Impact of Dairy Cooperative Membership on Milk Marketing Behaviour in Bihar

Abstract

The dairy sector in India plays a crucial role in rural livelihoods, contributing over one-fifth to the agricultural output and employing millions of resource-poor households. Despite being one of India’s top ten milk-producing states, Bihar still lags behind in terms of per capita milk availability and productivity. This study examined the milk utilization, disposal patterns, and future marketing preferences of Dairy Cooperative Society members and non-members in the Banka and Jamui districts of Bihar. Primary data were collected from 120 dairy households using a multistage random sampling technique. The study found that DCS members achieved a higher marketed surplus (around 80% of production) compared to non-members (around 73–74%). Non-members consumed more milk at home and relied on informal marketing channels, mostly private dairies and vendors. Cooperative members mainly preferred and marketed milk through cooperatives, while non-members chose private dairies because of their flexibility and quick payments. This study emphasizes the role of cooperatives in promoting commercialization, providing stable prices, and ensuring market access for smallholders. Raising awareness, providing training, infrastructure development, and integrating non-members into organized channels are required to improve and strengthen cooperatives and maximize the socio-economic benefits of dairying in Bihar.