From Rs 37 cr to Rs 200 cr in 2 years: Kashee Milk’s remarkable turnaround story

Kashee Milk Producer Organization on Monday said it is all set to achieve a turnover of Rs 200 crore by the end of financial year 2023-24, in just two years of operations, largely supported by rise of women milk farmers. This will be a six-fold increase in revenue for the organization that had recorded a topline of Rs 37 crore in the first full-year 2022-23, since its operationalization on March 9, 2022, Chief Executive Manvir Singh said here.

"We have silently become an army of rural women milk famers determined to become the harbinger of the dairy sector. In the process we have witnessed a rise of over 2,000 lakhpati didis so far and by the end of the year the number will cross 3,000 – thanks to the fast-growth attributed to the fair and transparent procurement price paid to the members', he said. One of our members has earned over Rs 30 lakh for her milk contribution in 18-19 months of our operations, he pointed out. “We have set a target of Rs 300 crore for the next financial year. In addition to bulk milk sales, we will foray into packed products with Kashi flavor,” he said.

The Kashee Milk Producer Organization was set up with the support of National Rural Livelihood Mission (NRLM) and UP State Rural Livelihood Mission (UPSRLM), with the technical support of NDDB Dairy Services (NDS), a subsidiary of National Dairy Development Board (NDDB), he said. Singh also lauded an all-encompassing role being played by NDDB under the leadership of its Chairman Meenesh Shah in the development of the dairy sector of the region. KMPO chairperson Shrimati Sarita Devi said "from our total revenue, 90 per cent was given to member farmers last year in terms of milk price and incentives and going by the same norms, Rs 180 crore would have been transferred in the accounts of women dairy kisans, spread over five districts of the region during this financial year."

"At present, our peak milk collection has touched a high of 1.15 lakh liters a day and in the next few months we will become an organization with an annualized per day average collection of one lakh liters of quality milk for the benefit of consumers. Next year we will expand our milk collection to Varanasi and Bhadohi districts, adding at least three hundred more villages to our network apart from expanding in the five districts of Balia, Gazipur, Mirzapur, Sonbhadra and Chandauli," Sarita Devi said.

Milk payment to members is made in three cycles in a month and directly in the bank accounts of members. Members are equipped with a phone application to view the quantity and quality of milk on a real time basis to know how much each of them gets every 10th day of the month. In addition, the organization is providing fodder, feed, and veterinary support to its members for its motto of empower the rural dairy producers to become the agents of change, Manvir said, adding that with NDDB's support, KMPO is also in the process of setting up 100 biogas plants in its coverage area for meeting household fuel requirements. "We are proud to be associated with this women milk producers' army for we know a determined lot will be good for the prosperity and progress of the region," he said.

Various dairy initiatives are currently underway in the region including establishing forward linkages for the milk procured in the region through its subsidiary Mother Dairy, Delhi; through successful turnaround of once ailing Dugdh Utpadak Sahakari Sangh Plant (Parag) at Banaras and establishment of a mega biogas plant at Parag's facility which is not only providing additional income to farmers but also helping in meeting out the energy needs of the processing unit. Parag's Banaras Plant has emerged as the major success story with capacity utilization touching 90 per cent and is contributing to the revival of the dairy sector in the region by establishing its renewed marketing and distribution network with attractive environment-friendly packages supported by quality products not only in the region but beyond.