Indian Journal of Economics and Development: Forthcoming Issue

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Cost Analysis and Pilot Consumers Study of Omega 3 Enriched Fruit Yoghurt


S. Siva Kumar, B.V. Balasubramanyam, K. Jayaraj Rao, P.K. Dixit and Varinder Pal Singh



Foods which provide well known health benefits to consumers are getting more importance in the market. Yoghurt is a famous fermented milk product produced with the help of yoghurt cultures. Dairy products like yoghurt can be logical vehicles for omega-3 fatty acids and fruits (iron rich) because they are widely consumed by all categories of population and also help in lowering the omega-6 to omega-3 fatty acid ratio. Cost of the product is an important competitive factor while launching the new functional dairy products in the market. The sale price of the fruit yoghurt in the present market condition is 120 per kg; cost of the developed functional fruit yoghurt was 102.7 per kg, a profit of 17.30 per kg could be obtained which is a good profit margin for the commercial viability and sustainability of the product. The break even output was calculated 35.01 kg of product which is lower than the actual level of production indicating the viability of this enterprise. The pilot study on consumer acceptance indicated that after understanding the health benefits of the yoghurt supplemented with omega 3 fatty acids and fruits, nearly 94 per cent of the respondents liked the developed product.

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