The economics of manufacturing of different dairy products, viz. ghee, full-cream milk, standardized milk, toned milk, double-toned milk, skimmed milk and ice-cream (processing only) have been reported. The study has been conducted in an ISO-9002 dairy plant situated in the north-eastern part of Haryana. It has been observed that all the products, except the double-toned milk are being produced above the recommended breakeven level. A comparison of unit manufacturing cost with unit price received by the plant for different products has revealed that ice-cream manufacturing has been the most profitable proposition among different dairy products, and standardized milk has provided the maximum profit margin among the milk pouches manufactured during the study period, 2000-01. The double-toned milk has revealed a loss. Therefore, the study has suggested that the quantity of double-toned milk production should be raised at least equal to the recommended break-even level to avoid losses, if there is a market demand for this product or the resources of this product could be shifted to some other profitable products.


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