Dairy Performance and Intensification under Traditional and Economic Efficiency Farm Plans in Uganda

ASIAN JOURNAL OF AGRICULTURE, 2022

The economic performance of dairy cattle enterprises in Southwestern Uganda was analyzed in this study. A survey was conducted on 100 dairy cattle enterprises in Mbarara, Kiruhura, Lyantonde, Ibanda, and Isingiro Districts using data compilation forms covering the 2019/20 production year. The unit production cost of milk was determined as US$0.19L-1. Veterinary expenses had the largest share of the production costs at 24.94%, followed by labor costs, depreciation of the inventory value, other expenses, and feed costs, which contributed 14.11%, 12.46%, 11.96%, and 11.41%, respectively. Additional costs included the depreciation of animals, electricity and water, buildings, equipment and machinery, maintenance-repair, and general administrative expenses, which contributed 9.95%, 7.86%, 2.54%, 2.29%, and 2.48% to the total production costs, respectively. As a result, while the net profit of the enterprises was determined as US$1435.29, their financial profitability was 0.59, the profitability factor was 12.20, and the output-input ratio was 1.06. The overall profitability of the enterprises was affected mainly by the high veterinary expenses due to the high prevalence rates of tick-borne infections and the irrational distribution of capital elements. Therefore, measures to reduce the occurrence of tick-borne diseases are considered vital in lowering milk production costs, thereby increasing the profitability of enterprises.

European Journal of Business and Management, 2020

Dairy value chain has an important role in income generation and provision of employment. The latest trends in demand for dairy products is progressively exceeding the supply in the Rwanda and in Nyanza district particularly; this constitute a genesis of discussion and analysis of dairy production situation. Smallholder dairy farming is practiced in Rwanda aiming at generating income and nutrients in households; however, the efficiency in smallholder dairy farming is highly disputed. This study examined factors affecting technical efficiency of smallholder dairy farmers in Nyanza District with estimation of the marginal gross profit of smallholder dairy production. Stratified random sampling was adopted to determine the respondents. Primary data were drawn from 110 smallholder farmers using structured questionnaires. Non-parametric approach, Gross margin and Stochastic Frontier were employed. The results revealed that socioeconomic factors and institutional factors directly affects technical efficiency of smallholder dairy production. The study will help the government and smallholder dairy farmers in organizing themselves in groups for bulk purchases of inputs during high season this will end up reducing unnecessary cost of transporting and price increase of inputs during low season hence increasing milk production

Policy briefs, 2012

The dairy sector in Uganda has been transformed into a more competitive and dynamic sector. Supply-side factors have enabled expansion in milk production. Between 2005 and 2009 –milk production (estimated at 1.5 billion litres in 2010) has been partly an outcome of a 20 percent increase in the number of households engaged in dairy farming, and an increase (21 percent) in the proportion of crossbred dairy cows in the national herd (estimated to be 11 million cattle). At farm level concerted efforts have been directed towards technological change – transforming the farming system from predominantly extensive grazing local breeds to more intensive rearing of fewer but improved breeds. The lack of consistent long-term support to the breeding programs negatively affect numbers of dairy cattle stocks especially in Northern Uganda. Furthermore, the perpetually low farm gate milk prices could deter the optimal uptake of required dairy farm husbandry practices in the milk surplus Western reg...

2012

The Feed Assessment Tool (FEAST) was used to characterize the feed‐related aspects of the livestock production system in Kigumba, Kiryandongo district of Uganda. The assessment was carried out through focused group discussions and completion of short questionnaires by three key farmer representatives owning small, medium and large scale farms. The following are the findings of the assessment and conclusions for further action.

Journal of Agricultural Science and Technology, 2013

Dairying in Kenya remains a multi-purpose cattle system providing milk, manure and capital assets to the farmer. Dairy activities in Kenya are predominantly run by smallholders and are concentrated in the high and medium potential areas. Smallholders operating 1-3 dairy cows on small farms are predominant in Kenya. They produce 56% of the total milk in the country and supply 80% of Kenya’s marketed milk. Estimated growth in the consumption of milk and dairy products in developing countries is 3.3%, which is in line with Kenya’s 3% per year. National statistics show that milk production continues to decline. For example, since 2000 milk annual growth rate has been 1.4% compared to 9.2% experienced between 1980 and 1990. The main challenge of Kenya’s dairy industry is how to confront growing milk demand and a highly competitive export environment when yields are as low as 195 litres per lactation. One of ...

Journal of Agricultural Science, 2011

Smallholder dairy cattle producers in Uganda face major production constraints including inadequate and poor quality feeds. Forage technologies have been widely recommended to alleviate this problem. This study aimed at comparing profitability of dairy cattle enterprises using improved forage technologies (IFTs) with those using local technologies, and determining factors affecting the use of IFTs among smallholder dairy farmers. Data were collected from 121 farmers in Soroti district. Descriptive statistics, partial budget analysis, probit model, and Ordinary Least Squares were used to analyze data. Results indicated that farmers using IFT had significantly (p<0.01) higher gross margins than those using local feeding methods. Probit model results indicated that profitability of technology influenced the decision to use IFT when interacted with improved cattle breed. The decision to use IFTs had a positive significant (p<0.1) relationship with profitability of dairy cattle enterprises. Policies targeting efficient dissemination of IFTs are recommended to improve profitability.

