Pages 2021-4.cdr 6718 Socioeconomic Status and its Associa�on with Economic Mo�va�on among the Dairy Entrepreneurs of Kerala S.R. Shyam Suraj ABSTRACT The study analyzed the socioeconomic variables of the dairy entrepreneurs of Kerala (India) and their rela�onship with economic mo�va�on; specifically, in the three physiographical regions of highland, midland and lowland. Data were collected through survey using structured interview. The results revealed that maximum number of dairy entrepreneurs were male and belonged to elderly group. They were educated mostly up to secondary level and had dairying experience of fewer than 13 years. Largely herd size was between 12-22 animals; and possession of farm assets was weaker than household assets. Majority of the entrepreneurs had gross annual income of below ₹25 lakh from sale of milk and milk products; and local/private sales were more beneficial than co-opera�ve sales. The results showed variance in the socioeconomic variables among the three divisions and hence demands exclusive entrepreneurship development strategies. Regression analysis showed that while milk produc�on and household assets were posi�vely related; experience and sales to dairy coopera�ves were nega�vely related to the economic mo�va�on of the dairy entrepreneurs. Keywords: Dairy Entrepreneurs; Socioeconomic variables; Kerala; lowland; highland; midland; Economic mo�va�on Research Article Journal of Extension Educa�on Vol. 33 No.4, 2021 DOI: h�ps://doi.org/10.26725/JEE.2021.4.33.6718-6730 College of Dairy Science and Technology, Mannuthy, Kerala Received: 13-07-2022; Accepted: 20-01-2023 INTRODUCTION th Kerala state ranks 14 among the milk-producing states of the country; with a share of just 1.5 percent of the total milk produc�on. The annual milk produc�on of the state is undula�ng with a recent reduc�on from 25.48 lakh MT (2018-19) to 25.44 lakh MT (2019-20), along with the per capita availability of milk declining from 200 g/day to 198 g/day during the same period (NDDB, 2021); which is far below the na�onal average of 406 g/day and the RDA of 300 g/day endorsed by ICMR (NIN, 2020). The figures indicate the gap in requirement and availability; which is es�mated to be 34%. The floods in Kerala during 2018 and 2019 affected milk produc�on by loss of ca�le; destruc�on of fodder plots and ca�le sheds; reflected in the decrease in milk procurement by dairy co-opera�ves (GoK, 2019). Also the advent of the COVID-19 pandemic disrupted the 6719 Journal of Extension Educa�on procurement and marke�ng systems; and decelerated the race of the state to a�ain milk self-sufficiency in the subsequent years. A study conducted by the Kerala State Planning Board with the technical consultancy of the Na�onal Council of Applied Economics Research (NCAER) found that if the growth trend in the number of in-milk animals and milk yield con�nues to be the same in the future (business-as- usual scenario), total milk produc�on would decline to 19.13 lakh MT in 2030 from 27.91 lakh MT of 2012-13 (GoK, 2014). Th e ma j o r co n s tra i nts to i n cre a s i n g produc�on, produc�vity and profitability of milk produc�on in the state are increased price of ca�le feed, non-remunera�ve price of milk, high cost of credit, lack of ca�le management skills and green/dry fodder shortage (Sreeram et al., 2018). The key c h a l l e n g e i s t o m a k e t h e s e c t o r remunera�ve. A crucial element to address t h e s e c o n s t r a i n t s i s t o f a c i l i t a t e entrepreneurial ini�a�ve, business linkages and know-how to ensure compe��veness. This requires the transforma�on of small livelihood family dairy farms in Kerala (owning 87.7% of the total ca�le of the state) into highly compe��ve market- oriented small to medium-sized commercial dairy farms. (GoK, 2014). Also another document released by Government of Kerala reiterates this phase shi� to entrepreneurship with encouragement to establish profitable dairy farms. (GoK, 2019). T h e a b o v e a n a l y s i s a n d recommenda�ons on the dairy scenario of Kerala demand appropriate interven�ons in developing entrepreneurship to enhance and manage the milk produc�on gap for the future on one hand; and project dairying as a profitable and venturesome enterprise for employment genera�on on the other. For this, it is important to understand the present socioeconomic status of the dairy entrepreneurs of the state so that policies and plans can be framed