A STUDY ON VALUE CHAIN ANALYSIS OF

DAIRY FARMING IN THE COASTAL

DISTRICTS OF ODISHA

A Thesis submitted to Odisha University of Agriculture and Technology in

partial fulfillment of the Requirement for the degree of

MASTER OF BUSINESS ADMINISTRATION

(AGRIBUSINESS MANAGEMENT)

By
ANKITA ACHARYA
Admission no:- 202121213

DEPARTMENT OF AGRIBUSINESS MANAGEMENT

CENTER FOR POST GRADUATE STUDIES
ODISHA UNUVERSITY OF AGRICULTURE AND TECHNOLOGY
BHUBANESWAR-751003
2022
 ODISHA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY
DEPARTMENT OF AGRIBUSINESS MANAGEMENT
CENTRE FOR POST GRADUATE STUDIES (CPGS)

Dr. Bishnupriya Mishra

Bhubaneswar
Professor
Department of Extension Education Date:
College Of Agriculture, OUAT, Bhubaneswar

CERTIFICATE - I

This is to certify that the thesis titled "A STUDY ON VALUE CHAIN ANALYSIS OF DAIRY
FARMING IN THE COASTAL DISTRICTS OF ODISHA" submitted in partial fulfillment of
the requirements for the award of the degree of Master of Business Administration (Agribusiness
Management) to the Odisha University of Agriculture and Technology is a faithful record and
original research work carried out by Ms. ANKITA ACHARYA, under my guidance and
supervision. No part of this thesishasbeen submitted for any other degree or diploma.
It is further certified that the assistance and help received by him from various sources
during the course of investigation has been duly acknowledged.

CHAIRMAN
ADVISORY COMMITTEE
 ODISHA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY
DEPARTMENT OF AGRIBUSINESS MANAGEMENT
CENTRE FOR POST GRADUATE STUDIES (CPGS)

CERTIFICATE –II

This is to certify that the thesis titled " A STUDY ON

VALUE CHAIN ANALYSIS OF DAIRY FARMING IN THE COASTAL DISTRICTS OF

ODISHA submitted by Ms. ANKITA ACHARYA, to the Odisha University of Agriculture and
Technology, Bhubaneswar in partial fulfillment of the requirements for the degree of Master of
Business Administration (Agribusiness Management) has been approved/disapproved by the
student's advisory committee and the external examiner.

ADVISORY COMMITTEE
Chairman:

Dr. Bishnupriya Mishra

Department of Extension Education
College of Agriculture ----------------------------

Member-1
Dr. Debdutt Behura
Head of the Department
Department of Agribusiness Management ----------------------------

Member- 2
Prof. Pandaba Charana Munda
Asst. Professor
Department of Agriculture Management
-------------------------

External Examiner ---------------------------

 DECLARATION

I hereby declare that this thesis entitled, "A STUDY ON VALUE CHAIN ANALYSIS
OF DAIRY FARMING IN THE COASTAL DISTRICTS OF ODISHA" being
submitted to the Department of Agribusiness Management, Centre for Post Graduate
Studies, Odisha University of Agriculture & Technology, Bhubaneswar, is my own
work to the best of my knowledge and belief and it contains no materials previously
published or written anywhere for the award of any other degree or diploma of the
university or other institute of higher learning any time before.

ANKITA ACHARYA
 ACKNOWLEDGEMENT

On the very outset of this report, I would like to extend my sincere and heartfelt
obligation towards all the personages who have helped me in this endeavor. Without their
active guidance, help, cooperation & encouragement, I would not have made headway in
the project.

On the successful completion of this project, I express my deepest sense of gratitude

towards Agricultural Promotion and Investment Coorporation of Odisha Limited
(APICOL) for providing me this golden opportunity of undergoing my major project. The
experience at the organization has been quite enriching. I take this opportunity to thank
all those whose encouragement and guidance has been instrumental in the successful
completion of this project.

I would like to express my gratitude to Dr. Bishnupriya Mishra, Professor, Department

of Extension Education, CA, OUAT for helping me during data collection, guiding and
correcting various documents of mine with attention and care.
I am thankful to Dr. Debdutt Behura, Head Of The Department, Department of
Agribusiness Management, CPGS, OUAT & Mr. Pandaba Charana Munda, Asst.
Professor Department of Agribusiness Management, OUAT and Dr. Sanat Mishra,
senior scientist, directorate of Planning, Monitoring and Evaluation, OUAT for his
valuable suggestions during my thesis work.

On the successful completion of this project, I express my collective appreciation to

many farmers and dealers provides interviewed during the extensive field visits. There
are too manyof them to name individually.

Any omissions in this briefly acknowledgement does not mean lack of gratitude.

ANKITA ACHARYA
 CONTENTS
CHAPTER NO. PARTICULARS PAGE NO.

1. INTRODUCTION 1-4

2. REVIEW OF LITERATURE 5-9

3. MATERIALS AND METHODS 10-13

3.1 Sources of data
3.2 Approach of the study
3.3 Research design
3.4 Sampling procedures
3.5 Collection of data
3.6 Analysis of data
4. RESULTS AND DISCUSSION 14-31

5. SUMMARY AND CONCLUSION 32-35

6. REFERENCES i-ii

7. ANNEXURE I-V

8. PHOTO GALLERY VI-VII

 DEPARTMENT OF AGRIBUSINESS MANAGEMENT
CENTRE FOR POST GRADUATE STUDIES
ODISHA UNIVERSITY OF AGRICULTURE & TECHNOLOGY
BHUBANESWAR-751003, ODISSA

CERTIFICATE OF ANTI-PLAGIARISM

This is to certify that the MBA (ABM) thesis of Ms. ANKITA ACHARYA, Adm. No.
202121213, Department of Agribusiness Management, Centre for Post Graduate Studies, OUAT,
Bhubaneswar has been checked for anti plagiarism by using Turnitin web portal and similarity
index was found within 15% level (from Abstract to Summary & Conclusion) as prescribed by
OUAT.

