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After US, Amul to start fresh milk sales in more countries

After announcing the sale of locally sourced ‘fresh milk’ in the United States (US), the Gujarat Cooperative Milk Marketing Federation (GCMMF) – which sells dairy products under ‘Amul’ brand – is aiming to launch similar business in a few more countries.

“Quite a few markets we are unable to reach directly with our products and so we are looking at different opportunities and conversions are going on,” Jayen Mehta, managing director, GCMMF, told FE. He said the company would make an announcement for selling fresh milk in a few other countries in the next couple of months.

Amul products paneer, curd, flavoured milk, ice creams, chocolates and others are exported to more than 50 countries in Asia, Gulf and African continents mostly catering to large Indian diaspora.

For the first time, GCMMF has tied up with the Michigan Milk Producers Association (MMPA), a 108-year-old cooperative, to sell ‘fresh milk’ in the east coast and midwest markets of the US under the Amul brand.

The initial supplies of Amul milk will be in New York, New Jersey, Chicago, Washington, Dallas and Texas among others. Gradually Amul aims at expanding its presence across all the major cities in the US, Mehta said.

The milk collection and processing will be done by MMPA, while GCMMF will carry out the marketing and branding of Amul fresh milk. Amul will launch four variants of milk in the US market soon which would cater to the Indian diaspora and Asian population.

 

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Amul products including cheese, butter, ghee, Ice cream, chocolates, gulab jamun, rosogolla, Shrikhand, Lassi and buttermilk are currently being exported into the US through distributors.

Mehta of Amul, largest FMCG brand in the country, said that while there has been growth in exports of dairy products, domestic growth in business is far more large.

According to an estimate exports accounts for around 2% of total sales turnover of the all products under the Amul brand name at Rs 72,000 crore ($ 9 billion) in FY23. “We are likely to cross Rs 80,000 crore or $ 10 billion turnover in the current fiscal with a healthy growth witnessed in the current fiscal,” Mehta said. According to Mehta, milk prices are unlikely to rise in coming months with setting in of summer months as supplies have been comfortable.

The GCMMF has 18 district unions with a membership of more than 3.6 million dairy farmers in more than 18,600 villages in Gujarat. The leading dairy cooperatives procure an average 35 million litres of milk per day. Currently, around 60-65% of milk procurement by Amul is carried out in Gujarat and it is ranked as the eight-largest dairy organisation globally.

Amul has 9,200 distributors and 720,000 retailers for its products including liquid milk at present.

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