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Comparative Economic Study on Dairy Farming in Some Selected Areas of Bangladesh

S. B. Alam
Agricultural Economist
Ministry of Agriculture, Bangladesh Secretariat, Dhaka

M. A. Nasrin
M. S. Student
Dept. of Agricultural Economics, BAU, Mymensingh

M. J. Alam
Assistant Professor
Dept. of Animal Husbandry, SAU, Dhaka.

Abstract/ Executive Summary:

Dairy development through Field Fertility Clinic (FFC) is relatively a recent effort in Bangladesh. Farmers in the FFC areas are increasingly becoming interested in raising dairy cows. This paper is an attempt to examine the relative profitability of raising dairy cows by FFC members and non-members control farmers. The study revealed that annual average milk production per farm was 10075.32 litres and 8662.56 litres for FFC member and non- member control farmer respectively. In the case of FFC member farmer net return per farm was US $ 852.44 while in the case of non- member control farmer. The member was US $ 747.13. Return from per FFC member farm was higher by US $ 105.31 than the non- member control farm. The net change of dairy income from a farm was observed to be US $ 407.22 and US $ 205.90 due to introduction of FFC veterinary services and recommended feeding practice respectively. It has been found that using the FFC veterinary services the net change of farm income was higher (US $ 407.22) than the FFC recommended feeding practice. Cobb- Douglas production function analysis was done to determine the effects of variables mainly for concentrate cost (X₁), rice straw cost (X₂), green grass cost (X₃), labour cost (X₄), veterinary services cost (X₅) and FFC intervention (D) on milk return. The finding suggested all of the selected variables had significant impact on milk return. It was further observed that all the resources except rice straw were used efficiently.

Keywords: Field Fertility Clinic , Dairy

Location: Sirajgonj, Pabna

Start Date: 01-04-2005

End Date: 30-06-2005

Program Area: Socio-economic and Policy

Non-commodity: Income generation

Objectives:

1. To determine and compare the profitability of dairy raising by FFC members and non- members control farmers.

2. To examine the income potentials of FFC activities by using partial budgeting technique.

3. To determine the efficiency of various inputs used in rearing dairy cows

Methodology:

Eight adjacent villages were purposively selected from Sirajgonj and Pabna districts of Bangladesh where the Field Fertility Clinic (FFC) was in operation. A total of 260 sample household were selected randomly, of which 200 households, one hundred from each district, received FFC services, i.e., members of FFC. The remaining 60 households, 30 from each districts, served as control. The survey schedule was designed in accordance with the objectives of the research. A preliminary schedule was drafted, pre tested in the study areas and modified accordingly. The first author personally interviewed the head of the family and filled in the survey forms during the period from April to June 2005. If any information was overlooked or found contradictory, a follow- up farm visits were made to obtain correct data. Data analysis is the main function of an economic research or farm survey. Raw data was properly summarized, tabulated and analyzed. The cost and return analysis was done on both variable and total cost basis. Total cost consisted of feeds cost, labour cost, veterinary services cost, housing cost, dairy supplies cost and cost of operating capital. Returns from the dairy enterprise included the returns from milk, cowdung, inventory change and bonus from cooperatives. The following profit equation was used to assess the profitability of the FFC member and control farms. The net change of profitability of dairy farms due to acceptance of FFC veterinary services was calculated. Here it was considered that there was a dairy farm of which producing milk in the study areas, previously traditional system such as; traditionally practiced veterinary services, conventional feeding practice for milk production. To determine the effects of selected inputs on the production of milk, Cobb- Douglas production function was chosen on the basis of the best fit. Six important independent variables namely, concentrate cost (X₁), rice straw cost (X₂), green grass cost (X₃), labour cost (X₄), veterinary services cost (X₅) and FFC intervention (D) were considered to have an impact on production of milk.

Source of Information: JOURNAL OF SHER-E-BANGLA AGRICULTURAL UNIVERSITY, Vol. 01 (1), July 2007, pp. 118-124.

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

1. After intervention of FFC services total milk production, total return and net return per farm have been which indicated the positive impact for dairy development in the study area.

2. After using the FFC services the net change of farm income has been increased.

3. FFC intervention was found effect a positive on total return from milk production.

Knowledge Management: Journal