Project on Cow Farming by Rameez

A STUDY ON PRODUCTIVITY LINKED MARKET MECHANISM IN COW FARMING A DETAILD STUDY ABOUT 5 DIFFERENT HOUSEHOLD FROM 5 DIFFERENTWARD Project ReportSubmitted in partial fulfilment of the requirements of the degree ofMASTER OF BUSINESS ADMINISTRATION KANNUR UNIVERSITY BY RAMEES THANAKKARAMMAL (B0GMBA1064) UNDER THE GUIDANCE OF Mrs.LAKSHMI SAJU

CHINTECH SCHOOL OF MANAGEMENT STUDIES CHINMAYA INSTITUTE OF TECHNOLOGY KANNUR 2011

CERTIFICATEThis is to certify that the project entitled PRODUCTIVITY LINKED MARKET MECHANISM IN COWFARMING is a bona fide record of work done by Ramees Thanakkarammal, 3rd semester MBA and submitted in partial fulfilment of the requirement for the degree of MASTER OF BUSINESS ADMINISTRATION, of Kannur University under my supervision.

Place: Kannur Date:

Mrs Lakshmi Saju (Supervising guide)

CERTIFICATEThis is to certify that the project entitled PRODUCTIVITY LINKED MARKET MECHANISM IN COWFARMING is a bona fide record of work done by Ramees Thanakkarammal, 3rd semester MBA and submitted in partial fulfilment of the requirement for the degree of MASTER OF BUSINESS ADMINISTRATION, of Kannur University under my supervision.

Place: Kannur Date:

Dr. K.K Falgunan (Principal)

DECLARATIONI hereby, declare that the Project report entitled PRODUCTIVITY LINKED MARKET MECHANISM IN COWFARMING is my original work and it was under the supervision of Mrs.Lakshmi Saju faculty of Chinmaya Institute of Technology, Kannur. I also declare that this report has not been submitted by me fully or partially for the award of any degree, diploma, or any other similar title or recognition before.

Place: Kannur Date :

RAMEES THANAKKARAMMAL 3rd Semester MBA

ACKNOWLEDGEMENTThis project represents the collective efforts of so many individual and its May sincere gratitude to each one of them without whose support and helps this work would have been impossible. My first and foremost acknowledgement to God Almighty for the eternal love and guidance and wonderful blessings, he had showered upon me throughout my life. I would like to express my profound gratitude to all those who have been instrumental in the preparation of the project report. I wish place a deep sense of gratitude to our Principal, Dr.K.K.Falgunan for the keen interest and guidance throughout the course of the project. My heartfelt thanks to my guide Ms.Jisha Vasanthraj, Faculty,Department of MBA, for her immense and valuable guidance which has resulted in the work taking the present form. I take the privilege to extend my hearty thanks to the faculty members of School of management studies, Chinmaya Institute of Technology, For the valuable suggestion throughout the project duration. I would also express my sincere gratitude to cow farmers in Kuthuparamba and Chittaripparamba for providing necessary information for my study. At last but never least, my dear friends, my dear parents, friends for their support extended to me for the completion of the project.

CONTENTS1. Chapter I- Introduction & Design of the Study Introduction Statement of the problem Objectives of the Study Methodology and Data Collection Limitations of study Chapter Scheme 2. Chapter II- Data analysis and interpretation 3. Chapter III-Findings, Suggestions and Conclusion Bibliography Appendix

CHAPTER-1 INTRODUCTION AND DESIGN OF THE STUDY

1.1

INTRODUCTION

Dairy products are basic products of daily nutrition almost all around the world. More than 500 million tons of cows milk is produced per year in the world. Dairying is an important source of subsidiary income to small/marginal farmers and agricultural labourers. Agriculture along with animal husbandry has been and will continue to be the lifeline of Indian economy. India is the largest and one of the most economical milk producers in the world (estimated production of 105 MT).It is the most important sector of the Indian economy particularly in poverty alleviation and employment generation. This sector contributes close to one-fourth of Indias National income and total work force engaged in agriculture is about 60 per cent. At global level, milk has been identified as an integral part of food for centuries. The success of White Revolution in India has largely been written by millions of small holders. About 70 million dairy farmers produce more than 50 per cent of the milk in the country. Milk and milk products are one of the important components of the Indian food industry. Consumption of milk and milk products is deeply rooted in our tradition and it is an essential item during rituals, festivals and other auspicious events.

