Central Arid Zone Research Institute Central Arid Zone Research Institute RRS,RRS, PaliPali--MarwarMarwar,, RajasthanRajasthan
Dr.Dr. Khem ChandKhem Chand, , B LB L JangidJangid and P Pand P P RohillaRohillaSr. Scientist (Ag. Economics)Sr. Scientist (Ag. Economics)
Outline
Status of livestock and milk production
Cost and Returns in Milk Production
Channels in milk marketing
Cooperative milk procurement and marketing
Price spread in milk marketing
Milk production from camel and small ruminants
Primary data collection
• Bovine rearers sample: 72• Ovine rearers sample : 60• Camel breeders sample : 100 from 10 Villages in Pali andJaisalmer district)
Change in livestock composition(1966-2007)
Cattle17%
Buffalo12%
Sheep29%
Goat41%
Camel1%
Cattle30%
Buffalo7%Sheep
34%
Goat26%
Camel3%
ACGR (%) of livestock in Arid zone (1966-2007)
Livestock Cattle Buffalo Sheep Goat Camel
1.32
-0.04
2.7
0.92
2.44
-1.34
Share of species in milk production (2007-08)
Share of Arid Zone in milk production (2007-08)
0.00
20.00
40.00
60.00
80.00
100.00
C B Desi Cow Buffalo Goat
57.4553.64
32.58 63.38
42.5546.36 67.42 36.62
Other RajArid
Major source of income
Agriculture63%
Dairy25%
Ag. Lab4%
Service4%
Business4%
Composition of bovine sample
Particulars Cattle Buffalo Bovine
Milch animals 2.65 2.70 5.35
Heifer 1.10 1.70 2.80
Young stock 1.45 1.25 2.70
Total 5.20 5.65 10.85
% share 48.00 52.00 100.00
ACU 3.24 4.09 7.33
Collective animals grazing during crop season
A bovine unit of farmer in village Nimbli patelan
Initial capital investment (Bovine, ACU: 7.33)
• Investment/ unit: Rs. 76,318•Investment/ ACU: Rs 10,412
Fixed cost (Bovine, ACU: 7.33)
•• Fixed cost/annum/ unit: Rs. 9,956• Fixed cost/ annum/ animal: Rs 1,358
Maintenance cost/Cattle/Yr
•• Total variable expenses per annum: Rs. 11929.42• Gross cost: Rs. 12918.57
Main & by-products of kharif crops-used as animal feed and fodder
A Kuchcha bovine shed A shed for winter season
Mud manger for bovine Separate mud mangers
Temporary storage of Pala and other fodders
Buffalo rearing in Arid
Rajasthan
Maintenance cost/Buffalo/Yr
• Total variable expenses per annum: Rs. 18767.8• Gross cost: Rs. 20416.88
Bovine returns (Rs/ animal/ yr)
Milk procurement agencies
Average price fetched by milk producer from various agencies
Agencies Cattle Buffalo Average
Venders 10.03 13.55 11.80
Cooperatives 10.84 15.28 13.90
Consumer/ hotel 10.60 14.89 14.00
Private dairy 11.50 14.20 13.12
Payment interval to milk producersChannel
Payment interval
Privatevender (n=11)
Coop(n=38)
Consumer(n=13)
Private dairy(n=9)
Total(n=71)
• Daily 0.0 0.0 7.7 0.0 1.4
• Weekly 9.1 5.3 7.7 0.0 5.6
• 10 days 27.3 92.1 0.0 66.7 62.0
• Fortnightly 54.5 2.6 15.4 22.2 15.5
• Monthly 9.1 0.0 69.2 11.1 15.5
Cooperative Milk Procurement and Marketing in Arid
Rajasthan
Reasons for cooperatives marketing of milk
Reasons f %Timely payment 38 100.0Payment at less interval 36 94.7Assured payment 38 100.0Better price 34 89.5Precise measurement 36 94.7Computerized procurement 21 55.3Clean and hygienic procurement 30 78.9Working of cooperatives in village 36 94.7Cheating by vendors/ private dairy 27 71.1Timely availability of quality inputs 29 76.3
(n=38)
Cooperative dairy (RCDF)16 District Milk Producers Cooperative Unions (AMUL pattern)Three tier structure
Village level :Primary Village Cooperative Society (11 members including chairman)District level: District Milk Producers Cooperative Union State level: State Cooperative Dairy Federation
Milk procurementCollection in both morning & evening
Lactometer reading to ascertain SNF
Computerized fat testing
Electronic machine used to measure volume
A printed slip is issued immediately mentioning Fat%, SNF%, Rate and Volume
Village cooperative milk collection centre
Drawing milk sample for fat testing
Computerized milk procurement
Milk collection on contract basis
Marketing of milk by Coop. DairySome milk is sold by VCS at village
50 percent milk in district itself
Remaining 50 percent to
NMG (Mother dairy and DMS)
RMG
Rates for NMG are decided by federation at state level
Milk sale at collection centre
Sale of processed milk and products
Processed Milk & other products sold through420 milk booths07 milk parloursProducts supplied to 10 townsBooths open only in morning and eveningParlours have deep freezing facility, sale of all products throughout day
Products sold and place of manufacturingProducts PlaceMilk
SARAS (Tonned)Double TonnedSkimmed & mixed milkFlavoured milk
Pali dairy
Jaipur dairyButter milk
PlainSalted
Pali dairy
SRIKHANDElayachiKesar Pista
Jodhpur dairy
Ghee Pali dairyPaneer Jodhpur dairyRassogolla Bikaner dairy
Commission to booths / parloursProducts Commission (Rs)
Milk, Butter milk : 0.70 / lit
Ghee : 3.00 / kg
SRIKHAND : 1.00 per cup
Paneer : 1.00 / 200 gram pack
Flavoured milk : 2.00 / 200 ml bottle
Rasogolla : 6.00 / kg in tin pack
Price spread in milk (Rs/ lit)Particulars Channel I Percent
Price received by milk producer 11.80 65.60
Cost incurred in collection and transportation by vendor
2.00 11.10
Vendor’s purchase price 13.80
Margin 4.20 23.30
Price paid by the consumer 18.00 100.00
Minor but Important Source of milk in Arid Rajasthan
Camel milking in Arid Rajasthan
Marketing channel in camel milkCamel milk used by diabetes patient fetches higher price than bovine milk
A source of income for camel breeders beside sale of young camel Camel breeders gather at one place during night time from where milk vendors collect milk in early morningMilk is sold to village restaurants, general consumers and cooperative dairy collection centreCamel breeders Vendors Consumers/ Hotels
Small Ruminants Milking in Arid Rajasthan
Marketing channel in Small ruminants milk
Sale of Goat and Sheep milk: An alternate source of
income for small ruminant rearers
Sheep milk is used for medicinal purpose while goat milk
is preferred for children
Milk is sold to village/ Roadside tea stalls, general
consumers and cooperative dairy collection centre
Producers Consumers/ Hotels/Coop. dairy
Conclusion
Buffalo had the highest share in total milk production and its profitability is higher than cattleCooperative societies are the main milk procurement and marketing agencyProducer share in consumer rupee is 66 percent when sold through vendorsVendors: Cheating with milk producers and adulteration (synthetic milk) are major problems in this channel Incentives to camel breeders may help in more procurement of camel milk
THANK YOU
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