Original Research Paper

Durgaben Ghanchi

TO STUDY THE FINANCIAL PERFORMANCE OF SELECTED DAIRY SECTOR OF GUJARAT

ABSTRACT

India has emerged today as the largest producer of milk in the world. This has been achieved through “operation flood” one of the world's largest dairy development programmes, which created strong linkages between the rural producers and urban consumers. The Indian dairy sector contributes a large share in the agriculture at Gross Domestic Product (GDP). The present study deals with performance appraisal of co-operative dairy industry of Gujarat State which are engaged in processing and selling of milk and milk products. For these purpose nine leading co-operative dairy units are selected which are associated with GCMMF. For analyzing the performance of dairy units of Gujarat state, the data related to all the nine district co-operative dairy units for the past ten years viz. 2009-10 to 2019-20 have been collected.

KEYWORDS: Financial, Dairy, Gujarat, Co-operative.

1. INTRODUCTION:Dairy Industry of India:India had tremendous milk production in 40 years and has become the world's largest milk-producing nation with a gross output of 84.6 million tons in 2001. Although the Indian dairy industry has gained this strength of a producer-owned and commercially operated co-operative system, most dairy farmers are unedu-cated and run small, marginal operations and for many farmers, selling milk is their only source of income. More than 10 million dairy farmers belong to 96,000 local dairy co-operatives, which sell their products to one of the 170 milk pro-ducers' co-operative unions, which in turn is supported by 15 state co-operative milk marketing federations.

Dairy has been a rural cottage industry in India for years. By the end of the 19th century, semi-commercial dairies began with the establishment of military dairy farms and cooperative milk unions across the country. The industry has pro-gressed rapidly since independence. Since then a large number of modern milk and milk producing factories have been set up. Organized dairies in India have been successfully engaged in regular commercial production of pasteurized bot-tled milk for Indian dairy products.

Dairy Sector in Gujarat:The dairy industry in the state of Gujarat is currently well established and is taken as a model for imitation in other states of the country. The dairy sector is of paramount importance in the state as it is a business that helps generate addi-tional alternative income and employment for the poor, rural farmers. Dairy breeders feed and nourish dairy cattle through the crop residues and agricultural products available to them. However, many districts in the state still lack fodder and food due to poor and inadequate irrigation facilities in those regions.

Gujarat dairy co-operatives have a 3-tier structure termed as ANAND PAT-TERN Co-operatives. The milk is collected at village level co-operative societ-ies and processed by district unions themselves. While district unions them-selves market the liquid milk, the marketing of surplus milk and milk-products is undertaken by state level federation viz. Gujarat Co-operative Milk Marketing Federation Limited, Anand (GCMMF). The dairy development on co-operative basis was obviously a great success in north and central regions of the state so much so that it caught people's imagination whereas in Kachchh and the district in the Saurashtra region it lagged behind marginally.

GCMMF has 12 district unions as members. During 1996-97 GCMMF member unions procured on an average 38.2 lakh kgs. milk per day as compared to 30.6 lakh kgs. in 1995-96. During 1997-98, GCMMF sales touched to Rs. 1884 crores. GCMMF markets milk products under brand names like “AMUL”, “SAGAR” and “SUGAM” These brand names are household names throughout India. Today GCMMF has around 200000 retail outlets in India.

2. REVIEW OF LITERATURE:Chawla (2003), the article mainly focuses on the policies needed to improve India's global dairy situation. National agricultural policy, including technical, environmental and economic stability; Rules for import and mandatory export inspection were discussed. The following policy requirements for the global situ-ation were also discussed: Establishment of a high-powered monitoring and steering task force, legislation on centralized prevention of infectious and conta-gious diseases in animal bills, mandatory HACCP for all export oriented dairy units, reorganization of integrated and enforcement machinery and Making it

accountable, incentives for pure milk production, subsidies for technological growth and diversification, tight and tat policy etc.

Chaudhary (2003) gave a brief overview of the current scenario of milk produc-tion and the policies affecting milk producers in this country. Policies for import and export of milk and milk products as well as taxation of these commodities were also discussed soon.

