Contract Farming Resource Centre

Comparative profile of milk producers in different marketing systems

Year 2006

On comparison of three milk procurement systems of open economy namely vendor, cooperative and integrated contract system members of integrated contract system were found to have better education and landholdings. Among the members of vendor and cooperatives there was less remarkable difference in education, but better land holdings were noticed in cooperative system. Majority of the farmers had dairying as subsidiary occupation and wide range of experience. The members of cooperatives and integrated contract systems had better herd size and dairy income than the farmers of vendor system. But between cooperative and contract system, members, there was not much remarkable difference in herd size and dairy income. The credit behaviour and investment by cooperative and integrated members was higher than vendor system members. On comparing cooperative and contract system members, the cooperative members showed better credit behaviour and higher investment. Members in contract system had better extension agency contact followed by members of cooperatives. But the members of cooperative had better mass media exposure than others. Similarly, majority of members of the cooperative and integrated contract systems had medium to high level of economic motivation. Members of vendor system had low degree economic motivation on comparison. Majority of the members of all the three systems had medium to high level of aspiration in dairy farming. But the above differences were not significant between cooperative and integrated contract farming systems. Significant differences were observed between vendor and organised system cooperative/integrated contract farming system.