Chapter XV Importance of fodder to reduce the cost of milk production in farmers perspective

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1 Chapter XV Importance of fodder to reduce the cost of milk production in farmers perspective S. P. Neopane Senior Scientist and Head of Animal Breeding Division, Nepal Agricultural Research Council Keywords: Milk costs, Nepal, dairy buffaloes, dairy cattle, feeding, indigenous breeds, farm size. Summary Milk production costs are high in Nepal because of small herd size, difficult collection conditions and high feed cost, especially in winter so there is no potential for exports except to Bangladesh and Bhutan; there is, however, a great potential for import substitution. Production costs are affected by species of animal cattle or buffaloes, breed, farm size, location (peri-urban, on motorable road, outside the milk grid) and feeding system forage or concentrate-based. Cost of production can be reduced either by improving productivity per unit animals or reducing feed and other cost. This can be more efficient if we combine both these, e.g. have productive animals and rear them under low cost feeding systems (use of more quality green forage). Indigenous breeds, which contribute much to milk production have wide variability for milk yield (average daily milk ranges from 2 to 6 litres) suggesting that selection within the breed would make milk production efficient. Commercial production should be enhanced by rearing improved (both selected indigenous and exotic crossbreds) animals under low cost production system using quality of green forage. Agriculture contributes 39% to the national gross domestic product (GDP) (Statistical Information on Agriculture, 2004) and livestock shares about one-fifth to the GDP in Nepal. Livestock is an integral part of Nepalese farming systems. It shares about one-third to AGDP but has potential to reach up to nearly half (APP, 1995). Among livestock dairy contributes about 50%. Two-thirds of milk comes from buffaloes and one-third from cattle. In urban areas milk is mostly from cattle (exotic and crossbreds). From a commodity perspective, buffaloes (53%) and cattle (25%) are contributing most to the livestock GDP. There is an increased demand for milk and milk products. The overall growth in milk sale between 1990 and 1999 was 14.2% (Shakya and Shrestha, 2004). Annual per capita milk consumption is 49 litres in Nepal; 69 litres in South Asian countries and 213 litres in developed countries. In the Tenth Five Year Plan ( ), HMG has targeted to raise milk production by 20% from tons in 2002 to tons by the end of the plan, making per capita availability around 51 litres per year (Shakya and Shrestha, 2004). Milk production has therefore, to be increased as there is more demand and need for it. As most farmers in Nepal are non-commercial, the cost of milk production generally is higher than India and hence there is no export (Pradhan et al., 2003). However, Nepal appears to have export potential to West Bengal and Bangladesh. Moreover, there is a great potential for import substitution; a large quantity of milk and milk powder is being brought into the country from outside and milk products come to Nepal from 20 different countries (Shakya and Shrestha, 2004). In order to address import substitution the cost of production of milk and milk products need to be reduced. Livestock numbers and distribution There are 6.9 million cattle and 3.8 million buffaloes in the country; they are mainly kept for milk production. They are distributed throughout the country but more animals appear to be in the Hills than the Terai (Table 1). Probably this is why there is a great fodder deficit in the Hills (Sherchand and Pariyar, 2003). Only 12 percent cattle and 36 percent of buffaloes are estimated to be crossbreds (Animal Genetic Resources of Nepal, 2004). Milk production per animal is 415 litres for cattle and 844 litres in buffaloes. These values, obtained as a result of calculating from 12.5% milking cows and 25.7% milking buffaloes were used to derive Table 2 (Statistical Information on Agriculture, 2004).

