Milma Profile

Malabar Regional Co-operative Milk Producers' Union Ltd. (MRCMPU Ltd.)

Malabar Regional Co-operative Milk Producers' Union (MRCMPU) Limited with registration No. D89[D] is a union of more than 1100 village level Anand pattern dairy co-operative societies located in the six northern districts of Kerala State in South India and it is owned by more than one lakh dairy farmers who are members of each affiliated society and who live in the area of operation of these societies. The societies function on the pattern of the societies affiliated to the world-famous Anand Milk Union Ltd. (AMUL) at Anand (Gujarat), India and hence are also known as Anand Pattern Co-op Societies or "APCOS". The area of operation of MRCMPU Ltd. comprises of the six revenue districts of North Kerala, viz Kasaragod, Kannur, Wayanad, Kozhikode, Malappuram and Palakkad and also having dairy plants at Kasaragod, Kannur, Wayanad, Kozhikode, Malappuram, Palakkad, Sreekandapuram and Central Products Dairy Naduvattom, Kozhikode District. The Union is affiliated to the state level apex body-Kerala Co-operative Milk Marketing Federation Ltd. (Operating under the trade name MILMA) along with its sister Unions at Ernakulam and Thiruvananthapuram, ERCMPU Ltd. & TRCMPU Ltd. The Head office of the Union is located at Peringolam under Kunnamangalam Post Office near Kozhikode.

Salient Features


The farmer members of the Board are elected for a five-year term from among the Presidents of the affiliated village level Anand Pattern Co-operative societies. The very fact that a majority of the Board members are elected farmers ensures that the business policies of the Union are always governed with the interests of dairy farmers foremost in mind. In addition, the fact that the assets of the Union including dairy plants, chilling plants and the expertise and experience of its human resources are under the control of the farmer dominated board, ensures that the instruments of development are firmly in the hands of the beneficiary farmers. Thus MRCMPU Ltd. is at the same time, both a business enterprise as well as a development institution and is owned by a large body of farmers spread throughout the rural hinterland of North Kerala. This organization is also an example of a scheme of things where farmers are helped to help themselves, instead of being forever dependent on govt. doles and rescue packages or being forever fearful of production quotas that are characteristic of many Western Economies. This is also a silent revolution which daily transfers millions of rupees from the comparatively affluent urban consumers to the poorer brethren living in the villages, and that too without the involvement of any third party or govt. agency.

Objectives

The objective of the Union is to carry out activities conducive to the socio-economic development of the dairy farmers by effectively organizing milk procurement, processing and marketing of commodities as per the directions of the Kerala Co-operative Milk Marketing Federation Ltd. For achieving this objective, the Union lays particular emphasis on carrying out the following activities on a commercial scale.

  1. The entire volume of milk produced by the farmers of affiliated member societies is purchased at remunerative prices even in surplus situations.
  2. Proper processing and packing of milk products are carried out in the dairy plants owned by the Union to guarantee product quality of the products supplied to the consumers.
  3. Proper marketing of milk and dairy products are carried out on a daily basis to guarantee consumer satisfaction and thus maximize economic returns for the farmer.
  4. Proactive Innovation and Quality Consciousness.

Vision

To be the global leaders in ensuring the health and wellness of Human beings by supplying safe and sane food, produced by local small/medium, fully respected and fairly treated farmers and self motivated work force.

Mission

MILMA is committed to ensure Farmers' prosperity, well being and consumers' satisfaction:

  • By providing value for money through a variety of safe and sane products,
  • Innovated through, sustainable, eco-friendly and transparent procedures,
  • By the collective, proactive efforts of self motivated employees, farmers and stake holders.

