Covid-19 pandemic has affected the hotels, restaurants and catering (HoReCa) sections of the world market. The HoReCa segment has a major dairy product consumption rate. However, the most recent export figures of Amul’s dairy product shows a different story of a noteworthy surge in the consumption of the retail farm product in the world market.
As per the info provided by the Gujarat Cooperative Milk Marketing Federation Ltd. (Marketer of Amul), disclosed that the exports of dairy consumer packs stayed at Rupees 250 crore during April and November 2020, that is an extraordinary rise of around 55 percent when compared to last year.
Total Exports:
Director, GCMMF, RS Sodhi said “Exports of consumer packs have developed by around 55% because of an extraordinary jump within the retail consumption led by the global markets of U.S., Western Asia and Singapore. Considering this fiscal year, the overall exports are higher by a staggering 17%”. Amul’s consumer packs embrace ghee, cheese, cream, butter, and UHT (ultra-high temperature treatment) packs of milk.
Increase in the exports of consumer packs is associated with more preference for Amul as a brand in terms of home consumption. Also, a considerable number of Indian expats share a robust connection with Amul’s product and have contributed to the rise in the demand of consumer packs.
On the contrary, the firm has disclosed a sharp decline of around 60% in its exports related to commodities comprising dairy whiteners, milk powder, full cream milk powder and ghee at around Rupees 20 Crore till November.
Exports don't seem to be the main target space for Amul, that gets solely around 3 to 4 percent of its overall revenues to around fifty countries. However, the recent consumer trend in relation to packaged dairy products has arrived as a patron for the company, that currently expects its overall exports of dairy products for FY 2020-2021 to hit Rupees 600 crore, that is 64% more than past year.
As per APEDA, India as a country has exported a total of 59,651 tonnes of farm dairy products during the period of April and October 2020, that is around 15% less compared to 70,483 tonnes exported during the same time period last year. However, in price terms, total farm product exports stood at Rupees 1,214 crore, that is lower than Rupees 1,226 crore recorded within the same period past year. APEDA has quoted an average unit price of $2,721 per tonne, that is around 12% more than last year’s average unit price of $2,431 per tonnes.
