Milking the COVID-19 crisis: Aavin increases market share

Over 2,000 new producers have registered with Aavin since the lockdown began.

Published: 13th April 2020 04:35 AM  |   Last Updated: 13th April 2020 04:35 AM   |  A+A-


Image for representational purpose only. ( File | EPS)

Express News Service

CHENNAI: At a time when businesses across sectors are struggling, State-owned Aavin has managed to increase its market share. Numbers show that sales has increased by a substantial 2 lakh litres per day for the dairy cooperative, from its average of 22 lakh. In fact, the game has now shifted against private players.

“While 60 per cent of the market share was with private dairy players, Aavin has now increased its presence from 40 per cent to 54,” says a top official of Aavin.

The primary reason for this increase is that most private players are unable to function due to the lockdown. Officials are expecting the demand to go up further by 1 lakh litres per day, and are looking to bring more dairy farmers into the fold.    

“We are ensuring smooth payments. The money is deposited directly to producers’ account once in 10 days,” says M Vallalar, Managing Director of Aavin. “This has boosted their trust. Many farmers who were supplying milk to private companies are now working with us. Our doctors and field officers are constantly guiding them to improve milk quality.”

Over 2,000 new producers have registered with Aavin since the lockdown began. Currently, the cooperative society has 9,000 farmers supplying it milk. On an average, it procures 30.2 lakh litres a day and sells 24.1 lakh. The balance is used to make butter and other milk products.  

To attract more customers, Aavin is also planning home deliveries of its products. “Talks are on with Swiggy and Zomato. Soon, we will get a clear picture. Agriculture department has also started delivery of vegetables and we are trying to tie up with them for delivery of our products as well, “ said a senior marketing official of Aavin.

Safety measures

Officials said adequate measures are being taken to ensure safety of the employees from Coronavirus. “Right from collection points to our plants, social distancing is ensured everywhere.

Utmost care is being taken to ensure quality of the milk. Facilities like free food and pick up facility is also being provided to our casual workers,” says Vallalar.

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