Profitability and Factors Affecting Milk Supply: An Empirical Study on Dairy Farms in Chittagong District of Bangladesh
Swarup Barua *
Department of Agricultural Marketing and Business Management, Sylhet Agricultural University, Sylhet, Bangladesh.
Mohammad Jahangir Alam
Department of Agribusiness and Marketing, Bangladesh Agricultural University, Mymensingh, Bangladesh.
Shaikh Abdus Sabur
Department of Agribusiness and Marketing, Bangladesh Agricultural University, Mymensingh, Bangladesh.
Md. Mostafizur Rahman
Department of Agricultural Marketing and Business Management, Sylhet Agricultural University, Sylhet, Bangladesh.
Onik Chandra Das
Department of Agribusiness and Marketing, Bangladesh Agricultural University, Mymensingh, Bangladesh.
*Author to whom correspondence should be addressed.
Abstract
It was an attempt to examine the profitability and factors affecting milk supply of dairy farms in selected areas in Chittagong District. Primary data were collected from both milk producers and traders during the months of August to September 2015. Simple descriptive method and stepwise multiple regression models were used to analyze the data. The return over investment indicates that dairy farming is a profitable business in Chittagong District. Stepwise multiple regression models were specified and estimated to identify the factors affecting of milk supply of dairy farmers. Regression analysis revealed that three variables i.e., number of milking cows, the age of household head and experience of dairy farming, as important factors affecting sale volume of milk. The survey result identified that the supply of milk trading was predominantly traditional, fragmented and only one cooling plant which has limited capacity but no other formal agreement either collectors or farmers. As a result, most of the surplus milk absorbed by the sweetmeat shops.
Keywords: Profitability, marketing costs, margin, milk supply.