The research work entitled “Livestock Feed Value Chain Analysis in
Gujarat” has been undertaken during 2015-2017 with the purpose of understanding
the feed and fodder production system, the existing marketing channels and the
relationships that exist between various stakeholders operating in the value
chain, which will help to identify the gaps and the inefficiencies along the
value chain. The activities of the value chain
ranges from conception, through the different phases of production and
ultimately delivery to final consumers. Value chain includes input suppliers,
producers, processors and buyers.
main aim of the study is to conduct assessment of animal feed value chain with a
view to identify potential intervention areas to enhance benefits to animal
feed and fodder producers and other value chain actors with following specific
To review the present
status of animal feed sector in Gujarat;
To identify the
various actors involved in livestock feed value chain in Gujarat;
To study the marketing
channel and marketing cost in livestock feed value chain in Gujarat;
To identify the
constraints in livestock feed value chain in Gujarat;
To study the
challenges and opportunities in the animal feed sector in Gujarat.
The hypotheses set in the study
are as follows:
There is no
association between fodder cultivation and dairy farming.
does not depend on land holding size, irrigated land area, family size, social
group and dairy animal number.
Methodology: The study area is Gujarat and has
included both the secondary as well as primary data. Secondary data are
collected from government publications, reports, websites, databases in the
public domain particularly from the Ministry of Agriculture and Department of
Animal Husbandry of Gujarat state as well as Government of India.
For primary data, livestock farmers, fodder growing farmers, traders and
other stakeholders are surveyed using multistage sampling. The state is divided
into five regions. One district with highest number of livestock is selected
from each region. From each district, two taluka with highest number of
livestock are selected. One
village cluster near taluka town (within 10kms) and one far from taluka town
(more than 20kms) are selected. From each village, 10 livestock farmers and 10
fodder cultivating farmers are selected. Data are
collected using pre-tested structured survey schedule. In all, 200 livestock
farmers, 200 fodder growing farmers and 50 traders are interviewed.
Additionally, Gaushala, Panjrapole and Government officials are also
Data are analyzed using descriptive statistics and spatial presentation
in map. Chi?square test of independence is performed to test the association between fodder cultivation and dairy
farming. Logistic regression is run to explore the factors
influencing the farmers’ decision to cultivate fodder. Marketing efficiency analysis and Garrett’s ranking technique are also
used for analysis.
Summary of Findings: Feed is one
of the key components of the livestock sector. It accounts for 65-70 percent of
the total cost of production and maintenance of the livestock. The sector is
dominated by unorganized players. It is found that livestock sector contributes
one-fifth towards Gujarat State’s Agriculture GDP. Gujarat stands third in
terms of milk production among all the states of India. Livestock population is
increasing at a higher rate (11.78 percent during last quinquennium). Livestock
farming is considered to be one of the main source of livelihood for the
landless as well as small and marginal farmers in India. Gir and
Kankrej are the indigenous breeds of cow found in the state along with
crossbreeds- Holstein Friesian and Jersey.
The breeds of buffalo are Mahesani, Surti, Bunni, Jaffradbadi. Patanvadi
and Marwari are the breeds of sheep and Sirohi, Surti, Kuchchhi, Mahesani, Gohilwadi,
Zalawadi are the breeds of goat found in the state. The
growth of cow in the last quinquennium was 25 percent owing to increased number
of crossbred cow.
The value of output of fodder is ?21 billion which is 6 percent of the
value of output of livestock sector in the state and is contributing 6.5
percent towards the national value of output of fodder. The sources
of green fodder are cultivated forage or fodder crop as well as pasture land. The area under fodder crop as well as
pasture land in Gujarat has remained more or less stable with each occupying
850 thousand hectares. The North Gujarat region has
maximum area under fodder cultivation (606.4 thousand hectare). The region has
highest milk production in the state. The districts of Banaskantha, Sabarkantha
and Mahesana, all three top milk producting districts fall in the north region
Dairy cooperatives in Gujarat are producing 1,350 billion tonnes cattle
feed annually (2014?15). Banaskantha based Banas dairy is contributing
27.24 percent followed by Anand based Amul dairy.
It is also found that the livestock farming is dominated by illiterate or
farmers having education below tenth standard (90 percent). Majority of the
livestock farmers are cultivating fodder to feed their animals (62 percent).
Those without land are fully dependent on purchase. Average
family size of the sample farmers is 5.3. Kutch had average family size of
6.63. Here joint family concept is more prevalent and people live together
thereby increasing the family size.
primary source of income for majority of the livestock farmers is found to be
agriculture followed by dairy and then other livestock rearing. Other livestock
rearing includes sheep, goat, camel, horse.