Values

  • Collective Ownership and Responsibility
  • Social Commitment
  • Mutual Trust through Respect
  • Credibility through Transparency and Accountability
  • Proactive Innovation and Quality Consiousness
  • Personal as well as Institutional Confidence
  • Continuous Learning

Figures at glance


  1. Date of starting operation: 15.01.1990
  2. No. of Dairy Plants : 6
  3. Central Products Dairy : 1
  4. No. of Milk Chilling Plants : 4
  5. No. of Milk Chilling Centres : 2
  6. No. of Procurement and Input Centres : 10
  7. No. of Marketing Depots : 10
  8. No. of Human Resource Development Centre : 1
  9. Turnover (2018-2019) : Rs. 1069.56 Crores (Rs 10695.6 Million)
  10. Paid up share capital (2018-2019): Rs 53.08 crores (Rs 530.8 Million)
  11. Average daily procurement of raw milk (2018-2019) : 6,23,496 Litres
  12. Average daily sale of processed liquid milk (2018-2019) : 4,95,598 Litres
  13. Average daily sale of Skimmed Milk Curd (2018-2019): 64,879 Kilogram
  14. No. of farmers supplying milk to the Union (2018-2019) : 88,850

Initial Funding

Since the six districts included in the area of operation of MRCMPU Ltd. were not included in the Operation Flood II Dairy Development Programme of the National Dairy Development Board of India, initial funding for the project on a part-loan and part-grant basis was provided by the Government of Switzerland through the Swiss Agency for Development and Cooperation (SDC). Once the Union attained a financially sound footing, the SDC withdrew from the scene in 1998 allowing the organization to grow and develop independently.

The farmer members of the Board are elected for a five-year term from among the Presidents of the affiliated village level Anand Pattern Co-op. societies. The very fact that a majority of the Board members are elected farmers ensures that the business policies of the Union are always governed with the interests of dairy farmers foremost in mind. In addition, the fact that the assets of the Union including dairy plants, chilling plants and the expertise and experience of its human resources are under the control of the farmer dominated board, ensures that the instruments of development are firmly in the hands of the beneficiary farmers. Thus MRCMPU Ltd. is at the same time, both a business enterprise as well as a development institution, and is owned by a large body of farmers spread throughout the rural hinterland of North Kerala.

This organization is also an example of a scheme of things where farmers are helped to help themselves, instead of being forever dependent on govt. doles and rescue packages or being forever fearful of production quotas that are characteristic of many Western Economies. This is also a silent revolution which daily transfers millions of rupees from the comparatively affluent urban consumers to their poorer brethren living in the villages, and that too without the involvement of any middleman or govt. agency.

MRCMPU Ltd. has the following functional Departments to achieve its objectives.

  • 1. Procurement and Inputs
  • 2. Marketing
  • 3. Production Planning and QC
  • 4. Finance
  • 5. Engineering & Projects
  • 6. MIS & Systems

Procurement and Inputs Department

The Procurement & Inputs (P&I) Department is responsible for functions related to Milk Production Enhancement at farmer level and Procurement of milk by the Societies and Union. The functions are carried out through its units located at Palakkad, Pattambi, Nilambur, Kozhikode, Kalpetta, Kannur, Kanhangad, Vadakara, Kottakkal and Attappady.

Bulk Milk Coolers

Bulk Milk coolers are established at societies for chilling milk to maintain the bacterial quality through the arrest of bacterial growth at lowered temperature. As on April 2018, there are 208 Bulk Milk Coolers having a total Rural Chilling capacity of 6.87 lakh Litre have installed at societies located in six districts

Milk Production Enhancement at Farmer Level

The following programs are carried out at the farmer level to enhance quantity and quality of milk production.

Artificial Insemination

AI facilities are providing through more than 100 Artificial Insemination centers located at dairy co-operative societies. These centres are manned by self-employed youth or trained society employees. The semen doses for insemination are providing to the farmers on free of cost

Heifer Development Programme

The objective of the program is to develop thousands of high yielding cows through their adoption and focused attention from the heifer stage itself. Ten heifers each will be selected from many Co-operative societies and they are proposed to be given special provisions like adequate volumes of cattle feed, vitamins, minerals and medicines using the special budget set apart for this. The union is started the program in the year 2009-2010 and raised 24500 heifers till 2018 year under this program.

Feed and Fodder Programme

For ensuring the availability of quality feed and fodders at farmer premises, union has implemented many schemes.