Modern Economy, 2015

Overall objective of the study was to analyze technical efficiency and its determinants among milk producers in cattle corridor parts of Kiboga district. Stochastic frontier approach was employed to analyze technical efficiency and Tobit model regression to establish determinants of technical efficiency. The study used cross sectional edited data of 190 randomly sampled respondents from the three sub counties of Dwaniro, Kapeke and Lwamata. Milk producers achieved average technical efficiency level of 68%. Average technical efficiency indicated that milk producers were operating below the production frontier and were not technically efficient but had potential to improve. Determinants of technical efficiency were herd size, improved cows, hired labour, land ownership, water source and extension services. Policies that will lead to increased investment in valley tanks, increased investment in cross/exotic cows and increased investment in provision of extension are recommended by the study.

Tropical Animal Health and Production, 2019

This paper highlights the factors likely to influence the economic efficiency of small-scale dairy farms in Mukurweini, Nyeri County, Kenya. A total of 91 small-scale dairy farms previously involved in a nutritional training in 2013 were administered with semi-structured questionnaires. Data collected were entered into SPSS and FRONTIER 4.1 was used to compute the technical, allocative and economic efficiency scores for each farm. The scores were then regressed against a set of variables using the Tobit model in STATA to determine the factors associated with the scores. The average age of the household members involved in dairy farming, household size, labour, cost of concentrates and size of land owned had a negative significant influence on economic efficiency. It was concluded that lowering costs, proper utilization of hired labour and intensive use of the available land for dairy farming would lead to an increase in economic efficiency. The study recommends subsidized prices for concentrates, intensive dairy farming, minimization of hired labour and organization of dairy training and workshops in order to increase the efficiency of milk production in small-scale farms in the study area and other parts of Kenya with similar agro-ecological and cultural conditions.

Agriculture, 2021

Despite the huge potential for milk production, interventions to improve productivity in sub-Saharan Africa (SSA) are barely based on specified farm classifications. This study aimed to develop robust and context-specific farm typologies to guide content of extension farm advice/services in Uganda. From a sample of 482 dairy farmers, we collected data on farmer socio-demographics, farm management practices, ownership of farm tools and facilities, willingness to pay for extension services, milk production, and marketing. Farm typologies were obtained based on principal component and cluster analyses. Thereby, of the three dairy production systems that emerged, small-scale, largely subsistence yet extensive and low productive farms were more prominent (82.6%). Farms that were classified as large-scale, less commercialized yet extensive with modest productive systems were more than the medium-scale commercial farms with intensive and highly productive systems. However, the later were c...

Agricultural Systems, 2007

Three smallholder dairy production systems in Zambia, Sri Lanka and Kenya are analysed and compared. The focus is on the relationships between the animal production system, the farm household system, and the institutional environment. Attention is given to the valuation of marketed and non-marketed products and the intangible benefits of livestock in insurance, financing and status display. The comprehensive and comparative analysis of the production systems shows the direct relationship between type and intensity of dairy production and the presence or absence of markets for milk and other products, services and employment. The generally unobserved income components resulting from products other than milk and from the intangible benefits prove to be a substantial proportion of the total income in all three systems. The comprehensive perspective on the dairy production system results in policy suggestions that include institutional linkages.

2008

www.ifpri.org NOTICE: IFPRI Division Discussion Papers contain preliminary material and research results, and are circulated prior to a full peer review in order to stimulate discussion and critical comment. It is expected that most Discussion Papers will eventually be published in some other form, and that their content may also be revised.

Dairy production has been envisaged as an important means of improving the nutrition status of, and income generation by African families. The need for a better understanding of the role of various policies and farm strategies on dairy farms in Africa has become more important especially as policy makers and donors wish to optimise the impact of their projects on livelihoods of farmers. This study applies an adapted version of the TIPI-CAL (Technology Impact Policy Impact model) to analyse the impact of different policies on the most typical dairy farming system in Uganda. In general, the policy impacts are very little on farms with local cows but can be magnified up to threefold, if the farms have graded cows. Policies which improve farmers' accessibility to markets have the greatest impacts. Genetic improvement of cattle breeds is recommended as an initial strategy, which will improve the impact of other farm policies.

2008

Tropical Animal Health and Production, 2009

A study was carried out to evaluate the impact of interventions to solve constraints in smallholder dairy farms of the Western Highlands of Cameroon. The interventions consisted of improved breeding through introduction of artificial insemination, better feed supplementation, farmers training in milk processing and better veterinary services. Results show that there was a decrease in average monthly expenditures of 18% relative to the month before interventions started. Much of the expenditures were related to feed (38% of all costs). There was an overall increase in farm income. Close to 2/3 of the income were derived from milk products from home processed milk and culled animals. Only 7% income came from milk sold to the processing plant. The partial budget shows that before interventions, farmers lost $4.5/cow/month but gained $38/cow/month because of the interventions. The return was 2.32 and included opportunity income for milk home consumed and shared. When this opportunity income was ignored, the return stood at 1.93. The positive impact of interventions led to poverty alleviation and some farmers acquired more cows. A spill over effect is that more crop farmers are willing to be engaged at least partially in dairy farming. It will be good if many more farmers could benefit from these interventions.

Tanzania Journal of Agricultural Sciences, 2019

The regular supply of reliable quality milk may call for a hub approach where dairy services are clustered around a milk buyer under some form of contractual agreement. However, empirical evidence on the economic efficiency of hub participating farmers is limited. The objective of this study is to determine the economic efficiency of dairy farmers participating in dairy market hubs (DMHs). The study uses secondary data collected from 384 smallholder dairy farmers in Tanga and Morogoro regions and employs stochastic frontier translog cost model to estimate the level of economic efficiency among smallholder dairy farmers participating in DMHs. Results indicate that economic efficiency index ranged from 0.003-0.999 with a mean of 0.932 points implying that the sampled farmers were close to being fully economically efficient in the allocation of resources for producing a given level of milk output. Key factors indirectly related to cost inefficiency were education level, age, hub member...