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Economics of Beef Cattle Production in Selected Areas of Bangladesh

M. M. O Rashid
Corresponding author
Dept. of Basic Science, Patuakhali Science and Technology University, Patuakhali, Bangladesh

M. Kamruzzaman
Dept. of Agri. Economics, Bangabandhu Agricultural University, Gazipur, Bangladesh.

Abstract/ Executive Summary:

Almost all beef cattle in the study area were produced by small-holder farmers. The beef cattle were raised in an extensive way for use of some draught power and wealth accumulation purposes. Input availability is a major challenge for farmers associated with their poor resource utilizing capacity which limit beef cattle productivity. This study reports a survey that was conducted to describe the beef cattle production elasticity and resource use efficiency of small-scale farmers in Bangladesh. Eighty farmers raising beef cattle in Sirajgong and Gazipur districts were randomly selected for an interview in 2011. On an average, the interviewed farmers raised 9 beef cattle per household. A herd size of at least 5.66 and 20.4 number of beef cattle head in Gazipur and Sirajgonj was required to cover the cost of production at the prevailing prices. Among sample farmers, Gazipur farmers gave higher amount of feed to their beef cattle, compared to farmers of Sirajgonj. The production costs per beef cattle head were the highest in Gazipur mainly due to higher input use and lower number of beef cattle. The annual net return per beef cattle head was estimated at Tk.-576.14 and Tk.- 2919.27 in Gazipur and Sirajgonj respectively. The undiscounted benefit cost ratios (BCR) were 0.98 and 0.91 in Gazipur and Sirajgonj over total cost respectively. Therefore, the beef cattle farmers had ample opportunities to increase output by using more of those inputs. A positive relationship between farm size and amount of feed use was found in the study areas.

Keywords: Beef cattle, Production Inputs, Returns

Location: In Bangladesh

Start Date: 00-04-2011

End Date: 00-07-2011

Program Area: Postharvest and Agro-processing

Commodity: Beef, Meat

Objectives:

To describe the beef cattle production elasticity and resource use efficiency of small-scale farmers in Bangladesh.

Methodology:

The study utilized the primary data. The necessary primary data were obtained from the sample beef cattle farmers through personal interviews with the help of pre-tested and structured schedules during April to July, 2011. The data collected from the sample farmer respondents included general information about beef cattle farmers, cost, returns and management practices of farming. Two districts were selected purposively namely Sirajgonj and Gazipur and two Upazilas from each district were selected on the basis of concentration of beef cattle production. Eighty farmers raising beef cattle (40 from each district) were randomly selected for the interview. All data from the survey were stored in Windows Excel and analyzed using SPSS package. The function coefficient (ε) measures the proportional change in output resulting from a unit proportional change in all inputs, i.e., ε is the percentage change in output as all inputs are varied in some fixed proportion. The marginal physical productivity (MPP) function gives the exact rate of change of total product function for an infinitesimal change in the factors. On the other hand, the function coefficient or total elasticity of production (ε) is also called the returns to scale. When, ε = 1, ε >1 and ε <1, it will be the case of constant, increasing and diminishing return to scale. The resources are considered to be efficiency used to result in attaining the maximum profit when the ratio of marginal value product (MVP) to marginal factor cost (MFC) approaches one, or in other words, MVP and MFC for each input are equal. When the marginal physical product (MPP) is multiplied by the product price, the marginal value product (MVP) is obtained. Marginal factor cost (MFC) is the price of one unit of input.

Source of Information: Wayamba Journal of Animal Science – ISSN: 2012-578X; P1232 - P1238, 2015

Article Link (Online Journal):

Funding Source:

1.

Budget:

Total Budget (Tk.) :

Achievement/Findings:

The beef cattle production of small-holder farmers was assessed as low in terms of productivity and inputs. Farmers raised their cattle in the traditional way with low health care intervention. Cattle feeds were mainly based on natural grasses and rice straw. Providing locally available feeds was a major challenge for farmers which required high labor input, especially during the dry and flooding seasons. Lack of feed was a critical factor of farmers to expand cattle numbers. The findings of this study suggest that there exists a possibility of expansion and improvement of the beef cattle farms by adopting the technology of the best-practiced farm and through optimal resource allocation. The following recommendations are suggested for the improvement of the beef cattle production in the study area: The beef price is comparatively cheaper in the local markets, so the farmers are unable to get fair prices of their products; as a result, they become discouraged in beef production due to additional unit cost of the beef cattle farming. The government may subsidize the sub-sector and take the necessary action as well against the legal/ illegal import of beef cattle from other countries.

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