Financial analysis of dairy farming in selected areas of bangladesh

Abstract

Abstract : The study was undertaken to examine the profitability and resource use efficiency of : : dairy farming under traditional and commercial management at rural households and farms. For obtaining information from farmers two milk producing districts namely Sirajgonj and Gazipur were selected puiposively for this study. Data were collected from dairy farmers using pretested questionnaire during April to July, 2011. Productive performance, cost of farming and returns were collected to determine cost benefit ratios. The sample size were 200 dairy farmers including commercial and traditional farmers. The benefit-cost ratios of traditional and commercial farmers were on an average of 0.865 and 1.34, respectively. Traditional farmers decreased milk production cost by decreasing the use of labor and concentrated feed. Among all the production inputs, labor is the most dominant input for dairy production. The present study revealed that the dairy farming under commercial management was more profitable than traditional farming. Traditional farming was less profitable mainly due to small herd size, low productivity of animal and extra family labor were engaged. The returns to scale and production elasticity revealed that the dairy farmers could not use inputs efficiently. Both traditional and commercial farmers had abundant opportunities to increase output and income by using modem technologies, suitable breed and use of inputs properly.