Agribusiness Innovation Strategies for Sustainable Milk Marketing Channels: An Empirical Study of Buffalo Farmers in Haryana, India

Gururaj Makarabbi, Navneet Saxena, F.C. Tuteja, S. Aiswarya, A.K. Balhara and P.C. Lailer

Indian Journal of Agricultural Marketing, 2025, vol. 39, issue 1

Abstract: In India, the dairy industry has undergone significant transformations, shifting from a deficit to a surplus in milk production, driven by technological advancements. Haryana, a progressive dairy state, ranks eighth in total milk production. The state witnessed a substantial increase in milk production from 34.19 lakh tonnes in 1990-91 to 116.29 lakh tonnes in 2022-23, with a growth rate of 21.19 percent. Approximately 80 percent of the milk in Haryana is sourced from buffaloes, followed by cows. The state boasts the highest per capita availability of milk (1,098 grams/day) after Punjab (1,283 grams/day), compared to the national average of 459 grams per day during 2022-23. Despite this high per capita milk consumption, about 65-70 percent of the marketed surplus milk is made available to non-producers. In this context, the present study was undertaken to analyze the available marketing channels for disposing of surplus milk among buffalo farmers in the state. Both secondary and primary data were utilized. Secondary data revealed that between 1990-91 and 2022-23, the number of registered dairy cooperative societies grew at a rate of 24.57 percent, with membership enrolment increasing by 17.13 percent. Similarly, milk procurement through dairy cooperative societies rose significantly from 341.50 lakh litres in 1990-91 to 1,673.24 lakh litres in 2022-23. However, the proportion of milk procured through organized channels remained low due to the dominance of unorganized milk marketing systems in the state. Primary data on production, consumption, marketed surplus, and marketing channels were collected from 120 buffalo farmers in Hisar and Karnal districts using a multi-stage random sampling technique. The results indicated that 68.33 percent of respondents preferred unorganized milk marketing channels, citing reasons such as doorstep milk collection and advance payment for purchasing inputs. Furthermore, the binomial logit model revealed that the age and educational status of respondents positively influenced their choice of milk marketing channels in the study area. The findings suggest that despite the success of dairy cooperatives in India, many milk producers remain dependent on unorganized milk marketing channels. This study concludes that milk marketing channels in Haryana must be strengthened through agribusiness innovations such as the integration of organized marketing systems, technological interventions, and capacity-building initiatives.

Keywords: Agribusiness (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ags:injagm:400075

DOI: 10.22004/ag.econ.400075

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