Dairy cooperative institutions for sustainable income of farmers in Karnataka

Dairy enterprise is one of the important activities of the rural population of our country. Next to agriculture, it not only provides continuous income and improves dietary standards of family but also supplements the income and reduces unemployment to a large number of the rural poor. The advent of “Operation Flood” has made the farmers in rural areas to realize the importance of dairy units as the potential source of additional income and employment. The present paper attempted to analyse the economic analysis of milk production by dairy entrepreneurs of Milk Union of Belagavi district of Karnataka. Multistage sampling procedure was followed for selection of 40 sample member and non-member dairy entrepreneurs. The data pertained to the agricultural year 2017–18. Budgeting technique was used to analyze the data. The annual total variable cost incurred by the members of milk cooperative societies in production of milk of buffalo, crossbreed cow and indigenous cow was 33, 164.94, .4, 1069.50 and 25, 401.30 respectively and 27, 222.77, 36, 638.70 and 23, 282.80 for non-member dairy farmers. The major components of fixed cost of dairy units are depreciation on dairy animals and building. The cost of depreciation on crossbreed cow was found to be more in both member ( 5, 990.60) and non-member dairy farmers (5, 671.50) compared to depreciation on building and machinery. The total cost incurred on buffalo, crossbreed cow and indigenous cow by member dairy farmers was 39, 965.42, 51, 054.20 and 29, 930.50 respectively and 33, 545.89, 45, 499.30 and 26, 897.30 by non-member dairy counterparts. The gross return realized by member farmers of dairy cooperatives was 77, 060.10, 99, 114.78 and 52, 261 from buffalo, crossbreed cow and indigenous cow respectively. Similarly, for non-member farmers, the gross return in that order was 56, 396.50, 80, 418.27 and 42, 972.60 per animal per year. Returns from sale of milk contributed the maximum share. The B: C ratio of milk production of buffalo, crossbreed cow and indigenous cow of members of dairy cooperatives was 1.92, 1.94 and 1.74 respectively and in that order for non member was 1.68, 1.77 and 1.59. Since B.C ratio in case of member farmers was higher compared to non-member farmers, the impact of milk union on the dairy entrepreneurs is a profitable venture and has positive influence on the standard of living and economic status of the farming community in the study area.