Performance of KCMMF

Financial year 2008- 2009

 

Milestones of the Year 2008-09

• Federation and all the three Regional Milk Unions joined hands with NDDB to be a part of the national stream to promote co-operative brand. In the wake of competition from private sector , KCMMF and the Regional Milk Unions readily accepted the well planned Marketing Strategy of NDDB and the mnemonic symbol of NDDB was introduced in the milk pouches in the State. Kerala is the first federation to adopt the mnemonic symbol throughout the State.
• The global economy is today in the midst of an unprecedented financial crisis. India, however, is fortunate in that it is fairing better than most countries in the world. The global market downturn cum recession should be utilized as an opportunity. The dairy industry should, therefore, gear up to face the challenges. As Dr. Amrita Patel, Chairman, NDDB suggested in the IDA conference. “ We must continue to keep milk producers and their interest central to our concern as the interest of the nation and dairy industry depend on the well being of millions of our landless, small and marginal farmers for whom milk is such a crucial source of livelihood.”
• Problem of milk availability is one of the key issues we in Kerala face.The livestock sub sector of Kerala shown a reversing trend in respect of livestock population and livestock products during the last few years. Estimate of milk production and number of livestock also shown a declining trend and now we are witnessing an improvement. After a year of heavy crisis, our Regional Milk Unions could slowly recover on the procurement front. However the improvements shown are unbalanced, when the procurement in Malabar area is improving, the same is not the situation in other two Unions. Similarly the demand for milk is increasing day-by-day and so the gap is widening.Our dependency on other States isincreased and it is to be noted that on an average we brought more than 2.50 lakh litres of milk per day from outside the State in the last financial year to meet the internal demand.Unless drastic intervention is not made our dependency on external milk is expected to grow in the coming years, as the demand will shoot up.
• One area for improvement is the livestock productivity. Though we could achieve major strides in converting the indigenous breed to cross breed animals, the productivity of the animals is to be further improved. Increase in net income through better animal’s product- ivity and reduced cost of milk production is possible by providing effective breeding, nutrition and health care services. We hope that the renewed breeding policy of the State would help us to achieve this purpose. The other factors as management of dairy enterprise and feeding practices, availability of quality feed and fodder and lack of quality animals for farmers etc also needs attention. At the processing level, quality certification efforts taken by us will help to enhance consumer confidence. Similarly the Clean Milk Project (CMP) and Integrated Dairy Development Project (IDDP) programmes implemented with the financial support of Government of India, would address the issue of quality and we hope to improve further through training and education as clean milk practices, including the use of bulk coolers.
• In our effort to serve better our farmer members the infrastructure development activity is continuously taken up and the same is at various stages of implementation. A new dairy plant with 50000 LPD capacity was inaugurated at Kalpetta in Wayanad District which is a milestone.

Highlights of the Year 2008-09

• Cattle feed being the key input for milk production, we are giving utmost priority in its production and distribution. However the environmental factors such as availability and price of raw material often deter us from providing the best service to our farmer members. Cattle Feed raw material supply is highly erratic, especially the State like Kerala which depends on other States for 100 % of its requirement is more vulnerable to the market forces. We are always striving to keep price stability for the Cattle Feed sold by us. However it often goes beyond our control and we are forced to pass on part of this burden to the farmers. The Federation will continue to take all efforts to ensure that adequate quantity of good quality feed is made available to our members at reasonable prices.
• Being milk deficit State, our dependency on other States in the year 2008-09 have increased. With the active co-ordination and involvement of our Regional Milk Unions we could get through the problems faced by our organization in this front and we could meet the demand for milk from our esteemed consumers. The sales turnover of Milma family including the Regional Unions reached a highest of Rs.1000 crores this year.
• Milma being the forerunner in the dairy development sphere in the state could prove that the co-operative dairying is the best model to ensure stable price and assured market to our farmer members for their produce, so that they can be rest assured of the income from their occupation. The farmer gets 75% of the consumer price back in his hands, unlike vegetables and fruits for which the farmer gets only 15% of the value paid by the consumer. The ensuring of remunerative prices to milk producers and the organization of an efficient supply chain management system has impacted positively on the milk production of the State.
• Highest ever turnover achieved
It is our proud to and glory that Milma was adjudged No:1 brand in the State in the year 2008 for the 3rd consecutive year in the survey conducted by Dhanam Magazine which shows the popularity and consumer belongingness of this household brand. The cost of operation of our dairies is also increasing day by day with the increase in the fuel and electricity prices. The cost of labour also would increase in tune with the increase in the wage cost in our state. Efforts are made by us to reduce the overheads of the organization whereever possible and it is showing results. The margins available to the dairies may take care of the increased burden. However, more efficiency with regard to energy usages, labour utilization, process losses, etc. needs to be achieved.

