A STUDY ON PRODUCTIVITY LINKED MARKET MECHANISM IN COW FARMING A DETAILD STUDY ABOUT 5 DIFFERENT HOUSEHOLD FROM 5 DIFFERENTWARD Project

Report
Submitted in partial fulfilment of the requirements of the degree of
MASTER OF BUSINESS ADMINISTRATION KANNUR UNIVERSITY BY RAMEES THANAKKARAMMAL (B0GMBA1064) UNDER THE GUIDANCE OF Mrs.LAKSHMI SAJU

CHINTECH SCHOOL OF MANAGEMENT STUDIES CHINMAYA INSTITUTE OF TECHNOLOGY KANNUR 2011

CERTIFICATE
This is to certify that the project entitled “PRODUCTIVITY LINKED MARKET MECHANISM IN COWFARMING” is a bona fide record of work done by Ramees Thanakkarammal, 3rd semester MBA and submitted in partial fulfilment of the requirement for the degree of MASTER OF BUSINESS ADMINISTRATION, of Kannur University under my supervision.

Place: Kannur Date:

Mrs Lakshmi Saju (Supervising guide)

CERTIFICATE
This is to certify that the project entitled “PRODUCTIVITY LINKED MARKET MECHANISM IN COWFARMING” is a bona fide record of work done by Ramees Thanakkarammal, 3rd semester MBA and submitted in partial fulfilment of the requirement for the degree of MASTER OF BUSINESS ADMINISTRATION, of Kannur University under my supervision.

Place: Kannur Date:

Dr. K.K Falgunan (Principal)

DECLARATION
I hereby, declare that the Project report entitled “PRODUCTIVITY LINKED MARKET MECHANISM IN COWFARMING” is my original work and it was under the supervision of Mrs.Lakshmi Saju faculty of Chinmaya Institute of Technology, Kannur. I also declare that this report has not been submitted by me fully or partially for the award of any degree, diploma, or any other similar title or recognition before.

Place: Kannur Date :

RAMEES THANAKKARAMMAL 3rd Semester MBA

ACKNOWLEDGEMENT This project represents the collective efforts of so many individual and its May sincere gratitude to each one of them without whose support and helps this work would have been impossible. .K.Falgunan for the keen interest and guidance throughout the course of the project. I take the privilege to extend my hearty thanks to the faculty members of School of management studies.K. Chinmaya Institute of Technology. I wish place a deep sense of gratitude to our Principal. I would like to express my profound gratitude to all those who have been instrumental in the preparation of the project report. Dr. I would also express my sincere gratitude to cow farmers in Kuthuparamba and Chittaripparamba for providing necessary information for my study. my dear parents. Faculty. My heartfelt thanks to my guide Ms. friends for their support extended to me for the completion of the project. for her immense and valuable guidance which has resulted in the work taking the present form.Jisha Vasanthraj. my dear friends. For the valuable suggestion throughout the project duration. he had showered upon me throughout my life. At last but never least. My first and foremost acknowledgement to God Almighty for the eternal love and guidance and wonderful blessings.Department of MBA.

Chapter III-Findings.Introduction & Design of the Study • Introduction • Statement of the problem • Objectives of the Study • Methodology and Data Collection • Limitations of study • Chapter Scheme 2. Chapter II. Suggestions and Conclusion Bibliography Appendix .CONTENTS 1. Chapter I.Data analysis and interpretation 3.

CHAPTER-1 INTRODUCTION AND DESIGN OF THE STUDY .

It is the most important sector of the Indian economy particularly in poverty alleviation and employment generation. Dairying is an important source of subsidiary income to small/marginal farmers and agricultural labourers. cheese. milk has been identified as an integral part of food for centuries. Consumption of milk and milk products is deeply rooted in our tradition and it is an essential item during rituals.1.1 INTRODUCTION Dairy products are basic products of daily nutrition almost all around the world. India ranks next only to USA & USSR in world milk production. About 70 million dairy farmers produce more than 50 per cent of the milk in the country. At global level. in . Agriculture along with animal husbandry has been and will continue to be the lifeline of Indian economy. Khoya. flavoured milk etc. Paneer. cream. Milk and milk products are one of the important components of the Indian food industry. This sector contributes close to one-fourth of India’s National income and total work force engaged in agriculture is about 60 per cent. There are a number of dairy products like butter. Dairy products are basically based on Milk. Ghee and butter are used for ice-cream manufacture. India is the largest and one of the most economical milk producers in the world (estimated production of 105 MT). More than 500 million tons of cow’s milk is produced per year in the world. as cooking fat. The success of White Revolution in India has largely been written by millions of small holders. festivals and other auspicious events. There is always a greater demand for milk and dairy products among people.

there is a tremendous scope/potential for increasing the milk production. NABARD is an apex institution for all matters relating to policy.6 million and 42. The nineth plan outlay on Animal Husbandry and Dairying was Rs. At this production. For obtaining bank loan.6 million metric tonnes. Paneer is consumed directly and in hotels and restaurants. respectively (1992 census) Central and State Governments are giving considerable financial assistance for creating infrastructure facilities for milk production. consistency in quality and reasonable pricing arer all essential to build up a strong market and brand equity. the per capita availability was to be 226 grams per day against the minimum requirement of 250 grams per day as recommended by ICMR.2 Loan from banks with refinance facility from NABARD is available for starting dairy farming. Thus.4 million. Financial Assistance Available from Banks/NABARD for Dairy Farming. 2345 crores. the farmers should apply to the nearest branch of a commercial or co-operative Bank in their area in the prescribed application form which is available in the branches of financing banks. There is huge market for Indian milk products. It promotes development through formulation and appraisal of projects through a well organised Technical Services Department at the Head Office and Technical Cells at each of the Regional Offices. Scope for Dairy Farming and its National Importance. 3. planning and operation in the field of agricultural credit. The Technical Officer attached to or the Manager of the bank can help/give guidance to the farmers in preparing the project report to obtain bank loan. Key concern for setting up a dairy plant would be regular and timely supply to the market. It serves as an apex refinancing agency for the institutions providing investment and production credit. The population of breeding cows and buffaloes in milk over 3 years of age was 62. . The total milk production in the country for the year 2001-02 was estimated at 84.the confectionery industry etc.

digging of well. Facilities such as cost of land development. essential servants' quarters.For dairy schemes with very large outlays. Avoid too much agitation of milk during transit. construction of sheds. . its cost can be treated as party's margin upto 10% of the total cost of project. electricity connections. However. Wash milk pails/cans/utensils thoroughly with detergent and finally rinse with chloride solution. Transport the milk during cool hours of the day. godown. detailed reports will have to be prepared. The items of finance would include capital asset items such as purchase of milch animals. purchase of equipments etc. Cost of land is not considered for loan. Marketing of Milk Marketing milk immediately after it is drawn keeping the time between production and marketing of the milk to the minimum. transport vehicle. Use clean utensils and handle milk in hygienic way. if land is purchased for setting up a dairy farm. commissioning of diesel engine/pumpset. fencing. The feeding cost during the initial period of one/two months is capitalised and given as term loan. milk processing facilities etc. can be considered for loan.

3 OBJECTIVE OF THE STUDY: 1. 2.8 Ward No.10 Ward No. To find out the market mechanism used in marketing milk.13 Ward No. 3. To have an understanding of the milk supply chain 1. To study about the cow farming in different household and their profitability. To understand the satisfaction level of the households and milk societies. For the purpose of this study following wards were selected for study • • • • • Ward No. So I conduct an study about “productivity linked market mechanism in cow farming” 1. To understand the revenue generated by them through this business. Agriculture is a seasonal income for them so cow farming provide subsidiary income for them. ➢ Primary Sources ➢ Secondary Sources .1.11 Ward No. 4.4 METHODOLOGY & DATA COLLECTION The sampling Method Non random sampling method was used for the study.5 Sources of data For the successful completion of the present study.. namely. the data required for analysis had been collected from two sources. 5.2 STATEMENT OF THE PROBLEM Cow farming is an important source of income for small scale farmers.

6 CHAPTER SCHEME • 1st chapter deals with introduction. Tools and techniques used for analysis: ➢ Tables ➢ Charts ➢ Diagrams 1. there is certain chance of incorrectness of data. suggestions and conclusion. 1. statement of problem. The data were collected mainly through Observation. documents. Apart from these houses the data were collected from 5 co-operative Milk societies.Primary data were collected from the 25 respondents from 25 Households units of 5 different wards. etc. Therefore.  As they are giving information without any verification of records. . Secondary data were collected mainly from the past records. • • 2nd chapter gives analysis and interpretation of primary data collected.5 LIMITATIONS OF STUDY The limitations of this study were:  The topic selected was very vast and requires much more time for the study. methodology & data collection and limitation of the study objective. Direct Interview and Questionnaire. 3rd chapter deals with findings. objectives of the study. website. time was a major limiting factor.

CHAPTER-2 DATA ANALYSIS AND INTERPRETATION .

Of Cows Male 2 13 15 4 Graph no. Gopi. No.2(1) 2 4 Sources: Primary data FEMALE 12 Farmers Age and Number of cows owned by them: Ward 10 .V OF Mukundan Gangan Majeed INFERENCE From the above graph we can infer that out of 25 cattle farmers 13 cattle farmers are male.GENDER: Table & Name Gender Rafeek NO.FARMERS K.

Of Cows 1 4 2 1 1 Table & Graph no. 10 is having more cows than other cattle farmers of ward 10.Name Madhavi Bhaskaran.V Gopi of ward no. C Devaki Rajappan Aamina A.2(3) .K INFERENCE No.2(2) Sources: Primary data From the above graph we can interpret that from K. Ward 13 Table & Graph no.

Sources: Primary data INFERENCE From the above graph we can interpret that Bhaskaran. Ward 8 .P Sugandhi Fathima Age 65 55 60 53 62 No.M Maimoonath Mariyu A. Name Ananthan .2(4) Sources: Primary data INFERENCE From the above graph we can interpret that out of 5 farmers 4 of them having 2 cows. Of Cows 2 2 1 2 2 Ward 11: Table & Graph no.C is having 4 cows.

C Antony. Of Cows 2 1 1 2 2 1 4 3 3 2 Table & Graph no.2(5) Sources: Primary data Inference: From the above table we can see that Mariyath.Name Name Thomas T Mariyu. M Narayani Safiya .K is the largest cattle farmer in this ward. Of Cows No.S Sharadha Mariyath Kmaster Bhaskaran Vijayan Kurinjootty No. . Ward 5 : .

2(6) Sources: Primary data Inference From the above table we can interpret that Bhaskaran Master is having more cows compared to others.Table & Graph no.2(7) . He is the biggest farmer compared to others in the ward. Age Group of Farmers: 20&BELOW 20-30 NO OF FARMER S ----30-40 --40-50 1 50-60 8 60-70 15 70& ABOVE 1 Table & Graph no.

Of Cows in households NO.OF COWS 0-2 2-3 11 3-4 2 4-5 4 5-6 --- 6&ABOVE 1 NO. OF 7 FARMERS ( In 25) Table & Graph no.Sources: Primary data Inference: From the above table we can see that 60% of farmers age in between 60-70.2(8) Sources: Primary data Inference: From the table it can be shown that majority of the 11 farmers having 2-3 cows in households. No. Most of the youngsters are not interested cow farming. .

STARTED CATTLE REARING Year House Hold (In 25) 0-5 5 .10 3-4 12 .15 15-20 20 & Above 4 4 8 5 4 Table & Graph no.2(9) Sources: Primary data Inference This chart reveals that around 8 households started cow farming 5-10 years ago. of cows Ltr of Milk 1-2 4 -8 2-3 8 . No.25 6 And Above 30 & Above Milk production in households/litre/day: Table & Graph no.10 10 .16 4-5 16.2(10) .20 5.6 20 .

2(11) Sources: Primary data Inference From the above graph it is clear that around 65% of households are distributing milk to both households and society. Milk society only House hold only Both other No. TYPES OF COW . of House Hold 3 4 15 3 Distribution of Milk by the households : Table & Graph no.Sources: Primary data Inference: From the above chart it is cleared that hybrid cows are producing more milk than cross breed.

V Gopi Mukundan Initial Investment 25000 100000 20000 Sources: Primary data Inference The above graph states Gangan 15000 that majority of Majeed 30000 households are using cross breed.2(12) Name Rafeek K.F 19 JERCY 10 AUSTRALIAN 1 OTHERS - Table & Graph no.TYPES NO. Initial investment of Farmers Ward 10 . Because it is very less purchase cost compared to other breed. OF FARMERS COMMON 36 H.

Ward 13 . His initial investment is 100000. C Devaki Rajappan Aamina A.K Investment 5000 50000 2000 8000 4000 Sources: Primary data INFERENCE From the above table we can interpret that K.He started cattle rearing with 8 cows.V Gopi of ward-10 has invested more money than other families in the ward.2(13) Name Madhavi Bhaskaran. Now he has 15 cows.Table & Graph no.

P Sugandhi Fathima INFERENCE Investment 2500 8000 5000 4500 6000 From the above table we can interpret that Bhaskaran.Table & Graph no.C ward-13 has invested more money than other family. Now he has 5 cows.2(14) Sources: Primary data Name Ananthan Maimoonath Mariyu A.He invested Rs. Ward 11 .50000 in the initial stage.

2(15) Sources: Primary data Name Mariyu. Ward 8 . T Narayani Safiya Mariyath K Vijayan INFERENCE Investment 5000 4000 3500 8000 6500 From the above table we can interpret that Maimoonath of ward-11 has invested more money than other families in the ward.Table & Graph no.

S Bhaskaran master Kurinjootty Investment 15000 8000 6000 25000 20000 From the above table we can interpret that Mariyath. M Sharadha .C Antony.Table & Graph no.2(17) . Ward 5 Table & Graph no.2(16) Sources: Primary data INFERENCE Name Thomas .K of ward-8 has invested more money than other families in the ward.

.Sources: Primary data INFERENCE From the above table we can interpret that Bhaskaran Master of ward-5 has invested more money than other families in the ward.

M Sugandhi Antony. T Mariyu A. M Rajappan Maimoonath Mariyu. C Majeed Kurinjootty Mukundan Bhaskaran master Thomas . of Milk get/day 100 30 28 24 20 20 17 16 15 14 11 10 10 10 9 8 8 7 Ward 10 13 10 5 10 5 5 10 10 8 8 11 11 5 13 11 8 11 .P Ltr.Litres of Milk get Name K.V Gopi Bhaskaran.C Gangan Rafeek Mariyath K Vijayan Ananthan .

.

2(16) Sources: Primary data INFERENCE From the above graph we can interpret that K. .Litter of Milk get per day Graph no. Becaus he is having many hybrid cows COST INVOLVED TO MAINTAINING A COW PER DAY COST PER DAY IN (RS) 0-100 100-200 200-300 300-400 400-500 500 & ABOVE NO OF FARMERS 1 5 11 5 2 1 Table & Graph no.2(19) Sources: Primary data Inference: From the table we can clearly understand that most of the farmers maintenances costs are in between Rs 200-300.V Gopi ward-10 is the largest supplier than others out of 25 house holds.

V Gopi 23 House Hold (In Rs) 28 Bhaskaran.2(20) Name Society (In Rs) K.Price Charged by the Customer from Society and H.H Table no.C 22 27 Gangan 21 26 Rafeek 23 26 Mariyath K 22 26 . C 22 26 Majeed 23 28 Kurinjootty 21 26 Mukundan 22 25 Bhaskaran master 23 27 Thomas .

Vijayan 23 28 Ananthan .K 23 -- Narayani 23 28 . M 22 27 Rajappan 23 29 Maimoonath -- 26 Mariyu.P -- 26 Safiya -- 25 Sharadha .M 23 -- Sugandhi 23 28 Antony. T 23 -- Mariyu A.S 23 28 Devaki 23 28 Fathima 22 28 Aamina A.

Madhavi -- 28 Price Charged by the Customer from Society and H.2(21) Sources: Primary data Inference: From the above graph we can interpret that majority of the farmers are satisfied with the price charged to house hold.OF Farmers 3 20 2 --- Table & Graph no. .H Graph no. SATISFACTION LEVEL ABOUT PRICE CHARGED TO HOUSE HOLD: SATISFACTION LEVEL HIGHLY SATISFYE D SATISFIED DISSATISFIE D HIGHLY DISSATISFIE D NO.2(20) Sources: Primary data Inference: The price charged to milk society and house holds is different. Milk supply to house hold is more profitable to the farmers.

SATISFACTION LEVEL REGARDING PRICE CHARGED TO CO-OP MILK SOCIETIES SATISFACTION LEVEL HIGHLY SATISFYED SATISFIED DISSATISFIE D HIGHLY DISSATISFIE D NO.2(22) 0 12 10 3 Sources: Primary data Inference: From the above graph we can interpret that most of the farmers are not satisfied with the price charged to Milk society. But 48% households are just satisfied with the price charged by the society. SATISFACTION LEVEL ABOUT COW FARMING SATISFACTION LEVEL HIGHLY SATISFIED SATISFIED DISSATISFIE D HIGHLY DISSATISFIE D NO OF FARERS Table & Graph no.2(23) 2 20 3 -- .OF Farmers Table & Graph no.

Details about Co-op Milk Societies . But no one is highly dissatisfied.Sources: Primary data Inference: From the above graph we can interpret that majority of the farmers are satisfied with cow farming.

