GCMMF sees lower growth in milk procurement in 2009-10

Gujarat Co-operative Milk Marketing Federation (GCMMF), which owns and markets Amul brand of milk products in the country, expects lower growth in average milk procurement by its member unions during 2009-10. The Federation officials attribute erratic rainfall and costlier cattle feed for slowdown in growth of milk procurement.

In fact, one of the member unions is of the view that the milk procurement may decline in 2009-10 from last year's level.

After having witnessed impressive growth in daily milk procurement during 2007-08 and 2008-09, the federation estimates 5 per cent growth in average milk procurement by member unions at around 90 lakh kg per day this fiscal ending March.

It may be mentioned here that GCMMF member unions' milk procurement in 2008-09 had surged by robust 14.87 per cent averaging at 87.19 lakh kg a day in 2008-09 over the corresponding fiscal. Similarly, the financial year 2007-08 saw a rise of 12.9 per cent at 75.90 lakh kg per day.

"Milk procurement in many districts have dropped this fiscal affecting the growth of milk procurement. However, the procurement will not decline from last year's level of 87.19 lakh kg per day as the milk procurement in Saurashtra region has increased this year," a top official of GCMMF said on a condition of anonymity.

Erratic monsoon and higher prices of cattle feed have slowed down the growth in milk procurement by GCMMF member unions. Scanty rainfall resulted into deficient availability of fodder for milch animals affecting the milk production. "Apart from this, cattlefeed prices shot up by 30 per cent, while the prices paid to milk producers have increased only 15 per cent," added another official of GCMMF.

The cattle feed price have firmed up following rise in the cost of its raw material- deoiled cake. Costlier cattle feed have affected the returns of milk producers, which has ultimately taken its toll on milk procurement.

"There is a reduction in milk procurement by almost all the milk unions and this year we may see fall in procurement," said a top officer of one of the member unions while contradicting the view of lower growth rate.

Earlier, GCMMF had seen a lower growth of 4.5 per cent in the total milk procurement during 2006-07 at 67.25 lakh kgs per day in the wake of massive losses suffered by farmers due to floods in the state, specially in Surat district.