Abstract: Dairy farming in Muzaffarpur District, Bihar, is pivotal to rural livelihoods but faces significant risks undermining sustainability. This study evaluates agribusiness risk management by analyzing socio-economic profiles, economic viability, marketing challenges, and constraints in dairy farming. A mixed-methods approach was employed, combining primary data from 100 farmers in Mushahari Block (stratified sampling) with secondary sources. Descriptive statistics, Garrett Ranking, and marketing efficiency metrics were used for analysis. Key findings indicate 54% of farmers are smallholders (1–2 cattle), predominantly middle-aged males (50%) in nuclear families (85%), with 41% illiteracy. Marketing Channel 3 (Producer–Cooperative–Milkman– Consumer), preferred by 70% of respondents, showed the lowest efficiency (1.05) due to high costs (₹16/liter) and price spreads (₹23/liter). Critical constraints include low milk prices (Garrett score: 73), delayed payments (72), poor animal genetics (70), and lack of chilling infrastructure (65). The study advocates for cold chain development, expanded cooperative networks, mobile veterinary services, and farmer training in value addition. Policy interventions to enhance institutional support, digital market linkages, and risk mitigation tools are essential to improve resilience, profitability, and sustainability in Muzaffarpur’s dairy sector. This research contributes actionable insights for stakeholders to address systemic challenges and strengthen dairy agribusiness in eastern India.
Keywords: Agribusiness Risk Management, Dairy Farming, Socio-Economic Profiles, Marketing Efficiency and Policy Interventions
Author: Sneha Kumari and Victoria Amit Masih
doi: https://doie.org/10.10346/AE.2025924770
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