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A Study on Determination of Dairy Cattle and Poultry Production Coefficient.

M. Taj Uddin
Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh-2202

M. M. Islam
Socio-economics Research Division, Bangladesh Livestock Research Institute, Savar, Dhaka 1341.

Abstract/ Executive Summary:

The study was conducted in three districts of coastal regions, namely Noakhali, Patuakhali and Satkhira, to estimate the income from livestock production, determine production coefficients of dairy cattle and poultry rearing, and analyze the efficacy of resources used. A total of 360 dairy cattle and poultry rearing farmers (180 dairy cattle and 180 poultry) were previously selected for data collection. Primary and secondary data were collected and analyzed following a combination of descriptive analysis, sensitivity analysis, statistical method and mathematical technique. The study revealed that average annual income from dairy and poultry rearing were 29% and 8% respectively of the total farm income which was 83%. The estimated coefficients of income and related statistics of Multiple Regression model indicated that some variables (year of schooling, income from other sources, training on health management, vaccine and medication) were found to have significant impact on gross returns from both dairy cattle and poultry rearing. However, the values of R2 and F-statistic indicated that all the explanatory variables were important for explaining the variations in gross return. Moreover, the sum of the coefficients of all inputs (1.183 for dairy cattle and 1.412 poultry rearing) implied increasing return to scale as well. The ratios of marginal value product (MVP) and marginal factor cost (MFC) of all the inputs were not positive. These inequalities indicate that the farmers in the study areas have failed to show their efficiency in using all the resources. The study revealed that the most crucial inputs to acquire higher returns from dairy cattle and poultry rearing are training on health management and timely and adequate delivery of vaccination and medication. It may be concluded that both dairy cattle and poultry rearing farmers in the study areas have scope to attain full efficiency by reallocating the resources.

Keywords: Dairy cattle, Poultry, Production, Coefficient.

Location: Noakhali, Patuakhali and Satkhira, livestock production.

Start Date: 01-07-2011

End Date: 30-06-2012

Program Area: Farming System

Non-commodity: Income generation

Objectives:

The overall objective of the study is to determine the production coefficient of dairy cattle and poultry in selected area of coastal region. The specific objectives are as follows: 1. To estimate the income from livestock production and its contribution to farm income; 2. To determine the coefficient of income generated from dairy cattle and poultry; and 3. To measure resource use efficiency of the relevant factors.

Methodology:

Study area: Study areas were selected from five Upazilas of three districts namely Noakhali, Patuakhali and Satkhira as coastal regions. From each district, at least one Upazila was purposively selected as the study location considering the concentration of dairy cattle and poultry rearing. The selected Upazilas were Hatia and Subornochar under Noakhali district, Kalapara under Patuakhali and Tala Upazila under Satkhira district. These have been shown from Map 2 to Map 4, respectively. In this study, 26 villages were covered for data collection. The specific study locations have benn mentioned in Appendix –A. Selection of sample: One hundred and twenty livestock farmers were selected from each of the three districts who were involved in poultry and dairy cattle rearing. Purposive sampling technique was followed for selecting the respondents. Thus, a total of 360 non-commercial dairy cattle and poultry farmers (180 for dairy cattle farmers and another 180 poultry farmers) were interviewed for the collection of necessary data and information. Data collection: Field survey method was followed to collect primary data for one year. Data were collected from respondents by using semi-structured interview schedule. The semi-structured interview schedule was developed through direct interview making personal visits to the house of selected farmers. Before beginning the interview, each respondent was given a brief description about the nature and purpose of the study. The questions and statements contained in the schedule were simple, direct and easily understandable by the respondents. The responses of the farmers were directly recorded on the interview schedule. Secondary data and information were also collected and discussed for this research from different handouts, reports, publications, notifications, etc. Data analysis: After collecting necessary data and information from field surveys, interviews, discussions, communications, consultations and interactions, those were classified, edited and coded. For analyzing the data, a combination of tabular and mathematical techniques were used to achieve the objectives and to get the meaningful results. The following techniques were used for analyzing the data: (i) Descriptive statistics (with the aid of tabular technique by using percentages, means, ratios, standard deviations, standard errors, etc.); (ii) Statistical model: Multiple Regression model was used to determine the effects of key variables. (iii) Sensitivity analysis was used to assess the effects of adverse changes of the important parameters; and (iv) Mathematical technique i.e., marginal value product (MVP) and marginal factor cost (MFC) comparison was done to measure efficiency/ inefficiency of the resources used in rearing both the enterprises. Socioeconomic Characteristics of the Livestock Farmers: Age and family size of the livestock farmers, literacy, size of land holding and annual income of the farm families were investigated to have an idea about socioeconomic condition of the sample farmers and these are briefly presented. Majority of female respondents were engaged as housewives but most of them were directly involved in home based income generating activities such as livestock rearing, vegetables production and mostly in post-harvest operation. Very few respondents were found to be engaged in activities such as salaried jobs. Occupational status of the livestock farmers has been more clearly depicted. The inventory of different livestock enterprises of the farmers for the current year is presented. The net change in inventory = (Closing stock + Consumed/ Gifted + Sold +Died) – (Opening stock + Bought). It is observed from thr table that livestock inventory was estimated at 2.57 numbers for cattle (i.e., milch cow, heifer, calf and others) and 8.48 numbers for bird (I.e., poultry and duck). Net change in inventory for all enterprises was found positive in the selected study areas.

Source of Information: BLRI. Proceedings of Annual Research Review Workshop 2011-2012, Bangladesh Livestock Research Institute, Savar, Dhaka 1341.

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The study was performed to estimate the income from livestock production, to determine the production coefficients of dairy cattle and poultry rearing, and analyze the efficacy of resource use efficiency. The study revealed that average annual income from dairy and poultry rearing was 2.04 and 5.57, respectively. This indicate that dairy cattle and poultry rearing are profitable ventures. The benefit could be still be increased by training the farmers on scientific process of livestock production. The sensitivity analysis shows that the gross margins and benefits cost ratios were strongly influenced by the factors such as the livestock inventory, price of inputs and price outputs. The production function analysis indicates that the most crucial inputs for dairy cattle and poultry rearing are training of the respondents regarding livestock health management, timely vaccination and medication and adequate delivery of vaccines to the keepers. The production function analysis also indicates that year of schooling is one of the most important inputs affecting gross returns of livestock production. Most of the regression coefficients had positive and statistically significant value for dairy cattle and poultry rearing farmers with higher MVPs which indicates that farmers can increase gross returns by increasing the use of these resources. Currently, livestock farmers are facing some problems and the higher returns from dairy cattle and poultry rearing will depend upon successfully overcoming such constraints. Finally, it may be concluded that subsistence dairy and poultry rearing could be encouraged in Bangladesh as an effective means for income generations and employment creation which will ultimately reduce poverty and improve overall livelihood.

Knowledge Management: Report/Proceedings