SYNOPSIS

Title
Analysis on value addition to milk in Bhubaneswar
Introduction
Orissa is one of the least developed states in India with very high levels of poverty. Mixed crop-
livestock farming is the most predominant farming system for over 80 percent of all rural
households in the state. Of the total livestock population, bovines account for about 65 percent
indicating their importance in livestock production. In the rural economy, milk is one of the most
important products of cattle and buffalo enterprises, contributing over 33 percent of the value of
all livestock outputs (Government of Orissa, 1998-99). Other products include meat, bones, skins
and hides, manure, and draught power. With very small and marginal operational holdings (less
than a hectare) accounting for nearly 80 percent of the 3.94 million farms, increasing milk
production could be an efficient way to improve rural livelihoods.
Project background
The main purpose of this study is to gain insight into strengthening linkage between farmers and
consumers to deliver a quality product at fair price through improving farmers access to
marketing channels, strengthening price incentives to deliver quality milk, creating competitive
supply chain conditions, creating a fair and transparent pricing system diversifying the range of
products on offer, educating consumers on the nutritional benefits of dairy products, stimulating
consumer demand and reducing losses in supply chain.
The primary data is collected from OMFED(Bhubaneswar), Pahala sweet stalls, government
firms and secondary data is collected from APICOL, google and KRISHIKOSH.

Objectives
1) To determine the major value chain linkages, functioning and efficiencies of milk production in
Bhubaneswar.
2) To analyze the livelihood impact of value chain on livestock farmers in Bhubaneswar.
3) To identify various constraints in value chain of milk in Bhubaneswar.
4) To study about the value addition to milk in Bhubaneswar.
5) Improving farmers access to marketing channels.
6) Strengthening price incentives to deliver quality milk.
7) Creating a fair and transparent pricing system, diversifying the range of products on offer.

Review of literature
1. Griffin Michel1, in his work examines a number of factors which have a bearing on the market
for value added dairy products. Milk, more than most agricultural products, is closely associated
with the transformation if the raw product into processed products and, as a result, the adding of
value via processing. The study suggests that as incomes rise and economic conditions improves,
demand for more varied foodstuffs increases. In this regard, milk and milk products lend
themselves extremely well to being presented in diverse forms. Via processing, value is added to
the raw material: milk. Even milk itself, can be presented in a wide number of ways, many of
which are associated with adding value. In the richer countries, the food market in general, and the
dairy market in particular, is noteworthy for it dynamism and inventiveness. Consequently, each
year, a large number of new products are being brought to the market. As income levels in other
countries increase, demand for more varied food products will follow suit. Consumers are many
and varied. The study concludes that in the dairy market of the future, some will demand low
priced products, while others will pay a quality and uniqueness. The challenge for the dairy
industry is to identify which markets it can profitably supply and to focus its efforts on meeting
the needs of consumers in these markets. Sharma
2. Sintayehu Yigrem, et al. (2008), “Dairy production, processing and marketing systems of
Shashemene - Dilla area, South Ethiopia” – abstract of the project on Improving Productivity and
Market Success (IPMS) of Ethiopian farmers project, International Livestock Research
Institute (ILRI), Addis Ababa, Ethiopia.
3. Godbole (1966) in his study of milk supply in Maharashtra, pointed out that it was possible to
increase supply of milk by encouraging milk production in rural areas and marketing it in the cities.
4. Chauhan (1987) studied the different systems of milk procurement in a private milk plant in UP.
He observed that the system of milk procurement through contractors was the most efficient one
and the cost was the lowest because of little expenditure made by the contractors for the
procurement of the milk.
5. Sharma (1978) conducted a study on processing cost in a dairy plant located in Ambala,
Haryana. The processing cost was almost same as 29.5 paise per litre for Pasteurized milk,
sterilized Flavoured milk, Standardized milk and sterilized Flavoured double toned milk.
6. Kumar (1987) studied manufacturing cost for dairy products in a dairy plant located in North
West India and pointed out that the average cost of production of different dairy products namely
Toned milk, Ghee, Paneer, Table butter, SMP, Lassi, Flavoured milk, Ice cream and Kalakand
were Rs.1.34/litre, Rs.49.18/Kg, Rs.19.56/Kg, Rs.41.44/Kg, Rs.19.12/Kg, Rs.1.87/litre,
Rs.1.25/litre, Rs.2.50/kg and Rs.21.32/Kg respectively.
7. Chakraborty (1998) conducted a study in Calcutta for 100 milk products manufacturing units.
The unit cost of production of Rasogolla, Sandesh, Pantoa, chum chum, Rajbhog, Amrithi and
Rasmalai were studied particularly in relation to fixed and variable costs. In the products, it was
found that variable cost accounts for only 2 per cent. Though all the products were making profit,
net profit of Sandesh was highest (Rs.32.16), followed by Rasmalai (Rs.24.10), Rajbhog
(Rs.19.42) and Rasogolla (Rs.8.25). However, while calculating profit in percentage, it was
Rajbhog which ranked first i.e. 47.58, followed by Rasmalai (44.96), Amrithi (41.61), Sandesh
(41.14) and chum-chum (18.67). Profit in percentage terms for Rasogolla and Pantoa was 24.09
and 31.16 respectively.
8. Singh et al. (1997) conducted a study on economic efficiency of the Experimental Dairy Plant,
NDRI, Karnal. Based on 1993-94 data, the costing was done for 30 products and per kg cost of
milk based raw material were Rs.50.23 for Ghee, Rs.45.35 for Table butter, Rs.34.62 for Paneer,
Rs.36.19 for Skim milk powder, Rs.46.27 for processed cheese, Rs.17.92 for Ripened Cheese,
Rs.6.19 for dahi, Rs.51.85 for cheese spread, Rs.15.53 for Gulabjamun, Rs.3.68 for Flavoured
dairy drink and Rs.4.86 for Toned milk.
9. Murali (2001) conducted a study on economics of milk processing and manufacturing of milk
products in a dairy plant in Tamil Nadu and revealed that average cost of production of different
dairy products namely standardized milk, SMP, Butter and Khoa were 46.8 paise per litre,
Rs.70.19 per kg, Rs.91.23 per kg and Rs.47.41 per kg respectively.
10. Narnaware (2002) worked out manufacturing cost for various dairy products in Experimental
Dairy at NDRI, Karnal and found that the average cost of production of different dairy products
namely Ghee, Butter, Paneer, Gulabjamun mix, Cheddar Cheese, Ice cream, Burfi, Toned milk,
Lassi and Flavoured Dairy Drink were Rs.126.53 per kg, Rs.41.34 per 500 gm, Rs.66.41 per kg,
Rs.49.64 per kg, Rs.115.20 per kg, Rs.3.93 per 100 ml, Rs.26.82 per 500 gm, Rs.3.25 per 200 ml,
Rs.3.25 per 200 ml and Rs.1.95 per 200 ml respectively.
11. Ray (2008) conducted a study about economics of manufacturing indigenous milk products in
West Tripura district and revealed that the average cost of manufacturing Rasogolla, Lal mohan,
Boil cake, Peda, Khir sandesh, Kalakand, Khirtoa, Mistidoi and Chhanar payesh were Rs.57.97/kg,
Rs.91.41/kg, Rs.115.42/kg, Rs.98.33/kg, Rs.70.27/kg, Rs.94.70/kg, Rs.99.68/kg, Rs.27.87/kg,
Rs.102.97/kg respectively.
Outline of the project
 Acknowledgement
 Declaration
 Project title
 Introduction
 Objectives
 Review of the literature
 Methodology
 Results and discussions
 Summary and conclusion
 Reference