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The Economics of Smallholder Dairy Goat Production in Mafefe Community of Limpopo Province, South Africa

Author(s): M.V. Mosoma | A. Belete | G.M. Senyolo | M.B. Masuku

Journal: Asian Journal of Agricultural Sciences
ISSN 2041-3882

Volume: 4;
Issue: 2;
Start page: 153;
Date: 2012;
Original page

Keywords: Benefit cost ratio | dairy goat | economics of smallholder | net present value | production

This study presents cost-return analysis of the leasing system of smallholder dairy goat production in the Mafefe area of Limpopo Province in South Africa. The study was carried out to analyze the economic viability and sustainability of leasing system to the development of dairy goat’s keepers in Mafefe ward of Limpopo Province. The study used the NPV and BCR analysis to assess the economic impact of the proposed technology. The primary data used for the analysis were obtained during a 2007 household survey of 30 purposively selected farmers who keep dairy goats. Also a time series data for the years 2004 to 2008 were collected from the same respondents. The results show that production of dairy goats through leasing is economically attractive for smallholder dairy goat farmers and would have benefits from the financial and economic point of view. With the discount rate of 10%, the NPV and BCR were found to be R8869.21 and 3.08 respectively. This implies that dairy goat production through leasing system is a profitable project. Government should assist the households with the development of an appropriate marketing infrastructure, training and support programs for their dairy goats for the production of competitive dairy products.
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