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Study of Dairy Sector in Potential Districts of Rajasthan (India) Alon G with Its Market Analysis

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Study of Dairy Sector in Potential Districts of Rajasthan (India) Alon G with Its Market Analysis Journal of Business Management and Research (JBMR) ISSN(P): 2250-2343; ISSN(E): Applied Vol. 5, Issue 1, Jun 2015, 9-14 © TJPRC Pvt. Ltd. STUDY OF DAIRY SECTOR IN POTENTIAL DISTRICTS OF RAJASTHAN (INDIA) ALON G WITH ITS MARKET ANALYSIS SONALEE CHAUHAN 1 & JOLLY MASIH 2 1MBA, Department of Agribusiness, Institute of Agribusiness Management, SK Rajasthan Agricultural University, Bikaner, Rajasthan, India 2Research Scholar, Department of Agribusiness, Institute of Agribusiness Management, SK Rajasthan Agricultural University, Bikaner, Rajasthan, India ABSTRACT India is now world's largest milk producer, accounting 16% of world's total milk production with Indian dairy contributing 22% to Agriculture GDP. India has one of the largest livestock populations in the world of 57.3% buffaloes and 14.7% cattle globally. India is the largest producer & consumer of milk with a production of 132.9MMT/annum and per capita milk availability of 290g/day. India is set to become world’s most populated country by 2030 with around 1.53billion people and 19 % of world’s population by the same time. The dairy sector in the India has shown remarkable development in the past decade and India has now become one of the largest producers of milk and value-added milk products in the world. In this study the milk market of Rajasthan was analyzed as Rajasthan is 2 nd largest milk producing state with large milk pool. The study includes thorough assessment about the demand of different milk and milk variants (ghee, buttermilk, lassi, paneer, dahi, butter) in potential districts of Rajasthan i.e., Jaipur, Jodhpur, Kota, Alwar, Ajmer, Bharatpur and Bikaner through detailed study of 100 farmers, 20 industry experts, 50 retailers, 50 distributors and 80 consumers. The ranking of different milk and milk products was also carried out through the study. The perception of farmers regarding the working, payments and other benefits provided by the exiting cooperative dairies in Rajasthan and the preference of consumers regarding the purchase of a particular milk or milk products and related factors (quality, price, availability and brand name) effecting the purchasing behavior was also the part of the study. KEYWORDS: Cooperative Dairies, Dairy Variants, Milk Potential, Purchasing Behavior INTRODUCTION India has the highest livestock population in the world most of which are milch cows and milch buffaloes. India, world's largest milk producer, accounting for more than 16% of world's total milk production, is the world's largest consumer of dairy products. India ranks first among the world's milk producing nations, achieving an annual output of 132.4 million tonnes of milk during 2012-13 recording the growth of 3.5% as per National Dairy Development Board (NDDB) data. India's milk production accounts for approx. 16% of the world total output. The anticipated milk production in India for the year 2013-14 is about 140 million tones according to NDDB. Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu are the milk surplus states in India. Uttar Pradesh continued to remain the leading milk producer, followed by Rajasthan and Gujarat, whereas the per capita demand was maximum in Punjab followed by Haryana. Exports of dairy products have been growing at the rate of 25% per annum in www.tjprc.org [email protected] 10 Sonalee Chauhan & Jolly Masih the terms of quantity terms and 28% in terms of value since 2001. Significant investment opportunities exist for the manufacturing of value-added milk products like milk powder, packaged milk, butter, ghee, cheese and ready-to-drink milk products. Rajasthan is a potential state in terms of milk production. It recorded milk production of 13.946 million tons for the year 2012-13 with a share of 11% in the country’s total milk production second after Uttar Pradesh with milk production of 23.330 million tons( ASSOCHAM. India). The CAGR for milk production in Rajasthan as recorded from 2005-06 to 2012-13 was 6.94%.Milk Procurement in Rajasthan (2012-13) accounted to be 1931(‘000kg/day) according to the estimates of Rajasthanstat.com. OBJECTIVES OF STUDY • Study of market for milk and other dairy variants in potential districts ofRajasthan • To study the perception of farmers regarding cooperative dairies and purchasing behavior