Organized dairy industry’s revenue to grow by 14-16 percent in current financial year: Report
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Mumbai: Strong demand for value-added products and stable consumption of milk will lead to a 14-16 per cent growth in revenue for the organized dairy industry in FY 2023-24. This information has been given in a report on Thursday. Crisil Ratings said in the report that with the improvement in supply of raw milk, the increase in prices will remain low and profitability will improve by 0.2 to 0.5 percent.
Mohit Makhija, Senior Director, Crisil Ratings, said, “We believe the strong revenue growth seen in VAP (value added products) over the last few years will continue going forward. The segment should grow by 18-20 per cent in this financial year and as a result the share of Value Added Products (VAP) in total revenue may increase to 40 per cent from 35 per cent in the last four financial years.
The share of VAP will continue to rise given that demand from both retail and institutional segments remains strong and on the other hand milk revenue will grow by 8-10 per cent in the current financial year due to steady demand, he added. Further, the report said that disruption in the supply of raw milk in the last financial year led to multiple hikes in retail milk prices, which boosted revenue by 19 per cent, but impacted the profitability of the organized dairy sector.
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