Economics of Milk Production of Cows and Buffaloes in Navsari District of Gujarat

Dairy industry has traditionally been integral to India’s rural economy and thus, the country is the world’s largest producer and consumer of dairy products. Milk is an important commodity as it is a source of dairy industrial raw material and also as a nutritive food for people. Hence, the study of economics of milk production assumed a greater importance in rural areas of Navsari district particularly falling in jurisdiction of Vasudhara dairy. The present study revealed that the overall per litre cost of milk production was Rs. 34.98 per buffalo. A net return per litre per milch animal was found to be positive for the entire category. It was highest for large category (Rs. 14.54) and lowest for small category (Rs. 12.12). Return per litre of milk was more for buffalo compared to cow. Hence, buffalo is more profitable than cow in study area. The Input-output relationship over different herd size category, an investment of Rs. 1 would bring Rs. 1.39 for buffalo. Similarly, the overall return over investment for cow was found to Rs. 1.36. With regard to the disposal pattern of milk and price received by different herd size the overall milk production per year per animal was 1133.00 litres for buffalo and 1870.00 litres for cow which increased from small to large herd size group in both the cases. The overall milk income per animal per year was found to Rs. 55120/- and Rs. 54 816/- for buffalo and cow, respectively which also increased with herd size. Out of total marketable surplus for both buffalo and cow milk, the major portion was sold through co-operative milk societies while the rest was sold through private agencies milk. Although the dairy business was found to be a remunerative occupation various constraints like high feed cost followed by high cost of animals, fluctuation of milk production, high labour cost and long lactation period were the major constraints faced by the farmers.