Indian farmers strike, UK shoppers trade down, and US exports strengthen

Published Mar 24, 2023

Tridge summary

Milk prices are causing unrest in India, where dairy farmers have gone on an ‘indefinite strike’; high inflation means less organic milk sales in Britain, and US dairy exports returned a strong performance in January.

Original content

Some Tamil Nadu-based dairy farmers have threatened to withdraw fresh milk supply if they cannot reach an agreement with the state government over the procurement milk price. The farmers, who supply the Tamil Nadu Cooperative Milk Producers Federation (Aavin), India’s fourth largest milk co-op, demand a raise of Rs7 ($0.085) per liter. The co-op currently pays Rs35 ($0.42) for a liter of cow’s milk and Rs44 ($0.53) for a liter of buffalo milk, and farmers say they are getting better prices from the private sector, where firms pay Rs42 for cow milk and Rs46 per liter of buffalo milk. Tamil Nadu officials deny that the protests have caused milk shortage in the South Indian state. British consumers are choosing cheaper brands of fresh milk to cope with inflationary pressures. According to research commissioned by AHDB, only 27% of UK consumers have chosen to reduce dairy consumption for cost reasons. But there’s evidence that shoppers are trading down - data from Kantar reveals a ...
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