<P> In 2001 India became the world leader in milk production with a production volume of 84 million tons . India has about three times as many dairy animals as the USA, which produces around 75 million tons . Dairy Farming is generally a type of subsistence farming system in India, especially in Haryana, the major producer of milk in the country . More than 40% of Indian farming households are engaged in milk production because it is a livestock enterprise in which they can engage with relative ease to improve their livelihoods . Regular milk sales allow them to move from subsistence to earning a market - based income . The structure of the livestock industry is globally changing and putting poorer livestock producers in danger because they will be crowded out and left behind . More than 40 million households in India are at least partially dependent on milk production, and developments in the dairy sector will have important repercussions on their livelihoods and on rural poverty levels . Haryana was chosen to assess possible developments in the Indian dairy sector and to broadly identify areas of interventions that favour small - scale dairy producers . A methodology developed by the International Farm Comparison Network (IFCN) examined impacts of change on milk prices, farm management and other market factors that affect the small - scale milk production systems, the whole farm and related household income . </P> <P> Co-operative farming refers to pooling of farming resources such as fertilisers, pesticides, farming equipments such as tractors . It however generally excludes pooling of land unlike in collective farming where pooling of land is also done . Co-operative farming is a relatively new system in India . Its goal is to bring together all of the land resources of farmers in such an organised and united way so that they will be collectively in a position to grow crops on every bit of land to the best of the fertility of the land . This system has become an essential feature of India's Five Year Plans . There is an immense scope for co-operative farming in India although the movement is as yet in it infancy . The progress of co-operative financing in India has been very slow . The reasons are fear of unemployment, attachment to land, lack of proper propaganda renunciation of membership by farmers and existence of fake societies . </P>

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