Research on World Agricultural Economy

The Influence of Direct Market Access on Profit Margins, Supply Chain Efficiency, and Economic Resilience for Small-Scale Dairy Farmers of Asian Country

Hayder M. Ali

Department of Information Technology, College of Science, University of Warith Al-Anbiyaa, Karbala, 56001, Iraq.

Arivazhagan D

AMET Business School, Academy of Maritime Education and Training Deemed to be University, Chennai 603112, Tamil Nadu, India

Arodh Lal Karn

Department of Financial and Actuarial Mathematics, XJTLU ‑ University of Liverpool, Suzhou 215123, China

Venkateswarlu B

Department of Computer Science and Engineering, Koneru Lakshmaiah Education Foundation, Vaddeswaram 522502, Andhra Pradesh, India

Kishore Kumar K

Department of Computer Science and Engineering, Veltech Dr. RR & Dr. SR University, Chennai 600062, Tamil Nadu, India

Ramesh S

Indus Business Academy, Bangalore 560082, Karnataka, India

Sudhakar Sengan

PSN College of Engineering and Technology, Tirunelveli – 627152, Tamil Nadu

DOI: https://doi.org/10.36956/rwae.v6i1.1530

Received: 28 November 2024; Published: 24 February 2025

Abstract

This study investigates the impact of Direct Market Access (DMA) on the economic results of Small-Scale Dairy Farmers (SSDF) in Gujarat, India. Specifically, it explores how DMA  impacts Profit Margins (PM), Supply Chain Efficiency (SSE), and Economic Resilience (ER), compared to Traditional Market Access (TMA), which intermediaries dominate. A total of 248 SSDF participated in the study, with data collected through structured surveys and financial records. Descriptive and inferential statistical analyses, including t-tests, ANOVA, and Multiple Regression (MR), were employed to assess the relationships between Market Access Type (MAT) and Key Economic Indicators. The results show that farmers using DMA reported significantly higher PM (Mean=₹. 29,123) than those using TMA (Mean=₹. 26,347). The DMA is better SSE by reducing transportation costs, time to market, and product wastage, with a significant difference in efficiency scores (t=4.02, p=0.001). The Farm Size (FS), Education Level (EL), and Years of Experience (YoE) considerably affect agricultural results. Large farms mean there are more scale efficiencies because a farm is a significant operation with many resources to utilize. Education increases farmers' understanding, enhances new technologies, and encourages them to adopt performance management. YoE results in more effective decisions based on practical knowledge, risk management, and an adaptive approach. All these factors are consistent; for example, educated farmers with suitable experience and large farms have the best chance of adopting new methods and maximizing returns and productivity. These improvements create tenacity, sustainability, and effectiveness in farming businesses. DMA enhanced ER, enabling farmers to withstand market fluctuations better and maintain stable incomes. Key factors such as FS, EL, and YoE further influenced these outcomes, with larger and more educated farmers benefiting more from DMA. The study concludes that DMA is a viable strategy for improving the economic sustainability of SSDF. However, addressing gender disparities and providing education and capacity-building initiatives are essential for ensuring that all farmers can fully benefit from DMA. These findings offer essential identifications for policymakers, farmer cooperatives, and development organizations focused on enhancing the incomes of SSDF.

Keywords: Direct Market Access, Small-Scale Dairy Farmers, Statistical Analysis, ANOVA, Machine Learning, Smart Agriculture

References