The study was designed to investigate the socioeconomic characteristics of cattle rearers and to assess the relative profitability of household cattle rearing. The focus of the present study was to quantify the cost, returns and to explore the interrelationship of factors affecting yield. The study was conducted in three villages of Kapasia Upazila namely Ghagotia Purba Para, Ghagptia Chala and Ghagotia Fakir Para of Gazipur district. In total, 50 farmers were randomly selected to determine the costs, returns and profitability of dairy cattle. Primary data were collected from the selected farmers by interview method. Tabular and functional analyses were done to achieve the objectives. The study revealed that the selected farmers were relatively in age group of 30.01-40.01 years mostly with primary educated and occupied in agriculture. The per day total cost of raising local breed dairy cow was estimated at Tk 78. Feed cost was the largest single cost item of raising dairy cows. Feed cost constituted about 60.12 percent of total costs for dairy cows. The total returns per day were estimated at Tk 150.77 for a dairy cow. The value of milk production represented 82.08 percent of total returns. The respective
net returns per day were estimated at Tk 72.77. Undiscounted BCR for local breed dairy
cattle in the study area was 1.93. The average milk yield per day per cow was 2.25 litres.
The bran as feed, labour and veterinary expenses significantly contributed in cattle
rearing and the increasing returns to scale were observed. The study identified some
problems and constraints as reported by farmers which were: scarcity avenues of feed
and fodder, inadequate veterinary services, lack of extension services, lack of pure
improved breed and artificial insemination, distant of artificial insemination center, lack
of suitable marketing facilities, complex terms and condition for institutional credit.
Finally, based on the findings of the study, some policy recommendations were made
for the development of household cattle rearing in Bangladesh.