Journal of Applied Biosciences (J. Appl. Biosci.) [ISSN 1997 - 5902]
Volume 9(1): 372 - 377. Published September 2008.
Cost and returns of smallholder yoghurt productionenterprises in the Western highlands of Cameroon
*Nchinda VP, **Mendi SD, ** Imele H, ** Kamga P, ***Ngassam SB. and ****Chi CM
*Socioeconomics Programme, **Food Technology and Post Harvest Programme, Institute of Agricultural Research for Development (IRAD), Regional Centre for the Western Highlands. Bambui, North-West Province of Cameroon, ***Faculty of Economics, University of Dschang, Cameroon, ****Faculty of Economics, University of Gaoundere Cameroon.
Corresponding author Tel.: (237) 77 69 36 55, E-mail: petenstebe@yahoo.com
ABSTRACT
Objective: To determine the cost and returns of smallholder yoghurt production enterprises in the Western highlands of Cameroon.
Methodology and results: Socioeconomic data on yoghurt production were collected from seven dairy cooperative societies during demonstrations using data guides. Analysis of the data showed that smallholder yoghurt production requires small investments that are easily affordable to smallholder dairy farmers. Variable costs account for 96% of the cost of production compared to 4% for fixed cost.
Conclusion and application of findings: The average cost/returns ratio for yoghurt production in the region is 1.6 and returns are higher in the rural than in the urban areas. Low investment requirements and running costs, high prices of yogurt and high productivity are some of the factors that increase the cost-returns ratio. Fresh milk alone accounts for an average of 55.7% of the total cost of production. The market price per litre of yoghurt produced by smallholder dairy farmers in the Western Highlands is lower than the cost of a similar quantity of imported yoghurt. The findings show that encouraging production and marketing of local yoghurt would enable small producers to generate income and consumers to save money by buying cheap but good quality local yoghurt. The positive cost-returns ratio and low investment required for yoghurt production are encouraging factors for small scale dairy farmers to invest in yoghurt production as a source of income generation towards poverty alleviation. Policy makers and stakeholders of the dairy sector need to develop measures to encourage the consumption of local dairy products especially yoghurt.
Key words: Dairy, yoghurt, small scale farmers, income.
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