Project Report
on
A STUDY OF
THE FINANCING AND MARKETING PRACTICES OF
VILLAGERS ENGAGED IN
DAIRY FARMING IN MALAPPURAM DISTRICT
Submitted to
The University Grants Commission
By
Prof. CK Hassan
Associate Professor
(Principal Investigator)
Department of Commerce
MES Keveeyam College,Valanchery
Malappuram (Dt), Kerala
Date of submission
5th March2013
1
DEPARTMENT OF COMMERCE
M.E.S KEVEEYAM COLLEGEVALANCHERY
P.O. Valanchery, Malappuram District, Kerala
PROJECT REPORT ON
A Study of the Financing and Marketing Practices of
Villagers Engaged in the Dairy Farming
in Malappuram District
Project report submitted to the University Grants Commission.
Prof.C. K. HASSAN
Principal investigator
Dr. K. HUSSAIN
Principal
Valanchery,
5th March,2013
2
ACKNOWLEDGEMENTS
I would like to acknowledge the faith generated in me through the unmerited favour
bestowed upon by 'Sovereign God' who help me going at every step of the way.
I have immense pleasure in thanking our principal Dr K. HUSSAIN for his support
and co-operation for this project work.
I am greatly thankful to my colleagues Prof.Jaseena PT and Prof. KH Abdurazzak
who had been guiding me and helping me in the work.
My sincere thanks to the villagers in Malappuram district, who were the subject of the
survey, for their sincere co-operation and support for my work, without their help and
instructions I could not have completed this work properly.
I have immense pleasure in thanking my parents and friends. I am also thankful to
Mr. Arun Meppayur who assisted me in providing a proper lay out of the project report.
3
CONTENTS
Sl. no
1
Particulars
Introduction
2
Profile of Malappuram District
3
Project profile
4
Financing & Marketing practices of
Villagers in dairy farming
5
Conclusion
6
Findings and Recommendations
7
Annexure 111 and 1X
8
Questionnaire
4
Chapter 1
Introduction
5
Introduction
India is a country having diverse nature of social set up just as it has a varied type of
natural and climatic conditions. Rural development is the foundation for the development of
upcoming countries like India. The soul of India lives in villages as 72 per cent of the
population of our nation live there, we have to be conscious about the development of our
villages and the small and cottage industries and farming and agriculture. Agriculture and
allied activities are the main source of their livelihood. From very ancient period itself,
villagers are engaged with agriculture and other allied activities for their livelihood. If we
examine the pages of ancient Indian history we can see that the agriculture and dairy farming
sectors in the country supported the people of the country for their bread winning activities.
There are lots of employment opportunities available in the villages. In the village
there are many traditional occupations and cottage industries on which villages depend for
their livelihood. For example, pottery, carpentry, basket making, leather craft, textile weaving
and dying, jute weaving etc.
In addition to these, rural villagers are also engaged with cattle farming and other
agricultural activities for their livelihood. Cattle farming is said to be an important occupation
to many of the villagers of Malappuram district are concerned.
6
PROJECT PROFILE
Dairying is an important source of subsidiary income to small/marginal farmers and
agricultural labourers. The manure from animals provides a good source of organic matter for
improving soil fertility and crop yields. The gober gas from the dung is used as fuel for
domestic purposes as also for running engines for drawing water from well. The surplus
fodder and agricultural by-products are gainfully utilised for feeding the animals. Almost all
draught power for farm operations and transportation is supplied by bullocks. Since
agriculture is mostly seasonal, there is a possibility of finding employment throughout the
year for many persons through dairy farming. Thus, dairy also provides employment
throughout the year. The main beneficiaries of dairy programmes are small/marginal farmers
and landless labourers. A farmer can earn a gross surplus of about Rs. 12,000 per year from a
unit consisting of 2 milking cattles. The capital investment required for purchase of 1 cattle is
Rs. 17500/-(approximately). . Even more profits can be earned depending upon the breed of
animal, managerial skills and marketing potential.
Milk and milk products are very important in an average family in the district. The study is
aimed to understand the actual marketing practices followed and the financial problems faced
by the villagers of the district. It is a fact that the villagers allover the nation are traditionally
following the self employment practices of which dairy farming scores a prominent role.
No much study in the subject has been conducted in the subject so far in the district. The
report will be of much help to the research scholars, local Governments and other authorities
and NGOs who are interested in studying the villagers of the district.
7
AIM OF THE STUDY
A thorough enquiry into the major marketing and financial practices followed and the
problems faced by the villagers engaged in dairy farming is the main aim of this study.
ORIGIN OF THE RESEARCH PROBLEM
In India villagers form a considerable number whose problems have to be looked into with
desired interest. There is not much research work conducted to bring to light the financing
and marketing practices followed by the villagers engaged in dairy farming in Kerala.
SIGNIFICANCE OF THE STUDY
The study of the financing and marketing practices of the villagers has great significance in
the present scenario. Uplift of the villagers in the country is one of the remedies (as envisaged
by our father of nation) to bring about the balanced regional development of the country. As
the soul of India lives in villages, the development of the nation greatly depends upon the
development of villages. Villagers are very much potential to create self employment to earn
their bread for their livelihood in the country
Kerala, the state described as the “gods own country” is very rich in scenic beauty and natural
resources. Malappuram district is one of the fourteen districts in the state located in the
middle of the geographical map of the state. Malappuram, land atop the hills, was formed on
16th June in 1969. It has an area of 3550 sq Kms. and with regard to area the district is third
in the state. The total population of the district is 3625471 and the literacy rate is 88 per cent.
The main occupation of the people is agriculture and allied activities. The total registered
industries are 987 and small scale industrial units 9439.
8
Chapter 2
Profile of Malappuram District
9
General Features.
Bounded by the Nilgiris hills on the East and the Arabian Sea on the west, the district
of Malappuram literally means the land atop the hills, is remarkable for its unique natural
beauty. Perched among the undulating hills and the meandering rivers that flow to reach the
coconut-fringed seacoast, the land conceals a unique and eventful history. Home to the
khilafath movement and the mappila revolts, which questioned the British authority in India,
Malappuram was the military headquarters of the Zamorins of Kozhikode since ancient
times.
