2012 Jiva April Cover 220 GSM Art Card Glossy ... - Jivaonline.net

RESEARCH ARTICLEThe demand for milk does not increase themilk price very much as other substituting productslike milk powder are available in the market. But theincreasing milk price is a factor for increasing in milkproduction along with other parameters with aweightage of 0.548 to milk price.From the significant correlation betweenmilk price and feed price, the following linearrelationship could be observed by the model,Milk Price = 1.702*Price of Feed per Kg+1.641.The model explains 96.9% of the variationin the milk price with price of feed as explanatoryvariable. Thus when there is an annual increase ofone rupee in one kg of feed, there will be acorresponding increase of rupees 1.70 per one litre ofmilk.Table 3. Anova Table for regression between milk price and feed priceSum of SquaresDegree of FreedomMean SquareF ValueSig.Regression356.8971356.897594.928a.000Residual11.39819.600Total368.29620Table 4. Table of regression coefficients between milk price and feed priceStandardizedUnstandardized CoefficientsCoefficientst Sig.B Std. Error Beta(Constant)1.641 .4783.436 .003Feed Price (Rs/Kg)1.702.070.98424.391.000The other factors such as labour cost, production, demand, price of procurements like milk powder etc.do not come under the model. So there need to have a more scientific way of fixation of price so that bothconsumer and farmer are protected by considering all the factors affecting milk price. In this context, a futureJIVA Vol. 10 Issue 1 April 201219