Impact assessment

Increased efficiency of straw utilisation by cattle and buffalo

Date released
23 July 1998
Publication Code

P S George


This report contains an economic assessment of three projects. As well as validating the feasibility of improving the efficiency of straw-based diets through strategic supplements, the projects under review played a significant role in the commercial introduction of urea molasses blocks and bypass protein feed. The results of the analysis indicate that these projects are economically viable even under the most conservative set of assumptions regarding the project outcome. The internal rate of return of the project was above 12 per cent and the benefit-cost ratio was 2.15 for the base level estimates, with a net present value of $4.7 million. Sensitivity analysis has also clearly demonstrated that the cost incurred on these projects is justified by the potential economic benefits to Indian dairy farmers.