The hill country also contributed much to the cultural artistic traditions of the state.
The mosques and temples of the land are known for their spectacular festivals. The land of
great poets and writers, political and religious leaders, the district has carved a unique place
of its own in the history of Kerala.
Malappuram district was formed on 16th of June 1969. The Nilgiris of Tamil Nadu in
the east, Arabian Sea in the west, Kozhikode and Wayanad districts in the north and Palakkad
and Thrissur districts in the South. The district has a geographical area of 3550 Sq.Kms,
which is 9.13 per cent of the total area of the state. With regard to area, Malappuram district
ranks 3rd in the state.
Topography and Climate
The location of Malappuram district is 75 to 77 east longitude and 100-to 120-north
latitude, in the geographical map. Like most of the other districts of the state, Malappuram
too consists of three natural divisions, lowland, midland and highland. The low land stretches
along the seacoast, the midland in the centre and the highland region towards the east and
north eastern parts. The topography of the district is highly undulating; starting from the
hilltops covered with thick forests on the east along the Nilgiris. It gradually slopes down to
the valleys and the small hills, before finally ending on the sandy flat of luxuriant coconut
groves in the west.
The district has more or less the same climatic conditions prevalent else-where the
state, viz, dry season from December to February, hot season from March to May, the South
West Monsoon from October to November. The South West Monsoon is usually very heavy
and nearly 75 per cent of the annual rains are received during this season. The climate is
10
generally hot and humid; the range of temperature varying between 300C and 200C. The
Average annual rainfall is 290mm.
History
Malappuram literally means the land atop the hills. It was formed as a district of
Kerala in 1969. Malappuram is a district of Kerala state in southern India. The district
headquarters is at Malappuram. It was formed on June 16, 1969 with an area of 3550 km².
The district has a population of 3,625,471 (2001 census), and an with a population
density of 1,022 persons per km².
The district has a rich cultural and political heritage. Malappuram is known for
national movements such as Khilafath Movement and Malabar Rebellion, in which the
common man struggled against feudalism and colonialism alike. Though there were
occasional religious overtones associated with such movements, many historians
acknowledge them as part of Indian Independence Struggle.
Before India's Independence in 1947, Malappuram was part of Malabar District in the
Madras Presidency of British India. The area covered by the present district was administered
as part of Kozhikode, Ernad, Valluvanad and Ponnani taluks. Malabar District remained part
of Madras state immediately after Indian Independence. On 1 November 1956, Malabar
District was merged with Travancore-Cochin to form the state of Kerala, and large-scale
changes in the territorial jurisdiction of this tract took place in 1957 and 1969. On 1 January
1957, Tirur taluk was newly formed taking portions of Ernad and Ponnani taluks. Another
portion of Ponnani taluk was transferred to the newly formed Chavakkad taluk, while the
residuary portion was known as Ponnani taluk. Perinthalmanna was a new taluk formed out
of the erstwhile Valluvanad taluk. Of these, Ernad and Tirur continued under Kozhikode
District and Perinthalmanna as well as Ponnani under the Palakkad District. The new district
of Malappuram was formed with four taluks, Ernad, Perinthalmanna, Tirur and Ponnani, four
statutory towns, fourteen developmental blocks and 95 panchayats. Two more taluks, namely
Tirurangadi and Nilambur, were formed later by bifurcating Tirur and Ernad taluks.
11
Population
Population and literacy figures as per 2001 census
District/Taluk Total/
Population
Literates
(Source 2001 Rural/ Person
Male
Female
Person
Male
Female
census)
Urban
Malappuram
T
3,629,640 1,759,479 1,870,161 2,745,389 1,363,647 1,381,751
District
R
3,273,657 1,586,791 1,686,866 2,465,937 1,224,864 1,241,073
U
355,983
172,688
183,295
279,461
138,783
140,678
T
781,523
386,036
395,487
607,748
309,571
298,177
R
611,159
302,367
308,792
471,723
241,616
230,107
170,364
83,669
86,695
136,025
67,955
68,070
Nilambur Taluk T
509,404
246,744
262,660
358,134
179,167
178,967
R
509,404
246,744
262,660
358,134
179,167
178,967
-
-
-
-
-
-
T
535,113
261,747
273,366
401,816
191,922
209,894
R
490,500
240,250
250,250
365,838
174,299
191,539
44,613
21,497
23,116
35,978
17,623
18,355
T
834,762
398,492
436,270
635,939
313,254
322,685
R
781,112
372,589
408,523
593,143
292,199
300,944
53,650
25,903
27,747
42,796
21,055
21,741
T
619,379
300,373
319,006
472,941
237,575
235,366
R
619,379
300,373
319,006
472,941
237,575
235,366
-
-
-
-
-
-
T
349,459
166,087
183,372
268,820
132,158
136,662
R
262,103
124,468
137,635
204,158
100,008
104,150
U
87,356
41,619
45,737
64,662
32,150
32,512
Ernad Taluk
U
U
Perithalmanna
Taluk
U
Tirur Taluk
U
Tirurangadi
Taluk
U
Ponani Taluk
12
Geography
The district lies in northern Kerala, and is bounded on the north by Wayanad and
Kozhikode districts, on the northeast by Tamil Nadu, on the southeast and south by Palakkad
District, on the southwest by Thrissur District, on the west by the Arabian Sea, and on the
northwest by Kozhikode District.
At present Malappuram District consists of 2 revenue divisions, 6 taluks, 135 villages,
14 blocks, 5 municipalities and 100 panchayats.
Four important rivers of Kerala, flow through Malappuram district. They are Chaliyar
(Beypore river), Kadalundipuzha, Bharathapuzha and Tirurpuzha. Chaliyar has a length of
169 km and originates from Illambalieri hills in Tamilnadu, important tributaries of this river
are Chalipuzha, Punnapuzha, Pandiyar, Karimpuzha, Cherupuzha and Vadapurampuzha.
