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Submitted in partial fulfillment of the requirements for the award of the Degree of


of the Mahatma Gandhi University.

Submitted by AKHIL.T.S (Regn No:10207)

Under the guidance of MS.ANJU RAVI

JUNE 2010 DC School of Management and Technology

Pullikkanam, Vagamon, Idukki 685503 Tel: 04869 248322, 248323

I, AKHIL.T.S, do hereby declare that the work entitled An Organization Study on MILMA Cattle Feed Plant, Pattanakad is a bonafide record of study conducted by me for the fulfillment of the partial requirement for the award of the degree of Master of Business Administration program of Mahatma Gandhi University, Kottayam

Place: Vagamon Date:

Signature: Name:


This is to certify that the organization study titled Organization study on Milma Cattle Feed Plant Pattanakad, is a bonafide record of the work done by Mr. Akhil.T.S, 3rd semester MBA Student of DC School of Management and Technology, submitted in partial fulfillment of the requirements for the award of the Masters Degree in Business Administration of Mahatma Gandhi University , Kottayam, Kerala. Faculty Guide : Date : Place : Pullikkanam Principal

_______________________________________________________________________ _ Examiner I Examiner II

Signature Name Date

Signature Name Date

Certificate from the Company

First of all, I thank the God Almighty for his blessings to complete my Organization Study successfully. I would like to express my heartiest gratitude to Mr. P.G Raju Assistant manager(P&A) Milma Cattle Feed Plant, Pattanakad for giving me an opportunity to carry out my Organization Study. I would also give special thanks to all the department heads, I visited for their support, information, co-operation, advice to complete my Organization study details would also given my sincere thanks to all the staff and the members of Milma Cattle Feed Plant, Pattanakad. I would like to thank my Organization Study guide Ms Anju Ravi, Faculty Guide, DCSMAT for her guidance, constant interest and encouragement which has enabled me to complete my Organization Study successfully.



Particulars a) b) c) d) e) a) b) c) d) a) b) c) d) a) b) c) Objectives Significance Scope Methodology used Limitations Industry profile Company profile Product profile Departmental profile Strengths Weakness Opportunities Threats Findings Suggestions Conclusion

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Objective of the study Significance of the study Scope of the study Research methodology Limitations of the study


The study was conducted at MILMA CATTLE FEED PLANT PATTANAKKAD. This is a co-operative sector unit. The main aim of cattle feed plant is to provide nutritious feeds to cattle. Milma Cattle Feed Plant, Pattanakad started its production on 23rd February 1985 with a total capacity of 100 metric tonnes per day, in 12 acres. It is situated near NH.47 in between Kochi and Alleppey. The milma cattle feed plant is under the Kerala Co-operative Milk Marketing Federation (KCMMF) which is otherwise called MILMA. Milk marketing societies in India have developed which was different from that in other advanced on account of increased pressure of publication on land and small size and fragmentation of agricultural holdings there no medium or large dairy farms in the private sector. The only large firms now in existence are military farms those owned and run by the central governments which were constituted mainly as central for research and extension and not as commercial ventures providing milks and other dairy products.


To familiarize with the organization. To study about the overall functions of the organization To assess the operational efficiency and managerial effectiveness. To study the various functions of different departments. To study about the contribution of various department existing in the organization.


The academic curriculum provides only an outline view about the theoretical aspects of a company. Therefore this study helps the researcher to familiarize with the practical side in an organization. Thus an analysis can be made in the study on which the theoretical aspect is compared with the actual situation.



The study provides an insight to the different aspects of the working of the organization. The study on the whole was revealed that this plant set up under cooperative sector growing progressively and that it has bright future. More over this study helped the researcher to get enough practical exposure.



The methodology adopted in the study comprises the collection of primary and secondary data. Sources of Primary Data The primary data are collected through discussions with managers and workers. Sources of Secondary Data

Company Records Magazines Company website

Time Frame The study was conducted and finished within a period of 6 weeks. 12


Since the officials were busy with their routine engagements it was difficult to spare their time for detailed discussions. The workers were of different educational background so their responses level was different. The study is limited to the knowledge and experience of the researcher in the subject.

The time was a limiting factor for deep study and analysis.




Industry Profile Company Profile Product Profile Departmental Profile



The demand for food of animal origin is increasing in India due to economic growth, population growth and urbanization, which in turn means greater use of cereals and oilseeds for animal feed. This is a trend in most developing countries. India is going 16

through a livestock revolution. In the past two decades the increase in demand was coped mainly by expanding livestock population. However, declining land areas per agricultural population forces India to intensify livestock production. Today, we are faced with an extraordinary set of challenges of increasing food production of animal origin with all the other limitations like land, water, weather etc and the question is how we would meet these demands. We also have another challenge that the food we produce has to be highly cost efficient to make it more sustainable.

The beginning of industrial scale production of animal feeds can be traced back to the late 1800s, this is around the time that advances in human and animal nutrition was able to identify the benefits of a balanced diet, and the importance of the role that the processing of certain raw materials played in this. Corn gluten feed was first manufactured in 1882, while leading world feed producer Purina feeds was established in 1894 by William H. Dan forth. Cargill which was mainly dealing in grains from its beginnings in 1865, started to deal in feed at about 1884.The feed industry expanded rapidly in the first quarter of the 1900s with "Purina" expanding its operations into Canada, and opened its first feed mill in 1927 (Which is still in operation).In 1928 the feed industry was revolutionized by the introduction of the first pelleted feeds - Purina Checkers.

