A robust assessment of water used in agriculture, including livestock production systems and supply chains, is critical to inform diversification and the development of productivity and sustainable food production systems. This paper presents a detailed analysis of water used and consumed in nine dairy milk processing plants spread across Punjab, India’s leading dairy milk-producing state. Over the five years (2015–2019), the direct water use (DWU) was quantified at 3.31 L of groundwater per kg of milk processed. Only about 26% of the direct water used was consumed, including evaporative losses in various milk processing operations, while the remaining 74% was returned as effluent discharges. The average total water footprint (TWF), accounting for both direct and indirect water consumption, was quantified at 9.0 L of water per kg of milk processed. The majority share (~89%) of the total water footprint was contributed by the indirect water footprint associated with the consumption of electricity (energy) in dairy milk processing activities. The plant’s milk processing capacity and processing products mix also affected significant seasonal and annual variations in the direct and indirect water footprints of dairy milk processing. The analysis also found an inverse relationship between the average total water footprint and the average monthly amount of milk processed in the study plants. Therefore, efforts to reduce the indirect water footprint (associated with energy consumption), the treatment and recycling of effluent discharges, and the optimization of milk processing capacity, the dairy processing product mix, and the locations of dairy processing plants are expected to help reduce the water footprint of dairy processing in the state.

Value addition has particular importance for dairy producers in especially where the producers have limited access to the raw milk market or where the value of milk is economically less than the value of value-added milk and milk products. Keeping in view the benefits of the value addition of milk, the present study was designed to assess the economic feasibility of the value addition of milk at farm level which could be considered as the best alternative in order to sustain and increase the income level of the dairy farmers. Out of total 50 farm households, 19 small farmers, 16 medium farmers and 15 large farmers selected from 8 districts of Punjab in 2018-19. Out of total 50 farm households, the maximum number i.e. 15 (30 per cent) farm households engaged in manufacturing dahi, followed by lassi and ghee (30 per cent). Each 22 per cent of the sample households were involved in manufacturing paneer and khoya. Season-wise most of the medium farmers in the summer season and large farmers in the winter season utilized liquid milk for the preparation of value-added milk products. The value addition of milk could be generated about 62 per cent more income as against the sale of liquid milk on small farmers, while medium and large producers earned 68.67 and 58.88 per cent more income from the value addition of milk as against the sale of liquid milk. The value addition of milk has been generating higher income than that of the sale of liquid milk and therefore, the study strongly recommends the value addition of milk at the farm level for earning sustaining income from dairy farming in the Punjab state.

A robust analysis of water use in major food production systems is crucial for improving their productivity and sustainability in water-scarce arid and semi-arid regions like Punjab (India) facing the depletion of groundwater resources. This study aimed to assess blue water use and blue water productivity in dairy farming systems across different farm sizes in Punjab. Comprehensive monitoring and assessment of water use over a full year (from July 2022 to June 2023) was conducted on 24 dairy farm sheds in Punjab, revealing significant variability in their blue water use (measured in L per adult animal per day) and blue water productivity quantified as kg of fat- and protein-corrected milk (FPCM) produced per m³ of the blue water consumed. The variability was influenced by factors such as livestock species, farm size (medium with 15–25 livestock, large with 25–100 livestock, and commercial with >100 livestock), bathing and servicing routines, and energy use patterns. The average dairy livestock total blue water consumption varied from 112 ± 14 to 131 ± 19 L per adult animal per day, with 20–40% higher livestock drinking water and about six times higher livestock bathing and serving water used during the summer months. Interestingly, a large share (45%) of the average total blue water consumption is contributed by indirect water consumption via the use of energy (electricity and diesel) in dairy farm sheds. Dairy milk blue water productivity was quantified higher, ranging from 154 ± 11 to 225 ± 59 kg FPCM per m³ in buffalo- and crossbred cattle-based dairy farm sheds. However, indigenous cattle showed a lower blue water productivity ranging from 56 to 97 kg FPCM per m³, reflecting their lower milk yields and limited use of intensified management practices. The state-level water scarcity footprint (WSF) of Punjab dairy farm sheds was quantified at 4870 million m³ world-eq, which showed a significant spatial variation among Punjab districts. However, the results of this study offer novel seasonally and spatially disaggregated benchmarks of blue water consumption, blue water productivity, and the water scarcity footprint of Punjab’s dairy farming sheds. This new information is crucial for the development of locally calibrated and validated models for improving the water productivity and sustainability of dairy farming across Punjab and other similar arid and semi-arid regions in Southeast Asian countries.