Dairy products are basically based on Milk. India ranks next only to USA & USSR in world milk production. There are a number of dairy products like butter, cream, cheese, Khoya, Paneer, flavoured milk etc. There is always a greater demand for milk and dairy products among people. Ghee and butter are used for ice-cream manufacture, as cooking fat, in

the confectionery industry etc. Paneer is consumed directly and in hotels and restaurants. There is huge market for Indian milk products. Key concern for setting up a dairy plant would be regular and timely supply to the market, consistency in quality and reasonable pricing arer all essential to build up a strong market and brand equity.

Scope for Dairy Farming and its National Importance.The total milk production in the country for the year 2001-02 was estimated at 84.6 million metric tonnes. At this production, the per capita availability was to be 226 grams per day against the minimum requirement of 250 grams per day as recommended by ICMR. Thus, there is a tremendous scope/potential for increasing the milk production. The population of breeding cows and buffaloes in milk over 3 years of age was 62.6 million and 42.4 million, respectively (1992 census) Central and State Governments are giving considerable financial assistance for creating infrastructure facilities for milk production. The nineth plan outlay on Animal Husbandry and Dairying was Rs. 2345 crores.

Financial Assistance Available from Banks/NABARD for Dairy Farming.NABARD is an apex institution for all matters relating to policy, planning and operation in the field of agricultural credit. It serves as an apex refinancing agency for the institutions providing investment and production credit. It promotes development through formulation and appraisal of projects through a well organised Technical Services Department at the Head Office and Technical Cells at each of the Regional Offices. 3.2 Loan from banks with refinance facility from NABARD is available for starting dairy farming. For obtaining bank loan, the farmers should apply to the nearest branch of a commercial or co-operative Bank in their area in the prescribed application form which is available in the branches of financing banks. The Technical Officer attached to or the Manager of the bank can help/give guidance to the farmers in preparing the project report to obtain bank loan.

For dairy schemes with very large outlays, detailed reports will have to be prepared. The items of finance would include capital asset items such as purchase of milch animals, construction of sheds, purchase of equipments etc. The feeding cost during the initial period of one/two months is capitalised and given as term loan. Facilities such as cost of land development, fencing, digging of well, commissioning of diesel engine/pumpset, electricity connections, essential servants' quarters, godown, transport vehicle, milk processing facilities etc. can be considered for loan. Cost of land is not considered for loan. However, if land is purchased for setting up a dairy farm, its cost can be treated as party's margin upto 10% of the total cost of project.

Marketing of MilkMarketing milk immediately after it is drawn keeping the time between production and marketing of the milk to the minimum. Use clean utensils and handle milk in hygienic way. Wash milk pails/cans/utensils thoroughly with detergent and finally rinse with chloride solution. Avoid too much agitation of milk during transit. Transport the milk during cool hours of the day.

1.2 STATEMENT OF THE PROBLEMCow farming is an important source of income for small scale farmers. Agriculture is a seasonal income for them so cow farming provide subsidiary income for them. So I conduct an study about productivity linked market mechanism in cow farming

1.3 OBJECTIVE OF THE STUDY:1. To study about the cow farming in different household and their profitability. 2. To understand the satisfaction level of the households and milk societies.

3. To understand the revenue generated by them through this business. 4. To find out the market mechanism used in marketing milk. 5. To have an understanding of the milk supply chain

1.4 METHODOLOGY & DATA COLLECTION The sampling Method

Non random sampling method was used for the study. For the purpose of this study following wards were selected for study

Ward No.10 Ward No.11 Ward No.13 Ward No.8 Ward No.5

Sources of dataFor the successful completion of the present study, the data required for analysis had been collected from two sources, namely., Primary Sources Secondary Sources

Primary data were collected from the 25 respondents from 25 Households units of 5 different wards. Apart from these houses the data were collected from 5 co-operative Milk societies. The data were collected mainly through Observation, Direct Interview and Questionnaire. Secondary data were collected mainly from the past records, documents, website, etc. Tools and techniques used for analysis: Tables Charts Diagrams

1.5 LIMITATIONS OF STUDYThe limitations of this study were: The topic selected was very vast and requires much more time for the study. Therefore, time was a major limiting factor. As they are giving information without any verification of records, there is certain chance of incorrectness of data.

1.6 CHAPTER SCHEME

1st chapter deals with introduction, statement of problem, objectives of the study, methodology & data collection and limitation of the study objective.

