Robust procurement growth and expanding value-added portfolio drive performance as cooperative eyes Rs 10,000 crore milestone

The Kerala Cooperative Milk Marketing Federation, popularly known as Milma, has reported a steady and resilient financial performance in FY26, registering a 6.44 per cent increase in turnover to Rs 4,624.21 crore, compared with Rs 4,344.60 crore in the previous fiscal. The growth reflects a balanced expansion across procurement, sales, and value-added segments, even as the dairy sector continues to navigate rising input costs and competitive pressures.

A key driver of this performance was the strong growth in milk procurement, which rose 12.89 per cent year-on-year, signalling deeper farmer integration and improved supply chain efficiencies. The federation’s average daily milk procurement stood at 12,56,892 litres during the year, up from 11,13,413 litres in FY25. On the demand side, milk sales recorded a stable growth of 4.30 per cent, with average daily sales reaching 17,06,350 litres, compared with 16,36,047 litres in the previous fiscal, underscoring sustained consumer demand across markets.

The federation’s value-added product segment emerged as a significant growth engine, with turnover rising to Rs 1,097.36 crore in FY26, marking a robust 15.94 per cent increase over Rs 946.47 crore in the previous year. This performance highlights Milma’s strategic focus on diversifying its portfolio and aligning with evolving consumer preferences for processed and premium dairy offerings.

Growth momentum was reflected across its regional unions as well, with the Thiruvananthapuram Regional Co-operative Milk Producers’ Union, the Malabar Regional Co-operative Milk Producers’ Union, and the Ernakulam Regional Co-operative Milk Producers’ Union all registering healthy increases in turnover during the year, indicating broad-based operational strength and regional market penetration.

Milma Chairman K S Mani attributed the federation’s performance to its continued emphasis on farmer-centric initiatives and quality enhancement. He noted that the organisation has made significant progress through welfare schemes, production improvements, and quality-focused interventions, even as it contended with rising production costs and intensifying competition in the dairy sector. He emphasised that the cooperative’s achievements have been strongly supported by the commitment and resilience of dairy farmers.

Reaffirming its cooperative ethos, Milma continued to prioritise farmer welfare, distributing 92.5 per cent of its profits to farmers in the previous year. This approach not only strengthens rural livelihoods but also reinforces the federation’s role as a key pillar of Kerala’s agricultural economy.

Looking ahead, Milma has outlined an ambitious growth roadmap, with a target of achieving Rs 10,000 crore in turnover by 2030. The strategy is expected to focus on scaling procurement networks, enhancing value-added product offerings, and sustaining investments in quality and productivity, while maintaining its farmer-first approach.

As the dairy sector moves towards greater efficiency and sustainability, Milma’s performance underscores the enduring strength of cooperative models that combine grassroots participation with strategic growth. With a clear focus on inclusive development and long-term value creation, the federation appears well-positioned to deepen its footprint and contribute meaningfully to the evolving dairy landscape.