Fuel price increases are significantly raising transportation costs, affecting the movement of raw milk from farms to processing plants and onward to retail markets. Given the perishable nature of milk, higher logistics expenses are quickly transmitted across the value chain, squeezing margins for producers and processors alike.

At the same time, shortages of packaging materials—especially plastic-based inputs—are creating bottlenecks in processing and distribution. Dairy companies are struggling to secure sufficient packaging, which is critical for maintaining product quality and shelf life, particularly in urban supply chains.

The combined effect of these pressures is forcing dairy operators to reassess pricing strategies and operational efficiency. Some industry players caution that sustained cost inflation could lead to higher consumer prices or disruptions in supply if constraints persist.