Economics of Dairy Products in a Experimental Dairy Plant

Abstract

In order to ensure sustainable and economic dairy-based value-added production, it is essential to analyze the costs and Break-Even points. The study was undertaken in the Experimental Dairy Plant, National Dairy Research Institute, Karnal (Haryana) with handling capacity of ten thousand liter per day, to optimize the cost of Dairy products manufactured in the dairy plant. Burfi and Ice-cream are among the most crucial Indian dairy products processed in a dairy plant and widely consumed. Primary and Secondary data were both used to conduct this study. Primary data is supplemented by actual observation and interviewing plant personnel, and Secondary data, i.e., milk inflow, its utilization pattern, and product output, was taken from different plant ledgers. Economic analysis of this dairy product in a dairy plant is necessary to optimize the cost of each component used in manufacturing Burfi and ice cream. The dairy product will keep its presence in the competitive market, and as a result, the consumer will benefit from this optimum price. Therefore, calculated the product cost was in a dairy plant, and the fixed and variable cost was 24.56 and 75.44 percent for Burfi and 34.01 and 65.99 percent for ice cream, respectively. This study shows that the dairy plant has surplus production of 3721.69 kg and 1,02,082.33 cups of 100 ml of output Burfi and Ice-cream respectively, after the break-even point. The study has suggested that the quantity of Burfi and Icecream should be manufactured above recommended Break-Even Point to avoid losses. As a seasonal product, if there is a fluctuation in market demand, products could be shifted to other profitable products.