Potential Impact of Dairy Cooperatives on Sustainable Milk Production: Evidence from Gujarat, India

Dairying has been a prominent supplementary enterprise and regular source of income to the farmers. Indian dairy sector has progressed commendably well with the seven-fold increase in milk production since independence, but progress in terms of yield per animal is still low which is quite unsustainable. Literature suggests two approaches for productivity growth viz., through technological progress and improved efficiency. The present study is an attempt to determine the factors affecting the technical efficiency of dairy farmers in Gujarat state with a special emphasis on the role of milk cooperatives. Multiple regression analysis and regression tree approach were used for arriving valid conclusions. Results indicated that socio-economic factors i.e. membership in the dairy cooperative society, non-farm annual income, access to information, and herd size significantly influenced the technical efficiency of farmers. Dairy cooperatives provide several inputs in the form of dairying resources as well as technical information to the farmers which significantly influenced their efficiency. The study concludes with policy prescriptions for enhancing milk production and shift towards sustainable dairying.