SWOT Analysis of Dairy Processing Supply Chain of JMF using Analytical Hierarchy Process

Abstract

Background: Jharkhand State Cooperative Milk Producers’ Federation (JMF) plays crucial role in processing of raw milk procured from the member-producers across the Jharkhand State and contributes to dairy development. The current study investigates the critical factors in JMF’s dairy supply chain, specifically the processing unit and offers an initial decision framework for its implications. Methods: To summarise the strengths, weaknesses, opportunities and threats (SWOT) of the milk processing system in JMF, the necessary data were collected from dairy producer members, including dairy farmers, executives and key informants of processing units. This includes identifying the dairy industry’s objectives as well as the internal and external critical factors (CFs). Because SWOT analysis provides no investigative basis for evaluating the priorities of CFs, the analytic hierarchy process is used to define the priorities of identified CFs. The CFs have also been sorted in the order of importance. Result: The findings of this study show that fully computerised system with self-automation facilities; high operational cost for processing liquid milk; development of new product and value addition; high labour cost or shortage of labour are the major strength, weakness, opportunity and threat of JMF, respectively. Further, the SWOT-based methodology provides critical sensitivity in assessing supply chain strategies for the dairy cooperative like JMF.