An Investigation into Dairy co-operatives in the Batticaloa District
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Date
2001-11-16
Authors
Jeyanantham, V.
Gunawardene, V. K.
Journal Title
Journal ISSN
Volume Title
Publisher
University of Peradeniya, Peradeniya, Sri Lanka
Abstract
One of the first priorities in a developing dairy industry is a stable, organized market
that gives adequate returns to the farmer. The factor most likely to increase milk production
steadily is a good selling price relative to the cost of production. The most widely acclaimed
milk marketing schemes in the developing countries are the farmer-owned co-operatives,
especially where dairying is based on small-scale farming as in India. Although collecting milk
from a large number of small-scale farms seems an unorthodox way to run a dairy industry, it
can provide a large volume of milk. The system also provides a valuable regular income to the
poor village people. Experience also shows that the collection of the limited quantities of milk
from the scattered small farms are best handled by co-operatives to improve the income of
farmers and to provide processors and consumers with a regular milk supply.
A data collection survey was carried out during March to November 1999 in the
Batticaloa district to determine the role of the dairy co-operatives in the dairy industry. It was
found that the district had six co-operative societies. Most of them were situated far from the
farms. These co-operatives purchased milk from widely scattered suppliers and sold it to
processing factories. However, the Bt/Livestock Breeders Co-operative Society that is located
in the Batticaloa town was not involved in milk collection even though it had the second
highest membership. The study revealed that the services provided by these co-operatives were
unsatisfactory and the members could not get the services all the time. Also, most members felt
that the extension services provided were inadequate. An important finding was the massive
contribution made by the middlemen to the dairy co-operatives and it appeared to threaten the
future of dairy farming in the Batticaloa district. In two of the co-operative societies, 40% and
72% of members were found to be middlemen, who supplied 64% and 83%, respectively, of
the total milk collected by these societies.
Dairy co-operative members faced several problems such as difficulties in obtair.ing
loans, scarcity of grazing-land, delay of payments, low price for milk and having to travel a
long distance to the collecting centres. They also faced problems of not being informed of
meetings and other activities of the co-operative society. The co-operative society
administration W:4S also confronted with problems. These included difficulties in recovery of
loans, transport of milk, and non co-operation of members and veterinary officers.
This study concludes that the dairy co-operative movement in the Batticaloa district is
unsatisfactory and unsuccessful because of the limited participation of members in the dairy
co-operative activities.
Description
Keywords
Investigation , Dairy , Agricultural , Batticaloa
Citation
Proceedings & abstracts of the Annual Research Sessions 2001,University of Peradeniya, Peradeniya, Sri Lanka,pp.169