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.