Economics of Dairy Products: A Case Study

The present study optimize the cost of dairy products in manufacturing in a dairy plant so that consumers should get benefitted from the price of respective product sales in the market. Additionally, this study helps to reduce the handling and operational losses of the dairy plant. The study was undertaken in the Experimental Dairy Plant, National Dairy Research Institute, Karnal (Haryana), with a handling capacity of ten thousand liters per day, to optimize the cost of Dairy products manufactured in the dairy plant. Burfi and Ice-cream are among the most crucial Indian dairy products processed in a dairy plant and widely consumed. Primary and Secondary data were both used to conduct this study. Primary observations and interviews with plant employees round out the primary data. Secondary data, such as milk inflow, its usage pattern, and product output, were gathered from various plant ledgers. To reduce the cost of each ingredient used to make Burfi and ice cream, an economic study of this dairy product in a dairy plant is required. The dairy product will keep its presence in the competitive market, and as a result, the consumer will benefit from this optimum price. Therefore, calculated the product cost was in a dairy plant, and the fixed and variable cost was 24.56 and 75.44 percent for Burfi and 34.01 and 65.99 percent for ice cream, respectively. This study shows that the dairy plant has surplus production of 3721.69 kg and 1,02,082.33 cups of 100 ml of output Burfi and Ice-cream, respectively, after the break-even point. This study suggests that the small milk producer and self-help groups should engage in value-added product processing on their own by taking training from institutions to generate income and employment to support the rural economy.