Changing production system based on breed of cattle: Implications on raising employment in the smallholder dairying of rural Assam

Using cross-sectional data of 245 smallholder rural dairy farmers and propensity score matching, the present study estimates the treatment effect of changing the breed of cattle (indigenous to cross-bred) on changes in labour use in Assam. Our analysis indicates that cross-bred cattle adopters have higher herd sizes, access to extension services, membership of dairy cooperative society and majority of them are beneficiary of government dairy development programme. The estimation results show that cross-bred cattle adopters have significantly higher labour use for selected dairy farming operations. This points out that there is a higher employment prospect in the adoption of cross-bred cattle. Additionally, the study points out that cross-bred cattle adoption is associated with higher employment effect on small to average-size farms and farm households with literate farmers. The findings of the study recommend the adequate diffusion of breeding technology such as artificial insemination or deployment of pure-breed exotic bulls in not so easily accessible areas to facilitate small and medium farmers with cross-bred cattle adoption for generating employment prospect along with augmenting productivity and income.