Determinants and quantification of milk loss in dairy value chains: Evidence from Odisha

Abstract

Food loss along the Indian dairy value chain imposes a significant challenge for the stakeholders to attain food and nutritional security and achieve sustainable development goals. Therefore, the current study estimated the level of food loss along the milk value chain across various stages and seasons and identified the key determinants of food loss. Odisha state was purposively selected for this study owing to the dominance of marginal and small dairy farmers, fragmented supply chains and infrastructural disparities. Primary data were collected from a total of 237 respondents, including farmers, cooperatives, chilling centres, processing plants, milk vendors, and distributors. A Material Flow Analysis was used to quantify the level of food loss, and overall, 0.93 per cent of milk loss was observed along the supply chain, and the summer season being the highest contributor to this loss (1.32%). A triple hurdle model was employed to analyse the factors influencing the incidence, frequency, and severity of milk loss. Post-production handling, transportation and processing stages together contribute more than 80 per cent to the total milk loss. The study revealed strong positive influences of milk collection frequency, disease incidence, higher temperature and limited market access on the incidence and frequency of milk loss. Whereas the intensity of milk lost is often reduced by membership in farmers’ collectives and the availability of adequate infrastructure facilities. Therefore, the evidence insists upon targeted interventions in the form of investment to strengthen the cooperative network, improve logistics, and animal healthcare facilities to mitigate losses along dairy value chains.