Dairy Sector Update: Spread Between Milk Procurement Prices, Selling Prices Remains High, Says ICICI Securities
A woman carries a pail of milk. (Photographer: Prashanth Vishwanathan/Bloomberg)

Dairy Sector Update: Spread Between Milk Procurement Prices, Selling Prices Remains High, Says ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Wholesale milk prices have remained flat month-on-month in December 2020. As dairy companies have not raised milk prices post February 2020, wholesale milk prices have remained flat from June-Dec 2020.

Milk procurement prices have continued to remain at lower levels as -

  1. demand from hotel-restaurant-cafe and value-added products is still lower,
  2. commencement of flush season and
  3. lower fodder prices and availability of green fodder.

Dairy companies have not raised prices post Feb-20 and we do not model them to raise prices till Q1 FY22. However, they have also not reduced prices as consumers still prefer branded packaged products.

Click on the attachment to read the full report:

ICICI Securities Dairy Sector Update.pdf

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