Economic comparison of production of dairy products in private and cooperative sectors of Uttarakhand

In order to work out economics of milk and milk products, estimation of cost and returns from milk production and apportionment of joint cost for unit cost of milk products was estimated. The private milk producers enjoyed a significantly higher net returns of Rs. 8.21/litre compared to cooperative milk producers (Rs.3.8/litre) because private milk producers get comparatively higher price for the milk sold by them. Also the difference between most of the cost components of Ghee and paneer production in private and cooperative system was statistically found significant. The important policy implications of the study were development of efficient milk collection centres with proper cooling facilities and transportation networks at farmers’ level by the cooperatives, the cost of milk production should be besides fat and SNF, in fixing the procurement price of milk, the private milk product producers should enhance their scale of production in order to reduce manufacturing cost and also they should economise on procurement cost of milk, and should also focus on adequate planning and increased market sales.