What’s Driving Milk Prices Higher? ICICI Securities Explains
A worker pours a bucket of milk into a storage can. (Photographer: Anindito Mukherjee/Bloomberg)

What’s Driving Milk Prices Higher? ICICI Securities Explains

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

Global skim milk powder (SMP) prices increased almost 20% in March 2021 versus November 2020.

We believe higher global SMP prices will result in higher exports of SMP and the milk procurement prices in India may also move upwards.

Reopening of the economy has led to higher demand for value added products. The demand from hotel-restaurant-cafe is also rising.

However, with rising Covid-19 cases, there is possibility of lockdown which may reduce milk demand with stable supply resulting in lower procurement prices.

Our channel checks suggest minor increase in milk procurement prices in December 2020-March 2021.

Click on the attachment to read the full report:

ICICI Securities Dairy Sector Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.