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Vol 4, No 1 (2014):
Advances in Agriculture,
Advances in Agriculture, Sciences and Engineering Sciences and Engineering
Research
TABLE OF CONTENTS
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Research, Vol 4, No 1 (2014) SMALL SCALE DAIRY ...
Kober, Bari, Nath, Chakma
All
1 Department of Dairy and Poultry Science, Chittagong Veterinary and Animal Sciences University, Khulshi, Search
Chittagong - 4225, Bangladesh CLOSE
2 Faculty of Veterinary Medicine, Chittagong Veterinary and Animal Sciences University, Khulshi, Chittagong -
* Requires REGISTRATION
4225, Bangladesh. E-mail: HUMAYUNA2002@YAHOO.COM
ABSTRACT
The study was conducted to assess the dairy cattle management systems at smallholder
village level in sadar upazilla of Rangamati and Khagrachari district of Bangladesh during
the period of July 2013 to September 2013. A total of 7 dairy farms having 62 crossbreds
(Holstein-Friesian, Sahiwal, Red- shindhi) and 9 indigenous/local cows were surveyed for
individual and farm data using preset questionnaire and close observation of farming
system. Number of crossbred cows was more than indigenous cows in the studied farm.
The average lactation periods were 274.28 6.07 and 155.00 5.00 days and the average milk
productions per cows per day were 8.71 1.04 and 1.78 0.57 liters in crossbreed and
indigenous cows of studied farms respectively. The milk yield and different expenditure
were higher in crossbreds than indigenous cows. Profitability of indigenous cow was low
in comparison with crossbred cows. The farmers are facing many problems in dairy cattle
rearing and farmers are also provided with possible suggested recommendations.
Therefore, ensuring adequate veterinary care, feed and fodder, proper training, fixation of
price of milk at reasonable level are proposed for profitability.
KEYWORDS: Dairy cattle, small scale, management, hilly area
Received for Publication: 27/11/13 Accepted for Publication: 07/01/14
INTRODUCTION
Dairy industry is one of the fastest expanding industries in the world. About 25 percent people are directly
engaged in livestock sector and 50 percent people are partly associated in livestock production in Bangladesh
[1]. Livestock sub-sector contributed about 13.5% to total agricultural GDP with the growth rate of 5.49% in the
year of 2006-2007 where as 13.3% and 2.41%, respectively are estimated for the year of 2007-2008 [2]. It was
estimated that there were about 22.9 million cattle, 1.21 million buffaloes, 20.8 million goats, 2.68 million sheep,
207 million chickens and 39 million ducks in Bangladesh in the year 2006-2007 [1]. In Bangladesh about 80%
to 85% of the household keeps livestock in the rural area. Most of the landless, marginal and small farmers keep
indigenous livestock [3]. Majority of the cattle of Bangladesh are non descriptive types, which do not belong to
any specific breed and termed as indigenous breed. The dairy farm of Bangladesh generally consists of
indigenous breeds, different temperate and tropical breeds as well as their crossbreds i.e. Holstein-Friesian,
Jersey, Sahiwal and Red-shindhi [4]. The indigenous cattle are smaller in size and their milk production capacity
is lower than exotic breeds. The crossbred cattle produce 5-10 liters milk per day [5, 6, 7]. The average milk
production of zebu type cattle is 0.5-2.5 liters per day [3]. The goal of dairy farming in Bangladesh is to make
profit from milk production. The farm profitability depends on how many cattle to be run, which genotype /
breed is most suitable, what type and level of supplementary feeding is required, the area to be cultivated for
fodder, the amount of feed to be conserved to meet up the period of feed shortage and how to breed the cattle
effectively. Studies on the economics of small holder dairy farming under the government support programs in
Bangladesh have shown that dairying is a profitable business and the profitability is greater with crossbred than
local cattle [8].
