Department of Business Administration, Ch. Devi Lal University, Sirsa – 125 055, Haryana.
This paper has analyzed the impact of value chain formed though milk union or cooperative societies on the efficiency of 200 dairy farms in Haryana using stochastic production frontier approach. Milk producers use a wide range of inputs in order to create value and want to earn pure profit by becoming an active part of the cooperative value chain. The study has found a high degree of variation in the technical efficiency of dairy farmers who are actively engaged in cooperative value chain and who remain apart from the supply chain. Dairy farmers can gain considerable higher profits just by increasing the efficiency in their operations. The possession of hybrid animals, permanent labourers for better supervision, medicare and institutional finance affect efficiency positively. The study has recommended the use of modern high-yielding livestock breeds in the dairying along with provision of medicare facilities at their doorstep. A better access to institutional credit of the dairy farmers has also been suggested. The study has envisaged expansion in the supply chain network of cooperative milk societies in Haryana for enhancing the efficiency and profitability of the dairy sector.
