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Essay / Challenges in the dairy industry
Table of contentsIntroductionPossible solutions to solve the problemsRecommendations to market players/policy involvementIntroductionAt present, farmers are facing difficult business conditions due to a number of factors, notably low prices of dairy products, increasing input costs and dry weather conditions. The challenge appears to be greatest for highly indebted agricultural businesses. This situation is further compounded when falling land values have diminished the equity of this farming business and reduced the ability to repay debt with cash flow from falling milk prices. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an Original EssayIn fact, the provision of adequate and safe food is a fundamental economic activity in any society. This statement reminds us that dairy safety is a potential issue that needs to be emphasized. As already happened in China during the Chinese milk scandal in 2008. This is a widespread food safety incident in China. The scandal involved milk and infant formula and other food materials and components adulterated with melamine. Around 3,00,000 victims suffer from it and unfortunately, six babies have died from kidney stones and other kidney damage and around 54,000 babies have been hospitalized. This incident has absolutely affected consumer confidence in the dairy product. Furthermore, lack of skills and training is also one of the problems in the dairy industry. In the 1980s, smallholders were completely new to livestock management. One of the major constraints to the development of the dairy sector was the inadequate training provided to farmers. The shortage of skilled labor at all levels leads to poor hygiene and milking techniques, resulting in the rejection of milk by MCCs (Dijkman, 1992). The situation will be more evident in third world countries like Africa. Possible Solutions to Combat Realistic solutions often involve accepting that there are things we cannot control and changing the ones we can. Although the weather is not controlled, the cost of inputs is actually controlled. To minimize input costs, the dairy industry will strengthen creation and security through union, modernization and specialization. Global trade will be a key factor impacting profits, and larger dairy farms will continue to make greater use of robotization to reduce costs. Improved genetic choice will result in more advantageous dairy cow lines that produce milk even more efficiently and are safer in terms of body condition and heat. Then, to prevent the price of dairy products from falling to a lower price level, such as the similar concept of minimum wage laws will be presented. However, to ensure a healthy economic situation, we must also prevent deadweight losses from occurring. A deadweight loss known as excess burden or allocative inefficiency. Excess demand or supply, even demand and supply, is not an expected phenomenon. Based on past studies and field observations, we believe that training farmers in adopting an appropriate feed formulation regime should be a priority in order to establish a benchmark indicator on issues regarding food. A training program allows you to.