Student Chairman Head of the Department

 ABBREVIATION

ARD : Animal Resources Deveopment

AI : Artifcial Insemination
APICOL : Agriculture Promotion and Investment Corporation of Odisha Limited
APEDA : Agricultural and Processed Food Products Export Development Authority
WDCS : Women Dairy Co-operative Societies
GDP : Gross Domestic Product
GSDP : Gross State Domestic Product
GOI : Government of Odisha
OLM : Odisha Livelihoods Mission
MPCS : Mission Planning and Control Session
USA : United States of America
EU : European Union
LDC : Least Developed Countries
MT : Million Tonnes
NDDB : National Dairy Development Board
DV : Dairy Value
ICMR : Indian Council of Medical Research
OMFED : The Orissa State Cooperative Milk Producers Federation Ltd.
 ABSTRACT
A survey with a structured questionnaire was conducted in village of three coastal districts
of Odisha (Puri,Khordha,Cuttack).Purpose was to find out the problems faced by the
farmers in different stages of management of dairy unit and to know at which point there is
more expenditure and how to increase the value of the milk.The Dairy units which are in
villages where milk cooperative societies are operating taken under organized sector and the
dairy units of village where milk cooperative societies were not operating were taken under
unorganized sector. The milk yield was found higher in medium size dairy farmers and large
size dairy farmers than the small size dairy farmers. This might be due to less resources,less
knowledge on dairy farm management of small farmers compared to the other two groups.
Calving interval was higher in unorganized sector than organized sector which was cause of
longer dry period and so less milk yield. In organized sector less dry period might be due to
reproductive health care received by the dairy farmers from milk cooperatives.In case of
large dairy farmers the calving intervals was significantly lower than other two groups.This
may be due to better care and management by the large farmers.In organized sectors
significantly higher no. of farmers were supplying milk to milk society(45.0%)than in
unorganized sectors(4%)and in unorganized sectors significantly higher percentage of
farmers were supplying milk to consumers and traders than milk society. Significantly
higher percentage of small farmers (60%)were supplying milk directly to consumers than
medium and large farmers and significantly lower percentage(25.0% and 15.0%) of the
small farmers were supplying milk to trader and milk society respectively than directly
consumers. Highest extra profit from 1 litre milk was obtained from khoa making (Rs
30.00),then the dahi making(Rs 25.00),then ghee preparation (Rs 20.00),the chenna
preparation(Rs17.50) and paneer (Rs 14.00) than selling the milk @Rs 40.00 in the village.
ORGANISATIONAL PROFILE

It was established on 01-03-1996 as envisaged in State Agriculture Policy 1996.It started

functioning since 01-06-1996 with the sole objective of promoting agro-based
industries/food processing industries including commercial agriculture/horticulture/animal
husbandry/fisheries, in broad terms to promote investment in Agriculture and Allied sectors.

The Agriculture Promotion and Investment Coorporation of Odisha

limited(APICOL),a government of Odisha undertaking, coming up as a promotional
organization for providing assistance to agricultural enterprises in the state of
Odisha.APICOL would promote enterprises in agriculture within the state with suitable
guidance for project formulation, counseling, enterprise development and assistance in
project implementation.

• APICOL-THE AGRICULTURAL PROMOTION AND INVESTMENT

COORPORATION OF ODISHA LIMITED.
• APICOL is a wholly owned government of Odisha Coorporation working under
Department of Agriculture and Farmers’ Empowerment.
• The corporation started functioning since 01-06-1996 with the sole objective of
promoting Commercial Agri Enterprises in the state in the following five sectors:
1. Agriculture
2. Horticulture
3. Animal Resources Development
4. Fisheries
5. Food Processing Industries
VISION

To bring in a shift from subsistence agriculture to commercial agriculture by motivating

farmers and entrepreneurs on commercial agri-enterprises and provide an interactive
coupling between technology, economy, environment, institutions and society for speedy
development of agriculture, agro-based/food processing industries to build up a substantial
base for production of value added agro-food products for domestic and export markets with
strong emphasis on quality and productivity.

MISSION

“To proactively contribute to the all-round economic and social development of the state by
being responsive, competitive and efficient while, at the same time, protecting and
improving the natural environment and livelihoods of local communities.”

OBJECTIVES

• To conduct the SWOT Analysis of dairy farming in study area.

• To study the activities of dairy farming of the respondents.
• To study the value chain management of dairy farming by the respondents.
• To study problems of respondents faced in value chain management of the
dairy farming and obtain their suggestions to overcome the problems.
 INTRODUCTION

India is a developing country where 70% of the population depends upon agriculture
and allied activities. The potentiality of agriculture in the country was realized only
after Green Revolution in 1996.The country became self-sufficient in food-grains
production. Revolution in agriculture also brought in its fold development in Dairy
Sector. The cattle stock which has been the companion of human beings since pre-
historic days, were given attention and “White Revolution” followed. India is presently
the largest milk producer in the world. Milk has been ranked as the number one farm
commodity. Rural prosperity by dairy farming is the sole need now. Recently livestock
production has taken a new turn by venturing itself on commercial basis. The higher
production potential of the cross-bred animals and its economic sustainability has its
main stay on judicious balance feeding round the year.

Indian Dairy Industry is one of the largest and fast growing industries in
the country which provide ample job opportunities and contribute significantly to the
economy of the country. India now has indisputably the world’s biggest dairy
industry at least in terms of milk products, last year (2021-22) India produced close
to 198.5 million tones. India also produces the biggest directory or encyclopedia of
any world dairy industry. The dairy sector in the India has shown remarkable
development in the past decade and India has now become one of the largest
producers of milk and value-added milk products in the world.
India is the largest producer of milk in the world. Despite being the
world’s largest producer, the dairy sector is by and large in the primitive stage of
development and modernization. Dairying in the recent decades has been considered
as a vital component in the diversification of the agriculture and it has progressively
been receiving increased emphasis in the recent years. There is growing realization
that promotion of dairying not only contributes towards national health building, but
also creates substantial employment opportunities. Dairying has been considered as
one of the activities aimed at alleviating the poverty and unemployment especially in
the rural areas in the rain fed and drought-prone regions. In India, about three-fourth
of the population live in rural areas and about 38% of them are poor. Therefore

1
among these people, as well as the large vegetarian segment of the country’s
population, dairy products provide a critical source of nutrition and animal protein to
millions of people in India. India is the second largest cows’ milk producer company
and world’s number one country for buffalo milk production. Today India contributes
a whopping 9.5% of the global cows’ milk production 130,000 dairies through 80%
of milk comes from dairy farms which later gathered by local Dairies. Milk has
highest value in Indian Agri and food sector, more than combined value of wheat and
rice. Milk contributes close to 1/3rd of gross income of rural households. The
livestock sectors contribute to 8% of Indian GDP and the dairy sector comprises
majority of shares. With over 50% of the population being vegetarian, milk is a key
role in the mitigation of under nutrition.
Unfortunately a significant gap exists between demand for and supply of milk despite
milk production contributing about 28% to agricultural GDP and being by value the
single most important agricultural commodity. About 70% of milk is produced by
small, marginal and landless farmers keeping up to 3 adult dairy animals. Even
households supplying private dairies have an average herd-size of only about 10
animals. For 70 million rural households, 40% of whom are landless, milk production
is an important part of their livelihoods. About 70% of labor in dairying is provided
by women and engagement in dairying has been shown to provide pathways out of
poverty. Improving the dairy sector in India will therefore benefit producers by
providing milk at affordable prices.
About 80% of rural households depend on livestock from which they earn
about 30% of their annual income and the world India ranks first in milk production
but Odisha contributes less than 2% of total milk production. OMFED (The Odisha
State Co-operative Milk Producers’ Federation Limited) started functioning from 26th
January 1981,which is affiliated to National Dairy Development Board (NDDB).Aim
of OMFED is to Promote, Procure, Process and market milk and milk products in
different Districts of Odisha.

