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

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