In farmers. In India growing at least one

In India the dairy farming still
exists as a subsidiary to the agriculture – additional income to agricultural
labours, small and middle farmers. In India growing at least one or two dairy
animals by farmers have many advantages of economic importance.Dairy animals
fits well in any diversified farming programmes.Dairy animals are efficient
convertors of roughage to produce milk. The prices of most of the agricultural
produce show great fluctuation where as milk will not have such fluctuations in
price. The economics can be calculated daily also. Improves the family diet in
terms of nutrition. The male animals are utilized for draft purpose. Even after
death, the carcasses are utilized

ECONOMIC FACTORS

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·        
Economic milk production mainly depends upon the
economic feed formulations.

·        
The effective breeding policy – Selection of
high yielding animals.

·        
Dry roughages will improve the butter fat
content – high payment for the milk.

·        
The managemental conditions are cardinal in
maintaining the optimum level of production and also to keep up the animal
health

·        
The optimum use of land, manure resources to
produce fodder with less investment.

·        
Better labour efficiency

·        
Efficient disposal of milk plays half of the
economic role in dairying

·        
Sound business practices appropriate to dairy
farming is important at all levels. i.e., purchases of inputs, and also
disposal of products and  by products 

POST
PRODUCTION OF MILK

· 
A medium or big size dairy farm simultaneously
they can have either processing of milk 1 production of many dairy productions.

· 
Simultaneous establishment of processing plant
will increase the income of dairying 30-40% and establishment of products
factory will increase the profit by 40-50 % over dairy farming

FACTORS INFLUENCE DAIRY FARM

· Selection
of good animals

· Balanced
feeding

· Green
fodder feeding

· Conservation
of greens

· Formulation
of concentrates with unconventional ingredients

· GMP

· Uses
of agricultural by products

· Effective
utilization of labour

· Replacement
of the herd

· Milk
price

· Advertisement

· Conservation
in to milk products

 ECONOMIC INSTITUTIONS SUPPORTING DAIRY
DEVELOPMENT PROGRAMMES / AGENCIES

· 
For starting any business, the foremost
important resource one should give prime importance is finance

· 
Several institutions are concerned either
directly or indirectly in the activities or providing finance to establish
dairy farm, milk collection centres, dairy plants etc

· 
Indian
Dairy Corporation

· 
NDDB

· 
NABARD

· 
Commercial
Bank

· 
Cooperative

MILK PRICING

· 
The pricing of any commodity is always based on
its cost price and the price paid by the consumer

· 
Any pricing system followed should be

· 
Remunerative to the producers.

· 
Competitive to the local market prices.

· 
Discourage adulteration and promote quality
consciousness.

· 
Based on milk constituents i.e. Fat & SNF

 PRICING ON
PRO-RATA FAT BASIS MILK PROCUREMENT

· 
Price of milk is fixed proportional to the fat
content of milk

· 
This system will assign practically zero value
for value for S.N.F content 

PRICING ON TWO AXIS BASIS

· 
Based on both fat and SNF, it is called as “two
access pricing”

· 
Used in pricing cow as well as buffalo milk
where both fat and SNF contents are taken into accounts.

· 
The prices of fat and SNF are fixed
depending-upon the market price of GHEE and skim milk power

Normally the price of
fat will be declared by thunion for different seasonsand the price of SNF will
be 2/3 price of the fat