Economic Analysis of Milk Marketing in Karnataka State of India

Marketing is as critical to better performance in dairying as dairy farming itself. There has been a considerable progress in the overall production in the dairy sector in India. However, without a proper marketing, the country would not attain the expected rate of growth in farming. The present study was carried out with the objective a)to study the production, consumption and disposal pattern of milk, b)to examine the factors affecting the marketed surplus of milk and c)to workout the marketing efficiency of different milk marketing channels. The study found that 54 per cent of marketed surplus was marketed throuhg un-organised sector. It was also found that marketed surplus was depending positively and significantly on the level of milk production and negatively on the family size and operational land holding. Three marketing channels namely, producer-consumrer, producer-vendor- consumrer and producer-vendor processor-consumer were found to be operating in the area. The price received by the household and marketing efficiency were highest in the first channel.