¢  InIndia the dairy farming is still existing as a subsidiary to the agriculture -additional income to agricultural labours, small and middle farmers.¢  InIndia growing atleast one or two dairy animals by farmers have many advantagesof economic importance¢  Dairyanimals fits well in any diversified farming programmes¢  Dairyanimals are efficient convertors of roughage to produce milk.¢  Theprices of most of the agricultural produce show great fluctuation where as milkwill not have such fluctuations in price.¢  Theeconomics can be calculated daily also.

¢  Improvesthe family diet in terms of nutrition.¢  Themale animals are utilized for draft purpose.¢  Evenafter death, the carcasses are utilized¢   EconOmicfactors¢  Economicmilk production mainly depends upon the economic feed formulations.¢  Theeffective breeding policy – Selection of high yielding animals.¢  Dryroughages will improve the butter fat content – high payment for the milk.¢  Themanagemental conditions are cardinal in maintaining the optimum level ofproduction and also to keep up the animal health ¢  Theoptimum use of land, manure resources to produce fodder with less investment.

¢  Betterlabour efficiency¢  Efficientdisposal of milk plays half of the economic role in dairying¢  Soundbusiness practices appropriate to dairy farming is important at all levels.i.e., purchases of inputs, and also disposal of products and  by products ¢  Postproduction of milk¢  Amedium or big size dairy farm simultaneously they can have either processing ofmilk 1 production of many dairy production.¢  Simultaneousestablishment of processing plant will increase the income of dairying 30-40% andestablishment of products factory will increase the profit by 40-50 % overdairy farming      Factors influencedairy farm ¢  Selectionof good animals¢  Balancedfeeding¢  Greenfodder feeding¢  Conservationof greens¢  Formulationof concentrates with unconventional ingredients¢  GMP¢  Usesof agricultural by products¢  Effectiveutilization of labour¢  Replacementof the herd¢  Milkprice¢  Advertisement¢  Conservationin to milk products¢  EconomicInstitutions Supporting Dairy development Programmes / Agencies ¢  Forstarting any business, the foremost important resource one should give primeimportance is finance¢  Severalinstitutions are concerned either directly or indirectly in the activities orproviding finance to establish dairy farm, milk collection centres, dairyplants etc¢  Indian Dairy Corporation¢  NDDB¢  NABARD¢  Commercial Bank¢  Cooperative ¢  Milkpricing ¢  Thepricing of any commodity is always based on its cost price and the price paidby the consumer¢  Anypricing system followed should be¢  Remunerativeto the producers.¢  Competitiveto the local market prices.

¢  Discourageadulteration and promote quality consciousness.¢  Basedon milk constituents i.e. Fat & SNF¢           Pricing onpro-rata fat basis milk procurement        ¢  Priceof milk is fixed proportional to the fat content of milk¢  Thissystem will assign practically zero value for value for S.N.F content  ¢  Pricingon two axis basis¢  Basedon both fat and SNF, it is called as “two access pricing”¢  Usedin pricing cow as well as buffalo milk where both fat and SNF contents aretaken into accounts.¢  Theprices of fat and SNF are fixed depending-upon the market price of GHEE andskim milk power¢  Normallythe price of fat will be declared by thunion for different seasonsand the priceof SNF will be 2/3 price of the fat Pricing onEquivalent Fat unit basis ¢ SNFunits are converted into equivalent fat unit in proportion to the relativemarket prices of fat SNF¢ The SNFis Value at 2/3 unit of fat