Assessing the Impact of Dairy Policies on Farm-Level Profits in Dairy Farms in Bangladesh: Benchmarking for Rural Livelihoods Improvement Policy
DOI:
https://doi.org/10.6000/1929-7092.2012.01.11Keywords:
Benchmark, dairy policies, farm profit, rural livelihoods, typical farmAbstract
Abstract: The objective of this study was to benchmark the set of dairy supporting policies on farm level profit in small-scale dairy farmers and also analyse how improved dairy support services and adoption of technologies enhance rural livelihoods. This study applies the International Farm Comparison Network (IFCN) method. The data were analysed by utilizing the extended version of TIPI-CAL (Technology Impact Policy Impact Calculations) model (TIPI-CAL software version 5.1). The improved dairy support services: marketing access (IM-MKS), veterinary services (IM-VHS), feeding and nutritional services (IM-FNS), community based fodder production system (CB-FPS), national breeding programme (NL-BRP) showed the highest impact on milk yield, entrepreneur's profit and household income in all three production systems compared with its base line farms. The extensive and traditional systems were responding more to the proposed policies to increase the entrepreneur's profits compared with intensive production systems. Adoption of policy increases the daily household income above the absolute poverty line (1US$/day). This study results could be useful for prioritizing the policies on delivery of support services and technology and are expected to be helpful as a benchmark to implement the 'draft policy proposal' by the Ministry of Fisheries and Livestock (MOFL) in Bangladesh.
References
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Batz, Franz-J., Janssen, W. and Peters, K.J., 2003. Predicting technology adoption to improve research priority-setting. Agricultural Economics 28: 151-164.
Birthal, P.S., Jha, A.K. and Singh, H., 2007. Linking Farmers to Markets for High-Value Agricultural Commodities. Agricultural Economics Research Review 20 (Conference Issue): 425-439.
Conroy, G., 2005. Participatory Livestock Research: A guide. ITDG publishing company, UK.
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http://dx.doi.org/10.2307/1229927
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Hagemann, M., Hemme, T., Ndambi, A., Alqaisi, O. and Sultana, M.N., 2011. Benchmarking of greenhouse gas emissions in milk production for 38 countries. Animal Feed Science and Technology 166-167: 46-58.
http://dx.doi.org/10.1016/j.anifeedsci.2011.04.002
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Hemme, T., Garcia, O. and Khan, A.R., 2004. A Review of Milk production in Bangladesh with particular emphasis on small-scale producers. FAO- Pro-Poor Livestock Policy Initiatives working paper No.7.
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International Dairy Federation (IDF), 2003. Milk equivalents-Draft paper. SCDCE paper. November 2003.
Isermeyer, F., 2003. Produktionsstruckturen, Produktionkosten und Wettbewerbsstellung der Milchproduktion in Nordamerika, Neusseland und in der EG. Wissenshaftsverlag Vauk, Kiel
Islam, K. M. A., Uddin, M.M., Sultana, M.N., Assaduzzaman, M. and Islam, M.N. 2010. Distribution pattern and management practices of cross bred dairy cows in cooperative dairy production system in Bangladesh. Livestock Research for Rural Development 22(12) 2010, available at: http://www.lrrd.org/lrrd22/12/amin22219.htm
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http://dx.doi.org/10.3168/jds.2010-3425
Kinkinginhoun-Medagbe, F.M., Diagne, A., Simtowe, F., Agboh-Noameshie, A.R. and Adegbola, P.Y., 2010. Gender discrimination and its impact on income, productivity and technical efficiency: evidence from Benin. Agriculture and Human Values 27, 57-69.
http://dx.doi.org/10.1007/s10460-008-9170-9
Ministry of Agriculture (MOA), 2006. A synthesis of agricultural policies in Bangladesh: Agricultural sector review. Ministry of Agriculture, Dhaka, Bangladesh. Available at: http://www.lcgbangladesh.org/Agriculture/reports/vol-3.pdf. Accessed date: November 21, 2009.
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Ndambi, O.A., Garcia, O., Hemme, T., Balikowa, D. and Latacz-Lohmann, U., 2009a. Quarterly Journal of International Agriculture 48(2): 135-154.
