Abstract

Dairy industry is one of the essential global industries with considerably important implications for world economy where the dairy supply chains (DSC) cover every stage of the food system starting from the milk production at farmer level to final consumption. For achieving success in the dairy supply chain, it is needed to focus on critical factors (CFs) that are necessary for an organization to achieve its corporate goals with continually improving the operational performance. In this context, the current study is an attempt to identify the critical factors causing low-productivity in dairy supply chains. After comprehensive literature review and pilot studies in some dairy industries located in northern region of India, a total of 32 critical factors have been identified. A structured questionnaire consisting of 32 CFs have been circulated and the data has been collected from select cooperative dairy units. Further, only eight major critical factors have been carried forward for AHP analysis based on the data collected. The factor having higher weightage score is considered as major CF. The findings of this study indicate that the poor logistics and transportation facilities is the most critical factor as productivity barrier in the context of coop. milk processing units in northern India. This research study would be useful for the dairy professionals & managers of milk processing units to manage their production operations effectively by considering the identified CFs.

Highlights

  • India is the largest producer of milk in the world and it is largest consumer of milk consuming almost its whole milk production

  • A thorough survey has been conducted by getting responses in a questionnaire developed with a set of questions regarding critical factors (CFs) in dairy supply chain

  • The aim of this study is to propose a structural framework for the evaluation of critical factors for DSCM using analytical hierarchy process (AHP) approach

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Summary

Introduction

India is the largest producer of milk in the world and it is largest consumer of milk consuming almost its whole milk production. The Indian dairy industry is mainly constituted of 22 state milk federations, 110,000 dairy cooperative societies involving more than 12 million milk producers (NDDB, India). The technology foresight can provide an opportunity to explore the plausible future of dairy industry sector set to achieve that through appropriate policy initiatives. To achieve desired future it is essential to identify the major trends, drivers, actors and factors of the dairy sector. The dairy industry necessities a major development in their efficiency and competitiveness status so as to meet the high quality, consis tency and safety standards of the export markets (Bhardwaj et al [2])

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