 

Our aims for the year to come

• The dairy industry in the country is exposed to various challenges.The management of lean-flush periods has always been a matter of major concern to Milma and it still continues to be a key problem to be addressed on top priority.We have to re-dedicate ourselves to uphold our oft-repeated sogan "Farmers' Prosperity through Consumer Satisfaction". To keep farmer and consumer contended and happy in chorus is a difficult task.We have to formulate strategies and plans to accomplish the aforesaid task.Though a quarter century has elapsed since the drawn of Operation Flood programme we are yet to achieve self-sufficiency in milk production. At the same time we can be proud of our achievements in the area of infrastructure development, milk consumption enhancement and economic and social development of rural dairy farmers.A joint concerted effort of Milma and other Government agencies in Dairy Development and Animal Husbandry will go a long way in fulfilling our dreams. We have to strive to wipe off the accumulated losses and to improve the performance both on the physical and financial fronts. Your trust,your confidence and your encouragement will further energize and motivate us in this pursuit.
• Food crisis is a major threat now faced by the world and being the 2nd largest populated country we are forced to bear the brunt more than others. Our Government is giving priority to ensure food security to the citizens.To ensure food security we have to enhance domestic production of agricultural commodities including dairy products. 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 ensure the prosperity of our nation

How we fared?

The Federation achieved a turnover of Rs. 161.86 crores in the year 2008-09 as against Rs.141.28 crores during previous year is a definite improvment as past several years. The year 2008-09 posted a net profit of Rs 1.15 crores despite various unfavorable factors

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

YEAR	Cattle Feed Plant Pattanakkadu	Cattle Feed Plant Malampuzha		Central Products Dairy, Alapuzha	TOTAL
1996-97	2226.91	1212.65		1333.63	4773.19
1997-98	2069.16	1220.71		1463.66	4753.53
1998-99	3041.71	1903.05		1704.95	6649.71
1999-2000	4419.66	3667.48		2307.53	10394.67
2000-2001	4284.89	3798.49		2778.82	10862.20
2001-2002	4580.42	2922.4		3053.23	10556.05
2002-2003	4691.39	2691.13		2901.08	10283.60
2003-2004	4968.62	3124.79		3020.13	11113.54
2004-2005	4325.24	3885.46		3629.94	11840.64
2005-2006	5135.58	3602.57		4000.85	12739.00
2006-2007	5082.00	3954.00		4244.00	13280.00
2007-2008	4933.08	4738.22		4456.55	14128.00
2008-2009	5644.05	5074.30		5507.38	16186.62

 Ten lakhs = 1 million

Turnover & Profits of milma family (2008-09)

It is a matter of great satisfaction that milma family has achieved a turnover of Rs. 1018.52 crores.

 

	TRCMPU	ERCMPU	MRCMPU	KCMMF	TOTAL
Turnover / Rs crores	333.43	214.50	308.82	161.87	1018.52
Net profit/Loss	17.65	24.57	29.62	14.57	21.96

 Ten lakhs = 1 million

Milk Procurement and Sales(Ltrs in Lakhs)

Year	Procurement	Sales
2000	2249.33	2308.69
2001	2487.11	2412.83
2002	2418.25	2558.59
2003	2179.73	2698.80
2004	2319.70	2841.21
2005	2630.14	3069.51
2006	2921.14	3340.05
2007	2722.90	3497.43
2008	2693.57	3475.22
2009	2776.92	3875.65

Ten lakhs = 1 million           

 

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