The main ingredients used in commercially prepared feed are the feed grains, which include corn, soybeans, sorghum, oats, and barley. Corn production was valued at nearly $25 billion in 2003, while soybean production was valued at $17.5 billion. Roughly 66 percent of sorghum production, which was valued at $965 million in 2003, is 17

used as livestock feed. Approximately 60 percent of barley production, which totaled 227 million bushels (4,610,000 metric tonnes) and was valued at $765 million in 2003, is used as livestock feed. Annual oat production in 2003 was valued at $218 million. The sale and manufacture of premixes is an industry within an industry. Premixes are composed of micro-ingredients such as vitamins, minerals, chemical preservatives, antibiotics, fermentation products, and other essential ingredients that are purchased from pre-mix companies, usually in sacked form, for blending into commercial rations. Because of the availability of these products, a farmer who uses his own grain can formulate his own rations and be assured that his animals are getting the recommended levels of minerals and vitamins.

The job of the feed manufacturer is to buy the commodities and blend them in the feed mill according to the specifications outlined by the nutritionist. There is little room for error because, if the ration is not apportioned correctly, lowered animal production and diminished outward appearance can occur.



The world's largest feed manufacturer is the CP Group Thailand, producing 18 million tonnes of compound feed at various locations across East Asia.

The merge of the Hamburg based traditional commodity trade firm Cremer and the Dsseldorf based Deuka (Deutsche Kraftfutterwerke) led to one of the largest feed companies in Europe. The new Cremer Group produces around 3.5 million tonnes.

United States
Leading US-companies involved in prepared feeds production in the early 2000s included ConAgra Inc., an Omaha, Nebraska-based firm; and Cargill, Incorporated, a diversified company that was the nation's top exporter of grain. In 1998 Ralston Purina Company, based in St. Louis, Missouri, formed Agribrands International, Inc. to control its international animal feed and agricultural products division. Agribrands produced feed and other products for livestock in markets outside of the United States and had about 75 facilities operating in 16 countries. In 2001 it was acquired by Cargill. Other significant industry players included Conti Group Companies, Inc., the world's leading cattle feeder; CHS, Inc. (previously known as Cenex Harvest States Cooperative), which was primarily involved in grain trading; and Farmland Industries, Inc., the leading agricultural cooperative in the United States. Farmland was a worldwide exporter of products, such as grain. In May 2002, the firm declared bankruptcy, and in the following year Smithfield Foods acquired most of Farmland's assets.



The cattle feed segment is also a segment for potential growth given the fact that India is largest producer of milk in the world. Production is expected to grow 4% at an annual basis. Indias yearly production of 91 million tons of milk implies that the potential market for cattle feed should be approximately 45 million tons annually. However the vast majority of cattle and buffalo in India are fed through grazing and the use of basic mixes and concentrates and the market for compound feed is estimated to be around 5.5 million tonnes. The private players produce around 1.2 million tonnes; the dairy cooperative sector produces around 2.5 million tonnes of low cost feed that is sold to member farmers involved in milk production. The rest is produced by home mixers.

Feeding and Nutrition Update:

NDDB has introduced newer concepts in feeding The Urea Molasses Mineral Block (UMMB) lick allows the slow ingestion of urea- which, in turn, is efficiently utilized by the rumen microbes. UMMB licks are manufactured in different states under the cooperative sector.

Bypass Protein Feed is a new generation cattle feed in India and is manufactured by a special formulation developed by NDDB. Bypass Protein Feed (BPF) contains a large percentage of solvent extracted protein meals, grain by-products, whole grains, molasses, minerals and vitamins. The special feature of the formulation is that 65 per cent of the total protein in the feed is rumen non-degradable protein



In Kerala, the various cattle feed manufacturers include KCMMF, SKM CATTLE FEEDS, OK CATLE FEEDS, KSE CATTLE FEEDS,GODREJ CATTLE FEEDS etc. Among them, the market leader is KSE.

Milky way of Kerala

The Kerala state was included in the second phase of operation flood during the year of 1980-1987 the eight southern Districts from Trivandrum to Trichur were included in the area of the project had a total outlay of 29 cores. Milma have the village co-operative societies in the village level, which have the local milk producer as its members. At this level procurement of milk at the society level take place. The village co-operative society level takes place. The village co-operative societies milk at the regional level to form Regional co-operative milk producers union. There are three unions at Trivandrum, Ernakulam and Malabar union. These unions later federate at the state level to form state federation that is Kerala Co-operative Milk Marketing Federation(KCMMF). The eight southern district from Trivandrum to Trichur were included in the area of the project which had a total outlay of 29 crores.

Establishment of Kerala co-operative Milk Marketing Federation

Kerala co-operative Milk Marketing federation popularly called MILMA was established in April 1980. With its head office at Trivandrum for the successful implementation of this program in Kerala.