Ndambi, O. A., Garcia, O., Balikowa, D., Kiconco, D., Hemme, T. and Latacz-Lohmann, U., 2008. Milk production systems in Central Uganda: a farm economic analysis. Tropical Animal Health and Production 40: 269-279.
http://dx.doi.org/10.1007/s11250-007-9091-4
Ndambi, O.A., and Hemme, T., 2009b. An Economic Comparison of typical dairy farming systems in South Africa, Morocco, Uganda and Cameroon. Tropical Animal Health and Production 41: 979-994.
http://dx.doi.org/10.1007/s11250-008-9288-1
Olhan, E., Arisoy H., Ataseven, Y., Ceylan, C., 2010. Changes in livestock production support polices in Turkey and effects on production. Journal of Animal and Veterinary Advances 9(3): 570-575.
http://dx.doi.org/10.3923/javaa.2010.570.575
Rogers, E.M., 1983. Diffusion of Innovations, Third Edition, Free Press, New York
Saadullah, M., 2001. Smallholder dairy production and marketing in Bangladesh. In: Smallholder dairy production and marketing-opportunities and constraints; Proceedings of a South-South workshop held at National Dairy Development Board. Anand, India, 13-16 March 2001. Available at: http://www.ilri.org/ InfoServ/Webpub/fulldocs/South_South/ch06.htm. Accessed date: 20 March, 2010.
Sassenrath, G.F., Halloran, J.M., Archer, D., Raper, R.L., Hendrickson, J., Vadas, P. and Hanson, J., 2010. Drivers impacting adoption of sustainable agricultural management practices and production systems of the Northeast and Southeast United States. Journal of Sustainable Agriculture 34(6): 680-702.
http://dx.doi.org/10.1080/10440046.2010.493412
Shamsuddin, M., Alam, M. M., Hossein, M. S., Goodger, W. J., Bari, F. Y., Ahmed, T. U., Hossain, M.M.and Khan, A. H. M. S. I., 2007. Participatory rural appraisal to identify needs and prospects of market-oriented dairy industries in Bangladesh, Tropical Animal Health and Production 39: 567-581.
http://dx.doi.org/10.1007/s11250-007-9062-9
Staal, S., 2004. Improved Child Nutrition through Cattle Ownership in Kenya. Smallholder dairy project-Policy brief. Available at: http://www.smallholderdairy.org/publications/Policy%20briefs/SDP%20BRIEF%205-FINAL%20R.pdf. Accessed date: 11 July, 2010.
Staal, S.J., Pratt, A.N. and Jabbar, M., 2008. Dairy development for the resource poor. Part-1: A comparison of dairy policies and development in south Asia and east Africa. PPLPI working paper no. 44-1. Accessed at: http://www.fao.org/ag/againfo/ programmes/en/pplpi/docarc/wp44_1.pdf
Tarrant, J.R., 1982. Food Policy Conflicts in Bangladesh. World Development 10(2): 103-113.
http://dx.doi.org/10.1016/0305-750X(82)90041-9
Uddin, M. M., Sultana, M. N., Ndambi, O. A., Hemme, T. and Peters, K. J., 2010. A farm economic analysis in different dairy production systems in Bangladesh. Livestock Research for Rural Development. Volume 22, Article # 122. Available at: http://www.lrrd.org/lrrd22/7/uddi22122.htm
Upton, M., 2004. The role of livestock in economic development and poverty reduction. Pro-poor Livestock Policy Initiatives working paper no. 10. Food and Agricultural Organization, Rome, Italy.
van Arendonk, J.A.M. and Bijma, P., 2003. Factors affecting commercial application of embryo technologies in dairy cattle in Europe-a modelling approach. Theriogenology 59: 635-649.
http://dx.doi.org/10.1016/S0093-691X(02)01245-1
van Calker, K.J., Berentsen, P.B.M., Giesen, G.W.J.and Huirne, R.B.M., 2005. Identifying and ranking attributes that determine sustainability in Dutch dairy farming. Agriculture and Human Values 22: 53-63.
http://dx.doi.org/10.1007/s10460-004-7230-3
Van der Werf, J., 2000. Livestock straight-breeding system structures for the sustainable intensification of extensive grazing systems. In: Galal, S., Boyazoglu, J., Hammond, K. (Eds.), Proceedings of the Workshop on Developing Breeding Strategies for lower input Animal Production Environments, Bella, Italy, 22-25 September, 1999, ICAR Technical Series 3, 105-107.
Vishwanath, R., 2003. Artificial insemination: The state of the art. Theriogenology 59: 571-584.
http://dx.doi.org/10.1016/S0093-691X(02)01241-4
Zibaei, M., Kafi, M. and Bakhshoodeh, M., 2008. The effects of veterinary services on technical efficiency of dairy farms in Iran: a DEA approach. Iranian Journal of Veterinary Research 9(4): Ser. No. 25
AFPC, 2010. The Agricultural and Food Policy Centre, Texas, USA. http://www.afpc.tamu.edu. Accessed date: 3 November, 2010.
