Procurement, disposal, and employment generation by selected dairies in Kanpur district of Uttar Pradesh.

Abstract

The dairy industry is a vital component of India’s rural economy, providing essential nutrition and livelihood opportunities to millions, particularly small and marginal farmers. This research investigates the economics of milk production and compares dairy activities across cooperative, private, and informal channels in the Kanpur district of Uttar Pradesh. Data were gathered through a purposive multistage sampling approach from 120 dairy farmers in six villages within two blocks—Chaubepur and Shivrajpur. Farmers were classified into small, medium, and large categories based on Standard Livestock Units (SLU). The study examined various cost elements, sources of income, availability of infrastructure, and employment generation. Findings indicated that larger farms benefited from economies of scale, resulting in higher net earnings due to more efficient resource use. Cooperative and private dairies mainly handled milk procurement and processing, while milk vendors operated through localised systems. Infrastructure and employment arrangements showed notable differences, with cooperatives providing more formal employment opportunities, whereas private dairies employed more workers focused on distribution. The results underscore disparities in profitability, infrastructure access, and labour practices among different types of dairy operations. The study calls for targeted policies to improve infrastructure, assist smallholders, and strengthen connections between production and processing units.