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Strengthening Value Chain of Compound Cattle Feed

In: Financing Agriculture Value Chains in India

Author

Listed:
  • Smita Sirohi

    (National Dairy Research Institute (NDRI))

  • B. S. Chandel

    (National Dairy Research Institute (NDRI))

  • Bitan Mondal

    (Vishwa Bharti)

  • Sammu Kumar

    (National Dairy Research Institute (NDRI))

  • S. Chowdhury

    (National Dairy Research Institute (NDRI))

  • D. K. Mahawar

    (National Dairy Research Institute (NDRI))

Abstract

Huge population of livestock in India offers market potential for the development of animal feed industry. To identify the main areas of intervention for strengthening the value chain in compound cattle feed, a detailed analysis has been done based on the primary data collected from various actors in the value chain (cattle feed manufacturers, input and service suppliers, dealers, retailers and end consumers) located in the states of Punjab and Haryana, representing dynamic dairy production environment and in Odisha and West Bengal, where dairy production is in a transient phase of development. The midstream value chain analysis indicated that manufacturing units had about 18–22% profits margin before tax. The major limitations faced from the upstream value chain were high volatility in prices of feed ingredients, erratic power supply, unskilled workforce, lack of quality testing facilities and control measures and inadequate financial services by the banks (especially, public sector banks) for quick and hassle-free working capital provisioning. The downstream analysis examining the efficacy of the compound cattle feed showed that the productivity enhancement in buffaloes was very small, while in crossbreds the results were encouraging. The study suggests interventions in four major areas, viz. quality assurance and feed safety, maintaining profitability, capacity and skill development, and value chain financing for strengthening the cattle feed value chain in the country.

Suggested Citation

  • Smita Sirohi & B. S. Chandel & Bitan Mondal & Sammu Kumar & S. Chowdhury & D. K. Mahawar, 2017. "Strengthening Value Chain of Compound Cattle Feed," India Studies in Business and Economics, in: Gyanendra Mani & P.K. Joshi & M.V. Ashok (ed.), Financing Agriculture Value Chains in India, pages 171-185, Springer.
    • Handle: RePEc:spr:isbchp:978-981-10-5957-5_10
    DOI: 10.1007/978-981-10-5957-5_10
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