Lactalis hikes milk procurement price by Re 1; co says move not to impact consumers

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February 11, 2021 5:25 PM

This hike in milk procurement price by Lactalis will not impact the end consumers of milk and milk products for now, the company added.

The average milk price in Maharashtra is around Rs 30 per litre, and Lactalis will now pay over Rs 30 for the quality of 3.5/8.5 SNF (solid-non-fat), the company said in a statement.The average milk price in Maharashtra is around Rs 30 per litre, and Lactalis will now pay over Rs 30 for the quality of 3.5/8.5 SNF (solid-non-fat), the company said in a statement.

Global dairy major Lactalis, which operates in the name of Sunfresh Agro Industries (owns brand Prabhat) in Maharashtra, on Thursday announced a hike in its milk procurement price by Re 1 per litre, with an immediate effect.

The average milk price in Maharashtra is around Rs 30 per litre, and Lactalis will now pay over Rs 30 for the quality of 3.5/8.5 SNF (solid-non-fat), the company said in a statement.

This hike in milk procurement price by Lactalis will not impact the end consumers of milk and milk products for now, the company added.

This move will benefit over 50,000 dairy farmers supplying milk to Lactalis in the Ahmednagar, Pune and Nashik regions.

The price hike has come as a relief to dairy farmers, who were reeling under pressure from the falling milk procurement prices during 2020 due to COVID-19-related disruptions and were expecting a fair increase.

Lactalis CEO Rajiv Mitra said, “Last year, unfortunately, dairy farmers suffered due to reduced demand for dairy products and ingredients, induced by the severe lockdown. Now, as the pandemic is slowly receding and the markets are opening up, we want to pass on the benefit to the farmers.”

With various business segments such as restaurants, airlines and institutional buyers resuming operations post unlocking, there has been an increasing demand for milk ingredients and derivatives.

As Maharashtra being a major supplier of milk ingredients and derivatives to the country, the requirements and prices of bulk milk powders and cheese have increased.

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