2nd chapter gives analysis and interpretation of primary data collected. 3rd chapter deals with findings, suggestions and conclusion.

CHAPTER-2 DATA ANALYSIS AND INTERPRETATION

GENDER:

Table & Name Gender Rafeek NO. Gopi.FARMERS K.V OF Mukundan Gangan Majeed INFERENCE From the above graph we can infer that out of 25 cattle farmers 13 cattle farmers are male. No. Of Cows Male 2 13 15 4 Graph no.2(1) 2 4Sources: Primary data

FEMALE 12

Farmers Age and Number of cows owned by them: Ward 10

Name Madhavi Bhaskaran. C Devaki Rajappan Aamina A.K INFERENCE

No. Of Cows 1 4 2 1 1

Table & Graph no.2(2)

Sources: Primary data

From the above graph we can interpret that from K.V Gopi of ward no. 10 is having more cows than other cattle farmers of ward 10.

Ward 13



INFERENCE From the above graph we can interpret that Bhaskaran.C is having 4 cows.

Name Ananthan .M Maimoonath Mariyu A.P Sugandhi Fathima

Age 65 55 60 53 62

No. Of Cows 2 2 1 2 2 Ward 11:



INFERENCE From the above graph we can interpret that out of 5 farmers 4 of them having 2 cows.

Ward 8

Name Name Thomas T Mariyu. .C Antony. M Narayani Safiya .S Sharadha Mariyath Kmaster Bhaskaran Vijayan Kurinjootty

No. Of Cows No. Of Cows 2 1 1 2 2 1 4 3 3 2



Inference: From the above table we can see that Mariyath.K is the largest cattle farmer in this ward.

Ward 5 :



InferenceFrom the above table we can interpret that Bhaskaran Master is having more cows compared to others. He is the biggest farmer compared to others in the ward.

Age Group of Farmers: 20&BELOW 20-30 NO OF FARMER S ----30-40 --40-50 1 50-60 8 60-70 15 70& ABOVE 1



Inference: From the above table we can see that 60% of farmers age in between 60-70. Most of the youngsters are not interested cow farming.

No. Of Cows in households

NO.OF COWS

0-2

2-3 11

3-4 2

4-5 4

5-6 ---

6&ABOVE 1

NO. OF 7 FARMERS ( In 25)



Inference: From the table it can be shown that majority of the 11 farmers having 2-3 cows in households.

STARTED CATTLE REARING

Year House Hold (In 25)

0-5

5 - 10

10 - 15

15-20

20 & Above 4

4

8

5

4



Inference This chart reveals that around 8 households started cow farming 5-10 years ago.

No. of cows Ltr of Milk

1-2 4 -8

2-3 8 - 10

3-4 12 - 16

4-5 16- 20

5- 6 20 - 25

6 And Above 30 & Above

Milk production in households/litre/day:



Inference: From the above chart it is cleared that hybrid cows are producing more milk than cross breed.

Milk society only

House hold only

Both

other

No. of House Hold

3

4

15

3

Distribution of Milk by the households : Table & Graph no.2(11)


InferenceFrom the above graph it is clear that around 65% of households are distributing milk to both households and society.

TYPES OF COW

TYPES NO. OF FARMERS

COMMON 36

H.F 19

JERCY 10

AUSTRALIAN 1

OTHERS -

Table & Graph no.2(12) Name Rafeek K.V Gopi Mukundan Initial Investment 25000 100000 20000Sources: Primary data

Inference

The above graph states Gangan 15000 that majority of Majeed 30000 households are using cross breed. Because it is very less purchase cost compared to other breed.

Initial investment of FarmersWard 10

Table & Graph no.2(13) Name Madhavi Bhaskaran. C Devaki Rajappan Aamina A.K Investment 5000 50000 2000 8000 4000


INFERENCE From the above table we can interpret that K.V Gopi of ward-10 has invested more money than other families in the ward. His initial investment is 100000.He started cattle rearing with 8 cows. Now he has 15 cows. Ward 13



Name Ananthan Maimoonath Mariyu A.P Sugandhi Fathima INFERENCE

Investment 2500 8000 5000 4500 6000

From the above table we can interpret that Bhaskaran.C ward-13 has invested more money than other family.He invested Rs.50000 in the initial stage. Now he has 5 cows.

Ward 11



Name Mariyu. T Narayani Safiya Mariyath K Vijayan INFERENCE

Investment 5000 4000 3500 8000 6500

From the above table we can interpret that Maimoonath of ward-11 has invested more money than other families in the ward.

