Economic analysis of milk production in peri-urban dairy farms of Odisha

Abstract

East and South-eastern coastal plain zone of Odisha was purposively selected for conducting study. After complete enumeration, farms were categorized into small, medium and large categories on the basis of milch animals using cumulative square root frequency method. A total of 120 peri-urban dairy farms were selected from two towns namely Bhubaneswar town (Khorda district) and Cuttack town (Cuttack district). Budgeting technique was used to estimate costs and returns. Capital recovery cost method was used to evaluate fixed costs and variable costs were also evaluated for estimation. From the analysis it was concluded that crossbred cows were more profitable as compared to buffaloes. Milk productivity and returns from per litre milk of crossbred cow were more than buffalo. Concentrate feeding constitute major share in total feeding expenditure. Among different herd size categories of dairy farms, large farms were getting more profit per litre of milk than medium and small farms. Cost elasticity was estimated using Cobb-Douglas production function showed a negative relationship between per unit cost and milk yield.

An economic analysis of milk production in Haryana

“…The share of total fixed cost and total variable cost to the overall gross maintenance cost was found to be 15.36 per cent and 84.64 per cent, respectively. The result obtained was in conformity with earlier studies conducted by Vanishree et al (2018), Athare et al (2019) and Acharya and Malhotra (2020). The contribution of overall feed and fodder cost to the gross cost was found to be 70.71 per cent, followed by overall labour cost (9.68%).…”

“…Hence, lowest cost of milk production per litre of milk was estimated in case of largeherd size and highest in case of smallherd size category due to the economics of scale in dairying. The result regarding the per litre cost of milk production was in accordance with earlier studies conducted by Lal and Chandel (2016) and Acharya and Malhotra (2020).…”

“…Highest net return obtained in case of large herd size followed by medium and small herd size categories. The result obtained regarding the cost of production and net return per litre of milk was found to be similar with the study conducted by Kumari et al (2016), Vanishree et al (2018), Athare et al (2019) and Acharya and Malhotra (2020). The overall yield obtained in case of crossbred cow was worked out to be 6.82 litre per day which was found to be much higher than the break-even output i.e.…”

Comparative Economics of Traditional and Modern Dairy Farms in Eastern U.P.

“…With the current trend in the country India will be able to produce about 217 MT of milk by 2025. There is an ample room for promotion, production and distribution of liquid milk and its products, which policy makers and dairy industry can use it in their favour [6]. The dairy sector provides employment opportunities directly or indirectly to 15 million people in India [7].…”

Production and Distribution Channel of Milk in the Gajapati District of Odisha India

“…Milk productivity and returns per liter of milk of crossbred cows were more than buffalo. Therefore, it can be concluded that rearing of a crossbred cow would economically benefit the farmers (Acharya and Malhotra, 2020). The main player in the milk value chain of Odisha consists of both formal and informal sectors.…”