State dairy development department posts · India · State public service commissions (e.g. Kerala PSC)
Original practice questions written to the published syllabus · not past papersThe economics of milk production, processing and markets, cooperative organisation and how milk is priced. The agribusiness track (cooperatives-fpos, agricultural-marketing-price-analysis) covers the general theory.
In the exams: ICAR AIEEA-PG and AICE dairy economics option at NDRI (Agricultural/Livestock Economics); IBPS AFO professional knowledge (animal husbandry and dairy); NABARD dairy model projects
State dairy development department posts (India)
Cost of milk production, milk pricing and testing, village society and union functions, state incentive schemes, dairy development programmes and their monitoring.
How our questions for State dairy development department posts spread across the units of Dairy Economics, Cooperatives & Milk Pricing. Difficulty: 18 easy, 15 medium, 2 hard.
| Cost of milk production | 10 | |
| Milk pricing: fat-SNF two-axis and component pricing | 7 | |
| Dairy development programmes and their evaluation | 6 | |
| Dairy cooperatives: principles, governance and performance | 4 | |
| Economics of scale in milk processing | 3 | |
| Dairy market structure and price spread | 3 | |
| World dairy trade and commodity price cycles | 1 | |
| Financing dairy enterprises | 1 |
Choose an answer, then open the working. Each explanation says why the right answer is right and why the others are not.
A buffalo's maintenance and fixed costs are 50,000 a year whatever her yield, and the extra cost of producing each litre is 12. What is the cost per litre if she gives 3,000 litres instead of 2,000 litres in a year?
C. 28.67 per litre, down from 37.00
Cost per litre = 50,000 ÷ litres + 12. At 2,000 litres: 25.00 + 12 = 37.00. At 3,000 litres: 16.67 + 12 = 28.67. 16.67 and 25.00 leave out the variable cost; the cost does not stay unchanged because the fixed part is spread over more litres.
A cow gives 12 litres a day sold at 40 per litre, and her daily feed costs 260. What is her income over feed cost per day?
A. 220
Income over feed cost = milk revenue − feed cost = 12 × 40 − 260 = 480 − 260 = 220 per day. 480 is revenue alone, 740 adds feed cost to revenue, and 18.33 is the margin per litre rather than per day.
Ten kilograms of milk at 6.0% fat and 9.0% SNF are paid on the two-axis system. A supplier adds one kilogram of water. What happens to the payment?
D. It is unchanged
Payment depends on kilograms of fat and SNF, which are unchanged at 0.6 kg and 0.9 kg; fat and SNF percentages fall to about 5.45% and 8.18%. Under per-litre pricing the watered milk would earn ten percent more, which is the reason solids-based payment is used.
A society pays for buffalo milk on fat basis at 800 per kg of fat. A farmer supplies 50 litres at 7.0% fat; the milk density is 1.030 kg per litre. What is the payment?
B. 2,884
Mass = 50 × 1.030 = 51.5 kg; fat = 51.5 × 0.07 = 3.605 kg; payment = 3.605 × 800 = 2,884. 2,800 treats litres as kilograms, 28,840 misplaces the decimal, and 3,605 is the fat in grams mistaken for money.
A union pays 600 per kg of fat and 300 per kg of SNF. What is the price per kg of milk with 6.5% fat and 9.0% SNF?
D. 66.0
Price per kg = (6.5 × 600 + 9.0 × 300) ÷ 100 = (3,900 + 2,700) ÷ 100 = 66.0. 73.5 swaps the rates, 39.0 is the fat value only, and 6,600 omits the division by 100.
Why must lactometer readings be corrected for temperature before SNF is calculated for payment?
A. Milk density changes with temperature
The lactometer measures density, which falls as temperature rises, so readings are corrected to the standard temperature of the instrument. Fat and SNF contents do not change with the temperature at testing.
A farmer receives 38 per litre and the consumer pays 54 per litre for milk of the same composition. What is the producer's share in the consumer's price?
B. 70.4 percent
Producer's share = 38 ÷ 54 × 100 = 70.4 percent. 29.6 percent is the spread as a share of the consumer price, 142.1 percent inverts the ratio, and 16 is the spread in money, not a percentage.
Consumers pay 56 per litre. Collection costs 2, processing 4, distribution 3 and the retail margin is 5 per litre. If there are no other costs or margins, what is the producer's share?
A. 75.0 percent
Spread = 2 + 4 + 3 + 5 = 14, so the producer price = 56 − 14 = 42 and the share = 42 ÷ 56 = 75.0 percent. 25 percent is the spread's share; 80 percent and 66.7 percent come from leaving out or double-counting an item.
Operation Flood was implemented in India by which body?
A. National Dairy Development Board
The National Dairy Development Board, set up in 1965, ran Operation Flood from 1970 to 1996 in three phases. The others are not dairy development agencies.
A breeding programme raises milk yield potential, but farmers have no extra fodder and no buyer for extra milk. What is the likely result?
C. Higher costs without matching gains in income
Programme components depend on one another: better genetics need better feeding and a market for the extra milk. Without them, animals do not express their potential and costs rise.
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