VOL.

XII, ISSUE XXXXIII, JULY 2022 MULTILOGIC IN SCIENCE ISSN 2277-7601

An International Refereed, Peer Reviewed & Indexed Quarterly Journal for Applied science
“ECONOMIC STUDY ON MARKET PERFORMANCE OF OMFED AND SOCIO-ECONOMIC STATUS OF DAIRY FARMERS
IN SAMBALPUR DISTRICT OF ODISHA”
Pratyush Kumari Rath, Mukesh Kumar Maurya, Pratyasha Tripathy, Suman Kumari , Pyla Srinivas Bhargav
Department Of Agricultural Economics, Sam Higginbottom University Of Agriculture Technology and sciences,
Prayagraj-211007 (U.P) India.
(MS Received: 013.05.2022; MS Revised: 19.06.2021; MS Accepted: 20.06.2022)
MS 2880 (RESEARCH PAPER IN AGRICULTURAL ECONOMICS,)
Abstract
Odisha has a sizable number of dairy producers in its rural and semi-urban areas. In the context of India, the dairy industry plays a crucial
role in the growth of the national economy. It supplies people with high-quality milk and dairy products in both urban and rural locations.
The sector has been expanding quickly in order to keep up with the nation's rising demand for milk and milk products. The industry reaches
customers in urban regions from milk producers in rural areas by executing a number of intermediate operations including collecting,
cooling, transportation, pasteurisation, distribution, etc. The dairy industry in India is performing well and exhibiting encouraging trends in
terms of milk production, per capita availability of milk, sources of milk production, as well as accessibility of milk. India is experiencing
winds of transformation due to better milk availability and a shift to a market economy. The expansion of diary operations in the State has a
significant impact on improving the socioeconomic circumstances of rural impoverished people. With the assistance of the Odisha State Co-
operative Milk Producers Federation Ltd., the state of Odisha in particular represents the dairy industry's remarkable rise. (OMFED). In this
regard, the current article attempts to shed light on the expansion and development of the dairy industry in Odisha with a focus on the
OMFED. Along with this, the current study aims to explain how OMFED's performance is assessed using its fundamental metrics, namely
physical and financial success. Key words: Price spread, Milk route, Marketing, Channel, OMFED, Marketing
Introduction with an OMFED plant was purposefully chosen out of the total blocks
India has the largest population of livestock in the world, with 20% of in the chosen district. Five percent of the blocks' settlements were
the world's cattle and 50% of the world's buffaloes, the majority of randomly chosen. Randomly chosen respondents made up 5% of the
which are milch cows and milch buffaloes. One of the most successful communities chosen. Data for the agricultural year 2021–2022 was
development initiatives in India's post-Independence era is the gathered. While secondary data was gathered from reports and records
country's dairy sector. India, the world's top milk producer, boasts that of the company plant and block headquarters, the primary data was
it offers the most affordable and nutrient-dense food. India is gathered using the survey technique through personal interviews on a
sometimes referred to be the global dairy industry's oyster since it well-structured and pre-tested timetable. The Sambalpur District of
offers countless business prospects. The market for milk and milk Odisha was the site of the research.
products is the largest and expanding market in the world. The dairy Analytical Tools:
industry in India has been witnessing rapid growth. The handling of [Link]-economic profile of respondents in the study area:
raw milk, milk processing, packaging, and value-added products are The weighted average of the variables x was calculated by using
all possible investment opportunities in the dairy sector. The formula:
liberalised economy gives MNCs (Multinational Companies) and Weighted Average= (ΣW_i X_i)/(ΣW_i )
international investors additional chances to tap into this sector's full Where, W_i= Weight assigned
potential. The sole objective of the Indian dairy sector is to effectively And X_i= Value of the variable
utilise the country's resources in order to increase milk output and 2. MARKETING COST AND MARKETING EFFICIENCY OF
modernise milk processing. The market share & market potential EXISTING AREA:
occupies a significant place in the study of marketing effectiveness of (i) Marketing Cost:
any firm, because sale is life blood of the business. With the The total cost, incurred on marketing either in cash or in kind by
expansion of the business, the life of the market to be covered to sale the producer seller and by the various intermediaries involved in
large quantity of goods becomes too large to control by the owner of the sale and purchase of the commodity reaches the ultimate
the business under taking personality. Hence, this arises the need of consumer.
sales organization to perform the various functions. These functions C = CF + CM1+ CM2+ CM3+ ….. + CMn
include market research, product planning, sales forecasting, Where, C = Total cost of marketing of commodity
determination of selling policy, selection of channel of distribution, CF = Cost paid by the producer from the time of produce leave
selection, training, supervision and remuneration of the sales man etc. farm till he sale it
Indeed, market share of different milk products is shown by their taste, Cmi = Cost incurred by the ith middleman in the process of buying
preference of different milk products and different consumers. and selling the product.
As maximization of profit is the main objective of every business and (ii)Marketing Efficiency:
this aim could be achieved if the profitability of the firm is increasing It was calculated using Acharya’s Modified Marketing efficiency as
and if it is decreasing, then it would be hard enough to operate the follows
business for long. So consumer preference towards their likely MME=FP/(MC+MM)
products should be taken very consciously. Where,MME is modified measure of marketing efficiency
The ultimate aim of marketing is to meet and satisfy customer's needs, FP = Price received by farmers
wants and desires. But it is not very simple to know the customers MC = Marketing cost
preferences. They may not in touch with as they may respond to MM= Marketing margin
influences that change their mind in last minute. So plainly speaking (iii)Producer Share in Consumer Rupee:
the term consumer behavior refers to the behavior that consumers It is the price received by the farmer expressed as a percentage of the
display in searching for purchasing. Using evaluating and dispersing retail price (i.e., price paid by the consumer)
of products and services that they expert would satisfy their needs. PS = (PF ×100)/PR
Research Methodology Where,PF= Price received by the farmer
One district of Odisha was purposefully chosen out of the 30 districts PR =Retail price (consumer price)
while keeping in mind the time and resource constraints. One block Results And Discussion
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 VOL. XII, ISSUE XXXXIII, JULY 2022 MULTILOGIC IN SCIENCE ISSN 2277-7601
An International Refereed, Peer Reviewed & Indexed Quarterly Journal for Applied science
1. Socio-economic status of the respondents
Table 1.1 Distribution of milk suppliers based on their age
S. No. Category Frequency Percentage
1 Young age group 14 11.70
2 Middle age group 98 81.70
3 Old age group 8 6.60
Total 120 100.00

