Effect of COVID-19 Pandemic on the Economics of Milk Production in Kerala

Abstract

Demand and supply chain interruptions during the COVID-19 lockdown affected the dairy sector in multiple ways. The present study analyses the effect of the pandemic on the economics of milk production in the Malabar region of Kerala. The pre-tested structured schedule was used to collect primary data from 200 farmers, which was then analyzed using budgetary techniques. The cost of milk production during the lockdown increased mainly due to the shortage of feed and fodder. Reduction in net returns was highest (- `9 per litre) for the large herd-size category, whereas an increase in the cost of milk production (`3.7 per litre) was higher in the medium herd-size category. Among the milk marketing channels, farmers selling milk to consumer households experienced the highest increase in the cost of milk production (`5 per litre) as well as the highest decrease in net returns (`13 per litre) during the lockdown.