The Ripple Effect of COVID-19: Analyzing Challenges Faced by Smallholder Dairy Farmers in Cox’s Bazar, Bangladesh
Homaira Pervin Heema
Department of Pathology and Parasitology, Chattogram Veterinary and Animal Sciences University, Khulshi, Chattogram-4225, Bangladesh.
S. M. Mokaddes Ahmed Dipu
Department of Agricultural Economics and Social Sciences, Chattogram Veterinary and Animal Sciences University, Khulshi, Chattogram-4225, Bangladesh.
Meherunnesa Chowdhury Sumy *
Department of Agricultural Economics and Social Sciences, Chattogram Veterinary and Animal Sciences University, Khulshi, Chattogram-4225, Bangladesh.
*Author to whom correspondence should be addressed.
Abstract
Context: As an important subsector of agriculture, livestock sector significantly contributes to the national economy of Bangladesh. This subsector contributes 1.85% of national gross domestic product (GDP) whereas it shares 16.52% in agricultural GDP and provides 20% employment directly and 50% indirectly for the country population. Moreover, COVID-19 created a serious negative impact in all sectors worldwide. Around 0.3 million dairy farms suffered the bad luck that came with this circumstance in our country.
Aims: The study aimed to show the socio-economic impact of COVID-19 on smallholder dairy farmers, estimate the comparative profitability of dairy farm owners before and during the pandemic along with identify the problems faced by dairy farmers during the COVID-19 pandemic period.
Methods: On the basis of available information, a total of 31 dairy farms were selected following convenient sampling technique from Cox’s Bazar Sadar, Ukhia, Ramu and Moheshkhali upazila under Cox’s Bazar district of Bangladesh through a pre-designed questionnaire. Descriptive, statistical and econometric analysis were carried out to achieve the objectives.
Results: This study identified a remarkable change in the selected farms' net return, gross margin, and BCR (Benefit Cost Ratio). The net return of the farms decreased from BDT (Bangladeshi taka) 27,796.36 to BDT 8,512.39, whereas the gross margin reduced from BDT 16,531.04 to BDT 4,463.76 as the post-COVID-19 impact. This result also revealed that the average difference in feed cost during and before the COVID-19 period was BDT 1,531.08, and the average reduction in monthly farm income due to COVID-19 was BDT 74,429.03 (P<.0001). This study also identified 12 major problems faced by the farmers due to COVID-19, which were ranked according to problem indices. Fall in milk price, constraints on dairy milk marketing, and high cost of concentrate feed were highlighted among the problems faced by the farmers. These changes had a direct health impact on farmers since disruptions in income and food supply chains resulted in decreased access to nutritious food, affecting farmers' physical health.
Conclusion: We recommend that the Government and other agencies should focus on multipurpose cash support to pandemic affected vulnerable dairy farmers to minimize their losses in future.
Keywords: BCR, COVID-19, dairy farming, net return, smallholder dairy farmers