Dairying in India has traditionally been a small holders’ enterprise. As the demand for milk
and milk products is increasing rapidly, milk producers have been adopting dairy farming as a
commercial enterprise to tap the market opportunities. The present study entitled “Economics
of milk production and optimization of herd size of commercial dairy farms in Jaipur
District (Rajasthan)” was taken up with the specific objectives as to work out cost of milk
production and returns from different species of milch and milking animals, find out inputoutput
relationship and resource use efficiency and further to find out optimization of herd size
of commercial dairy farms. Primary data collected from a sample of 100 commercial dairy
farms drawn from six tehsils of Jaipur district. The commercial farms were classified into small,
medium and large categories based on herd size. The average herd size on small, medium
and large commercial farms was 25.95, 39.49 and 73.44 milch animals, respectively. Overall
average daily milk yield for milch crossbred cow, buffalo and local cow were 7.81, 6.74 and
4.84 litres, respectively. Overall gross maintenance cost for Milch local cow was worked out to
be Rs. 127.08 per day. Net return per litre per local milch cow was found to be positive for
medium and large categories. It was highest for large category (Rs. 5.20) and lowest for small
category (Rs.-1.55). Overall per day gross maintenance cost for milch crossbred cow was
worked out to be Rs. 191.81 per day, which varied from Rs.185.86 for small category to Rs.
197.58 for large category. Net returns per litre of milk were found to be positive for all the
categories. It was highest for large category (Rs.8.95) and lowest for small category (Rs.4.31).
Overall gross maintenance cost for milch buffalo was worked out to be Rs. 205.43 per day
which varied from Rs.200.54 for small category to Rs. 207.31 for large category. Net returns
per litre per milch buffalo were found to be positive for all the categories. It was highest for
large category (Rs.5.64) and lowest for small category (Rs.3.45).In case of small category of
herd size, it has been observed that dry fodder, green fodder, labour and miscellaneous
expenses were optimally utilized as difference between its MVP and unit price was positive
and non-significant. In case of medium category, it can be observed that dry fodder, green
fodder and miscellaneous expenses were efficiently utilized as difference between its MVP
and unit price was positive and non-significant. In case of large category of herd size, dry
fodder, concentrate and miscellaneous expenditure were efficiently utilised as difference
between its MVP and unit price was positive and not significant. Labor was over utilised as the
differences between their MVP and unit price was positive and significant. Under existing
situation the herd composition of small category of farms was 1.47, 6.86 and 11.37 for local,
cross bred and buffaloes, respectively. The integer values of local, cross bred and buffaloes
under optimum conditions were 3, 6 and 11 respectively. In case of medium farms the
absolute numbers of animals under optimum plan were found to be nil local cows, 8 crossbred
animals and 19 buffaloes. On large category of farms local cows, cross bred and buffaloes
were maintained in the existing situation, whereas the optimum plan eliminated for all local
cows. suggesting that farmers should maintain only cross bred cows and buffaloes at the rate
of 39 cross bred and 10 buffaloes for maximum returns.