Multivariate Typology of Milk Producing Households Based on Farm and Socioeconomic Characteristics in Uttarakhand Hills: Explaining Economic Sustainability in Dairy Farming

The paper has analyzed the economic efficiency in dairy farming as a measure of economic sustainability of dairy systems in the hills of Uttarakhand state. The study conducted in the districts of Nainital and Almora, is based on the data collected through personal interview method from 120 households having at least one milch animal. Farm household typologies were constructed by using two multivariate statistical techniques, viz. Principal Component Analysis (PCA) and Cluster Analysis (CA). Four homogenous groups (clusters) were obtained. Stochastic frontier production analysis was carried out to estimate the technical efficiency in milk production across different clusters of households. The economic efficiency index based on five economic indicators, viz. livestock productivity, labour productivity, technical efficiency index, marketed surplus and output-input ratio was computed. Some policy suggestions are given for supporting sustainability of smallholder dairying in the study area.