Maize, pearl millet, sorghum, lucerne,
green grass and sugarcane are found to be commonly used green fodder. Chicory
leaves are also used as green fodder for livestock farmers in Banaskantha. The
straw of paddy and wheat; stover of sorghum, groundnut, pigeon pea, black gram
and mustard are used as dry fodder for the livestock. About 25 percent farmers
are purchasing green fodder, dry fodder purchasing farmers are 53 percent,
whereas 78 percent farmers are purchasing compound feed.
fodder market is largely unorganized and informal particularly for the green
and the dry fodder. The movement of green fodder is very much local in nature
and the area generally covered is within a taluka. Livestock farmers owning a
land are cultivating green fodder in a small plot to meet the requirement of
its animals. Those farmers who do not have agricultural land are purchasing
from fellow farmers in the village itself or from the local traders. The
traders procure fodder from fodder cultivating farmers who sell the standing
crop to the trader. The concentrate feed value chain involves wider
geographical area and include cooperative societies as well as private
processors. Under concentrate, the compound feed is sold by the village
cooperative societies to the member farmers who sale milk through the
cooperative. Since, the cooperatives sale the feed at subsidized rates, farmers
rarely buy from open market. Big dairy farms do procure private label compound
feed. The livestock farmers purchase oilseed cakes (cotton seed cake, groundnut
cake, and castor seed cake), grain cakes (maize cake), broken grains (wheat)
from local retailers.
There are two market channels
existing in green fodder supply chain.
cultivating farmer ? Livestock farmer
Channel II: Fodder
cultivating farmer ? Local Trader ? Livestock farmer
channel involving direct sale of green fodder from the fodder cultivating
farmer to the livestock farmer does not involve any marketing cost. The channel
involving trader in between involves marketing cost in the form of labour cost
for cutting and loading of fodder in the tractor and using the tractor for
transportation to the point of sale. The producer’s share in consumer’s rupee
in marketing of maize, pearl millet and sorghum green fodder is 83.3 percent,
whereas for lucerne, it is 80 percent. Producer’s share in consumer’s rupee in
case of paddy straw which is transported to a relatively longer distance is
sale of dry fodder has one channel in vogue in the fodder market in Gujarat.
The dry fodder after harvesting the crop is lifted by the trader is sold to the
livestock farmer in other taluka and district. The price spread in the
marketing channel of paddy straw is found to be ?200 per quintal. Here, the
producer’s share in consumer’s rupee is estimated to be 66.67 percent.
test for independence is undertaken to test if there is
any association between fodder cultivation and dairy farming. It is found that
fodder cultivation is significantly associated with dairy farming (?2
(1, n = 400) = 63.76, p < .001, phi = .399). Using logistic regression, it is found that fodder cultivation is influenced by main occupation, dairy farming being the strongest predictor. More the number of dairy animal, more likely is the chances for a farmer to cultivate fodder. Scheduled tribe social group people are more likely to cultivate fodder. Various constraints are studied and land availability is identified as the biggest constraint for fodder cultivation followed by credit. In case of traders and retailers, the feed and fodder business is found to be less remunerative followed by high competition. Among the challenges, one of the biggest challenge is reducing the gap in requirement and availability of all the three types of feed and fodder viz. green fodder, dry fodder and concentrate, finding ways to feed increasing number of livestock population and introduction of chaff cutting approach by chaff cutter for feeding fodder to the animals. This helps in reducing the fodder wastage. Government has taken initiatives for distributing chaff cutting machine to the dairy farmers at subsidized rates. Various opportunities in the feed and fodder sector are promoting silage to make fodder available round the year, which is not being used by the farmers in the state. Maize is considered one of the suitable fodder which can be used for silage making. Azolla fern cultivation can also be promoted which is rich in protein. It can be mixed with concentrate in the ratio of 1:1 and fed to the dairy animals. Hydroponics is one of the emerging area in feed and fodder sector. It can be a way to address the limited land availability after studying its economic viability. Conclusion The study concluded that animal feed and fodder sector is highly unorganized in Gujarat. The market is basically local in nature particularly in case of green fodder and to a certain extent in dry fodder. Trader exists in case of sale of green fodder and dry fodder outside the village. Newer ways and sources of feeding the livestock should be explored. The dairy farmers try to cultivate green fodder of their own, but land availability is found to be the biggest constraint for them. There still exists gap in availability and requirement of feed and fodder in the state, which will be difficult to feed the increasing number of livestock.