Bhubaneswar, Jan. 19: State-run Odisha State Co-operative Milk Producers' Federation (Omfed) is set to enter the bakery market.

It has tied up with the Centurian Urban Micro Business Centre for the purpose and has already begun baking bread on a pilot basis.

Omfed managing director Bishnupada Sethi said: "After tasting success in producing milk products, we have decided to turn our attention to bakery items. We are selling breads at some of the Omfed outlets at the moment.We have launched this project on a pilot basis and will later expand it."

Sources said that Omfed, which deals with milk, horticulture products, Kandhamal's organic products and cattle feed, will formally launch its bakery project on January 26.

Omfed project head Basant Mishra said: "We are selling four types of bread under the Omfed brand. We have an ambitious plan. Once we launch it in a full-fledged manner, we hope to sell around 20,000 pieces of bread a day in Bhubaneswar alone. Later, we will move to other cities."

When asked about the revenue sharing arrangement between the Omfed and Centurian Urban Micro Business Centre, Mishra said: "This is a business secret. We cannot reveal it at this moment. At present, a standard packet of Omfed bread is being sold at Rs 20."

He also revealed their plan of producing different types of cakes and biscuits in future.

Last year, Omfed had launched its premium quality milk that costs Rs 19 for half a litre. It is priced Rs 2 higher than the regular milk it sells. This milk contains 3.5 per cent fat and nine per cent solid non-fat (SNF).

Due to high content of SNF in comparison to toned milk, the premium milk has received good response from the customers.