Economics of Small Scale Dairy Farming in Bangladesh under the Government Support Programme

In this study the financial performance of small scale dairy farms participating in the government subsidy programme and the impact of this government intervention on the number of animals owned, production and consumption of milk and labour employment in the farm households have been examined. After receiving the subsidy, dairy farmers expanded their herd size. The major changes occurred in the ownership of calves, heifers and cows in all categories of farms. Significant increases in production and consumption of milk as well as in labour employment were observed. The rates of increase for all the parameters studied were much higher in farms adopting cross breeding compared to those in only local-breed farms. The analysis showed that dairying was a profitable business. However, profitability was greater with cross-bred than with local-bred animals.