Advances in Agriculture, Sciences and Engineering Research: Volume 4 (1) Jan: 1445 -
1452, 2014
The changing economic scenario throws open the challenges as well as the underlying opportunities to increase
milk production with the help of scientific breeding, feeding and management of huge livestock Bangladesh
possesses so that milk supply side matches the demand side effectively. Dairying in Bangladesh has traditionally
been a small holders' enterprise. As the demand for milk and milk product is increasing rapidly, a shift in the
production paradigm is quite visible. The milk producers are scaling up their milk production capacities and
adopting dairy farming on commercial lines to tap the market opportunities. Mini-dairy farms have been
developed mostly in urban and semi-urban areas where farmers prefer crossbred cows for producing milk [9].
Milk constitutes the most important source of nourishment for both vegetarians and non-vegetarians, for young
and old alike. Rearing of dairy cattle has been increasingly viewed as a means of alleviating poverty in
Bangladesh and is believed to improve the livelihoods of landless and small households. Many non-
governmental organizations (NGOs), such as Proshika Manobik Unnayan Kendra (PROSHIKA), BRAC
(Bangladesh Rural Advancement Committee), Grameen Bank and Aftab Dairy are involved in the promotion of
micro-credit for small livestock enterprises including dairy cattle. As a result many commercial dairy farms have
come up in the country.
Investment pattern on a dairy farm largely depends on the returns obtained from them. The production cost and
gross returns for mini dairy farms were higher in large farms, compared to small and medium farms [10].
Observing the cost of production is one of the foremost factors that one has to inevitably consider in accessing
any commercial enterprise. The profit of the firm can be maximized either through maximization of returns or
minimization of cost. Individual producer have little control over returns being largely dependent on external
environment of the firm. Hence cost minimization is an important tool in the hands of entrepreneur through
which profit could be maximized. The studies on the commercial dairy farms reported that feed cost was the
major cost component in the total expenses [11, 12, 13]. There were a large inter farm-group variations
regarding cost of milk production and earnings. The study on maintenance cost per milk animal [2] showed that
the major items of maintenance cost were feed, human labour and interest on working fixed capital. However,
few studies have examined the present management system, to determine cost and benefit, to identify constrains
and to make recommendations for development of such small dairy farms in hilly area of Bangladesh
(Rangamati and Khagrachari district).
Therefore, the present study was undertaken to know the present status regarding feeding, housing, breeding,
milk production, marketing system of small scale dairy farms in hilly area as well as their profitability analysis.
MATERIALS AND METHODS
Study area
The present study was conducted in Sadar upazillas of Rangamati and Khagrachari District of Bangladesh
during the period of July 2013 to September 2013. A total of 7 dairy farms were selected having at least 4 to 6
milking cows by random sampling method from the selected area. The study dairy herd consisted of 62
crossbreds (Holstein-Friesian, Sahiwal, Red- shindhi ) and 9 indigenous/local cows. Data were collected from
the dairy farms located in the Modhupur, Ferachara and Newzealand road of Khagrachari sadar as well as Pathor
ghata, Tabalchari and Asam Bosti of Rangamati sadar.
Data collection
A structured questionnaire was designed and used for the collection of the required information related to farm
size, types of animal, types of housing, length of lactation, milk yield per day per cow, types of fodder used,
items and quality of supplying feed stuffs, selling price of milk, feed cost, labor cost and other costs to estimate
the net profit of farms. Data were collected through face to face interviewing of farmer and personal visits to the
randomly selected small scale dairy farms. The average daily milk yield per cow was calculated by the total
quantity of milk per day divided by the total number of cows of each farm for both indigenous and crossbred
cows. Total asset value, variable cost and income were also calculated. Total asset value includes mainly fixed
cost including possession of land, land for housing, pasture land, farm building, equipments, current animal
value, interest of bank loan, depreciation cost of building and farm equipment. Variable cost includes feed cost
per month, labor cost, medication, vaccination, artificial insemination, treatment cost, transportation cost,
electricity cost and maintenance cost. Income from farm output includes milk sale (total income per month), live
animal sale (replacement stock sale,
Advances in Agriculture, Sciences and Engineering Research: Volume 4 (1) Jan: 1445 - 1452, 2014
culled cow/bull) and animal by products sale. The farmers sell their milk directly to the consumers or middle
man (Farias / ghosh). Then middlemen sell their milk to the retailers or sweetmeat shops who sell it to the
consumers. The farm profit was calculated by deducting all variable cost from gross returns. Deducting all costs
from gross returns arrived at a net return from the farm [14].The following equation used for estimating net
return from the farm,
, Where, TI=Total income and TC=Total cost
Variable Costs
These costs include feed cost, labor cost, veterinary cost and other miscellaneous costs.
