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, Arivazhagan Deivasigamani, Arodh Lal Karn, Venkateswarlu Beluguru, Kishore Kumar Kabaleeswaran, Ramesh Satyanarayana, Sudhakar Sengan*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

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.

Original languageEnglish
Article number1530
JournalResearch on World Agricultural Economy
Volume6
Issue number1
DOIs
Publication statusPublished - Mar 2025

Keywords

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

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