Economic Analysis of Milk Production of District Fatehpur in Uttar Pradesh

The present study was conducted in the Fatehpur district of Uttar Pradesh using multistage stratified random sampling design. A sample of 120 households was selected probability proportion to size of holdings. The households were classified into three category such as marginal (>1 hectare), small (1-2 hectare) and large (<2 hectare) the total cost of milk production per lactation was Rs. 22776 and Rs. 16694 for buffalo and cow, respectively. On an average, cost of buffalo 89.6 per cent incurred as variable cost while 10.4 per cent incurred ‘as fixed cost and cow was 90.4 per cent incurred as variable cost and 9.6 per cent incurred as fixed cost of total cost. Out of which concentrate cost alone accounted for 37.4 per cent and 42.6 per cent buffalo and cow, respectively. Labour charges were more (17 percent) in buffalo as compared to cow (16.2 per cent). The interest on animal value was more (6.7 per cent) in case of buffalo as compared to cow (5.1 per cent). The cost of milk production was much higher in case of buffalo than the cow. Similarly, milk production was also higher in buffalo than the cow. The per liter cost of milk production was Rs. 12.62 and Rs. 10.79 for buffalo and cow, respectively. The total return per animal per lactation came to Rs. 3141.14 and Rs. 24928.38 for buffaloes and cow, respectively. The net return in case of buffalo was higher (Rs. 9637.66 per lactation) as compared to cow (Rs. 8234.04 per lactation) while, benefit cost ratio was higher cow (1.49) than the buffalo (1.41). It was observed that on an average two third of the total milk production of households was sold in the market.