Aavin faces milk shortage as El Nino, better private prices lure farmers

The Tamil Nadu Cooperative Milk Producers Federation Limited, which markets milk under the Aavin brand, is grappling with a significant drop in milk procurement. Official data shows that the federation, which sources milk from district-level cooperative unions, has seen its daily procurement fall from an average of 38 lakh litres to 28 lakh litres over the past few months.

Procurement typically peaks during December and January, but this year it began declining sharply. According to official sources, daily procurement dropped to 32 lakh litres in February and further to 28 lakh litres by the time summer set in. The shortage has forced the federation to curtail supplies to agents, particularly in Chennai. The city requires around 16 lakh litres of milk daily, but Aavin is currently able to supply only 14 lakh litres.

The Tiruchi District Cooperative Milk Producers Union, which supplies milk to Chennai, has also witnessed a decline. Earlier, the union sent more than 3 lakh litres of milk daily to the city. That figure has now fallen to between 2.5 and 2.7 lakh litres. A portion of this supply comes from the newly formed union covering Perambalur and Ariyalur districts, which contributes about 2.5 lakh litres.

An officer from Aavin said that the daily milk procurement has become a major concern. “We struggle to procure milk from farmers. It becomes a challenge for us. The prevailing dry weather and hot condition is the main reason. Many farmers have switched to private dairies as they offer better prices,” the officer told The Hindu.

The price differential is a key factor. While Aavin pays farmers ₹38 per litre for high-quality milk, private players are offering ₹43 per litre. Additionally, private dairies often accept milk without strictly following quality standards, making them a more attractive option for farmers. This has led to a growing preference for private dairies over cooperative societies.

The situation is unlikely to improve soon, as waterbodies in Tiruchi, Ariyalur and Perambalur districts have remained dry for more than five months since March. Farmers are finding it difficult to water their milch cows. The scorching heat and drought, linked to the El Nino effect, have also taken a toll on cattle health, further reducing milk yields.

Aavin officials are exploring ways to stabilize procurement, but the combination of lower prices and adverse climate conditions poses a formidable challenge. The federation hopes that the onset of the northeast monsoon will bring relief, but until then, consumers may continue to face a tighter supply of Aavin milk.