Table.1.1. reveals that higher percentage of the milk suppliers were middle aged (81.70%), followed by young age (11.70%) and old age (6.60%).
Table.1.2. Distribution of milk suppliers according to their gender
S. No. Category Frequency Per cent
1 Male 98 81.70
2 Female 22 18.30
Total 120 100.00
Table.1.2 represents that 81.70 per cent of the milk suppliers were male and only 18.30 per cent of the respondents were female.
Table.1.3. Distribution of milk suppliers according to their caste
S. No. Category Frequency Per cent
1 General 40 33.30
2 OBC 46 38.40
3 SC / ST 34 28.30
Total 120 100.00
Table.1.3. reveals that 38.40 per cent of the milk suppliers belonged to OBC category, followed by 33.33 per cent of them belonged to general
category and only 28.30 per cent of them belonged to SC/ST.
Table.1.4. Distribution of milk suppliers according to their religion
S. No. Category Frequency Per cent
1 Hindu 104 95
2 Muslim 0 0
3 Christian 6 5
Total 120 100.00
Table.1.4, indicated that 95 per cent of the milk suppliers were Hindu, followed by Christian (5%). None of them were Muslim.
Table 1.5. Distribution of respondents according to their Type of Family
S. No. Type of Family Category Frequency Per cent
1 Joint Family < 4 members 98 81.7
2 Nuclear Family > 4 members 22 18.3
Total 120 100.00

Table.1.5, reported that majority of the respondents belonged to joint family (81.7%) and
18.30 per cent belonged to nuclear family.
Table.1.6. Distribution of milk suppliers according to operational land holding
S. No. Category Frequency Per cent
1 Low 28 23.30
2 Medium 70 58.40
3 High 22 18.30
Total 120 100.00
Table.1.6, reported that more than half of the respondents (58.40%) had medium level of land holding, followed by low level (23.30%) and high
level (18.30%) of land holding.
Table.1.7. Distribution of milk suppliers according to their asset position of the dairy farmers
S. No. Category Frequency Per cent
1 Low 24 20.00
2 Medium 74 61.70
3 High 22 18.30
Total 120 100.00
Table.1.7, revealed that most of the respondents had medium asset position (61.70%), followed by low asset position (20%) and high asset
position (18.30%).
Table.1.8. Distribution of milk suppliers according to their dairy composition and milk production
S. Animal type Numbers (Average) Milk production
No. (Average)
1 Cow 5 6 litres
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 VOL. XII, ISSUE XXXXIII, JULY 2022 MULTILOGIC IN SCIENCE ISSN 2277-7601
An International Refereed, Peer Reviewed & Indexed Quarterly Journal for Applied science
2 Buffalos 4 4.5 litres
From table.1.8, it was seen that on an average of milk suppliers had 4 Buffalos which produce 4.5 liters per day, followed by 5 cows which
produce 6 liters of milk per day.
Table.1.9. Distribution of milk suppliers according to their pattern of investment in dairy farming
S. No. Items of investment Frequency Percentage
1. Sheds including land 50 41.70
2. Well/ bore wells/ Tube wells 46 38.30
3. Electricity facility 24 20.00
4. Milking equipment 0 0
Total 120 100.00
From table.1.9, it was seen that majority of the respondents would like to invest in sheds including land (41.70%), followed by well/ bore wells
and tube wells (38.30%) and remaining 20 per cent of them would like to install electricity facility for the sheds. None of them prefers to
purchase milking equipment as it may deteriorate the health of the animal.

