Procuring milk?

We are re-inventing the Procurement wheel.

Concerned about the rising costs of procuring milk?

Milk production in India has been growing constantly.

But so are the costs, problems, and quality issues.

We have witnessed a vicious cycle of falling procurement, falling quality and falling morale among farmers and dairy staff.

We decided it was time to change this. For over an year, we pursued the following goals:

1. Improve quality of milk procured.
2. Win back farmer trust.
3. Increase procurement volumes.

This is what we have done:

  1. Payments to farmer directly in their bank accounts
    (Timely + Accurate payments = Happy farmers).
  2. Transparent pricing system
    (Better quality milk = Higher payouts).
  3. Automated procurement process
    (To err is human, not machine).
  4. Re-configured KRAs for intermediaries
    (Role clarity + incentives = Smoother operations)

Results?

Milk Quality

  • 18% increase in Fat%
  • 12% increase in SNF%
  • 75% reduction in added water

Farmer relations

  • 85% of farmers pour milk everyday
  • 31% increase in farmer count
  • 95% say they are happy with the Dairy

Procurement Volumes

  • 23% increase in volumes
  • 300 new Collection Centers
  • 95% confidence in consistency of the volume