About 60% of the organized dairy business in India is under the cooperative sector, and this generates a public goods problem within villages. Milk is purchased from the village in bulk, and every farmer receives the same per-liter price based on average quality regardless of individual performance; each producer's quality directly affects the returns of the other members. Milk quality tends to be below the technological frontier and farmers often further dilute their contributions to increase volume.
Agriculture, Food Safety and Standards, Livestock & Agriculture and 1 MoreSEE ALL
Agriculture, Food Safety and Standards, Livestock & Agriculture and TechnologySEE LESS
Funds Raised to Date
To use portable testing technologies to evaluate the quality of each farmer's milk and raise milk quality through better monitoring and incentives.
How does your innovation work?
J-PAL South Asia at Institute for Financial Management and Research (IFMR) will partner with the Karnataka Milk Federation (KMF), the largest dairy in the state of Karnataka representing over 1 million household, to raise milk quality through reforms in monitoring and incentives. IFMR’s evaluation will employ portable testing technologies to directly measure the quality of each producer’s milk and, for some villages, will introduce participant payments based on quality readings.
Planned Goals and Milestones
In other treatments, we will share producer-level information with other members of the Dairy Cooperative Society (DCS). The project will separately measure the impacts of monitoring, information sharing, and providing individual monetary incentives on milk quality.