Soaring cattle feed prices to drive milk prices higher

livemint.com:

NEW DELHI : Retail milk prices that have shot up nearly 22% in three years, including about 10% in the last one year, are expected to increase further in the coming three-four months as feed and fodder prices are on the rise amid the monsoon deluge. The prices of de-oiled rice bran (DORB), a key ingredient in cattle, poultry, and fish feed, have increased sharply to ₹18,000-18,500 a tonne from ₹15,000 per tonne in the last few weeks. Maize, a major feed grain and a standard component of livestock diets, is being sold at ₹24,500 a tonne in Tamil Nadu’s Erode, a 20% increase in one month, people in the know in the spot trade said.

“The rise in prices is recorded not only in de-oiled rice bran but also in grains. Maize (corn), jowar, bajra prices are also very high due to heavy rainfall increasing moisture content in crops. While the ideal moisture content in maize is around 14%, it has gone up to 18-19%.

This raises concerns over crops being infected by fungus, which will eventually lead to damage," said Maharajan Sakthivelayutham, CEO of Krishi Nutrition Co. Pvt. Ltd, an animal feed company.

“Additionally, mismatch in demand and supply, and lower MSP (minimum support price) hike than expected pushed up maize prices," he said. The northern states were hit with extreme rainfall in the second week of July. The standing paddy crops in Punjab and Haryana were badly hit, thus affecting the supply of rice bran which is used for animal feed, and is a by-product of rice.