Ward 8



INFERENCE Name Thomas .C Antony. M Sharadha .S Bhaskaran master Kurinjootty Investment 15000 8000 6000 25000 20000

From the above table we can interpret that Mariyath.K of ward-8 has invested more money than other families in the ward. Ward 5



INFERENCE From the above table we can interpret that Bhaskaran Master of ward-5 has invested more money than other families in the ward.

Litres of Milk get

NameK.V Gopi Bhaskaran. C Majeed Kurinjootty Mukundan Bhaskaran master Thomas .C Gangan Rafeek Mariyath K Vijayan Ananthan .M Sugandhi Antony. M Rajappan Maimoonath Mariyu. T Mariyu A.P

Ltr. of Milk get/day 100 30 28 24 20 20 17 16 15 14 11 10 10 10 9 8 8 7

Ward 10 13 10 5 10 5 5 10 10 8 8 11 11 5 13 11 8 11

Litter of Milk get per dayGraph no.2(16)


INFERENCE From the above graph we can interpret that K.V Gopi ward-10 is the largest supplier than others out of 25 house holds. Becaus he is having many hybrid cows

COST INVOLVED TO MAINTAINING A COW PER DAY

COST PER DAY IN (RS)

0-100

100-200

200-300

300-400

400-500

500 & ABOVE

NO OF FARMERS

1

5

11

5

2

1



Inference: From the table we can clearly understand that most of the farmers maintenances costs are in between Rs 200-300.

Price Charged by the Customer from Society and H.H Table no.2(20)Name Society (In Rs) K.V Gopi 23 House Hold (In Rs) 28

Bhaskaran. C

22

26

Majeed

23

28

Kurinjootty

21

26

Mukundan

22

25

Bhaskaran master

23

27

Thomas .C

22

27

Gangan

21

26

Rafeek

23

26

Mariyath K

22

26

Vijayan

23

28

Ananthan .M

23

--

Sugandhi

23

28

Antony. M

22

27

Rajappan

23

29

Maimoonath

--

26

Mariyu. T

23

--

Mariyu A.P

--

26

Safiya

--

25

Sharadha .S

23

28

Devaki

23

28

Fathima

22

28

Aamina A.K

23

--

Narayani

23

28

Madhavi

--

28

Price Charged by the Customer from Society and H.H Graph no.2(20)Sources: Primary data

Inference: The price charged to milk society and house holds is different. Milk supply to house hold is more profitable to the farmers.

SATISFACTION LEVEL ABOUT PRICE CHARGED TO HOUSE HOLD:

SATISFACTION LEVEL

HIGHLY SATISFYE D

SATISFIED

DISSATISFIE D

HIGHLY DISSATISFIE D

NO.OF Farmers

3

20

2

---



Inference: From the above graph we can interpret that majority of the farmers are satisfied with the price charged to house hold.

SATISFACTION LEVEL REGARDING PRICE CHARGED TO CO-OP MILK SOCIETIES

SATISFACTION LEVEL

HIGHLY SATISFYED

SATISFIED

DISSATISFIE D


NO.OF FarmersTable & Graph no.2(22)

0

12

10

3


Inference: From the above graph we can interpret that most of the farmers are not satisfied with the price charged to Milk society. But 48% households are just satisfied with the price charged by the society.

SATISFACTION LEVEL ABOUT COW FARMING

SATISFACTION LEVEL

HIGHLY SATISFIED

SATISFIED

DISSATISFIE D


NO OF FARERS Table & Graph no.2(23)

2

20

3

--


Inference: From the above graph we can interpret that majority of the farmers are satisfied with cow farming. But no one is highly dissatisfied.

Details about Co-op Milk Societies

CO-OP MILK SOCIETIES

Table No. 2(24)

Mananther i co-op society

Chittarippar -amba co-op society

Kuthuparamb a Co-op Society

Kolayad co-op Society

Peruva co-op society

Establish ed

Feb 2010

1983

1995

1999

Feb 2011

License No.

