"Enhancing Financial Efficiency through Cost Management Techniques in Karnataka Milk Unions"
Dr. H H Ramesha1, Mr. Naveen Kumar B2, Ms. Seema Samreen M N3
1Associate Professor & Research Supervisor, Department of Management Studies, Visvesvaraya Technological University-Belagavi, Centre for Post-Graduation Studies, Muddenahalli, Chikkaballapur, India, drhhramesh@gmail.com, drhhramesh@vtu.ac.in
https://orcid.org/0000-0002-6515-6116
2Research Scholar, Department of Management Studies, Visvesvaraya Technological University-Belagavi, Centre for Post-Graduation Studies, Muddenahalli, Chikkaballapur, India, naveenkumar.b.mba@gmail.com , https://orcid.org/0009-0007-3507-9635
3Student, Department of Management Studies (MBA), Centre for Post Graduate Studies, Muddenahalli, Chikkaballapur, Visvesvaraya Technological University, Belagavi, Karnataka State, India. seemasamreen456@gmail.com
Abstract
This study examines the impact of cost management techniques on the financial efficiency of Karnataka’s milk unions, a critical segment of India’s dairy sector. Through a descriptive and analytical approach, the research evaluates secondary data from ten prominent milk unions, focusing on cost structures, operational efficiency, and profitability trends. Findings reveal that procurement costs dominate operational expenses (54–63%), while processing efficiency and inventory turnover significantly influence financial performance. Unions adopting structured cost management strategies such as activity-based costing, lean management, and digitalization demonstrate superior profitability (7.8–11% margins). Key challenges include fluctuating input costs, inefficiencies in supply chain management, and resistance to technological adoption. The study proposes actionable solutions, including procurement optimization, process automation, and workforce training, to enhance financial sustainability. The insights contribute to managerial decision-making, cooperative sector reforms, and future research on cost optimization in dairy enterprises.
Keywords: Cost Management, Financial Efficiency, Dairy Cooperatives, Operational Optimization, Profitability Enhancement.
