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Dairying – should we scale up or not ?

In India, dairying is carried out mostly as a subsidiary activity, with farmers using their family as labour and get free food for cattle from common grazing land. Further, he manages a maximum of 5-10 cows and milks twice. These mini scale dairying forms the bulk of Indian dairy output which is 110 million tonnes comes from 70 million farmers. This is in contrast to European or American model, where there are large farms which yields somewhere near 1 million kgs. However, making dairy as an industry will result in price fluctuations and any meltdown in price will quicken bankruptcy. So if Indian dairy has to scale up, it will be better off with 25-30.

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