to facilitate their growth from the present level to highly commercial entrepreneurs; and promote the entry of fresh dairy entrepreneurs. Further, the economic mo�va�on of the dairy entrepreneurs was studied as it has a p r e d i c � v e c a p a c i t y r e g a r d i n g t h e willingness to become an entrepreneur; a l o n g w i t h t h e r e l a � o n s h i p o f t h e socioeconomic variables to it. METHODOLOGY T h e s t u d y f o l l o w e d a S u r v e y Research Design (non-experimental) using cross-sec�onal survey. It used structured interviews for data collec�on, with the intent of generalizing from a sample to a popula�on (Sivakumar et al., 2017). The respondents were dairy entrepreneurs opera�onally defined as 'a person engaged in dairying ac�vity who has a minimum herd size of 4 crossbred dairy animals, selling 75 6720 percent of the produced milk per day to the market throughout the year and the sold milk is not less than 10 liters per day'. Data was collected from 240 dairy entrepreneurs d u r i n g 2 0 1 9 - 2 0 ; 8 0 e a c h f ro m t h e physiographic divisions of highland, midland and lowland (CESS, 1984) selected randomly from 4 blocks each of three districts. The districts were Wayanad ( h i g h l a n d ) , Er n a k u l a m (m i d l a n d ) a n d Thiruvananthapuram (lowland). The variables studied were gender, age, educa�on, land holding, herd size, possession of assets (household and farm), annual income, experience in dairying, milk produc�on and sales; and economic m o � v a � o n . D i r e c t q u e s � o n i n g a n d structured schedules were used for the measurement of the variables. Economic mo�va�on was opera�onally defined 'as the degree to which a dairy entrepreneur was oriented towards profit maximiza�on in dairy farming and the rela�ve value placed by the entrepreneur on economic ends'. The scale developed by Supe and Singh (1969) was used with adequate modifica�ons. It consisted of six statements (5 posi�ve and 1 nega�ve) with response categories from strongly agree to strongly disagree with scores ranging from 5 and 1 for posi�ve statements and reverse for nega�ve statement. The respondents were classified into three categories using Cumula�ve Square Root of Frequency (CSRF) method (MTC, 2001) for family size, experience, herd details, possession of household and farm assets, annual income, milk produc�on and milk sales. Age was classified in accordance with Na�onal Youth Policy (GoI, 2003). Educa�on was classified as per Indian standard classifica�on of educa�on (GoI, 2014) and land holding based on agriculture census (GoI, 2016). Gender and ownership of assets were expressed using frequency and percentage. The expected frequencies of economic mo�va�on were classified into equal class intervals and the respondents were categorized into low, medium and high using mean and standard devia�on. FINDINGS AND DISCUSSION T h e r e s u l t s o f t h e s t u d y a r e discussed below with added tables and figures followed by descrip�on. Socioeconomic Status and its associa�on with Economic Mo�va�on among the Dairy Entrepreneurs of Kerala 6721 Journal of Extension Educa�on Table 1: Distribu�on of Respondents According to Age, Gender, Educa�on, Family Size and Experience in Dairying Variables Categories Highland (n=80) Midland (n=80) Lowland (n=80) Total (n=240) F % F % F % F % Age Young (Up to 35 years) 8 10.00 6 7.50 7 8.75 21 8.75 Middle (36-50 years) 39 48.75 39 48.75 28 35 106 44.17 Elderly (>50 years ) 33 41.25 35 43.75 45 56.25 113 47.08 Mean 48.93 49.45 50.32 49.57 SD 9.40 9.08 9.87 9.43 Gender Male 64 80.00 63 78.75 52 65.00 179 74.60 Female 16 20.00 17 21.25 28 35.00 61 25.40 Educa�on (Years of study) Illiterate (0) 0 0.00 0 0.00 3 3.75 3 1.25 Primary(1-5) 2 2.50 1 1.25 6 7.50 9 3.75 Upper Primary (6-8) 11 13.50 6 7.50 10 12.50 27 11.25 Secondary (9-10) 32 40.00 26 32.50 28 40.00 86 35.80 Sr. Secondary (11 -12) 19 23.75 17 21.25 10 12.50 46 19.20 Graduate(13-15) 13 16.25 25 31.25 18 22.50 56 23.35 PG and above(>15) 3 3.75 5 6.25 5 6.25 13 5.40 Mean 10.95 12 10.56 11.17 SD 2.73 2.76 3.91 3.23 Family Size Large(>7) 7 8.75 0 0.00 4 5.00 11 4.60 Medium (5-7) 43 53.75 45 56.25 32 40.00 120 50.00 Small (<5) 30 37.50 35 43.75 44 55.00 109 45.40 Mean 5.1 4.6 4.6 4.8 SD 1.84 1.06 1.55 1.53 Experience in dairying (Years) High (> 25) 16 20.00 13 16.25 15 18.75 44 18.30 Medium (13-25) 24 30.00 18 22.50 23 28.75 65 20.10 Low (< 13) 40 50.00 49 61.25 42 52.50 131 54.60 