Economic Analysis of Milk Production in Raghuraj Nagar Tashil of Satna Districts Madhya Pradesh

This study evaluates the economic aspects of milk production to support improved planning and rural development policies. It focuses on profitability, challenges, and opportunities in the dairy sector. A stratified random sampling method was used to ensure proportional representation, involving 75 milk producers—50 farmers from 10 villages in Raghuraj Nagar Tehsil, Satna district, and 25 dairy producers from the broader region—between January 2020 and June 2021. The study analyzes cost and return data across farmer milk producers, and dairy milk producers categorized into First, Second, and Average groups. Total milk production of all milk producers per lactation was 3,651,600 liters (First group), 722,400 liters (Second groups), and 543,840 liters (Average groups). While individual milk producers in First group, second groups and Average groups produced 7,303.20, 28,903.20, and 16,677.60 liters, respectively. The cost per milching animal per lactation was Rs. 56,180.10 (First groups), Rs. 37,461.06 (Second groups), and Rs. 47,018.57 (Average groups). While production cost per producer First group, Second groups and Average groups was Rs. 191,349.06, Rs. 397,466.83, and Rs. 294,396.94 respectively. The value of milk produced per milching animals was Rs. 64,440.00 (First group), Rs. 109,957.75 (Second group), and Rs. 81,384.55 (Average groups). While value of milk produced per milk producer First group, Second groups and Average groups were Rs. 219,096.00, Rs. 1,011,612.00, and Rs. 542,022.00 respectively. The value of other than milk produced per milching animals was Rs. 18750.00, (First group). Rs 6250.00 (Second group), and Rs. 16000.00 (Average groups) While value of other than milk produced per milk producer First group, Second groups and Average groups were Rs. 63750.00, Rs. 62000.00 and Rs. 59335.00 Respectively. Gross returns per milching animal were Rs. 83,190.00 (First groups), Rs. 116,207.75 (Second groups), and Rs. 97,384.55 (Average groups). While gross return per produced First group, second groups and Average groups were Rs. 282846.00, Rs. 1073612.00 and Rs. 601357.00 respectively. Net returns of per milching animal were Rs. 27,009.90(First groups), Rs. 78,746.69 (Second groups), and Rs. 46,626.27(Average groups). While net return per producer, First group, second groups and Average groups were Rs. 91496.94, Rs. 676145.17 and Rs. 306960.06 respectively. The per liter milk production cost per milching animal was Rs. 17.42(First group), Rs. 9.93 (Second groups), and Rs. 13.37(Average groups). While per liter milk production cost per producer First group, second groups and Average groups were Rs. 17.47, Rs. 11.60 and Rs. 14.09 respectively. The benefit-cost ratio (BCR) per milching animal was 1.48:1(First group), 3.10:1(Second groups), and 1.92:1(Average groups). While the benefit-cost ratio (BCR) per milk producer First group, second groups and Average groups were 1.48:1, 2.70:1 and 2.04:1 respectively. Indicating highest profitability in the Second groups.