Factors affecting liquid milk consumption

Group No - 08

Content

• Introduction• Problem statement• Objectives• Literature review• Methodology• Data analysis• Results• Suggestion• Time frame• References

Introduction

• There is the fact that the price of imported milk in Sri Lanka is the expensive in the world. In Sri lanka imported milk price is higher than other developing countries such as Thailand, Malaysia, Indonesia.

• This high price phenomenon leads to instability in the Sri Lankan milk market in recent years and makes price of foreign milk products increase further continuously as a vicious cycle.

• More typically, powdered milk for children takes a huge consumption in the milk market in our country. Therefore, parents are elements, which affected directly to this market because they are careful in choosing milk for their children and always want their children to have the best kind of milk.

• Accordingly, they are easy to suffer from the unstable high price milk market. From the current situation of milk market in Sri Lanka, this study sought to explore elements affect milk consumption.

• Domestic Dairy industry has capacity and capability of

producing substantial amount of quality milk and milk products to the prevailing market at affordable prices while keeping reasonable profit margins to all stakeholders in the production marketing chain without damaging to the environment.

• Hence it plays an important role in building strong national economy by assisting to ensure food Security, food safety and self-sufficiency, provide income generating opportunities, alleviate poverty, mitigate regional disparity in income distribution, solve other critical economic issues such as under nutrition, inequity, scarcity of foreign exchange, gender discrimination, environmental pollution etc.

• However local production, especially milk and milk products is sufficient only to meet 33% percent of the requirement at current consumption rate. The balance amount is supplied by the import parity which cost around Rs 27 billion annually. This situation has geared up the local livestock sector to strengthen its capacity to meet self-reliance of milk and milk products.

• The Livestock statistics 2009 indicates 1.13 million cattle 0.37 million buffaloes and in respect of milk and meat the contribution for national requirement is estimated at 33% milk, 35 % meat

• Per capita consumption of milk and milk products in Sri Lanka is low compared to other South Asian countries and at present per capita consumption of milk is 3.6kg /year. The cattle and buffaloes are reared in five major agro climatic zones; UP Country, Mid Country , The Coconut Triangles, Low Country Wet Zone, and the Dry Zone.

Problem statement ???

• There is higher powder milk consumption in SL than the other countries. But in the world the fresh milk consumption is higher.

• Therefore this research attempts at finding

the reasons for the change of consumer behavior towards the fresh milk consumption.

Objectives • To analyze the factors affecting liquid milk

consumption.

• To make appropriate suggestions towards the fresh milk consumption

Literature review• C.Jothy Mary was done a research about consumption behavior of milk by

consumer. He explained that “Consumer behavior is that subset of human behavior that is concerned with decisions and acts of individuals in purchasing and using products.

• Consumer behavior is a subset of consumer behaviors, which is concerned with decisions that lead up to the act of purchase. A firm must understand the buyer the buyer behavior, their preference in favors of one brand or product, what motivates him or her to select a brand or product and who influences him or her to buy the brand or product.

• In his research he found that Majority of the respondents are satisfied with brand is better than other byway of good quality. Majority of the respondents are take milk regularly. 50% of the total respondents purchase their milk from retail shop. Majority of the respondents are consumption of milk for energy and good health.

• Cameron S. Thraen is and Jerome W. Hammond was done a research about an analysis of household consumption of dairy products in America, in that study they said that,

• “Household consumption of dairy products is the major component in the total sales of the U.S. dairy industry. Therefore understanding the factors which may significantly influence house hold consumptions is important in the planning of farmers, processors and landler’s, and m manufacturers.

• Consumers' responses to changes in price and non-price factors are basic to an economic analysis of almost all the policy decisions which relate to industry or government net programs.

• Forecasting the future direction of household consumption, and how that direction might be modified thro ugh industry efforts or by national programs and policies, requires information on the relationships among prices, incomes, household characteristics and consumer demand.”

Methodology• Research question What are the factors affecting liquid milk consumption• The procedure target population of this study is our faculty students Sample size is 60 Sampling method is simple random sampling There are two data collection methods, Primary data collection and secondary data collection. -Primary data • Questionnaire -Secondary data Books, Journals, Research articles• Data will be analyzed by using appropriate statistical tools.

Data Analysis

10000-30000 31000-50000 51000-70000 71000-90000 91000-1100000

10

20

30

40

50

60

70

80

90

Effecting of income for the type of milk consump-tion

FM%PM%

37%

63%

Fresh milk Vs Powder milkFresh milk Powder milk

Yes57%

No43%

Those who have not market facilities to buy fresh milk product among

Powder milk consumers

Issues No of total people No of fresh milk consumers from the total

people

Health impacts 27 12

Refrigeration facilities 11 6

Availability 24 7

Any Other 10 4

Issues when consuming products

72.70%

27.30%

Local Brand

Foreign Brand

Fresh milk consumption ;Local brand Vs Foreign brand

Changing consumption pattern according to prices of milk

46%

41%

14%

Not chang

Fairy chang

Totally chang

Suggestions

• Consumption and Milk Promotion Program of Domestically Produced Milk Products

• Special multi media campaign will be launched to create fresh milk drinking culture, promote domestically produced milk and milk products and change distorted and misdirected food habits.

• Special promotional program will be conducted to develop milk-drinking habits among schoolchildren.

• Promotion of milk based value added products under the guidance of Milco (Pvt) Company Limited.

• Strengthening milk processing capacities of Milco (Pvt) Company Limited and other large and small-scale milk processing institutions.

• Expansion of sales outlets and household milk delivery systems under the guidance of Milco (Pvt) Company Limited.

• Veterinary Public Health service will be established to ensure food safety and assure quality milk and milk products in the market.

• Improving Efficiencies in Milk Marketing Chain

• Introduce individual milk testing and payment system at collecting points

• Introduction of transparent milk collection and marketing system at all level.

• Limiting field level milk collection to registered farmer organizations.

• Improvement of infrastructure facilities at milk collecting

points and milk chilling centers.

ACTIVITY

Problem Identification

Literature survey

Designing materials

Proposal presentation

Learning how to use method

Designing questionnaire

Finding participants

Running tests

Analyzing data

Writing up

Rewriting

Submission

OCTOBER NOVEMBER DECEMBER

Time frame

References• Edgar, S. (2005), Milk and dairy product technology,7, 34 -37. • Whyte, R.O, (2007). Milk production in developing counties, 13, 124 -

132. • Winton W, (1998).Milk and milk products, 8, 137 -170. • Thampoe,M,& H,Gnanaseelan(2010). Dairy Market Trends in Vavunia,

University of Jaffna, Vavuniya • Cameron,T.& Jerome,H. An analysis of household consumption of dairy

products, Department of agriculture and economics, University of Minnesota, 3, 5 -6 .

Thank You