Tamil Nadu's Underused Feed Mills Raise Milk Costs

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Cooperative feed mills in Tamil Nadu are running well below their stated capacity, limiting access to subsidized cattle feed and mineral supplements. Dairy farmers are consequently paying commercial prices while receiving procurement rates below reported production costs.
Tamil Nadu's Underused Feed Mills Raise Milk Costs

Cooperative cattle-feed facilities in Tamil Nadu are operating at about 28% of their combined installed capacity. The three state-owned mills produce approximately 5,500 tonnes a month, compared with total infrastructure designed to handle 19,500 tonnes.

Output varies sharply among the facilities. The Pudukudi unit manufactures roughly 500 tonnes monthly despite a rated capacity of 9,000 tonnes. At Virudhunagar, monthly production is about 150 tonnes against a design capacity of 1,500 tonnes. The figures were reported amid shortages across regional milk-producing areas.

Mineral-mixture production is operating at an even lower level. Five regional plants together make between 42 and 45 tonnes per month, while their combined designed throughput is 1,800 tonnes. The Tiruchy facility recorded no output during recent operating cycles. Mineral mixtures supply dietary micronutrients used in cattle rations, and feed and mineral availability affects milk fat and solids-not-fat, or SNF, levels.

More than Rs120 crore from the NABARD Rural Infrastructure Development Fund had previously been allocated to construct the milling and supplement facilities. The plants are managed by private contractors, whose operating performance has limited the distribution of subsidized products to primary milk producers, according to industry sources.

Farmers without access to those supplies have been purchasing feed and supplements from commercial vendors. Prices for mineral supplements have risen by 30% in recent months, reaching between Rs125 and Rs250 per kilogram. Industry sources said regular access to cattle feed and mineral mixtures was necessary for cattle growth and milk production, particularly where farmers seek higher fat and SNF readings.

The reported input costs have widened the gap between farm expenses and cooperative payments. Milk production is estimated at Rs55-60 per litre, while cooperatives pay Rs38 per litre for cow milk and Rs47 per litre for buffalo milk. The shortfall in feed-plant output has therefore been reported alongside pressure on farmgate margins in southern India's cooperative dairy networks.


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