Author(s):

Y Bhavya, Dr. Suresh Rathod, Dr. K Sarjan Rao, Dr. Nalini Kumari

Abstract: The success of dairying as a form of business depends on profitable milk production which is influenced by various input variables and their judicious use. The research was undertaken at ten commercial dairy units with a minimum number of hundred dairy animals each located in and around Hyderabad city of Telangana state by using a structured interview schedule In the fully automated dairy units the mean herd size (1074), fixed costs (Rs.136497785) and variable costs (Rs.9677180) are higher than in the semi-automated dairy units (331, Rs.60980118 and Rs.55987.3 respectively). For every 100 units of herd, fully automated units are using 3 units of labor and in semi-automated dairy units it was 8.2 units which was 2.7 times higher and costs incurred per unit herd in semi-automated on labor are also 2.7 times higher. Cobb-Douglas production function indicated that the independent variables such as capital cost (3.406**) and medicine cost (2.704**) have positively and significantly contributed to value of milk output in the automated dairy units. When there is 1% increase in the capital cost and medicine and veterinary costs there is 3.4% and 2.7% increase in the value of the milk output whereas feed cost (-1.196*) and operational cost (-1.984*) have negatively and significantly contributed to the value of milk output.

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