For the first time since its inception, the KMF will be selling its sachet milk (toned milk) in the neighbouring Andhra Pradesh starting next month. The Federation is likely to charge Rs 24 per litre of milk in AP – which is Rs 8 more than its Karnataka price. In AP, a litre of toned milk costs Rs 24. But the KMF’s milk in AP will have 3.5 per of fat content — which is 0.05 per cent more than milk being sold in Karnataka.
KMF Managing Director I R Ramalinge Gowda said with 0.05 per cent of extra fat, the KMF milk in AP will be of higher quality. This will give KMF a competitive edge over others.
“To begin with, the KMF milk will be sold in some select places along the boundary areas in Andhra Pradesh. The quantity will be scaled up gradually depending on the market feedback. The aim is to achieve around 40,000 litre of sale per day by the end of this year,” he stated.
Average procurement
KMF is selling only Ultra Heat Treated (UHT) milk outside the State. Presently, KMF is procuring an average of 36 lakh litre of milk per day.
Of this, around 28 lakh litre is required for domestic consumption (within Karnataka), including for the production of various milk products. The remaining eight lakh litre of surplus milk is being sold to co-operative milk dairies of other states in bulk. The plan is to reduce bulk sale of milk to other state dairies and, instead, start direct sale of milk to consumers there. “KMF can reap good profit by directly selling milk to consumers in other states. And we are exploring all possibilities,” Gowda said. The direct sale of milk in other states will help expansion of the KMF within the State.
“Once the market is available for surplus production, the KMF can go ahead with expansion of its base (co-operatives),” official sources explained.
