An Economic Analysis of Milk Production in Bihar

Dairy farming has emerged as an important source of livelihood, particularly on small holder households. The efficient management of dairy cooperative system has facilitated milk production and marketing in Bihar. An attempt was made to analyze the milk contribution to dairy co-operative, producers' share in consumer rupee and cost of milk production in Bihar. Per litre cost of milk production varied from Rs. 10.12 for crossbred cows to 13.90 and Rs. 13.57 for buffalo and local cows, respectively, which are higher than price paid by co-operatives for standard milk (fat-6% and SNF-21%). Herd size and type of milch animal along with parity had significant influence on cost of milk production. Production cost is likely to decrease with increase in size of unit and in production of crossbred cows in herd. More than two-third of milk produced by co-operative members is marketed through dairy co-operatives in Bihar. The producers' share in consumer rupee is about 58% for all categories of herd since all are marketing their milk through co-operatives only. Dairy farmers should also be advised for meeting the requirements of feed by providing desired nutrients through feeding of green fodder which not only reduces intake of concentrates but also helps in reducing the cost of production. Treatment of dry fodder with urea helps in improving its nutritive value, and such technologies may be popularized to make feeding balanced and cost effective