A Study of Organized Milk Marketing in Bihar

The milk producers have been deprived of their due share in increased consumer’s price of milk in Bihar. Almost two times increase in the processing cost and profit margin to milk unions might be due to inefficient use of milk plants and perhaps cheap availability of labour resource. The smaller dairy cooperative societies in general and medium sized in particular performed comparatively better in collection of milk from their members. The average collection of milk in lean (slack) period went down as low as 35 percent as that of flush season because of several reasons. Hence, there is an urgent need to make available required technology and input to farmers for growing green fodder in slack season. An arrangement is also required to be made to supply milk for marriage parties in rural areas, which will help in sustaining the supply of milk to the dairy cooperative societies. Producer’s share in consumer’s rupee declined during the period under study, which needs to be increased by efficient management of Dairy plants and marketing system.