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Productivity and Efficiency Analysis of Haryana’s Dairy Industry

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Abstract

The study assesses the total factor productivity (TFP) growth and efficiency levels in Haryana's dairy processing industry using Tornqvist index and data envelopment analysis models over the period 1984'2008. It is found that Haryana's dairy processing industry has experienced positive growth in TFP during the 1980s. According to our TFP estimates during 1990s and 2000s, Haryana's dairy processing industry performed poorly. The decomposition of TFP growth indicates that growth is driven more by increase in scale of processing than by technical efficiency changes. Finally, it is noticed that in Haryana a high volume of milk does not reach to the milk processing plants. For efficient utilization of existing processing capacity in dairy plants, a systematic investment is needed in logistics of raw milk collection and infrastructure.
... Dairying has been considered as one of the activities helpful in alleviating the poverty of rural poor (Ohlan, 2011).In many rural settings, livestock farming is the most important part of individual household livelihoods. On average, a farmer can earn up toRs. ...
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It is essential to feed the ever-increasing global population. The status of poverty, hunger and undernutrition reveal social misery, economic inequalities and unhealthy environmental conditions of a country. These have strong connections with food and food systems.Many Indians are also struggling with the problem of poor access to sustainably available adequate nutritious foods. Agriculture and dairy sectors can play a major role in improving food and nutrition security by increasing the quantity and diversity of food. Therefore, to attain the goals of zero hunger and food security in India, it is vital to appreciate the contribution of agriculture and dairy sectors.The present study is an attempt to analyze the agriculture and dairy sectors contribution toalleviating poverty, hunger, and malnutrition and achieving food and nutrition security in India.
... The dairy farmer's cattle also serve as an asset at the time of urgency [16]. Dairy farming has been considered useful in alleviating the poverty of rural masses [17]. A farmer can earn 6500 rupees per month from this dairy farming [18]. ...
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Dairy value chain resilience is significant for food security and socioeconomic sustenance. Core value chain process series: milk production, milk collection, milk processing and sales and distribution duly facilitated by support activities decide the outcome of this value chain. It has become an opportunity to provide self-employment, empowerment of women and economic help to scores of poor milk producers in an emerging economy such as India. On one hand, the dairy value chain can offset the land and seasonal limitation of agriculture and on the other hand, it can shrug off the constraints gradually through economies of scale and enable market access to provide more traction for this dairy sector. Overseeing the value chain with the Three P's dimensional (people, planet and profit) outlook, milk producer organizations can address the sector pitfalls and concern more comprehensively with the help of systematic production, services, risk assessment and periodical core stakeholders' review.
... The DEA was conducted using DEAP Version 2.1 [82]. This program has previously been used by Singh et al. [18,92], Gradziuk [71], Ohlan [85,93], Madau et al. [28], Syp and Osuch [57], Silva et al. [60], and Popović and Panić [19], among others, in studies on the efficiency of the dairy sector (whether dairies or dairy farms). Other calculations were performed using IBM SPSS Statistics, version 27. ...
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Several studies conducted in various countries have addressed the technical efficiency of dairies. However, there is a paucity of research on the technical efficiency of dairies in Poland, particularly in relation to their legal form (i.e., cooperatives vs. non-cooperatives). The existing literature also does not provide insights into the technical efficiency of these entities with respect to different regions’ milk production capacity. Therefore, this paper aims to: (1) evaluate and compare the technical efficiency of cooperative and non-cooperative dairies in Poland, and (2) examine dairies’ technical efficiency due to spatial disparities in milk production potential. We use data envelopment analysis (DEA) to investigate the technical efficiency of 108 dairies in Poland for the year 2019. The milk production capacity of provinces is examined by applying the zero unitarization method. The results show that when assuming constant returns to scale (CRS), dairy cooperatives are less technically efficient than non-cooperatives, whereas when assuming variable returns to scale (VRS), these differences are not statistically significant. For inefficient dairies, we observe the greatest potential for improvement in labor costs and depreciation. Both cooperatives and non-cooperatives operate mostly under decreasing returns to scale. Thus, the potential for enhancing the technical efficiency of dairies through the consolidation process seems to be exploited. Our findings reveal that the technical efficiency of dairies in Poland is not differentiated by regional milk production potential.
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Dairy development has assumed significant importance in the rural economy of India due to its immense potential for supplementing income and employment generation for the rural people. Recently, under the Town Milk Supply Scheme, Government of Assam has attempted to increase the milk production under organized sector. Present study is an attempt to study the economics of organized dairy cattle farms in Jorhat district of Assam started under the scheme. The study was done by selecting 100 commercial dairy farmers under organized dairy sector in Jorhat district of Assam. In the study area 81 dairy farmer found to be small category, 10 dairy farmers were identified to be in medium category and nine dairy farmers were in large category of dairy farmer. The total milk production in 100 sample dairy farms was reported as 3445 litres per day with average milk production of 8.79 litres per day per milch animal. The total milk production per day per farm in small dairy farms was observed as 21.57 litres, in medium dairy farms as 58.7 litres and in large as 123.44 litres. Overall the average milk production per farm in 100 sample households was estimated to be 34.45 litres per farm per day. With more than 94 percent of the investments the dairy cattle’s especially the cross breed and Indian breed accounted for the maximum share of the investments. A return of Rs. 812.68 per farm per day in small category of dairy farms, Rs. 2210.85 per farm per day in medium category of dairy farms, Rs. 4497.81 per farm per day in large category of dairy farms was observed. The income from sale of milk constituted the maximum proportion of the income (more than 98 percent) in all the categories of the dairy farm. The returns from sale of manure/cow dung and male calves also contributed to the total income but in minimal way. It was observed that the profit per farm per day increased from Rs. 248.53 from small farms to Rs. 690.86 in medium farms to Rs. 773.9 in large dairy farms. Feed cost influence was positive and significant. Hence, increase in the use of feed would increase the revenue from dairy farms by 1.66 percent. Â
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