Economic analysis of milk production in Southern and North coastal regions of Andhra Pradesh

A study on economic analysis of milk production was carried out in Chittoor and Vishakhapatnam districts of Andhra Pradesh. Using the cumulative square root frequency method, farms were divided into small, medium, and large groups based on the number ofmilch animals. A sample of 80 dairy farmers as drawn randomly from selected four villages of Chittoor and Vishakhapatnam districts of Andhra Pradesh during 2019-20. The cost and return calculation was computed using the budgeting technique. Fixed costs and variable costs were considered for estimation using the capital recovery cost technique. The overall maintenance cost per day per animal was highest for buffalo, followed by crossbred and indigenous cows. The overall cost of milk production was highest in the case of indigenous ( 32.45/ litre) cow followed by buffalo ( 30.31/litre) and crossbred ( 22.64/litre). Study revealed that buffalos were found to be more profitable than crossbred and indigenous cows. Milk productivity was highest for crossbred cows as compared to indigenous cows and buffalos. Because of higher market price of milk for buffalo and comparative lower maintenance cost, overall net returns of buffalo were higher than crossbred and indigenous cows.