The data for the model¢s estimation is derived from several states in Peninsular Malaysia, which only includes those with active dairy buffalo enterprises. Although only 14 farms were used for calculation, representing only 28% of the Department of Veterinary Services registry, the sample distribution is sufficient to be studied while representing the three farming scale categories that have been established, in which three commercial farms, five semi-commercial farms and six traditional farms are represented. There is information bias in the questionnaire¢s findings for some responses, including the price of buffalo, operating costs, fixed asset values and animal feed prices. The farm owners are unable to provide a satisfactory response. The lack of effective record-keeping procedures on farms is the cause of this. Other than that, the calculation for the farm’s revenue only considers milk sales since the questionnaire does not report other farm outputs, like the sale of male buffaloes or the culling of buffaloes.
Socioeconomic of the farmers three groups of dairy buffalo farms in peninsular malaysia
In commercial farms, 66.7% of farmers were below 20 years old, 60% and 50% of farmers were in age 41-50 for semi-commercial and traditional farms, respectively. 100% of farmers in dairy buffalo farms were male. For commercial farms, 66.7% of farms located at Selangor and 33.3% at Kedah. Meanwhile, 60% and 66.7% of farms were located in Kedah for semi-commercial and traditional farms, respectively.
This study showed that 66.7% of farmers in commercial farms were below 20 years old. Meanwhile, 60% and 50% of farmers were aged 41-50 for semi-commercial and traditional farms, respectively.
Siddiki et al., (2016) stated in their study at Lalpur Upazila, Bangladesh, primarily farmers were below 30 years of age, however,
Famous et al., (2021) showed in their study at Haor Areas, Bangladesh, most of the farmers were in the range of 40-50 years old. The agriculture sector has the potential to offer high income, so youth started to invest and become interested in this sector. As shown in the result, all the farmers in this study were male, which aligned with
Famous et al., (2021) and
Siddiki et al., (2016). Based on the result, most commercial farms were located in Selangor due to the excellent exposure, marketing and location of the farms; hence, the public and consumers made reaching the farmers easier, leading to better investments.
The nutritional management of the three groups of dairy buffalo farms in Peninsular Malaysia
According to the result, 100% of commercial farms fed total mixed ration to their animals, meanwhile only 80% of farms practiced total mixed ration in semi-commercial farms and 66.7% in traditional farms. All of the farms (100%) in commercial farms and semi-commercial farms give forages for pre-wean and only 66.7% of farms in traditional farms fed the forages to pre-wean animals. The table showed, for post-wean animals, 66.7% from commercial farm, 80% of semi-commercial farms and 33.3% of traditional farms did not fed forages to their animals. All of the farms agreed to fed concentrate to their first calving animals.
The study in Bangladesh reported that the farmers in their area of study did not supply concentrate or practice total mix ration to the dairy buffalo
(Famous et al., 2021). On the contrary, most farms in each category in this study practised total mix ration to their livestock. The benefit of feeding total mixed ration as opposed to feeding forages supplemented with concentrated is the opportunity to make every bite of feed essentially a complete, nutritionally balanced diet for all cows (
Schingoethe, 2017). According to the results, most farms in each category provide forages to pre- and post-wean calves. Under natural grazing systems, calves are suggested to consume forage as early as possible.
Xiao et al., (2020) explained in the previous study that including forages in calves’ diet was recommended to improve their behavioural expression and rumen environment, consequently enhancing their performance.
The health management of the three groups of dairy buffalo farms in Peninsular Malaysia
The popular disease infected calves in semi-commercial farms and traditional farms were diarrhoea with percentage 40% and 50%, respectively. Meanwhile according to the farmers in all groups, there are less common disease infected their cows. 66.7% of mastitis have occurred in commercial farms, 60% in semi-commercial and 50% in traditional farms. Farmers in both group commercial and semi-commercial, 100% agreed to cull the animals with mastitis, meanwhile only 83.3% in traditional farms agreed with the method. Besides, 100% antibiotic treatment were applicable in commercial and semi-commercial groups, however in traditional group there were only 66.7%.
In this tropical area, dairy cattle and dairy buffalo are also easily infected by diseases. Based on the data, every farm from the different groups has been infected by the common diseases and disorders of the domestic buffalo in Asia. In the commercial group, there was a farm that experienced brucellosis and abortion of the calf. One of the farms under semi-commercial farms got infected by endoparasites like gastrointestinal nematodes.
Mastitis is a bacterial infectious disease that can influence dairy animals’ milk quality, yield and udder health (
Wahid and Rosnina, 2016). This study recorded that most of the farms have been infected by mastitis. This may happen due to the lack of attention towards the hygiene of the farms and during the milking process.
The dairy production management of the three groups of dairy buffalo farms in Peninsular Malaysia
The result from this study showed 100% of farms in commercial and semi-commercial farms, preferred to milking twice per day, meanwhile in traditional farms only 66.7%. Most of the farms sold their products to publics and restaurant, only 16.7% farms from traditional farms were distributed in dairy plants. Besides that, only one farm represents each group have producing cheese in their farms.