Co-operatives (2003) in a news item titled 'All Village Cooperatives Make Prof-its' said that the Dairy Development Minister thanked the Tamil Nadu Co-operative Milk Producers Federation for its effective action as it has 7000 village co-operative societies and 15 of them are in 17 states of Tamil Nadu. The district co-operative union is making a profit. He said the district unions, which had ear-lier delayed payment of purchase dues to farmers due to financial crisis, are now in a hurry to make the payment.

G. Chandrasekar (2006), entitled 'Milk Production Produces 100 Million Tons', writes that the increase in milk production in India is due to increased demand for value-added milk products towards consumers and comprehensive dairy devel-opment programs. Supply side. He pointed out that despite India being the larg-est producer of milk, the country's dairy sector integration with the global econ-omy is relatively low.

GP Dang et al (2004), stated that the research analyzes the problems and future prospects of the Indian dairy industry. Lack of scientific practices in milk, inade-quate availability of fodder in all asons, lack of veterinary health services and lack of quality dairy animals are believed to be the reasons for low milk produc-tion. It was said that India has the potential to become a leading player in milk and milk products due to its location advantage between milk-deficient countries in Asia and Africa.

Dr. Harish Desai (2006) holds a Ph.D. On "Financial Performance Evaluation of Selected District Dairy Cooperatives in Gujarat" in May 2007. Under this study, he has made a small effort to assess the financial health of selected co-operative dairy units by applying the date, CCO UNTING tools and techniques of nine dis-trict co-operative dairy unions in the state of Gujarat. For this purpose he has used many accounting tools and techniques such as general size statement, ratio analysis, etc. He has also used some statistical techniques, such as, meaning, regression, F-test, T-test, diagram and graphic presentation of data.

PA Koli (2003) has conducted a case study on the role of cooperatives in reduc-ing poverty in the context of Varana Milk Co-operative Union, Maharashtra and provides farmers with regular income, subsidized animal feed, artificial insemi-nation, animal health services, dairy building, construction of milk testers. For subsidies and training on scientific food and breeding that ensures income and employment in rural areas. The study emphasized the fact that it was the input ser-vices provided by the union that ensured the flow of quality milk, not the high price paid by the union.

3. RESEARCH METHODOLOGY:Research Objective:1. To study the growth and development of Dairy Industry in Gujarat.

2. To study the financial performance of selected District Milk Producing Co-operative Dairy in Gujarat.

Copyright© 2021, IEASRJ. This open-access article is published under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License which permits Share (copy and redistribute the material in any medium or format) and Adapt (remix, transform, and build upon the material) under the Attribution-NonCommercial terms.

6International Educational Applied Scientific Research Journal (IEASRJ)

Commerce Volume : 6 ¦ Issue : 1 ¦ Jan 2021 ¦ e-ISSN : 2456-5040

Original Research Paper

7 International Educational Applied Scientific Research Journal (IEASRJ)

Sample Population:Below mentioned 4 Co-operative dairy has been taken under study:

1. Sabarkantha Dairy

2. Dudhsagar Dairy

3. Madhur Dairy

4. Banaskantha Dairy

4. DATA ANALYSIS:

CONCLUSION:Co-operative dairies cannot procure milk at a lower price to increase profit mar-gin because the main aim of co-operative milk producers' union is to protect the milk producers from the exploitation by private dairies which were in the role of middlemen between producers and consumers of milk. Milk producers had joined hands and formed co-operative dairies to protect themselves from exploi-tation by private dairies giving very less procurement price to the milk producers and changing higher prices from the consumers of milk.

Co-operatives dairies also safe guard the interest of milk consumers besides milk producers so they cannot increase selling price suddenly to increase profit mar-gin. Today's scenario of competition by private dairies will also not allow co-operative dairies to do so. Today co-operative dairies are functioning under monopolistic competition condition so they can succeed more by product differ-entiation (better quality, better packing etc.) rather than change in price.

Thus the scope for profitability for the co-operative milk dairies is limited. Coop-erative milk dairies can increase profitability by cost reduction and cost control and by increase in volume of sales by offering better quality because increase in

sales volume will encourage operating of storing and processing plants to work at their full or near full capacity, decreasing the proportion of unutilized or spare capacity and thereby bringing about reduction in per unit fixed cost.

