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Nandini’s foray into Tamil Nadu cattle feed market sparks row

June 8, 2025

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KMF, the country’s second-largest milk cooperative, has formally invited distributors to market its Nandini cattle feed products in Tamil Nadu, Andhra Pradesh, Telangana, Odisha, and Goa.

Nandini’s foray into Tamil Nadu cattle feed market sparks row

CHENNAI: The Karnataka Milk Federation’s (KMF) move to expand its Nandini frand cattle feed into Tamil Nadu has sparked concerns among dairy stakeholders, who fear the commercial push could disrupt Aavin’s long-established ecosystem and threaten the livelihoods of thousands of farmers across the state.

KMF, the country’s second-largest milk cooperative, has formally invited distributors market its Nandini cattle feed products in Tamil Nadu, Andhra Pradesh, Telangana, Odisha, and Goa.

This marks a strategic move by the Karnataka-based cooperative to expand beyond its current markets of Karnataka and Kerala.

With nine large-scale feed plants and a production capacity of 1.12 lakh metric tonnes per month, Nandini offers competitively priced and nutritionally balanced feed posing a potential threat to Aavin’s cattle feed operations.

This is a dangerous precedent,” warned SA Ponnusamy, president of the Tamil Nadu Milk Dealers’ Labourers’ Welfare Association.

Nandini is not procuring milk from Tamil Nadu farmers, yet it is entering the input supply chain. This undermines Aavin’s fundamental relationship with its producers,” he told DT Next.

Ponnusamy accused Nandini of already destabilising the Chennai market by offloading over 80,000 litres of milk daily at lower rates to private vendors and tea stalls.

“Now, they are trying to undercut Aavin in cattle feed too. This is not healthy competition it’s a policy failure,” he said, demanding urgent intervention from the state government.

Tamil Nadu’s dairy sector is already under pressure from private players such as Hatsun Agro, Dodla, and Heritage, which collectively control over 45% of the state’s milk market.

Following a price hike by private firms in December 2024, Aavin chose to retain its prices to ensure affordability for over one crore consumers.

In response to the growing anxiety, State Minister for Milk and Dairy Development Mano Thangaraj dismissed fears of market disruption.

“Nandini’s entry poses no threat to Tamil Nadu. Our state is resilient and currently witnessing remarkable progress,” he said.

“We are systematically revamping our dairy infrastructure. Presently, Tamil Nadu operates two cattle feed plants in Erode and Virudhunagar. A third plant in Thanjavur will be operational soon, ” the minister told DT Next, adding that the state’s milk production is set to exceed 45 lakh litres a day.

He acknowledged the competitive nature of the cattle feed market and noted that other brands like Tata Feeds have long been active in the state.

This is a business. Aavin also sells its products in Kerala. So, Nandini will just be hother player,” Thangaraj added.

However, he admitted that the lack of awareness among farmers about quality cattle feed remains a challenge.

“Many farmers still allow their cattle to graze freely in open areas. We are launching educational initiatives to promote the use of scientifically formulated feed, ” he said, reiterating the government’s commitment to quality and growth.

Aavin officials also attempted to allay fears.

Deputy General Manager (Veterinary) at Aavin, S Sathya, said the state’s bovine population exceeds 65 lakh, which ensures high and sustained demand for cattle feed.

We produce 350 metric tonnes daily through our existing plants. Our upcoming Thanjavur unit will add further capacity. The demand is large enough for multiple players to co-exist, ” she noted.

Despite these reassurances, internal voices within the Dairy Development department remain uneasy.

A senior official, speaking on condition of anonymity, said, “The entry of a rival state cooperative into the input supply chain is not just business – it’s encroachment. If Tamil Nadu doesn’t act to protect Aavin’s milk shed areas, the cooperative model will be severely disrupted.”