The present study aims to analyze consumers' preferences and trends in consumption of milk and dairy products and their impact on determining dairy production and marketing opportunities in Assam. The survey was done on 1,500 households in nine project districts of the Assam Agricultural Competitiveness Project. The results reveal that the rural consumers are older and less educated, and on average, have larger household size than urban consumers. Almost all consumers are non-vegetarians and the majority of their household members are lactose tolerant. Urban and rural consumers have shown differential preferences for certain quality attributes of milk and dairy products and this finding does not support the hypotheses of the same preferences by these two types of consumers. In terms of taste, nutritive value, health risk and hygiene, boiled milk scored the highest preference rating among both urban and rural consumers, on average. On the other hand, powdered milk scored the highest preference rating in terms of shelf life and packaging. Urban consumers also gave the highest preference score to powdered milk for availability, while rural consumers did the same for raw milk. In terms of price, urban consumers gave the highest preference rating to raw milk, while rural consumers preferred powdered milk for this particular attribute.

A good understanding of other economic, demographic and cultural factors that could influence dairy products consumption will be useful in contextualizing the proposed changes in government policies on dairy development and in effectively responding to the emerging changes in the food retailing industry. This paper deals with the project Dairy Development in Assam, which aims at generating empirical information as a way of joint learning that will allow the subsequent preparation of a pro-poor dairy development plan for Assam, incorporating training certification and monitoring of milk agents, dissemination of milk preservation technology for value-added products, foster new market opportunities through business development information and facilitation services, and generic campaign of milk consumption and quality awareness.

This study on milk consumers mainly aims to analyze consumers' preferences and trends in consumption and their impact on determining dairy production and marketing opportunities. The survey areas were identified and pre-selected by the Directorate of Dairy Development and included the nine project districts of the Assam Agricultural Competitiveness Project, namely Barpeta, Kamrup, Sonitpur, Nagaon, Morigaon, Jorhat, Tinsukia, Cachar, and North Cachar (NC Hills). These nine districts were identified as key areas for dairy development.

Based on the key informant interviews and casual observations, milk consumption in Assam appears to be mainly as tea whitener, while a small segment of the population use boiled milk for drinking purpose. Various traditional dairy products, such as curd (dahi), sweets and cream, are also consumed, which are the main dairy product items used by many households in the state. It is observed that demand for these traditional dairy products increases tremendously at the time of festivals. A significant proportion of the milk is also used for preparing a wide variety of dairy delicacies such as sweets.

Agricultural Economics Journal, Milk and Dairy Products, Assam Agricultural Competitiveness Project, Demographic Factors, Dairy Products Consumption, Government Policies, Milk Preservation Technology, Urban Consumers, Flavored Milk, Rural Consumers, Business Development, Facilitation Services, Dairy Development.