Performance of commercial dairy farming in Meerut district of Uttar Pradesh

Abstract

India's commercial dairy farming sector is a pivotal component of the nation's agrarian landscape, contributing significantly to the economy and the livelihoods of millions of farmers. Analyzing its profitability and identifying production constraints are essential for guiding effective policy interventions. The present study aimed to determine the costs, returns and constraints involved in milk production in the Meerut district of Uttar Pradesh during the period 2020–2024. Primary data were collected from five commercial dairy farms including a total of 182 Sahiwal and 367 crossbred cattle breeds. The study also estimated the overall net maintenance cost per animal per day. The average landholding size among the dairy rearers was 3.0 hectares. The expenditure pattern revealed that the highest cost share was on green fodder (27.70%), followed by dry fodder (22.62%), concentrate feed (21.67%), labour (12.82%), depreciation on milch animals (3.68%), depreciation on livestock sheds (2.43%), mineral mixture (1.27%), veterinary expenses (1.01%), loan interest on milch animals (2.16%), loan interest on sheds/buildings (1.66%), loan interest on equipment (1.16%), and lastly depreciation on equipment (1.59%). The cost of milk production in crossbred cows was Rs. 42.13 per litre per day, and with the sales price Rs. 47.26 per litre, resulted in a net profit of Rs. 5.14 per litre per day. For indigenous lactating cows', the cost of production was Rs. 36.63 per litre and with an average sales price of Rs. 49.14 per litre, yielded a comparatively higher profit of Rs. 12.51 per litre per day; however, this profit may be due to the better sales price because of proximity to the urban area. The net returns were positive across both animal breed categories. The majority of dairy farmers preferred crossbred cows due to higher productivity but indigenous cows can also be profitable if reared in the periphery of an urban area with good sales prices.