Futures black for milk farmers

MetroScoop

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posted on 12 years ago — updated on 1 second ago

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Although the decision to hike milk prices is postponed by a week, it is feared that the surge in fodder price will force small milk farmers to quit the field

Although the decision to hike milk prices is postponed by a week, milk farmers are of the view that the price hike is inevitable. In their opinion the profit margin of the milk farmers has shrinked since July, the major reason being the skyrocketing fodder prices.

Owing to the unavailability of raw materials and high transportation cost the fodder prices shot up to more than `200 in two months.

The price hike of milk in September 5 last year by `5 a litre was a major boost for the milk farmers. They were getting `4.20 per litre after the price rise. But when the fodder prices surged the scenario has changed upside down, said Madhu Antony, an award-winning milk farmer in Manjapara, near Angamaly.

“Owing to the high cost of fodder, small milk farmers will be wiped out from the field. In the open market the cost for one litre of milk is `30, but the farmers are getting `22 to `23 per litre for the milk. The cost of production of one litre is above `20 and is increasing. Considering these facts the milk price hike is unavoidable,” he said.

Madhu Antony added that along with the price hike the unavailability of fodder is causing worries for the milk farmers. If the government wants to retain the existing farmers in the field the price should be increased by at least `5 per litre, he said.

Milk farmers point out that apart from fodder price hike the price of other feeding materials also increased within the last two years. Two years ago a cow which produces 10 litres of milk was available at a rate of `25,000, now the price has increased to `40,000. The price of a clutch of straw has almost doubled within two months, earlier it was available at `3 per kilogram.

“We were giving beer waste for the cattle which was available at a rate of `4.50 per kilogram but because of the increase in diesel price it has increased to `5.45 per kilogram. The climate change also contributed for the dip in production. If the heat and cold increase, naturally the production decreases,” said Anandavally, a milk farmer based in Karukappilly, near Kolenchery.