Corona pushing dairy sector to the brink?

Dealing a jolt to dairy sector, milk consumption in the state during the lockdown period has dropped by 7-8 lakh litres per day (LLPD). All the major brands such as Vijaya, heritage and Jersey have been hit.

Before lockdown, the per day consumption for Telangana State was 68 LLPD, but now it is around 61 LLPD. Out of the 7-8 lakh litres, Greater Hyderabad alone accounts for 4.5 LLPD drop.

Small-time agents and those who sell loose milk have gone out of business and they used to supply 3 lakh litres a day to sweet shops, restaurants, Irani hotels and caterers.

Domestic consumption, though, has not been affected (see interview) and people by and large have no problem in procuring milk. March and April is a time when the sales of curd, lassi, buttermilk and ice-cream peak.

The most affected are small players such as Vallabha Milk Products Pvt Ltd which has a sizable share in the curd segment.

In an interview to TP Venu, Telangana State Dairy Development Cooperative Federation (TSDDCF) Managing Director, G Srinivas Rao explains the measures taken to ensure that households do not suffer deprivation of milk supply during this crucial period when the fight against the Covid-19 has to be waged from indoors.

Excerpts:

People have not faced problem in procuring milk. How did TSDDCF manage to supply milk?

During the first two days of lockdown, we had a few hiccups as delivery boys were apprehensive but everything fell into place soon. The supply chain is strong and intact in the state and we should give credit to all the stakeholders.

The coordination with the police department and other line departments is good. Unlike in other states such as Karnataka and Maharashtra, an organised supply chain is in place. Sending vans half an hour earlier than the usual time has paid dividends.

The supply of milk to the end points is completed by 7-8 am. Vijaya has stalls in Rythu Bazaars and the staff ensures supply of milk at the doorstep of consumers in containment zones.

How are dairy products doing, especially flavoured milk, butter milk and ghee?

Milk products constitute 20% of the product portfolio for all the major players. March and April are months when the sales of butter milk, lassi, curd shoot up.

There is a drop of 3 lakh litres in Greater Hyderabad due to closure of hotels, catering agencies, IT industry and hotels.

Gated communities are not allowing delivery boys. How are you reaching out to this segment?

We are aggressively pushing tetra packs available in supermarkets. The shelf life is 90 days and there is no need for refrigeration. This segment does not mind paying extra. Every day the sale is 5,000 litres.

Vijaya butter is strong in Delhi and Vijaya ghee in Mumbai. Has the lockdown hit sales?

We have been able to regain foothold in the Mumbai market but are struggling at the moment with the Delhi market, but are hopeful.

These two markets put together is a Rs 100 crore market annually. We are in touch with the South Central Railway for logistics.

How are cooperative dairies faring during lockdown?

The silver lining is small-time agents have closed shop and the milk procurement by cooperative dairies has gone up.

The Nalgonda-RR Milk Union Ltd, Mulkanoor Milk Union and Karimnagar Cooperative Dairies have registered increased procurement and farmers too now realise the benefit.