REFERENCES:I. Benhur Dayakar Rao and Singh, C.B., “ Impact of Cooperative on Dairy Development

in Andhra Pradesh”, Indian Cooperative Review1', Vol. XXI, No. 2, Oct-1993, Pp. 175-181.

II. Business Standard (2003), “NDDB Gears up for Quality Milk”, Co-ophorizon, Vol.3, No.5, March 15, p. 1

III. Chandrasekar, G. (2006), “Milk Output Poised to Top 100m Tonnes”,Business Line, December, p.3

IV. Chawla, N. K. (2003), “Policy Imperative for Building India's Global Dairy Position”, Indian Dairyman, Vol. 55, No. 3, pp. 144-147

V. Dang, G. P., Sapra, KM. Neeta and Kaur, KM. Gursharan (2004), “Indian Dairy Indus-try - Changing Scenario - Its Problems and Future Prospects”, Agricultural Situation in India, February, pp. 712-714

VI. Koli, P. A. (2003), “Cooperative and Reduction of Poverty: A Case study of Warana Milk Cooperative Union”,Indian Cooperative Review, October, pp. 121-132.

VII. Patel, S.M. and Pandey, M.K, “ Economic Impacts of Karia District Cooperative Milk Producer's Union (Amul Dairy) in Rural Areas of Kaira District:, Institute of Coopera-tive Management, Ahemdabad, 1976, p.8

VIII. Rej, Debasis and Sur, Debasish (2001), “Profitability Analysis of Indian Food Products Industry: A Case Study of Cadbury India Ltd.”, The Management Accountant, Vol. 36, No. 11, November, pp. 845-849

IX. Sareen, Shashi (2002), Export Certification in Dairy Sector: Moving Towards Self-Reliance”, Indian Dairyman, Vol. 54, No. 2, pp. 125-130.

X. Selvarani, V. (2004), “A Study and Comparative Analysis of Cooperative Milk Produc-ers’ Union in Tiruchirappalli and Coimbatore District”, Unpublished Ph. D. Thesis, Tiruchirappalli, Bharathidasan University.

XI. Srinivasan K., Deo, Malabika; et.al. (2011), “Financial Performance of Foreign Direct Invested Pharmaceutical Units in India”

Volume : 6 ¦ Issue : 1 ¦ Jan 2021 ¦ e-ISSN : 2456-5040

Revenue

VariableSabarkantha

DairyDudhsagar

DairyMadhur

DairyBanaskantha

Dairy

Mean 13812790227 23303167273 1502972948 21721885596

Median 11792213840 20278526480 1482221145 13787021302

Standard Deviation

7952278477 12360954479 621429070 16621541491

Range 24024603466 34110467791 1830093724 48443085719

Minimum 4994754053 8696051853 738683878 5974268884

Maximum 29019357519 42806519644 2568777602 54417354603

Sum 151940692497 256334840008 16532702431 238940741561

Count 11 11 11 11

Net Profit

Variable Sabarkantha Dairy

Dudhsagar Dairy

Madhur Dairy

Banaskantha Dairy

Mean 65007073.18 75899389 6207947.182 119797930.8

Median 53528008 62191803 5900110 93557816

Standard Deviation

38478164.33 43000110.81 3454317.584 69179451.07

Range 98511029 101012995 9895244 189910953

Minimum 26746048 30334184 2293450 36828286

Maximum 125257077 131347179 12188694 226739239

Sum 715077805 834893279 68287419 1317777239

Count 11 11 11 11

Processing Expense

VariableSabarkantha

DairyDudhsagar

DairyMadhur

DairyBanaskantha

Dairy

Mean 215553689 124147365.6 8915593 463743802.7

Median 250877024 18507643 10775864 336056897

Standard Deviation

109530190.6 161450902.5 4708687.349 302302380.5

Range 309080665 420838434 12578755 861363565

Minimum 86977153 4417639 1586159 119192244

Maximum 396057818 425256073 14164914 980555809

Sum 2371090579 1365621022 98071523 5101181830

Count 11 11 11 11