Growth Of Livestock Sector In Tamil Nadu – A Total Factor Productivity Approach
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Date
2008
Journal Title
Journal ISSN
Volume Title
Publisher
Tamil Nadu Veterinary and Animal Sciences University
Abstract
A study was undertaken to study the factor shares and value shares in livestock
sector in different time periods, to examine the residual productivity growth pattern in
livestock sector, to analyse the sources for the growth of Total Factor Productivity (TFP)
in livestock sector and to estimate the cost of production of major livestock products
(milk, mutton and chevon) in Tamil Nadu
The secondary data required for estimation of TFP growth was collected,
generated and estimated for the period from 1980–81 to 2003–04. For estimation of TFP,
the entire state was considered as sample and for estimation of cost of production of
major livestock products, Salem district was selected for estimating the cost of
production of milk and for estimating cost of production of mutton and chevon,
Ramanathapuram district was selected. From Salem district, 150 dairy farmers from 15
villages (10 farmers from each village) were selected by simple random sampling
technique. In Ramanathapuram district, 150 sheep and goat farmers from 15 villages (10
farmers from each village) were selected by simple random sampling technique.
Information relating to various aspects of dairy and sheep and goat farming was collected
from selected farmers by survey method with a well-designed and pre-tested interview
schedule. The field survey for this study was conducted during the month of March –
October, 2007 and the data collected from the sample units related to the year 2006 -
2007.
The data collected are analysed and tabulated with a view to achieve the
objectives of the study. Specific tools of analyses appropriate to analyse the data with
reference to each of the specific objectives are selected. A combination of analytical tools
– average and percentage analyses, growth rate analysis, Total Factor productivity
Approach and Multiple regression analysis are used to analyse the data.
The results of factor shares in livestock production has indicated that among the
different components that constituted the total inputs, the share of feed and fodder group
ranked first, having almost half of the total inputs share, followed by labour, others and
population stock. The results of livestock feeding pattern revealed that while the share of
concentrates had gradually increased, that of dry fodder and green fodder decreased.
Among the value shares of different livestock commodities, milk had occupied the major
component followed by meat and manure. Further, the value of milk in the total livestockproducts had doubled between 1980-81 to 2003-04. In the case of growth rate analysis
crossbred cow and poultry had shown significant positive growth while buffalo
population has declined. The milk and egg production has registered high growth in the
last two decades.
The results of TFP analysis indicated that the livestock sector had really gained
from the technological innovations introduced in 1980’s. While, the TFP growth in the
period I 1980-81 to 1991-92 was not conspicuous, it was more prominent in the period II
1992-93 to 2003-04. The decomposition of TFP growth has shown that variables like
veterinary institutions, dairy co-operatives, area under groundnut and rainfall were found
to be significantly determining the TFP index. Other parameters like gross cropped area,
area under paddy, area under cholam, credit flow to livestock sector and productivity of
layer were found to influence the TFP index at 95 percent confidence interval.
The analysis of cost of milk production revealed that among the different cost
components, the feed cost encompassed a greater proportion of about 72 per cent, 72.7
per cent and 69.5 per cent for crossbred cow, indigenous cow and buffaloes respectively.
The cost of production per litre of milk was the lowest for crossbred cows (Rs.9.74)
followed by indigenous cows (Rs.9.85) and buffaloes (Rs.11.56). While the average net
return per litre of milk was Rs.2.43 for rearing both crossbred cows and indigenous cows,
the same was Rs.2.66 for buffalo.
The analysis of cost of production of sheep and goat farming indicated that cost of
sheep and goat was the major component in investment. The net returns with imputed
value of family labour per sheep was highest in marginal farmers (Rs.1141.41) followed
by small farmers (Rs.1003.53), landless farmers (Rs.848.23) and lowest in large farmers
(Rs.632.52) with the overall value of Rs.792.36. The net returns with imputed value of
family labour per goat was highest in marginal farmers (Rs.1123.19) followed by landless
farmers (Rs.949.91), large farmers (Rs.679.90) and the lowest in small farmers
(Rs.540.14) with the overall value of Rs.816.49.