Rabo India Finance Ltd, hired by the Punjab State Cooperative Milk Producers’ Federation Ltd (popularly known as Milkfed) to formulate a "Strategic Vision Plan" to improve the efficiency, profitability and market operations of the federation, is likely to submit its report by next month.
"The consortium is likely to submit its report by next month," said Captain Kanwaljit Singh, co-operation minister, Punjab, in an interaction with Business Standard.
He said the government had embarked upon a strategic vision plan to transform Milkfed into a full modern and professional organisation nationally.
The vision plan is being finalised with the assistance of Rabo Bank and the National Bank for Agricultural and Rural Development and will be implemented in two months.
Milkfed sells dairy products like fresh milk, curd, paneer, sweetened lassi, and desi ghee under the Verka brand, popular not only in Punjab but the entire region. The co-operative has 10 milk plants in the state with an installed capacity of 1.5 million kg per day.
Earlier, Kanwaljit Singh had blamed poor management, lack of proper policy directions and lack of performance-based incentives for the recurring losses of Milkfed in the recent past.
At present, there are approximately 360,000 dairy farmers (also members of co-operative societies) under 11 different milk unions supplying milk to the federation.
However, as compared to 2006-07, Milkfed performed well in 2007-08, earning a turnover of Rs 919 crore and a growth rate of 21 per cent. This year it is eyeing a growth rate of 25 per cent.
Singh said: “We are increasing the capacities of the existing plants. The federation has earmarked Rs 60 crore for technology upgrade and ramping up the capacity of our milk plant, cattle feed plant, tetra packing plant etc”.
The capacity of the Mohali milk plant will be tripled from 100,000 litres per day to 300,000 litres per day by December next year with an investment of Rs 15 crore.
The capacity of the tetra packing line situated in Chandigarh will be tripled from 6 million packets to 1.8 million with an investment of Rs 10 crore.
Also a butter-wrapping and carton-packing machine worth Rs 5 crore has been imported from Germany and is being installed in Ludhiana, along with a new atomiser of Rs 92 lakh.
The federation is also planning to foray into co-branded products under the Verka brand. Milkfed is planning to market tea, salt snacks, sugar, ready-to-eat food, etc through its co-operatives, after getting approval from the board.
Initially, Milkfed will launch these products on a pilot basis in 200 co-operatives of the state, out of 6,000.