From 1980 KCMMF was involved in concentrated spearhead team activities, identification of potential milk collection area, formulation of milk co-operatives and extension activities. MILMA came into its own on 1/4/82 when it looks over the revenue earning activities of procurement and marketing from the government in April 1984 encouragement by the response of second operation flood. The same areas were included in the third phase of operation flood.

Network of the firm

The motto of the co-operativisation of the people, by the people and for the people is the foundation of the three tier system followed by the organization. At the village level we have the village co-operative societies while the local milk producers as its members. This village co-operative milk producers union later federate state level to form state federation. On the lines of Anand Pattern the organizational structure of KCMMF is decentralized and democratized. There are three Regional Milk Producers unions in the state. The unions are in turn well represented in the Board of Federation with three nominees from each union. The Chairman of the federation is elected from among the president of the primary milk co-operative societies. The success story on the dairy revolution 1960s was the farmer owned Amul cooperation in Anand (Karia District, Gujarat) with its integrated approach to production, procurement, processing and marketing on co-operative line. Over the years this evolved itself into a model based on it rule by farmers insuring maximum returns to them. This model came to be known as Anand Pattern.


A dairy program called Operation Flood was launched in 1970 under the ages of National Dairy Development Board (NDDB) functional as the technical consultants. Thus NDDB was started under Societys Act known as Anand Pattern Co-operative Societies (APCOS). The society gets finance from Indian Dairy Co-operation

Operation Flood
Operation flood was the remunerative linking of rural milk producing with urban demand centers as to build up viable dairy industries. The operation flood program has 3 phases. First phase of operation flood aims procurement of milk from urban area to rural surplus started during 1980s. Kerala was included in the second phase of operation flood program. After the operation flood, the veterinary farmers felt the deep shortage of grass. The cattle feed problems increased day by day. For saved the farms, farmers from this problem, the first cattle feed plant established at Gujarat under the NDDB. Govt. of. India.

History of Milk-Market in India

The National Dairy Development Board (NDDB) is the agency of India Government that introduced the dairy program called operation flood launched active as technical consultants. India Dairy Co-operation as the funding agency. The operation flood was the remunerative linking of reveal milk producing centers so as to build up a viable Dairy Industry.




History of Cattle Feed Plant, Pattanakkad
Cattle breeding are a profitable business of middle class of Kerala. The milk business of the state largely depends on the cattle breeding. The shortage of fresh grass and hay urges to switch on to cattle feeds. 99% of the farmers depend on different brands of cattle feed. Cattle feed plant Pattanakkad can describe as an important well-established unit among the cattle feed plants in India. Milma cattle feed plant at Pattanakkad is set up under operation flood 11 programmers with a production capacity of 100 tones of balanced cattle feed per day commissioned on 23/2/1985 under Kerala Co-operative Milk Marketing Federation. This is a co-operative venture established with a solid Kerala govt shares. The main aim of this venture is to supply superior quality balanced cattle feed to farmers at minimum rate. In 1982, the govt acquired land for factory. In December 1984, plant construction completed with an expenditure of Rs7392464. Sri.K.R.Gowariamma (Hon. Minister of Agriculture in Kerala) at the time so she was the minister of Industries in Kerala asked Mr. Kurian (Founder and Director of NDDB) to prepare a plan and project report of establishment of plant around Cherthala. After an extensive survey of the milk producing areas, Mr. Varghese Kurian set up a plant with the help of NDDB. The plant was also set up under operation flood11. Now it is one of the fastest growing public sector companies under the govt of Kerala with a capacity to produce 300 metric tons of cattle feed per day. It is running smoothly and profitably. The starting capacity of the plant was 100 tonnes/day in 1985. Subsequently raised to 300 tonnes update computerized electronic machines are used for the production. The 25

hatching method conducted using computer comprises the quality of the product. There is a dust extracting system, which ensures dustless healthy environment in the plant.

Mission Our mission is farmers prosperity through consumer satisfaction. The main mission of C.F plant is to increase the co-operation among the veterinary farmers. The C.F plant, Pattanakkad has followed by the decentralized and democratized activities. The company provides all necessary type of cattle feed for protect the veterinary animals from the series disease and help the veterinary farmers on economically. Vision To constantly strive to provide valued customers with the highest quality cattle feed with the best standards of service by our passionate and focused workforces using state of the art technology ensuring sustained growth and simultaneously ensuring dairy farmers delight by better realization of milk price and offering doorstep. needed service at his/her

Quality We, at Milma Cattle Feed Plants are committed to produce and distribute quality and balanced cattle feed at the lowest price possible for satisfaction of customers in our fully automated plants. For this goal we plan and implement strict quality control management and continual improvement by use of good quality raw materials and strict manufacturing process to ensure that Dairy farmers get balanced cattle feed, at their doorstep.


