Determinants of the Milk Marketing Channel Options among the Dairy Farmers of Punjab

Abstract

Background: Dairying is an integral part of farming system of India. In 2019-20, milk production in Punjab was 13,347 thousand tonnes and growth rate was about 5.60 per cent per annum. Milk production is only profitable if there are proper marketing facilities. The objective of the present study is analyzing the determinants that affect the choice of milk marketing channels by the dairy farmers of Punjab. Methods: The present study is based on primary data, collected through a detailed schedule from 420 dairy farmers in 2019 belonging to different farm size categories from 21 villages situated across three different agro-climatic zones of Punjab state of India, using a multi-stage sampling technique. Binary Logistic Model has been used for the purpose of analysis. Result: The significant variables affecting the choice of milk marketing channels by the dairy farmers are found to be the presence of milk collection centre in the village and herd size of the dairy farmer. The value of Cox and Snell R-square indicates that around 17.00 per cent of the variations in the choice of marketing channels are attributed to the variations in the explanatory variables included in the study.