Tiruchi Aavin is witnessing a decline in milk procurement as an increasing number of dairy farmers shift their supplies to private dairies offering higher procurement prices. According to officials, the cooperative's average daily milk procurement has fallen by around 15,000 litres, from nearly 2 lakh litres per day to about 1.85 lakh litres, affecting the availability of milk for processing and value-added dairy products.
The procurement decline has been attributed to intense competition from private dairy companies, which are offering better prices and additional incentives to attract milk suppliers. Officials stated that efforts are underway to retain existing suppliers and strengthen procurement through cooperative societies, while encouraging more farmers to continue supplying milk to Aavin.
Industry observers note that the trend reflects the broader challenge facing cooperative dairies across Tamil Nadu, where rising input costs, increased competition for raw milk and changing market dynamics are putting pressure on milk procurement. The development highlights the growing need for competitive procurement strategies to ensure a stable milk supply while sustaining the cooperative dairy model in the state. (The Times of India)
Source: Dairynews7x7 30 July, 2026 Read full story here
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