IMPACT ASSESSMENT OF SUBSIDY SUPPORT IN PIGGERY DEVELOPMENT PROGRAM IN BHUTAN

Abstract

This research was undertaken to assess the impact of subsidy support in piggery development programs in Bhutan. Pig farming plays an important role in improving rural livelihoods, yet its growth is often constrained by limited capital, high costs and inadequate market access. Understanding the effectiveness of subsidy interventions is therefore essential for ensuring sustainable livestock development. The primary objective of the study was to evaluate the socio-economic impact of subsidy support especially materials for shed construction on piglet production, income generation, employment creation, asset accumulation and livelihood improvement among beneficiary farmers. Research areas were purposively selected for the study based on its potentiality and existing pig rearing areas. Selecting respondents who met predefined criteria of having received subsidy support and possessing current or recent experience in pig rearing was essential to ensure the validity and relevance of the findings.  A structured questionnaire was administered through telephonic interviews. The questionnaire was    pre-tested in one potential pig-rearing Dzongkhag, and necessary modifications were made prior to final data collection. A sample size of 127 beneficiaries was determined using Yamane’s formula at 95% confidence level. The mean piglet production was 83.53 and 169.84 for before and after subsidy support.  Piggery as main source of income was 22.83% (n=29) and 96.85% (n=123) for before and after subsidy support respectively. About 23.62% (n=30) of the respondents created an employment opportunity and at least 57 respondents purchased one or more assets. About 79.2% of the respondents’ livelihood graduated from satisfactory to sufficient level and 100% from not enough to satisfactory level. Livelihood graduation means households moving to higher economic level through a sequenced set of interventions that build their income, assets and resilience over time. Data were collected from same respondents for both before and after subsidy support to measure the change. The study revealed that the majority 81.1% (n=103) were in the age group of 22-52 years indicating the viability of the pig farming activities. However, it was also found that, the support required on shed constructions was 35.43% (n=45), input supply of 27.56% (n=35) and marketing of 12.60% (n=16) among others. The feed price, animal restocking and marketing still remained as major problems among others. Descriptive and graphical analysis were performed using Statistical Package for Social Science (SPSS) version 23.0. This study findings suggest that subsidy support has had a positive contribution, and  indicate that contributing   with  some form of cost-sharing   mechanism could help ensure its sustainability.