An Economic Analysis of the Smallholder Dairy Farming: A Case Study in Muktagacha Upazila, Mymensingh

Abstract

The present study was conducted to analyze the smallholder dairy farming sector in the rural areas of Bangladesh from an economic viewpoint. In this study we tried to find out the factors affecting dairy income and milk productivity, comparing the results from crossbred and indigenous cows and also found out the various constraints faced by smallholder farmers in dairy farming in rural areas of Muktagacha Upazila. Primary data was collected from four different villages at Muktagacha Upazila in the Mymensingh division. The sample size was 40 cattle farmers. They were interviewed through a survey questionnaire. To analyze farmer’s income and milk production in relation to economic factors two econometric and economic models were used as Multiple regression models and the cobb-douglas production function. From the survey, it was found that dairy farms owned on average 3.07 milking cows comparing .37 indigenous and 2.70 crossbred cows. In selected areas, most of the dairy farmers own about 3.07 milking cows where maximum cows are crossbred cows and a small number of cows are indigenous. At present time due to price rise in every sector. Dairy farmers in rural areas also need to find ways to produce more at the lowest cost. Milk productivity was 6.90 liter per cow per day, in crossbred whereas indigenous cows provided only 1.9/2.00 liter per day and total productivity was 12/13kg. From the average viewpoint it was found that, in large farms, the productivity was large compared to the small firms or households. We also tried to estimate the average monthly income from the firm. From this study finding it is clear that cross-bred cows are providing higher economic benefits to the dairy farmers compared to the indigenous breeds. With the improvement in every step such as training programs, food cost, proper farm management, proper treatment of the cows, and farming experience are highly related to the monthly income and milk productivity. Now a day, smallholder dairy farming is a progressive economic sector despite various constraints.