2 Table 1. Cattle and buffalo numbers and distribution (2002/2003) Species Mountains (%) Hills (%) Terai (%) Total (No) Cattle Buffaloes Source: Statistical Information on Agriculture (2004) Table 2. Milk production in Nepal Categories Mountains (%) Hills (%) Terai (%) Milk production (MT) Cow Milk Buffalo Milk Total Milk Source: Statistical Information on Agriculture (2004) Fodder problems Shortage of both fodder and compound feed, in terms of quality and quantity is one of the major factors affecting milk production (Panday and Tiwari, 2002). There is 36% feed deficit in Nepal (Table 3). Sherchand and Pariyar (2003) reported that about one-third of livestock are underfed. The feed deficit is severest in the Hills (-56%) followed by Terai (-42%) but it is in surplus in the mountains (+26%). Table 3. Feed (TDN) balance and availability from different sources in Nepal Items Values (,000 MT) Total TDN requirement for ruminants Total TDN available from different sources Crop by products Forest Non-cultivated land Shrubs land Grazing land 311 Percent deficit 36.2 Source: Pariyar (1998) Feed resources in different domains Crop by-products are the largest source of total digestible nutrients (TDN) (53.8%) followed by forest (16.0%) and grazing (10.6) (Table 4). Apart from these, on-farm fodder from farms and risers and bunds are also important sources of fodder, particularly in the Terai and Hills. Sherchand and Pariyar (2003) reported that agricultural land contributes about 60% of the total requirement, mainly in the form of low quality crop byproducts, and forest and grazing contribute the remaining 40%. Farmers are compelled to feed expensive concentrates to their animals in the absence of good quality forage. This makes production very expensive and uncompetitive. Table 4. TDN supply from different sources by the ecological zones ( 000 tons) Sources/zones Terai Hills Mountains Total % Grazing Forest Shrubs Fallow grazing Fodder (On farm) Risers/bunds Grain/residues Crop by products Total Source: APROSC (1986) Crop by-products: include milling offal of paddy (69.7%), maize (10.6%), wheat (8.7%), millet (4.7%), barley (4.7%) and oil seeds (cakes) (1.6%) (Statistical Information on Nepalese Agriculture, 2000). Forest: The major fodder from the forest is tree fodders, herbs and shrubs. Tree fodders are largely fed in the Hills and Mountains but to a lesser extent in the Terai where shrubs and herbs are taken from forest land. There are more than a hundred fodder trees in Nepal which are extensively used for feeding livestock. Much information on fodder trees (combination of fodder trees, lopping time and techniques, planting techniques, digestibility etc) is available in-country. An important concern about the forest is that its area is in decline and the access to the forest is also reduced due to the establishment of community forestry. Fodder: Green forage from grazing land is mainly perennial native grasses with some legumes. Fodder from risers and bunds is both native and exotic grasses and legumes such as setaria, Napier, desmodium, Para grass and several native species. Native forages include Imperata cylindrica (siru) Cynodon dactylon (dubo), Setaria

3 pallidafusca (banso), Thysanolaena maxima (amriso), Andropogon spp.(khar ), Pennisetum flaccidum (dhimchi) Medicago sativa ssp. falcata (kote), Elymus nutans (furcha) and many others. Summer fodder crops include maize, teosinte, bajra and sorghum. Winter crops include oats, berseem and vetch. Among perennials available are desmodium, setaria, Napier, Para grass and Pennisetum pedicellatum (dinanath). Cost of production Pariyar (2002) reported that with the introduction and cultivation of suitable oat cultivars combined with suitable legumes (Oat + Vetch and Oat +Pea) and appropriate husbandry, farmers in dairy pocket areas have been able to achieve a 30% reduction in milk production costs. The author further added that under a forage-based milk production system in the peri-urban areas of Ilam district (eastern Nepal), the production cost of a litre of milk was about Rs. 10:00 (US $ 0.14) whereas the cost of production in urban areas under the concentrate +crop residues feeding system was about Rs. 18:00 (US $ 0.25). Pariyar (2000) in a case study in Kavre district reported that the use of Oat+Vetch increased milk production by 30 litres per buffalo per month on average. It led to decreased purchase of concentrate by 30 kg per month and milk production was extended by 8 weeks. This resulted in an additional net profit of Rs per month (US $ 21.7). Sherchand and Pariyar (2003) reported that in the Terai region of Nepal, reduction of milk production cost has been achieved with the introduction and cultivation of suitable winter fodder (oat and in combination with vetch and pea) and summer fodder (teosinte, maize, bajra, sorghum cowpea and soybean). Cultivation of oat +vetch (60:40), manure and fertilizer behind the plough (FYM-10 tons +40:100:0 NPK kg/ha) brought a total profit of NRs per month (Nepal Rupees. US$1 = NRs in March 2005.) Kumar and Sood (2002) reported a great impact of forage production on farm dairying income in India; with the adoption of improved forage production technologies and rearing of crossbred animals, the average family income increased by 26%, 37% and 76% in marginal, small and large farms respectively. Poudyal (2001) assessing the economics of milk production reported that milk production from crossbred cows is profitable to those farmers who have access to a road for marketing their milk. The net return per milking cow was higher inside the Dairy Development Corporation (DDC) areas where the farmers have the privilege of selling milk and also had 25% higher price than outside DDC area. Table 5. Cost of buffalo milk production NRs per litre July-Oct Nov-Feb Mar-June Yearly average Big farmers with improved buffalo Average farmers with improved buffalo - Urban periphery Village motorable Outside milk grid Average farmers raising local buffalo Source: National Milk Marketing and Strategy Study (2001) A comprehensive study made by the NDDB in 2001 showed that the cost of milk production for an average farmer is NRs. 13:50 per litre for buffaloes (Table 5) and NRs. 11:50 per litre for cattle (Table 6), which is about 15% higher than in India. The cost of production per litre is about one rupee less in the village motorable areas than in peri-urban areas from where most of the milk is collected. Cost of production of milk in case of the commercial farmers (raising three or more buffaloes and five or more cattle) is NRs. 11:00 per litre for buffaloes and NRs. 9:00 per litre for cows. Thus to reduce cost of production and have better coverage of farmers, emphasis should be on commercial production in peri-urban areas and fodder-based production in motorable villages. Table 6. Cost of cattle milk production July-Oct Nov-Feb Mar-June Yearly average Big farmers with improved cattle Average farmers with improved cattle - Urban periphery Village motorable Outside milk grid Source: National Milk Marketing and Strategy Study (2001) The study showed that cost is the highest in March to June in both cattle and buffalo indicating the role of green forage, when there is a shortage of green forage so making production expensive. To address this, there is need for green fodders which produce during the period. Some authors (Neopane and Shrestha, 1991; Chemjong, 1995) have identified forage legumes that remain green during the dry season: Desmodium intortum (Desmodium green leaf), Desmodium uncinatum (Desmodium silver leaf), Stylosanthes guianensis (Stylo), Cassia rotundifolia (Cassia), Neonotonia wightii and Vicia dasycarpa (Vetch).

