Full Cream Milk Price Surges to Rs 70/L in Goa, India

The price of full cream milk in Goa, India, has soared to an unprecedented Rs 70 per liter, reflecting significant inflationary pressures. This price hike at Goa Dairy has been primarily driven by increased input costs, including cattle feed and fodder, which have considerably affected farm profitability.

Analysts have noted that additional expenses in transportation, packaging, and general operational overheads have further exacerbated the situation, forcing dairy cooperatives to raise prices to maintain financial stability. This has created a strain on the local milk supply chain, with the cooperative aiming to protect processing margins and ensure the sustainability of dairy farmers.

The impact of this price increase is significant, as it may lead to changes in consumer purchasing habits, potentially shifting demand towards alternative products. For the global dairy industry, this situation underscores the vulnerability of supply chains to rising commodity prices, such as feed grains and energy, which can quickly lead to consumer price inflation even in localized markets.

This development highlights the necessity for strategic planning and risk management among stakeholders within the milk supply sector to stabilize pricing mechanisms and prevent potential demand destruction.