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An Economic Analysis of Dairy Milk Production in a Selected Area of Rangpur District

R. Sultana
MS student
Department of Agricultural Economics, Bangladesh Agricultural University Mymensingh

S. Haque
Department of Agricultural Economics, Bangladesh Agricultural University Mymensingh

M. A. Rahman
Department of Agricultural Economics, Bangladesh Agricultural University Mymensingh

M. H. Rahman
Department of Agricultural Economics, Bangladesh Agricultural University Mymensingh

Abstract/ Executive Summary:

The present study was undertaken to analyze the cost and returns and to explore the interrelationship of factors affecting yield, cost and net return. Dairy farming with crossbreds was studied in 5 villages of Rangpur Sadar Upazila in Rangpur district. The total.cost of raising per crossbred dairy cow per lactation period was estimated at Tk 21290.16. Feed cost was the largest single cost item of raising dairy cows. Feed cost constituted 65.40 per cent of the total cost for crossbred dairy cows. The total return was estimated at Tk. 42636.95 for a crossbred dairy cow. The value of milk production represented 84.22 per cent of total returns. The respective net return was Tk 21346.79 for crossbred dairy cows. The average milk yield per cow was 2394 liters. The study also examines how some indirect factors, namely farm size, income, educational status etc; and a number of direct factors viz. labour cost, feed cost, cost of capital, veterinary cost affected the level of yield and net return.

Keywords: Dairy farming, Resource use efficiency, Production efficiency

Location: Darshana and Mominpur under Sadar upazila of Rangpur district

Start Date: 00-07-2003

End Date: 00-08-2003

Program Area: Socio-economic and Policy

Non-commodity: Income generation

Objectives:

i) To study the cost and return of milk production of crossbred dairy cows;

ii) To examine the interrelationship of major factors affecting yield and net return; and

iii) To explore the productivity and efficiency of resource use in milk production.

Methodology:

Five villages namely Binodpur, Harirarnpur, Nazirdigar, Janpur and Maheshpur of two unions Darshana and Mominpur under Sadar upazila of Rangpur district were purposively selected for the study. From the selected villages, a list of farmers who raised at least one crossbred milking cow was prepared. Thus 5 such lists of 5 villages were prepared and 10 farmers were randomly chosen from each village. Therefore, in total 50 sample farms were chosen for collecting data for the purpose of this study. Data were collected during the months from July 2003 to August 2003. Both Tabular and statistical techniques were used for analyzing data. In this study, cost items consist of feeds, labour, housing, veterinary and cost of capital that is interest on the value of cow. On the return side, total returns and net returns over total costs on a lactation period were determined and analyzed in the study. The returns from dairy cows included returns from the sale of milk and cowdung, other purpose uses and calf. The returns from milk were calculated on the basis of the average quantities of milk yield per cow and average price received per liter of milk. Returns from cowdung were found out by taking average price at which cowdung was sold in the study areas. The average price of cowdung sold in the study areas was Tk 0.45 per kg. Cain from other purpose use includes gains from ploughing, threshing, etc. Lastly the returns from calf were calculated by dividing the value of calf with age of the calf in number of days at the time of data collection. In the study area, for production of milk, the following inputs namely paddy straw, green grass, concentrate, labour, capital etc; are employed which were considered as a priori explanatory variables and these explanatory variables were considered to be mostly responsible for producing milk. To explore the effects of variable inputs, Cobb- Douglas production function model was estimated.

Source of Information: Progress. Agric. 15(1) : 77-87, 2004, ISSN 1017-8139

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

On the basis of the above findings, all of the resource use efficiencies of the inputs were positive and two of them are more than one which indicates that more profit can be obtained by increasing each input included in production function. The inputs whose resource use efficiencies was positive but less than one is to be adjusted to unity depending upon the MVPs to achieve full efficiency. The overall production performance of dairy farming is, however, profitable.

Knowledge Management: Journal