13November2021 Nuflower Foods Engagement Dairy

Engagement Dairy

Nuflower Foods

13-Nov-2021

Current SMP fundamentals-

In North,Farm gate Raw milk prices improved by INR 2 per litre to INR 43-44 per litre for 6.5 fat milk due to low milk arrivals. Typically, after Diwali milk arrivals improve but this year, milk arrivals are not improving which is why companies are giving higher prices to farmers.
SMP prices improved by INR 5 per kg in North region in this week. In South, KMF raise their prices by INR 20 per kg to INR 220 per kg.In west, SMP prices are ruling between INR 210-220 per kg.
Amul is quoting INR 225 per kg for 1 year old stocks and for fresh stocks they are quoting INR 270 per kg.
Prices are expected to cool down in December when production of new SMP will take place. In December, we may see decline in SMP prices by INR 10 per kg.

Current procurement recommendation.

In November, prices might increase by another INR 10 per kg.It is better to book SMP for December 2021 at CMP(current market price) i.e around INR 210-220 per kg for cow/mix SMP and INR 250-260 per kg for Buffalo SMP. We will book for January in December month when there will be some softness in prices.