AN ECONOMIC ANALYSIS OF PRODUCTION AND PROCESSING OF MILK IN MADURAI DISTRICT OF TAMILNADU
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Date
2004
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ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY RAJENDRANAGAR, HYDERABAD
Abstract
The present study entitled "An Economic Analysis Of Production And
Processing Of Milk In Madurai District Of Tamil Nadu" was undertaken to
study the costs and returns of milk production and processing, resource
productivity on dairy farms and to determine the optimum feeding plan for
milch cattle.
The study was conducted in Madurai district of Tamil Nadu. Two
blocks with the highest number of milch cattle were purposively selected.
From each block, two villages were purposively selected to draw an ultimate
sample of 60 dairy farmers, representing small and large categories. One milk
processing unit was purposively selected. The relevant data were collected by
survey method for the year 2002-2003.
The average herd size of the sample farms were 2.26, 5.06 and 3.36 on
small, large and pooled farms, respectively.
The human labour employed per animal per lactation was 55.54 46.25
and 49.96 men equivalent days on small, large and pooled farms, respectively.
The total cost of production per animal per lactation was Rs. 12776.09,
Rs. 17791.20 and Rs. 12079.28 on small large and pooled farms, respectively.
In the total costs, the variable costs percentage share was 89.68, 90.75 and
90.24 respective, farms.
The cost of production of milk per litre was Rs. 5.39, Rs. 4.62 and Rs.
4.87 on small, large and pooled farms, respectively.
The net returns were in the order of Rs. 10,026.85, Rs. 12693.78 and
Rs. 11514.08 on small, large and pooled farms, respectively. The rate of return
on investment was 0.78, 1.08 and 0.95 on the above farms, respectively.
The break even output of milk was 316.29, 226.72 and 258.17 litres per
animal per lactation against the actual output of milk 2370.5, 2554.4 and
2457.7 liters per animal per lactation on small, large and pooled farms,
respectively.
In the optimum feeding plan was reduced the total feed cost by Rs. 7.51
and Rs. 7.02 on small and large farms, respectively.
In the production function analysis all the variables included in the
model were positive and significant for both the farms except human labour
use on small farms. All the resources were under used in both the farms except
human labour use on small farms.
The average cost of production of dairy product were in the order of Rs.
128.78 per kg, Rs. 42.43 per kg, Rs. 70.13 per kg, Rs. 45.34 per kg, Rs.11.02
per litre and Rs. 1.94 per sachet for ghee, butter, skim milk powder, milk
khoa, standardized milk and butter milk, respectively. The total output per day
was 634 kg, 1892 kg, 4022 kg 126 kg, 71372 litres and 1150 sachets for the
above said products, respectively.
The net returns per day per produce were in the order of Rs. 26131.45,
Rs. 146762.11, Rs. 160362. 96, Rs. 5627.04, Rs. 212898.5 and Rs. 2371.14
for ghee, butter skim milk powder milk khoa, standardized milk and butter
milk, respectively. The rate of return was 0.32, 1.83, 0.56,0.98, 0.27 and 1.06
for the respective products.
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Keywords
ECONOMIC, ANALYSIS, PRODUCTION, PROCESSING, MILK, MADURAI, DISTRICT, TAMILNADU,