SUPPLY CHAIN MANAGEMENT OF DAIRY ENTERPRISE IN RURAL-URBAN INTERFACE OF BENGALURU NORTH
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Date
2019-08-27
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UNIVERSITY OF AGRICULTURAL SCIENCES, GKVK BENGALURU
Abstract
The present study was undertaken in Bengaluru North to examine the supply chain
management of dairy enterprise by collecting data randomly from 150 farmers, of which
40 dairy farmers each from rural, transition and urban areas and 30 non-dairy farmers. The
formal supply chain involves few large processors and co-operatives which collect and
market bulk milk on behalf of farmers, while the informal supply chain involved farmers,
transporters and traders selling raw milk directly to consumers and hotels. The cost of
concentrates was the highest in all three regions. Total cost and gross returns were highest
in urban area, i.e., ` 2,46,452 and ` 3,70,407, respectively. The returns per rupee of
investment was 1.48, 1.49 and 1.50; dairy enterprise generated around 206, 257 and 270
man-days of employment yearly in rural, transition and urban area, respectively. Number
of female members, irrigated land and availability of cattle-shed have significant positive
influence in selection of dairy enterprise. Women play a major role in dairy enterprise than
men and take major decisions relating to production aspects rather than financial aspects.
Average cost incurred on four major crops per acre was the higher for non-dairy farmers
(` 1,04,422) and the average net returns was higher for dairy-farmers (` 50,676). The
synergic effect in terms of additional net benefit realised by dairy farmers over non-dairy
farmers was ` 68,078 per household and it was ` 16,061 per acre.