Goals The goal of the company is to provide all necessary facilities under the one roof to veterinary farmers. The veterinary farmers lead this company. The goal of the company is classified into two: external and internal goal. The external goal is for improving the standard of living of the veterinary farmers and internal goal is for maximizing the profit with minimum cost. Objectives The main objective of the company is to assist the veterinary farmers on economically and socially. Another objective is to provide the high quality cattle feed with minimum cost. The company plays the crucial role in the Kerala economy. However, the profit maximization with cost minimize as the objective of this firm Plans The main future plans aiming at modernization that is, for conversion of mash feed production to pellet production and expansion of other infrastructural facilities. The company has the following plans to execute in the future. 1. Expansion of finished products godown. 2. Expansion of administrative block and workers amenities. 3. Development of roads and other areas around the company. 4. Lorry parking yard to accommodate 40-50 trucks at a time. 5. Total production to 500mt/day Structure The organization chart and associated information that shows who reports to whom and how tasks are both divided up and integrated. In the cattle feed plant, Pattanakkad, the senior manager is the apex destination. Six important departments are working in his position. They are Finance department,


Production and Maintenance, Marketing, Personnel or H.R.D, Purchasing and Animal and Nutrition department. The company is under the guidance of senior manager. The all other position of departmental manager except purchasing department is known as assistant manager. The detailed discuss about the structure of the company are include the organization structure, the separate chapter shown in this report. Systems The system shows the flow of activities involved in the daily operations of business, including its core process and its support systems. Information system It refers section head places emphasis on ensuring that every office worker in the unit, a computer on his task. The modern techniques are applied in this organization. The organization is fully computerized. In the cattle feed plant, Pattanakkad, all the bills are computerized. The accounting sections, purchase section, H.R.D section, marketing section are fully computerized. Styles The style of an organization, according to the Mc.Kinsey framework, becomes evident through the patterns as actions taken by members of top management team over a period of time. In KCMMF Ltd, C.F plant, Pattanakkad, the functions of top management are: 1. Formulates the strategic plan for his department. 2. Gives orders and instructions. 3. Formulating good communication among employees. 4. Maintain discipline in the firm. 28

5. Take important and necessary decision for the department. 6. Provide inspiration and motivation to the employees. The main style of the company is co-operativisation. But all the decisions regarding the plans, the top-level management takes policies, procedures etc. The company is fully controlled by the senior manager. All the department heads are making consumers strength by the team building exercise, a unique residential workshop for efficiencies on Creative Prospective. All the departments such as upper level, middle level and low level are actively in Line and Staff relationship. The nature of the company is public Ltd. Shared value It refers commonly hold beliefs; mindsets assumption that shapes how an organization behaves it is corporate culture. Beliefs The company is believed under the co-operativisation. The organization is decentralized and democratized. The farmers actively participate in the company activities. However all the regional milk producers unions have active elected representative of farmers.

Culture The company belongs to the concentrated team activities. The company also followed the policy of By the people, of the people and for the people. The employees works in a freely atmosphere. They formulate Line and Staff relationship from up level to lower level.


Values The company gives most importance to the human. It provide all the facilities to the employees such as welfare activities, reading room, game, canteen etc. the company has more response to society through provide employment opportunity and protect the veterinary farmers through distribute the high quality cattle feeds with minimum price.



Board of Directors

Managing Director


Sr.Mgr Mngr
Mngr AM(P&A Finance )
AM (P&M)
Animal Nutrition Officer

Asst. Acc. Ofcr.(Mktg)

Asst Stores Officer

Sr. Sptd

Jr. Spdt.

Deputy Engineer


Jr. Asst

Sr. Asst

Jr. Spdt

Jr. Asst.

Technical Supervisor

Lab Technician

St Attender

Sr. Asst.

Office Attender

Skilled Worker

Lab Atndr

Jr. Asst.


Semi-Skilled Worker

Office Attender



The milma cattle feed plant is a subsidiary of Kerala Co-oporative Milk Marketing Federation (KCMMF) The main products of the KCMMF Ltd are milk products such as dairy milk, ice creams, ghee, butter and cattle feed. There are two cattle feed plants under KCMMF Ltd. They are situated at Pattanakkad (Alleppey) and Malampuzha. Kerala Co-operative Milk Marketing Federation (KCMMF)

Type Industry Founded Headquarters Products Employees Website

Cooperative Dairy 1980 Thiruvananthapuram, Kerala, India Milk products & Cattle feeds 32,000


The Kerala Co-operative Milk Marketing Federation (KCMMF) or Milma started its operation in 1980 with its head office at Thiruvananthapuram. It was started under the Indo-Swiss project. The project was launched in 1963 on the basis of a bilateral agreement executed between the Swiss Confederation and the Government of India. The project has made great strides in the improvement of livestock farming in the state. One of them is the development of Swiss Brown, a cross breed suited for the state's conditions. The project is now managed by the Kerala Livestock Development and Milk Marketing Board. It main motive was to implement the Operation Flood program started by the National Dairy Development Board (NDDB) in Kerala. The project impact was so widespread that close to about 83 % of the adult cattle of the state got converted to the new breed Sunandini-, the milk production increased by over ten times and the per capita availability of milk increased by over 7 times with over a million families dependant on milk production. The project has succeeded in integrating better technology and management to the traditional small holder production system. It also demonstrated how the high productive, semi stall fed cows led to a spontaneous decline in the total bovine population of the state from 34.6 lakh in 1977 to 21.86 lakh in 2003 when the total bovine population of India went through an upsurge. This contributed immensely to environmental sustainability. By demonstrating a growth model for productivity enhancement, the project not only impacted the million small livestock holders in Kerala, but also millions outside the state.