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• In 2011-12 milk production in odisha was 1710 thousand metric tonnes and per
capita availability was 112 grams/day much lower than the per capita
requirement of 220 grams recommended by ICMR and also much lower than
all India per capita availability of milk of 291 grams/day.
• OMFED is not only producing great milk but also selling toned milk, double
toned milk, curd, ghee, paneer, khoa, buttermilk, flavoured milk etc.
Value chains analysis evaluates which value each particulars activity adds to
the products or services of the organization. In the chain each step in the
process grows some value.

The strength of Dairy farming in India are improved milk production as a result
of accessibility of milk processing, better transport facilities for movement of
milk and milk products. The weaknesses are hot climate environment seasonal
fluctuations in milk production. The threats are introduction of Foreign
products as substitute of Dairy products in Indian market, high chemical
contaminations in milk. Opportunities are increasing requirement of fluid milk
as well as value added milk products.

Due to inadequate transport facilities in Odisha there is problem in collection

Processing, Preserving and Marketing the milk produced in the Indian villages.
So, milk co-operative societies and milk produced in the Indian Villages. So,
milk co-operative socities and milk unions have resolved some of those
problems in the areas of Procurement and marketing of milk.
The study on Value Chain of Dairy farming in the coastal districts of
Odisha has been carried out with following objectives:-
• To find out ways to reduce the cost of production and improve realization in
dairy farming.
• To identify the critical control points to increase the profit margin.

3
Limitations of the study

• As the project period was time based, many things might not have revealed.
• This study was limited to only the some of the dairy farmers under in Puri,
Khurdha and Cuttack districts.
• The data collected depends on accuracy of the information given by the
respondents.

4
 REVIEW OF LITERATURE

The available information on dairy farming and value chain analysis of dairy farming
has been reviewed below.

• Tiwari (2005) reported that dairy cooperatives are effective implement to earn
more profit, providing market infrastructure and on time marketing of milk and
milk products to the associates.
• Chaudhary (2006) identified the problems in marketing problems are
malpractices in dairying, no provision of advance payment and considerable
distance from home.
• Raksha (2014) reported that women who are in livestock sector want all types
of information related to livestock sector starting from breed type to record
keeping and marketing.
• Mishra (2008) reported in his study that the level of education showed
significant effect on overall adoption of feeding practices. Family size had
significant effect on adoption of housing, milking and health care management
practices.
• Tripathy (2009) have studied the extent of participation of respondents in male
and female headed households in all the small scale dairying related activities
and reported that females were involved in activities like preparation and
processing of milk product, management, healthcare etc. The male members
are mostly associated with activities like breeding, feeding etc.
• Patel (2013) assessed the training needs of dairy farm women. The study
showed that farmers show interest in training regarding breeding, feeding,
management etc. Whereas the farmers showed less interest in animal health
care practices as it is highly technical in nature and requires expert advice.
• Patel (2014) reported that majority of respondent i.e. 67.14 per cent had
medium level of knowledge regarding scientific dairy farming 17.14 per cent
and 15.72 per cent respectively were respondents with low and high level of
knowledge.

5
• Yadav (2007) reported a study that the major constraints that are adopted on
modern scientific dairy farming practices have poor success rate of A.I
preference of food crops over fodder cultivation, less technical knowledge of
vaccination schedule and deworming practices.
• Durga and Subhadra (2010) reported that the most serious problems perceived
by the dairy women are inappropriate knowledge about scientific housing,
repeated cross breeding in cows, high cost of concentrate, reduction in milk
yield is due to diseases and low price of milk and milk products.
• Rathore (2009) reported in their study that low price of milk and ghee, lack of
milk market, lack of knowledge about the deworming practices, the distance of
veterinary hospital were perceived as the most serious constraints.
• Bardhan and Sharma (2011) stated that dairy cooperative society’s play a
conductive role in providing cattle feed, cheaper emergency veterinary services
and training facilities. Dairy cooperative societies had unfavorable impact on
providing green fodder throughout the year.
• Gaikwad (2013) on his research reported that the difficulties faced by farm
women in dairy farming, were high cost of quality concentrate feed (98
percent), high cost needed for purchasing crossbreed animals and veterinary
medicine (95 percent) and declining performance of exotic animals due to
inappropriate temperature (94 percent) and non-remunerative price for milk (80
percent).
• Sheela (2013) stated that farmers were motivated to join cooperatives and work
with others to learn from them in order to access market and input services and
increase income.
• Chaudhry (2015) reported in their study that scarcity of irrigation facilities to
raise green fodder, high transportation cost of feed and lack of retail fodder
shops were some of the constraints for empowerment.
• Rao (2017) in his study examined the prospects of increasing income and
employement on small and marginal farms through Milk Cooperative Society.
He summarized that the percentage contribution made to total farm income and

6
 employement by livestock production was higher on marginal and small farms
as compared to large farms.
• Padhi (2016) reported that, the dairy cooperative play an important role for
rapid development of India’s rural people. This goes a long way in eradication
of poverty and establishment of real democratic system of governance.
• Babu and Verma (2010) reported that Dairy Industry in India has gone through
a sea change, transforming itself from Import-depend dent industry to a self
reliant Industry.
• Maharana (2021) reported that in Ganjam and Gajapati districts, majority of the
Dairy Farmers are found to having 2-3 cows, which yields very low cash farm
income and generates negative entrepreneurial profits.
• Sulaiman and Pillai (2019) foumd that even though the dairy cooperatives are
rendering services they are not up to expectations. Majority of the farmers are
not satisfied with the various efforts of the societies for improving the
efficiency in the marketing of milk produced by farmers. The farmers are still
facing problems in the area related to low procurement price of the milk, partial
collection of milk, indifferent attitude of the staff, lack of transparency in the
quality inspection and delay in getting sales proceeds.
• Pande (2020) suggested some policy measures i) the procurement of milk was
not sufficient to run the dairy plant with full capacity; it was due to lower
prices paid by RDSSM/MPCSs with special reference to competitive market
situations. Thus, RDSSM should provide better price to their milk output,
which will promote the sale of milk towards MPCSs/RDSSM so that dairy
plant may run up to the optimum (break-even) level, ii) the wide gap existing
between producer’s and consumer’s milk price, was due to the involvement of
a large market network which induced more cost for collection of milk, which
can be reduced so that the producer can receive more share of price paid by
consumers for milk and iii) the cultivation of green fodder was a major
problem to rear the crossbred / improve milch cattle; it is due to poor irrigation
facilities which do not support fodder cultivation. Therefore, it should be
generated through welcoming the private and public investments.

