Vijaya Dairy achieves 7% growth

Vijaya Dairy achieves 7% growth
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Highlights

In spite of all odds in milk procurement and competition from rivals, the Krishna District Milk Producers Mutually Aided Cooperative Union, the producer and supplier of Vijaya brand milk and milk products, has achieved seven per cent growth in provisional profit.

Vijayawada: In spite of all odds in milk procurement and competition from rivals, the Krishna District Milk Producers Mutually Aided Cooperative Union, the producer and supplier of Vijaya brand milk and milk products, has achieved seven per cent growth in provisional profit.

While the turnover during 2015-16 was Rs 569 crore, it improved to Rs 608 crore during 2016-17.As on Saturday, the dairy liquid milk sales account for 2.65 lakh litres per day as against 2.5 lakh litres during same period previous year. Though the improved sales give a positive impression on the procurement, practical realities have been haunting the milk factory.

Highlights:

  • Vendors are not interested in selling their milk to the market leader.
  • As a result, the milk factory is purchasing skimmed milk from
  • The dairy is purchasing milk from Bengaluru, Nellore and Ongole.

The factory could manage only 1.15 lakh litres of milk from its chilling centres and other own sources. The union has milk chilling centres at Pamarru, Gudlavalleru, Chillakallu, Hanuman Junction and Tiruvuru which supplied 43,044 litres of milk on Saturday as against 54,048 litres previous year.

The bulk milk chilling units at 20 places provided 54,715 litres against 51,256 litres previous year. The Direct Can Reception contributed just 17,772 litres compared to 21,219 litres last year. This is a considerable factor as many vendors are not interested in selling their milk to the market leader but to others. As a result, the milk factory is purchasing skimmed milk and liquid milk from private firms located at different places in the state.

According to milk factory managing director T Babu Rao, the dairy is purchasing milk from Bengaluru, Nellore, Ongole and other places wherever availability of milk was there.Speaking to The Hans India, he said that the dairy’s priority was to ensure wellbeing of milk suppliers, especially farmers who own a few cattle.

He informed that the dairy recently increased purchasing price by Rs 2-a-litre milk with 10 per cent fat. He claimed that the dairy was not bothered about the entry of other dairies by opening their stalls in Krishna district. “We are ahead of other dairies in Krishna district. Even in entire state, we are the market leaders,” he claimed.

When asked on adverse conditions prevailing against the dairy, he commented that the government should extend financial support. The neighbouring Karnataka government is providing Rs 4 incentive per litre, he reminded.

By Noor Shaik

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