Impact of COVID-19 & Feed ingredient prices on dairy economic
Demand-supply gap impacted milk prices significantly as the liquid milk consumption in market goes down due to lock down and movement of people and workers as average 30 to 35 % milk is consumed in such sector. In summer season, the other major source of milk consumption is through butter milk and lassi which has been drastically gone down
As compare to last year, milk powder market has gone up well in pandemic lockdown. If you look at last two month prices for whole milk powder, they are much higher across the globe. This is good opportunity in fact to control milk prices, so farmer can at least get his production cost and also avoid the losses. Hopefully, will remain the good in future also.
This COVID-19 pandemic situation, movement restriction, drop in milk procurement prices and drastic increases in feed ingredient prices impacted milk producer economics and forces them to take some crucial decision. Many farmers are selling their animals at low cost to avoid further losses. Many farmers stop feeding animals as per their requirement even though, they are producing well.
The major complications of under feeding animals are more dangerous than losses in milk prices. It will deteriorate overall health of the producing animals and chances of losing overall productivity of that animal on long-term basis. Increase in open period has consume maximum cost, infertility cost further; inadequate and under feeding of close up cow further effect on overall health of the animal and its productivity and fertility. Under feeding is not the right approach to control the cost and all farmers has to change their mind set to optimize feeding practices to reduce milk production cost.
The most important thing is that, farmer has to leave traditional practises of rearing and managing cow and has to adopt scientific approach for profitable dairy farming and that only can help to earn profit during such critical period. Also, all technocrats, government has to look into timely interventions, that would help the dairy sector gain back its potential and reasonably insulate impact of the Covid-19 crisis on farmers as well as dairy industry.