Abstract:
The paper focuses on Idara-e-Kissan, a vertically integrated
cooperative in the dairy sector, which procures fresh milk, processes it and
uses the profits earned in urban milk product markets to provide
development services to member farmers. The analysis suggests that,
compared to a control group of non-members, the cooperative’s members
had 29% higher net returns per milk animal, 9% more milk buffaloes, 6%
fewer dry buffaloes and they used three times more milk fat-enhancing
cottonseed cake. The members had better access to animal vaccination,
artificial insemination, and visits from livestock extension workers; they
were able to secure more animal treatments per year, and reported greater
satisfaction with service provision. The cooperative’s successes were more
modest in areas where the benefits of inputs and services provided were
more public, e.g. livestock breed improvement and enhancing fodder
productivity, indicating that there is an important role for the government
in supplying public goods such as livestock/agriculture R&D.