7
• Singh (2019) observed that the dairy industry and milk market in Ahmedabad
show that it is only the small scale and traditionally well enriched unorganized
sector players who have been able to move to the organized and branded
market in milk due to various factors like understanding of the local market,
lower overheads, innovation in marketing and selling, and small size. The
others who went for large plant capacities failed due to procurement problems.
He further added that the private operators in the organized and unorganized
dairy sectors in India use a range of strategies to build advantage like making
timely cash payment to producers; by offering higher price than that offered by
the co-operative in summer and lower price in winter; by operating an efficient
and tight collection and transport system.
• Rangasamy and Dhaka (2016) have suggested some policy measures like the
following: i) Co-operative dairy plant should make regular payments or
advance payments to milk producers, members and can avoid members selling
milk to private dairy plants or milk vendors, ii) Efforts should be made to
install bulk milk coolers in rural areas to facilitate reduction in transport cost
and iii) Imparting training about clean milk production to dairy farmers at Milk
Producers Co-operative Society level will improve the quality of milk
procured.
• Kaul (2017) indicated that the co-operatives have done well in the western and
northern parts of the country. The eastern region consisting of Assam and
Sikkim have lagged behind. The casual factor for regional variation indicated
that states having higher per capita income have better spread co-operatives, so
also with respect to the number of operational holdings in the states. This may
be due to better roads and other transport infrastructure that have discouraged
the formation of co-operatives because these enable farmers to dispose their
produce individually. Further, she added that the co-operatives have emerged
as a better option for organizing distribution of milk in the rural areas. The
future of dairy farmers lies in strengthening dairy co-operatives in those states
which lack these facilities.

8
• According to Heiko Bammann (2015) Collaboration between government
agencies, non-governmental agencies, and private agribusinesses offers the
greatest potential for applying the value chain concept, with the aim of
increasing income and employment through improved farming. The approach
can be applied to a wide range of situations and for different beneficiary
groups, including youth and women’s groups.
• Ramesh and Krishnan (2018) analyzed dairy sub-sector as source of
employment and a business opportunity for poverty alleviation. They found
high contribution of livestock production to livelihoods and income generation
for smallholder farmers through the production of higher-value products
compared to most crops.

9
 MATERIALS AND METHODS

This chapter deals with the methods and procedures followed during the course of
investigation. The following research study on value chain of Dairy farming in the
coastal districts of Odisha, which was carried out in some of the areas of Khordha,
Cuttack and Puri districts. It includes sampling procedures followed for data collection
and statistical techniques used for analysis of the data.

The methodology is described

3.1 Sources of data

3.2 Approach of study

3.3 Research Design

3.4 Sampling Procedures

3.5 Collection of data

3.6 Analysis of data

3.1 Sources of data

The basic information regarding to the study was collected from farmers, by field
visits, personal interaction, and physical observation with dairy farmers, middleman
and consumers. The secondary data and other relevant information for the study were
gathered from the reference websites, reports, magazines, journals, different bulletin
published by different organisations, institutes and agencies.

3.1.1 Primary data

The data were collected from 120 farmers of villages covering blocks in Khordha,
Cuttack and Puri. The responses on the questionnaires were obtained through direct
interaction with farmers with their respective farm location, so as to get accurate
information.

10
3.1.2 Secondary data

The secondary data and other information related to value chain of dairy farming
in the coastal districts of Odisha were collected from the reference reports, websites,
Apicol, journals and different bulletin published by different organizations, institutes
and agencies.

3.2 Approach of the study

The study was conducted based on the basis of secondary data and primary data.
It was conducted with major focus on the dairy farmers under Apicol. Puri, Khordha,
Cuttack districts and some places of Jajpur districts.

The study was carried out through purposive sampling. The approach for
collecting the data was based on field survey.

3.3 Research design

The basic research method used in this study is a combination of approaches,

experimental and participatory as it is conducted for analyzing the different value
chain aspects used by dairy farmers.

3.4 Sampling procedures

Purposive judgement sampling technique was used for the study i.e. where the
target sample members were to be considered and here Dairy farmers (small, medium,
large) middlemen were the targeted sample respondents.

3.4.1 Selection of the districts

As Odisha has major milk producing districts like Cuttack, Balasore, Ganjam and
Cuttack Districts in highest among all districts of Odisha, Puri, Cuttack and Khordha
was selected for survey.

3.4.2 Selection of block

Three blocks were selected at random taken one block from each district.

11
3.4.3 Selection of villages

The three villages at the rate of one village from each block were selected at
random.

3.4.4 Selection of the respondents

A list of farmers prepared from the selected districts. The total 57 farmers were
selected from the list of selected villages by cluster random sampling methods. Thus,
total of 57 farmers were selected as respondents for this study.

3.5 Collection of data

The basic information regarding the study was gathered from records of APICOL
the primary data for the study was collected from the farmers through pretested
questionnaires on different aspect of value chain of dairy farming in the coastal
districts of Odisha. All the respondents were personally interviewed from April to June
2018. The aims and objectives of the study were explained to the respondents so as to
facilitate their free responses. The respondents were interviewed at their own farm.
The collections of data were recorded individually.

3.6 Analysis of data

The present investigation was an attempt to study the value of dairy farming in
Bhuan, Biraharekrishnapur, Gobardhanpur, Bunua, Patasanipur of Puri district.
Terabata, Nabatia, Jhinitisasan, Abhayamukhi villages of Khurdha district. Salipur,
Birol, Bhagatpur, Bodamundai, Nimeisapur of Cuttack district. Primary data on cost of
production of milk and marketing of milk and milk products were collected by
personal interview method with pre structured schedule. A total of 120 farmers were
selected randomly from the two villages of each district. 20 organized and 20
unorganized farmers from each district, 60 farmers from unorganized sectors and 60
farmers from unorganized sector had been selected. The dairy farmers supplying milk
to OMFED and private processing sector were taken as organized sector. 20 small
farmers (1-4 CB Jersey milch cows), 20 medium farmers (5-8 CB Jersey milch cows),
20 big farmers (9 and above CB Jersey milch cows) were selected.

12
Data collected from the individual dairy farmers who have maintained records and by
personal questions with the farmers who have not maintained records regarding
expenses on feeding, labor, milk production, income from the sale of milk in the
structured schedule.

The collected data has been analysed by using statistical tools like averages,
percentages, making chart and diagrams using Microsoft Excel. The results thereof
were being checked whether those are matching with the preset objectives or not.

13
 RESULTS AND DISCUSSION

4.1 SWOT Analysis

SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. By

definition, Strengths and Weaknesses are considered to be internal factors over which
you have some measure of control. Also, by definition, Opportunities and Threats are
considered to be external factors over which you have essentially no control.

SWOT Analysis is the most renowned tool for analysis of the overall strategic
position of the business and its environment. Its key purpose is to identify the
strategies that will create a firm specific business model that will best align an
organization’s resources and capabilities to the requirements of the environment in
which the firm operates.

4.1.1 Strengths

• High demand of milk and milk products.

• Having good market potential.
• Support from ARD sector.
• Mostly young entrepreneurs are interested for dairy farming.
• Regular income source for village farmers.
• Less market distance.
• Sufficient area for green fodder cultivation.

