Estimation of costs and returns and factor productivity in livestock enterprise in northern areas, Pakistan

Livestock rearing is an integral source of household income in the northern areas of Pakistan. This study was conducted with the aim to trace out the role played by livestock in the rural economy of the area. The average family size in the research area was found to be 17 persons, 50% were illiterate while only 9 % were educated who were above the level of matriculation. Five adult male were engaged in on-farm activities while only one adult male worked off-farm out of six adult males per household. Cattle and goats are the major livestock kept by farmers. About 6 cattle and 44 goats were kept on average per household. Foot and Mouth, Diarrhea, Pneumonia, Fever and Black Quarter were the most common animal diseases in the area and only 21 percent of the farmers got vaccinated their animals against these diseases. And also the area farmers were unaware of artificial insemination. Per capita milk consumption was found to be 40 liters per annum a nd all the surplus milk was converted into ghee. Almost all the livestock herders slaughter their own one dry cow in the beginning of the winter season every year. They dried the meat and later used the same for the whole of the winter season. Women were involved in almost all livestock activities and spent about five to six hours daily in livestock management. On average livestock owners earned Rs.244601 as gross income per annum with a major share of milk and young stock to the tune of Rs.164235 and Rs.78155, respectively. The analysis revealed that size of family, number of livestock, quantity of feed and labour days engaged were the major factors contributory to household income. The livestock enterprise showed increasing return to scale. Thus, indicating investment potentials in future time period. Availability of quality breed, veterinary services and milk processing equipment were necessary for the development of livestock enterprise in northern areas.