Shantana R Halder Proloy Barua
Research & Evaluation Division BRAC
Content I. Introduction and Methodology of the study II. Livestock Sector in Bangladesh III. Dairying IV. Consumption of milk and milk products: the survey results V. Profitability of milk production VI. Marketing of unprocessed fresh milk VII. Marketing of processed fresh milk VII. The BRAC Dairy and Food Project
History of BRAC dairy BRAC Dairy and Food Project BRAC’s milk collection process Products of BRAC’s dairy and their marketing VIII. Prices of fresh milk IX. Who benefits from processing and marketing of processed fresh milk? X. Generation of additional employment through processing and marketing of fresh milk XI. Discussions and conclusions Bibliography Appendix
Halder & Barua: Dairy Processing and Marketing 2
List of Tables and Figures Tables 1. Number of livestock in Bangladesh by species (millions) 2. Average herd/flock size by different types of livestock farm households 3. Pattern of utilisation of labour on dairy farms. 4: Consumption pattern of milk by area and poverty groups 5: Frequency of milk consumption (%) 6: Who usually consume milk by sampled groups (%) 7: Sources of milk consumed (%) 8: The extent of milk processing (%) 9: Perception of changes in milk consumption over the last 5 year period (%) 10. Estimated gross costs and benefits earned from dairy farming 11. The BRAC Chilling facilities 12. Daily sales of processed liquid milk by dairy manufacturers. 13. Milk production, consumption and marketing of Milk Vita and BRAC dairy beneficiaries in Pabna 14. Estimated Probable Employment generation, 2002 Figures 1. Livestock growth in Bangladesh (1991/92-2001/02) 2. Changes in domestic production and import of milk and price of per kg imported milk 3. Production and Marketing of unprocessed milk 4. Milk Vita’s chain of marketing milk from producers to consumers 5. The BRAC model for Livestock Rearing 6. Production of Aarong fresh milk (litre/day) 7: Collection and marketing link of fresh milk by Aarong dairy and Milk Vita 8. Changes in Milk Vita milk collection, total price and price per kg of collected milk both at current and real (deflated to CPI) prices. Appendix A
Halder & Barua: Dairy Processing and Marketing 3
Abstract This study was a part of RED-Imperial College joint research, conducted in July 2003. The broad objective of this study is to review the existing milk production, consumption and marketing situation in Bangladesh and to develop policy issues on improvement of milk marketing. It is revealed that milk production in the country has been increasing but not sufficiently to meet the large demand. Like production, per capita consumption has also increased but its level across the country is still very low. Worryingly milk is another product where consumption appears to be declining for the poor as middle/upper income urban markets capture the available milk supply. The increase in collection networks both NGO and private have encouraged increased production but this has not increased consumption at the local level. In this case remoteness from markets can be an advantage nutritionally for poor producers, as they are likely to produce for home and neighbourhood consumption. Yet producers with good market access fail to fully benefit from the high urban demand, as the intermediaries capture the high margins. The most vulnerable to declining milk consumption are market dependent poor groups, the landless rural poor and slum dwellers. The urban market for processed and packaged milk products, though still very small, is expanding rapidly. Collection and distribution networks, together with chilling centres and refrigerated transport infrastructure are developing under private sector and NGO control. These provide hygienic, high quality products, whilst also providing a range of employment opportunities throughout the...