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Impact Assessment of Go-ngo Interventions on Dairy Farming Vis-a-vis Self-managed Dairy Farming in a Selected Area of Bangladesh

Jerina Begum
Senior Scientific Officer
Socioeconomic Research Division Bangladesh Livestock Research Institute, Savar, Dhaka

Dr. Md. Taj Uddin
Professor
Department of Agricultural Economics Bangladesh Agricultural University, Mymensingh.

Most. Mahfuja Khatun
Scientific Officer
Socioeconomic Research Division Bangladesh Livestock Research Institute, Savar, Dhaka

Md. Saiful Islam
Scientific Officer
Socioeconomic Research Division Bangladesh Livestock Research Institute, Savar, Dhaka

Abstract/ Executive Summary:

With a view to address the present status of intervention received by dairy farmers in two districts of Bangladesh namely, Manikganj and Sirajganj. Altogether 165 dairy farmers were selected. The BCR were 2.2 for NGO supported and 2.3 for GO supported farmers which indicates that the dairy farming is more profitable under intervention in Sirajganj. In Manikganj, BCR is higher for dairy farmers with intervention than self- managed farmers. Financial profitability was enhanced by the amount of Tk. 26731.3 in Sirajgonj and it was also significant. On the other hand, profitability was enhanced by the amount of Tk. 8932.6 under Manikganj. Four out of six variables were found to have significant impact on gross returns from milk production for both supported and self-managed farmers. All types of dairy farmers have scope to attain full efficiency in milk production by reallocating the resources. Ravallion test results showed that the income was increased by the amount of Tk. 25400.6 in Sirajganj and Tk. 27133.7 in Manikganj due to intervention. Expenditure elasticity was also estimated at 0.40% and 0.27% for Sirajganj and Manikganj, respectively. The asset pentagon approach shows that there is a noteworthy improvement based on different capitals.

Keywords: Productivity, Profitability, Income, Expenditure, Livelihood

Location: Manikganj and Sirajganj

Start Date: 01-07-2013

End Date: 30-06-2015

Program Area: Socio-economic and Policy

Non-commodity: Performance, Income generation

Objectives:

1. To estimate comparative productivity and profitability between intervention and self-managed dairy farmers

2. To assess impacts of interventions on farmers’ employment, income and livelihood pattern

3. To identify major constraints and recommend solutions for necessary improvement.

Methodology:

Study areas were purposively selected from 02 (two) Upazilas in each Sirajganj and Manikganj district. The selected Upazilas were Ullapara and Shahjadpur under Sirajganj district and Shibalaya and Singair under Manikganj district. Altogether 165 dairy farmers were selected from two districts. The purposive random sampling technique was followed to select dairy farmers. A combination of descriptive, statistical and mathematical techniques was applied to get the meaningful results. Productivity was measured as the ratio of farm’s total outputs to its inputs. Profitability of dairy farming from the view point of individual farmers was measured in terms of gross return and benefit cost ratio (undiscounted). Productivity can be defined as the ratio of farm output to input used or resource used. This productivity was measured from physical point of view for dairy farming under GO-NGO interventions and self-management practices. Profitability was derived in terms of gross return, gross margin, net return and benefit cost ratio (undiscounted). Here, gross return is the summation of monetary value of net change in inventory of dairy and dairy production. The net change in inventory was estimated by using the following formula: Net change in inventory = (Closing stock + Consumed/Gifted/Died +Sold) - (Opening stock + Bought). The benefit cost ratio (BCR) is a relative measure which is used to compare benefit per unit of cost. BCR was estimated as a ratio of gross returns and gross costs. Cobb-Douglas production function model was used to determine the effects of key variables on milk production. To identify the most important variables in the production process of milk of dairy farms, the following specification of the model was made as follows: Y = a X₁^b1 X₂^b2 X₃^b3 X₄^b4 X₅^b5 X₆^b6 e^ui. The Cobb-Douglas production function was transformed into following logarithmic form so that it could be estimated by the ordinary least squares (OLS) method as follows: In Y = In a + b₁ In X₁+ b₂ In X₂ + b₃ In X₃ + b₄ In X₄ + b₅ In X₅ + b₆ In X₆ +u_i, Where, Y = Value of milk yield (Tk. /Yr); X₁= Labor cost (Tk. /Yr); X₂= Paddy straw cost (Tk. /Yr); X₃= Green grass cost (Tk. /Yr); X₄= Concentrate feed cost (Tk. /Yr); X₅= Veterinary cost (Tk. /Yr); X₆= Housing cost (Tk. /Yr); ln = Natural logarithm; a = Constant/intercept; b₁_, b_2…..b₆= Production coefficients of the respective variables; and ui = Error term. The impact of dairy farming program of NGO on income generation was measured by using the before and after comparison. To address the livelihood patterns of the respondents, the sustainable livelihood framework analysis including the asset pentagon (human capital, social capital, natural capital, physical capital and financial capital) was followed.

Source of Information: BLRI. Annual Report 2014. Bangladesh Livestock Research Institute, Savar, Dhaka-1341.pp 41.

Article Link (Online Journal):

Funding Source:

1. Government	Budget: Four Lakh
2.	Budget: Four Lakh

Total Budget (Tk.) : Four Lakh

Achievement/Findings:

The BCR were 2.2 for NGO supported and 2.3 for GO supported farmers which indicates that the dairy farming is more profitable under intervention in Sirajganj. In Manikganj, BCR is higher for dairy farmers with intervention than self- managed farmers. Financial profitability was enhanced by the amount of Tk. 26731.3 in Sirajgonj and it was also significant. On the other hand, profitability was enhanced by the amount of Tk. 8932.6 under Manikganj. Four out of six variables were found to have significant impact on gross returns from milk production for both supported and self-managed farmers. All types of dairy farmers have scope to attain full efficiency in milk production by reallocating the resources. Ravallion test results showed that the income was increased by the amount of Tk. 25400.6 in Sirajganj and Tk. 27133.7 in Manikganj due to intervention. Expenditure elasticity was also estimated at 0.40% and 0.27% for Sirajganj and Manikganj, respectively. The asset pentagon approach shows that there is a noteworthy improvement based on different capitals.

Knowledge Management: Report/Proceedings