Ahuja, V. andRedmond, E., 2004. Livestock services and the poor. Tropical Animal Health and Production, 36 (3), 247-268.
http://dx.doi.org/10.1023/B:TROP.0000016831.75454.2c
Akbar, M.A. and Jahiruddin, M., 2010. Utilizing indigenous resources in an integrated approach to improving livestock production while conserving the environment. In: Improving livestock production using indigenous resources and conserving the environment. IAEA (International Atomic Energy Agency)-TECDOC-1640. Accessed December 2010 at: http://www-pub.iaea.org/MTCD/publications/PDF/te_1640_web.pdf
Alam, M. and Van Huylenbroeck, G., 2007. Policy evolution in the food grain markets in Bangladesh: the case of Domestic Procurement, Importation and Distribution. Indian Journal of Agricultural Marketing 21(2): 100-112.
Ashraf, M., 2008. Econometric analysis of the impact of domestic rice procurement policy on producer price: the case of rice in Bangladesh. Jurnal Agro Ekonomi 26(1): 80-89.
Batz, Franz-J., Janssen, W. and Peters, K.J., 1999. The influence of technology characteristics on the rate and speed of adoption. Agricultural Economics 21: 121-130.
Batz, Franz-J., Janssen, W. and Peters, K.J., 2003. Predicting technology adoption to improve research priority-setting. Agricultural Economics 28: 151-164.
Birthal, P.S., Jha, A.K. and Singh, H., 2007. Linking Farmers to Markets for High-Value Agricultural Commodities. Agricultural Economics Research Review 20 (Conference Issue): 425-439.
Conroy, G., 2005. Participatory Livestock Research: A guide. ITDG publishing company, UK.
Delgado, C., Rosegrant, M., Ehui, S. and Courbois, C., 1999. Livestock to 2020: The next Food Revolution. Food, Agriculture and Environment Discussion Paper 28, IFPRI/FAO/ILRI, IFPRI Washington DC. Available at: http://www.fao.org/ag/againfo/resources/documents/lvst2020/20201.pdf. 10 January, 2008.
Dillon, F.M. and Skold, M.D., 1992. “Typical Farm Theory in Agricultural Research”. Journal of Sustainable Agriculture 2(2): 43-58.
http://dx.doi.org/10.1300/J064v02n02_05
Elliot, F.F. 1928. “The Representative Firm” Idea Applied to Research and Extension in Agricultural Economics. Journal of Farm Economics 10: 483-498.
http://dx.doi.org/10.2307/1229927
Falvey, L. and Chantalakhana, C., 2001. Supporting smallholder dairying in Asia. Asia-Pacific Journal 8(2), December 2001. Available at: http://www.unescap.org/drpad/publication/ journal_8_2/FALVEY_CHANTA.PDF. Accessed date: 10 March, 2009
Food and Agricultural Organization (FAO), 2010. Status of and prospects for small-holder Milk production-A Global perspective, by T.Hemme and J.Otte, Rome, Italy.
Ghosh, A.K. and Maharjan, K.L., 2002. Milk marketing channels in Bangladesh: A case study of three villages from three districts. Journal of International Development and Cooperation 8(2): 87-101.
Hagemann, M., Hemme, T., Ndambi, A., Alqaisi, O. and Sultana, M.N., 2011. Benchmarking of greenhouse gas emissions in milk production for 38 countries. Animal Feed Science and Technology 166-167: 46-58.
http://dx.doi.org/10.1016/j.anifeedsci.2011.04.002
Haque, S. A. M., 2009. Bangladesh: Social gains from dairy development. In: Animal Production and Health Commission for Asia and the Pacific and Food and Agriculture Organization (APHCA-FAO) publication on smallholder dairy development: Lessons learned in Asia, RAP publication 2009/2.
Hemme, T., 2000. Ein Konzept zur international vergleichenden Analyse von-Politik-und Technikfolgen in der Landwirstschaft. Land bauforschung Völkernode, Sonderheft, 215 (2000).
Hemme, T., Garcia, O. and Khan, A.R., 2004. A Review of Milk production in Bangladesh with particular emphasis on small-scale producers. FAO- Pro-Poor Livestock Policy Initiatives working paper No.7.