Feed cost: The cost involved on green fodder, dry fodder and concentrate to feed the animals constituted feed
cost. It was worked out by multiplying quantities of feeds and fodder consumed by animals with their respective
prevailing prices in the study area. All the commercial farms adopted collective stall-feeding of their animals. To
apportion the joint costs on feeds and fodder, standard animal units approach was applied.
Labor Cost: It included family members as well as paid hired labor. The hired labor was calculated considering
time utilized in various dairy activities and wages paid. In case of family labor, the imputed value was taken as
per the prevailing wage rate of casual labor in the study area.
Veterinary Cost: It included the cost involving on natural service, artificial insemination (AI), vaccination,
medicines and other charges/fees of veterinary doctors.
Miscellaneous Costs: The cost of repairs, electricity, water charges, bucket, rope, etc. were included in this
group.
Gross Cost: It was obtained by adding all the cost components included in the fixed and variable costs, i.e.
Gross Cost = Total Fixed Cost + Total Variable Cost
Net Cost: The net cost was calculated by deducting the imputed value of dung, from the gross cost, i.e. Net Cost
= Gross Cost - Imputed value of dung
Cost per Litre of Milk Production: In order to estimate the cost per litre of milk, the average net maintenance
cost per animal per day was divided by average milk production per animal per day
Net maintenance cost per animal per day
Cost Per Litre (TK) = -----------------------------------------------------
Total milk produced per animal per day
Gross Returns: Gross returns were obtained by multiplying milk yield of an individual animal with respective
prevailing price of milk in the study area-
Gross Returns = Quantity of milk x Market price of milk
Price of Milk: The price of milk differs according to type of milk and the season. The weighted average price of
milk was calculated for each commercial farm as
Pi. Wi
Weighted average price = ---------------
Wi
Where,
Pi is the price per litre of ith type of milk, and Wi is the total quantity in volume of ith type of milk sold by the
farm.
Advances in Agriculture, Sciences and Engineering Research: Volume 4 (1) Jan: 1445 - 1451, 2014
Net Returns: Net returns were calculated by subtracting net cost from gross returns, i.e.
Net Returns = Gross Returns - Net Cost
Profitability
The profitability of each category of farm was worked out on the basis of milk supplied to various agencies, milk
retained at home and net returns over cost per litre of milk produced. The price of milk per litre and the price of
calf were estimated at 50 taka and 8000-15000 taka respectively. The labor cost was also estimated at 150- 170
taka per labor per day.
RESULTS AND DISCUSSION
Types of Dairy Cattle
The studied farm had indigenous/local cows and crossbred cows. It was found that, number of crossbred cows
was more than indigenous cows in the farms (Table 1). Highest 90.91% crossbred cows were found in the study
area and these findings agreed with the findings of [15] who reported that crossbred animals were more in mini
dairy farms. The milk yield and different expenditure were higher in crossbreds than indigenous cows. The
temperate breeds and their crossbreds produce more milk were reported by [16]. For this reason farmers are
interested in rearing more crossbred cows than indigenous.
Table 1: Types of dairy cattle in the studied farm
Farms Crossbred (Freq. %) Indigenous breed (Freq. %) Total
Farm-1 10(90.91) 01(9.09) 11
Farm -2 11(84.62) 02 (15.38) 13
Farm -3 08 (88.89) 01(11.11) 09
Farm -4 13 (86.67) 02 (13.33) 15
Farm -5 07 (87.50) 01(12.50) 08
Farm -6 06 (85.71) 01(14.29) 07
Farm -7 07 (87.50) 01 (12.50) 08
Total 62 (87.32) 09 (12.68) 71
Production performance
It was found that the average daily milk yield of crossbred and indigenous cows were 8.71 1.03 and 1.78 0.56
liters respectively (Table 2). The crossbred cows produce more milk than indigenous cows in studied farm.
