Goa Dairy not threatened by Amul

Goa Dairy's managing committee says it does not feel threatened with the entry of Amul into Goa's retail market, reported TNN.

Baburao Fatto Desai, Goa Dairy chairman said that there would be no problem if Amul milk launches its operations full-fledged in Goa.

"Goan consumers trust Goa Dairy milk and they will prefer the milk marketed by Goa Dairy. Amul is already in the Goan market but it could not affect the sale of Goa Dairy," he said.

While the Goa state cooperative milk producers' union, popularly known as Goa Dairy is a premier milk supplier in the Goan retail market with a sale of about 85,000 litres of milk per day among a daily consumption of about 1 lakh litres of milk in Goa.

The state has about 175 milk-supply societies and of them, 165 societies are members of Goa Dairy that supply dairy milk collected from milk-producing farmers daily. It is suspected that Amul may procure milk from local dairy farmers on competitive rates. Fatto Desai refutes this theory.

"Goan farmers are in contract with Goa Dairy and they cannot supply milk to any other group," he said.

A former Goa Dairy functionary feels that tough competition lies ahead for it. He opined that the state cooperative dairy has to work very hard to sustain itself if it has to compete with the national milk major.

"Goa Dairy now thinks about profitability but it will have to put more efforts for sustainability after Amul's full-fledged entry in the market," said  Madhav Sahakari, former chairman and presently a director of the dairy.