An economic analysis of milk production among different breeds of milch animals in Punjab

The present study was undertaken to estimate the costs and returns of milk production among different milch animals on different herd size categories in Punjab. The primary data for the year 2017-18 were collected from 80 farmers comprised of 40 small, 26 medium and 14 large dairy farmers from two highest milk producing districts namely Ludhiana and Patiala in central region of Punjab. The study revealed that on an average, the annual net cost of rearing a buffalo, crossbred cow and indigenous cow was estimated to be Rs. 81715.10, Rs. 82645.75 and Rs. 64261.60 respectively, yielding a net income of Rs. 33470.62, Rs. 25609.99 and Rs. -1419 respectively. Feed and fodder was the major cost component in variable cost followed by labour cost. The average cost of milk production per litre for buffalo, crossbred and indigenous cow was estimated to be Rs. 28.80, Rs. 21.53 and Rs. 28.63 respectively. The average net returns per litre of milk for respective milch animals were Rs. 11.76, Rs. 6.57 and Rs. -0.42. The study revealed that buffaloes were more economical than crossbred and indigenous cows as the price of buffalo milk (Rs. 40.59) was higher than that of cow milk (Rs. 28.21) due to the high fat content in it. Thus, the buffalo rearing was more popular in the study area as their percent share in total milch animals was 69.14 percent. The cost of milk production and income measures obtained in the study suggested that buffalo milk production is relatively more profitable than crossbred cow and indigenous cow.