S. No. Services Response

Highly satisfactory Satisfactory Not satisfactory
F % f % F %
1 Supply of 58 48.33 38 31.67 24 20.00
inputs
2 Correct weighment 43 35.83 34 28.33 43 35.83
3 Better price 57 47.50 29 24.17 34 28.33
4 Grading (fat %) 79 65.83 25 20.83 16 13.33
5 Loan to 84 70.00 27 22.50 9 7.50
purchase milch
animals
6 Regular payments 63 52.50 29 24.17 28 23.33
7 Relationship with 49 40.83 51 42.50 20 16.67
mpcs
8 Training to 60 50.00 49 40.83 11 9.17
members
9 Protecting 58 48.33 24 20.00 38 31.67
producers interest
10 Market news 62 51.67 36 30.00 22 18.33
Table.1.10. Distribution of milk suppliers according to the feed, fodder and miscellaneous expenditure
S. No. Category Frequency Per cent
1 Low 18 15.00
2 Medium 82 68.30
3 High 20 16.70
Total 120 100.00
From table.1.10, it was observed that majority of the milk suppliers had medium (68.30%) level of expenditure, followed by high (16.70%) and
low (15%) level of expenditure respectively.
Table.1.11. Distribution of milk suppliers according to the opinion of farmers
From table.1.11, it was seen that majority of the milk suppliers were highly satisfactory towards supply of inputs (48.33%), followed by
satisfactory (31.67%) and not satisfactory (20%). An equal percentage of respondents were highly satisfactory (35.83%) and not satisfactory
(335.83%) towards correct weighment and 28.33 per cent represents satisfactory. Most of the respondents reported highly satisfactory towards
better price (47.50%), grading (65.83%), loan to purchase milch anaimals (70%), regular payments (52.5%), training to members (48.33%) and
market news (51.67%) and 42.50 per cent reported satisfactory towards relationship with MPCS.
Table.1.12. Distribution of milk suppliers based on the returns from dairy farming
S. No. Particulars Frequency Percentage
1 Milk production
Low 12 10.00
Medium 98 81.70
High 10 8.30
2 Dung production
Low 50 41.70
Medium 46 38.30
High 24 20.00
3 Sale of concentrated bags
Low 18 15.00

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An International Refereed, Peer Reviewed & Indexed Quarterly Journal for Applied science
Medium 82 68.30
High 20 16.70
4 Sale of calves
Low 24 20.00
Medium 74 61.70
High 22 18.30
From table.1.12, it was seen that most of the milk suppliers reported medium level of returns from milk production (81.70%), followed by low
level of returns from dung production (41.70%), medium level of returns from sale of concentrated bags (68.30%) and medium level of returns
from sale of calves (61.70%) respectively.
Table.1.13. Distribution of milk suppliers based on the milk use pattern
S. No. Particulars Frequency Percentage
1 Milk production
Low 28 23.30
Medium 70 58.40
High 22 18.30
2 Milk consumption
Low 34 28.33
Medium 70 58.33
High 16 13.33
From table.1.13, it was seen that most of the milk suppliers had reported medium level of milk production (58.40%), followed by low (23.30%)
and high (18.30%) level of milk production respectively. Whereas, more than half of the milk suppliers had reported medium level of milk
consumption (58.33%), followed by low (28.33%) and high (13.33%) level of milk consumption respectively.
Table.1.14. Distribution of milk suppliers based on the pattern of inputs procurements by dairy farmers from milk producers co-
operative society
S. Particulars Frequency Percentage
No.
1 Low 32 26.70
2 Medium 82 68.30
3 High 6 5.00
From table.1.14, it was revealed that majority of milk suppliers reported medium level of input procurement (68.30%), followed by low
(26.70%) and high (5%) level of input procurement by dairy farmers from milk producers co-operative society.
Table.1.15. Distribution of milk suppliers based on the pattern of inputs procurements by dairy farmers from other agencies
S. Particulars Frequency Percentage
No.
1 Low 60 50.00
2 Medium 48 40.00
3 High 12 10.00
From table.1.15, it was observed that half of the respondents reported low level of input procurement from other agencies (50%), followed by
medium (40% ) and high (10%) level of input procurement from other agencies.
Table.1.16. Distribution of milk suppliers based on the pattern of milk marketing by the members to the milk producers cooperative
societies
S. No. Particulars Frequency Percentage
1 Low 30 25.00
2 Medium 62 51.70
3 High 28 23.30
From table.4.16, it was reported that more than half of the milk suppliers reported medium level of marketing by the members to the milk
producers co-operative societies (51.70%), followed by low (25%) and high (23.30%) level of milk marketing.
2. Marketing cost, marketing efficiency and producer’s share in consumer’s rupee of existing marketing channel
Since, OMFED has only one marketing channel, there was no second marketing channels.
Channel I : Farmer – Society – Milk Union – Federation (Procurement channel)
Table.2.1. Distribution of marketing cost, marketing efficiency and producer’s share in consumer’s rupee of existing marketing channel
S. No. Particulars Average value (Rs./ltr)
1 Cost incurred by the producer
Gross price 30.00
Marketing price 30.00
Net price 30.00
2 Cost incurred by the society
Purchase price from producer 30.00
Value of wastage 1.00
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An International Refereed, Peer Reviewed & Indexed Quarterly Journal for Applied science
Sale price 34.00
Profit 3.00
3 Costs incurred by the Milk Union
Purchase price from society 34.00
Value of wastage 1.00
Sale price 38.00
Profit 3.00
4 Costs incurred by the Federation
Purchase price from milk union 38.00
Value of wastage 0.65
Sale price 40.00
Profit 1.35
5 Sale price to consumers 40.00
6 Price spread 10.00
7 Marketing cost 2.65
8 Marketing margin 7.35
9 Marketing efficiency 3.00
10 Producer’s share in consumer’s rupee 75

