IDEAS home Printed from https://ideas.repec.org/a/ags/inijae/206348.html
   My bibliography  Save this article

Do Dairy Co-operatives Enhance Milk Production, Productivity and Quality? Evidences from the Indo-Gangetic Plain of India

Author

Listed:
  • Kumar, Anjani
  • Shinoj, P.
  • Jee, Shiv

Abstract

Dairy development of India has been acclaimed as one of the most successful development programmes in the world. The co-operatives were conceived as the main vehicle for implementing dairy development programmes in India and much of the success of the ‘White Revolution’ in the country is attributed to cooperative framework of the dairy development strategies. Nonetheless, the potential of the dairy cooperatives in the context of emerging globalised markets is often questioned. The emergence of several integrated marketing models backed by giant multinationals is posing stiff competition to the co-operative models of milk marketing. In this backdrop, this study examines the impact of co-operatives at the farm level based on the data collected from 675 dairy farming households in three states of India - Bihar, Punjab and Uttar Pradesh. These states represent geographical and institutional diversity of milk production and marketing in the country. This study aims at analysing the impact of dairy co-operatives on the farmers’ performance with the adoption of milk quality and safety practices. The findings indicate that the stature of the co-operatives as the multifunctional entity for dairy farmers of rural India is still intact. A cross comparison between the member and the non-member farmers of the dairy co-operatives suggests that the scale of farming and level of adoption of improved animals have been significantly higher for member farmers. Similarly, the co-operative member households contributed significantly higher quantity of milk at higher levels of productivity than their non-member counterparts. The co-operative members were found to have better market access for selling milk. Per unit cost of milk production was on the lower side for the members and they realised higher price of milk than the non-member farmers. More importantly, the members were relatively better adopters of milk safety and hygiene practices’ and had lower additional cost of compliance and that in turn would promote better compliance. Further, the paper identifies the major factors that enabled the dairy farmers to participate in co-operatives. The results of the Probit analysis suggested that the socio-economic and demographic factors like education, experience, scale of farming, size of holdings, caste affiliation, etc. determine the participation of dairy farmers in cooperatives. The membership in the co-operatives gives a distinct advantage to dairy farmers for enhanced milk yield, productivity and quality, and thereby increases their competitiveness in the domestic and international markets. The potential of dairy co-operatives need to be fully exploited in the country, and to empower them further, new initiatives should be vigorously pursued.

