Efficiency of milk marketing channels in small and medium sized dairy farms in Punjab

Abstract

ABSTRACT

The marketing channel adopted, price received plays an important role in profitability of dairy farming. The price of milk differs from one channel to another channel through which surplus milk is marketed. The present study was conducted in three agro-climatic zones of Punjab state viz. sub mountainous, central and south-western zone to study the various existing marketing channels, their price spread  and marketing efficiency. The results of the study revealed that that more than fifty per cent of the milk produced is sold through unorganized sector by small and medium dairy farmers in Punjab state. The price received by the farmers was observed to be highest in Channel II (Producer ® Co-operative Milk Plant ®Consumer) i.e. ` 29.99 for small and ` 32.27 for medium farmers in summer and ` 27.69 for small and ` 30.27 for medium farmers in winter season. Price spread was found to be the highest in channel V (Producer®Milk Vendors®Sweet Shops/Creameries®Consumers) which is the longest milk marketing channel and lowest in channel II both in summer and winter season. Consequently, the channel II emerged as most efficient marketing channel both in summer and winter season and channel V least efficient due to more number of marketing intermediaries. Hence, there is a need to expand and popularize the organized sale of milk among small and medium farmers to attain better prices for milk by producers and making their dairy business sustainable.