The project demonstrated revolutionary institutional changes beginning with the Indo Swiss project of Kerala, an autonomous institution under the govt. of Kerala to the Livestock Development and Milk Marketing Board and then to the present autonomous company - the Kerala Livestock Development Board, with the formidable dairy cooperative system under the Kerala Cooperative Milk Marketing Federation (MILMA), under the able guidance of its first managing director S. Nagarajan IAS, spun off as successful an independent entity. Kerala Co-operative Milk Marketing Federation (KCMMF), popularly called milma was established in April, 1980 with its Head Office at Thiruvananthapuram for the successful implementation of the Operation Flood (a dairy programme launched in 1970 under the aegis of National Dairy Development Board (NDDB). The name milma represents:

2,702 primary milk co-operative societies 7.78 lakhs farmer members Three Regional Co-operative Milk Producers' Union Eleven Dairies capable of handling 9.90 lakhs litres of milk per day Thirteen Milk Chilling Centres Two Cattle Feed Plants with cumulative capacity of 600MT per day One Milk Powder Plant of 10MT per day capacity A well established Training Centre 5,200 retail outlets Over 32,000 people working either directly or indirectly for the functioning of

milma Apart from these milma serve millions of consumers day-in and day-out.

The Motto of Co-operation of for the people, by the people and of the people is the foundation of the "three tier system" followed by the organization. At the village level we 34

have the Village Milk Co-operative Societies which have the local milk producers as its members. These Village Co-operatives unite at the Regional level and form Regional Cooperative Milk Producers' Unions. There are three regional unions, TRCMPU (Trivandrum Regional Co-operative Milk Producers Union), ERCMPU (Ernakulam Regional Co-operative Milk Producers Union, MRCMPU (Malabar Regional Cooperative Milk Producers Union).

Milma is in constant touch with other Organizations in this sector. It is only through this active exchange that milma grew from a small dairy co-operative to the position it holds in Kerala today. Chief associates are:

National Dairy Development Board, under Dr. V Kurien's guidance set up

KCMMF in 1980. Ever since then, there has been a very close co-operation between NDDB and the Federation. NDDB are the originators of the Operation Flood Program and have been our funding agent for the Operation Flood Projects in Kerala.


The Dairy Co-operatives of Gujarat have been the inspiration for the development of such a vast network of dairy co-operatives in Kerala. Among the co-operatives in Gujarat, the Kariaa District Co-operative Milk Producers' Unions (Amul) is the the first in this sector. Our Co-operatives are called "Anand Pattern Co-operative Societies" following the illustrious lineage of "Amul".

Government of Kerala-The Phenomenal success of the Dairy Co-operatives in

Kerala could not have been achieved, without the foundation of animal husbandry activities, led by the Animal Husbandry Department, Dairy Development Department and Kerala Livestock Development Board, of the Government of Kerala.


Cattle Feed Plants

Milma has two cattle feed plants, one each at Pattanakad in Alappuzha District and Malampuzha in Palakkadu District. The plant at Pattanakad was established in 1985 with an investment of 142 lakhs and the installed capacity of the plant was 100 MT per day. Later during 1993 this plant was expanded to 300 MT per day capacity at an investment of 307.5 lakhs. This plant can also produce pellet form of cattle feed. The plant at Malampuzha was set up by Animal Husbandry Department, Government of Kerala in 1972 with an installed capacity of 100 MT per day and later during April 1983 it was handed over to KCMMF as part of the agreement between Government of Kerala and NDDB for implementation of Operation Flood II program in Kerala. This plant was modernized with computerized batching operation with an investment of Rs.56 lakhs during 1989 and subsequently expanded to 200 MT per day capacity during 1995 with an investment of 214 lakhs. These plants were set up to supply good quality balanced compounded Cattle Feed at reasonable rates to member farmers of APCOS. The capacity augmentation from 200MT to 300 MT with introduction of Pelletization facility was completed. The total production capacity of the plants is 600 MT per day, i.e., 300 MT per day capacity plant at Pattanakkad and 300 MT per day capacity plant at Malampuzha.

Training Centre
In keeping with the ideology of placing the instruments of progress in the hands of the farmers themselves, an orientation program was started way back in 1984 and the training needs were met from a rented building at Edappally in Ernakulam District. During the initial period NDDB came forward to help us in providing financial assistance as grant for meeting the training center expenses. Under North Kerala Dairy Project Phase I, Swiss Development Co-operation provided Rs. 29 lakhs as grant for establishment of a full-fledged training center with hostel facility in the land adjacent to Trichur Dairy. Accordingly the training center was established and started functioning 36

from the new premises from 2.1.1992 onwards and it provides training courses for Presidents, Secretaries, Milk Testers, Milk Collectors of Anand Pattern Co-operative Societies, Milma agents and Milma staffs.


Central Product Dairy, Alappuzha

Cattle Feed Plant, Pattanakad

Thrissur Training Centre

Cattle Feed Plant, Malampuzha

Cattle Feed
Balanced cattle feed is the major input provided to the dairy farmers of the State from the Federation. There is a high level of acceptability for this product in the market. Milma is now producing 600MT cattle feed a day. It produces both mash and pellet form of cattle feed. In addition to augment the balanced feed and to support vitamine level in m animal, milma has come out with milma mineral mixture -"milma min". The cattle feed is distributed to farmers at reasonable rate through Apcos, Dealers and Government agencies.


