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Is traditional milk marketing and processing viable and efficient? An empirical evidence from Assam, India

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  • Kumar, Anjani
  • Staal, Steven J.

Abstract

Integrated food supply chains serving urban areas are the fastest growing and most visible market phenomenon, yet small scale milk market agents and chains supplying fresh milk and traditionally processed dairy products still play a very large role in most of the developing countries. This study estimates the costs and returns of milk marketing and processing, identifies the drivers for participation in high value milk processing and value addition and estimates the cost efficiency and its determinants in the traditional milk sector in Assam. The study observed that raw milk trading and processing offers good opportunities for income generation to small scale milk traders and processors. The raw milk marketing and trading is reasonably efficient and has the potential for continued dominance in spite of emerging integrated food supply chains.

Suggested Citation

  • Kumar, Anjani & Staal, Steven J., 2010. "Is traditional milk marketing and processing viable and efficient? An empirical evidence from Assam, India," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 49(3), pages 1-13.
    • Handle: RePEc:ags:qjiage:155549
    DOI: 10.22004/ag.econ.155549
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    References listed on IDEAS

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    1. Saha, Amit & Garcia, Otto & Hemme, Torsten, 2004. "The Economics of Milk Production in Orissa, India, with particular Emphasis on Small-scale Producers," PPLPI Working Papers 23761, Food and Agriculture Organization of the United Nations, Pro-Poor Livestock Policy Initiative.
    2. Hazarika, Gautam & Alwang, Jeffrey, 2003. "Access to credit, plot size and cost inefficiency among smallholder tobacco cultivators in Malawi," Agricultural Economics, Blackwell, vol. 29(1), pages 99-109, July.
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    Cited by:

    1. Cheelo, Tulumbe, 2019. "Milk production and marketing channel decisions of smallholder farmers in the Zambian milk value chain," Research Theses 334747, Collaborative Masters Program in Agricultural and Applied Economics.
    2. 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(1).
    3. Johnson, Nancy L. & Mayne, John & Grace, Delia & Wyatt, Amanda, 2015. "How will training traders contribute to improved food safety in informal markets for meat and milk? A theory of change analysis:," IFPRI discussion papers 1451, International Food Policy Research Institute (IFPRI).
    4. Moturi, Walter & Obare, Gideon & Kahi, Alexander, 2015. "Milk Marketing Channel Choices for Enhanced Competitiveness in The Kenya Dairy Supply Chain: A multinomial Logit Approach," 2015 Conference, August 9-14, 2015, Milan, Italy 212477, International Association of Agricultural Economists.
    5. 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.
    6. A Bose & R Suryaprakash, 2021. "A Perspective View of Cost and Returns Structure - Especially Break Even Analysis in Marketing of Milk," ComFin Research, Shanlax Journals, vol. 9(2), pages 14-18, April.
    7. Kumar, Anjani & Mishra, Ashok K. & Saroj, Sunil & Joshi, P.K., 2019. "Impact of traditional versus modern dairy value chains on food security: Evidence from India’s dairy sector," Food Policy, Elsevier, vol. 83(C), pages 260-270.

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