India: Milk production to increase as consumption picks up

Published 2021년 11월 9일

Tridge summary

The Indian dairy industry is expected to grow by 9-11% in the current fiscal year, driven by a recovery in consumption and a normal monsoon. However, higher procurement prices and operating costs may impact profit margins. Domestic milk production is estimated to increase by 5-6% in FY2022, supporting the growth in liquid milk sales and value-added dairy products. The organized dairy segment is expected to grow faster than the unorganized segment, with the liquid milk segment growing at 6-7% in FY2022 and the value-added dairy products segment growing by 13-15%. However, private players may face additional working capital debt requirements due to high SMP inventory levels and soft prices.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The Indian dairy industry is expected to grow by 9-11% in the current fiscal year. However, higher procurement prices and operating costs are likely to impact profit margins.In its report on the Indian Dairy Sector, ratings agency Icra has said domestic milk production is estimated to increase by 5-6% in FY2022, supported by a normal monsoon and early onset of the flush season in some regions. “Post the moderate impact of pandemic, the industry has witnessed steady recovery in consumption across end-segments. This has been further aided by improving pace of vaccination, fall in fresh Covid-19 cases, revival in economic activities and demand from institutional and HoReCa segments, which too has recovered sharply,” says the report.Liquid milk sales continue to be supported by inelastic nature of demand while increasing consumption of value-added dairy products (VADP)s like ghee, butter, curd, cheese etc., support the overall dairy sales, the report states. “With stable milk ...

Source: Financialexpress