  • Supply of Balanced cattle feed through the Dairy co-operative societies at subsidised rate.
  • Supply of green fodders at subsidised rate
  • Supply of good quality maize silage and maize fodder at reasonable price.
  • Supply of baled straw to farmers at subsidized rates from Straw Baling Unit at Palakkad
  • Supply of essential drugs and vitamins for up-keep of proper health of milch animals
  • Establishment of fodder plots to make available green fodder to farmers at affordable rates.
  • Availability of readymade channel for the State/Central Govt. to provide cattle feed subsidy to dairy farmers from the state exchequer.


Farm Support Programme

Traditional cattle shed and allied facilities of Kerala are not compatible for rearing of high yielding cross breed animals. For improving hygiene and reducing labor cost of mini dairy farms, Union is providing considerable subsidies for farm mechanization equipments like milking machines, rubber mat, chaff cutter, automatic drinking bowl, pressure washer, generator etc. In addition to farm mechanization, providing subsidies for building of cattle shed and Bio gas.

Decentralized Veterinary Units

Under this scheme, veterinarians on contract basis are posted at a central society with all required facilities. Service of veterinarian is to be made available on nominal cost to the all farmers of that area. The objective of unit is to provide quality veterinary service on farmer's doorsteps wherever it is very essential at a cheaper rate inclusive of free medicines and doctors conveyance.

Self-help Groups

For social and economic wellbeing of women dairy farmers, many self-help groups have initiated at society level. Union is providing a financial support of Rs.1 lakh per group at the initial stage of such groups. As on 1/4/2018, 101 self-help groups are functioning under the societies of operational areas. Groups are allowing loans to the members, for the financial requirement for cattle purchase, education of children, repair of house etc.

Procurement of Milk by Societies / Union

The following schemes are being undertaken to assist procurement of milk under proper conditions at the societies and at the dairies under the Union

  • Provision of building grants for construction of permanent buildings and facilities for societies and special grants to societies for the erection of bulk milk coolers
  • Provision of testing chemicals free of cost to societies.
  • Provision of milk cans to societies at subsidized rates.

Insurance Schemes

The dairy farmers are covered under insurance policies of the Life Insurance Corporation of India and the New India Assurance Company for the following risks.

  • Natural Death
  • Accidental Death
  • Permanent Total Disability
  • Medical Expenses

In addition, a cattle insurance scheme is also operated under the National Insurance Company of India. The premium expenses of all the above policies are met either entirely by the Union or jointly with the societies and beneficiary farmers.

Fodder entrepreneurship and fodder subsidies

Union has raised fodder entrepreneurs whose are willing to cultivate Hybrid Napier varsities of fodder at minimum 5 acre land and supply to the needy farmers from societies. Union is procuring fodder from entrepreneurs at a cost of Rs.3.5/- per kilogram of fodder and supplying to farmers at subsidized rate of Rs.2.5/- per Kilogram. Further, providing fodder subsidies of Rs.2500.00 to the selected farmers cultivating fodder in a minimum land area of 25 cent.

Pension fund for dairy farmers

Union is allocating 0.75% price of each and every litre of milk sold to the dairy farmer's pension fund of Kerala government. Likewise, union has remitted Rs.3273.72 lakh till March 2018.

Ration Balancing Program (RBP)

Ration Balancing Programme has implemented as a sub project of National Dairy Plan. Feeds and fodders available to dairy cows are balancing in accordance to the nutrient requirement of each animal. Determination of Nutrient requirements and formulation of ration balancing are carried out by the help of Software developed by NDDB called INAPH. As on 2018 march, 31009 animals have been registered and their ration have balanced under this project

Village based milk procurement system

Sub project under National dairy plan for enhancing milk procurement systems at society level. Under this program, there are provisions for Organization of new dairy cooperatives, Distribution of data processor cum milk procurement system and milk collection accessories to societies. Further, provided different type of training programs and awareness classes to farmers and society personals on subjects like Dairy animal management, clean milk production, dairy cooperative society functioning etc.

