant was modernised with computerised batching operation with an investment of Rs.56 lakhs during 1989 and subsequently expanded to 200 MT per day capacity during 1995 with an investment of 214 lakhs. These plants were set up to supply good quality balanced compounded Cattle Feed at reasonable rates to member farmers of APCOS. The capacity augmemtation from 200MT to 300 MT with introduction of Pelletization facility was completed . The total production capacity of the plants is 600 MT per day, ie, 300 MT per day capacity plant at Pattanakkad and 300 MT per day capacity plant at Malampuzha. E-mail:Pattanacad Plant milmafp@dataone.in E-mail:Malampuzha Plant milmafm@sancharnet.in Adjudged Top Feed Manufacturer of India for manufacture of Aflotoxin-free best quality cattle feed by Indian Association of Veterinary Pathologists during 1998.

Training Centre
In keeping with the ideology of placing the instruments of progress in the hands of the farmers themselves, an orientation programme was started way back in 1984 and the training needs were met from a rented building at Edappally in Ernakulam District. During the initial period NDDB came forward to help us in providing financial assistance as grant for meeting the training center expenses. Under North Kerala Dairy Project - Phase I, Swiss Development Co-operation provided Rs. 29 lakhs as grant for establishment of a full-fledged training center with hostel facility in the land adjacent to Trichur Dairy. Accordingly the training center was established and started functioning from the new premises from 2.1.1992 onwards and it provides training courses for Presidents, Secretaries, Milk Testers, Milk Collectors of Anand Patern Co-operative Societies, Milma agents and Milma staffs.

Our Associates
Milma is in constant touch with other Organisations in this sector. It is only through this active exchange that milma grew from a small dairy co-operative to the position it holds in Kerala today.

Our cheif associates are:y

National Dairy Development Board NDDB, under Dr. V Kurien's guidance set up KCMMF in 1980. Ever since then, there has been a very close co-operation between NDDB and the Federation. NDDB are the originators of the Operation Flood Programme and have been our funding agent for the Operation Flood Projects in Kerala. Amul The Dairy Co-operatives of Gujarat have been the inspiration for the development of such a vast network of dairy co-operatives in Kerala. Among the co-operatives in Gujarat, the Kaira District Co-operative Milk Producers' Unions (Amul) is the the first in this sector. Our Co-operatives are called "Anand Pattern Co-operative Societies" following the illustrious lineage of "Amul". Government of Kerala The Phenomenal success of the Dairy Co-operatives in Kerala could not have been achieved, without the foundation of animal husbandry activities, led by the Animal Husbandry Department, Dairy Development Department and Kerala Livestock Development Board, of the Government of Kerala.

Performance of KCMMF
Annual Report2011

Financial year 2009- 2010

Milestones of the Year 2009-10 INPUT SERVICES AND WELFARE MEASURES

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Our Regional Milk Unions are carrying out various input activities in their milk sheds and a gist of the activities is carried out by the Regional Unions in the financial year 2009-10 is given below:

TRCMPU
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TRCMPU is carrying out various input activities in its milk shed and a details of the activities carried out by the Regional Union in the financial year 2009-10 are given below: Union has distributed Rs. 4.00 crores as price incentive to the societies and Rs. 3.5 crores as summer incentive to the farmers.

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In the financial year total no. of 465 first aid centres are functioning in four districts and 29336 no. of cases were attended. Total no. of De-centralised veterinary units are 30 and 29681cases had been attended. Total no. of Production enhancement camp (Gosamvardhini) conducted is 244 and total no. of cases attended is 12013. 50 % subsidy on Cattle insurance premium. Total A.I centres functioning under union is 26 and the total no. of A.I performed is 9211. Under IDDP Scheme, 65 hectors of land was cultivated under fodder development programme in, Pathanamthitta District. Under IDDP-CMP Program, various projects are implemented with the financial assistance to the tune of Rs. 10.06 crores from the Govt. of India. 52 bulk coolers were installed with a total capacity of 1.96,000 litres. Schemes for Milk Production Enhancement

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Rs. 137.68 lakhs was spent for Calf adoption scheme Insurance subsidy for new Mini Dairy units was given for a amount of Rs. 3.15 Lakhs Cattle feed subsidy for new Mini Dairy Units was given for Rs. 37.39 lakh. Rs. 3.22 Lakhs was spent for Fodder cultivation schemes. Rs. 22.57 Lakhs was spent for Deworming. Under Benevolent fund scheme financial assistance to depend of deceased farmers and scholarship for higher education are given Rs.25.64 Lakhs spent during 2009-10. De-centralized veterinary Units for providing veterinary service at doorstep of farmers and free medicine Rs. 51.14 Lakh during 2009-10.

