The present study examined the economics of milk production in Mizoram with reference to input-output relationship, cost-benefits ratio and marketing channels, using stratified sampling technique to select the sample farmers according to the herd size. Descriptive statistical tools and regression models have been used to analyse the data. Although dairy farming requires a large amount of capital for starting up and monthly average variable cost also being very high, returns from sale of milk and other sources produce a sizeable amount of income to the cattle farmers. Findings show that the dairy farming was found to be profitable activity which is justified by its cost-benefit ratio which is greater than one (1.7). Dairying farming has been subject to decreasing returns to scale. Dairy farmers are faced with various kinds of constraints. Appropriate measures are suggested to address these constraints in order to enhance the profitability and viability of dairy farming and to develop the sector as a whole.

Highlights

• Dairying farming is a profitable economic activity, contributing stable income and employment to the household economy. The dairy sector offered alternative livelihood potential to shifting cultivators.