In Shivamogga Town, Govt milk scheme started on 21st may 1971 under the department of Animal Husbandry. With an initial investment of Rs.24.17 lakhs, the said Dairy Unit having facilities to process and bottle 10,000 liters per day. The said facility was handed over to KMF in the year 1985 and Shivamogga Co-op Milk Union in the year 1991 as per Govt Orders from time to time. Shivamogga Co-operative Milk Union Limited is located at survey No. 72(118), Nidige Panchayat at Machenahalli, having sprawling area of 25.35 acres of land. It manufactures 8 dairy products and markets other products of KMF in its jurisdiction. Shimul is growing herbal medicinal plants in Shivamogga Dairy premises.