Value Chain Analysis of Cattle Feed Market in Banaskantha District, India

Abstract

India has vast resources of livestock and poultry, which play a vital role in improving the socio-economic conditions of rural masses. Livestock sector contributed 4.90 per cent of total GVA in 2020-21. Birthal and Jha [1] has found feed scarcity as the main limiting factor to improving livestock productivity. Therefore, to increase the productivity potential of milch animals the use of commercial compound feed is inevitable as supply of feed & fodder is shortening due to shrinking pasture land in the country. The Indian feed industry is about 57 years old. India is deficient in fodder and its availability is shrinking day by day due to decrease in cultivable area and increased share in food crop production so more thrust should be directed towards compound feeds by identifying the constraints and removing them.This study focused on the effectiveness of the feed industry and the performance of the value chain when mapping the cattle feed value chain in the Banaskantha district of Gujarat state. Total of ten feed manufacturing units and 120 farmers were selected for the study. The study was based on primary data and secondary data, the primary data were collected through personal interviews with the help of a structured survey schedule. Secondary data on livestock population were collected through the livestock census, Department of Animal Husbandry, Dairying and Fisheries, Ministry of Agriculture, Govt. of India. A multi stage random sampling method was adopted as an appropriate sampling procedure for the study. Banaskantha district was purposely selected for the study as Banaskantha district has highest livestock population in overall Gujarat State. Four talukas from Banaskantha district were selected randomly and feed manufacturing units were selected by snowball sampling method. From each taluka, five villages were selected randomly. From each village, six farmers were selected randomly. The study focused on buying behavior of farmers regarding cattle feed purchase and to estimate demand for concentrated feed requirements for the future in Banaskantha district. The study found that among the eight explanatory (independent) variables, five variables viz., livestock population, farm size, feed price, income from livestock, total feed fed per day were found to be significantly associated with expenditure of cattle feed price per animal per month and other variables such as average age of the animal, technology adoption and distance from buying location were statistically non-significant. The required feed demand for future livestock populations in Banaskantha district are 3651480 metric tonnes, 4487461 metric tonnes, 5514543 metric tonnes, 6774097 metric tonnes and 8315523 metric tonnes for the year 2024, 2029,2034, 2039 and 2044 respectively.