Hatsun's procures fresh milk directly from the farmers. To facilitate it in this process Hatsun has around 5,600 'Hatsun Milk Banks' (HMBs) covering over 9,500 villages. Everyday 3.2 lakh plus farmers pour their milk at these HMBs. At the HMBs every farmer's milk is tested for its quality. Based on the quality, per liter price of milk is determined with the help of a two way price chart. The two parameters tested for determining quality is Fat and SNF.
Based on the quality and the number of liters poured by the farmer, his or her total amount is calculated. This process is done for each and every farmer who pours milk at the HMB. Once all the tests are done, each farmer's data (quantity, Fat & SNF% along with the farmer's unique number) is entered in a scan-able data sheet. This sheet is sent to the Hatsun's computer center where it is scanned and based on the same the farmer is paid every week on a fixed day of the week. The entire farmer's data base is managed through a state-of-the-art computer software system. It would not be out of place to mention that Hatsun has been paying the farmers on time every week without any exception –rain or shine. Hatsun takes great pride in maintaining this track record for the last two decades. The entire dairy farming community in the milk shed where Hatsun operates is aware of this unique track record.
Hatsun operates more than 800 rural milk procurement routes. These routes have a regular route plan with the timing to pick up milk cans for each HMB/village in the morning and evening. All the farmers have to pour the milk before the milk truck reaches their HMB. Once all the farmers have poured their milk, the milk is collected in cans and loaded on to the trucks on the precise time fixed for picking the cans at the HMB. After collecting milk from all the allotted HMBs the milk procurement vehicle arrives at the Hatsun Milk Chilling Center (CC). The vehicle has to arrive at the milk chilling center at the fixed arrival time for the vehicle at the CC. At the CC the milk is tested again for more parameters than at the HMB. Once the milk is tested organoleptically it is weighed, a sample is taken for more detailed tests and pumped to the chilling unit. The samples are taken for detailed testing. Once all the vehicles arrive and all the milk transferred for chilling the samples are taken for testing. Once the tests are completed and the suitability of the entire CCs milk is confirmed to meet Hatsun's strict quality norms, the milk is loaded into a road milk tanker and sent to the dairy. At the dairy the milk is put through more tests before taking it up further processing.
In order to get adequate quantity of quality (as per the rigorous QA norms) milk, Hatsun undertakes a series of measures to help the farmers. Some of the measures taken are as follows: