1 AIT Asian Institute of Technology

An elaborative study of milk supply chain patterns in Allahabad district, India

AuthorAhmad, Ujair
Subject(s)Milk--India--Allahabad
Business logistics--India--Allahabad

NoteA thesis submitted in partial fulfilment of the requirements for the degree of Master of Agribusiness Management, School of Environment, Resources and Development
PublisherAsian Institute of Technology
AbstractIndia is among the major milk producing countries around the globe. The current level of milk manufacture is valued as 94.5 million tons per annum. The huge livestock populace is fed mainly on the agricultural residues. Their grazing is in the mutual assets containing backyard and underground rooms. In recent years, the forest region was a key basis of grazing. It is not available to most of the dairy animal breeders’ particularly people without land holding. Therefore, the accessible fodder resources are shorter than the total dietary needs. Allahabad is a major city in the North Central part of Indian subcontinent and dairy farming is one of the major occupations of the resident of the region apart from agriculture. Farmers generally prefer buffaloes over cows due to its high fat content milk which fetches a better price. There are a number of marketing channels of milk supply in the region and out of those four channels were studied and farmer’s net income, marketing cost, marketing margins and producer’s share in consumer’s price was calculated for all the four channels. The production cost of unit liter of milk was calculated to be 14.68±1.22 INR out of which major share was of variable costs. The selling price of milk for farmers was highest in Channel I (Producer-Consumer) and lowest in Channel IV (Producer-Private Dairy-Milk Booths-Consumer), the values to be 32.27±1.11 and 25.50±0.58 INR/ltr respectively. As a result of this consumers had to pay the highest price for unit liter of milk in Channel IV and lowest in Channel I. For Channel I the Consumer’s price was 32.27±1.11 and it was 40.75±0.50 INR/ltr respectively. The highest marketing cost as well as the marketing margin was reported in Channel IV. Net income of farmer was highest in Channel I (17.55±1.77 INR/ltr) as the milk was sold directly to the consumers and there were no intermediaries involved in the channel and the lowest net income to farmers was reported in Channel IV. Marketing efficiency (ME) of Channel I was highest (12.87±1.74) and was lowest (5.03±0.59) and for Channel II (Producer-Milkmen-Consumer) and Channel III (Producer- Vendors-Consumer), it was reported to be 7.89±1.29 and 6.60±0.94 respectively. All the values of marketing efficiency differed significantly when tested statistically. Producer’s share in Consumer’s price (PSCP) was also highest in Channel I (100%), while it was lowest in Channel IV (62.58±1.55 %). The PSCP values of Channel II and Channel III was nearly comparable (76.93±2.18 and 77.35±1.62 % respectively). For farmers as well as the consumers marketing channel I is the best channel. Owing to increased number of intermediaries the marketing margin increased as well as the marketing margin of each of the intermediary and this directly increased the consumer’s price.
Year2013
TypeThesis
SchoolSchool of Environment, Resources, and Development (SERD)
DepartmentDepartment of Food, Agriculture and Natural Resources (Former title: Department of Food Agriculture, and BioResources (DFAB))
Academic Program/FoSAgribusiness Management (AB)
Chairperson(s)Soni, Peeyush;
Examination Committee(s)Shivakoti, Ganesh P.;Datt, Avishek;


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