Agricultural Research Management Information System

Home
Research Summary
Search
About Us
- ARMIS
- Brochure
Contact Us
Report
User Request
Data Input
Help
- Operation Manual
  - PDF
  - Video
- Program Area & Commodity
We have reached 37600 number of research entries at this moment.

- Logout

Research Detail

Home
Research
Detail

Impact of Government's Subsidy on Private Dairy Farms in Bangladesh

S.M.A. Rahman
Senior Scientific Officer
Socio-economic Research Division Bangladesh Livestock Research Institute. Savar, Dhaka-1341.

J. Alam
Bangladesh Livestock Research Institute. Savar, Dhaka-1341

M. M. Rahman
Bangladesh Livestock Research Institute. Savar, Dhaka-1341.

Abstract/ Executive Summary:

In this study, attempt was made to analyze the impact of government's subsidy on the development of private dairy farms in Bangladesh. For this purpose, an in-depth survey on 200 pre-subsidized and 200 post-subsidized dairy farms was carried out in G divisions of the country. Results showed that the subsidy money was almost utilized for the purposes of dairying. Age at first calving. calving interval and dry period were found Significantly lower and location length was found significantly higher in post- subsidized dairy farms of cow- holding group-l than pre-subsidized dairy farms. In case of cow holding group-2 only pregnancy, interval was found Significantly lower Total milk production (Iit)/farm/day number of milch-cows. price received/litre were Significantly higher in all groups of post-subsidized dairy farms than pre-subsidized dairy farms. In all cow-holding groups of post-subsidized dairy farms, milk (lit.) sold. home consumption of milk, milk gifted and spoiled milk was increased Significantly than pre-subsidized dairy farms. Improvement in fodder yield (t/ha) and increase in labour employment were Significantly higher in all groups of post subsidized dairy farms than pre-subsidized dairy farms. The gross returns/farm was found Significantly higher in all cow-holding groups of post subsidized dairy farms than pre subsidized dairy farms. The B/C ratios for all cow-holding groups of pre-and post-subsidized dairy farms were greater than one, indicating that dairy farming is profitable in Bangladesh.

Keywords: Pre-subsidized. Post-subsidized Dairy Farms, Annual Gross Return, Profitability, B/C Ratio

Location: Dhaka, Sylhet, Cliattagong, Rajshshi, Barisal and Khulna

Start Date:

End Date:

Program Area: Socio-economic and Policy

Non-commodity: Subsidy

Objectives:

1. To examine the pattern of utilization of subsidy by those farms, impact of governments subsidy on productive and reproductive performances of cows.

2. To determine the profitability of the dairy farming in Bangladesh.

Methodology:

To achieve the objectives of the study, 200 pre subsidized and 200 post-subsidized dairy farms from six administrative division, namely Dhaka, Sylhet, Chittagong, Rajshshi, Barisal and Khulna were selected for in-depth investigation. In each pre- and post-subsidized dairy farms, 153 farms belonged to cow-holding group-I and 47 farms belonged to cow holding group-2. The selection of dairy farms was made following a simple random sampling technique. The post-subsidized dairy farms were divided into two cow holding groups depending on subsidization rates. Cow holding group-I farms have 5-10 milking cows whose subsidization rate was 25% of the estimated value of each cows amounting to Tk. 25,000/- and cow-holding group-2 farms have 11-25 milking cows whose subsidization rate was 20% of the estimated value of each cow amounting to Tk 25,000/=. Similarly, pre-subsidized dairy farms were also divided into two groups depending on cow- holdings. In calculating per animal costs and returns, cow- equivalent number of animals was used Following the conversion factor; heifer=0.80 cows, and calf = 0.40 cows. However, milk production per cow is calculated by considering milch-cows only. For homogeneity of data pre-project and post-project comparison dairy farming was followed to determine the impact of subsidy given to those farms. To determine the profitability of those farms, the Profit Equation was used.

Source of Information: Bangladesh Journal of Livestock Research. Vol: 11 (No-1), pp: 86-97, 2004

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

The study revealed that productive and reproductive performances of dairy cows were Significantly higher in post-subsidized dairy farms than pre-subsidized dairy farms in cow holding group-I. Average price of milk/liter and consumption of milk were found significantly higher in post subsidized dairy farms. Total animal died were Significantly decreased in post- subsidized dairy farms. Total animal died was Significantly decreased in post- subsidized dairy farms in group-2. Total fodder cultivated area and fodder yield were significantly increased in post subsidized dairy farms of cow holding group-I. Although total fodder cultivated area in cow holding group-2 was non significant and but fodder yield was significantly increased. In all types of post subsidized dairy farms labor employment was significantly higher. Annual gross returns net profit /farm and B/C ratio were found significantly higher in post- subsidized dairy farm compared to pre subsidized dairy farms. But in cow-holding group-2 although gross return was significantly increased. the B/C ratio was non-significant. However. B/C ratios were found greater than one for all types of dairy farming indicating that dairying is viable and profitable in the country. However. the disbursement of subsidy has created more positive impact on productive and reproductive performance of dairy cows. It suggests that large numbers of smallholder cow-holding groups need to be brought under the provision of subsidy program for successful dairy development in Bangladesh.

Knowledge Management: Journal