ERCMPU
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The Union distributed summer incentive of Rs.194.82 lakhs in the financial year to the farmers. Three defunct societies were revived in the current year. Animal health programmes were continued during the year. Total 9179 emergency cases were treated through emergency veterinary routes and 1823 cases through veterinary camps Artificial insemination service was extended through 118AI centers(75 single AI centers and 43 cluster centers) located at societies and 86170 ai were done through 247 societies attached to these centers. Union has started giving interest subsidy for the loans taken for cattle purchased during the year. Under this scheme a farmer is eligible to get interest subsidy for the first year of the loan at the rate of RS. 1200/- per animal for 4 animals. Union has distributed Rs.402703/- as interest subsidy during the year. Cattle insurance at reduced premium rate (2.325%) was continued through United India Assurance Company. Union has given premium subsidy of Rs.100/- per animal and this benefit was given for 2449 animals during the year. Building grant was given to 10 societies at the rate of Rs.20000/-. The group gratuity insurance scheme for APCOS employees implemented through LIC of India is continuing and RS. 5,34,984 was distributed as benefits during the year

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Subsidy@ Rs.1000/- each was extended to 282 farmers for purchase of milking machines. Rs.121.21 lakhs was contributed to the Dairy farmers Welfare Fund. Union has contributed 50% of the training cost for the training programmes of the Presidents,Committee members and staff of societies at the training centre of KCMMF. Union has remitted Rs.34.14 lakhs towards Cattle feed Intervention fund to KCMMF. Union has taken part in the preventive measures with necessary medicines at the FMD affected areas within the area of operation.

MRCMPU
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Paid Rs. 17.19 crores as incentive milk price to farmers in addition to the basic milk price approved by the Government. Provided Rs. 3.55 Crore as subsidy to farmers for cattle feed purchase. Conducted Co-operative Development training programme for farmers. Developed a fodder farm in 25 acres near Vadakkanchery of Palakkad District, in collaboration with a Fodder entrepreneurand purchased fodder from him at Rs. 1.50 per kg as per buy- back arrangement and supplied 90 MT green fodder to farmers through a fodder route. Supplied 298 MT baled straw through 87 milk societies during summer months. Supplied 144 MT wheat straw pellet to farmers, purchased from Khanna, Punjab. Provided Rs. 3.5 lakhs to 36 new/converted milk societies. Established 36 AMCUs in societies and provided Rs. 1.25 lakh grant, each. Supplied 1492 Milk Cans to societies with a subsidy of Rs.24 lakhs. Established 27 fodder plots Provided Rs. 24 lakhs to farmers as Cattle Shed construction Subsidy. Arranged training programmes for farmers, Management Committee Members and staff of societies. Provided Rs.18.46 lakh as building construction grant to societies. Covered 60,831 farmers under accident coverage insurance with a subsidy of Rs. 21.41 lakhs from the Union. Provided Rs. 36 lakhs as claim benefit. Covered 15,481 farmers under social security insurance of LIC. Premium fully paid by Union (Rs. 3.93 lakhs) Covered 21,044 farmers under the Janasree Bima Yojana of LIC with Rs. 10.25 lakhs as premium subsidy from the Union. Paid Rs. 23.5 lakhs as claim benefit.In addition, provided Rs. 24.70 lakh as scholarships to 3066 students of insured families. 18,958 farmer families were covered under the Medi claim insurance with a subsidy component of Rs. 15.87 lakhs towards premium from the Union (out of total premium of Rs. 43.24 lakhs).Rs.50lakhs distributed as claim benefit. Rs. 2.16 lakhs paid from the charity fund of the Union for treatment of fatal diseases of farmers. Provided awards and reward for best performing farmers and societies. 5,514 cows covered under the Cattle Insurance Programme with a subsidy of Rs. 1.7 lakhs towards premium. Rs.22.24 lakhs paid towards claim settlements. Paid Rs.6.69 lakhs as subsidy for farm mechanization ( Milk Machine, Rubber mats, fodder, Bio gas and Chaff Cutters).

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Covered 1500 heifers under the heifer development programme and provided cattle feed at 50% cost, free insurance, de-wormers, mineral mixture, fish oil and AI. Paid Rs. 156.96 lakhs as contribution to farmer pension scheme.

