The need for this new center stems from the decreasing number of private companies involved in butter and ghee production in the region. According to S. Chinnasamy, the district secretary of the Tamil Nadu Farmers Association (CPI), Uthukuli has a deep-rooted history in dairy, but the industry is now struggling. This new government-backed facility is seen as a crucial step to protect this traditional livelihood. The hope is that the center will create a reliable market for milk, ensuring farmers receive fair prices, and will encourage more stability in the local dairy economics.

While farmers have expressed their appreciation for the announcement, some key details remain to be clarified. R. Kumar, from the Tamil Nadu Farmers Association (AIKS), noted the lack of information on the implementation plan, specifically whether the new center will be managed by the state’s cooperative, Aavin. S. Paramasivam of the Tamil Nadu Milk Producers Association believes the unit will encourage butter production through Aavin, but emphasizes that the government must increase its overall milk procurement for the benefits to fully reach farmers.

This call for increased procurement is a key point of data journalism for the international dairy community. The article highlights a significant disparity in Tamil Nadu’s dairy sector: the state produces an estimated 1.35 crore litres of milk daily, but Aavin, the cooperative, handles only about 30-35 lakh litres. This gap reveals a significant opportunity for the new butter center to expand Aavin’s market share, provide a reliable outlet for surplus milk, and reduce the dominance of private companies.