India: Robust demand is expected to boost dairy industry revenue

Cow Milk

Dairy

India

Published Aug 21, 2023

Tridge summary

India's organized dairy industry is expected to experience 14-16% revenue growth this fiscal year due to strong demand for value-added products and consistent milk consumption. The improvement in raw milk supply will lead to fewer price increases and a recovery in profitability for dairy processors. Credit profiles of organized dairies will remain strong, and there will be a continued increase in the share of value-added products in revenue.

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Original content

To continue reading the article, log in with your account or sign up for MilkPoint. Get access to exclusive content! Strong demand for value-added products and steady milk consumption will lead to 14-16% revenue growth for India's organized dairy industry this fiscal year. With the improvement of raw milk supply, there will be less price increases and profitability will recover by 20 to 50 basis points, said the Crisil agency. In the last fiscal year, disruptions to the supply of raw milk led to several increases in retail milk prices, increasing revenue by 19% but impacting profitability. “The profitability of many dairy processors has been declining over the last couple of years and this means that dairy processors are not able to fully pass on the cost increase they have faced to the final retail buyers. As a result, we have seen a significant increase in milk prices," said Crisil director Pushan Sharma. With healthy ...

Source: Milkpoint