Economic analysis of different milk products manufacture at farms in PunjabState

Value addition has particular importance for dairy producers in especially where the producers have limited access to the raw milk market or where the value of milk is economically less than the value of value-added milk and milk products. Keeping in view the benefits of the value addition of milk, the present study was designed to assess the economic feasibility of the value addition of milk at farm level which could be considered as the best alternative in order to sustain and increase the income level of the dairy farmers. Out of total 50 farm households, 19 small farmers, 16 medium farmers and 15 large farmers selected from 8 districts of Punjab in 2018-19. Out of total 50 farm households, the maximum number i.e. 15 (30 per cent) farm households engaged in manufacturing dahi, followed by lassi and ghee (30 per cent). Each 22 per cent of the sample households were involved in manufacturing paneer and khoya. Season-wise most of the medium farmers in the summer season and large farmers in the winter season utilized liquid milk for the preparation of value-added milk products. The value addition of milk could be generated about 62 per cent more income as against the sale of liquid milk on small farmers, while medium and large producers earned 68.67 and 58.88 per cent more income from the value addition of milk as against the sale of liquid milk. The value addition of milk has been generating higher income than that of the sale of liquid milk and therefore, the study strongly recommends the value addition of milk at the farm level for earning sustaining income from dairy farming in the Punjab state.