Farms with crossbred cow are more profitable than indigenous reported by [10].
Table 2: Average per day milk yield and lactation length of the cows in the studied farms
Farms Milk yield (liter per cow per day) Lactation length(day)
Crossbred Indigenous breed Crossbred Indigenous breed
Farm -1 10.0 2.5 280 160
Farm -2 8.5 2.0 280 160
Farm -3 7.5 1.0 265 150
Farm -4 10 2.5 280 160
Farm -5 9.0 1.5 275 150
Farm -6 8.5 1.5 270 155
Farm-7 7.5 1.5 270 150
Mean (Average) 8.71 1.03 1.78 0.56 274.28 6.07 155.00 5.00
Advances in Agriculture, Sciences and Engineering Research: Volume 4 (1) Jan: 1445 - 1452, 2014
The average lactation period of the crossbred and indigenous dairy cows were 274.28 6.07 and 155.00 5.00 days
respectively (Table 2) but this findings is contraindicated with the findings of [17] as they reported that average
lactation period of the local dairy cows were 300.97 5.63 days.
Profitability assessment
The annual net income of dairy farms varied in between farms as presented in Table 3. This variation might be
due to variation in milk yield, the management practices of the farms and breed differences. Table 3 also
indicated that the annual income from dairy farm was ranging from taka 28,000 to taka 2, 33,000. The variable
cost includes feed cost, labor cost, treatment cost, artificial insemination cost, electric cost, transportation cost
and others. The fixed cost of the farm is more or less similar so that the fixed cost of the farm is not included in
this table. Small amount of purchase green roughage was fed to cows and the amount of maximum green
roughage comes from roadside, crop field, river side etc. The income from dairy farm includes annual milk sale,
live animal sale (heifer /bull calf, culled cow) and selling of byproducts (dung). The profitability of each farm
was calculated by dividing the total farm income with total number of animals of the farm. Farm-1 and farm-2
were located in the same places. Their housing, feeding management and operational cost was similar but the
profitability of the farms differs due to crossbred cattle. Temperate crossbred cattle shows higher profitability
than tropical crossbred cattle. Crossbred Sahiwal x Pabna and Holstein-Friesian x Local showed higher
profitability than Sahiwal and Red-Sindhi cross [16]. In farm-3, farm-4, farm-5 and farm-6 farm-7 crossbred
were similar in type but their profitability also varies. It might be due to variation in management practices and
operational cost.
Table 3: Annual net income of selected dairy farms
Items Farm -1 Farm-2 Farm -3 Farm -4 Farm -5 Farm-6 Farm-7
Income
Milk sale(tk) 965730 1113250 784750 1505625 848625 620500 666125
Animal &by 38000 38600 29000 51600 27600 21000 22000
product(tk)
Total income(Tk) 1003730 1151850 813750 1557225 876225 641500 688125
Cost
Feed cost(tk) 628855 759200 558450 1095000 617580 423875 494940
Labor cost(tk) 109500 110400 100800 158775 108000 98550 104025
Treatment +AI cost (tk) 23700 29400 35000 36400 25800 23450 35450
Electricity cost 12670 13480 10500 14400 8640 7150 8570
Livestock Operation.
[19] Directorate of Livestock Services (DLS), (2008). Directorate of Livestock Services, Bangladesh, from
HTTP://WWW.BBS.GOV.BD/DATAINDEX/PB_WB_PAGE.PDF and
HTTP://WWW.DLS.GOV.BD/ABOUT_US.HTM
[20] Hossain, M.S., Beg, M.A.H., Hossain, M.M. and Afrose, S. (2004). Existing livestock production and
utilization system in a coastal area of Patuakhali district. Bangladesh Journal of Education and
Technology. 7 (1&2): 25-28.
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