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Production and Marketing of Milk in Some Seelected Areas of Serajgonj District

Goutam Kumar Mandate
MS student of the Department of Agricultural Economics, BAU, Mymensingh

M. A. Sattar Manda
Professor, Department of Agricultural Economics, BAU, Mymensingh

Z M. Saidur Rahman
Associate Professor, Department of Agricultural Economics, BAU, Mymensingh

Abstract/ Executive Summary:

The study focused on the economics of dairy farming operated through milk supplying process through the BRAC's milk supply chain. The BRAC Dairy Food Project collects milk from 25 districts through 72 local chilling centers. The study uses primary data from 60 milk- producing farms from two upazilas of Sirajganj districts. The dairy farmers are mostly illiterate and agriculture is their main occupation. The average farm size of the respondents is 1.45 acres. They rear one to three cattle in their own farms. The study showed that the annual average gross return and gross margin per cow were Tk. 105097 ($ 1545) and Tk. 39019 ($ 574), respectively. The net return was Tk. 30582 ($ 450). Un discounted benefit-cost ratio (BCR) of milk production was 1.41 implying that the enterprise was profitable. Functional analysis showed that concentrate feed was the most important factor for milk production. Estimated revenue function exhibited increasing returns to scale indicating that there is a bright prospect to earn more from milk production through use of more inputs. Major problems faced by the dairy farmers are lack of adequate capital, scarcity of feeds, fodder and pasture land, limited milk collection by BRAC, irregular payment done by BRAC, limited coverage of veterinary services, housing problem for cattle, problem of appropriate breed and artificial, shortage of electricity supply, frequent occurrence of diseases and stealing of cows. The study argues that further growth in milk production will depend upon successfully addressing these problems.

Keywords: Production,Marketing, Socio economic characters,Milk,Serejgonj

Location:

Start Date: 15-04-2009

End Date: 01-05-2009

Program Area: Socio-economic and Policy

Commodity: Milk

Objectives:

1. To find out the socioeconomic characteristics of the milk producers associated with the BRAC milk supply chain.

2. To analyze the BRAC's milk supply chain starting from milk producers to consumers.

3. To estimate the profitability of milk production and identify major problems faced by the milk producers

4. To suggest measures for improvement in milk production and mil,k supply chain associated with the BRAC processing center

Methodology:

In order to attain the objectives of the study, a number of visits to ARONG at Gazipur was made. Based on consultations with the BDFP personnel and review of relevant information about milk production , and milk producers, two Upazilas namely , Shahjadpur and Tarash of Sirajganj district was selected. Data were collected from mid April to May of 2009 through direct interview with the milk producers, supply chain personnel, and the processing unit by a structured and pre-tested questionnaire. Sixty sample farmers were selected randomly for interviews 20 from Tarash Upazila and 40 from Shahjadpur Upazila

Source of Information: Bangladesh J. Agric. Econs. XXXII, 1 &2 (2009) 105-115

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The dairy farmers are mostly illiterate and agriculture is their main occupation. The average farm size of the respondents is 1.45 acres. They rear one to three cattle in their own farms. The study mainly focuses on the economics of dairy farmers who are engaged in milk processing through the BRAC's milk supply chain. Milk production under supply chain has benefited the farmers. Advances paid by the BRAC for purchasing of cows, feed, vaccination and artificial insemination services were beneficial for the farmers as well as dairy development locally. Profitability clearly shows that the dairy farming is a profitable business. Currently farmers are facing some problems and further growth in milk production will depend upon successfully addressing these problems. Research findings implies that small-scale dairying should be encouraged in Bangladesh as an effective means to reduce poverty, enhance self-employment and ensure family food security. The analysis also showed that the relationship between contract farmers and BRAC often turned out to be tenuous due to uncertainty of procurement of milk by BRAC. So, the contractual obligations of both parties need to be strengthened by restructuring the supply agreement where, the farmers should get some kind of insurance for the milk damage. Milk marketing facilities should be improved either by establishing milk processing plant in the milk producing area or by making provision for collection of milk through well organized marketing channels. There is also a need to enhance the skill and competence of dairy farmers through community based training on technologies of increasing productivity of cows.

Knowledge Management: Journal