Economic Analysis of Milk Marketing in Sindh Province: A Case Study of District Dadu

Abstract

In order to analyze milk marketing in Sindh province, a survey study was carried from distrct dadu, during the year 2014. Primary data were collected from 100 respondents which included 25 milk producers, 25 milk traders, 25 milk hawkers and 25 milk retailers. The results revealed that the average price of milk paid by a milk trader to the milk producer was Rs. 47/liter, while the marketing costs were Rs. 1.45/liter which were incurred on the processing, transportation and taxation etc. Hence, the total outlay of the milk was enumerated to be Rs. 48.45/liter and subsequently sold to milk hawker at the rate of Rs. 51/liter. The marketing margin and net margin of milk trader were estimated at Rs. 4/liter and Rs. 2.55/liter, respectively. The milk hawker sold the milk at the rate of Rs. 56/liter to retailer and the retailer sold at the rate of Rs. 60/liter to the consumer. Marketing expenditures incurred by hawker and retailer were estimated at Rs. 1.55/liter and Rs. 2.25/liter, respectively. Marketing margin and net margin of hawker were found to be Rs. 5/liter and Rs. 3.45/liter. The breakdown of consumer’s rupee revealed that 78.33 percent was taken by the milk producer, while the shares of milk trader, milk hawker and milk retailer were 6.67, 8.33 and 6.67 percent, respectively. It was concluded that marketing system for milk was not identical; the marketing structure was found completely non-commercialized. The milk traders were engaged in distinct types of operations; they purchased and processed milk and sold it to milk hawker, and also to the retailer. Similarly, milk hawker purchased milk from producers and also from milk trader, and sold to retailers and also to consumers. Finally, the retailers purchased milk from hawker and also from milk trader and sold it to consumers..

Keywords: Economic analyses, Milk Marketing, marketing system and. Dadu and Sindh