Highlights of the Year 2009-10

Report on Federation Units
CATTLE FEED PLANTS

KCMMF has two Cattle Feed Plants, one at Pattanakkad and the other at Malampuzha with a combined capacity of 600 MT per day. The feed is distributed through primary cooperative societies, dealer networks and Government Departments engaged in Animal Husbandry activities. Milma cattle feed has wide acceptance among the farmers. The Price of feed supplied to APCOS is kept lower than the open market price APCOS are also provided with sales discount as well s incentive. Supplying good quality cattle feed by Milma at reasonable price acts as a control mechanism in the market for the competitors to maintain the quality and price of their feed which ultimately benefits the dairy farmers. Mineral Mixture is also produced at our Cattle Feed Plant Malampuzha

Shri. K.C.Joseph (Hon.Minister for Rural development,Planning and Economic Affairs,Dairy Development, Milk Co-operatives, Culture,Registration,Information and Public Relations) Shri. P.T Gopalakurup (Chairman KCMMF) Shri.P.K Pathak IFS (Managing Director, KCMMF) Shri.Subrata Biswas.IAS (Principal Secretary to Government) Smt.K.T.Sarojini (Director(i/c) of Dairy Development

Purchase Department -KCMMF

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A purchase committee comprising the Managing Director of Federation and three Regional Milk Unions, Senior Manager (Finance), Senior Manager (Projects) and the Manager (Purchase) of Federation finalize the purchase of Dairy Consumables. Tenders are invited for Dairy consumables and the suppliers are selected on the basis of quality

and competitive price. Various packing materials are also sourced in the same manner. Procurement of raw materials of Cattle Feed is a periodic activity. The daily purchases are carried out by a purchase committee comprising of Managing Director of the Federation, Senior Manager (Finance), Manager (P&I&QC) and Manager (Purchase) of the Federation. The committee takes the advice from the Senior Managers of both the Cattle Feed Plants before finalizing the purchases of raw materials. It is an open market operation through brokers/ suppliers/manufacturers. The procurement system takes advantages of fluctuations in price of the commodities and evens out the peak price by bulk purchase on decline of price. The vendor base has expanded over the years ensuring regular supply of raw materials and packing materials of good quality at competitive price. This has helped us in maintaining the quality of our products. Over the years we have developed a loyal vendor base. This has ensured regular supply of quality materials at competitive price.

Our aims for the year to come

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Lean Flush Management: The Federation is actively involved in the lean-flush management to balance the deficit /surplus of milk due to seasonal variations. During the year 2009-10 there was furtherdrop in milk procurement compared to previous year in Trivandrum and Ernakulam Milk Unions and we could successfully meet the demand for milk by import of large quantity of milk from other Federations and by purchase of Skimmed Milk Powder. Similarly the Milk Powder prices were also reasonable compared to last year and so the overall lean management was viable for our Unions. The unprecedented rise in the raw material cost of cattle feed resulted in the financial viability of the cattle feed plants. The loss incurred by KCMMF was mainly due to provisioning of depreciation and there was cash surplus in KCMMF in the year 2009-10. Our endeavor is to improve the living condition of our farmers. This can only be achieved through ensuring remunerative prices to their produce and encouraging them to produce more milk and other agriculture products. We have to strengthen the hands of our farmers by enhancing their capability to produce more and thereby ensuring the prosperity of our nation.

How we fared?
The Federation achieved a turnover of Rs.193.64 crores in the year 2009-10 as against Rs.161.87 crores .

Turnover of KCMMF (Units wise - Rs.in Lakhs*)

Cattle Feed Plant Pattanakkadu Central Products Dairy, Alapuzha

YEAR

Cattle Feed Plant Malampuzha

TOTAL

1996-97 1997-98 1998-99 19992000 20002001 20012002 20022003 20032004 20042005 20052006 20062007 20072008 20082009 20092010

2226.91 2069.16 3041.71 4419.66 4284.89 4580.42 4691.39 4968.62 4325.24 5135.58 5082.00 4933.08 5644.05 6465.80

1212.65 1220.71 1903.05 3667.48 3798.49 2922.4 2691.13 3124.79 3885.46 3602.57 3954.00 4738.22 5074.30 6747.92

1333.63 1463.66 1704.95 2307.53 2778.82 3053.23 2901.08 3020.13 3629.94 4000.85 4244.00 4456.55 5507.38 6150.56

4773.19 4753.53 6649.71 10394.67 10862.20 10556.05 10283.60 11113.54 11840.64 12739.00 13280.00 14128.00 16186.62 19364.28

Ten lakhs = 1 million

Turnover & Profits of milma family (2009-10)

It is a matter of great satisfaction that milma family has achieved a turnover of Rs. 1144.78 crores. TRCMPU ERCMPU MRCMPU KCMMF TOTAL Turnover / Rs crores Net profit/Loss 362.62 0.18 231.07 2.78 357.45 1.21 193.64 1144.78 (-)0.75 3.42

Ten lakhs = 1 million

Milk Procurement and Sales(Ltrs in Lakhs)

Year Procurement Sales 2000 2249.33 2001 2487.11 2002 2418.25 2003 2179.73 2004 2319.70 2005 2630.14 2006 2921.14 2007 2722.90 2008 2693.57 2009 276.45 2010 2729.00
Ten lakhs = 1 million

2308.69 2412.83 2558.59 2698.80 2841.21 3069.51 3340.05 3497.43 3475.22 3575.91 3911.96