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Subject: Agricultural Economics × Author: Arora, Shweta × End date: 2009 × Start date: 2000 × Thesis Type: Ph.D ×
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    ThesisItemOpen Access
    Comparative economics of milk and milk products in private and cooperative sectors of Uttarakhand
    (G.B. Pant University of Agriculture and Technology, Pantnagar - 263145 (Uttarakhand), 2009-08) Arora, Shweta; Agnihotri, A.K.
    The investigation was conducted with the objectives to study economics of milk and milk products in private and cooperative sectors, to study marketing of milk and milk products in both sectors and to analyse strengths and weaknesses of private and cooperative marketing systems. The study was mainly based on primary as well as secondary data collected from the respective organizations. A random sample of 60 farmers comprising of 30 milk producers selling milk to private and 30 milk producers selling milk to cooperative sectors was drawn for the study purpose. In case of cooperative milk product production, Dugdh Utpadak Sahkari Sangh, Khatima was selected Then a random sample of 10 private milk product producers was drawn from Rudrapur and Khatima blocks of district Udham Singh Nagar. Ghee and paneer were the only two common milk products found in private and cooperative sectors whose comparative study could be made. In order to work out economics of milk and milk products, estimation of cost and returns from milk production was done and for milk products after apportionment of joint cost, unit cost of milk products was estimated. Further marketing cost, marketing margins were worked out and relative efficiency of either of the channel was judged based on marketing efficiency index. Finally to achieve third objective, three point grade scale method was adopted to identify strengths and weaknesses of cooperative and private marketing systems. The study concluded that milk and milk product producers under private system enjoyed higher net returns as compared to cooperative milk and milk products producers. The higher net returns under private system could be attributed towards high prices that private producers fetched from the consumers. In case of milk and milk product marketing in cooperative and private sectors, only one channel was found to exist under cooperative system, while private system of milk marketing deals with four different channels. Channel I (Milk producer → Consumer) was found to be efficient when producer’s share in consumer’s rupee was considered. On taking into consideration, the value addition part Channel II (Milk producer → Dudhia → Consumer) was found to be the most efficient marketing channel. In case of milk products it was concluded that Channel III (Cooperative producer - distributor - Consumer) was the most efficient marketing channel because marketing cost involved in this marketing system was relatively low. Based on marketing efficiency index, efficiency of marketing channels could not be compared because the scale of production and area of operation is limited in case of private marketing system. Therefore it was concluded that cooperative ghee and paneer marketing system was more efficient and consumer friendly as consumer has to pay relatively lower price for assured quality products. Surety of price was reported to the most favourable strength of cooperative marketing system, while lack of quality control measures was judged as the severe weakness of cooperative marketing. Milk and milk product producers under private system of marketing considered high price of milk and current payment facility to be most favourable strengths and highly competitive marketing conditions was considered to be the severe weakness. The important policy implications of the study are (1) Development of efficient milk collection centres with proper cooling facilities and transportation networks at farmers level by the cooperatives could reduce the cost of transportation and thus help in maintaining quality of milk and milk products. (2) Steps may be taken by dairy cooperatives to consider the cost of milk production besides fat and SNF, in fixing the procurement price of milk. (3) the private milk product producers should enhance their scale of production in order to reduce manufacturing cost and also they should economise on procurement cost of milk by developing their own procurement network instead of depending upon dudhia, and should also focus on adequate planning and increased market sales. (4) Customer oriented market research and development should be accorded higher attention by the cooperative sector, so as to attract consumer preferences. Brand popularity of its products trade named as “ Anchal” should also be enhanced.