The present study milk producers supply milk from Sutrapur, Keranigonj, Manikgonj, Sadar Ghat and Munshigonj to the wholesale milk market (Rathkhola Bazar). Fianally Sutrapur and Keranigonj Upazila under Dhaka district were selected considering concentration of milk production. The sample included milk producer, and trader (bepari, wholesaler, sweet-meat shop). At first a list of 80 milk producers in Kerinigonj and Sutrapur who supply milk in the wholesale market (Rathkhola Bazar) and a list of 100 traders who purchase milk at Rathkhola Bazar were selected for the study. In this study random sampling technique was used to draw samples of milk producer and trader. Total sample size of the study was 55 for the collection of data which included 25 milk producers, 15 beparies, 10 wholesalers and 5 sweet-meat shops. Among the two selected Upazilas 13 and 12 milk producers were selected randomly from Kerinigonj and Sutrapur Upazila respectively and 15 beparies, 10 wholesales and 5 sweet-meat shops were taken randomly from wholesale milk market (Rothkhola Bazar) for the study.
This analysis considered fixed costs (which include cost of milch cows, housing cost) and variable costs (which include feed costs, labour, veterinary, electricity, goala cost). Net return was arrived at by deducting all costs (Variable and fixed costs) from gross return. (Ashrafuzzaman,1993)
The following equation was used to assess the profitability of the milk producer and value addition by trader.
Net return of milk producer,
p = Pm. Qm – (TVC + TFC)
Where,
p = Profit of milk producer per day per cow
Pm = Per unit price of milk (Tk/kg)
Qm = Quantity of milk (kg/day)
TVC = Total variable cost of milk producer
TFC = Total fixed cost of milk producer
Value addition of traders,
Value addition = Gross margin- Marketing cost
Gross margin = Sale price-Purchase price