Economic analysis of milk production for social development

In the present study, 120 milk producers from eight from from four tahsils in Amravati district was purposively selected. Out of 120 milk producers, 32 milk producers who reared improved buffaloes were selected for study. 32 milk producers had 69 improved buffaloes of different breeds. In the analysis of cost and profit, it is reflected that, out of total returns from improved buffaloes, 81.08% returns received from sale of milk only, whereas, out of total returns, receipt from the sale of milk products, value of milk for home consumption, value of milk products at home consumption, value of manures, value of empty gunny bags & value of new born heifers were calculated as 2.42%, 1.37%, 0.53%, 7.14% 0.12% & 7.32% respectively. The details in respect of percentage share to total cost about interest paid on fixed capital, taxes on cattleshed, taxes on godown, depreciation on milch animals, depreciation on cattleshed & equipments was 3.13%, 0.040%, 0.043%, 5.64%, 3.61%. It was also reflected that, out of total cost, percentage share of total cost was 12.54%. Gross return from 69 improved buffaloes was Rs. 85,89, 314, out of total returns, net returns at the total cost was Rs. 47, 67,410.01, net returns at variable cost was Rs. 52,46, 870. It was found that, B:C ratio was 1:2.24. And this firm was found to be more profitable. There is an imperative need to reduce the cost of producing green fodder, dry fodder and concentrates feeds, thereby reducing cost of milk production. The gross income and net income is always higher in improved buffalo’s milk production. From economic and social development point of view, rearing of improved buffalo was more profitable.

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Introduction

India is the world's largest producer and consumer of milk and has the world's largest dairy herd comprised of water buffalo and indigenous and crossbred cattle. The buffalo population in India was 105.3 million heads out of that 6.07 million heads were in Maharashtra. The superiority of buffalo over local cow milk in production has been proved beyond any doubt. Even the higher content of fat, protein and mineral especially calcium content of buffalo milk make it richer in nutrients vis -avis cow milk The buffalo produce on an average 1700-1900 kg of milk with 8% fat per lactation. As a subsidiary agro-based industry, dairy provide drought power and manures which augment the crop production. Milch animals are one of the solutions to solve the problems of uncertainty associated in family business. Dairy industry is one of the profitable agro-based industries which can effectively tackle the problem of unemployment in rural as well as in urban area. Dairy production can be adopted under a wide range of climatic condition and can generally be combined conveniently with other farm enterprises. The land and per capita requirement for this enterprise being not large, it ensures a regular flow of income through better production and marketing of milk and its products. India has the largest number of buffalo in the world. The buffalo, especially improved buffalo which is considered to be the backbone of Indian dairy industry, constitutes less than 40% of bovine population, but accounts for more than half of the total milk production of the country. In fact, small size milk producers produce bulk of the milk in India. India is home not only to the world famous 'Murrah" buffalo but also several others high milk producing buffalo breeds such as Jafrabadi, Nili-Ravi, Pandharpuri, Surti, and Mehsana with their unique characteristics. Milk production in India is in the hands of millions of such milk producers, who are ignorant about the economic aspect of milk production. Therefore, it is necessary to check cost, returns and profit margin in improved buffalo milk production. Hence this research study is selected to analyses the cost and profit in improved buffalo milk production to cope with the fallowing objectives as under -Objectives 1) To estimate the gross return from improved buffalo selected for study 2) To analyses the cost, per litre cost and profit in improved buffalo milk production. www.extensionjournal.com

Methodology

The detail methodology is given as under in fallowing headsa) Selection of area: For the present study, eight villages from four tahsils in Amravati district was purposively selected. b) Selection of sample: A sample of 120 milk producers (15 milk producers from eight villages) was selected.

Out of 120 milk producers, 32 milk producers who reared improved buffaloes were selected for study. 32 milk producers had 69 improved buffaloes of different breeds. c) Collection of data: For data collection, the comprehensive objectives wise questionnaire was prepared. The required information on variable cost, fixed cost, total cost, gross returns & net return was obtained by random sample technique from selected milk producers.

