Constraints and economic impacts of COVID-19 on dairy farming in Chattogram, Bangladesh

Abstract

The covid-19 pandemic is likely to have substantial effects not only on the human being in Bangladesh but also on smallholder dairy farmers who were more affected because of the perishability nature of the product. The study was carried out to examine the impact of covid-19 on the dairy farming sector at Karnafully upazila in the Chattogram district of Bangladesh from an economic standpoint. Primary data were collected using a random sampling technique from smallholder dairy farms in the study area. Descriptive statistics and econometric methods were used to measure the socioeconomic status and farm profitability of dairy farmers. To analyze farm milk productivity, a Cobb-Douglas production function was estimated. A significant association of feed cost, milk price, household income and return from dairy farming between after covid and before covid period was found using t-test results. The study revealed that net return was higher before covid (BDT7972.19) than after covid (BDT4869.41) period. The production functions exhibited increasing returns to scale in both periods but comparatively in the covid-19 period it declined. The results also showed that feed costs increased but milk price, household income and return from dairy farming decreased due to covid-19 and the results are statistically significant (P<.0001). Finally, our research revealed that the dairy farming industry was severely impacted by the COVID-19 pandemic in numerous issues as a result of the lockdown including a fall in milk price, high feed cost, spoilage of milk on the farm due to the unsalable, difficulty of milk transportation, drug unavailability and shortage, decreased demand for dairy products etc. For decreased the vulnerability of dairy farming, it is essential to reduce feed costs, stable milk prices and develop a proper marketing system in the whole country.