The document discusses the concept and importance of milk cooperatives, highlighting their role in empowering farmers, ensuring quality control, and contributing to rural development. It also outlines various purchasing methods for milk, including criteria like weight, volume, fat and solid content, as well as procedures for collecting milk from producers and vendors. Overall, it emphasizes the benefits of collective action in the dairy industry, including economic stability and market access.

1. PREPARED BY DR. SUSHIL NEUPANE (B.V.SC. AND A.H., IAAS, TU)
Unit 6: Buying and collection of milk
6.1 Concept of milk cooperatives and their importance
6.2 Purchasing methods of milk on the basis of weight, volume, fat, SNF, TS, two axis test and
premium
6.3 Buying and collection of milk through milk producers and venders
6.1 Concept of milk cooperatives and their importance
Milk cooperatives, also known as dairy cooperatives, are organizations formed by dairy farmers
to collectively process, market, and sell their milk and dairy products. These cooperatives play a
vital role in the dairy industry and have significant importance for farmers, consumers, and the
overall economy. Here are some key points on the concept and importance of milk cooperatives:
1. Collective Strength: Milk cooperatives bring together individual dairy farmers, who may
have limited resources and bargaining power when dealing with large processors or
distributors. By joining forces, farmers can collectively negotiate better prices for their
milk and access to essential services, such as processing facilities, storage, transportation,
and marketing.
2. Economic Empowerment: Milk cooperatives empower farmers by providing them with a
platform to participate in the value chain and obtain a fair share of the profits. By
eliminating intermediaries and direct sales to processors or consumers, cooperatives help
farmers bypass middlemen and increase their income. This, in turn, enhances the economic
stability and livelihoods of dairy farming communities.
3. Quality Control: Cooperatives often establish rigorous quality standards and best practices
for milk production and processing. By implementing quality control measures, such as
regular testing, monitoring, and training, cooperatives ensure that consumers receive safe
and high-quality dairy products. This focus on quality also enhances the reputation and
marketability of the cooperative's products.
4. Market Access and Diversification: For individual farmers, accessing markets and
expanding product lines can be challenging and costly. Milk cooperatives provide a
centralized platform for farmers to collectively market their products, reach a wider
consumer base, and explore new market opportunities. By pooling resources and sharing

2. PREPARED BY DR. SUSHIL NEUPANE (B.V.SC. AND A.H., IAAS, TU)
costs, cooperatives can invest in product diversification, innovation, branding, and market
research, making them more competitive in the industry.
5. Knowledge Sharing and Capacity Building: Cooperatives often promote knowledge
sharing and capacity building among their members. They provide training programs,
workshops, and technical assistance on various aspects of dairy farming, such as animal
health, feed management, and sustainable farming practices. This helps farmers improve
their skills, adopt modern techniques, and enhance productivity, ultimately benefiting both
the farmers and the industry as a whole.
6. Social and Environmental Sustainability: Milk cooperatives contribute to social and
environmental sustainability. They foster cooperation and solidarity among farmers,
creating a sense of community and mutual support. Additionally, many cooperatives
prioritize sustainable farming practices, including environmentally friendly waste
management, water conservation, and biodiversity preservation, which align with
consumers' increasing demand for sustainable and ethically produced dairy products.
7. Rural Development: By promoting collective action and providing economic opportunities,
cooperatives contribute to rural development by generating employment, improving
infrastructure, and supporting local businesses. This helps prevent rural migration,
strengthens rural economies, and preserves the cultural fabric of farming communities.
6.2 Purchasing methods of milk on the basis of weight, volume, fat, SNF, TS, two axis test
and premium
When purchasing milk, there are several methods used to determine the pricing based on different
factors such as weight, volume, fat content, SNF (Solid-Not-Fat) content, TS (Total Solids)
content, two-axis test, and premium. Let's explore these methods:
a. Weight: Milk can be purchased based on weight, where the buyer pays for the actual weight
of the milk. This method is commonly used for large-scale purchases or when milk is
transported in bulk tanks.
b. Volume: In some cases, milk is purchased based on its volume, typically measured in liters
or gallons. The price is determined by the quantity of milk delivered rather than its weight.
This method is often used for smaller-scale purchases or when milk is sold directly to
consumers.

