Aavin expands dairy market share, aims for 65% share in 5 years

CHENNAI: In a significant push to strengthen its presence in the dairy market, Tamil Nadu’s leading milk cooperative, Aavin, has witnessed a surge in milk packet sales in Chennai. It plans to capture a 65% market share over the next five years, according to a policy note presented by Milk and Dairy Development Minister RS Rajakannappan in the Assembly on Wednesday.

The Tamil Nadu Milk Producers Cooperative Federation and District Cooperative Milk Producers Unions, operating under Aavin, have been providing milk and dairy products at prices lower than private competitors, the policy note stated.

“Over the last three years, approximately 15 lakh new consumers have joined Aavin, contributing to its growing market presence. To meet the rising demand, continuous efforts are under way to increase daily milk procurement to 50 lakh litres,” the note highlighted.

Measures such as instant acknowledgment slips for producers, dairy loans through banks, livestock insurance, provision of green fodder, and mineral salt mixtures are being implemented to support dairy farmers. “As an incentive, the State government has raised the milk procurement price by Rs 3 per litre, leading to an additional daily procurement of 5 lakh litres. In August 2024, Aavin procured 37.80 lakh litres, with further steps being taken to reach the 50 lakh-litre target,” it said.

To enhance its product line, Aavin is setting up a new ice cream manufacturing plant in Tiruchy, scheduled for commissioning in June 2025.

“The Rs 43.41 crore facility aims to boost the revenue of the Trichy district union and produce high-quality, value-added dairy products. Additionally, a new dairy farm with a capacity of 10 lakh litres per day is being established in Madhavaram for Rs 142.18 crore under the Dairy Infrastructure Development Fund. The facility, aimed at meeting Chennai’s growing milk demand, is expected to be operational by March 2026, with work progressing at full pace,” the note stated.