Economic analysis of buffalo milk production in Kolhapur district

Abstract

India is the world’s largest producer and consumer of milk and has the world’s largest dairy herd, comprised of water buffalo and indigenous and crossbred cattle. The superiority of buffalo over local cow in milk production has been proved beyond any doubt. Pandharpuri is native breed of Maharashtra. The breeding tract includes Solapur, Sangli and Kolhapur districts of Maharashtra. The study was carried out to estimate per liter costs and returns of buffalo milk production in Kolhapur district. The primary data were collected by visiting 54 sample milk producers from Karveer, Kagal and Panhala tahsils and analyzed by using various statistical tools. The study revealed that the average variable cost of buffalo milk production on sample farms was Rs.32622.43 and average fixed cost was Rs. 12814.57 and total cost Rs. 45437.00. The per litre cost of milk production was Rs. 38.88. The returns over variable cost were Rs. 20761.55 and total cost of milk production was Rs. 7946.98 at overall level. The maximum returns over variable cost Rs. 21621and total cost Rs. 9567were observed in medium size heard group. The benefit cost ratio at overall level was 1.18 which indicates that buffalo rearing is profitable business as the magnitude of B:C ratio is more than one. Sample milk producers ware operating in profit zone as the break-even output 931 litres per lactation at overall level was less than the actual output i.e. 1168 litres. The factors responsible for buffalo milk yield of sample households were number of buffaloes, quantity of green fodder and concentrates fed to animal and human labour. The study suggested that milk producers may be motivated to increase the use of green fodder and concentrate for securing higher milk yield.