Aavin Milk Procurement Declines Amid Rising Heat and Incentive Delays
Source: dairynews.today
Aavin, a major dairy cooperative in Tamil Nadu, faces a drop in milk procurement due to rising temperatures, price competition, and delayed incentives.
In Tamil Nadu, the renowned dairy cooperative Aavin is experiencing a significant decline in its milk procurement, with shortages reaching up to 4-5 lakh litres daily.
This drop occurs prior to the peak summer months of April and May, exacerbating concerns among producers and suppliers. Heat stress on cattle, compounded by private firms increasing procurement prices, contributes to the declining supply. It's worth noting that crossbreed and exotic cattle, which form a substantial part of milk production, are less heat tolerant, thereby affecting yield. Moreover, a delay in disbursing Rs 140 crore worth of incentives from July to October 2024 is prompting some farmers to shift to private dairies despite their higher selling prices compared to Aavin. Presently, Aavin pays Rs 38 per litre for cow milk, including a Rs 3 incentive, whereas private brands offer Rs 40 per litre.
Despite this, Aavin has invited tenders to purchase 500 MT of butter for Rs 24 crore to sustain milk production. Concerns grow as industry insiders reveal that further delays in incentive payments for November 2024 to February 2025 are expected. Aavin continues to procure from approximately 3.85 lakh producers and operates through 9,189 cooperative societies across Tamil Nadu, though several district unions report significant procurement drops.
This drop occurs prior to the peak summer months of April and May, exacerbating concerns among producers and suppliers. Heat stress on cattle, compounded by private firms increasing procurement prices, contributes to the declining supply. It's worth noting that crossbreed and exotic cattle, which form a substantial part of milk production, are less heat tolerant, thereby affecting yield. Moreover, a delay in disbursing Rs 140 crore worth of incentives from July to October 2024 is prompting some farmers to shift to private dairies despite their higher selling prices compared to Aavin. Presently, Aavin pays Rs 38 per litre for cow milk, including a Rs 3 incentive, whereas private brands offer Rs 40 per litre.
Despite this, Aavin has invited tenders to purchase 500 MT of butter for Rs 24 crore to sustain milk production. Concerns grow as industry insiders reveal that further delays in incentive payments for November 2024 to February 2025 are expected. Aavin continues to procure from approximately 3.85 lakh producers and operates through 9,189 cooperative societies across Tamil Nadu, though several district unions report significant procurement drops.
