Value Chain Mapping of Standardized Milk in Cooperative and Private Dairy Plants in Andhra Pradesh

A study on value chain mapping of standardized milk has been carried out in Chittoor and Vishakhapatnam districts of Andhra Pradesh. Apredetermined sample of 80 dairy farmers were drawn randomly from selected four villages of Chittoor and Vishakhapatnam districts of Andhra Pradesh. Two collection centres each from Vishakhapatnam cooperative and Chittoor private processing plants were selected for mapping of formal value chain. Study revealed that the procurement cost of milk for Chittoor private dairy processing plant (Rs. 1.40/l) was found to be higher than Vishakhapatnam cooperative dairy processing plant (Rs. 1.37/l). This was mainly due to handling of less quantity of milk by the private dairy plant. However, 14.60 per cent higher processing cost of standardized milk was witnessed in case of cooperative dairy pant. Higher marketing efficiency of private dairy plant (2.02) than cooperative dairy plant (1.78) was mainly due to lower marketing cost, which reveals better management of private diary plant.