Suggested Citation

  • Kumar, Anjani & Shinoj, P. & Jee, Shiv, 2013. "Do Dairy Co-operatives Enhance Milk Production, Productivity and Quality? Evidences from the Indo-Gangetic Plain of India," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 68(3), pages 1-12.
  • Handle: RePEc:ags:inijae:206348
    DOI: 10.22004/ag.econ.206348
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/206348/files/Kumar_Jee68_3.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.206348?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Birthal, Pratap S. & Jha, Awadhesh K. & Tiongco, Marites M. & Narrod, Clare A., 2009. "Farm-Level Impacts of Vertical Coordination of the Food Supply Chain: Evidence from Contract Farming of Milk in India," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 64(3), pages 1-16.
    2. Lele, Uma, 1981. "Co-operatives and the poor: A comparative perspective," World Development, Elsevier, vol. 9(1), pages 55-72, January.
    3. Roy, Devesh & Thorat, Amit, 2008. "Success in High Value Horticultural Export Markets for the Small Farmers: The Case of Mahagrapes in India," World Development, Elsevier, vol. 36(10), pages 1874-1890, October.
    4. Kumar, Anjani & Parappurathu, Shinoj & Joshi, P.K., 2013. "Structural Transformation in Dairy Sector of India," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 26(2).
    5. Kumar, Anjani & Staal, Steven J. & Baltenweck, Isabelle & Lapar, Lucy L., 2010. "Traditional Milk Market in Assam: Potential for Income and Employment Generation," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 65(4), pages 1-13.
    6. Kumar, Anjani, 2010. "Milk Marketing Chains in Bihar: Implications for Dairy Farmers and Traders," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 23(Conferenc), November.
    7. Cunningham, Kenda, 2009. "Rural and urban linkages: Operation flood's role in India's dairy development," IFPRI discussion papers 924, International Food Policy Research Institute (IFPRI).
    8. Fischer, Elisabeth & Qaim, Matin, 2012. "Linking Smallholders to Markets: Determinants and Impacts of Farmer Collective Action in Kenya," World Development, Elsevier, vol. 40(6), pages 1255-1268.
    9. Narrod, Clare & Roy, Devesh & Okello, Julius & Avendaño, Belem & Rich, Karl & Thorat, Amit, 2009. "Public-private partnerships and collective action in high value fruit and vegetable supply chains," Food Policy, Elsevier, vol. 34(1), pages 8-15, February.
    10. Kumar, Anjani & Staal, Steven J. & Singh, Dhiraj Kumar, 2011. "Smallholder Dairy Farmers’ Access to Modern Milk Marketing Chains in India," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 24(2), December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Guoqiang Liu & Dakuan Qiao & Yuying Liu & Xinhong Fu, 2022. "Does Service Utilization Improve Members’ Welfare? Evidence from Citrus Cooperatives in China," Sustainability, MDPI, vol. 14(11), pages 1-20, May.
    2. Cédric Gaillard & Marie Dervillé, 2022. "Dairy farming, cooperatives and livelihoods: lessons learned from six indian villages," Post-Print hal-03483394, HAL.
    3. Elizaphan J.O. Rao & N. Mtimet & E. Twine & I. Baltenweck & A. Omore, 2019. "Farmers’ preference for bundled input–output markets and implications for adapted dairy hubs in Tanzania—A choice experiment," Agribusiness, John Wiley & Sons, Ltd., vol. 35(3), pages 358-373, July.
    4. Anjani Kumar & Devesh Roy & Gaurav Tripathi, 2016. "Contracting by Small Farmers in Commodities with Export Potential: Assessing Farm Profits of Lentil Growers in Nepal," Working Papers id:10899, eSocialSciences.
    5. Bayan, B, 2018. "EU-Brazil proposal on farm support: strengthening agricultural reforms or undermining them?," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 31(01).
    6. Gaillard, Cédric & Dervillé, Marie, 2022. "Dairy farming, cooperatives and livelihoods: lessons learned from six indian villages," Journal of Asian Economics, Elsevier, vol. 78(C).
    7. Kumar, Anjani & Roy, Devesh & Trapathi, Gaurav & Joshi, Pramod Kumar & Adhikari, Rajendra Prasad, 2016. "Can contract farming increase farmers’ income and enhance adoption of food safety practices? Evidence from remote areas of Nepal," IFPRI discussion papers 1524, International Food Policy Research Institute (IFPRI).
    8. Kumar, Anjani & Roy, Devesh & Joshi, Pramod K. & Tripathi, Gaurav & Adhikari, Rajendra P., 2016. "Impact of Contract Farming on Profits and Yield of Smallholder Farms in Nepal: An Evidence from Lentil Cultivation," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235848, Agricultural and Applied Economics Association.
    9. Kumar, Anjani & Saroj, Sunil & Joshi, P.K. & Takeshima, Hiroyuki, 2018. "Does cooperative membership improve household welfare? Evidence from a panel data analysis of smallholder dairy farmers in Bihar, India," Food Policy, Elsevier, vol. 75(C), pages 24-36.
    10. Dongol, P. & Thapa, G. & Kumar A., 2017. "Adoption of Milk Safety Measures and its Impact on Milk Acceptance by Buyers in Nepal," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 30(01), June.
