EDF Raises Concerns Over Climate Stress on Indian Dairy Production

The Environmental Defense Fund published a working paper detailing challenges facing India's dairy sector due to climate change and market pressures. The report found that annual milk production growth in India has slowed from 6-7 per cent to 3.5-3.7 per cent, while demand continues to rise. Key issues include rising temperatures, which cause yield losses of 1.5 to 2 litres of milk per animal per day, and low productivity of indigenous cattle breeds.

The widening gap between demand and supply is increasingly impacting the financial health of related businesses. The report notes that these issues are already appearing in company balance sheets through spiking procurement costs during heatwaves and margin pressures. Addressing these climate risks is necessary for the sector to sustain its current production levels.