This document summarizes a study on the milk market in Odisha, India. The study examined the milk market channels and prices in different market zones, comparing a high milk production and marketing site (Puri) to a low site (Bhadrak). Survey results showed a higher percentage of milk is sold in the market in the high site compared to the low site. In the high site, middlemen buy a higher proportion of milk followed by milk cooperatives. In the low site, household consumers buy most milk followed by middlemen. Women play a major role in delivering milk and receiving payment in the low market site. Strengthening formal milk markets could increase milk production in the region.

1. An
exploratory
analysis
of
effec2veness
of
milk
market
in
Odisha,
India
Braja
Bandhu
Swain
and
Nils
Teufel
Introduc:on
v Livestock
sector
in
Odisha
is
highly
livelihood
intensive
and
over
80%
of
livestock
popula:on
holds
by
small
and
marginal
farmers
(Odisha
Livestock
Policy,
2002).
v Dairy
is
the
important
product
in
livestock
sector
whose
share
has
increased
from
less
than
50%
to
65%
in
the
2000s.
v However,
due
to
dominance
of
smallholder
and
failure
of
ins:tu:ons,
this
sector
could
not
achieve
high
produc:vity
and
growth.
v Low
percentage
(8%
of
total
milk
produc:on)
of
milk
sold
in
formal
market
compared
to
other
states.
v To
bring
the
growth
in
this
sector,
there
is
need
to
strengthen
milk
market
and
link
the
farmers
into
market.
v This
study
would
like
to
examine
the
milk
market
channel
and
the
prices
in
different
market
zone.
Materials
and
methods
v Two
districts
(Puri
and
Bhadrak)
were
selected
based
on
milk
produc:on
and
marke:ng
from
coastal
Odisha,
India:
Bhadrak
=Low
market
site
and
Puri
=
high
market
site
v Randomly
130
villages
were
selected,
65
villages
from
each
district
v Data
were
collected
through
focus
group
discussions
with
different
categories
of
dairy
farmers
(small,
medium
and
large)
and
also
milk
trader
v Descrip:ve
sta:s:cal
analysis
was
used
to
analyse
the
survey
data
Fig
2:
Milk
buying
share
of
different
channels
and
price
Pictures
Results
100
90
80
70
60
50
40
30
20
10
0
Fig-­‐1:
Dairy
products
and
sold
in
high
and
low
market
site
High
Low
High
Low
High
Low
avg
share
%
product
sold
%
hh
selling
share
product
70
60
50
40
30
20
10
High
%wmnSelin
100
80
60
40
20
Low
%wmnRPym
nt
v Farmers
in
low
market
site
use
higher
propor:on
of
milk
for
processing
at
home
compared
to
high
market
site
v High
percentage
of
milk
sold
in
high
market
site
compared
to
low
market
site
v Middlemen
buy
higher
propor:on
of
milk
followed
by
milk
co-­‐opera:ve
in
high
market
site
while
it
is
the
household
consumer
followed
by
middlemen
in
low
site
v Farmers
in
high
market
site
get
beOer
price
of
their
milk
compared
its
counterpart
v Women
play
an
important
role
in
delivering
and
buying
milk
in
low
market
site
compared
to
high
v Need
to
increase
the
share
of
formal
market
in
buying
milk
tends
to
increase
the
milk
produc:on
in
the
economy
Braja
Bandhu
Swain
Interna:onal
Livestock
Research
Ins:tute
(ILRI)
Aggarwal
Corporate
Tower,
9th
Floor,
Rajendra
Place
New
Delhi-­‐110012,
India
Email:
brajacds@gmail.com
and
B.Swain@cgair.org
Acknowledgements:
Cereal
System
Ini:a:ve
for
South
Asia
(CSISA)
and
the
Interna:onal
Livestock
Research
Ins:tute
(ILRI)
This
document
is
licensed
for
use
under
a
Crea:ve
Commons
AOribu:on
–Non
commercial-­‐Share
Alike
3.0
Unported
License
September
2014
September
2014
v The
survey
results
indicated
that
high
percent
of
milk
sold
in
the
market
in
high
market
site
compared
to
other
while
milk
society
plays
a
major
role
(Fig
1
&
Fig
2).
Women
play
a
major
role
in
delivering
milk
and
receiving
payment
in
low
market
site
(Fig
3).
Conclusion
Milk
Curd
Ghee
Cheese
0
govt
milk-­‐
cop:ve
pvt
milk-­‐
cop:ve
middle
man
tea/swt
shop
hh
consumer
share
channels
High
Share
High
Price
Low
Share
Low
Price
0
g
High
%wmnBying
High
%wmnRPym
nt
Low
%wmnSelin
g
Low
%wmnBying
Fig
3:
Women
and
Milk
Market
middle
man
pvt
milk-­‐cop:ve
hh
consumer
tea/swt
shop
govt
milk-­‐cop:ve