Performance and Economic Impact of Dairy Cooperatives in Pulwama District of Jammu and Kashmir (UT), India

Background: Due to the presence of vast green pastures and moderate climate in J and K (UT), livestock sector has assumed a lot of significance in its Agrarian economy. In this context, the study has explored production and marketing of milk in Pulwama district of J and K. Pulwama district was chosen purposely as it is famously called as ‘Anand of Kashmir’ and contributes around 24% milk in Kashmir region of J and K. Methods: Milk production and its disposal pattern by the milk producers in Kashmir was categorized into formal and informal milk marketing channels. Formal channel consisted of production, processing and retailing of milk by small producers through organized channels such as Jammu and Kashmir Milk Producers’ Cooperative Limited (JKMPCL). The informal channel comprised of milk processing through traditional vendors and other local intermediaries and or direct retailing of milk to consumers by small milk producers. A comparative analysis of 25 milk producers each in formal and informal milk marketing channels was made to understand demographic profile, costs and returns, major problems and benefits under both the channels. Result: The findings of the study have revealed that JKMPCL dairy cooperative has created a well-organized formal channel of milk procurement, processing and retailing. Young and educated milk producers’ participation was found to be more in formal channel as compared to informal channels. Milk producers in formal channel had more land and larger ownership of dairy animals. Formal channel producers received larger returns due to higher milk yield and prices than the informal channel producers though the cost of milk production was found to be higher in formal channel. The study suggested that enhancing milk procurement and processing through formal channels such as cooperatives and extending advance credit and training facilities and veterinary services through cooperatives can a play a vital role in improving farmers’ welfare in Kashmir region of India.