C.233.D

C 83. D

C.143. D

C. 193. D

C.235. D

Members

109

326

148

93

34

Investme nt

40000

3000

9000

---

20000

Manantheri Chittarippar co-op society -amba coop society

Kuthuparamb a Co-op Society

Kolayad co-op Society

Peruva co-op society

Maint. Chrg / day Milk Procure/day No. of time procuring in a day Supply to Milma Local Sales

190

1000

800

700

200

60 Ltr

400 Ltr

330 Ltr

350 Ltr

61 Ltr

2

2

2

2

1

---

150 ltr

100 ltr

230 ltr

58 ltr

55 ltr

250 ltr

210 ltr

120

3 ltr

Other Sales

5 ltr

---

20 ltr

---

---

Initial Investment of Co-op Societies Graph No. 2(24)


Inference: From the above graph we can interpret that Manantheri Co-op Society is invested large amount compared to others.

Litres of Milk Procure per day: Graph 2(25)


Inference: From the above table we can interpret that Chittaripparamba Milk society procuring large litres of milk per day

The amount of milk selling by societyGraph No. 2(26)


Inference: From the above table we can interpret that Chittaripparamba Society is having more local sales than others. As compared to others Kolayad Co-op societies supplying more milk to Milma. While comparing to the sales to others Kuthuparamba Society is leading with 20 litres.

CHAPTER-3 FINDINGS, SUGGESTIONS & CONCLUSION

FINDINGS

Compared to other agricultural activities it is more profitable. It is the less risky business activity compared to other types of agriculture Many of them is doing as a side business Compared to ordinary cows hybrid cows are more profitable. Coz, it gives more milk. Youngsters where not entering into this business nowadays.

IN cow farming there is other source of income besides from milk ghee,curd,etc. Majority of the households supply their milk to both co- operative societies and households.

SUGGESTION

Awareness about cow farming should be made among the youngsters. Provide good atmosphere to cows it increase the milk production Govt. Should provide helpful scheme for farmers. Provide easily availed highbred cows also Try to reduce cost of production

Provide more financial help to cow farmers. To give full attention to the cows to maximize profit.

CONCLUSIONDairy products are basic products of daily nutrition almost all around the world. More than 500 million tons of cows milk is produced per year in the world. Dairying is an important source of subsidiary income to small/marginal farmers and agricultural labourers. The cow farming is very closely related with nature so it gives tension free mind. This business can be proven to be very profitable if managed well. It is mainly practised by old

traditional people. The young generation people are not much keen to enter this sector .Most of the households are practising cow farming as a side business. Most the householder is distributing milk to society because of main benefits like pension, insurance scheme, concession in cattle feeds and many more.

REFERENCES

Journal of Diary Farming and milk societies.

Website: www.wikipedia.com, www.medwell journals.com

APPENDIXProductivity

linked market mechanisms

QUESTIONNAIRE TO HOUSE HOLDSName Address : :

Ward Age

: :

Sex 1.How many cows you have

:

Male : : : : : : : : : : Yes : : Milk society

Female

2.How long you have been doing cow farming? 3.Which breed of cow you have 4.How much was the initial investment 5.How many litres of milk will get per day 6.Cost involved in maintaining the cow per day 7. How many litres of milk are supplying/day ? 8.what are the ways ? 9.How much milk you are consuming 10.Do you supply the milk regularly 11.If No, what are the reasons 12. Customers of milk Households

No

Both

Other if any :

13. How many liter of milk is being sold to milk society 14. How many litter milk sells to households per day : 15. Price charged per litter to households 16. Price charged per litter to Society 16. Are you satisfied with the price? Highly satisfied Satisfied : :

Dissatisfied

Highly dissatisfied

17. Price received per litter from milk societies : Satisfaction level: Highly satisfied Dissatisfied Satisfied Highly dissatisfied :

18.Other source of income (overall)

19.If you have any value addition (Product Line): Yes No

20.If yes, what are the additional products 21.Are you satisfied with this business activity? Yes No

22.Satisfaction Level: Highly satisfied Satisfied Dissatisfied

Highly dissatisfied

No comment

23.Have you availed any loan from the bank ? 24.Is there any person being employed for milking the cow, If yes 25.What is the salary paid to him.

QUESTIONNAIRE TO THE CO-OPERATIVE SOCIETY

Name of the co-operative society Address License no Date of establishment No of employees Initial investment of the society Maintenance charge of the society How do you procure milk from various households? : Quantity of milk procuring from the suppliers / day : Quantity of milk supplying to the customer / day Price of milk per litre to the suppliers Satisfaction level regarding of price Highly satisfied Highly dissatisfied satisfied : : :

: : :

: : :

:

dissatisfied

Project on Cow Farming by Rameez

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