For the study secondary data was elected from relevant sources and requisite samples of cooperatives and private dairy plants were taken. Accordingly a study was carried out with the following specific objectives: ; To estimate the cost of milk procurement of cooperative and private dairy plants. ; To study the processing and manufacturing costs and marketing costs of dairy products by the co-operative and private sector plants. To work out top three dairy products In terms of value addition.
The results shows that the marketing cost Is lower for toned milk, standardized milk and full cream milk for private dairy plant and only of butter for the co-operative airy plant. The marketing margins and value addition in per cent have been found higher for the private plant in toned milk, standardized milk and butter than the co- operative plant. Keywords: Value addition, Procurement cost, Processing Cost, Marketing Cost Introduction During the last three decades, our nation’s milk producers have transformed Indian dairying from stagnation to world leadership.
During this period and before, science and technology (S) have played a critical role In supporting our farmer’s effort. According to industry research, even assuming status quo, the milk output in India is expected to grow at a rate of 7% per annum. If reform is carried out in all the above mentioned areas that currently inhibit the dairy sector, milk output could grow at a rate of 11% per annum.
As compared to this contribution from milk has been assumed to grow at a CARR of about 5% over the next 25 years In India, about 46 per cent of the produced milk is retained for home consumption, while 54 per cent is disposed off to various agencies . About 80 per cent of milk produced In the country Is handled by the unrealized sector and the remaining 20 per cent Is shared equally by co-operative and private sectors for processing with raying degree of product mix. About 35 per cent of milk produced In India Is processed.
The organized sector (large-scale dairy plants) processes about 20 Met milk per annum. Restaurants is third largest milk producer in the country accounting for 9% of all Indian’s output. The per capita consumption of milk in India is only about 72 lbs per annum as compared to about 200 lbs in countries such as United States, Australia and Canada. The state has a total of 566. 63 lacks livestock population as per 18th livestock 2007 census , out of which cattle and buffalo population amounts to 121. 0 lacks & 10. 92 lacks respectively. The breakable cattle and buffalo population in the state is 53. 53 lacks and 57. 28 lacks, respectively. Growth in dairy farming is crucially dependent upon existence of urban areas since per capita consumption of milk in large cities is three to four times the per capita consumption in rural areas. Districts like Jasper, Alular, Kara, Shunning, Biker and Hungarian are the key contributors to milk production in the state.
Proximity of some of these districts to large urban markets outside of the state is likely to help expand the market for milk and milk products room the state. But, the co-operative dairy plants in Restaurants are handling milk much below their installed capacity and face severe competition from the private milk vendors and private dairy plants for marketing of milk and milk products. Due to low handling capacity of co-operative dairy plants, the cost of procurement, processing and distribution has increased enormously.
In this endeavourer, a comparative analysis of cost of milk procurement, processing, manufacturing and marketing of dairy products in co-operative and private sector dairy plants in Restaurants was considered useful to educe the total costs and improve the marketing efficiency and value chain of the co-operative dairy plant. Accordingly a study was carried out with the following To work out top dairy product in terms of value addition.
Materials and Methods State selected for present study: Restaurants Restaurants state was purposively selected for the present study as it had the good number of cooperative dairy plants (18) and also private dairy plants (19). Out of this sample often cooperative societies and ten private dairies were selected based on the data availability to compare procurement, processing and marketing aspects of tooth the cooperative and private dairy plants. Data Collection: Secondary data for financial year 2011-12 as per availability of four dairy products I. E. Toned milk, standardized milk, full cream milk and butter.
Analytical Framework  Cost of Milk Procurement = Cost of Collection + Cost of Transportation + Cost of Chilling + Cost of Milk Reception Processing and Manufacturing Cost of Milk Products Total processing and manufacturing cost of dairy products comprised the following cost components: Raw material, electricity, water, steam, refrigeration, repairs and maintenance, stores and stationery, packing material, depreciation on buildings, depreciation on equipment and machinery, expenditure on manpower, quality control, interest on plant equipment and machinery, milk and milk solids losses and miscellaneous costs.
Cost on Distribution and Promotional Activities Distribution cost consisted of activities involved in moving the product from producer to consumer and cost on promotional activities included cost on advertisement, personal selling, sales promotion and publicity. Marketing Cost The total cost incurred on marketing by producer seller and by the various intermediaries involved in the sale and purchase of the commodity till the commodity reaches the ultimate consumer was taken under this head.