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Market Performance of Milk Processing Enterprises in Bangladesh

A. R. Khan
Commercial Bank, Bangladesh

S. K. Raha
Professor
Dept. of Cooperation and Marketing, BAU, Mymensingh, Bangladesh

H. Weindlmaier
Professor
Business Management of the Dairy and food Industry, Technical University of Munich, Germany

Abstract/ Executive Summary:

New technology plays a major role in influencing the shift toward increased concentration in the dairy processing enterprises in Bangladesh. Technological changes include- high- temperature- short- time (HTST) pasteurization, clean-in-place (CIP) and ultra high temperature (UHT) technology. With increasing concentration, efficiency increased, financial performance increased and industry became more progressive because they were able to adopt new technology. Findings reveal that the enterprises in the dairy industry have a wider scope to improve their efficiency by using full capacity of their plants.

Keywords: Dairy processing enterprises, Market conduct, Marketing strategies

Location: All over the country

Start Date: 00-00-1990

End Date: 00-00-2000

Program Area: Socio-economic and Policy

Non-commodity: Market analysis

Objectives:

To analyze the market performance of milk processing enterprises in Bangladesh.

Methodology:

The dairy milk processing enterprises have a regional coverage in their activities and milk and milk products are supplied throughout the country and their market is spread over the country. They are only engaged in producing standardized and modern type of milk products, such as, full-cream fluid milk, chocolate milk, 'Ghee', butter and ice cream etc. All milk processing enterprises throughout the country were taken as sample. The total sample size from milk processing enterprises was 8. The study period from 1990-91 to 1999-00 that is, 10 years was selected for milk processing enterprises for which, complete information available was used to investigate the changes in market performance of dairy enterprises in Bangladesh. Data incorporated in preparing this paper were collected in 2001 and were used in the preparation of Ph.D. dissertation of the first author. Tables used in this paper were based on secondary data as well as discussion with the dairy managers of dairy enterprises in Bangladesh.

Source of Information: Bangladesh .J. Train. and Dev., Vol. 18(1&2), 2005: 93-100 ; ISSN 1013-0306

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

On the basis of the findings of this study, quality of milk used in processing enterprises is not satisfactory. Capacity utilization was satisfactory in the enterprises of dairy industry but there is a wider scope to increase capacity utilization further. Employment generation was not satisfactory due to shortage of sufficient technical employees in the enterprises of dairy industry. Size of selling costs was found high and an increasing trend was notable. Technological progressiveness was increasing satisfactorily in the dairy industry over the reference years. Financial performance was found positive from 1995-96 to 1999-00 in the enterprises indicating a growth in this sector. Though some dissatisfactory issues were found but the overall performance of dairy industry was found satisfactory.

Knowledge Management: Journal