A STUDY ON PROCUREMENT AND MARKETING OF MILK AT MOTHER DAIRY IN PRAKASHAM DISTRICT OF ANDHRA PRADESH
KrishiKosh
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Title |
A STUDY ON PROCUREMENT AND MARKETING OF MILK AT MOTHER DAIRY IN PRAKASHAM DISTRICT OF ANDHRA PRADESH
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Creator |
SRIHARI, R
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Contributor |
RADHIKA, P
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Subject |
economic systems, animal husbandry, costs, livestock, milk products, markets, productivity, planting, dairy farms, manpower
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Description |
Dairying was basically a backyard enterprise in India with just enough number of animals to cater to the needs of the family. Over the years dairying has become a commercial enterprise in India. A wide range of producers undertake rearing of cattle in both organized and unorganized sectors. India stands first in milk production in the world with a production of 121.7 million tones of liquid milk 2010-11. However, work should be done not only towards increasing live stock population concentration and productivity but also to focus on better handling of milk in terms of procurement, processing and marketing milk and milk products to meet an ever-increasing demand due to increase in population. The study with objectives to study the different channels of procurement, marketing channels of milk by organized dairy industry in Prakasham district of Andhra Pradesh with respect to compare the costs and returns of a modernized (mechanized) dairy farm with a traditional dairy farm. Top twelve milk producing villages include Kunchepally, Dhanavakonda, Thatimeedhapalem, Annangi, Mannuru, Ravanapally, Valetivaaripalem, Nippetlapadu, Aluru, Kondrapadu, Bollaram and Medanuru from Prakasham district were purposively selected and Primary data regarding investment cost and returns from dairy farming and cost incurred per liter of milk collected and problems faced in milk collection and xi marketing was collected from 144 dairy farmers who were using their own channels of marketing and those who are selling the milk directly to mother dairy, milk depots and 20 dealers of mother dairy were identified randomly and data was accessed from the study area. All the costs of milk production are categorized into fixed and variable costs, Cost of transportation from centre to plant directly, centre to chilling centre and center to the plant and the costs for spoilage of milk were measured Simple averages were used to estimate cost of production of milk and cost of procurement of milk. Discounting techniques were used to obtain Benefit-Cost Ratio, and Finding of the study showed Farmers sell the milk at an average price of Rs. 30.24 per liter if they are selling to organized dairy and at Rs. 34 to 36 per liter if they are selling directly to consumers. The major problem faced by dairy farmers in production of milk is availability of feed and fodder throughout the year. The other problems faced in order of importance are labour shortage, maintaining temperature and diseconomies of scale due to small herd size. The major problems faced by dairy farmers in marketing of milk to organized dairy are payment based on fat content, where as when they are marketing to milk agents the problems are related to payment based on fat content and transportation. In case of directly marketing to customer’s major problem faced by 85% of dairy farmers is transportation problem. Organized dairies in Prakasam district procured milk by adopting three procurement channels: Channel-I: Milk producers-societies-organized plants; Channel-II: Milk producers-agents-organized plants; Channel-III: Milk producers-vendors-organized plants. It was noticed that the cost of procurement for organized dairy works out to Rs.2.15 per liter and total procurement costs in channel III is Rs.3.42 per liter of milk. The total fixed cost is highest in case of societies procuring 250 liters and above milk. The total variable cost decreased with the increase in milk procured. The costs incurred per liter of milk in Five marketing channels, which have been identified to market milk in Prakasam district are channel-I: Milk produce-consumer, Rs. 0.246; channel-II: Milk producer-local vendors-consumer, Rs. 4; channel-III: Milk producer-local vendors-organized plants-distributors-dealers (depots)-consumer ,Rs. 6.415; channel-IV: Milk producer-societies-organized plants-distributors-dealers (depots)-mom and pop stores-consumer, Rs. 5.7675; channel-V: Milk producer-societies-organized plants- distributors-dealers (depots)-consumer, Rs. 5.7675. It was concluded Price received by dairy farmers supplying to consumers directly is more than farmers supplying to organized dairy, Price received by farmers if they are supplying to organized dairy or vendors is depended on fat content in the milk. As the volume of milk procured by societies increases, costs incurred by them decreases. Total cost incurred by organized dairy in procuring and processing milk is around 10 percent of the total costs of milk. The marketing channel involving vendors has less efficiency when compared to marketing channel involving societies and the net returns obtained by modernized dairy are more in comparison to traditional dairy when the milk is supplied to organized dairy and also when the milk is sold through other marketing channels. |
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Date |
2016-06-23T09:30:04Z
2016-06-23T09:30:04Z 2012 |
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Type |
Thesis
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Identifier |
http://krishikosh.egranth.ac.in/handle/1/67772
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Language |
en
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Relation |
D9141;
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Format |
application/pdf
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Publisher |
ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY
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