Tropical Animal Health and Production

, Volume 51, Issue 1, pp 55–64 | Cite as

Economic analysis of dairy farming in Bangladesh

  • Apurba Kumar DattaEmail author
  • Mohammed Ziaul Haider
  • Sumon Kumar Ghosh
Regular Articles


A study was conducted to analyze the dairy farming sector of Bangladesh from an economic viewpoint. Primary data was collected from smallholder dairy farms using survey questionnaires. A Cobb-Douglas production function and multiple regression models were estimated to analyze farm milk productivity and gross margin of the dairy farms. Surveyed dairy farms owned on an average 3.07 milking cows comprising 0.37 indigenous and 2.70 crossbred cows. Average milk productivity was 7.80 liter per cow per day, in which indigenous cow milk productivity was 1.9 1iter per day and crossbred cow milk productivity was 6.48 liter per cow per day. The study found that average daily milk production of small, medium, and large dairy farms were 5.45, 32.50, and 59.83 liter, respectively. Average monthly revenue and cost of milk production were US$ 79 and US$ 21 per cow, resulting in the average net return of US$ 58 per cow per month. Both quantitative estimation and t test results indicated a positive and statistically significant relationship between farm size and milk productivity and gross margin. The study findings also indicate that crossbred cows are providing higher economic benefits to the dairy farmers compared to the indigenous breeds. Despite being smallholder and subsistence, dairy farming shows potential for increasing returns to scale, and hence, there is a scope for further growth of the sector.


Dairy farming Farm size Production function Milk productivity Gross margin Bangladesh 



This research did not receive any specific grant from funding agencies in the public, commercial, or not-for-profit sectors. None of the authors have been got any financial support from any of the organizations, individuals, or groups for this research work.

Compliance with ethical standards

Statement of human and animal rights

Informed consent was obtained from all individual participants included in the study. This article does not contain any studies with animals performed by any of the authors. The research does not contain any clinical studies or patient data related to human or animal.

Conflict of interest

The authors declare that they have no conflict of interest. Authors whose names appear on the submission have contributed sufficiently and been approved by all for publication. There is no other party to review the paper prior to its circulation. The manuscript has not been published previously partly or in full and not under consideration for publication anywhere else. The publisher will not be legally responsible if any conflict of interest arises.


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Copyright information

© Springer Nature B.V. 2018

Authors and Affiliations

  1. 1.Economics DisciplineKhulna UniversityKhulnaBangladesh

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