Modest Summer Dampens Dairy Product Sales Growth
Source: dairynews.today
The unexpected cooler summer and early rains have negatively impacted the sales of dairy products like curds, buttermilk, and ice creams, prompting dairy firms like Mother Dairy and Heritage Foods to adjust their growth projections. However, higher rainfall may benefit milk production due to improved fodder supply.
A cooler than usual summer has led to a decline in sales of value-added dairy products such as curds, buttermilk, and ice creams. Major players in the dairy sector, like Mother Dairy and Heritage Foods, are revising their growth expectations due to these weather conditions. Manish Bandlish, MD of Mother Dairy, stated, "Our projected growth for summer-centric products has come down by 10% from what we had anticipated." Despite the initial robust start for summer-centric categories, unexpected weather changes in April and May have hindered momentum.
Nevertheless, above-normal rainfall is expected to improve milk production through enhanced fodder supplies. This year's revenue for Mother Dairy was projected to increase by 13% to Rs 17,000 crore from Rs 15,000 crore in 2023-24. Srideep N Kesavan, CEO of Heritage Foods, noted that although the early monsoon affected sales, the condition benefits milk productivity due to better water availability. Heritage Foods reported a turnover of Rs 4135 crore in FY25, showing the sector's resilience.
Nevertheless, above-normal rainfall is expected to improve milk production through enhanced fodder supplies. This year's revenue for Mother Dairy was projected to increase by 13% to Rs 17,000 crore from Rs 15,000 crore in 2023-24. Srideep N Kesavan, CEO of Heritage Foods, noted that although the early monsoon affected sales, the condition benefits milk productivity due to better water availability. Heritage Foods reported a turnover of Rs 4135 crore in FY25, showing the sector's resilience.
