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Abstract

An attempt was made in this study to appraise the investment proposition in dairying, incorporating the cash support incentive initiated by the government in recent years. Financial analysis was performed using primary data collected from different locations of Tangail district. The results indicated that dairy farming with both local and cross-bred cows was highly profitable. The profitability with cross-bred cows was more than that with local cows. Both the categories of farms had high benefit-cost ratios at 14 percent discount rate. The internal rate of return of more than 24 percent indicated that return from investment in dairying would be far more than the opportunity cost of capital in the formal capital market.

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