4.1.2 Weaknesses

• Lack of storage facility

• Low price given by cooperative society.
• High interest rate from banking sector.
• Lack of knowledge about modern farming.
• Limited land areas.
• High cost in fodder cultivation.

14
 • Capital input is high.
• Labour rate is high.

4.1.3 Opportunities

• Scope to establish producer groups.

• High productions of milk produce.
• More private players are present in milk producing sectors.
• There is subsidy for the dairy project farmers and that subsidy is 40% for
general male candidates and 50% to female and SC/ST candidates.

4.1.4 Threats

• Farmers are totally dependent upon price of milk society.

• The value chain is not recognized.
• Small holding lands by farmers.
• All farmers are not business oriented.
• Occurrence of many diseases.
• Increased in market price of concentrate feeds.
• Less risk taking capacity.
• Role play by middle man is also a big threat for profit maximization.

The average milk yield per cow, sector wise, farm type, farmers type and type of sale
of milk.

4.2 Milk yield and calving interval

The overall average daily milk yield per cow was observed to be 5.25 litres. The
average daily milk yield in one lactation per cow in organized sector and unorganized
sector is presented in (table-1). In organized sector the milk yield was 5.32 litres and
in unorganized sector it was 5.18 litres. In organized sector it was higher than that of
unorganized sector. This may be due to knowledge of management practices from milk
co-operative in organized sector.

15
Table 1: Milk yield and calving interval

Factor Sub-group N Milk Yield (lt) Calving Interval

Overall (µ) 120 5.25±0.13 15.60±0.15

Sector Organized 60 5.32±0.18 15.00±0.18

Unorganized 60 5.18±0.19 16.22±0.22

Small 40 4.43±0.18 16.60±0.22

Type Medium 40 5.58±0.20 15.48±0.28

of farmer
Large 40 5.75±0.24 14.75±0.21

Cow 29 5.17±0.15 15.79±0.30

Farm type Cow + Fish 9 4.78±0.40 15.44±0.85

Cow + Crop + Fish 70 5.19±0.20 15.92±0.51

Consumer 49 4.92±0.18 16.22±0.25

Sale
Trader 40 5.65±0.24 15.38±0.22
of milk
Milk Society 31 5.26±0.26 14.94±0.27

Mean milk yield/ cow/ day were observed to be 4.43, 5.58 and 5.75 litres in small
farmer, medium farmers and large farmers respectively. The milk yield was found
higher in case of medium farmers and large farmers than the small farmers. This
may be due to fewer resources, less knowledge on dairy farm management of the
small farmers compared to other two groups.

16
Mean milk yield/ cow/ day of lactation was observed to be 5.17, 4.78, 5.19 and
6.17 litres in farmers rearing only cows, cow + crop and cow + crop + fishery
respectively. There was no significant difference between the groups.

The mean milk yield/ cow/ day of one location was 4.92, 5.65 and 5.26
respectively. There is no significant difference between the groups.

4.2.1 Calving interval

The mean calving interval of cows of all the farmers was found to be 15.6 months.

The mean calving interval in organized sector is 15.0 months and in

unorganized sector is 16.22 months. In unorganized sector it was significantly than
in organized sector. Calving interval is 52 days higher in unorganized sector.
Which cause longer dry period and so less milk yield. This may be due to
reproductive health care received by the dairy farmers from milk co-operative.

The mean calving interval of cows is 16.6 months in small farmers, 15.48
months and 14.75 months in medium and large farmers respectively. In case of
large farmers the calving intervals is significantly lower than other two groups.
This may be due to better care and management by the large farmers.

The mean of calving interval of cows of farmers having only cow unit, cow +
fishery, cow + crop and cow + crop + fishery unit is 15.8 months, 15.4 months,
15.5 months and 15.9 months respectively (table-1). There was no significant
difference in calving interval between the groups.

Mean of calving interval of the cows of farmers group directly supplying milk
to consumers, supplying to traders, supplying to milk producers co-operative
society was 16.2, 15.4 and 14.9 months respectively (Table-1). There was no
significant difference between the groups.

17
 4.3 Types of farming

Table 2: Type of Farming by farmers in organized and unorganized sector

Sector * Farm

Farm

Cow Cow Cow Total X2

and and ,crop
Cow fish crop and
fish

Count 14 4 35 7 60
Organized % within sector
23.3% 6.7% 58.3% 11.7% 100.0%
Sector Count 15 5 35 5 60 0.479

Unorganized % within sector

25.0% 8.3% 58.3% 8.3% 100.0%

Count 29 9 70 12 120
Total % within sector
24.2% 7.5% 58.3% 10.0% 100.0%

Sector * Farm

40

35

30

25 cow

20 cow + fish
cow + crop
15
cow + crop + fish
10

0
Organised Unorganised

18
 Fig.1: Type of Farming in organized and unorganized sector

Table 3: Farmers selling milk in organized and unorganized sectors

Sector * Sale

Sale

Consumer Trader Milk Total X2

society

Count 14 19 27 60
Organized % within 23.3% 31.7% 45.5% 100.0%
sector
Sector
Unorganized Count 35 21 4 60
26.165**
% within 58.3% 35.0% 6.7% 100.0%
sector

Count 49 40 31 120
Total % within 40.8% 33.3% 25.8% 100.0%
sector

**P≤0.01

40

35

30

25
consumer
20
trader
15 society

10

0
organised unorganised

Sector * Sale of Milk

19
 Fig.2: Farmers selling milk in organized and unorganized sectors.

Table 4: Farm type of different farmers

Farmer * Farm

Farm

Cow Cow Cow Cow, Total X2

and fish and crop crop and
fish

Count 8 3 28 1 40

Small % within
farmer
20.0% 7.5% 70.0% 2.5% 100.0%

Count 10 2 23 5 40

Farmer Medium % within 6.392

farmer
25.5% 5.0% 57.5% 12.5% 100.0%

Count 11 4 19 6 40

Large % within
farmer
27.5% 10.0% 47.5% 15.5% 100.05

Count 29 9 70 12 120

Total % within
farmer
24.2% 7.5% 58.3% 10.0% 100.0%

20
Farmer type * Farm type

30

25

20
cow

15 cow+fish
Series 3
10 cow+crop+fish

0
small medium large

Fig.3: Farm type of different farmers

21
 Table 5: Milk sale by different types of farmers

Farmer * sale

Sale

Consumer Trader Milk Total X2

society

Count 24 10 6 40

Small % within
farmer
Farmer 60.0% 25.0% 15.0% 100.0%

Count 15 16 9 40

Medium % within 12.660*

farmer
37.55 40.0% 22.5% 100.0%

Count 10 14 16 40

Large % within
farmer
25.0% 35.0% 40.0% 100.0%

Count 49 40 31 120

% within
farmer
Total 40.8% 33.3% 25.8% 100.0%

*P≤0.05

Farmer Type * Sale of milk

22
 25

20

15
consumer
trader
10 Series 3

0
small medium large

Fig.4: Milk sale by different types of farmers

Out of the 120 dairy farmers surveyed 29 (24.2%) were rearing only cows, 9 (7.5%)
were rearing cows with fishery, 70 (58.3%) were crop production with dairy and 12
(10.0%) farmers were having dairy + crop production + fishery (Table-4).

