The dairy industry has been struggling with cost inflation, which is largely due to intrinsic challenges that has led to an adverse impact on milk production.

Hyderabad based Sid’s Farm, a premium D2C dairy brand based in Telangana, announced a slight increase in the retail price of the A2 Buffalo Milk and A2 Double Toned Buffalo Milk. The new prices, applicable per 500 ml pouches, are Rs 55 for the A2 Buffalo milk variant and Rs 44 for the A2 Double Toned Buffalo Milk one. The company has decided to not alter the cost of the cow & skim milk variants.

The A2 Buffalo milk undergoes a rigorous quality assurance process after being sourced from raw buffalo milk. Despite a considerable increase in the factor cost of procuring raw buffalo milk in the last six months, sufficient care has been taken by Sid’s Farm to limit the price rise to as less as possible. However, the seasonal drop in milk output by around 50 per cent from April to September further limits milk supply and thereby increases the cost of production through various procurement overheads. The dairy industry has been struggling with cost inflation, which is largely due to intrinsic challenges such as changing weather patterns and unforeseen issues like Lumpy Skin Disease in cows that impacted cattle over the last year. This has led to an adverse impact on milk production. Sid’s Farm takes a diligent customer-centric approach to ensure zero tolerance for antibiotics in their milk, a safeguard which often results in a relatively higher rejection rate of raw milk.

Dr Kishore Indukuri, the founder of Sid’s Farm, emphasized the importance of customer trust and satisfaction, promising to always deliver honest and high-quality milk and dairy products. Despite the rising costs, Sid’s Farm had delayed increasing their prices for as long as possible. However, due to no relief, a slight price increase for their A2 Buffalo Milk was necessary.