Value chain analysis of dairy industry in Nagaland

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College of Post Graduate Studies in Agricultural Sciences, Central Agricultural University , Imphal
The dairy industry in India has gone through a sea change, transforming itself from import-dependent and unorganized industry to a self-reliant and well organized industry. Dairy industry is one of the fastest expanding industries in India. Milk production in India has shown a rising trend ever since the inception of Operation Flood Programme in 1970-71. India ranks first in milk production; achieving an annual output of 165.5 million tonnes during 2016-2017.The per capita availability of milk in India was 355 grams per day during 2016-17. However, the situation of the dairy industry in Nagaland is in contrast to the national scenario. The per capita availability of milk in Nagaland during 2016-17 was 91 g/day which was much below the National availability. Local demands for milk and milk products continue to increase, which has been met through imports. Hence, the present study was conducted to estimate the costs and returns from milk production and to identify the structure of local dairy value chain and key actors’ role in the study area and to assess the value addition at different levels of the dairy value chain. To meet the objectives of the study both primary as well as secondary data were collected. Primary data were collected from 100 respondents in the selected villages using pre-tested structured schedule through personal interview for the calendar year 2017-2018. The costs and returns, marketing costs, marketing margin, producer’s share in consumer’s rupee, price spread, marketing efficiency and the value addition of milk were estimated to attain the objectives. The average milk yield per milking cow was 5.02 and 1.70 litres per day for crossbred and local cows respectively. The overall average daily net maintenance cost per milking animal was `143.26 and `53.32, while the net return was `77.70 and `16.86 for crossbred and local cows respectively. Three marketing channels were identified viz., Channel-l (Producer → Consumer) was the most efficient and prominent as 63.35 per cent of the marketed surplus was disposed off through this channel. Also, some margin or profit was gained by the stakeholders at every stage of the each channel through value addition process. The study also inferred that there is a need to manage the value chain in such a manner that the risks and profits are equally shared among the stakeholders. The study concludes that rearing of dairy animals is a profitable venture which can ensure the livelihood security of producers, provide margin to intermediaries and at the same time ensure the consumer’s nutritional security.