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Journal of Animal and Veterinary Advances

Year: 2003  |  Volume: 2  |  Issue: 1  |  Page No.: 4 - 11

Land Holding, Herd Status and Economics of Buffalo Milk Production at Commercial Dairy Farms in Peshawar Division

Jamal, S., M. Syed, M. Farooq, Nazir Ahmad and S. K. Hamid


division were collected to investigate land holding, herd status, cost of production, gross income and net profit per buffalo. A higher proportion (69%) of the farms was owned by landless farmers than big landholder (9.23%) indicating majority of the landless farms in peri-urban areas (83.3%) than in rural areas (56.9%). Average herd size was 39.66?9.87 buffaloes, representing significantly larger herd size in peri-urban (56.33?36.43 buffaloes0 as compared to rural areas (28.33?3.92 buffaloes). Big landholders were maintaining a larger herd size (66?24.78 buffaloes) than medium size landholders (25?2.82 buffaloes). Average fixed cost per farm was Rs. 1433433.2?722.436, represeenting higher cost per buffalo for dairy farms located in peri-urban farms (Rs. 80.80?7.96). Cobb-Douglas production function explained the relationship between two majo sources of variable cost (labour and feed) and income per animal per day. Constant Elasticity Subsstitution (CES) production function did not converge when fitted to economic data of the 130 farms. Significantly higher (P<0.05) variable cost per buffalo/day was found for landless farmers (Rs. 100.95?2.96) as compared to bigh landholders (Rs. 61.71?5.33). Average feed cost per buffalo per day was Rs. 66.83?2.14, representing Rs. 12.31?0.33 as feed cost/kg milk produced. Feed cost contributed 76.64?0.81% to total variable cost of production. Feed cost per animal/day (Rs. 75.33?4.70) and per kg milk produced (Rs. 10.31?0.69) was significantly higher (P<0.05%) in urban than in peri-urban dairy farms (Rs. 62.83?3.41 and Rs. 8.53?0.41, respectively). Average labor wages per buffalo/day in commercial dairy farms were Rs. 11.24?0.57, representing Rs. 1.65?0.08 as labor wages per kg milk. Labor wages were the second majo components of variable cost of production contributing 13.35?0.81% to total variable cost of production. Average miscellaneous, medicinal and utility cost per buffalo/day in commercial dairy farms were Rs. 6.82?0.43, Rs. 0.90?0.08 and Rs. 0.48?0.02, respectively, Net income per buffalo/day was Rs. 58.83?8.25 and found negatively correlated (r=-0.44; P<0.001) with total cost of production. Significantly higher (P<0.05) net profit per buffalo/day was obtained in peri-urban farms (Rs. 69.53?10.96) than at dairy farms in rural areas (Rs. 47.44?13.83). Net profit per buffalo per day was Net profit buffalo per day was significantly higher (P<0.05) for medium lanholders (Rs. 62.32?8.67) than that for landless dairy farmers (Rs. 52.38?3.87). Reduction in feed cost through farm grown fodder and maintenance of large herds of higher yielding buffaloes were suggested as key factors for maximum net profit.