Is traditional milk marketing and processing viable and efficient? An empirical evidence from Assam, India
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Integrated food supply chains serving urban areas are the fastest growing and most
visible market phenomenon, yet small scale milk market agents and chains supplying
fresh milk and traditionally processed dairy products still play a very large role in most
of the developing countries. This study estimates the costs and returns of milk
marketing and processing, identifies the drivers for participation in high value milk
processing and value addition and estimates the cost efficiency and its determinants in
the traditional milk sector in Assam. The study observed that raw milk trading and
processing offers good opportunities for income generation to small scale milk traders
and processors. The raw milk marketing and trading is reasonably efficient and has the
potential for continued dominance in spite of emerging integrated food supply chains.