of consumer METHODOLOGY Study Area The entire study was carried out in different Districts of Rajasthan Districts in Rajasthan Table 1: Table showing the Districts in Rajasthan Covered under the Study District Population 1. Jaipur 6,626,178 2. Jodhpur 3,687,165 3. Kota 1,951,014 4. Bikaner 2,363,937 5. Alwar 3,674,179 6. Ajmer 2,583,052 7. Bharatpur 2,548,462 COLLECTION OF DATA Primary Data: Primary data collection through field surveys (schedules) and telephonic conversations Secondary Data: Data collected from external sources such as TV, radio, internet, journals, newspapers, reviews, research articles etc RESEARCH DESIGN Both exploratory and descriptive researches were carried out SAMPLING TECHNIQUE Convenience Sampling : Farmers, Retailers, Distributors, Consumers Judgmental Sampling: Industry Experts (from marketing officers of reputed firms like Amul, DS group, Reliance, Kota fresh, Saras Dairy etc.) ANALYTICAL TECHNIQUE : Garrett ranking technique will be applied to rank variables. www.tjprc.org [email protected] Study of Dairy Sector in Potential Districts of Rajasthan 11 (India) along with its Market Analysis Where, Rij=Rank given for ith and jth individual Nj= Number of items ranked by jth individual The percentage position of each rank thus obtained into scores by referring to the table given by Henry E. Garrett. Then for each factors the scores of individual respondents will be added together and divided by the total number of the respondents for whom the scores will be added. These mean scores for all factors will be arranged in the descending order, ranks given and most important aspects identified. Table 2 Rank Percentage Position Garrett's Table Value 1 100(1-0.5) 7 = 7.14 79 2 100(2-0.5) 7 = 21.43 66 3 100(3-0.5) 7 = 35.74 57 4 100(4-0.5) 7 = 50 50 5 100(5-0.5) 7 = 64.29 43 6 100(6-0.5) 7 = 78.57 34 7 100(7-0.5) 7 = 92.86 21 SAMPLE UNITS AND SIZE Table 3: Table Showing the Different Intermediaries Involved in the Study Sample Size Farmers 100 Industry Experts 20 Distributors 50 Retailers 50 Consumers 80 Total 300 FINDINGS AND ANALYSIS OBJECTIVE 1: Study of market for milk and other dairy variants in potential districts of Rajasthan Table 4: Market of Different Milk and Milk Products in Potential Districts of Rajasthan S. No Products Jaipur Jodhpur Kota Bikaner Alwar Ajmer Bharatpur Milk 1 (llpd) 12 4.25 3.5 2.5 4.25 3 2.5 Curd 2 (kg/day) 25,000 20,000 15,000 14,000 15,000 11,000 10,000 Buttermilk 3 ( lpd) 225000 20,000 10,000 1800 9000 7000 6350 Lassi 4 (lpd) 180000 2000 8000 227 300 500 1167 Paneer 5 (kg/day) 8000 6000 2000 500 3000 1500 508 Ghee 6 (kg/day) 10,000 20,000 16,000 40,000 25000 18,000 11,000 Butter 7 (kg/day) 3500 200 80 73 150 100 90 (SOURCE: Primary data collected from pre- structured questionnaire) www.tjprc.org [email protected] 12 Sonalee Chauhan & Jolly Masih Inferences Being state capital with highest population Jaipur leads in per day sales of milk and other dairy variants except in Ghee which is led by Bikaner because of high demand of ghee prepared by cow milk. Jodhpur was second highest in terms of curd and buttermilk. The demand for Buttermilk and Lassi is comparatively lower in other districts as compared to Jaipur, the reason being that in other districts these dairy items are prepared at home instead of purchasing from retail outlets as people believe the packaged as not so tasty and pure as compared to homemade products. Table 5 Products Total Score MILK 20*79+0 = 1580 GHEE 0*79+3*66+5*57+1*50+5*43+1*34+5*21= 887 CHAANCH 0*79+7*66+2*57+2*50+5*43+3*34+1*21= 1012 LASSI 0*79+0*66+3*57+4*50+3*43+4*34+6*21= 762 BUTTER 0*79+1*66+2*57+5*50+7*43+3*34+2*21= 875 PANEER 0*79+2*66+1*57+6*50+0*43+7*34+4*21= 811 CURD 0*79+7*66+7*57+2*50+0*43+2*34+2*21= 1071 Table 6: Ranking of Different Dairy Variants based on Garrett Ranking Scale Total Mean S. No Products Rank Total Score Rank Respondents Score 1 2 3 4 5 6 7 1 Milk 20 0 0 0 0 0 0 20 1580 79.00 1 2 Ghee 0 3 5 1 5 1 5 20 887 44.35 4 Chaanch 3 0 7 2 2 5 3 1 20 1012 50.60 3 (Buttermilk) 4 Lassi 0 0 3 4 3 4 6 20 762 38.10 7 5 Butter 0 1 2 5 7 3 2 20 875 43.75 5 6 Paneer 0 7 2 2 0 7 4 20 811 40.55 6 Curd 7 0 7 7 2 0 2 2 20 1071 53.55 2 (Dahi ) (Sources: Obtained through Garrett Ranking) Inferences Milk being a raw product for other derivatives is always highest in demand followed by curd because of its utility in multiple preparations such as Lassi, Buttermilk (Chaanch).Ghee is still preferred over butter because of its use sweets preparation as well as in household consumption.
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