Cost of milk production of beneficiary farmers of organized dairy (cooperative and private) in Lucknow region of Uttar Pradesh

Abstract

Indian dairy industry emerged as an important sector for income and employment generation, and is contributing as well in the country’s economy besides improving the health standards. The output from dairy sector has increased at more than 4.0 % per annum since 2010-11. The changing economic scenario an entrepreneur has to be very alert and should always keep an eye on the cost and returns of the scarce resources of an entrepreneur in order to keep himself profitable. Dairying in our country dominated by the small holders. Now the producers are scaling up their capacity by incorporating newer technology. One hundred and sixty milk pourer farmers were selected randomly using probability proportional to size (PPS) from the list of producers who were supplying milk to organized dairy (cooperative or private) purely and exclusively from eight village level milk chilling units of Lucknow and Hardoi district purposively selected from Lucknow region. Average variable cost varies from 88.72 small, 88.95 medium, and 92.38 large farmers and rest 11.28, 11.05 and 7.62 were the fixed cost for small medium and large category farmers respectively. The cost of milk production was higher for Rs 18.02, Rs 16.30 and Rs 15.85 per liter for small medium and large farmers respectively. The average milk selling price was found to be almost at par for small Rs 27.77, Rs. 27.31 and Rs. 27.11 for small, medium and large category farmers. Whereas, the average income generated by investing one rupee was found lowest for small Rs. 1.56 followed by medium Rs.1.71 and large Rs. 1.75 farmers respectively. However, the farmers have generated average annual income of Rs 70334.21, Rs. 128671.1 and Rs.230510.8 by small medium and large category farmers respectively.