Record Details

A STUDY ON PROCUREMENT AND MARKETING OF MILK AT MOTHER DAIRY IN PRAKASHAM DISTRICT OF ANDHRA PRADESH

KrishiKosh

View Archive Info
 
 
Field Value
 
Title A STUDY ON PROCUREMENT AND MARKETING OF MILK AT MOTHER DAIRY IN PRAKASHAM DISTRICT OF ANDHRA PRADESH
 
Creator SRIHARI, R
 
Contributor RADHIKA, P
 
Subject economic systems, animal husbandry, costs, livestock, milk products, markets, productivity, planting, dairy farms, manpower
 
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.
 
Date 2016-06-23T09:30:04Z
2016-06-23T09:30:04Z
2012
 
Type Thesis
 
Identifier http://krishikosh.egranth.ac.in/handle/1/67772
 
Language en
 
Relation D9141;
 
Format application/pdf
 
Publisher ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY