An Economic Analysis of Investment Pattern of Khoya (Indian Dairy Product) Producers in Almora District of Uttarakhand, India

Background: Khoya serves as an important raw material for the Indian sweet industry and maintains consistently high demand due to cultural and festive consumption patterns. Despite its economic importance, khoya production in hill regions such as Uttarakhand continues to rely on traditional processing methods with limited mechanisation and infrastructure support. While several studies have examined dairy farming economics in India, empirical evidence on investment allocation patterns in khoya-based enterprises, particularly in hill production systems, remains extremely limited. This lack of information constrains policy formulation and technological interventions aimed at improving productivity, profitability, and sustainability of rural dairy enterprises. Aims: The aim of this study is to analyse the investment pattern of khoya producers in Almora district of Uttarakhand and examine the distribution of capital investment across livestock, infrastructure, and machinery among different categories of producers. Study Design: The study adopted a descriptive and analytical research design based on primary survey data. Place and Duration of Study: The study was conducted in selected areas of Almora, Uttarakhand, during the agricultural year 2024–25. Methodology: A multistage sampling technique was employed to select 200 khoya-producing households, categorized into small, medium, and large producers based on herd size. Primary data were collected through structured interviews and analysed using descriptive statistical tools to estimate the composition and distribution of fixed investments in khoya production enterprises. Results: The findings revealed that khoya production is a capital-intensive enterprise, with an average investment of ₹6,92,430 per farm. Livestock constituted the largest share (80.55%) of total investment, of which milch animals alone accounted for 72.73 percent. Investment in cattle sheds and storage facilities contributed 14.16 percent, while machinery and equipment represented only 5.29 percent, indicating low mechanisation in the study area. The share of investment in livestock increased with herd size, while smaller producers allocated a relatively higher proportion of resources to infrastructure. Conclusion: The study concludes that livestock remains the dominant investment component in khoya production, while inadequate mechanisation limits productivity gains. Improved investment allocation, technological adoption, and institutional support are essential to enhance productivity, profitability, and sustainability of khoya-based enterprises in hill regions.