Mean 13.96 12.74 14.31 13.67 SD 10.48 10.23 10.06 10.23 6722 From Table1, it could be seen that most of the respondents belonged to elderly age group of above 50 years; Majority of the dairy entrepreneurs were male;. A higher number of the respondents in the three regions had studied up to secondary level ; There was difference in family size between the three regions, with lowland having majority of small families (55%); while highland and midland having more medium sized families (5-7 members); Majority of the dairy entrepreneurs in the three regions had low experience of below 13 years, which meant that there was increase in new entrants to this sector since last two decades, which is posi�ve. The average land holding was higher in highland, followed by midland and lowland as presented in Table 2. The average opera�onal land holding of Kerala as per Agricultural Census was 0.22 ha (GoI, 2016). Hence it was inferred that the dairy entrepreneurs of the three regions were holding compara�vely more land when matched with the average land holding of the state. A glance at the table shows that a good percentage of entrepreneurs in both highland and midland were having fodder cul�va�on; but the per capita land area was below 1 ha. Though as per NDDB (2016), only 43% of dairy farmers cul�vated fodder; the study showed that a higher percentage of dairy entrepreneurs (81.25%) cul�vated f o d d e r . I t i s u n d e r s t o o d t h a t t h e entrepreneurs recognize the significance of fodder cul�va�on more than dairy farmers. Table 2. Distribu�on of Respondents Based on Landholding, Land Under Fodder and Possession of Cross-Bred Animals Variables Landholding Categories Highland (n=80) Midland (n=80) Lowland (n=80) Total (n=240) F % F % F % % Marginal (< 1 ha) 42 52.50 63 78.75 76 95.00 181 75.30 Small (1-1.99 ha) 18 22.50 14 17.50 4 5.00 36 15.00 Semi Medium (2-3.99ha) 13 16.25 3 3.75 0 0.00 16 6.70 Medium (4-9.99 ha) 7 8.75 0 0.00 0 0.00 7 3.00 Large (> 10 ha) 0 0.00 0 0.00 0 0.00 0 0.00 Mean 1.46 0.56 0.26 0.76 SD 1.65 0.55 0.33 1.14 Socioeconomic Status and its associa�on with Economic Mo�va�on among the Dairy Entrepreneurs of Kerala Land Under Fodder Cross bred animals Variables Categories Highland (n=80) Midland (n=80) Lowland (n=80) Total (n=240) F % F % F % % SD 1.65 0.55 0.33 1.14 No Fodder 2 2.50 17 21.25 26 32.50 45 18.75 Below 1 ha 60 75.00 57 71.25 53 66.25 170 70.85 1 ha to 1.99 ha 13 16.25 4 5.00 1 1.25 18 7.50 2 ha to 3.99 ha 5 6.25 2 2.50 0 0 7 2.90 Above 4 ha 0 0 0 0 0 0 0 0.00 Mean 0.71 0.39 0.19 0.46 SD 0.58 0.42 0.25 0.51 High(>22) 16 20.00 20 25.00 10 12.50 46 19.20 Medium ( 1 2 -22) 35 43.75 31 38.75 32 40.00 98 40.80 Low (<12) 29 36.25 29 36.25 38 47.50 96 40.00 Mean 17.69 18.75 16.39 17.61 SD 15.68 12.16 20.81 16.56 6723 Journal of Extension Educa�on Crossbred Animals Kerala has the highest crossbred ca�le popula�on; where 94% of the ca�le are crossbred (GoI, 2020). Majority of the herd strength as per the study was medium (12-22 animals) in highland and midland region; while majority was low (47.50%) in lowland with a stock below 12 animals. The average number of crossbred animals in the three regions did not have any noteworthy difference with the mean of 16-18 animals. The number of indigenous animals was very low and among all the respondents only 12 had kept them. And 42 respondents had kept buffalo; but mostly for the purpose of meat than for milk. Possession of Assets Majority of the entrepreneurs had owned television, mobiles, refrigerator and two-wheelers as household assets. The possession of each and every item was compara�vely higher in midland and lower in lowland. Washing machine and four- wheelers were also possessed by nearly 40% of the entrepreneurs; with their numbers rela�vely less in lowland. Data presented in Fig 1 shows that more number of entrepreneurs of the highland used farm 6724 equipment; while lowland numbers were the least. About 68.80% of highland and 58.80% of lowland entrepreneurs used milking machine; while it was only 19% in l o w l a n d , w h e r e t h e r e w a s m o r e dependency on milkers. Rubber mat was p o s s e s s e d b y a l a r g e r n u m b e r o f entrepreneurs in the three regions. From the figure, it is clear that the highland entrepreneurs adopted technology at a faster rate and the lowland entrepreneurs were mostly tradi�onal. The midland dairy entrepreneurs were in the middle of them. Fig 1: Possession of Dairy Farm