The presence of a large number of small milk traders who
purchase milk from producers and sell milk to ultimate consumers indicates
competitiveness at both the producer and retail end of the milk marketing system
in Hai District and nearby urban centres. Apart from competition among
themselves, small milk traders compete with TDL and dairy cooperatives, and the
nearly identical consumer prices charged by small milk traders and dairy
cooperatives in each season in 1990 (Table 4) further suggests competitiveness
in the milk marketing system in Hai District and nearby urban areas.
TDL apparently was a higher cost marketer than small milk
traders and the two dairy cooperatives studied largely owing to diseconomies of
scale. TDL's high marketing costs per litre of milk marketed were associated
with under - utilization of its processing facilities. Whilst most of these
facilities are geared to the production of pasteurized milk to reduce the danger
of disease spread, consumers are traditionally boiling milk before using it.
Production of high value products such as butter and ghee is only undertaken
when milk surplus to pasteurized requirements exists, which, according to TDL
reports, is not common.
The implication is that investments in expensive processing
facilities for pasteurization are unnecessary since it can be achieved at a
lower cost by boiling. Widespread boiling of milk by consumers can further be
encouraged through an education