Dairy buffalo let the milk down slower than buffalo. In line with this study,
Wahid and Rosnina (2016) mentioned that buffalo were usually milked twice daily. Most farms in this study chose to distribute their output to the public and restaurants because buffalo milk was only partially acceptable, like cattle milk in this country. Due to that, usually, each farm has its own regular customer that specifically consumes buffalo’s milk. 33.3%, 20% and 16.7% of farms have been involved in producing cheese using buffalo milk. Cheese made from buffalo milk usually has a typical body and textural characteristics. For example, in manufacturing mozzarella cheese, buffalo milk was more suitable than cow milk (
Wahid and Rosnina, 2016).
The costs and profits of three groups of dairy buffalo farms in peninsular malaysia
The results of variable costs of three group dairy buffalo farms in Peninsular Malaysia were constructed in Table 3. The data showed, traditional farms have highest variable cost per litre of milk production. Semi-commercial farms have lowest veterinary cost compare to traditional and commercial farms. The commercial farms have the least total cost production of milk with RM 2.44 per litre per year.
The results on costs and returns for the three groups of dairy buffalo farms in Peninsular Malaysia (traditional farm, semi-commercial farm and commercial farm) were presented in Table 4. Firstly, for the traditional farm total production was found to be 21,978 litres per 222 days of lactation period. At a price of RM10.67 per litre, the average income from that production is RM234,505.26 per farm per year. Total cost was RM155,060.70 per farm per year, or RM7.06 per litre per year. While the gross return and net return were RM105,590.06 per farm per year, or RM4.80 per litre per year and RM79,444.56 per farm per year, or RM3.61 per litre per year, respectively.
Further it is inferred that, for the semi-commercial farm, the total production was found to be 57,456 litres per 180 days of lactation period. At a price of RM6.60 per litre, the average income from that production is RM379,209.60 per farm per year. Total cost was RM186,784.78 per farm per year, or RM3.25 per litre per year. While the gross return and net return were RM241,201.72 per farm per year, or RM4.20 per litre per year and RM192,424.82 per farm per year, or RM3.35 per litre per year, respectively.
Lastly, for the commercial farm, the total production was found to be 454,472.5 litres per 250 days of lactation period. At a price of RM7.33 per litre, the average income from that production is RM3,331,283.43 per farm per year. Total cost was RM1,110,764.41 per farm per year or RM2.44 per litre per year. While the gross return and net return were RM2,929,799.46 per farm per year, or RM6.45 per litre per year and RM2,220,519.02 per farm per year, or RM4.89 per litre per year, respectively.
The net return of the product is directly correlated with the cost of producing milk. The enterprise’s profitability can be determined by the costs associated with producing milk
(Singh et al., 2017). According to the findings, the total cost and milk production per animal per lactation for different size groups of milking buffalo were RM155,060.70 and 21,978 litres, RM186,784.78 and 57,486 litres and RM1,110,764.41 and 454,472.5 litres, respectively, for traditional, semi-commercial and commercial farms. However, the total cost per litre is RM7.06, RM3.25 and RM2.44, respectively. In each category, the selling price of milk per litre is RM10.67, RM6.60 and RM7.33, respectively. Due to the lower cost of producing 1-litre milk than the selling price, these enterprise budget findings suggest that the commercial farm is more profitable than the other two farm categories. This also can be determined by looking at the return and the margin for each farm category, which reflect the effectiveness of the enterprise operation of the category farm.
For each category, the gross return and gross margin per 1-litre milk were RM4.80 and 68%, RM4.20 and 129% and RM6.45 and 264%, respectively. Meanwhile, the net return and margin are RM3.61 and 51%, RM3.35 and 103% and RM4.89 and 200%, respectively. The commercial farm generated more revenue than the other two categories. The total cost of producing any farm commodity comprises variable and fixed costs. During the enterprise’s production, variable costs are incurred. These costs would not occur if the enterprise did not exist. Fixed costs are prorated over the asset’s expected life, typically several years (
Doye and Sahs, 2016). In these studies, the traditional and semi-commercial farms have high total variable costs proportionate to their fixed costs, which are RM128,915.20 and RM26,145.50 and RM138,007.88 and RM48,776.90, respectively. In a commercial farm, the variable cost is lower than the fixed cost, which is RM401,483.97 and RM709,280.44. The reason for this is commercial farms’ more significant investment in farm assets. However, the flexibility of fixed costs can decrease per unit when more significant amounts of farm output are produced. Regarding variable costs, feed costs account for 53% of expenses on semi-commercial farms and 48% on commercial farms. Meanwhile, the traditional farm’s highest variable expense is labour, which accounts for 45% of total variable expense. The high feed costs are caused by semi-commercial and commercial farms relying more on concentrate feed and industrial waste as animal feed than traditional farms, which primarily use pasture grazing. Constraints on grazing areas also contribute to this state of affairs for semi-commercial and commercial farms. High feed prices and a lack of land for grazing livestock continue to constrain the growth of the nation’s milk 22 production (
Sim and Suntharalingam, 2015). The conditions on traditional farms have a high labour cost because the number of workers used in dairy farm activities is not commensurate with the number of buffalo kept there. This study found that the number of workers in traditional farms is almost the same as that in semi-commercial farms. Commercial farms use their labour hours more effectively than other categories of farms, which results in lower labour costs (
Acharya and Malhotra, 2020).