Chaliyar traverses through Nilambur, Mampad, Edavanna, Areekade, Vazhakkad and flows
into the sea at Beypore in Kozhikode district.
Kadalundipuzha is formed by the confluence of two rivers, the Olipuzha and Veliyar.
Olipuzha originates form Cherakomban hill and Veliyar from Erattakomban hill. They flow
through the Silent Valley and traverse through Ernad and Valluvanad regions, before flowing
into the sea at Kadalundi Nagaram. It passes through places like Melattur, Pandikkad,
Malappuram, Pankkad, Parappur, Kooriyad and Tirurangadi. Kadalundipuzha has a circuit
course of 130 km.
Of these rivers, only Chaliyar is perennial; all others get dry up in summer and hence
Malappuram district is prone to draught. In Tirur and Ponnani taluks, kayals (backwaters)
like Biyyamp, Veliyancode, Manur, Kodinhi etc offer fishing and navigation facilities.
Demographics
According to the 2001 Census, the district has a population of3,625,471. Of the total
population 1759479 are males and 1865992 are females, forming a ratio of 1063 females for
every 1000 males, the state ratio being 1058 females for 1000 males which is higher than the
state average (819 per km².). Literacy as per 2001 census is put at 88.61%. Subsequently,
Malappuram District was declared 100% literate along with other districts of the state; made
possible by in intensive state wide literacy drive.
13
Muslims constitute the majority of the population, and next come the Hindu and the
Christian communities respectively. The Muslims of Malappuram District are known as
Mappilas. A great majority of them are traditional Sunnis following the Shafi School of
thought and the second majority is the followers accelerated growth in social development
and education among Muslims. All of the social reforms in and around Malappuram District
is due to the historical renaissence activities lead by Kerala Nadvathul mujahidheen (K.N.M)
and its allied organisations Malappuram is the birth place of number of Muslim scholars and
orators. Kumbara/kushala, the particular community whose main business is pottery
manufacturing and marketing comes only around 25000 to 30000 in the district.
Places of Importance
There are various places of touristic, ecological, religious and historic importance in
the district.
The Kozhikode International Airport and the University of Calicut are located in
MalappuramDistrict. Chungathara, Etakkare, Areecode, Amarambalam, Nilambu road,
Vadapuram, Kiluparamba, Areecode, Vazhakkad, Arikkod, Kondotti, Trikkalangod, Wandur,
Edavanna,
Vaniyambalam,
Kalikavu,
Valikkunnu,
Vallulvambram,
Pandikkad,
Karuvarakkundu, Parappanangadi, Malappuram, Perithalmanna, Kulattur, Athavanad, Tirur,
Kuttipuram, Ponnani, Eddapal, Pallikara
Art and Culture
Malappuram district has a good tradition in the field of art and culture. Many of the
renowned writers and poets hail from this part of the land. It is a long chain, starting with
Thunjath Ezhuthachan, honoured as the father of modern Malayalam literature. He was born
in Trikkandiyur near Tirur, 400 years ago. He wrote his poems in Malayalam, when the
Kerala literary field was crushed under Sanskrit, the language of the upper class. Ramayana
and Bharatham of Ezhuthachan are widely read in Malayali houses, as sacred books.
14
Industries
As on 31-03-2001,there were 11334 small industrial units with permanent
registration. Out of them, 21.21 per cent are agro-based and 22.94 per cent are textile based.
These units have a total investment of Rs. 176 cores and they provide employment directly to
45200 people. The average investment per unit is Rs.1.55 lakhs. There are about 696
women’s industrial units and about Rs.1 core is spent annually for various industrial
promotion schemes like investment subsidy, interest subsidy, self employment assistance, etc.
in the district. There are 25 medium industries of which only 11 are working which provide
direct employment to 2,300 people. These units have a total capital investment of Rs. 46
cores. Among the medium undertakings, 3 are spinning mills.
There is one major industrial Estate (16 Industries and 8 mini industrial estate in the
District – 51 working units.) About 1,000 persons were assisted under PMRY scheme every
year of self-employment scheme. Preliminary steps for establishing an industrial growth
centre in 250 acres bear panakkad, has been completed. Kinfra Food Park and IT park have
come up at Kakkancherry. A rubber based common facility centre and industrial estate
established at Payyanad at a cost of Rs.1 crore is showing promise. The estate is spread in an
area of 15.03 acres, in which 32 plots have been given to entrepreneurs for rubber based
units. 17 units are now functioning there.
A single window counter functions at the District Industries Centre, to mitigate
problems faced by new entrepreneurs. Besides the District Industries Centre at Malappuram,
4 Taluk industries offices and 14 block extension offices are functioning.
15
Malappuram District Map
16
Pottery
17
OBJECTIVES OF THE STUDY
The study, though confined to a limited area only, serve the purpose of having a deep peep
into the practices followed and practices of the villagers engaged in dairy farming in the rural
areas of Malappuram district. The specific objectives of the study are enlisted as follows:
1. To study the present position of dairy farming in Malappuram district.
2. To study the marketing practices of villagers engaged in dairy farming in the district.
3. To analyse the financial issues with regard to the dairy farming in the district.
4. To understand the availability of resources to the villagers in the matter of dairy farming
5. To analyse the marketing problems faced by them in general.
6. To suggest remedies for the problems of the artisans of the district.
PERIOD OF STUDY
The study covers a period of 7 years from 2005 to 2012. Wherever needed occurring beyond
this period was also considered.
TOOLS OF ANALYSIS OF DATA.
The collected data were analysed by using mathematical as well as statistical tools. Thus,
ratios, percentages, averages, correlation etc were used as tools for the analysis of data. For
the interpretation data graphs, diagrams, charts etc were used.
LIMITATIONS OF THE STUDY
The Government organizations have no complete and accurate records regarding the
whereabouts of the dairy farms. There was not much published data available in the subject.
