Aavin’s cattle feed and mineral mixture production facilities are operating significantly below their installed capacity, forcing dairy farmers to depend on private suppliers and increasing their cost of milk production, as reported in The New Indian Express.
According to official data accessed by TNIE, Aavin has an installed capacity to produce 19,500 tonnes of cattle feed a month across three plants. However, the federation produced only around 5,500 tonnes a month on average during 2025-26, utilising just 28% of its capacity.
The situation is even more pronounced in mineral mixture production. Aavin’s five plants have a combined installed capacity of 1,800 tonnes a month, but their average production during 2025-26 was only around 42-45 tonnes a month, representing less than 3% of the available capacity, official sources said.
With production remaining low and the supply of green fodder seeds also reportedly irregular, Aavin milk producers and other dairy farmers are being forced to purchase cattle feed and mineral supplements from private suppliers at higher prices.
Industry sources said regular availability of cattle feed and mineral mixture was essential to maintain cattle health and optimise milk production, particularly to improve the solids-not-fat (SNF) and fat content of milk.
A Vellore-based milk producer, S Radhamanalan, said the prices of cattle feed and mineral mixture had increased by around 30% in recent months. Farmers were paying between ₹125 and ₹250 per kg for mineral mixture depending on the requirements of their animals. He said supplying these products at a 60-70% subsidised rate could substantially reduce the cost of milk production.
₹120 Crore Investment, But Low Utilisation
Aavin operates three cattle feed production plants at Erode, Pudukudi in Thanjavur district and Virudhunagar.
The Erode and Pudukudi plants each have a production capacity of 300 tonnes per day, while the Virudhunagar facility has a capacity of 50 tonnes per day. Together, they can produce around 19,500 tonnes of cattle feed every month.
The government has spent more than ₹120 crore to establish these facilities, using funds from the NABARD Rural Infrastructure Development Fund and other sources.
Despite this capacity, actual production remains substantially lower.
The Erode plant produces only around 4,400-4,800 tonnes a month, against its installed capacity of 9,000 tonnes. Pudukudi produces around 500-530 tonnes, compared with its 9,000-tonne capacity, while Virudhunagar produces only around 150 tonnes, against an installed capacity of 1,500 tonnes a month.
A similar underutilisation is evident in Aavin’s mineral mixture plants.
The federation operates five such plants at Erode, Villupuram, Tiruchy, Thoothukudi and Krishnagiri. Each has an installed capacity of 12 tonnes per day, or 360 tonnes a month, giving the five plants a combined monthly capacity of 1,800 tonnes.
Production figures for May showed the extent of the gap. Erode produced only 15 tonnes, Villupuram 5 tonnes, Thoothukudi 3.5 tonnes and Krishnagiri 18.5 tonnes. The Tiruchy plant did not produce any mineral mixture during the month.
Farmers Seek Lower Production Costs
M G Rajendran, president of the Tamil Nadu Milk Producers’ Welfare Association, said the government should conduct a scientific assessment of the actual average cost of producing a litre of milk.
According to the association’s assessment, the production cost is between ₹55 and ₹60 per litre, while farmers receive only around ₹38 per litre for cow milk and ₹47 for buffalo milk, which Rajendran said was inadequate.
The low utilisation of Aavin’s own production facilities has added to farmers’ concerns, as they have to source essential feed and supplements from private suppliers despite the cooperative federation having substantial installed capacity.
Senior Aavin officials did not offer detailed comments on the reasons for the low utilisation. However, an Aavin official said the mineral mixture plants were being operated by private firms on behalf of the cooperative federation.
The official said Aavin would take steps to improve utilisation of the plants and increase production.
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