D C.143. C.233. 2(24) Mananther i co-op society Chittarippar -amba co-op society Kuthuparamb a Co-op Society Kolayad co-op Society Peruva co-op society Establish ed Feb 2010 1983 1995 1999 Feb 2011 License No. D C. 193. D Members 109 326 148 93 34 Investme nt 40000 3000 9000 --- 20000 .D C 83.CO-OP MILK SOCIETIES Table No. D C.235.

of time procuring in a day Supply to Milma Local Sales 190 1000 800 700 200 60 Ltr 400 Ltr 330 Ltr 350 Ltr 61 Ltr 2 2 2 2 1 --- 150 ltr 100 ltr 230 ltr 58 ltr 55 ltr 250 ltr 210 ltr 120 3 ltr Other Sales 5 ltr --- 20 ltr --- --- . Chrg / day Milk Procure/day No.Manantheri Chittarippar co-op society -amba coop society Kuthuparamb a Co-op Society Kolayad co-op Society Peruva co-op society Maint.

Initial Investment of Co-op Societies Graph No. 2(24) Sources: Primary data Inference: From the above graph we can interpret that Manantheri Co-op Society is invested large amount compared to others. Litres of Milk Procure per day: Graph 2(25) Sources: Primary data Inference: From the above table we can interpret that Chittaripparamba Milk society procuring large litres of milk per day .

While comparing to the sales to others Kuthuparamba Society is leading with 20 litres. 2(26) Sources: Primary data Inference: From the above table we can interpret that Chittaripparamba Society is having more local sales than others. .The amount of milk selling by society Graph No. As compared to others Kolayad Co-op societies supplying more milk to Milma.

It is the less risky business activity compared to other types of agriculture Many of them is doing as a side business Compared to ordinary cows hybrid cows are more profitable. • . Youngsters where not entering into this business nowadays. Coz. SUGGESTIONS & CONCLUSION FINDINGS • • • • Compared to other agricultural activities it is more profitable.CHAPTER-3 FINDINGS. it gives more milk.

SUGGESTION • Awareness about cow farming should be made among the youngsters. Majority of the households supply their milk to both co. Provide good atmosphere to cows it increase the milk production Govt.etc…. Should provide helpful scheme for farmers.operative societies and households. Provide easily availed highbred cows also Try to reduce cost of production • • • • .• • IN cow farming there is other source of income besides from milk ghee.curd.

CONCLUSION Dairy products are basic products of daily nutrition almost all around the world.• • Provide more financial help to cow farmers. Dairying is an important source of subsidiary income to small/marginal farmers and agricultural labourers. It is mainly practised by old . This business can be proven to be very profitable if managed well. More than 500 million tons of cow’s milk is produced per year in the world. To give full attention to the cows to maximize profit. The cow farming is very closely related with nature so it gives tension free mind.

www.traditional people.com. concession in cattle feeds and many more. insurance scheme. Website: www.wikipedia. Most the householder is distributing milk to society because of main benefits like pension.com . REFERENCES  Journal of Diary Farming and milk societies.Most of the households are practising cow farming as a side business. The young generation people are not much keen to enter this sector .medwell journals.

APPENDIX Productivity linked market mechanisms QUESTIONNAIRE TO HOUSE HOLDS Name Address : : Ward Age : : .

what are the reasons 12.what are the ways ? 9.How many litres of milk will get per day 6.Which breed of cow you have 4.How many cows you have : Male : : : : : : : : : : Yes : : Milk society Female 2. How many liter of milk is being sold to milk society 14. How many litres of milk are supplying/day ? 8. Are you satisfied with the price? Highly satisfied Satisfied : : . Customers of milk Households No Both Other if any : 13.How much milk you are consuming 10.How long you have been doing cow farming? 3.How much was the initial investment 5.Sex 1. Price charged per litter to households 16.Cost involved in maintaining the cow per day 7. Price charged per litter to Society 16.Do you supply the milk regularly 11. How many litter milk sells to households per day : 15.If No.

Satisfaction Level: Highly satisfied Satisfied Dissatisfied Highly dissatisfied No comment 23.Have you availed any loan from the bank ? 24.Is there any person being employed for milking the cow.Other source of income (overall) 19. Price received per litter from milk societies : Satisfaction level: Highly satisfied Dissatisfied Satisfied Highly dissatisfied : 18.Dissatisfied Highly dissatisfied 17.If you have any value addition (Product Line): Yes No 20.If yes.What is the salary paid to him. QUESTIONNAIRE TO THE CO-OPERATIVE SOCIETY . what are the additional products 21.Are you satisfied with this business activity? Yes No 22. If yes 25.

Name of the co-operative society Address License no Date of establishment No of employees Initial investment of the society Maintenance charge of the society How do you procure milk from various households? : Quantity of milk procuring from the suppliers / day : Quantity of milk supplying to the customer / day Price of milk per litre to the suppliers Satisfaction level regarding of price Highly satisfied Highly dissatisfied satisfied : : : : : : : : : : dissatisfied .

Sign up to vote on this title
UsefulNot useful