Effect of voluntary cooperativisation on livelihood capital of smallholder dairy farmers in the southwest of Bangladesh

Abstract

This study investigated the effects of voluntary cooperativisationas conducted by the Community-Based Dairy Veterinary Foundation (CDVF) on the livelihood capital of smallholder dairy farmers. An essential part of this cooperativisation was the provision of community-based paid extension service to the farmers by the cooperative. The sustainable livelihood approach was used to analyse livelihood capital. A simple random sampling technique was used to gather data from 255 respondents: including 15key informant interviews, 5 focus group discussions and 5 case studies. Almost all of the farmers felt that the paid service was profitable. Equal portion of farmers realised moderate (49.80%) and high gains (50.20%) from CDVF. Most significant improvements occurred in physical, financial and human capital resources. CDVF has increased production, and improved farmer-to-market linkage maximised profit and income. Farmers reinvested their improved income in physical assets development. Farmers gained considerable knowledge, skill, employment, voice, intensified social networks, green homesteads and livelihood security from the CDVF services. The complementary effect of all five forms of livelihood capital strengthened the assets pentagon of the participating farmers. Regression results affirm that gender, education, distance from CDVF centre, amount of extension communication, increased milk production and higher income are the determinants of farmers’ improved assets base. CDVF needs to professionalise its management and corporate strategy, and their successful voluntary cooperativisation model needs to be promoted and encouraged by all including the State.