The vacuum created by the state center’s collapse has been rapidly filled by opportunistic private entities from neighboring states, most prominently from Andhra Pradesh. These firms have aggressively moved in to secure the local supply of raw milk, demonstrating how efficiently private capital mobilizes to seize milk procurement advantages when cooperative or government systems falter. This sudden shift in market control fundamentally changes the competitive landscape for local farmers.

For the farmer community, this external dependence translates directly into reduced bargaining power and compromised farm-gate profitability. Without a viable local buyer offering competitive prices and efficient logistics, producers are often forced to accept less favorable terms dictated by out-of-state private dairies. This scenario underscores a core challenge in dairy economics: the absence of reliable local processing disproportionately disadvantages small and medium-sized producers.

The reliance on Andhra-based firms means that the economic benefits of local milk production are being exported rather than retained within Odisha. This includes the loss of potential employment in dairy manufacturing, value-added revenue from products like packaged milk, butter, and ghee, and local tax contributions. The inability of the state to manage its own value chain severely hinders its overall dairy development strategy and rural economic growth.