From Farm to Factory: Inside Krushi Foods' Integrated Sourcing Model

The 50 km Procurement Radius

Krushi Foods' procurement strategy is built around a 50 km radius from our Sinnar facility — a zone that encompasses a dense dairy farming belt across Nashik, Sinnar, and adjacent talukas. Within this radius, approximately 20 lakh litres of raw milk are produced daily across thousands of small and medium dairy farms. Our target is to build procurement relationships that give us first-access to the volume we need — currently targeting 4 lakh LPD — from within this zone.

Collection Infrastructure

Raw milk quality begins at the point of collection, not at the factory gate. We invest in village-level chilling infrastructure — bulk milk coolers maintained at 4°C or below — that receive milk from local farmers and chilling centre operators. Our field team conducts routine quality checks at collection points using portable testing equipment for fat, SNF, adulteration, and antibiotic residues. Milk that fails quality checks is rejected at source — not at the factory.

Quality-Based Payment to Farmers

Our procurement pricing model rewards quality. Farmers are paid based on actual fat and SNF content measured at collection — incentivising better cattle nutrition and hygiene. This quality-based payment system aligns farmer incentives with our quality requirements and builds long-term loyalty. Farmers who consistently deliver high-quality milk receive preferential pricing and early payment terms.

Traceability System

Every tanker of raw milk entering our facility is tagged with the collection source, date, time, quality test results, and transport vehicle details. This traceability chain is maintained through processing — linking every batch of finished product back to the collection sources that contributed to it. In the event of a quality non-conformance in finished product, we can trace the issue to specific collection sources within hours.

Supporting Farmers Year-Round

Beyond procurement, we provide farmers with veterinary consultation access, cattle nutrition guidance, and information on government schemes for dairy development. These support activities strengthen our farmer relationships and improve raw milk quality over time — creating a virtuous cycle that benefits both farmers and our manufacturing operation.