ICICI Securities: Dairy Sector Update - Lower Milk Procurement Prices; Rising Fodder Prices 
A milk can hangs from a hook at a buffalo dairy. (Photographer: Prashanth Vishwanathan/Bloomberg)

ICICI Securities: Dairy Sector Update - Lower Milk Procurement Prices; Rising Fodder Prices 

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 risen in November 2020 YoY (flattish since June 2020) in-spite of lower milk procurement prices.

Key reasons for higher wholesale prices -

1. supply chain disruption and 2. price hikes of 5% in Februrary 2020 by dairy companies.

Milk procurement prices have continued to remain at lower levels as the demand from hotel restaurant cafe, value added products is still lower and commencement of flush season.

However, we believe there is risk of higher fodder prices with rising inflationary pressure.

Dairy companies have not raised prices post Feb-20 and we model them to raise prices post Q1 FY22.

Click on the attachment to read the full report:

ICICI Securities Dairy Sector Update_Dec20.pdf


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