Assets Milk Produc�on Per Household Majority of the dairy entrepreneurs produced less than 200 litres per day (above 65% in all regions) on their farms, while few w e re p ro d u c i n g b e t w e e n 2 0 0 - 1 2 0 0 litres/day. Only one entrepreneur each in highland and lowland had produc�on above 1200 litres as seen in Table 3. The average produc�on was lowest in lowland owing to the less produc�ve animals and lag in technology adop�on by the entrepreneurs in coastal areas. Sreeram et al (2018) in their study noted average milk produc�on of 13.1 litres per day and Prasad et al (2017) found the milk produc�on range between 10-15 litres per day among the dairy farmers of Kerala. The milk produc�on was higher among dairy entrepreneurs and in the present study the average per day was 116.90 litres. Annual Income from Milk and Milk Product Sales The gross annual income from the sale of milk and milk products is divulged in the table. Majority of the entrepreneurs belonged to the low income category of below The ₹25 lakh in the three regions. number of entrepreneurs in each category Socioeconomic Status and its associa�on with Economic Mo�va�on among the Dairy Entrepreneurs of Kerala 6725 Journal of Extension Educa�on was comparable in the three regions. The net income received depended on the cost of produc�on; and an earlier survey by Ke r a l a C o o p e r a � v e M i l k M a r ke � n g Federa�on pegged ₹ 28 as the average produc�on cost per litre of milk when the price paid to coopera�ve member was ₹30- 32 (NDDB, 2016). It was apparent that the profit margins were less in dairying and gain to the entrepreneur was through local sales, where a be�er price was received than coopera�ves. Also, the income was directly propor�onal to the herd size of the entrepreneur and the produc�vity of his crossbred animals. Table 3. Distribu�on of Households Based on Milk Produc�on and Annual Income from Milk Sales Va riables Categories Highland (n=80) Midland (n=80) Lowland (n=80) Total (n=240) F % F % F % F Milk Produc�on (Litres) High(> 1200) 1 1.25 0 0.00 1 1.25 2 Medium (200-1200) 10 12.50 12 15.00 5 6.25 27 Low (< 200) 69 86.25 68 85.00 74 92.50 211 Mean 123.55 128.50 98.65 116.90 SD 158.53 113.88 180.97 153.59 Annual Income from Milk sales ( in Lakh) High (>₹75 lakh) 1 1.25 1 1.25 1 1.25 3 Medium (₹25-₹75 lakh) 12 15.00 20 25.00 9 11.25 41 Low (<₹25 lakh) 67 83.75 59 73.75 70 87.5 196 Mean 16.50 19.56 13.93 16.66 SD 21.71 17.66 23.22 21.03 % 0.85 11.25 87.90 1.25 17.10 81.65 Milk Sales to Dairy Coopera�ves Similar to produc�on, the sales to dairy coopera�ves were also following the trend where majority entrepreneurs were pouring less than 200 litres of milk to dairy coopera�ves in the three regions. The average sales were higher in highland; while no marked difference in midland and lowland. There was no notable difference in the average price paid by coopera�ves in 6726 the three regions; as the same price chart was followed by the three coopera�ve milk unions of Kerala. Local Sales of Milk T h e h i g h e s t p e r c e n t a g e o f entrepreneurs in highland (82.50%) did not have local sales; as the region lacked market due to surplus local milk produc�on. A smaller number of entrepreneurs (17.50%) sold milk below 30 litres locally in the highland region. But local sales were compara�vely higher in midland and lowland region. The average local sales were highest in midland region; evident from the fact that the entrepreneur travels more distance to sell milk (2.16 km) and gains higher price (₹50) when compared with the other regions. The gains in dairying for the entrepreneur were mainly through local sales as there was an average difference of ₹11.23 between the price received from coopera�ves and local sales. Entrepreneurs selling milk to Private agencies Apart from coopera�ves and local sales, dairy entrepreneurs also sold milk to private dairies, vendors, milkers and to other e n t r e p r e n e u r s . T h e n u m b e r o f entrepreneurs involved in these sales is also given in Table 4. Only very few undertook these sales (that too only in midland and lowland); where the price received was h i g h e r t h a n t h e c o o p e r a � v e s . T h e entrepreneurs also travelled a longer distance (average 1.87 km) for these sales. Economic Mo�va�on: Majority of the e n t re p re n e u r s b e l o n g e d t o m e d i u m category of economic mo�va�on in the three regions (Table 4). Excep�on was