INDIA, Oct. 31 -- Dodla Dairy's latest quarterly reporting illustrates the tension within dairy economics. A report published on 30 October records revenue growth alongside lower profit, with the company citing higher procurement and other operating costs. Its financial performance cannot establish the condition of every dairy business, but it provides a useful case for examining how costs are distributed.

The answer must protect the producer while demanding discipline throughout the processing and distribution system.

The Dairy Times believes that remunerative procurement is fundamental to a dependable milk supply. Farmers cannot be expected to sustain production if the return fails to cover the realities of feeding, animal health and ho...