Mangaluru: Dakshina Kannada Cooperative Milk Producers Union Ltd (DKMUL) is planning to establish a mega dairy unit at Kulashekara in Mangaluru to meet the growing demand in the region.
DKMUL President Raviraj Hegde stated that the proposal will be discussed in detail during the upcoming board of directors meeting after consultation with the National Dairy Development Board.
In addition to the mega dairy, the union is planning to set up an ice cream plant, a paneer production unit, and a bottled water manufacturing facility as part of its expansion strategy.
Financial Performance and Farmer Support
DKMUL reported a total business turnover of ₹1,270 crore in the financial year 2025–26, marking an 8.18% increase from ₹1,174 crore in the previous year. However, the net profit declined to ₹10.6 crore from ₹12.8 crore.
The reduction in profit was attributed to increased incentives provided to dairy farmers. The union offered ₹2.50 per litre as incentives, which included:
- ₹1.50 per litre regular incentive
- ₹1.00 per litre special incentive (February 21 to May 31, 2026)
A total of ₹23.9 crore was allocated for incentive distribution to milk producers.
Additionally, ₹6.6 crore was disbursed as subsidies under various dairy development schemes, including mini dairy units, milking machines, rubber mats, commercial dairy units, green fodder cultivation, cattle purchase, and calf-rearing programs.
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Growth in Procurement and Infrastructure
The union achieved a 19% increase in milk procurement during 2025–26, with an average daily procurement of 4.07 lakh litres.
DKMUL currently operates through an extensive distribution network of 1,781 active outlets, including:
- 42 parlours
- 91 franchises
- 15 TCD (Total Consumer Delight) outlets
Two major infrastructure projects worth ₹11.2 crore are under construction and expected to be completed within the current financial year:
- ₹7 crore warehouse at Mangaluru headquarters
- ₹4.2 crore administrative building at Udupi dairy
Outlook
The planned mega dairy and allied projects signal DKMUL’s push toward capacity expansion, value addition, and stronger market presence. Increased farmer incentives and infrastructure investments indicate a balanced approach toward both producer welfare and business growth.
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