In Search of the Determinants of Dairy Production in an Emerging Market: A Panel Data Approach

Abstract

In view of the growing importance of the dairy sector, especially for the livelihood of the rural population and the increasing demand for milk by the Indian population, higher yield of milk animals and milk availability have become the focal point of attention. This study aims to identify the determinants of dairy production in India by examining the relationship of crossbreed and buffalo populations with the quantity of milk production across different Indian states. Fifteen major Indian states were included in this study and relevant secondary data from 2001 to 2019 was taken for analysis. The sources of statistical data are BAHS (GOI), Statistical abstract, NDDB website, etc. Coarse cereal, fodder crops, grazing land, artificial insemination and veterinary services have an influence on the total milk production of the Indian states, and the significance of these impacts was tested by pooled OLS regression analysis. Crossbreed cows, indigenous cows, buffalo and goat populations were tested with the Spearman’s rho correlation test, and these variables were also found to have a positive correlation with the quantity of total milk production (TMP). The study was further extended to compare the population strength of the crossbreed and buffalo, their growth rate and ultimately the status of average milk production across the major Indian states during the period 2001 to 2019. Uttar Pradesh, Rajasthan, Gujarat, Punjab and Andhra Pradesh were found to have healthy production of milk. However, Bihar and Rajasthan were found as promising states. States like Orissa, Kerala, Uttarakhand and West Bengal were found to have certain points of concern.