An exploratory analysis of the effectiveness of milk market in Odisha, India
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An exploratory analysis of effec2veness of milk market in Odisha, India Braja Bandhu Swain and Nils Teufel Livestock sector in Odisha is highly livelihood intensive and over 80% of livestock popula:on holds by small and marginal farmers (Odisha Livestock Policy, 2002). Dairy is the important product in livestock sector whose share has increased from less than 50% to 65% in the 2000s. However, due to dominance of smallholder and failure of ins:tu:ons, this sector could not achieve high produc:vity and growth. Low percentage (8% of total milk produc:on) of milk sold in formal market compared to other states. To bring the growth in this sector, there is need to strengthen milk market and link the farmers into market. This study would like to examine the milk market channel and the prices in different market zone. Pictures Farmers in low market site use higher propor:on of milk for processing at home compared to high market site High percentage of milk sold in high market site compared to low market site Middlemen buy higher propor:on of milk followed by milk coopera:ve in high market site while it is the household consumer followed by middlemen in low site Farmers in high market site get beOer price of their milk compared its counterpart Women play an important role in delivering and buying milk in low market site compared to high Need to increase the share of formal market in buying milk tends to increase the milk produc:on in the economy Braja Bandhu Swain Interna:onal Livestock Research Ins:tute (ILRI) Aggarwal Corporate Tower, 9 th Floor, Rajendra Place New Delhi110012, India Email: [email protected] and [email protected] Acknowledgements: Cereal System Ini:a:ve for South Asia (CSISA) and the Interna:onal Livestock Research Ins:tute (ILRI) This document is licensed for use under a Crea:ve Commons AOribu:on –Non commercialShare Alike 3.0 Unported License September 2014 September 2014 The survey results indicated that high percent of milk sold in the market in high market site compared to other while milk society plays a major role (Fig 1 & Fig 2). Women play a major role in delivering milk and receiving payment in low market site (Fig 3). Two districts (Puri and Bhadrak) were selected based on milk produc:on and marke:ng from coastal Odisha, India: Bhadrak =Low market site and Puri = high market site Randomly 130 villages were selected, 65 villages from each district Data were collected through focus group discussions with different categories of dairy farmers (small, medium and large) and also milk trader Descrip:ve sta:s:cal analysis was used to analyse the survey data Introduc:on Materials and methods Results Conclusion 0 10 20 30 40 50 60 70 80 90 100 High Low High Low High Low avg share % product sold % hh selling share product Fig1: Dairy products and sold in high and low market site Milk Curd Ghee Cheese 0 10 20 30 40 50 60 70 govt milk cop:ve pvt milk cop:ve middle man tea/swt shop hh consumer share channels Fig 2: Milk buying share of different channels and price High Share High Price Low Share Low Price 0 20 40 60 80 100 High %wmnSelin g High %wmnBying High %wmnRPym nt Low %wmnSelin g Low %wmnBying Low %wmnRPym nt Fig 3: Women and Milk Market middle man pvt milkcop:ve hh consumer tea/swt shop govt milkcop:ve
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The dairy sector plays an important role for Odisha, an Eastern Indian state, contributing a large share of the agricultural gross domestic product (GDP) and supporting the socioeconomic development of millions of rural households. In Odisha, 80 percent of rural households depend on dairy and draw 30 per cent of their annual income from it. Also, dairy constitutes a major share of the value of output from the livestock sector –the share has increased from less than 50 percent in 1950-51 to about 65 percent in the 2000s. Nevertheless, the dominating small, resource constrained farmers have not been able to extract the potential benefits from the growing demand as they have failed to improve their linkages with markets and consumers. Improving the efficiency of the value-chain system is seen as a major opportunity for the development of the dairy sector.
Transcript of An exploratory analysis of the effectiveness of milk market in Odisha, India
- 1. An exploratory analysis of effec2veness of milk market in Odisha, India Braja Bandhu Swain and Nils Teufel Introduc:on v Livestock sector in Odisha is highly livelihood intensive and over 80% of livestock popula:on holds by small and marginal farmers (Odisha Livestock Policy, 2002). v Dairy is the important product in livestock sector whose share has increased from less than 50% to 65% in the 2000s. v However, due to dominance of smallholder and failure of ins:tu:ons, this sector could not achieve high produc:vity and growth. v Low percentage (8% of total milk produc:on) of milk sold in formal market compared to other states. v To bring the growth in this sector, there is need to strengthen milk market and link the farmers into market. v This study would like to examine the milk market channel and the prices in different market zone. Materials and methods v Two districts (Puri and Bhadrak) were selected based on milk produc:on and marke:ng from coastal Odisha, India: Bhadrak =Low market site and Puri = high market site v Randomly 130 villages were selected, 65 villages from each district v Data were collected through focus group discussions with different categories of dairy farmers (small, medium and large) and also milk trader v Descrip:ve sta:s:cal analysis was used to analyse the survey data Fig 2: Milk buying share of different channels and price Pictures Results 100 90 80 70 60 50 40 30 20 10 0 Fig-1: Dairy products and sold in high and low market site High Low High Low High Low avg share % product sold % hh selling share product 70 60 50 40 30 20 10 High %wmnSelin 100 80 60 40 20 Low %wmnRPym nt v Farmers in low market site use higher propor:on of milk for processing at home compared to high market site v High percentage of milk sold in high market site compared to low market site v Middlemen buy higher propor:on of milk followed by milk co-opera:ve in high market site while it is the household consumer followed by middlemen in low site v Farmers in high market site get beOer price of their milk compared its counterpart v Women play an important role in delivering and buying milk in low market site compared to high v Need to increase the share of formal market in buying milk tends to increase the milk produc:on in the economy Braja Bandhu Swain Interna:onal Livestock Research Ins:tute (ILRI) Aggarwal Corporate Tower, 9th Floor, Rajendra Place New Delhi-110012, India Email: [email protected] and [email protected] Acknowledgements: Cereal System Ini:a:ve for South Asia (CSISA) and the Interna:onal Livestock Research Ins:tute (ILRI) This document is licensed for use under a Crea:ve Commons AOribu:on Non commercial-Share Alike 3.0 Unported License September 2014 September 2014 v The survey results indicated that high percent of milk sold in the market in high market site compared to other while milk society plays a major role (Fig 1 & Fig 2). Women play a major role in delivering milk and receiving payment in low market site (Fig 3). Conclusion Milk Curd Ghee Cheese 0 govt milk- cop:ve pvt milk- cop:ve middle man tea/swt shop hh consumer share channels High Share High Price Low Share Low Price 0 g High %wmnBying High %wmnRPym nt Low %wmnSelin g Low %wmnBying Fig 3: Women and Milk Market middle man pvt milk-cop:ve hh consumer tea/swt shop govt milk-cop:ve