Even the available data were not complete and some of the data were not conforming to the
study period.
The collection of primary data also was difficult because some of the dairy farms didn’t
respond in a proper way for the queries. This was mainly due to their ignorance and illiteracy.
18
All these acted as limitations to the study. However, the investigator taken pains to complete
the survey with as much accuracy as possible.
METHODOLOGY
The study is based on both secondary and primary data. Secondary data were obtained from
the records of the related institutions like banks, local bodies, milk marketing co-operatives,
Co-operative societies and publications. There were not much published data available and
therefore the study was mainly based on primary data collected from a representative sample
of villagers.
Sample design:
Upon verification it was understood that the dairy farmers of the district are scattered in the
district. Villagers have generally adopted dairy farming as a part of their life style in the
district. Every household is basically in need of milk or milk products in their food habits.
Most of the villagers buy milk or milk products from the market and the remaining make
their milk requirements by their own dairy farming
A sample consisting of 150 dairy farmers were selected randomly from Malappuram
District to study their financial and marketing practices. The sample was selected in such a
way that it represents the District’s farming community well and the trends obtained through
the analysis of the data reveals the most general good and bad outcomes of dairy farming not
only in the District alone but in the entire State of Kerala. The tool used for the sample survey
was a questionnaire comprising of 30 questions and the translated version of the same is
attached. Trained enumerators were used to help the farmers understand the concept of each
question and to elicit correct returns. A report based on the important aspects of rural dairy
farming in Malappuram District follows.
19
Nature of ownership of the farm :From the study, it is obvious that most of the farmers in the rural area run small scale
ventures with one or two cows on a self owned manner. Ownership of 99% of the
farms is self. The concentrated efforts on joint basis utilizing advanced resources and
techniques aiming at bigger profits are rare till now in the rural area of the District.
Perhaps the scope of this project is centered on such small enterprises which nurture
the rural life and economy in its own way. Following diagram shows the ownership
status among the sample.
Nature of
No of
ownership
farmers
Percentage
Self
148
99
Joint
2
1
2
Self
Joint
148
No of animals (cows)
The classification based on the number of cows possessed by each farmer is helpful
in determining the average size of livestock possessed by a farmer. The number of
milk giving cows is one in almost all cases.150 farmers are here tabled according to
the number of cows. Farmers who own two animals at a time is a high 64 percentage
followed by those who own 1 cow at a time with a 24 percentage. Farmers with
relatively higher number of animals such as four or five are negligible. It is also
20
interesting to note that among the two cows owned by the most farmers, one is the
single offspring in the case of milking cows. This type of analysis also shows that the
number of milking cows affordable to a single owner is uniformly one, maintaining
the fact that the farming activity remains in the household as an additional income
generator along with catering the domestic requirement for the milk or it is treated as
supplementary to agricultural pursuit. This widespread pattern is common for any
rural area in Kerala.
No. of
animals
1
2
3
4
5
No.
farmers
36
96
10
6
2
Percentage
24
64
7
4
1
120
96
100
80
60
40
No. farmers
36
20
10
6
2
0
1
2
3
4
5
No. of animals (cows)
Number of years in farming: The experience of farmers in this sector varies from 1 to 40 years, which reveals the
persistent status of dairy farming as a mean to livelihood for lower income group
households in the rural areas of the District. The number of farmers showing interest
in farming during the last five years is high with 43 percentage followed by each
interval of width 5 years rallies with lesser number of farmers in the group. The data
uncover the trust shown by farmers in this profession for long years are phenomenal.
The farmers with more than twenty years of experience and still venturing in the same
21
are obviously a positive indication. The increase in number of new people attracted
from year to year to the farming is a sign of hopeful progress and prosperity among
rural mass in the District towards this small scale enterprise. The following frequency
table and chart exhibits the data well.
Years of
experience(Interval)
1-5
5 - 10
10 - 15
15 - 20
20 - 25
25 - 30
30 - 35
35 - 40
70
No. of
farmers
64
26
21
15
10
8
4
2
Percentage
43
17
14
10
7
5
3
1
64
60
50
40
30
No. of farmers
26
21
20
15
10
10
8
4
2
0
1-5
5 - 10 10 - 15 15 - 20 20 - 25 25 - 30 30 - 35 35 - 40
Status of dairy farming as the employment (Main / Additional)
The number of people resort to cattle farming as a main livelihood is only 46
percentage. While as many as 54 percentages of the individuals under the study treats
farming as a part –time or allied activity. The gender aspect in the ownership status
reveals that the female participation in the pursuit is very higher with a 65 percentage
than that of males. The 47 percentage who returned cattle farming as main activity
22
constitute a large number of female housewives, the folk generally treated as nonproductive especially in Districts like Malappuram where many social taboos are
attached with female work participation. The pie charts show the pattern in both the
classification of farming as main or additional activity and the gender-wise split of
total farmers.
Status of dairy farming
Percentage
69
81
Main
Additional
46
54
Status of dairy farming
69
Main
81
Additional
Gender -wise data on
ownership
Percentage
53
35
Male
97
65
Female
23
Gender -wise data on
ownership
53
Male
Female
97
Main activity of people opted dairy farming as additional
occupation:A question about the main activity of those people who returned dairy farming as their
additional activity was asked to further classify this group based on their occupational
category. It is found that Housewives and farmers are the prominent sector which
finds an additional means through cattle farming in the rural area. The share of other
categories is relatively meager when compared with these two groups. This explains
well the small scale nature of this rural enterprise. Keeping the livestock with
agriculture has been part of rural for so long from the very beginning of civilizations.
Among the sample, the survey reveals that 36 percentage are housewives. This rate of
participation from the part of women is phenomenal in the District where the women
work very less even when the national figures are considered. Agriculture constitute
the second largest segment with 25 percentage of people employed. Though, the
figures are comparatively low, self employed people and private sector employees
also found to have engaged in cattle farming. It is quite interesting a fact that a few
government employees also devote their time to cattle farming. This cross section of
people adds dairy farming as their valuable secondary source of income. See the table
below for the detailed split-up.
