In an interview with CNBC-TV18, Sunil Reddy Dodla, the Managing Director of Dodla Dairy, shared valuable insights into the current state of the dairy industry and the company’s strategic outlook for the future.
He reassured consumers and stakeholders that milk prices are expected to remain stable for the next couple of quarters.
“Milk will remain stable for at least another couple of quarters,” he said.
This comes as good news for consumers who have been concerned about fluctuations in dairy prices impacting their household budgets. The stable pricing can be attributed to various factors, including the normalisation of milk production levels.
Dodla Dairy’s MD emphasised that the milk production levels have now returned to normal. This normalisation has come as a relief to the dairy industry, which was previously grappling with challenges posed by the pandemic and other external factors. The restoration of production levels ensures a steady supply of milk to meet consumer demand adequately.
Sunil Reddy Dodla expressed optimism about the growth of Dodla Dairy’s value-added product segment. He projected a mid-teens growth rate for these products, which will be primarily driven by a well-thought-out price increase.
“Mid-teens growth for FY24 will definitely be held because it is mostly driven by price increase that we have and our ice cream portion of the business is also doing a little better than last year. So compared to that, we should be able to maintain our value-added revenue growth in the mid-teens,” he said.
Discussing the challenges faced by the dairy industry, Sunil Reddy Dodla emphasised the need for caution regarding cattle feed prices.
“We only have to be careful about our cattle feed. The prices might go up because of emerging markets getting impacted with rain price,” he said.
As a significant component of dairy production, fluctuations in cattle feed prices can significantly impact operational costs.
To address the growing demand for dairy products and to bolster their production capabilities, Dodla Dairy is taking strategic steps. Sunil Reddy Dodla revealed that the company is investing in the expansion of its cattle feed plant. The new plant is anticipated to be five times larger than the current capacity, enhancing the company’s ability to meet increasing demand while ensuring a consistent supply of quality feed for their cattle.