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Study on Milk Market Agents in Assam

Study on Milk Market Agents in Assam. IIE, Guwahati ILRI, Nairobi Directorate of Dairy Development, Govt. of Assam. Background. Formal marketing of milk in Assam is relatively insignificant. Traditional sector accounts for about 97% of the market opportunities for farmers.

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Study on Milk Market Agents in Assam

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  1. Study on Milk Market Agents in Assam IIE, Guwahati ILRI, Nairobi Directorate of Dairy Development, Govt. of Assam

  2. Background • Formal marketing of milk in Assam is relatively insignificant. • Traditional sector accounts for about 97% of the market opportunities for farmers. • For smallholder producers in areas with poor market access, there are likely to be no alternative market options besides the traditional market.

  3. Background • Thus, developments in the traditional market is extremely important for the Assam dairy sub-sector. • Improvements in the traditional market could complement the ongoing efforts to develop co-operative organized milk markets.

  4. Objectives • To understand the marketing and processing chains that link small scale and landless dairy producers to the consumers of milk and dairy products. • To give specific recommendations to provide quality milk to the consumers and remunerative price to the milk producers through the traditional milk distribution system.

  5. Approach • The study has been carried out in close collaboration with Directorate of Dairy Development, IIE and ILRI and other partners of the project. • Feedback from the Stakeholders at different stages of the study were taken into account.

  6. Data and Methodology • The study of milk market agents conducted in 9 districts of Assam, covered 598 milk market agents. • Milk market agents included traditional milk vendors, organized milk collectors, small processors and medium and large private processors and co-operatives. • The size of sample was determined proportionately on the basis of population of district.

  7. Sampling scheme

  8. Distribution of sample milk traders by type and district

  9. All respondents were surveyed through direct questionnaire method using a structured questionnaire. Information on profile of the trading, business, milk procurement, milk handling prior to sale, sale of fluid milk, processing of milk, milk product sales, training in milk handling and or processing, hygiene and safety conditions, adulteration of milk and milk products etc. were collected. Manual scrutiny of the collected data before compilation in electronic form. Descriptive statistical analysis by using SPSS software. Data and Methodology Contd.

  10. Demographic Characteristics of milk traders

  11. Salient features of trading profile • Milk trading is the domain of male in Assam. • Majority of the milk market agents operate as single proprietor. • Very few instances of joint ventures. • Pattern of ownership is similar across types of activities and across different districts. • Further, majority of milk market agents are retailers.

  12. Nature and scope of contracts • Milk market agents hardly enter into any form of written contract or agreement for terms of milk procurement either for quantity, quality or price. • But they have informal contracts and understanding about the milk procurement in terms of quantity, quality, price, mode and terms of payment.

  13. Nature and scope of contracts contd. • Penalty for violation of contracts is not much prevalent. • Most of the conflicts are resolved mutually. • Penalty for violation of terms and conditions if imposed are restricted to rejection of supply/purchase only. • However, among different types of contract price contract is the most sensitive.

  14. Quality control measures • Visual inspection • Use of lactometer and centrifuge • Conversion of random sample into processed product like khoa, channa. • However, more than 1/3rd of the milk traders do not adopt any quality control measure and rely on mutual trust.

  15. Conclusion • Findings of the study has confirmed the predominance of traditional or informal milk market agents in the marketing of milk and milk products in Assam. • Majority of informal milk market agents are small traders and they derive substantial part of their household income. • Different channels of milk marketing exist in the State and these vary across districts.

  16. Conclusion • The returns from milk trading seem to be lucrative in comparison to the available alternatives as majority of the traders have established their business themselves. • Dependence of the consumers on informal sector seem to be continued on traditional sector in the foreseeable future. • However, awareness among consumers regarding quality and safety of the products are increasing.

  17. Conclusion • Some sort of licensing, regularization and legal control can be thought of to link traditional milk market agents with formal market agents without disturbing their enterprise. • These could enhance the credibility of the milk market agents and would be helpful to maintain quality and safety of milk and milk products also.

  18. Thank You

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