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Productivity and Resource Use Efficiency of Milk Production of the Small Scale Dairy Farmers

Md. Abdul Quddus
Professor
Professor, Department of Agricultural Statistics, Bangladesh Agricultural University, Mymensingh, Bangladesh

K.M. Mostafizur Rahman
Professor
Professor, Department of Agricultural Statistics, Bangladesh Agricultural University, Mymensingh, Bangladesh

Mohammad Amirul Islam
Professor
Professor, Department of Agricultural Statistics, Bangladesh Agricultural University, Mymensingh, Bangladesh

Abstract/ Executive Summary:

The study investigated the productivity and resource use efficiency of milk production of small scale dairy farmers in Bangladesh. A total of 280 cattle farmers were interviewed in five different districts of Bangladesh. The selection of sample was done using stratified random sampling technique. Apart from descriptive analysis, two types of models such as Cobb- Douglas type stochastic frontier production function and conventional average Cobb-Douglas type income function was estimated. Milk production of crossbreed was found significantly higher than that of indigenous cow. Farmer's education was positively associated with technical efficiency in milk production. Some important predictors of household income were identified. Analyses further suggested that milk production of local breed and crossbred cow can be increased by 41% and 40%, respectively by increasing the farmer's technical efficiency with the same resource base and technologies. The study recommended that all the livestock farmers should be given training on technical aspects of milk production and livestock health with a view to increasing milk production.

Keywords: Productivity,Resource use efficiency, Milk production, Small scale dairy farmers

Location:

Start Date:

End Date:

Program Area: Socio-economic and Policy

Commodity: Milk

Objectives:

To evaluate the socioeconomic conditions of dairy owners, resource use pattern, milk productivity, efficiency of resource use and factors affecting household income

Methodology:

Source of Data Dairy farming heavily depends on resource availability which varies between different regions of the country. Again, farming potential depends on agroecological and economic status of the region. Hence, five different study sites were selected purposively from all over the Bangladesh in order t o economise time and labour. These were (i) south-west region (Jessore district) (ii) northern hill sties (Sherpur district) (iii) industrial zone having high employment opportunity (Gazipur district) (iv) north-west region of the country (Bogra district) and (v) mid-region of the country (Mymensingh district). These five regions were considered as the five strata of the whole sampling technique. One Upazila from each of the regions was selected. Three adjacent villages from each Upazila were selected using random sampling technique. A total of 280 cattle farmers from the selected villages were interviewed by structured questionnaire. Dairy farmers were divided into lower income group (monthly income less than Tk.5000, medium income group (monthly income Tk.5000-14999) and upper income group (monthly income Tk.15000 or more Feeds have been the primary inputs affecting milk production. The cost of milk production studies (Raut et al., 1975) had shown that feeds constituted three-fourths of the total cost of milk production. Feeds apart from labour and capital had often been used as independent variables. Labour may be varied over a certain range and is measurable but capital cost mayrelate to milk yield in fixed proportions and may, therefore, dominate all other variables in accounting for the total variation in the regression. In our model we used capital as an independent variable to examine the variation in milk production due to variation in capital.

Source of Information: Bangladesh J. Agric. Econs. XXXIII, 1& 2 (2010) 71-81

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

Milk production of crossbreed was found significantly higher than that of indigenous cow. Farmer's education was positively associated with technical efficiency in milk production. Some important predictors of household income were identified. Analyses further suggested that milk production of local breed and crossbred cow can be increased by 41% and 40%, respectively by increasing the farmer's technical efficiency with the same resource base and technologies. The study recommended that all the livestock farmers should be given training on technical aspects of milk production and livestock health with a view to increasing milk production.

Knowledge Management: Journal