In organized sector 23.3%, 6.7%, 58.3%, 11.7% and in unorganized sector 25.0%,
8.3%, 58.3%, 8.3% farmers were having cow, cow and fish, cow and crop, cow-crop
and fish units respectively (Table-2).

4.4 Sale of milk

Out of the 120 farmers surveyed 49 were supplying direct to consumers, 40 were
supplying to traders and 31 were supplying to milk societies (Table-3).

In organized sector significantly higher no. of farmers were supplying milk to milk
society (45.0%) then in unorganized sector (6.7%) so in unorganized sector
significantly higher percentage of farmers were supplying milk to consumers and
traders than milk society (Table-3).

23
Over all 24.2% of the farmers were keeping only cows, 7.5% cow + fish, 58.3% were
cow + crop and 10.0% were having cow, crop and fish unit. There was no significant
difference with in the farmers (Table-2).

Significantly higher percentage of small farmers (60%) were supplying milk directly to
consumers than medium and large farmers and significantly lower percentage (25.0%
and 15.0%) of the small farmers were supplying milk to trader and milk society
respectively than directly consumers (Table5).

4.5 Number of farmers preparing different products

Table 6: Organised farmers

Type of farmers Raw milk Paneer Chenna Khoa Dahi Ghee

Small (20) 17 2 1 - - -

Medium (20) 16 2 1 - - 1

Large (20) 10 4 3 1 1 1

Total 8 5 1 1 2

Table 7: Unorganized farmers

Type of farmers Raw milk Paneer Chenna Khoa Dahi Ghee

Small (20) 10 3 2 - - -

Medium (20) 14 3 2 - - 1

Large (20) 10 5 3 - 1 1

Total 11 7 - 1 2

24
4.6 Preparation of milk products

Table 8: Production cost, cost of milk products in villages, profit/litre of milk

Quantity of Expenditure Selling Profit per Profit

milk required for preparing cost in kg per litre
Types of for 1kg of 1kg product villages product milk
product product (Rs) (Rs) (Rs) (Rs)

Chenna 4 litres Milk – 120.0 160.00 30.00 7.50

Fuel – 10.00

Paneer 5 litres Milk – 150.0 180.00 20.00 4.00

Fuel – 10.0

Dahi 1 litre 250 gm Milk – 37.50 60.00 20.00 16.00

Misc. ex-2.50

Ghee 18 litres Milk – 540.0 750.00 180.00 10.00

Fuel – 30.00

Khoa 5 litres Milk – 150.0 300.00 120.00 24.00

Fuel – 30.00

Cost of milk in villages of coastal Odisha is Rs 30.00 per litre. OMFED was paying
on Fat and SNF basis, the average payment per litre milk was Rs.26.00 per but
OMFED was supplying cattle feed and other facilities on subsidized cost.

For making 1 kg of chenna 4 litres milk was required Expenditure per 1 kg Chenna
was Rs 120.00 towards milk and Rs 10.00 for miscellaneous expenditure. So total
expenditure per 1 kg Chenna was Rs 130. Cost of Chenna in village of coastal Odisha
was Rs 160.00 per kg. So, profit per kg Khoa is Rs 30 and per litre milk is Rs 7.50.

For preparation of 1 kg Paneer 5 litre milk was required. Expenditure was Rs 160.00.
So profit in 1 kg Paneer was Rs 20.00, and profit per litre milk was Rs 4.00.

25
For preparation of 1 litre Dahi, 1 litre 250ml milk was required. So expenditure is Rs
40.00 per litre Dahi. Sale price of Dahi in coastal Odisha was Rs 60.00. So profit per
litre Dahi was Rs 20.00. Profit per litre milk was Rs 16.00.

For preparation of 1 kg Ghee 18 litres of milk was required. So expenditure was Rs

570.00. Cost of Ghee per litre in villages of coastal districts was Rs 750.00. So profit
per litre of milk in case of Ghee was Rs 10.00.

For preparation of 1kg of Khoa 5 litres milk was required. Expenditure was Rs 180.00
for preparation of 1kg of Khoa. Cost of Khoa in villages of coastal districts was Rs
300.00. So profit per kg of Khoa was Rs 120.00 and profit per litre of milk was Rs
24.00.

The opinion of 100% farmers was that higher prices can be fetched if milk and milk
products will be sold directly in cities and towns and by preparation of sweets.

Highest extra profit was obtained from Khoa making (Rs 24.00), then Dahi making.

4.7 Value Chain Management

4.7.1 Meaning of value chain management

The term value chain was used by Michael Porter in his book “Competitive
Advantage: creating and sustaining superior performance” (1985). The value chain
analysis describes the activities the organization performs and links them to the
organization competitive position. The Value is something for which a customer is
paying money. Any company must have to deliver value to order to sustain in this
competitive market.

Value Chain is a set of activities that a firm operating in a specific industry performs in
order to deliver a valuable product or service for the market. According to IfM,
Cambridge, “The idea of the value chain is based on the process view of organisations,
the idea of seeing a manufacturing (or service) organization as a system, made up of
subsystems each with inputs, transformation processes and outputs. Inputs,
transformation processes, and outputs involve the acquisition and consumption of

26
resources- money, labour, materials, equipment, buildings, land, administration and
management. How value chain activities are carried out determines costs and effects
profits”. In other words Value Chain Management is a process of creating a value in
each phase right from the processing of materials, production, marketing, distribution
and retailing. Value chain analysis describes the activities within and around the
organization, and relates them to analysis of the competitive strength of the
organization. Therefore, it evaluates which value each particular activity adds to the
organization product and services. This idea was built upon the insight that an
organization is more than a random compilation of machinery, equipment, people and
money. Only if these things are arranged into systems and systematic activities it will
become possible to produce something for which customers are willing to pay a price.
Porter argues that the ability to perform particular activities and to manage the linkages
between these activities is a source of competitive advantage.

4.8 Value chain of dairy farming

4.8.1 Nutritional value of dairy

Milk contains several vitamins and minerals that are essential to health. The United
States Department of Agriculture (USDA) states that those who consume milk and
milk products have a reduced risk of lower bone mass throughout life. Along with
calcium, which is responsible for the bone mass benefits, there are other vitamins and
minerals that benefit the body, calcium, potassium and minerals.

Basic model of value chain analysis Porter distinguishes between primary activities
and support activities. Primary activities are directly concerned with the creation or
delivery of a product or survive. They can be grouped into five main areas: inbound
logistics, operations, outbound logistics, marketing and sales, and service. Each of
these primary activities is linked to support activities which help to improve their
effectiveness or efficiency. There are four main areas of support activities:
procurement, technology development (including R&D), human resource
management, and infrastructure (systems for planning, finance, quality, information
management etc.)

