International Journal of Agriculture Extension and Social Development

author(s)
NW Shinde, GN Narnaware, SS Shinde and AB Wakade

abstract
Cooperatives and private companies comprise India's formal dairy industry, while smaller processing units and milk merchants comprise the informal sector. Most of the country's milk supply still comes from the informal sector. This research examined the financial model of a student training dairy plant that provides formal training related to dairy processing for students pursuing a Bachelor of Technology degree in Dairy Technology. Market availability and diversification into traditional indigenous value-added dairy products determine the net returns of processing traditional dairy products at the level of milk producers. Traditional Indian dairy products such as Khoa, Pedha, Kalakand, Paneer, Basundi, and Shrikhand are popular. An economic analysis was required to determine the optimal cost of each component utilized in manufacturing these dairy products. These returns and expenses will help the presence of these products in a competitive market. Consequently, optimal pricing will be achieved for both the producer and the consumer. Estimates for the production cost per kilogram were as follows: Rs.388.95, Rs.398.88, Rs.386.27, Rs.391.15, Rs.202.43, and Rs.169.31 for Khoa, Pedha, Kalakand, Paneer, and Shrikhand, respectively. Shrikhand had the highest profit margin at 41.75 percent over cost, while Basundi came in second at 18.56 percent.