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India plays an important role in the dairy sector.The country is the world’s largest milk producer and largest livestock population in the world. In India Dairy market is rapidly growing due to the nutritional value. Milk and milk products is popular beverage in most of the households.In urban and semi urban areas India has made substantial growth. And the result is that most of the people in the cities are eager to purchase quality milk and milk products. In today‘s age of competition, it is needful to providing the right product at right time and it is possible by supply chain management. Supply chain management is the latest technology to reduce cost and increase customer‘s satisfaction.The future of dairy industry is depends upon quality of milk and milk products. The dairy industry must have latest modern technology for milk processing and product manufacturing which will capture new national and international markets. In this article researcher’s objective is to study the effective performance of supply chain management in dairy industry and consumers preference criteria with reference to dairy industry in Satara district.

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