27
4.9 The basic model of Porters Value Chain is as follows

Basic Model of Value Chain Michael Porter (1985). The term, Margin implies that
organization realize a profit margin that depends on their ability to manage the
linkages between all activities in the value chain. In other words, the organization is
able to deliver a product / service for which the customer is willing to pay more than
the sum of the costs of all activities in the value chain. In this book, Porter said a
business’s activities could be split into two categories: primary activities and support
activities.

4.9.1 Primary activities

• Inbound logistics: This refers to everything involved in receiving, storing and

distributing the raw materials used in the production process.
• Operations: This is the stage where raw products are turned into the final
product.

28
• Marketing and sales: This stage involves activities like advertising,
promotions, sales-force organization, selecting distribution channels, pricing,
and managing customer relationships of the final product to ensure it is targeted
to the correct consumer groups.
• Service: This refers to the activities that are needed to maintain the product’s
performance after it has been produced. This stage includes things like
installation, training, maintenance, repair, warranty and after-sales services.

4.9.2 The support activities help the primary functions and comprise

• Procurement: This is how the raw materials for the product are obtained.
• Technology development: Technology can be used across the board in the
development of a product, including in the research and development stage,
in how new products are developed and designed, and process automation.
• Human resource management: These are the activities involved in hiring
and retaining the proper employees to help design, build and market the
product.
• Firm infrastructure: This refers to an organization’s structure and its
management, planning, accounting, finance and quality-control
mechanisms.

4.10 Actors involved in dairy value chain and their functions

The farmers we support are part of the Dairy Value Chain which can be divided
into:

• Farm input suppliers

• Milk producers
• Milk processors
• Traders
• Retailers
• Final consumers

29
 • Farm input suppliers: It is the initial part of the produce, from which
place it begins. Input suppliers play a vital role in the production of
milk though input of necessary feed, vaccination and other required
materials.
• Milk producers: This is the core of a dairy farmer’s work; managing
the herd and producing the milk. This is also where we support the
dairy value chain most. Our products and services help farmers milk
their herd and ensure the well-being of the animals. We make it
possible to increase the animals’ lifetime daily yields. All our products
and services are aimed at helping farmers become more efficient and do
more with less.
• Milk processors: This is where the dairies and co-operatives collect
and convert the raw milk into a wide variety of dairy products.
• Traders: Those who collect milk from village and supply it to town
and cities.
• Retailers: From this part, the dairy products are distributed to retailers
so that they can reach consumers.
• Final consumers: Consumers are the aim of this chain from the
retailers to the kitchen table. The final part of the chain is the
consumption of the dairy product.

4.11 Channel through which milk and milk products pass

Producers → Consumers

Producers → Retailers → Consumers

Producers → Wholesalers → Consumers

Producers → Wholesalers → Retailers → Consumers

Producers → Local collectors → Retailers → Consumers

Producers → Local collectors → Consumers

30
4.12 Value chain components

Value chain actors Function performed by actors

Input suppliers • Improved dairy cows
• Improved feed
• Veterinary Services
• Credit Services
Milk producers • Feeding
• Milking
• Watering
• Vaccinating
• Cleaning
Local collectors • Purchasing of dairy products
• Packaging
• Marketing
Wholesalers • Purchasing od dairy products
• Packaging
• Storing
• Cleaning
• Transporting and marketing
Milk processors • Production of various dairy
products
• Processing
• Packaging
• Distribution
Retailers • Purchasing
• Packing
• Cleaning
• Sales to consumer

31
 SUMMARY AND CONCLUSION

A survey with a structured questionnaire was conducted in village of three of districts

of Odisha (Puri, Khordha and Cuttack). Purpose was to find out the problems in
different stages of management of dairy unit and to know at which point there was
more expenditure and how the value of milk, milk product, can be increased. The dairy
units which are in villages where milk cooperative societies were operating taken
under organized sector and the dairy units of villages where milk cooperative societies
were not operating were taken under unorganized sector.

The overall average daily milk yield per cow was observed to be 6.25 litres. In
organized sector the milk yield was 6.32 litres and in unorganized sector the milk yield
was 6.18 litres. In organized sector it was higher than that of unorganized sector. This
may be due to some knowledge of management practices from milk co operative in
organized sector. Mean milk yield / cow / day was observed to be 5.43, 6.58 and 6.75
litres in small farmer, medium farmers and large farmers respectively. The milk yield
was found higher in case of medium farmers and large farmers than small farmers.
This may be due to less resources, less knowledge on dairy farm management of small
farmers compared to other two groups. Mean milk yield / cow / day of a lactation was
observed to be 6.17, 5.48, 6.19 and 7.17 litres in farmers rearing only cows, cow +
fishery, cow + crop, cow + crop + fishery respectively. There was no significance
difference between the groups.

The mean calving interval of cows of all the farmers was found to be 16 months. The
mean calving interval in organized sector is 15 months and in unorganized sectors is
17.22 months. In unorganized sector it was significantly than in organized sector.
Calving interval was 68 days higher in unorganized sector. This caused longer dry
period hence less milk yield. This might be due to reproductive health care that has
been received by the dairy farmers from milk cooperative. The mean calving interval
of cows is 16.6 months in small farmers, 15.48 months and 14.75 months in medium
and large farmers respectively. In case of large farmers the calving intervals is
significantly lower than the two groups. This might be due to better care and
management by the large farmers. The mean of calving interval of cows of farmers
32
group directly supplying milk to consumers, supplying to traders, supplying to milk
producers cooperative society was 17.2, 16.4, 15.9 months respectively. There was no
significant difference between the groups.

Out of the 120 dairy farmers those were surveyed 29 (24.2%) were rearing
only cows. Cost of milk in villages of coastal areas of Odisha is Rs. 38.00 per litre.
OMFED was paying fat and SNF basis, the average payment per litre milk was Rs
34.00 per litre but OMFED was supplying cattle feed and other facilities on subsidized
cost.

Average profit per litre of milk was Rs.6.41, Rs 10.22, and Rs 9.12 in case of farmers
feeding only concentrate, concentrate with grazing / feeding cut common grass, and
concentrate with fodder cultivation respectively. Concentrate rate was high (Rs 25.00
to Rs 27.00 per kg.), by feeding only concentrate feed there was less profit by fodder
cultivation there was less profit by fodder cultivation there was good milk production
but there is considerable expenditure. In case of feeding common grasses in good
quantity or grazing there was no or very less expenditure and more profit.

The opinion of 100% farmers was that higher prices can be fetched if milk and milk
products will be sold directly in cities and towns and by preparation of sweets.

The research study entitled “Value Chain of Dairy Farming in the coastal districts of
Odisha” was conducted in some of the areas of Khordha, Cuttack, and Puri and Jajpur
districts. The dairy farmers of all groups small, marginal and large, the data were
collected individually from every group of the dairy farmers and entrepreneurs. In this
project, an attempt has been made to analyze the dairy farming. With focus on
different parameters of dairy farming and production of milk and milk products, value
addition of milk, the main objectives were:

• To identify ways to reduce the cost of production and improve realization in

dairy farming.
• To find the ways to control points to increase profit margin.
• To analyze the value chain in different production systems.

