Comparative economic analysis of local and crossbred cow rearing in rural areas

Dairy farming is an integral part of the farming system. The income generated through livestock rearing has been the basis for a majority of the landless and the small farmers. The present study aims to make a comparative economic analysis of crossbred cows and local cows in rural Punjab. The study is based on primary data, collected through a detailed schedule from 420 dairy farmers belonging to different farm size categories from 21 villages situated in three different agro-climatic zones (Shivalik-Foothills, Central Plains and South-West Dry zones) of Punjab state. The average milch herd size is 2.26 for crossbred cows and 1.48 for local cows. The crossbred cows show higher significant total fixed costs of milk production as compared to the local cows due to the high initial investment and maintenance expenditure of the crossbred cows. The net returns from milk production calculated based on (sic) per day per cow significantly differ between crossbred cows and local cows. The net returns per litre from the milk production of local cows are worked out as negative.