Milkfed to set up four milk processing facilities in India

The Punjab State Cooperative Milk Producers’ Federation (Milkfed) is set to establish four milk processing facilities in the Punjab state, India, with an investment of Rs10bn ($179.5m).

Milkfed, which produces dairy products under the Verka brand, has received approval from Deputy Chief Minister Sukhbir Singh Badal to set up the new facilities.

Each plant will be established with an investment of Rs2.5bn ($44.88m) and will meet ISO 9002 specifications.

Sukhbir Singh Badal said that the new facilities are in-line with the state’s plans to make Verka a leading brand, which could be achieved by expanding Milkfed.

Punjab should become a leading exporter of milk products, and tap new markets in the Gulf region, Badal added.

The expansion is part of the state’s plan to achieve a four-fold increase in milk processing capacity.

The project will focus on setting up organised dairy farms, reorienting procurement of raw milk, scientific collection, advanced milk processing facilities, value addition of milk products and effective marketing network to support the growth of the Verka brand.

In addition, Badal has also approved a scheme for women in the dairy sector which will provide subsidised loans to establish farms.

Milkfed, which owns a 17% share in the organised dairy sector, produces a wide range of products including milk, cheese, paneer (cottage cheese), ghee and butter, ice cream, milk powder, skimmed milk powder, and indigenous sweets.

Earlier this month, Nestlé India, a subsidiary of Swiss food company Nestlé, announced plans to upgrade its existing milk processing facility at Moga, Punjab with an investment of Rs2.5bn ($45.4m).

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Image: The new facilities are part of the state’s plan to achieve a four-fold increase in milk processing capacity. Photo courtesy of Alessandro Paiva.