33
All together 120 respondents, from those 40 were from Cuttack district, 40 were
from Khordha district and 40 were from Puri district. The brief findings are given
below-

OMFED is having milk cooperative societies in village level. The member of the
cooperative societies sale milk to the milk cooperative societies. The farmers are
paid at 10 days interval, provided with technical guidance and also some medicines
and vaccines. The paid service amount is deducted from the payment for flour
milk. The milk van collects milk from milk societies and takes the milk to district
level milk union and then taken to processing plants.

Private milk processing plant “Milk Mantra” has been established at Gop, Puri. Its
brand known as Milky Moo. The company is collecting milk from the dairy
farmers and after processing sold in different areas.

5.1 Conclusion

Many times there is crop loss of farmers due to heavy rain, irregular rain, no rain.
Farmers when unable to bear the loss, sometimes committing suicide, so they
should have alternative livelihood option at that time. Dairy farmers definitely save
the farmers at that time.

It was observed in the finding that to make dairy farming profitable, cost of
production can be reduced by cultivating green fodder or feeding common grasses
cut from fields. Along with concentrate feeding calves will born at right interval if
proper reproductive management is done. So that there will be dry period of lesser
duration and more milk production. By keeping cows with crop production and
fishery there was more profit of the farmer.

Value addition of milk by preparation and sale of milk products of different types
increased the profit margin from dairy farming.

Actually due to very less fodder cultivation, high cost of cattle feed and low sale
price of milk, the dairy farmers who are doing adulteration of milk or milk
products are getting good margin and those utilizing family labor they are saving

34
 that cost and getting good return. Those dairy farmers with hired laborers and
selling milk without adulteration, it is highly important to properly manage in each
step of production for operational sustainability or operation at low cost and proper
marketing of milk and milk products for financial sustainability.

5.2 Problems in value chain analysis of dairy farming

• Lack of modern milk value addition experience

• Poor milk and milk products storage facility
• Shortage of improved feeds
• High rate of interest on loan finance
• Lack of gender equality
• Lack of formal marketing system
• Delayed payments of dues
• High production costs
• Milk price is not fixed
• Inadequate access to credit and insurance services

5.3 Suggestions

• The subsidies in dairy farming should be front headed.

• All the farmers should be given marketing training .
• The government should decrease interest rate on dairy farming loan.
• Milk societies should increase the price of milk, the return dairy farmers get
was so less.

35
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adoption of improved cattle management practices in arid Rajasthan, Rajasthan
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N. Rangaswamy and J.P. Dhaka, “Milk Procurement Cost for co-operative and Private
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ii
 ANNEXURE

VALUE CHAIN ANALYSIS OF DAIRY FARMING IN THE

COASTAL DISTRICTS OF ODISHA

BASIC HOUSEHOLD INFORMATION

1. Respondents’s Name: ……………………………………………..

2. Gender of the respondent: (a) Male (b)Female
3. Age of the respondent: …………………………………………....years old
4. Marital status:- (a) Married (b) Un married
5. Farm address:
a) District :
b) Block :
c) G.P :
d) Village:
6. Respondent’s position in the household (with respect to the head):
a) Husband (b) Wife (c) Daughter (d) Son
e) Relative living in a house (f) Farm labourer (g) Others
7. Respondent’s educational background-
a) Uneducated b) 0-5th class c)8th – 10th class d) 11th – 12th class
f) Degree g)PG and above
8. No. of members in family – (a) less than 4 b) 4 c) 5 d) 6 or more
9. Owner’s occupation
a) Farmer b) Govt. Employee c) Private job d) Businessman

e) Wage labourer f) Other ……………

10. Nature of water sources available

11. Present status ( in nos.)

I
 Types of animals In nos.
Cows
Heifer
Calves
Others

12. Sources of raw materials / Procurement of cows-

a) Local
b) Outsides
13. Floor space available –
14. Average Income from the firm _____________________ per year
15. Animal inventory and initial investment

Particulars Types of animals

Cows Calves Heifers others

Inventory (current
status)

Types of ownership

Year started

Initial no of heads

Cost per head when

started

Total cost of initial

stocks

II
Sources of initial
investment

16. Land holding size

17. Grazing practiced or not?
18. Area under fodder cultivation

Labour use in the dairy farm ( Employment generation)

19. How many no of labour engaged :

Self Technical Non- Women Men
technical

20. Labour wages/ day_________________(In Rs.)

21. Financial aspects:

Sources Amount Interest rate Time period

Own

Bank

Trader

Cooperatives

Microfinance

Family/ friends

22. Do you participate in dairy development subsector? (a) yes, (b) no

23. What is your cow average number of lactation per month?
24. How many litres of milk your cow produces daily?
25. Which breed do you prefer
a) Local breed
b) b) crossbreed

III
 c) c)exotic
26. If you prefer particular breed. Why?
A) High yield
b) Relatively larger body size
c) Better draft power
d) All
27. Calving interval of each cow
a) Cow No.1
b) Cow No.2
c) Cow No.3
d) Cow No.4
28. What are the constraints in dairying practices?
29. What are the opportunities to enter dairy production subsector?
30. Do you supply milk to the market?
31. What is the distance of the market?
32. What is the price you received for your produce
33. Are you satisfied with the price you received Yes/ No
If No, reasons ___________________________
34. How you marketing your produce
Individually ______
In group _________
35. Channels of sales of products?

36. Places of sales of the products and cost increased by change the place?

37. What mode of payment do you use to receive your milk sell price?

a) Immediate cash payment

b) Future payment
c) Immediate in kind payment
d) Other (specify)________________
38. When you are selling your milk, who decides the price?
a) Myself
b) Retailers
c) Bargaining
d) Collectors
e) Wholesalers
f) Processors
g) Brokers
h) Other (specify)

IV
39. Do you have access of milk market information where and to whom to sell?
a) Yes b) No
40. Is there a possibility to get market access for your milk?
a) Yes b) No
41. Do you further process fresh milk into other milk products?
a) Yes b) No

SUGGESTION AND STRATEGIES

1. ____________________________________________________________
_____
2. ____________________________________________________________
_____
3. ____________________________________________________________
_____
4. ____________________________________________________________
_____
5. ____________________________________________________________
_____

(SIGNATURE OF THE FARMER )

V
PHOTO GALLERY

VI
VII
 Ankita Acharya 202121213

Submission date: 12-Dec-2022 07:57AM (UTC-0700)

Submission ID: 1979141676
File name: RE-2022-63097.docx (159.83K)
Word count: 9172
Character count: 49162
RE-2022-63097-plag-report
ORIGINALITY REPORT

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SIMILARITY INDEX
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INTERNET SOURCES
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