The Karnataka Milk Federation (KMF) is planning to boost its milk processing capacity by setting up a mega dairy in Bangalore, according to Mr G. Somashekhara Reddy, Chairman, KMF.

In an informal chat with presspersons on the sidelines of the silver jubilee celebrations of the Dakshina Kannada Cooperative Milk Producers Union Ltd here on Sunday, he said the proposed dairy in Bangalore will have a processing capacity of 10 lakh litres a day, and the project cost is estimated at Rs 75-80 crore.

To a query on the proposed date of commencement of the work on the project, he said KMF would soon submit the proposal to the Government in this regard . After getting the approval from the Government, it may take a year for the commissioning of the project, he said.

Mr Reddy said KMF has submitted a proposal to the New Zealand-based Fonterra Cooperative Group Ltd for the establishment of a cheese manufacturing unit in Bangalore on a partnership basis. The board of Fonterra Group will discuss the matter and revert back to the KMF, he said. If Fonterra agrees to the proposal, the joint venture of KMF and Fonterra will have a cheese manufacturing capacity of 50 tonnes a year, he said.

CHOCOLATE

Mr Reddy said KMF has entered into an agreement with Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) Ltd for the manufacture of chocolates under KMF's brand name, Nandini. Within a few months of launching the product, KMF has been able to sell around 15 tonnes of chocolate under its ‘Nandini' brand name in the market, he said.

He said KMF's e-marketing initiative, where customers can place their orders through the internet, will be extended to Mangalore soon. As of now, it is available only in Bangalore. Apart from milk, all other products of the KMF are available through this e-marketing drive of the federation, he said.

To a query on long-shelf life milk products, Mr Reddy said KMF is planning to increase the production capacity of its ‘Good Life' brand of milk, which has a shelf-life of three months, from the existing three lakh litres to five lakh litres during this year.

Target

He said each milk producers' cooperative union in the State has been given a procurement target for the current financial year. This year, KMF wants to procure around 50 lakh litres of milk a day. The total turnover of the federation stood at Rs 5,080 crore for 2010-11. “We want to reach the Rs 8000-crore mark in the next two years,” he added.

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