Economic and financial returns of livestock agribusiness in high mountains of Nepal

Khadka, Manbar Singh; Thapa, Ganesh

dc.date.accessioned	2020-11-26T16:15:46Z
dc.date.available	2020-11-26T16:15:46Z
dc.date.issued	2020-11-25
dc.identifier	doi:10.17170/kobra-202010191973
dc.identifier.uri	http://hdl.handle.net/123456789/12037
dc.language.iso	eng	eng
dc.rights	Namensnennung 4.0 International	*
dc.rights.uri	http://creativecommons.org/licenses/by/4.0/	*
dc.subject	livestock	eng
dc.subject	economic returns	eng
dc.subject	financial returns	eng
dc.subject	agribusiness	eng
dc.subject	mountains	eng
dc.subject	sustainability	eng
dc.subject	Nepal	eng
dc.subject.ddc	630
dc.title	Economic and financial returns of livestock agribusiness in high mountains of Nepal	eng
dc.type	Aufsatz
dcterms.abstract	Development partners and donor agencies often target programs and projects in poverty stricken and vulnerable regions around the world. However, there is paucity on economic and financial analysis of such investments. This study contributes to the literature by assessing financial internal rate of return (FIRR) and economic internal rate of return (EIRR) of livestock agribusiness, a vital component of ‘High Mountain Agribusiness and Livelihood Improvement’ (HIMALI) project supported by the Asian Development Bank (ADB) from 2011 to 2018 in ten mountain districts of Nepal. The analysis employs a unique dataset on annual cost (investment, operation and labour) and revenue of 138 livestock agribusiness from 2013 to 2017. The study estimates the EIRR and FIRR of six important livestock species namely, goat, sheep, mountain goat known as chyangra, chauri (a cross-bred of yak and local hill cow), cattle and pig raised in high uplands of Nepal. The overall EIRR of livestock agribusiness is 15% with the highest EIRR observed for sheep (18%), followed by goat (16%), chauri (14%), chyangra (14%) and pig (12%) farm enterprises. By contrast, the overall FIRR of livestock agribusiness is just 12%. Sensitivity analysis shows that the livestock agribusiness is highly sensitive to changes in revenue and operation costs. Some of the major challenges identified are lack of veterinary services and capital to scale-up agribusiness, inadequate market linkages, and limited pastureland. Among livestock agribusiness, sheep, goat, chyangra, and chauri has a high potential in high mountains. The low FIRR indicates a high risk to agribusiness. The study therefore recommends local, provincial and federal governments to deliver reliable extension services, improve market access and provide financial support to ensure the financial sustainability of livestock enterprises in the most difficult and economically lagged region of the country.	eng
dcterms.accessRights	open access
dcterms.creator	Khadka, Manbar Singh
dcterms.creator	Thapa, Ganesh
dc.subject.swd	Nepal	ger
dc.subject.swd	Nutztiere	ger
dc.subject.swd	Rentabilität	ger
dc.subject.swd	Interner Zinsfuß	ger
dc.subject.swd	Agrobusiness	ger
dc.subject.swd	Hochgebirge	ger
dc.subject.swd	Nachhaltigkeit	ger
dc.type.version	publishedVersion
dcterms.source.identifier	EISSN 2363-6033
dcterms.source.issue	No. 2
dcterms.source.journal	Journal of Agriculture and Rural Development in the Tropics and Subtropics (JARTS)	eng
dcterms.source.pageinfo	251-263
dcterms.source.volume	Vol. 121
kup.iskup	false