3. PREPARED BY DR. SUSHIL NEUPANE (B.V.SC. AND A.H., IAAS, TU)
c. Fat Content: Milk contains varying amounts of fat, and the fat content plays a significant
role in determining its value. Buyers may establish different prices for milk based on
standardized fat content percentages. For example, milk with higher fat content may fetch
a higher price per unit.
d. SNF (Solid-Not-Fat) Content: SNF refers to the solids present in milk, excluding fat. It
includes proteins, lactose, minerals, and other components. The SNF content is an
important parameter for assessing milk quality and pricing. Higher SNF content is
generally associated with better quality and can result in a higher price per unit of milk.
e. TS (Total Solids) Content: Total Solids represents the combined content of fat and SNF in
milk. It is calculated by subtracting the moisture content from 100%. The TS content is
another factor used in pricing milk, as higher TS content indicates denser and more
concentrated milk.
f. Two-Axis Test: The two-axis test is a method used to evaluate the quality and composition
of milk. It involves measuring the fat content along one axis and the SNF content along the
other axis on a graph. The position of the plotted point indicates the quality of the milk,
and the pricing may be determined based on this evaluation.
g. Premium: In certain cases, milk producers may receive a premium for meeting specific
criteria or adhering to certain standards. This can include factors like organic certification,
sustainable farming practices, or breed-specific milk. The premium is an additional amount
paid to the producer above the standard price to incentivize and reward specific qualities
or practices.
6.3 Buying and collection of milk through milk producers and venders
The buying and collection of milk from milk producers (farmers) and vendors involve a series
of steps to ensure the smooth procurement of milk. Here's an overview of the typical process:
Milk Producers:
a. Milk Production: Dairy farmers are responsible for milk production on their farms. They
maintain a herd of dairy animals (cows, goats, etc.) and follow proper animal husbandry
practices to ensure good milk yield and quality.
b. Milk Harvesting: The farmers milk their animals using milking machines or by hand. They
ensure hygiene and cleanliness during the milking process to maintain milk quality.

4. PREPARED BY DR. SUSHIL NEUPANE (B.V.SC. AND A.H., IAAS, TU)
c. Milk Storage: After milking, the farmers store the milk in clean and sanitary containers
such as stainless steel cans or bulk tanks. Proper storage conditions, including temperature
control, are maintained to preserve milk freshness.
Milk Vendors (Cooperatives, Processors, or Buyers):
a. Collection Centers: Milk vendors typically establish collection centers at various locations,
either directly operated or through local cooperatives. These centers act as central points
where farmers can deliver their milk.
b. Milk Collection: Farmers transport the stored milk to the collection centers either by their
own means or through arranged transportation. At the centers, the milk is weighed, and
basic quality tests may be conducted, such as temperature check and visual inspection.
c. Quality Testing: Depending on the vendor's requirements, milk samples may be taken from
each delivery to assess parameters such as fat content, SNF content, and quality indicators.
These tests help determine the milk's value and ensure it meets the specified standards.
d. Pricing: The pricing of milk is usually based on factors discussed earlier, such as weight,
volume, fat content, SNF content, and overall quality. The vendor may have a
predetermined pricing structure or negotiate prices with the farmers based on market
conditions and quality parameters.
e. Documentation: Proper documentation and record-keeping are maintained at the collection
centers to track the quantity and quality of milk received from each farmer. This
information is crucial for inventory management, quality control, and payment processing.
f. Payment: Once the milk is collected and quality is assessed, the vendors process payments
to the farmers based on the agreed-upon pricing. The payment may be made immediately
or periodically, depending on the vendor's policy and payment terms.