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VOL. 13, ISSUE 1 (2026)
Cost structure, profitability, and marketing margin in traditional dahi production: A case study of Udgir (MS)
Authors
Vitthal S Rathod, Balasaheb D Landge
Abstract
This case study analyzes the economic performance
of traditional dahi (curd) production in Udgir, a town in the
Marathwada region of Maharashtra, India. Focusing on the informal, household‑level
processing units that dominate the local dairy sector, the study examines the
detailed cost structure, profitability, and marketing margins involved in dahi production. Primary data were collected
through surveys and interviews with producers, and a tabular analysis was
employed to break down costs and returns. The results indicate that raw milk
constitutes the largest cost component (over 80% of total cost), followed by
laboaur, packaging, and energy. The production cost per kilogram of dahi is estimated at approximately Rs. 47.54,
yielding a profit margin of about 68% over cost. Marketing margins along the
supply chain reveal that retailers capture a significant share of the consumer
price, while producers receive a lower share. The study highlights the high
profitability of traditional dahi
processing but also identifies constraints such as a lack of scale, limited
access to formal markets, and inadequate technical knowledge. Recommendations
include promoting producer collectives, improving access to cold‑chain
infrastructure, and providing training in quality control and marketing to
enhance the incomes of traditional dahi producers in Udgir.
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Pages:419-422
How to cite this article:
Vitthal S Rathod, Balasaheb D Landge "Cost structure, profitability, and marketing margin in traditional dahi production: A case study of Udgir (MS)". International Journal of Multidisciplinary Research and Development, Vol 13, Issue 1, 2026, Pages 419-422
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