Adjudged Top Feed Manufacturer of India for manufacture of Aflotoxin-free best quality cattle feed by Indian Association of Veterinary Pathologists during 1998.

The main products of the KCMMF Ltd are milk producers and cattle feed. There are two types of cattle feed products in KCMMF Ltd Cattle feed plant Pattanakkad. They are mash and pellet. The mash is powder form and pellet is millet form. Brand Name All the products of KCMMF such as pasteurized dairy milk, ghee, creamy butter, sterilized flavored milk, ice cream, refresh drinks and cattle feed are under the brand name of Milma. All the KCMMF products are strictly adhered to the PFA rules and are sent to the market only after the quality checks. Brand /Brand Mark The Milma represents the brand of KCMMF products. The main products of KCMMF are The products of milma are: Milma gomathy Milma min 38

Milma gomathy
It is a pellet type of cattle feed and it is packed in 50 kg. Production Specification Moisture (Max)-11% Protein (Min)-22% Fiber(Max)-7% Fat (Min)-3 % Salt (Max)-2.0% Phosphorus (Min)-0.5% Sand & Silica (Max)-4%

Milmamin is a vitaminised cattle feed. There is constant increase in the demand of this product from the market. This is packed in one kilogram. Animals specific requirements for mineral, these requirements are based on the type, weight and age as well as the rate of performance [weight gain, level of milk, production and pregnancy] expected on the animals.

Minerals imbalance and/or deficiencies can result in decreased performance

decreased disease resistance and reproduction failure, which result in series economics losses. If 30gm 50gm of Milmamin is mixed with the feeds and given to the cattle, the problem will rectify. Minerals contains in Milmamin are : Calcium Sodium Phosphorous 39




There are 4 main departments and 3 other department in Milma cattle feeds. They are; 1. Personnel Department 2. Production Department 3. Marketing Department 4. Finance Department The other three departments are:5. Quality control Department 6. Stores Department 7. Purchase Department


The Personnel department deals with the managing and controlling of persons in an organization. Planning personnel requirements, analyzing performance, salary administration is done with the help of information system. The requirement of staff of the C.F plant is done from external and internal sources. The organization provides shortterm training for present employees for the purpose of introducing the new systems or techniques. There are nearly 300 workers in the organization. Among them 50-60 are temporary. There are nearly 10 clerical staffs. Milma gives promotion in every 5 years and grade is being given in every8 years, whose promotion is not possible. The main functions of Personnel and Administration Department: Recruitment Selection Appointment and induction 42

Training Wage and salary administration Promotion Transfer Labour welfare and safety Industrial relation Disciplinary action Statutory and legal matters General administration

Recruitment Recruitment is an important personnel function. Recruitment is the process of finding out qualified people. In the whole federation, till 1995, milma was doing recruitment by itself with the recruitment policy approved by the government through employment exchange. For certain posts such as A.N.O, paper notification was given for recruitment. In 1995, State government passed legislation to handover the recruitment function of major co-operative organizations to P.S.C. Though the state government has passed the legislation no recruitment has been done by P.S.C till this date .Now only temporary appointment is done.

Selection Selection is also an important personnel function. The suitable candidates that are, holding required qualification and others are selected for the post. In the C.F plant, Pattanakkad, the selection process is conducted by the PSC. The steps in the process are the following. 43

Application Screening Selection test Interview Employment Appointment and induction Induction training is given to those employees who need that. Workers do not need such training.

Training The training and development organization in Kerala Co-operative Milk Marketing Federation is the National Dairy Development Board. Thus board provides training and development for both managers and workers. Remuneration Office staff and technicians get consolidated salary that is at fixed rate and workers are getting daily wages. Office staff gets basic pay of Rs.6000 and above. It include BP+HRA+DA. Increment is given once in a year to permanent employees. 181 workers are getting time rate and 114 are getting piece rate. Promotion Promotion is the transfer of an employee to a job that pays more money or one that enjoys same preferred status. In Milma, promotion is given in every 5 years and grade is given in every 8 years when promotion is not possible. Bonus 17% of wages is given as bonus. Employees getting salary above 7500 are not given bonus.


PF As per Provident Fund Act, employee contribution to PF is 12% and employer contribution is also 12%. ESI As per Employee state insurance act, employee contribution is 1.75% and employer contribution is 4.75%. Employees having salary above 15000 are not given ESI.

Allowances Workers are given night shift allowance, washing allowance and uniform allowance. Advance Usually advances are given at the time of onam. Trade union The trade union means any combination formed temporary or permanent for the purpose of regulating the relation between employer and employee. There are 4 unions existing in Milma. They are INTUC, CITU, AITUC, and BMS etc.

Workers welfare Employees welfare organization stands for providing welfare at the time of special events like death, accident, marriage etc. Employees welfare organization provides;

Medical facilities 45

Canteen facilities ESI Lunch and restroom Organizing culture festival programmes

Safety measures For ensuring safety of workers at plant they are providing the following such as gloves, shoes, first aid facility, dust extraction system in the plant, which help to suck dust arising at the time of production. Leave 10 casual leaves and 15 sick leave are given for permanent employees. Earned leaves one for 11 working days. Earned leaves can be surrendered and carry forwarded.

