Study on production patterns and marketing of milk in D.I. Khan district

The study enlightens that out 36 producers 32% were literate and 89% were married. Average herd size per farm was 27 animals. The structure of farms was surveyed as 47 % were Katcha 74% were observed as semi Pucca and 28% Pucca. The capital investment of average farm were observed, Rs.2432332/- which included Rs.91173/-, Rs.1217577/- and Rs.21456/- farm on sheds, purchase of animals and equipment, respectively. The average feed cost/farm was observed as Rs.730539/- farm/year. Other costs including, veterinary services, marketing and miscellaneous costs were observed, Rs.313911/- farm/year, hence the gross expenditure incurred by average farm was Rs.818037/- farm/year. Total milk sold by average farm was 1002868 liters/farm/year. This quantity of milk sold by average farmer at the price of 14/liter. The gross income obtained by average farmer of D.I. Khan District was Rs.1031793/- farm/year from the milk and other sources (Sale of calves, culled animals, and bull service charges). All 26 wholesaler and 27 retailers worked on permanent basis; the trade hours were observed from 6 to 9 a.m. and 4 to 6 p.m. A total of 5903 maunds of milk were sold by wholesaler/ year, however 4624 maunds of milk were sold by retailers/ year in D.I. Khan District. The average wholesaler spent Rs.9183/- day (Rs.3306046/- year) on purchase of milk, while he received the amount Rs.9839/- day (Rs.3542192/- year) on sale of milk. The average retailer spent, Rs.2774800/- year (Rs.8735/- day) on sale of milk. The wholesaler incurred the marketing cost Rs.0.82/ maund on shop rent, Rs10/- maund on transport, Rs.3.7/ maund on labour, Rs.3.3/- maund on electricity & Rs.1.1/ maund on miscellaneous expenditure. However the retailer spent Rs.1.3/ maund on shop rent, Rs.9.8 maund on transport, Rs.7.6 maund on labour, Rs.4.2 maund on electricity and Rs.1.4 maund on miscellaneous expenditure. These agents were observed well benefited on milk trade and it was further observed that, the wholesaler earned an absolute margin Rs.6139800/- ear/26 wholesaler, while the retailer earned Rs.9989280/- year/27 agents. The net margin earned by the wholesaler was observed, Rs.5193492/- year/26 agents (84.5%) the retailer earned, Rs.9080988/- year/27 agents (90.9%). The mark up percentage of wholesaler was observed, 7.14% and 13.3% of retailer. The consumers rupee breakdown between these agents i.e. wholesaler & retailer were observed as 36.3% and 63.6% went to wholesaler and retailer respectively. The cost benefit ratio analysis has declared that on one rupee investment Rs. 6.4 and Rs.10.9 were earned by the wholesaler and retailer respectively. The basis of present investigation, it was observed that three main agencies are involved in the dairy business i.e. producer, Wholesaler and Retailer. Out of these three agencies milk producer earned more profit than wholesaler and Retailer, because in winter and autumn season the present data of milk production (June; July) may be up to double of each dairy farm, while Retailer earned more than that of Wholesaler, because in D.I. Khan District most of the wholesaler do not store the milk for a longer period of time. They supply fresh milk at once to the Retailer. The major portion of the consumer rupees was earned by producer because of more capital investment of farmer/producer, and was mainly due to initial ownership of the product.