24
Occupation
Agricultural
Govt.
Employee
Self
employed
Private
Sector
Business
Housewife
Others
No. of
people
20
Percentage
25
5
6
7
9
8
2
29
10
10
2
36
12
10
Agricultural
20
Govt. Employee
Self employed
Private Sector
5
Business
29
Housewife
7
2
Others
8
Source of income: The question was aimed at understanding the pivotal characteristics like the
availability of finance for purchasing the cows and other expenses such as erecting the
cattle shed. Non availability of this starting capital is the main deterrent which
prevents the rural people from engaging in activities generating income from locally
available resources and their traditional knowledge base. The survey revealed that a
maximum number of people, ie 45 percentages found their preliminary investment
from their own hands. These sorts of self financing endeavors has its own limitations
as those are less affordable to engage in somewhat large level purchasing and
expanding their operations to gain considerable earnings. Here arise the need for
planned interventions from the part banks and local self governments.35 percentage
people were successful in securing their funds through bank loans. Government
agencies also played their role by distributing cows or the amount required to set up
the farm through different plans. The others include the help from different socioeconomic groups and relief organizations dedicated for uplifting rural poor.7
25
percentage of people are benefited from these types of initiatives. Since relatively
good numbers of people are recently attracted towards this profession, encouragement
from authorities concerned will definitely enhance growth in this sector providing
more and more rural low income families to resort to such small scale vendors.
Source of
income
Self
Bank Loan
Govt. Aid
Others
No. of
people
67
52
21
10
Percentage
45
35
14
7
80
70
60
50
40
30
67
52
20
21
10
10
0
Self
Bank Loan
Govt. Aid
Others
Banks in the district have specific schemes to assist the villagers in this regard. The
contribution of the banks in providing loans to the villagers for their fixed capital requirement
is o 35%. Money lenders of the district play a small or sympathetic role in providing financial
assistance to the dairy farmers.
Place of purchase of animals: Though it requires a detailed study to understand the traditional and economical
methods practiced by rural people in procuring and maintaining various breeds of
animals each of which defers in the amount of milk it produce, the quality of milk, its
26
indigenous ability to fight fatal diseases and to survive with locally available feeds,
this preliminary survey shed light to the fact that around 41 percentage of people buy
their cows from the local market. Local markets for buying and selling livestock were
a part of rural life for so long a time since human started community living and
agriculture. Domestically bred animals occupy a share of 37 percentages. This method
of reproducing the animals domestically is also having long standing among the
farmers. They usually sell the animals and buy the ones they feel suit to their
demanding needs. The animals procured from trusted local vendors are now also
common in rural areas as per the data obtained from the sample survey.19 percentages
of the farmers adopt this method. Many are benefited from the recent government
sponsored programs for encouraging rural economic growth by providing them with
enterprises which are capable of producing sustainable income.4 percentages of
people are seen to have obtained their animals through this. The table and chart show
the details.
Place of purchase of animal
No. of
Place
farmers Percentage
Domestic bred
55
37
Local Market
61
41
Local vendors
28
19
Government
agency
6
4
6
28
55
Domestic bred
Local Market
Local vendors
Government agency
61
Availability of cattle shed:Cattle shed is one of the quintessential for maintaining the diary farm and the farmer
has to set aside a relatively large amount for this at the very beginning of the
27
venture.95 percentages of the respondents posses cattle shed of any form while the
others resort to some other arrangements to shelter the animals.
7
Availabilty of cattle shed
Yes
No
143
Type of Cattle shed:Type and quality of cattle shed largely depends on the interest and financial
affordability of the farmer. The traditional knowledge to make use locally available
material for the construction of shed reduces the cost involved. But the scope of
getting skilled workforce and material is dimmed even in the rural society. The
developing notions of hygiene also attribute to the construction of more costly and
permanent homes for animals. Mainly the people opt to have pucca thatched roof
sheds with wooden paved or cemented flooring with a 39 percentages of persons
under study. A shed made up of tiled roof shares the second spot with a 36
percentages farmers go for it. Concrete roofed strong permanent structures are also
found plenty. Other types of roofs include various types of sheets and impermanent
materials such as hay and plastic. The table and chart below present the data.
Type of
Shed
Concrete
Tiled
Thached
Others
No. of
farmers
24
51
56
12
Percentage
17
36
39
8
28
12
24
Concrete
Tiled
Thached
56
Others
51
Cost of Construction of the cattle shed: The cost of construction varies according to the type and facilities of the shed. Those
farmers who have long stay in the pursuit or those who invest relatively good amount
on every aspect of the project spend more for the construction of the shed also. The
average cost, as per the returns in the survey is Rs. 30,000 for any type of the shed.
While the average cost for the construction for concrete shed run as high as Rs. 1.5
lakh. The economy tiled roof needed Rs. 60,000.The least spent thatched sheds has
average cost of construction of Rs. 25,000 at the very first year and the impermanent
nature of the roof requires a replacement every year. All these costs are not included
the amounts incurred for time-time maintenance and repairing. In rural areas it is
understood that farmers pay great attention to the aspects related to the infrastructure
which is necessary for taking care the animals in healthy and hygienic atmosphere.
Though the income from the venture doesn’t substantiate the expenditure incurred on
constructing the shelter, rural people are steadfast in their commitment in the
profession. Data obtained on this aspect is exhibited in tables and charts.
