Although milk production has shown remarkable growth in Andhra Pradesh over the past decade, the potential role of dairy farming as a means to improve household incomes and create rural employment is far from being fully exploited. 

Large dairy farms represent a profitable enterprise in Andhra Pradesh. but the vast majority of smaller farms are economically unattractive and would disappear as soon as farmers have better alternatives. This critical situation of small-scale farms persists in spite of numerous dairy development activities long in existence in the state.

The FAO Pro-Poor Livestock Policy Initiative has prepared (September 2006)

• Policy Brief Dairy Development Programs: Benefits and Risks for Smallholders - The Case of Andhra Pradesh, India, and
• Working Paper Dairy Development Programs in Andhra Pradesh, India: Impacts and Risks for Small-scale Dairy Farms

Available at http://www.fao.org/ag/againfo/projects/en/pplpi/docarc/pb_wp38.html [1]