Haveri Milk Union (Havemul) in Karnataka is preparing to operationalise its long-awaited mega dairy near Arabagonda village in Byadgi taluk, marking a significant development for the region’s dairy processing infrastructure. Built at an estimated cost of ₹73 crore, the facility has entered its final stage, with machinery trials and inspections underway ahead of its formal inauguration.
The modern dairy is designed to strengthen milk collection, processing, packaging and the production of value-added dairy products. Havemul currently procures nearly one lakh litres of milk daily and aims to increase this volume to two lakh litres in the coming years by expanding its network of milk producers.
The project is expected to create stronger market opportunities for dairy farmers, improve processing capacity and support rural livelihoods across Haveri district.
Modern Dairy Infrastructure to Strengthen Milk Procurement
The mega dairy is already receiving milk from producers across Ranebennur, Haveri, Byadgi, Hangal, Hirekerur and Rattihalli taluks. Its procurement network provides an established foundation for expanding milk collection as the new facility becomes fully operational.
Havemul’s target of doubling daily procurement from approximately 100,000 litres to 200,000 litres will require continued engagement with dairy farmers, stronger collection infrastructure and reliable processing operations.
For small and medium-sized milk producers, an expanded cooperative network could provide more consistent access to organised markets. Reliable procurement arrangements are particularly important for rural households that depend on dairy farming as a supplementary source of income.
The facility’s modern processing systems are expected to support more efficient handling of incoming milk and improve the union’s ability to meet regional demand for fresh and processed dairy products.
Value-Added Dairy Products to Expand Revenue Opportunities
A major feature of the project is its focus on value addition beyond conventional milk sales. Once operational, the facility is expected to manufacture milk, curd, buttermilk, paneer, ghee, butter and khova, alongside traditional sweets such as peda and Mysore pak.
Production volumes will be determined by local market demand. Surplus products will be marketed through the Dharwad KMF Union, helping Havemul extend its distribution reach beyond its immediate procurement area.
Value-added processing can create additional commercial opportunities for dairy cooperatives by diversifying product offerings and serving different consumer preferences. Products such as paneer, ghee and butter also allow milk to be processed into formats with different storage, distribution and market requirements.
For Havemul, the ability to manufacture and distribute a broader range of products could strengthen its market position while creating opportunities to capture greater value from procured milk.
₹73 Crore Investment Supports Dairy Sector Development
The project was announced during the tenure of former Karnataka chief minister and current MP Basavaraj Bommai, with an initial government grant of ₹70 crore. The foundation stone was laid in March 2023, and ₹65 crore was initially released for construction.
In March 2026, a further ₹5 crore was released during the tenure of then chief minister Siddaramaiah. Havemul contributed another ₹3 crore from its own funds to complete the remaining work, according to union president Manjanagouda Patil.
The total estimated project cost stands at ₹73 crore, combining government assistance and the union’s contribution.
Havemul Managing Director Pradeep SM said the facility would create new market opportunities, encourage value addition and improve farmers’ incomes. Patil confirmed that construction work had been completed and machinery trials were underway.
The inauguration schedule had been delayed by the election code of conduct associated with the West Graduates’ Constituency. A date was expected to be finalised after discussions with the chief minister.
Benefits for Farmers and Rural Livelihoods
The facility is expected to strengthen dairy farming as a source of income for rural households across the district. A larger processing operation and expanded procurement network could help the union accommodate more milk producers while creating opportunities to improve the marketing of locally produced milk.
Women and small-scale farmers may particularly benefit from more accessible cooperative procurement arrangements, although the actual impact will depend on procurement policies, payment reliability and the union’s ability to expand its producer network.
Increasing milk procurement will also require attention to chilling facilities, transportation, quality testing and veterinary support to ensure that additional volumes meet processing standards.
Outlook for Karnataka’s Dairy Industry
Havemul’s mega dairy represents an important investment in Karnataka’s cooperative dairy infrastructure. Its ₹73 crore facility combines expanded processing capacity with plans for diversified dairy manufacturing and wider product distribution.
The target of increasing milk procurement to two lakh litres daily offers a clear direction for future growth. Achieving this objective will depend on attracting additional producers, maintaining consistent milk quality and developing sustainable demand for the union’s product portfolio.
As machinery trials approach completion and inauguration plans progress, the project offers the potential to strengthen organised milk marketing, increase value addition and support the long-term development of dairy farming in Haveri district.
