Mild Summer Reduces Demand for Dairy Products
Impact of Unusual Weather on Dairy Sales
This summer has seen cooler temperatures and early rainfall, which have negatively affected the sales of dairy products such as curds, buttermilk, and ice creams. Major dairy companies, including Mother Dairy and Heritage Foods, have had to reassess their growth forecasts. Nevertheless, the anticipated above-average rainfall is expected to enhance milk production due to improved fodder supply and consistent procurement conditions.
Industry experts highlight that the projected above-normal rainfall during this monsoon season is likely to enrich green fodder availability, which is vital for animal nutrition and ultimately increases milk yield. This year, a cooler summer has led to a downturn in the sales of summer-oriented dairy products, including various ice cream flavors, kulfis, cones, bars, curds, lassi, and cold coffees, which are typically in high demand during warmer months. “Our expected growth in summer-centric products has been adjusted downward by 10% compared to our original estimates,” stated Manish Bandlish, Managing Director of Mother Dairy, in an interview with FE. He remarked that such seasonal variations are not unusual, and the company is ready to adapt to shifts in weather patterns.
Bandlish explained, “Initially, the season commenced positively for our summer-focused product lines, but unusual weather patterns starting late April and throughout May have slightly hindered our momentum.” However, he expressed confidence in Mother Dairy’s ability to handle both peak summer seasons and unexpected weather changes, stating, “We are optimistic about achieving strong results for the remainder of the year.” As a fully owned subsidiary of the National Dairy Development Board, Mother Dairy primarily serves the Delhi-NCR area, which constitutes over 65% of its overall sales.
For the fiscal year 2025, the company had aimed for revenue growth of approximately 13%, increasing from Rs 15,000 crore in 2023-24 to Rs 17,000 crore. Industry data indicate that around 1.05 million litres of milk are supplied in the Delhi-NCR region, where Mother Dairy and Amul, associated with the Gujarat Cooperative Milk Marketing Federation (GCMMF), hold a combined market share of about 70%, with the unorganised sector providing the remainder.
According to the India Meteorological Department (IMD), rainfall across the nation from March 1 to May 21, 2025, has been at 110% of the long-term average, indicating above-normal conditions. An IMD official noted that the unusually cool weather in May can be attributed to increased rainfall, contrasting with a dry April. Mrutyunjay Mohapatra, the IMD director general, previously stated that frequent and intense thunderstorms in May are expected to keep temperatures from reaching the levels observed in May 2024.
Srideep N. Kesavan, CEO of Heritage Foods—the second-largest organised dairy company in Hyderabad—also commented on the situation: “We are experiencing some stress in the sales of various value-added products, including ice creams and curds, due to the monsoon arriving earlier than expected.” However, Kesavan pointed out that sufficient rainfall and the prospects of an above-normal monsoon bring positive news for milk procurement since increased water availability is anticipated to enhance livestock productivity. He added that the flush season, normally characterized by heightened milk production, is expected to remain stable, leading to stable prices throughout the year.
Heritage Foods processes about 1.7 million litres of milk daily, sourcing from 160,000 farmers across Andhra Pradesh, Telangana, Maharashtra, and other states. The company reported a sales turnover of Rs 4,135 crore in fiscal year 2025. Experts remain optimistic that the predicted above-normal rainfall will not only increase green fodder supply—a critical feed for livestock—but also elevate milk production levels.
