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Profitability and productivity analysis of dairy cattle in Gihanga, Buringa district- Burundi, Turkey

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Author Affiliations

  • 1Department of Animal Health Economics and Management, Faculty of Veterinary Sciences, Selcuk University, Turkey
  • 2Department of Animal Health Economics and Management, Faculty of Veterinary Sciences, Selcuk University, Turkey

Res. J. Agriculture & Forestry Sci., Volume 11, Issue (2), Pages 21-27, July,8 (2023)

Abstract

This study was carried out with the aim of evaluating the profitability and productivity of dairy enterprises in Buringa. The study covered the 2020 production year, the survey was conducted using KoBo Collect on 75r and only selected enterprises and the analysis was performed using Excel 2013 and SPSS 25.0 software. It was determined that the variable costs of milk production constituted 82.5% of the total costs and the feed costs constituted 55.9% of the total expenses. Depreciation and labor represented 16.9% and 8.8% of total expenditure, respectively. Milk in come was 87% of total income and the unit cost of milk was determined at $0.35. The average annual gross profit per farm was calculated at $13,643 and the small dairy enterprises recorded an annual loss of $2,177. Equity capital was 98% of total capital and live stock capital ratio represented 45.1% of active capital. The financial and economic profitability of these enterprises was calculated at 11.3% and 10.9%, respectively and the profitability factor was calculated at 14.8%. It was concluded that despite being profitable, Buringa farms face a lack of equipment, modern infrastructure, technical expertise and sufficient training in livestock management. It is necessary to strengthen the farmers’ technical capacities and put in place the financing structure in order to ensure the development of the dairy sector in Burundi.

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