KMF has 13 Milk Unions throughout the State which procure milk from Primary Dairy Cooperative Societies(DCS) and distribute milk to the consumers in various Towns/Cities/Rural markets in Karnataka.
 
The first ever World Bank funded Dairy Development Program in the country started in Karnataka with the organisation of Village Level Dairy Co-operatives in 1974. The AMUL pattern of dairy co-operatives started functioning in Karnataka from 1974-75 with the financial assistance from World Bank, Operation Flood II & III. The dairy co-operatives were established under the ANAND pattern in a three tier structure with the Village Level Dairy Co-operatives forming the base level, the District Level Milk Unions at the middle level to take care of the procurement, processing and marketing of milk and the Karnataka Milk Federation as the Apex Body to co-ordinate the growth of the sector at the State level. 

Coordination of activities among the Unions and developing market for Milk and Milk products is the responsibility of KMF. Marketing Milk in the respective jurisdiction is organized by the respective Milk Unions. Surplus/deficit of liquid milk among the member Milk Unions is monitored by the Federation. While the marketing of all the Milk Products is organized by KMF, both within and outside the State, all the Milk and Milk products are sold under a common brand name NANDINI.

The growth over the years and activities undertaken by KMF is summarised briefly hereunder:

The World Bank, in its study on the effect of Co-operative dairying in Karnataka, has pointed out that : 

	The villages with Dairy Co-operative Societies are much better off than those without.
	The families with dairy cattle are economically better than those without dairy cattle.
	Women who had no control on the household income have better control in terms of Milk Money
	A single commodity “MILK” has acted as a catalyst in the change in the Socio-Economic impact of the rural economy.
	There is a positive impact on those at the lower end of the economic ladder both in terms of landholding and caste.

After the closure of OF-III project.  Government of Karnataka and NDDB signed an MOU during February 2000, for further strengthening the Dairy Development Activities in Karnataka with an outlay of Rs.250 Crores.  Consequent to the announcement of new lending terms and conditions by NDDB through an evolution of an action plan - Perspective 2010 to enable the dairy cooperatives to face the challenges of the increased demand for milk and milk products by focusing efforts in the four major thrust areas of Strengthening the Cooperatives.  Enhancing Productivity, Managing Quality and building a National Information Network, plans are under implementation.  The 4 Milk Unions viz., Dharwad, Tumkur, Bijapur and Gulbarga that were having accumulated losses were included for rehabilitation programme under the Centrally Sponsored Scheme "Assistance to Cooperatives" which is also under implementation. 

FUTURE VISION  :

To consolidate the gains of Dairying achieved in the state of Karnataka and with a view of to efficiently chill, process and market ever developing and increasing milk procurement with an utmost emphasis on the Quality and in the process conserve the socio-economic interests of rural milk producers, the Govt. of Karnataka through KMF has proposed to undertake several projects with financial and technical support of NDDB for which an MOU was signed between Govt. of Karnataka and NDDB on 10th Nov. 2004. 

KMF has the following Units functioning directly under its control:

.	Mother Dairy, Yelahanka,Bangalore.  Milk Product Plant, Channarayapatna.
	Nandini Milk Products, KMF Complex, Bangalore.
	Cattle Feed Plants at Rajanukunte/Gubbi/Dharwad/Hassan
	Nandini Sperm Station (formerly known as Bull Breeding Farm & Frozen Semen Bank) at Hessaraghatta
	Pouch Film Plant at Munnekolalu, Marathhalli
	Central Training Institute,Bangalore & Traning Institutes at Mysore/Dharwad
	Sales Depots at B'lore,M'lore,Hubli,Gulbarga,Tirupathi & Kannur