FACTORS DRIVING DISCONTINUANCE OF SMALLHOLDER DAIRY FARMING -EVIDENCE FROM TAMIL NADU, INDIA

Research background: There is limited understanding of reasons, promoting discontinuance especially from dairying activities farming in mixed farming systems where exit happens earlier than the complete exit from agriculture, Purpose of the article: This study explores the households and farm associated economic factors that influence the farmer’s intention to ‘discontinue’ from the smallholder dairy sector, in the changing context of increasing demand; poor participation of youth in agriculture; urbanisation and increasing role of non-farm sector in the Indian economy. Methods: A total of 384 dairy households representing three different crop livestock systems were selected on a proportionate basis from the existing datasets of dairy households for the research. Descriptive and binominal logit regression was used for analysis of the data. Findings, value added & novelty: The major findings are that more than half of households have an intention to discontinue or downsize their dairying operations and almost all are demotivating next generation to take up dairying. Moreover, in households with no crop activity, using high inputs and having low level of attitude towards dairying and in areas with poor markets are likely to discontinue. In the long run inadequate income from dairying, value system and developments in non-farm sector are driving discontinuance.