Retirement Retirement of a worker is an important event in his life and from the companys point of view it terms on the moral value. In this firm persons are appointed from 18 years onwards, 58 years is his retirement age.


The production technologies used are; 1. Pellet production technology 2. Mash production technology Pellet production takes more time than mash production. Pellet production technology results in Gowmathy. Mash production technology results of high energy feed and Gowardhini. Now the firm is producing 300 tonnes including both pellet and mash. Production is the process of making inputs into outputs or transformation of raw materials into finished products. The plant work as 3 shifts, each has a time period of 8 hours. The main products of this firm are; 1. Milma gomathy 2. Milmamin 47

Raw materials
The quality of the finished product depends up on the applicability or use of standard raw materials. The purchase committee at the head office entertains the main purchase of raw materials to the cattle feed plant. The purchase committee and the purchase manager also fix the quantity, quality and role of purchase of commodities. The raw materials used for production are:

DORB( De Oiled Rice Bean)-Red and White Coconut Cake Mineral Mixture Molasses Palm Kernel Silk Cotton Cake Sago Waste Varagu Bran Coffee Husk Cotton Seed Extraction Rice Polish Calcite Salt Urea Bentonite Wheat Bran Tamarind Seed Extraction

The main raw material used is DORB (white). The advantage of white DORB over red is that it has more oil content.


The main sources of raw materials are collected from Tamil Nadu, Karnataka, and Andra Pradesh.

Machines involved in Cattle Feed Production

a. Grinding machine This machine is used for grinding raw materials like Jowae, Maize etc. b. Mixing Machine This is used for mixing the raw materials. c. Pre-mixture machine Calcite powder is mixed with above by this machine and form mash. d. Pellet machine This machine is used for cattle feed as pellet. e. Air compressor For functioning flap and siliquid value air compressor is necessary. f. Bagging packing machine This machine is used for packing the cattle feed in each bag. g. Aspiration system This machine is used for sucking the dust which is arising out at the time of production of cattle feed. h. Electronic controller For controlling and giving necessary electricity to each machine, this machine is used.


Production Process
The firm follows a highly mechanized and systematic production process. Using the most modern machinery and supervising the manpower, effectively. All production processes are carried out by computer controlled machines. The production process involves the following steps. 1. Supply of Raw materials 2. Dumping 3. Batching 4. Molasses mixing 5. Pellet feed production 6. Cooling 7. Bagging 8. Stitching 9. Handling 10. Distributing

Production system
The production system of the company is fully computerized. The two types of cattle feeds are produced from the plant, mash and pellet. These cattle feeds are produced as batch. In one batch 1000 kg cattle feed are produced.


The company has a special department for marketing their products. As it marketed only 10% cattle feed through private dealers.

Marketing system
Sales forecasting, sales planning, customer and sales analysis are done with the help of computer system. The transactions are sales orders, promotion orders etc done under the systems. The marketing operational control activities include the timing and training of the sales force, the day-to-day scheduling of sales and promotion efforts. Sales volumes by region, product, customers etc are including under the marketing systems.

Marketing channel
A channel of distribution may be defined as an organized network of agencies and institutions which in combination, perform all of the activities required to link producers with users and users with producers in order to accomplish the marketing task.


70% of the product is marketed through the societies (APCOS) 20% of the product is marketed through government agencies 10% of the product is marketed through private dealers

Sales promotion
To maximize the sales of the product or service every firm adopts sales promotion activities. Maximization of sales is the main aim. Different steps in sales promotion are; 1. Advertisement a. News paper b. T.V c. Cinema slide d. Poster 2. Personal selling 3. Sales promotion 4. Publicity

Importances of sales promotion are; a. To increase the volume of sales b. To attract the customers. c. To create more sales.

Product Mix
A product mix is the full test of all the products offered by a company. That is all the products manufactured and distributed by the company.


Product mix of KCMMF plant

The following are the product mix of the KCMMF plant. They are ghee, Dairy milk, Creamy butter, Flavored sterilized milk, Ice cream and Cattle feed.

Product mix of cattle feed plant Pattanakkad

There is no product mix in cattle feed plant Pattanakkad because there is only one product is produced known as cattle feed Product segmentation under C.F plant Pattanakkad The Milma Gomithra and Milma High Energy Feeds are mainly intended for the deceases affected cow. Milma Gowardhini and Gowmathy are required for the low milkproducing cow. The Milmamin is intended to veterinary animal to meet defects of nutrition. All other products are required for ordinary healthy cow. The C.F plants products are segmented only on the basis of veterinary decease. Competitors of the plant 1. K.S Cattle Feed 2. Shilpi Cattle Feed 3. OK Cattle Feed 4. SKM Cattle Feed 5. Kerala Feeds 6. Prima Cattle Feed On contract basis transportation facilities are adopted. No direct selling, it is only through societies or dealers. In order to improve the sales through APCOS the firm have introduced APCOS employees incentive scheme from 1997 at Rs 5 for each bag.