with the midland entrepreneurs having equal levels of high and medium economic mo�va�on (48.75% each). There were very negligible entrepreneurs with low economic mo�va�on. It was understood that the dairy entrepreneurs of Kerala state had taken up dairying not as an ancillary source, but a primary source with the mo�va�on to get adequate monetary returns. The results agree with the findings of Sarita et al (2016) and Khuman et al (2014), who studied about the dairy farmers of Haryana and Assam respec�vely. Table 4: Distribu�on of Respondents Based on Economic Mo�va�on Categories Highland (n=80) Midland (n=80) Lowland (n=80) Total (n=240) F % F % F % F % High (>21) 32 40.00 39 48.75 23 28.75 94 39.20 Medium (14-21) 48 60.00 39 48.75 55 68.75 142 59.20 Low (<14) 0 0.00 2 2.50 2 2.50 4 1.60 Socioeconomic Status and its associa�on with Economic Mo�va�on among the Dairy Entrepreneurs of Kerala 6727 Journal of Extension Educa�on The results of the mul�ple regression analysis to es�mate the rela�onship between economic mo�va�on of the dairy Table 5. Correlates of Dairy Entrepreneur's Economic Mo�va�on (Mul�ple Linear Regression Es�mates) Dependent variable Economic mo�va�on Educa�on 0.11(0.076) Experience (log) -1.17***(0.23) Gender (1/0) -0.50(0.49) Family Size -0.12(0.12) Milk production (log) 0.80*(0.31) Share of milk sold to DCS -3.07**(0.96) Share of milk sold to PDP -0.73(2.69) Dairy Farm Assets (log) 0.076(0.19) Household Assets Value (log) 0.56*(0.23) Area (Base: Midland) Highland 0.33(0.55) Lowland -0.72(0.53) Constant term 14.1***(3.00) N 219 R 2 0.38 adj. R 2 0.35 F 14.8 Standard errors in parentheses + p< 0.10, * p< 0.05, ** p< 0.01, *** p< 0.001 rela�ve value on economic ends. It was also seen that higher the milk sales to the dairy c o o p e r a � v e s ( D C S ) , l o w e r w a s t h e economic mo�va�on as it was a risk free market op�on for the dairy entrepreneurs. Further, household assets and economic mo�va�on was posi�vely related; higher the economic mo�va�on then higher the assets. The area (Midland, Lowland and H i g h l a n d ) d o e s n ' t a s s e r t e c o n o m i c mo�va�on; though it is higher in highland. The table shows that experience and economic mo�va�on were nega�vely and significantly correlated; which means that as age advances, orienta�on towards profit m a x i m i z a � o n w a s l e s s a m o n g d a i r y entrepreneurs. Young dairy entrepreneurs have higher economic mo�va�on. Milk produc�on and economic mo�va�on were posi�vely related; which indicate that if the m i l k p ro d u c e d by t h e e n t re p re n e u r household was more, then higher was his entrepreneurs and the socioeconomic variables are given in Table 5. 6728 Other variables didn't have any significant rela�on with economic mo�va�on of the dairy entrepreneur. CONCLUSION The study concluded that at present, dairying was more of an elderly male- dominated enterprise in Kerala; and hence necessitates a�rac�ng youth and women to t h e s e c t o r t h r o u g h i n v e n � v e d a i r y entrepreneurship development ac�vi�es. The higher educa�on level and lower family size of entrepreneurs shall encourage increasing herd size to establish commercial family farms; provided there is �mely and adequate government support. Despite limited land holding, dairy entrepreneurs were inclined to fodder cul�va�on; wherein usage of leased land, common property resources, intercropping, seasonal fodder crops and fodder conserva�on techniques shall assure required fodder availability. The interest of the entrepreneur is limited to crossbred ca�le; which suggests refining germplasm using semen of higher exo�c inheritance, sexed semen, embryo transfer etc. The entrepreneurs had possession of indispensable household assets, but were deficient in dairy farm assets; which can be enhanced through technical and financial support. Though gross income from d a i r y i n g w a s s u p e r i o r, t h e c o s t o f produc�on pulls it down to subsistence level of net income. Cost reduc�on techniques require immediate a�en�on in extension. The less experience of the dairy entrepreneur is a�ributed to their late entry t o t h e s e c t o r ; w h i c h r e c o m m e n d s mo�va�ng and assis�ng youth for early farm establishment. The data outcomes point to support the dairy entrepreneurs to sell more milk locally and to private agencies than coopera�ves to raise income. 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