Average cost for different types of
cattle shed(in Rupees)
Concrete
1,50,000
Tiled
60,000
Thached
30,000
29
Cost of construction of cattle shed
Cost interval
No. of
(in Rs.)
farmers
Percentage
up to 10,000
2
1
10,000 20,000
16
11
20,000 30,000
21
15
30,000 40,000
30
21
40,000 50,000
22
15
50,000 60,000
21
15
60,000 75,000
14
10
75,000 1,00,000
9
6
1,00,000 1,50,000
8
6
35
30
25
20
15
No. of farmers
10
5
0
upto 10,000 - 20,000 - 30,000 - 40,000 - 50,000 - 60,000 - 75,000 - 1,00,000
10,000 20,000 30,000 40,000 50,000 60,000 75,000 1,00,000
1,50,000
Cost of construction of the shed 
Quantity of milk produced: The quantity as well as quality of milk produced by the animals varies due to
multiple reasons ranging from the breed of cow to environmental conditions. The
assessment of these factors together with measure of daily production only can lead to
logical conclusions regarding the productivity in this sector. Since the scope of this
study is so limited that an elaborate engagement is not feasible in to factors mentioned
30
above. Usually it is visible that the productivity in the rural area is below the expected
level among small scale farmers, which the study further justify.The average daily
milk production from 130 milking cows in the sample is 8.5 liters with a standard
deviation 3.2 liters. The production from day to day is viable to vary in accordance
with the length of current milking tenure and quality of feed and many other factors.
Sales volume: A small portion of the milk is usually kept aside for the household purpose and the
remaining is sold. Household consumption of the surveyed sample is near to one liter
a day. Average sales from 130 cows are 7.6 liters. This is one of the crucial
parameters under study, which has to be compared with different other available
statistics to clearly understand the suitability of dairy farming from the production
point of view as a major or minor engagement with which people can generate
sustainable income in the rural area.
Place of marketing the milk
Since the milk co-operative have spread their network in almost entire areas of the
rural Kerala, people don’t find much difficulty to market their produce, though some
expressed their concern over the distance to these societies. The farmers marketing
with societies are free from problems such as bargaining for fair price and delay in
payment.60 percentages of the farmers sell the milk in marketing societies. For long
time, in the rural area, hotels and tea shops were the major buyers of the milk. Now
also 15 percentages of people sell the milk to these conventional players. The
remaining 15 percent find the market in selling the milk household on a door to door
basis. Many of these people use a combination of one or two markets for selling their
product as their primary assessment reveals.10 percent people use this combined
method. The role of Marketing societies in encouraging this profession in the rural
area is extensively discussed to draw useful patterns in future for optimizing the
strategies aiming at attracting more people and more income for the people who is
engaged with the dairy farming.
The pie chart gives an easy look at the figures.
Place of marketing
Shopes
Milk Societies
Houses
Combined
No. of farmers
16
61
14
9
31
9
16
14
Shopes
Milk Societies
Houses
Combined
61
Method of transportation:A large number of people reach the market on foot as the marketing societies situates
at almost all pockets rural villages, which provides hustle free marketing to a large
section. Very less number of people uses two wheelers and other vehicles for
marketing the milk. Many of them cannot afford the vehicle as the income is nominal
from the dairy farming.
Mode of
transportation
On foot
Vehicle
No.of
farmers
119
11
Percentage
92
8
140
120
100
80
60
No.of farmers
40
20
0
On foot
Vehicle
32
Income from the sales of milk: Major disparity in payment pattern by different agencies procuring the milk
from the farmers was not noticed in the rural area of the District.
Amount spent on milking the cow.
Most of the villagers use traditional methods for milking the cows. The villagers who
appoint labourers for milking their cows are less than 15 percentage. An average cost
of rupees 40 is generally spent for milking the cow a day
Periodicity of payment:The payment of the labour charge is either daily or weekly after getting the sale
proceeds of the milk.
Other related products:The other related products of milk are curd,ghee,butter milk and fertilisers
Income from other products:Majority income from come from milk and another major share is contributed by the
fertilsers generate. An verage of Rs.45 is the share of income from a cow per day
which is a considerable amount of income as far as villagers are concerned. Fertilizer
generated is biologically good and it protects soil and atmosphere from pollution.
Use of labour and expenditure:Labour appointed for cattle farming in Malappuram district by the villagers come
around 10 percentage. Most of the cattle farming activities are performed by the
villagers themselves. The expenditure incurred for appointing the labour for cattle
farming come around Rs 100 a day per cow.
Feed for cattle:An average of Rs.120 rupees is required for feeding a cow per day. Fodders like green
grass, oilcake and fodders available in the markets are given to cows. The biggest
problem faced by the villagers is the increase in the price of fodders and non
availability of green grass.
Expenditure for the farm:Expenditure for maintaining a cattle farm with 2 cows come around Rs.75000. this is
the initial amount for starting a farm including cost of the cows and cattle farm made
of concrete structre.
33
Total income:Income generated from an average farm a day Rs.250 including milk and milk
products
Profit:Profit per cow comes Rs.70 per cow and this is not sufficient for an average family to
maintain the cattle farm
Technical assistance:Technical assistance is available from government and other NGOs for cattle farming
at free cost. Veterinary hospitals hve bee set up by the Government in almost all
panchayath in the district. Technical staff and service of veterinary doctors are
available to the dairy farmers.
Nature of assistance:Villagers engaged in the dairy farming get all types of technical assistance from the
government. Banks provide financial assistance to the dairy farmers at subsidized
interest. Kudumasree units in the district have recently started dairy farming on a cooperative effort by taking loans from the banks. The state Government and local
Governments have schemes to support the villagers whoa ready to start dairy farming
in the district.
Problems faced by the farmers in dairy faring
Financial problems
The banks lending money to the villagers engaged in dairy farming charge high rate
of interest on their advances. About 60 percentages of the villagers who take loan
from the banks are of this opinion.
Most of the banks in the district do not have any specific schemes to lend money to
the dairy farmers. Lack of adequate security for taking loan from the banks is another
problem. Moreover the period of loan allowed by the banks to the villagers is too
short. Majority villagers find financial difficulties in mobilizing capital of their own to
do dairy farming.
Profit generated from dairy farming is not promising to attract villagers to dairy
farming. Some of the villagers take up this work as hobby.
Marketing problems
Good demand exists in the market for dairy products. As such villagers do not face
any much problem in marketing the milk and milk products. More than 90 percentage
34
of the people in Malappuram use milk in their daily food habit. So villagers engaged
in dairy farming do not have any much problems in marketing their products.
