Economic analysis of milk production in different cattle colonies of Karachi

This study was planned to conduct detailed investigation on cost benefit analysis of buffalo milk production in the peri-urban areas of Karachi. Two cattle colonies i.e. Landhi and Bilal cattle colonies were surveyed and information regarding experience and educational level of the respondent, number of animals, feed resources and cost of feeding, labor cost, vaccination and medication cost, milk yield, price of milk and its marketing system etc. were gathered on specially designed proforma. It is analyzed that average experience level of dairy farmers in this business is about 25.6 years. Regarding education level, the percentages of dairy farmers below secondary level, secondary level, intermediate level and graduation categories are 45%, 25%, 20% and 10%, respectively. Purchase price of dairy animal has increased tremendously and become double i.e. Rs. 60,000/- as compared to the price i.e. Rs. 30,000/- in year 2003-04. The cost of feeding has increased rapidly and become almost double i.e. Rs.177/- per animal/day as compared to the price in 2003-04 i.e. Rs.90/- per animal/ day. The total costs including cost of feeding, vaccination/medication, labor, electricity and miscellaneous charges calculated on the basis of rearing 50 animals for 8 months is Rs. 2,488,000/- (i.e. Rs. 207/- per animal/day). The total income received from sale of milk and calves, calculated on the basis of rearing 50 animals for 8 months, is Rs. 2,925,000/-(i.e. Rs 244/- per animal/day) with net return of Rs. 437,000/- (i.e. Rs. 37/- per animal/day). The input output ratio and cost benefit ratio are calculated as 1:1.18 and 1:0.18, respectively. It has been noted that calves rearing, commercial tariff on electricity, disposal of animal dung, occurrence of diseases like haemorrhagic septicemia, foot and mouth disease, mastitis, pneumonia and feed toxicity are major problems of cattle colonies in Karachi.