Economic analysis of milk production in Madhya Pradesh

The economic analysis of sample producer households has been presented through the costs and returns from milk production across various species. Overall total maintenance cost was the highest for crossbred cows, followed by buffalo and indigenous cattle . Variable cost accounts for the highest share in total cost of milk production. Overall, it constitutes around 89.46, 88 and 90.75% in the case of indigenous cattle, buffalo and crossbred cows, respectively. Feed and fodder cost accounts for a major share followed by labour cost. Average milk yield per animal per day of crossbreds was higher among all the three species across all the categories of households in the state. It was found that overall average productivity of indigenous cattle, buffalo and crossbred cows were 2.83, 5.55 and 7.17 litres/day, respectively. Overall per litre cost of milk production was observed to be highest for buffalo (Rs31.85) followed by indigenous cattle (Rs30.74) and crossbred cows (Rs25.94). On an average, per litre returns from milk production accrued was highest in case of buffalo (Rs10.53) followed by crossbred cow (Rs7.33) and indigenous cattle (Rs2.43).