March 23, 2022

India-based Goa Dairy facing huge losses due to rising input costs

India-based Goa Dairy said it is facing huge losses due to rising costs of raw materials for producing cattle feed caused by Russia's invasion into Ukraine, the Times of India reported.

Goa Dairy's cattle feed manufacturing facility based in Mharvasaddo-Usgao has been suffering losses of over INR 65,000 (~US$852.75, INR 10 = US$0.13) daily. The company recorded a profit during the last fiscal year for the first time.

Company officials said imports of major ingredients used to manufacture cattle feed have been affected by the Russia-Ukraine conflict.

One official said the company is making losses of up to INR 1,500 (~US$19.69) per kg of cattle feed, as the plant sells about 50 tonnes of feed daily.

Goa Dairy is a cooperative union of about 137 village-level milk collection societies. The cooperative supplies cattle feed to farmers at subsidised rates in an effort to promote dairy production.

-      Times of India