From table.2.1, it was seen that the marketing price of the milk half of the milk suppliers reported medium level of marketing by the
supplied by the farmer was Rs.30 and the net price received by him members to the milk producers co-operative societies, followed by
for 1 litre is Rs.30. Meanwhile, the cost incurred by the society in low and high level of milk marketing.
purchasing the milk was Rs.30/ltr, with Rs.1 as value of wastage and The marketing price of the milk supplied by the farmer was Rs.30 and
Rs.3 as profit per litre of milk. Finally, the selling price of the milk the net price received by him for 1 litre is Rs.30. Meanwhile, the cost
from the society is Rs.34/litre. Similarly, the milk union purchased the incurred by the society in purchasing the milk was Rs.30/ltr, with Rs.1
milk from the society at the cost of Rs.34/litre with Rs.1 as value of as value of wastage and Rs.3 as profit per litre of milk. Finally, the
wastage and Rs.3 as profit per litre of milk. Thus, the selling price of selling price of the milk from the society is Rs.34/litre. Similarly, the
the milk from the union to the federation was Rs.38/ litre. milk union purchased the milk from the society at the cost of
Simultaneously, the milk federation purchased the milk from the Rs.34/litre with Rs.1 as value of wastage and Rs.3 as profit per litre of
union as Rs.38/ litre, with Rs.0.65 as value of wastage and Rs.1.35 as milk. Thus, the selling price of the milk from the union to the
profit, by which the final selling price of the milk was Rs. 40/ltr. federation was Rs.38/ litre. Simultaneously, the milk federation
Finally, the selling price of the milk to the consumers was Rs.40/ltr. purchased the milk from the union as Rs.38/ litre, with Rs.0.65 as
Eventually, the price spread was seen to be 10 rupees per litre, the value of wastage and Rs.1.35 as profit, by which the final selling price
marketing cost was Rs.2.65, the marketing margin was Rs.7.35, the of the milk was Rs. 40/ltr. Finally, the selling price of the milk to the
marketing efficiency was 3.00 and the producer’s share in consumers consumers was Rs.40/ltr. Eventually, the price spread was seen to be
rupee was 75. 10 rupees per litre, the marketing cost was Rs.2.65, the marketing
Summary margin was Rs.7.35, the marketing efficiency was 3.00 and the
Most of milk suppliers were middle aged followed by young and old producer’s share in consumers rupee was 75.
people. More male are involved in milk supply than females. Most of Conclusion
them are OBC followed by general and sc)sc category. In terms of The results shows that the Socio economic status of the respondents
religion the majority are hindu, then Christians. Most of the people found to be moderate with good economic background and greater
supplying milk were joint family based. access to all the assets.
Majority of the farmers had medium asset position. On an average The study shows that there is immense Scope to increase the
milk suppliers had 5 cows with 6 litres per day production. Most of Producer’s share in Consumer Price by marketing the market more
the farmers were interested in investing on farm buildings and effectively so that the number of intermediaries is to be restricted and
equipments but not milking equipments. Majority had medium level marketing costs and marketing margins to be reduced.
of expenditure. Most of the farmers were satisfied with the References
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An International Refereed, Peer Reviewed & Indexed Quarterly Journal for Applied science
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