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DAIRY

News Farmers in dry areas are selling more milk

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he prevailing drought-like situation in parts of the country has led to farmers selling more milk in the market. This is reflected from the 10-25 per cent rise in milk procurement that co-operatives and corporates have registered largely from the dryspell hit areas. The Gujarat Co-operative Milk Marketing Federation (GCMMF), the largest milk co-operative that owns the Amul brand, has registered an average increase of 16 per cent in daily milk procurement, said R.S. Sodhi, Managing Director. Large parts of Gujarat, where the GCMMF operates, have been hit by the dry spell this year. Farmers tend to sell more of milk, which becomes the only source of income when crops are hit by poor rains, Sodhi said. The average daily milk procurement by GCMMF stood at 10.30 million kg in 2011-12. “The surplus trend in milk output

that the country witnessed last year still continues,” said R.G. Chandramogan, Chairman and Managing Director of Hatsun Agro Product Ltd, a Chennaiheadquartered dairy products company. Hatsun, which also operates from parts of Karnataka, has registered a 23 per cent rise in milk procurement in July to over 2 million litres from 1.625 million litres in corresponding month last year, Chandramogan said. The increase in prices offered by the dairies last year to the farmers is aiding the procurement trend. However, in southern parts of Maharashtra milk production is estimated to be down by about a tenth on poor rains in the region where fodder and feed scarcity looms large. “Production is down by 5-10 per cent, but it is not that visible. However, our procurement has gone up by 10-11 per cent,” said D.V. Ghanekar, Managing Director of Kolhapur District Co-operative Milk Producers Union, which sells milk products under Gokul brand. “Our

procurement has gone up by 60,000-70,000 litres per day (LPD) to 6 lakh LPD,” he said. “The growth in milk output may largely remain same as that of last year, but the procurement goes up normally in the first year of drought, as it becomes the only source of income for farmers when crops fail,” said R.S. Khanna, dairy industry expert. He estimates the country’s overall milk production to sustain a growth of 3-4 per cent this year too. The Government is yet to officially announce milk production numbers for 2011-12, while the output stood at 122.8 million tonnes for 2010-11.

Parag Milk Foods to get investment from IDFC

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DFC Private Equity Fund III, managed and advised by the private equity group of IDFC Alternatives Ltd (previously known as IDFC Private Equity), has invested Rs 155 crore in Parag Milk Foods Pvt Ltd. Proceeds from this deal will be used to build capacities in various product lines, strengthen its procurement infrastructure and provide a part exit to existing investor, Motilal Oswal Private Equity, which has invested in the company in 2008. This is IDFC PE’s first investment

in the dairy sector and the second in rural infrastructure. According to Girish Nadkarni, Partner at IDFC Alternatives, Parag touches the lives of more than one lakh farmers. The Rs 880-crore Parag is one of the leading private dairy companies in the country and markets its products under the ‘Gowardhan’, ‘GO’ and ‘Pride of Cows’ brands. It has a market leading position in cheese and ghee segment among the pizza chains. The company processes close to 11 lakh litres of milk per day across its two plants in Manchar near

100AgriBusiness & Food Industry w October 2012

Pune and Palamner in Andhra Pradesh. Parag has the largest cheese plant in Asia with a capacity of 40 tonnes per day. IDFC Alternatives, which manages funds of $2.2 billion, is a wholly-owned subsidiary of IDFC Ltd and one of the largest infrastructure focused private and project equity investors in India. IDFC Private Equity, a part of IDFC Alternatives, manages funds of Rs 5,700 crore ($1.3 billion) across three funds. Over the last eight years, IDFC PE has made 34 investments and has had 18 liquidity events.

AGRI BUSINESS & FOOD INDUSTRY  

India's only monthly magazine having maximum presence in National & International Exhibitions. Regular topics cover the food processing sect...

AGRI BUSINESS & FOOD INDUSTRY  

India's only monthly magazine having maximum presence in National & International Exhibitions. Regular topics cover the food processing sect...

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