Many milk marketing co-operative societies have been set up in the district to collect
the milk from the villagers almost all centers of the district. MILMA a Kerala state
Government agency has been set up to help the dairy farmers to market their products.
There are many co-operative societies started in the district to collect the products of
the dairy farmers on a localized basis. The milk collected by these societies is taken to
the district centres of MILMA and from where it is processed for selling. MILMA
market the dairy products through their distribution centres allover the state. MILMA
has many distribution centres in the state either as direct retail outlet or franchisees.
This is an important advantage to the dairy farmers as their products have good
demand in the market.
FINDINGS
Animal husbandry activities play a crucial role in socio-economic transformation of rural
areas especially in generating employment and income to weaker sections of the population.
The preservation and development of the cattle wealth and poultry are area also significant to
production of major livestock product of nutritional standard. Generally rearing of cattle
farming is the allied occupation of agricultural workers in the district. The animal power also
constitutes the principal source of manure for agriculture.
About eleven block level extension officers and dairy farm instructors are working in the
district office of Malappuram. There are about 135 co-operative milk societies. They collect
and distribute about 48 lakh liters of milk annually. There is only one quality control centre at
the district level. Dairy development department provides assistance to the societies for
building, furniture and equipments. Farmers are given assistance to purchase animals and
construct standard cattle sheds. Fodder grass cultivation is promoted with subsidy. There is
one milk chilling plant at Nilambur under MILMA.
Most of the dairy farmers undertake the farming individually in addition to their main
occupation.
There are only two cows on an average in a family in the district and they are maintained as a
supplementary activity.
Majority dairy farmers follow the practice of dairy farming as a permanent practice
Majority dairy farmers follow the dairy farming as incidental job.
Villagers engaged in dairy farming find the finance from their own sources. They need fund
for purchasing cattle, constructing cattle shed, amount for fodder etc.
35
They find the source of income for these purposes by their own and some villagers find
through banks and others.
Quantity of milk obtained by villagers varies depends up on the variety of cattle. The
villagers used to sell their products in the local market through co-operative societies and by
distributing through shops and neighboring households. Usually no problem is faced by them
in marketing the milk and milk products. Good demand for milk and milk products is an
advantage to the villagers in marketing. The milk co-operative societies collect as much milk
as collected by the villagers reduces the problems of marketing to a greater extend. The
Kerala state level formed milk marketing co-operative society called MILMA has started lots
of milk collection centres allover the district. These collection centres are operated by
MILMA directly at various centres. Some collection centres are organized by the villagers by
their own efforts by forming locally bases co-operative societies. This, of course, avoids the
problems in the marketing the milk and milk products.
Finance is said to be the life blood of any activity especially in cattle farming. Villagers used
to find out the source of income by their own individual efforts and some take the advantage
of bank finance. The price they get from marketing the dairy products is comparatively good
and no much complaint in the matter is noticed. The profit made out of cattle farming
contributes a small source of the total income generated in the family. Some villagers get an
average profit from cattle farming and the remaining do not make any profit and a few suffers
a loss from the business. There is no support from the authorities and society to compensate
the loss suffered by the villagers who are engaged in cattle farming.
RECOMMENDATIONS
1. Every household should take individual initiative in dairy faming.
2. The local Governments and state Government should encourage the villagers in dairy
farming.
3. More co-operative societies should be started in the district for collecting and
processing milk.
4. Bank should be ready for providing financial assistance as subsidized loan to the
villagers who are engaged in dairy farming.
5. Motivation and other encouragements should be provided to the villagers to start dairy
farming.
6. Award should be instituted to the best dairy farmers in the district.
36
CONCLUSION
Animal husbandry is said to be an ancient practice of human being from time immemorial.
People used to maintain cattle farming as a practice not only for profit making but for mental
satisfaction. But the practice of dairy farming is limited in few households as people find it
unprofitable. Moreover the cost incurred for dairy farming and lack of availability of labours
also prevent the villagers of Malappuram district from entering in to the field of dairy
farming. But the practice of dairy farming should be encouraged in each house holds as it
may add additional revenue to the income in the family and it is highly nutritious of including
milk and milk products in the food habits of the people. My study aimed to understand the
actual financing and marketing practices followed by the villagers of Malappuram district
who are engaged in dairy farming. It is concluded that villagers do not face much marketing
problems in dairy farming. But dairy farming is generally unprofitable. Majority villagers
used to withdraw from this sector because of the efforts they have to take for dairy farming
and the unprofitable nature of the dairy farming.
37
QUESTIONNAIRE/SCHEDULE
A study on the financing and marketing practices of villagers engaged Dairy
Farming in Malappuram District.
1.
2.
3.
4.
5.
6.
Name of farmer
Nature of ownership of farm:Number of animals/cattle in the farm
Of these, how many give you milk?
How long you maintain the farm
What is your main occupation
7.
8.
9.
10.
11.
Breed of animal
Place of purchase of cattle
Type of the cattle shed.
Cost of construction of the shed
What is the main source of income for your
Maintaining the cattle farm?
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
………………………………………………..
Single/Joint
-------------------------------……….years
Business/Employment/Agriculture/
Farming/ Others (specify)
Natural/Foreign breed/Mixed
local market/Agents/others
Concrete/Tiled/Thatched/No shed
Rs-----------------
Own fund/bank loan/
govt. aid/others(specify)
Production of milk from all animals per day
------- liters
Quantity of milk marketed per day in liters
------------liters
How do you market milk?
