Marketed surplus and milk marketing channels in Madhya Pradesh: Implications for dairy farmers and traders

Abstract

The present study estimated the marketed surplus of milk and also analyzed the marketing efficiency of different milk marketing channels in Madhya Pradesh. The study was conducted by collecting primary data from 80 producer households along with 28 market intermediaries involved in marketing of milk from producers to end consumers in the study area. The study revealed that overall marketed surplus of milk in the study area was found to be 74.77 percent and was highest for large category households (81.50 percent) followed by medium (75.88 percent) and small category households (66.65 percent). Out of total marketed surplus, 79.78 percent of milk was disposed off through traditional milk marketing channels while only 20.22 percent was available to organized sector (milk co-operative society). In the traditional milk marketing channel, milk vendors were dominating and collecting major share of raw milk from the producers. Among the various milk marketing channels involving intermediaries, producer’s share in consumer’s rupees as well as marketing efficiency was found to be highest in channel-V (producer-halwai-consumer). The findings from the study suggest that producers should dispose off their milk through those channels in which minimum marketing agencies are involved.