An economic analysis of dairy farming business in Haryana
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Date
2021-08
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CCSHAU, Hisar
Abstract
The present study was carried out with the objectives to analyze the investment, resource use pattern, profitability and turnover, to examine the extent of adoption of recommended management practices and constraints in the Dairy Farming and SWOT analysis of dairy farming in Haryana. The study was based on primary as well as secondary data. The Haryana state was divided into two agro-climatic regions/zones i.e. eastern and western regions. The eastern and western regions were denoted as Zone-I and Zone-II, respectively in this study. Zone-I included the districts of Kaithal and Karnal. Zone-II comprised Sirsa and Hisar districts. From the selected districts, two blocks from each district were selected randomly for the present study. Twenty-five farmers practising dairy farming were selected randomly from each block as respondents for the study. Therefore, the total sample size for this study was 200 dairy farmers. To achieve the specific objectives, the primary data from the sample dairy farms were collected through survey method on pre-structured schedules designed for the purpose. The data were collected to work out the investment and consumption pattern in dairy production, profitability and turnover of dairy farms, adoption level of recommended management practices and constraints, SWOT analysis of dairy farming in Haryana during 2019-20. The respondents were divided into three categories i.e. small, medium and large herd size on the basis of number of milch animals. Tabular method and descriptive statistics were used by using IBM SPSS software to attain the desired objectives. The outcome of study revealed that average total variable cost per milch animal per day in Zone-I and Zone-II was ` 120.33 and 133.85, respectively. Overall total variable cost per milch animal per day in Haryana was found to be `127.09. On the other hand, average total fixed cost per milch animal per day was ` 178.56 and 173.41 in Zone-I and Zone-II of Haryana. Overall total fixed cost in Haryana was ` 175.98, whereas overall gross cost was ` 298.56 in Zone-I and ` 307.26 in Zone-II of Haryana. Overall gross cost in Haryana was ` 302.91. Milk productivity was 7.91 and 8.09 l/day/milch animal in Zone-I and Zone-II in Haryana, respectively. Overall milk productivity of Haryana was found to be 7.98 l/day/milch animal. It was also revealed that average milk price was ` 53.60 and 53.70 in Zone-I and Zone-II, respectively. Average milk price of Haryana was ` 53.65. It may also be concluded that net returns per milch animal per day in Zone-I were ` 125.67 and ` 128.30 in Zone-II of Haryana. Average net returns per milch animal per day of Haryana were ` 126.57 per milch animal per day. As far as average milk production was concerned it was found to be 72.95 t per month. Average milk production of Haryana per annum was 60.79 t. The average turnover of the dairy units in Haryana was ` 32.81 lakh. Study revealed that among all the recommended management practices animal health practices were followed by majority of the dairy farmers and the corresponding mean value was 1.75 and the rank was 1st, followed by socio-economic management practices (corresponding mean value 2.02 and rank 2nd), hygiene milking practices (corresponding mean value 2.12 and rank 3rd), animal well-being (corresponding mean value 2.23 and rank 4th), nutrition (corresponding mean value 2.56 and rank 5th), and environmental practices with corresponding mean value 2.57, were least preferred or we may say least adopted by dairy farmers hence environmental practices were given rank 6th. On the other hand, among all the constraints, financial were faced by majority of the dairy farmers and the corresponding mean value 1.69 and rank 1st. We concluded that among all the constraints financial constraints were the most important constraint, followed by constraints regarding unavailability of skilled labour (corresponding mean value 1.85 and rank 2nd), production constraints (corresponding mean value 2.45 and rank 3rd), and marketing constraints (corresponding mean value 2.73 and rank 4th). Major strength of dairy sector was high milk production, high per capita availability of milk, availability of best buffalo breed, reasonable market margins, increasing demand of milk and milk products and self-sufficiency in medicine production. Whereas weakness of dairy sector was involvement of more informal channel, quality issues, opposition to cooperatives, scattered milk production, seasonal fluctuation in milk production and lack of infrastructure and major opportunity in dairy sector was high demand of milk and milk products among youth and sports persons, increased awareness about quality products, involvement of huge investment in dairy sector, high export potential and overall positive growth in dairy infrastructure. It was revealed that major threats to dairy sector were scattered milk production, lower educational level of dairy farmers, existence of large numbers of milk vendors, excessive grazing, increase in cost of feed and high transportation charges and excretion of methane gas from dairy farms. On the basis of conclusions of the study, we may suggest that cost of feed and fodder should be minimized, credit facilities should be strengthened, training programs for adoption of good dairy practices should be organized and last but not the least infrastructure for dairy sector should be strengthened.