Results and Discussions

After the collection of data, it is tabulated as under - According to above calculations, it was clearly seen that, improved buffaloes milk production was more profitable as seen by B:C ratio 1:2.24. In an average & compared to all groups, per litre cost of milk production was found to low therefore, this business was found to be more viable.

Conclusions

This analysis is represented that, total annual gross returns made from 69 improved buffalo was Rs. 85,89,314 in which highest share was from sale of milk, it was 81.08% and remaining receipt was 11% which was made from sale of milk products, manures & new born calves etc. The total cost required for milk production from 69 improved buffaloes was as Rs. 38, 21,903 which included total variable cost and total fixed cost was respectively as 87.45% and 12.55% to the total cost. Net returns at total cost were Rs. 47, 67,410.01. Per litre cost of milk production at total cost was Rs. 12.06. And in this firm, B: C ratio was found 1:2.24. And this firm was found to be more profitable and it creates prosperity in social and economic condition of dairymen.

It is also concluded that, in respect of investment made by milk producers, highest investment was observed only in improved buffalo milk production. In case of improved buffalo milk production, B:C ratio was found 1:2.24. It was definitely higher than any other milch animals milk www.extensionjournal.com production. This study concluded that, the cost of feeds, fodder, and concentrates feeds was the most important items of the total maintenance cost of buffalo milk production.

There is an imperative need to reduce the cost of producing green fodder, dry fodder and concentrates feeds, thereby reducing cost of milk production. The gross income and net income is always higher in improved buffalo's milk production. From economic and social development point of view, rearing of improved buffalo was more profitable. The milk producers were mostly unknown about the different management practices of buffalo and non availability of labour and high cost of feeds and concentrates feeds were faced as major constraints to buffalo milk producers.

Figures and tables from the paper

Sr. No.	Particulars	Amount in Rs.	% to total cost
1	Receipt from sale of milk	69,64220	81.08
2	Receipt from sale of milk products	2,07,945	2.42
3	Value of milk for home consumption	1,18,150	1.37
4	Value of milk products at home consumption	45,570	0.53
5	Value of manures	6,13,550	7.14
6	Value of empty gunny bags	10,879	0.12
7	Value of new born heifers	6,29,000	7.32
8	Total (Except receipt from sale of milk) (Items No-2 to 7)	16,25094	18.92
9	Gross return (G.R.)	85,89,314	100.00

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Annual gross return from improved buffalo

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Sr. No.	Particulars	Amount in Rs.	Amount in Rs.
	Variable cost
1	Hired human labour	1,41, 250	3.69
2	Dry fodder	8,71,500	22.80
3	Green fodder	7,73,700	20.24
4	Medicines & vaccinations	74,800	1.95
5	Concentrates feeds ( Mineral mixture, cake etc)	6,68,020	18.00
6	Charge for grazing	80,400	2.10
7	Water charges	1,80,200	4.71
8	Breeding charges	5410	0.14
9	Transportation charges of inputs	40,300	1.05
10	Miscellaneus - a) Veterinary Doctor b) Expenses on cleaning	30,524 37306	0.79 0.97
11	Other expenses	21,780	0.56
12	Interest on working capital	2,82,299	7.38
13	Family labour charges	1,15, 000	3.00
14	Total variable cost (T.V.C.)	33,42,444	87.45
	Fixed cost
15	Imputed interest on fixed capital	1,21,835.93	3.18
16	Grampanchayat taxes a) Cattle shed b) Godown	1765 1665	0.046 0.043
17	Depreciation on milch animals	2,15907	5.64
18	Depreciation on cattleshed, equipments, and other fixed capital	1,38287	3.61
19	Total fixed cost (T.F.C.)	4,79,459.99	12.54
20	Total cost (T.C.)	3821903	---
21	Gross return (G.R.)	85,89,314	---
22	Net return at total cost	47,67,410.01	---
23	Net return at variable cost	52,46,870	---
24	B: C ratio	1:2.24	---
25	Per litre cost of milk production at variable cost	9.42	---
26	Per litre cost of milk production at total cost	12.06	---
27	(Total milk production in litres)	(1,82,130)	---

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Total annual cost, Gross return & per litre cost of milk production from improved buffaloes

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