The most important factor, which is required by an organization to run difficulty, is finance. Finance refers to the money or funds available to the firm. Finance is the central point of the business activity so it is known as the lifeblood of an organization. Importance of Finance Finance refers to money or funds available to the firm. A business needs funds at every step to start a business to operate it and to expand or modernize its operators. Finance is required for the existence of a business. Sources of Fund In plant, Pattanakkad gets finance from the Canara bank, SBT, DCB. All the cheques are signed by the senior manager. Preparation of Accounts There are different types of accounting statements and accounts prepared by this department. The main accounting statements include: Trading & Profit & Loss Account Balance sheet 54

Bank Reconciliation Statement

Income tax assessment is done after one year, at the end of the financial year. Audits are of three types

Internal audit - done every year Statutory audit- This is compulsory and done according to the companys act Tax audit - Audit of financial accounts for assessing tax.

Objectives of F.M To ensure that owners are able to secure the maximum return on their investment. To ensure availability of sufficient fund at reasonable cost. To ensure effective utilization of funds. To ensure safety of funds through creation of reserve, reinvestment of profit etc.

Turnover of CATTLE FEED PLANT PATTANAKAD (Units wise - Lakhs*)

YEAR 1996-97 1997-98 1998-99 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

Cattle Feed Plant Pattanakkad 2226.91 2069.16 3041.71 4419.66 4284.89 4580.42 4691.39 4968.62 4325.24 5135.58 5082.00 4933.08 55 5644.05

Purchasing is the main function carried out by this purchase department. The raw materials purchased for this unit are mainly from outside state. The order for purchase is produced according to the requirements from the stores. Milma Bhavans that is head office of Milma makes purchase orders to outside state for the two plant i.e., Malampuzha & for Pattanakkad. To take the advantage of bulk transaction, the purchase dairy consumables and cattle feed commodities centralized. The purchase committee carries this out successfully


The store section established adequate control over the raw materials, packing materials, finished products its storage and delivery etc. As a consignment of raw materials arrived before weight, a sample from each truck will be taken for analysis in the lab. After the result the load may be accepted or rejected. It accepted the truck can be weighed. The Senior Manager scrutinizes the parties invoice and enters the details in the computers. Immediately weighment slip will be prepared in triplicate. One will be used to the supplier through driver. One will be forwarded to cashier for payment of unloading charges at the end of the day and one will be retained in the section.

The storage capacity of the warehouse was not enough before. So the management hired a nearby theatre for keeping the stock. Later it proved uneconomical. Then they topped using that. During emergencies, i.e., when the raw materials are available at low cost, the plant uses the warehousing facility available in the Cherthala Warehousing Co-operation on rental basis.



A special department does the quality control testing. The quality control lab is operating for this purpose. The raw materials are taken for testing. The finished products are also taken for checking quality. The quality control lab has some quality parameters. For each parameter a set of standard is maintained. This should not exceed or below the standard.



SWOT Analysis


STRENGTH: Premier organization in Kerala producing high quality cattle feed Capacity utilization of the plant is above 95 %. Adjudged Top Feed Manufacturer of India for manufacture of Aflotoxin-free best quality cattle feed by Indian Association of Veterinary Pathologists during 1998. High level of acceptability for the product. Democratic management Milma provide a better working condition for the employees. The companys product has high demand and acceptability. A fair wage system.

WEAKNESS: Centralized decision making Warehouse facility of the plant is not enough. Recruitment process is not done by HR dept. If a single machine fails, the working of the entire system may be interrupted.

OPPORTUNITIES: Widely accepted products around Kerala State government support Huge potential for further growth

THREATS: Unnecessary government intervention Competition from other companies






The firm maintains a perfect rapport between the employer and employees. The firm is maintaining its high goodwill and reputation. The decision making is centralized at the head office. The recruitment of the firm is done through PSC. The plant offers high quality cattle feed with preferable appreciation. The firm distributes their products through their own network. Best quality is the unique selling proposition of their products. The firm co existence of public sector and private sector undertakings. The price of cattle feed products is affordable.

The Milma Federation does not that much believes in the effectiveness of the advertisement program They are providing good quality products to the consumer. Dedicated employees are seen in all departments. Heavy work load is seen in all departments.



Management should provide some medical centers within the organization.

The firm should avoid the wastage of raw materials to decrease the cost of production Advertisement campaign should be more powerful. Make effective working conditions for the employees. Take necessary measures to extent customer service facilities.

A warehouse has to be constructed since the storage capacity of the Stores Department is not enough. They should extend the production capacity to 500 MT per day.

They should make use of the idle land by constructing new plant in order to increase the production.



The organization study conducted at the MILMA Cattle feeds plant Pattanakkad helps the researcher to understand the working of this undertaking. The study on the whole has revealed that the plant set up under the co-operative sector developing progressively and so it has a bright future. The findings of the study emphasis and justify the co-existence of the public sector and private sector undertakings in our national economy and the views of our national leaders. The planners and the policy maker of the modern India should recognize the fact that it is unnecessary and unwarranted to sell the shares of public sector undertakings, which are managed efficiently and render social service to the society.


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Internal Sources: Company records Company manuals