Study on Economic Profitability of Small Scale Commercial Dairy Enterprises in Some Selected Areas in Dhaka Division of Bangladesh

Abstract

The study was carried out to assess the farm profitability of the small scale dairy enterprises in some selected areas in Bangladesh. To describe and examine the current socioeconomic profiles of the dairy farm owners, farming practices on production & management system, farm profitability, overall marketing channels and identified few problems of dairying are the specific objectives of the study. The research was conducted in five upazilas, namely Belabo, Monohordi, Shibpur, Raypura, Bajitpur and Kapasia under Narsindi and Gazipur District in Dhaka Division. Data were collected primarily by using a structured questionnaire from a total of 50 small sizes, 75 medium sizes and 35 large sizes commercial dairy farms. Finally, the collected data in total 40 small sizes, 75 medium sizes and 35 large sizes commercial dairy farms were analysed and took as a sample farms for the study. In this study evaluated the current socio economic profiles, production and management systems with disease occurrences of small scale dairy farms under different categories of farms. The study was also examined the costs, returns, farm profitability and marketing channels of different categories of farms. The Gross margin per cow per lactation year over cash were estimated at Tk.68,475, Tk.62,248, Tk.75,374 and net return over total costs were also estimated in Tk.44,525, Tk.34,287, Tk.48,389, respectively for small, medium and large farms. The Benefit Cost Ratio (BCR) were accounted for 1.65:1, 1.44:1 and 1.69:1, respectively for small, medium and large scale commercial dairy farms. Finally, the study identified some crucial problems of rearing of small scale commercial dairy cows adjacent Upazila head quarter’s areas. These were high prices of feeds & fodder, low and irregular prices of milk, scarcity of quality feeds & fodders, conception failure, variation in market demand of produced milk and inputs, insufficient Vet. Care & services, occurrences of diseases distance of A.I. point, lack of training & extension work, fraudulent practice by milk traders and daily labours, non availability of good bull/semen, lack of credit facilities and feed poising and mineral deficiency were the main problems for small scale dairy farm owners. If those problems could be reduced justifiably the small scale dairy farm owners and youth group of people would be interested in dairying practices commercially.