Estimation of Marketed Surplus and Marketing Efficiency of Milk in Andhra Pradesh, India

A study was conducted to analyze milk's marketed surplus and marketing efficiency in the Vishakhapatnam and Chittoor districts of Andhra Pradesh. The study randomly selected 80 dairy farmers from four villages in Chittoor and Vishakhapatnam districts. According to the study, average milk production and marketable surplus increase as herd size increases. The average marketed surplus is highest for the large size category (58.75 lit/day) followed by Medium (45.40 lit/day) and small size category (19.01 lit/day). Because of the lowest price spread and highest producer share in consumers' rupee, the most efficient marketing channel was producer-consumer (Channel-I), followed by producer-creameries-consumer (Channel-II). The study suggests that producers' choice of supply network influences their profitability.