भाषा:

Heritage Foods, one of India’s large private dairy companies, paid an average of ₹47.73 per litre for the milk it bought from farmers in the second quarter of FY2027, which is 11% more than in the same quarter a year earlier. The figure comes from the company’s Q2 FY27 results, reported by Dairy Dimension on 16 October 2026. Heritage linked the higher milk cost to a gap between demand and supply, low farm productivity, weather disruptions and rising feed and fodder expenses. The company’s revenue grew strongly in the quarter, but its profit fell compared with last year, largely because milk became so much dearer to buy.

Key facts

PointDetail
CompanyHeritage Foods (private dairy)
PeriodQ2 of FY2027 (results reported 16 October 2026)
Average milk procurement price₹47.73 per litre
Change in procurement priceUp 11% year-on-year
Reasons givenDemand-supply imbalance, low farm productivity, weather disruptions, higher feed and fodder costs
Consolidated revenue₹1,320 crore, up 19% year-on-year
Sales volumeUp 7% year-on-year
EBITDA₹74 crore; down 4% year-on-year, up 20% over Q1
Profit after taxDown 39% year-on-year
Value-added products42.5% of revenue in Q2 (37.9% a year earlier)

Why the milk procurement price is rising

A dairy company’s procurement price is simply what it pays at the collection centre or village chilling point for raw milk. When companies need more milk than farmers can supply, they have to pay more to secure it. Heritage named that demand-supply imbalance first, and it is easy to see why: the company’s sales volume grew 7% and its curd, paneer, buttermilk, lassi and ice cream lines grew much faster. All of these need a steady flow of raw milk.

On the supply side, the company pointed to low productivity on farms, weather disruptions and costlier feed and fodder. When an animal gives less milk and every bag of daana costs more, farmers need a higher rate just to stay in business, and dairies that want to keep their suppliers have to respond.

The squeeze shows in Heritage’s own numbers. Revenue rose 19%, yet profit after tax fell 39% from last year. In other words, a bigger share of every rupee the company earned went back to buying milk. By our own rough calculation, an 11% rise to ₹47.73 means the average a year earlier was close to ₹43 per litre.

What it means for dairy farmers

A higher procurement price is good news for anyone pouring milk, but read it carefully. ₹47.73 is an average across all the milk Heritage bought. It mixes high-fat buffalo milk with lower-fat cow milk, and good samples with poor ones. Your own slip can be well above or below this figure.

That is because most dairies, private and cooperative, do not pay a flat rate. They pay on fat and SNF (solids-not-fat: protein, lactose and minerals). At the collection point, your sample is tested and the rate is read from a chart: more fat and more SNF mean more rupees per litre. Buffalo milk usually earns more per litre than cow milk because it is naturally richer in fat. Milk that fails the test, smells sour or shows signs of added water can earn less or be rejected.

The same pressures Heritage named also hit farmers directly. Costlier feed and fodder can eat most of a higher milk rate if you do not watch your cost per litre. Competition between dairies for milk, though, gives careful farmers a chance to earn more by supplying consistent, good-quality milk.

What farmers should do now

  • Read your test slip every time. Note fat, SNF and the rate per litre. If the numbers look wrong, ask for a retest in front of you.
  • Feed for fat and SNF. Enough good green and dry fodder supports fat; a balanced daana with protein supports SNF. Sudden feed changes often drop both.
  • Give mineral mixture daily. Mineral shortage commonly shows up as lower milk and poorer solids. See our dairy feeding and nutrition guide.
  • Produce clean milk. Wash and dry the udder, use a clean steel bucket, keep sick animals’ milk separate and never add water. Clean milk keeps better and tests better.
  • Deliver fast and cool. Milk left warm for hours turns sour. Take it to the collection centre or chiller quickly after milking.
  • Track your cost per litre each month (feed, fodder, labour, vet), so you know if a better rate is really improving your margin.
  • Compare rate charts. Where more than one dairy collects in your area, ask each for its fat/SNF chart and payment terms before switching.
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FAQ

What milk procurement price did Heritage Foods pay in Q2 FY27?

An average of ₹47.73 per litre, 11% higher than in the same quarter last year.

Will every farmer supplying Heritage get ₹47.73 a litre?

No. It is an average. Each farmer’s rate depends on the fat and SNF of their milk and on the dairy’s rate chart.

Why did the price go up?

Heritage cited demand-supply imbalance, low farm productivity, weather disruptions and rising feed and fodder costs.

Source: Dairy Dimension, 16 Oct 2026. Written by the IMN Pyrophos team in our own words.

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