Management of Procurement of Milk and Marketing of Milk and Milk Products by Vijayapura and Bagalkot Milk Union Limited (VIMUL), Karnataka, India

Abstract

Livestock, particularly milch animals, significantly contribute to the livelihoods of many families in India, particularly among resource-poor farmers. This study focuses on the business performance of Vijayapura and Bagalkot Milk Union Limited (VIMUL) in Karnataka, India. Both primary and secondary data were utilized, and analysed using techniques like seasonal indices, compound growth rate analysis (CAGR) and tabular presentations. This study examines the trends and fluctuations in milk procurement, pricing, and product sales at VIMUL over four distinct periods from 1986-87 to 2021-22. Analysis revealed significant increases in both the quantity of milk procured and the cost of transportation. Monthly milk procurement volumes grew substantially, with a notable rise from an average of 20,269.74 liters per day in Period I to 163,200.53 liters in Period IV. Concurrently, transportation costs per liter surged from ₹0.40 to ₹1.89. Prices for cow milk rose from an average of ₹5.08 per liter in Period I to ₹28.45 per liter in Period IV, while buffalo milk prices increased from ₹6.34 to ₹42.33 per liter. Significant growth rates were observed, with Period III showing the highest increases in producer prices due to enhanced government subsidies and policy initiatives like the Ksheerabhagya Yojana. Monthly seasonal indices indicated variations in procurement levels, with peaks in January and February, reflecting high milk production during flush seasons, and lows in August due to reduced production. Sales volumes for milk increased from 17,726.75 liters per day in Period I to 70,818.33 liters in Period IV, with notable growth in product-specific categories. Flavored milk sales showed a negative growth rate in the latest period, while curd and ghee experienced significant increases. These findings underscore the need for strategic improvements in procurement and distribution processes, as well as targeted policy adjustments to support dairy farmers and enhance market stability.