    11. Tripathi, G. & Kumar, A. & Roy, D. & Joshi, P., 2018. "Profits from participation in contract farming: Evidence from cultivators of onion, okra and pomegranate in Maharashtra, India," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277106, International Association of Agricultural Economists.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kumar, Anjani & Saroj, Sunil & Joshi, P.K. & Takeshima, Hiroyuki, 2018. "Does cooperative membership improve household welfare? Evidence from a panel data analysis of smallholder dairy farmers in Bihar, India," Food Policy, Elsevier, vol. 75(C), pages 24-36.
    2. Vandeplas, Anneleen, 2011. "Multinationals or Cooperatives: Does it Matter to Farmers? - A Study of the Dairy Sector in Punjab (India)," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115545, European Association of Agricultural Economists.
    3. Bhanot, Disha & Kathuria, Vinish & Das, Debabrata, 2021. "Can institutional innovations in agri-marketing channels alleviate distress selling? Evidence from India," World Development, Elsevier, vol. 137(C).
    4. Chiputwa, Brian & Spielman, David J. & Qaim, Matin, 2015. "Food Standards, Certification, and Poverty among Coffee Farmers in Uganda," World Development, Elsevier, vol. 66(C), pages 400-412.
    5. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 2, pages 13-38 World Scientific Publishing Co. Pte. Ltd..
    6. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 2, pages 13-38, World Scientific Publishing Co. Pte. Ltd..
    7. Agbo, Maxime & Rousselière, Damien & Salanié, Julien, 2015. "Agricultural marketing cooperatives with direct selling: A cooperative–non-cooperative game," Journal of Economic Behavior & Organization, Elsevier, vol. 109(C), pages 56-71.
    8. Hao, Jinghui & Bijman, Jos & Gardebroek, Cornelis & Heerink, Nico & Heijman, Wim & Huo, Xuexi, 2018. "Cooperative membership and farmers’ choice of marketing channels – Evidence from apple farmers in Shaanxi and Shandong Provinces, China," Food Policy, Elsevier, vol. 74(C), pages 53-64.
    9. Thai Thuy Pham & Ludwig Theuvsen & Verena Otter, 2019. "Determinants of Smallholder Farmers' Marketing Channel Choice: Evidence from the Vietnamese Rice Sector," Asian Economic Journal, East Asian Economic Association, vol. 33(3), pages 281-300, September.
    10. Maxime Agbo & Damien Rousselière & Julien Salanié, 2013. "A Theory of Agricultural Marketing Cooperatives with Direct selling," Working Papers halshs-00906894, HAL.
    11. Saule Burkitbayeva & Emma Janssen & Johan Swinnen, 2020. "Technology Adoption, Vertical Coordination in Value Chains, and FDI in Developing Countries: Panel Evidence from the Dairy Sector in India (Punjab)," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(2), pages 433-479, September.
    12. Malni Kumarathunga & Rodrigo N. Calheiros & Athula Ginige, 2022. "Smart Agricultural Futures Market: Blockchain Technology as a Trust Enabler between Smallholder Farmers and Buyers," Sustainability, MDPI, vol. 14(5), pages 1-20, March.
    13. Corsi, Stefano & Marchisio, Laura Viviana & Orsi, Luigi, 2017. "Connecting smallholder farmers to local markets: Drivers of collective action, land tenure and food security in East Chad," Land Use Policy, Elsevier, vol. 68(C), pages 39-47.
    14. Aniseh S. Bro & Daniel C. Clay & David L. Ortega & Maria C. Lopez, 2019. "Determinants of adoption of sustainable production practices among smallholder coffee producers in Nicaragua," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(2), pages 895-915, April.
    15. Fischer, Elisabeth & Qaim, Matin, 2011. "Smallholder Farmers and Collective Action: What Determines the Intensity of Participation?," GlobalFood Discussion Papers 108551, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    16. repec:lic:licosd:41019 is not listed on IDEAS
    17. repec:hal:journl:halshs-01098762 is not listed on IDEAS
    18. Kirui, Oliver K., 2013. "Drivers of Collective Action and the Welfare Gains of such Initiatives among smallholder farmers: Experiences from Kenya," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161619, African Association of Agricultural Economists (AAAE).
    19. Fischer, Elisabeth & Qaim, Matin, 2011. "Smallholder Farmers and Collective Action: What Determines the Intensity of Participation?," Proceedings of the German Development Economics Conference, Berlin 2011 28, Verein für Socialpolitik, Research Committee Development Economics.
    20. Kydd, Jonathon, 2015. "Ex-post evaluation study of IFPRI’s research on high-value agriculture, 1994–2010," Impact assessments 39, International Food Policy Research Institute (IFPRI).
    21. Wachira Petcho & Sylvia Szabo & Kyoko Kusakabe & Vimolwan Yukongdi, 2019. "Farmers’ Perception and Drivers of Membership in Rice Production Community Enterprises: Evidence from the Central Region, Thailand," Sustainability, MDPI, vol. 11(19), pages 1-17, October.
    22. Yanyuan Zhang & Xintong Wu, 2023. "Risk Management Effects of Insurance Purchase and Organization Participation: Which Is More Effective?," Agriculture, MDPI, vol. 13(10), pages 1-16, September.

    More about this item

    Keywords

    Productivity Analysis;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:inijae:206348. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/isaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.