Hemme, T. and Uddin, M.M., 2009. Dairy Policy impacts on Bangladesh and EU 15 dairy farmers’ livelihoods: Dairy Case study. International Farm Comparison Network (IFCN) Dairy Research Center, Kiel, Germany. Available at: http://www.ifcnnetwork.org/media/pdf/IFCN-study-EU--BD-01-10-2010---website-version.pdf. Accessed date: January 3, 2010.
Holzner, J., 2004. Eine Anlyse der Internationalen Wetwewerbsfähigkeit der Milcherzeugung an ausgewäahlten Standorten in Ostdeutschland, der Tschechischen Republik und Estland. Landbauforschung Völkennorde-Forshungsanstalt für Landwirtschaft, Braunschweig, 282+p.
International Atomic Energy Agency (IAEA), 2004. Improving Animal Productivity and Reproductive Efficiency: Guidelines and Recommendations for Improving Artificial Breeding of Cattle and Buffalo in Asia. Joint IAEA/FAO working paper. Division of Nuclear Techniques in Food and Agriculture, Viena, Austia.
International Dairy Federation (IDF), 2003. Milk equivalents-Draft paper. SCDCE paper. November 2003.
Isermeyer, F., 2003. Produktionsstruckturen, Produktionkosten und Wettbewerbsstellung der Milchproduktion in Nordamerika, Neusseland und in der EG. Wissenshaftsverlag Vauk, Kiel
Islam, K. M. A., Uddin, M.M., Sultana, M.N., Assaduzzaman, M. and Islam, M.N. 2010. Distribution pattern and management practices of cross bred dairy cows in cooperative dairy production system in Bangladesh. Livestock Research for Rural Development 22(12) 2010, available at: http://www.lrrd.org/lrrd22/12/amin22219.htm
Jabbar, M. A., Islam, S. M. E., Delgado, C., Ehui, S., Akanda, M. A. I., Khan, M. I. and Kamruzzaman, M. M., 2005. Policy and Scale factors influencing efficiency in dairy and poultry producers in Bangladesh. Joint working paper by ILRI/SLP/BSMRAU. Accessed December 2009, available at http://mahider.ilri.org/bitstream/10568/1782/1/2005DairyPoultryBangladesh_1.pdf
Jabbar, M.A., 2010. Policy barriers for dairy value chain development in Bangladesh with a focus on the North West region. Final report on: strengthening the dairy value chain in Bangladesh project of CARE Bangladesh, Pragati RPR Center, Kawran Bazar, Dhaka- 1215, Bangladesh.
Khanal, A.R., Gillespie, J., MacDonald, J., 2010. Adoption of technology, management practices, and production systems in U.S. milk production. Journal of Dairy Science 93: 6012-6022.
http://dx.doi.org/10.3168/jds.2010-3425
Kinkinginhoun-Medagbe, F.M., Diagne, A., Simtowe, F., Agboh-Noameshie, A.R. and Adegbola, P.Y., 2010. Gender discrimination and its impact on income, productivity and technical efficiency: evidence from Benin. Agriculture and Human Values 27, 57-69.
http://dx.doi.org/10.1007/s10460-008-9170-9
Ministry of Agriculture (MOA), 2006. A synthesis of agricultural policies in Bangladesh: Agricultural sector review. Ministry of Agriculture, Dhaka, Bangladesh. Available at: http://www.lcgbangladesh.org/Agriculture/reports/vol-3.pdf. Accessed date: November 21, 2009.
Ministry of Fisheries and Livestock (MOFL), 2007. National Livestock Development Policy. Ministry of Fisheries and Livestock, Dhaka, Bangladesh. Available at: http://www.dls.gov.bd/ files/Livestock_Policy_Final.pdf. Accessed data: November 06, 2010.
Ndambi, O.A., Garcia, O., Hemme, T., Balikowa, D. and Latacz-Lohmann, U., 2009a. Quarterly Journal of International Agriculture 48(2): 135-154.
Ndambi, O. A., Garcia, O., Balikowa, D., Kiconco, D., Hemme, T. and Latacz-Lohmann, U., 2008. Milk production systems in Central Uganda: a farm economic analysis. Tropical Animal Health and Production 40: 269-279.
http://dx.doi.org/10.1007/s11250-007-9091-4
Ndambi, O.A., and Hemme, T., 2009b. An Economic Comparison of typical dairy farming systems in South Africa, Morocco, Uganda and Cameroon. Tropical Animal Health and Production 41: 979-994.
http://dx.doi.org/10.1007/s11250-008-9288-1
Olhan, E., Arisoy H., Ataseven, Y., Ceylan, C., 2010. Changes in livestock production support polices in Turkey and effects on production. Journal of Animal and Veterinary Advances 9(3): 570-575.
http://dx.doi.org/10.3923/javaa.2010.570.575
Rogers, E.M., 1983. Diffusion of Innovations, Third Edition, Free Press, New York
Saadullah, M., 2001. Smallholder dairy production and marketing in Bangladesh. In: Smallholder dairy production and marketing-opportunities and constraints; Proceedings of a South-South workshop held at National Dairy Development Board. Anand, India, 13-16 March 2001. Available at: http://www.ilri.org/ InfoServ/Webpub/fulldocs/South_South/ch06.htm. Accessed date: 20 March, 2010.
