Economic Feed Utilization for Dairy Buffalo Under Intensive Agricultural System

The national strategies for the irrigated intensive agricultural system in developing countries should focus upon Producing less expensive milk from dairy buffaloes that, efficiently, utilize the limited expensive produced feed resources. Therefore, planning for the least cost feeds combination is the most recommended approach to keep buffalo milk price at a competitive level and being low enough to make milk available for the major proportion of the low-income households, particularly ``Vulnerable Groups{''}. Estimation of the least cost feed ration combination of the limited expensive feed resources were conducted from a recent farm survey of the dairy buffalo performances and the feed use pattern in Egypt. The estimated average production elasticity of fodder, concentrate feeds mix and straw, implies that their shares in generated buffalo milk income are 41.7\%, 35\%, and 23.3\%, respectively.. The response of the human labor was of negative direction and statistically insignificant. This means that the labor used per dairy buffalo was beyond the economic level, that reflects the excess farm-family labor involved in such activity, because they have almost nil opportunity income of off farm work. The other capital inputs have small positive effect on milk production, The average marginal return from milk per one-dollar expenditure reached \$.1.08 for fodder, and \$ 1.04 for concentrated feed mix, i.e. it is feasible to expand the usage of fodder more than concentrates. The wheat straw has shown uneconomic efficiency. Therefore, it is recommended to limit its level in the ration. The least cost ration reduces feed cost of one ton of buffalo milk equivalent (4\% fat) by 22\%. The less costs of production will strength the competition of domestic supply either against in the international export market or against the dumping policies followed by exporters to the domestic market.