Shops/house to house/societies
Distance to market
------------- Kms
Mode of transportation used
vehicle/on foot
Total income from milk per day
Rs -----------Method adopted for milking
manual/machine oriented
Cost incurred for milking per cow per day
Rs -----------Periodicity of payment from marketing
daily/weekly/monthly
No. of labours in the farm
-----------Labour charge per month
Rs -------Nature of feeding the cattle
green fodder/Dry fodder
/Concentrator/Compound
Feeding cost per day per cattle
Rs-------Source of breeding
Natural/Veterinary
Milk products other than milk
Butter milk/Curd/Butter/Fertilizer
How much income you get from other milk products? --------------------Amount of profit from dairy farming in a year
Rs--------------Please explain the financial problems in dairy farming
Explain the marketing problems, if any
Prof. CK Hassan, Principal investigator
38
Annexure III
UNIVERSITY GRANTS COMMISSION
BAHADUR SHAH ZAFAR MARG
NEW DELHI – 11000
ANNUAL REPORT OF THE WORK DONE ON THE MINOR RESEARCH
PROJECT
1- Project report No
:
Final
2- U G C Reference No
:
MRP [H]-1251/10-11/ KLCA
046/UGC-SWRO
3- Period of Report
:
5th March, 2011 to 4th March, 2013
4- Title of Project
:
“A STUDY OF THE FINANCING
AND MARKETING PRACTICES OF
VILLAGERS ENGAGED IN
DAIRY FARMING IN
MALAPPURAM DISTRICT”.
5- [a] Name of the Principal
investigator
:
Prof.C. K. HASSAN
:
Department of Commerce,
M E S Keveeyam college,
Valanchery, Malappuram
UNIVERSITY OF CALICUT
:
5th March, 2011
[b]Department and University
where work has progressed
6- Effective date of starting the
project
7- Grant approved and expenditure incurred during the period of the report
[a] Total amount approved
:
Rs: 80,000
[b] Total expenditure
:
Rs: 80,000
[c] Report of the work done
:
Report attached
[1]Brief objective of the project:
1. To study the present position of dairy farming in Malappuram district.
2. To study the marketing practices of villagers engaged in dairy farming in the district.
39
3. To analyse the financial issues with regard to the dairy farming in the district.
4. To understand the availability of resources to the villagers in the matter of dairy farming
5. To analyse the marketing problems faced by them in general.
6. To suggest remedies for the problems of the artisans of the district.
[2]Work done so far and results achieved and publications, if any, resulting from the work:
a- Collected data regarding the financing and marketing practices of the villagers
engaged in dairy farming in the district.
b- Analyzed the financial issues faced by the villagers of the district
c- Understood the various marketing practices implemented by the villagers.
d- Analysed the problems faced by the dairy farmers in the production of milk and
milk products.
e- Organized seminars and meetings of the dairy farmers to familiarize the difficulties
faced by them in production, marketing and financing of milk and milk products
in the district.
3- Has the progress been according to original plan of work and towards achieving the
objective? If not, state reason
:
YES
4- Please indicate the difficulties, if any, experienced in implementing the
project
:
No difficulties
5- Any other information
:
Signature of the
Principal investigator
No
Dr. K HUSSAIN
Principal
40
ANNEXURE-1X
UNIVERSITY GRANTS COMMISSION
BAHADUR SHAH ZAFAR MARG
NEW DELHI- 110002
INFORMATION AT THE TIME OF SENDING THE FINAL REPORT OF THE WORK
DONE ON THE PROJECT.
1. NAME AND ADDRESS OF
THE PRINCIPAL I INVESTIGATOR:
Prof.C.K. HASSAN,
ASSOCIATE PROFESSOR ,
DEPT. OF COMMERCE,
MES KEVEEYAM COLLEGE,
VALANCHERY,
P O. VALANCHERY,
MALAPPURAM DISTRICT
2. NAME AND ADDRESS OF THE
INSTITUTION:
MES KEVEEYAM COLLEGE,
VALANCHERY,
PO VALANCHERY,
MALAPPURAM DISTRICT
3. UGC APPROVAL AND DATE:
MRP [H]-1251/10-11/ KLCA
046/UGC-SWRO Dated 22nd Dec,2010
4. DATE OF IMPLEMENTATION:
5th March, 2011
5. TENURE OF THE PROJECT:
2 YEARS
6. TOTAL GRANT ALLOCATED:
RS 80,000
7. TOTAL GRANT RECEIVED:
RS 75,000
8. FINAL EXPENDITURE:
RS 80,200
9. TITLE OF THE PROJECT:
“A STUDY OF THE FINANCING
AND MARKETING PRACTICES OF
VILLAGERS ENGAGED IN
DAIRY FARMING IN
MALAPPURAM DISTRICT”.
10. OBJECTIVES OF THE PROJECT
1. To study the present position of dairy farming in Malappuram district.
2. To study the marketing practices of villagers engaged in dairy farming in the district.
41
3. To analyze the financial issues with regard to the dairy farming in the district.
4. To understand the availability of resources to the villagers in the matter of dairy farming
5. To analyze the marketing problems faced by them in general.
6. To suggest remedies for the problems of the artisans of the district.
11. WHETHER OBJECTIVES WERE
ACHIEVED:
Yes, Details enclosed
12. ACHIEVEMENTS FROM THE PROJECT:
1. analyzed the financing and marketing practices of the villagers engaged in dairy
farming in Malappuram district
2. understood the marketing practices followed by the villagers
3. Studied the various marketing practices implemented by the
dairy farmers
4. Analyzed the financial issues of the dairy farmers in the district.
5. The study helped the government and NGOs for making further studies in
connected issues
13. SUMMARY OF THE FINDINGS:
Report enclosed
14. CONTRIBUTION TO THE SOCIETY:
Milk and milk products are very important in the food habit of the people all over the world.
Self employment can be generated by dairy farming practices. If proper motivation is
provided more and more villagers can be attracted to dairy farming. Dairy farming can be
undertaken as supplementary economic activity of the villagers. The study will be benefitted
to the villagers, other people and authorities to rectify the issues that will be incurred in
connection with the financing and marketing practices of the villagers who are engaged in
dairy farming in Malappuram district.
15. WHETHER ANY Ph.D ENROLLED/ PRODUCED
OUT OF THE PROJECT
NO
16. NO. OF PUBLICATIONS OUT OF THE PROJECT
NIL
C.K. HASSAN
Principal Investigator
Dr. K HUSSAIN
Principal
42