Economic analysis of production and utilization pattern of milk and milk products in Andhra Pradesh

Despite the growing importance of dairy as a livelihood source and its role in nutritional security, there remains a noticeable gap in region-specific studies that examine the production and utilization dynamics at the micro level. The present study was conducted in Andhra Pradesh, India, to evaluate milk production dynamics and utilization patterns among dairy households. Primary data were collected from Chittoor and East Godavari districts, and households were stratified into small, medium, and large categories using the cumulative root frequency technique based on herd size. The average daily milk production per household was 13.26 litres, with crossbred cows contributing the highest share (64.53%), followed by buffaloes (28.41%) and indigenous cattle (7.06%). Of the total milk produced, 14.03% was retained for home consumption, 0.71% was lost during handling, and 85.25% was sold. Among the marketed surplus, 57.58% was routed through formal channels, including cooperatives (36.83%) and private agencies (20.75%), while the remaining 42.42% was sold via informal outlets such as vendors (23.39%), direct consumers (9.58%), and creameries/halwais (9.41%). The results highlight a relatively high level of commercialization in the region’s dairy sector, driven largely by crossbred cattle. However, the study also identified key constraints affecting dairy farmers, with the inadequate availability of green and dry fodder emerging as the most critical challenge. The findings emphasize the need for region-specific interventions to improve input availability, strengthen formal marketing linkages, and enhance dairy productivity. This study provides empirical evidence to inform policies aimed at sustainable dairy development in Andhra Pradesh.