4 Breed performance There are both indigenous and exotic breeds of cattle and buffaloes in the country (Table 7). Table 7. List of indigenous and introduced breeds of cattle and buffaloes Species Indigenous Breeds Continually Introduced Breeds Cattle Lulu, Achhami, Pahadi, Terai, Siri, Jersey, Holstein-Friesian Khaila and Yak Buffaloes Lime, Parkote and Gaddi Murrah Source: Animal Genetic Resources of Nepal (2004) Indigenous breeds are low milk producers as compared to exotic breeds from developed countries (Table 8),but have many positive attributes that can make them very productive breeds. They are well adapted and can be productive in forage based production systems (Table 9). Indigenous buffalo breeds produce 2 to 4 litre milk per day (Table 8). They are only average milk yielders but are adapted to the region; they have a wide variation in milk production ranging from 2 to 6 litres/day suggesting that selecting within breeds would increase milk production and reduce milk production cost.

5 Table 8. Production performances of native and exotic breeds of cattle and buffaloes Species Age at 1 st calving Calving interval Daily milk yield Lactation (days) Breeds (months) (months) (litre) Cattle. Lulu 50 (40-60) ( ) 195 Achhami 50 (42-60) ( ) 210 Siri 52 (50-55) (2-6) 268 Khaila 55 (50-60) ( ) 305 Pahadi 55 (50-60) ( ) 300 Yak/nak 58 (55-65) ( ) Terai 48 (44-59) (2-3) 246 Jersey * 38±4.6 15± ±68 Friesian * 34± ± ±56 Buffaloes Lime (20-25) 2.5 ( ) 305 Parkote (20-25) 3.5 ( ) 305 Gaddi (20-25) 3.5 ( ) 305 Murrah * Source: Annual Report, ABD (1997); Shrestha et al. (1997); Kharel and Nepali (1984); Rasali et al. (1997); Neopane (2004) Table 9. Positive attributes of indigenous breeds of cattle and buffaloes Species Breeds Positive Attributes Cattle Lulu Hardy, cold resistant, small body size, low input requirement Achhami Smallest breed, suitable for dry climate, milch animal Pahadi Hardy, good draught animal Terai Hardy, suitable for Terai, good draught animal Siri Hardy, suitable for Hills, good milk animal Khaila Good draught animal Yak Hardy, mountain cattle, multipurpose use Buffaloes Lime Good milk, suitable for Hills, hardy Parkote Good milk, suitable for Hills, hardy Gaddi Good milk, suitable for Hills and Terai, hardy Source: Neopane (2002) Interaction of breed and feed for milk production A cost of milk production study by NDDB (2001) clearly showed that improved breeds performed differently under different feeding systems. Big farmers (raising three or more buffaloes and five or more cattle) keeping exotic animals had low production costs compared to average farmers keeping exotic animals. This was the case with the same breeds but different production system. Average farmers keeping improved animals had lower production costs than average farmers keeping local animals. Conclusions and suggestions Milk production costs must be reduced so as to make the dairy industry competitive both inside and outside the country. Costs can be reduced either by improving productivity per animal or reducing feed and other cost. This can be more efficient if we combine both these e.g. have productive animals and rear them under low cost feeding systems. In the Nepalese context, indigenous breeds are contributing much to milk production but are low producers compared to exotic stock. There is a wide variation within local breeds for milk production suggesting withinbreed selection would improve milk production. This would lead to reduced of milk production costs. Use of forage production technologies should be promoted. Commercial production should be enhanced by rearing improved (both selected indigenous and exotic crossbreds) stock in cost-effective production systems using quality green forage plus concentrate). Concentrate should be used rationally i.e. fed to animals based on their production requirement. References

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