Dairy Farm Sector: SWOT-Analysis

(Strengths, weaknesses, opportunities & Threats)

General:
• Rural Based activity.
• Involve small households, rearing one or two cows/buffaloes.
• Income-generating activity.
• Source of mass employment in rural areas.

Strengths:
• Dairy farming helps directly in increasing crop production by making available draught
power, manure and cash income on day- today basis.
• Provide employment to rural population mainly women
• Regular income to the farmer.
• Crop residues and by-products fed to the cattle form the basis of “grain-saving” dairying,
appropriate to the mixed farming system.
• Buffalo is India’s milking machine, accounting for more than half of the country’s milk
production.
• Whitening property of buffalo milk make it more suitable for manufacture of some dairy
products and its acceptance as fluid milk is high.
• Cooperative dairying has increased milk production.
• Additional income improves the quality of life in rural areas.

Weakness:
• Feed availability to cattle throughout the year is not adequate.
• Artificial insemination service for breeding better cattle has limited coverage
• Animal health care activities are not adequate.
• Limited marketing support handicaps rural milk producers seriously.
• Dairy producers in remote areas are neglected.
• Limited investment or delay in the availability of funds in setting up or expansion of
milk procurement.
• Poor infrastructure in many areas for transporting rurally-produced milk to major
processing centers.
• Farmers access to training in modern cattle management is limited.

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 Opportunities:
• Cost of milk production in India is low.
-more opportunities for export of quality milk products at competitive price in international
market.
• Scope exists for higher milk yield through
-better use of crop residues and other feeds
- upgrading cattle.
-improving availability of animal health care facilities
• Better returns because of increased awareness in consumers about Quality.

Threats:

• Competency between organized and un-organized sectors resulting in unhealthy business

practices / lowering values (quality/service/ethics).
• Inadequate Regulatory staff to monitor quality of imported / indigenous products.
• Possibility of importing, substandard or low-priced milk products that can destabilize
dairy sector because of corrupt regulatory staff.
• Natural calamities like floods, drought, diseases that can affect feed to cattle/cattle
population.
• Seasonal fluctuations in milk production

Conclusion:

SWOT analysis, indicate if the strengths and opportunities are understood the
weaknesses and threats can be managed to make Dairy Farm Sector into a profit oriented
business.

Source:
Dairy India 2007
Published by Dairy India Year Book,
A-25, Priyadarshini Vihar,
New Delhi-110092
India
Emali:dairyindia@gmail.com
Ph: +91-11-225543326

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