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ThesisItem Open Access ECONOMIC EVALUATION OF GULBARGA MILK UNION, KARNATAKA STATE(University of Agricultural Sciences, Dharwad, 1999) PATIL, SURESH S; HIREMATH, G KThe present study aimed at the economic evaluation of units and performance of Gulbarga Milk Union operating in and Gulbarga districts of Karnataka State. A multisampling technique was employed in the selection of dist: taluks, villages and target groups for the study. The population of cows and buffaloes in Bidar and Gu: districts grew at 0.85 and 3.65 per cent for cows and 8.2.' 3.16 per cent for buffaloes respectively, from 1951 to indicating a scope for dairy activities. In general, sample dairy owners had an average of 3.0 animals comprising of 28.53 per cent crossbred cows 20.7; cent local cows and 50.75 per cent buffaloes. The net retu: in tne high milk producing group \Rs.ll,806/-) followed by medium (Rs.8287/-) and low dairy group (Rs.7315/-). the benefit cost ratio was the highest from the crossbred cows ,(1.99)followed by local cows (1.74) and buffaloes (1.71). Taluks of Bidar and Gulbarga districts were clustered into regions of potential and market driven dairy development based on reainfall, irrigation, fallow land, intensity of cropping ar.d the extent of industrialization. The per liter cost of milk production was Rs.4.74 in crossbred cow, Rs.6.39 in local ccw and Rs.6.54 in buffaloes. The corresponding net returns were Rs.0.62, 1.32 and 0.55 per litre of milk. The performance of the dairy unit is judged by the important parameters viz., the number of crossbred cows, milk productivity, grazing land, area under fodder, availability of green fodder concentrates and under veterinary services in all the groups which was revealed by the principal component analysis. Financial ratio analysis indicated that the milk union head not performed well on account of the increase in liability due to investment in fixed assets, low rate of liquidity lower networth position and declining trend in profitability over time, of state of poor performance of the union was reflected in terms of the problems faced by the union in poor resource management, low infrastructural facilities, low capacity utilization due to high fluctuation in the milk procurement, high procurement cost, high overhead cost and cutthroat competition from the private milk agencies. The important policy measures suggested were to increase operational efficiency to reduce cost, strengthening dairy cooperatives, improve capacity utilization of dairy plants and prompt delivery system of milk to consumers.