Dairy project for SC/ST beneficiaries

With the financial assistance of Kerala government, supporting socially and economically back ward SC/ST communities through special dairy projects. Union is providing cows, Cattle feed, Insurance, Veterinary aid, Fodder, Rubber mat, and Milk pail, Labour cost to the selected beneficiaries on free of cost using state government fund. In previous years, union has implemented seven such projects at financial outlay of Rs.2849.65 lakhs to 1618 beneficiaries from Nilambur, Sughandagiry, Mananthavady areas. In march2018 five projects are progressing at a financial outlay of Rs.1298.53 lakhs/- to 468 beneficiaries from Nilambur, Vanimel, Karadukka, Muttil and Parappa areas.

Co-operative Development / Institution Building Programme

This program mainly involves training of farmers to take an active and effective role for themselves in the development and growth of their society and thereby union. Awareness classes on scientific dairy animal management also includes under the program

Awards and scholarships

In order to develop a competitive spirit among farmers for achieving excellence in their field of activity, awards are given in each year to farmers and societies who are identified as best performers. In addition, four types of scholarships are also given to farmers' children to enable them to pursue education at various levels.

ADDITIONAL SKILL ACQUISITION PROGRAMME:

Additional Skill Acquisition Programme - ASAP is a joint venture initiative of the General and Higher Education Departments of Government of Kerala to amplify working hands in different sectors of the economy, by providing additional skill sets to students along with their regular courses. Malabar Milk Union has initiated the idea of formulation of ASAP course is based on the vision of providing good quality milk to the consumers, for which the initial quality of the milk needs to be excellent through the Bulk Milk Coolers (BMCs) at the primary co-operative societies. Union identified that proper and timely maintenance of BMCs being very critical due to the perishable nature of milk for which they have started the Bulk Milk Cooler Operator course certified under NSDC (National Skill Development Council) under Agriculture sector, as per the requirements by NSDC, with our existing HRD facilities, for providing the ASCI Certified course to the students to improve their employment opportunity all over India.

Malabar Rural Development Foundation

Malabar Rural Development Foundation is a charitable trust registered under the Indian Trusts Act 1882 for implementing non - core social developmental activities for the benefit of farmers in Malabar region. Chairman, MRCMPU Ltd. is the Managing Trustee of MRDF. It is managed by a board of trustees consisting seven members including Chairman of KCMMF Ltd., Chairman of MRCMPU Ltd and Managing Director of MRCMPU Ltd. The major initiatives of MRDF include the following:

  • Procurement and distribution of good quality farm machineries like milking machines, chaff cutter, rubber mats, Automatic drinker, pressure washer etc. at reasonable rates to farmers
  • Distribution of Alternate feeds like Maize powder, Wheat bran, Ground nut cake to the farmers at cheaper rate
  • Implementation of fruits and vegetable projects
  • Financial support for the education of children of farmers and employees who have registered under the trust
  • Implementation of Farm Tourism Initiatives involving the linkage of dairy farms and scenic spots in Wayanad District, so as to give tourists an opportunity to spend quality time with the dairy farmer in the village

MARKETING DEPARTMENT

Marketing is one of the three key functional areas of MRCMPU Ltd. and it is the only functional area responsible for generating income for the Union. Marketing comprises of the following two broad areas.

MARKETING OF FRESH PRODUCTS

Marketing of Fresh Products (which includes different varieties of milk, curd and butter milk) is a responsibility being carried out by the marketing sections attached to the seven milk-processing dairies. The Marketing activities in these dairies can be broadly classified into Distribution Management and Market Development Activities. The former involves daily distribution of fresh milk and curd in the morning and afternoon through insulated vehicles to the dealers and collection of money and indent from dealers and other related planning and follow-up activities. The latter involves field activities designed to expand the reach of the Union's distribution channel for milk and milk products and to increase market penetration. This is done through a team of field sales representatives for each dairy who are given the responsibility in a specified geographic zone, which in turn comprises of a number of defined markets. The framework for the Yearly activities as well as the financial support is provided through the yearly Marketing Plans of Operation, which is finalised along with the year-wise budgets.

MARKETING OF LONG LIFE PRODUCTS

Marketing of Long Life products (which includes Ghee, Ice-cream, Sip-up, Peda, Palada mix, Flavoured Milk or Milma Plus