Economic analysis of marketing margin of milk and milk products - A study of Jaipur Dairy Cooperative

Abstract

A study was conducted on marketing of milk and milk products at Jaipur Dairy Cooperative, Jaipur (Rajasthan) during the financial year 2009-10. An effort was made for economic analysis of marketing margins earned by different market functionaries in marketing of milk and milk products. The study was based on secondary data of Jaipur Dairy Cooperatives which were collected from the monthly progress reports, audit reports and other related records of Rajasthan Cooperative Dairy Federation, Jaipur dairy plant as well as from the milk collection/chilling centres. In order to study the marketing margin, the data were collected on different aspects viz., chilling charges, transportation cost and commission to milk collection cooperative societies, water and electricity charges, repairs and maintenance, depreciation and interest on capital expenditure from Jaipur Dairy Plant. The data were arranged in simple tabular form, and then simple averages and percentages were computed. It was found that product-wise highest margin was received from ghee (29.26%) and agencies-wise highest margin was also received from ghee which formed 76% of the total margins earned by distributors. These units margins of milk and milk products are important for policy and decision makers while making policies and developmental programmes related to dairy sector for boosting the economy.