MilkLane launches dairy procurement services to ensure safe, high-quality milk supply

MilkLane, a dairy brand under Swiss-Indian food and technology platform company Innoterra, has launched its Dairy Procurement Services to provide high-quality, aflatoxin- and antibiotic-safe milk to dairy companies, dairy startups, and other new entrants in the sector. Through this PaaS (Procurement as a Service) offering, MilkLane will procure raw chilled milk (RCM) from dairy farmers after stringent quality testing, ensuring that clients receive high-quality, consistent milk year-round. 

This end-to-end procurement solution, being launched in Karnataka, Andhra Pradesh, Tamil Nadu, and Kerala, not only guarantees superior milk standards but also relieves businesses from the complexities of managing procurement, allowing them to focus on their core operations while benefiting from streamlined sourcing.

MilkLane will provide this service on a flexible model where B2B customers would have multiple options based on their needs. MilkLane would handle all aspects of procurement at competitive prices, while B2B customers can choose to deploy their own capex or opt for rental equipment provided by MilkLane. With no need for an extensive on-ground procurement team, businesses can save costs, and the ownership of the procured milk fully resides with them. Additionally, MilkLane would charge only for the procurement-related overhead costs. The customers would also have the choice to operate on either a cost-plus or a fixed-price model, that would be reviewed periodically, to ensure transparency and efficiency at every step.

MilkLane would be driving the procurement services basis its extensive network of over 10,000 small farmers, digitally enabled infrastructure facilitated through more than 150 Bulk Milk Coolers (BMCs), and milk processing facility with a capacity of 2 lakh liters per day. These BMCs are strategically located and ensure milk is cooled within 45 minutes of milking. MilkLane’s quality assurance process with four levels of checks and over 40 tests conducted in central labs will provide the highest standards of safety and quality. Additionally, MilkLane would offer 100 percent end-to-end traceability and a fully digitized transparent pricing model aligned with market price movements.

Reflecting on the importance of stringent quality control in the dairy supply chain, Avinash Kasinathan, Head of India Business, Innoterra, said, "With the rising demand for consistent, high-quality, and safe milk in the dairy sector, the need for reliable sourcing has never been more critical. The industry has long grappled with challenges like inconsistent fat and SNF levels, antibiotic contamination, high microbial counts, and aflatoxin presence, which not only compromise product quality but also endanger consumer safety. At MilkLane, our new procurement service is a significant milestone in our journey to address these challenges head-on. By implementing rigorous quality control measures at every stage—from sourcing to final delivery—we ensure that our clients receive milk that meets the highest standards of safety and consistency. Our extensive farmer network, advanced technology, and stringent quality assurance processes allow us to eliminate the risks that have plagued the industry, making us the partner of choice for businesses across the industry."

To further enhance quality, MilkLane employs a quality-driven pricing model that prevents dilution and adulteration, has stringent acceptance standards for milk testing, and has advanced testing capabilities. The company also emphasizes the nutritional excellence of the cattle, risk mitigation through quality management processes, and farmer empowerment through training and extension services.