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Make direct private investment in agricultural activities. The price fixation is done by the negotiation between the producers and firms. The farmers enter into contract production with an assured price under term and conditions.
They sell their milk to a processor, which bottles the fluid or further develops it into cheese, yogurt, or other products. It is the processor that sets the price for milk, not the other way around. In economic terms, dairy farmers are called price takers rather than price makers.
Pay for sharemilkers varies depending on how much milk their cows produce and milk company payouts linked to global market conditions and the price of milk solids. Sharemilkers usually earn between $64,000 and $97,000 a year.
Still, on average, large farms show the most profit per cow at about $275 per cow. Farms with less than 200 cows have profits of about $160 per cow. Herds with 200 to 500 cows are seeing profits of just $84 per cow.
In simple terms, the 50/50 sharemilking agreement works like this: The sharemilker owns the cows and replacement stock, mobile machinery and employs the on-farm staff. The sharemilker has responsibility for the day to day management of the farm.
In the 2020 Act, quality, grade, and standards for the pesticide residue, food safety, labour and social development standards may also be adopted in the agreement, but these aspects are only suggested and not made mandatory even though labour exploitation in contract farming is quite prevalent and also affects India's
Still, on average, large farms show the most profit per cow at about $275 per cow. Farms with less than 200 cows have profits of about $160 per cow. Herds with 200 to 500 cows are seeing profits of just $84 per cow.
Dairy herd managers usually earn from $51,000 to $90,000. Dairy farm managers usually earn from $63,000 to $160,000. Operations managers in charge of large or multiple dairy farms can earn from $66,000 to $160,000.
A contract milker with top-up payments typically provides labour, pays for shed costs, electricity, and vehicles and has administrative, insurance and ACC costs.
Contract milkers are self-employed and manage farms. They are paid on a negotiated set price per kgMS (amount of milk) produced. They also usually provide labour, shed costs, electricity and vehicles. Variable or lower order sharemilkers are paid based on a percentage of milk income.