Hatsun Agro plans to build 6,000 dairy farms in Odisha

Hatsun Agro’s proposed programme in Odisha will use a financing structure that combines targeted public capital subsidies and formal banking loans. The arrangement is intended to address the initial investment required by smallholder dairy producers, who have historically faced difficulties obtaining affordable, long-term finance.

Under the framework, commercial lenders will be linked with state livestock-development schemes. The resulting financing will be available for investments in higher-yielding dairy cattle, improved farm buildings and automated equipment used in dairy production. The programme covers the capital requirements associated with both livestock and on-farm infrastructure.

Technology and farm-management support form another part of the initiative. Participating producers will receive extension assistance on balanced feed rations, silage preparation, veterinary procedures and machine-based milking systems. The programme also places emphasis on animal health, scientific nutrition and more precise management of dairy herds.

Its stated operating standards include improved hygiene and more efficient nutrition. These measures are intended to increase milk production per cow, reduce the marginal cost of production and raise the quality of raw milk to standards suitable for industrial food processing. The programme links those standards to the use of cleaner milking systems and more structured herd management.

The procurement system will provide farmers with a regular commercial outlet for their daily milk production. In fragmented regional markets, smallholders can face changing prices from local buyers and the risk of spoilage after production rises during seasonal periods of high milk supply. The planned system is designed to connect primary producers with a longer-term buyer.

Hatsun Agro’s processing operations will be supported by bulk-milk chillers, automated testing centres and scheduled payments. These facilities will allow incoming milk to be cooled, assessed and collected through an organised process. The programme is intended to create a traceable supply of milk with a high solids content for regional manufacturing of value-added dairy products.