Apex milk marketing cooperative Milma is considering importing raw materials in the wake of an unprecedented rise in the price of cattle feed considerably unsettling the union’s plans for milk procurement during the Onam season.
A meeting of the union’s regional heads in Kasaragod on Saturday discussed the issue of cattle feed price rise and the way small dairy farmers were abandoning business in considerable numbers, said P.A. Balan, chairman of the union.
He said that cattle feed price had gone up to ₹1,175 per 50-kg bag (Milma brand) while some other brands cost higher (starting ₹1,380).
Farmers had expressed their inability to continue with dairying in the midst of rising cost and lack of availability of green fodder following another bout of heavy rains, said Mr. Balan.
Milma sources said that the brand catered to about 15% of the cattle feed requirement in the State producing about 600 tonnes per day.
The milk union had two plants — Malampuzha and Pattanakkad. The plants together accounted for the production of 600 tonnes. The Malampuzha plant capacity was being expanded and would be functional within two months, Mr. Balan said.
He said that importing raw materials was expected to bring down the price and would be a boost to dairying if the plans worked out.
The milk union also planned to rope in other feed producers to facilitate bulk import of the raw materials.
Milk price
Meanwhile, the milk union leaders will meet with State authorities on September 6 to discuss a possible hike in milk prices in the wake of a fall in procurement levels before the Onam season.
The peak Onam demand is expected to go up to about 4.5 lakh litres per day in the Ernakulam region comprising the districts of Ernakulam, Thrissur, Idukki and Kottayam. The shortage is already considerable given the weather conditions, Milma sources said.
The situation has been compounded with milk price going up in Tamil Nadu with a hike in ₹six per litre in the State.
Milma is in talks with milk producers’ union in Karnataka to bring milk from the State for the Onam season.
The price of milk in Karnataka was around ₹34 per litre. Added to this would be the transport cost of around ₹2.50 per litre, Mr. Balan added.
