CHENNAI: Aavin’s cattle feed and mineral mixture production plants are operating at far below installed capacity, forcing the dairy farmers to depend on private companies thereby increasing their milk production costs.
According to official data accessed by TNIE, Aavin has an installed capacity to produce 19,500 tonnes of cattle feed per month at its three plants. But it produces only around 5,500 tonnes on average (during 2025-26), utilising just 28% of its installed capacity.
Similarly, Aavin’s five mineral mixture plants have an installed capacity of 1,800 tonnes per month. But the federation produces only around 42-45 tonnes a month (in 2025-26), which is less than three per cent of its installed capacity, official sources revealed to TNIE.
With inadequate production of cattle feed and mineral mixture, coupled with the irregular supply of green fodder seeds, Aavin milk producers and other dairy farmers are being forced to purchase feed and supplements from private suppliers at higher prices, thus increasing their cost of milk production.
While senior Aavin officials remained tight-lipped when asked about the issue, sources said that steps would be taken to increase production.
Industry sources said a regular supply of cattle feed and mineral mixture was essential for optimal growth and milk production, particularly for higher SNF (solids-not-fat) and fat level in the milk.
A Vellore-based milk producer S Radhamanalan said, “The price of cattle feed and mineral mixture has increased by around 30% in the last few months. We purchase mineral mixture for `125 to `250 per kg, depending on the requirements of the animal. If the same is supplied at 60% to 70% subsidised rate, it will help reduce the cost of milk production.”
Aavin’s cattle feed production plants at Erode and Pudukudi (Thanjavur district) have a production capacity of 300 tonnes per day each, while the Virudhunagar plant has a capacity of 50 tonnes per day.
The total capacity per month is 19,500 tonnes. The government has spent more than `120 crore to establish these plants using funds from the NABARD Rural Infrastructure Development Fund and other sources.
Similarly, five mineral mixture plants are operated at Erode, Villupuram, Tiruchy, Thoothukudi and Krishnagiri. Each plant has an installed capacity of 12 tonnes per day, or 360 tonnes per month, taking the combined capacity of the five plants to 1,800 tonnes per month.
The official data also showed a significant gap between the installed capacity and actual output of the cattle feed plants. The Erode plant produces only around 4,400-4,800 tonnes per month against its installed capacity of 9,000 tonnes. The Pudukudi plant produces around 500 to 530 tonnes per month against a capacity of 9,000 tonnes, while the Virudhunagar plant produces only around 150 tonnes per month against its installed capacity of 1,500 tonnes.
A similar gap was seen in the production of mineral mixture. In May, the Erode plant produced only 15 T, while Villupuram produced 5 T, Thoothukudi 3.5 T and Krishnagiri 18.5 T. The Tiruchy plant did not produce any mineral mixture during the month.
M G Rajendran, president of the Tamil Nadu Milk Producers’ Welfare Association, said the government should conduct a scientific study to assess the actual average cost of milk production per litre.
“According to us, the cost of production is between `55 and `60 per litre. However, we are being paid only `38 per litre for cow milk and `47 for buffalo milk, which is far too low,” he added.
An Aavin official said the mineral mixture plants are operated by private firms on behalf of the cooperative federation. “Efforts will be taken to improve the utilisation of these plants and increase production,” the official said.