Sassenrath, G.F., Halloran, J.M., Archer, D., Raper, R.L., Hendrickson, J., Vadas, P. and Hanson, J., 2010. Drivers impacting adoption of sustainable agricultural management practices and production systems of the Northeast and Southeast United States. Journal of Sustainable Agriculture 34(6): 680-702.
http://dx.doi.org/10.1080/10440046.2010.493412
Shamsuddin, M., Alam, M. M., Hossein, M. S., Goodger, W. J., Bari, F. Y., Ahmed, T. U., Hossain, M.M.and Khan, A. H. M. S. I., 2007. Participatory rural appraisal to identify needs and prospects of market-oriented dairy industries in Bangladesh, Tropical Animal Health and Production 39: 567-581.
http://dx.doi.org/10.1007/s11250-007-9062-9
Staal, S., 2004. Improved Child Nutrition through Cattle Ownership in Kenya. Smallholder dairy project-Policy brief. Available at: http://www.smallholderdairy.org/publications/Policy%20briefs/SDP%20BRIEF%205-FINAL%20R.pdf. Accessed date: 11 July, 2010.
Staal, S.J., Pratt, A.N. and Jabbar, M., 2008. Dairy development for the resource poor. Part-1: A comparison of dairy policies and development in south Asia and east Africa. PPLPI working paper no. 44-1. Accessed at: http://www.fao.org/ag/againfo/ programmes/en/pplpi/docarc/wp44_1.pdf
Tarrant, J.R., 1982. Food Policy Conflicts in Bangladesh. World Development 10(2): 103-113.
http://dx.doi.org/10.1016/0305-750X(82)90041-9
Uddin, M. M., Sultana, M. N., Ndambi, O. A., Hemme, T. and Peters, K. J., 2010. A farm economic analysis in different dairy production systems in Bangladesh. Livestock Research for Rural Development. Volume 22, Article # 122. Available at: http://www.lrrd.org/lrrd22/7/uddi22122.htm
Upton, M., 2004. The role of livestock in economic development and poverty reduction. Pro-poor Livestock Policy Initiatives working paper no. 10. Food and Agricultural Organization, Rome, Italy.
van Arendonk, J.A.M. and Bijma, P., 2003. Factors affecting commercial application of embryo technologies in dairy cattle in Europe-a modelling approach. Theriogenology 59: 635-649.
http://dx.doi.org/10.1016/S0093-691X(02)01245-1
van Calker, K.J., Berentsen, P.B.M., Giesen, G.W.J.and Huirne, R.B.M., 2005. Identifying and ranking attributes that determine sustainability in Dutch dairy farming. Agriculture and Human Values 22: 53-63.
http://dx.doi.org/10.1007/s10460-004-7230-3
Van der Werf, J., 2000. Livestock straight-breeding system structures for the sustainable intensification of extensive grazing systems. In: Galal, S., Boyazoglu, J., Hammond, K. (Eds.), Proceedings of the Workshop on Developing Breeding Strategies for lower input Animal Production Environments, Bella, Italy, 22-25 September, 1999, ICAR Technical Series 3, 105-107.
Vishwanath, R., 2003. Artificial insemination: The state of the art. Theriogenology 59: 571-584.
http://dx.doi.org/10.1016/S0093-691X(02)01241-4
Zibaei, M., Kafi, M. and Bakhshoodeh, M., 2008. The effects of veterinary services on technical efficiency of dairy farms in Iran: a DEA approach. Iranian Journal of Veterinary Research 9(4): Ser. No. 25
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2012-11-06
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Uddin, M., Sultana, M., Bruermer, B., & Peters, K. (2012). Assessing the Impact of Dairy Policies on Farm-Level Profits in Dairy Farms in Bangladesh: Benchmarking for Rural Livelihoods Improvement Policy. Journal of Reviews on Global Economics, 1, 124–138. https://doi.org/10.6000/1929-7092.2012.01.11
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